(upbeat music) >> Good morning everybody. Welcome back to Las Vegas. This is day four of theCUBE's wall-to-wall coverage of our Super Bowl, aka AWS re:Invent 2022. I'm here with my co-host, Paul Gillin. My name is Dave Vellante. Sanjay Poonen is in the house, CEO and president of Cohesity. He's sitting in as our guest market watcher, market analyst, you know, deep expertise, new to the job at Cohesity. He was kind enough to sit in, and help us break down what's happening at re:Invent. But Paul, first thing, this morning we heard from Werner Vogels. He was basically given a masterclass on system design. It reminded me of mainframes years ago. When we used to, you know, bury through those IBM blue books and red books. You remember those Sanjay? That's how we- learned back then. >> Oh God, I remember those, Yeah. >> But it made me think, wow, now you know IBM's more of a systems design, nobody talks about IBM anymore. Everybody talks about Amazon. So you wonder, 20 years from now, you know what it's going to be. But >> Well- >> Werner's amazing. >> He pulled out a 24 year old document. >> Yup. >> That he had written early in Amazon's evolution about synchronous design or about essentially distributed architectures that turned out to be prophetic. >> His big thing was nature is asynchronous. So systems are asynchronous. Synchronous is an illusion. It's an abstraction. It's kind of interesting. But, you know- >> Yeah, I mean I've had synonyms for things. Timeless architecture. Werner's an absolute legend. I mean, when you think about folks who've had, you know, impact on technology, you think of people like Jony Ive in design. >> Dave: Yeah. >> You got to think about people like Werner in architecture and just the fact that Andy and the team have been able to keep him engaged that long... I pay attention to his keynote. Peter DeSantis has obviously been very, very influential. And then of course, you know, Adam did a good job, you know, watching from, you know, having watched since I was at the first AWS re:Invent conference, at time was President SAP and there was only a thousand people at this event, okay? Andy had me on stage. I think I was one of the first guest of any tech company in 2011. And to see now this become like, it's a mecca. It's a mother of all IT events, and watch sort of even the transition from Andy to Adam is very special. I got to catch some of Ruba's keynote. So while there's some new people in the mix here, this has become a force of nature. And the last time I was here was 2019, before Covid, watched the last two ones online. But it feels like, I don't know 'about what you guys think, it feels like it's back to 2019 levels. >> I was here in 2019. I feel like this was bigger than 2019 but some people have said that it's about the same. >> I think it was 60,000 versus 50,000. >> Yes. So close. >> It was a little bigger in 2019. But it feels like it's more active. >> And then last year, Sanjay, you weren't here but it was 25,000, which was amazing 'cause it was right in that little space between Omicron, before Omicron hit. But you know, let me ask you a question and this is really more of a question about Amazon's maturity and I know you've been following them since early days. But the way I get the question, number one question I get from people is how is Amazon AWS going to be different under Adam than it was under Andy? What do you think? >> I mean, Adam's not new because he was here before. In some senses he knows the Amazon culture from prior, when he was running sales and marketing prior. But then he took the time off and came back. I mean, this will always be, I think, somewhat Andy's baby, right? Because he was the... I, you know, sent him a text, "You should be really proud of what you accomplished", but you know, I think he also, I asked him when I saw him a few weeks ago "Are you going to come to re:Invent?" And he says, "No, I want to leave this to be Adam's show." And Adam's going to have a slightly different view. His keynotes are probably half the time. It's a little bit more vision. There was a lot more customer stories at the beginning of it. Taking you back to the inspirational pieces of it. I think you're going to see them probably pulling up the stack and not just focused in infrastructure. Many of their platform services are evolved. Many of their, even application services. I'm surprised when I talk to customers. Like Amazon Connect, their sort of call center type technologies, an app layer. It's getting a lot. I mean, I've talked to a couple of Fortune 500 companies that are moving off Ayer to Connect. I mean, it's happening and I did not know that. So it's, you know, I think as they move up the stack, the platform's gotten more... The data centric stack has gotten, and you know, in the area we're working with Cohesity, security, data protection, they're an investor in our company. So this is an important, you know, both... I think tech player and a partner for many companies like us. >> I wonder the, you know, the marketplace... there's been a big push on the marketplace by all the cloud companies last couple of years. Do you see that disrupting the way softwares, enterprise software is sold? >> Oh, for sure. I mean, you have to be a ostrich with your head in the sand to not see this wave happening. I mean, what's it? $150 billion worth of revenue. Even though the growth rates dipped a little bit the last quarter or so, it's still aggregatively between Amazon and Azure and Google, you know, 30% growth. And I think we're still in the second or third inning off a grand 1 trillion or 2 trillion of IT, shifting not all of it to the cloud, but significantly faster. So if you add up all of the big things of the on-premise world, they're, you know, they got to a certain size, their growth is stable, but stalling. These guys are growing significantly faster. And then if you add on top of them, platform companies the data companies, Snowflake, MongoDB, Databricks, you know, Datadog, and then apps companies on top of that. I think the move to the Cloud is inevitable. In SaaS companies, I don't know why you would ever implement a CRM solution on-prem. It's all gone to the Cloud. >> Oh, it is. >> That happened 15 years ago. I mean, begin within three, five years of the advent of Salesforce. And the same thing in HR. Why would you deploy a HR solution now? You've got Workday, you've got, you know, others that are so some of those apps markets are are just never coming back to an on-prem capability. >> Sanjay, I want to ask you, you built a reputation for being able to, you know, forecast accurately, hit your plan, you know, you hit your numbers, you're awesome operator. Even though you have a, you know, technology degree, which you know, that's a two-tool star, multi-tool star. But I call it the slingshot economy. This is like, I mean I've seen probably more downturns than anybody in here, you know, given... Well maybe, maybe- >> Maybe me. >> You and I both. I've never seen anything like this, where where visibility is so unpredictable. The economy is sling-shotting. It's like, oh, hurry up, go Covid, go, go go build, build, build supply, then pull back. And now going forward, now pulling back. Slootman said, you know, on the call, "Hey the guide, is the guide." He said, "we put it out there, We do our best to hit it." But you had CrowdStrike had issues you know, mid-market, ServiceNow. I saw McDermott on the other day on the, on the TV. I just want to pay, you know, buy from the guy. He's so (indistinct) >> But mixed, mixed results, Salesforce, you know, Octa now pre-announcing, hey, they're going to be, or announcing, you know, better visibility, forward guide. Elastic kind of got hit really hard. HPE and Dell actually doing really well in the enterprise. >> Yep. >> 'Course Dell getting killed in the client. But so what are you seeing out there? How, as an executive, do you deal with such poor visibility? >> I think, listen, what the last two or three years have taught us is, you know, with the supply chain crisis, with the surge that people thought you may need of, you know, spending potentially in the pandemic, you have to start off with your tech platform being 10 x better than everybody else. And differentiate, differentiate. 'Cause in a crowded market, but even in a market that's getting tougher, if you're not differentiating constantly through technology innovation, you're going to get left behind. So you named a few places, they're all technology innovators, but even if some of them are having challenges, and then I think you're constantly asking yourselves, how do you move from being a point product to a platform with more and more services where you're getting, you know, many of them moving really fast. In the case of Roe, I like him a lot. He's probably one of the most savvy operators, also that I respect. He calls these speedboats, and you know, his core platform started off with the firewall network security. But he's built now a very credible cloud security, cloud AI security business. And I think that's how you need to be thinking as a tech executive. I mean, if you got core, your core beachhead 10 x better than everybody else. And as you move to adjacencies in these new platforms, have you got now speedboats that are getting to a point where they are competitive advantage? Then as you think of the go-to-market perspective, it really depends on where you are as a company. For a company like our size, we need partners a lot more. Because if we're going to, you know, stand on the shoulders of giants like Isaac Newton said, "I see clearly because I stand on the shoulders giants." I need to really go and cultivate Amazon so they become our lead partner in cloud. And then appropriately Microsoft and Google where I need to. And security. Part of what we announced last week was, last month, yeah, last couple of weeks ago, was the data security alliance with the biggest security players. What was I trying to do with that? First time ever done in my industry was get Palo Alto, CrowdStrike, Wallace, Tenable, CyberArk, Splunk, all to build an alliance with me so I could stand on their shoulders with them helping me. If you're a bigger company, you're constantly asking yourself "how do you make sure you're getting your, like Amazon, their top hundred customers spending more with that?" So I think the the playbook evolves, and I'm watching some of these best companies through this time navigate through this. And I think leadership is going to be tested in enormously interesting ways. >> I'll say. I mean, Snowflake is really interesting because they... 67% growth, which is, I mean, that's best in class for a company that's $2 billion. And, but their guide was still, you know, pretty aggressive. You know, so it's like, do you, you know, when it when it's good times you go, "hey, we can we can guide conservatively and know we can beat it." But when you're not certain, you can't dial down too far 'cause your investors start to bail on you. It's a really tricky- >> But Dave, I think listen, at the end of the day, I mean every CEO should not be worried about the short term up and down in the stock price. You're building a long-term multi-billion dollar company. In the case of Frank, he has, I think I shot to a $10 billion, you know, analytics data warehousing data management company on the back of that platform, because he's eyeing the market that, not just Teradata occupies today, but now Oracle occupies or other databases, right? So his tam as it grows bigger, you're going to have some of these things, but that market's big. I think same with Palo Alto. I mean Datadog's another company, 75% growth. >> Yeah. >> At 20% margins, like almost rule of 95. >> Amazing. >> When they're going after, not just the observability market, they're eating up the sim market, security analytics, the APM market. So I think, you know, that's, you look at these case studies of companies who are going from point product to platforms and are steadily able to grow into new tams. You know, to me that's very inspiring. >> I get it. >> Sanjay: That's what I seek to do at our com. >> I get that it's a marathon, but you know, when you're at VMware, weren't you looking at the stock price every day just out of curiosity? I mean listen, you weren't micromanaging it. >> You do, but at the end of the day, and you certainly look at the days of earnings and so on so forth. >> Yeah. >> Because you want to create shareholder value. >> Yeah. >> I'm not saying that you should not but I think in obsession with that, you know, in a short term, >> Going to kill ya. >> Makes you, you know, sort of myopically focused on what may not be the right thing in the long term. Now in the long arc of time, if you're not creating shareholder value... Look at what happened to Steve Bomber. You needed Satya to come in to change things and he's created a lot of value. >> Dave: Yeah, big time. >> But I think in the short term, my comments were really on the quarter to quarter, but over a four a 12 quarter, if companies are growing and creating profitable growth, they're going to get the valuation they deserve. >> Dave: Yeah. >> Do you the... I want to ask you about something Arvind Krishna said in the previous IBM earnings call, that IT is deflationary and therefore it is resistant to the macroeconomic headwinds. So IT spending should actually thrive in a deflation, in a adverse economic climate. Do you think that's true? >> Not all forms of IT. I pay very close attention to surveys from, whether it's the industry analysts or the Morgan Stanleys, or Goldman Sachs. The financial analysts. And I think there's a gluc in certain sectors that will get pulled back. Traditional view is when the economies are growing people spend on the top line, front office stuff, sales, marketing. If you go and look at just the cloud 100 companies, which are the hottest private companies, and maybe with the public market companies, there's way too many companies focused on sales and marketing. Way too many. I think during a downsizing and recession, that's going to probably shrink some, because they were all built for the 2009 to 2021 era, where it was all about the top line. Okay, maybe there's now a proposition for companies who are focused on cost optimization, supply chain visibility. Security's been intangible, that I think is going to continue to an investment. So I tell, listen, if you are a tech investor or if you're an operator, pay attention to CIO priorities. And right now, in our business at Cohesity, part of the reason we've embraced things like ransomware protection, there is a big focus on security. And you know, by intelligently being a management and a security company around data, I do believe we'll continue to be extremely relevant to CIO budgets. There's a ransomware, 20 ransomware attempts every second. So things of that kind make you relevant in a bank. You have to stay relevant to a buying pattern or else you lose momentum. >> But I think what's happening now is actually IT spending's pretty good. I mean, I track this stuff pretty closely. It's just that expectations were so high and now you're seeing earnings estimates come down and so, okay, and then you, yeah, you've got the, you know the inflationary factors and your discounted cash flows but the market's actually pretty good. >> Yeah. >> You know, relative to other downturns that if this is not a... We're not actually not in a downturn. >> Yeah. >> Not yet anyway. It may be. >> There's a valuation there. >> You have to prepare. >> Not sales. >> Yeah, that's right. >> When I was on CNBC, I said "listen, it's a little bit like that story of Joseph. Seven years of feast, seven years of famine." You have to prepare for potentially your worst. And if it's not the worst, you're in good shape. So will it be a recession 2023? Maybe. You know, high interest rates, inflation, war in Russia, Ukraine, maybe things do get bad. But if you belt tightening, if you're focused in operational excellence, if it's not a recession, you're pleasantly surprised. If it is one, you're prepared for it. >> All right. I'm going to put you in the spot and ask you for predictions. Expert analysis on the World Cup. What do you think? Give us the breakdown. (group laughs) >> As my... I wish India was in the World Cup, but you can't get enough Indians at all to play soccer well enough, but we're not, >> You play cricket, though. >> I'm a US man first. I would love to see one of Brazil, or Argentina. And as a Messi person, I don't know if you'll get that, but it would be really special for Messi to lead, to end his career like Maradonna winning a World Cup. I don't know if that'll happen. I'm probably going to go one of the Latin American countries, if the US doesn't make it far enough. But first loyalty to the US team, and then after one of the Latin American countries. >> And you think one of the Latin American countries is best bet to win or? >> I don't know. It's hard to tell. They're all... What happens now at this stage >> So close, right? >> is anybody could win. >> Yeah. You just have lots of shots of gold. I'm a big soccer fan. It could, I mean, I don't know if the US is favored to win, but if they get far enough, you get to the finals, anybody could win. >> I think they get Netherlands next, right? >> That's tough. >> Really tough. >> But... The European teams are good too, but I would like to see US go far enough, and then I'd like to see Latin America with team one of Argentina, or Brazil. That's my prediction. >> I know you're a big Cricket fan. Are you able to follow Cricket the way you like? >> At god unearthly times the night because they're in Australia, right? >> Oh yeah. >> Yeah. >> I watched the T-20 World Cup, select games of it. Yeah, you know, I'm not rapidly following every single game but the World Cup games, I catch you. >> Yeah, it's good. >> It's good. I mean, I love every sport. American football, soccer. >> That's great. >> You get into basketball now, I mean, I hope the Warriors come back strong. Hey, how about the Warriors Celtics? What do we think? We do it again? >> Well- >> This year. >> I'll tell you what- >> As a Boston Celtics- >> I would love that. I actually still, I have to pay off some folks from Palo Alto office with some bets still. We are seeing unprecedented NBA performance this year. >> Yeah. >> It's amazing. You look at the stats, it's like nothing. I know it's early. Like nothing we've ever seen before. So it's exciting. >> Well, always a pleasure talking to you guys. >> Great to have you on. >> Thanks for having me. >> Thank you. Love the expert analysis. >> Sanjay Poonen. Dave Vellante. Keep it right there. re:Invent 2022, day four. We're winding up in Las Vegas. We'll be right back. You're watching theCUBE, the leader in enterprise and emerging tech coverage. (lighthearted soft music)

(bright, upbeat music playing) >> Hello, Brilliant Cloud community and welcome back to AWS re:Invent, where we are live all day everyday from the show floor, here in Las Vegas, Nevada. I'm Savannah Peterson joined by my beautiful co-host, Lisa Martin here on theCUBE. Lisa, you're smiling, you're radiating, day three, you would think it was day one. How you doing? >> Amazing. I can't believe the energy that has been maintained >> It's been a theme. on this show floor, since Monday night at 4:00 pm. >> I know, and I kind of thought today we might see some folks trickling out. It is packed, as our guests and I were, we were all just talking about, right before the segment, almost too packed which is a really great sign for AWS. >> It is. We're hearing north of 55,000 people here. And of course, we only get a little snapshot of what's at the Venetian. >> Literally this corner, yeah. We don't get to see anything else around The Strip, that's going on, so it's massive. >> Yeah, it is very massive. I'm super excited. We've got two guests from Infosys with us on this last segment from this stage today. David and Anant, welcome to the show. How you doing? >> Awesome. >> You're both smiling and I am really excited. We have our first prop of the show, (David and Anant laughing) and it's a pretty flashy, sexy prop. Anant, what's going on here? >> Oh, so this is something that we are very proud of. Last year we won one award, which was very special for us because it was our first award with AWS, and that was, "The Industry Partner of The Year Award." And on the back of that, this year we won three awards and this is super awesome for us, because all of them are very special. One was in collaboration, second was in design, and third was in sustainability. So we are very proud, and we thank AWS, and it's a fantastic partnership. >> Yeah, congratulations. >> Anant: Yes. I mean that's huge. >> Yes, it's absolutely huge. And the second one is, we are the Launch Partner for MSK, which again is a very proud thing for us. So I think those are the two things that we wanted to talk about. >> How many awards are you going to win next year then? (all laughing) >> We want to target more than three. (Savannah chuckles) >> Keep it going up. >> Probably five, right? >> So it's the odd numbers, one, three, five, seven, ten. Yeah. Yeah. Yeah. >> Savannah: There you go. >> I think we got that question last year and we said we'd get two, and we ended up over-delivering with three, so who knows? >> Hey, nothing wrong with setting the bar low and clearing it. And I mean, not setting it low, setting it with one and clearing it with three is pretty fantastic. We talk about it as an ego thing sometimes with awards and it feels great for internal culture, but David, what does it mean on the partnership side to win awards like that? >> So what's really important for us with our partners is to make sure that we're achieving their goals, and when their goals are achieved in our partnership it's just the byproduct that we're achieving our own with our clients. The awards are a great representation of that to see, you know, again, being recognized in three different categories really shows that we've had success with AWS, and in turn, you know, Anant and I can attest to it. We've been very successful at the partnership on our side. >> Yeah, and I bet it's really exciting for the team. Just speaking for Energy (indistinct) >> And there's celebration, you know, there's been a few cocktails being raised... >> Has there? In Las Vegas? >> David: I know. Cocktails? >> Lisa Martin: Shocking! I'm shocked! >> Lisa Martin: I know! (all laughing) I wouldn't mind one right now to be really, really honest. Let's dig into the product a little bit. Infosys Cobalt. What's the scoop, Anant? >> Yeah, so first of all, we were the first ones to actually launch a Cloud brand called Cobalt, right? We were the first ones in the world. In fact, one of our competitor followed us soon after. So essentially what we did was we brought all our Cloud offerings into one brand called Cobalt. It becomes very clear to our customers on what our proposition is. It is very consistent to the market in terms of what our narrative is. And it's a little easy for our customers to understand what we bring to the table. So Cobalt is not one product or what one platform it's a set of services, solutions and platforms that we bring to accelerate customer's journey where they're leveraging Cloud. So that's what Cobalt is. >> Awesome, everyone wants to do everything faster. >> Yes. >> Lisa Martin: Yeah. >> And the booth was packed. I walked by earlier, it was absolutely buzzing. >> Yes. >> Yeah. Nobody wants to do, you know, wants less data slower. >> Anant: Yes. (Savannah laughs) >> It's always more faster. >> Anant: More faster. And we're living in this explosion unlike anything this swarm of data unlike anything that we've ever seen before. Every company, regardless of industry has to be a data company. >> Anant: Yes. But they have to be able to work with the right partners to extract, to first of all harness all that data, extract insights in real time, because of course on the consumer side we're not patient anymore. >> Anant: Yes. We expect a personalized, realtime, custom experience. >> Anant: Absolutely. >> How do you work with AWS to help deliver that and how do the partners help deliver that as well? >> Well I'll start with on the partner side of it. You walk through the hallways here or down the aisles you see partners like MongoDB, Snowflake, Databricks and such, they're all attesting their commitment and their strong partnership with AWS, and coincidentally they're also very good partners of our own. And as a result... >> Savannah: One big happy family here at AWS when you met. >> And this is something that I'm calling, coining the phrase sub-ecosystems. These are partnerships where one is successful with each other, and then the three come together, and we go together with an integrated solution. And it's really taking off. It's something that's really powerful. The fun thing about re:Invent here is isn't just that we're having amazing discussions with our clients and AWS, but we're also having with the other partners here about how we can all work together so... And data analytics is a big one, security is another hot one-- >> Lisa Martin: Security is huge. >> Savannah: Yeah. Cost optimization from the start. >> Absolutely. And Ruba was saying this, right? Ruba said, like she was giving example of a marathoner. Marathon is not a single man or a single woman sport, right? So similarly Cloud journey is a team's, sort of you know, team journey, so that's why partners play a big role in that and that's exactly what we are trying to do. >> So you guys get to see a lot of different companies across a lot of different industries. We're living in very interesting times, how do you see the Cloud evolving? >> Oh, yeah. So what we did when we launched Cobalt in 2020 we have now evolved our story. We call it Cobalt 2.0. And essentially what we wanted to do was to focus on industry Clouds. So it's not just about taking a workload and moving it from point A to point B or moving data to Cloud or getting out of data centers, but it's also being very specific to the industry that this specific customer belongs to, right? So for example, if we go to banking they would say we want to better our security posture. If we go to a retailer they want to basically have smart stores. If we go to a manufacturing customer they want to have a smart factory. So we want to make sure that there are specific industry blueprints and specific reference architectures that we bring and start delivering outcomes. So we call it something called... >> Savannah: I know you're hot on business outcomes. >> Yes. >> Savannah: Yes. So we call it something called the link of life forces. So there are six technologies; Cloud, Data, Edge, IOT, 5G, and AI. They will come together to deliver business outcomes. So that's where we are heading with Cobalt 2.0, And that's essentially what we want to do with our customers. >> Savannah: It's a lot to think about. >> Yes. >> David: Yes. >> And, yeah, go for it David. >> I was just saying from a partnering perspective, you know prior to Cloud, we were talking about transactional type businesses where if you ask a technology company who their partner is its generally a reseller where they're just basically taking one product and selling it to their client. What's happened with cloud now it's not about the transaction upfront it's about the actual, you know, the consumption of the technology and the bringing together all of these to form an outcome, it changes the model dramatically, and quite honestly, the global system integrators like Infosys are in great position because we can pull that together to the benefit of our partners, put our own secret sauce around it and take these solutions to market and drive consumption because that's what the Cloud's all about. >> Right. Well, how are you helping customers really treat Cloud as a strategic focus? You know we often hear companies talk about we're Cloud first. Well not everything belongs in the Cloud. So then we hear companies start talking about being Cloud smart. >> Anant: Yes. How are you helping, and so we'll go with that. How are you helping enterprises really become Cloud smart and where is the partner angle? So we'll start with you and then we'll bring the partner angle in. >> Oh yeah, big time. I think one of the things that we have been educating our customers is Cloud is not about cost takeout. So Cloud is about innovation, Cloud is about growth. And I'll give two examples. One of the beauty products companies they wanted to set up their shop in US and they said that, you know, "we don't have time to basically buy the infrastructure, implement an ERP platform, and you know, or roll it out, test it and go into production. We don't have so much time. Time to market is very important for us." And they embarked on the Cloud journey. So expanding into new market, Cloud can play a big role. That is one of the ways to expand and you know, grow your business. Similarly, there is another company that they wanted to go into retail banking, right? And they didn't have years to launch a product. So they actually use AWS and it's a joint Infosys and AWS customer. A pretty big bank. They launched retail banking and they did it in less than six months. So I think these are some of the examples of cloud not being cost takeout but it's about innovation and growth. So that's what we are trying to tell customers. >> Savannah: Big impacts. >> Big impact. Yes, absolutely. >> And that's where the Cobalt assets come into play as well. You know, as Anant mentioned, we have literally thousands of these industries specific and they're derived in a lot of cases in partnership with the companies you see down the aisles here, and AWS. And it accelerates the deployments and ensures a successful adoption, more so than before. You know, we have clients that are coming to us now that used to buy, run their own procurement. You know they would have... Literally there was one bank that came to us with a over a hundred products >> The amount of work. I'm just seeing it... >> A list of a hundred products. Some they bought directly from a vendor, some they went through a distributor, some they went through a reseller and such, >> Savannah: It's so ad-hoc. And they're looking at this in a completely different way and they're looking to rationalize those technologies, again, look for companies that will contract for a business outcome and leverage the cloud and get to that next era, and it's a fun time. We're really excited. >> I can imagine you're really a part of the transformation process for a lot of these companies. >> Anant: Absolutely. Anant when we were chatting before we went live you talked about your passion for business outcomes. Can you give us a couple examples of customers or business outcomes that really get you and the team excited? Same thing to you David, after. >> Well, absolutely. Even our contractual structures are now moving into business outcomes. So we are getting paid by the outcomes that we are delivering, right? So, one of the insurance customers that we have we actually get paid by the number of claims that we process, right? Similarly there is a healthcare customer where we actually get paid by the number of customers that we cater to from a Medicare and Medicaid standpoint, right? >> Savannah: Tangible results processed and projected-- >> Successful process of claims. >> Interesting. >> Anant: Exactly. >> Yeah. (indistinct) reality. >> Yeah, reality, (chuckles) What a novel idea. >> Yeah. (Savannah and Lisa chuckle) >> One of the great examples you hear about airplane engines now that the model is you don't buy the engine, you basically pay for the hours that it's used, and the maintenance and the downtime, so that you take the risk away. You know, you put that in the context of the traditional business. You're taking away the risk of owning the individual asset, the maintenance, any of the issues, the bug fixes. And again, you're partnering with a company like Infosys, we'll take on that based upon our knowledge and based upon our vast experience we can confidently contract in that way that, you know, years ago that wasn't possible. >> Savannah: It's kind of a sharing economy at scale style. >> David: Exactly. >> Anant: Absolutely. >> Yeah, which is really exciting. So we have a new challenge here on theCUBE this year at re:Invent. We are looking for your 32nd Instagram real sizzle soundbite. Your hot take, your thought leadership on the biggest theme or most important thing coming out of this year's show. David, we'll start with you. We've been starting with Anant, so I'm going to go to you. We're making eye contact right now so you're in the hot seat. (all laugh) >> Well, I think there was a lot of time given to sustainability on the stage this week, and I think that, you know, every CEO that we talk to is bringing that up as a major priority and that's a very important element for us as a company and as a service provider. >> Savannah: I mean, you're obviously award winning in the sustainability department. >> Exactly. Nice little plug there. >> Yeah. >> You know, and I think the other things that have come up we saw a lot about data analytics this week. You know, I think new offerings from AWS but also new partnerships that we're going to take advantage of. And again, security has been a hot topic. >> Absolutely. Anant, what's your hot take? >> Yeah. I think one very exciting thing for partners like us is the re-imagining that is being done by Ruba for the partners, right? The AWS marketplace. I think that is a big, big thing that I took out. Of course, sustainability is huge. Like Adam said, the fastest way to become sustainable is to move to Cloud, right? So rather than overthinking and over-engineering this whole topic just take your workloads and move it to Cloud and you'll be sustainable, right? So I think that's the second one. And third is of course cybersecurity. Zscaler, Palo Alto, CrowdStrike, these are some of the big companies that are at the event here, and we have been partnering with them. Many more. I'm just calling out three names, but many more. I think cybersecurity is the next one. So I think these are three on top of my mind. >> Just a few things you casually think about. That was great. Great responses from both of you Anant, David, such a pleasure to have you both with us. We hope to have you back again. You're doing such exciting things. I'm sure that everything we talked about is going to be a hot topic for many years to come as people navigate the future as well as continue their business transformations. It is always a joy to sit next to you on stage my dear. >> Likewise. And thank all of you, wherever you're tuning in from, for joining us here at AWS re:Invent live from Las Vegas, Nevada. With Lisa Martin, I'm Savannah Peterson, and for the last time today, this is theCUBE, the leader in high tech coverage. (bright, upbeat music playing)

>>Hello, brilliant cloud community and welcome back to AWS Reinvent, where we are live all day every day. From the show floor here in Las Vegas, Nevada. I'm Savannah Peterson, joined by my beautiful cohost Lisa Martin here on the cube. Lisa, you're smiling. You're radiating Day three. You would think it was day one. How you doing? >>Amazing. I can't believe the energy that has been maintained omni show floor since Monday night at 4:00 PM >>I know. And I, I kind of thought today we might see some folks trickling out. It is packed as our, as our guests and I were, we were all just talking about right before the segment, almost two packed, which is a really great sign for aws. It is. We're >>Hearing worth of 55,000 people here. And of course we only get a, a little snapshot of which literally >>This corner, >>We don't get to see anything else around the strip that's going on. So it's massive. Yeah, >>It is a very massive, I'm super excited. We've got two guests from Infosys with us on this last segment from this stage today. David and Anant, welcome to the show. How you doing? >>Awesome. >>You're both smiling and I am really excited. We have our first prop of the show and it's a pretty flashy, sexy prop. Anant, what's going on here? >>Oh, so this is something that we are very proud of. Last year we won one award, which was very special for us because it was our first award with aws and that was the industry partner of the year award. And on the back of that, this year we won three awards. And this is super awesome for us because all of them are very special. One was in collaboration, second was in design, and third was in sustainability. So we are very proud and we thank AWS and it's a fantastic partnership. Yeah. And >>Congratulations. Yes. I mean that's >>Huge. Yes, it's absolutely huge. And the second one is we are the launch partner for msk, which again is a very proud thing for us. So I think those are the two things that we wanted to talk about. >>How many awards are you gonna win next year then? >>Do you want to target more than three? >>So we keep going up probably fine, >>Right? I >>Love, >>That's the odd numbers. 1, 3, 5, 7, 10. There you go. >>Yeah, >>I think you, we got that question last year and we said we get two and we ended up overdelivering with three. So who >>Knows? Hey, nothing. Nothing wrong with the setting the bar low and clearing it and I mean, not setting it low, setting it with one and clearing it with three is pretty fantastic. Yes, yes. We talk about it as an ego thing sometimes with awards and it feels great for internal culture. But David, what does it mean on the partnership side to win awards like that? So >>What's really important for us with our partners is to make sure that we're achieving their goals and when, when their goals are achieved in our partnership, it's just the byproduct that we're achieving our own with our clients. The awards are a great representation of that to see, you know, again, being recognized three in three different categories really shows that we've had success with AWS and in turn, you know, know and not, I can attest to it, we've been very successful with the partnership on our side. >>Yeah. And I bet it's really exciting for the team. Just speaking for energy, are your >>Team sponsor? Absolutely. There's celebration, you know, there's been a few cocktails being raised >>In Las Vegas >>Cocktail. Oh, >>I wouldn't mind one right now to be really be really honest. Let's dig into the, into the product a little bit. Infosys Cobalt, what's the scooping on? >>Yeah, so first of all, we were the first ones to actually launch a cloud brand called Cobalt. Right? We are the first ones in the world. In fact, one of our competitor followed us soon after. So essentially what we did was we brought all our cloud offerings into one brand called Cobalt. It becomes very clear to our customers on what our proposition is. It is very consistent to the market in terms of what our narrative is. And it's little easy for our customers to understand what we bring to the table. So is not one product or one platform. It's a set of services, solutions and platforms that we bring to accelerate customers journey where they're leveraging cloud. So that's what Cobalt is. >>Awesome. Everyone wants to do everything faster. Yes. And Booth was packed. I walked by earlier, it was absolutely buzzing. Yes. >>Yeah. Nobody wants to do it, you know, wants less data slower. Yes. Always more faster. More faster. And we're living in this explosion unlike anything, this swarm of data, unlike anything that we've ever seen before. Yes. Every company, regardless of industry, has to be a data company. Yes. But they have to be able to work with the right partners. Absolutely. To extract, to first of all, harness all that data. Yes. Extract insights in real time. Yes. Because of course, on the consumer side, we're not patient anymore. Yes. We expect a personalized, real time custom experience. Absolutely. How do you work with AWS to help deliver that and how do the partners help deliver that as well? >>Well, I'll start with on the partner side of it. You walk through the hallways here or down the aisles, you see partners like MongoDB, snowflake, data Bricks and and such. They're all attest their commitment and their strong partnership with aws. And coincidentally, they're also very good partners of our own. And as a result, what >>Big happy family here at AWS when you >>Met? Yes, and this, this is something that I'm, I'm calling coining the phrase sub ecosystems. These are partnerships where one is successful with each other and then the three come together and we go together with an integrated solution. And it's really taking off. It's something that's really powerful. The, the fun thing about, you know, reinvent here is it's just that we're having amazing discussions with our clients and aws, but we're also having it with the other partners here about how we can all work together. So, and data analytics is a big one. Security is another hot one. This is huge. >>Yeah. Optimization. >>The absolutely. And I, and Ruba was saying this, right? Ruba said like she was giving example of a marathon or Marathon is not a single man or a single woman sport. Right? So similarly cloud journey is a team's sort of, you know, team journey. Yeah. So that's why partners play a big role in that and that's exactly what we are trying to do. >>So you guys get to see a lot of different companies across a lot of different industries. We've, we're living in very interesting times. How do you see the cloud evolving? >>Oh yeah. So, so what we did when we launched Cobalt in 2020, we have now evolved our story, we call it Cobalt 2.0. And essentially what we want to do was to focus on industry clouds. So it's not just about taking a workload and doing it from point A to point B or moving data to cloud or getting out of data centers, but also being very specific to the industry that this specific customer belongs to. Right? So for example, if you go to banking, they would say, we want to better our security posture. If you go to a retailer, they want to basically have smart stores. If we go to a manufacturing customer, they want to have a smart factory. So we want to make sure that there are specific industry blueprints and specific reference architectures that we bring and start delivering outcomes. So we have, we call it something called, >>I know you're hot on business outcomes. Yes, yes. >>So we call it something called the link of life forces. So there are six technologies, cloud, data Edge, iot, 5g, and ai. They will come together to deliver business outcomes. So that's where we are heading with Cobalt 2.0. And that's essentially what we want to do with our customers. >>That's a lot to think about. Yes. And yeah, go for it. >>David. I just say from a partnering perspective, you know, prior to cloud we were talking about transactional type businesses where if you ask a technology company who their partner is, is generally a reseller where they're just basically taking one product and selling it to their, their client. What's happened with cloud now, it's not about the transaction up front, it's about the, the actual, you know, the consumption of the technology and the bringing together all of these to form an outcome. It changes the model dramatically. And, and quite honestly, you know, the global system integrators like emphasis are in a great position cuz we can pull that together to the benefit our of our partners put our own secret sauce around it and take these solutions to market and drive consumption. Cuz that's what the cloud's all about. >>Absolutely. Right. How are you helping customers really treat cloud as a strategic focus? You know, we, we often hear companies talk about we're we're cloud first. Well, not everything belongs in the cloud. So then we hear companies start talking about being cloud smart. Yes. How are you helping? And so we'll go with that. How are you helping enterprises really become cloud smart and where is the partner angle? So we'll start with you and then we'll bring the partner angle in. >>Sure. Oh yeah, big time. I think one of the things that we have been educating our customers is cloud is not about cost takeout. So cloud is about innovation, cloud is about growth. And I'll give two examples. One of one of the beauty products companies, they wanted to set up their shop in us and they said that, you know, we don't have time to basically buy the infrastructure, implement an er p platform and you know, or roll it out, test it, and go into production. We don't have so much time, time to market is very important for us. And they embarked on the cloud journey. So expanding into new market cloud can play a big role. That is one of the ways to expand and, you know, grow your business. Similarly, there is another company that they, they wanted to get into retail banking, right? And they didn't have years to launch a product. So they actually use AWS and it's a joint infos and AWS customer, a pretty big bank. They launched into, they launched retail banking and they did it in less than six months. So I think these are some of the examples of, wow, it's Snap Cloud not being cost takeout, but it's about innovation and growth. So that's what we are trying to tell >>Customers. Big impacts, big impact. >>Absolutely. And that's where the, the Cobalt assets come into play as well. We, you know, as as not mentioned, we have literally thousand of these industries specific, and they're derived in, in a lot of cases in, in, in partnership with the, the companies you see down the, the aisles here and, and aws. And it accelerates the, the, the deployments and ensures a accessible adoption more so than before. You know, we, we have clients that are coming to us now that used to buy, run their own procurement. You know, they, they would have literally, there was one bank that came to us with a over a hundred, >>The amount of work. Yeah. >>A list of a hundred products. Some they bought directly from a, a vendor, some they went through a distributor, something went through a, a seller and such. And they're, they're, now they're looking at this in a completely different way. And they're looking to rationalize those, those technologies, again, look for companies that will contract for a business outcome and leverage the cloud and get to that next era. And it's, it's a, it's a fun time. We're really excited. >>I can imagine you, you're really a part of the transformation process for a lot of these companies. Absolutely. And when we were chatting before we went live, you talked about your passion for business outcomes. Can you give us a couple examples of customers or business outcomes that really get you and the team excited? Same thing to you, David, after. Yeah, >>Well, absolutely. Even our contractual structures are now moving into business outcomes. So we are getting paid by the outcomes that we are delivering, right? So one of the insurance customers that we have, we actually get paid by the number of claims that we process, right? Similarly, there is a healthcare customer where we actually get paid by the number of customers that we cater to from a Medicare and Medicaid standpoint, right? >>Tangible results versus >>Projected forecast. Successful process of >>Claims. That's interesting. Exactly. Yeah. I love reality. Yeah, reality. What a novel idea. Yeah. >>One of the great examples you hear about airplane engines now that the model is you don't buy the engine. You basically pay for the hours that it's used and the maintenance and the downtime so that they, you take the risk away. You know, you put that in the context of a traditional business, you're taking away the risk of owning the individual asset, the maintenance, any, any of the issues, the bug fixes. And again, you're, you're partnering with a company like Emphasis will take on that based upon our knowledge and based upon our vast experience, we can confidently contract in that way that, you know, years ago that wasn't possible. >>It's kind of a sharing economy at scale style. >>Exactly. Absolutely. >>Yeah. Which is really exciting. So we have a new challenge here on the cube this year at ve We are looking for your 32nd Instagram real sizzle sound bite, your hot take your thought leadership on the, the biggest theme or most important thing coming out of this year's show. David, we'll start with you. We've been starting with it on, I'm to go to you. We're making eye contact right now, so you're in the hot seat. >>Well, let's, I I think there's a lot of time given to sustainability on the stage this week, and I think that, you know, every, every CEO that we talk to is bringing that up as a major priority and that's a very important element for us as a company and as a service >>Provider. I mean, you're obviously award-winning and the sustainability department. Exactly. >>Yes. Nice little plug there. You know, and I, I think the other things that have come up, we saw a lot about data analytics this week. You know, I think new offerings from aws, but also new partnerships that we're gonna take advantage of. And, and again, security has been a hot topic. >>Absolutely. And not, what's your hot take? >>Yeah. I think one, one very exciting thing for partners like us is the, the reimagining that is being done by rhu for the partners, right? The AWS marketplace. I think that is a big, big thing that I took out. Of course, sustainability is huge. Like Adam said, the fastest way to become sustainable is to move to cloud, right? So rather than overthinking and over-engineering this whole topic, just take your workloads and move it to cloud and you'll be sustainable. Right. So I think that's the second one. And third is of course cyber security. Zscaler, Palo Alto, CrowdStrike. These are some of the big companies that are at the event here. And we have been partnering with them many more. I'm just calling out three names, but many more. I think cyber security is the next one. So I think these are three on top of my mind. >>Just, just a few things you casually think about. That was great, great responses from both of you and David, such a pleasure to have you both with us. We hope to have you back again. You're doing such exciting things. I'm sure that everything we talked about is gonna be a hot topic for many years to come as, as people navigate the future, as well as continue their business transformations. It is always a joy to sit next to you on stage. Likewise. Thank you. And thank all of you wherever you're tuning in from. For joining us here at AWS Reinvent Live from Las Vegas, Nevada, with Lisa Martin. I'm Savannah Peterson. And for the last time today, this is the cube, the leader in high tech coverage.

(soft music) >> Welcome back to Sin City, guys and girls we're glad you're with us. You've been watching theCUBE all week, we know that. This is theCUBE's live coverage of AWS re:Invent 22, from the Venetian Expo Center where there are tens of thousands of people, and this event if you know it, covers the entire strip. There are over 55,000 people here, hundreds of thousands online. Dave, this has been a fantastic show. It is clear everyone's back. We're hearing phenomenal stories from AWS and it's ecosystem. We got a great customer story coming up next, featured on the main stage. >> Yeah, I mean, you know, post pandemic, you start to think about, okay, how are things changing? And one of the things that we heard from Adam Selipsky, was, we're going beyond digital transformation into business transformation. Okay. That can mean a lot of things to a lot of people. I have a sense of what it means. And I think this next interview really talks to business transformation beyond digital transformation, beyond the IT. >> Excellent. We've got two guests. One of them is an alumni, Scott Mullins joins us, GM, AWS Worldwide Financial Services, and Brad Peterson is here, the EVP, CIO and CTO of NASDAQ. Welcome guys. Great to have you. >> Hey guys. >> Hey guys. Thanks for having us. >> Yeah >> Brad, talk a little bit, there was an announcement with NASDAQ and AWS last year, a year ago, about how they're partnering to transform capital markets. It was a highlight of last year. Remind us what you talked about and what's gone on since then. >> Yeah, so, we are very excited. I work with Adena Friedman, she's my boss, CEO of NASDAQ, and she was on stage with Adam for his first Keynote as CEO of AWS. And we made the commitment that we were going to move our markets to the Cloud. And we've been a long time customer of AWS and everyone said, you know the last piece, the last frontier to be moved was the actual matching where all the messages, the quotes get matched together to become confirmed orders. So that was what we committed to less than a year ago. And we said we were going to move one of our options markets. In the US, we have six of them. And options markets are the most challenging, they're the most high volume and high performance. So we said, let's start with something really challenging and prove we can do it together with AWS. So we committed to that. >> And? Results so far? >> So, I can sit here and say that November 7th so we are live, we're in production and the MRX Exchange is called Mercury, so we shorten it for MRX, we like acronyms in technology. And so, we started with a phased launch of symbols, so you kind of allow yourself to make sure you have all the functionality working then you add some volume on it, and we are going to complete the conversion on Monday. So we are all good so far. And I have some results I can share, but maybe Scott, if you want to talk about why we did that together. >> Yeah. >> And what we've done together over many years. >> Right. You know, Brian, I think it's a natural extension of our relationship, right? You know, you look at the 12 year relationship that AWS and NASDAQ have had together, it's just the next step, in the way that we're going to help the industry transform itself. And so not just NASDAQ's business transformation for itself, but really a blueprint and a template for the entire capital markets industry. And so many times people will ask me, who's using Cloud well? Who's doing well in the Cloud? And NASDAQ is an easy example to point to, of somebody who's truly taking advantage of these capabilities because the Cloud isn't a place, it's a set of capabilities. And so, this is a shining example of how to use these capabilities to actually deliver real business benefit, not just to to your organization, but I think the really exciting part is the market technology piece of how you're serving other exchanges. >> So last year before re:Invent, we said, and it's obvious within the tech ecosystem, that technology companies are building on top of the Cloud. We said, the big trend that we see in the 2020s is that, you know, consumers of IT, historically, your customers are going to start taking their stacks, their software, their data, their services and sassifying, putting it on the Cloud and delivering new services to customers. So when we saw Adena on stage last year, we called it by the way, we called it Super Cloud. >> Yeah. >> Okay. Some people liked the term but I love it. And so yeah, Super Cloud. So when we saw Adena on stage, we said that's a great example. We've seen Capital One doing some similar things, we've had some conversations with US West, it's happening, right? So talk about how you actually do that. I mean, because you've got a lot, you've got a big on-premises stay, are you connecting to that? Is it all in the Cloud? Paint a picture of what the architecture looks like? >> Yeah. And there's, so you started with the business transformation, so I like that. >> Yeah. >> And the Super Cloud designation, what we are is, we own and operate exchanges in the United States and in Europe and in Canada. So we have our own markets that we're looking at modernizing. So we look at this, as a modernization of the capital market infrastructure, but we happen to be the leading technology provider for other markets around the world. So you either build your own or you source from us. And we're by far the leading provider. So a lot of our customers said, how about if you go first? It's kind of like Mikey, you know, give it to Mikey, let him try it. >> See if Mikey likes it. >> Yeah. >> Penguin off the iceberg thing. >> Yeah. And so what we did is we said, to make this easy for our customers, so you want to ask your customers, you want to figure out how you can do it so that you don't disrupt their business. So we took the Edge Compute that was announced a few years ago, Amazon Outposts, and we were one of their early customers. So we started immediately to innovate with, jointly innovate with Amazon. And we said, this looks interesting for us. So we extended the region into our Carteret data center in Northern New Jersey, which gave us all the services that we know and love from Amazon. So our technical operations team has the same tools and services but then, we're able to connect because in the markets what we're doing is we need to connect fairly. So we need to ensure that you still have that fairness element. So by bringing it into our building and extending the Edge Compute platform, the AWS Outpost into Carteret, that allowed us to also talk very succinctly with our regulators. It's a familiar territory, it's all buttoned up. And that simplified the conversion conversation with the regulators. It simplified it with our customers. And then it was up to us to then deliver time and performance >> Because you had alternatives. You could have taken a more mature kind of on-prem legacy stack, figured out how to bolt that in, you know, less cloudy. So why did you choose Outposts? I am curious. >> Well, Outposts looked like when it was announced, that it was really about extending territory, so we had our customers in mind, our global customers, and they don't always have an AWS region in country. So a lot of you think about a regulator, they're going to say, well where is this region located? So finally we saw this ability to grow the Cloud geographically. And of course we're in Sweden, so we we work with the AWS region in Stockholm, but not every country has a region yet. >> And we're working as fast as we can. - Yes, you are. >> Building in every single location around the planet. >> You're doing a good job. >> So, we saw it as an investment that Amazon had to grow the geographic footprint and we have customers in many smaller countries that don't have a region today. So maybe talk a little bit about what you guys had in mind and it's a multi-industry trend that the Edge Compute has four or five industries that you can say, this really makes a lot of sense to extend the Cloud. >> And David, you said it earlier, there's a trend of ecosystems that are coming onto the Cloud. This is our opportunity to bring the Cloud to an ecosystem, to an existing ecosystem. And if you think about NASDAQ's data center in Carteret, there's an ecosystem of NASDAQ's clients there that are there to be with NASDAQ. And so, it was actually much easier for us as we worked together over a really a four year period, thinking about this and how to make this technological transition, to actually bring the capabilities to that ecosystem, rather than trying to bring the ecosystem to AWS in one of our public regions. And so, that's been our philosophy with Outpost all along. It's actually extending our capabilities that our customers know and love into any environment that they need to be able to use that in. And so to Brad's point about servicing other markets in different countries around the world, it actually gives us that ability to do that very quickly, very nimbly and very succinctly and successfully. >> Did you guys write a working backwards document for this initiative? >> We did. >> Yeah, we actually did. So to be, this is one of the fully exercised. We have a couple of... So by the way, Scott used to work at NASDAQ and we have a number of people who have gone from NASDAQ data to AWS, and from AWS to NASDAQ. So we have adopted, that's one of the things that we think is an effective way to really clarify what you're trying to accomplish with a project. So I know you're a little bit kidding on that, but we did. >> No, I was close. Because I want to go to the like, where are we in the milestone? And take us through kind of what we can expect going forward now that we've worked backwards. >> Yep, we did. >> We did. And look, I think from a milestone perspective, as you heard Brad say, we're very excited that we've stood up MRX in production. Having worked at NASDAQ myself, when you make a change and when you stand up a market that's always a moment where you're working with your community, with your clients and you've got a market-wide call that you're working and you're wanting to make sure that everything goes smoothly. And so, when that call went smoothly and that transition went smoothly I know you were very happy, and in AWS, we were also very happy as well that we hit that milestone within the timeframe that Adena set. And that was very important I know to you. >> Yeah. >> And for us as well. >> Yeah. And our commitment, so the time base of this one was by the end of 2022. So November 7th, checked. We got that one done. >> That's awesome. >> The other one is we said, we wanted the performance to be as good or better than our current platform that we have. And we were putting a new version of our derivative or options software onto this platform. We had confidence because we already rolled it to one market in the US then we rolled it earlier this year and that was last year. And we rolled it to our nordic derivatives market. And we saw really good customer feedback. So we had confidence in our software was going to run. Now we had to marry that up with the Outpost platform and we said we really want to achieve as good or better performance and we achieved better performance, so that's noticeable by our customers. And that one was the biggest question. I think our customers understand when we set a date, we test them with them. We have our national test facility that they can test in. But really the big question was how is it going to perform? And that was, I think one of the biggest proof points that we're really proud about, jointly together. And it took both, it took both of us to really innovate and get the platform right, and we did a number of iterations. We're never done. >> Right. >> But we have a final result that says it is better. >> Well, congratulations. - Thank you. >> It sounds like you guys have done a tremendous job. What can we expect in 2023? From NASDAQ and AWS? Any little nuggets you can share? >> Well, we just came from the partner, the partner Keynote with Adam and Ruba and we had another colleague on stage, so Nick Ciubotariu, so he is actually someone who brought digital assets and cryptocurrencies onto the Venmo, PayPal platform. He joined NASDAQ about a year ago and we announced that in our marketplace, the Amazon marketplace, we are going to offer digital custody, digital assets custody solution. So that is certainly going to be something we're excited about in 2023. >> I know we got to go, but I love this story because it fits so great at the Super cloud but we've learned so much from Amazon over the years. Two pieces of teams, we talked about working backwards, customer obsession, but this is a story of NASDAQ pointing its internal capabilities externally. We're already on that journey and then, bringing that to the Cloud. Very powerful story. I wonder what's next in this, because we learn a lot and we, it's like the NFL, we copy it. I think about product market fit. You think about scientific, you know, go to market and seeing that applied to the financial services industry and obviously other industries, it's really exciting to see. So congratulations. >> No, thank you. And look, I think it's an example of Invent and Simplify, that's another Amazon principle. And this is, I think a great example of inventing on behalf of an industry and then continually working to simplify the way that the industry works with all of us. >> Last question and we've got only 30 seconds left. Brad, I'm going to direct it to you. If you had the opportunity to take over the NASDAQ sign in Times Square and say a phrase that summarizes what NASDAQ and AWS are doing together, what would it say? >> Oh, and I think I'm going to put that up on Monday. So we're going to close the market together and it's going to say, "Modernizing the capital market's infrastructure together." >> Very cool. >> Excellent. Drop the mic. Guys, this was fantastic. Thank you so much for joining us. We appreciate you joining us on the show, sharing your insights and what NASDAQ and AWS are doing. We're going to have to keep watching this. You're going to have to come back next year. >> All right. >> For our guests and for Dave Vellante, I'm Lisa Martin. You're watching theCUBE, the leader in live enterprise and emerging tech coverage. (soft music)

(upbeat music) >> Good afternoon everyone. Welcome back to The Cube's live coverage of AWS Reinvent 22 from Vegas. We're at the Venetian Expo Hall, we're hearing north of 50 000 people. I know we've been giving you different numbers but that's kind of what we've settled on here. Hundreds of thousands are watching online. This is a huge event people. John Ferrior and Lisa Martin are ready to be back. >> Yes, it's really great show. A lot of change going on at Amazon. They're continuing the innovation, continuing to grow. The theme this year's Data Security. And their partner ecosystem, which is continuing to grow. Their partners are filling the gaps on solutions. And it's just a whole nother, I think partner friendly cloud. This NextGen wave that's coming is really, the next thing segment I think speaks to that, I'm looking forward to this. >> It does. We're going to be digging into that partner network. We've got two guests, one of them is an alumni, Reza Honarmand SVP Global Cloud at TD Synnex. Great to have you back. >> Yeah. >> Sergio Farache joins us as well the Chief Strategy Officer at TD Synnex. Welcome to the program. >> Thank you. >> Thank you for having us. >> Great to be back in person, isn't it? >> Yeah absolutely. That's great experience. >> Amazing, the energy here at the highest level since we came here Monday night, which is great. Sergio, I want to start with you. Last year when you guys were on the show Tech Data. Tech Data has been around a long time now you're TD Synnex. Talk a little bit about that, what's new, that transformation? >> Yeah, that is correct. It's great to be able now to present it in Synnex as a new merger between Tech Data and Synnex Corporation. And now we are the largest distributor basically across the world with more than $62 billion in a business. And Amazon is obviously an strategic partner with a hyper growth and we have been very focused to working with them to expand that partner ecosystem across solution ISVs and service providers. That has been very nice experience combine these two company and now have the reach and skill that enable more than 140,000 partners across the world. >> Wow. >> And the partner's message here is changing too. The new leader, Ruba is up on stage talking about this new partner paths, a lot of changes in a good way. They're bringing people together. What's your guys take and reaction to AWS's new posture towards partners? Obviously the ecosystem we see going to be doubling and tripling we see in size. And also the value proposition being stronger too and more money making of course. But the new Amazon's posture with partners. What's your reaction? >> Well, (indistinct) just an hour ago. Fantastic. I mean, if I look at the change from when we first got here a few years ago to now, it is beyond comparison. The realization is that technology and especially what we work with Amazon is deflationary force and we need scale to actually drive that across all of our partners to the customers. And yeah, I can only see that accelerating now in terms of what Amazon is doing and actually with the channel and what Ruba is doing. I think this is exactly in the right direction. >> What's your message? >> My message is, this is now channel. This is channel and this is serious. So partners with Amazon equals growth. >> As we've seen so much transformation in the last couple of years, Sergio, with every business having to become digital to survive. Right and then to eventually thrive and succeed and grow in the challenging economic times that we've had. What are some of the, the pivots that TD Synnex has made through your partner program to meet customer needs to accelerate their transformation? >> Yeah, as you said, has been a significant transformation. I think that in the past was clear what was a technology company and what industrial company, et cetera and those frontiers are blending right now. Then as a consequence we have been investing in several elements. Once is to really increase the capability of the partner network in a way that they can on one side provide more solution-oriented activities to those customers to drive either growth or cost optimization. The other element has been verticalization meaning know the industry where you are playing. We have been investing in the healthcare market, of course as a consequence of all the demand that has been generating. But at the same time and we recently announced the competence in the government sector where we expand drastically our capabilities around specifically the federal, and non feral business, but not only in US but across the world with those elements. Then I would say it's a combination of enhancing the skill, enhancing the knowledge on the industry, and finally provide the tools through our platform to enable the partner to operate in a digital way and enable the access of ISVs to digitally and serving the customers end to end. >> Is that the ISV experience project that I heard about? ISV experience with SaaS companies, Is that what you're referring to? >> Yeah, ISVs is one. ISP experience is one of the components that we use, but basically what we are trying to achieve with the ISV is helping in the journey of specification. It's how you transform either a partner that is born in the cloud or a partner that is still in the, in the OnPrem side how you transition to the cloud and enabling how you reach to the end user in a more effective way. And how we expose 140,000 partner across the multiple geographies to help those ISVs to reach more customers. >> It's great distribution. I mean this is, a business model innovation. >> Sorry? >> It's a business model innovation for these ISVs. >> Absolutely. Some of the ISVs, as you can imagine they're incumbent with us. We work with them. So actually it's finding new ways of consuming technology. But there's thousands of them that actually do not understand how to operate with a channel. And this is a part where we help them with the channel, build a program. Coach them through the process, help them access the partners and the customers that Sergio was referring to. >> Let me ask you guys a question. Where's the growth going to come from? I mean you mentioned ecosystem, more growth, Ruba was mentioned that's where the growth is. They are serious. She's going to deliver that keynote now. Where do you guys see your growth coming from? >> Well, to be honest the growth is unlimited in our opinion, right. It's so many areas. >> The wave is still coming. Yeah >> The wave is still there, you know. When you see still the amount of platform that need to be immigrated to the cloud then we have been investing in a significant way in enable capabilities of migration programs from the on-premise to off premise. At the same time, we have been expanding geographically because it's still several segments and markets we operate globally. As an example we recently launched our public sector capability in Latin America and Europe, expanding those segments. And in addition to that again, how we bring more ISVs more solution oriented driven than many spots of growth. And I think that Amazon message recently recognized more and more the value of nobody have all the solutions. You need this ecosystem plan together to bring those solutions to market. >> So if I build on that. If we look at the growth in public cloud last year, was around $40 billion. We expect a similar growth level this year as well. I mentioned about deflationary force, the technology being a deflationary force. Now everybody knows a lot of businesses out there are going under a lot of challenges. So they have to compete, they have to have the insights they have to be efficient and actually they're going to get a lot of that through the technologies that we're talking about here. The key to that is partners with the right skillsets. What we are seeing is the partners with the skillsets who can participate in that $40 billion growth, take a big, big share of it. >> And you guys are providing a great service. I think when I wrote the story on Friday that I published one of my premise was, is that this Next-Gen cloud is going to lift up more ISVs which is kind of a legacy classic, independent software vendor. Create new kinds of partners that have platforms or unique solutions for verticals. So, the ISV classic definition will still exist and new customers are emerging. It's got a new dynamic developing. We're seeing people build clouds on top of the cloud tap the ecosystem, partner distribution, services. It's a whole new way to build and take something to market. What do you guys think about that? >> Yeah, I think that the beauty of our position in the market is that we are in the center of that ecosystem. Again, we have access to thousands of ISVs thousands of hardware vendors, the hyper-scalers then somebody need to put all those pieces together. That is our role in the market. >> It's a good position to be in. >> It's a good place to be. And enabling those partners now to collaborate with all those entities to bring the solution because the customer is not acquiring technology anymore. They're acquiring a solution to a problem now. And that solution require multiple components. >> Last year. No, this year, I'm sorry. You guys were announced as EMEA distributor of the, of the year. Congratulations on that. >> Yeah, thank you. Talk about that in terms of just the evolution of the partnership. >> The partnership in EMEA is now across our entire geo. The growth that we have driven across the EMEA market space, is I think the reason why we have won it. As well as the competencies that we have built. Now you were just talking about ISVs to give you an example, there are many ISVs that sit in EMEA that want to access the US market and vice versa. So where we sit in the middle and enable that access. The frameworks that they need to move. So those are the kind of things that contribute to the strengthened in the relationship and what those awards are coming from. >> Yeah. The other critical factor here is, again how we bring more capillarity in terms of the serve to the market to Amazon. And that has been another component of data that we are very thankful. Again, we has been enabling and bringing numerous new partners and numerous new end customers that now have access, support and services. Including again, the competencies that we already described but including service oriented businesses like migration, like cost optimization of the use, et cetera. That now we through partners serve to the market. >> Reza and Sergio, I want ask you guys a question around trust. Trust. You're a trust broker because you have a lot of services and people and companies to put together. We were just talking about the good position you're in. >> Trust is a big part of your relationship with your customers. You've got two sides of your business, you got one side's the supply side and you got the distribution side and then both sides are working together, requires a lot of trust. What's that look like inside your company? Can you just chip in and explain, take a bit to explain what's that like? The culture of the company and that trust. >> Yeah, absolutely. And that is why the term of trust advisor came to the table right? And again, for more than 40 years we have been building this ecosystem. We have been driving that motion and we have been proving to the market a consistent approach with a strong support to the two tier model. We never, you know get in opposition to our customers and we enable those customers in a consistent way. And I think that trust is something that you earn, not something that you ask for. And that is what we are doing day to day basis. >> Congratulations, it's been great. Great chatting with you. Challenge time? For the challenge time? >> Challenge time. >> Alright guys. >> New challenge on the Cuba new format. We usually say yes at the end of the interview. What's take on the show, what's the bumper sticker? So think of it like an Instagram reel, thought leadership, hot take. Each of you, spend a minute 30 seconds to share a hot take, thought leadership, what you think was going on at Amazon? Why you're here? What's important? What would you say if you were going to do an Instagram reel right now? >> Yeah, the Amazon enable a new way to do business and a new transformation of the digital economy. We are here TD Synnex to expand that capability across the segments. Enhancing partners to reach to their goals and in users to get those transformations. In general we will provide what is needed and we continue investing to continue growing the capacity across all geographies and all the type of solutions that we deliver. >> All right, Sergio you nailed it. Reza you're up. Your hot take your sizzle reel. >> Well, frankly I think Sergio nailed it. It's about covering the geos and taking the competencies and make sure we execute consistently across all of our geos. >> All right, nailed it. Thanks so much. >> Consistent execution. Reza, Sergio. Thank you so much for joining John and me on the program, talking about what TD Synnex has done since we've last seen you. What you're doing with AWS and the partner ecosystem. We really appreciate you stopping by this side. >> Thank you very much. Thank you for the time. >> Alright, our pleasure. For our guests and for John Furrier, I'm Lisa Martin. You're watching theCUBE, the leader at Live Tech coverage.

(upbeat music) (logo shimmers) >> Good afternoon everyone, and welcome back to AWS re Invent 2022. We are live here from the show floor in Las Vegas, Nevada, we're theCUBE, my name is Savannah Peterson, joined by John Furrier, John, are you excited for the next segment? >> I love the innovation story, this next segment's going to be really interesting, an example of ecosystem innovation in action, it'll be great. >> Yeah, our next guests are actually award-winning, I am very excited about that, please welcome Alan and Becky from IBM. Thank you both so much for being here, how's the show going for ya? Becky you got a, just a platinum smile, I'm going to go to you first, how's the show so far? >> No, it's going great. There's lots of buzz, lots of excitement this year, of course, three times the number of people, but it's fantastic. >> Three times the number of people- >> (indistinct) for last year. >> That is so exciting, so what is that... Do you know what the total is then? >> I think it's over 55,000. >> Ooh, loving that. >> John: A lot. >> It's a lot, you can tell by the hallways- >> Becky: It's a lot. >> John: It's crowded, right. >> Yeah, you can tell by just the energy and the, honestly the heat in here right now is pretty good. Alan, how are you feeling on the show floor this year? >> Awesome, awesome, we're meeting a lot of partners, talking to a lot of clients. We're really kind of showing them what the new IBM, AWS relationship is all about, so, beautiful time to be here. >> Well Alan, why don't you tell us what that partnership is about, to start us off? >> Sure, sure. So the partnership started with the relationship in our consulting services, and Becky's going to talk more about that, right? And it grew, this year it grew into the IBM software realm where we signed an agreement with AWS around May timeframe this year. >> I love it, so, like you said, you're just getting started- >> Just getting started. >> This is the beginning of something magic. >> We're just scratching the surface with this right? >> Savannah: Yeah. >> But it represents a huge move for IBM to meet our clients where they are, right? Meet 'em where they are with IBM technology, enterprise technology they're used to, but with the look and feel and usage model that they're used to with AWS. >> Absolutely and so to build on that, you know, we're really excited to be an AWS Premier Consulting Partner. We've had this relationship for a little over five years with AWS, I'd say it's really gone up a notch over the last year or two as we've been working more and more closely, doubling down on our investments, doubling down on our certifications, we've got over 15,000 people certified now, almost 16,000 actually- >> Savannah: Wow. >> 14 competencies, 16 service deliveries and counting. We cover a mass of information and services from Data Analytics, IoT, AI, all the way to Modernization, SAP, Security Services, right. So it's pretty comprehensive relationship, but in addition to the fantastic clients that we both share, we're doing some really great things around joint industry solutions, which I'll talk about in a few minutes and some of those are being launched at the conference this year, so that's even better. But the most exciting thing to me right now is that we just found out that we won the Global Innovator Partner of the Year award, and a LATAM Partner of the Year award. >> Savannah: Wow. >> John: That's (indistinct) >> So, super excited for IBM Consulting to win this, we're honored and it's just a great, exciting part to the conference. >> The news coming out of this event, we know tomorrow's going to be the big keynote for the new Head of the ecosystem, Ruba. We're hearing that it's going to be all about the ecosystem, enabling value creation, enabling new kinds of solutions. We heard from the CEO of AWS, this nextGen environment's upon us, it's very solution-oriented- >> Becky: Absolutely. >> A lot of technology, it's not an either or, it's an and equation, this is a huge new shift, I won't say shift, a continuation for AWS, and you guys, we've been covering, so you got the and situation going on... Innovation solutions and innovation technology and customers can choose, build a foundation or have it out of the box. What's your reaction to that? Do you think it's going to go well for AWS and IBM? >> I think it fits well into our partnership, right? The the thing you mentioned that I gravitate to the most is the customer gets to choose and the thing that's been most amazing about the partnership, both of these companies are maniacally focused on the customer, right? And so we've seen that come about as we work on ways the customer to access our technology, consume the technology, right? We've sold software on-prem to customers before, right, now we're going to be selling SaaS on AWS because we had customers that were on AWS, we're making it so that they can more easily purchase it by being in the marketplace, making it so they can draw down their committed spin with AWS, their customers like that a lot- [John] Yeah. >> Right. We've even gone further to enable our distributor network and our resellers, 'cause a lot of our customers have those relationships, so they can buy through them. And recently we've enabled the customer to leverage their EDP, their committed spend with AWS against IBM's ELA and structure, right, so you kind of get a double commit value from a customer point of view, so the amazing part is just been all about the customers. >> Well, that's interesting, you got the technology relationship with AWS, you mentioned how they're engaging with the software consumption in marketplace, licensed deals, there's all kinds of new business model innovations on top of the consumption and building. Then you got the consulting piece, which is again, a big part of, Adam calls it "Business transformation," which is the result of digital transformation. So digital transformation is the process, the outcome is the business transformation, that's kind of where it all kind of connects. Becky, what's your thoughts on the Amazon consulting relationships? Obviously the awards are great but- >> They are, no- >> What's the next step? Where does it go from here? >> I think the best way for me to describe it is to give you some rapid flyer client examples, you know, real customer stories and I think that's where it really, rubber meets the road, right? So one of the most recent examples are IBM CEO Arvind Krishna, in his three key results actually mentioned one of our big clients with AWS which is the Department of Veterans Affairs in the US and is an AI solution that's helped automate claims processing. So the veterans are trying to get their benefits, they submit the claims, snail mail, phone calls, you know, some in person, some over email- >> Savannah: Oh, it gives me all the feels hearing you talk about this- >> It's a process that used to take 25 to 30 days depending on the complexity of the claims, we've gotten it down with AWS down to within 24 hours we can get the veterans what they need really quickly so, I mean, that's just huge. And it's an exciting story that includes data analytics, AI and automation, so that's just one example. You know, we've got examples around SAP where we've developed a next generation SAP for HANA Platform for Phillips Carbon Black hosted on AWS, right? For them, it created an integrated, scalable, digital business, that cut out a hundred percent the capital cost from on-prem solutions. We've got security solutions around architectures for telecommunications advisors and of course we have lots of examples of migration and modernization and moving workloads using Red Hat to do that. So there's a lot of great client examples, so to me, this is the heart of what we do, like you said, both companies are really focused on clients, Amazon's customer-obsessed, and doing what we can for our clients together is where we get the impact. >> Yeah, that's one of the things that, it sounds kind of cliche, "Oh we're going to work backwards from the customer," I know Amazon says that, they do, you guys are also very customer-focused but the customers are changing. So I'd love to get your reaction because we're now in that cloud 2.0, I call that 2.0 or you got the Amazon Classic, my word, and then Next Gen Cloud coming, the customers are different, they're transforming because IT's not a department anymore, it's in the DevOps pipeline. The developers are driving a lot of IT but security and on DataOps, it's the structural change happening at the customer, how do you guys see that at IBM? I know we cover a lot of Red Hat and Arvind talks to us all the time, meeting the customer where they are, where are they? Where are the customers? Can you share your perspective on where they are? >> It's an astute observation, right, the customer is changing. We have both of those sets of customers, right, we still have the traditional customer, our relationship with Central IT, right, and driving governance and all of those things. But the folks that are innovating many times they're in the line of business, they're discovering solutions, they're building new things. And so we need our offerings to be available to them. We need them to understand how to use them and be convenient for these guys and take them through that process. So that change in the customer is one that we are embracing by making our offerings easy to consume, easy to use, and easy to build into solutions and then easy to parlay into what central IT needs to do for governance, compliance, and these types of things, it's becoming our new bread and butter. >> And what's really cool is- >> Is that easy button- >> We've been talking about- >> It's the easy button. >> The easy button a lot on the show this week and if you just, you just described it it's exactly what people want, go on Becky. >> Sorry about that, I was going to say, the cool part is that we're co-creating these things with our clients. So we're using things like the Amazon Working Backward that you just mentioned.` We're using the IBM garage methodology to get innovative to do design working, design thinking workshops, and think about where is that end user?, Where is that stakeholder? Where are they, they thinking, feeling, doing, saying how do we make the easier? How do we get the easy button for them so that they can have the right solutions for their businesses. We work mostly with lines of business in my part of the organization, and they're hungry for that. >> You know, we had a quote on theCUBE yesterday, Savannah remember one of our guests said, you know, back in the, you know, 1990s or two 2000s, if you had four production apps, it was considered complex >> Savannah: Yeah. >> You know, now you got hundreds of workloads, thousands of workloads, so, you know, this end-to-end vision that we heard that's playing out is getting more complex, but the easy button is where these abstraction layers and technology could come in. So it's getting more complex because there's more stuff but it's getting easier because- >> Savannah: What is the magnitude? >> You can make it easier. This is a dynamic, share your thoughts on that. >> It's getting more complex because our clients need to move faster, right, they need to be more agile, right, so not only are there thousands of applications there are hundreds of thousands microservices that are composing those applications. So they need capabilities that help them not just build but govern that structure and put the right compliance over that structure. So this relationship- >> Savannah: Lines of governance, yeah- >> This relationship we built with AWS is in our key areas, it's a strategic move, not a small thing for us, it covers things like automation and integration where you need to build that way. It covers things like data and AI where you need to do the analytics, even things like sustainability where we're totally aligned with what AWS is talking about and trying to do, right, so it's really a good match made there. >> John: It really sounds awesome. >> Yeah, it's clear. I want to dig in a little bit, I love the term, and I saw it in my, it stuck out to me in the notes right away, getting ready for you all, "maniacal", maniacal about the customer, maniacal about the community, I think that's really clear when we're talking about 24 days to 24 hours, like the veteran example that you gave right there, which I genuinely felt in my heart. These are the types of collaborations that really impact people's lives, tell me about some of the other trends or maybe a couple other examples you might have because I think sometimes when our head's in the clouds, we talk a lot about the tech and the functionality, we forget it's touching every single person walking around us, probably in a different way right now than we may even be aware- >> I think one of the things that's been, and our clients have been asking us for, is to help coming into this new era, right, so we've come out of a pandemic where a lot of them had to do some really, really basic quick decisions. Okay, "Contact Center, everyone work from home now." Okay, how do we do that? Okay, so we cobbled something together, now we're back, so what do we do? How do we create digital transformation around that so that we are going forward in a really positive way that works for our clients or for our contact center reps who are maybe used to working from home now versus what our clients need, the response times they need, and AWS has all the technology that we're working with like Amazon Connect to be able to pull those things together with some of our software like Watson Assistant. So those types of solutions are coming together out of that need and now we're moving into the trend where economy's getting tougher, right? More cost cutting potentially is coming, right, better efficiencies, how do we leverage our solutions and help our clients and customers do that? So I think that's what the customer obsession's about, is making sure we really understand where their pain points are, and not just solve them but maybe get rid of 'em. >> John: Yeah, great one. >> Yeah. And not developing in a silo, I mean, it's a classic subway problem, you got to be communicating with your community if you want to continue to serve them. And IBM's been serving their community for a very long time, which is super impressive, do you think they're ready for the challenge? >> Let's do it. >> So we have a new thing on theCUBE. >> Becky: Oh boy. >> We didn't warn you about this, but here we go. Although you told, Alan, you've mentioned you're feeling very cool with the microphone on, so I feel like, I'm going to put you in the hot seat first on this one. Not that I don't think Becky's going to smash it, but I feel like you're channeling the power of the microphone. New challenges, treat it like a 32nd Instagram reel-style story, a hot take, your thought leadership, money clip, you know, this is your moment. What is the biggest takeaway, most important thing happening at the show this year? >> Most important thing happening at the show? Well, I'm glad you mentioned it that way, because earlier you said we may have to sing (presenters and guests all laughing) >> So this is much better than- >> That's actually part of the close. >> John: Hey, hey. >> Don't worry, don't worry, I haven't forgotten that, it's your Instagram reel, go. (Savannah laughs) >> Original audio happening here on theCUBE, courtesy of Alan and IBM, I am so here for it. >> So what my takeaway and what I would like for the audience to take away, out of this conversation especially, but even broadly, the IBM AWS relationship is really like a landmark type of relationship, right? It's one of the biggest that we've established on both sides, right- >> Savannah: It seems huge, okay you are too monolith in the world of companies, like, yeah- >> Becky: Totally. >> It's huge. And it represents a strategic change on both sides, right? With that customer- >> Savannah: Fundamentally- >> In the middle right? >> Savannah: Yeah. >> So we're seeing things like, you know, AWS is working with us to make sure we're building products the way that a AWS client likes to consume them, right, so that we have the right integration, so they get that right look and feel, but they still get the enterprise level capabilities they're used to from IBM, right? So the big takeaway I like for people to take, is this is a new IBM, it's a new AWS and IBM relationship, and so expect more of that goodness, more of those new things coming out of it. [John] Excellent, wow. >> That was great, well done, you nailed it. and you're going to finish with some acapella, right? (Alan laughs) >> You got a pitch pipe ready? (everyone laughs) >> All right Becky, what about you? Give us your hot take. >> Well, so for me, the biggest takeaway is just the way this relationship has grown so much, so, like you said, it's the new IBM it's the new AWS, we were here last year, we had some good things, this year we're back at the show with joint solutions, have been jointly funded and co-created by AWS and IBM. This is huge, this is a really big opportunity and a really big deal that these two companies have come together, identified joint customer needs and we're going after 'em together and we're putting 'em in the booth. >> Savannah: So cool. And there's things like smart edge for welding solutions that are out there. >> Savannah: Yes. >> You know, I talked about, and it's, you know you wouldn't think, "Okay, well what's that?" There's a lot to that, a lot of saving when you look at how you do welding and if you apply things like visual AI and auditory AI to make sure a weld is good. I mean, I think these are, these things are cool, I geek out on these things- >> John: Every vertical. >> I'm geeking out with you right now, just geeking- >> Yeah, yeah, yeah, so- >> Every vertical is infected. >> They are and it's so impactful to have AWS just in lockstep with us, doing these solutions, it's so different from, you know, you kind of create something that you think your customers like and then you put it out there. >> Yeah, versus this moment. >> Yeah, they're better together. >> It's strategic partnership- >> It's truly a strategic partnership. and we're really bringing that this year to reinvent and so I'm super excited about that. >> Congratulations. >> Wow, well, congratulations again on your awards, on your new partnership, I can't wait to hear, I mean, we're seven months in, eight months in to this this SaaS side of the partnership, can't wait to see what we're going to be talking about next year when we have you back on theCUBE. >> I know. >> and maybe again in between now and then. Alan, Becky, thank you both so much for being here, this was truly a joy and I'm sure you gave folks a taste of the new IBM, practicing what you preach. >> John: Great momentum. >> And I'm just, I'm so impressed with the two companies collaborating, for those of us OGs in tech, the big companies never collaborated before- >> Yeah. >> John: Yeah. Joint, co-created solutions. >> And you have friction between products and everything else. I mean's it's really, co-collaboration is, it's a big theme for us at all the shows we've been doing this year but it's just nice to see it in practice too, it's an entirely different thing, so well done. >> Well it's what gets me out of the bed in the morning. >> All right, congratulations. >> Very clearly, your energy is contagious and I love it and yeah, this has been great. Thank all of you at home or at work or on the International Space Station or wherever you might be tuning in from today for joining us, here in Las Vegas at AWS re Invent where we are live from the show floor, wall-to-wall coverage for three days with John Furrier. My name is Savannah Peterson, we're theCUBE, the source for high tech coverage. (cheerful upbeat music)

(bright music) >> Hello, everyone. Welcome back to live coverage day two or day one, day two for theCUBE, day one for the event. I'm John Furrier, host of theCUBE. It's the keynote analysis segment. Adam just finished coming off stage. I'm here with Dave Vellante and Zeus Kerravala, with principal analyst at ZK Research, Zeus, it's great to see you. Dave. Guys, the analysis is clear. AWS is going NextGen. You guys had a multi-day analyst sessions in on the pre-briefs. We heard the keynote, it's out there. Adam's getting his sea legs, so to speak, a lot of metaphors around ocean. >> Yeah. >> Space. He's got these thematic exploration as he chunked his keynote out into sections. Zeus, a lot of networking in there in terms of some of the price performance, specialized instances around compute, this end-to-end data services. Dave, you were all over this data aspect going into the keynote and obviously, we had visibility into this business transformation theme. What's your analysis? Zeus, we'll start with you. What's your take on what Amazon web service is doing this year and the keynote? What's your analysis? >> Well, I think, there was a few key themes here. The first one is I do think we're seeing better integration across the AWS portfolio. Historically, AWS makes a lot of stuff and it's not always been easy to use say, Aurora and Redshift together, although most customers buy them together. So, they announce the integration of that. It's a lot tighter now. It's almost like it could be one product, but I know they like to keep the product development separately. Also, I think, we're seeing a real legitimization of AWS in a bunch of areas where people said it wasn't possible before. Last year, Nasdaq said they're running in the cloud. The Options Exchange today announced that they're going to be moving to the cloud. Contact centers running the cloud for a lot of real time voice. And so, things that we looked at before and said those will never move to the cloud have now moved to the cloud. And I think, my third takeaway is just AWS is changing and they're now getting into areas to allow customers to do things they couldn't do before. So, if you look at what they're doing in the area of AI, a lot of their AI and ML services before were prediction. And I'm not saying you need an AI, ML to do prediction, was certainly a lot more accurate, but now they're getting into generative data. So, being able to create data where data didn't exist before and that's a whole new use case for 'em. So, AWS, I think, is actually for all the might and power they've had, it's actually stepping up and becoming a much different company now. >> Yeah, I had wrote that post. I had a one-on-one day, got used of the transcript with Adam Selipsky. He went down that route of hey, we going to change NextGen. Oh, that's my word. AWS Classic my word. The AWS Classic, the old school cloud, which a bunch of Lego blocks, and you got this new NextGen cloud with the ecosystems emerging. So, clearly, it's Amazon shifting. >> Yeah. >> But Dave, your breaking analysis teed out the keynote. You went into the whole cost recovery. We heard Adam talk about macro at the beginning of his keynote. He talked about economic impact, sustainability, big macro issues. >> Yeah. >> And then, he went into data and spent most of the time on the keynote on data. Tools, integration, governance, insights. You're all over that. You had that, almost your breaking analysis almost matched the keynote, >> Yeah. >> thematically, macro, cost savings right-sizing with the cloud. And last night, I was talking to some of the marketplace people, we think that the marketplace might be the center where people start managing their cost better. This could have an impact on the ecosystem if they're not in in the marketplace. So, again, so much is going on. >> What's your analogy? >> Yeah, there's so much to unpack, a couple things. One is we get so much insight from theCUBE community plus your sit down 101 with Adam Selipsky allowed us to gather some nuggets, and really, I think, predict pretty accurately. But the number one question I get, if I could hit the escape key a bit, is what's going to be different in the Adam Selipsky era that was different from the Jassy era. Jassy was all about the primitives. The best cloud. And Selipsky's got to double down on that. So, he's got to keep that going. Plus, he's got to do that end-to-end integration and he's got to do the deeper business integration, up the stack, if you will. And so, when you're thinking about the keynote and the spirit of keynote analysis, we definitely heard, hey, more primitives, more database features, more Graviton, the network stuff, the HPC, Graviton for HPC. So, okay, check on that. We heard some better end-to-end integration between the elimination of ETL between Aurora and Redshift. Zeus and I were sitting next to each other. Okay, it's about time. >> Yeah. >> Okay, finally we got that. So, that's good. Check. And then, they called it this thing, the Amazon data zones, which was basically extending Redshift data sharing within your organization. So, you can now do that. Now, I don't know if it works across regions. >> Well, they mentioned APIs and they have the data zone. >> Yep. And so, I don't know if it works across regions, but the interesting thing there is he specifically mentioned integration with Snowflake and Tableau. And so, that gets me to your point, at the end of the day, in order for Amazon, and this is why they win, to succeed, they've got to have this ecosystem really cranking. And that's something that is just the secret sauce of the business model. >> Yeah. And it's their integration into that ecosystem. I think, it's an interesting trend that I've seen for customers where everybody wanted best of breed, everybody wanted disaggregated, and their customers are having trouble now putting those building blocks together. And then, nobody created more building blocks than AWS. And so, I think, under Adam, what we're seeing is much more concerted effort to make it easier for customers to consume those building blocks in an easy way. And the AWS execs >> Yeah. >> I talked to yesterday all committed to that. It's easy, easy, easy. And I think that's why. (Dave laughing) Yeah, there's no question they've had a lead in cloud for a long time. But if they're going to keep that, that needs to be upfront. >> Well, you're close to this, how easy is it? >> Yeah. >> But we're going to have Adrian Cockcroft (Dave laughing) on at the end of the day today, go into one analysis. Now, that- >> Well, less difficult. >> How's that? (indistinct) (group laughing) >> There you go. >> Adrian retired from Amazon. He's a CUBE analyst retiree, but he had a good point. You can buy the bag of Lego blocks if you want primitives >> Yeah. >> or you can buy the toy that's glued together. And it works, but it breaks. And you can't really manage it, and you buy a new one. So, his metaphor was, okay, if the primitives allow you to construct a durable solutions, a lot harder relative to rolling your own, not like that, but also the simplest out-of-the box capability is what people want. They want solutions. We call Adam the solutions CEO. So, I think, you're going to start to see this purpose built specialized services allow the ecosystem to build those toys, so that the customers can have an out-of-the box experience while having the option for the AWS Classic, which is if you want durability, you want to tune it, you want to manage it, that's the way to go for the hardcore. Now, can be foundational, but I just see the solutions things being very much like an out-of-the-box. Okay, throw away, >> Yeah. >> buy a new toy. >> More and more, I'm saying less customers want to be that hardcore assembler of building blocks. And obviously, the really big companies do, but that line is moving >> Yeah. >> and more companies, I think, just want to run their business and they want those prebuilt solutions. >> We had to cut out of the keynote early. But I didn't hear a lot about... The example that they often use is Amazon Connect, the call center solution. >> Yeah. >> I didn't hear a lot to that in the keynote. Maybe it's happening right now, but look, at the end of the day, suites always win. The best of breed does well, (John laughing) takes off, generate a couple billion, Snowflake will grow, they'll get to 10 billion. But you look at Oracle, suites work. (laughs) >> Yeah. >> What I found interesting about the keynote is that he had this thematic exploration themes. First one was space that was like connect the dot, the nebula, different (mumbles) lens, >> Ocean. >> ask the right questions. (Dave laughing) >> Ocean was security which bears more, >> Yeah. >> a lot more needed to manage that oxygen going deep. Are you snorkeling? Are you scuba diving? Barely interesting amount of work. >> In Antarctica. >> Antarctica was the performance around how you handle tough conditions and you've got to get that performance. >> Dave: We're laughing, but it was good. >> But the day, the Ocean Day- >> Those are very poetic. >> I tweeted you, Dave, (Dave laughing) because I sit on theCUBE in 2011. I hate hail. (Dave laughing) It's the worst term ever. It's the day the ocean's more dynamic. It's a lot more flowing. Maybe 10 years too soon, Dave. But he announces the ocean theme and then says we have a Security Lake. So, like lake, ocean, little fun on words- >> I actually think the Security Lake is pretty meaningful, because we were listening to talk, coming over here talking about it, where I think, if you look at a lot of the existing solutions, security solutions there, I describe 'em as a collection of data ponds that you can view through one map, but they're not really connected. And the amount of data that AWS holds now, arguably more than any other company, if they're not going to provide the Security Lake, who is? >> Well, but staying >> Yeah. >> on security for a second. To me, the big difference between Azure and Amazon is the ecosystem. So, CrowdStrike, Okta, Zscaler, name it, CyberArk, Rapid7, they're all part of this ecosystem. Whereas Microsoft competes with all of those guys. >> Yes. Yeah. >> So it's a lot more white space than the Amazon ecosystem. >> Well, I want to get you guys to take on, so in your reaction, because I think, my vision of what what's happening here is that I think that whole data portion's going to be data as code. And I think, the ecosystem harvests the data play. If you look at AWS' key announcements here, Security Lake, price performance, they're going to optimize for those kinds of services. Look at security, okay, Security Lake, GuardDuty, EKS, that's a Docker. Docker has security problems. They're going inside the container and looking at threat detection inside containers with Kubernetes as the runtime. That's a little nuance point, but that's pretty significant, Dave. And they're now getting into, we're talking in the weeds on the security piece, adding that to their large scale security footprint. Security is going to be one of those things where if you're not on the inside of their security play, you're probably going to be on the outside. And of course, the price performance is going to be the killer. The networking piece surprise me. Their continuing to innovate on the network. What does that mean for Cisco? So many questions. >> We had Ajay Patel on yesterday for VMware. He's an awesome middleware guy. And I was asking about serverless and architectures. And he said, "Look, basically, serverless' great for stateless, but if you want to run state, you got to have control over the run time." But the point he made was that people used to think of running containers with straight VMs versus Fargate or Knative, if you choose, or serverless. They used to think of those as different architectures. And his point was they're all coming together. And it's now you're architecting and calling, which service you need. And that's how people are thinking about future architectures, which I think, makes a lot of sense. >> If you are running managed Kubernetes, which everyone's doing, 'cause no one's really building it in-house themselves. >> No. >> They're running it as managed service, skills gaps and a variety of other reasons. This EKS protection is very interesting. They're managing inside and outside the container, which means that gives 'em visibility on both sides, under the hood and inside the application layer. So, very nuanced point, Zeus. What's your reaction to this? And obviously, the networking piece, I'd love to get your thought. >> Well, security, obviously, it's becoming a... It's less about signatures and more of an analytics. And so, things happen inside the container and outside the container. And so, their ability to look on both sides of that allows you to happen threats in time, but then also predict threats that could happen when you spin the container up. And the difficulty with the containers is they are ephemeral. It's not like a VM where it's a persistent workload that you can do analysis on. You need to know what's going on with the container almost before it spins up. >> Yeah. >> And that's a much different task. So, I do think the amount of work they're doing with the containers gives them that entry into that and I think, it's a good offering for them. On the network side, they provide a lot of basic connectivity. I do think there's a role still for the Ciscos and the Aristas and companies like that to provide a layer of enhanced network services that connects multicloud. 'Cause AWS is never going to do that. But they've certainly, they're as legitimate network vendor as there is today. >> We had NetApp on yesterday. They were talking about latency in their- >> I'll tell you this, the analyst session, Steven Armstrong said, "You are going to hear us talk about multicloud." Yes. We're not going to necessarily lead with it. >> Without a mention. >> Yeah. >> But you said it before, never say never with Amazon. >> Yeah. >> We talk about supercloud and you're like, Dave, ultimately, the cloud guys are going to get into supercloud. They have to. >> Look, they will do multicloud. I predict that they will do multicloud. I'll tell you why. Just like in networking- >> Well, customers are asking for it. >> Well, one, they have the, not by design, but by defaulter and multiple clouds are in their environment. They got to deal with that. I think, the supercloud and sky cloud visions, there will be common services. Remember networking back in the old days when Cisco broke in as a startup. There was no real shortest path, first thinking. Policy came in after you connected all the routers together. So, right now, it's going to be best of breed, low latency, high performance. But I think, there's going to be a need in the future saying, hey, I want to run my compute on the slower lower cost compute. They already got segmentation by their announcements today. So, I think, you're going to see policy-based AI coming in where developers can look at common services across clouds and saying, I want to lock in an SLA on latency and compute services. It won't be super fast compared to say, on AWS, with the next Graviton 10 or whatever comes out. >> Yeah. >> So, I think, you're going to start to see that come in. >> Actually, I'm glad you brought Graviton up too, because the work they're doing in Silicon, actually I think, is... 'Cause I think, the one thing AWS now understands is some things are best optimized in Silicon, some at software layers, some in cloud. And they're doing work on all those layers. And Graviton to me is- >> John: Is a home run. >> Yeah. >> Well- >> Dave, they've got more instances, it's going to be... They already have Gravitons that's slower than the other versions. So, what they going to do, sunset them? >> They don't deprecate anything ever. So, (John laughing) Amazon paid $350 million. People believe that it's a number for Annapurna, which is like one of the best acquisitions in history. (group laughing) And it's given them, it's put them on an arm curve for Silicon that is blowing away Intel. Intel's finally going to get Sapphire Rapids out in January. Meanwhile, Amazon just keeps spinning out new Gravitons and Trainiums. >> Yeah. >> And so, they are on a price performance curve. And like you say, no developer ever wants to run on slower hardware, ever. >> Today, if there's a common need for multicloud, they might say, hey, I got the trade off latency and performance on common services if that's what gets me there. >> Sure. >> If there's maybe a business case to do that. >> Well, that's what they're- >> Which by the way, I want to.... Selipsky had strong quote I thought was, "If you're looking to tighten your belt, the cloud is the place >> Yeah. >> to do it." I thought >> I tweeted that. >> that was very strong. >> Yeah. >> Yeah. >> And I think, he's right. And then, the other point I want to make on that is, I think, I don't have any data on this, but I believe believe just based on some of the discussions I've had that most of Amazon's revenue is on demand. Paid by the drink. Those on demand customers are at risk, 'cause they can go somewhere else. So, they're trying to get you into optimized pricing, whether it's reserved instances or one year or three-year subscriptions. And so, they're working really hard at doing that. >> My prediction on that is that's a great point you brought up. My prediction is that the cost belt tightening is going to come in the marketplace, is going to be a major factor as companies want to get their belts tighten. How they going to do that, Dave? They're going to go in the marketplace saying, hey, I already overpaid a three-year commitment. Can I get some cohesively in there? Can I get some of this or that and the other thing? >> Yep. >> You're going to start to see the vendors and the ecosystem. If they're not in the marketplace, that's where I think, the customers will go. There are other choices to either cut their supplier base or renegotiate. I think, it's going to happen in the marketplace. Let's watch. I think, we're going to watch that grow. >> I actually think the optimization services that AWS has to help customers lower spend is a secret sauce for them that they... Customers tell me all the time, AWS comes in, they'll bring their costs down and they wind up spending more with them. >> Dave: Yeah. >> And the other cloud providers don't do that. And that has been almost a silver bullet for them to get customers to stay with them. >> Okay. And this is always the way. You drop the price of storage, you drop the price of memory, you drop the price of compute, people buy more. And in the question, long term is okay. And does AWS get commoditized? Is that where they're going? Or do they continue to thrive up the stack? John, you're always asking people about the bumper sticker. >> Hold on. (John drowns out Dave) Before we get the bumper sticker, I want to get into what we missed, what they missed on the keynote. >> Yeah, there are some blind spots. >> I think- >> That's good call. >> Let's go around the horn and think what did they miss? I'll start, I think, they missed the developer productivity angle. Supply chain software was not talked about at all. We see that at all the other conferences. I thought that could have been weaved in. >> Dave: You mean security in the supply chain? >> Just overall developer productivity has been one of the most constant themes I've seen at events. Who are building the apps? Who are the builders? What are they actually doing? Maybe Werner will bring that up on his last day, but I didn't hear Adam talk about it all, developer productivity. What's your take in this? >> Yeah, I think, on the security side, they announced security data lake. I think, the other cloud providers do a better job of providing insights on how they do security. With AWS, it's almost a black hole. And I know there's a careful line they walk between what they do, what their partners do. But I do think they could be a little clearer on how they operate, much like Azure and GCP. They announce a lot of stuff on how their operations works and things like that. >> I think, platform across cloud is definitely a blind spot for these guys. >> Yeah. >> I think, look at- >> But none of the cloud providers have embraced that, right? >> It's true. >> Yeah. >> Maybe Google a little bit >> Yeah. >> and Microsoft a little bit. Certainly, AWS hasn't at this point in time, but I think, they perceive the likes of Mongo and Snowflake and Databricks, and others as ISVs and they're not. They're platform players that are building across clouds. They're leveraging, they're building superclouds. So, I think that's an opportunity for the ecosystem. And very curious to see how Amazon plays there down the stream. So, John, what do you think is the bumper sticker? We're only in day one and a half here. What do you think so far the bumper sticker is for re:Invent 2022? >> Well, to me, the day one is about infrastructure performance with the whole what's in the data center? What's at the chip level? Today was about data, specialized services, and security. I think that was the key theme here. And then, that's going to sequence into how they're going to reorganize their ecosystem. They have a new leader, Ruba Borno, who's going to be leading the charge. They've integrated all their bespoke fragmented partner network pieces into one leadership. That's going to be really important to hear that. And then, finally, Werner for developers and event-based services, micro services. What that world's going on, because that's where the developers are. And ultimately, they build the app. So, you got infrastructure, data, specialized services, and security. Machine learning with Swami is going to be huge. And again, how do developers code it all up is going to be key. And is it the bag of Legos or the glued toy? (Dave chuckles) So, what do you want? Out-of-the-box or you want to build your own? >> And that's the bottom line is connecting those dots. All they got to be is good enough. I think, Zeus, to your point, >> Yep. >> if they're just good enough, less complicated, the will keep people on the base. >> Yeah. I think, the bumper stickers, the more you buy, the more you're saving. (John laughing) Because from an operational perspective, they are trying to bring down the complexity level. And with their optimization services and the way their credit model works, I do think they're trending down that path. >> And my bumper sticker's ecosystem, ecosystem, ecosystem. This company has 100,000 partners and that is a business model secret weapon. >> All right, there it is. The keynote announced. More analysis coming up. We're going to have the leader of (indistinct) coming up next, here on to break down their perspective, you got theCUBE's analyst perspective here. Thanks for watching. Day two, more live coverage for the next two more days, so stay with us. I'm John Furrier with Dave Vellante and Zeus Kerravala here on theCUBE. Be right back. (bright music)

>> Hello, wonderful humans and welcome back to theCUBE. We are live from Las Vegas, Nevada, this week at AWS Reinvent. I am joined by analyst and 10 year reinvent veteran John Furrier. John, pleasure to join you today. >> Great to see you, great event. This is 10 years. We've got great guests coming on the Q3 days of after this wall to wall, we'll lose our voice every year, Thursday >> Host: I can feel the energy. Can you feel the volume already? >> Yes. Everyone's getting bigger, stronger, in the marketplace seeing a lot more activity new players coming into the cloud. Ones that have been around for 10 years or growing up and turning into platforms and just the growth of software in the industry is phenomenal. Our next guest is going to be great to chat about. >> I know it's funny you mentioned marketplace. We're going to be talking marketplace, in our next segment. We're bringing back a Cube alumni Chris Casey welcome back to the show. How, how you Feeling today? >> Thank you for having me. Yeah, I mean this week is the most exciting week of the year for us at AWS and you know, it's just a fantastic energy. You mentioned it before, to be here in Las Vegas at Reinvent and thank you very much for having me back. It's great to talk to John last year and lovely to meet you and talk to you this year. >> It is, it is our pleasure. It is definitely the biggest event of the year. It's wild that Amazon would do this on the biggest online shopping day of the year as well. It goes to show about the boldness and the bravery of the team, which is very impressive. So you cover a few different things at AWS So you cover a few different things at AWS you're talking about and across industries as well. Can you talk to me a little bit about why the software alliances and the data exchange are so important to the partner organization at AWS? >> Yeah, it really comes back to the importance to, to the AWS customer. As we've been working with customers over the, you know the past few years especially, and they've been embarking on their enterprise transformation and their digital transformation moving workloads to to the cloud, they've really been asking us for more and more support from the AWS ecosystem, and that includes native AWS services as well as partners to really help them start to solve some of the industry specific use cases and challenges that they're facing and really incorporate those as part of the enterprise transformation journey that they're embarking on with AWS. What, how that translates back to the AWS marketplace and the partner organization is customers have told us they're really looking for us to have the breadth and depth of the ecosystem of partners available to them that have the intellectual property that solves very niche use cases and workloads that they're looking to migrate to the cloud. A lot of the time that furnishes itself as an independent software vendor and they have software that the customer is trying to use to solve, you know an insurance workflow or an analytics workflow for your utility company as well as third party data that they need to feed into that software. And so my team's responsibility is helping work backwards from the customer need there and making sure that we have the partners available to them. Ideally in the AWS marketplace so they can go and procure those products and make them part of solutions that they're trying to build or migrate to AWS. >> A lot of success in marketplace over the past couple years especially during the pandemic people were buying and procuring through the marketplace. You guys have changed some of the operational things, data exchange enterprise sellers or your sales reps can sell in there. The partners have been glowingly saying great things about how it's just raining money for them if they do it right. And some are like, well, I don't get the marketplace. So there's a, there's kind of a new game in town and the marketplace with some of the successes. What, what is this new momentum that's happening? Is it just people are getting more comfortable they're doing it right? How does the marketplace work effectively? >> Yeah, I mean, marketplace has been around for for 10 years as well as the AWS partner organization. >> Host: It's like our coverage. >> Yes, just like. >> Host: What a nice coincidence. Decades all around happy anniversary everyone. >> Yeah, everyone's selling, celebrating the 10 year birthday, but I think to your point, John, you know, we we've continued iterate on features and functionality that have made the partner experience a much more welcoming digital experience for them to go to market with AWS. So that certainly helped and we've seen more and more customers start to adopt marketplace especially for, for some of their larger applications that they're trying to transform on the cloud. And that extends into industry verticals as well as horizontal sort of business applications whether they be ERP systems like Infor the customers are trying to procure through the marketplace. And I think even for our partners, it's customer driven. You know, we, we've, we've heard from our customers that the, the streamlining the payments and procurement process is a really key benefit for them procuring by the marketplace and also the extra governance and control and visibility they get on their third party licensing contracts is a really material benefit for them which is helping our partners lean in to marketplace as a as a digital channel for them to go to market with us. >> And also you guys have this program it's what's it called enterprise buying or something where clients can just take their spend and move it over into other products like MongoDB more Mongo gimme some more Splunk, gimme some more influence. I mean all these things are possible now, right. For some of the partners. Isn't that, that's like that's like found money for the, for the partners. >> Yeah, going back to what I said before about the AWS ecosystem, we're really looking to help customers holistically with regard to that, and certainly when customers are looking to make commitments to AWS and and move a a large swath of workloads to AWS we want to make sure they can benefit from that commitment not only from native AWS services but also third party data and software applications that they might be procuring through the marketplace. So certainly for the procurement teams not only is there technical benefits for them on the marketplace and you know foresters total economic impact study really helped quantify that for us more recently. You know, 66% of time saving for procurement professionals. >> Host: Wow. >> Which is when you calculate that in hours in person weeks or a year, that's a lot of time on undifferentiated heavy lifting that they can now be doing on value added activities. >> Host: That's a massive shift for >> Yeah, massive shift. So that in addition, you know, to, you know, some of the more contractual and commercial benefits is really helping customers look holistically at how AWS is helping them transform with third party applications and data. >> I want to stick on customers for a second 'cause in my show notes are some pretty well known customers and you mentioned in for a moment ago can you tell us a little bit about what's going on with Ferrari? >> Chris: Sure. So in four is one of our horizontal business application partners and sellers in the AWS marketplace and they sell ERP systems so helping enterprises with resource planning and Ferrari is obviously a very well known brand and you know, the oldest and most successful >> May have heard of them. >> Chris: Yes. Right. The most successful formula one racing team and Ferrari, you know a really meaningful customer for AWS from multiple angles whether they're using AWS to enhance their car design, as well as their fan engagement, as well as their actual end car consumer experience. But as it specifically relates to marketplace as part of Ferrari's technical transformation they were looking to upgrade their ERP system. And so they went through a whole swath of vendors that they wanted to assess and they actually chose Infor as their ERP system. And one of the reasons was >> Nice. >> Chris: because Infor actually have an automotive specific instance of their SaaS application. So when we're talking about really solving for some of those niche challenges for customers who operate in an industry, that was one of the key benefits. And then as an added bonus for Ferrari being able to procure that software through the AWS marketplace gave them all the procurement benefits that we just talked about. So it's super exciting that we're able to play a, you know a part in accelerating that digital transformation with Ferrari and also help Infor in terms of getting a really meaningful customer using their software services on AWS. >> Yeah. Putting a new meaning to turn key your push start. (laughing) >> You mentioned horizontal services earlier. What is it all about there? What's new there? We're hearing, I'm expecting to see that in the keynote tomorrow. Horizontal and vertical solutions and let's get the CEOs. What, what's the focus there? What's this horizontal focus for you? >> Yeah, I, I think the, the big thing is is really helping line of business users. So people in operations or marketing functions, that our customers, see the the partners and the solutions that they use on a daily basis today and how they can actually help accelerate their overall enterprise transformation. With those partners, now on AWS. Historically, you know, those line of business users might not have cared where an application historically ran whether it was on-prem or on AWS but now just the depth of those transformation journeys their enterprises are on that's really the next frontier of applications and use cases that many of our customers are saying they want to move to AWS. >> John: And what are some of those horizontal examples that you see emerging? >> So Salesforce is, is probably one, one of the best ones to call out there. And really the two meaningful things Salesforce have done there is a deep integration with our ML and AI services like SageMaker so people can actually perform some of those activities without leaving the Salesforce application. And then AWS and Salesforce have worked on a unified developer experience, which really helps remove friction in terms of data flows for anyone that's trying to build on both of those services. So the partnership with horizontal business applications like Salesforce is much deeper than just to go to market. It's also on the build side to help make it much more seamless for customers as they're trying to migrate to Salesforce on AWS as an example there. >> It's like having too many tabs open at once, everybody wants it all in one place all at one time. >> Chris: Yeah. >> And it makes sense that you're doing so much in, in the partner marketplace. Let's talk a little bit more about the data exchange. How, how is this intertwined with your vertical and horizontal efforts that the team's striving as well as with another big name example that folks know probably only because of the last few, few years, excuse me, with Moderna? Can you tell us a little more about that? >> Sure. I think when we're, when we're talking to customers about their needs when they're operating in a specific industry, but it probably goes for all customers and enterprise customers especially when they're thinking about software. Almost always that software also needs data to actually be analyzed or processed through it for really the end business outcome to be achieved. And so we're really making a conscious effort to really help our partners integrate with solutions that the AWS field teams and business development teams are talking to customers about and help tie those solutions to customer use cases, rather than it being an engagement with a specific customer on a product by product basis. And certainly software and and data going together is a really nice combination that many customers are looking for us to solve for and for looking for us to create pairings based on other customer needs or use cases that we've historically solved for in the past. >> I mean, with over a million customers, it's hard to imagine anyone could have more use cases to pull from when we're talking about these different instances >> Right. The challenge actually is identifying which are the key ones for each of the industries and which are the ones that are going to help move the needle the most for customers in there, it's, it's not an absence of selection in that case. >> Host: Right. (laughter) I can imagine. I can imagine that's actually the challenge. >> Chris: Yeah. >> Yeah. >> But it's really important. And then more specifically on the data exchange, you know I think it goes back to one of the leadership principles that we launched last year. The two new leadership principles, success and scale bring broad responsibility. You know, we take that very seriously at AWS and we think about that in our actions with our native services, but also in terms of, you know, the availability of partner solutions and then ultimately the end customer outcomes that we can help achieve. And I think Moderna's a great example of that. Moderna have been using the mRNA technology and they're using it to develop a a new vaccine for the RSV virus. And they're actually using the data exchange to procure and then analyze real world evidence data. And what that, what that helps them do is identify and and analyze in almost real time using data on Redshift who are the best vaccine candidates for the trials based on geography and demographics. So it's really helping them save costs, but not only cost really help optimize and be much more efficient in terms of how they're going about their trials from time to market.. >> Host: Time to market. >> vaccine perspective. Yeah. And more importantly, getting the analysis and the results back from those trials as fast as they possibly can. >> Yeah. >> And data exchange, great with the trend that we're going to hear and the keynote tomorrow. More data exchanging more data being more fluid addressable shows those advantages. That's a great example. Great call out there. Chris, I got to get your thoughts on the ecosystem. You know, Ruba Borno is the new head of partners, APN, Amazon Partner Network and marketplace comes together. How you guys serve your partners is also growing and evolving. What's the biggest thing going on in the ecosystem that you see from your perspective? You can put your Amazon hat on or take your your Amazon hat off a personal hat on what's going on. There's a real growth, I mean seeing people getting bigger and stronger as partners. There's more learning, there's more platforms developing. It's, it's kind of the next gen wave coming. What's going on there? What's the, what's the keynote going to be like, what's the what's this reinvent going to be for partners? Give us a share your, share your thoughts. >> Yeah, certainly. I, I think, you know, we are really trying to make sure that we're simplifying the partner experience as much as we possibly can to really help our partners become you know, more profitable or the most profitable they can be with AWS. And so, you know, certainly in Ruba's keynote on Wednesday you're going to hear a little bit about what we've done there from a programs perspective, what we're doing there from feature and capability perspectives to help, you know really push the digital custom, the digital partner experience, sorry, I should say as much as possible. And really looking holistically at that partner experience and listening to our partners as much as we possibly can to adapt partner pathways to ultimately simplify how they're going to market with AWS. Not only on the co-sell side of things and how we interact with our field teams and actually interact with the end customer, but also on how we, we build and help coil with them on AWS to make their solutions whether that be software, whether that be machine learning models, whether that be data sets most optimized to operate in the AWS ecosystem. So you're going to hear a lot of that in Ruba's keynote on Wednesday. There's certainly some really fantastic partner stories and partner launches that'll be featured. Also some customer outcomes that have been realized as a result of partners. So make sure you don't miss it >> John: More action than ever before, right now. >> It's jam-packed, certainly and throughout the week you're going to see multiple launches and releases related to what we're doing with partners on marketplace, but also more generally to help achieve those customer outcomes. >> Well said Brian. So your heart take, what is the future of partnerships the future of the cloud, if you want throw it in, what what are you going to be saying to us? Hopefully the next time you get to sit down with John and I here on theCUBE at reinvent next year. >> Chris: Yeah, I think Adam, Adam was quoted today, as you know, saying that the, the partner ecosystem is going to be around and a foundation for decades. I think is a hundred percent right for me in terms of the industry verticals, the partner ecosystem we have and the availability of these niche solutions that really are solving very specific but mission critical use cases for our customers in each of the industries is super important and it's going to be a a foundation for AWS's growth strategy across all the industry segments for many years to come. So we're super excited about the opportunity ahead of us and we're ready to get after it. >> John: If you, if you could do an Instagram reel right now, what would you say is the most important >> The Insta challenge by go >> The Insta challenge, real >> Host: Chris's Insta challenge >> Insta challenge here, what would be the the real you'd say to the audience about why this year's reinvent is so important? >> I think this year's reinvent is going to give you a clear sense of the breadth and depth of partners that are available to you across the AWS ecosystem. And there's really no industry or use case that we can't solve with partners that we have available within the partner organization. >> Anything is possible. What a note to close on. Chris Casey, thank you so much for joining us for the second time here on theCUBE. John >> He nailed Instagram challenge. >> Yeah, he did. Did he pass the John test? >> I'd say, I'd say so. >> I'd say so. And and and he certainly teased us all with the content to come this week. I want to see all the keynotes here about some of those partners. You tease them in the gaming space with us earlier. It's going to be a very exciting week. Thank you John, for your commentary. Thank you Chris, one more time. >> Thanks for having me. >> And thank you all for tuning in here at theCUBE where we are the leader in high tech coverage. My name is Savannah Peterson, joined by John Furrier with Cube Team live from Las Vegas, Nevada. AWS Reinvent will be here all week and we hope you stay tuned.

>>Hey everyone. Welcome to the AWS partner showcase. This is season one, episode three, with a focus on women in tech. I'm your host, Lisa Martin. I've got two guests here with me, Sue Peretti, the EVP of global AWS strategic alliances at Jefferson Frank, a 10th revolution group company, and Danielle GShock. One of our alumni joins us ISV PSA director, ladies. It's great to have you on the program talking about a, a topic that is near and dear to my heart at women in tech. >>Thank you, Lisa. >>So let's go ahead and start with you. Give the audience an understanding of Jefferson Frank, what does the company do and about the partnership with AWS? >>Sure. Um, so let's just start, uh, Jefferson Frank is a 10th revolution group company. And if you look at it, it's really talent as a service. So Jefferson Frank provides talent solutions all over the world for AWS clients, partners and users, et cetera. And we have a sister company called revelent, which is a talent creation company within the AWS ecosystem. So we create talent and put it out in the ecosystem. Usually underrepresented groups over half of them are women. And then we also have, uh, a company called Ruba, which is a delivery model around AWS technology. So all three companies fall under the 10th revolution group organization. >>Got it. Danielle, talk to me a little bit about from AWS's perspective and the focus on hiring more women in technology and about the partnership. >>Yes. I mean, this has definitely been a focus ever since I joined eight years ago, but also just especially in the last few years of we've grown exponentially and our customer base has changed. You know, we wanna have, uh, an organization interacting with them that reflects our customers, right. And, uh, we know that we need to keep pace with that even with our growth. And so we've very much focused on early career talent, uh, bringing more women and underrepresented minorities into the organization, sponsoring those folks, promoting them, uh, giving them paths to grow, to grow inside of the organization. I'm an example of that. Of course I've benefit benefited from it, but also I try to bring that into my organization as well. And it's super important. >>Tell me a little bit about how you be benefited from that, Danielle. >>Um, I just think that, um, you know, I I've been able to get, you know, a seat at the table. I think that, um, I feel as though I have folks supporting me, uh, very deeply and wanna see me succeed. And also they put me forth as, um, you know, a, represent a representative, uh, to bring more women into the organization as well. And I think, um, they give me a platform, uh, in order to do that, um, like this, um, but also many other, uh, spots as well. Um, and I'm happy to do it because I feel that, you know, you always wanna feel that you're making a difference in your job. And that is definitely a place where I get that time and space in order to be that representative to, um, bring more, more women into benefiting from having careers and technology, which there's a lot of value there. >>Lot of value. Absolutely. So back over to you, what are some of the trends that you are seeing from a gender diversity perspective in tech? We know the, the numbers of women in technical positions. Uh, there's so much data out there that shows when girls start dropping up, but what are some of the trends that you are seeing? >>So it's, that's a really interesting question. And, and Lisa, I had a whole bunch of data points that I wanted to share with you, but just two weeks ago, uh, I was in San Francisco with AWS at the, at the summit. And we were talking about this. We were talking about how we can collectively together attract more women, not only to, uh, AWS, not only to technology, but to the AWS ecosystem in particular. And it was fascinating because I was talking about, uh, the challenges that women have and how hard to believe, but about 5% of women who were in the ecosystem have left in the past few years, which was really, really, uh, something that shocked everyone when we, when we were talking about it, because all of the things that we've been asking for, for instance, uh, working from home, um, better pay, uh, more flexibility, uh, better maternity leave. >>It seems like those things are happening. So we're getting what we want, but people are leaving. And it seemed like the feedback that we got was that a lot of women still felt very underrepresented. The number one thing was that they, they couldn't be, you can't be what you can't see. So because they, we feel collectively women, uh, people who identify as women just don't see enough women in leadership, they don't see enough mentors. Um, I think I've had great mentors, but, but just not enough. I'm lucky enough to have a pres a president of our company, the president of our company, Zoe Morris is a woman and she does lead by example. So I'm very lucky for that. And Jefferson, Frank really quickly, we put out a hiring a salary and hiring guide a career and hiring guide every year and the data points. And that's about 65 pages long. No one else does it. Uh, it gives an abundance of information around, uh, everything about the AWS ecosystem that a hiring manager might need to know. But there is what, what I thought was really unbelievable was that only 7% of the people that responded to it were women. So my goal, uh, being that we have such a very big global platform is to get more women to respond to that survey so we can get as much information and take action. So >>Absolutely only 7%. So a long way to go there. Danielle, talk to me about AWS's focus on women in tech. I was watching, um, Sue, I saw that you shared on LinkedIn, the Ted talk that the CEO and founder of girls and co did. And one of the things that she said was that there was a, a survey that HP did some years back that showed that, um, 60%, that, that men will apply for jobs if they only meet 60% of the list of requirements. Whereas with females, it's far, far less, we've all been in that imposter syndrome, um, conundrum before. But Danielle, talk to us about AWS, a specific focus here to get these numbers up. >>Well, I think it speaks to what Susan was talking about, how, you know, I think we're approaching it top and bottom, right? We're looking out at what are the, who are the women who are currently in technical positions and how can we make AWS and attractive place for them to work? And that's all a lot of the changes that we've had around maternity leave and, and those types of things, but then also a more flexible working, uh, can, you know, uh, arrangements, but then also, um, early, how can we actually impact early, um, career women and actually women who are still in school. Um, and our training and certification team is doing amazing things to get, um, more girls exposed to AWS, to technology, um, and make it a less intimidating place and have them look at employees from AWS and say like, oh, I can see myself in those people. >>Um, and kind of actually growing the viable pool of candidates. I think, you know, we're, we're limited with the viable pool of candidates, um, when you're talking about mid to late career. Um, but how can we, you know, help retrain women who are coming back into the workplace after, you know, having a child and how can we help with military women who want to, uh, or underrepresented minorities who wanna move into AWS, we have a great military program, but then also just that early high school, uh, career, you know, getting them in, in that trajectory. >>Sue, is that something that Jefferson Frank is also able to help with is, you know, getting those younger girls before they start to feel there's something wrong with me. I don't get this. Talk to us about how Jefferson Frank can help really drive up that when those younger girls, >>Uh, let me tell you one other thing to refer back to that summit that we did, uh, we had breakout sessions and that was one of the topics. What can cuz that's the goal, right? To make sure that, that there are ways to attract them. That's the goal? So some of the things that we talked about was mentoring programs, uh, from a very young age, some people said high school, but then we said even earlier, goes back to you. Can't be what you can't see. So, uh, getting mentoring programs, uh, established, uh, we also talked about some of the great ideas was being careful of how we speak to women using the right language to attract them. And some, there was a teachable moment for, for me there actually, it was really wonderful because, um, an African American woman said to me, Sue and I, I was talking about how you can't be what you can't see. >>And what she said was Sue, it's really different. Um, for me as an African American woman, uh, or she identified, uh, as nonbinary, but she was relating to African American women. She said, you're a white woman. Your journey was very different than my journey. And I thought, this is how we're going to learn. I wasn't offended by her calling me out at all. It was a teachable moment. And I thought I understood that, but those are the things that we need to educate people on those, those moments where we think we're, we're saying and doing the right thing, but we really need to get that bias out there. So here at Jefferson, Frank, we're, we're trying really hard to get that careers and hiring guide out there. It's on our website to get more women, uh, to talk to it, but to make suggestions in partnership with AWS around how we can do this mentoring, we have a mentor me program. We go around the country and do things like this. We, we try to get the education out there in partnership with AWS. Uh, we have a, a women's group, a women's leadership group, uh, so much that, that we do, and we try to do it in partnership with AWS. >>Danielle, can you comment on the impact that AWS has made so far, um, regarding some of the trends and, and gender diversity that Sue was talking about? What's the impact that's been made so far with this partnership? >>Well, I mean, I think just being able to get more of the data and have awareness of leaders, uh, on how, you know, it used to be a, a couple years back, I would feel like sometimes the, um, solving to bring more women into the organization was kind of something that folks thought, oh, this is Danielle is gonna solve this. You know? And I think a lot of folks now realize, oh, this is something that we all need to solve for. And a lot of my colleagues who maybe a couple years ago, didn't have any awareness or didn't even have the tools to do what they needed to do in order to improve the statistics on their, or in their organizations. Now actually have those tools and are able to kind of work with, um, work with companies like Susan's work with Jefferson Frank in order to actually get the data and actually make good decisions and feel as though, you know, they, they often, these are not lived experiences for these folks. So they don't know what they don't know. And by providing data and providing awareness and providing tooling and then setting goals, I think all of those things have really turned, uh, things around in a very positive way. >>And so you bring up a great point about from a diversity perspective, what is Jefferson Frank doing to, to get those data points up, to get more women of, of all well, really underrepresented minorities to, to be able to provide that feedback so that you can, can have the data and glean the insights from it to help companies like AWS on their strategic objectives. >>Right? So as I, when I go back to that higher that, uh, careers in hiring guide, that is my focus today, really because the more data that we have, I mean, the, and the data takes, uh, you know, we need people to participate in order to, to accurately, uh, get ahold of that data. So that's why we're asking, uh, we're taking the initiative to really expand our focus. We are a global organization with a very, very massive database all over the world, but if people don't take action, then we can't get the right. The, the data will not be as accurate as we'd like it to be. Therefore take better action. So what we're doing is we're asking people all over the, all over the world to participate on our website, Jefferson frank.com, the se the high, uh, in the survey. So we can learn as much as we can. >>7% is such a, you know, Danielle and I we're, we've got to partner on this just to sort of get that message out there, get more data so we can execute, uh, some of the other things that we're doing. We're, we're partnering in. As I mentioned, more of these events, uh, we're, we're doing around the summits, we're gonna be having more ed and I events and collecting more information from women. Um, like I said, internally, we do practice what we preach and we have our own programs that are, that are out there that are within our own company where the women who are talking to candidates and clients every single day are trying to get that message out there. So if I'm speaking to a client or one of our internal people are speaking to a client or a candidate, they're telling them, listen, you know, we really are trying to get these numbers up. >>We wanna attract as many people as we can. Would you mind going to this, uh, hiring guide and offering your own information? So we've gotta get that 7% up. We've gotta keep talking. We've gotta keep, uh, getting programs out there. One other thing I wanted to Danielle's point, she mentioned, uh, women in leadership, the number that we gathered was only 9% of women in leadership within the AWS ecosystem. We've gotta get that number up, uh, as well because, um, you know, I know for me, when I see people like Danielle or, or her peers, it inspires me. And I feel like, you know, I just wanna give back, make sure I send the elevator back to the first floor and bring more women in to this amazing E ecosystem. >>Absolutely. That's that metaphor I do too. But we, but to your point to get that those numbers up, not just at AWS, but everywhere else we need, it's a help me help use situation. So ladies underrepresented minorities, if you're watching go to the Jefferson Frank website, take the survey, help provide the data so that the women here that are doing this amazing work, have it to help make decisions and have more of females in leadership roles or underrepresented minorities. So we can be what we can see. Ladies, thank you so much for joining me today and sharing what you guys are doing together to partner on this important. Cause >>Thank you for having me, Lisa, >>Thank you. My pleasure for my guests. I'm Lisa Martin. You're watching the cubes coverage of the AWS partner showcase. Thanks for your time.

>>mm we are back and with us now is Alan welcome from the 65 oh Group 650 is a market research company and their specialty focus areas are cloud and IOT. They look at growth markets, They also look at the broader communications and information technology industries. Alan has been a leading data center researcher for over a decade and an enterprise class switch designer. So he's got the chops in that in that sense. Alan, welcome to the cubes. Great to see you. >>Great. No thanks so much for having me looking forward to discussing this with you. >>Okay, so let's get right into it. I mean what is your initial reaction to this announcement? The news? What do we need to know about it? >>I think this is an amazing product. We're heading into a whole new class of product here. Something that can address future designs. So if we look at kind of data center switching in the market, we've been looking at market where we created a new class of category about 15 years ago in data center switching. And we're at a point where we need to start looking forward in the market to address new use cases and sort of customer pain points out there. >>So how should we think about this new category? What's your take on why this is necessary. Why now? >>Well, I think again, if we go back in time, about 15 years ago we created data center switching as a category and the reason for that was we had purpose built products to address a unique use case. When we look at now we have a new use case forming whether it's sort of multi cloud Or how we're deploying applications and security things are different and we need a new class of product in order to address that. And if we look at kind of the opportunity here, we're talking about a market and a class of product that's going to do north of $10 billion dollars in just a couple years. So we have a magnitude and sort of a market category that makes sense to kind of be differentiated and unique from the way we've been looking at the markets in the past. How >>should we think about sort of a follow up on this? If I may, how should we think about, you know, the history of whether it's F P G A or a C X. You're seeing a lot of more program ability built into the system on chip these days. How do you see that trend fitting in and is that an important trend that you would note? >>Yeah, absolutely. So if we look at kind of the way the servers evolved, we have F P G A S a six smart nick now we call them Gpus and it's really been to address these pain points via hardware and software out there and to a certain extent the server has been a little bit ahead with that smart nick and now DPU category and this creates a great opportunity for the network to embrace the same sort of technology and accelerate how we're deploying workloads and really sort of solve those customer pain points, right. The human just can't scale relative to what we've been doing in the past. Got >>it. So how do you think customers are gonna react to this used to be a designer of this type of equipment? How and why might a customer adopt this type of solution and maybe what are some of the barriers that they'll need to consider when, when moving to this approach? >>Yeah, I think customers are going to be excited, right? If you look at it again, they can't scale, they have application Creep, they have security creep, they have data creep out there and this class of product allows them to kind of look at the network a little bit differently and maybe build the network kind of on a go forward 10 year basis than sort of in the past out there. And that's why they're going to look at it in terms of deployments hurdles, I'd say not so much out there. Right. The hybrid cloud and enterprise is moving so fast these days, whether it's because we're working from home or just sort of the agility factor that I think they'll be quick to embrace this because it will enable them to move faster and be more agile or just say more cloud like >>so is that really the use case here? It's kind of cloud slash hybrid cloud on prem cloud and then ultimately connecting to the edge. >>It is, yeah, absolutely. So everyone uses a different term for hybrid cloud or co location or things like that. But ultimately this is the part of the market that's growing very rapidly for enterprises as they try to move their applications, their workflows and their data to more hybrid environment out there. And some of that is as simple as just moving the data. And some of that is kind of going into security and sort of questioning how you move that data around and secure it on a forward basis. A lot >>a lot of customers we talked to tell us, look, the security in the cloud is fine. It's just may be somewhat different and we want to have greater flexibility. So we either want to do this on prem or the other big trend that we see. And I wonder if you could talk about this is we see people putting infrastructure into a Coehlo uh to offer to allow themselves to maybe not get locked into a single cloud provider, expand their optionality building their own sort of infrastructure layer, their own sort of internal cloud, if you will. Can you comment on that? >>Yeah. Co location is a very big trend out there. As you said. It enables you to not be locked into your particular cloud provider. It also gives you proximity to all cloud providers, all staffs providers out there. Uh so deploying and polo makes a lot of sense out there and that creates another pool of data or pool of information that the IT managers need to think about in terms of managing out there. >>So what's the sweet spot for this? And thinking in terms of a business cases that consolidating sort of legacy infrastructure simplification, enabling people to transfer skills up up the stack if you will to support their digital transformation. How do you see the business case evolving here? Alan, >>yeah, it really is simplification and that digitization journey that all enterprises are on the human just simply can't scale with the number of applications or the complexity of those applications and as you get more complex, your costs go up. So this is really about simplification, reducing costs and again, kind of building and taking that journey Forward for the next 10 years vs doing things the same way you've been doing it there, which allows you to move up stack. How do you >>see this partnership, HP Ruba Pensando. Do you see it as unique in the business or the ahead of the game in your opinion? How do you sort of handicap that? >>Yeah, it is unique and it is ahead of the game. So there is a first mover advantage going on here, but I think this partnership shows how the data center is going to be different 5, 10 years in the future and we're starting to create purpose built products to address that change. We simply can't build the way we've been building in the past. Again, whether it's the device not scaling or the human not scaling, we need to look at this differently for many, many reasons. >>Awesome. Okay, alan, we got to leave it there really. Thanks for bringing the analyst perspective. We'll give you the last word. If there's any kind of research you've got, that's worth noting or any last thoughts, please bring it home. >>Yeah, we've been tracking this space for over, You know, 15 years personally. Uh, and there's a lot of new research we have in this area, whether it's this class of product data center switching, uh, location types out there, verticals. So we're really excited to kind of be at the forefront. Well, thanks vision on the future. >>Well, thanks for that, appreciate it. Look, we've been covering this announcement and the initiatives around disrupting the traditional space and uh we thank everybody for watching. Remember all this content is available on demand. If you want more information. Just hit up your HP Aruba rep, you know, I'm sure they'll be eager to help you out. So, again on demand, we will be available immediately. Appreciate you watching the cubes, coverage of the HP, Aruba Pensando announcements, appreciate it. >>Mm

>>I'm john free with the Q we are here. It's exciting news around the next evolution switching, Sony jean Donny, co founder and chief business officer Pensando and David Hughes chief product and technology officer Aruba HP. Welcome back. We just heard from Antonio neary and john Chambers about the HPV Ruba partnership with Pensando and the new switching platform. Tell me more about the exciting news you're announcing? >>Yeah, I'm really excited today to be introducing the CX 10,000 distributed services switch. It's a brand new class of switch way bringing together the best of Aruba switching technology adding to R C X portfolio combining with Pence Sandoz technology that technology embedded in the platform. The problem we're solving is that in a traditional data center, all of those services like fire walling and low balancing provided by centralized appliances. And while that might be okay for north south traffic traffic that's going in and out of the data center. It's not scalable and it's not cost effective to apply to every service in every port to every flow traversing their data center As we all know with microservices more and more of the traffickers east west over 70% today and growing and so what we're doing here with the C X 10,000 is giving enterprises away to take the smart nick technology that's been proven out by hyper scholars and introduce it into their data centers in a very cost effective and easy to deploy way we're embedding that capability in the top of rack switch so that we can apply Fireable services, low balancing services to every port To every flow, delivering 100 times a scale in terms of a CLS 10 times of performance, in terms of encryption at a third of the cost of those traditional network architectures. So it's a super exciting time, >>love the speed, love the energy there. But I gotta ask what makes this a new category of switch. >>Well if you take a look at the journey we have been on as we have evolved our data centers and the applications have evolved for our customers. Uh and the world is now a bold new world of multi cloud. Uh the architecture is in the data center which are leaves spine architectures have become the new norm. Software defined, networking is pervasively deployed by our customers but as this journey began five or seven or even about 10 years ago uh and has culminated into a much more mature set of building blocks. We have taken the problem from one space of automating networks in the data center to then introducing lots and lots of expensive appliances to bring about security for example, or the state full services, whether it's load balancing or whether it's encryption and visibility and telemetry types of services. Now the customers had to try, you know, trombone all the traffic in and out of these appliances driving up the cost uh and the complexity and when time comes to troubleshoot these environments, it's extremely complex because you're trying to rationalize fabrics coming from one place appliances coming from four or five different vendors, maintaining all the software elements that need to be kept track off. Uh and as more and more customers want to aspire towards zero trust security model. Uh we need to start to embrace a lot of the principles that have been implemented by the hyper scholars and the cloud vendors, which is doing away with the appliances doing away with agent technology on servers, but instead to bring that technology for east west uh into play as well as to ensure that if there are bad actors that are landing inside of the data centers that they do not have the ability to, you know, create attack surfaces with complete lateral movement. Today, that is possible. Uh if you look at 70% of all the attacks that have been happening here in the past few years, it's as a result of having a attack surface which is pretty large in the data centers. And that gets further complicated when you move towards a multi cloud environment where the perimeter of the data center is now moving into the edge. Whether that edges, whether fleet resides for our customers or whether that edge happens to be a co location edge where you're building your own rampant off ramps. So I think the compelling event essentially is driven by the whole notion of distribution of services and having them available from a security and from a services point of view and these are state full services as close to the workload as you possibly can get them. >>So you guys really hit on some key points, their cloud, native microservices East west, north south, um no perimeter edge. These are topics that we would talk about kind of individually over the years, it's happening now all at the same time, this is causing a lot of complexities and then the security challenges you just laid out are everywhere. This brings up a big conversation around solving this. How does this new architecture, this solution solve the complexity and the security challenges in the data center. >>If you look at the use cases that our customers are talking about. The first, the initial use case really is to bring about security and state full security for east west traffic right into the fabric of their data centers. So having the ability to deliver that while eliminating the complex appliances only to do the job which they do very well, which is not South protection of services. Uh that also allows us the ability then to start to deliver visibility and telemetry at the same time that we're delivering state full security firewall and micro segmentation services because what I cannot see, I cannot secure. Uh so those two elements are initial use cases out of the box for our customers as we deliver this platform to them and then as more and more use cases that are becoming evident to us through customer interactions come into play. For example, the co location edge that I would like. David to walk you through a bit more in terms of how we help solve for that use case. >>So for the cooler use case, I think we're moving from a world where people talk about data centers to now talking about centers of data and those centers of data. Yes, they can be in a core private data center, they could be in the cloud but more and more they're going to be distributed around the edge in co location environments. And what we need to be able to do is extend those services that were provided in the data center to be provided in those Kahlo's at the edge And again we want to do that without having to deploy a whole rack of appliances that may be cost more than a computer itself and so with the CX- 10,000 we can have that as a top of rack switch for that polo. And from that switch deploy all of the encryption and firewall ng services that that polo requires. And what's important is that we're doing it with the same policy framework under the same management system across the whole enterprise in the data center as well as in these co location environments and out into the cloud. >>So you guys mentioned visibility and a quick follow up on this question because you mentioned visibility can't see it, you can't protect it. But also there's a lot of workloads that people are trying to automate. These are two factors. Can you guys just double down on that? I want to just get that out there because I think this becomes a big thing. >>I think policy having the ability to have an intent based policy that is a foundational technology building block that we are brought together is a very important element. And then when you map it back to tools that Aruba is extending support for including this platform, become very valuable. So David, why don't you walk us >>through? You know, I think one of the advantages that we bring is that this is an extension of the Aruba C X switching portfolio. So yeah, it's a cloud native microservices, very modern switch architecture and we have a comprehensive management platform, the Aruba fabric controller. And so what we are doing is making sure that everything fits together nicely, that we're delivering a complete solution to our customers. But one important thing to mention here is that we are thinking about how customers can do this step by step. So no, we're not requiring them to rebuild their entire data center, They can do this one rack at a time. We can work with their existing spine and deploy one leaf at a time in a very measured way. And so we think it's a great way for enterprises to be able to consume this modern distributed platform. >>That's a great segment. The next question. I mean I totally see this as you guys are talking about the cloud native trend, driving a cloud operational model to every edge. The data center is just another edge. It's a center of data. Love that. I love that line. So I have to kind of ask the operational side of the question, how would an enterprise customers manage all this take us through the nuts and bolts of deploying and managing of his gum? A customer >>That's a very good question. If you take a look at the customer's deployment models and let's let's take the example of they want to now bring in this technology and build a part or highly secure part with it for east west and to make sure that they're protecting 100% of that east west traffic. I think that leveraging all the building blocks that we have innovated between us and Aruba. We want to make sure that the ecosystem that the customer has built, they want whether they have built it with companies like Splunk and service now or Guardianco, they want integration points will be made available to them. If you take a look at, take a step back and say for these environments as you aspire to go toward zero trade security. The issues of inserting security appliances into network flows and having the ability to map it to the knowledge of applications and their dependencies for policy becomes an important function to tackle. So once you accept that, Okay, I have state full security functions built into this top of rack device available for my applications and all workloads, whether they're container workloads, bare metal workload, virtualized workloads uh and I have complete visibility into those workloads without compromising on connectivity and I can control through enforcement of policy where I need it because now security is part of the fabric, it's not a bolt on. Then comes the job of integration with an ecosystem. So whether you're looking at seem and sold companies where we are delivering in close collaboration with Splunk, A Pensando app for Splunk there's also going to be the availability of an elastic module, A plug in module. Uh then turn attention to what's more automation and devops and civil playbooks for the C X 10-K will be made available day one so that where you do not have the ability to deploy the A. F. C. You can use your existing answerable toolkit and they're making those playbooks available to our customers. Uh They want integration with application discovery mapping companies like Guardianco, allowing them to discover who's talking to whom and push and enforce that policy through the C X 10-K will allow for more automated deployments of those policies and finally, compliance integration with vendors like too thin for continuous security compliance monitoring becomes extremely important as the screen depicts a lot of lot of visualization capabilities with companies like Elk which are in beta today and answerable and Splunk and Elk will all be targeted at first customer shipment. So again, telemetry visibility with the integration of the ecosystem. Uh, it becomes a very powerful combination for the customers as they look to operationalize this for day to day three and they, you know, day one, day two, day three automation. >>That's awesome. David, I'd like to let you weigh in on this whole question of operations because you're hitting all the marks here that are relevant cloud, native microservices, apps, explosion and data volume and velocity, hyper scale operational cloud operations, performance, price point security all in this one solution. This is big. Um, it's not like you mentioned earlier, it's not a rip and replace but you can roll it out how how do you see a customer best operational izing this new, >>You know, I think the answer is a little bit different for each customer but you are very careful at the beginning, we introduced this. It's an evolution of switching. It's not a revolution where we have to replace everything and I think that's really exciting is that it builds on the foundational architecture of leaf and spine. And what we're able to do is let that customer introduced these new capabilities one leaf at a time. So maybe when they're upgrading from 10 gigs to 25 gigs, it's a great time for them to introduce this capability into their data center um and then depending on their application, you know, it may be, as Sony said that they've got one particular application, a crown jewel application and so they want to build out that in one rack and provide, you know, very, very robust East west as well as north south um security around that application, but there's so many different ways that customers can deploy this technology and what's really exciting is now is we're beginning to work with our customers, learning about these new use cases and then feeding that back into our roadmap and we all >>know, as you get down lower in the network layer, security is distributed architecture. So everything is paramount like security, super relevant, great conversation, I gotta ask what's next with this technology. Yeah, >>well, you know the teams, the two engineering teams are working together and this is step one on, on a really exciting new path, I don't know, Sony, what would you say? >>I think there's a lot more to come here. This is just a starting point. We have an incredibly strong partnership and go to market partnership here with Uber team with this platform. It is just the beginning uh and it will lead our customers onto the multi cloud journey. Uh and last but not least, I would like to say that you know, in closing uh that are seldom opportunities where you look at disrupting the way things are happening while fitting into customers existing models. So this is, as I said with everything being software defined, you will continue to see as delivering at great velocity more and more software defined services, whether it's encryption, Lord balancing and other state full services over time. Making this technology easier to deploy by fitting into the existing ecosystem and continuing to provide them with the 100 extra scale, 10 X. The performance as well as the ability to do it at a third of the same, you know, at the third of the cost of what they would need to if they had to build this uh today with disparate devices, >>exciting news in the industry. You guys are the pros you've seen all the waves of innovation over the years. I guess my final final question would be, how would you summarize this point in time right now? This is pretty um exciting all this is all happening At the same time, customers are having opportunity to innovate the pandemic has shown a lot of scale and and the need for stability and security. This is a special moment. How would you guys weigh in on that? >>Yeah, I think about it every decade, there's a change in how data centers a belt. And so this is the change that's happening this decade. Moving to a distributed services, switch. The other big mega trend that I see is this move, as I said from data centers to stand as a data and the opportunity for customers to use this technology as they move out to the edge. Have distributed compute and tell us, what do you think Sony? >>I think I couldn't agree more. I think there are so many various technology transitions occurring now. The cloud being the biggest one. Uh the explosion of data and uh, you know, the customers making decisions of having a distributed model And if indeed two thirds, if not 75% of all data will be processed at the edge over the next few years. This architecture is prime for the enterprise to go leverage their best practices of today while they can gradually move that architecture is for the future, which is a multi cloud future >>centers of data, large scale cloud operations automation. The speed of innovation has never seen this before. Uh It's exciting time. Sunny, thank you for coming on. And David, thanks for chatting about this exciting new announcement. Thank you very much. >>Thank you. Thank you. >>This is the power of and hp. Ruba and Pensando partnership. I'm john forward the cube. Thanks for watching. Mhm

>>Hello and welcome to the power of and where H P E Aruba and Pensando are changing the game the way customers scale at the cloud and what's next in the evolution in switching everyone. I'm john ferrier with the Cuban. I'm here with Shane Corbyn, Director of Technical Product management. Pensando Williams show vice president Product management, Aruba HP Gentlemen, thank you for coming on and doing a deep dive and and going into the big news. So the first question I want to ask you guys is um, what do you guys see from a market customer perspective that kicked this project off? Amazing results over the past year or so. Where did it all come from? >>It's a great question, John So when we were doing our homework, there were actually three very clear customer challenges. First, security threats were largely spawned with from within the perimeter. In fact, four star highlights that 80% of threats originate within the internal network. Secondly, workloads are largely distributed, creating a ton of east west traffic and then lastly, network services such as firewalls load balancers. VPN aggregators are expensive. They're centralized and then ultimately result in service changing complexity. So everyone, >>so go ahead. Change. >>Yeah. Additionally, when we spoke to our customers after launching initially the distributed services platform, these compliance challenges clearly became apparent to us and while they saw the architectural value of adopting what the largest public cloud providers have done by putting a smart making each compute note to provide these state full services. Enterprise customers were still were struggling with the need to upgrade fleets and Brownfield servers and the associated per node cost of adding a spark nick to every compute node. Typically the traffic volumes for on a personal basis within an enterprise data center are significantly lower than cloud. Thus we saw an opportunity here to in conjunction with Aruba developed a new category of switching product um, to share the crossing capabilities of our unique intellectual property around our DPU across a rack of servers that Net Net delivers the same set of services through a new category of platform, enabling a distributed services architecture and ultimately addressing the compliance and uh, TCO generating huge TCO and ri for customers. >>You know, one of the things that we've been reporting on with you guys as well as the cloud scale, this is the volume of data and just the performance and scale I think the timing of the, of this partnership and the product development is right on point. You got the edge right around the corner more, more distributed nature of cloud operations, huge, huge change in the marketplace. So great timing on the origination story there. Great stuff. Tell me more about the platform itself. The details what's under the hood, the hardware. Os, what are the specs? >>Yeah, so we started with a very familiar premise, Ruba customers are already leveraging C X with an edge to cloud, common operating model and deploying Leaf and spy networks. Plus we're excited to introduce the industry's first distributed services switch where the first configuration has 48 25 gig ports with 100 gig uplinks running Aruba C X cloud native operating system. Pensando A six and software inside enabling layer four through seven staple services you want to elaborate on. >>Let me elaborate on that a little further. Um, you know, as we spoke, existing platforms and how customers were seeking to address these challenges were inherently limited by the diocese and that thus limited their scale and performance and ability in traditional switching platforms to deliver truly stable functions in in a switching platform. This was, you know, architecturally from the ground up. When we developed our DPU 1st and 2nd generation, we delivered it or we we we built it with staples services in in mind from the Gecko. We we leverage to clean state designed with RP four program with GPU, we evolved to our seven nanometer based DPU right now, which is essentially enabling software and silicon and this has generated a new level of performance scale flexibility and capability in terms of services this serves as the foundation for or 200 gig card where we're taking the largest cloud providers into production for. And the DPU itself is designed inherently to process state track state connections and state will flow is a very, very large scale without impacting performance. And in fact, the two of these deep you component service, their services foundation of the C X 10-K And this is how we enable states of functions in a switching platform. Functions like stable network network fire walling, stable segmentation, enhance programmable telemetry. Which we believe will bring a whole lot of value to our customers. And this is a, a platform that's inherently programmable from the ground up. We can we can build and and leverages platform to build new use cases around encryption, enabling state for load balancing, stable nash to name a few. But the key message here is this is this is a platform with the next generation of architecture is in mind is programmed but at all levels of the stack and that's what makes it fundamentally different than anything else. >>I want to just double click on that if you don't mind before we get to the competitive question because I think you brought up the state thing, I think this is worth calling out if you guys don't mind commenting more on this state issue because this is big cloud. Native developers right now want speed, they're shifting left at the Ci cd pipeline with program ability. So going down and having the program ability and having state is a really big deal. Can you guys just expand on that a little bit more and why it's important and how hard it really is to pull off. >>I I can start I guess. Well um it's very hard to pull off because of the sheer amount of connections you need to track when you're developing something like a state, full firewall or state from load balancer. A key component of that is managing the connections at very, very large scale and understanding what's happening with those connections at scale without impacting application performance. And this is fundamentally different. A traditional switching platform regardless of how it's deployed today in a six don't typically process and manage state like this. Memory resources within the shape aren't sufficient. Um the policy scale that you can implement on a platform aren't sufficient to address and fundamentally enable deployable fire walling or load balancing or other state services. >>That's exactly right. So the other kind of key point here is that if you think about the sophistication of different security threats, it does really require you to be able to look at the entire packet and more so be able to look at the entire flow and be able to log that history so that you can get much better heuristics around different anomalies. Security threats that are emerging today. >>That's a great great point. Thanks for bringing that extra extra point out, I would just add to this, we're reporting this all the time when silicon angle in the cube is that you know, the you know, the the automation wave that's coming with around data, you know, it's the center of data now, not date as soon as we heard earlier on with the presentation data drives automation having that enabled with state is a real big deal. So I think that's really worth calling out now. I got to ask the competition question, how is this different? I mean this is an evolution, I would say it's a revolution you guys are being humble um but how is this different from what customers can deploy today >>architecturally, if you take a look at it? So we've, we've spoken about the technology and fundamentally in the platform, what's unique in the architecture but foundational e when customers deploy stable services, they're typically deployed leveraging traditional big box appliances for east west or workload based agents which seek to implement stable security for each East west architectural, what we're enabling is staples services like fire walling, segmentation can scale with the fabric and are delivered at the optimal point for east west which is through the Leaf for access their of the network and we do this for any type of workload. Being deployed on a virtualized compute node being deployed on a containerized, our worker node being deployed on bare metal agnostic of topology. It can be in the access layer of a three tier design and a data center. It can be in the leaf layer of the excellent VPN based fabric. But the goal is an all centrally managed to a single point of orchestration control which William we'll talk about shortly. The goal of this is to to drive down the TCO of your data center as a whole by allowing you to retire legacy appliances that are deployed in in east west role, not utilized host based agents and thus save a whole lot of money. And we've modeled on the order of 60 to 70% in terms of savings in terms of the traditional data center pod design of 1000 compute nodes which will be publishing and as as we go forward, additional services as we mentioned like encryption, this platform has the capability to terminate up to 800 gigs of line, right encryption, I P sec VPN per platform state will not load balancing and this is all functionality will be adding to this existing platform because it's programmable as we mentioned from the ground up. >>What are some of the use cases lead and one of the top use case. What's the low hanging fruit? And where does this go? Service providers enterprise, what are the types of customers you guys see implementing? >>Yeah, that's what's really exciting about the C X 10,000 we actually see customer interest from all types of different markets, whether it be higher education service providers to financial services, basically all enterprises verticals with private cloud or edge data centers for example, could be a hospital, a big box retailer or Coehlo. Such as an equity. It's so it's really the 6 10,000 that creates a new switching category enabling staple services in that leaf node, right at the workload, unifying network and security automation policy management. Second, the C X 10,000 greatly improved security posture and eliminates the need for hair pinning east west traffic all the way back to the centralized plants. Lastly, a Shane highlighted there's a 70% Tco savings by eliminating that appliance brawl and ultimately collapsing the network security operations. >>I love the category creation vibe here. Love it. And obviously the technical and the cloud line is great. But how do the customers manage all this? Okay. You got a new category. I just put the box in, throw away some other one. I mean how does this all get down? How does the customers manage all this? >>Yeah. So we're looking to build on top of the ribbon fabric composer. It's another familiar sight for our customers which already provides for compute storage and network automation with a broad ecosystem integrations such as being where the sphere be center as with Nutanix prison And so aligned with the c. x. 10,000 at G. A. now the aruba fabric composer unifies security and policy orchestration and management with the ability to find firewall policies efficiently and provide that telemetry to collectors such a slump. >>So the customer environments right now involve a lot of multi vendor and new frameworks cloud native. How does this fit into the customer's existing environment? The ecosystem. How do they get that get going here? >>Yeah, great question. Um our customers can get going is we we built a flexible platform that can be deployed in either Greenfield or brownfield. Obviously it's a best of breed architecture for distributed services were building in conjunction with the ruble but if customers want to gradually integrate this into their existing environments and they're using other vendors, spines or course this can be inserted seamlessly as a leaf or an access access to your switch to deliver the exact same set of services within that architecture. So it plugs seamlessly in because it supports all the standard control playing protocols, VX, Lenny, VPN and traditional attitude three tier designs easily. Now for any enterprise solution deployment, it's critical that you build a holistic ecosystem around it. It's clear that this will get customer deployments and the ecosystem being diverse and rich is very, very important and as part of our integrations with the controller, we're building a broad suite of integrations across threat detection application dependency mapping, Semen sore develops infrastructure as code tools like ants, Poland to answer the entire form. Um, it's clear if you look at these categories of integrations, you know XDR or threat detection requires full telemetry from within the data center. It's been hard to accomplish to date because you typically need agents on, on your compute nodes to give you the visibility into what's going on or firewalls for east west flaws. Now our platform can natively provide full visibility in dolphins, East west in the data center and this can become the source of telemetry truth that these Ml XT or engines required to work. The other aspects of ecosystem are around application dependency mapping the single core challenge with deploying segmentation. East West is understanding the rules to put in place right first, is how do you insert the service uh service device in such a way that it won't add more complexity. We don't add any complexity because we're in line natively. How do we understand that allow you to build the rules are necessary to do segmentation. We integrate with tools like guard corps, we provide our flow logs a source of data and they can provide rural recommendations and policy recommendations for customers around. We're building integrations around steve and soar with tools like Splunk and elastic elastic search that will allow net hops and sec ops teams to visualize, train and manage the services delivered by the C X 10-K. And the other aspect of ecosystem from a security standpoint is clearly how do I get policy from these traditional appliances and enforce them on this next generation architecture that you've built that can enable state health services. So we're building integrations with tools like toughen analgesic third party sources of policy that we can ingest and enforcing the infrastructure allowing you to gradually migrate to this new architecture over time >>it's really a cloud native switch, you solve people's problems pain points but yet positioned for growth. I mean it sounds that's my takeaway. But I gotta ask you guys both what's the takeaway for the customers because it's not that simple for that. We have a complicated >>Environment. I think, I think it's really simple every 10 years or so. We see major evolutions in the data center in the switching environment. We do believe we've created a new category with the distributed services, distributed services, switch, delivering cloud scale distribute services where the local where the workloads were side greatly simplifying network security provisions and operations with the Yoruba fabric composer while improving security posture and the TCO. But that's not all folks. It's a journey. Right. >>Yeah, it's absolutely a journey. And this is the first step in in a long journey with a great partner like Aruba, there's other platforms, 100 or four gig hardware platforms we're looking at and then there's additional services that we can enable over time allowing customers to drive even more Tco value out of the platform and the architectural services like encryption for securing the cloud on ramp services like state for load balancing to deploy east west in the data center and you know, holistically that's that's the goal, deliver value for customers and we believe we have an architecture and a platform and this is the first step in a long journey. It's >>a great way. I just ask one final final question for both of you. As product leaders, you've got to be excited having a category creation product here in this market, this big wave. What's what's your thoughts? >>Yeah, exactly. Right. It doesn't happen that often. And so we're all in, it's it's exciting to be able to work with a great team like Sandu and chain here. And so we're really excited about this launch. >>Yeah, it's awesome. The team is great. It's a great partnership between and santo and Aruba and you know, we we look forward to delivering value for john customers. >>Thank you both for sharing under the hood and more details on the product. Thanks for coming on. >>Thank you. Okay, >>the next evolution of switching, I'm john furrier here with the power of An HP, Aruba and Pensando, changing the game the way customers scale up in the cloud and networking. Thanks for watching. Mhm.

>>from around the globe. It's the Cube covering HP Discover Virtual experience brought to you by HP. >>Hi. And welcome back to the Cube's coverage of HP Discover 2020. The virtual experience. I'm stew Minimum and happy to welcome back to the program. One of our cube alumni, Partha Narasimha He is the chief technology officer of Aruba. Which, of course, Aruba is an H p e company. Partha. Thanks so much for joining us. Thank you. Alright, so HP Discover is a big event. But, you know, for the networking people, of course, Aruba has its own event atmosphere, which happened, you know, just ahead of Discover you gave a keynote there some news there that we'll talk about. But, you know, just, you know, we bring our audience up to speed a little bit about, you know, the role of the networking inside of HP with Aruba. >>And so you know, when everybody's primary focus is networking and security. Uh, we really have expanded in the past few years and scope of the problems that we work on, what we call the intelligent edge and we define the edge is where people are, where the action is And how do you think about the kinds of experiences that end users care about? In addition to just connecting security into their absence of data on the upside, but also about the experiences in the physical world? And then there are these stakeholders that care about in an efficiency, productivity and so on. So the intelligent edge is it includes networking and security, but it really focuses on people and businesses. Hooks. >>Yeah, that's great. You know, Often we talk. It's, you know, the business outcomes that matter and experiences. It's you know so much about people. The current global pandemic absolutely has put a real focus on people. Um, you know, from a networking standpoint, of course, everybody's working from home a lot more. Um, you know, VPN services need to be considered. And you know what? I'm curious the impact from your business and your customers as to what's happening. >>I think this is where you know the focus on on the intelligent edge on people's experiences and business outcomes. Uh, is actually it was being having now, with the presence of endemic, if you're defining and go back to the definition of the edge as where people are and where the action is in the last 2 to 3 months. A lot of that exists in people's hearts in all of our homes. That's where that's where I am right now. And that's where we all of being, Um, so what does that mean for where the edges? And so we kind of see at least three phases in here, where right now we're focused on business continuity, Which is how do you know enable employees to continue to stay productive and connect securely to be enterprise data? Perhaps, but also, when you know some of the subsides, how do you bring people back safely? Go into physical spaces? And that's what we call business recovery. And then, as I talk to customers, you know, there's there's a spectrum of opinions about what is going to stake. And, you know, if you call that the new normal Andi, when an image goes out of our in our lives, it doesn't look like they're all going back to everywhere in January of Apple Siri. And so what is the new normal? And how do you how does a painful that's that's really what we're focused. >>Yeah, it's so important right now. Parts you know, when you look at enterprise is rapidly adjusting to to ah, situations is not necessarily what we think of. Of course, in the last few months, we've had to move very fast to be able to enable the workforce. Uh, I would love to hear what you're hearing from CEOs that there and customers and, you know, how are you helping them react to things you know much faster than they might have. >>So a lot of the business part unity. Actually, the focus is on 19 right? Because you know, how do you deploy technologies are actually leverage the technologies that have already been deployed in order to allow employees to stay productive from their homes? And there's been a spike in demand from for work from home solutions. Believe it or not, Aruba had we have built a solution for the remote access point way back in 2005 or 2006 when there was a different endemic, a time as a business continuity solution. But given the intensity of how this pandemic is affected all of our lives there was a strike and demand for work from home solutions not just from a connectivity and security perspective, but also every employee is home eyes very different, right? Based on the speed of your Internet connection. How many other people are home? How many other devices are connecting to the home network and what else is happening in the three Netflix streams running in parallel? And in this case, in that kind of environment, how do we now provide some visibility for key help employees getting there? So while we built a remote access point as a security solution, we ended up realizing that would be really solved. For the end user was a better user experience where they just see the same network that they see in the office. They see that home but more again, helping I t get some visibility and maybe troubleshoot some issues employees might have. So all three of these have been integral components of that solution and, you know, it became even more front and center well, when the wind and make it in terms of the site. >>Yeah, you know, when I think about security, has really, you know, in the last five years or so escalated only to the C suite. But the board level for constant consideration, has Has the current situation really raise the visibility of networking, you know, to the C suite. >>It has essentially, you know, the focus Until now. Could be in that. Okay, I my all of my employees get into the office and also and create an environment within the office building that allows for collaboration that allows for seamless connectivity and security. Um, but the pace at which we all have to go to this work from home situation, what's the time? And I was so shocked. I have to respond quickly on day after this phone, quickly where, you know, they could have done with a few dozen office buildings to now thousands of employees homes, and so >>be bigger. >>The all of the effort that we put in to create that solution earlier now pick off because we were already but this for for this situation. Even though, you know, we all live in interesting times, and I never want to see this again in my lifetime. But the fact that you know we had a focus on it for the last 15 years or so made it ready for us. But more importantly, as we look at, you know, as the business community face was about I p the business recovery, which is which is probably very a starting point right now. How do we now bring people back safely into lying to physical spaces? Now the stakeholders are you know, that set is expanding, right? Whether it's, you know, maybe we have the steam called the crisis management that is looking at Okay, how do I now manage Not just the crisis, but bringing people back in facilities is important, because if things space has to get rearranged in order to make certain density or spacing objectives, so they know they have some interest in there marketing. If you're a retailer, you know, hospitality and so on, they get interested in it. So there's a lot of other stakeholders now the lie on the infrastructure that I be has deployed primarily for security and security. Now that same infrastructure, it's gonna go benefit other stakeholders so that you get a competitive advantage in the business recovery face. Like if I'm able to safely brain a lot of my key employees that are required to be in physical spaces back in while addressing all of their concerns about the health and the safety associated with the recovery. That definitely gives me a competitive. And I believe that the solutions and Aruba has provided to I t. Until now are now. There's a There's a spark like Chinese on it because a lot of people, a lot of other stakeholders, could benefit from that infrastructure. That is already, >>Yeah, there's a lot of conversation going on in the industry about what things look like post endemic. And, you know, while there is still obviously a lot of uncertainties, we really think there will be some hybrid modes going on. So, you know, work from home might not stay permanent. But many companies, we're talking about being more flexible. So how does that impact? You know what you're offering? Cause, you know, I think about, you know, from the enterprise. You know, I needed a certain density. Now I need to think about Okay. How do I make sure that whether you're in the office or working remotely that I can have you participate and have the same kind of experience wherever you >>are? And, you know, this is again this is where we rely on the network infrastructure, right? Because if you dig ah, connected with the network that enables mobility is secure and is always available, it drives participation. That participation leverages net flow data to provide visibility toe into physical space. Right, And you think about even the recovery face. And we see, actually, three achieves three interesting scenarios and organizations with customers on how the network can help them in the recovery face. And it points to dispensing requirements are how do I reduce density so that I get some level of increased distancing amongst my employees. So that way you can look at naked data and figure out okay where the hearts thoughts are in terms of people density and can go make changes to those to try and lower that meet my internal guidelines or public safety guidelines to shared spaces are also medium of transmission, you know, off this particular virus or disease, and so shakes faces like conference route cafeteria tables and others that we can again use the network to figure out usage of those and potentially provide guidelines to cleaning crews to pay more attention to certain spaces in favor of others necessarily seeing the same level of usage on three. If in the unfortunate situation that some individual becomes a person of interest, we can quickly figure out all of the spaces that they have seen in the past. A certain window, including who else they could have overlap are being close to within that space, right? So at least you're not relying purely on human memory for contact tracing, there's a certain level of additional data that can be used to enhance a refresh human memory. That is really what we see happening in the business recovering. But you made a good point on what is the new normal. Because as we again after customers, I'm trying to gauge what is going to stick beyond the beyond the recovery feet, striking that you fast forward, let's say, a year from now we have a vaccine and the viruses control. We are going to go back to everywhere before the widest entered our lives in and on. The common opinion seems to be that some things are here to stay, and you look at work from home. You made a reference to that. You know, a lot of our customers do believe that there is gonna be an increased amount of work from home that stays with us, even even after the biases off all of our lives. That again, the special things we built for the business continuity continues forward. Even as you know, some of you know we start to get back into physical spaces security again. It's paramount rate the home, essentially as far as I t is concern is an uncontrolled in mind because they just don't have control over many things that happen in brackets homes. And so how do we bring in a layer of visibility and some degree of control in an environment that is inherently not subject to that level through the same way that that an office building can be? And those are the kinds of things that we're looking at. When we talk to higher education customers, for example, they are looking at plans for them. You know this upcoming fall semester, or for the next I can make your off running the classrooms at 30% occupancy. So if you had 100 students sign up for a class physically in the classroom, they only want to have the respondents and the other 70 could be on campus, but they're all dialed in remotely online past. But how do you manage this process or which study people get to be in the classroom learning way? And we believe that a lot of these work, the work flows and interesting use cases that directly address the intelligent edge are gonna become important as we get into that. >>Alright. And I'm glad you talked about the intelligent edge. So your keynote that you gave that atmosphere was accelerating innovation at the edge. And you have the tough task of being right before the Space X Speaker two. So give us a little bit our audience a little bit about you know, the innovation. How should we be thinking about the edge? >>So atmosphere visitor Two weeks ago, we announced the manage services platform on the SP for sharp and it's a little bit of a play because we really believe that we're building solutions that have 1/6 sense in in sensing what end users looking for what stakeholders looking for when problems show up and how do we quickly resolve that right, So that degree of focus on our data driven AI operations was key in us starting to coin the term DSP on it services platform. So it really looks at addressing not just connectivity connect and protect. We're also analyze and act because the telemetry data coming out of the network is really the same data that is that helps with the business recovery. But we won't actually bubble that up and put it into a common daily that helps us deliver a better connection and connectivity and security services, but also enable all of these experiences and outcomes at the edge. And so the CSP or then Ed services platform was the key announcement atmosphere this year. And we see that as the the foundation on which everything that we're gonna do starting now is going to get >>Yeah, I'm curious. You know, we talked about some of the the things that have been accelerated due to the current situation. After that respond work from home in the and the like. When you look at edge environment, is that something that you know? Is that something you see people, you know, accelerating them or they pausing them. Is it just kind of happening at the same pace any data or sense that you have from users right now. >>So edge is going to become even more important that we used to focus on the edge. We had the focus on edge for a while, but uncle, now until the pandemic it us. The assumption is always that people are going to show up in physical spaces and then let's focus on the experiences of the hour. I believe with the pandemic coming in, some of the power of choice has shifted towards the towards the user of the person in choosing whether they want to consume a particular service experience by going to a physical space or by staying at home and doing it on the radio. I look at the past few weeks, we've had a few. Both parties were used to me in person, and now we are doing it over a zoom or other video conferencing policies. So that choice moving over to the person means that we can't just assume that people are going to show up in physical spaces and then focus only on okay once they show up, what can I do about the experience of the outcomes? The focus on edge is now shifting to where we have even before, we have even look at enabling the technologies and experiences that entice people that convince people come into the physical space and consume that service on. But our experience and that means that the scope of what we do at the intelligent edge actually is gonna increase is gonna whiten. And that's the reason why it was timely that we were working on the ed Services platform. Even, you know, it started working on it long before the panoramic ever showed up. But that focus is now putting us in the right place. You know, from a competitive perspective, leverage all of the technologies that people so far, the package it up together to offer our customers something that is far beyond just connectivity and security. >>Great final question I have for you. You're talking about these, you know, not necessarily in person. Experience is here. We have, you know, did the Discover virtual experience give our audience just a little bit as to what they expect from Ruba and what you want people to take away from the Discover virtual experience when it comes to Aruba and networking at hp, >>right? And you know, the common way we kind of when we talked to some customers is always an association off of the Aruba brand todo a wireless lan. And you know what time in the past five years is being part of Hewlett Packard Enterprise? We've kind of expanded that into other networking and some some of the security functions that we also. But more importantly, I encourage everybody to go look at some of the technologies that we packaged together as orderly it services platform and how they can help. Our customers are not just like we are also all of the other stakeholders within their organizations, but to create that compelling experiences and outcomes at the edge. >>Excellent. Well, thank you so much for joining us. Appreciate all the updates. >>Thanks. Thanks for having me. >>Alright. Stay tuned for more coverage. HP discover virtual experience. I'm Stew Minimum. And thank you for watching the Cube. >>Yeah, yeah, yeah.