>>Hey, welcome back and roll here. Live in San Francisco for Amazon web services summit. that's the hashtag. Go on Twitter. Go to crowd chat.net/aws summit. Rolling a special crowd chat document in the conversation. According every tweet in that room, join that community. I'm John furry, the founder's Silicon angle. This is the cube, our flagship program. We go out to the events and extract the signal from the noise. I'm joined my cohost, Jeff Frick filling in for Dave Volante. Uh, Jeff, always hard to fill up with Dave a lot day. Um, who was on those per, it doesn't look good on you. I know you're from California and Ariel Ariel Kelman worldwide marketing lead head of worldwide. Margaret Amazon. Welcome back to the cube. Thanks for having me. You were here last less than that. Reinvent, um, kinda markets itself, the company. I mean, you just tried to features out there on stage and keep on pushing new. What we try and do is lean back and just like the customers' testimonials. Let me come on. >>Yeah, I mean we try and just focusing on educating our customers. About what our services are doing, how customers are using them, which is something they ask for a lot. And then, you know, go pretty light on the marketing. Most technical people don't like to be marketed to and they find our approach quite refreshing. >>And when you're in the lead, you don't need to really worry about too much layer. You've got some meat on the bone, you've got great use cases, you've got great technology and a market leader in cloud and you're forging it a new territory. So there is a new element in the enterprise now coming in where you guys are being attacked. Certainly in the market. Google had some moves this week, as you can see, know IBM is doing HP, Oracle, the list goes on and on. So okay, those guys are kind of putting up the seawall for the big innovation way that you guys have built. The question is will it last? And so there is people really moving quickly to Amazon. The customer uptake is pretty comprehensive. So I'd say it's mainstream. So now as you go to the enterprise, you've got to do some messaging, right? You gotta you gotta have the innovation message. So what is the core opportunity for you there? >>There's a couple of things in the enterprise I think, you know, first of all we're helping people save money. We have organizations like Dow Jones that predict they're going to save over a hundred million dollars essentially by shutting down data centers and moving more of their infrastructure to the cloud. But I think the real interesting part is how we make these companies more innovative that if we can lower the cost of using technology to roll out their new projects, then essentially we take the cost of experimentation and have it almost approach zero. So then now if you want to try something new, the costs of failure aren't so high that they prevent people from sticking their neck out of the line and trying new things. And so we see a lot of these companies are adopting us more heavily. Their culture is changing their employees or are excited about trying things because when they try something out, the cost of failure is a fraction of what it was before because they don't have to buy servers. >>Delta buys all this equipment, get data center space, they can try something quickly. If it works, great, they expand. If not, they don't have to live with all this expense that they tried it out. So it's increasing the pace of innovation and also allowing more people in the company to be able to try new things, involve technology because we're eliminating these gatekeepers where before if you get a project required a lot of money, a lot of infrastructure, think about the committees you have to go, all the justifications. But if anyone could go spin up these resources with self-service, totally changed the dynamics of who can innovate. >>Yeah. I mean the whole try before you buy the puppy dog close as they used to say in the sales tactics is, let me try it before you buy it. Yeah. Shadow it as the, legitimize the fact that for very little cost and collateral damage, as Andy talks about, you can get something up and running pretty quickly. So the old I, that'll never work. Comment. That's a killer phrase of innovation gets eliminated because, no, no, no, I already tried it. Here's the numbers. Is that, is that a big part of it too? >>I'm a little bit, I mean it's almost like we need a new term there. There's, you know, people talk about shadow it and what we typically see is that once you give the CIO the keys to the cloud infrastructure and you set up a governance approach where you can decide what people can do, how much money they can spend, what things they can try. Um, then you get the best of both worlds. You still have a vetted platform from a security perspective. You have governance controls and sure people doing the right thing, but then it doesn't have to say, no, sorry, you've got to wait in line. You got to wait till next year. Um, so that is the new model that we're seeing where you're seeing developers distributed across the organization and smaller official it departments, but more people doing it stuff in the company because everyone can have access to infrastructure when they go big on cloud, especially with AWS. >>And are they getting it? Are the corporate it guys getting it that this is a good thing for them and they can leverage this to actually add more value in the company and enable more at the end of the day. More ideas. Yeah, absolutely. The companies that we talked to, look, they've got a lot of questions. If you're a big organization, you want to know if we can meet your security requirements, your compliance requirements. Can you run a sends Alaska? Well look, we want to do two things. We want to run the software the last 20 years in the cloud. Can you help us with that? And then we want to build these new cloud native applications so we can be as agile and efficient as some of these new internet startups that now we're competing with. And so we spent a lot of time with them to talk through what it should do first, how I should think about it, what apps make sense to run on us and, and you know, more importantly with the sequences, which lady first us should ask us. Like we want to go, we've, we've played around, we've tested, we've had lots of developers using this for years, but now we want to go big. I having a material percentage of our infrastructure in the cloud so we can fundamentally change how it adds value to the business. And like those are the conversations we love having the customers. >>I want to ask you about just to show by, just to get, check this out. Check the box on the interview here because I want to make sure people can understand Amazon. Reinvent your mega show. That's your global conference. And why don't you explain, explain, reinvent versus the, >>sure. So the AWS summits, um, it's our three one day event, uh, that we do maybe like 14, 15 around the world. It's two purposes. One for people that are new to AWS, they can come in one day, get an overview of what it's about, how to use it and get inspired on what they can do with it. And then for our existing customers who are having users, they get an update on what's new, which may sound kind of tactical, but we released them, you gotta do stuff right. And so that's of my biggest challenge is how do we make sure that people know what all the new stuff is. They come here for one day, go to our keynote, go to a bunch of breakout sessions, do some training, and they get ramped up on everything we've done in the past year. Speaking of it, so we had you on last year and we were here. >>So what's been the big change from 2013 to 2014? I mean, we've had a lot of new services that we've released. We're going to new areas and think about Amazon workspaces. It's more of an it business application, right? Um, what you saw our demo today wasn't people coding. It was someone actually as an end user using, um, a virtual desktop on their iPad, on their computer. And so different types of applications, but we're, we're still going after that same goal, which is to allow these enterprise it organizations to take advantage of the cloud with more workloads. Essentially the larger percentage of their projects that they're doing that we can help them with, the happier they are with the relationship and the test, the test dev conversation seems to have simmer down quite a bit where it seemed like last year that was, and that was everybody's kind of testing waters. >>That's where you had initial traction, the initial shadowing it and that, that seems to really have dying down. And I mean, I think it's kind of gone mainstream or whatever is past mainstream where, you know, if you're a big SAP shop and your developers don't have their own SAP development environments, you're kinda, you're behind the curve. Same for Oracle, for SharePoint, if that's the new standard. Um, and so people don't talk about as much because they're already doing it. Right. It's, it's a, you know, the idea of well, you know, what are the big bets, um, you know, what should we use it for next? Should I do big data analytics using, um, like our Redshift product or should they build new high-scale web applications? Should this be my mobile infrastructure? That's where more of the conversation is coming on. Now >>Eric, I want to ask you about marketing and kind of one-on-one, you know, take me through the business school level marketing relative to your vision of Amazon and how the company's operating. I see Andy sets the tone up on stage, very customer centric. We hear all the people on Amazon talk about, Hey, we listened to the customer. They said they're tight on the messaging, they're really tight on the messaging. But you know, you starting to see, you know, tweets on the wild emerge. Like the new strategy for Amazon is price reduction as a service. And you know, it's like, so you seeing these messages come out. So is that, is that your plan to message just the price reduction to show the continuous improvement in terms of cost reductions and improvements in innovation and capability and just kind of be humble. >>So what, what our market organization is trying to do is to educate our customers in the easiest, most scalable way about what our services do, what are the best practices, how could they can use them and how they can save money near site. Andy talked about it a little bit earlier. We want our customers to feel like they're spending the least amount of money they need with us cause we want a longterm relationship and a price reductions. I mean it's probably one of the top three or four most boring parts of marketing AWS because every service team is trying to relentlessly take costs out of uh, their services. And when they get to a certain point, we pass those cost savings along to customers. It's kind of like clockwork two of them. Is that an internal metric for you guys? You guys all under pressure or mandated? >>That's just the DNA of the company. Let's get the cost out. Let's strap, distract away, cost and complexity. There's some bragging rights, little competition between the teams. How many price reductions have you done? I mean, it's a sign that they're being efficient and that they're making customers happy. It's a great metric. Price reduction and also feature increase. So again, now with flash, you start to see some new stuff hit the table. Yeah, that's part of the plan, right? Price reductions and more functioning. I mean the most, one of the most important parts of our overall strategy is to constantly innovate both on building new services, let people run more things in the cloud, but then also adding new functionality based on feedback we get from our customers. We'd like to release services relatively early versus sitting in an ivory tower trying to figure out what the perfect feature set is. >>We'll get this out early. Uh, get feedback from customers because you know, we're often surprised what people do with these services and uh, you know, they take on a life of their own. But ultimately that's how we get the best. You guys are like, you guys are like the big gorilla in the industry, but I was talking to someone last night at a VIP event, San Francisco, all these CEO of venture capitalists, Oh, Amazon, they loaded with money. You know, I'm like guys, they're like a lean startup. So that's pretty much the case. We've validated in talking to some folks, you guys are like a startup. I mean you're huge, you got great resources, but it's not like you're like Swoon and money thrown it around. You guys are very tight on budgets. You don't like just throwing around money. If you want to know about Amazon's culture, just type into Google, Amazon leadership principles. >>And there's about a, is it about a dozen or so core values? One of them is frugality. It's kind of, you know, part of how we operate the company and believe in what it means is that we only spend money on things that are useful to our customers. And that's a real good grounding. And then you see, we don't have 80 foot tall posters of our products or our executives here. You know, we spend the time on computers for people to do training and when we're planning events, we want to have everything focused on stuff that's useful to customers. We build the service too. We try and be relentless and driving cost out of our suppliers so we can pass on those costs and these customers. And it's just, you know, when you, um, when you operate a frugal fashion where you really think about costs, you end up being scrappy or, and you end up innovating more, it sends a good signal to your customer base because it's like a probably a laundry list of things that you guys have laid out then you still need to do and do innovate. >>Yes, exactly. If you wasting money on, you know, weirdness people that say, Hey, we didn't, why aren't they spending that energy on building new stuff? Exactly. Like we didn't 10 Howard street and close off the road to have a rock concert held companies. I mean, we have our crowd chat. Have you've seen that? We built that all on Amazon would not be possible without it. We hear testimony and testimonial customers saying, Hey, Amazon would have been 15 people minimum just to actually manage the gear on an offside without avatars. So yeah, it's just pretty massive. So, so with that, I got to ask you, the marketing question is how do you roll up all that Goodwill, Tony, when this great, great case study data you have? I mean referenceability it's not about, I mean, the number one marketing strategy we have is let our customers do the marketing for us. >>So I mean, part of why we do these events is to let our customers and people who are not customers yet interact with each other. And even when we have a reception and one of the best marketing strategies, if you have a product that people like is you combined your customers, your prospects and alcohol, and then they, you let them talk, right? You haven't asked questions. And that's how you get the relevant. Like, okay, you don't wanna believe our salespeople talk to our customers and really get a sense of what's going on. All right, there's too much smoke and mirrors. But these old guard hardware and software companies for much more open, much more transparent, um, because we believe in our, in our products and they're available for anyone. Anytime. It's almost like it's not even worth making up things that aren't true because anyone in the world can evaluate any of our services anytime they want. >>It's almost boringly boringly good. And you hear Andy talking about, well we did this for that. We did definitely, it was like a laundry list. I was listening to the keynote. I'm like, okay, he's going to stop now. Yeah, no, I'm just like, it's more and more just dropping, dropping more and more feature releases. Um, so obviously you guys are shipping more product. You reducing the prices for shipping. I mean, pushing on services. Yeah. You push code in the cloud, we can create a box for you. You can ship that ship means, you know, Sam sends send to the cloud. But that's the dev ops culture that DevOps culture is to be scrappy but think differently. So you guys are thinking differently. Like I gotta ask you, how do you thinking differently because it's clear and ecosystems developing around me and that's something that you do have to nurture. >>You have to invest in this community and you're helping them as business partners now, not just customers. Your customer base now spans the partners. Yeah. Have you balanced it? Still? Same philosophy. What tweaks if you've made your job and an organization based upon the tsunami of an ecosystem growth. I mean our customer ecosystem is really important to our strategy and to our customers. The way we think about it as a um, cloud's new and people are gonna need help. So from consulting firms, systems integrators, managed service providers, which is a really fast growing space. We want to make sure that when our customers want to bet big on AWS, there are those trusted people with certified engineers who can help them either in the short term or longterm basis. And then on the technology partner ISV side, we spent a lot of time making sure that we work collaboratively with these companies to pre sort of certify these applications to run on AWS. >>And then we create pre configured versions of them that run in our marketplace where our customers can browse through a catalog of software pre-configured or run in AWS. They can install with one click of the button and then it just shows up on their AWS bill. So we're trying to make it a lot easier for people to use a lot of these partners technology. And you know what, we're not going to come out with everything. You know, we'd like the creativity of our partners. The customers like to know if they, if they bet on AWS and they say, huh, you know, I wonder if you know, there's some good no SQL databases that run on AWS. Oh there's Mongo, there's Cassandra and whatever space you pick, there may be something we offer and there may be four or five other solutions from our partners. We love that choice because that's what customers ask us. Well, >>congratulations on all your success now. And my final question for you is really probably the hardest question and you can answer it or not answer it. Um, obviously the competitive landscape has significantly increased the heat in the kitchen around you guys for a while you were uncontested. Yes. Some people kind of pick an ankle biting around Amazon's, you know, leadership. But now you've got some pretty big players. IBM, HP, Oracle, Google, EMC, pivotal, VMware gunning, Rackspace, trickles, OpenStack, all of those kind of going around and no, you don't focus on competition and you focus on the customer. We've heard that before, but like you gotta think about that. That's going to put some pressure. How is that affecting you guys? I see you're mindful of it. Are you guys doing anything different to address it? >>I've never seen a market before where it wasn't healthy for both the leader and for the customers to have competition. And we've always expected this to be a market that would have multiple vendors. We look at our, every other technology, a space that was new and became large. There's multiple vendors and it, you know, it enhances innovation, keeps people honest. It's a good thing. >>So the final question then is what will you tell the folks out there who are watching? Is Amazon enterprise ready, um, what's going on right now? This event, you get the big announcements, give them a recap of what you guys did today and comment on the, on the Amazon is enterprise ready or the enterprise may be ready, not ready for the Amazon. So how do you respond to all that FID out? >>Yeah, I mean that was a question people asked a lot about us in the enterprise three, four years ago. I think we've invested a pretty big deal of our R and D over the past four or five years on just maniacally going through all these enterprise features. I mean, if you look at Gartner's magic quadrant for infrastructure and service, which is 100% designed for enterprise decision makers, we're, we're the faraway leader. Uh, and um, you know, we Mark off their checklist pretty well. And I think that's one of the reasons why we're really becoming the safe choice for it managers and large organizations, large enterprises, large government agencies. Um, I mean, my biggest point of advice is to take a look at our website and we're constantly coming out with new services. And if you haven't looked at this recently, I bet you're going to go there and find some things that you didn't know. Randomness and you'll get some ideas about new projects, new workloads that you can run in the cloud. >>Okay. Final word on re-invent to now. Three major things were announced Canisius app stream and workspaces. Are you happy with what's happened since then and now? It gives a quick guys a feeling of >>yeah, I mean the, the uh, we did a private beta for all three of them. We had a lot of participation. Uh, we showed in the keynote some of the real creative applications people are building with app stream where they're streaming very graphically intensive applications out to a variety of devices. Really making it easier for developers, workspaces, the interest. I've never seen a product like this before. Um, where the customer is in the private beta are just so excited about giving us some features, talk about how we can make it better. Um, tons of, tons of energy, tons of excitement. And Canisius is one of these things where, you know, we didn't know what to expect. I mean it's, it's a, a, a realtime analytics service to ingest massive amounts of data and you can build all kinds of apps on top of it. And I think, uh, one of the things we talked about today, uh, was a gaming company. Supersolid makes classic plans to take all the click stream and usage data of their application to figure all these intelligent endgame offers and how to make their games more efficient and more fun. And uh, that's the best part is when we can come out with technology that is pretty broad and can be used for a lot of things. And then we let customers be creative and we can see what they do. >>Then they do Italia. Luckily they generally anymore, right there you'll come and you actually have the hardest and easiest job in the world kind of at the same time. One is you just have great customers. You have the sizzle and the steak, as we say, meat on the bone. Um, great product mix. You guys introducing that stuff here, prices dropping and functionality increasing and innovation having the same time. It's actually quite an amazing thing. So we're really impressed. Again, we're happy customer with Bouchut that's coming on the cube. Again, appreciate it for having me. This is the cube. This is what we do. We go out to the events, we go where the action is, and the action is at Amazon web services summit in San Francisco. This is the cube. We'll be right back with our next guest after this short break.