>>from around the globe. It's the Cube with digital coverage of VM World 2020 brought to you by VM Ware and its ecosystem partners. Hello and welcome to the Cubes coverage of VMRO 2020 Virtual this The Cube Virtual I'm John for your host, covering all the action for VM World not in person. This year it's virtual, so we're bringing you the virtual interviews remotely. We've got two great guest here. Marc Lemire, senior vice president general manager of the Cloud Services business unit at VM Ware and David Brown is the vice president for two at AWS Amazon Web services. Both Cube alumni's great to see you guys remotely Thanks. Coming on eso i first vm worlds not face to face. Usually it's great event reinvents Also gonna be virtual again. It's, you know, we're gonna get the content out there, but people still gotta know the news is gonna know what's going on. Um, I remember three years ago, I interviewed Pat Kelsey and Andy Jassy in San Francisco on the big announcement of AWS and VM Ware Uh, vm ware on a W s. Really? Since then, what a great partnership Not only has VM where have cleaned up their clarity around cloud. But the business performance mark has been phenomenal. Congratulations. All the data that we're reporting shows customers are leaning into it heavily Great adoption and super happy success. A US congratulations as well for great partnership. Mark three years, Uh, with the industry defining partnership. Ah, lot of people were skeptical. We're on the right side of history, I gotta say, we called >>it. That's right. It's an update. Yeah, No, look, we're super excited. Like you said, It's the third year anniversary of this game changing partnership and look, the relationship could not be stronger right across engineering the product teams to go to market teams really getting stronger and deeper every day. And at the end of the day, you know, of course, what it's about is innovating on behalf of our customers, delivering compelling new capabilities that allow them thio, migrate and modernize. And, you know, look, we're just really pleased with the partnership, right? And I think, as a result of that depth of joint engineering, building and delivering the service together, you know, we're proud to be able to say that it addresses are preferred public cloud partner for the Starbase workloads. >>You know, I remember at the time David talking to Terry Wise Ah, native West Side and Andy, of course on Ragu the architect for this vision of the partnership. And this changed how vm Ware has been doing partnerships on. I want to talk about that because I think that's a great use case of what I call the new cloud native reality that everyone's living in. But before we get there, Mark, there's some news tied around AWS and VM. Where could you take a minute to, uh, share the news around what's going on with VM World 10 0 You got connect. You got all kinds of enhancements. Just the update on the news. >>Yeah, sure. So you know, we continue Thio, listen closely to our customers and continue to deliver them new value, new capabilities and a few things we're gonna highlight at being world. The first is we've heard from many customers, you know, they love the ability to rapidly migrate their visa service workloads to the AWS Cloud and VMC on AWS is really a game changer. From that perspective on dso that continues to be really, really compelling use case for many customers. But what they've also said to us is, Look, it's not just about migrating to the cloud. It's also about migrating and then modernizing. And so, together with AWS, we have really brought together the richest set of tools for our customers to enable them to modernize those applications. Of course, we've talked about before. Customers have access to the full rich set of AWS services on Ben within VM or called on AWS. We're now announcing support for native kubernetes capabilities within VM Ware Cloud in eight of us taking advantage of the VM Ware Tansy Communities, good service. So we're really excited about bringing that that service in particular to our joint customers and then three other kind of key innovation that we're going to be talking about is around networking, right? And as our customer environments get larger and larger and they're looking to create a fairly sophisticated apologies between their on Prem Data Center between multiple VMC and AWS instances and between perhaps multiple native aws vpc s, we've done a lot of work together to really simplify the way that customers can connect all those environments together. Onda, maybe Dave wants toe talk a little about that. >>It did chime in. What's What's the news on your end to? What's the relationship and an update from the Amazon side for VM World? >>Yeah, absolutely. I mean, the partnership has just been incredible working with being where Right, Right? Right from four years ago, when we first started with the idea of what could be a W s and beyond where do together. I think we've seen really deep engineering engagement, but also leadership engagement on support from leadership on both sides was really set. Set us up for the partnership that we have today, which has been phenomenal. You know, Mark was just talking about the transit connect feature that beyond whereas adopting and what you really seen, there is years of innovation on the networking side of the sea to where we've really understood deeply what customers need from a network. Understood the fact that they're trying to recreate some of those large networked apologies that they're doing on premise on, then trying to support them in a cloud way of supporting them in a cloud about, like, way. And so, you know, transit gateways to service under the hood that we released about two years ago. It reinvent. And so what we've been doing with being where he's working out. What is Transit Gateway mean within the VM Ware environment? And so really bringing customers that that rich connectivity that they need? You know, whether it's between the BBC's between the VM Ware environments, even back to on Prem or between regions on DSO. That's what transit connect now on being where it's gonna be utilizing and bringing to customers we're pretty excited about. You know what that means for our customers? >>You know, one of the trends I see coming out all the announcements. David, I want to get your thoughts on it because we talked briefly a few months ago, uh, for your summit virtual. But I want you to kind of put it in context of VM Ware because you're seeing virtualization of physical things. You know, Nick's with Project Monterey and all that stuff with within video and software. You see to you guys have seen this vision not just compute, but you talk about networking. You know, you have the really the first time this convergence of physical own software virtual and This is not new to you guys. I know this is the premise of Amazon Cloud. First, you have the building blocks as three NBC too. But now a slew of other services. But this trend is gonna continue. Certainly with covert and work at home, there's mawr need firm or compute more different kinds of compute. You got the physical layer from the network of the devices. This isn't gonna go away. I mean, I would just need some interviews about Space Force, and they're talking about software to find, um, devices you can't do break fix in the space. So you know all this is gonna be done with software and this idea of the physical virtual coming together I mean, I know I love the Virtual Cube were not in person, which we were. But this virtualization trend around the hardware this is this'll is all about the sea, but the sea spinning for years. How does that relate >>to be inward customer? So, I mean, I think the VM ware customers experience which realization right long before ec2 was around as well. When being we're back in the day with being workstation, uh, it's it's kind of central to what they've been able to do, you know, being able to virtualized environments, being able to stand up environments ready very quickly on a physical machine is what the English board for the customer, Easy to started in a similar place. You know, the strength of the C two is being able to get a B m in a few minutes. Andi, you know, we've just grown the what we can support in a virtualized world. So you think about where we started with very simple machines, you know, today is supporting things like HPC and and advanced. You know, accelerators like GP use. And if p g A s and so we've already pushed the virtual world now, interestingly enough, you know, Vienna is obviously doing the same thing with their hyper visor. You know, many, many happy customers there. The really interesting thing it was through the innovation that we were doing on the easy to side to work out. How do we really get the most out of virtualization? Historically, virtualization is being played with things like jitter and just performance. You couldn't really get the network performance there with CPU would stall and those are sort of the old issues. The cloud in the innovation we've been doing is largely gotten rid of those. And so it's actually almost the the the ability to remove the virtualization from easy to. That really was the ingredient that enabled us to allow VM Ware to run on this. And so that's where it all started. Back in late 2016 we started to work with my team saying, You know, we've actually built the ability through our nitro system, um, to not require our virtualization layer. And then we could replace that virtualization with the VM Ware virtualization layer and that that set us up for what we have today, right? That that made VM ware on AWS a reality that gave the VM Ware customer you know, the full VM ware virtualization support, which is what the applications have been. Both Paul, that's what they've really come. Thio love. I don't want to change all of that when they moved to the cloud and so being able to move those workloads to the cloud for being where you know on on AWS and and get the benefit of great hardware design together with the great opera visor from being where obviously, it's a virtual the end of the day with a lot of innovation that we need to make him that >>mark. I wanna get your thoughts on this because I remember when we again years ago when we covered it again on the right side of history of the prediction, we said It's gonna be a great thing, afraid of us. And the end where some of the other commentary was at that time was Oh, my God. VM was lost at the capitulated Amazon is gonna suck all the thousands and thousands of VM where customers into the cloud and they're gonna eat him up in Vienna. Where is gonna be sitting there? Uh, you know, inside of the road. Okay. Not the case. Your business performance has been exceptional. Okay? The customers have been resonating with the offering. It's been a win win. Can you talk about the business momentum and how this continues to go? Because again, everyone got it wrong on that side. This has been exactly how you guys had heated up. I mean, a little bit here, and they're not exactly, But from a business perspective, it hit the mark. What's your thoughts? >>Yeah. No. Look, we've been incredibly pleased that the customer adoption that we've seen for the service, um, in fact, you know, the total workload count on the service has increased by over 140% versus this time last year, right? So clearly, customers are adopting the service at a large scale on growing rapidly. But I think you sort of feel that killed that back a little bit, right? It's It's really driven by three use cases and the value that we're able to deliver the customers right? And so if you're a customer, that's gotta be severe based workload in your own data center, and you want to move to the AWS Cloud. You know the fastest, lowest cost lowest Chris Way to move that workload is using VM Ware Cloud on AWS, right? And so it's that use case. It's powering a lot of that consumption. Another interesting use case that Xdrive in a lot of demand and that we continue to invest and expand is disaster recovery, right? So there's some customers that still want to run some more clothes in their own data centers, but they'd like to build leverage the public cloud as a target for disaster recovery. And you think about it you're talking about, you know, Cloud delivered as a service and the elasticity and all of those benefits. Those really playoff strongly in the d r use case where you Onley really want to spend up that capacity in the scenario where you actually need it, right in the case of a natural disaster. And so VM were recently acquired a company called Atrium and we're using that technology to enable a new service we call VM Ware. Cloud D are on top of the VMC on AWS offering, and this is a really powerful capability because it allows our customers to significantly reduce the cost of disaster recovery by taking advantage of AWS is low cost s three storage, combined with some unique capabilities in the day trip service that allows us to store the V M. D. K. Is very cost effectively on the next three storage. And then, in the case of a disaster, we can spin up those hosts. You know, they've talked about the nitro host. I've been spin up those bare metal host with the being more hyper visor on it and automatically restart those workloads without requiring any. VM conversion is because, of course, it's all all these fear based, right? So you know, it's so we're really pleased with the business performance, but you know, sort of behind that, of course, is the value that we can deliver to our joint customers together. >>You know, the integration thing is interesting again. I think the success is that there's a partnership at the highest levels and trickles down into engineering. David, talk about what's next for AWS because, you know, after cloud, you've got cloud native integrations. They're gonna be needed across more partners and more customers. Um, but they don't wanna do the heavy lifting, right? So So if I'm a customer like, hey, you know what? I just want Mawr Cloud scale. I want more cloud capabilities, but I don't want to do all this integration. How does how does Amazon view that conversation? Because again, that's one of the things that every interview, every reinvent every time I talk to Andy and the team. It's undifferentiated, heavy lifting what our customers asking for free from from you guys. VM, where customers and What's the What's your thoughts on this? What do you guys thinking about right now? >>Absolutely. I think market head on a couple of key points there as well or at the customer in this case, off. I have a workload today that I run in my data center or running a cola facility, whatever it might be. And I run it for many years, Um, in many cases working with customers in industries like healthcare and finance. You know, where they've actually had these thes applications qualified or certified? I'm to actually one on that hardware. And so, you know, requiring them to move to a different hyper visor is obviously a ready they'd lift and may slow down the ultimate migration to the cloud. Um And so having vm ware cloud on AWS and the ability to say to those customers, you know, just bring your application and you'll workload and and honestly the benefit of the entire ecosystem that VM Ware provides and come and enjoy that on AWS and burst into aws eso that's just been enormously beneficial for our in customer, For AWS is probably aware. I think that's the thing that really makes the partnership incredibly strong. And from there, you know, these customers can pivot. And so one of the things that we've been doing together with Vienna, where is ongoing innovation? Right. So we recently just launched, um, support for our I three n uh storage instance type, which offers up to 50% discount storage per gig with VM ware. And there's a lot that went into that behind the scenes to make sure that that instance type is perfectly tuned for what VM were needed for their end customer. We're very excited to get that out. There are many, many customers so excited about the benefit that that brings to them, right? So they're getting all the benefit of AWS innovation while they keep the benefits that they've been enjoying on the VM Ware side. Um, and you know, that speaks to the largest sort of approach that AWS has taken in in several industries across several industries. Right being where, I think is probably the best example of that. But if you look at many other areas like our networking products, customers will often come to us and say, you know, I love using a certain type of load balance. So I love using this firewall. Um, you know, within my environment. And we have great partnerships of all those companies to say if your customer, while joint customer, wants to use whatever appliance, whatever application, you know, we have a full market place full of thousands of applications that are all certified to run on us. We want to make sure we can meet those customers where they are and simplify the immigration story for them as much as we can. >>All right, So I gotta put you guys on the spot. Mark will start with you, but you can't get the same answer. Um, to the same question. The question is, what are the customers most happy with with the partnership from a feature perspective? What's the one? What? What would you say, Mark, um is the big Ah ha. This really is amazing. I'm so happy because of this feature capability. >>Yeah, yeah, I mean, a little bit back to the discussion we're having before, but I think you know the killer use case Really for the service today is that cloud migration use case I was talking about before. And if you think about what it might have taken them previously. Right? Uh, you know, expensive time consuming. Um, you know, it requires changes to their environment. In some cases, with with VM or cloud on AWS, we could take the cloud migration that would previously been taken them perhaps years, millions or tens of millions of dollars. And we can shrink that down toe literally months, right. We have some customers like m i t. That migrated hundreds of applications literally over a weekend. Right. And we're able to do that because it's the same core enterprise Class V, and where capabilities of the customers already optimized their application to run on in their own data centers that now we've enabled on AWS as a cloud service so that that cloud migration use case kind of combined with the fact that we're, um that were delivered to them as a service in the AWS cloud. I think is, uh, you know, one of the one of the use cases that a lot of customers find extremely attractive. >>Alright, David, your turn from an M. A w s perspective. What are people happy with you for on this partnership? What praises? Are you getting some your way When someone says, Hey, man, this partners has been great. Amazon really is awesome for this. What would you say to that? >>Eso, you know, watch book about the migration I was going to choose sort of, You know, once they're in aws, um, the benefits of the power brakes writes the ability to scale on the mind. E think one of the great things about the record in AWS that VM Ware did is already built it as a cloud native service. And so, you know, the customers are able to provision additional capacity very easily. We have that capacity available on AWS, and so they're able to meet any sort of unexpected demand of scale. Um, and then together with the breadth of services that we have on a diverse is Well, you know, you and we've we thought very carefully about how being were customer would want to consume those and to make sure that the whole system set up to allow that to happen. And so allowing them to to broaden what they're using over time, is there. Engineers and teams find other services that allow them to innovate faster and, you know, bold more interesting applications so that it integrates incredibly well between AWS and VMware and customers benefit from that. >>I wanna ask you guys, um, or in the industry side, um, to comment on cloud native, um, mainly because one we cover it into it's kind of important trend. Um, recently, snowflake went public with the largest i p on the history of the of Wall Street, and it's an enterprise company. Okay, Um, and I was using that as an example because actually being where was the second most popular, uh, Hypo happens to be another enterprise company if and I was commenting on this, and I want to get your reaction to it And that is, is that if you look at the mega trend that's going on now, of all the things people talk about, it's the cloud native That's the most interesting, because this is all the value. If you look at the modern applications all the way down to the networking, everything in between. It's all about cloud native, And it's not just about cloud public cloud. It's not about It's an operating model when we talk about that. But Cloud native is the big wave that people are on. And if you're on it, your modern. This is not just hand waving. It's legit. I mean, you're seeing benefits of it. You're seeing speed, time to value all the things that people talk about, it, the events. Could you guys comment on why Cloud native is so important today and why customers and developers should be really thinking through what that is for them. Um, David will start with you. >>Absolutely. So for us part native really means, you know, have you built your application in a way that takes advantage of the benefits of the cloud? And so are you able to scare the application horizontally? Are you able, Thio? You know, building away That's redundant Across multiple data centers. Are you able to utilize services that are provided by, you know, aws, the cloud provider Thio to not have your teams build that And so what it ultimately means is you're able to spend more time focused on on building stuff that really matters. You know, if your application So you mentioned Snowflake, you know there are a great AWS customer work very closely with them and and they're able Thio, have us around a lot of the infrastructure, all the infrastructure for them in the power. And they can really focus on building an absolutely incredible data, whereas in solution for their end customer and we innovate very closely with them. And so that's really what it means, you know. And I think organizations that have gotten themselves there ready get a lot of benefit. They're able to innovate faster. They're able Thio deliver more to the end customer. You know, we spent a lot of time with companies that you wouldn't say a cloud native today and as a cloud provider, azi exciting as it is to support the cloud native customer, it's also incredibly important that we find a way to support the company. That's on a journey towards adopting the cloud, right? They've got a long history. Maybe they've been around for many, many, many years. Andi, I've got a large application stack that they need to move. And so that's where our migration programs really support customers. You need to bring non card native applications and then we're able to work with them over time to make them, you know, more cloud native and get a lot of those benefits. And so it's a journey that I think many of companies on. Some started there, and some have a way to get their differently. Has a lot of benefit. >>Isn't Snowflake really in Just a example of value creation? I mean, it's not about that. They're on Amazon. You're happy about that. But it shows that you don't have to go a certain way. If you create value, speed, scale speaks for itself. So that's just that could be an enterprise. That could be startup. That could be the Cube. It could be anybody, right? I mean, don't you see it that way? >>Absolutely. Absolutely. I mean, they had a great use case that a customer need. It's in a really interesting area, obviously dealing with big data. And so I think you know, there's there's really no limit there, >>Mark. You guys are in the modern app. That's what you're hearing. It's one of the things that people gonna wanna come out of co vid. They're gonna wanna have a growth strategy. Cloud native. Why is it important? And what's your take on this? What's your reaction to the cloud native being the big wave? >>Yeah, I mean, I think. I think Dave said it. You know very well. I mean, when I talked to customers, you know, regardless of where they are in that journey, they all have some form of digital transformation agenda. Right? And at the end of the day, they wanna deliver better services to their end customers because they know that's what different is going to differentiate them. Or they want a better empower their employees, right? And as part of trying to deliver that value to their customers, their employees, you know, they want to focus their time and energy on the things that really differentiate them. Right? And, you know, for many of them that that means, you know, they don't wanna have to worry about, you know, upgrading some infrastructure software, right? That's not that's not delivering value to their to their customers. And so, you know, I think as they go down that journey, you know, we're really pleased to be ableto partner. What they did you ask to be able to create these, uh, you know, these powerful platforms together between VM ware and AWS that really deliver a lot of value to customers and allow them to focus on what's important their business, right? And, you know, by bringing together those enterprise class VM, or capabilities that hundreds of thousands of customers trust for their most mission critical workloads. Combining that with eyes, they have talked about the possibility of agility, the scalability of the dust cloud and then sort of, you know, not just those existing workloads, but also enabling a rich set of new services those customers can take advantage of to modernize. You know, whether it's VM Ware services like I talked about before with our native kubernetes capability built into BMC or whether it's the you know, hundreds and growing portfolio abated bus services, you know, giving them all, giving them the power of that full toolkit as a service so they can focus on building value on top. I mean, that's e think, really they want an equation. But that's why so many customers are moving down that path together with us. >>Well, congratulations. I want to say to you because David Lynch has been digging into the buyer behavior data, looking at the what the budget projections gonna be and VM ware on AWS has been strongly performing, and it's doing really well. Congratulations. And David. Great to have you back on. And you got reinvent less than 60 days away. Can you give us a little taste, teaser and taste of what you got going on? I know you can't reveal, but what kind of generally we're gonna be seeing at reinvent, uh, with E c two and your team >>absolutely reinvents a little different this year. It's It's obviously virtual on, so we're pretty excited about that. We think it will bring a new flavor. And so there's a lot of planning going on both in terms of product delivery. It was a It was a great time of year for us as we finish up a lot about big releases aimed at reinvent, then obviously working on content and presentations. And so, you know, a lot of interesting stuff for customers to think about is that >>they're not revealing anything. You just you know. Okay, you're gonna have some announcements. I'm sure you see two. That's a big announcements. Exactly. Hiding the ball, as they say. David Brown, vice president of Easy to it. Amazon Web services. AWS, Markle, Omar s v P. And GM. A cloud Service business unit at VM Ware. Um, great partnership. Congratulations. We'll be following it. Thanks for coming. I appreciate it. Thank >>you very much. >>Okay, I'm John. For with the Cube. We're here in Palo Alto. Remote for the Cube. Virtual for VM World 2020. Virtual couldn't be face to face. We're doing our best with our cube virtual to get you the content. Thanks for watching.

>> live from Boston, Massachusetts. It's the Cube covering AWS reinforce 2019. Brought to you by Amazon Web service is and its ecosystem partners. >> Okay, welcome back. It was two cubes. Live coverage in Boston, Massachusetts, for Amazon Web services reinforces A W s, his first inaugural conference around security, cloud security and all the benefits of security vendors of bringing. We're here with a man who runs the marketplace and more. Dave McCann Cube, alumni vice president of migration, marketplace and control surfaces. That's a new tail you were that you have here since the last time we talked. Lots changed. Give us the update. Welcome to the Cube. >> Great to be back, ma'am. Believe it's seven months of every event. >> Feels like this. Seven years. You know, you've got a lot new things happening. >> We do >> explain. You have new responsibility. You got the marketplace, which we talked about a great product solutions. What else do you have? >> So we've obviously been expanding our service portfolio, right? So either us is launching. New service is all the time. We have a set of service is a road in the migration of software. So I run. No, the immigration Service's team and interesting. We were sitting in Boston, and that's actually headquartered 800 yards down the road. So there's a set of surfaces around the tools to help you as a CEO. Move your applications onto the clothes. Marketplace is obviously where we want you to find short where you need to buy. And then once you get into the topic of governance, we had one product called Service Catalog and reinvent. We announced a new product. That was a preview called Control. Yesterday we went to G A full availability off control, Terror and Control term service catalog together are in the government space, but we're calling them control service is because it's around controlling the access off teams to particular resources. So that's control service. >> What people moving into the cloud and give us a sense of the the workload. I know you see everything but any patterns that you can see a >> lot of patterns and merging and migration, and they are very industry specific. But there are some common patterns, so you know we're doing migrations and frozen companies were weighed and professional service is run by. Todd Weatherby is engaged in hundreds of those migrations. But we also have no over 70 partners that we've certified of migration partners. Migration partners are doing three times as many migrations as our old professional service is. Team are doing so in collection. There's a lot going on there, one of the common patterns. First of all, everybody is moved a Web development other websites have done. They're all running on the AWS know what they're doing is they're modernizing new applications. So the building in Europe or bring enough over moving onto containers. So it was a lie that ran on a sever server on. As they move into the clothes, they're gonna reshape the throw away. Some of the court brief the court up into micro service is on. Deploy out, Let's see on E. C s, which is continuing. There's a lot of application organization, and then on the migration side, we're seeing applications clearly were migrating a lost a lot of ASAP. So the big partners like Deloitte and Accenture are doing a C P migrations, and we've done a lot of ASAP migrations. And then there are other business applications are being moved with particular software vendors. You know there's a company here in Boston called Pegasystems. They do a world leading workflow platform. We've worked with Pagan, and we have migrated loss of paga warped floors in dozens of paying customers up on the float. >> You innovated on the marketplace, which is where people buy so they can contract with software. So now you got moving to the cloud, buying on the cloud, consuming the cloud and then governing it and managing that aspect all under one cohesive unit. That's you. Is that good? >> Yeah, it's a good way to think about it. It's a san of engineering teams with Coleman purpose for the customer. So you know, one of the things we do AWS is we innovate a lot, and then we organize the engineering teams around a common customer needs. So we said, above all of the computer stories service is on. We pay attention to the application layer. We described the application, So if you think of a migration service is says, I've actually got a service called Discovery, I crawl over your servers and I find what you have way. Then what we do is we have a tool that says, Are you gonna bring and move the till. So you have to build a business case. We just bought a company in Canada called TSA Logic. They had a Super Two for building a business case that said, what would this absolutely running with either of us. >> So is the need of the business case. What's the courtney that you guys have focused on? What was that? >> So, interestingly, we run more Windows Server and the clothes when Microsoft. So you actually have to business keys here. So many windows servers are running on print. What does it look like when a run on either the U. S. And T s so logic? Really good, too. And we find our customers using it. That says, Here's your own prim Windows server configuration with an app on run the mortal What would it look like when it runs on AWS? >> But why would you just do that with a spreadsheet? What? What is the T s so logic do that you couldn't do especially >> well? First of all, you want to make a simple too Somebody has to go run a spreadsheet. They've turned it into a tool that a business years Ercan used a sales person you could use on. They've built on top of a database. So it's got a rich set of choices. You are richer than you put in. A special with a U IE is intuitive, and you're gonna learn it in 20 minutes. I'm not gonna have you made up >> this date in their best practice things like that that you can draw a library >> of what's going down, and it keeps the data store of all the ones we've done. So we're turning that into two. Were giving Old Toller solution architect. >> Well, you got a good thing going on with the marketplace. Good to see you wrapping around those needs there. I gotta ask for the marketplace. Just give us the latest stats. How many subscriptions air in the marketplace these days? What's the overall number in the marketplace? It's >> pretty exciting. Way decided just at San Francisco to announce that we now have over 1,000,000 active subscriptions in the marketplace, which is a main boggling number on its own 1,000,000 subscriptions. Ice of Scrape. Within those subscriptions, we've got over 240 foes and active accounts, you know, and the audience doors you could be an enterprise with 100 cases and in an enterprise. What we typically see is that there are seven or eight teams that are buying or using software, so we'll have seven or eight accounts that have the right to subscribe. So you could be a one team and you're in another team you're buying B I tools. You're buying security tools. So those accounts on what? We're announcing the show for the first time ever. Its security is we have over 100,000 security subscriptions. That's a while. That's a big number. Some companies only have 100 customers, and the market, please. Our customers are switched on 100,000 security. So >> many product listings is that roughly it's just security security. At 300 >> there's over 100 listings. Thing is a product with a price okay on a vendor could be Let's see Paolo off networks or crowdstrike or trains or semantic or McAfee or a brand new company like Twist located of Israel. These companies might have one offer or 20 offers, so we have over 800 offers from over 300. Vendors were having new vendors every week. >> That's the next question. How many security app developers are eyes? Do you have over 300? 300? Okay. About 100. Anyway, I heard >> this morning from Gartner that they believe that are over 1000 security vendors. So I'm only 30% done. I got a little work >> tonight. How >> do you >> govern all this stuff? I was a customer. Sort of Make sure that they're in compliance. >> Great question. Steven Smith yesterday was talking about governance once she moved things on the clothes. It's very elastic. You could be running it today, not running a tomato, running it in I d running in Sydney. So it's easy to fire up running everywhere. So how did the governance team of a company nor watch running where you know, you get into tagging, everything has to be tagged. Everything has to have a cord attached to it. And then you do want to control who gets to use what I may have bought about a cuter appliance. But I don't know that I gave you rates to use it, right, so we could have border on behalf of the company. But I need to grant you access. So we launched a couple of years ago. Service catalog is our first governance to and yesterday we went into full release over new to call the control tower. >> Right. What you announced way reinvents >> preview. And yesterday we went to Jenny. What control does is it Natural Owes me to set up a set of accounts. So if you think of it, your development team, you've got David Kay and tested and the product ain't your brand new to the company. I'm a little worried. What, you're going to get up. You >> don't want to give him the keys to the kingdom, >> so I'm actually going to grant you access to a set of resources, and then I'm gonna apply some rules, or what we call God reels is your brand. You you haven't read my manual, you're in the company. So I'm gonna put a set of God reels on you to make sure that you follow our guide length >> Just training. And so is pressing the wrong button, that kind of thing. So I gotta ask you I mean, on the buying side consumption. I heard you say in a talk upstairs on Monday. You have a buyer, buyer, lead, engineering teams and cellar Let engineering, which tells me that you got a lot of innovation going on the marketplace. So the results are obviously they mention the listings. But one of the trends that's here security conference and it was proper is ecosystems importance in monetization. So back in the old days, Channel partners were a big part of the old computer industry. You're essentially going direct with service listings, which is great. How does that help the channel? Is there sinking around channel as a buyer opportunity? How do you How does that work with the market? Is what your thinking around the relationship between the scale of a simplicity and efficiency, the marketplace with the relationships the channel partners may have with their customers? And how do you bridge that together? What's the thinking >> you've overstayed? Been around a long time? >> Uh, so you have 90 Sydney? Well, the channels have been modernizes the nineties. You think about a >> long time. It's really interesting when we conceived Market please candidly. Way didn't put the channel in marketplace, and in retrospect, that was a miss. Our customers are big customers or small customers. Trust some of the resellers. Some resellers operates surely on price. Some resellers bring a lot of knowledge, even the biggest of the global 2000 Fortune 100. They have a prepared advisor. Let's take a company record. You often got 700 security engineers that are blue chip companies in America trusts or they buy the software the adoptive recommends. So mark it, please really didn't accommodate for Let's Pick another One in Europe, it would be computer center. So in the last two years we've dedicated the data separate engineering team were actually opened up. A team in a different city on their sole customer is a reseller. And so we launch this thing called Consulting Partner Private offer. And so now you're Palo. Also, for your trained, you can authorize active or serious or s h I to be the re sailor at this corporation, and they can actually negotiate the price, which is what a role resellers do. They negotiate price in terms, so we've actually true reseller >> write software for fulfillment through the marketplace. Four partners which are now customers to you now so that they could wrap service is because that's something we talk to. People in the Channel number one conversation is we love the cloud. But how do I make money and that is Service is right. They all want to wrap Service's around, So okay, you guys are delivering this. Is that my getting that right? You guys are riding a direct link in tow marketplace for partners, and they could wrap service is around there, >> will you? Seeing two things? First of all, yes. We're lowering the resale of to sell the software for absolutely. So you re sailor, you can quote software you build rebuild for you so that I become the billing partner for a serious or a billing partner for active on active can use marketplace to fulfill clothes software for their customers. Dan Burns to see you about pretty happy. You crossed the line into a second scenario, which is condone burns attached. Service is on. Clearly, that's a use case we hear usually would we hear use cases way end up through feeling that a little, little not a use case I have enabled, but we've done >> what you're working on It. We've had what the customer. How does the reseller get into the marketplace? What kind of requirements are there. Is it? Is it different than some of your other partners, or is it sort of a similar framework? >> They have to become an approved resale or so First of all, they have to be in a peon partner. I mean, we work tightly with a p N e p M screens partners for AWS. So Josh Hoffman's team Terry Wise, his team, whole part of team screen. The reseller we would only work with resellers are screened and approved by the PM Wants the AP en approved way have no set up a dedicated program team. They work with a reseller with trained them what's involved. Ultimately, however, the relationship is between Splunk in a tree sailor, a five and a three sailor named after a tree sailor or Paulo trend or Croat straight. So it's up to the I S V to tail us that hey, computer centers my reseller. I don't control that relationship. A fulfillment agent you crow strike to save resellers, and I simply have to meet that work so that I get the end customer happy. >> So your enabler in that instance, that's really no, I'm >> really an engine, even team for everybody engineer for the Iast way, engineer for the buyer. And they have to engineer for the re. So >> you have your hands in a lot of the action because you're in the middle of all this marketplace and you must do a lot of planning. I gotta ask you the question and this comes up. That kind of put on my learning all the Amazon lingo covering reinvent for eight years and covering all the different events. So you gotta raise the bar, which is an internal. You keep innovating. Andy Jassy always sucks about removing the undifferentiated heavy lifting. So what is the undifferentiated heavy lifting that you're working toe automate for your customers? >> Great questions. Right now there's probably three. We'll see what the buyer friction is, and then we'll talk about what the sale of friction is. The buyer frustration that is, undifferentiated. Heavy lifting is the interestingly, it's the team process around choosing software. So a couple of customers were on stage yesterday right on those big institutions talked about security software. But in order for an institution to buy that software, there are five groups involved. Security director is choosing the vendor, but procurement has to be involved. Andre. No procurement. We can't be left out the bit. So yesterday we did. The integration to Cooper is a procurement system. So that friction is by subscribing marketplace tied round. Match it with appeal because the p O is what goes on the ledgers with the company. A purchase order. So that has to be a match in purchase order for the marketplace subscription. And then engineers don't Tidwell engineers to always remember you didn't tag it. Hi, this finance nowhere being spent. So we're doing work on working service catalog to do more tagging. And so the buyer wants good tagging procurement integrated. So we're working on a walk slow between marketplace service catalog for procurement. >> Tiring. So you've kind of eliminated procurement or are eliminating procurement as a potential blocker, they use another. Actually, we won't be >> apart for leading procurement. VPs want their V piece of engineering to be happy. >> This is legal. Next. Actually, Greek question. We actually tackled >> legal. First, we did something called Enterprise Code tracked and our customer advisory board Two years ago, one of our buyers, one of our customers, said we're gonna be 100 vendors to deploy it. We're not doing 100 tracks. We've only got one lawyer, You know, 6000 engineers and one lawyer. Well, lawyers, good cord is quickly. So we've created a standard contract. It take stain to persuade legal cause at risk. So we've got a whole bunch of corporations adopting enterprise contract, and we're up to over 75 companies adopting enterprise contract. But legal is apartment >> so modernizing the procurement, a key goal >> procurement, legal, security, engineering. And then the next one is I t finance. So if you think of our budgets on their course teams on AWS, everything needs to be can become visible in either of US budgets. And everything has become visible in course exporter. So we have to call the rate tags. >> I heard a stat that 6,000,000 After moving to the cloud in the next 6,000,000 3 to 5 years, security as a focus reinforces not a summit. It's branded as a W s reinforce, just like reinvents. Same kind of five year for security. What's your impression of the show so far? No, you've been highly active speaking, doing briefing started a customer's burn, the midnight oil with partners and customers What's that? What's your vibe of the show? What's your takeaway? What's the most important thing happening here? What's your what's your summary? >> So I always think you get the truth in the booth. Cut to the chase. I made a customer last night from a major media company who we all know who's in Los Angeles. His comment was weeks, either. These expectations wasn't she wanted to come because he goes to reinvent. Why am I coming to Boston in June? Because I'm gonna go to reinvent November on this. The rates of security for a major media company last night basically said, I love the love. The subject matter, right? It's so security centric. He actually ended up bringing a bunch of people from his team on, and he loves the topics in the stations. The other thing he loved was everybody. Here is insecurity, reinvent. There's lots of people from what's the functions, But everybody here is a security professional. So that was the director of security for a media company. He was at an event talking to one of the suppliers, the marketplace. I asked this president of a very well known security vendor and I said. So what's your reaction to reinforce? And he said, Frankly, when you guys told me it was coming, we didn't really want the bother. It's the end of the quarter. It's a busy time of year. It's another event, he said. I am sure glad we came on. He was standing talking to these VP of marketing, saying, We want to bring more people, make sure, So he's overjoyed. His His comment was, when I go to Rio event 50,000 people but only 5% of their own security. I can't reinforce everybody's insecurity >> in Houston in 2020. Any inside US tow? Why Houston? I have no clue what I actually think >> is really smart about the Vineyard, and this is what a customer said Last night. I met a customer from Connecticut who isn't a load to travel far. They don't get to go to reinvent in Vegas. I think what we did when we came to Boston way tapped into all the states that could drive. So there are people here who don't get to go to reinvent. I think when we go to Houston, we're going to get a whole bunch of takes its customers. Yeah, you don't get a flight to Vegas. So I think it's really good for the customer that people who don't get budget to travel >> makes sense on dry kind of a geographic beograd. The world >> if we're expanding the customers that can learn. So from an education point of view, we're just increase the audience that we're teaching. Great, >> Dave. Great to have you on. Thanks for the insights and congratulations on the new responsibility as you get more coz and around marketplace been very successful. 1,000,000 subscriptions. That's good stuff again. They were >> you reinvented and >> a couple of months, Seven days? What? We're excited. I love covering the growth of the clouds. Certainly cloud security of his own conference. Dave McCann, Vice president Marketplace Migration and Control Service is controlled cattle up. How they how you how you move contract and governed applications in the future. All gonna be happening online. Cloud Mr. Q coverage from Boston. They just reinforced. We right back with more after this short break

>> Live from Las Vegas it's theCUBE covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel and their ecosystem partners. >> Welcome back to the Sands. We're live in Las Vegas here on theCUBE as we continue our coverage of AWS re:Invent. Along with Justin Warren, I'm John Walls. We're now joined by Dave Shacochis, who is Vice President of Product and Hybrid IT at Centurylink. Dave, good to see you again. >> Yeah, great to be back. Good to be back on theCube, good to talk to you John. >> Excellent. And by the way, you win the GQ award. >> All right. >> Everybody raving about that black, velvet you've got going on. >> 50,000 people here at re:Invent. If I'm in the lead- >> That looks very strong. >> I'm in the lead at the turn, that's good to hear. >> Best Dressed award. >> Very nice. All right, well big news though for you guys. Obviously being designated as the managed services provider, reaching that certification with AWS, tell us about that, about that process and what it's meaning to your business, and what it means to your customers. >> Yeah, AWS is such a customer-focused organization. They're very passionate about their end customers, and solving problems. But they've also built up a huge partner network, and what Terry Wise and the team have built is a real partner-relevant organization. And so what they've really done to make it a level playing field, to be as passionate about their partners as they are about their end customers, hopefully intending to solve problems for customers as well, is really to put a lot of thought into making sure that when they have a competency or a certification, that it's no joke to get through. It's a serious exercise to go through something like a managed service provider or an MSP certification. We had that get finished up for us several months ago, and we've been rolling that into our managed cloud practice, and really helping our customers with the three key criteria of what AWS really wants to have its partners do, which is really design and plan and be able to orchestrate workloads, and model workloads for customers, and understand how and where they're going to deploy and migrate into the cloud. They really want to see and make sure that you're doing next generation work during the operational run phase. Not just are you monitoring and managing those workloads in those environments, but are you doing predictive analytics? Are you starting to take a look at trends inside the data? Are you using Big Data to actually augment your management practices? Right? Not traditional ITEL just in a cloud location, but really next generation managed services. They measure and they certify all that. And then the third thing they want to do is take a look at how are you reporting? How are you helping the customer optimize and analyze cost, and become as efficient as they can with their deployment of AWS services. So it's a significant exercise to go through. It really made our service better. And quite honestly, that's a great example of AWS being customer-focused by making sure that the partners they want to work with can hit a certain level-- >> Step up your game. >> Hit a certain bar to be able to drive that value for their end customers. >> Yep. >> Yeah. So for the customers who were choosing Centurylink to come to something like AWS, what is it about Centurylink that they like? That they would rather deal with you than go, say direct to AWS and try to do everything themselves? >> I think there's really sort of two or three real differentiators for Centurylink when we work with our customers. Probably the first and foremost is that hybrid nature of how we can meet the customers where they are. Centurylink has been running and managing and working in the data center space for a good 15 to 20 years. We've been running and managing private clouds and hosted compute environments for as long as there has been such a category in the industry. With all the different heritage that rolls into Centurylink from an IT Services perspective. So they really come for the experience and the pedigree, and the complexity, friendliness. But they also come for the fact that we can meet them where they are, whether it's inside their current data center, help them do data center consolidation, help them move into hosted centers, and then help them on that journey, 'cause so much of the enterprise is still very much on a journey, right? There may be projects that are firing up to the cloud, there are a lot of organizations that are ready to make the full leap and go all-in on the cloud, but by and large there's some kind of a hybrid environment where they're still looking at the different form factors, and they're very much on a journey to get from where they are today to where they can be more agile. >> Yeah. >> So this is the experience that we have. But then what we really, and there's lots of companies out there that have good experience, they have good tools, they have experience running and managing and monitoring. There's a lot of other companies that have the MSB certification. What Centurylink has that's really a deep investment is all the network optionality and the network control that we have. So not only can we do managed services inside AWS, we can also do the managed network that gets the traffic and gets the workload to AWS. >> Right. >> And that's a real critical differentiator. Not only can we get those connections set up and configured, we can also manage those environments and then secure those environments. So there's a lot of investment that Centurylink has put into our managed cloud practice, augmented by managed networking and managed security. The assets that Centurylink brings to bear with regards to our security portfolio and our network portfolio, come from years of significant investment. One of the largest global IP backbones in the world. We've been gleaming network and security telemetry from that network, and building threat patterns and threat management services inside the core of our network. So really, customers who work with us have a secure, consistent, reliable path to the cloud, and then they get the managed services, the MSB certified managed services, once they're there. >> Yeah. So speaking of connections, I believe that you've announced a product in, I think it was October, called Direct Connections. >> Yes. >> Is that right? Tell me more about what that is. >> Sure so that's that sort of, for those of you tracking my hand waving at home, you know the network stuff over here. Inside our network portfolio there is ... our cloud connect service is one of most deeply connected to AWS services out there. So we're a significant direct connect partner. We drive an ethernet-based service into AWS in all their major regions, and then we have that cloud connect service run to hundreds of global multi-tenant data centers as well as hundreds of thousands of enterprise locations. So we have, what we launched there back in October was the latest version of cloud connect, which we call Dynamic Connections. It's a feature within cloud connect that allows us to take a global ethernet circuit, tying into AWS, and make that happen in minutes. That didn't exist before. So a lot of people think about AWS direct connect, and they can configure direct connect and tie it up to their VPC, then they start the Telecom process that could take weeks and or months, and it depends on who they're working with, and who they're buying from. >> Yeah. >> If you're in a building that's on net with us, or your traditional data center is one of the data centers, the many hundreds of data centers that are on net with us, we can go and get that connection turned up, all of the automation, and once you get that circuit created, you can dial it up and dial it back, a gig, ten gigs, anywhere in between. You can go below a gig, wherever you need to. You have complete control over the creation of a new circuit, which is great for retail locations. Retail customers like this as they're bringing in new facilities, and bringing mixed-use facilities on net, and they're bringing new facilities that they need to be able to trunk back to their data center in the cloud. We can use dynamic connections to go and help them create new locations, but then as the business needs change at those locations, they can dial up and dial down bandwidth, and really have a rich level of control for how the traffic is being routed and passed. >> Yeah, having spoken to customers in the past, that is actually quite valuable. It has been quite painful to go through that process. >> A lot of big cloud migrations, once they're done with them, one of the problems you run into is, "Well, I never really thought through and anticipated what the network path would look like after I made that move to the cloud." >> Yeah. >> And that's one of things we try to do with our customers at the onset of an engagement, is not just say, "Let's start stampeding to the cloud right away." Nothing necessarily wrong with that, but let's think through the network design first. Who are your users? What are the new traffic patterns going to look like? And what are the hybrids that you're going to be building, where something that's in the cloud needs to talk back to your corporate data center? Do you have enough bandwidth and do you have a low enough latency connection between the two? >> Yeah. >> Early this week you were talking about Milliseconds Matter, right? You had a presentation that you were featuring that. So what does that mean to your AWS customers? That's kind of intuitive, they do matter. >> Sure. >> What was the perspective that you were bringing to that and the latency issue? >> Yeah, so we did a presentation here earlier in the show, where we really illustrated that combination I was referring to earlier, of our MSP certified managed offering coupled with our cloud connect network automation. What we've really done a lot of work with around cloud connect is creating a service that has a few different user experiences. If you're a network engineer, if you're somebody who's running a corporate network, you really want to get in and really just get a layer to interface from Centurylink, optimize your BGP routing and do all of those sort of Telecom-grade configurations, you can do that with Centurylink cloud connect. We also have a very straight-forward version. In Andy's keynote this morning, one of the things he was really talking about, it really spoke to me, was this idea of, well there are builders who want to use the tools, and there are builders who just want instructions. >> Yeah. >> Builders who just want to dump the IKEA parts out and put the thing together. And then there's some people that want to sit there with a lathe and handcraft everything. So different types of builders. We have a version of cloud connect that can appeal to the builder who doesn't necessarily want to get down in the weeds of networking, and they just want to basically take a workload and connect it to the right private network link. And so that higher level version of cloud connect is what we demonstrated earlier today, and really the fundamental premise of Milliseconds Matter is network orchestration and cloud orchestration coupled together gives you a whole lot greater level of control. And that's where we're starting to see all these emerging use cases, where you can certainly think about migrating everything to the cloud, but then you have to start thinking about where do those workloads need to run? What does the future look like, in terms of IoT devices and sensors and video telemetry and environmental telemetry, all the different sources of data that organizations can use to go and innovate around. Where you're going to run that business logic is going to run closer and closer to the edge for a lot industries: in retail, in healthcare, in a lot of government institutions, in hospitality. So basically the fundamental premise of Milliseconds Matter is have control of your cloud, but then also have control over your network, and hopefully have the two in concert with one another. And that's what we're fundamentally driving at with our service platform. >> Sounds great. >> And real quick, when you talk about all this, in a 5G world, all of a sudden when you talk about edge, you talk about- >> Sure. >> That's a game changer, is it not? >> Well it is. 5G is still so emergent. There's a lot that's there. There's a lot there that's 5G. There's still 4GLTE. There's still lots of different ways to go and get all that data trunked together. And it doesn't stay on LTE forever, right? Eventually it all starts to get to an IP backbone, and then that's where you still have a lot of latency optimizations and route optimizations that you want to be able to deal with. So we absolutely look at LTE as something that we think is a huge opportunity with a lot of our partners that we're working with across our network footprint, to be able to use LTE as a new access strategy, just like we've used just about all the other access strategies that are out there. >> Excellent. Good to see you again. >> Yeah, great to see you, John. >> See you down the road soon, I hope. >> For sure. >> All right, thank you for joining us. Dave Shacochis joining us here from Centurylink. Back with more from AWS re:Invent. You're watching theCube. (electronic music)

>> Voiceover: Live from the Javits Center in New York City, it's The Cube, covering Inforum 2017. Brought to you by Infor. >> Welcome back to The Cube's coverage of Inforum. I am your host, Rebecca Knight, along with my co-host, Dave Vellante. We're joined by Terry Wise. He is the Vice President of Alliances for AWS. Thanks so much for coming on the program again. >> It's great to be here, yeah, thanks. >> So we are now a few years into this relationship with Infor. Where are we? Put things in perspective for us. >> Oh it's a great question. I think in some respects, this is arguably the most mature and strategic relationship we have. We've been working with Infor for, I've been at Amazon now nine years, and a better part of my nine years, we've been working with Infor, you know. In the early days it was awesome, before Infor bought the company. And, they've always done a great job of pushing us to be more enterprise-centric, more innovative in our platform and services. So it's very mature from that perspective. But I'd say, also at the same time, we're just entering a whole new days. We'd like to call it Day One at Amazon. If you look at some of the things that Charles and the team announced today with Coleman, and some of the new functionality and the growth of the cloud, I mean, we really are still at the early stages of this relationship, which is exciting. >> You know what's interesting to me Terry is, you know, Andy always talks about the fly wheel. He was, sort of, the first to use that terminology. And I was sitting in the endless meeting yesterday, and Infor was going through its architecture. And I just saw a lot of fly wheel in there. I mean, there is DynamoDB in there. I certainly saw S3. I think there was Kinesis, in terms of time series stuff. I think I saw Redshift in there. And so I wonder if you could talk about how this company, specifically, but generally, how people are leveraging net fly wheel of innovation to drive value for their customers. >> Yeah. And again, I think this goes back to the relationship we've had with Infor for so many years. Cloud is not just about cheap computing storage. It's really about platform and innovation that comes from that platform. And, you know, and partners and customers, like Infor, that have been with us a while, and they've got the skillsets internally, they've got great vision for how they want to take their customers with application functionality. They're really ripe to be able to take advantage of all the innovative platform services we build. Kinesis, Lambda for serverless computing. We're talking about some neat things around Edge. You heard Charles and Duncan today talk about Lex and some of the AI capabilities we have that are underpinning Coleman and some other new offerings. So they really are, kind of, the poster child for adopting our new services and driving innovation on top of our platform for their customer base. >> So where, if you can, look into your crystal ball a little bit. Where will we be a year from now, three years from now, with these technologies? >> So if I look out a year, I think, you know, rapid global expansion. You know, we're long past in many respects, sort of the, the early questions around cloud. Is it secure? Is it cost-effective? Is it robust and reliable? We're really past that if I look out across the globe. And now it's a question of how can we help enterprises adapt faster. And that's really, probably, the single biggest question I get from enterprise customers is, "This is great. Help me move quickly." And I think one of the neat things about the Infor relationship is, because they've packaged all of this innovation, into a set of business applications, they're actually helping customers move to the cloud quite a bit faster, and get that great value prop of cost efficiency, security, innovation, et cetera. Looking out three years, I think Duncan and the team did a very nice job today talking about the interaction ad user experience of how you're going to engage with business software moving forward. It's going to be very voice-driven. It's going to be predictive in nature so it's actually going to tell you what you need to think about versus going to a terminal or even a mobile device. So much left to do in that space. But I really do think, you know, three years from now, machine-learning won't be a buzz word, nor will artificial intelligence. It'll just be a bigger part of our daily lives. >> We were talking to Chip Coyle a little bit about trying to debunk some of the myths in cloud, specifically Amazon cloud. And I mentioned Oracle, saying that core enterprise apps really aren't going to the cloud, that's why you need Oracle. And they've got a strategy to do that, you've seen it. But then you going to see Infor, 55% of their business is in your cloud. They look like core enterprise apps. So is it, my question is, help us debunk that myth. But is it narrowly confined to companies like Infor, or are there examples of others? I mean, certainly there are companies, you guys have unbelievable logo chart. But when you peel back the onion, many of those apps are cloud-native or emerging apps. Those core of enterprise apps, we're seeing it from Infor. I wonder if you can add some color to that and are there other examples? >> Absolutely, I mean, I think there's others in the market that may be uncomfortable with the change that's happening with cloud, and therefore might be incented to try to slow that down. But I will say, the vast majority of all software companies we're engaging with are moving mission-critical enterprise apps to AWS. Some built natively in SaaS, like Infor is done. Others that are enabling, certifying their applications, SAP is another good example. You can kind of go across the stack, Adobe, AutoDesk, Siemens PLM, for product lifecycle management. And if you think about, you know, that's putting companies' core IP, the product development into the cloud to take advantage of all this agility, scale, cost-savings, et cetera. So it's been happening for a long time. Di-so is another great one, very innovative but somewhat conservative french company. They were very early on in the journey with us. And again, that's, you know, IP used to design airplanes, the things we fly around it. So it's been happening for a long time. It's accelerating. And I would say the other trend we're seeing is the companies out there that are resisting, we're hearing more and more from customers that, "Hey, that company is not helping move me to the future. Can you help me find an alternative?" So there's this big movement for enterprises to actually migrate out of legacy platforms, whether that's hardware or software, and move in to the cloud-native platforms, which are the future. >> So we see, we've been talking on The Cube for years about this whole digital transformation and how it's going to allow companies to play in different industries. Amazon, obviously. Retailer just purchased Whole Foods, getting into grocery. It's a content company. So Walmart said, "Alright, we're not going to put our stuff "in the Amazon cloud." Netflix obviously does. How do you deal with that? The obvious competitive fears of some of the customers that you have for AWS? How do you message that? And what do you tell the world? >> Sure, the first thing is, I mean, AWS, while it is part of Amazon.com, we are a separate operating group. And we've been that way since the beginning. So yeah, Amazon is a customer, just like Netflix or Nordstrom, or any of the other, you know, millions that we serve. Now a very hard customer and a very good customer. And they help drive our innovation road map. But we don't treat them any differently than we do, Netflix or the others. And part of that has to do with how we protect and secure the information that those companies put on AWS. So there's some companies out there, the one you just mentioned, that's still may be a bit uncomfortable, for whatever reasons, competitive reasons, putting information or having third parties put information related to their business on AWS. Yeah, I think that's unfortunate, I think. And it also talks about two different philosophies. We take very much a customer-centric view of the business. What's best for the customer. And if one of our partners has a better capability, we've got plenty of partners that have similar products to what we offer, but if it's the better product for the customer, we're more than happy to support that. Whereas others out there take a very competitive focus to the market. Where it's, they're watching what their competitors are doing. They're trying to head them off at the pass, or copy what their competitors are doing. In the long term, I don't think that's a fantastic strategy 'coz you're never really innovating on behalf of the customer. You're never giving them the best solution. You're actually preventing them from getting something that could be beneficial to that customer. And we just don't believe that's a long-term great business strategy for our customers and for ourselves. >> We recently saw the announcement of Amazon purchasing Whole Foods. Can you talk a little bit about this for our viewers. And talk about where, how you see the future of grocery and retail, where it's going. >> Sure, so we've announced our intention to purchase Whole Foods. It has not happenned. There's still some work to do there. But I think, you know, anytime we look at, you know, how we're going to expand, either organically or through acquisition, it's about, what are the synergies between our existing business, what the customers are looking for, and how can we create a better experience for that customer. How can we do it at scale? How can we innovate around that model? And then, you know, how can we make that a great long-term experience for the customer that ultimately drives the success and growth of our business, but also the partners that we bring in, whether again through acquisition or through third party partnership. This is kind of a, you look at this as a natural move as we look at what our customers are telling us, "Hey make it easier for us to purchase groceries and "household items." You know, and do it in a hybrid way, both, you know, combination of online and more from the physical presence. >> Terry I wonder if you could talk about, we mentioned the Edge before. And as you build out your partner strategy and the partner ecosystem. Talk more about the Edge, where it fits. Analytics at the Edge, and Amazon being the cloud, so what's your point of view on what happens at the Edge, what moves back to the cloud, the expense of moving things back to the cloud. What's your thought on that whole thing? >> Well, there's so many use cases for Edge computing. I mean, take the mining industry. You're putting huge trucks in the middle of nowhere that may have limited or very expensive connectivity. And they're capturing all kinds of, you know, information, during the natural operation of that machine. And it just makes sense that you want some level of data processing, storage, and analytics to happen on that machine. It could be a cruise ship, it could be a naval vessel, it could be an airplane. There's, you know, lots and lots of different applications there. But by doing some of that processing at the Edge, you're actually limiting the amount of data you have to send back to the central cloud. But of course, if you want to take full advantage of the analytics, you actually have to match that data with all the historical data and other real-time data that's resided in the cloud to get the result you're looking for. So it really becomes, you know, kind of this hybrid computing model. So some of it is efficiency around how much data you're sending back and forth. Some of it is just efficiency around processing, the point of data capture. Some due to connectivity reasons. Some due to other. It really is kind of this interesting new extension of hybrid cloud, if you will. We're very excited about it. >> You've made some moves in that area. I mean, Snowball was, I think, you know, one of the first. And there are other sort of Edge, what I would consider Edge-like devices or solutions. How dogmatic are you about everything living in the cloud? I mean, those are steps. Should we expect, you know, increasingly extending the reach of the cloud or is it just really going to all, your world come back to the AWS clouds? >> Yeah, yeah. It'll certainly be an extension of the cloud. That's already been happening. I mean, if you look at hybrid cloud. I think we've always been a supporter of hybrid cloud if you look at our roadmap going back many, many years with virtual private cloud, with Direct Connect, with some of the newer capabilities like Snowball, and, of course, Greengrass, our Edge capabilities. We're really extending the reach out to be much more of a hybrid store. 'Coz we recognize that not all the data today exist in the cloud or AWS in the future, you know. We think most applications will run in the cloud because the value proposition is so strong across so many different dimensions. But today, there's plenty of other places we have to connect to, again to capture the data. Now, I do think the vast majority of the data that we're capturing will be either pre-processed or sent natively into AWS to create a massive data leg so that you can start to drive these innovative machine-learning and artificial intelligence applications. The predictive analytics, the algorithms. They just don't work if you don't, they don't work effectively if you don't have massive amounts of data and you continuously refresh that data so that the algorithms can continue to learn. >> I want to double click on something you said about the value. To capture most of the value, your belief is that it's going to be in the cloud, one cloud. And others obviously have different view for a variety of different reasons. I buy the cost argument. You didn't make that argument, I'm making it. The marginal cost of having a single cloud. You know, standard, how much an A it is, superior. I'll grant that. What else is there though? Is it speed? Is it innovation? Is it standardization across the base? >> The single biggest value that I hear from customers today, but they love it, they love the cheap hosting fees, the efficiency part of it, but it really is the speed and agility. It's certainly the security model as well. I would say that most, almost every organization now that we talk to, once we've had the chance to educate them, if they haven't already done so themselves, has determined that the cloud-computing security model is much more effective than they could deliver on their own. We can just invest more. We can experiment more. We can have have multiple certifications across different industries, which every customer gets to take advantage of. But I would just come back, it's the ability to move quickly whether it's moving into new market. I was just in Europe, we were talking about it. It's so volatile there right now on so many dimensions with Brexit and some of the nationalistic politics things that are happening. Potentially the opening up more of the Middle East with the sovereign wealth funds comin' into play. There's just so much opportunity that enterprises need to be able to move quickly. And if they have to go stand up a data center somewhere else, or they can't deploy the software quickly, they're at a competitive disadvantage. So the single biggest driver from what I hear from customers and what I'm seeing is agility. >> Yeah, okay, so just to clarify, I said, cost not price. But we can debate that some other time. (Terry laughs) You just came back from Europe. You mentioned Brexit. What about things like GDPR which has taken effect but the penalties go in effect May of 18. Obviously that puts a lot of pressure on the cloud provider, as well as your customers. What are you hearing in Europe? And generally and specifically GDPR. >> Yeah, I mean, I would say the regulatory environment everywhere, but specifically in Europe, continues to evolve and it's fairly fluid. We've spent many years working with the various different regulatory bodies. The Article 29 Working Party. That's actually been crafting a lot of this legislation. So we're heavily influencing, because, if you step back, people said you couldn't do cloud, but they didn't explicitly say you could. (Rebecca and Dave laugh) So, customers are meant to, "How do I interpret this?" And some, you know, like, if I look at Nel, and I look at Societe Generale, and I look at BMW, and some of, you know, our forward-leaning European customers, Siemens is another great one, who was one of the original companies to put PII in the cloud. Here's a big German company putting PII in AWS a number of years ago. So we figured out how to get, not get around, but interpret the regulations, and then also ensure that we've got the features and capabilities to make sure that they comply with those regulations. So the full audit trail, the ability to encrypt data, the ability to make sure that data storage and localization is complying with, whether it's a country-level regulation or an industry-level regulation. So we continue to spend a lot of time and effort, monitoring and influencing that. And then building the services to make sure our customers fully comply. >> Well, you've always done well with permutations and complexity and automating that, so it's going to be fun to watch. >> Rebecca: It will indeed. >> Great. >> Terry thanks so much for joining us. We really appreciate it. It's been a lot of fun talking to you. >> Yeah, great, thanks, appreciate it. >> I'm Rebecca Knight for Dave Vellante. We will have more from Inforum just after this. (upbeat music)

>> Narrator: It's the Cube. Covering Sapphire Now 2017. Brought to you by SAP Cloud Platform. And HANA Enterprise Cloud. (electronic music) >> Welcome to the Cube everyone. We're here for the special exclusive Sapphire Now 2017 coverage from Palo Alto studio. I'm John Furrier, three days of Sapphire coverage. Our next guest is Jason Kotsaftis who's with Senior Director Database Solutions at EMC. Who came in here in Palo Alto. You guys have some news down there, full team down there. I know, normally we cover SAP, it's our first year we're doing it from our studio. But EMC's always been on the cube. You guys had a great relationship with SAP. I think our first year we've done the cube in 2010. >> Jason: That's right, yes, I remember. >> You were that SAP Sapphire. >> You guys were. You were on the Cube. You've been with us for awhile, but the relationship with an SAP, and EMC, now Dell EMC, it's pretty significant. What's the big news you guys have going on? >> Yeah, I mean, it's a huge relationship for us. We've been, even before we were merged with Dell, one of our top partnerships. Now it's even bigger. We've been amazed at how much Dell had been doing with SAP, and we're bringing the best of the two companies together right now. So, yeah, we have a huge presence at Sapphire as you mentioned. We saw Michael Dell do a brief speech at the show, and I thought that really helped set the stage for, not just Dell and EMC with SAP, but even some of the words he said were a good microcosm of Dell and EMC talking about the importance of bringing together people and processes. And we're going through that right now, and we're we're going through how we're going to merge the portfolio to go after Cloud, go after HANA, internet of things, data center transformation, all of those major things. >> Well surely SAP, the theme is Cloud, Multi-Cloud is a big message. >> SAP Cloud platform, we had Dan Lahl on the Cube. We also interviewed the HANA Enterprise Cloud group there also, got a huge alliance with Amazon Web Service, Terry Wise, there. We all saw Century Link. So you start to see the industry formation going on. The fog is lifting, you're starting to get some clear visibility on swim lanes, tactics, we'll help people with settling in. Whatever metaphor you want to use, people are finding it. Dell EMC is just absolutely just a monster now. I mean that in a good way, I don't mean that in a bad way. But it's so big. EMC was already very powerful, and winning in the storage business. Great enterprise jobs, the sales force, the culture, really well, great culture as you know, we know them. Dell has been lean and mean, like a speed boat. Great with channels, great with operations, very lean and efficient. EMC, the direct selling, you bring them together and now the supplier relationships are changed. I was talking with your team. Dell brings to the table deep Microsoft Intel relations. Not that you guys didn't have them, but they have deep relationships. >> Correct. >> You guys bring deep relationships. How has that new culture dealings changed your relationship? And specifically, what's the impact to SAP? >> Sure, you know, great question. First of all, it's been very complimentary. And we felt that going into the merger. I've been at EMC for 21 years right. So I had worked with Dell 10-15 years ago. Very, very complimentary, and you nailed it. They're very good at one segment of the market historically, we're very good at another. You know, for the most part I think it's been a really, really good matching, made sense from merger perspective. If we think about SAP for a second, one of the first things that we've been bringing together is, we have two very complimentary HANA portfolios. So, HANA is obviously a huge focus for SAP customers. I was just at Dell EMC world last week, every single customer that I talked to, whether they were running Oracle or Microsoft, they're all asking about HANA. We had a great focus at EMC with our enterprise HANA systems. And at Dell they have a very good packaged appliances and Scale Up bundles. And right now we feel like we can address the whole breath of what people may want to do with HANA. Whether it's, TDI, Scale Up, Scale Out. Very, very strong and >> John: Where does HANA fit in, because I want you to just take a minute to explain this, because it used to be a blanket word, even when they were kind of getting it out early. It was great marketing from the beginning, You know, it has legacy to it, but as the market changed, HANA changed. And as SAP changed, they changed from their positioning. Specifically, they used to call it HANA Cloud Platform. And they have HANA Enterprise Cloud. Now they've renamed it to SAP Cloud Platform, which is the platform as a service, the cloud native stuff. And then HANA Enterprise Cloud, which is really the managed service. So from your perspective, how do you define what HANA is today. And where is is settling in? Is it just the core engine of SAP? But how's it relate to all these new things? >> Yeah, for us it's really a platform. So if we think about where HANA began when we started working with SAP, it was all about analytics. Collecting data, analyzing data, making better business decisions. Now with S4 on the horizon, and the inevitable cut over to that from all the other enterprise applications of SAP, we really view it as a platform. And it's going to have big implications. If we look at our own SAP install base at EMC, there's a lot of customers that run Oracle underneath their SAP apps. So it's part of the HANA transformation, where we're going to be getting them, hopefully, on the road to, not just take advantage of HANA today, but as they go forward how are they going to get ready for S4 and have, hopefully, a smooth migration path to that. >> Obviously their cloud platform, I mean, their cloud strategy, or cloud direction. I don't know if you can have a cloud strategy. As Michael Dell said, Clouds like the internet, it's everything. >> Jason: Right. >> So, there's no real strategy, it's just the way life is. They're going to be on premise and off premise. And they're clearly targeting multiple Clouds, unlike say Oracle, for instance. But neither here nor there. The point is, is that on premise there's still going to be a 10 year plus journey, nothing's going to be disappearing over night. So the on prem Cloud dynamic is interesting, cuz they used the word mission critical. That was a big buzz word with when I talked to Michael Dell, He banged home mission critical. A lot of the teams in Dell EMC World last week was around mission critical work loads and choice. So you guys have that same mojo going on with SAP, how is that translating for you guys? Big new business, new opportunities? >> Great question. So one of the big things that we've acquired and focused on in the SAP space was Virtustream. So they've been a really big off premise cloud provider for us, but at the same time, when you look at what we've been building at EMC even before that we had our own enterprise hybrid cloud offering. One of the things that we're talking about this week at Sapphire is actually bringing those two together. So we can have people have an off premise and an on premise experience, a single view of their data, a uniform way to manage SAP in the cloud, and to the point of mission critical like you said is, as much as we see people moving to the cloud, there are still people that want to have for certain production systems they want to control that. They don't want to give it off to the cloud yet. They may not want to control the hardware but they certainly want to control the data. And with this new relationship that we're blending in the EHC and Virtustream we can actually allow them to have that choice to your point. >> John: What's EHC? >> The EMC Enterprise Hybrid Cloud. So that's our own self service automation of software framework that we put around the cloud. >> Which cloud, your cloud or other people's cloud? >> Right now it's our cloud offering. >> So you have a public cloud. >> We have a cloud offering that's a hybrid cloud offering. That you can deploy on premise or off premise, and Virtustream has been historically used off premise. >> So you use Virtustream as your off premise component of that piece? >> Correct. >> That makes sense. Cuz you bought them in January, I get that. >> That's right, and we had to bring the two together, and that's been a big new step for us. In that regard we think it's very, very complementary for SAP, that's one option we provide, right. We also work through SAP's own offerings to make sure we give them the right and the best infrastructure behind what they're trying to do with their own cloud. I was at a large partner of ours recently, OpenText, and we were talking about content archive, all the things that they do there, they're very deep in the SAP cloud, so we're working with them to start to potentially build the right archiving and capabilities behind that. >> So what's the big news for SAP this year, obviously we saw the coverage, we got some folks calling in, we had some folks down on the floor giving us some input, but from an SAP EMC, Dell, now Dell EMC relationship, what's the big news, what's the big story for you guys? What are you leading with, what's the announcements, be specific. >> The big news is we're all about the cloud. The bringing together of the on premise and off premise EMC Enterprise Hybrid Cloud Virtustream, giving them that uniform way to consume SAP in a cloud based model, whether it be on premise or off premise, that is absolutely our biggest new highlight. >> You guys released that was a hard news that went out for you guys or... >> Yeah it was part of an EHC evolution story that we brought out, the other things that we have that are not necessarily formally announced but are more things that help the day to day administration of SAP applications, we often forget about that. We're pushing people to the cloud and we all talk about cloud. >> So there's no big splash in the pool like, hey we're releasing a new VxRail version of whatever, it's momentum specific. >> Correct. >> What are the big momentum's you plan, you can look back now and we've seen a lot of the evolution, we've seen the relationship with SAP grow, we've seen the converge infrastructure movement, now going to a whole nother level, hybrid cloud and converge infrastructure is happening. What's the new wave that you guys are riding with SAP together besides the cloud, it's generically cloud. What's specifically, can the customer pinpoint that you guys have solved? >> I think you just touched upon it, it's the whole build versus buy model. So historically if you look at where the SAP customers spend the most of their money, it's the op ex. It's the operational expense of administering and maintaining the SAP landscapes. >> You mean like total cost of ownership stuff, just like, easing some of the pain between deployment and costing. >> Workflow automation, copy clone refresh, backup recovery, performance automation, disaster recovery, all the things that you got to do to keep the SAP applications generating value to the business is heavy operational cost to them. That holds them back from doing innovation and investments. >> Those are the details you got to get down and dirty on. >> Yeah. We've done some great studies with you guys on this, one of the things that, there's different ways to go about tackling that. One of the ways that we believe is good is to simplify what you can. And so one way to do that is, well from an infrastructure perspective, you should have the ability to basically buy the infrastructure as an outcome, not have to build all the components and get it together. >> All the provisioning pain that goes with it. >> Yeah, and so when we were just EMC, we had one choice. We had what was called a Vblock, and then we build VxRacks and VxRails. >> Vblock was so successful, it really was, you did a good job of that. >> Yeah, a lot of customers from the SAP. Now that we're Dell though, we have the PowerEdge family, and we've been bringing that in to not only Racks and Rails, but looking at that in terms of building what we call Ready Bundles, where we can actually deliver as a single... >> Think about this ready solution, because the thing that got me at Dell EMC World was two things. The purpose built mission continued, I mean that in a good way. And two, the disruption of data backup protection and backup with the cloud. With the cloud as a new disruptor. For some reason backup and recoveries, clearly different in the cloud than it is on prem. So we've seen a lot of action in there too. Those are the two ready areas, and then also, dynamic changes going on with backup and recovery. >> Yeah, ready solutions was a huge thing, and this is part of the merger we rebranded our solutions organizations into one. Our whole, as the name implies, the whole goal is to deliver a ready infrastructure to the customer that they can just deploy, so they can focus on their applications and their business and not worry about the server, the network, the storage, which ones do I put together for what reason. We want to give them that menu of choice, whether it's a single node, a bundle of components, or an actual system, and deploy that in any way they want. >> What can we expect from Dell EMC, from your team VZB, with respect to SAP? Next couple months, next year, what's the plans, what's the continued momentum playbook? >> Some things that you'll be seeing more of if you go to the Dell blueprints page where we have all our solutions. You'll be seeing some new and refreshed offerings around HANA, you'll be seeing some new things around SAP landscapes, and you'll be seeing much more formal communication around the cloud offering I talked about. >> And cloud seems to be, again, cloud is taking it outside the four walls, which is different, great capabilities, people going in analytics, putting a lot of analytics in the cloud. So seeing that being the first wave beyond dev tests. Dev tests, even though Oracle says dev tests is really going to be around for a long, long time, people are already moving to analytics in the cloud. That's interesting for instrumenting for backup and recovery, what's possible. Quick thoughts on the changes there, in the landscape between the old way of thinking about backup and recovery, and by the way you guys have some of the best solutions out there that will data domain, scratch record goes to history, but now it goes to the cloud. What's the tricky parts that you guys are watching? >> Well I think on the one hand there'll be people that want to worry about their mission critical, like you said we have great integrated offerings to the workload, so you can have a backup team handle it or you can have your workload team handle it, it's really up to you. As people go into the cloud I think they have to decide, what's the tiering strategy they want to approach that, what's the retention data strategies that they need, how's that going to, >> Where the hell is the data going? >> Where's the data going, is it safe and secure, and how does that relate to how they're protecting their on premise data. I mean from our perspective, and back to the SAP example of where we have this uniform cloud approach, we have the backup capabilities built into that. Whether it's long term data retention, short term backup and recovery, yep. >> Question for you, this is a test, a real time cube test. I'm sure you'll pass with flying colors. What is the most, what are the biggest two waves that the customers should be surfing in the enterprise, top two most important waves? >> I think one of them we've already talked about, which is certainly cloud. I think if you look at the whole digital transformation, which I know is related to cloud, but the whole digital transformation wave I think is separate from that. So if you look at big data and analytics and machine data, every customer, whether it's a traditional RDBMS environment or what have you, they're all looking at how to harness that data. I think when you get into that and look at all the data in your data center that you may not be using today, you may not have been trying to take advantage of, with technologies like Splunk and other things that are out there to help you do that, that's a great thing to look at. We're seeing heavy.. >> So data basically, cloud and data are the two big waves. >> Yeah, digital transformation of data and taking advantage of that data. >> Well they go hand in hand, cuz you got the scale of the cloud for compute and other things, data drives the digital chest of digitalized data, digital assets are data, right, everything's data. So you would agree, cloud and data, two big waves. >> Yes. >> Jason, thanks so much for coming on the Cube special coverage and final comment, I'll give you the last word on SAP Sapphire, I know you got a relationship, you're probably going to be like oh yeah, SAP, everything's great. Be straight, what's going on with SAP. What's the outlook for SAP from your perspective. >> I think there's a great opportunity to your point, but there's also a good challenge, cuz we're going through a merger. I think we're making great progress to bring the two portfolios together, and SAP's being a great partner helping working with us. >> And you're cool with them now, you guys feel good about SAP. >> We feel great about them, we use them in our own environment at Dell as Michael talked about, to run our own business. So it's a great relationship >> Jeremy's been a remote telecast performer at EMC World. >> As you know, these partnerships in the industry go up and down, we talked a little bit about Oracle over the years, that's fluctuated. >> I was dating myself the other day on a Cube gig, and I said, oh it's a Barney deal, which my language was, you know, no real deal, cuz Barney was a character that kids watched, my kids watched, you know, I love you, you love me, it's kind of a love fest, but nothing happens. It's called a Barney deal. I need a new meme now because most of the people in the industry don't know who Barney is. >> Oh I remember, we used to joke about him when I was in alliances, we called them Barney meetings. You got a good meeting with a partner, you'd all talk and nothing would happen. >> You guys do not have a Barney deal with SAP, it's pretty deep across the board, SAP has good relationships, I got to say, they tend to do really, really good. They're either in or they're not, it's pretty obvious. Thank you Jason, so much. Jason Kotsaftis, who's the senior director of the database solutions group with Dell EMC joining us for a special three day coverage of Sapphire now from our studio. Great week, we had Informatica World in San Francisco, Google IO going on today as well, we've got live coverage today with Rob Hove, also VeeamOn is in New Orleans, Dave Vellante is there, and I'm in SAP Sapphire. A lot of coverage for events for the Cube, stay with us more for live coverage after this short break. (techno music)

the queue presents on the ground here's your host John furrier hi everyone I'm John furrow it still can angle the cube we're here in San Francisco the ritz-carlton for the exclusive coverage of Amazon Web Services AWS is big announcement with VMware CEO Pat Cal singer with the CEO of Amazon Web Start sandy chasse a year on the big announcement of VMware managing a cloud on Amazon a lot of good stuff and our next guest is Terry wise who's the vice president of global alliances great to see you good to see you John thanks for having us so you're the man I'm at bout town and he came on stage we delivered a great performance kind of humbly like he always is but this is a really big deal and you guys obviously get learning on the public cloud but this is like you know almost sweeping the double header you know game one you win the public cloud game to enterprise cloud is pretty much in your back pocket with the size of VMware you got to be happy with this deal yeah we're very pleased with it I mean if you look at it we don't look at it in the terms you just articulated it certainly entertaining but we really look at it is how we're gonna best serve customers and at the beginning at the end of the day this all came about you know really by customer demand you heard both Andy and Pat talk about it enterprise customers have been talking to us for years hey we want to run these workloads across multiple environments help make us help make that happen and now is the right time in place and the right marketing conditions to make that yeah yeah tongue-in-cheek side nice nice political answer on the Amazon front but but in reality we've been covering both Amazon and VMware both in a very deep way over the past years and I was questioning myself why is Andy Jesse coming to San Francisco to announce a deal with VMware it seems like VMware is groping a lot of criticism on the false starts of the cloud I obviously knew something big was going on so I felt that but this my question but you're innovating so much at Amazon I slowed down to go work with VMware obviously it's the customers talk about the customer impact because this is important it's not that you guys are straying from the vision of AWS which is in the cloud a lot of innovation sets the services is this just another service for AWS well it's another service but it's a very different service you know to your point this is really gonna accelerate customer adoption then we're gonna make it easier for enterprise customers to move to the public cloud environment because they can leverage the same software licenses skill sets and tools that they've used to virtualize and build private clouds so now naturally extends in the V AWS environment and it should help everybody move faster and get all the goodness and the benefits of the cloud much quicker so you have two customers on there on the stage one was Western Digital they got a huge integration it's interesting the use case for him was analytics yes so that's an Amazon benefit tutor so it's not just VMware so the deal is VMware customers get to run the VMware stuff on to Amazon so you give them a lifeline for their business models Raghu was alluding to ours being more specific this allows them to preserve their licenses as well as give their customers a bridge to the future but the reality is there's a ton of services on the Amazon side that they're going to take advantage of it's not just they're gonna get Amazon they're naturally gonna use what services do you guys see the VMware customers using the most oh that's a great question and I think I mean it really runs the gamut if you look at you know analytics for sure I mean that's a no-brainer if you look at more of the innovation use cases that are happening around IOT the things that you know don't fit night they use cases that don't fit nicely into kind of your private data center because of the constraints that you have their Big Data obviously the variable kinds of workloads massive amounts of storage all that data that's coming off these IOT centers has to go somewhere that's three redshift I mean all of these things are just natural extension so you have to be completely candid I have a hard time thinking of any that would not you know be an extension to the because Dave Olave says there's a lot of cloud native agility and innovation coming on Amazon how is that going to connect into the VMware so the customers just say hey I'm a VMware customer I'm now gonna use vCenter and I got all my comfortable dashboarding and tooling and stacks technology of VMware mm-hmm now I go to Amazon I just plug into Amazon services directly yes I'll have an AWS account that's gonna spin up the AWS native services will run those alongside the VMware offering and through V Center and the management tools you leverage our API is into cloud wash logs and all of our different management functionality so to get a single view across that integrated landscape so the number one question I had coming into today was why it's Andy Jesse coming to San Francisco so in your own words how would you describe the magnitude of this deal for both AWS and for VMware but certainly you know perhaps the most unique deal we've done we've done a lot of strategic alliances we announced one last year at this time with Accenture that's one step shy of a joint venture that's been a big deal you know we've got a number of others we just announced one with sa P a few weeks ago here in San Francisco around the BW for Hana launch but in comparison in Mississippi you know obviously a big deal and the enterprise adoption has been up - can you comment on any color around uptake with the enterprises you know prior and visa V this announcement I'm sure it's gonna be a lot more this is an on-ramp of three million customers but in general Amazon was already winning in the enterprise correct yeah I mean the fastest-growing segments for us clearly are the enterprise and public sector I want to make sure we conclude public sector in there it's probably the first time in a series of Carlton great great doing a great job they're probably the first time in history of the IT world that the public sector in many cases is moving faster than the private sector it's one of my favorite stories to tell and yeah I noticed on the on the on the region map you had a gov cloud on there that is the public sector cloud so VMware customers in public sector can tap into that is that similar before it is on the roadmap to support our Dell cloud initiative you know I think that'll come in a kind of phase two but absolutely and we're finding - is most of the government's we're working with now government agencies don't require gov cloud they want you want to run in our public cloud because it's equally secure more secure more capacity more flexibility more choice Terry thanks so much for coming on sharing your thoughts here at the exclusive announcement in a nutshell what's the big takeaway for AWS folks customers and VMware customers what's the key message that you'd like this decision here yeah I think you know today we're you know even more relevant than we were yesterday in terms of the ability to actually serve at enterprise customers full suite of workloads faster more innovative and cost-effective awesome great thanks so much appreciate your time John Ferrier here in San Francisco the risk call for the exclusive Amazon Web Services in VMware big partnership thanks for watching [Music]