>>AWS public sector summit here in person in Washington, D. C. For two days live. Finally a real event. I'm john for your host of the cube. Got a great guest Howard Levinson from data bricks, regional vice president and general manager of the federal team for data bricks. Uh Super unicorn. Is it a decade corn yet? It's uh, not yet public but welcome to the cube. >>I don't know what the next stage after unicorn is, but we're growing rapidly. >>Thank you. Our audience knows David bricks extremely well. Always been on the cube many times. Even back, we were covering them back when big data was big data. Now it's all data everything. So we watched your success. Congratulations. Thank you. Um, so there's no, you know, not a big bridge for us across to see you here at AWS public sector summit. Tell us what's going on inside the data bricks amazon relationship. >>Yeah. It's been a great relationship. You know, when the company got started some number of years ago we got a contract with the government to deliver the data brooks capability and they're classified cloud in amazon's classified cloud. So that was the start of a great federal relationship today. Virtually all of our businesses in AWS and we run in every single AWS environment from commercial cloud to Govcloud to secret top secret environments and we've got customers doing great things and experiencing great results from data bricks and amazon. >>The federal government's the classic, I call migration opportunity. Right? Because I mean, let's face it before the pandemic even five years ago, even 10 years ago. Glacier moving speed slow, slow and they had to get modernized with the pandemic forced really to do it. But you guys have already cleared the runway with your value problems. You've got lake house now you guys are really optimized for the cloud. >>Okay, hardcore. Yeah. We are, we only run in the cloud and we take advantage of every single go fast feature that amazon gives us. But you know john it's The Office of Management and Budget. Did a study a couple of years ago. I think there were 28,000 federal data centers, 28,000 federal data centers. Think about that for a minute and just think about like let's say in each one of those data centers you've got a handful of operational data stores of databases. The federal government is trying to take all of that data and make sense out of it. The first step to making sense out of it is bringing it all together, normalizing it. Fed aerating it and that's exactly what we do. And that's been a real win for our federal clients and it's been a real exciting opportunity to watch people succeed in that >>endeavour. We have another guest on. And she said those data center huggers tree huggers data center huggers, majority of term people won't let go. Yeah. So but they're slowly dying away and moving on to the cloud. So migrations huge. How are you guys migrating with your customers? Give us an example of how it's working. What are some of the use cases? >>So before I do that I want to tell you a quick story. I've I had the luxury of working with the Air Force Chief data officer Ailene vedrine and she is commonly quoted as saying just remember as as airmen it's not your data it's the Air Force's data. So people were data center huggers now their data huggers but all of that data belongs to the government at the end of the day. So how do we help in that? Well think about all this data sitting in all these operational data stores they're getting it's getting updated all the time. But you want to be able to Federated this data together and make some sense out of it. So for like an organization like uh us citizenship and immigration services they had I think 28 different data sources and they want to be able to pull that data basically in real time and bring it into a data lake. Well that means doing a change data capture off of those operational data stores transforming that data and normalizing it so that you can then enjoy it. And we've done that I think they're now up to 70 data sources that are continually ingested into their data lake. And from there they support thousands of users doing analysis and reports for the whole visa processing system for the United States, the whole naturalization environment And their efficiency has gone up I think by their metrics by 24 x. >>Yeah. I mean Sandy carter was just on the cube earlier. She's the Vice president partner ecosystem here at public sector. And I was coming to her that federal game has changed, it used to be hard to get into you know everybody and you navigate the trip wires and all the subtle hints and and the people who are friends and it was like cloak and dagger and so people were locked in on certain things databases and data because now has to be freely available. I know one of the things that you guys are passionate about and this is kind of hard core architectural thing is that you need horizontally scalable data to really make a I work right. Machine learning works when you have data. How far along are these guys in their thinking when you have a customer because we're seeing progress? How far along are we? >>Yeah, we still have a long way to go in the federal government. I mean, I tell everybody, I think the federal government's probably four or five years behind what data bricks top uh clients are doing. But there are clearly people in the federal government that have really ramped it up and are on a par were even exceeding some of the commercial clients, U. S. C. I. S CBP FBI or some of the clients that we work with that are pretty far ahead and I'll say I mentioned a lot about the operational data stores but there's all kinds of data that's coming in at U S. C. I. S. They do these naturalization interviews, those are captured in real text. So now you want to do natural language processing against them, make sure these interviews are of the highest quality control, We want to be able to predict which people are going to show up for interviews based on their geospatial location and the day of the week and other factors the weather perhaps. So they're using all of these data types uh imagery text and structure data all in the Lake House concept to make predictions about how they should run their >>business. So that's a really good point. I was talking with keith brooks earlier directive is development, go to market strategy for AWS public sector. He's been there from the beginning this the 10th year of Govcloud. Right, so we're kind of riffing but the jpl Nasa Jpl, they did production workloads out of the gate. Yeah. Full mission. So now fast forward today. Cloud Native really is available. So like how do you see the the agencies in the government handling Okay. Re platform and I get that but now to do the reef acting where you guys have the Lake House new things can happen with cloud Native technologies, what's the what's the what's the cross over point for that point. >>Yeah, I think our Lake House architecture is really a big breakthrough architecture. It used to be, people would take all of this data, they put it in a Hadoop data lake, they'd end up with a data swamp with really not good control or good data quality. And uh then they would take the data from the data swamp where the data lake and they curate it and go through an E. T. L. Process and put a second copy into their data warehouse. So now you have two copies of the data to governance models. Maybe two versions of the data. A lot to manage. A lot to control with our Lake House architecture. You can put all of that data in the data lake it with our delta format. It comes in a curated way. Uh there's a catalogue associated with the data. So you know what you've got. And now you can literally build an ephemeral data warehouse directly on top of that data and it exists only for the period of time that uh people need it. And so it's cloud Native. It's elastically scalable. It terminates when nobody's using it. We run the whole center for Medicaid Medicare services. The whole Medicaid repository for the United States runs in an ephemeral data warehouse built on Amazon S three. >>You know, that is a huge call out, I want to just unpack that for a second. What you just said to me puts the exclamation point on cloud value because it's not your grandfather's data warehouse, it's like okay we do data warehouse capability but we're using higher level cloud services, whether it's governance stuff for a I to actually make it work at scale for those environments. I mean that that to me is re factoring that's not re platform Ng. Just re platform that's re platform Ng in the cloud and then re factoring capability for on uh new >>advantages. It's really true. And now you know at CMS, they have one copy of the data so they do all of their reporting, they've got a lot of congressional reports that they need to do. But now they're leveraging that same data, not making a copy of it for uh the center for program integrity for fraud. And we know how many billions of dollars worth of fraud exist in the Medicaid system. And now we're applying artificial intelligence and machine learning on entity analytics to really get to the root of those problems. It's a game >>changer. And this is where the efficiency comes in at scale. Because you start to see, I mean we always talk on the cube about like how software is changed the old days you put on the shelf shelf where they called it. Uh that's our generation. And now you got the cloud, you didn't know if something is hot or not until the inventory is like we didn't sell through in the cloud. If you're not performing, you suck basically. So it's not working, >>it's an instant Mhm. >>Report card. So now when you go to the cloud, you think the data lake and uh the lake house what you guys do uh and others like snowflake and were optimized in the cloud, you can't deny it. And then when you compare it to like, okay, so I'm saving you millions and millions if you're just on one thing, never mind the top line opportunities. >>So so john you know, years ago people didn't believe the cloud was going to be what it is. Like pretty much today, the clouds inevitable. It's everywhere. I'm gonna make you another prediction. Um And you can say you heard it here first, the data warehouse is going away. The Lake house is clearly going to replace it. There's no need anymore for two separate copies, there's no need for a proprietary uh storage copy of your data and people want to be able to apply more than sequel to the data. Uh Data warehouses, just restrict. What about an ocean house? >>Yeah. Lake is kind of small. When you think about this lake, Michigan is pretty big now, I think it's I >>think it's going to go bigger than that. I think we're talking about Sky Computer, we've been a cloud computing, we're going to uh and we're going to do that because people aren't gonna put all of their data in one place, they're going to have, it spread across different amazon regions or or or amazon availability zones and you're going to want to share data and you know, we just introduced this delta sharing capability. I don't know if you're familiar with it but it allows you to share data without a sharing server directly from picking up basically the amazon, you RLS and sharing them with different organizations. So you're sharing in place. The data actually isn't moving. You've got great governance and great granularity of the data that you choose to share and data sharing is going to be the next uh >>next break. You know, I really loved the Lake House were fairly sing gateway. I totally see that. So I totally would align with that and say I bet with you on that one. The Sky net Skynet, the Sky computing. >>See you're taking it away man, >>I know Skynet got anything that was computing in the Sky is Skynet that's terminated So but that's real. I mean I think that's a concept where it's like, you know what services and functions does for servers, you don't have a data, >>you've got to be able to connect data, nobody lives in an island. You've got to be able to connect data and more data. We all know more data produces better results. So how do you get more data? You connect to more data sources, >>Howard great to have you on talk about the relationship real quick as we end up here with amazon, What are you guys doing together? How's the partnership? >>Yeah, I mean the partnership with amazon is amazing. We have, we work uh, I think probably 95% of our federal business is running in amazon's cloud today. As I mentioned, john we run across uh, AWS commercial AWS GovCloud secret environment. See to us and you know, we have better integration with amazon services than I'll say some of the amazon services if people want to integrate with glue or kinesis or Sagemaker, a red shift, we have complete integration with all of those and that's really, it's not just a partnership at the sales level. It's a partnership and integration at the engineering level. >>Well, I think I'm really impressed with you guys as a company. I think you're an example of the kind of business model that people might have been afraid of which is being in the cloud, you can have a moat, you have competitive advantage, you can build intellectual property >>and, and john don't forget, it's all based on open source, open data, like almost everything that we've done. We've made available to people, we get 30 million downloads of the data bricks technology just for people that want to use it for free. So no vendor lock in. I think that's really important to most of our federal clients into everybody. >>I've always said competitive advantage scale and choice. Right. That's a data bricks. Howard? Thanks for coming on the key, appreciate it. Thanks again. Alright. Cube coverage here in Washington from face to face physical event were on the ground. Of course, we're also streaming a digital for the hybrid event. This is the cubes coverage of a W. S. Public sector Summit will be right back after this short break.

>>mhm. What the special cube conversation here in Palo alto, I'm john Kerry host of the cube. We're here talking about kubernetes Cloud native and all things Cloud, cloud enterprise amir Sure VP of product and morgan Stanley is with me and we are great to have you on the cube. Thanks for coming on. I appreciate you taking the time, >>appreciate it, john good to be here. You >>know, cloud Native obviously super hot right now as the edges around the corner, you're seeing people looking at five G looking at amazon's wavelength outposts you've got as you got a lot of cloud companies really pushing distributed computing and I think one of the things that people really are getting into is okay, how do I take the cloud and re factor my business and then that's one business side then, the technical side. Okay, How do I do it? Like it's not that easy. Right. So it sounds, it sounds really easy to just go to move to the cloud. This is something that's been a big problem. So I know you guys in the center of all this uh and you've got, you know, microservices, kubernetes at the core of this, take a minute to introduce the company, what you guys do then I want to get into some specific questions. >>Mhm, of course. Well, bob Sani is a startup? Silicon Valley startup and what we do is automate system configuration that's typically worked at an engineer does and take lengthy and if done incorrectly at least to a lot of errors and cost overruns and the user experience problems. We completely automate that using an Ai and ml back end so that the engineering can focus on writing code and not worry about having to tune the little pieces working together. >>You know, I love the, I was talking to a V. C on our last uh startup showcase, cloud startup showcase and uh really prominent VC and he was talking about down stack up stack benefits and he says if you're going to be a down stack um, provider, you got to solve a problem. It has to be a big problem that people don't want to deal with. So, and you start getting into some of the systems configuration when you have automation at the center of this as a table stakes item problems are cropping up as new use cases are emerging. Can you talk about some of the problems that you guys see that you solve for developers and companies, >>of course. So they're basically, they're, the problem expresses itself in a number of domains. The first one is that he who pays the bills is separate from he who consumes the resources. It's the engineers that consume the resources and the incentives are to deliver code rapidly and deliver code that works well, but they don't really care about paying the bills. And then the CFO office sees the bills and there's a disparity between the two. The reason that creates a problem, a business problem is that the developers uh, will over provision stuff, uh to make sure that everything works and uh, they don't want to get caught in the middle of the night. You know, the bill comes due at the end of the month or into the quarter and then the CFO has smoke coming out of his ears because there's been clawed overruns. Then the reaction happens to all right, let's cut costs. And then, you know, there's an edict that comes down that says everything, reduce everything by 30%. So people go across and give a haircut to everything. So what happens next to systems out of balance? There's allocation resource misallocation and uh, systems start uh, suffering. So the customers become unhappy. And ironically, if you're not provisioned correctly, Not ironically, but maybe understandably, customers start suffering and that leads to a revenue problem down the line if you have too many problems unhappy. So you have to be very careful about how you cut costs and how you apportion resources. So both the revenue side is happy and it costs are happy because it all comes down to product experience and what the customers consume. You >>know, that's something that everyone who's done. Cloud development knows, you know, whose fault is it? You know, it's this fall. But now you can actually see the services you leave a switch open or, you know, I'm oversimplifying it. But, you know, you experiment services, you can the bills can just have massive, you know, overruns and then, and then you got to call the cloud company and you gotta call the engineers and say why did you do this? You got to get a refund or or the bad one. Bad apple could ruin it for everyone as you, as you highlighted over the bigger companies. So I have to ask you mean everyone lives this. How do companies have cost overruns? Is their patterns that you see that you guys wrote software 4-1, automate the obvious ones. Is there is there are certain things that you know always happen. Are there areas that have some indications? So why do, first of all, why do companies have cloud cost overruns? >>That's a great question. And let's start with a bit of history where we came from a pre cloud world, you built your own data centers, which means that you have an upfront Capex cost and you spend the money and you were forced to live within the needs that your data center provided. You really couldn't spend anymore. That provided kind of a predictable expenditure bottle it came in big chunks. But you know what, your budget was going to be four years from now, three years from now. And you built for that with the cloud computing, Your consumption is now on on demand basis and it's api enabled. So the developer can just ask for more resources. So without any kind of tools that tell the developer here is x amount of CPU or X amount of memory that you need for this particular service, that for it to deliver the right uh, performance that for the customer. The developers incentivized to basically give it a lot more than the application needs. Why? Because the developer doesn't want to pick up service tickets. He's incentivizing delivering functionality quickly and moving on to next project, not in optimizing costs. So that creates kind of uh an agency problem that the guy that actually controls how research are consumed is not incentivized to control the consumption of these resources. And we see that across the board in every company, engineers, engineering organization is a separate organization than the financial organization. So the control place is different. The consumption place and it breaks down the patterns are over provisions. And what we want to do is give engineers the tools to consume precisely the right amount of resources for the service level objectives that they have, given that you want a transaction rate of X and the literacy rate of Why here's how you configure your cloud infrastructure. So the application delivers according to the sls with the least possible resources consumed. >>So on this tool you guys have in the software you guys have, how how do you guys go to mark with that, you target the business buyer or the developer themselves and and how do you handle the developers say, I don't want anyone looking over my shoulder. I'm gonna go, I'm gonna have a blank check to do whatever it takes, um how do you guys roll that out because actually the business benefits are significant controlling the budget, I get that. Um how do you guys rolling this out? How do people engage with you? What's your strategy? >>Right. Are there, is the application owner, is the guy that owns the PML for the application? It tends to be a VP level or a senior director person that owns a SAAS platform and he or she is responsible for delivering good products to the market and delivering good financial results to the CFO So in that person of everything is rolled up, but that person will always favor the revenue site, which means consume more resources than you need in order to maximize customer happiness, therefore faster growth and uh they do that while sacrificing the cost side. So by giving the product owner the optimization tools autonomous of optimization tools that Sandy has, we allow him or her to deliver the right experience to the customer, with the right sufficient resources and address both the performance and the cost side of equation simultaneously, >>awesome. Can you talk about the impact c I C D s having in the cloud native computing on the optimization cycle? Um Obviously, you know, shifting left for security, we hear a lot of that, you're hearing a lot of more microservices being spun up, spun down automatically. Uh I'll see kubernetes clusters are going mainstream, you start to see a lot more dynamic uh activity if you if you in these new workflows, what is the impact of these new CSC D cloud? Native computing on the optimization cycle? >>C i c D is there to enable a fast delivery of software features basically. Uh So, you know, we have a combination of get get ups where you can just pull down repositories, libraries, open source projects from left and right. And using glue code, developers can deliver functionality really quick. In fact, microservices are there in service of that capability, deliver functionality quickly by being able to build functional blocks and then through a piece you put everything together. So ci cd is just accelerates the software delivery code. Between the time the boss says, give me an application until the application team plus the devops team plus SRE team puts it out in production. Now we can do this really quickly. The problem is though, nobody optimizes in the process. So when we deliver 1.0 in six months or less, we've done zero in terms of optimization and at one point, oh, becomes a way that we go through QA in many cases, unfortunately. And it also becomes a way that we go through the optimization. The customer screams that you eyes Laghi, you know, the throughput is really slow and we tinker and tinker and tinker and by the time it typically goes through a 12 month cycle of maturation, we get that system stability in the right performance with a I and machine learning that a person has enabled. We can deliver that, we can shrink that time out considerably. In fact, uh you know what we're going to announce in q khan is something that be called Kite storm is the ability to uh install our product and kubernetes environment in roughly 20 minutes and within two days you get the results. So before you have this optimization cycle that was going on for a very long time now that it's frank down and because of Ci Cd, you know, you don't have the luxury of waiting and the system itself can become part of the way of contributing system. The system being the uh ai ml service, that the presiding deliveries can be uh part and parcel of the Ci cd pipeline, that optimizes the code and gives you the right configuration and you get to go. So >>you guys are really getting down and injecting in some uh instrumentation for metadata around key areas. That right. Is that kind of how it's working? Are you getting in there with codes going to watch? Um how was it working under the hood? Can you just give me a quick example of, you know, how this would play out and what people might expect, how it would handle, >>of course. So what the way we optimize application performance is we have to have a metric against which we measure performance. That metric is an S L O service level, objective and in a kubernetes environment, we typically tap into Prometheus, which is the metrics gathering place metrics database for kubernetes workloads and we really focus on red metrics, the rate of transactions, the error rate and the for delay or latency. So we focus on these three metrics and what we have to do is inject a small container, it's an open source container into the application work space that we call that a container. Servo. Servo interacts with Prometheus to get the metrics and then it talks to our back end to tell the M L engine what's happening and then L engine and does this analysis and comes back with a new configuration which then servo implements in a canary instance. So the Canary instances where we run our experiments and we compare it against the main line, Which the application is doing after roughly 20 generations or so. The Bellingen Learns what part of the problem space to focus on in order to optimize to deliver optimal results. And then it very quickly comes to the right set of solutions to try and it tries those inside uh inside the canary instance and when it finds the optimal solution, it gives the recommendation back to the application team or alternatively, when you have enough trust in the tiny you can ought to promote it into mainline that >>gets the learning in there is a great example of some cloud native action. I want to get into some examples with your customer, but before we get there, I want to ask you, since I have you here, if you don't mind, what is cloud native mean these days, because you know, cloud native become kind of much cloud computing, um which essentially go move to the cloud, but as people start developing in the cloud where there's real new benefits, people talk about the word cloud native, could you take a quick minute to define? What is cloud Native, Does that even mean? What does cloud native mean? >>I'll try to give you my understanding government, we could get into a bit of philosophy. Uh Yeah, that's good. But basically cloud Native means it's, your application is built for the cloud and it takes advantages of the inherent benefits that a cloud environment can give you, which means that you can grow and shrink resources on the fly, if you built your application correctly, that you can scale up and scale down, you're a number of instances very quickly and uh, everything has taken advantage of a P I S so initially that was kind of done inside of the environment. Uh AWS Ec two is a perfect example of that. Kubernetes shifted cloud native to container its workload because it allows for rapid, more, rapid deployment and even enables or it takes advantage of a more rapid development cycle as we look forward. Cloud Native is more likely to be a surplus environment where you write functions and the backend systems of the cloud service provider, just give you that capability and you don't have to worry about maintaining and managing a fleet of any sort, whether it's VMS or containers, that's where it's gonna go. Currently we are to contain our space >>so as you start getting into the service molly good land, which we've been playing with, loves that as you get into that, that's going to accelerate more data. So I gotta ask you as you get into more of this this month, I will say monitoring or observe ability, how we want to look at it. You gotta get at the data. This becomes a critical part of solving a lot of problems and also making sure the machine learning is learning the right thing. How do you view that you guys over there? Because I think everyone is like getting that cloud native and it's not hard sell to say that's all good, but we can go back, you know, the expression ships created ships and then you have shipwrecks, you know, there's always a double edged sword here. So what's the downside? If you don't get the data right? >>Uh well, so the for us, the problem is not too much data, it's lack of data. So if you don't get data right is you don't have enough data. And the places where optimization cannot be automated is where the transaction rates are slow, where you don't have enough fruit. But coming into the application and it really becomes difficult to optimize that application with any kind of speed. You have to be able to profile the application long enough to know what moves its needle and in order for you to hit the S. L. O. Targets. So it's not too much data, it's not enough data. That seems to be the problem. And there are a lot of applications that are expensive to run but have a low throughput. And I would uh in all cases actually in every customer environment that have been in, where that's been the case if the application is just over provision, if you have a low throughput environment and it's costing too much, don't use ml to solve it. That's a wrong application of the technology. Just take a sledgehammer and back your resources by 50%, see what happens. And if that thing breaks back it again, until you find the baggage point. >>Exactly for you over prison, you bang it back down again. It's like the old school now with the cloud. Take me through some examples when you guys had some success, obviously you guys are in the right area right now, you're seeing a lot of people looking at this area to do that in some cases like changing the whole data center and respect of their business. But as you get it with customers with the app side, what some successes can you share some of the use cases, what you guys are being successful, your customers can get some examples. >>Yeah. So well known financial software for midsize businesses that that does accounting. It's uh there are customer during a large fleet and this product has been around for a while. It's not a container ice product. This product runs on VMS. Angela is a large component of that. So the problem for this particular vendor has been that they run on heterogeneous fleet that the application has been a along around for a very long time. And as new instance types on AWS have come in, developers have used those. So the fleet itself is quite heterogeneous and depending on the time of the day and what kind of reports are being run by organisations, they, the mix of resources that the applications need are different. So uh when we started analyzing the stack, we started we started looking at three different tiers, we looked at the database level, we looked at the job of mid tier and we looked at the web front end. And uh one of the things that became counterproductive is that m L. Discovered that using for the mid tier using larger instances but fear of a lot for better performance and lower cost and uh typically your gut feel is to go with smaller instances and more of a larger fleet if you would. But in this case, what the ML produced was completely counter intuitive And the net result for the customer was 78% cost reduction while agency went down by 10%. So think about it that you're, the response time is less, uh 10% less but your costs are down almost 80% 78% in this case. And the other are the fact that happened in the job of mitt here is that we improve garbage collection significantly and because whenever garbage collection happens on a JV M it takes a pause and that from a customer perspective it reflects as downtime because the machines are not responding so by tuning garbage collection Andrzej VMS across this very large fleet we were able to recover over 5000 minutes and month across the entire fleet. So uh, these are some substantial savings and this is what the right application of machine learning on a large fleet can do for assess business. >>And so talk about this fleet dynamic, You mentioned several lists. How do you see the future evolving for you guys? Where are you skating to where the puck is? As the expression goes? Um obviously with server list is going to have essentially unlimited fleets potentially That's gonna put a lot of power in the hands of developers. Okay. And people building experiences, What's the next five years look like for you guys? >>So I'm looking at the product from a product perspective, the service market depends on the mercy of the cloud service provider and typically the algorithms that they use. Uh basically they keep very few instances warm for you until you're the rate of api calls goes up and they start they start uh start turning on VMS are containers for you and then the system becomes more responsive over time. One place that we can optimize the service environment is give predictability of what the cyclicality of load is. So we can pre provision those instances and warm up the engine before the loads come into the system always stays responsive. You may have noticed that some of your apps on your phone that when you start them up, they may have a start up like a minute or two. Especially if it's a it's a terror gap. What's happening in those cases that you're starting an api calls goes in containers being started up for you to start up that instance, not enough of our warm to give you that rapid response. And that can lead to customer churn. So by by analyzing what the load on the overall load of the system is and pre provision the system. We can prevent the downtime uh prevent the lag to start up black on the downside. Which when you know when the usage goes down, it doesn't make sense to keep that many instances up. So we can talk to the back in infrastructure and the commission of those VMS in order to make to prevent cost creeps basically. So that's one place that we're thinking about extending our technology. >>So it's like, it's like the classic example where people say, oh during black monday everyone searches to do e commerce. You guys are thinking about it on A level that's a user centric kind of use case where you look at the application and be smart about what the expectation is on any given situation and then flex the resources on that. Is that right? That by getting right? So if it's your example, the app is a good one. If I wanted to load fast, that's the expectation. It better load fast. >>Yes, that's exactly but more romantic. So I use valentine's day and flowers my example. But you know, it doesn't have to be annual cycles. It can be daily cycles or hourly cycles. And all those patterns are learning about by an Ml back in. >>Alright, so I gotta ask you love the, this, this this new concept because most people think auto scaling right? Because that's a server concept. Can auto scale or database. Okay. On a scale up, you're getting down to the point where, okay, we'll keep the engines warm, getting more detailed. How do you explain this versus a concept like auto scaling. Is it the same as a cousins? >>They're they're basically the way they're expressed, it's the same technology but their way there expressed is different. So uh in a cooper native environment, the H. B A is your auto scaler basically in response to the need, response more instances and you get more containers going on. What happens as services? Less environment is you're unaware of the underpinnings that do that scale up for you. But there is an auto Scaler in place that does that scale up for you. So the question becomes that we're in a stack from a customer's perspective, are you talking about if you imagine your instances we're dealing with the H. B. A. If you're managing at the functional level we have to have api calls on the service provider's infrastructure to pre warm up the engine before the load comes. >>I love I love this under the hood is kind of love new dynamics kind of the same wine, new bottle but still computer science, still coding, still cool and relevant to make these experiences great. Thanks for coming on this cube conversation. I really appreciate it. Take a minute to put a plug in for the company. What are you guys doing in terms of status funding scale employees, what are you looking for? And if someone's watching this and there should be a customer of you guys, what what's, what's, what's going on in their world? What tells them that they need to be calling you? >>Yeah, so we're serious. Dave we've had the privilege of uh, our we've been privileged by having a very good success with large enterprises. Uh, if you go to our website, you'll see the logos of who we have, we will be at Q khan and there were going to be actively targeting the mid market or smaller kubernetes instances, as I mentioned, it's gonna take about 20 minutes to get started and we'll show the results in two hours. And our goal is for our customers to deliver the best user experience in terms of performance, reliability. Uh, so that they, they delight their customers in return and they do so without breaking the bank. So deliver excellent products, do it at the most efficient way possible, deliver a good financial results for your stakeholders. This is what we do. So we encourage anybody who is running a SAS company to come and take a look at us because we think we can help them and we can accelerate there. The growth at the lower cost >>and the last thing people need is have someone coming breathing down their necks saying, hey, we're getting overcharged. Why are you guys screwing up when they're not? They're trying to make a great experience. And I think this is kind of where people really want to do push the envelope and not have to go back and revisit the cost overruns, which if it's actually a good sign if you get some cost overruns here and there because you're experimenting. But again, you don't want to get out of control. >>You don't want to be a visual like the U. S. Debt. >>Exactly. I'm here. Thank you for coming on. Great. We'll see a coupe con. The key will be there in person is a hybrid event. So uh, coupon is gonna be awesome and thanks for coming on the key. Appreciate it. >>John is a pleasure. Thank you for having me on. >>Okay. I'm john fryer with acute here in Palo alto California remote interview with upsetting hot startup series. I'm sure they're gonna do well in the right spot in the market. Really well poisoned cloud Native. Thanks for watching. Yeah.

>>from >>Around the globe. It's the cube with digital coverage of IBM think 2021 brought to you by IBM. Welcome to the cubes coverage of IBM Think 2021. I'm your host lisa martin today. Have a new guest new to the cube moderate Tabla, the director of strategic partnerships for enterprise application services is joining me moderate. It's nice to have you on the program. >>Thank you lisa. Very excited to be here and hello everyone. >>So different this year. Again Virtual like last year we're going to talk about digital transformation and we saw this huge acceleration in 2020. The massive adoption of SAS applications. We want to talk though about IBM managed services for S AP applications. So before we get into that I'd love for you to be able to describe what your role is to our audience. >>Absolutely lisa. So good day everyone. I've been with IBM for over 23 years and my current role, I run the strategic alliances for IBM basically in the E. R. P. Space S. A. P. Being our primary strategic partner, I have a global team of architects and we basically look at market requirements. Talk to a lot of customers, talk to our business partner S. A. P. Obviously um you know, try to help them would come up with a solution. Well the transformation journey to the cloud and hopefully today, you know, we'll elaborate a little bit more on the exact work that we do in this space. So very happy to be here. Thank you. >>Sure. So we're going to dissect the IBM s. A. P. Relationship. I think you even worked at S. A. P. Before your 23 year tenure at IBM. So we'll get to some of that as well. But help us understand customers have so much choice each day. There is more and more interest why should a customer choose IBM as their strategic partner for this digital transformation journey. >>Well really, IBM has been in this essay p business for many, many decades. As you know Um we have many many certified people in S. A. P. close to 40,000 people actually globally. Um And we can help the clients in various aspects of their journey. So you know the typical cloud journey has four different aspects to it. Um You need the advice so you need basically systems integration services to help customers actually define the scope on, you know what they actually want to either upgrade, bring it to current as well as you know what workloads they want to move to the cloud. We can help customers with our Systems integration services called the Global Business Business Services in IBM we can help them with their entire planning, we can help them with the actual move to the cloud. So IBM offers a whole different variety of services for migration or not only to see ASAP workloads. I mean ASAP typically ends up being the heart of the workloads that any of the major customers run but surrounding SCP, there's a lot of other applications so we can help plan that entire journey for advice and then move it as well as in the interim. You know, there's also another step which can be some customers. They need to build net new and you know upgrade their applications to the latest technologies so we can help them with that. And then once the building move is over, obviously customers need help with the actual steady state run state environment and that's where this key service that we have managed services for SCP applications helps them. So our certifications with S. A. P. And the fact that we have consultants that are certified and all these different aspects of the journey can really help your clients. The other part, I would say that IBM is really a hybrid cloud provider. So obviously we have our cloud service, the IBM cloud, but we can offer this service meeting the customer where they need to be. So we are a client centric service, so if the customer has a choice of AWS or Azure, uh we can meet them left. So this is how, you know, we can really help our customers with our expertise. I know the data point to note that, you know, 70 80 of the enterprise customers still have not moved their workloads to the cloud. So this is a space, especially with Covid, as you've seen what's happened, you know, customers now are really, really looking to accelerate the journey because it's become a necessity, It's no longer something that our Ceo and C I O can push to the right, right, this is something they have to act now. So I began with all these various services, you know, specifically good in the S A. P area. Um, and given that we've been managing these production workloads for a lot of these enterprise customers on our cloud services for many, many years, we have the experience, we can truly help them with their journey >>And as you said, that's so critical of these days. One of the things that I think we learned in 2020 is is there was no time like the present, it really became such a massive shift that for business survival, those that weren't digitized definitely were in some hot water. Talk to me. So you talked about the IBM s, a P relationship being longstanding, Can you talk to me about the different aspects of the alliance and how that helps you guys to meet customers where they are? >>Sure. Um so s. a. p. and idea, we've been strategic partners for over 46 years. That's a long time. The partnership obviously has evolved over the years and I'll talk about you know a few of the different aspects where we've been partners um you know, the alliance initially obviously started, you know, IBM is in multiple businesses as you know, we have our one of the largest systems integrators in the world from a global business services point of view as well as one of the largest application planet services providers. So that's uh you know part of the alliance then we have our server groups, the power systems that IBM has. So that's another dimension of the alliance where um you know 5 6000 plus ASAP clients even today are still running um there? S a the applications on the power systems, whether it's on premise or also in some of the cloud deployment models. Historically we also had obviously the Database DB two alliance, but now with the S. A. P. S moved to Hannah um that's kind of a little bit of a mute point. Obviously it still exists, but most of the clients are now obviously being encouraged really to adopt S. A. P. S latest S four hana from the services standpoint. The other facet, you know, is really around the cloud services. So that's really our topic today right. Um in the cloud services area we have alliances with S. A. P very very strong alliances that have existed for you know, almost a decade now. Um as I said we've been managing the production workloads for very very large customers in many different industries, their entire supply chains. HR financial systems are running on IBM either in the old traditional hosting models um or also in our cloud models for the past 10 plus years. Right as IBM has evolved, so we have made sure that we do a whole different types of certifications with S. A. P. To stay current. Um many of these certifications are done either you know every two years, some are done every year. And if anyone checks, you know, the S. A. P. Service marketplace website which is owned by S. A. P. You can see IBM listed in all these different angles as a certified provider. There isn't another provider that can claim this breath in terms of certifications that IBM has done and that's why customers can benefit either from one or two of these services that IBMS provides or obviously a combination is a single vendor if the customer needs. So, you know, we have the sex, we have the credibility, we have decades of, you know, Delivery excellence in these areas, servicing these clients. Lots of the Fortune, 100 customers actually are running. Um there? S a p workloads on the IBM systems, whether in traditional hosting or in a hybrid cloud deployment. Some cases were actually providing services for customers that run their SCP workloads on premise. So we cater to that, you know, sets of clients as well and then of course others that are purely on our cloud. Um IBM cloud as well as hyper scholars. Yeah, so long >>list of certifications, that seems to be one of the biggest differentiators that you talked about me a little bit about how things have evolved over the last 12 to 18 months. in terms of how is IBMS focus changed for hybrid cloud with S. A. P. >>Yeah, so the focus changed if you know, you know, until last year we will call the cloud and cognitive company. Um This year of course the whole company has changed and we're going through a major transformation at the moment. We are the hybrid cloud company now. And that that name change means a lot. It means a lot in the sense that it gives choices to the customer, that's what the whole mission is all about. We want to make sure that customers are consuming IBM services and the IBM wants to meet them where they want to be. So there's you know, flexibility of choices in terms of hybrid, another cloud deployment model. So most customers in the S. A. P. Area, you know, they're looking for either just a pure private cloud deployment or they're looking for public cloud deployment or a combination and some are because, you know, there? S A. P. S. Footprint sizes are so large. Think about the multinational global companies, you know, and then they operate in so many different regions of the world and their data sizes of their databases are so large. Perhaps, you know, the public cloud really isn't a good fit yet. These customers are looking to move some sort of their workloads to the cloud. So that's where this hybrid cloud helps them. Because customers, you know, 90 plus percent of the clients today are really not choosing one hyper Scaler as their deployment option. They're really looking at multiple. So because they're running their workloads not just ASAP, but everything else, you know, SCP always brings along a whole bunch of other applications like tax applications and other interfaces, homegrown applications analytics that the customers are using. So if you want to take advantage of the true hybrid cloud and the benefits of all the various um, deployments and hyper scale is available in that region. Really, the hybrid cloud strategy from IBM is a perfect fit because we give them choices of deployment. We're not saying that you have to deploy an IBM cloud. Um, we're saying you can deploy either on premise VWs as your idea of cloud. Really what makes sense? You know, best sense for the types of war clothes that the customer is looking at. So that's how the strategy for IBM has completely changed to meet the clients, you know, for what they're actually looking for. Talk to me a >>little bit about the go to market so I B M and S A P longstanding decades old relationship, A lot of certifications that you talked about. We're talking about business critical Applications, you mentioned supply chain a minute ago and I can't help but think it how supply chain has been affected in the last year. What is the good market approach with respect to providing consultation services to help customers determine? Should we migrate to what Hyper Scaler and how and when? >>Yeah, so we can help them with that? Um, so hyper hyper scale is obviously, you know, IBM has been listed for example, as the leader in Gartner 2020 and you know, there's lots of other stats that show them that IBM is a leader in application services, in consulting services, application management services as well as managed services. So these are all different, Right? And you can see us being listed as a leader either it's in Gartner or I. D. C. Or Horse or Wave. And for many reasons and you know, IBM actually has one series of pinnacle awards from S. A. P. Over the U. S. How this helps the clients really determined is that, you know, IBM obviously does a lot of studies externally. We have internal as well as external facing views of comparatives of the various hyper scholars, um you know, including Aws, Azure, G. C. P. And so on. So when a customer comes to us for asking for advice, um, and so on, we basically look at our own intellectual properties, all the analysis that has been done. And more importantly, we look at the full scope of services that the customer wants is doing. What sort of a business are there in. We have industry experts, there's E. R. P. Strategy, um, folks within IBM. So, you know, they go after a certain industry and when they, let's say, you know, they've gone after the oil and gas industry, for example, they will look at multiple customers in that particular space. So based on their experiences, we can actually define the right road map for the client to be able to help them to move their work clothes to this hybrid cloud strategy that I just mentioned. Right? So that's how we can help them because we have the expertise in that industry as well. >>And I'm curious moderate in the last year with so much flux and rapidly changing market conditions, Did you >>see any >>one or two industries in particular really leading the charge here and coming to IBM. S. A. P. For help on this transformation journey which has been accelerated by a couple of years. >>Suddenly the retail industry for sure, right. I mean in spite of the crisis, I think the retail industry did pretty well, right? Because people still have to buy stuff. Of course, the whole buying behavior change. No question. Um You and I don't know about two days of, but for me, you know, I was never a major online shopper. Oh yeah. You know, I just about everything. Um previously it used to be select things here and there, but now it's totally changed, right? So that industry certainly has accelerated. No question. We've had a lot of those coming. The other industries that I've seen. The change in the last 12, 18 months is really, for example, you know, the banking industry and so on. Um IBM basically, you know, launched a lot of services in the financial services sector for this reason. Um So those are of course transforming very fast to keep up with the market. Um and I'm sure there's others, right? But these are the two that come to mind. Yeah, >>two that have been most affected and needed to pivot so quickly. In addition to health care. Let me ask you one final question here. Before we wrap. Talk to me about the advantages of using the PMC partner managed cloud s a P license resale model. The advantages of using that and the benefits. >>Sure. Um so we, you know, so far our discussion was really focused around, you know, the various service capabilities that IBM has in terms of our capabilities for helping clients with hyper scholars and hybrid cloud. We also need to spend a little bit of time talking about the operations model. Right? So when they're running their production workloads on IBM PMC is yet another dimension. So what PMC partner managed cloud is really some very limited partnerships that s A P does And the IBM is the lead on that one in this base. What ASAP allows is the partner, which in this case is IBM to resell the ASAP software license to a customer. So IBM has the rights globally to resell the license and why is that beneficial to the client? Because now, um, IBM can actually turn around the S. A. P license and have the customer pay us in a SAS model. So it basically is now an apex model where the customer is basically paying, you know, a monthly fee as an example, so there's no upfront cost to the client and they basically pay IBM and IBM PS ASAP. So IBM is kind of holding the risk if you will on behalf of the customer, it gives customers more choices, more flexibilities, better pricing approach. So if the customer wants as an example to buy everything the full package, including systems implementation services, deployment models with choices on a cloud, whether it's IBM cloud or others as well as the license itself. IBM has this end to end capability today. We've been selling it to several clients for a few years in several geography is right. So that's the advantage behind it. >>Excellent. Thanks for breaking that down moderate and joining me today talking about what's new with I B M and S A P, the opportunities for customers to accelerate their digital transformation. We appreciate you stopping by. >>Thank you very much, lisa truly enjoyed it. Thank you. >>Good. Me too. For moderate Tabla. I'm lisa martin. You're watching the cubes coverage of IBM think 2021. >>Mm.

>>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 back to the cubes. Virtual coverage of VM World 2020 Virtual I'm John for your host of the Cube, our 11th year covering V emeralds. Not in person. It's virtual. I'm with my coast, Dave. A lot, of course. Ah, guest has been on every year since the cubes existed. Sanjay Putin, who is now the chief operating officer for VM Ware Sanjay, Great to see you. It's our 11th years. Virtual. We're not in person. Usually high five are going around. But hey, virtual fist pump, >>virtual pissed bump to you, John and Dave, always a pleasure to talk to you. I give you more than a virtual pistol. Here's a virtual hug. >>Well, so >>great. Back at great. >>Great to have you on. First of all, a lot more people attending the emerald this year because it's virtual again, it doesn't have the face to face. It is a community and technical events, so people do value that face to face. Um, but it is virtually a ton of content, great guests. You guys have a great program here, Very customer centric. Kind of. The theme is, you know, unpredictable future eyes is really what it's all about. We've talked about covert you've been on before. What's going on in your perspective? What's the theme of your main talks? >>Ah, yeah. Thank you, John. It's always a pleasure to talk to you folks. We we felt as we thought, about how we could make this content dynamic. We always want to make it fresh. You know, a virtual show of this kind and program of this kind. We all are becoming experts at many Ted talks or ESPN. Whatever your favorite program is 60 minutes on becoming digital producers of content. So it has to be crisp, and everybody I think was doing this has found ways by which you reduce the content. You know, Pat and I would have normally given 90 minute keynotes on day one and then 90 minutes again on day two. So 180 minutes worth of content were reduced that now into something that is that entire 180 minutes in something that is but 60 minutes. You you get a chance to use as you've seen from the keynote an incredible, incredible, you know, packed array of both announcements from Pat myself. So we really thought about how we could organize this in a way where the content was clear, crisp and compelling. Thekla's piece of it needed also be concise, but then supplemented with hundreds of sessions that were as often as possible, made it a goal that if you're gonna do a break out session that has to be incorporate or lead with the customer, so you'll see not just that we have some incredible sea level speakers from customers that have featured in in our pattern, Mikey notes like John Donahoe, CEO of Nike or Lorry beer C I, a global sea of JPMorgan Chase partner Baba, who is CEO of Zuma Jensen Wang, who is CEO of video. Incredible people. Then we also had some luminaries. We're gonna be talking in our vision track people like in the annuity. I mean, one of the most powerful women the world many years ranked by Fortune magazine, chairman, CEO Pepsi or Bryan Stevenson, the person who start in just mercy. If you watch that movie, he's a really key fighter for social justice and criminal. You know, reform and jails and the incarceration systems. And Malala made an appearance. Do I asked her personally, I got to know her and her dad's and she spoke two years ago. I asked her toe making appearance with us. So it's a really, really exciting until we get to do some creative stuff in terms of digital content this year. >>So on the product side and the momentum side, you have great decisions you guys have made in the past. We covered that with Pat Gelsinger, but the business performance has been very strong with VM. Where, uh, props to you guys, Where does this all tie together for in your mind? Because you have the transformation going on in a highly accelerated rate. You know, cov were not in person, but Cove in 19 has proven, uh, customers that they have to move faster. It's a highly accelerated world, a lot. Lots changing. Multi cloud has been on the radar. You got security. All the things you guys are doing, you got the AI announcements that have been pumping. Thean video thing was pretty solid. That project Monterey. What does the customer walk away from this year and and with VM where? What is the main theme? What what's their call to action? What's what do they need to be doing? >>I think there's sort of three things we would encourage customers to really think about. Number one is, as they think about everything in infrastructure, serves APS as they think about their APS. We want them to really push the frontier of how they modernize their athletic applications. And we think that whole initiative off how you modernized applications driven by containers. You know, 20 years ago when I was a developer coming out of college C, C plus, plus Java and then emerge, these companies have worked on J two ee frameworks. Web Logic, Be Aware logic and IBM Web Street. It made the development off. Whatever is e commerce applications of portals? Whatever was in the late nineties, early two thousands much, much easier. That entire world has gotten even easier and much more Micro service based now with containers. We've been talking about kubernetes for a while, but now we've become the leading enterprise, contain a platform making some incredible investments, but we want to not just broaden this platform. We simplified. It is You've heard everything in the end. What works in threes, right? It's sort of like almost t shirt sizing small, medium, large. So we now have tens Ooh, in the standard. The advanced the enterprise editions with lots of packaging behind that. That makes it a very broad and deep platform. We also have a basic version of it. So in some sense it's sort of like an extra small. In addition to the small medium large so tends to and everything around at modernization, I think would be message number one number two alongside modernization. You're also thinking about migration of your workloads and the breadth and depth of, um, er Cloud Foundation now of being able to really solve, not just use cases, you are traditionally done, but also new ai use cases. Was the reason Jensen and us kind of partner that, and I mean what a great company and video has become. You know, the king maker of these ai driven applications? Why not run those AI applications on the best infrastructure on the planet? Remember, that's a coming together of both of our platforms to help customers. You know automotive banking fraud detection is a number of AI use cases that now get our best and we want it. And the same thing then applies to Project Monterey, which takes the B c f e m A Cloud Foundation proposition to smart Knicks on Dell, HP Lenovo are embracing the in video Intel's and Pen Sandoz in that smart make architectural, however, that so that entire world of multi cloud being operative Phobia Macleod Foundation on Prem and all of its extended use cases like AI or Smart Knicks or Edge, but then also into the AWS Azure, Google Multi Cloud world. We obviously had a preferred relationship with Amazon that's going incredibly well, but you also saw some announcements last week from, uh, Microsoft Azure about azure BMR solutions at their conference ignite. So we feel very good about the migration opportunity alongside of modernization on the third priority, gentlemen would be security. It's obviously a topic that I most recently taken uninterested in my day job is CEO of the company running the front office customer facing revenue functions by night job by Joe Coffin has been driving. The security strategy for the company has been incredibly enlightening to talk, to see SOS and drive this intrinsic security or zero trust from the network to end point and workload and cloud security. And we made some exciting announcements there around bringing together MAWR capabilities with NSX and Z scaler and a problem black and workload security. And of course, Lassiter wouldn't cover all of this. But I would say if I was a attendee of the conference those the three things I want them to take away what BMR is doing in the future of APS what you're doing, the future of a multi cloud world and how we're making security relevant for distributed workforce. >>I know David >>so much to talk about here, Sanjay. So, uh, talk about modern APS? That's one of the five franchise platforms VM Ware has a history of going from, you know, Challenger toe dominant player. You saw that with end user computing, and there's many, many other examples, so you are clearly one of the top, you know. Let's call it five or six platforms out there. We know what those are, uh, and but critical to that modern APS. Focus is developers, and I think it's fair to say that that's not your wheelhouse today, but you're making moves there. You agree that that is, that is a critical part of modern APS, and you update us on what you're doing for that community to really take a leadership position there. >>Yeah, no, I think it's a very good point, David. We way seek to constantly say humble and hungry. There's never any assumption from us that VM Ware is completely earned anyplace off rightful leadership until we get thousands, tens of thousands. You know, we have a half a million customers running on our virtualization sets of products that have made us successful for 20 years 70 million virtual machines. But we have toe earn that right and containers, and I think there will be probably 10 times as many containers is their virtual machines. So if it took us 20 years to not just become the leader in in virtual machines but have 70 million virtual machines, I don't think it will be 20 years before there's a billion containers and we seek to be the leader in that platform. Now, why, Why VM Where and why do you think we can win in their long term. What are we doing with developers Number one? We do think there is a container capability independent of virtual machine. And that's what you know, this entire world of what hefty on pivotal brought to us on. You know, many of the hundreds of customers that are using what was formerly pivotal and FDR now what's called Tan Xue have I mean the the case. Studies of what those customers are doing are absolutely incredible. When I listen to them, you take Dick's sporting goods. I mean, they are building curbside, pick up a lot of the world. Now the pandemic is doing e commerce and curbside pick up people are going to the store, That's all based on Tan Xue. We've had companies within this sort of world of pandemic working on contact, tracing app. Some of the diagnostic tools built without they were the lab services and on the 10 zoo platform banks. Large banks are increasingly standardizing on a lot of their consumer facing or wealth management type of applications, anything that they're building rapidly on this container platform. So it's incredible the use cases I'm hearing public sector. The U. S. Air Force was talking about how they've done this. Many of them are not public about how they're modernizing dams, and I tend to learn the best from these vertical use case studies. I mean, I spend a significant part of my life is you know, it s a P and increasingly I want to help the company become a lot more vertical. Use case in banking, public sector, telco manufacturing, CPG retail top four or five where we're seeing a lot of recurrence of these. The Tan Xue portfolio actually brings us closest to almost that s a P type of dialogue because we're having an apse dialogue in the in the speak of an industry as opposed to bits and bytes Notice I haven't talked at all about kubernetes or containers. I'm talking about the business problem being solved in a retailer or a bank or public sector or whatever have you now from a developer audience, which was the second part of your question? Dave, you know, we talked about this, I think a year or two ago. We have five million developers today that we've been able to, you know, as bringing these acquisitions earn some audience with about two or three million from from the spring community and two or three million from the economic community. So think of those five million people who don't know us because of two acquisitions we don't. Obviously spring was inside Vienna where went out of pivotal and then came back. So we really have spent a lot of time with that community. A few weeks ago, we had spring one. You guys are aware of that? That conference record number of attendees okay, Registered, I think of all 40 or 50,000, which is, you know, much bigger than the physical event. And then a substantial number of them attended live physical. So we saw a great momentum out of spring one, and we're really going to take care of that, That that community base of developers as they care about Java Manami also doing really, really well. But then I think the rial audience it now has to come from us becoming part of the conversation. That coupon at AWS re invent at ignite not just the world, I mean via world is not gonna be the only place where infrastructure and developers come to. We're gonna have to be at other events which are very prominent and then have a developer marketplace. So it's gonna be a multiyear effort. We're okay with that. To grow that group of about five million developers that we today Kate or two on then I think there will be three or four other companies that also play very prominently to developers AWS, Microsoft and Google. And if we're one among those three or four companies and remembers including that list, we feel very good about our ability to be in a place where this is a shared community, takes a village to approach and an appeal to those developers. I think there will be one of those four companies that's doing this for many years to >>come. Santa, I got to get your take on. I love your reference to the Web days and how the development environment change and how the simplicity came along very relevant to how we're seeing this digital transformation. But I want to get your thoughts on how you guys were doing pre and now during and Post Cove it. You already had a complicated thing coming on. You had multi cloud. You guys were expanding your into end you had acquisitions, you mentioned a few of them. And then cove it hit. Okay, so now you have Everything is changing you got. He's got more complex city. You have more solutions, and then the customer psychology is change. You got to spectrums of customers, people trying to save their business because it's changed, their customer behavior has changed. And you have other customers that are doubling down because they have a tailwind from Cove it, whether it's a modern app, you know, coming like Zoom and others are doing well because of the environment. So you got your customers air in this in this in this, in this storm, you know, they're trying to save down, modernized or or or go faster. How are you guys changing? Because it's impacted how you sell. People are selling differently, how you implement and how you support customers, because you already had kind of the whole multi cloud going on with the modern APS. I get that, but Cove, it has changed things. How are you guys adopting and changing to meet the customer needs who are just trying to save their business on re factor or double down and continue >>John. Great question. I think I also talked about some of this in one of your previous digital events that you and I talked about. I mean, you go back to the last week of February 1st week of March, actually back up, even in January, my last trip on a plane. Ah, major trip outside this country was the World Economic Forum in Davos. And, you know, there were thousands of us packed into the small digits in Switzerland. I was sitting having dinner with Andy Jassy in a restaurant one night that day. Little did we know. A month later, everything would change on DWhite. We began to do in late February. Early March was first. Take care of employees. You always wanna have the pulse, check employees and be in touch with them. Because the health and safety of employees is much more important than the profits of, um, where you know. So we took care of that. Make sure that folks were taking care of older parents were in good place. We fortunately not lost anyone to death. Covert. We had some covert cases, but they've recovered on. This is an incredible pandemic that connects all of us in the human fabric. It has no separation off skin color or ethnicity or gender, a little bit of difference in people who are older, who might be more affected or prone to it. But we just have to, and it's taught me to be a significantly more empathetic. I began to do certain things that I didn't do before, but I felt was the right thing to do. For example, I've begun to do 25 30 minute calls with every one of my key countries. You know, as I know you, I run customer operations, all of the go to market field teams reporting to me on. I felt it was important for me to be showing up, not just in the big company meetings. We do that and big town halls where you know, some fractions. 30,000 people of VM ware attend, but, you know, go on, do a town hall for everybody in a virtual zoom session in Japan. But in their time zone. So 10 o'clock my time in the night, uh, then do one in China and Australia kind of almost travel around the world virtually, and it's not long calls 25 30 minutes, where 1st 10 or 15 minutes I'm sharing with them what I'm seeing across other countries, the world encouraging them to focus on a few priorities, which I'll talk about in a second and then listening to them for 10 15 minutes and be, uh and then the call on time or maybe even a little earlier, because every one of us is going to resume button going from call to call the call. We're tired of T. There's also mental, you know, fatigue that we've gotta worry about. Mental well, being long term. So that's one that I personally began to change. I began to also get energy because in the past, you know, I would travel to Europe or Asia. You know, 40 50%. My life has travel. It takes a day out of your life on either end, your jet lag. And then even when you get to a Tokyo or Beijing or to Bangalore or the London, getting between sites of these customers is like a 45 minute, sometimes in our commute. Now I'm able to do many of these 25 30 minute call, so I set myself a goal to talk to 1000 chief security officers. I know a lot of CEOs and CFOs from my times at S A P and VM ware, but I didn't know many security officers who often either work for a CEO or report directly to the legal counsel on accountable to the audit committee of the board. And I got a list of these 1,002,000 people we called email them. Man, I gotta tell you, people willing to talk to me just coming, you know, into this I'm about 500 into that. And it was role modeling to my teams that the top of the company is willing to spend as much time as possible. And I have probably gotten a lot more productive in customer conversations now than ever before. And then the final piece of your question, which is what do we tell the customer in terms about portfolio? So these were just more the practices that I was able to adapt during this time that have given me energy on dial, kind of get scared of two things from the portfolio perspective. I think we began to don't notice two things. One is Theo entire move of migration and modernization around the cloud. I describe that as you know, for example, moving to Amazon is a migration opportunity to azure modernization. Is that whole Tan Xue Eminem? Migration of modernization is highly relevant right now. In fact, taking more speed data center spending might be on hold on freeze as people kind of holding till depend, emmick or the GDP recovers. But migration of modernization is accelerating, so we wanna accelerate that part of our portfolio. One of the products we have a cloud on Amazon or Cloud Health or Tan Xue and maybe the other offerings for the other public dog. The second part about portfolio that we're seeing acceleration around is distributed workforce security work from home work from anywhere. And that's that combination off workspace, one for both endpoint management, virtual desktops, common black envelope loud and the announcements we've now made with Z scaler for, uh, distributed work for security or what the analysts called secure access. So message. That's beautiful because everyone working from home, even if they come back to the office, needs a very different model of security and were now becoming a leader in that area. of security. So these two parts of the portfolio you take the five franchise pillars and put them into these two buckets. We began to see momentum. And the final thing, I would say, Guys, just on a soft note. You know, I've had to just think about ways in which I balance work and family. It's just really easy. You know what, 67 months into this pandemic to burn out? Ah, now I've encouraged my team. We've got to think about this as a marathon, not a sprint. Do the personal things that you wanna do that will make your life better through this pandemic. That in practice is that you keep after it. I'll give you one example. I began biking with my kids and during the summer months were able to bike later. Even now in the fall, we're able to do that often, and I hope that's a practice I'm able to do much more often, even after the pandemic. So develop some activities with your family or with the people that you love the most that are seeing you a lot more and hopefully enjoying that time with them that you will keep even after this pandemic ends. >>So, Sanjay, I love that you're spending all this time with CSOs. I mean, I have a Well, maybe not not 1000 but dozens. And they're such smart people. They're really, you know, in the thick of things you mentioned, you know, your partnership with the scale ahead. Scott Stricklin on who is the C. C so of Wyndham? He was talking about the security club. But since the pandemic, there's really three waves. There's the cloud security, the identity, access management and endpoint security. And one of the things that CSOs will tell you is the lack of talent is their biggest challenge. And they're drowning in all these products. And so how should we think about your approach to security and potentially simplifying their lives? >>Yeah. You know, Dave, we talked about this, I think last year, maybe the year before, and what we were trying to do in security was really simplified because the security industry is like 5000 vendors, and it's like, you know, going to a doctor and she tells you to stay healthy. You gotta have 5000 tablets. You just cannot eat that many tablets you take you days, weeks, maybe a month to eat that many tablets. So ah, grand simplification has to happen where that health becomes part of your diet. You eat your proteins and vegetables, you drink your water, do your exercise. And the analogy and security is we cannot deploy dozens of agents and hundreds of alerts and many, many consoles. Uh, infrastructure players like us that have control points. We have 70 million virtual machines. We have 75 million virtual switches. We have, you know, tens of million's off workspace, one of carbon black endpoints that we manage and secure its incumbent enough to take security and making a lot more part of the infrastructure. Reduce the need for dozens and dozens of point tools. And with that comes a grand simplification of both the labor involved in learning all these tools. Andi, eventually also the cost of ownership off those particular tool. So that's one other thing we're seeking to do is increasingly be apart off that education off security professionals were both investing in ah, lot of off, you know, kind of threat protection research on many of our folks you know who are in a threat. Behavioral analytics, you know, kind of thread research. And people have come out of deep hacking experience with the government and others give back to the community and teaching classes. Um, in universities, there are a couple of non profits that are really investing in security, transfer education off CSOs and their teams were contributing to that from the standpoint off the ways in which we can give back both in time talent and also a treasure. So I think is we think about this. You're going to see us making this a long term play. We have a billion dollar security business today. There's not many companies that have, you know, a billion dollar plus of security is probably just two or three, and some of them have hit a wall in terms of their progress sport. We want to be one of the leaders in cybersecurity, and we think we need to do this both in building great product satisfying customers. But then also investing in the learning, the training enable remember, one of the things of B M worlds bright is thes hands on labs and all the training enable that happened at this event. So we will use both our platform. We in world in a variety of about the virtual environments to ensure that we get the best education of security to professional. >>So >>that's gonna be exciting, Because if you look at some of the evaluations of some of the pure plays I mean, you're a cloud security business growing a triple digits and, you know, you see some of these guys with, you know, $30 billion valuations, But I wanted to ask you about the market, E v m. Where used to be so simple Right now, you guys have expanded your tam dramatically. How are you thinking about, you know, the market opportunity? You've got your five franchise platforms. I know you're very disciplined about identifying markets, and then, you know, saying, Okay, now we're gonna go compete. But how do you look at the market and the market data? Give us the update there. >>Yeah, I think. Dave, listen, you know, I like davinci statement. You know, simplicity is the greatest form of sophistication, and I think you've touched on something that which is cos we get bigger. You know, I've had the great privilege of working for two great companies. s a P and B M where the bulk of my last 15 plus years And if something I've learned, you know, it's very easy. Both companies was to throw these TLS three letter acronyms, okay? And I use an acronym and describing the three letter acronyms like er or s ex. I mean, they're all acronyms and a new employee who comes to this company. You know, Carol Property, for example. We just hired her from Google. Is our CMO her first comments like, My goodness, there is a lot of off acronyms here. I've gotta you need a glossary? I had the same reaction when I joined B. M or seven years ago and had the same reaction when I joined the S A. P 15 years ago. Now, of course, two or three years into it, you learn everything and it becomes part of your speed. We have toe constantly. It's like an accordion like you expanded by making it mawr of luminous and deep. But as you do that it gets complex, you then have to simplify it. And that's the job of all of us leaders and I this year, just exemplifying that I don't have it perfect. One of the gifts I do have this communication being able to simplify things. I recorded a five minute video off our five franchise pill. It's just so that the casual person didn't know VM where it could understand on. Then, when I'm on your shore and when on with Jim Cramer and CNBC, I try to simplify, simplify, simplify, simplify because the more you can talk and analogies and pictures, the more the casual user. I mean, of course, and some other audiences. I'm talking to investors. Get it on. Then, Of course, as you go deeper, it should be like progressive layers or feeling of an onion. You can get deeper. It's not like the entire discussion with Sanjay Putin on my team is like, you know, empty suit. It's a superficial discussion. We could go deeper, but you don't have to begin the discussion in the bowels off that, and that's really what we don't do. And then the other part of your question was, how do we think about new markets? You know, we always start with Listen, you sort of core in contact our borough come sort of Jeffrey Moore, Andi in the Jeffrey more context. You think about things that you do really well and then ask yourself outside of that what the Jason sees that are closest to you, that your customers are asking you to advance into on that, either organically to partnerships or through acquisitions. I think John and I talked about in the previous dialogue about the framework of build partner and by, and we always think about it in that order. Where do we advance and any of the moves we've made six years ago, seven years ago and I joined the I felt VM are needed to make a move into mobile to really cement opposition in end user computing. And it took me some time to convince my peers and then the board that we should by Air One, which at that time was the biggest acquisition we've ever done. Okay. Similarly, I'm sure prior to me about Joe Tucci, Pat Nelson. We're thinking about nice here, and I'm moving to networking. Those were too big, inorganic moves. +78 years of Raghu was very involved in that. The decisions we moved to the make the move in the public cloud myself. Rgu pack very involved in the decision. Their toe partner with Amazon, the change and divest be cloud air and then invested in organic effort around what's become the Claudia. That's an organic effort that was an acquisition fast forward to last year. It took me a while to really Are you internally convinced people and then make the move off the second biggest acquisition we made in carbon black and endpoint security cement the security story that we're talking about? Rgu did a similar piece of good work around ad monetization to justify that pivotal needed to come back in. So but you could see all these pieces being adjacent to the core, right? And then you ask yourself, Is that context meaning we could leave it to a partner like you don't see us get into the hardware game we're partnering with. Obviously, the players like Dell and HP, Lenovo and the smart Knick players like Intel in video. In Pensando, you see that as part of the Project Monterey announcement. But the adjacent seas, for example, last year into app modernization up the stack and into security, which I'd say Maura's adjacent horizontal to us. We're now made a lot more logical. And as we then convince ourselves that we could do it, convince our board, make the move, We then have to go and tell our customers. Right? And this entire effort of talking to CSOs What am I doing is doing the same thing that I did to my board last year, simplified to 15 minutes and get thousands of them to understand it. Received feedback, improve it, invest further. And actually, some of the moves were now making this year around our partnership in distributed Workforce Security and Cloud Security and Z scaler. What we're announcing an XDR and Security Analytics. All of the big announcements of security of this conference came from what we heard last year between the last 12 months of my last year. Well, you know, keynote around security, and now, and I predict next year it'll be even further. That's how you advance the puck every year. >>Sanjay, I want to get your thoughts. So now we have a couple minutes left. But we did pull the audience and the community to get some questions for you, since it's virtually wanted to get some representation there. So I got three questions for you. First question, what comes after Cloud and number two is VM Ware security company. And three. What company had you wish you had acquired? >>Oh, my goodness. Okay, the third one eyes gonna be the turkey is one, I think. Listen, because I'm gonna give you my personal opinion, and some of it was probably predates me, so I could probably safely So do that. And maybe put the blame on Joe Tucci or somebody else is no longer here. But let me kind of give you the first two. What comes after cloud? I think clouds gonna be with us for a long time. First off this multi cloud world, you just look at the moment, um, that AWS and azure and the other clouds all have. It's incredible on I think this that multi cloud from phenomenon. But if there's an adapt ation of it, it's gonna be three forms of cloud. People are really only focus today in private public cloud. You have to remember the edge and Telco Cloud and this pendulum off the right balance of workloads between the data center called it a private cloud. The public cloud on one end and the telco edge on the other end. I think we're in a really good position for workloads to really swing between all three of those locations. Three other part that I think comes as a sequel to Cloud is cloud native. All of the capabilities a serverless functions but also containers that you know. Obviously the one could think of that a sister topics to cloud but the entire world of containers. The other seat, uh, then cloud a cloud native will also be topics, but these were all fairly connected. That's how I'd answer the first question. A security company? Absolutely. We you know, we aspire to be one of the leading companies in cyber security. I don't think they will be only one. We have to show this by the wealth on breath of our customers. The revenue momentum we have Gartner ranking us or the analysts ranking us in top rights of magic quadrants being viewed as an innovator simplifying the stack. But listen, we weren't even on the radar. We weren't speaking of the security conferences years ago. Now we are. We have a billion dollar security business, 20,000 plus customers, really strong presences and network endpoint and workload and Cloud Security. The three Coppola's a lot more coming in Security analytics, Cloud Security distributed workforce Security. So we're here to stay. And if anything, BMR persist through this, we're planning for multi your five or 10 year timeframe. And in that course I mean, the competition is smaller. Companies that don't have the breadth and depth of the n words are Andy muscle and are going market. We just have to keep building great products and serving customer on the third man. There's so many. But I mean, I think Listen, when I was looking back, I always wondered this is before I joined so I could say the summit speculatively on. Don't you know, make this This is BMR. Sorry. This is Sanjay one's opinion. Not VM. I gotta make very, very clear. Well, listen, I would have if I was at BMO in 2012 or 2013. I would love to about service now then service. It was a great company. I don't even know maybe the company's talk, but then talk about a very successful company at that time now. Maybe their priorities were different. I wasn't at the company at the time, but I can speculate if that had happened, that would have been an interesting Now I think that was during the time of Paul Maritz here and and so on. So for them, maybe there were other priorities the company need to get done. But at that time, of course, today s so it's not as big of a even slightly bigger market cap than us. So that's not happening. But that's a great example of a good company that I think would have at that time fit very well with VM Ware. And then there's probably we don't look back and regret we move forward. I mean, I think about the acquisitions we have made the big ones. Okay, Nice era air watch pop in black. Pivotal. The big moves we've made in terms of partnership. Amazon. What? We're announcing this This, you know, this week within video and Z scaler. So you never look back and regret. You always look for >>follow up on that To follow up on that from a developer, entrepreneurial or partner Perspective. Can you share where the white spaces for people to innovate around vm Where where where can people partner and play. Whether I'm an entrepreneur in a garage or venture back, funded or say a partner pivoting and or resetting with Govind, where's the white spaces with them? >>I think that, you know, there's gonna be a number off places where the Tan Xue platform develops, as it kind of makes it relevant to developers. I mean, there's, I think the first way we think about this is to make ourselves relevant toe all of that ecosystem around the C I. C. D type apply platform. They're really good partners of ours. They're like, get lab, You know, all of the ways in which open source communities, you know will play alongside that Hash E Corp. Jay frog there number of these companies that are partnering with us and we're excited about all of their relevancy to tend to, and it's our job to go and make that marketplace better and better. You're going to hear more about that coming up from us on. Then there's the set of data companies, you know, con fluent. You know, of course, you've seen a big I p o of a snowflake. All of those data companies, we'll need a very natural synergy. If you think about the old days of middleware, middleware is always sort of separate from the database. I think that's starting to kind of coalesce. And Data and analytics placed on top of the modern day middleware, which is containers I think it's gonna be now does VM or play physically is a data company. We don't know today we're gonna partner very heavily. But picking the right set of partners been fluent is a good example of one on. There's many of the next generation database companies that you're going to see us partner with that will become part of that marketplace influence. And I think, as you see us certainly produce out the VM Ware marketplace for developers. I think this is gonna be a game changing opportunity for us to really take those five million developers and work with the leading companies. You know, I use the example of get Lab is an example get help there. Others that appeal to developers tie them into our developer framework. The one thing you learn about developers, you can't have a mindset. With that, you all come to just us. It's a very mingled village off multiple ecosystems and Venn diagrams that are coalescing. If you try to take over the world, the developer community just basically shuns you. You have to have a very vibrant way in which you are mingling, which is why I described. It's like, Listen, we want our developers to come to our conferences and reinvent and ignite and get the best experience of all those provide tools that coincide with everybody. You have to take a holistic view of this on if you do that over many years, just like the security topic. This is a multi year pursuit for us to be relevant. Developers. We feel good about the future being bright. >>David got five minutes e. >>I thought you were gonna say Zoom, Sanjay, that was That was my wildcard. >>Well, listen, you know, I think it was more recently and very fast catapult Thio success, and I don't know that that's clearly in the complete, you know, sweet spot of the anywhere. I mean, you know, unified collaboration would have probably put us in much more competition with teams and, well, back someone you always have to think about what's in the in the bailiwick of what's closest to us, but zooms a great partner. Uh, I mean, obviously you love to acquire anybody that's hot, but Eric's doing really well. I mean, Erica, I'm sure he had many people try to come to buy him. I'm just so proud of him as a friend of all that he was named to Time magazine Top 100. But what he's done is phenomenon. I think he could build a company that's just his important, his Facebook. So, you know, I encourage him. Don't sell, keep building the company and you'll build a company that's going to be, you know, the enterprise version of Facebook. And I think that's a tremendous opportunity to do this better than anybody else is doing. And you know, I'm as an immigrant. He's, you know, China. Born now American, I'm Indian born, American, assim immigrants. We both have a similar story. I learned a lot from him. I learned a lot from him, from on speed on speed and how to move fast, he tells me he learns a thing to do for me on scale. We teach each other. It's a beautiful friendship. >>We'll make sure you put in a good word for the Kiwi. One more zoom integration >>for a final word or the zoom that is the future Facebook of the enterprise. Whatever, Sanjay, Thank >>you for connecting with us. Virtually. It is a digital foundation. It is an unpredictable world. Um, it's gonna change. It could be software to find the operating models or changing you guys. We're changing how you serve customers with new chief up commercial customer officer you have in place, which is a new hire. Congratulations. And you guys were flexing with the market and you got a tailwind. So congratulations, >>John and Dave. Always a pleasure. We couldn't do this without the partnership. Also with you. Congratulations of Successful Cube. And in its new digital format, Thank you for being with us With VM world here on. Do you know all that you're doing to get the story out? The guests that you have on the show, they look forward, including the nonviable people like, Hey, can I get on the Cuban like, Absolutely. Because they look at your platform is away. I'm telling this story. Thanks for all you're doing. I wish you health and safety. >>I'm gonna bring more community. And Dave is, you know, and Sanjay, and it's easier without the travel. Get more interviews, tell more stories and tell the most important stories. And thank you for telling your story and VM World story here of the emerald 2020. Sanjay Poon in the chief operating officer here on the Cube I'm John for a day Volonte. Thanks for watching Cube Virtual. Thanks for watching.

>>long from Las Vegas. It's the Q covering a ws re invent 2019. Brought to you by Amazon Web service is and in along with its ecosystem partners. >>Welcome back to the Cube. Lisa Martin live on the show floor of AWS. A re in that 19 was stupid. And then this is the almost the end of our second day of coverage. And as we were just saying, There's more people in here now than there were probably a couple of hours ago. 65,000 or so folks that AWS is expecting here and I think they're all in the Expo Hall now. Sue and I are pleased to welcome from Amazon business. David Stout, the head of global alliances and partnerships. Stephen, welcome to the Cube. >>Thanks so much for having me excited because this afternoon, >>so everybody on the planet knows amazon dot com. It has transformed our lives. I also think that it's transformed us as consumers and put pressure on any business, be able to deliver to us what we want whenever way wanted >>everybody. This week's getting alerts on their phones of package deliveries. >>Yes, that's why you one of the best parts of your day is when that Amazon package shows up and it's so fast. I always forget what's really order. Hope is for me. But I'd love for you to share with our audience what Amazon businesses. >>So obviously, you just said we all know about Amazon. We'll know about eight of us, right? 65,000 people here this week. Amazon businesses, a group that's been around since 2015 and we're focusing specifically on the needs to procure it needs of business and institutional customers. >>So the big theme that we heard from Andy Jassy was talking about transformation. We can't incrementally change the environment, so tell us a little bit what happens in your space and how that ties in tow, those transformations a couple things. So so one we like. I >>said, we start in 2015 focusing on both private and public sector customers, and what we're really trying to focus on is that experience you talked about For consumers taking that same ease of use and experience to the business world, corporate chairman is really hard and cumbersome. There's a lot of tools that need to be in used, and so we're trying to drive that same ease of use into the corporate and public sector world as well. So one of things that we've done way launched 2015. As I said, way don't share a lot of details. But we did about a year ago announced that we're on about a $10 billion annualized run rate. We're in nine countries around the world so outside the United States were also live in Germany, United Kingdom, France, Italy, Germany, Spain, India, France, Sorry, India, Japan and just announced last month in Canada. So it's, ah, fast growing business and we continue to try to find ways our customers are great to give us feedback on how we can continue to innovate to serve their needs. >>Yeah, you know, it's funny. I have some history, my career, working with procurement organizations, and change is not something I hear from them. When I think of public sector, it's like, Well, it's on the G s, a contract negotiated from the years when you go to companies and you say, Hey, we've got the new product. Oh, well, I got to go through the procurement cycle to get that through these environments. So how do we make sure that companies can take the innovation, you know, be agile and, you know, take advantage of these things now from a human standpoint, yes. So there's >>a couple things. So one this week you're here in a town about digital transformation, right? Something that isn't an event. It's an ongoing evolution, one of things you know, We've been coming to to reinvent for four years now, and what we're seeing and continually saying, is that there's a convergence between the I T strategies and the procurement strategies. A lot of that is happening through technology and enabling a new technology. But it za super interesting observation for us sitting on the sidelines and helping drive some of that innovation for customers. >>The rule of the chief procurement officer has changed a lot in recent years alone. Where this rose. You're saying there's this now convergence with I T. But the CPO has a much bigger opportunity now to become much more of a strategic driver of business, whether it's evaluating supply chain management and looking for ways to streamline operations. Big shift from the financial perspective, Dr Spell some of the things that Amazon business is seeing in your customers and how it is enabling those two sides the I t folks on the procurement folks to come together so that what they're enabling is that digital business transfer. >>Yeah, absolutely so historically procurement teams up CPS and their teams were responsible for very traditional things. Sourcing contract management, risk management, supplier on boarding and off, boarding compliance with you to your point earlier still on regulations and is it on a schedule or not? Those >>are all >>still really important attributes and will continue to be a huge focus areas for those organizations. But I think with the advent of technology, what you're starting to see is a lot more focus on how to use artificial intelligence. How do we use our P? A. How do we use use machine learning to find new opportunities to Dr Efficiencies within those operations? And so I think because of that, what you're starting to see is a lot more harmonization between what see peos are thinking about. The strategy is employing and the c i ose and we're releasing a convergence between those two organizations. Republished. Amazon Business published an article with Procure Con a couple months ago. One of the findings that came out of that study was that there is a convergence happening. Over 55% of the respondents said that their goals are either fully aligned or mostly align with the goals of of the C. I. A. Organization. So we're works pretty excited about that happening. We think that we're gonna be helping customers continue to drive that collaboration and for forward thinking organizations that are trying to drive more technology way believe it's gonna be a requirement in essential. >>That's awesome. It aligns with some of the broader trends we've been seeing in cloud adoption overall, it can't be. I t in the business separately, doing their things. Help us understand how this movement forward translates into innovation for for customers. Yeah, >>so a couple things come to mind, um, eight of us things number things happening here. Eight abyss yesterday, oftentimes is sorry. Oftentimes eight of us is considered as a starter for when you think about digital transformation and cloud transformation. Um, pace of that evolution is amazing, right? Yesterday there were 14 press releases issued on new technologies and capabilities that AWS is delivering directly or through partners and I think those types of things we're helping drive that pace of evolution we talked about earlier. One of the things that I found really interesting is eight of us as a partner network. It's very mature. There's tens of thousands of partners. They launched it in 2013 and it's a huge portion of their business and growth. Amazon business is much younger in our in our maturity on we're just starting to Launch a partner network. One of things were really interested in is how do we work with third party organizations, and my team's responsible for really extending the range and reach of our traditional sales, marketing and service's channels by working with third parties. Those take the forms of primarily software companies. So you see Air P organizations, a procurement platforms and accounting expense management platforms is examples there and in the infrastructure providers that leverage that. So Octa eyes an identity management provider, their sponsor of reinvent this year they're our partner of Amazon business, and we've built a pre configured integration that will allow Octa customers that you're using a single sign of product to access the Amazon business, uh, store easily and within the controls that they've established >>it. Actually, we just had Dave McCann from the eight of us Marketplace on the program earlier, and we've watched the evolution in maturation of marketplace. How does that tie underworld allowing? Really? You know, I I've been going for years. It is close, is what we have to the enterprise app store there. So how does this play into your s? So, you know, I think there's gonna continue to be >>convergence between Amazon business in AWS overtime in the marketplace, we offer kind of a goods marketplace. They offer a software marketplace in a service marketplace. And so I think we're still working on how do we harmonize that experience better. And we've got a lot of work to do there. We have a saying in Amazon that it's always Day one, and that's a great example where we still have a lot of work to do. One >>of the >>things that is another one of our partners, Cooper, which is procure to pay platform and a long time Amazon business partner we've done some pretty creative things to improve the user experience and make it easier for customers is both Cooper and Amazon business and concert Together announced couple months ago. They've built an integration to the eight of US marketplace. And so that's a pretty exciting opportunity where people who are provisioning service is via a theatre. Best marketplace gonna have transaction, flows seamlessly into their, procured up a solution and let you know the user whose provisioning that focus on what they want to do, which is developing new solutions to serve customers. >>Yeah, Cooper is one of our cube clients. I was just covering their event Cooper London just a few weeks ago. One of the things that's interesting about them, and I'd love to get your feedback on the is their community is really massively influential in their technology, and I presume in terms of the partnerships that they forge and as really catalysts for that procurement role being so strategic to the business. Talk to us about some of the customers that you are working with, and there's third party folks as well. How are the influencing the road map of Amazon business? >>Yeah, so our customers are never shy to tell >>us that's a >>pretty right, and that's one of the things that we've been able to grow so quickly, right? So we have. We've segmented our business into four verticals who focus on health care, education, government and then commercial, which is our largest segment. We have custom invites your boards from each one of those segments and those air very intimate working sessions with everyone from micro customers up to Fortune 100 customers that are never shy, as I said to provide feedback on what we need to do better. I was with a client last week who and one of our partners who It was great to hear them say way. They just have been a at a customer advisory board. And we love the fact that those features we suggested to you 12 months ago are now in production. And so it's a huge part of what we do. It's a huge part of what drives our road map. Wey have probably the most sophisticated voice of customer feedback monitoring systems that I've seen, and that includes everything from, you know, our sales professionals talk to customers and log that feedback on future requests to monitoring social feeds to understanding what our customers want. So it's ah, it's a big part of what we do and how we do it. And I think it's one of the things that makes Amazon a really differentiated company business overall. >>All right. So, David, I think most people not only did the no Amazon, but many of them, including disclaimer myself, our Amazon prime customers. You'll have something called Business Prime. Maybe explain a little bit what that is. S >>O. So most of us are prime members as consumers, and there's a number of features to come with that. There's a shipping program, which is where it started, and then we've had a different solutions. Whether it's music or video, there are storage. Amazon business has the same philosophy. And so right now there are. We have a business prime shipping program, which was launched two years ago. We also have a other business prime offerings, including advanced analytics. So within Amazon business, them's on business portal. You can actually look at spend categorization, and we've got some pretty powerful data visualization capabilities, its prime benefit, and we have a pretty extensive road map for other features that are going to continue to come. We have financing vehicles that are tied to it already, and there's there's a lot on the road mouth. >>Well, if you need two more business videos for your business, prime customers, give us a call. We have a large library with Amazon for >>that year for seeing that, you know, >>let's talk about security. It is a fundamental component of any organization because there is so much data and we're only generating more and more and more businesses need to ensure that how they're transacting with any organization and that their data is managed in a secure way. What are some of the fundamental elements of Amazon business that you guys have built into the technology to delay liver that security for your business customers? >>First of all, we're built fully on AWS, as you'd expect, and so there's There's a >>happy about that, by the way. >>So there's there's that's that's just a safety feature that I think it gives most of his comfort. I think back to this kind of notion of convergence of I t and procurement. This is something I find really interesting. And so, um, this prick your con article I mentioned a few minutes ago one of the findings and that was that 70% of organ of respondents said that their security strategy is shared jointly between their i t and the procurement teams. And so obviously security here it reinvent you walked the expo floor. There is an entire row of things that are focused on security and how to continue to drive that within the cloud in an efficient way. This whole concept of I t and procurement coming together share objectives. I think that's a great example where it's already happening, and we continue to expect that it will happen in more detail. >>What are some of the things that surprised you most about the last day and 1/2 with all the announcements that folks understanding more about Amazon business, some of the feedback that you've gotten on the show floor or in customer meetings that the kind of highlight? Yeah, we're doing the right thing. Here >>S o. I think >>for it's always humbling when people don't know about us, right, Asai said. We've built a pretty big business, but it's still really, really early on dso It's to me that's a great opportunity that we can continue to be more to educate customers about the opportunity and how Amazon can help transform their procurement practices. It's still super release, so we're always wanting to hear that feedback. And what else could we d'oh For customers that are aware of us? What's been really also humbling is how much they're finding us to be a bigger and bigger portion of their strategic vision in the future. And so we're really excited about that on both fronts, right? The opportunity to Maur, but also that customers who are adopting us or seeing great opportunities to consolidate their suppliers Dr Greater Efficiencies and, most importantly, provide a better end user experience that they're used to from their home. Purchasing >>of this last question for you Looking at the vertical focus that you guys are taking, you mentioned the verticals, any of them in particular that are really kind of leading the way here. For that I t procurement strategic collaboration. You mentioned healthcare, commercial, anything that you really see as early adopters leading edge. >>So we actually see there's probably some some nuances between each vertical, but we've seen some great adoption across all for those vertical. So we have 55 of the Fortune 100 as customers. We have 80% of the largest educational institutions in the U. S. Is customers. We have a greater than 50% of the largest health systems in the U. S. Is customers already and greater than 40% of the largest municipalities in United States. So so we've seen some really great adoption across all four segments. Again, I think the needs of a small dentist's office are gonna be different than the needs of industrial manufacturing organization. And so we continue to find solution sets with little dress, the needs of each one of those customers. We have strategic teams that are focused specifically on the segments and how to solve them. And as I said before, customers will always tell us what we could do better at >>that. Really, >>What drives our innovation >>and where can folks go? Business owners small enlarged to learn more about Amazon business >>amazon dot com slash business >>Easy, David. Thank you for joining student on a program and sharing with us What Amazon business as we appreciate it. >>Very welcome. Thanks for having me. >>Alright. First the Minutemen. I'm Lisa Martin and you're watching the Cube from Day two of our coverage of aws reinvent 19 from Vegas signing off. Thanks for watching

>> from Bahrain. It's the Q recovery AWS Public sector Bahrain brought to you by Amazon Web service is >> welcome to the cues conversation here. You're in Bahrain for Amazon Webster, is this summit our second summit? Um, here. Big news. Amazon Web services announced the availability of the region in the Middle East. I'm here with the chief of Public Sector Theresa Cross and vice President of Worldwide Public Sector. This is a huge milestone. This event one just in terms of the event. The interest across multiple countries in the region. Yes. And you have a new region with multiple availability zones? Yes, up and running. Congratulations. >> Hey, we launched the confetti today and yes, we're open for business and we do. It's a hyper scale region with three available the zones and lots of activity already here in the delays. But it really is a substantial kind of milestone because we started this sometime back in the Middle East, was one of the top regions around the world requested by our partners and customers. And now here we are. >> We've been talking with you for many, many years and I love interviewing you, but this one to me feels like it's not the weight off your shoulders. It's you're at the start line of another marathon. You've achieved so much with this because what's the first thing about Bart Rainey? We've reported on this on Select Angle and our other sites is that you get a lot of work here, is not just turning on a region. There's a lot of government commitment cloud first, full modernization, fintech banking systems, a full re platforming of a government and society and Amazons powering a lot of it and causing a lot of economic growth. So this is a big deal. >> It really is a big deal because, like you said, it really is about digital transformation here. And when I met the crown Prince in 2014 we had this conversation about really creating the economy here in a different way because Bob terrain itself, it's not oil rich country, but a smaller country with lots and lots of tourism. But in this region, while we haven't based here in Bahrain, this is truly a Middle East GCC region and but But part of that, the reason to start it here in my reign was that they really did take a lead in government transformation. As you heard them say, they're going all in shake Some on today talked about government is moving really fast, and they actually did the hard work to think about their telecommunications industry, their government regulations. They started with cloud first, and then they created all the write regulations to make this happen. So it is kind of phenomenal how quickly, in some ways, you know, feel slower than we'd like, But it's really moving quite fast. >> It's pretty fast. You should get a lot of kudos for that. I think you will. But I think to me what's interesting. The news here is that there is a balance between regulation and innovation going on, and regulation can be hampering innovation, some cases and not enough regulation. You have a Facebook situation or >> right so >> it's a balance. These guys have done it right. But to me, the tell sign is the fintech community, >> because that's where >> the money is. The central bank and then the ABC bank are all talking about a pea eye's all in with Amazon that's gonna create an ecosystem for innovation. Startups, et cetera. >> It totally isn't you heard Thean Vivid Jewel from ABC Bank today talk about their platform. What they're doing with clouds and the reason they chose a DBS was because we had this region of Bob Terrain, and they wanted to move quickly in. The regulations now have been updated in a way that actually allows them to do their banking applications in the lab. There's also a startup accelerator here, Fintech May, and they're doing a tenant work with new types of financial applications. So it's so exciting to see this kind of happening than the lace for I think a lot of people thought it would be much slower. We have a ways to go. It's still day one, for sure, but all the building blocks are getting there in the right place to really make this happen. >> You know, 80. Jessie's quoting the announcement you guys had just a couple weeks ago. Laura Angel And in July, the clouds of chance unlocked digital transmission. Middle East, says Andy chassis. Obviously unlocking is a key word because now you have customers from startups to large enterprises and ecosystem of a P M party. So the Ap N Group is here. Yes, So you have global I SUV's here and knew I s V's. You got the government and the education and to me, the news of the show. To me at least maybe it's not the big news, but is that you guys? They're offering a computer like a cloud computing degree. Yeah, for the first time about that news, >> you are right in terms of kind of every sector's picking at, but like in most places around the world, this is not unique. We need skills, and we've got to make sure that we're teaching the skills, working backwards from what the employer needs, like a TVs. So what? We've been here. We announced today we're launching our first cloud computing degree at the university of our terrain, and they're kind of thing. That's really unusual, John. They're going to do a phase one where they offer a cloud certification starting in early 2021 every program at the University of Bahrain, Whether you're in finance or banking, or business or health care or law, you can do this cloud computing certification, which gets you going and helps you understand how you last cloud in your business and then in the fall will be announcing the four year starting, the four year cloud computing degree, and that is in conjunction with our A DBS Educate program. And it will be all the right cloud skills that are needed to be successful. >> Talk about the demographics in this country because one of the things that's coming up is when I talk people in the doorways and it's a chance to talk to some local folks last night that that all in an Amazon, the theme is this. This younger generation yes, is here, and they have different expectations. They all want to work hard. They don't want to just sit back on their laurels and rest on their on their location. Here. They want to build companies they want to change. This is a key factor in the bottle rain modernization. Is that >> Yeah, generation well, all across the Middle East. The thing that's unique about the mill aces, the very young population you had millions of gamers across the Middle East as an example that comic con and Saudi like two years ago on that was one of the most popular things was fortnight. As soon as the region got at all the different gaming started taking place. But we want to create a culture of builders here, and the way you do that is what you said, John putting it into their hands, allowing these young people have the tools create a startup became entrepreneur, but they need to have access to these tools. And sometimes capital is often not that easy to get. So they want to make sure that the capital that they're given or that they have, whether it's bootstrap capital or venture capital, fending or whatever friends and family, they want to make sure that they can use that capital to the greatest advantage to build that company out. And I truly believe that this is gonna help them having an eight of us cloud region. I mean, you saw. Today we have 36 companies that launched their offering in the region on the day we actually announced so that they had specific offerings for the Middle East, which pretty exciting. I mean, that's a lot on day one. >> I mean, it's still day. One of you guys always say, but literally day one they were launching Yeah, I wanted to comment if you could just share some insights. I know, Um, your passion for, you know, entrepreneurship. You guys are also some skill development investing a lot of women in tech power panel this morning, there's major change going on. You guys were providing a lot of incentives, a lot of mentoring, this internships in conjunction with by rain. There's a lot of good things. Share some of the new things that you're working on, maybe deals you're talking about doing or >> way announced Thio kind of new things today. One is we have our we partake program, which I'm, of course, super passionate about. And that is about preventing tech learning and skills to women and underserved in representative communities. So we announced three other training programs here across the Middle East time. So those were put up today and you'll continue to see its role more and more of those out. And the other thing we did yesterday we announced a internship program with the minister of Youth here in Bahrain. That was shaped Nassir, who's a very famous He's that King san, and he's a very famous sportsmen. He does. He just won the Ironman Ironman and 2016. It was the world champion. He does endurance horse racing, so he's a He's a someone that the youth look at to here, and so he's doing all these programs. So we announced a partnership that were the first group doing the internship with this youth program, and so we're very excited. We're going to start that small and scale it, but we want to get these young people quickly and kind of get them excited. But here, what they focus on it is underrepresented communities. So it fits so nicely in with what we're doing with our attack. So you have both Oliver training our over 400 online courses that we offer with a dubious education academy. Now degree now our internship program and we protect. So, John, we're just getting going. I'm not saying that this is all will offer, but these are the things that were getting going with, and we need to make sure we also Taylor things like this Ministry of Youth program and sports at to the region in terms of water, their local needs, and we'll make sure that we're always looking >> at the entrance. Just just get him some great experience. Yes, so they can earn and feel good about themselves. This is kind of a key, exactly thing not just getting an internship, >> and it's, I think, locally it will be about teaching them to do that, disagree and commit really have that backbone to build that company and ask all those hard questions. So we're really going to try to indoctrinate them into the Amazon a TVs culture so we can help them be entrepreneurs like we are every day. >> And you got the data center, you got the city, the centers, you get the regions up and running, and architect, it perfectly suits up with people in it. Are you going to staff that with local talent, or is it gonna be Amazonian is coming in? What's the makeup of staff gonna be? What's the >> story? I mean, our goal is to hire as many local talent. We everywhere we go around the world. We want to get local talent because you can't yet if we did, First of all, we don't have enough people in our headquarters to bring folks in here, so we really have to train and educate. But locally, we have an office open here by rain. We haven't Office Open and Dubai and one down Saudi, and that is local talent. I mean, we are trying to use as much local talent and will continue to create that. And that's kind of the point. Jonas talking about the degree working backwards from what the employer needs. We want to give input because we think we also are getting good. Yeah, so we need to get the top. But we need those other individual employers that keep telling us we need more cloud skills to give that input. But, yeah, >> we're going to get a degree, migrate them into the job >> market, right quick like >> and educates. Been doing great. I learned a lot. This is a whole opportunity for people who want to make money, get a job. Amazon Web service is >> It's a place you could either work for us. Work for someone now, like even the government has a >> virus. Make a person tomorrow >> there. Yet >> we had one, >> but the point of being a builder, what we're seeing more and more John are these companies and government entities are building their talent internally. They're not outsourcing everything anymore, and the whole culture at being a builder, not just outsourcing all that. And that's what eight of us really helps all these entities. D'oh is moved quicker by having kind of some in house talent and not outsourcing everything to slow you down. That >> really thank ABC pointed that out beautifully in his point was, Hey, I'm gonna you know, I'm all in on AWS. We have domain expertise, We have data. That's our intellectual property. We're going to use that and be competitive and partner. And >> yes, and the new models it is. And that I p stays in house with that company or entity or government organization. It was so fun for me today to hear Shake some on from Maggie. A talk about the government is moving fast, and I think that's an example of a really are they figured out clown helps him just go a lot faster and save many security. >> I'm glad you brought that up. I know you got a short time here, but I want one last point in. We've been talking a lot about modernization of government, your success with C i a United States jet I contract still under consideration. All this going on you're experiencing by ranges and, um, unbelievable, fast moving government. They kind of get it. United States some places gets it. This is really about focusing in on the workloads. What have you learned? As you've been engaging these modernization efforts with governments summer slow, some of political ramifications behind. No one wants to lose. Old guard will hold onto the rails. We've seen that in the news, but this is coming fast. What are you learning? What do you >> take away its leadership? I mean, at the end of the day, all these things were driven by a very strong leaders. And even you can see everybody today on stage. It is leaders that make a decision that they wanted a faster and they want to modernize but have the capabilities. No matter if you're the U. S. Department of Defense. Ah, yes. Health and human resource is National Health Service in the UK or RG a hearing by rain, the government's or enterprises that we work with around the world. The key is leadership. And if there's that leader that is really strong and says we're moving, did you actually see organizations move a lot faster if you see people kind of waffle anger. I'm not sure, you know, that's when you can see the slowness. Wow, What I will tell you is from the early days of starting this business in 2010 the individuals that always move fastest for the mission owners because the mission owners of whatever the business West at a governmental level or enterprise, they said, we need to keep our mission going. So that's the reason they wanted to walk through this transformation. >> And now, I think, with developers coming in and started to see these employees for these companies saying, No, no, what's the reason why we can't go fast? That's right now a groundswell of pressure you see in both government, public sector and commercial. >> And you saw Mark Allen today on stage talking about security. It iss literally day. Zero thing for us, and the reason a lot of our customers are meeting faster now is because of security. Cloud is more secure in their meeting to the cloud for security because they feel like they could both optimize, move faster for workloads, and now they have security. Better, faster, cheaper security, bad design, >> Theresa always pleasure thinking coming. Spending time. Thank >> you for coming to Barbara Ryan. Thank you. So >> we're going global with you guys is seeing the global expansion 20 to 22nd region. 69 availabilities owns nine more coming. More regions. More easy. You guys doing great. Congratulations. >> Thank you. >> Secure. We are here in Bahrain. Form or coverage. Global coverage of the cube with Reese Carlson, vice president of worldwide public sector. She's running the show doing a great job. We're here more after the stroke break. Stay with us.

>> from Seattle WASHINGTON. It's the Q covering AWS Imagine brought to you by Amazon Web service is >> Hey, welcome back already, Jeffrey. Here with the cue, we're in downtown Seattle at the AWS. Imagine, Edie, you event. It's a small conference. It's a second year, but it'll crow like a weed like everything else does the of us. And it's all about Amazon and a degree. As for education, and that's everything from K through 12 community college, higher education, retraining vets coming out of the service. It's a really big area. And we're really excited to have fresh off his keynote presentations where he changed his title on me from what it was >> this morning tow. It was the senator duties >> David Raymond, the director of what was the Virginia Cyber Range and now is the U. S. Cyber range. Virginia Tech. David, Great to see you. >> Yeah, Thank you. Thanks. So the Virginia cyber age actually will continue to exist in its current form. Okay, Well, it'll still serve faculty and students in the in the Commonwealth of Virginia, funded by the state of Virginia. Now the U. S. Cyber Angel fund will provide service to folks outside over, >> so we jumped ahead. So? So it's back up. A step ladder is the Virginia, >> So the Virginia Cyber Range provides courseware and infrastructure so students could do hands on cyber security, educational activities in Virginia, high schools and colleges so funded by the state of Virginia and, um provides this service at no charge to the schools >> and even in high school, >> even in high school. Yes, so now that there are now cybersecurity courses in the Virginia Department of Education course catalogue as of two years ago, and I mean they've grown like wildfire, >> I'm just so a ton of talk here about skills gap. And there's tremendous skills gap. Even the machine's gonna take everybody's job. There's a whole lot of jobs are filled, but what's interesting? I mean, it's the high school angle is really weird. I mean, how do you Most high school kids haven't even kind of clued in tow, privacy and security, opting in and opting out. It's gotta be a really interesting conversation when now you bring security into that a potential career into that and directly reflects on all those things that you do on your phone. >> Well, I would argue that that's exactly the problem. Students are not exposed to cyber security, you know. They don't want the curia potentials are they really don't understand what it is we talked about. We talked about teenagers being digital natives. Really? They know how to use smartphones. They know how to use computers, but they don't understand how they work. And they don't understand the security aspects that go along with using all this technology. And I would argue that by the time a student gets into college they have a plan, right? So I have a student in college. He's he's gonna be a doctor. He knows what a doctor is. He heard of that his whole life. And in high school, he was able to get certified as a nursing assistant. We need cyber security in that same realm, right? If we start students in high school and we and we expose them to cybersecurity courses, they're all elective courses. Some of the students will latch onto it, and I'll say, Hey, this is what I want to be when I grew up. And in Virginia, we have we have this dearth of cyber security expertise and this is true across the country. In Virginia, right now, we have over 30,000 cyber security jobs that are unfilled. That's about 1/3 of the cyber security jobs in this state. And I mean, that's a serious problem, not only in Virginia but nationwide. And one of the ways to fix that is to get high school students exposed to cybersecurity classes, give them some real hands on opportunities. So they're really doing it, not just learning the words and passing the test, and I mean really again in Virginia, this is this is grown like wildfire and really thinks revolutionized cybersecurity education in the state. >> And what are some of the topics that say, a high school level, where you know you're kind of getting versed on the vocabulary and the terminology vs when they go into into college and start to take those types, of course, is >> yeah, so in Virginia, there's actually cybersecurity courses across the C T E career pathways. And so SETI is the career and technical education curricula. And so there are courses like cyber security and health care, where students learn about personal health data and how to secure that specific specific kinds of data, they learn about the regulations behind that data. There's healthcare in manufacturing, where students learn about industrial control systems and you know how those things need to be secured and how they're different from a laptop or a phone. And the way those air secured and what feeds into all of those courses is an introductory course. Cyber security fundamentals, where students learn some of the very basics they learn the terminology. They learn things like the C I. A. Triad right, confidentiality, integrity and availability of the three basic components of security that you try to maintain for any system. So they start out learning the basics. But still they're doing that hands on. So they're so they're in a network environment where they see that you know that later on in the course during Capstone exercises, they might see someone trying to attack a computer that they're that they're tasked to defend and a defender of what does that look like? What are the things that I'm going to do? That computer? You know, I might install anti virus. I might have a firewall on the computer. And how do I set that up and etcetera etcetera. So high school start with the basics. As as students progressed through their high school years, there are opportunities to take further more advanced classes in the high schools. And then when they get to college, some of those students are gonna have latched onto cyber security as a potential career field. Now, now we've got him right way, get him into the right into the right majors and into the right courses. And our hope is that that's gonna sort of kick start this pipeline of students in Virginia colleges, >> right? And then I wonder if you could >> talk a little bit about the support at the state level. And it's pretty interesting that you had him from the state level we heard earlier today about supported the state level. And it was Louisiana for for another big initiative. So you know that the fact that the governor and the Legislature are basically branding this at the state level, not the individual school district level, is a pretty strong statement of the prioritization that they're putting on this >> that has been critical to our success. If we didn't have state level support, significant state level support, there's no way we could be where we are. So the previous governor of Virginia, Terry McAuliffe, he latched on to cyber security education as one of his signature initiatives. In fact, he was the president of the State Governors Association, and in that role he cybersecurity was one of his condition. So so he felt strongly about educating K 12 education college students feeding that cybersecurity pipeline Onda Cyberangels one of one of a handful of different initiatives. So they were veterans scholarships, and there were some community college scholarships and other other initiatives. Some of those are still ongoing so far are not. But but Cyber Range has been very successful. Funded by the state provides a service at no cost to high schools and colleges on Dad's Been >> critically, I can't help. We're at our say earlier this year, and I'm just thinking of all the CEOs that I was sitting with over the course of a couple of days that are probably looking for your phone number right now. Make introduction. But I'm curious. Are are the company's security companies. I mean, Arcee is a huge show. Amazon just had their first ever security conference means a lot of money being invested in this space. Are they behind it? Have you have you looked for in a kind of private company participation to help? Because they desperately need these employees? >> Definitely. So we've just started down that road, Really? I mean, our state funding has kept us strong to this point in our state funding is gonna continue into the foreseeable future. But you're right. There are definitely opportunities to work with industry. Certainly a DBS has been a very strong partner of our since the very beginning. They really I mean, without without the help of some, some of their cloud architects and other technical folks way could not have built what we built in the eight of us. Cloud. We've also been talking to Palo Alto about using some of their virtual appliances in our network environments. So yeah, so we're definitely going down the road of industry partners and that will continue to grow, I'm sure >> So then fast forward today to the keynote and your your announcement that now you taking it beyond just Virginia. So now it's the U. S. Cyber range. Have that come apart? Come about. What does that mean? >> Yes, So we've been We've been sharing the story of the Virginia cyber range for the last couple of years, and I goto national conferences and talk about it. And, um, just to just sort of inform other states, other other school systems what Virginia's doing. How could you? How could you potentially match what we're doing and what The question that I keep getting is I don't want to reinvent the wheel. How can I buy what you have? And that's been sort of a constant drumbeat over the last couple of years. So we decided fairly early on that we might want to try to expand beyond Virginia, and it just sort of the conditions were right about six months ago. So we set a mark on the wall, he said. In Summer of 2019 we're gonna make this available to folks outside of Virginia. And so, so again, the Virginia Cyberangels still exist. Funded by the Commonwealth of Virginia, the U. S cyber range is still part of Virginia Tech. So within Virginia Tech, but we will have to we will have to essentially recoup our costs so we'll have to spend money on cloud infrastructure and We'll have to spend salary money on folks who support this effort. And so we'll recoup costs from folks that are outside of Virginia using our service. But, um, we think the costs are gonna be very competitive compared to similar efforts. And we're looking forward to some successes here. >> And do you think you're you're kind of breakthrough will be at the high school level, the You know, that underground level, you know, where do you kind of see the opportunities? You've got the whole thing covered with state support in Virginia. How does that get started in California? How's that get started here? Yeah, that's a Washington state. >> That's a great question. So really, when we started this, I thought we were building a thing for higher ed. That's my experience. I've been teaching cyber security and higher ed for several years, and I knew I knew what I would want if I was using it, and I do use it. So I teach classes at Virginia Tech Graduate program. So I I used the Virginia side in my class, and, um, what has happened is that the high schools have latched onto this as I mentioned, and Most of our users are high schools. In Virginia, we have 180. Virginia High School is using the Virgin Cyber. That's almost >> 188 1 >> 180. That's almost half the high schools in the state using the Virginia cyber age. So we think. And if you think about, you know, higher. Ed has been teaching cybersecurity classes that the faculty members who have been teaching them a lot of them have set up their own network infrastructure. They have it set up the way they want it, and it ties into their existing courseware, and you know they're going to use that, At least for now. What we provide is is something that makes it so that a high school or a community college doesn't have to figure out how to fund or figure out how to actually put this network architecture together. They just come to us. They have the flexibility of the flexibility to use, just are very basic plug and play network environments, or they have flexibility to, um, make modifications depending on how sophisticated they themselves are with with, you know, manipulating systems and many playing the network so so Our expectation is that the biggest growth is going to be in the high school market, >> right? That's great, because when you say cyber range God, finally, Donna me use it like a target range. It's like a place to go practice >> where the name comes from, right? >> Absolutely. If I finally like okay, I get it. So because it's not only the curriculum and the course where and everything else but it's actually an environment, it depends on the stage things and do things exactly >> So students could d'oh offensive, offensive and defensive cybersecurity activities. And so early on, when we were teaching students howto hack essentially in colleges, you know, there were people who were concerned about that on the military case we make for that is you can't teach somebody how to defend unless they understand how they're gonna be attacked. The same is true in this case. So all of our all of our course, where has lots of ethics and no other legal and other other discussions embedded throughout. So students understand the implications of what their actions would be if they do it somewhere else. And, um, right, these are all isolated network environments their places where students can get hands on in a place where they can essentially do whatever they want without causing trouble on the school network or on the Internet. And it's very much akin to a rifle range, >> right? Like you said, you can have different scenarios. And I would imagine there's probably gonna be competitions of you think. Fact. You know what's going on in the robotics world for lots of all these things, right? Like white hat, black hat hacker. Well, very, very exciting. David, Congratulations. And it sounds like you're well on your way. Thanks. Great. Alright, >> He's David. I'm Jeff. You're watching The Cube were at Washington State Convention Centre just across the street at a W s. Imagine. Thanks for watching. We'll see you next time. >> Thanks.

>> live from Boston, Massachusetts. It's the Cube covering A W s reinforce 2019 brought to you by Amazon Web service is and its ecosystem partners. >> Okay, welcome back. Everyone's two cubes Live coverage here in Boston, Massachusetts, for AWS reinforce. This is Amazon Web services Inaugural conference around Cloud security There first of what? Looks like we'll be more focused events around deep dive security to reinvent for security. But not no one's actually saying that. But it's not a summit. It's ah, branded event Reinforce. We're hearing Mark Ryland off director Office of the Sea. So at eight of us, thanks for coming back. Good to see you keep alumni. Yeah, I'm staying here before It's fun. Wait A great Shadow 80 Bucks summit in New York City Last year we talked about some of the same issues, but now you have a dedicated conference here on the feedback from the sea. So as we've talked to and the partners in the ecosystem is, it's great to have an event where they go deep dives on some of the key things that are really, really important to security. Absolutely. This is really kind of a vibe that how reinvents started, right? So reinventing was a similar thing for commercial. You're deep, not easy to us. Three here, deeper on Amazon. But with security. Yeah, security lens on some of the same issues. One thing that happened >> and kind of signal to us that we needed an event like this over the years with reinvent was consistently over the years, the security and compliance track became one of the most important tracks that was oversubscribed in overflow rooms and like, Hey, there's a signal here, right? And so, but at the same time, we wanted to be able to reach on audience. Maybe they wouldn't go to reinvent because they thought I'd say It's all the crazy Dale Ops guys were doing this cloud thing. But now, of course, they're getting the strong message in their security organizations like, Hey, we're doing cloud. Or maybe as a professional, I need to really get smart about this stuff. So it's been a nice transition from still a lot of the same people, but definitely the different crowd that's coming here and was a cross pollination between multiple and I was >> just at Public sector summit. They about cyber security from a national defense and intelligence standpoint. Obviously, threesome Carlson leads That team you got on the commercial side comes like Splunk who our data and they get into cyber. So you started to see kind of the intersection of all the kind of Amazon ecosystems kind of coming around security, where it's now part of its horizontal. It's not just these are the security vendors and partners writes pretty much everyone's kind of becoming native into thinking about security and the benefits that you guys have talk about that what Amazon has to have a framework, a posture. Yeah, they call it shared responsibility. But I get that you're sharing this with the ecosystem. Makes sense. Yeah, talk about the Amazon Web service is posture for this new security >> world. Well, the new security world is if you look at like a typical security framework like Mist 853 120 50 controls all these different things you need to worry about if you're a security professional. And so what eight obvious able to do is say, look, there's a whole bunch of these that we can take care of on your behalf. There's some that we'll do some things and you got to do some things and there's some There's still your responsibility, but we'll try to make it easy for you to do those parts. So right off the bat we can get a lot of wins from just hey, there's a lot of things will just take care of. And you could essentially delegate to us. And for the what remain, You'll take your expertise and you'll re focus it on more like applications security. There still may be some operating systems or whatever. If using virtual machine service, you still have to think about that. But even there, we'll use we have systems Manager will make it easy to do patch management, updating, et cetera. And if you're willing to go all the way to is like a lambda or some kind of a platform capability, make it super easy because all you gotta do is make sure your code is good and we'll take care of all the infrastructure automatically on your behalf so that share responsibility remains. There's a lot of things you still need to be careful about and do well, but your experts can refocus. They could be very you know like it's just a lot less to worry about it. So it's really a message for howto raise the bar for the whole community, but yet still have >> that stays online with the baby value properties, which is, you know, build stuff, ship fast, lower prices. I mazon ethos in general. But when you think about the core A. W. S what made it so great Waas you can reduce the provisioning of resource is to get something up and running. And I think that's what I'm taking away from the security peace you could say. We know Amazon Web service is really well, and we're gonna do these things. You could do that so us on them and then parts to innovate. So I get that. That's good. The other trend I want to get your reaction to is comments we've had on the Cube with si SOS and customers is a trend towards building in house coding security. Your point about Lambda some cool things air being enabled through a B s. There's a real trend of big large companies with security teams just saying, Hey, you know what? I wanna optimize my talent to code and be security focused on use cases that they care about. So you know, Andy Jazz talks about builders. You guys are about builders you got cos your customers building absolutely. Yet they don't want Tonto, but they are becoming security. So you have a builder mindset going on in the big enterprises. >> Yes, talk about that dynamic. That's a That's a really important trend. And we see that even in security organizations which historically were full of experts but not full of engineers and people that could write code. And what we're seeing now is people say, Look, I have all this expertise, but I also see that with a software defined the infrastructure and everything's in a P I. If I pair up in engineering team with a security professional team, then well, how good things will happen because the security specials will say, Gosh, I do this repetitive task all the time. Can you write code to do that like, Yeah, we can write code to do that. So now I can focus on things that require judgment instead of just more rep repetitive. So So there's a really nice synergy there, and our security customers are becoming builders as well, and they're codifying if you moment expression in code, a policy that used to be in a document. And now they write code this as well. If that policy is whatever password length or how often we rode a credentials, whatever the policy is where Icho to ensure that that actually happening. So it's a real nice confluence of security expertise with the engineering, and they're not building the full stack >> themselves. This becomes again Aki Agility piece I had one customer on was an SMS business. They imported to eight of US Cloud with three engineers, and they wrote all the Kuban aged code themselves. They could have used, you know, other things, but they wanted to make sure it's stable so they could bring in some suppliers that could add value. So, again, this is new. Used to be this way back in the old days, in House developers build the abs on the mainframe, build the APS on the mini computers and then on I went to outsourcing, so we're kind of back. The insourcing is the big trend now, >> right in with the smaller engineering team, I can do a lot that used to require so many more people with a big waterfall method and long term projects. And now I take all these powerful building blocks and put an engineering team five people or what we would call it to pizza team five or six people off to the side, given 34 weeks, and they can generate a really cool system that would have required months and not years before. So that's a big trend, and it applies across the board, including two security. >> I think there's a sea change, and I think it's clear what I like about this show is this cloud security. But it's also they have the on premises conversation, Mrs Legacy applications that have been secured and or need to be secured as they evolve. And then you got cloud native and all these things together where security has to be built in. Yeah, this is a key theme, so I want to get your thoughts on this notion of built in security from Day one. What's your what's your view on this? And how should customers start thinking >> about it? And >> what did you guys bringing to the table? Well, I think that's just a general say maturation that goes on in the industry, >> whether it's cloud or on Prem is that people realize that the old methods we used to use like, Hey, I'm gonna build a nap And then I'm gonna hand it to the security team and they're gonna put firewalls around it That's not really gonna have a good result. So security by design, having security is equal co aspect of If I'm getting doing an architecture, I look a performance. I look, it cost. I look at security. It's just part of my system designed. I don't think of it as like a bolt on afterwards, so that leads to things like, you know, Secure Dev ops and kind of integration teams through. This could be happening on premises to it's just part of I T. Modernization. But Cloud is clearly a driver as well, and cloud makes it easier because it's all programmable. So things that are still manual on premises, you can do in a more automated getting into a lot of conversations here under the covers, A lot of under the hood conversations here around >> security BC to one of the most popular service is you guys have obviously compute a big part of the mission Land, another of the feature VPC traffic flows, where mirroring was a big announcement. Like we talked about that a lot of talking about the E c two nitro. You gave a talk on that. Did you just unpacked it a little bit because this has been nuanced out there. It's out there people are interested in. What's that talk about inscription is, is in a popular conversation taking minutes? Explain your talk. Sure, So we've talked for now a year and 1/2 >> about how we've essentially rien. Imagine reinvented our virtual machine architecture, too. Go from a primarily soft defined system where you have a mainboard with memory and intel processor and all that kind of a coup treatments of a standard server. And then your virtual ization layer would run a full copy of an operating system, which we call a Dom zero privileged OS that would mediate access between the guest OS is in this and the outside world because it would maintain the device model like how do I talk to a network card? How I talked to a storage device. I talked through the hyper visor, but through also a dom zero Ah, copy of Lennox. A copy of Windows to do all that I owe. So what we just did over the past few years, we begin to take all the things we're running inside that privileged OS and move that into dedicated hardware software, harbor combination where we now have components we call nitro components their actual separate little computers that do dbs processing. They do vpc processing they do instance, storage. So at this point now, we've taken all of the components of that damn zero. We've moved it out into these You could call Cho processors. I almost think of them is like the Nitro controllers. The main processor and the Intel motherboard is a co processor where customer workloads run because the trust now is in these external all systems. And when you go to talk to the outside world from easy to now you're talking through these very trusted, very powerful co processors that do encryption. They do identity management for you. They do a lot of work that's off the main processor, but we can accelerate it. We could be more assured that it's trustworthy. It can it can protect itself from potential types of hacks that might have been exposed if that, say, an encryption key was in the and the main motherboard. Now it's not so it's a long story until one hour version and doing three minutes now. But overall we feel that we built a trustworthy system for virtual. What was the title of talk so people can find it online? So I was just called the night to architecture security implications of the night to architecture. So it's taking information that we had out there. But we're like highlighting the fact that if you're a security professional, you're gonna really like the fact that this system has it has no damn zero. It has no shell. You can't log into the system as a human being. It's impossible to log in. It's all software to find suffer driven, and all the encryption features air in these co processors so we can do like full line made encryption of 100 gigabits of network traffic. It's all encrypted like that's never been done before. Really, in the history of computing, what's the benefit of nitro architectural? Simply not shelter. More trust built into it a trusted root. That's not the main board encryption, off load and more isolation. Because even if I somehow we're toe managed to the impossible combination of facts to get sort of like ownership of that main board, I still don't have access to the outside world. From there, I have to go through a whole another layer of very secure software that mediates between the inner world of where customer were close run and the outside world where the actual cloud is. So it's just a bunch of layers that make things more secure, >> and I'm sure Outpost will have that as well. Can you waste on that? Seem to me to hear about that. Okay, Encryption, encrypt everything. Is it philosophy we heard in the keynote? You also talked about that as well. Um, encrypting traffic on the hour. I didn't talk about what that means. What was talked to you? What's the big conversation around? Encryption within a. W s just inside and outside. What's the main story there? >> There's a lot of pieces to the pie, but a big one that we were talking about this week is a pretty long term project we call Project lever. It was actually named after a ah female cryptographer. Eventually Park team that was help. You know, one of the major factors, including World War Two, are these mathematicians and cryptographers. So we we wanted to do a big scale encryption project. We had a very large scale network and we had, you know, all the features you normally have, but we wanted to make it so that we really encrypted everything when it was outside of our physical control. So we done that took a long time. Huge investment, really exciting now going forward, everything we build. So any time data that customers give to us or have traffic between regions between instances within the same region outside reaches, whenever that traffic leaves our physical control so kind of our building boundaries or gates and guards and going down the street on a fiber optic to another data center, maybe not far away or going inter continent intercontinental links are going sub oceanic links all those links. Now we encrypt all the traffic all the time. >> And what's the benefit of that? So the benefit of that is there. Still, you know, it's it's obscure, >> but there is a threat model where, you know, governments have special submarines that are known to exist that go in, sniff those transoceanic links. And potentially a bad guy could somehow get into one of those network junction points or whatever. Inspect traffic. It's not, I would say, a high risk, but it's possible now. That's a whole nother level of phishing attacks. Phishing attack, submarine You're highly motivated to sniff that line couldn't resist U. S. O. So that's now so people could feel comfortable that that protection exists and even things like here's a kind of a little bit of scare example. But we have customers that say, Look, I'm a European customer and I have a very strong sense of regional reality. I wanna be inside the European community with all my data, etcetera, and you know, what about Brexit? So now I've got all this traffic going through. A very large Internet peering point in London in London won't be part of Europe anymore according to kind of legal norms. So what are you doing in that case? Unless they Well, how about this? How about if yes, the packets are moving through London, but they're always encrypted all the time. Does that make you feel good? Yeah, that makes me feel good. I mean, I so my my notion of work as extra territorial extra additional congee modified to accept the fact that hey, if it's just cipher text, it's not quite the same as unscripted. >> People don't really like. The idea of encrypted traffic. I mean, just makes a lot of sense. Why would absolutely Why wouldn't you want to do that right now? Final question At this event, a lot of attendee high, high, high caliber people on the spectrum is from biz dab People building out the ecosystem Thio Hardcore check. He's looking under the hood to see SOS, who oversee the regime's within companies, either with the C i O or whatever had that was formed and every couple is different. But there's a lot of si SOS here to information security officers. You are in the office of the Chief Security Information officer. So what is the conversations they're having? Because we're hearing a lot of Dev ops like conversations in the security bat with a pretty backdrop about not just chest undead, but hack a phone's getting new stuff built and then moving into production operations. Little Deb's sec up So these kinds of things, we're all kind of coming together. What are you hearing from those customers inside Amazon? Because I know you guys a customer driven in the customers in the sea SOS as your customer. What are they saying? What are they asking for? So see, so's our first getting their own minds around >> this big technical transformations that are happening on dhe. They're thinking about risk management and compliance and things that they're responsible for. They've got a report to a board or a board committee say, Hey, we're doing things according to the norms of our industry or the regulated industries that we sit in. So they're building the knowledge base and the expertise and the teams that can translate from this sort of modern dev ops e thing to these more traditional frameworks like, Hey, I've got this oversight by the Securities Exchange Commission or by the banking regulators, or what have you and we have to be able to explain to them why our security posture not only is maintained, it in some ways improved in these in this new world. So they're they're challenge now is both developing their own understanding, which I think they're doing a good job at, but also kind of building this the muscle of the strength. The terminology translate between these new technologies, new worlds and more traditional frameworks that they sit within and people who give oversight over them. So you gotta risk. So there's risk committees on boards of these large publics organizations, and the risk committees don't know a lot about cloud computing. So s O they're part of what they do now is they do that translation function and they can say, Look, I've I've got assurance is based on my work that I do in the technology and my compliance frameworks that I could meet the risk profiles that we've traditionally met in other ways with this new technology. So it's it's a pretty interesting >> had translations with the C I A. Certainly in public sector, those security oriented companies, a cz well, as the other trend, they're gonna educate the boards and they're secure and not get hacked the obsolete. And then there's the innovation side of it. Yeah, we actually gotta build out. Yes. This is what we just talked about a big change for our C says. That we talk to and work with all the time is that hey, we're in engineering community now. We didn't used to write a lot of code, and now we do. We're getting strong in that way. Or else we're parting very closely with an engineering team who has dedicated teams that support our security requirements and build the tools. We need to know that things are going well from our perspective. So that's a really cool, I think, changing that. I think that is probably one >> of my favorite trends that I see because he really shows the criticality of security was pretty much all critically, only act. But having that code coding focus really shows that they're building in house use case that they care about and the fact that I can now get native network traffic. Yeah, and you guys are exposing new sets of service is with land and other things >> over the top. >> It just makes for a good environment to do these clouds. Security things. That seems to be the show >> in a nutshell. Yeah, I think that's one of the nice thing about this show. Is It's a very positive energy here. It's not like the fear and scary stuff sometimes hear it. Security conference is like a the sky's falling by my product kind of thing Here. It's much more of a collaborative like, Hey, we got some serious challenges. There's some bad guys out there. They're gonna come after us. But as a community using new tooling, new techniques, modern approaches, modernization generally like let's get rid of a lot of these crusty old systems we've never updated for 10 or 20 years. It's a positive energy, which is really exciting. Good Mark, get your insights out. So this is your wheelhouse Show. Congratulations. >> You got to ask you the question. Just take your see. So Amazon had off just as an industry participant riding this way, being involved in it. What is the most important story that needs to be told in the press? In the media that should be told what's as important. Either it's being told it, then should be amplified or not being told and be written out. What's the What's the top story? I don't think that even after all this time that you know when people >> hear public cloud computing. They still have this kind of instinctive reaction like, Oh, that sounds kind of scary or a little bit risky and, you know, way need to get to the point where those words don't elicit some sense of risk in people's minds, but rather elicit like, Oh, cool, that's gonna help me be secure instead of being a challenge. Now that's a journey, and people have to get there, and our customers who go deep, very consistently, say, And I'm sure you've had them say to you, Hey, I feel more confident in my cloud based security. Then I do my own premises security. But that's still not the kind of the initial reaction. And so were we still have a ways, a fear based mentality. Too much more >> of a >> Yeah. Modernization base like this is the modern way to get the results in the outcomes I want, and cloud is a part of that, and it doesn't not only doesn't scare me, I want to go there because it's gonna take a community as well. Yeah, Mark, thanks so much for coming back on the greatest. Be hearing great Mark Mark Riley, direct of the office of the chief information security at Amazon Web services here, sharing his inside, extracting the signal. But the top stories and most important things >> being being >> said and discussed and executed here, it reinforced on the Cube. Thanks for watching. We'll be right back with more after this short break.