>> Live from Toronto Canada, it's The Cube, covering Global Cloud and Blockchain Summit 2018, brought to you by The Cube. >> Hello, everyone welcome back to The Cube's live coverage here in Toronto for the first Global Cloud and Blockchain Summit in conjunction with the Blockchain futurist happening this week it's run. I'm John Fourier, my cohost Dave Vellante, we're here with Cube alumni, Bradley Rotter, pioneer Blockchain investor, seasoned pro was there in the early days as an investor in hedge funds, continuing to understand the impacts of cryptocurrency, and its impact for investors, and long on many of the crypto. Made some great predictions on The Cube last time at Polycon in the Bahamas. Bradley, great to see you, welcome back. >> Thank you, good to see both of you. >> Good to have you back. >> So I want to just get this out there because you have an interesting background, you're in the cutting edge, on the front lines, but you also have a history. You were early before the hedge fund craze, as a pioneer than. >> Yeah. >> Talk about that and than how it connects to today, and see if you see some similarities, talk about that. >> I actually had begun trading commodity futures contracts when I was 15. I grew up on a farm in Iowa, which is a small state in the Midwest. >> I've heard of it. >> And I was in charge of >> Was it a test market? (laughing) >> I was in charge of hedging our one corn contract so I learned learned the mechanisms of the market. It was great experience. I traded commodities all the way through college. I got to go to West Point as undergrad. And I raced back to Chicago as soon as I could to go to the University of Chicago because that's where commodities were trading. So I'd go to night school at night at the University of Chicago and listen to Nobel laureates talk about the official market theory and during the day I was trading on the floor of the the Chicago Board of Trade and the Chicago Mercantile Exchange. Grown men yelling, kicking, screaming, shoving and spitting, it was fabulous. (laughing) >> Sounds like Blockchain today. (laughing) >> So is that what the dynamic is, obviously we've seen the revolution, certainly of capital formation, capital deployment, efficiency, liquidity all those things are happening, how does that connect today? What's your vision of today's market? Obviously lost thirty billion dollars in value over the past 24 hours as of today and we've taken a little bit of a haircut, significant haircut, since you came on The Cube, and you actually were first to predict around February, was a February? >> February, yeah. >> You kind of called the market at that time, so props to that, >> Yup. >> Hope you're on the right >> Thank you. >> side of those shorts >> Thank you. >> But what's going on? What is happening in the capital markets, liquidity, why are the prices dropping? What's the shift? So just a recap, at the time in February, you said look I'm on short term bear, on Bitcoin, and may be other crypto because all the money that's been made. the people who made it didn't think they had to pay taxes. And now they're realizing, and you were right on. You said up and up through sort of tax season it's going to be soft and then it's going to come back and it's exactly what happened. Now it's flipped again, so your thoughts? >> So my epiphany was I woke up in the middle of the night and said oh my God, I've been to this rodeo before. I was trading utility tokens twenty years ago when they were called something else, IRUs, do you remember that term? IRU was the indefeasible right to use a strand of fiber, and as the internet started kicking off people were crazy about laying bandwidth. Firms like Global Crossing we're laying cable all over the ocean floors and they laid too much cable and the cable became dark, the fiber became dark, and firms like Global Crossing, Enron, Enron went under really as a result of that miss allocation. And so it occurred to me these utility tokens now are very similar in characteristic except to produce a utility token you don't have to rent a boat and lay cable on the ocean floor in order to produce one of these utility tokens, that everybody's buying, I mean it takes literally minutes to produce a token. So in a nutshell it's too many damn tokens. It was like the peak of the internet, which we were all involved in. It occurred to me then in January of 2000 the market was demanding internet shares and the market was really good at producing internet shares, too many of them, and it went down. So I think we're in a similar situation with cryptocurrency, the Wall Street did come in, there were a hundred plus hedge funds of all shapes and sizes scrambling and buying crypto in the fall of last year. It's kind of like Napoleon's reason for attacking Russia, seemed like a good idea at the time. (laughing) And so we're now in a corrective phase but literally there's been too many tokens. There are so many tokens that we as humans can't even deal with that. >> And the outlook, what's the outlook for you? I mean, I'll see there's some systemic things going to be flushed out, but you long on certain areas? What do you what do you see as a bright light at the end of the tunnel or sort right in front of you? What's happening from a market that you're excited about? >> At a macro scale I think it's apparent that the internet deserves its own currency, of course it does and there will be an internet currency. The trick is which currency shall that be? Bitcoin was was a brilliant construct, the the inventor of Bitcoin should get a Nobel Prize, and I hope she does. (laughing) >> 'Cause Satoshi is female, everyone knows that. (laughing) >> I got that from you actually. (laughing) But it may not be Bitcoin and that's why we have to be a little sanguine here. You know, people got a little bit too optimistic, Bitcoin's going to a hundred grand, no it's going to five hundred grand. I mean, those are all red flags based on my experience of trading on the floor and investing in hedge funds. Bitcoin, I think I'm disappointed in Bitcoins adoption, you know it's still very difficult to use Bitcoin and I was hoping by now that that would be a different scenario but it really isn't. Very few people use Bitcoin in their daily lives. I do, I've been paying my son his allowance for years in Bitcoin. Son of a bitch is rich now. (laughing) >> Damn, so on terms of like the long game, you seeing the developers adopted a theory and that was classic, you know the decentralized applications. We're here at a Cloud Blockchain kind of convergence conference where developers mattered on the Cloud. You saw a great developer, stakeholders with Amazon, Cloud native, certainly there's a lot of developers trying to make things easier, faster, smarter, with crypto. >> Yup. >> So, but all at the same time it's hard for developers. Hearing things like EOS coming on, trying to get developers. So there's a race for developer adoption, this is a major factor in some of the success and price drops too. Your thoughts on, you know the impact, has that changed anything? I mean, the Ethereum at the lowest it's been all year. >> Yup. Yeah well, that was that was fairly predictable and I've talked about that at number of talks I've given. There's only one thing that all of these ICOs have had in common, they're long Ethereum. They own Ethereum, and many of those projects, even out the the few ICO projects that I've selectively been advising I begged them to do once they raised their money in Ethereum is to convert it into cash. I said you're not in the Ethereum business, you're in whatever business that you're in. Many of them ported on to that stake, again caught up in the excitement about the the potential price appreciation but they lost track of what business they were really in. They were speculating in Ethereum. Yeah, I said they might as well been speculating in Apple stock. >> They could have done better then Ethereum. >> Much better. >> Too much supply, too many damn tokens, and they're easy to make. That's the issue. >> Yeah. >> And you've got lots of people making them. When one of the first guys I met in this space was Vitalik Buterin, he was 18 at the time and I remember meeting him I thought, this is one of the smartest guys I've ever met. It was a really fun meeting. I remember when the meeting ended and I walked away I was about 35 feet away and he LinkedIn with me. Which I thought was cute. >> That's awesome, talk about what you're investing-- >> But, now there's probably a thousand Vitalik Buterin's in the space. Many of them are at this conference. >> And a lot of people have plans. >> Super smart, great ideas, and boom, token. >> And they're producing new tokens. They're all better improved, they're borrowing the best attributes of each but we've got too many damn tokens. It's hard for us humans to be able to keep track of that. It's almost like requiring a complicated new browser download for every website you went to. We just can't do that. >> Is the analog, you remember the dot com days, you referred to it earlier, there was quality, and the quality lasted, sustained, you know, the Amazon's, the eBay's, the PayPal's, etc, are there analogs in this market, in your view, can you sniff out the sort of quality? >> There are definitely analogs, I think, but I think one of the greatest metrics that we can we can look at is that utility token being utilized? Not many of them are being utilized. I was giving a talk last month, 350 people in the audience, and I said show of hands, how many people have used a utility token this year? One hand went up. I go, Ethereum? Ethereum. Will we be using utility tokens in the future? Of course we will but it's going to have to get a whole lot easier for us humans to be able to deal with them, and understand them, and not lose them, that's the big issue. This is just as much a cybersecurity play as it is a digital currency play. >> Elaborate on that, that thought, why is more cyber security playing? >> Well, I've had an extensive background in cyber security as an investor, my mantra since 9/11 has been to invest in catalyze companies that impact the security of the homeland. A wide variety of security plays but primarily, cyber security. It occurred to me that the most valuable data in the world used to be in the Pentagon. That's no longer the case. Two reasons basically, one, the data has already been stolen. (laughing) Not funny. Two, if you steal the plans for the next generation F39 Joint Strike Force fighter, good for you, there's only two buyers. (laughing) The most valuable data in the world today, as we sit here, is a Bitcoin private key, and they're coming for them. Prominent Bitcoin holders are being hunted, kidnapped, extorted, I mean it's a rather extraordinary thing. So the cybersecurity aspect of if all of our assets are going to be digitized you better damn well keep those keys secure and so that's why I've been focused on the cybersecurity aspect. Rivets, one of the ICOs that I invested in is developing software that turns on the power of the hardware TPM, trusted execution environment, that's already on your phone. It's a place to hold keys in hardware. So that becomes fundamentally important in holding your keys. >> I mean certainly we heard stories about kidnapping that private key, I mean still how do you protect that? That's a good question, that's a really interesting question. Is it like consensus, do you have multiple people involved, do you get beaten up until you hand over your private key? >> It's been happening. It's been happening. >> What about the security token versus utility tokens? A lot of tokens now, so there's yeah, too many tokens on the utility side, but now there's a surge towards security tokens, and Greg Bettinger wrote this morning that the market has changed over and the investor side's looking more and more like traditional in structures and companies, raising money. So security token has been a, I think relief for some people in the US for sure around investing in structures they understand. Is that a real dynamic or is that going to sustain itself? How do you see security tokens? >> And we heard in the panel this morning, you were in there, where they were predicting the future of the valuation of the security tokens by the end of the year doubling, tripling, what ever it was, but what are your thoughts? >> I think security tokens are going to be the next big thing, they have so many advantages to what we now regard as share certificates. My most exciting project is that I'm heavily involved in is a project called the Entanglement Institute. That's going to, in the process of issuing security infrastructure tokens, so our idea is a public-private partnership with the US government to build the first mega quantum computing center in Newport, Rhode Island. Now the private part of the public-private partnership by the issuance of tokens you have tremendous advantages to the way securities are issued now, transparency, liquidity. Infrastructure investments are not very liquid, and if they were made more liquid more people would buy them. It occurred to me it would have been a really good idea if grandpa would have invested in the Hoover Dam. Didn't have the chance. We think that there's a substantial demand of US citizens that would love to invest in our own country and would do so if it were more liquid, if it was more transparent, if the costs were less of issuing those tokens. >> More efficient, yeah. >> So you see that as a potential way to fund public infrastructure build-outs? >> It will be helpful if infrastructure is financed in the future. >> How do you see the structure on the streets, this comes up all the time, there's different answers to this. There's not like there's one, we've seen multiple but I'm putting a security token, what am i securing against, cash flow, equity, right to convert to utility tokens? So we're starting to see a variety of mechanisms, 'cause you have to investor a security outcome. >> Yeah, so as an investor, what do you look for? >> Well, I think it's almost limitless of what these smart securities, you know can be capable of, for example one of the things that were that we're talking with various parts of the government is thinking about the tax credit. The tax credit that have been talked about at the Trump administration, that could be really changed on its head if you were able to use smart securities, if you will. Who says that the tax credit for a certain project has to be the same as all other projects? The president has promised a 1.5 trillion dollar infrastructure investment program and so far he's only 1.5 trillion away from the goal. It hasn't started yet. Wilbur Ross when, in the transition team, I had seen the white paper that he had written, was suggesting an 82% tax credit for infrastructure investment. I'm going 82%, oh my God, I've never. It's an unfathomable number. If it were 82% it would be the strongest fiscal stimulus of your lifetime and it's a crazy number, it's too big. And then I started thinking about it, maybe an 82% tax credit is warranted for a critical infrastructure as important as quantum computing or cyber security. >> Cyber security. >> Exactly, very good point, and maybe the tax credit is 15% for another bridge over the Mississippi River. We already got those. So a smart infrastructure token would allow the Larry Kudlow to turn the dial and allow economic incentive to differ based on the importance of the project. >> The value of the project. >> That is a big idea. >> That is a big idea. >> That is what we're working on. >> That is a big idea, that is a smart contract, smart securities that have allocations, and efficiencies, and incentives that aren't perverse or generic. >> It aligns with the value of the society he needs, right. Talk about quantum computing more, the potential, why quantum, what attracted you to quantum? What do you see as the future of quantum computing? >> You know, you don't you don't have to own very much Bitcoin before what wakes you up in the middle of the night is quantum computing. It's a hundred million times faster than computing as we know it today. The reason that I'm involved in this project, I believe it's a matter of national security that we form a national initiative to gain quantum supremacy, or I call it data supremacy. And right now we're lagging, the Chinese have focused on this acutely and are actually ahead, I believe of the United States. And it's going to take a national initiative, it's going to take a Manhattan Project, and that's that's really what Entanglement Institute is, is a current day Manhattan Project partnering with government and three-letter agencies, private industry, we have to hunt as a pack and focus on this or we're going to be left behind. >> And that's where that's based out of. >> Newport, Rhode Island. >> And so you got some DC presence in there too? >> Yes lots of DC presence, this is being called Quantum summer in Washington DC. Many are crediting the Entanglement Institute for that because they've been up and down the halls of Congress and DOD and other-- >> Love to introduce you to Bob Picciano, Cube alumni who heads up quantum computing for IBM, would be a great connection. They're doing trying to work their, great chips to building, open that up. Bradley thanks for coming on and sharing your perspective. Always great to see you, impeccable vision, you've got a great vision. I love the big ideas, smart securities, it's coming, that is, I think very clear. >> Thank you for sharing. >> Thank you. The Cube coverage here live in Toronto. The Cube, I'm John Furrier, Dave Vellante, more live coverage, day one of three days of wall-to-wall coverage of the Blockchain futurist conference. This is the first global Cloud Blockchain Summit here kicking off the whole week. Stay with us for more after this short break.

>> Announcer: Live from Orlando, Florida, it's theCUBE, covering Grace Hopper's Celebration of Women in Computing, brought to you by SiliconANGLE Media. >> Welcome to day one of the Grace Hopper Conference here in Orlando, Florida. Welcome back to theCUBE, I should say. I'm your host, Rebecca Knight, along with my co-host, Jeff Frick. We have just seen some really great keynote addresses. We had Faith Ilee from Stanford University. Melinda Gates, obviously the co-founder of the Bill and Melinda Gates Foundation. We also had Diane Green, the founder of VMware. Jeff, what are your first impressions? >> You know, I love comin' to this show. It's great to be workin' with you again, Rebecca. I thought the keynotes were really good. I've seen Diane Green speak a lot and she's a super smart lady, super qualified, changed the world of VMware. She's not always the greatest public speaker, but she was so comfortable up there. She so felt in her element. It was actually the best I'd ever seen. For me, I'm not a woman, but I'm a dad of two daughters. It was really fun to hear the lessons that some of these ladies learned from their father that they took forward. So, I was really hap-- I admit, I'm feelin' the pressure to make sure I do a good job on my daughters. >> Make sure those formative experiences are the right ones, yes. >> It's just interesting though how people's early foundation sets the stage for where they go. I thought Dr. Sue Black, who talked about the morning she woke up and her husband threatened to kill her. So, she just got out of the house with her two kids and started her journey then. Not in her teens, not in her twenties, not in college. Obviously well after that, to get into computer science and to start her tech journey and become what she's done now. Now she's saving the estate where the codebreakers were in World War II, so phenomenal story. Melinda Gates, I've never seen her speak. Then Megan Smith, always just a ton of energy. Before she was a CTO for the United States, that was with the Obama administration. I don't think she hung around as part of the Trump Administration. She brings such energy, and now, kind of released from the shackles of her public service and her own thing. Great to see her up there. It's just a terrific event. The energy that comes from, I think, a third of the people here are young women. Really young, either still in college or just out of college. Really makes for an atmosphere that I think is unique in all the tech shows that we cover. >> I completely agree. I think the energy really is what sets the Grace Hopper Celebration of Women in Computing apart from all the other conferences. First of all, there's just many more women who come to this. The age, as you noted, it's a lot lower than your typical tech conference. But, I also just think what is so exciting about this conference is that it is this incredible mix of positivity. let's get more women in here, let's figure out ways to get more women interested in computer science and really working on their journey as tech leaders. But, also really understanding what we're up against in this industry. Understanding the bro-grammar culture, the biases that are really creating barriers for women to get ahead, and actually to even enter into the industry itself. Then, also there's the tech itself, so we have these women who are talking about these cool products that they're making and different pathways into artificial intelligence and machine-learning, and what they're doing. So, it's a really incredible conference that has a lot of different layers to it. >> It's interesting, Dr. Fei-Fei Li was talking a lot about artificial intelligence, and the programming that goes into artificial intelligence, and kind of the classic Google story where you use crowdsourcing and run a bunch of photographs through an algorithm to teach it. But, she made a really interesting point in all this discussion about, is it the dark future of AI, where they take over the world and kill us all? Or, is it a positive future, where it frees us up to do more important things and more enlightened things. She really made a good point that it's, how do you write the algorithms? How are we training the computers to do what we do? Women bring a different perspective. Diversity brings a different perspective. To bake that into the algorithms up front is so, so important to shape the way the AI shapes the evolution of our world. So, I found that to be a really interesting point that she brought up that I don't think is talked about enough. People have to write the algorithms. People have to write the stuff that trains the machines, so it's really important to have a broad perspective. You are absolutely right, and I think she actually made the point even broader than that in the sense of is if AI is going to shape our life and our economy going forward-- >> Which it will, right? >> Which it will. Then, the fact that there are so few women in technology, this is a crisis. Because, if the people who are the end-users and who are going to either benefit or be disadvantaged by AI aren't showing up and aren't helping create it, then yes, it is a crisis. >> Right. And I think the other point that came up was to bake more computer science into other fields, whether it's biology, whether it's law, education. The application of AI, the application of computer science in all those fields, it's much more powerful than just computing for the sake of computing. I think that's another way hopefully to keep more women engaged. 'Cause a big part of the issue is, not only the pipeline at the lead, but there's a lot of droppage as they go through the process. So, how do you keep more of 'em involved? Obviously, if you open it up across a broader set of academic disciplines, by rule you should get more retention. The other thing that's interesting here, Rebecca. This is our fourth year theCUBE's been at Grace Hopper's since way back in Phoenix in 2014, ironically, when there was also a big Microsoft moment at that show that we won't delve back into. But, it's a time of change. We have Brenda Darden Wilkerson, the brand new president of the Anita Borg organization. Telle Whitney's stepping down and she's passing the baton. We'll have them both on. So, again, Telle's done a great job. Look what she's created in the team. But, always fun to have fresh blood. Always fun to bring in new energy, new point of view, and I'm really excited to meet Brenda. She's done some amazing things in the Chicago Public School System, and if you've ever worked in a public school district, not a really easy place to innovate and bring change. >> Right, no, of course. Yeah, so our lineup of guests is incredible this week. We've got Sarah Clatterbuck, who is a CUBE alum. We have a woman who is the founder of Roar, which is a self-defense wearable technology. We're going to be looking at a broad array of the women technologists who are leading change in the industry, but then also leading it from a recruitment and retention point of-- >> So, should be a great three days, looking forward to it. >> I am as well. Excellent. Okay, so please keep joining us. Keep your channel tuned in here to theCUBE"s coverage of the Grace Hopper Conference here in Orlando, Florida. I'm your host, Rebecca Knight, along with my co-host, Jeff Frick. We will see you back here shortly. (light, electronic music)

>> Announcer: Live from Washington D.C. it's The Cube. Covering AWS Public Sector Summit 2017. Brought to you by Amazon Web Services and its partner ecosystem. >> Hello everyone welcome to this Cube here in D.C. Washington D.C. I'm John Furrier with my cohost. For the next two days John Walls we will be discussing the government Cloud. AWS Public Sector Summit this is our live coverage on the ground. Also as you know we have been covering the event for multiple, multiple years. It's our inaugural event here in Washington D.C. No better place where there's a lot of change, a lot of action. Data lakes here are turning into data swamps. We're here to drain the data swamps. (laughing) And get that data to you. I'm John Furrier with John Walls. Again, John we're kicking off our first inaugural event. Not the first event for AWS Public Sector Summit. I think this is their seventh or eighth year doing it. Started as a small little conference. But now the full on Public Sector Summit has become I'm calling the reinvent of government. 'Cause with Health and Human Services, government agencies, education, now there's a complete change-over from the Obama administration. Really started that off by initiating more open government, more access to data. You're starting to see AWS with wins over the past few years with the CIA. The ability to stand up with government Cloud now is now reality. Amazon has done extremely well on their billions and billions of dollars they're doing. 50% growth on those kinds of numbers. Amazon is just taking down market after market. Enterprise now, in the government for a while. Just really a case of history, Amazon. >> John you were on top of this. We were talking about this earlier. You wrote about this three, four years ago. Now we're seeing this tectonic shift occur. Government's starting to say okay, we can be open to a transformative experience now that we understand it's secure, and it's valuable. It helps us provide better services, and improve our services. But again there's still some convincing to be done, right? There's not a 100% discipleship if you will amongst the government crowd. Opportunities like this kind of bring that innovation, bring that entrepreneurialism to the government mindset. It's a good opportunity. But how do you get there? How do you make that shift from the cooporate side? Everybody gets private sector. Public sector may be a little slower, a little more of a foot dragger. >> Amazon's roots, I wrote that story as you mentioned three years ago on Forbes. Kind of broke the story on Andy Jassy and AWS Amazon Web Services. He talked about the journey of Amazon Web Services, how it started as a six-page business plan. He talked about their approach. Amazon's approach from day one has always been about building blocks. One of the things that Andy Jassy and the entire team has always been about, is about listening to the customer. Jeff Bezos's ethos within Amazon has always been lower prices and shipping things faster. You apply that to technology. Lower prices of technology and faster response times, and you mentioned security. Amazon's moved from that developer centered culture to the enterprise. But really three years ago is where you start to see them really start to get a landscape into the government and get the beachhead. They want to kill a key deal against IBM and the CIA. That went to court and the judge actually ruled in favor of Amazon saying Amazon has a better product. So that was to me a seminal moment. That was a flash point. That was an inflection point. Whatever you want to call it. Since that time, they've just been bringing the Amazon Web Services business model into the government. What that is is really providing an agility, the ability to turn on, compute, stand up Cloud in a way that makes government agencies agile. We all know from looking at the history of the government, they are far from being agile. They are slower than molasses to get things done. Usually little stove pipes and fiefdoms in politics. But now when you start to bring in what Obama did in his administration, he opened up the government. That means data can now be exposed. Data from agencies, for developers. So when you start thinking about developer integration into a government environment. You're starting to see potentially innovation happening. You're seeing evidence of that. We're going to talk with Intel about their AI strategy starting from machine learning. We're now bringing technology to the government and public sector for education, health and human services. A variety of agencies can benefit from having a dev ops mindset. >> Share with me your perspective. You've got this obviously this treasure trove of an asset in public data. >> Yeah. >> That can be used to improve any number of services. At the same time you've got major security concerns, because it's that valuable. How does that square up? How does that balance out with this crowd here this week? How much of a discussion is there going to be about making sure there's a secure environment, making sure it's a protected environment, that there's compliance and governance issues that really abound. >> There's really three things right now when you talk about federal agencies going to the Cloud. One is the centralization of infrastructure governance. With the advent of Cloud, the notion of standing something up, compute and resources, is easier more than ever. For governments, you can now put your credit card down, get a prototype going, and have it in production in months. Days, weeks, months. The second thing besides centralized infrastructure is really enforcing policy. It's policy compliance. That is key because now with all the regulations one department has data that's got to be protected. You see this in health care historically, but now government same thing. Compliance of those policies. This day they can only be touched by these people. Third, automating operations at scale. To me, those are the things that Amazon can bring to the table. If they can do those three things with their partners like Foog, for instance, a startup in the ecosystem, Evident.io, Intel and others, and then Amazon, you can essentially roll out developers, develop apps. So they consumption side of the equation, the users, can get new stuff quick. But the table stakes, a lot of that under the hood technology. Centralized governance, enforcing policy compliance around the data, and Cloud operations at scale. That's really the key. >> How does it differ then from the corporate world? You're talking about things that are just as important to a brand as they are to HSS or DHS or whomever. Everybody has common concerns. Everybody has protection at the top of their mind, but he's got compliance and enforcement and all those things, validation, identification, everything applies to public just like it does public, as opposed to private. What's the difference? >> Here's my thought on this. I haven't written about this yet, but here's my thought. This is kind of where I see it. You saw the consumerization of enterprises as a big wave over the past five years, and that's going to be a run for the next 10, 20 years. We're seeing enterprise businesses providing a consumer experience for employees. Meaning my iPhone has apps on it, I want an app-like experience. I don't really want to have that specialized device because I work for a company, or a certain email account. I just want to be able to do my thing on premise in the company and then in the wild as a consumer. I should be able to watch some sports, video gaming, whatever I want to do I should be able to do that on a device and then come to work and have that work fine. That's been going on for about five years. That's got another big horizon of another 10 years plus, minimum. Consumerization of enterprise of business. That's one. What's going on in the government is really being enterprised. The government is being enterprised. Meaning it's always been the snail pace evolution. The old terminals, government employees having phones that look like relics. >> John: Right. >> There's a perception that in reality that the government just is slow, because they're so stuck on these compliance issues, security, all these risk factors really slow down the adoption of government. Consumerization is going to the business, and now the businesses is going to the government. So you start to see government really start to act like agile companies. >> A problem though, or at least I would imagine a challenge in the public space if I'm a government agency, I've got a different board of directors, right? I have congressional oversight. They have budgetary control. I am year to year. I don't have quarterly board meetings. Sometimes we get stuck in the whole appropriation process, that in itself is a whole... >> The government's always had a cover your ass mentality because a lot of appointees come in. But a lot of the people, whether they work in the state department down into the different agencies are public service. They've been in their jobs. >> 25, 30 years. >> Normally good workers, right? So even though you might have change at the top, at the quote elected official level of the different department and agencies, in general people are trying to do a good thing. So that's why it slows down. It's a moving train relative to I don't want to get fired mentality. Everyone's always been concerned with government around leaking data, compliance, oh my god something went wrong. They're very conservative. That's why I'm saying they've been slower than business. Consumers go super fast, businesses now are going faster because of the consumer trend, and now that trend is coming into the government, where again scale, agility, governance, all have to be big. Those building blocks have to be big. Then the goodness for the developers is really where the action is. Because at the end of the day, there is a developer community out there take could take data from different agencies, say Health and Human Services, and take that broad data and create a mash up to say hey I'm going to provide some services to the community on where the best place to get medicine, or how to optimize medicare so that the spending can be more efficient. Who should be doing this or that? There's lot of cases where with the data being exposed government innovation really thrives. That's going to come from the developer community. That creativity cannot be realized without exposing the data, without creating a massive amounts of compute. And goodness, like what Amazon have on their stack. >> Is there any kind of, I don't want to say clash of culture, but again as you said, in terms of government, we think about a more methodical approach, right? And that might come with experience. The worker has maybe been in that position a little bit longer as opposed to the private sector where you're getting maybe recent college graduates who are coming in with different ideas, different approaches, different mindsets. So how about that mash up, just in terms of being open to new approaches, and being open to new ideas, and having the confidence to embrace them as opposed to a startup mentality that obviously is very, very different. >> It's the same kind of trends we see in the dev ops movement. Culturally it always starts with the organization. But at the end of the day, if people have confidence that they're not going to get fired, or that the risk of whatever their issues are, whether it's data, or a certain kind of enforcement around policies, if that's solved, then you're now in an environment where everything's been encapsulated, so then more freedom to do things. I think that's step number one. Just getting it out there, letting people know that it's reliable and secure and has scale and the elasticity. Because the beautiful thing of the business model of the Cloud is it's very elastic. You buy as you go. It's not a big buy up front. This is where the government actually can save money. From a tax payer perspective, the U.S. government can be highly efficient with Cloud. So there's an economic impact, not just the technology and privacy and governance issues. >> You hit on this in your opening comments about Obama and 2.0. Now we have the Trump administration in office. That's provided certainly a change in how business is being done in Washington in a number of ways. I live here. (laughing) Believe me we see it on a regular basis. But because of that shift in administration in general, how do companies like Intel and AWS and Riverbed we're going to see here a little bit later on, some other folks, how did they adapt in that environment when the rules of engagement appear to be maybe a bit cloudier right now? >> Well I think the thing that folks like Intel which huge AI focus, they've always been an enabler. You look at, I look at these companies like Intel, like Amazon itself, Foog, Riverbed, Truva, these are the kinds of companies out there that are creating enabling technologies. Meaning you want to enable growth and opportunity and not foreclose the future. That's really the job of most of those. Intel in particular has always been that bellwether innovator. They create technology. We've had Moore's law, that's changed the landscape over the years. They have an AI focus over 5G, network transformation, smart cities, autonomous vehicles. Intel has now a fabric of technology that's taken to the next level. Obviously Intel and AWS work together. And things like smart cities. This is a huge issue. Talk about being consumerized. I mentioned consumerization of IT and business, and business now impacting government. When you start getting the consumerization of government, you're talking about Uber, Airbnb, Lyft, autonomous vehicles. Who the hell sets the policies for those? There's going to be a governance involved on the societal impact at the smart cities level. Meaning that's a government issue. So who determines the policy and risk for the citizen of the community? The cities and towns are going to monitor which side of the street the cars drive on. Are they going to monitor cyber bullying and cyber security? Are they going to monitor the kind of healthcare that's being provided to the front door of people's homes? Are they going to monitor the AI? There are open questions. This is why I call the gov Cloud the tip of the iceberg. Because these things are going to open up a slew of societal challenges as well as technology. >> This is why I'm looking forward to looking and talking to the array of guests that we have. Because you've just opened up this Pandora's box of questions. Government is as you said has a C.Y.A. mentality. Always has, and should. Frankly, to a certain degree. There has to be some process here. It can't just go willy-nilly. As technology races to innovate, how does government maintain that pace? >> Government just has to be agile. >> John: But that's almost oxymoronic in some way. >> The change in the landscape certainly with the Trump administration from Obama has been like night and day. You got a president with no scandals at all in Obama, who's done a lot of great things. Trump who's got the mojo saying hey I'm going to drain the swamp, all that bravado. He's in a trainwreck situation here going on in D.C. It's kind of shaken things up. I think it could be a catalyst opportunity. One of the things that's interesting is that you look at education and health care, for instance. Forget government for a minute. Really impactful human civilization issues. Health and human services can be completely transformed by technology. Education to me seems like a slow motion video game that's lagging. The kids are getting so much more education online, than they are in the linear analog classroom. Some people are trying to get iPads and do some things differently integrating curriculums. There's a whole disruption. I watch my kids learning, and it's like boring school that's going so slow and linear. They're online putting together, building his own motor skateboard. He's doing YouTube. He's essentially in a robotics club at home from YouTube videos. So you're seeing the eLearning impacting education. What does that mean for education? That means they got to be more competitive. At the end of the day the competitiveness of the groups within public sector have to step up their game. And the only way they're going to do that is build better apps. And apply what they've got to the people they're targeting and deliver it better, faster, cheaper than before. That is why Amazon is poised in my opinion to do extremely well. >> Amazon being a global brand, some of these, many of these companies with international footprints are they bringing back experiences from developing countries who maybe don't have that education infrastructure in place and are leapfrogging to the technology, being able to bring back these kinds of lessons to the united States? >> You know John you and I both love golf. And we talk golf all the time. I'll use the golf analogy here for the golfers out there. Non-golfers I'm sorry. It's like playing with old clubs. Someone comes up and starts winning everything 'cause they've got big fat driver, get the new technology. It kind of depends. It depends what your legacy is. A lot of countries, your question about international, have no infrastructure and all of a sudden when they stand up these 3G, 4G, 5G LTE towers they have full connectivity. They've got better connectivity wirelessly than the third nation, than us. It all comes down to the legacy and the baggage, and that is why I see the transformation really being on the Cloud because the U.S. public sector in North America they've got so much legacy baggage. It's slowing them down. It's anchoring them down. >> John: Right. >> They got to unleash that, and it's going to take a progressive mentality. It's going to take someone saying let's get the civil liberties of our citizens nailed down. Let's deliver better services. More expensive every day, faster, and better. That's the Amazon way in my opinion. That's why they've been doing well in the startup world. That's why they're now doing well in the enterprise. That's the secret to their success. Before we jump into our first guest of the day, they're coming up in just a few moments here. What's your, if you have two or three curiosity points or questions that you'd like to explore over the next day and a half with our guests, what would those be? >> To me, I've been involved in public sector in my career, in previous jobs. So I kind of get a sense of the moving parts. I don't think anyone would argue in public sector we want technology. I think to me it's how to get it done. Question of how to get it operationalized. To me what I'm looking for is how decisions get made, how organizational structures are changing to make decisions that are more dev ops oriented. And how the transformation of the process of deploying and requiring the technology. 'Cause that's really the key. The disruption of the business model of Cloud, renting versus buying. Then two, how those decisions get made. My questions will be all about not only the vision and the road map of what the technology impact is, but how does the reality play out? I think that's the key there. I also want to take a minute John, if you don't mind, to thank our sponsors. >> John: Absolutely. >> Without our sponsors, The Cube would not be able to be allowed to go to these events because they're expensive to run. I want to thank our sponsors. We get to do our good work thanks to the sponsorship support. Our business model's sponsorship generated. We appreciate that. I want to give a shout out to AWS as a main sponsor, with Intel. I want to thank Intel. Intel's doing some great stuff with AI. Again, across multiple sectors of the business. 5G, network transformation, Cloud, et cetera. Riverbed, I want to thank Riverbed, give a shout out. Foog. Who's really taking agencies to the Cloud one of the things I talked about. And Truva. I want to thank those guys for putting the business model in the Cloud together with Amazon here in The Cube. Thanks to the sponsors. Go check them out. Tell them we sent you. Get a 10% discount on all their products and services. (laughing) Only kidding. >> Time out on that. That was just kind of a joke. (laughing) >> Alright John. >> John: Here we go. We're off and running. >> Alright we'll be back with more live coverage of AWS Public Sector after this short break. (electronic music)