>> Live from Las Vegas, it's theCUBE covering AWS re:Invent 2018. (techy music) Brought to you by Amazon Web Services, Intel, and their ecosystem partners. (techy music) >> Welcome back, everyone, live coverage here of AWS re:Invent 2018, I'm John Furrier with Dave Vellante. Two sets, three days of wall-to-wall coverage. Hundreds of videos, great content. Three-hour keynote from Andy Jassy, 52,000 people here. This is where the industry now is getting together to set the agenda for the future. It's cloud-based, it's on-premise, it's all cloud all the time, our next two guests are with Amazon. Dave McCann, who's with the marketplace, and Stefan Sigg, chief R&D officer at Software AG, great to see you. >> Good being back. >> Great to come back. >> Thank you for having me. >> So, I've got to say, you know, the customer dynamic that you guys have is pretty impressive, you guys are a customer. The value creation of the cloud is pretty amazing. What's your world like these days in terms of your market? You're in Europe, you've got thousands of customers, what's the update? >> Well, I mean, we're operating worldwide, US being the biggest market, so 70 countries we're in. From a customer perspective, all over the place with our labs, and obviously, I mean the cloud and the digitalization is a whole new ballgame, and we are... Just at the time, we are reinventing ourselves for maybe the third time in order to push, to help the customers to go that transition, and our middleware expertise and our expertise that we now newly have added to in terms of IoT is just amazingly how that momentum is showing. >> I'd like to get your analysis of Andy Jassy's keynote, and I'll throw one perspective at you. >> Yeah. >> besides the IoT awesomeness that the edge is now with satellites coming-- >> Yes. >> And unlimited connectivity in the future. >> Yes. >> But it kind of points out that this new kind of software developer, new personas-- >> Oh, yeah. >> The builder, the right tool for the right job. >> Yeah. >> There's a set of services now out there that can be merchandised and bought and sold. Marketplace, which you run, software design's changing, but also consumption upon the buying side's changing. What's your analysis to that? >> Well, for us it's just... It couldn't be better, because it's now, again, that software comes into enterprises. It has been pushed aside for many years because people would just implement standard software, would implement, you know, office software, and now all of a sudden, driven by the digital transformation and stuff like IoT, there's a demand for software, building software for their own needs, not just for the back office, but you know, equipping the products with sensors, with data, and enhanced software. So, that's exactly our play, helping those customers, those enterprises to just start their software where it's necessary, and we provide the platform getting them there. >> Yeah. >> So, Dave, Software AG's almost as old as I am. Right, mainframe, you went through the client server, you dealt with the desktop, and now the cloud era. How are you helping companies like Software AG maintain their relevance, keep their infrastructure modern? How does that all work, give us some insight on that. >> So, first of all, AWS broadly is obviously working with all the world's top software companies, and if you think of it, all the large enterprises in the world are moving their applications onto the cloud, and when if you think of the average enterprise has got 1,000 applications, those 1,000 applications are woven into a lot of third party software, so as our AWS customers move onto AWS, they want to bring their software with them, and clearly we work with companies like Software AG, and these guys are modernizing and rearchitecting their software, and the launch we just did today on container marketplace, so now we've launch marketplace for containers. It's a new way of packaging your software up in a microservices model, and Software AG has already refactored 10 of their product lines onto containers, so they're modernizing, our customers are modernizing, and we're working together. >> And so, Stefan, is it a case where you say to the customer, "Run it wherever you want it," or is it more aggressive, like, "Okay, we're moving "to the cloud, you're moving with us." How does it all work, what's the customer conversation like? >> Customer conversation is, you know, customers come and they already decided their pace of going into the cloud, their, you know, maturity level going into the cloud, and for the foreseeable future, there will be a hybrid world, there will be a hybrid world. Still some pieces on-premise, new things on the cloud, application integration within the cloud, application integration from the cloud to on-premise, device integration is coming up, the integration to edge use cases-- >> Yeah. >> Very much a big topic. So, it's a rebirth of our core technology that we are now seeing-- >> Yeah. >> And we are taking our customers with us, and they take us with them. >> You know, the thing that's interesting is that the whole software building market, development or builders, and right tool for the right job, needs to have a broad set of tools available, because if you go to an IoT edge application, for instance, right, that's a complete custom build, in a way, so you don't want to have it be a one-off, just have the tools available, then it's just how you build. >> Yeah, yeah. >> You build a unique solution for the unique use case for the unique workload, use the cloud as distribution, so you need a lot of services, so this is kind of the preferred model versus buying a general purpose application and stuffing it into a use case. (chuckling) >> Well, you've got to understand that when you go to the cloud you're going to redesign a lot of your applications. It's not a simple lift and shift. In some cases it's right new, and on some occasions the developers want to use the tools they love, so you know, you guys have got, what, 10,000 customers? >> Sure. >> Call it 10,000. Those 10,000 customers have all got skills and developers, so you've probably got a million developers that understand Software AG, and they're coming onto the cloud. They want to be familiar with what they're working with. >> Yep, yeah. >> So, what I want to give, and what AWS wants to give the developer, is a consumer experience that when the developer has a project they can find the software. >> Yeah. >> And so, what we want to do is we're publishing Software AG's products right in Marketplace, and you know, yesterday we announced that we now have 200,000 customers in AWS Marketplace. Two years ago I announced for the first time that we had 100,000, so we've doubled the number of customers using marketplace in two years, and the reason is that the developers are showing up and finding the software they want-- >> Yep. >> And the more software we add, the more developers come and use Marketplace. >> It's like going to Home Depot. I need a new tool. (chuckling) You know, I need a new service, hit the catalog. This is the preferred, and with containers and Kubernetes you're seeing that explosive integration happen. People are integrating faster now because of, say, containers and Kubernetes, and with more compute, it's only more goodness to accelerate the Kubernetes and containers, so that's got to be great glue for your business. >> Well, it is just the state of the art. I mean, this virtualization technology has evolved, and now it's there with Kubernetes and Docker and containers, so that's what customers even expect us doing, yeah, and then beyond that they expect us being present in marketplaces, yeah. Like, the AWS Marketplace is the place to be. >> Yeah, it's good for-- >> That's where people are looking for us, so we better be there. >> Containers are taking off for several reasons. You know, if you're a developer, one of the compelling things about containers is consistency of deployment. You can run Kubernetes on your laptop. You can run Kubernetes up on a server. You can run Kubernetes on the cloud. So, you can develop it on your laptop, provision up on the server, and then deploy on AWS, so that consistency is very compelling to the developer. What we're doing is by putting it in Marketplace we're making it really easy, because with ECS and EKS, whether it's the Docker container model, the Kubernetes Orchestrator, we allow the developer on AWS to be well-integrated into the AWS environment. >> So, add edge into that equation, and how does that consistency flow through? What's your edge strategy in terms of developing applications? >> Well, the edge strategy is clearly providing the... At the same time, the same way we provide the platform for our usual application development, there is a huge demand for edge development. >> Yeah. >> So, for example, we have a great customer out there in Germany. They're the world market leader for paint robots. >> Yeah. >> So, obviously if you want to maintain a paint robot, it's an edge thing, yeah, so we want to make sure that the data is close to the edge, is close to the device that it can monitor and do the recognition of failures. >> The thing I want to just add to that, that you mentioned about Kubernetes and the software deployment, is that when you got Lambda, you got these services that are so fast, you can do a lot with that, so as a service you can bring that together. So, the idea of throwing more compute at it, in hundreds of milliseconds you can wrap VMs around things, you can do cool things, so almost a change of buyer behavior is built into the development process. So, that's good for your business, it's good for your business, and companies are changing their business model. So, Cisco, for instance, did a deal with you guys. A couple weeks ago we covered it. They're using EKS for all the cloud stuff, so they have their stuff on their premise, so they go, "Hey, great!" >> Yeah, so containers as a next generation of deployment is one of your choices, right? You can go SAS, you can go serverless, you can go containers, and companies are going to have all three in the mix. All of the software companies that are going to be repackaging for containers, and the other thing that we've done with containers in Marketplace is we're actually metering by the second. A lot of containers run for a very short space of time. I don't know if you know this, but 50% of containers don't run for a week. You spin them up, you shut them down. You spin them up, you shut them down, and so the consumption of the software is moving much more into pay for how much you use. >> And you're granular. >> And we're granular, so we're going to meter by the second. The vendors are typically going to price monthly and annually, or hourly, depending on what the vendor choice is, and so we're going to make it easy for that to happen, and of course, the other thing we do is that by Software AG being in Marketplace it goes on the developer's bill, developer shows up with an account. The developer just gets the Software AG software and runs it, and what makes it really easy for Software AG is that developer has a contract with AWS, but they're now using Software AG's software. >> Well, congratulations, a great opportunity. By the way, I saw the announcement about having a marketplace for machine learning, too. A lot of things happening. >> Right. >> So, the machine learning marketplace, in a way, actually leverages the same capability as the container marketplace, because if you think of it, in machine learning we're packaging up the model, or the algorithm, in a Docker container. >> Yep. >> The difference, however, is that instead of rendering the container into ECS and EKS, we actually deploy the container right into the SageMaker console, so it's a different console, and the user over there is either a data scientist-- >> Yeah. >> Or a developer, but they're going to find that packaged in a container and provision it in SageMaker and then apply the model, and you're right, we announced today... Andy announced the marketplace with machine learning with over 200 different machine learning models. >> Yeah. >> So, we had 160 container packages and we had 200 machine learning models. So, now around the world developers suddenly have access to 300 new pieces of software that they didn't have yesterday. >> I love this market, web services. Going back to the old 2001 timeframe. It's now happening, service-oriented architectures are all happening, catalogs of services, it's what it is. It's being realized right now. >> It is. >> And it's impacting and the results are obvious. The business model evolution, opportunities, not a bad thing, marketplaces of the future. You're going to be all marketplace-driven. >> AWS Marketplace right now is probably the largest live, in production infrastructure library with third party software. >> Congratulations, Dave, nice to see the success. Great to hear about these success stories there, good job. >> And you know, ultimately we've got to remember that what we're delivering is a world class experience to the customer, but a marketplace only works if we have ISVs. >> Hm... >> Yeah. >> So, I want to thank Software AG, because now all of our customers have access to their software, thank you. >> Customers win. >> Thank you. >> Thanks very much. >> It's been a pleasure. >> It's a win-win, everyone wins with the cloud. That's the best part of co-creation and the cloud scale. I'm John Furrier with Dave Vellante. Stay with us, more coverage here, day two of AWS re:Invent after this short break. Stay with us. (techy music)