>> Narrator: Live from Manhattan, it's theCUBE, covering AWS Summit New York City 2017, brought to you by Amazon Web Services. >> And welcome back to New York, here. AWS Summit, theCUBE continue our coverage of what's happening here in the Big Apple. I'm John Walls along with Stu Miniman, and what this is is maybe not the most prolific CUBE guest of all time, but he's in the hall of fame. He really is a CUBE MVP for sure. It's good to have David Richards with us, the president, chairman, CEO of WANdisco. Good to see you, sir. >> It's a pleasure to be back again. It feels like home. >> It is like home. We need to get you your own microphone, I think, you know? >> David: I know it. I need my name on the back of the seat or something. >> This isn't quite a home game for you. All right, so you've got an office in Sheffield, England. >> David: Yeah. >> You've got an office out in the valley, Silicon Valley. We got ya right in the middle, I think. >> David: Yeah. >> Almost, don't we? So-- >> Exactly. >> We kind of split the difference for you this one. >> I always tell people I'm recolonizing the United States. I've been here for about 20 years. I can change the accent. >> Right. >> I'll get you all, eventually. >> All right, well, another year or two, we'll see how that works for ya. Big, big, I guess six, seven months for you, right? As far as some acquisitions you've done, some vice partnerships and arrangements you've done. >> Yes, as a business, we've really progressed well in the first half of the year. I've got to be a little bit careful. We've got results coming out September the sixth in London, but we did do a pre-announcement of a business update. We signed a record big data cloud contract with a very large bank for over four million dollars. That was our largest ever contract win. We signed a major retailer who we can't name, obviously, which is another sort of cloud ObjectStore on premises. A big data win, and interestingly, we stopped burning cash and investors really like this kind of perfect storm of, 175%, 173% growth in our cloud big data revenue, booking, sorry, combined with a flat cost-base, which meant, first half of last year, burning five point four million dollars down to virtually zero, just $600,000 in the first half. So, investors really like that. We really like that, and it demonstrates that perfect storm of flat cost-base and growing sales. >> David, I'm curious, does working with Amazon, and your customers being on Amazon, does the speed and agility and everything like that contribute to that profitability? >> Well, Amazon kind of changes the game for all vendors, right? Because nobody, it used to be this sort of big four, five, six, whatever it is these days, consulting companies that had to implement ERP systems and all those complex applications. I don't necessarily think they're the people, they're not the go-to people anymore for cloud. So, it's down to uniqueness of technology. Amazon have got such a wide array, we were talking earlier about some of their announcements out today as they continue to go up the stack with applications and so on. So, it does lend itself very well to small vendors with sticky, unique intellectual property and unique products and services that are going to really thrive in this kind of cloud environment. So, we've really enjoyed working with Amazon, but we're also working with the other cloud vendors, as well, and I have to say, when we first saw the Snowmobile and the Snowball, well, actually, the Snowmobile, drive out on stage in New York, was it 12, 18 months ago? It's dog years, so everything goes seven times faster. >> John: Right, right, right. >> I was laughing. I was like, "How on Earth can you possibly use a truck to move data?" But a customer came to us, a prospect came to us the other day, he wanted to move a hundred petabytes of data. Now, if you're going to use the public internet to do that, that's going to take a hell of a long time. So, this idea of a mix between physical and digital data movement I think is, when moving to cloud, is actually fascinating. I think it's a really fascinating subject area. One that customers are definitely going to use. >> Yeah, you've got a great vantage point looking at customers' migrations. >> David: Yeah. >> It was actually something big in the keynote talking about, there are so many migrations out there that Amazon released an AWS Migration Hubs. So, obviously, physics is always a challenge, my legacy mindset. Customers, we heard a customer up onstage and it's usually not lift and shift maybe for the private cloud, but for public cloud, I usually, I need to rewrite, I need to do micro-services. What is the friction for customers, and how are you and Amazon and the other clouds helping customers work through those challenges? >> OK, so, just to take a step back and think about the problems that happen at hyper-scale data movement. So, small-scale data, gigabyte-scale data, the stuff that you typically see in a relational database, they're not particularly big problems. It's kind of minimal outage, press pause, move data, make it consistent, and you're done. You can have a sort of, a small outage, maybe 15 minutes or even a day to move data, but when it gets to hyper-scale, when it gets to petabyte-scale, multi-terabyte-scale data moves, that's when you have a problem, and that's really the problem that we solve. So, the idea that you can move data that's moving and changing without an interruption to service from on-premise to cloud and support a hybrid cloud topology for an elongated period of time is fascinating. I was listening at an investor conference to the CEO of VMware who was talking about, we're going to be in a situation of hybrid cloud for the next 20, 25 years because, overnight, not everybody can just repurpose every single application that they're running on-premise, whether it's in the main frame application, or a relational data application, or wherever it is in the OP application, and repurpose that in cloud overnight. So, we're going to have to gradually move and migrate those applications over. So, it's highly likely we're going to be in a hybrid cloud environment for the foreseeable future, and that's actually fantastic news for us. We're moving, as I said, at scale companies into cloud with transactional data, and nobody else can touch us in terms of the uniqueness of the IP, which is fantastic news for us. >> In terms of just big data in general, Stu has one use for it, I have a different use for it. It's going to live in a lot of different places. How are you responding to different needs within your clients and trying to make them more effective, make them more efficient? And yet, when you're dealing with more and more data, that's a big storm to handle. >> That's a great question. I went to speak a couple of months ago to a new customer of ours who is a major healthcare provider on the east coast, and I kind of said to him, "OK, you've had this deep cluster for the past three years. Why are you calling us? Why now?" Which is the question that I always ask our customers. Why? What changed? Why are you doing this right now?" And maybe for the past three years they've been putting legal data into the system. That's data, but who cares if you can't get access to it? We can move to telephone. We can move to e-mails. We can go into an archive, into a paper archive even, to find it, but the why now is that they're now putting patient record data, patient information with regulated SLA's into this system, and that really is our sweet spot. As you get to, remember that investment thesis, small-scale gigabyte outage is small outage, when you get into petabyte, exabyte-scale, when you've got data sets that are a thousand, a million times greater, it's linear to the quantum of data. That outage becomes a thousand or a million times greater. So, that's kind of intolerable. So, we love it when strategic applications, regardless of what the use case is, we could all have different, it might be patient data, it might be retail information, it might be banking data, it might be customer retention information, when those strategic applications move onto this hyper-scale infrastructure, you have to support RTO and RTP, and that's what we do. >> And is a byte a byte a byte? You have these thousands of needles in haystacks, right? How do you assign value to one as opposed to another? >> So, this is another great question and one that investors kind of ask me a lot. So, we used to model our business from kind of the ground up. So, we take the classic enterprise sales team, you have a sales and marketing organization that's quite large, you would multiply that by their quota and then multiply it by 66% because that's how many of them are going to be successful in selling product. Well, we completely threw that away when we launched WANdisco Fusion, our new technology, early 2016. Then, we moved to a channel-based approach. So, we have IBM, we have an OAM, 5,000 quarter-carrying enterprise sales guys at IBM selling our products. That was a fantastic deal for us. We signed it in April 2016, and they've done the first half of this year, and made at least six million dollars in sales that we have also announced, and then, we've got strategic partnerships with Amazon, with Microsoft, with Google, and we model our business by those channels. So, we're not looking for needles in haystacks. We don't, we could never hire another, I mean, if we had to come into the market and say, "We need to go and hire 5,000 enterprise sales guys," we'd have to be raising, doing fund-raisers like Uber or something. We'd just be untenable. We couldn't do it. So, we have a product that lends itself very well to a channel-based approach, and that's working very nicely for us. So, we're not looking for, we're just looking for haystacks. Somebody else can go and find the needles. >> John: Find me and you, right? >> Right. >> David, how are your customers managing the pace of change these days? We've said Amazon is an example. It's like everyday there's three new services coming out. Are they excited? Are they completely overwhelmed? What do you see these days? >> So, I think it's classic sort of products and option lifecycle stuff. The sort of technical enthusiasts, they love all this change. The early-stage companies that are implementing this new cloud-based technology, ObjectStore technology and so on, they're managing very well. It's the later-stage companies you might go to and say, "ObjectStore," and they'll go, "What's ObjectStore? We're just getting our head around Hadoop, and Hive, and Pig, and all this other stuff that you were talking about three years ago," and sales guys go in there now and say, "Oh, no, no, no, don't worry about Hadoop. Nobody's going to run Hadoop in the cloud." It's like, "Well, that's what you told me three years ago." So, I think the market's certainly divided. I think you're going to see, as we move up products and option lifecycle, you're going to see lots and lots and lots of interesting moves happen. The companies that seem to be owning cloud, I think Alibaba is coming up really fast. We're seeing them doing some interesting things. Obviously, they've got dominoes in the Chinese market. Amazon First-Mover, Microsoft's futures dependent on cloud. So, they all have their different spin and different take on applications that they're going to run in cloud. I think there is, I think it's a bit like the cellphone industry. There's lot and lots of different plans, lots and lots of different confusing nomenclature, but that's going to settle out in the next couple of years, but there's unquestionably, if you look at the audience here today, unquestionably large-scale movement of applications and data to cloud. >> Well, we appreciate the time, as always. Great to see you. Another notch in your CUBE belt. (laughing) So, congratulations for that, and maybe you can settle in to New York for a day or two. You said your travels have had you flip-floppin' back and forth between England and here. So, maybe you can settle in for a day or two. >> Yeah, I need to replicate myself. I need to put myself in at least two different places at the same time. >> Live data replication right here. (laughing) All right, David, thanks for bein' with us. David Richards. >> Thank you. Thanks guys. >> Back with more here on theCUBE, we continue our coverage of AWS Summit from New York City right after this break. (upbeat music)

>> Narrator: You are Cube Alumni. Live from Silicon Valley, it's the Cube. Covering Google Cloud Next 17. >> Welcome back to the Cube's coverage of Google Next 2017. Having a lot of conversations as to how enterprises are really grappling with cloud. You know, move from on premises to public cloud, multi-cloud, hybrid-cloud, all those pieces in between. Happy to welcome to the program a first time guest, Paul Scott-Murphy who's the vice president of product management at WANdisco, thanks so much for joining us. >> Yeah, thanks very much, it's great to be here and join your program. >> Alright, so you know, Paul, I think a lot of our audience probably is familiar with WANdisco, we've had many of your executives on, really dug into your environment for the last few years, usually see you guys a lot of not only the big data shows, we've got Strata coming up next week, last time I did an interview with you guys was at AWS re:Invent. So you know, WAN, replication, data, all those things put together, you've got a big bucket of big data in cloud. Tell us a little bit about kind of your background, your role at the company. >> Okay. So I've been at WANdisco now for about two and a half years. I previously worked for TIBCO Software for a decade. Working out of Asia-Pacific, held the CTO role there for APJ. And joined WANdisco two and half years ago, just as we were entering into the big data market with our replication capabilities. I now run product management for the company and work out of our headquarters here in the Bay area. >> Stu Miniman: Great. And connect with us you know, what you guys are doing at Google, what's the conversations you're having with customers that are attending. >> Yeah, so Google is definitely one of the key strategic partners for WANdisco, obviously particularly in the Cloud space for us. We're hosting a booth fair for the conference and using that as an opportunity to speak to other vendors and the customers that we have attending the Google conference. Particularly around what we're doing for replication between on premises and cloud environments, and how we support Google Cloud. Dataproc, and Google Cloud Storage as well. >> Can you help unpack for us a little bit, where are your customers, give us a tip of the customers, you know they're saying hey, I want to start using this cloud stuff, how are they figuring out what applications stay on premises, what goes to the public cloud, and that data piece is a challenging thing, moving data is not easy, there's a whole data gravity piece that fits into it, maybe you can help walk us through some of the scenarios. >> Yeah, as we're progressing the technology, we're certainly finding a broader and broader range of customers getting interested in what they can do around data replication. The sorts of organizations that we deal with primarily are those who are looking to leverage both on premises and cloud infrastructure. All those who are moving from a situation where they've been toying with these environments and moving into production-ready scenarios where the demands or enterprise level SLAs or availability, or the needs around disaster recovery, backup and migration use cases become a lot more dominant for them. The organizations that we work with typically they are larger organizations, we deal a lot with retail, with financial services, telecommunications, with research institutions as well. All of whom have larger needs around taking advantage of cloud infrastructure. Of course they all share the same challenge of the availability of their data, where it's sourced from, isn't always necessarily in the cloud, taking advantage of cloud infrastructure then requires them to think about how they make their information available both to their on premises systems and to the cloud environment where they can run perhaps larger analytic workloads against it, or use the cloud services that they would otherwise not have access to. >> One of the challenges we've seen is when we've got kind of that hybrid or multi-cloud environment, you know, manages my data, kind of the holes, you know, orchestrating pieces and getting my arms around how I take care of it and leverage it can be challenging. Is that something you guys help with or are there other partners that get involved, how are customers helping to sort out and mature these environments? >> Yeah it's a big question of course, you've touched on the management of data as a whole and what they means, and how organizations handle that. WANdisco's role in supporting organizations with those challenges is in ensuring that when they need to take advantage of more than one environment or when they need their data to be available in more than one place. They can do that seamlessly and easily. What we aport to do and what we encourage our customers to do with our technology is rather than keeping one copy of data on premises and using it solely there, or copying your data to another location in order that you can act upon it there, we treat those environments as the same and say well, have the best of both worlds. Have your data available in each location, let your applications use it at the local speed and do that without regard to the need for retaining a workflow by which you exchange data between environments. WANdisco's technology can take care of all of that, and to do so it has to do some very smart things under the covers, around consistency and making it work across wide-area networks. Makes it particularly suited to cloud environments where we can leverage those underlying capabilities in conjunction with the scale of the cloud which is a native home for data at scale. >> Can you give us some, you know, where do you see customers kind of in this maturation, Dan Green made a statement that today 5% of the data is in the public cloud, so what are some of those barriers that are stopping people from getting more data in the Cloud, is it something that we will just see a massive adoption of data in the cloud, or what's your guys viewpoint as to where data's going to live, how that movement is happening. >> Yeah, I think longer term the economic advantages of using cloud environments are undeniable. The cost advantages of hosting information in the cloud and the benefits that come from the scalability of those environments is certainly far surpassing the capabilities that organizations can invest in themselves through their own data centers. So that natural migration of data to the cloud is a common theme that we see across all sorts of organizations. But as many people say, data has gravity, and if the majority of your application information resides today in your own environments or in environments outside of the cloud, whether that's internet connected devices, or in points of ingest that reside outside of cloud environments, there's a natural tendency for data to remain in place where they're either ingested or created. What you need to do to better take advantage of cloud environments then is the ability to easily access that data from cloud infrastructure. So the sorts of organizations that are looking to that are those with either burgeoning problems around consuming data at multiple points. They might operate environments that span multiple contents. They might have jurisdictional restrictions around where their data can reside but need to control its flow between separate environments as well. So WANdisco can certainly help with all of those problems, the underlying replication technology that we bring to bear is very well suited to it. But we are a part of the overall solution. We're not the full answer to everything. We certainly deal very well with replication and we believe we cover that very well. >> I'm curious when you talk about kind of the dispersion of data and where it's being created, of course edge-use cases for things like IOT, are quite a hot topic at that point. Is that something you guys are touching on yet, gets involved in discussions, you know, where does that sit? >> Yeah, definitely. The interesting thing about WANdisco's approach to data replication is that we base it on this foundation of consistency. And using a mathematically proven approach to distributed consensus to guarantee that changes made in one environment are represented in others equally, regardless of where those changes occur. Now when you apply that to batch based data storage or streaming environments, or other forms of ingest is relatively irrelevant as long as you have that same underlying capability to guarantee consistency regardless of where changes occur. If you're talking about high IT environments where you naturally have infrastructure sitting outside of the cloud, and this is the type of infrastructure that needs to reside out of the cloud, right, your edge points where data are captured, where your consuming information are generating it from devices perhaps from an automotive vehicle or from an embedded device, some sort of sensor array, whatever that happens to be, these are the types of environments where it means you're generating data outside of the cloud. So if you're looking to use that inside of the cloud itself, you need some way of moving data around, and you need to do that with some degree of consistency between those environments to make sure you're not just challenged with extra copies of information. >> The other really interesting topic around data that's being discussed at the Google Cloud event is artificial intelligence, machine learning, I'm curious, are your customers involved in that, where do you see that kind of on the radar today? >> Yeah, it's obviously an absolutely critical part of where the IT industry in general is going, and the type of solution that's fed off data. These systems are better as your data set grows. The more information you have, the better they work, and the more capable they become. It's certainly an aspect of how well machine learning technique and artificial intelligence approaches have been adopted in the industry, and the rapid rate of change in that side of IT is driving a lot of the demand for increasing access to data sets. We see some of our customers using that for really interesting things. You might've seen some of the recent news around our involvement in a research project led through the University of Sheffield, looking to use data sets captured from a variety of research institutions and medical environments to solve the problem of identifying and responding to dementia. And it's a great outcome from that type of environment. Through which machine learning techniques are being applied across data sets. What you find though is that because there's a large set of institutions sharing access to data, no single data set is sufficient to support those outcomes, regardless of what intelligence you can place against the machine learning models that you build up. So by enabling the ability to bring those data sets together, have them available in a single location, being the cloud, where larger models can be assessed against the data sets means much better outcomes for those types of environments. >> Okay. Paul, in your role of product management, we've been through some of the hot buzz terms out there, how do you help the company identify those trends, focused on the ones that are important to your customers and the kind of feedback loops that you get from them. >> I guess a lot of work in the end is how we do it but we need to listen to customers directly of course, understand what they're looking to do with their information systems. What they're aiming for. Their goals at a business level, what type of value that they want to get out of their data, and how they're approaching that. That's really critical. We also need to look to the industry in general. We're obviously in a very rapidly changing environment where technologies, the organizations that build IT systems, are increasingly adopting new approaches and building systems that simply weren't available days ago. You look at the announcements from Google of late around their video intelligence APIs as a service, their image APIs as well, all new capabilities that organizations today now have access to. So bringing those things together, understanding where the general IT trends are, how that applies to our customers, and what WANdisco can do with the unique value that we bring is really key to the product management role. >> Alright, and Paul, you've been at the show, curious, any cool things you saw, interesting customer conversations that may want to give our audience a flavor of what's going on, why 10 thousand people are excited to be at the event. >> Yeah well it is a very exciting event, just the scale of these types of events run by Google and similar organizations is something in itself to behold. We're really excited to be a part of that. The things that are really interesting for me out of the show tend to be where we see customers or opportunities coming to us, identifying challenges that they can't address without the type of technology that we bring to bear. Those tend to be areas where either they're looking to do migration from on premises systems into the cloud which is obviously very strong interest for Google themselves, they need to bring customers in to take better advantage of the services that they have. WANdisco can play a strong role in that. We're seeing a lot of interesting things around the edge too, so all of the ways in which data can be used are always exciting and interesting to see. The combination of technologies like artificial intelligence, like virtual reality, the type of work that WANdisco does also, is certainly going to bring forward I think a new wave of applications and systems that we just hadn't considered even a few years ago. >> Yeah. Lots of really interesting things. There's personal assistants at home and personal assistants that are listening. Okay Google, subscribe to SiliconANGLE on Youtube. We'll be back with lots more coverage here from the Cube, talking about Google Next 2017. You're watching the Cube.

>> Announcer: Live from San Jose, in the heart of Silicon Valley, it's theCUBE. Covering AWS Summit 2016. (upbeat electronic music) >> Hello everyone, welcome to theCUBE. Here, live in Silicon Valley, at Amazon Web Services, AWS Summit, in Silicon Valley. I'm John Furrier, this is theCUBE, our flagship program. We go out to the events and extract the signal from the noise. I'm here with my co-host. Introducing Lisa Martin on theCUBE, new host. Lisa, you look great. Our first guest here is David Richards, CEO of WANdisco. Welcome to theCUBE, good to see you. >> Good to see you, John, as always. >> So, I've promised a special CUBE presentation, $20 bill here that I owe David. We played golf on Friday, our first time out in the year. He sandbagged me, he's a golfer, he's a pro. I don't play very often. There's your winnings, there you go, $20, I paid. (smooching) (laughing) I did not well challenge your swing, so it's been paid. Great fun, good to see you. >> It was great fun and I'm sorry that I cheated a little bit, mirror in the bathroom still running through your ears. >> I love the English style. Like all the inner gain and playing music on the course, it was great a great time. When we went golfing last week, we were talking, just kind of had a social get-together but we were talking about some things on the industry mind right now. And you had some interesting color around your business. We talked about your strategy of OEMing your core technology to IBM and also you have other business deals. Can you share some light on your strategy at WANdisco with your core IP, and how that relates to what's going on in this phenom called Amazon Web Services? They've been running the table on the enterprise now and certainly public cloud for years. $10 billion, Wikibon called that years ago. We see that trajectory not stopping but clearly the enterprise cloud is what they want. Do you have a deal with Amazon? Are you talking to them and what is that impact your business? >> Well I mean the wonderful thing is if you go to AWS Marketplace, you go to that front page, we're one of the feature products on the front page of the AWS Marketplace, so I think that tells you that we're pretty strategic with Amazon. We're solving a big problem for them which is the movement of data in and out of public cloud. But you asked an interesting question about our business model. When we first came into the whole big date marketplace we went for the whole direct selling thing like everybody does, but that doesn't give you a lot of operational leverage. I mean we're in accounts with IBM right now, you mentioned earlier, MR technology. At a big automotive company they have 72 enterprise sales guys, 72. We could never get to that scale any time soon. >> And you have relationships too. So it's not like they like, you know, just knocking on doors selling used cars. They are strategic high-end enterprise sales. >> Exactly. That gives us a tremendous amount of operational leverage and AWS is one of the great stories, will be one of the great IT stories of the century. To go from zero to 15 billion. If AWS was an independent company, faster than any other enterprise software company in the history of mankind, is just incredible. >> Yeah, well, enterprise obviously, they care about hybrid cloud, which you know all about through your IBM relationship. Andy Jassy at Amazon, the CEO now of Amazon. Newly announced title, he's certainly SVP, basically he's been the CEO of Amazon. He's been on record, certainly on stage, and on theCUBE saying, why do even companies need data centers? That kind of puts you out of business. You have a data center product, or is the cloud just one big data center? Will there ultimately be no data center at all? What's your thoughts? >> That's a great question. We see the cloud as just one great big data center or actually many great big data centers. And how you actually integrate those together, how you move data between data centers, how you arbitrage been cloud vendors. Are you really going to put all your eggs into one basket? You're going to put everything into AWS. Everything into Azure. I don't think you will. I think you'll need to move data around between those different data centers and then how about high availability? How do you solve that problem? Well WANdisco solves that problem as well. >> So a couple of questions for you David. One of the things that Dr. Wood said in the keynote today was friends don't let friends build data centers. So I wanted to get your take on that as well as from an IBM perspective. We just talked about the OEM opportunity that you're working there to get to those large enterprises. Does that mean that you're shifting your focus for enterprise towards IBM? Where does that leave WANdisco and Amazon as we see Amazon making a big push to the enterprise? >> So I think that was some big news that came out last week that was missed largely by the industry, which was the FCA, the financial regulatory authority in the United Kingdom, came out and said, we see no reason why banks cannot move to cloud from a regulatory perspective. That was one of the big fears that we all had which is are banks actually going to be able to move core infrastructure into a public cloud environment? Well now it turns out they can. So we're all in on cloud. I mean, we can see, if you look at the partnerships that we're focused on, it's the sort of four/five cloud vendors. It's the IBM, the AWS, Azure, Oracle, when they finally built that cloud, and so on. They're the key partnerships that we see in the marketplace. That will be our go-to market strategy. That is our go-to market strategy. >> So one of the things that's clear is the data value and you do a lot of replications. So one of the things that, I forget which CUBE segment we've done over the years, that's Hurricane Sandy I think it was, in New York City. You guys were instrumental in keeping the up-time and availability. >> Lisa mentioned, Amazon vis-a-vis IBM, obviously two different strategies, kind of converging in on the same customer. Amazon's had problems with availability zones and they're rushing and running like the wind to put up new data centers. They just announced a new data center in India just recently. Andy Jassy and team were out there kicking that off. So they're rushing to put points of presence, if you will, for lack of a better word, around the world. Does that fit into your availability concept and how do customers engage with you guys with specifically that kind of architecture developing very fast? >> I think that's a really great question. There are problems, there have been historic problems with general availability in cloud. There are lots of 15-minute outages and so on that cost billions and billions of dollars. We're working very closely and I can't say too much about it with the teams that are focused on enabling availability. Clearly the IBM OEM is very focused on the movement of data from the hybrid cloud, I'm from a data availability perspective. But there's a great deal of value in data that sits in cloud and I think you'll see us do more and more deals around general cloud availability moving forward. >> Is there a specific on that front project that you can share with us where you've really helped a customer gain significant advantage by working with AWS and facilitating those availability objectives, security compliance? >> So, one of the big use cases that we see, and it's kind of all happening at once really, is I built an on-premise infrastructure to store lots and lots of data, now I need to run compute and analytics against that data and I'm not going to build a massive redundant infrastructure on-premise in order to do that, so I need to figure out a way to move that data in and out of cloud without interruption to service. And when we are talking about large volumes of data, you simply can't move transactional data in and out of cloud using existing technology. AWS offers something called Snowball where you put it into a rugged ICE drive and then you ship it to them, but that's not really streaming analytics is it? Most of our use cases today are either involved in either the migration of data from on-premise into cloud infrastructure, or the movement of data for an atemporal basis so I can run compute against that data and taking advantage of the elastic compute available in cloud. They are really the two major use cases that web, and we're working with a lot of customers right now that have those exact problems. >> So majority of your customers are more using hybrid cloud versus all in the public cloud? >> Hybrid falls into two categories. I'm going to use hybrid in order to migrate data because I need to keep on using it while it's moving. And secondly I need to use hybrid because I need to build a compute infrastructure that I simply can't build behind firewall. I need to build it in cloud. >> So the new normal is the cloud. There was a tweet here that says, database migration, now we can have an Oracle Exadata data dispute that we're ready to throw into the river. (David laughs) Database migration is a big thing and you mentioned it on the first question that moving in and out of the cloud is a top concern for enterprises. This is one of those things, it's the elephant in the room, so to speak. No pun intended AKA Hadoop. Moving the data around is a big deal and you don't want to get a roach motel situation where you can check in and can't check out. That is the lock-in that enterprise customers are afraid of with Amazon. You're thoughts there, and what do you guys offer your customers. And if you can give some color on this whole database migration issue, real, not real? >> The big problem that the Hadoop market has had from a growth perspective is applications. And why they had a problem, well it's the concept of data gravity. The way that the AWS execs will look at their business the way that the Azure execs will look at their business at Microsoft. They will look at how much data they actually have. Data gravity. The implication being if I have data then the applications follow. The whole point of cloud is that I can build my applications on that ubiquitous infrastructure. We want to be the kings of moving data around right? Wherever the data lands is where the applications follow. If the applications follow, you have a business. If the applications don't follow, then it's probably a roach motel situation, as you so quaintly put it. But basically the data is temporal. It will move back to where the applications are going to be. So where the applications are, and it's who is going to be the king of applications, will actually win this race. >> So, question, in terms of migration, we're hearing a lot about mass migration. Amazon's even doing partner competency programs for migration. Not to trivialize it, talk to us about some of the challenges that you are helping customers overcome when they sort of don't know where to start when it comes to that data problem? >> If it's batch data, if it's stuff that I'm only going to touch if it's an archive, that I only going to touch once in a blue moon, then I can put it into Snowball and I can ship my Snowball device. I can sort of press the pause button akin to when I'm copying files into a network drive where you can't edit them, and then wait for two months, three months. Wait for them to turn up in AWS and that's fine. If it's transactional data where maybe 80% of my data set changes on a daily basis and I've got petabyte scale data to move, that's a hard problem. That requires active transactional data migration. That's a big mouthful, but that's really important for run-time transactional data. That's the problem that we solve. We enable customers, without interruption to service to move a massive scale active transactional data into cloud without any interruption of service. So I can still use it while it's moving. >> One of the things we were talking about before you came on was the whole global economy situation. I think a year and a half ago, or two years ago, you predicted the housing bubble bursting in London. You're in the London Exchange, you're a public company. Brexit, EU. These are huge issues that are going to impact, certainly North America looking healthy right now but some are saying that there's a big challenge and certainly the uncertainty of the U.S. presidency candidates that are lack of thereof. The general sentiment in the U.S. We're in a world of turmoil. So specifically the Brexit situation. You guys are in London. What does this impact your business and is that going to happen? Or give us some color and insight into what the countrymen are thinking over there. >> Okay, so, I get asked by, I live here of course, and I've lived here for 19 years. It feels like I'm recolonizing sometimes, I have to say. No, I'm joking. I get asked by a lot of Americans what the situation is with Brexit and why it happened. And for that you have to look at economics. If you sort of take a step back, in Northern Europe nine of the 10 poorest parts of Northern Europe are in the U.K. And one, only one of the top 10 richest parts is in the U.K. and that's London. So basically outside of London the U.K. has a really big problem. Those people are dissatisfied. When people are dissatisfied, if they're not benefiting from an economic upturn, if governments make it, like the conservative government for the past four years made huge cuts, those people don't benefit, and they really feel pissed off and they will vote against the government. >> John: So protest vote pretty much? >> Brexit was really, I think, a protest vote. It's people dissatisfied. It's people voting basically anti-immigration which is, being in the U.S., is a really foreign thing to us. >> But there are some implications to business. I mean obviously there's filings, there's legal issues, obviously currency. Have you been impacted positively, negatively and what is the outlook on WANdisco's business going forward with the Brexit uncertainty and/or impact? >> We're in great shape because we buy pounds. We buy labor that's now discounted by 20% in the U.K. I just got back from the U.K. If you want to go on vacation, Americans, anywhere, go to London this summer and go shopping because everything is humongously discounted for us American's right now. It's a great time to be there. So from a WANdisco perspective-- >> John: How does that affect the housing bubble too? >> I said to you about a year ago that the London housing market was akin to the jewelry shops that existed in Hong Kong a few years ago, where the Chinese used to come over and basically launder money by buying huge diamonds and bars of gold and things. If you look at the London housing market it is primarily fueled by the Saudis and by the Russians who have been buying Hyde Park Corner 100 million pounds, $160 million, well $140 million now, apartments and so on in London. Now seven, and I repeat seven housing funds in the U.K. last week canceled redemptions. Which means that they can foresee liquidity problems coming in those funds. I think you're about to see a housing crash in London, the like of which we've never seen before, and I think it would be very sad and I think that will make people really question the Brexit decision. >> John: So sell London property now people? >> Yes. >> Before the crash. >> And go shopping, I heard the go shopping. So following along that, you talked about the significant differential between London and the rest of the U.K. You're from Sheffield, you're very proud of that. You've also been proud of your business really helping to fuel that economy. How do you think Brexit is going to affect WANdisco in your home area of Sheffield. >> I don't think it really will. I think our employees there, relative terms, very well paid. They're working on interesting things. They're working very closely with the AWS team, for example, the S3 team, the MR team. And building our technology, we're liaising very closely with them. They're doing lots of interesting things. I suspect their vacations into Europe and their vacations to the United States have just gone up by about 20% which will reduce the amount of beer that they can drink. It's a big beer drinking part of the world in Sheffield. Sheffield is, in terms of cost of living, is relatively low compared to the rest of the U.K. and I think those people will be pretty happy. >> David, I appreciate you coming on theCUBE. I want to give you the final word here on the segment because you're a chief executive officer of a public company. You've been in the industry for awhile. You've seen the trials and tribulations of the Hadoop ecosystem. Now basically branded as the data ecosystem. As Hortonworks has recently announced, Hadoop Summit is now being called Data Works Summit. They're moving from the word Hadoop to Data. Clearly that's impacting all the trends. Cloud data, mobile is really the key. I want you, and I'm sure you get this question a lot, I would like you to take a minute and explain to the audience that's watching, what's this phenom of Amazon Web Services really all about? What's all the hub-bub about? Why is everyone fawning over Amazon now? When you go back five years ago, or 10 years ago when it started, they were ridiculed. I remember when this started I loved it, but they were looked at as just a kind of a tinkering environment. Now they're the behemoth and just on an unstoppable run and certainly the expansion has been fantastic under Andy Jassy's leadership. How do you explain it to normal people what's going on at Amazon? Take a minute please. >> So Amazon is, and that's a brilliant question, by the way. Amazon is the best investor-relation story ever, and I mean ever. What Bezos did is never talked about the potential size of the market. Never talked about this thing was going to generate lots of cash. He just said, you know what, we're building this little internet thing. It might, it might not work. It's not going to make any money. And then in the blink of an eye, it's a $15 billion revenue business growing faster than any other part of his business and throwing off cash like there's no tomorrow. It is just the most non-obvious story in technology, in business, of any public company ever. I mean AWS, arguably, as a stand alone entity, is almost worth as much as Oracle. An unbelievable, an unbelievable story and to do that with all the complexity. I mean mean running a public company with shareholder expectations, with investor relations where you have to constantly be positive about what's going on. For him to do that and never talk about making a profit, never talk about this becoming a multi-billion dollar segment of their business, is the most incredible thing. >> So they've been living the agile. Certainly that's the business story, but they've been living the agile story relative to announcing the slew of new products. Basic building blocks S3, EC2 to start with, as the story goes from Andy Jassy himself, and then a slew of new services. It's a tsunami of every event of new services. What is the disruptive enabler? What's the disruption under the hood for Amazon? How do you explain that? >> Well, I mean what they did is they took a really simple concept. They said, okay, storage, how do we make storage completely elastic, completely public, in a way that we can use the public internet to get data in and out of it. Right? That sounds simple. What they actually built underneath the covers was an extremely complex thing called object store. Everybody else in the industry completely missed this. Oracle missed it, Microsoft missed it, everybody missed it. Now we're all playing catch-up trying to develop this thing called object store. It's going to take over, I mean, somebody said to me, what's the relevance of Hadoop in cloud? And you have to ask that question. It's a relevant question. Do you really need it when you've got object store? Show me side-by-side, object store versus every, you know, Net Apple, Teradata, or any of those guys. Show me side-by-side the difference between the two things. There ain't a lot. >> Amazon Web Service is a company that can put incumbents out of business. David, thanks so much. As we always say, what inning are we in? It's really a double-header. Game one swept by Amazon Web Services. Game two is the enterprise and that's really the story here at Amazon Web Services Summit in Silicon Valley. Can Amazon capture the enterprise? Their focus is clear. We're theCUBE. I'm John Furrier with Lisa Martin. We'll be right back with more after this short break. (techno music)