>>Hey everyone. Welcome to the AWS partner showcase season one, episode three women in tech. I'm your host. Lisa Martin. I've got two female rock stars joining me. Next Vera Reynolds is here engineering manager, telemetry at honeycomb, and one of our Cub alumni, Danielle GShock ISV PSA director a at AWS joins us as well. Ladies. It's great to have you talking about a very important topic today. >>Thanks for having us. Yeah, thanks for having me. Appreciate it. >>Of course, Vera, let's go ahead and start with you. Tell me about your background and tech. You're coming up on your 10th anniversary. Happy anniversary. >>Thank you. That's right. I can't believe it's been 10 years, but yeah, I started in tech in 2012. I was an engineer for most of that time. And just recently, as of March switched to engineering management here at honeycomb and, you know, throughout my career, I was very much interested in all the things, right. And it was a big FOMO as far as trying a few different companies and products. And I've done things from web development to mobile, to platforms. It would be apt to call me a generalist. And in the more recent years, I was sort of gravitating more towards developer tool space. And for me, that came in the form of cloud Foundry circle CI, and now honeycomb. I actually had my eye on honeycomb for a while before joining, I came across a blog post by charity majors. Who's one of our founders and she was actually talking about management and how to pursue that and whether or not it's right for your career. >>And so I was like, who is this person? I really like her found the company. They were pretty small at the time. So I was sort of keeping my eye on them. And then when the time came around for me to look again, I did a little bit more digging, found a lot of talks about the product. And on the one hand, they really spoke to me as the solution. They talked about developers owning their coding in production and answering questions about what is happening, what are your users seeing? And I felt that pain, I got what they were trying to do. And also on the other hand, every talk I saw at the time was from an amazing woman, which I haven't seen before. So I came across charity majors again, Christine yen, who our other founder, and then Liz Frank Jones, who our principal developer advocate. And that really sealed the deal for me as far as wanting to work here. >>Yeah. Honeycomb is interesting. This is a female founded company. You're two leaders. You mentioned that you like the technology, but you were also attracted because you saw females in the leadership position. Talk to me a little bit about what that's like working for a female led organization at honeycomb. >>Yeah. You know, historically we have tried not to over index on that because there was this maybe fear or rareness of it taking away from our legitimacy as an engineering organization, from our success as a company. But I'm seeing that rhetoric shift recently because we believe that with great responsibility with great power comes great responsibility. And we're trying to be more intentional as far as using that attribute of our company. So I would say that for me, it was a choice between a few offers, right. And that was a selling point, for sure, because again, I've never experienced it and I've really seen how much they walk that walk. Even me being here and me moving into management, I think were both ways in which they really put a lot of trust and support in me. And so I it's been a great ride. >>Excellent. Sounds like it. Before we bring Danielle in to talk about the partnership. I do wanna have you here, talk to the audience a little bit about honeycomb, what technology it's delivering and what are its differentiators. >>Yeah, absolutely. So honeycomb is an observability tool that enables engineers to answer questions about the code that runs in production. And we work with a number of various customers. Some of them are Vanguard, slack. Hello, fresh. Just to name a couple. If you're not familiar with observability tooling, it's akin to traditional application performance monitoring, but we believe that observability is succeeding APM because APM tools were built at the time of monoliths and they just weren't designed to help us answer questions about complex distributed systems that we work with today, where things can go wrong anywhere in that chain. And you can't predict what you're gonna need to ask ahead of time. So some of the ways that we are different is our ability to store and query really rich data, which we believe is the key to understanding those complex systems. What I mean by rich data is something that has a lot of attributes. >>So for example, when an error happens, knowing who it happened to, which user ID, which I don't know region, they were in, what, what, what they were doing at the time and what was happening at the rest of your system. And our ingest engine is really fast. You can do it in as little as three seconds and we call data like this. I said, kind of rich data, contextual data. We refer it as having high ity and high dimensionality, which are big words. But at the end of the day, what that means is we can store and we can query this data and we can do it really fast. And to give you an example of how that looks for our customers, let's say you have a developer team who are using comb to understand and observe their system. And they get a report that a user is experiencing a slowdown or something's wrong. >>They can go into honeycomb and figure out that this only happens to users who are using a particular language pack with their app. And they operated their app last week, that it only happens when they are trying to upload a file. And so it's this level of granularity and being able to zoom in and out under data that allows you to understand what's happening, especially when you have an incident going on, right. Or your really important high profile customer is telling you that something's wrong. And we can do that. Even if everything else in your other tools looks fine, right? All of your dashboards are okay. You're not actually getting paged on it, but your customers are telling you that something's wrong. And we believe that's where we shine in helping you there. >>Excellent. It sounds like that's where you really shine that real time visibility is so critical these days. Danielle, Danielle, wanna bring you into the conversation. Talk to us a little bit about the honeycomb partnership from the AWS lens. >>Yeah. So excuse me, observability is obviously a very important segment in the cloud space, very important to AWS, because a lot of all of our customers, as they build their systems distributed, they need to be able to see where, where things are happening in the complex systems that they're building. And so honeycomb is a, is an advanced technology partner. They've been working with us for quite some time and they have a, their solution is listed on the marketplace. Definitely something that we see a lot of demand with our customers, and they have many integrations, which, you know, we've seen is key to success. Being able to work seamlessly with the rest of the services inside of the AWS platform. And I know that they've done some, some great things with people who are trying to develop games on top of AWS things in that area as well. And so very important partner in the observa observability market that we have. >>Vera a back to you, let's kind of unpack the partnership, the significance that honeycomb ha is getting from being partners with an organization as potent and pivotal as AWS. >>Yeah, absolutely. I Don know that this Predates me to some extent, but I Don know for a long time, AWS and honeycomb has really pushed the envelope together. And I think it's a beneficial relationship for both ends. There's kind of two ways of looking at it. On the one side, there is our own infrastructure. So honeycomb runs on AWS and actually one of our critical workloads that supports that fast query engine that I mentioned uses Lambda. And it does also in a pretty unorthodox way. So we've had a long standing conversation with the AWS team as far as drawing outside those lines and kind of figuring out how to use the technology in a way that works for us and hopefully will work for other customers of theirs as well. That also allows us to ask for early access for certain features when they become available. >>And then that way we can be sort of the Guinea pigs and try things out in a way that migrates our system and optimizes our own performance, but also allows again, other customers of AWS to follow in that path. And then the other side of that partnership is really supporting our customers who are both honeycomb users and AWS users, because it's, as you imagine, quite a big overlap, and there are certain ways in which we can allow our customers to more easily get their data from AWS to honeycomb. So for example, last year, we built a tool based on the new Lambda extension capability that allowed our users who run their applications in Lambdas to get that tele telemetry data out of their applications and into honeycomb and demand was win-win >>Excellent. So I'm hearing a lot of synergies from a technology perspective, you're sticking with you, and then Danielle will bring you in. Let's talk about how honeycomb supports D E and I across its organization. And how is that synergistic with AWS's approach Vera? >>Yeah, absolutely. So I sort of alluded to that hesitancy to over index on the women led aspect of ourselves. But again, a lot of things are shifting, we're growing a lot. And so we are recognizing that we need to be more intentional with our DEI initiatives, and we also notice that we can do better and we should do better. And to that end, we're doing a few things differently that are pretty recent initiatives. We are partnering with organizations that help us target specific communities that are underrepresented in tech. Some examples would be Africa, tech hu Latinas in tech among a number of others. And another initiative is DEI head start. That's something that is an internal practice that we started that includes reaching out to underrepresented applicants before any new job for honeycomb becomes live. So before we posted to LinkedIn, before it's even live on our job speech, and the idea there is to kind of balance our pipeline of applicants, which the hope is will lead to more diverse hires in the long term. >>That's a great focus there. Danielle, I know we've talked about this before, but for the audience, in terms of the context of the honeycomb partnership, the focus at AWS for D E and I is really significant, unpack that a little bit for us. >>Well, let me just bring it back to just how we think about it with the companies that we work with, but also in, in terms of, you know, what we want to be able to do, excuse me, it's very important for us to, you know, build products that reflect the customers that we have. And I think, you know, working with a company like honeycomb that is looking to differentiate in a space by, by bringing in, you know, the experiences of many different types of people I genuinely believe. And I'm sure Vera also believes that by having those diverse perspectives, that we're able to then build better products for our customers. And, you know, it's one of, one of our leadership principles is, is rooted in this. I write a lot, it asks for us to seek out diverse perspectives and you can't really do that if everybody kind of looks the same and thinks the same and has the same background. So I think that is where our de and I, you know, I thought process is rooted and, you know, companies like honeycomb that give customers choice and differentiate and help them to do what they need to do in their unique environments is super important. So >>The, the importance of thought diversity cannot be underscored enough. It's something that is, can be pivotal to organizations. And it's very nice to hear that that's so fundamental to both companies, Barry, I wanna go back to you for a second. You, I think you mentioned this, the DEI head start program, that's an internal program at honeycomb. Can you shed a little bit of light on that? >>Yeah, that's right. And I actually am in the process of hiring a first engineer for my team. So I'm learning a lot of these things firsthand and how it works is we try to make sure to pre-load our pipeline of applicants for any new job opening we have with diverse candidates to the best of our abilities. And that can involve partnering with the organizations that I mentioned or reaching out to our internal network and make sure that we give those applicants a head start, so to speak. >>Excellent. I like that. Danielle, before we close, I wanna get a little bit of, of your background. We've got various background in tech, she's celebrating her 10th anniversary. Give me a, a short kind of description of the journey that you've navigated through being a female in technology. >>Yeah, thanks so much. I really appreciate being able to share this. So I started as a software engineer back actually in the late nineties during the, the first.com bubble and have, have spent quite a long time actually as an individual contributor, probably working in software engineering teams up through 2014 at a minimum until I joined AWS as a customer facing solutions architect. I do think spending a lot of time, hands on, definitely helped me with some of the imposter syndrome issues that folks suffer from not to say I don't at all, but it, it certainly helped with that. And I've been leading teen at AWS since 2015. So it's really been a great ride. And like I said, I'm very happy to see all of our engineering teams change as far as their composition. And I'm, I'm grateful to be part of it. >>It's pretty great to be able to witness that composition change for the better last question for each of you. And we're almost out of time and Danielle, I'm gonna stick with you. What's your advice, your recommendations for women who either are thinking about getting into tech or those who may be in tech, maybe they're in individual contributor positions, and they're not sure if they should apply for that senior leadership position. What do you advise them to do? >>I mean, definitely for the individual contributors, tech tech is a great career direction and you will always be able to find women like you, you have to maybe just work a little bit harder to join, have community in that. But then as a leader, representation is very important and we can bring more women into tech by having more leaders. So that's my, you just have to take the lead, >>Take the lead. Love that various same question for you. What's your advice and recommendations for those maybe future female leaders in tech? >>Yeah, absolutely. Danielle mentioned imposter syndrome and I think we all struggle with it from time to time, no matter how many years it's been. And I think for me, for me, the advice would be if you're starting out, don't be afraid to ask questions and don't be afraid to kind of show a bit, a little bit of ignorance because we've all been there. And I think it's on all of us to remember what it's like to not know how things work. And on the flip side of that, if you are a more senior IC or in a leadership role, also being able to model just saying, I don't know how this works and going and figuring out answers together because that was a really powerful shift for me early in my career is just to feel like I can say that I don't know something. >>I totally agree. I've been in that same situation where just ask the question because you I'm guaranteed. There's a million outta people in the room that probably has the, have the same question and because an imposter syndrome don't wanna admit, I don't understand that. Can we back up, but I agree with you. I think that is one of the best things. Raise your hand and ask a question, ladies. Thank you so much for joining me talking about honeycomb and AWS, what you're doing together from a technology perspective and the focus efforts that each company has on D E and I, we appreciate your insights. >>Thank you so much for having us talking to >>My pleasure. Likewise, for my guests, I'm Lisa Martin. You're watching the AWS partner showcase women in.

>>Okay, welcome back everyone to San Francisco, live coverage here with the cube 80, be summit 2022. We're back in person. I'm John furry host of the cube. We'll be at the 80 us summit in New York city. This summer, check us out then. But right now, two days in San Francisco, getting all the coverage what's going on in the cloud, we got a cube, alumni and friend of the cube. I dos car CEO, investor, a Sierra, and also an investor and a bunch of startups, angel investor. I'm gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see. See you, sir. Chris pump. Cool. How are you? >>Good. How are you? >>So congratulations on all your investments. Uh, you've made a lot of great successes over the past couple years and your company raising some good cash as Sarah. So give us the update. How much cash have you guys raised? What's the status of the company product what's going on? >>First of all, thank you for having me. We're back to be business with you never while after. Great to see you. Um, so I, as the company started around four years back, I invested with a few of the investors and now I'm the CEO. Um, we have raised close to a hundred million there. The investors are people like nor west Menlo, true ventures, coast, lo ventures, Ram Shera, and all those people all well known guys, Andy Beel chime Paul Mo Mayard web. So a whole bunch of operating people and, uh, Silicon valley vs are involved >>And has it gone? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISRA is going after is what I call the applying AI for customer service. It operations, it help desk, uh, the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and service now to take it the next stage? Well >>Of having you on the cube, Dave and I, David ante as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a, you're like a guest analyst. <laugh> >>You know who done? You >>Get the comment, this fun to talk to you though, you >>Get the commentary, you you're your finger on the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud scale. You predicted that we talked about in the cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing Docker just raised a hundred million on a 2 billion valuation back from the debt after they pivoted from an enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control, plane emerging, AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded, observability there's 10 million observability companies. Data is the key. What's your angle on this? What's your take? Yeah, >>No, look, I think I'll give you the view that I see right from my side. Obviously data is very clear. So the things that system of recorded you and me talked about the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud native, it'll be called AI. Native NATO is a new buzzword and using the AI for customer service it operations. We talk about observability. I call it AI ops, applying ops for good old it operations management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events incidents. So I see a lot of work clicking for AIOps and AI service desk. What used to be help desk with ServiceNow BMC <inaudible> you see a new, a layer emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflows, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with AI workflows. So you'll see AI going off >>Is RPA a company is AI, is RPA a feed of something bigger? Or can someone have a company on RPA UI pass? One will be at their event this summer? Um, is it a product company? I mean, I mean, RPA is almost, should be embedded in everything. It's a feature. >>It is very good point. Very, very good thing. So one is, it's the category for sure. Like it's a category, it's an area where RPA maybe change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company also, but that automation should be ed in every area. Yeah. Like we call cloud NATO and AI NATO. It'll become automation. NATO. Yeah. And that's your thinking? So >>It's most interesting me. I think about the, what you're talking about. What's coming to my is I'm kinda having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it was middleware. It sat between two things and then the middle and it was software abstraction. Now you have all kinds of workflows abstractions everywhere. So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed. Are they integrated? I mean, these are the challenges. This is crazy. What's the, >>So don't put the database became called polyglot databases. Yeah. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area like you you're talking about. It should be part of service. Now it should be part of ISRA, like every company, every Salesforce. So that's why you see it. MuleSoft and Salesforce buying RPA companies. So you'll see all the SaaS companies, cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also have an automation as a layer <inaudible> inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind us, you got the expo hall, got, um, we're back to vents, but you got, you know, AMD, Clum, Ove, uh, Dynatrace data, dog, innovative all the companies out here that we know. And we interview them all. They're trying to be suppliers to this growing enterprise market. Right. Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Deibel later today. He's a former NEA guy and we always talk to Jerry, Jen. We know all the, the VCs. What does the startups look like? What does the, to of the, in your mind, cuz you, I know you invest the entrepreneurial founder situation. Cloud's bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's code. Yes. Basically. Data's everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to two things that I'm seeing out there. Remember days of Amazon created the startups 15 years back, everybody built on Amazon now Azure and GCP. The next layer would be is people don't just build on Amazon. They're going build it on top of snowflake. Companies are snowflake becomes the data platform, right? People will build on snowflake. Right? So I, my old boss Blankman trying to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer. Right? So I think that's the next level of <inaudible> trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis a couple months ago called castles in the cloud where your moat is, what you do in the cloud. Not necessarily in the, in the IP. Um, Dave LAN and I had last reinvent, coined the term super cloud. Right's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldmans Sachs is doing. You're starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage. And guys like Charles Fitzgerald out there who we like was kind of shitting on us saying, Hey, you guys terrible, they didn't get him. Like, yeah, I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. He's cool. Um, but snowflake is on Amazon. Yes. Now they say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist and, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. >>It is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to everything on Amazon where possible whatever is, I cannot build, I'll make the pass layer. Remember the middle layer pass will be snowflake so I can build it on snowflake. I can use them for data layer. If I really need do size, I'll build it on force.com Salesforce. Yeah. Right. So I think that's where you'll. >>So basically the, the, if you're an entrepreneur, the, the north star in terms of the, the outcome is be a super cloud. It is, That's the application on another big CapEx ride, the CapEx of AWS or >>Cloud, and that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. >>Yeah. Yeah. How are, how is Amazon and the clouds dealing with these big whales, the snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think they had Redshift. Amazon has got Redshift, um, but snowflakes, a big customer and the they're probably paying AWS, I think bills too. So >>John video it's like whole Netflix is, and Amazon prime Netflix runs on Amazon, but Amazon has Amazon prime that co-optation will be there. So Amazon will have Redshift, but Amazon is also partnering with, uh, snowflake to have native snowflake data warehouses, a data layer. So I think depending on the applic use case, you have to use each of the above. I think snowflake is here for a long term. So if I'm building an application, I want to use snowflake then, right. Think from stats. >>Well, I think that it comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, You know, foreclose your value. That's right. With some sort of internal hack. But I think, I think the general question that I have is that I, I think it's okay to have a super cloud like that because the rising tide is still happening. Some point, when does the rising tide stop >>And >>The people shopping up their knives, it gets more competitive or is it just an infinite growth cycle? >>I think it's growth. You call it cloud scale. You invented the word cloud scale. So I think, look, cloud will continually agree, increase. I think there's, as long as there are more movement from on, uh, on-prem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations, it helpless, even the customer service service now and, uh, ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go >>Made. I wanna get your thoughts for the folks watching that are, uh, enterprise buyers or practitioners, not suppliers to the market, feel free to text me or DMing next. Question's really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products, cuz you know, the big enterprises now and you know, small, medium, large, and large enterprise, they're all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between startup selling to, or growing startup selling to an enterprise? Um, have you seen changes there? I mean I'm seeing some stuff, but why don't we get your thoughts on that? What, no, it >>Is. If I remember going back to our 2007 or eight, when I used to talk to you back then and Amazon started very small, right? We an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or one person today. Most companies are already spending 20, 30% with startups. Like if I look at a CIO, a line of business it's gone. Yeah. Can it go more? I think it can double in the next four, five years. Yeah. Spending on the startups. >>Yeah. And check our, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want get your reaction because I, I reference the URL cause it's like, there's like a bunch of companies we've been promoting because the solutions that startups have actually are new stuff. Yes. It's bending, it's shifting left for security or using data differently or are um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there. Um, and goes back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona. You mentioned a AIOps we've been seeing AOPs IOPS blue booming and that's creating a new developer paradigm that's right. Which we call and coin data as code data as code is like infrastructure as code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this to engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same things? Do you agree? Um, do you disagree or can you share >>Yourself? I, no, I have a lot of thoughts that first is I see the AOP solutions in the future should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone through it. Like I spend a lot of time with data dog, Cisco app dynamic, right? Dynatrace, all this solution will go future towards predict to proactive solution with AOPs. But what you bring of a very good point on the data side, I think like we have a Amazon marketplace and for startup, there should be data exchange where you want to create for AOPs and AI service desk customers that give the data, share the data because we thought the data algorithms are useless. I can come the best algorithm, but I gotta train them, modify them, tweak them, make >>Them >>Better, make them better. Yeah. And I think there are a whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that data is very important. >>You've always been on, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to big data days back in 2009, you know, >>Look at, look how much data bricks has grown. >>It is double, the >>Key cloud air kinda went private, so good stuff. But what are you working on right now? Give a, give a, um, plug for what you're working on. You'll still invest strength. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. >>So >>Right. ISRA is my number one baby right now. So I'm looking at that growing customers and my customers. Some of them you like it's zoom auto desk, MacAfee, uh, grantor. So all the top customers, um, mainly for it help desk customer service ops. Those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What what's their need? What category is it? >>I think the look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on, predict ours one area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value. Prop. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service. >>Great stuff, man. Great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the key. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of Aish summit 2022. And we're gonna be at a summit in San, uh, in New York in the summer. So look for that on this calendar, of course, go to Aish startups.com and mention that it's ay for all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break.

More bottoms up and have more technical early adopters. And generally speaking, they're free to use. They're free to try. They're very commonly community source or open source companies where you have a large technical community that's supporting them. So there's a, there's kind of a new normal now I think in great enterprise software and it starts with great technical founders with great products and great bottoms of emotions. And I think there's no better place to, uh, service those people than in the cloud and uh, in, in your community. >>Well, first of all, congratulations, and by the way, you got a great pedigree and great background, super smart, but Myer of your work and your, and, and your founding, but let's face it. Enterprise is hot because digital transformation is all companies there's no, I mean, consumer is enterprise now, everything is what was once a niche. No, I won't say niche category, but you know, not for the faint of heart, you know, investors, >>You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. <laugh> but remember, like right now there's also a tech and VC conference in Miami <laugh> and it's covering cryptocurrencies and FCS and web three. So I think beauty is definitely in the eye of the beholder <laugh> but no, I, I will tell you, >>Ts is one big enterprise, cuz you gotta have imutability you got performance issues. You have, I IOPS issues. >>Well, and, and I think all of us here that are, uh, may maybe students of history and have been involved in open source in the cloud would say that we're, you know, much of what we're doing is, uh, the predecessors of the web web three movement. And many of us I think are contributors to the web three >>Movement. The hype is definitely one web three. Yeah. >>But, >>But you know, >>For sure. Yeah, no, but now you're taking us further east of Miami. So, uh, you know, look, I think, I, I think, um, what is unquestioned with the case now? And maybe it's, it's more obvious the more time you spend in this world is this is the fastest growing part of enterprise software. And if you include cloud infrastructure and cloud infrastructure spend, you know, it is by many measures over, uh, $500 billion in growing, you know, 20 to 30% a year. So it it's a, it's a just incredibly fast, well, >>Let's get, let's get into some of the cultural and the, the shifts that are happening, cuz again, you, you have the luxury of being in enterprise when it was hard, it's getting easier and more cooler. I get it and more relevant <laugh> but there's also the hype of like the web three, for instance, but you know, for, uh, um, um, the CEO snowflake, okay. Has wrote a book and Dave Valenti and I were talking about it and uh, Frank Luman has says, there's no playbooks. We always ask the CEOs, what's your playbook. And he's like, there's no playbook, situational awareness, always Trump's playbooks. So in the enterprise playbook, oh, higher, a direct sales force and SAS kind of crushed that now SAS is being redefined, right. So what is SAS is snowflake assassin or is that a platform? So again, new unit economics are emerging, whole new situation, you got web three. So to me there's a cultural shift, the young entrepreneurs, the, uh, user experience, they look at Facebook and say, ah, you know, they own all my data and you know, we know that that cliche, um, they, you know, the product. So as this next gen, the gen Z and the millennials come in and our customers and the founders, they're looking at things a little bit differently and the tech better. >>Yeah. I mean, I mean, I think we can, we can see a lot of common across all successful startups and the overall adoption of technology. Um, and, and I would tell you, this is all one big giant revolution. I call it the user driven revolution. Right. It's the rise of the user. Yeah. And you might say product like growth is currently the hottest trend in enterprise software. It's actually like growth, right. They're one and the same. So sometimes people think the product, uh, is what is driving growth. >>You just pull the product >>Through. Exactly, exactly. And so that's that I, that I think is really this revolution that you see, and, and it does extend into things like cryptocurrencies and web three and, you know, sort of like the control that is taken back by the user. Um, but you know, many would say that, that the origins of this, but maybe started with open source where users were contributors, you know, contributors were users and looking back decades and seeing how it, how it fast forward to today. I think that's really the trend that we're all writing. It's enabling these end users. And these end users in our world are developers, data engineers, cybersecurity practitioners, right. They're really the, and they're really the, the beneficiaries and the most, you know, kind of valued people in >>This. I wanna come back to the data engineers in a second, but I wanna make a comment and get your reaction to, I have a, I'm a gen Xer technically. So for not a boomer, but I have some boomer friends who are a little bit older than me who have, you know, experienced the sixties. And I have what been saying on the cube for probably about eight years now that we are gonna hit digital hippie revolution, meaning a rebellion against in the sixties was rebellion against the fifties and the man and, you know, summer of love. That was a cultural differentiation from the other one other group, the predecessors. So we're kind of having that digital moment now where it's like, Hey boomers, Hey people, we're not gonna do that anymore. You, we hate how you organize shit. >>Right. But isn't this just technology. I mean, isn't it, isn't it like there used to be the old adage, like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would get fired if you bought IBM. And I mean, it's just like the, the, I think, I think >>During the mainframe days, those renegades were breaking into Stanford, starting the home group. So what I'm trying to get at is that, do you see the young cultural revolution also, culturally, just, this is my identity NFTs to me speak volumes about my, I wanna associate with NFTs, not single sign on. Well, >>Absolutely. And, and I think like, I think you're hitting on something, which is like this convergence of, of, you know, societal it'll trends with technology trends and how that manifests in our world is yes. I think like there is unquestionably almost a religion yeah. Around the way in which a product is built. Right. And we can use open source, one example of that religion. Some people will say, look, I'll just never try a product in the cloud if it's not open source. Yeah. I think cloud, native's another example of that, right? It's either it's, you know, it either is cloud native or it's not. And I think a lot of people will look at a product and say, look, you know, you were not designed in the cloud era. Therefore I just won't try you. And sometimes, um, like it or not, it's a religious decision, right? Yeah. It's so it's something that people just believe to be true almost without, uh, necessarily caring >>About data. Data drives all decision making. Let me ask you this next question. As a VC. Now you look at pitch, well, you've been a VC for many years, but you also have the founder entrepreneurial mindset, but you can get empathize with the founders. You know, hustle is a big part of the, that first founder check, right? You gotta convince someone to part with their ch their money and the first money in which you do a lot of it's about believing in the person. So faking it till you make it is hard. Now you, the data's there, you either have it cloud native, you either have the adaption or traction. So honesty is a big part of that pitch. You can't fake it. >>Oh, AB absolutely. You know, there used to be this concept of like the persona of an entrepreneur. Right. And the persona of the entrepreneur would be, you know, so somebody who was a great salesperson or somebody who tell a great story, and I still think that that's important, right. It still is a human need for people to believe in narratives and stories. Yeah. But having said that you're right. The proof is in the pudding, right. At some point you click download and you try the product and it does what it says it gonna it's gonna do, or it doesn't, or it either stands up to the load test or it doesn't. And so I, I feel like in the new economy that we live in, really, it's a shift from maybe the storytellers and the creators to, to the builders, right. The people that know how to build great product. And in some ways the people that can build great product yeah. Stand out from the crowd. And they're the ones that can build communities around their products. And, you know, in some ways can, um, you know, kind of own more of the narrative of because their product begins exactly >>The volume you back to the user led growth. >>Exactly. And it's the religion of, I just love your product. Right. And I, I, I, um, Doug song is the founder of du security used to say, Hey, like, you know, the, the really like in today's world of like consumption based software, like the user is only gonna give you 90 seconds to figure out whether or not you're a company that's easy to do business with. Right. And so you can say, and do all the things that you want about how easy you are to work with. But if the product isn't easy to install, if it's not easy to try, if it's not, if, if the it's gotta speak to the, >>Speak to the user, but let me ask a question now that for the people watching, who are maybe entrepreneurial entre, preneurs, um, masterclass here in session. So I have to ask you, do you prefer, um, an entrepreneur come in and say, look at John. Here's where I'm at. Okay. First of all, storytelling's fine with you an extrovert or introvert, have your style, sell the story in a way that's authentic, but do you, what do you prefer to say? Here's where I'm at? Look, I have an idea. Here's my traction. I think here's my MVP prototype. I need help. Or do, do you wanna just see more stats? What's the, what's the preferred way that you like to see entrepreneurs come in and engage? >>There's tons of different styles, man. I think the single most important thing that every founder should know is that we, we don't invest in what things are today. We invest in what we think something will become. Right. And I think that's why we all get up in the morning and try to build something different, right? It's that we see the world a different way. We want it to be a different way. And we wanna work every single moment of the day to try to make that vision a reality. So I think the more that you can show people where you want to be the, of more likely somebody is gonna align with your vision and, and wanna invest in you and wanna be along for the ride. So I, I wholeheartedly believe in showing off what you got today, because eventually we all get down to like, where are we and what are we gonna do together? But, um, no, I, you gotta >>Show the >>Path. I think the single most important thing for any founder and VC relationship is that they have the same vision. Uh, if you have the same vision, you can, you can get through bumps in the road, you can get through short term spills. You can all sorts of things in the middle. The journey can happen. Yeah. But it doesn't matter as much if you share the same long term vision, >>Don't flake out and, and be fashionable with the latest trends because it's over before you can get there. >>Exactly. I think many people that, that do what we do for a living, we'll say, you know, ultimately the future is relatively easy to predict, but it's the timing that's impossible to predict. <laugh> so you, you know, you sort of have to balance the, you know, we, we know that the world is going in this way and therefore we're gonna invest a lot of money to try to make this a reality. Uh, but some times it happens in six months. Sometimes it takes six years. Sometimes it takes 16 years. Uh, >>What's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at right now with Bel partners, Tebel dot your site. What's the big wave. What's your big >>Wave. There's three big trends that we invest in. And the they're the only things we do day in, day out one is the explosion and open source software. So I think many people think that all software is unquestionably moving to an open source model in some form or another yeah. Tons of reasons to debate whether or not that is gonna happen, an alwa timeline >>Happening forever. >>But, uh, it is, it is accelerating faster than we've ever seen. So I, I think it's, it's one big, massive wave that we continue to ride. Um, second is the rise of data engineering. Uh, I think data engineering is in and of itself now, a category of software. It's not just that we store data. It's now we move data and we develop applications on data. And, uh, I think data is in and of itself as big of a market as any of the other markets that we invest in. Uh, and finally, it's the gift that keeps on giving. I've spent my entire career in it. We still feel that security is a market that is underinvested. It is, it continues to be the place where people need to continue to invest and spend more money. Yeah. Uh, and those are the three major trends that we run >>And security, you think we all need a dessert do over, right? I mean, do we need you do over in security or is what's the core problem? I, >>I, I keep using this word underinvested because I think it's the right way to think about the problem. I think if you, I think people generally speaking, look at cybersecurity as an add-on. Yeah. But if you think about it, the whole economy is moving online. And so in, in some ways like security is core to protecting the digital economy. And so it's, it shouldn't be an afterthought, right? It should be core to what everyone is doing. And that's why I think relative to the trillions of dollars that are at stake, uh, I believe the market size for cybersecurity is run $150 billion. And it still is a fraction of what we're, >>What we're and national security even boom is booming now. So you get the convergence of national security, geopolitics, internet digital that's >>Right. You mean arguably, right? I mean, arguably again, it's the area of the world that people should be spending more time and more money given what to stake. >>I love your thesis. I gotta, I gotta say, you gotta love your firm. Love. You're doing we're big supporters, your mission. Congratulations on your entrepreneurial venture. And, uh, we'll be, we'll be talking and maybe see a Cuban. Uh, absolutely not. Certainly EU maybe even north Americans in Detroit this year. >>Huge fan of what you guys are doing here. Thank you so much for helping me on the show. >>Guess be VC Johnson here on the cube. Check him out. Founder for founders here on the cube, more coverage from San Francisco, California. After this short break, stay with us. Everyone. Welcome to the cue here. Live in San Francisco. K warn you for AWS summit 2022 we're live we're back with events. Also we're virtual. We got hybrid all kinds of events. This year, of course, summit in New York city is happening this summer. We'll be there with the cube as well. I'm John. Again, John host of the cube. Got a great guest here, Justin Kobe owner, and CEO of innovative solutions. Their booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, uh, off camera about some of the work you're doing. You're the owner of and CEO. Yeah. Of innovative. Yeah. So tell us the story. What do you guys do? What's the elevator pitch. >>Yeah. <laugh> so the elevator pitch is we are, uh, a hundred percent focused on small to mid-size businesses that are moving to the cloud, or have already moved to the cloud and really trying to understand how to best control security, compliance, all the good stuff that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is, but now we have offices down in Austin, Texas, up in Toronto, uh, Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago. And it's been a great ride. >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by a of us. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demands coming from cloud migrations and application modernization, but obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? >>Yeah. It's a great question. Every CEO I talk to, that's a small mids to size business. They're all trying to understand how to leverage technology better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech is really at the, at the forefront and the center of that. So most customers are coming to us and they're of like, listen, we gotta move to the cloud or we move some things to the cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then so, uh, progressively working through a modernization strategy is always the better approach. And so we spend a lot of time with small to mid-size businesses who don't have the technology talent on staff to be able to do >>That. Yeah. And they want to get set up. But the, the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off happening around everywhere. It is not it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more IOT devices. What's that like right now from a challenge and problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem. And you guys solve >>In the SMB space. The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and our hardened solutions. And so, um, what we try to do with, to technology staff that has traditional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether that's, we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I talk to yeah. Feel like, listen, at the end of the day, I'm gonna be spending money in one place or another, whether that's on primer in the cloud, I just want know that I'm doing that way. That helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is, is no. No. Good. >>How about factoring in the, the agility and speed equation? Does that come up a lot? It >>Does. I think, um, I think there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time. Yeah. In the cloud, if you start down your journey in one way and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's a, gives you a much higher density for making decisions and failing >>Forward. Well actually shutting down the abandoning, the projects that early, not worrying about it, you got it mean most people don't abandon stuff cuz they're like, oh, I own it. >>Exactly. >>And they get, they get used to it. Like, and then they wait too long. >>That's exactly. >>Yeah. Frog and boiling water, as we used to say, oh, it's a great analogy. So I mean, this, this is a dynamic. That's interesting. I wanna get more thoughts on it because like I'm a, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you guys come in. I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talked to at reinvent, that's a customer. Well, how many announcements did Andy jazzy announcer Adam? You know, the 5,000 announcement or whatever. They did huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just processes. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are >>Values. >>Our mission is, is very simple. We want to help every small to midsize business leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we go to market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a 10 a company in the process of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your it department to make all those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our managed services. Meaning they know that we have their back and we're the safety net. So when a customer is saying, right, I'm gonna spend a couple thousand and dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going in alone. Who's there to help protect that. Number two, if you have a security posture and let's just say your high profile and you're gonna potentially be more vulnerable to security attacks. If you have a partner that's offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products, uh, that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own. It, it would cost 'em a four, >>The training alone would be insane. A risk factor. I mean the cost. Yes, absolutely opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 2018. When, uh, when we, he made the decision to go all in on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious, it wasn't requirement. It still isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front >>Desk and she could be running the Kubernetes clusters. I >>Love it. It's >>Amazing. >>But I'll tell you what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get >>The right people with. And that's a cultural factor that you guys have. So, so again, this is back to my whole point out SMBs and businesses in general, small and large it staffs are turning over the gen Z and millennials are in the workforce. They were provisioning top of rack switches. Right. First of all. And so if you're a business, there's also the, I call the buildout, um, uh, return factor, ROI piece. At what point in time as an owner, SMB, do I get to ROI? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cyber security issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one in the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are >>Like critical issues. >>This is just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about this, >>That's, that's what, at least a million in loading, if not three or more Just to get that app going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side. No. And they remind AI and ML. >>That's right. That's right. So to try to go it alone, to me, it's hard. It it's incredibly difficult. And the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll do all that exactly. In the it department. >>Exactly. >>So like, can we just call up, uh, you know, our old vendor that's >>Right. <laugh> right. Our old vendor. I like it, >>But that's so true. I mean, when I think about how, if I was a business owner starting a business today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around that is, is very important. It's something that we talk about every, with every one of our small to mid-size >>Businesses. So just, I want get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative yeah. Award winning guys doing great. Uh, great bet on a good call. Yeah. Things are good. Tell your story. What's your journey? >>It's real simple. I was, uh, I was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportunity with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduced other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. Yeah. I came in, I did an internship for six months and I loved it. I learned more in those six months than I probably did in my first couple of years at, uh, at RT long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, sales process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2000 and I was like, Hey, I'm growing the value of this business. And who knows where you guys are gonna be another five years? What do you think about making me an owner? And they were like, listen, you got long ways before you're gonna be an owner. But if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that were gonna also buy the business with me. >>And they were the owners, no outside capital, >>None zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons. They all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like, if we're own, we're gonna have to like cover that stuff. <laugh> so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015 and, uh, we made the decision that I was gonna buy the three partners out, um, go through an earn out process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the BI cuz they cared very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be? We had built this company to this point. Yeah. And, uh, and by 2018 we knew that pivoting all going all in on the cloud was important for us. And we haven't looked back. >>And at that time, the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly the, uh, and those kinds of big enterprises. The GA I don't wanna say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to midsize business to migrate completely to the cloud is as infrastructure was considered, that just didn't happen as often. Um, what we were seeing where the, a lot of our small to midsize business customers, they wanted to leverage cloud based backup, or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration. The, the Microsoft suite to the cloud. And a lot of 'em dipped their toe in the water. But by 2017 we knew infrastructure was around the corner. Yeah. And so, uh, we only had two customers on AWS at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is the app modernization? Is it data? What's the hot product and then put a plugin for the company. Awesome. >>So, uh, there's no question. Every customer is looking migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. So any SMB that's thinking about migrating into the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customer is not to be cash strapped and gives them an opportunity to move forward in a controlled, contained way so they can modernize. So >>Like insurance, basically for them not insurance class in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers and being empathetic to where they are in their journey. >>And that's the cloud upside is all about doubling down on the variable win that's right. Seeing the value and ING down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate >>It. Thank you very much for having me. >>Okay. This is the cube coverage here live in San Francisco, California for AWS summit, 2022. I'm John for your host. Thanks for watching. We're back with more great coverage for two days after this short break >>Live on the floor in San Francisco for Aus summit. I'm John for host of the cube here for the next two days, getting all the actual back in person we're at AWS reinvent a few months ago. Now we're back events are coming back and we're happy to be here with the cube. Bring all the action. Also virtual. We have a hybrid cube, check out the cube.net, Silicon angle.com for all the coverage. After the event. We've got a great guest ticking off here. Matthew Park, director of solutions, architecture with innovation solutions. The booth is right here. Matthew, welcome to the cube. >>Thank you very much. I'm glad to be here. >>So we're back in person. You're from Tennessee. We were chatting before you came on camera. Um, it's great to be back through events. It's >>Amazing. This is the first, uh, summit I've been to, to in what two, three >>Years. That's awesome. We'll be at the, uh, a AWS summit in New York as well. A lot of developers and the big story this year is as developers look at cloud going distributed computing, you got on premises, you got public cloud, you got the edge. Essentially the cloud operations is running everything devs sec ops, everyone kind of sees that you got containers, you got Benet, he's got cloud native. So the, the game is pretty much laid out. Mm-hmm <affirmative> and the edge is with the actions you guys are number one, premier partner at SMB for edge. >>That's >>Right. Tell us about what you guys doing at innovative and, uh, what you do. >>That's right. Uh, so I'm the director of solutions architecture. Uh, me and my team are responsible for building out the solutions. The at our around, especially the edge public cloud for us edge is anything outside of an AWS availability zone. Uh, we are deploying that in countries that don't have AWS infrastructure in region. They don't have it. Uh, give >>An example, >>Uh, example would be Panama. We have a customer there that, uh, needs to deploy some financial tech data and compute is legally required to be in Panama, but they love AWS and they want to deploy AWS services in region. Uh, so they've taken E EKS anywhere. We've put storage gateway and, uh, snowball, uh, in region inside the country and they're running or FinTech on top of AWS services inside Panama. >>You know, what's interesting, Matthew is that we've been covering Aw since 2013 with the cube about their events. And we watched the progression and jazzy was, uh, was in charge and became the CEO. Now Adam slaps in charge, but the edge has always been that thing they've been trying to avoid. I don't wanna say trying to avoid, of course, Amazon would listens to the customer. They work backwards from the customer. We all know that. Uh, but the real issue was they were they're bread and butters EC two and S three. And then now they got tons of services and the cloud is obviously successful and seeing that, but the edge brings up a whole nother level. >>It does >>Computing. >>It >>Does. That's not centralized in the public cloud now they got regions. So what is the issue with the edge what's driving? The behavior. Outpost came out as a reaction to competitive threats and also customer momentum around OT, uh, operational technologies. And it merging. We see with the data at the edge, you got five GM having. So it's pretty obvious, but there was a slow transition. What was the driver for the edge? What's the driver now for edge action for AWS >>Data in is the driver for the edge. Data has gravity, right? And it's pulling compute back to where the customer's generating that data and that's happening over and over again. You said it best outpost was a reaction to a competitive situation. Whereas today we have over 15 AWS edge services and those are all reactions to things that customers need inside their data centers on location or in the field like with media companies. >>Outpost is interesting. We always use the riff on the cube, uh, cause it's basically Amazon in a box, pushed in the data center, running native, all this stuff, but now cloud native operations are kind of becoming standard. You're starting to see some standard. Deepak syncs group is doing some amazing work with opensource Raul's team on the AI side, obviously, uh, you got SW who's giving the keynote tomorrow. You got the big AI machine learning big part of that edge. Now you can say, okay, outpost, is it relevant today? In other words, did outpost do its job? Cause EKS anywhere seems to be getting a lot of momentum. You see local zones, the regions are kicking ass for Amazon. This edge piece is evolving. What's your take on EKS anywhere versus say outpost? >>Yeah, I think outpost did its job. It made customers that were looking at outpost really consider, do I wanna invest in this hardware? Do I, do I wanna have, um, this outpost in my datas center, do I want to manage this over the long term? A lot of those customers just transitioned to the public cloud. They went into AWS proper. Some of those customers stayed on prem because they did have use cases that were, uh, not a good fit for outpost. They weren't a good fit. Uh, in the customer's mind for the public AWS cloud inside an availability zone now happening is as AWS is pushing these services out and saying, we're gonna meet you where you are with 5g. We're gonna meet you where you are with wavelength. We're gonna meet you where you are with EKS anywhere. Uh, I think it has really reduced the amount of times that we have conversations about outposts and it's really increased. We can deploy fast. We don't have to spin up outpost hardware can go deploy EKS anywhere in your VMware environment. And it's increasing the speed of adoption >>For sure. Right? So you guys are making a lot of good business decisions around managed cloud service. That's right. Innovative. Does that get the cloud advisory, the classic professional services for the specific edge piece and, and doing that outside of the availability zones and regions for AWS, um, customers in these new areas that you're helping out are they want cloud, like they want to have modernization a modern applications. Obviously they got data machine learning and AI, all part of that. What's the main product or, or, or gap that you're filling for AWS, uh, outside of their availability zones or their regions that you guys are delivering. What's the key is that they don't have a footprint. Is it that it's not big enough for them? What's the real gap. What's why, why are you so successful? >>So what customers want when they look towards the cloud is they want to focus on what's making them money as a business. They wanna focus on their applications. They wanna focus on their customers. So they look towards AWS cloud and a AWS. You take the infrastructure, you take, uh, some of the higher layers and we'll focus on our revenue generating business, but there's a gap there between infrastructure and revenue generating business that innovative slides into, uh, we help manage the AWS environment. Uh, we help build out these things in local data centers for 32 plus year old company. We have traditional on-premises people that know about deploying hardware that know about deploying VMware to host EKS anywhere. But we also have most of our company totally focused on the AWS cloud. So we're that gap in helping deploy these AWS services, manage them over the long term. So our customers can go to just primarily and totally focusing on their revenue generating business. So >>Basically you guys are basically building AWS edges, >>Correct? >>For correct companies, correct? Mainly because the, the needs are there, you got data, you got certain products, whether it's, you know, low latency type requirements, right. And then they still work with the regions, right. It's all tied together, right. Is that how it >>Works? Right. And, and our customers, even the ones in the edge, they also want us to build out the AWS environment inside the availability zone, because we're always gonna have a failback scenario. If we're gonna deploy fin in the Caribbean, we're gonna talk about hurricanes. And we're gonna talk about failing back into the AWS availability zones. So innovative is filling that gap across the board, whether it be inside the AWS cloud or on the AWS edge. >>All right. So I gotta ask you on the, since you're at the edge in these areas, I won't say underserved, but developing areas where now have data and you have applications that are tapping into that, that requirement. It makes total sense. We're seeing that across the board. So it's not like it's a, it's an outlier it's actually growing. Yeah. There's also the crypto angle. You got the blockchain. Are you seeing any traction at the edge with blockchain? Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech. And in, in the islands there a lot of, lot of, lot of web three happening. What's your, what your view on the web three world right now, relative >>To we, we have some customers actually deploying crypto, especially, um, especially in the Caribbean. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers that are deploying crypto. A lot of, uh, countries are choosing crypto to underlie parts of their central banks. Yeah. Um, so it's, it's up and coming. Uh, I, I have some, you know, personal views that, that crypto is still searching for a use case. Yeah. And, uh, I think it's searching a lot and, and we're there to help customers search for that use case. Uh, but, but crypto, as a, as a, uh, technology, um, lives really well on the AWS edge. Yeah. Uh, and, and we're having more and more people talk to us about that. Yeah. And ask for assistance in the infrastructure, because they're developing new cryptocurrencies every day. Yeah. It's not like they're deploying Ethereum or anything specific. They're actually developing new currencies and, and putting them out there on >>It's interesting. I mean, first of all, we've been doing crypto for many, many years. We have our own little, um, you know, project going on. But if you look talk to all the crypto people that say, look, we do a smart contract, we use the blockchain. It's kind of over a lot of overhead and it's not really their technical already, but it's a cultural shift, but there's underserved use cases around use of money, but they're all using the blockchain just for like smart contracts, for instance, or certain transactions. And they go to Amazon for the database. Yeah. <laugh> they all don't tell anyone we're using a centralized service. Well, what happened to decentralized? >>Yeah. And that's, and that's the conversation performance issue. Yeah. And, and it's a cost issue. Yeah. And it's a development issue. Um, so I think more and more as, as some of these, uh, currencies maybe come up, some of the smart contracts get into, uh, they find their use cases. I think we'll start talking about how does that really live on, on AWS and, and what does it look like to build decentralized applications, but with AWS hardware and services. >>Right. So take me through, uh, a use case of a customer Matthew around the edge. Okay. So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. I want to modernize my business. And I got my developers that are totally peaked up on cloud, but we've identified that it's just a lot of overhead latency issues. I need to have a local edge and serve my a, I also want all the benefit of the cloud. So I want the modern, and I wanna migrate to the cloud for all those cloud benefits and the goodness of the cloud. What's the answer. >>Yeah. Uh, big thing is, uh, industrial manufacturing, right? That's, that's one of the best use cases, uh, inside industrial manufacturing, we can pull in many of the AWS edge services we can bring in, uh, private 5g, uh, so that all the, uh, equipment that, that manufacturing plant can be hooked up, they don't have to pay huge overheads to deploy 5g it's, uh, better than wifi for the industrial space. Um, when we take computing down to that industrial area, uh, because we wanna do pre-procesing on the data. Yeah. We want to gather some analytics. We deploy that with a regular commercially available hardware running VMware, and we deploy EKS anywhere on that. Inside of that manufacturing plant, we can do pre-procesing on things coming out of the robotics, depending on what we're manufacturing. Right. And then we can take those refined analytics and for very low cost with maybe a little bit longer latency transmit those back, um, to the AWS availability zone, the, the standard >>For data, data lake, or whatever, >>To the data lake. Yeah. Data lake house, whatever it might be. Um, and we can do additional data science on that once it gets to the AWS cloud. Uh, but a lot of that, uh, just in time business decisions, just time manufacturing decisions can all take place on an AWS service or services inside that manufacturing plant. And that's, that's one of the best use cases that we're >>Seeing. And I think, I mean, we've been seeing this on the queue for many, many years, moving data around is very expensive. Yeah. But also compute going to the data that saves that cost yeah. On the data transfer also on the benefits of the latency. So I have to ask you, by the way, that's standard best practice now for the folks watching don't move the data unless you have to. Um, but those new things are developing. So I wanna ask you what new patterns are you seeing emerging once this new architecture's in place? Love that idea, localize everything right at the edge, manufacturing, industrial, whatever, the use case, retail, whatever it is. Right. But now what does that change in the, in the core cloud? There's a, there's a system element here. Yeah. What's the new pattern. There's >>Actually an organizational element as well, because once you have to start making the decision, do I put this compute at the point of use or do I put this compute in the cloud? Uh, now you start thinking about where business decisions should be taking place. Uh, so not only are you changing your architecture, you're actually changing your organization because you're thinking, you're thinking about a dichotomy you didn't have before. Uh, so now you say, okay, this can take place here. Uh, and maybe, maybe this decision can wait. Right. And then how do I visualize that? By >>The way, it could be a bot tube doing the work for management. Yeah. <laugh> exactly. You got observability going, right. But you gotta change the database architecture on the back. So there's new things developing. You've got more benefit. There >>Are, there are, and we have more and more people that, that want to talk less about databases and want to talk about data lakes because of this. They want to talk more about customers are starting to talk about throwing away data. Uh, you know, for the past maybe decade. Yeah. It's been store everything. And one day we will have a data science team that we hire in our organization to do analytics on this decade of data. And well, >>I mean, that's, that's a great point. We don't have time to drill into, maybe we do another session this, but the one pattern we're seeing come of the past year is that throwing away data's bad. Even data lakes that so-called turn into data swamps, actually, it's not the case. You look at data, brick, snowflake, and other successes out there. And even time series data, which may seem irrelevant efforts over actually matters when people start retrain their machine learning algorithms. Yep. So as data becomes co as we call it in our last showcase, we did a whole whole an event on this. The data's good in real time and in the lake. Yeah. Because the iteration of the data feeds the machine learning training. Things are getting better with the old data. So it's not throw away. It's not just business benefits. Yeah. There's all kinds of new scale. There >>Are. And, and we have, uh, many customers that are running petabyte level. Um, they're, they're essentially data factories on, on, on premises, right? They're, they're creating so much data and they're starting to say, okay, we could analyze this, uh, in the cloud, we could transition it. We could move petabytes of data to AWS cloud, or we can run, uh, computational workloads on premises. We can really do some analytics on this data transition, uh, those high level and sort of raw analytics back to AWS run 'em through machine learning. Um, and we don't have to transition 10, 12 petabytes of data into AWS. >>So I gotta end the segment on a, on a, kind of a, um, fun, I was told to ask you about your personal background on premise architect, Aus cloud, and skydiving instructor. How does that all work together? What tell, what does this mean? >>Yeah. Uh, I, >>You jumped out a plane and got a job. You got a customer to jump >>Out kind of. So I was, you jumped out. I was teaching Scott eing, uh, before I, before I started in the cloud space, this was 13, 14 years ago. I was a, I still am a Scott I instructor. Uh, I was teaching Scott eing and I heard out of the corner of my ear, uh, a guy that owned an MSP that was lamenting about, um, you know, storing data and how his customers are working. And he can't find enough people to operate all these workloads. So I walked over and said, Hey, this is, this is what I went to school for. Like, I'd love to, you know, I was living in a tent in the woods, teaching skydiving. I was like, I'd love to not live in a tent in the woods. So, uh, I started in the first day there, we had a, and, uh, EC two had just come out <laugh> um, and, uh, like, >>This is amazing. >>Yeah. And so we had this discussion, we should start moving customers here. And, uh, and that totally revolutionized that business, um, that, that led to, uh, that that guy actually still owns a skydiving airport. But, um, but through all of that, and through being in on premises, migrated me and myself, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, now let's take what we learned in the cloud and, and apply those lessons and those services to premises. >>So it's such a great story. You know, I was gonna, you know, you know, the, the, the, the whole, you know, growth mindset pack your own parachute, you know, uh, exactly. You know, the cloud in the early days was pretty much will the shoot open. Yeah. It was pretty much, you had to roll your own cloud at that time. And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. >>And so was Kubernetes by the way, 2015 or so when, uh, when that was coming out, it was, I mean, it was, it was still, and I, maybe it does still feel like that to some people, right. Yeah. But, uh, it was, it was the same kind of feeling that we had in the early days of AWS, the same feeling we have when we >>It's much now with you guys, it's more like a tandem jump. Yeah. You know, but, but it's a lot of, lot of this cutting stuff like jumping out of an airplane. Yeah. You guys, the right equipment, you gotta do the right things. Exactly. >>Right. >>Matthew, thanks for coming on the cube. Really appreciate it. Absolutely great conversation. Thanks for having me. Okay. The cubes here, lot in San Francisco for AWS summit, I'm John for your host of the cube. Uh, we'll be at a summit in New York coming up in the summer as well. Look up for that. Look at this calendar for all the cube, actually@thecube.net. We'll right back with our next segment after this break. >>Okay. Welcome back everyone to San Francisco live coverage here, we're at the cube, a summit 2022. We're back in person. I'm John furry host of the cube. We'll be at the, a us summit in New York city this summer, check us out then. But right now, two days in San Francisco getting all coverage, what's going on in the cloud, we got a cube alumni and friend of the cube, my dos car CEO, investor, a Sierra, and also an investor and a bunch of startups, angel investor. Gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see you, Pam. Cool. How are you? Good. >>How are you? >>So congratulations on all your investments. Uh, you've made a lot of great successes, uh, over the past couple years, uh, and your company raising, uh, some good cash as Sarah so give us the update. How much cash have you guys raised? What's the status of the company product what's going on? First >>Of all, thank you for having me. We're back to be business with you never while after. Great to see you. Um, so is a company started around four years back. I invested with a few of the investors and now I'm the CEO there. Um, we have raised close to a hundred million there. Uh, the investors are people like nor west Menlo, true ventures, coast, lo ventures, Ram Shera, and all those people, all known guys that Antibe chime Paul Mayard web. So a whole bunch of operating people and, uh, Silicon valley vs are involved. >>And has it gone? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISR is going after is what I call the applying AI for customer service. It operations, it help desk the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and ServiceNow to take it to the next stage? Well, >>I love having you on the cube, Dave and I, and Dave Valenti as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a, you're like a guest analyst. <laugh>, >>You know, >>You >>Get, the comment is fun to talk to you though. >>You get the commentary, you, your, your finger on the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase it. Isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud out scale. You predicted that we talked about in the cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing Docker just raised a hundred million on our $2 billion valuation back from the dead after they pivoted from an enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control, plane emerging, AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded observability there's 10 million observability companies. Data is the key. This is what's your angle on this. What's your take. Yeah, >>No, look, I think I'll give you the view that I see, right? I, from my side, obviously data is very clear. So the things that room system of record that you and me talked about, the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud native, it'll be called AI. NA NA is a new buzzword and using the AI for customer service, it operations. You talk about observability. I call it AI ops, applying AOPs for good old it operation management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events insurance. So I see a lot of work clicking for AIOps and AI service desk. What needs to be helped desk with ServiceNow BMC <inaudible> you see a new ALA emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflows, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with AI workflows. So you'll see AI going >>Off is RPA a company is AI, is RPA a feature of something bigger? Or can someone have a company on RPA UI S one will be at their event this summer? Um, or is it a product company? I mean, I mean, RPA is almost, should be embedded in everything. >>It's a feature. It is very good point. Very, very good thinking. So one is, it's a category for sure. Like, as we thought, it's a category, it's an area where RPA may change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company also, but that automation should be a, in every area. Yeah. Like we call cloud NA and AI NATO it'll become automation. NA yeah. And that's your thinking. >>It's almost interesting me. I think about the, what you're talking about what's coming to mind is I'm kind having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it was middleware. It sat between two things and then the middle and it was software was action. Now you have all kinds of workflows abstractions everywhere. Right? So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed or they integrated. I mean, these are the challenges. This is crazy. What's the, >>So don't about the databases become all polyglot databases. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area, like, as you were talking about, it should be part of ServiceNow. It should be part of ISRA, like every company, every Salesforce. So that's why you see MuleSoft and Salesforce buying RPA companies. So you'll see all the SaaS companies could cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also will have an automation as a layer <inaudible> inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind us, you got the expo hall. You got, um, we're back to vents, but you got, you know, am Clume Ove, uh, Dynatrace data dog, innovative all the companies out here that we know, we interview them all. They're trying to be suppliers to this growing enterprise market. Right. Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Deibel later today. He's a former NEA guy and we always talk to Jerry, Jen, we know all the, the VCs. What does the startups look like? What does the state of the, in your mind, cause you, I know you invest the entrepreneurial founder situation. Cloud's bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's. Yes. Basically. Data's everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to, uh, two things that I'm seeing out there. Remember leaders, how Amazon created the startups 15 years back, everybody built on Amazon now, Azure and GCP. The next layer would be is people don't just build on Amazon. They're gonna build it on top of snowflake. Companies are snowflake becomes a data platform, right? People will build on snowflake. Right? So I see my old boss flagman try to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer. Right? So I think that's the next level of <inaudible> trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis of a couple months ago called castles in the cloud where your Mo is what you do in the cloud. Not necessarily in, in the, in the IP. Um, Dave LAN and I had last reinvent, coined the term super cloud, right? He's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldman S Sachs is doing. You starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage, and guys, Charles Fitzgerald out there who we like was kind of shitting on us saying, Hey, you guys terrible, they didn't get it. Like, yeah, I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. <laugh> cause he's cool. Um, but snowflake is on Amazon. Now. They say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist. And, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. It >>Is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to build everything on Amazon where possible whatever is, I cannot build. I'll make the pass layer. Remember the middle layer pass will be snowflake so I can build it on snowflake. I can use them for data layer if I really need to size build it on force.com Salesforce. Yeah. Right. So I think that's where you'll see. So >>Basically the, if you're an entrepreneur, the, the north star in terms of the, the outcome is be a super cloud. >>It is, >>That's the application on another big CapEx ride, the CapEx of AWS or cloud, >>And that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. Yeah. >>Yeah. How are, how is Amazon and the clouds dealing with these big whales, the snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think they had Redshift. Amazon has got Redshift. Um, but Snowflake's a big customer in the, they're probably paying AWS, I think big bills too. So >>Joe on very good. Cause it's like how Netflix is and Amazon prime, right. Netflix runs on Amazon, but Amazon has Amazon prime that co-optation will be there. So Amazon will have Redshift, but Amazon is also partnering with, uh, snowflake to have native snowflake data warehouses or data layer. So I think depending on the application use case, you have to use each of the above. I think snowflake is here for a long term. Yeah. Yeah. So if I'm building an application, I want to use snowflake then writing from stats. >>Well, I think that it comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, you know, foreclose, your, you that's right with some sort of internal hack. Uh, but I think, I think the general question that I have is that I, I think it's okay to have a super cloud like that because the rising tide is still happening at some point, when does the rising tide stop and do the people shopping up their knives, it gets more competitive or is it just an infinite growth? So >>I think it's growth. You call it cloud scale, you invented the word cloud scale. So I think look, cloud will continually agree, increase. I think there's as long as there more movement from on, uh, OnPrem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations. It helpless, even the customer service service now and, uh, ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So cloud ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go >>Made. I wanna get your thoughts for the folks watching that are, uh, enterprise buyers are practitioners, not suppliers to the more market, feel free to text me or DMing. The next question's really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products, cuz you know, the big enterprises now and you know, small, medium, large and large enterprise are all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between the startup selling to, or growing startup selling to an enterprise? Um, have you seen changes there? I mean I'm seeing some stuff, but why don't get your thoughts on that? What, >>No, it is. If I growing by or 2007 or eight, when I used to talk to you back then and Amazon started very small, right? We are an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or 1% today. Most companies are already spending 20, 30% with startups. Like if I look at a CIO or line of business, it's gone. Yeah. Can it go more? I think it can in the next four, five years. Yeah. Spending on the startups. >>Yeah. And check out, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want to get your reaction because I reference the URL cause it's like, there's like a bunch of companies we've been promoting because the solutions that startups have actually are new stuff. Yes. It's bending, it's shifting for security or using data differently or um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there. Um, and goes back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona, you mentioned AIOps, we've been seeing AIOps IOPS booming and that's creating a new developer paradigm that's right. Which we call coin data as code data as code is like infrastructure is code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this data engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same thing? Do you agree? Um, do you disagree or can you share >>Yourself a lot of first is I see the AIOP solutions in the future should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone there yet. Like I spend a lot of time with data dog, Cisco app Dyna, right? Dynatrace, all this solution. We will go future towards predict to proactive solution with AOPs. But what you bring up a very good point on the data side. I think like we have a Amazon marketplace and Amazon for startup, there should be data exchange where you want to create for AOPs and AI service desk. Customers are give the data, share the data because we thought the data algorithms are useless. I can them, but I gotta train them, modify them, tweak them, make them >>Better, >>Make them better. Yeah. And I think their whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that area is very important. >>You've always been on, um, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to big data days back in 2009, you know, >>Look at, look how much data Rick has grown. >>It is. They doubled the >>Key cloud air kinda went private. So good stuff, man. What are you working on right now? Give a, give a, um, plug for what you're working on. You'll still investing. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. So right. ISRA is my number one baby right now. So I'm looking at that growing customers and my customers are some of them, you like it's zoom auto desk McAfee, uh, grand to so all the top customers, um, mainly for it help desk customer service. AIOps those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What's what's their need? What category is it? >>I think they look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on predict is one area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value problem. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service. >>Great stuff, man. Great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the cube. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of Aish summit 2022. And we're gonna be at Aus summit in San, uh, in New York in the summer. So look for that on this calendar, of course go to eight of us, startups.com. I mentioned that it's decipher all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break. >>Okay. Welcome back everyone. This the cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back, little bit smaller footprint, a lot of hybrid events going on, but this is actually a physical event, a summit in new York's coming in the summer. We'll be there too with the cube on the set. We're getting back in the groove psych to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're can see a lot of virtual cube outta hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economists with bill group. He's the founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank >>You. Thanks. Coming on. Sure is a lot of words to describe is shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at mark, Andrew's been doing a lot of shit posting lately. All a billionaires are shit hosting, but they don't know how to do it. Like they're not >>Doing it right? So there's something opportunity there. It's like here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a midsize island, do begin doing this from, oh, then we're having fun. >>This shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on this side I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what is shit posting? >>It's more or less talking about the world of enter prize technology, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream. But it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a jackass or more prosaically are worried about getting fired for better or worse. I don't don't have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, coupons coming up in Spain, which they're having a physical event, you see the growth of cloud native Amazon's of all the Adams, especially new CEO. Andy's move on to be the chief of all Amazon. Just so I'm the cover of was it time met magazine? Um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything. These folks do. They're they're effectively in a fishbowl, but I have trouble imagining the logistics. It takes to wind up handling the catering for a relatively downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. And it's, it's sprawling immense that dominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. >>Well, there's a lot of force for good conversations. Seeing a lot of that going on, Amazon's trying to port eight of us is trying to portray themselves as you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that and I think that's a good angle as cloud goes mainstream. There's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now same kind of thing. As you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby races, a as a semi-pro race car driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. <laugh> either way, sounds like more exciting. Like I better >>Have a replacement ready <laugh> I, in case something goes wrong on the track, highly >>Available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula one is they have these new rigs out. Yeah. Where you can actually race in east sports with other people in pure simulation of the race car. You gotta get the latest and videographic card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. >>Oh, it's great too. And I can see the appeal of these tech companies getting into it because these things are basically rocket shifts. When those cars go, like they're sitting there, we can instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going on in your world. I know you have a lot of great success. We've been following you in the queue for many, many years. Got a great newsletter, check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's the blowback, any blowback late? Has there been uptick? What was, what are some of the things you're hearing from your audience, more Corey, more Corey. And then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's high. I'm emailing an awful lot of people at last week in AWS every week and okay. They must not have heard me it. That is not actually true. People just generally don't respond to email because who responds to email newsletters. That sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do >>That. We should do that. Actually. I think you're people would call in, oh, >>I, I think >>I guarantee we had that right now. People would call in and say, Corey, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised about anything by how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the >>Customer. You know, I always joke with Dave Alane about how John Fort's always at, uh, um, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of goof on that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0, 0 5, or we can't call, we >>Have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And then there you go. Yeah. >>It's and the old joke at HP was if they, if they invented SU sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish. That's what it is. And so the joke was cold. Dead fish is a better name than sushi. So you know is fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their >>Producting. So they're going in different directions. When they named Amazon Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonused on number of words, they can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, session manager is a great one. I love the service ridiculous name. They have a systems manager, parameter store, which is great. They have secrets manager, which does the same thing. It's two words less, but that one costs money in a way that systems manage your parameter store does not. It's fun. >>What's your, what's your favorite combination of acronyms >>Combination >>Of gots. You got EMR, you got EC two, you got S3 SQS. Well, RedShift's not an acronym you >>Gets is one of my personal favorites because it's either elastic block store or elastic bean stock, depending entirely on the context of the conversation, they >>Shook up bean stock or is that still around? Oh, >>They never turn anything off. They're like the anti Google, Google turns things off while they're still building it. Whereas Amazon is like, well, we built this thing in 2005 and everyone hates it, but while we certainly can't change it, now it has three customers on it. John three <laugh>. Okay. Simple BV still haunts our dreams. >>I, I actually got an email on, I saw one of my, uh, servers, all these C twos were being deprecated and I got an email I'm I couldn't figure out. Why can you just like roll it over? Why, why are you telling me? Just like, give me something else. All right. Okay. So let me talk about, uh, the other things I want to ask you, is that like, okay. So as Amazon better in some areas where do they need more work in your opinion? Because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database Snowflake's got out database service. So Redshift, snowflake data breach is out there. So you got this co-op petition. Yes. How's that going? And what do you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with, and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want. And they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multicloud. Cause obviously the other cloud shows are coming up. Amazon hated that word multicloud. Um, a lot of people though saying, you know, it's not a real good marketing word. Like multicloud sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multicloud? >>Multiple single >>Cloudant loves that term. Yeah. >>You know, you're building in multiple single points of failure, do it for the right reasons or don't do it as a default. I believe not doing it is probably the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about my multi-cloud either as the industry leader, let's talk about other clouds, bad direction to go in from a market cap perspective. It doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of forms. Some brilliant, some brain dead. It depends a lot on, but my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing because it solves problems. That's when I shut up and listen. >>Yeah, course. Awesome. Corey, I gotta ask you a question cause I know you we've been, you know, fellow journeyman and the, and the cloud journey going to all the events and then the pandemic hit. We now in the third year, who knows what it's gonna gonna end. Certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations. Community's gonna emerge. You've got a pretty big community growing and it's growing like crazy. What's the weirdest or coolest thing or just big changes you've seen with the pandemic, uh, from your perspective, cuz you've been in the you're in the middle of the whitewater rafting. You've seen the events you circle offline. You saw the online piece, come in, you're commentating, you're calling balls and strikes in the industry. You got a great team developing over there. Duck build group. What's the big aha moment that you saw with the pandemic. Weird, funny, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who can pony up two grand and a week in Las Vegas and get to Las Vegas from wherever they happen to be by moving virtually suddenly it, it embraces the reality that talent is evenly. Distributed. Opportunity is not. And that means that suddenly these things are accessible to a wide swath of audience and potential customer base and the rest that hadn't been invited to the table previously, it's imperative that we not lose that. It's nice to go out and talk to people and have people come up and try and smell my hair from time to time, I smelled delightful. Let me assure you. But it was, but it's also nice to be. >>I have a product for you if you want, you know? Oh, >>Oh excellent. I look forward to it. What is it? Pudding? Why not? <laugh> >>What else have you seen? So when accessibility for talent. Yes. Which by the way is totally home run. What weird things have happened that you've seen? Um, that's >>Uh, it's, it's weird, but it's good that an awful lot of people giving presentation have learned to tighten their message and get to the damn point because most people are not gonna get up from a front row seat in a conference hall, midway through your Aing talk and go somewhere else. But they will change a browser tab and you won't get them back. You've gotta be on point. You've gotta be compelling if it's going to be a virtual discussion. Yeah. >>And you turn off your iMessage too. >>Oh yes. It's always fun in the, in the meetings when you're ho to someone and their colleague is messaging them about, should we tell 'em about this? And I'm sitting there reading it and it's >>This guy is really weird. Like, >>Yes I am and I bring it into the conversation and then everyone's uncomfortable. It goes, wow. Why >>Not? I love when my wife yells at me over I message. When I'm on a business call, like, do you wanna take that about no, I'm good. >>No, no. It's better off. I don't the only entire sure. It's >>Fine. My kids text. Yeah, it's fine. Again, that's another weird thing. And, and then group behavior is weird. Now people are looking at, um, communities differently. Yes. Very much so, because if you're fatigued on content, people are looking for the personal aspect. You're starting to see much more of like yeah. Another virtual event. They gotta get better. One and two who's there. >>Yeah. >>The person >>That's a big part of it too is the human stories are what are being more and more interesting. Don't get up here and tell me about your product and how brilliant you are and how you built it. That's great. If I'm you, or if I wanna work with you or I want to compete with you or I want to put on my engineering hat and build it myself. Cause why would I buy anything? That's more than $8. But instead, tell me about the problem. Tell me about the painful spot that you specialize in. Yeah. Tell me a story there. >>I, I think >>That gets a glimpse in a hook and makes >>More, more, I think you nailed it. Scaling storytelling. Yes. And access to better people because they don't have to be there in person. I just did a thing. I never, we never would've done the queue. We did. Uh, Amazon stepped up in sponsors. Thank you, Amazon for sponsoring international women's day, we did 30 interviews, APAC. We did five regions and I interviewed this, these women in Asia, Pacific eight, PJ, they call for in this world. And they're amazing. I never would've done those interviews cuz I never, would've seen 'em at an event. I never would've been in pan or Singapore, uh, to access them. And now they're in the index, they're in the network. They're collaborating on LinkedIn. So a threads are developing around connections that I've never seen before. Yes. Around the content. >>Absolutely >>Content value plus and >>Effecting. And that is the next big revelation of this industry is going to realize you have different companies. And, and I Amazon's case different service teams all competing with each other, but you have the container group and you have the database group and you have the message cuing group. But customers don't really want to build things from spare parts. They want a solution to a problem. I want to build an app that does Twitter for pets or whatever it is I'm trying to do. I don't wanna basically have to pick and choose and fill my shopping cart with all these different things. I want something that's gonna basically give me what I'm trying to get as close to turnkey as possible. Moving up the stack. That is the future. And just how it gets here is gonna be >>Well we're here at Corey Quinn, the master of the master of content here in the a ecosystem. Of course we we've been following up from the beginning. His great guy, check out his blog, his site, his newsletter screaming podcast. Corey, final question for, uh, what are you here doing? What's on your agenda this week in San Francisco and give a plug for the duck build group. What are you guys doing? I know you're hiring some people what's on the table for the company. What's your focus this week and put a plug in for the group. >>I'm here as a customer and basically getting outta my cage cuz I do live here. It's nice to actually get out and talk to folks who are doing interesting things at the duck bill group. We solved one problem. We fixed the horrifying AWS bill, both from engineering and architecture, advising as well as negotiating AWS contracts because it turns out those things are big and complicated. And of course my side media projects last week in aws.com, we are, it it's more or less a content operation where I in my continual and ongoing love affair with the sound of my own voice. >><laugh> and you're good. It's good content it's on, on point fun, Starky and relevant. So thanks for coming to the cube and sharing with us. Appreciate it. No >>Thank you button. >>You. Okay. This the cube covers here in San Francisco, California, the cube is back going to events. These are the summits, Amazon web services summits. They happen all over the world. We'll be in New York and obviously we're here in San Francisco this week. I'm John fur. Keep, keep it right here. We'll be back with more coverage after this short break. Okay. Welcome back everyone. This's the cubes covers here in San Francisco, California, we're live on the show floor of AWS summit, 2022. I'm John for host of the cube and remember AWS summit in New York city coming up this summer, we'll be there as well. And of course reinvent the end of the year for all the cube coverage on cloud computing and AWS two great guests here from the APN global APN Sege chef Jenko and Jeff Grimes partner lead Jeff and Sege is doing partnerships global APN >>AWS global startup program. Yeah. >>Okay. Say that again. >>AWS. We'll start >>Program. That's the official name. >>I love >>It too long, too long for me. Thanks for coming on. Yeah, >>Of course. >>Appreciate it. Tell us about what's going on with you guys. What's the, how was you guys organized? You guys we're obviously we're in San Francisco bay area, Silicon valley, zillions of startups here, New York. It's got another one we're gonna be at tons of startups. A lot of 'em getting funded, big growth and cloud big growth and data secure hot in all sectors. >>Absolutely. >>So maybe, maybe we could just start with the global startup program. Um, it's essentially a white glove service that we provide to startups that are built on AWS. And the intention there is to help identify use cases that are being built on top of AWS. And for these startups, we want to pro vibe white glove support in co building products together. Right. Um, co-marketing and co-selling essentially, um, you know, the use cases that our customers need solved, um, that either they don't want to build themselves or are perhaps more innovative. Um, so the, a AWS global startup program provides white glove support. Dedicat at headcount for each one of those pillars. Um, and within our program, we've also provided incentives, programs go to market activities like the AWS startup showcase that we've built for these startups. >>Yeah. By the way, AWS startup, AWS startups.com is the URL, check it out. Okay. So partnerships are key. Jeff, what's your role? >>Yeah. So I'm responsible for leading the overall effort for the AWS global startup program. Um, so I've got a team of partner managers that are located throughout the us, uh, managing a few hundred startup ISVs right now. <laugh> >>Yeah, you got a >>Lot. We've got a lot. >>There's a lot. I gotta, I gotta ask a tough question. Okay. I'm I'm a startup founder. I got a team. I just got my series a we're grown. I'm trying to hire people. I'm super busy. What's in it for me. Yeah. What do you guys bring to the table? I love the white glove service, but translate that what's in it for what do I get out of it? What's >>A story. Good question. I focus, I think. Yeah, because we get, we get to see a lot of partners building their businesses on AWS. So, you know, from our perspective, helping these partners focus on what, what do we truly need to build by working backwards from customer feedback, right? How do we effectively go to market? Because we've seen startups do various things, um, through trial and error, um, and also just messaging, right? Because oftentimes partners or rather startups, um, try to boil the ocean with many different use cases. So we really help them, um, sort of laser focus on what are you really good at and how can we bring that to the customer as quickly as possible? >>Yeah. I mean, it's truly about helping that founder accelerate the growth of their company, right. And there's a lot that you can do with AWS, but focus is truly the key word there because they're gonna be able to find their little piece of real estate and absolutely deliver incredible outcomes for our customers. And then they can start their growth curve there. >>What are some of the coolest things you've seen with the APN that you can share publicly? I know you got a lot going on there, a lot of confidentiality. Um, but you know, we're here a lot of great partners on the floor here. I'm glad we're back at events. Uh, a lot of stuff going on digitally with virtual stuff and, and hybrid. What are some of the cool things you guys have seen in the APN that you can point to? >>Yeah, absolutely. I mean, I can point to few, you can take them. So, um, I think what's been fun over the years for me personally, I came from a startup brand sales at an early stage startup and, and I went through the whole thing. So I have a deep appreciation for what these guys are going through. And what's been interesting to see for me is taking some of these early stage guys, watching them progress, go public, get acquired and see that big day mm-hmm <affirmative>, uh, and being able to point to very specific items that we help them to get to that point. Uh, and it's just a really fun journey to watch. >>Yeah. I, and part of the reason why I really, um, love working at the AWS, uh, global startup program is working with passionate founders. Um, I just met with a founder today that it's gonna, he's gonna build a very big business one day, um, and watching them grow through these stages and supporting that growth. Um, I like to think of our program as a catalyst for enterprise is sort of scale. Yeah. Um, and through that we provide visibility, credibility and growth opportunities. >>Yeah. A lot, a lot of partners too. What I found talking to staff founders is when they have that milestone, they work so hard for it. Whether it's a B round C round Republic or get bought. Yeah. Um, then they take a deep breath and they look back at wow, what a journey it's been. So it's kind of emotional for sure. But still it's a grind. Right? You gotta, I mean, when you get funding, it's still day one. You don't stop. It's no celebrate, you got a big round or valuation. You still gotta execute >>And look it's hypercompetitive and it's brutally difficult. And our job is to try to make that a little less difficult and navigate those waters. Right. Where ever everyone's going after similar things. >>Yeah. And I think as a group element too, I observe that startups that I, I meet through the APN has been interesting because they feel part of AWS. Yeah, totally. As a group of community, as a vibe there. Um, I know they're hustling, they're trying to make things happen. But at the same time, Amazon throws a huge halo effect. I mean, that's a huge factor. I mean, you guys are the number one cloud in the business, the growth in every sector is booming. Yeah. And if you're a startup, you don't have that luxury yet. And look at companies like snowflake that built on top of AWS. I mean, people are winning by building on AWS. >>Yeah. And our, our, our program really validates their technology first. So we have, what's all the foundation's technical review that we put all of our startups through before we go to market. So that when enterprise customers are looking at startup technology, they know that it's already been vetted. And, um, to take that a step further and help these partners differentiate, we use programs like the competency programs, the DevOps competencies, the security competency, which continues to help, um, provide sort of a platform for these startups, help them differentiate. And also there's go to market benefits that are associated with that. >>Okay. So let me ask the, the question that's probably on everyone's mind, who's watching, certainly I asked this a lot. There's a lot of companies startups out there who makes the cut, is there a criteria cut? It's not like it's sports team or anything, but like sure. Like there's activate program, which is like, there's hundreds of thousands of startups out there. Not everyone is at the APN. Right? Correct. So ISVs again, that's a whole nother, that's a more mature partner that might have, you know, huge market cap or growth. How, how do you guys focus? How do you guys focus? I mean, you got a good question, you know, thousand flowers blooming all the time. Is there a new way you guys are looking at it? I know there's been some talk about restructure or, or new focus. What's the focus. >>Yeah. It's definitely not an easy task by any means. Um, but you know, I recently took over this role and we're really trying to establish focus areas, right. So obviously a lot of the ISVs that we look after are infrastructure ISVs. That's what we do. Uh, and so we have very specific pods that look after different type of partners. So we've got a security pod, we've got a DevOps pod, we've got core infrastructure, et cetera. And really, we're trying to find these ISVs that can solve, uh, really interesting AWS customer. >>You guys have a deliberate, uh, focus on these pillars. So what infrastructure, >>Security, DevOps, and data and analytics, and then line of business >>Line, business line business, like web >>Marketing, business apps, >>Owner type thing. Exactly. >>Yeah, exactly. >>So solutions there. Yeah. More solutions and the other ones are like hardcore. So infrastructure as well, like storage back up ransomware kind of stuff, or, >>Uh, storage, networking. >>Okay. Yeah. The classic >>Database, et cetera. Right. >>And so there's teams on each pillar. >>Yep. So I think what's, what's fascinating for the startups that we cover is that they've got, they truly have support from a build market sell perspective, right. So you've got someone who's technical to really help them get the technology, figured out someone to help them get the marketing message dialed and spread, and then someone to actually do the co-sell, uh, day to day activities to help them get in front of customers. >>Probably the number one request that we always ask for Amazon is can wish that sock report, oh, download it on the console, which we use all the time. <laugh> exactly. But security's a big deal. I mean, you know, ask the res are evolving, that role of DevOps is taking on dev SecOps. Um, I, I can see a lot of customers having that need for a relationship to move things faster. Do you guys provide like escalation or is that a part of a service or that not part of, uh, uh, >>Yeah, >>So the partner development manager can be an escalation for absolutely. Think of that. 'em as an extension of your business inside of AWS. >>Great. And you guys, how is that partner managers, uh, measure >>On those three pillars? Right. Got it. Are we billing, building valuable use cases? So product development go to market, so go to market activities, think blog, posts, webinars, case studies, so on and so forth. And then co-sell not only are we helping these partners win their current opportunities that they are sourcing, but can we also help them source net new deals? Yeah. Right. That's very, >>I mean, top asked from the partners is get me in front of customers. Right. Um, not an easy task, but that's a huge goal of ours to help them grow their top line. >>Right. Yeah. In fact, we had some interviews here on the cube earlier talking about that dynamic of how enterprise customers are buying. And it's interesting, a lot more POCs. I have one partner here that you guys work with, um, on observability, they got a huge POC with capital one mm-hmm <affirmative> and the enterprises are engaging the star ups and bringing them in. So the combination of open source software enterprises are leaning into that hard and bringing young growing startups in mm-hmm <affirmative>. Yep. So I could see that as a huge service that you guys can bring people in. >>Right. And they're bringing massively differentiated technology to the table. The challenge is they just might not have the brand recognition. The, at the big guys have mm-hmm <affirmative>. And so that's, our job is how do you get that great tech in front of the right situations? >>Okay. So my next question is about the show here, and then we'll talk globally. So here in San Francisco sure. You know, Silicon valley bay area, San Francisco bay area, a lot of startups, a lot of VCs, a lot of action. Mm-hmm <affirmative> so probably a big market for you guys. Yeah. So what's exciting here in SF. And then outside of SF, you guys have a global pro, have you see any trends that are geography based or is it sure areas more mature? There's certain regions that are better. I mean, I just interviewed a company here. That's doing, uh, a AWS edge really well in these cases. It's interesting that these, the partners are filling a lot of holes and gaps in the opportunities with a AWS. So what's exciting here. And then what's the global perspective. >>Yeah, totally. So obviously see a ton of partners from the bay area that we support. Um, but we're seeing a lot of really interesting technology come out of AMEA specifically. Yeah. Uh, and making a lot of noise here in the United States, which is great. Um, and so, you know, we definitely have that global presence and, and starting to see super differentiated technology come out of those regions. >>Yeah. Especially Tel Aviv. Yeah. >>Amy and real quick before you get into surge. It's interesting. The VC market in, in Europe is hot. They've got a lot of unicorns coming in. We've seen a lot of companies coming in. They're kind of rattling their own, you know, cage right now. Hey, look at us. Let's see if they crash, you know, but we don't see that happening. I mean, people have been predicting a crash now in, in the startup ecosystem for least a year. It's not crashing. In fact, funding's up. >>Yeah. The pandemic was hard on a lot of startups for sure. Yeah. Um, but what we've seen is many of these startups, they, as quickly as they can grow, they can also pivot as, as, as well. Um, and so I've actually seen many of our startups grow through the demo because their use cases are helping customers either save money, become more operationally efficient and provide value to leadership teams that need more visibility into their infrastructure during a pandemic. >>It's an interesting point. I talked to Andy jazzy and Adam Celski both say the same thing during the pandemic. Necessity's the mother of all invention. Yep. And startups can move fast. So with that, you guys are there to assist if I'm a startup and I gotta pivot cuz remember iterate and pivot, iterate and pivot. So you get your economics, that's the playbook of the ventures and the models. >>Exactly. How >>Do you guys help me do that? Give me an example of what me through. Pretend me, I'm a start up. Hey, I'm on the cloud. Oh my God. Pandemic. They need video conferencing. Hey cube. Yeah. What do I need? Search? What, what do >>I do? That's a good question. First thing is just listen. Yeah. I think what we have to do is a really good job of listening to the partner. Um, what are their needs? What is their problem statement? Where do they want to go at the end of the day? Um, and oftentimes because we've worked with, so how many successful startups that have come out of our program, we have, um, either through intuition or a playbook determined what is gonna be the best path forward and how do we get these partners to stop focusing on things that will eventually, um, just be a waste of time. Yeah. And, or not provide, or, you know, bring any fruit to the table, which, you know, essentially revenue. >>Well, we love startups here in the cube because one, um, they have good stories, they're oil and cutting edge, always pushing the envelope and they're kind of disrupting someone else. Yeah. And so they, they have an opinion. They don't mind sharing on camera. So love talking to startups. We love working with you guys on our startups. Showcases startups.com. Check out AWS startups.com and she got the showcase. So is, uh, final word. I'll give you guys the last word. What's the bottom line bumper sticker for AP globe. The global APN program summarize the opportunity for startups, what you guys bring to the table and we'll close it out. Totally. We'll start >>With you. Yeah. I think the AWS global startup programs here to help companies truly accelerate their business full stop. Right. And that's what we're here for. Love it. >>It's a good way to, it's a good way to put it. Dato yeah. >>All right. Thanks for coming out. Thanks John. Great to see you love working with you guys. Hey, startups need help. And the growing and huge market opportunities, the shift cloud scale data engineering, security infrastructure, all the markets are exploding in growth because of the digital transformation of realities here, open source and cloud. I'll making it happen here in the cube in San Francisco, California. I'm John furrier, your host. Thanks for >>Watching Cisco, John. >>Hello and welcome back to the Cube's live coverage here in San Francisco, California for AWS summit, 2022. I'm John for host of the cube. Uh, two days of coverage, AWS summit, 2022 in New York city coming up this summer will be there as well. Events are back. The cube is back of course, with the cube virtual cube hybrid, the cube.net. Check it out a lot of content this year more than ever a lot more cloud data cloud native, modern applic is all happening. Got a great guest here. Jeremy Burton, Cub alumni, uh, CEO of observe Inc in the middle of all the cloud scale, big data observability, Jeremy. Great to see you. Thanks. >>Coming on. Always great to come and talk to you on the queue, man. It's been been a few years, so, >>Um, well you, you got your hands. You're in the trenches with great startup, uh, good funding, great board, great people involved in the observability Smith hot area, but also you've been a senior executive president of Dell EMC. Um, 11 years ago you had a vision and you actually had an event called cloud meets big data. Um, yeah. And it's here, you predicted it 11 years ago. Um, look around it's cloud meets big data. >>Yeah. I mean the, the cloud thing I think, you know, was, was probably already a thing, but the big data thing I do claim credit for, for sort of catching that bus early, um, you know, we, we were on the, the, the bus early and, and I think it was only inevitable. Like, you know, if you could bring the economics and the compute of cloud to big data, you, you could find out things you could never possibly imagine. >>So you're close to a lot of companies that we've been covering deeply snowflake, obviously you involved, uh, at the board level, the other found, you know, the people there, uh, cloud, you know, Amazon, you know, what's going on here? Yeah. You're doing a startup as the CEO at the helm, uh, chief of observ, Inc, which is an observability, which is to me in the center of this confluence of data engineering, large scale integrations, um, data as code integrating into applications. I mean, it's a whole nother world developing, like you see with snowflake, it means snowflakes is super cloud as we call it. So a whole nother wave is here. What's your, what's this wave we're on what's how would you describe the wave? >>Well, a couple of things, I mean, people are, I think right in more software than, than ever before are why? Because they've realized that if, if you don't take your business online and offer a service, then you become largely irrelevant. And so you you've got a whole set of new applications. I think, I think more applications now than any point. Um, not, not just ever, but the mid nineties, I always looked at as the golden age of application development. Now, back then people were building for windows. Well, well now they're building for things like AWS is now the platform. Um, so you've got all of that going on. And then at the same time, the, the side effect of these applications is they generate data and lots of data. And the, you know, there's sort of the transactions, you know, what you bought today are something like that. But then there's what we do, which is all the telemetry, all the exhaust fumes. And I think people really are realizing that their differentiation is not so much their application. It's their understanding of the data. Can, can I understand who my best customers are, what I sell today. If people came to my website and didn't buy, then why not? Where did they drop off all of that? They wanna analyze. And, and the answers are all in the data. The question is, can you understand it >>In our last startup showcase, we featured data as code one of the insights that we got out of that, and I wanna get your opinion on our reaction to is, is that data used to be put into a data lake and turns into a data swamp or throw into the data warehouse. And then we'll do some queries, maybe a report once in a while. And so data, once it was done, unless it was real time, even real time was not good anymore after real time. That was the old way. Now you're seeing more and more, uh, effort to say, let's go look at the data, cuz now machine learning is getting better. Not just train once mm-hmm <affirmative> they're iterating. Yeah. This notion of iterating and then pivoting, iterating and pivoting. Yeah, that's a Silicon valley story. That's like how startups work, but now you're seeing data being treated the same way. So now you have another, this data concept that's now yeah. Part of a new way to create more value for the apps. So this whole, this whole new cycle of >>Yeah. >>Data being reused and repurposed and figured out and yeah, >>Yeah. I'm a big fan of, um, years ago. Uh, uh, just an amazing guy, Andy McAfee at the MIT C cell labs I spent time with and he, he had this line, which still sticks to me this day, which is look I'm I'm. He said I'm part of a body, which believes that everything is a matter of data. Like if you have enough data, you can answer any question. And, and this is going back 10 years when he was saying these kind of things and, and certainly, you know, research is on the forefront. But I think, you know, starting to see that mindset of the, the sort of MIT research be mainstream, you know, in enterprises, they they're realizing that. Yeah, it is about the data. You know, if I can better understand my data better than my competitor, then I've got an advantage. And so the question is is, is how, what, what technologies and what skills do I need in my organization to, to allow me to do that. >>So let's talk about observing you the CEO of, okay. Given you've seen the ways before you're in the front lines of observability, which again is in the center of all this action what's going on with the company. Give a quick minute to explain, observe for the folks who don't know what you guys do. What's the company doing? What's the funding status, what's the product status and what's the customer status. Yeah. >>So, um, we realized, you know, a handful of years ago, let's say five years ago that, um, look, the way people are building applications is different. They they're way more functional. They change every day. Uh, but in some respects they're a lot more complicated. They're distributed. They, you know, microservices architectures and when something goes wrong, um, the old way of troubleshooting and solving problems was not gonna fly because you had SA so much change going into production on a daily basis. It was hard to tell like where the problem was. And so we thought, okay, it's about time. Somebody looks at the exhaust fumes from this application and all the telemetry data and helps people troubleshoot and make sense of the problems that they're seeing. So, I mean, that's observability, it's actually a term that goes back to the 1960s. It was a guy called, uh, Rudolph like, like everything in tech, you know, it's, it's a reinvention of something from years gone by. >>Um, there's a guy called, um, Rudy Coleman in 1960s coiner term and, and, and the term was being able to determine the state of a system by looking at its external outputs. And so we've been going on this for, uh, the best part of four years now. Um, it took us three years just to build the product. I think, I think what people don't appreciate these days often is the barrier to entry in a lot of these markets is quite high. You, you need a lot of functionality to have something that's credible with a customer. Um, so yeah, this last year we, we, we did our first year selling, uh, we've got about 40 customers now. Um, we just we've got great investors for the hill ventures. Uh, I mean, Mike SP who was, you know, the, the guy who was the, really, the first guy in it snowflake and the, the initial investor were fortunate enough to, to have Mike and our board. And, um, you know, part of the observed story is closely knit with snowflake all of that time with your data, you know, we, we store in there. >>So I want to get, uh, yeah. Pivot to that. Mike SP snowflake, Jeremy Burton, the cube kind of, kind of same thinking this idea of a super cloud or what snowflake became. Yeah. Snowflake is massively successful on top of AWS. Mm-hmm <affirmative> and now you're seeing startups and companies build on top of snowflake. Yeah. So that's become an entrepreneurial story that we think that to go big in the cloud, you can have a cloud on a cloud, uh, like as Jerry, Jerry Chan and Greylock calls it, castles in the cloud where there are moats in the cloud. So you're close to it. I know you, you're doing some stuff with snowflake. So as a startup, what's your view on building on top of say a snowflake or an AWS, because again, you gotta go where the data is. You need all the data. >>Yeah. So >>What's your take on that? I mean, >>Having enough gray hair now, um, you know, again, in tech, I think if you wanna predict the future, look at the past. And, uh, you know, 20 years ago, 25 years ago, I was at a, a smaller company called Oracle and an Oracle was the database company. And, uh, their, their ambition was to manage all of the world's transactional data. And they built on a platform or a couple of platforms, one, one windows, and the other main one was Solaris. And so at that time, the operating system was the platform. And, and then that was the, you know, ecosystem that you would compete on top of. And then there were companies like SAP that built applications on top of Oracle. So then wind the clock forward 25 years gray hairs. <laugh> the platform, isn't the operating system anymore. The platform is AWS, you know, Google cloud. I gotta probably look around if I say that in. Yeah, >>It's okay. Columbia, but hyperscale. Yeah. CapX built out >>That is the new platform. And then snowflake comes along. Well, their aspiration is to manage all of the, not just human generated data, but machine generated data in the world of cloud. And I think they they've done an amazing job are doing for the, I'd say, say the, the big data world, what Oracle did for the relational data world, you know, way back 25 years ago. And then there are folks like us come along and, and of course my ambition would be, look, if, if we can be as successful as an SAP building on top of snowflake, uh, as, as they were on top of Oracle, then, then we'd probably be quite happy, >>Happy. So you're building on top of snowflake, >>We're building on top of snowflake a hundred percent. And, um, you know, I've had folks say to me, well, aren't you worried about that? Isn't that a risk? It's like, well, that that's a risk. You're >>Still on the board. >>Yeah. I'm still on the board. Yeah. That's a risk I'm prepared to take. I am more on snowing. >>It sounds well, you're in a good spot. Stay on the board, then you'll know what's going on. Okay. No, yeah. Serious one. But the, this is a real dynamic. It is. It's not a one off its >>Well, and I do believe as well that the platform that you see now with AWS, if you look at the revenues of AWS is in order of magnitude, more than Microsoft was 25 years ago with windows mm-hmm <affirmative>. And so I've believe the opportunity for folks like snowflake and, and folks like observe it. It's an order of magnitude more than it was for the Oracle and the SAPs of the old world. >>Yeah. And I think this is really, I think this is something that this next generation of entrepreneurship is the go big scenario is you gotta be on a platform. Yeah. >>It's quite easy >>Or be the platform, but it's hard. There's only like how seats were at that table left >>Well value migrates up over time. So, you know, when the cloud thing got going, there were probably 10, 20, 30, you know, rack space and there's 1,000,001 infrastructure, a service platform as a service. My, my old, uh, um, employee EMC, we had pivotal, you know, pivotal was a platform as a service. Don't hear so much about it these days, but initially there's a lot of players and then it consolidates. And then to, to like extract, uh, a real business, you gotta move up, you gotta add value, you gotta build databases, then you gotta build applications. So >>It's interesting. Moving from the data center of the cloud was a dream for starters within if the provision, the CapEx. Yeah. Now the CapEx is in the cloud. Then you build on, on top of that, you got snowflake. Now you got on top of that. >>The assumption is almost that compute and storage is free. I know it's not quite free. Yeah. It's almost free, but you can, you know, as an application vendor, you think, well, what can I do if I assume compute and storage is free, that's the mindset you've gotta get >>Into. And I think the platform enablement to value. So if I'm an entrepreneur, I'm gonna get a series us multiple of value in what I'm paying. Yeah. Most people don't even blanket their Avis pills unless they're like massively huge. Yeah. Then it's a repatriation question or whatever discount question, but for most startups or any growing company, the Amazon bill should be a small factor. >>Yeah. I mean, a lot of people, um, ask me, uh, like, look you build in on snowflake. Um, you, you know, you, you, you're gonna be, you're gonna be paying their money. How, how, how, how does that work with your business model? If you're paying their money, you know, do, do you have a viable business? And it's like, well, okay. I, we could build a database as well and observe, but then I've got half the development team working on something that will never be as good as snowflake. And so we made the call early on that. No, no, we, we want a eight above the database. Yeah. Right. Snowflake are doing a great job of innovating on the database and, and the same is true of something like Amazon, like, like snowflake could have built their own cloud and their own platform, but they didn't. >>Yeah. And what's interesting is that Dave <inaudible> and I have been pointing this out and he's obviously a more on snowflake. I've been looking at data bricks, um, and the same dynamics happening, the proof is the ecosystem. Yeah. I mean, if you look at Snowflake's ecosystem right now and data bricks it's exploding. Right. I mean, the shows are selling out the floor. Space's book. That's the old days at VMware. Yeah. The old days at AWS. >>Well, and for snowflake and, and any platform from VI, it's a beautiful thing because, you know, we build on snowflake and we pay them money. They don't have to sell to us. Right. And we do a lot of the support. And so the, the economics work out really, really well. If you're a platform provider and you've got a lot of >>Ecosystems. Yeah. And then also you get, you get a, um, a trajectory of, uh, economies of scale with the institutional knowledge of snowflake integrations, right. New product, you're scaling a step function with them. >>Yeah. I mean, we manage 10 petabytes of data right now. Right. When I, when I, when I arrived at EMC in 2010, we had, we had one petabyte customer. And, and so at observe, we've been only selling the product for a year. We have 10 petabytes of data under management. And so been able to rely on a platform that can manage that is inve >>You know, well, Jeremy great conversation. Thanks for sharing your insights on the industry. Uh, we got a couple minutes left, um, put a plug in for observe. What do you guys know? You got some good funding, great partners. I don't know if you can talk about your, your, your POC customers, but you got a lot of high ends folks that are working with you. You getting in traction. >>Yeah. Yeah. Scales >>Around the corner. Sounds like, are you, is that where you are scale? >>We've got a big that that's when coming up in two or three weeks, we've got, we've got new funding, um, which is always great. Um, the product is, uh, really, really close. I think, as a startup, you always strive for market fit, you know, which is at which point can you just start hiring salespeople? And the revenue keeps going. We're getting pretty close to that right now. Um, we've got about 40 SaaS companies that run on the platform. They're almost all AWS Kubernetes, uh, which is our sweet spot to begin with, but we're starting to get some really interesting, um, enterprise type customers. We're, we're, you know, F five networks we're POC in right now with capital one, we got some interest in news around capital one coming up. I, I can't share too much, but it's gonna be exciting. And, and like I said, so hill continue to, to, >>I think capital one's a big snowflake customer as well. Right. >>They were early in one of the things that attracted me to capital one was they were very, very good with snowflake early on. And, and they put snowflake in a position in the bank where they thought that snowflake could be successful. And, and today that, that is one of Snowflake's biggest accounts, >>Capital, one, very innovative cloud, obviously Atos customer, and very innovative, certainly in the CISO and CIO, um, on another point on where you're at. So you're, Prescale meaning you're about to scale, >>Right? >>So you got POCs, what's that trajectory look like? Can you see around the corner? What's, what's going on? What's on, around the corner. That you're, that you're gonna hit this straight and narrow and, and gas it fast. >>Yeah. I mean, the, the, the, the key thing for us is we gotta get the product. Right. Um, the nice thing about having a guy like Mike Pfizer on the board is he doesn't obsess about revenue at this stage. His questions that the board are always about, like is the product, right? Is the product right? Is the product right? Have you got the product right? And cuz we know when the product's right, we can then scale the sales team and, and the revenue will take care of itself. Yeah. So right now all the attention is on the product. Um, the, this year, the exciting thing is we we're, we're adding all the tracing visualizations. So people will be able to the kind of things that by in the day you could do with the new relics and AppDynamics, the last generation of, of APM tools, you're gonna be able to do that within observe. And we've already got the logs and the metrics capability in there. So for us this year is a big one, cuz we sort of complete the trifecta, you know, the, the >>Logs, what's the secret sauce observe. What if you had the, put it into a, a, a sentence what's the secret sauce? >>I, I, I think, you know, an amazing founding engineering team, uh, number one, I mean, at the end of the day, you have to build an amazing product and you have to solve a problem in a different way. And we've got great long term investors and, and the biggest thing our investors give is it actually, it's not just money. It gives us time to get the product, right. Because if we get the product right, then we can get the growth. >>Got it. Final question. While I got you here, you've been on the enterprise business for a long time. What's the buyer landscape out there. You got people doing POCs on capital one scale. So we know that goes on. What's the appetite at the buyer side for startups and what are their requirements that you're seeing? Uh, obviously we're seeing people go in and dip into the startup pool because new ways to refactor their, this restructure. So, so a lot of happening in cloud, what's the criteria. How are enterprises engaging in with startups? >>Yeah. I mean, enterprises, they know they've gotta spend money transforming the business. I mean, this was, I almost feel like my old Dell or EMC self there, but, um, what, what we were saying five years ago is happening. Um, everybody needs to figure out a way to take their business to this digital world. Everybody has to do it. So the nice thing from a startup standpoint is they know at times they need to risk or, or take a bet on new technology in order to, to help them do that. So I think you've got buyers that a have money, uh, B it prepared to take risks and it's, it's a race against time to you'll get their, their offerings in this, a new digital footprint. >>Final, final question. What's the state of AWS. Where do you see them going next? Obviously they're continuing to be successful. How does cloud 3.0, or they always say it's day one, but it's more like day 10, but what's next for Aw. Where do they go from here? Obviously they're doing well. They're getting bigger and bigger. Yeah, >>Better. It's an amazing story. I mean, you know, we're, we're on AWS as well. And so I, I think if they keep nurturing the builders and the ecosystem, then that is their superpower. They, they have an early leads. And if you look at where, you know, maybe the likes of Microsoft lost the plot in the, in the late nineties, it was, they stopped, uh, really caring about developers in the folks who were building on top of their ecosystem. In fact, they started buying up their ecosystem and competing with people in their ecosystem. And I see with AWS, they, they have an amazing headstart and if they did more, you know, if they do more than that, that's, what's gonna keep this juggernaut rolling for many years to come. >>Yeah. They got the Silicon and got the stack. They're developing Jeremy Burton inside the cube, great resource for commentary, but also founding with the CEO of a company called observing in the middle of all the action on the board of snowflake as well. Um, great startup. Thanks for coming on the cube. Always a pleasure. Okay. Live from San Francisco. It's to cube. I'm John for your host. Stay with us more coverage from San Francisco, California after the short break. >>Hello. Welcome back to the cubes coverage here live in San Francisco, California. I'm John furrier, host of the cubes cube coverage of AWS summit 2022 here in San Francisco. We're all the developers are the bay air at Silicon valley. And of course, AWS summit in New York city is coming up in the summer. We'll be there as well. SF and NYC cube coverage. Look for us. Of course, reinforcing Boston and re Mars with the whole robotics, AI. They all coming together. Lots of coverage stay with us today. We've got a great guest from Bel VC. John founding partner, entrepreneurial venture is a venture firm. Your next act, welcome to the cube. Good to see you. >>Good to see you, man. I feel like it's been forever since we've been able to do something in person. Well, >>I'm glad you're here because we run into each other all the time. We've known each other for over decade. Um, >>It's been at least 10 years, >>At least 10 years more. And we don't wanna actually go back as bring back the old school web 1.0 days. But anyway, we're in web three now. So we'll get to that in a second. We, >>We are, it's a little bit of a throwback to the path though, in my opinion, >>It's all the same. It's all distributed computing and software. We ran each other in cube con. You're investing in a lot of tech startup founders. Okay. This next level, next gen entrepreneurs have a new makeup and it's software. It's hardcore tech in some cases, not hardcore tech, but using software to take an old something old and make it better new, faster. So tell us about Bel what's the firm. I know you're the founder, uh, which is cool. What's going on. Explain >>What you, I mean, you remember I'm a recovering entrepreneur, right? So of course I, I, >>No, you're never recovering. You're always entrepreneur >>Always, but we are also always recovering. So I, um, started my first company when I was 24. If you remember, before there was Facebook and friends, there was instant messaging. People were using that product at work every day, they were creating a security vulnerability between their network and the outside world. So I plugged that hole and built an instant messaging firewall. It was my first company. The company was called IM logic and we were required by Symantec. Uh, then spent 12 years investing in the next generation of software companies, uh, early investor in open source companies and cloud companies and spent a really wonderful years, uh, at a firm called NEA. So I, I feel like my whole life I've been either starting enterprise software companies or helping founders start enterprise software companies. And I'll tell you, there's never been a better time than right now to start an enterprise software company. >>So, uh, the passion for starting a new firm was really a recognition that founders today that are starting an enterprise software company, they, they tend to be, as you said, a more technical founder, right? Usually it's a software engineer or a builder mm-hmm <affirmative>, uh, they are building that are serving a slightly different market than what we've traditionally seen in enterprise software. Right? I think traditionally we've seen it buyers or CIOs that have agendas and strategies, which, you know, purchase software that is traditionally bought and sold tops down. But you know, today I think the most successful enterprise software companies are the ones that are built more bottoms up and have more technical early adopters. And generally speaking, they're free to use. They're free to try. They're very commonly community source or open source companies where you have a large technical community that's supporting them. So there's a, there's kind of a new normal now I think in great enterprise software. And it starts with great technical founders with great products and great bottoms of motions. And I think there's no better place to, uh, service those people than in the cloud and uh, in, in your community. >>Well, first of all, congratulations, and by the way, you got a great pedigree and great background. You're super smart admire of your work and your, and, and your founding, but let's face it. Enterprise is hot because digital transformation is, is all companies there's no, I mean, consumer is enterprise now. Everything is what was once a niche, not, I won't say niche category, but you know, not for the faint of heart, you know, investors, >>You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. But remember, like right now, there's also a giant tech in VC conference in Miami <laugh> and it's covering cryptocurrencies and FCS and web three. So I think beauty is definitely in the eye of the beholder <laugh> but no, I, I will tell you, well, >>MFTs is one big enterprise, cuz you gotta have imutability you got performance issues. You have, I IOPS issues. >>Well, and, and I think all of us here that are of may, maybe students of his stream have been involved in open source in the cloud would say that we're, you know, much of what we're doing is, uh, the predecessors of the web web three movement. And many of us I think are contributors to the web three >>Movement. The hype is definitely web >>Three. Yeah. But, >>But you know, >>For sure. Yeah, no, but now you're taking us further east to Miami. So, uh, you know, look, I think, I, I think, um, what is unquestioned with the case and maybe it's, it's more obvious the more time you spend in this world is this is the fastest growing part of enterprise software. And if you include cloud infrastructure and cloud infrastructure spend, you know, it is by many measures over, uh, $500 billion in growing, you know, 20 to 30 a year. So it it's a, it's a just incredibly fast >>Let's getting, let's get into some of the cultural and the, the shifts that are happening, cuz again, you, you have the luxury of being in enterprise when it was hard, it's getting easier and more cooler. I get it and more relevant <laugh> but there's also the hype of like the web three, for instance, but you know, for, uh, um, um, the CEO snowflake, okay. Has wrote a book and Dave Valenti and I were talking about it and uh, Frank Lutman has says, there's no playbooks. We always ask the CEOs, what's your playbook. And he's like, there's no playbook, situational awareness, always Trump's playbooks. So in the enterprise playbook, oh, hire a direct sales force and sass kind of crushed that now SAS is being redefined, right. So what is SAS? Is snowflake a SAS or is that a platform? So again, new unit economics are emerging, whole new situation, you got web three. So to me there's a cultural shift, the young entrepreneurs, the, uh, user experience, they look at Facebook and say, ah, you know, and they own all my data. And you know, we know that that cliche, um, they, you know, the product. So as this next gen, the gen Z and the millennials come in and our customers and the founders, they're looking at things a little bit differently and the tech better. >>Yeah. I mean, I mean, I think we can, we can see a lot of commonalities across all six of startups and the overall adoption of technology. Uh, and, and I would tell you, this is all one big giant revolution. I call it the user driven revolution. Right. It's the rise of the user. Yeah. And you might say product like growth is currently the hottest trend in enterprise software. It's actually user like growth, right. They're one in the same. So sometimes people think the product, uh, is what is driving. >>You just pull the product >>Through. Exactly, exactly. And so that's that I, that I think is really this revolution that you see, and, and it does extend into things like cryptocurrencies and web three and, you know, sort of like the control that is taken back by the user. Um, but you know, many would say that, that the origins of this movement may be started with open source where users were contributors, you know, contributors were users and looking back decades and seeing how it, how it fast forward to today. I think that's really the trend that we're all writing and it's enabling these end users. And these end users in our world are developers, data engineers, cybersecurity practitioners, right. They're really the users. And they're really the, the offic and the most, you know, kind of valued people in >>This. I wanna come back to the data engineers in a second, but I wanna make a comment and get your reaction to, I have a, I'm a gen Xer technically. So for not a boomer, but I have some boomer friends who are a little bit older than me who have, you know, experienced the sixties. And I've, I've been saying on the cube for probably about eight years now that we are gonna hit a digital hippie Revolut, meaning a rebellion against in the sixties was rebellion against the fifties and the man and, you know, summer of love. That was a cultural differentiation from the other one of group, the predecessors. So we're kind of having that digital moment now where it's like, Hey boomers, Hey people, we're not gonna do that anymore. We hate how you organize shit. >>Right. But isn't this just technology. I mean, isn't it, isn't it like there used to be the old adage, like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would get fired if you bought IBM. And I mean, it's just like the, the, I think, I think >>During the mainframe days, those renegades were breaking into Stanford, starting the home brew club. So what I'm trying to get at is that, do you see the young cultural revolution also, culturally, just, this is my identity NFTs to me speak volumes about my, I wanna associate with NFTs, not single sign on like, well, >>Absolutely. And, and I think like, I think you're hitting on something, which is like this convergence of, of, you know, societal trends with technology trends and how that manifests in our world is yes. I think like there is unquestionably almost a religion around the way in which a product is built. Right. And we can use open source. One example of that religion. Some people say, look, I'll just never try a product in the cloud if it's not open source. Yeah. I think cloud, native's another example of that, right? It's either it's, you know, it either is cloud native or it's not. And I think a lot of people will look at a product and say, look, you know, you were not designed in the cloud era. Therefore I just won't try you. And sometimes, um, like it or not, it's a religious decision, right? It's, it's something that people just believe to be true almost without, uh, necessarily. I mean, >>The data drives all decision making. Let me ask you this next question. As a VC. Now you look at pitch, well, you've been a VC for many years, but you also have the founder entrepreneurial mindset, but you can empathize with the founders. You know, hustle is a big part of the, that first founder check, right? You gotta convince someone to part with their ch their money and the first money in which you do a lot of is about believing in the first. So faking it till you make it is hard. Now you, the data's there, you either have it cloud native, you either have the adaption or traction. So honesty is a big part of that pitch. You can't fake it. Oh, >>AB absolutely. You know, there used to be this concept of like the persona of an entrepreneur, right. And the persona of the entrepreneur would be, you know, somebody who was a great salesperson or somebody who tell a great story. And I still think that that's important, right. It still is a human need for people to believe in narratives and stories. Yeah. But having said that you're right. The proof is in the pudding, right. At some point you click download and you try the product and it does what it says it's gonna, it's gonna do, or it doesn't, or it either stands up to the load test or it doesn't. And so I, I feel like in this new economy, that're, we live in really, it's a shift from maybe the storytellers and the creators to, to the builders, right. The people that know how to build great product. And in some ways the people that can build great product yeah. Stand out from the crowd. And they're the ones that can build communities around their products. And, you know, in some ways can, um, you know, kind of own more of the narrative because their product begin for exactly >>The volume you back to the user led growth. >>Exactly. And it's the religion of, I just love your product. Right. And I, I, I, um, Doug song is the founder of du security used to say, Hey, like, you know, the, the really like in today's world of like consumption based software, like the user is only gonna give you 90 seconds to figure out whether or not you're a company that's easy to do business with for right. And so you can say, and do all the things that you want about how easy you are to work with. But if the product isn't easy to install, if it's not easy to try, if it's not, if, if the it's gotta speak to the, >>Exactly. Speak to the user. But let me ask a question now that for the people watching, who are maybe entrepreneurial entre entrepreneurs, um, masterclass here is in session. So I have to ask you, do you prefer, um, an entrepreneur to come in and say, look at John. Here's where I'm at. Okay. First of all, storytelling's fine. Whether you're an extrovert or introvert, have your style, sell the story in a way that's authentic, but do you, what do you prefer to say? Here's where I'm at? Look, I have an idea. Here's my traction. I think here's my MVP prototype. I need help. Or do you wanna just see more stats? What's the, what's the preferred way that you like to see entrepreneurs come in and engage? >>There's tons of different styles, man. I think the single most important thing that every founder should know is that we, we don't invest in what things are today. We invest in what we think will become, right. And I think that's why we all get up in the morning and try to build something different, right? It's that we see the world a different way. We want it to be a different way, and we wanna work every single moment of the day to try to make that vision a reality. So I think the more that you can show people where you want to be, the more likely somebody is gonna to align with your vision and, and want to invest in you and wanna be along for the ride. So I, I wholeheartedly believe in showing off what you got today, because eventually we all get down to like, where are we and what are we gonna do together? But, um, no, I, you gotta show the path. I think the single most important thing for any founder and VC relationship is that they have the same vision. Uh, if you have the same vision, you can, you can get through bumps in the road, you can get through short term spills. You can all sorts of things in the middle of the journey can happen. Yeah. But it doesn't matter as much if you share the same long term vision, >>Don't flake out and, and be fashionable with the, the latest trends because it's over before you even get there. >>Exactly. I think many people that, that do what we do for a living will say, you know, ultimately the future is relatively easy to predict, but it's the timing that's impossible to predict. So you, you know, you sort of have to balance the, you know, we, we know that the world is going this way and therefore we're gonna invest a lot of money to try to make this a reality. Uh, but sometimes it happens ins six months. Sometimes it takes six years. Sometimes it takes 16 years. Uh, >>What's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at right now with Tebel partners, Tebel dot your site. What's the big wave. What's your big >>Wave. There there's three big trends that we invest in. And then the, the only things we do day in day out one is the explosion at open source software. So I think many people think that all software is unquestionably moving to an open source model in some form or another yeah. Tons of reasons to debate whether or not that is gonna happen an alwa timeline happening forever, but it is, it is accelerating faster than we've ever seen. So I, I think it's its one big mass of wave that we continue to ride. Um, second is the rise of data engineering. Uh, I think data engineering is in and of itself now a category of software. It's not just that we store data. It's now we move data and we develop applications on data. And, uh, I think data is in and of itself as big of a market as any of the other markets that we invest in. Uh, and finally it's the gift that keeps on giving. I've spent my entire career in it. We still feel that security is a market that is underinvested. It is, it continues to be the place where people need to continue to invest and spend more money. Yeah. Uh, and those are the three major trends that we run >>And security, you think we all need a do over, right? I mean, do we need a do over in security or is what's the core problem? I, >>I, I keep using this word underinvested because I think it's the right way to think about the problem. I think if you, I think people generally speaking, look at cyber security as an add-on. Yeah. But if you think about it, the whole like economy is moving online. And so in, in some ways like security is core to protecting the digital economy. And so it's, it shouldn't be an afterthought, right? It should be core to what everyone is doing. And that's why I think relative to the trillions of dollars that are at stake, uh, I believe the market size for cybersecurity is around 150 billion and it still is a fraction of what >>We're, what we're and even boom is booming now. So you get the convergence of national security, geopolitics, internet digital >>That's right. You mean arguably, right. Arguably again, it's the area of the world that people should be spending more time and more money given what to stake. >>I love your thesis. I gotta, I gotta say you gotta love your firm. Love who you're doing. We're big supporters of your mission. Congrat is on your entrepreneurial venture. And uh, we'll be, we'll be talking and maybe see a Cuban. Uh, >>Absolutely >>Not. Certainly EU maybe even north America's in Detroit this year. >>Huge fan of what you guys are doing here. Thank you so much for helping me on the show. >>Des bell VC Johnson here on the cube. Check him out. Founder for founders here on the cube, more coverage from San Francisco, California, after the short break, stay with us. Hey everyone. Welcome to the cue here. Live in San Francisco, California for AWS summit, 2022 we're live we're back with events. Also we're virtual. We got hybrid all kinds of events. This year, of course, 80% summit in New York city is happening this summer. We'll be there with the cube as well. I'm John. Again, John host of the cube. Got a great guest here. Justin Colby, owner and CEO of innovative solutions they booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, off camera about some of the work you're doing. You're the owner of and CEO. Yeah. Of innovative. Yeah. So tell us the story. What do you guys do? What's the elevator pitch. Yeah. >><laugh> so the elevator pitch is we are, uh, a hundred percent focused on small to midsize businesses that are moving to the cloud or have already moved to the cloud and really trying to understand how to best control, cost, security, compliance, all the good stuff, uh, that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is. But now we have offices down in Austin, Texas up in Toronto, uh, Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago. And it's been a great ride. >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by AWS. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demands coming from cloud migrations and application modernization and obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? Yeah. >>It's a great question. Every CEO I talk to, that's a small to mid-size business. I'll try and understand how to leverage technology better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech is really at the, at the forefront and the center of that. So most customers are coming to us and they're like, listen, we gotta move to the out or we move some things to the cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then, uh, progressively working through a modernization strategy is always the better approach. And so we spend a lot of time with small to midsize businesses who don't have the technology talent on staff to be able to do >>That. Yeah. They want to get set up. But the, the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off happening around everywhere. It is. And it's not, it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more IOT devices. What's that like right now from a challenge and problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem you guys solve >>The SMB space. The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and are hardened solutions. And so, um, what we try to do with technology staff that has additional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether that's, we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I talk to, yeah, they're like, listen, the end of the day, I'm gonna be spending money in one place or another, whether that's OnPrem or in the cloud. I just want to know that I'm doing that in a way that helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is, is no. No. Good. >>How about factoring in the, the agility and speed equation? Does that come up a lot? It >>Does. I think, um, I think there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time. Yeah. In the cloud, if you start the, on your journey in one way, and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's a, gives you a much higher density for making decisions and failing >>Forward. Well actually shutting down the abandoning, the projects that early and not worrying about it, you got it. I mean, most people don't abandon stuff cuz they're like, oh, I own it. >>Exactly. >>And they get, they get used to it. Like, and then they wait too long. >>That's exactly. Yeah. >>Frog and boiling water as we used to say so, oh, it's a great analogy. So I mean this, this is a dynamic that's interesting. I wanna get more thoughts on it because like I'm a, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you guys come in. I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talk to at reinvent, that's a customer. Well, how many announcements did Andy jazzy announcer Adam, you know, five, a thousand announcement or whatever they did with huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just product. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are >>The values. >>Our mission is, is very simple. We want to help every small to mid-size business, leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we go to market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a tech company in the pro of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your it department to make all those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our managed services. Meaning know that we have their back and we're the safety net. So when a customer is saying, all right, I'm gonna spend a couple thousand dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going on loan. Who's there to help protect that. Number two, if you have a security posture and let's just say you're high profile and you're gonna potentially be more vulnerable to security attack. If you have a partner that's offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own, it would cost 'em a fortune. If >>It's training alone would be insane. A risk factor not mean the cost. Yes, absolutely. Opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. Yeah. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 2018, when, uh, when we made the decision to go all on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious decision. It wasn't requirement isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front desk >>And she could be running the Kubernetes clusters. I >>Love it. It's amazing. So I'll tell you what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get the right >>People involved. And that's a cultural factor that you guys have. So, so again, this is back to my whole point about SMBs and BIS is in general, small and large. It staffs are turning over the gen Z and millennials are in the workforce. They were provisioning top of rack switches. Right. First of all. And so if you're a business, there's also the, I call the build out, um, uh, return factor, ROI piece. At what point in time as an owner or SMB, do I get the why? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cyber security issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one in the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are >>Like critical issues. This >>Is just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about this, that's, >>That's what, at least a million in bloating, if not three or more Just to get that going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side now. Yeah. No. And nevermind AI and ML. That's >>Right. That's right. So to try to go it alone, to me, it's hard. It's incredibly difficult. And the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll do all that exactly. In the it department. >>Exactly. >>Like, can we just call up, uh, you know, our old vendor that's >>Right. <laugh> right. Our old vendor. I like >>It, >>But that's so true. I mean, when I think about how, if I were a business owner starting a business today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around that is, is very important. And it's something that we tell, talk about every, with every one of our small to mid-size >>Businesses. So just, I wanna get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative yeah. Award winning guys doing great. Uh, great bet on a good call. Yeah. Things are good. Tell your story. What's your journey? >>It's real simple. I was, uh, I was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportunity with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduce other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. And I came in, I did an internship for six months and I loved it. I learned more in those six months that I probably did in my first couple of years at, uh, at RT long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, sales process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2010 and I was like, Hey, on the value of this business and who knows where you guys are gonna be another five years, what do you think about making me an owner? And they were like, listen, you got long ways before you're gonna be an owner, but if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that were gonna also buy into the business with me. >>And they were the owners, no outside capital, none >>Zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons, they all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like if we're owners, we're gonna have to like cover that stuff. <laugh> so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015, and, uh, we made the decision that I was gonna buy the three partners out, um, go through an early now process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the business, cuz they cared very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be? We had built this company to this point. Yeah. And, uh, and by 2018 we knew that pivoting going all in on the cloud was important for us and we haven't looked back. >>And at that time the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly. And those kinds of big enterprises, the GA I don't wanna say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to mid-size business, to migrate completely to the cloud as, as infrastructure was considered. That just didn't happen as often. Um, what we were seeing where a lot of our small to mid-size as customers, they wanted to leverage cloud-based backup or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration, the Microsoft suite to the cloud. And a lot of 'em dipped their toe in the water. But by 2017 we knew infrastructure was around the corner. Yeah. And so, uh, we only had two customers on AWS at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is it the app modernization? Is it data? What's the hot product and then put a plug in for the company. Awesome. >>So, uh, there's no question. Every customer is looking to migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. So any SMB that's thinking about migrating to the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customers not to be cash strap and gives them an opportunity to move forward in a controlled, contained way so that they can modernize. >>So like insurance, basically for them not insurance class in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers and being empathetic to where they are in their journey. >>And that's the cloud upside is all about doubling down on the variable wind. That's right. Seeing the value and Ling down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate it. >>Thank you very much for having me. >>Okay. This is the cube coverage here live in San Francisco, California for AWS summit, 2022. I'm John for your host. Thanks for watching. We're back with more great coverage for two days after this short break, >>Live on the floor and see San Francisco for a AWS summit. I'm John ferry, host of the cube here for the next two days, getting all the action we're back in person. We're at a AWS reinvent a few months ago. Now we're back. Events are coming back and we're happy to be here with the cube. Bring all the action. Also virtual. We have a hybrid cube. Check out the cube.net, Silicon angle.com for all the coverage. After the event. We've got a great guest ticking off here. Matthew Park, director of solutions, architecture with innovation solutions. The booth is right here. Matthew, welcome to the cube. >>Thank you very much. I'm glad to be >>Here. So we're back in person. You're from Tennessee. We were chatting before you came on camera. Um, it's great to have to be back through events. >>It's amazing. This is the first, uh, summit I've been to and what two, three years. >>It's awesome. We'll be at the UHS summit in New York as well. A lot of developers and a big story this year is as developers look at cloud going distributed computing, you got on premises, you got public cloud, you got the edge. Essentially the cloud operations is running everything dev sec ops, everyone kind of sees that you got containers, you got Kubernetes, you got cloud native. So the game is pretty much laid out mm-hmm <affirmative> and the edge is with the actions you guys are number one, premier partner at SMB for edge. >>That's right. >>Tell us about what you guys doing at innovative and, uh, what you do. >>That's right. Uh, so I'm the director of solutions architecture. Uh, me and my team are responsible for building out the solutions that are around, especially the edge public cloud for us edge is anything outside of an AWS availability zone. Uh, we are deploying that in countries that don't have AWS infrastructure in region. They don't have it. Uh, give an example, uh, example would be Panama. We have a customer there that, uh, needs to deploy some financial tech and compute is legally required to be in Panama, but they love AWS and they want to deploy AWS services in region. Uh, so they've taken E EKS anywhere. We've put storage gateway and, uh, snowball, uh, in region inside the country and they're running their FinTech on top of AWS services inside Panama. >>You know, it's interesting, Matthew is that we've been covering a, since 2013 with the cube about their events. And we watched the progression and jazzy was, uh, was in charge and became the CEO. Now Adam's in charge, but the edge has always been that thing they've been trying to avoid. I don't wanna say trying to avoid, of course, Amazon would listen to the customers. They work backwards from the customer. We all know that. Uh, but the real issue was they were they're bread and butters EC two and S three. And then now they got tons of services and the cloud is obviously successful and seeing that, but the edge brings up a whole nother level. >>It does computing. It >>Does. That's not centralized in the public cloud now they got regions. So what is the issue at the edge what's driving the behavior. Outpost came out as a reaction to competitive threats and also customer momentum around OT, uh, operational technologies. And it merging. We see that the data at the edge, you got 5g having. So it's pretty obvious, but there's a slow transition. What was the driver for the edge? What's the driver now for edge action for AWS >>Data is the driver for the edge. Data has gravity, right? And it's pulling compute back to where the customer's generating that data and that's happening over and over again. You said it best outpost was a reaction to a competitive situation where today we have over 15 AWS edge services and those are all reactions to things that customers need inside their data centers on location or in the field like with media companies. >>Outpost is interesting. We always used to riff on the cube cause it's basically Amazon and a box pushed in the data center, running native, all the stuff, but now cloud native operations are kind of becoming standard. You're starting to see some standard Deepak syncs. Group's doing some amazing work with open source Rauls team on the AI side, obviously, uh, you got SW, he was giving the keynote tomorrow. You got the big AI machine learning big part of that edge. Now you can say, okay, outpost, is it relevant today? In other words, did outpost do its job? Cause EKS anywhere seems to be getting a lot of momentum. You see local zones, the regions are kicking ass for Amazon. This edge piece is evolving. What's your take on EKS anywhere versus say outpost? >>Yeah, I think outpost did its job. It made customers that were looking at outpost really consider, do I wanna invest in this hardware? Do I, do I wanna have, um, this outpost in my data center, do I want to manage this over the long term? A lot of those customers just transitioned to the public cloud. They went into AWS proper. Some of those customers stayed on prem because they did have use cases that were, uh, not a good fit for outposts. They weren't a good fit. Uh, in the customer's mind for the public AWS cloud inside an availability zone. Now what's happening is as AWS is pushing these services out and saying, we're gonna meet you where you are with 5g. We're gonna meet you where you are with wavelength. We're gonna meet you where you are with EKS anywhere. Uh, I think it has really reduced the amount of times that we have conversations about outposts and it's really increased. We can deploy fast. We don't have to spin up outpost hardware. We can go deploy EKS anywhere or in your VMware environment. And it's increasing the speed of adoption >>For sure. Right? So you guys are making a lot of good business decisions around managed cloud service. That's right. Innovative as that you get the cloud advisory, the classic professional services for the specific edge piece and, and doing that outside of the availability zones and regions for AWS, um, customers in, in these new areas that you're helping out are, they want cloud, like they want to have modernization a modern applications. Obviously they got data machine learning and AI, all part of that. What's the main product or, or, or gap that you're filling for AWS, uh, outside of their availability zones or their regions that you guys are delivering. What's the key is it. They don't have a footprint. Is it that it's not big enough for them? What's the real gap. What's why, why are you so successful? >>So what customers want when they look towards the cloud is they want to focus on, what's making them money as a business. They want on their applications. They want to focus on their customers. So they look towards AWS cloud and say, AWS, you take the infrastructure. You take, uh, some of the higher layers and we'll focus on our revenue generating business, but there's a gap there between infrastructure and revenue generating business that innovative slides into, uh, we help manage the AWS environment. Uh, we help build out these things in local data centers for 32 plus year old company. We have traditional on-premises people that know about deploying hardware that know about deploying VMware to host EKS anywhere. But we also have most of our company totally focused on the AWS cloud. So we're filling that gap in helping of these AWS services, manage them over the long term. So our customers can go to just primarily and totally focusing on their revenue generating business. So >>Basically you guys are basically building AWS edges, >>Correct? >>For correct companies, correct? Mainly because the, the needs are there, you got data, you got certain products, whether it's, you know, low latency type requirements, right. And then they still work with the regions, right. It's all tied together, right. Is that how it works? Right. >>And, and our customers, even the ones in the edge, they also want us to build out the AWS environment inside the availability zone, because we're always gonna have a failback scenario. If we're gonna deploy FinTech in the Caribbean, we talk about hurricanes and we're gonna talk about failing back into the AWS availability zones. So innovative is filling that gap across the board, whether it be inside the AWS cloud or on the AWS edge. >>All right. So I gotta ask you on the, since you're at the edge in these areas, I won't say underserved, but developing areas where you now have data and you have applications that are tapping into that, that required. It makes total sense. We're seeing that across the board. So it's not like it's, it's an outlier it's actually growing. Yeah. There's also the crypto angle. You got the blockchain. Are you seeing any traction at the edge with blockchain? Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech. And in, in the islands there a lot of, lot of, lot of web three happening. What's your, what's your view on the web three world right now, relative >>To we, we have some customers actually deploying crypto, especially, um, especially in the Caribbean. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers that are deploying crypto. A lot of, uh, countries are choosing crypto to underlie parts of their central banks. Yeah. Um, so it's, it's up and coming a, uh, I, I have some, you know, personal views that, that crypto is still searching for a use case. Yeah. And, uh, I think it's searching a lot and, and we're there to help customers search for that use case. Uh, but, but crypto, as a, as a, uh, technology, um, lives really well on the AWS edge. Yeah. Uh, and, and we're having more and more people talk to us about that. Yeah. And ask for assistance in the infrastructure, because they're developing new cryptocurrencies every day. Yeah. It's not like they're deploying Ethereum or anything specific. They're actually developing new currencies and, and putting them out there on it's >>Interesting. I mean, first of all, we've been doing crypto for many, many years. We have our own little, um, you know, projects going on. But if you look talk to all the crypto people that say, look, we do a smart concept. We use the blockchain. It's kind of over a lot of overhead and it's not really their technical already, but it's a cultural shift, but there's underserved use cases around use of money, but they're all using the blockchain, just for this like smart contracts for instance, or certain transactions. And they go into Amazon for the database. Yeah. <laugh> they all don't tell anyone we're using a centralized service, but what happened to decentralized. >>Yeah. And that's, and that's the conversation performance issue. Yeah. And, and it's a cost issue. Yeah. And it's a development issue. Um, so I think more and more as, as some of these, uh, currencies maybe come up, some of the smart contracts get into, uh, they find their use cases. I think we'll start talking about how does that really live on, on AWS and, and what does it look like to build decentralized applications, but with AWS hardware and services. >>Right. So take me through, uh, a use case of a customer, um, Matthew around the edge. Okay. So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. I want to modernize my business. And I got my developers that are totally peaked up on cloud. Um, but we've identified that it's just a lot of overhead latency issues. I need to have a local edge and serve my ad. And I also want all the benefit of the cloud. So I want the modernization and I wanna migrate to the cloud for all those cloud benefits and the goodness of the cloud. What's the answer. Yeah. >>Uh, big thing is, uh, industrial manufacturing, right? That's, that's one of the best use cases, uh, inside industrial manufacturing, we can pull in many of the AWS edge services we can bring in, uh, private 5g, uh, so that all the, uh, equipment inside that, that manufacturing plant can be hooked up. They don't have to pay huge overheads to deploy 5g it's, uh, better than wifi for the industrial space. Um, when we take computing down to that industrial area, uh, because we wanna do pre-procesing on the data. Yeah. We want to gather some analytics. We deploy that with, uh, regular commercial available hardware running VMware, and we deploy EKS anywhere on that. Uh, inside of that manufacturing plant, uh, we can do pre-procesing on things coming out of the, uh, the robotics that depending on what we're manufacturing, right. Uh, and then we can take those refined analytics and for very low cost with maybe a little bit longer latency transmit those back, um, to the AWS availability zone, the, the standard for >>Data, data lake, or whatever, to >>The data lake. Yeah. Data lake house, whatever it might be. Um, and we can do additional data science on that once it gets to the AWS cloud. Uh, but a lot of that, uh, just in time business decisions, just in time, manufacturing decisions can all take place on an AWS service or services inside that manufacturing plant. And that's, that's one of the best use cases that we're >>Seeing. And I think, I mean, we've been seeing this on the queue for many, many years, moving data around is very expensive. Yeah. But also compute going to the data that saves that cost yep. On the data transfer also on the benefits of the latency. So I have to ask you, by the way, that's standard best practice now for the folks watching don't move the data, unless you have to, um, those new things are developing. So I wanna ask you what new patterns are you seeing emerging once this new architecture's in place? Love that idea, localize everything right at the edge, manufacturing, industrial, whatever, the use case, retail, whatever it is. Right. But now what does that change in the, in the core cloud? This is a, there's a system element here. Yeah. What's the new pattern. There's >>Actually an organizational element as well, because once you have to start making the decision, do I put this compute at the point of use or do I put this compute in the cloud out? Uh, now you start thinking about where business decisions should be taking place. Uh, so not only are you changing your architecture, you're actually changing your organization because you're thinking, you're thinking about a dichotomy you didn't have before. Uh, so now you say, okay, this can take place here. Uh, and maybe maybe decision can wait. Right? Yeah. Uh, and then how do I visualize that? By >>The way, it could be a bot too, doing the work for management. Yeah. <laugh> exactly. You got observability going, right. But you gotta change the database architecture on the back. So there's new things developing. You've got more benefit. There >>Are, there are. And, and we have more and more people that, that want to talk less about databases and want to talk more about data lakes because of this. They want to talk more about customers are starting to talk about throwing away data, uh, you know, for the past maybe decade. Yeah. It's been store everything. And one day we will have a data science team that we hire in our organization to do analytics on this decade of data. And >>Well, I mean, that's, that's a great point. We don't have time to drill into, maybe we do another session on this, but the one pattern was income of the past year is that throwing away data's bad. Even data lakes that so-called turn into data swamps, actually, it's not the case. You look at data, brick, snowflake, and other successes out there. And even time series data, which may seem irrelevant efforts over actually matters when people start retrain their machine learning algorithms. Yep. So as data becomes code, as we call it our lab showcase, we did a whole, whole, that event on this. The data's good in real time and in the lake. Yeah. Because the iteration of the data feeds the machine learning training. Things are getting better with the old data. So it's not throw away. It's not just business benefits. Yeah. There's all kinds of new scale. There >>Are. And, and we have, uh, many customers that are run petabyte level. Um, they're, they're essentially data factories on, on, uh, on premises, right? They're, they're creating so much data and they're starting to say, okay, we could analyze this, uh, in the cloud, we could transition it. We could move petabytes of data to the AWS cloud, or we can run, uh, computational workloads on premises. We can really do some analytics on this data transition, uh, those high level and sort of raw analytics back to AWS run 'em through machine learning. Um, and we don't have to transition 10, 12 petabytes of data into AWS. >>So I gotta end the segment on a, on a kind of a, um, fun note. I was told to ask you about your personal background on premise architect, a cloud and skydiving instructor. <laugh> how does that all work together? What tell, what does this mean? Yeah. >>Uh, you >>Jumped out a plane and got a job. You, you got a customer to jump out >>Kind of. So I was jump, I was teaching Scott eing, uh, before I, before I started in the cloud space, this was 13, 14 years ago. I was a, I still am a Scott I instructor. Yeah. Uh, I was teaching Scott eing and I heard out of the corner of my ear, uh, a guy that owned an MSP that was lamenting about, um, you know, storing data and, and how his cus customers are working. And he can't find enough people to operate all these workloads. So I walked over and said, Hey, this is, this is what I went to school for. Like, I'd love to, you know, uh, I was living in a tent in the woods teaching scout. I think I was like, I'd love to not live in a tent in the woods. So, uh, uh, I started in the first day there, uh, we had a, a discussion, uh, EC two, just come out <laugh> um, and, uh, like, >>This is amazing. >>Yeah. And so we had this discussion, we should start moving customers here. And, uh, and that totally revolutionized that business, um, that, that led to, uh, that that guy actually still owns a skydiving airport. But, um, but through all of that and through being an on premises migrated me and myself, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, now let's take what we learned in the cloud and, and apply those lessons and those services to >>It's. So it's such a great story, you know, I was gonna, you know, you know, the, the, the, the whole, you know, growth mindset pack your own parachute, you know, uh, exactly. You know, the cloud in the early day was pretty much will the shoot open. Yeah. It was pretty much, you had to roll your own cloud at that time. And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. >>And so was Kubernetes by the way, 2015 or so when, um, when that was coming out, it was, I mean, it was, it was still, and I, maybe it does still feel like that to some people. Right. But, uh, it was, it was the same kind of feeling that we had in the early days, AWS, the same feeling we have when we >>It's pretty much now with you guys, it's more like a tandem jump. Yeah. You know, but, but it's a lot of, lot of this cutting edge stuff, like jumping out of an airplane. Yeah. You guys, the right equipment, you gotta do the right things. Exactly. >>Right. >>Matthew, thanks for coming on the cube. Really appreciate it. Absolutely great conversation. Thanks for having me. Okay. The cubes here live and San Francisco for summit. I'm John Forry host of the cube. Uh, we'll be at a summit in New York coming up in the summer as well. Look up for that. look@thiscalendarforallthecubeactionatthecube.net. We'll be right back with our next segment after this break. >>Okay. Welcome back everyone to San Francisco live coverage here, we're at the cube a be summit 2022. We're back in person. I'm John fury host to the cube. We'll be at the eight of his summit in New York city. This summer, check us out then. But right now, two days in San Francisco, getting all the coverage what's going on in the cloud, we got a cube alumni and friend of the cube, my dudes, car CEO, investor, a Sierra, and also an investor and a bunch of startups, angel investor. Gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see you, sir. Chris. Cool. How are, are you >>Good? How are you? >>So congratulations on all your investments. Uh, you've made a lot of great successes, uh, over the past couple years, uh, and your company raising, uh, some good cash as Sarah. So give us the update. How much cash have you guys raised? What's the status of the company product what's going on? First >>Of all, thank you for having me back to be business with you. Never great to see you. Um, so is a company started around four years back. I invested with a few of the investors and now I'm the CEO there. Um, we have raised close to a hundred million there. Uh, the investors are people like Norwes Menlo, Tru ventures, coast, lo ventures, Ram Sheam and all those people, all well known guys. The Andy Beckel chime, Paul Mo uh, main web. So a whole bunch of operating people and, uh, Silicon valley VCs are involved >>And has it come? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISR is going after is what I call the applying AI for customer service. It operations, it help desk, uh, the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and ServiceNow to take it to the next stage? >>Well, I love having you on the cube, Dave and I, Dave Valenti as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a GE, you're like a guest analyst. <laugh> >>You know who you >>Get to call this fun to talk. You though, >>You got the commentary, you, your, your finger on the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase it. Isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud scale. You predicted that we talked about on cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing DACA just raised a hundred million on a 2 billion valuation back from the dead after they pivoted from an enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control, plane emerging, AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded, observability there's 10 million observability companies. Data is the key. What's your angle on this? What's your take. Yeah, >>No, look, I think I'll give you the view that I see right from my side. Obviously data is very clear. So the things that remember system of recorded you and me talked about the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud NA it'll be called AI, NA AI native is a new buzzword and using the AI customer service it operations. You talk about observability. I call it, AIOps applying AOPs for good old it operation management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events insurance. So I see a lot of work clicking for AIOps and service desk. What needs to be helped us with ServiceNow BMC G you see a new ELA emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflow, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with a AI workflows. So you'll see AI going >>Off is RPA a company is AI, is RPA a feature of something bigger? Or can someone have a company on RPA UI pass? One will be at their event this summer? Um, is it a product company? I mean, I mean, RPA is almost, should be embedded in everything. It's >>A feature. It is very good point. Very, very good thinking. So one is, it's a category for sure. Like, as we thought, it's a category, it's an area where RPA may change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company, or, but that automation should be embedded in every area. Yeah. Like we call cloud NA and AI NATO it'll become automation. NA yeah. And that's your thinking. >>It's almost interesting me. I think about the, what you're talking about what's coming to mind is I'm kinda having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it. It was middleware. It sat between two things and then the middle, and it was software abstraction. Now you have all, all kinds of workflows, abstractions everywhere. So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed or they integrated. I mean, these are the challenges. This is crazy. What's the, >>So don't about the databases become called poly databases. Yeah. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area like you were talking about. It should be part of service. Now it should be part of ISRA, like every company, every Salesforce. So that's why you see MuleSoft and Salesforce buying RPA companies. So you'll see all the SaaS companies, cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also have an automation as a layer <inaudible> inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind us, you've got the expo hall. We got, um, we're back to vents, but you got, you know, AMD, Clum, Ove, uh, Dynatrace data, dog, innovative, all the companies out here that we know, we interview them all. They're trying to be suppliers to this growing enterprise market. Right. Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Bel later today. He's a former NEA guy and we always talk to Jerry, Jen. We know all the, the VCs. What does the startups look like? What does the state of the, in your mind, cause you, I know you invest the entrepreneurial founder situation, clouds bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's code. Yes. Basically data is everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to, uh, two things that I'm seeing out there. Remember leaders of Amazon created the startups 15 years back. Everybody built on Amazon now, Azure and GCP. The next layer would be is people don't just build on Amazon. They're going to build it on top of snowflake. Companies are snowflake becomes a data platform, right? People will build on snowflake. Right? So I see my old boss flagman try to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer. Right? So I think that's in the of, <inaudible> trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis a couple months ago called castles in the cloud where your moat is, what you do in the cloud. Not necessarily in the, in the IP. Um, Dave LAN and I had last reinvent, coined the term super cloud, right? He's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldman S Sachs is doing. You starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage. And guys like Charles Fitzgeral out there, who we like was kind of shit on us saying, Hey, you guys terrible, they didn't get it. Like, yeah. I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. <laugh> if he's cool. Um, but snowflake is on Amazon. Yes. Now they say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist. And, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. >>It is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to build everything on Amazon where possible whatever is, I cannot build. I'll make the pass layer. Remember the middle layer pass will be snowflake. So can build it on snowflake. I can use them for data layer. If I really need to size, I'll build it on four.com Salesforce. So I think that's where you'll see. So >>Basically if you're an entrepreneur, the north star in terms of the outcome is be a super cloud. >>It is, >>That's the application on another big CapEx ride, the CapEx of AWS or cloud, >>And that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. >>Yeah. Yeah. How are, how is Amazon and the clouds dealing with these big whales? The snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think got Redshift. Amazon has got red, um, but Snowflake's a big customer. They're probably paying AWS think big bills too. >>So John, very good. Cause it's like how Netflix is and Amazon prime, right. Netflix runs on Amazon, but Amazon has Amazon prime that co-option will be there. So Amazon will have Redshift, but Amazon is also partnering with, uh, snowflake to have native snowflake data warehouse as a data layer. So I think depending on the application use case, you have to use each of the above. I think snowflake is here for a long term. Yeah. Yeah. So if I'm building an application, I want to use snowflake then writing from stats. >>Well, I think that comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, You know, foreclose your value that's right. But some sort of internal hack, but I think, I think the general question that I have is that I think it's okay to have a super cloud like that because the rising tide is still happening at some point. When does the rising tide stop >>And >>Do the people shopping up their knives, it gets more competitive or is it just an infinite growth cycle? I >>Think it's growth. You call it cloud scale. You invented the word cloud scale. So I think look, cloud will continually agree, increase. I think there's, as long as there are more movement from on, uh, OnPrem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations. It helpless, even the customer service service now and, uh, ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So cloud ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go made. >>I wanna get your thoughts for the folks watching that are, uh, enterprise buyers or practitioners, not suppliers to the market, feel free to, to XME or DMing. Next question's really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products. Cause you know, the big enterprises now and, you know, small, medium, large, and large enterprise are all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between the startup selling to, or a growing startup selling to an enterprise? Um, have you seen changes there? I mean I'm seeing some stuff, but why don't we get your thoughts on that? What, no, it is. >>If I remember going back to our 2007 or eight, it, when I used to talk to you back then when Amazon started very small, right? We are an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or 1% today. Most companies are already spending 20, 30% with startups. Like if I look at a CIO line business, it's gone. Yeah. Can it go more? I think it can double in the next four, five years. Yeah. Spending on the startups. >>Yeah. And check out, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want to get your reaction because I reference the URL cause it's like, there's like a bunch of companies we've been promoting because the solutions that startups have actually are new stuff. Yes. It's bending, it's shifting left for security or using data differently or um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there, um, and gives back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona, you mentioned AIOps, we've been seeing AIOps IOPS booming and that's creating a new developer paradigm that's right. Which we call coin data as code data as code is like infrastructure as code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this data engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same thing? Do you agree? Um, do you disagree or can you share >>Yourself? No, I have a lot of thoughts that plus I see AIOP solutions in the future should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone there yet. Like I spend a lot of time with data dog, Cisco app Dyna, right? Dynatrace, all this solution will go future towards to proactive solution with AOPs. But what you bring up a very good point on the data side. I think like we have a Amazon marketplace and Amazon for startup, there should be data exchange where you want to create for AOPs and AI service that customers are give the data, share the data because we thought the data algorithms are useless. I can come the best algorithm, but I gotta train them, modify them, tweak them, make them better, make them better. Yeah. And I think their whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that area is very important. >>You've always been on, um, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to our big data days back in 2009, you know, >>Look at, look how much data bricks has grown. >>It is uh, double, the key >>Cloud kinda went private, so good stuff. What are you working on right now? Give a, give a, um, plug for what you're working on. You'll still investing. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. So right. ISRA is my number one baby right now. So I'm looking at that growing customers and my customers are some of them, you like it's zoom auto desk, Mac of fee, uh, grandchildren, all the top customers. Um, mainly for it help desk customer service. AIOps those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What's what's their need? What category is it? >>I think they look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on predict S one area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value problem. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service, >>Great stuff, man. Doing great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the cube. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of 80 summit, 2022. And we're gonna be at 80 summit in San, uh, in New York and the summer. So look for that on this calendar, of course go to eight of us, startups.com. I mentioned that it's a site for all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break. >>Okay. Welcome back everyone. This to cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back a little bit smaller footprint, a lot of hybrid events going on, but this is actually a physical event, a summit new York's coming in the summer. We'll be there too with the cube on the set. We're getting back in the groove, psyched to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're gonna see a lot of virtual cube, a lot of hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economists with duck, bill groove, he founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank you. >>Thanks. Coming on. Sure is a lot of words to describe as shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at Mark's been doing a lot of shit posting lately, all a billionaires are shit posting, but they don't know how to do it. Like they're not >>Doing it right. Something opportunity there. It's like, here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a mid-size island to begin doing this from, oh, then we're having fun. This >>Shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on the other side, I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what is shit posting? >>It's more or less talking about the world of enterprise tech, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream. But it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a jackass or more prosaically are worried about getting fired for better or worse. I don't have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, coupons coming up in Spain, which they're having a physical event, you can see the growth of cloud native Amazons, all, all the Adams let see new CEO, Andy move on to be the chief of all. Amazon just saw him. The cover of was it time magazine. Um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything these folks do. They they're effectively in a fishbowl, but I have trouble imagining the logistics. It takes to wind up handling the catering for a relatively downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. It's, it's sprawling, immense that dominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. Well, >>There's a lot of force for good conversations, seeing a lot of that going on, Amazon's trying to port and he was trying to portray themselves as you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that and I think that's a good angle as cloud goes mainstream. There's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now it same kind of thing. As you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby races, a as a semi-pro race car driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. Either way, sounds like more exciting >>Replacement ready <laugh> in case something goes wrong. I, the track highly >>Available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula one is they have these new rigs out. Yeah. Where you can actually race in e-sports with other, in pure simulation of the race car. You gotta get the latest and video graphics card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. >>Oh, it's great too. And I can see the appeal of these tech companies getting into it because these things are basically rocket shifts. When those cars go, like they're sitting there, we can instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going in your world. I know you have a lot of great success. We've been following you in the queue for many, many years. Got a great newsletter. Check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's back any blow back late there been uptick. What was, what are some of the things you're hearing from your audience, more Corey, more Corey. And then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's high. I'm emailing an awful lot of people at last week in AWS every week and okay. They must not have heard me it. That is not actually true. People just generally don't respond to email because who responds to email newsletters. That sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do that. >>We should do that. Actually. I think sure would call in. Oh, I, >>I think >>Chief, we had that right now. People would call in and say, Corey, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised anything by how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the customer. >>You know, I always joke with Dave ante about how John Fort's always at, uh, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of goof on that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0 5, or we can't, >>We have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And there you go. Yeah. >>It's and the old joke at HP was if they, if they invented sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish. That's what it is. And so the joke was cold. Dead fish is a better name than sushi. So you know is fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their >>Producting, they're going in different directions. When they named Amazon Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonused on a number of words. They can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, session manager is a great one. I love the service, ridiculous name. They have systems manager, parameter store, which is great. They have secrets manager, which does the same thing. It's two words less, but that one costs money in a way that systems manage your parameter store does not. It's >>Fun. What's your, what's your favorite combination of acronyms >>Combination of you >>Got Ks. You got EMR, you got EC two. You got S three SQS. Well, Redshift the on an acronym, you >>Gots is one of my personal favorites because it's either elastic block store or elastic bean stock, depending entirely on the context of the conversation. >>They still up bean stalk. Or is that still around? Oh, >>They never turn anything off. They're like the anti Google, Google turns things off while they're still building it. Whereas Amazon is like, wow, we built this thing in 2005 and everyone hates it. But while we certainly can't change it, now it has three customers on it. John three <laugh>. >>Okay. >>Simple BV still haunts our dreams. >>I, I actually got an email. I saw one of my, uh, servers, all these C two S were being deprecated and I got an email I'm like, I couldn't figure out. Why can you just like roll it over? Why, why are you telling me just like, give me something else. Right. Okay. So let me talk about, uh, the other things I want to ask you is that like, okay. So as Amazon gets better in some areas, where do they need more work in your opinion? Because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database, Snowflake's got a database service. So Redshift, snowflake database is, so you got this co-op petition. Yes. How's that going? And what are you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with Amazon and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want and they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multi-cloud cause obviously the other cloud shows are coming up. Amazon hated that word. Multi-cloud um, a lot of people are saying, you know, it's not a real good marketing word, like multi sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multi-cloud >>Multiple single points? >>Dave loves that term. Yeah. >>Yeah. You're building in multiple single points of failure. Do it for the right reasons or don't do it as a default. I believe not doing it is probably the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about multi-cloud either as the industry leader, talk about other clouds, bad direction to go in from a market cap perspective, it doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of forms. Some brilliant, some brain dead. It depends a lot on context. But my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing, because it solves problems. That's when I shut up and listen. Yeah. >>Cool. Awesome. Corey, I gotta ask you a question, cause I know you, we you've been, you know, fellow journeymen and the, and the cloud journey going to all the events and then the pandemic hit where now in the third year, who knows what it's gonna gonna end. Certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations. Community's gonna emerge. You got a pretty big community growing and it's throwing like crazy. What's the weirdest or coolest thing, or just big chain angels. You've seen with the pandemic, uh, from your perspective, cuz you've been in the you're in the middle of the whitewater rafting. You've seen the events you circle offline. You saw the online piece, come in, you're commentating. You're calling balls and strikes in the industry. You got a great team developing over there. Duck bill group. What's the big aha moment that you saw with the pandemic. Weird, fun, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who can pony up two grand and a week in Las Vegas and get to Las Vegas from wherever they happen to be by moving virtually suddenly it, it embraces the reality that talent is even distributed. Opportunity is not. And that means that suddenly these things are accessible to a wide swath of audience and potential customer base and the rest that hadn't been invited to the table previously, it's imperative that we not lose that. It's nice to go out and talk to people and have people come up and try and smell my hair from time to time, I smell delightful. Let make assure you, but it was, but it's also nice to be. >>I have a product for you if you want, you know. >>Oh, excellent. I look forward to it. What is it putting? Why not? <laugh> >>What else have you seen? So when accessibility for talent, which by the way is totally home run. What weird things have happened that you've seen? Um, that's >>Uh, it's, it's weird, but it's good that an awful lot of people giving presentations have learned to tighten their message and get to the damn point because most people are not gonna get up from a front row seat in a conference hall, midway through your Aing talk and go somewhere else. But they will change a browser tab and you won't get them back. You've gotta be on point. You've gotta be compelling if it's going to be a virtual discussion. >>Yeah. And also turn off your IMEs too. >>Oh yes. It's always fun in the, in the meetings when you're talking to someone and their co is messaging them about, should we tell 'em about this? And I'm sitting there reading it and it's >>This guy is really weird. Like, >>Yes I am and I bring it into the conversation and then everyone's uncomfortable. It goes, wow. >>Why not? I love when my wife yells at me over I message. When I'm on a business call, like, do you wanna take that about no, I'm good. >>No, no. It's better off. I don't. No, the only encourager it's fine. >>My kids. Excellent. Yeah. That's fun again. That's another weird thing. And, and then group behavior is weird. Now people are looking at, um, communities differently. Yes. Very much so, because if you're fatigued on content, people are looking for the personal aspect. You're starting to see much more of like yeah. Another virtual event. They gotta get better. One and two who's there. >>Yeah. >>The person >>That's a big part of it too is the human stories are what are being more and more interesting. Don't get up here and tell me about your product and how brilliant you are and how you built it. That's great. If I'm you, or if I wanna work with you or I want to compete with you, or I wanna put on my engineering hat and build it myself. Cause why would I buy anything? That's more than $8. But instead, tell me about the problem. Tell me about the painful spot that you specialize in. Tell me a story there. >>I, I >>Think that gets a glimpse in a hook and >>Makes more, more, I think you nailed it. Scaling storytelling. Yes. And access to better people because they don't have to be there in person. I just did it thing. I never, we never would've done the queue. We did. Uh, Amazon stepped up in sponsors. Thank you, Amazon for sponsoring international women's day, we did 30 interviews, APAC. We did five regions and I interviewed this, these women in Asia, Pacific eight, PJ, they called for in this world. And they're amazing. I never would've done those interviews cuz I never, would've seen 'em at an event. I never would've been in Japan or Singapore to access them. And now they're in the index. They're in the network. They're collaborating on LinkedIn. So a threads are developing around connections that I've never seen before. Yes. Around the content, >>Absolutely >>Content value plus >>The networking. And that is the next big revelation of this industry is going to realize you have different companies. And in Amazon's case, different service teams, all, all competing with each other, but you have the container group and you have the database group and you have the message cuing group. But customers don't really want to build things from spare parts. They want a solution to a problem. I want to build an app that does Twitter for pets or whatever it is I'm trying to do. I don't wanna basically have to pick and choose and fill my shopping cart with all these different things. I want something that's gonna give me what I'm trying to get as close to turnkey as possible. Moving up the stack. That is the future. And just how it gets here is gonna be >>Well we're here with Corey Quinn, the master of the master of content here in the a ecosystem. Of course we we've been following up in the beginnings. Great guy. Check out his blog, his site, his newsletter screaming podcast. Cory, final question for you. Uh, what do you hear doing what's on your agenda this week in San Francisco and give a plug for the duck build group. What are you guys doing? I know you're hiring some people what's on the table for the company. What's your focus this week and put a plug in for the group. >>I'm here as a customer and basically getting outta my cage cuz I do live here. It's nice to actually get out and talk to folks who are doing interesting things at the duck build group. We solve one problem. We fixed the horrifying AWS bill, both from engineering and architecture, advising as well as negotiating AWS contracts because it turns out those things are big and complicated. And of course my side media projects last week in aws.com, we are, it it's more or less a content operation where I indulge my continual and ongoing law of affair with the sound of my own voice. >><laugh> and you good. It's good content. It's on, on point fun, Starky and relevant. So thanks for coming to the cube and sharing with us. Appreciate it. No, thank you. Fun. You. Okay. This the cube covers here in San Francisco, California, the cube is back at to events. These are the summits, Amazon web services summits. They happen all over the world. We'll be in New York and obviously we're here in San Francisco this week. I'm John furry. Keep, keep it right here. We'll be back with more coverage after this short break. Okay. Welcome back everyone. This's the cubes covers here in San Francisco, California, we're live on the show floor of AWS summit, 2022. I'm John for host of the cube and remember AWS summit in New York city coming up this summer, we'll be there as well. And of course reinvent the end of the year for all the cube coverage on cloud computing and AWS. The two great guests here from the APN global APN se Jenko and Jeff Grimes partner leader, Jeff and se is doing partnerships global APN >>AWS global startup program. Yeah. >>Okay. Say that again. >>AWS global startup program. >>That's the official name. >>I love >>It too long, too long for me. Thanks for coming on. Yeah, of course. Appreciate it. Tell us about what's going on with you guys. What's the, how was you guys organized? You guys we're obviously were in San Francisco bay area, Silicon valley, zillions of startups here, New York. It's got another one we're gonna be at tons of startups. Lot of 'em getting funded, big growth and cloud big growth and data security, hot and sectors. >>Absolutely. >>So maybe, maybe we could just start with the global startup program. Um, it's essentially a white glove service that we provide to startups that are built on AWS. And the intention there is to help identify use cases that are being built on top of AWS. And for these startups, we want to provide white glove support in co building products together. Right. Um, co-marketing and co-selling essentially, um, you know, the use cases that our customers need solved, um, that either they don't want to build themselves or are perhaps more innovative. Um, so the, a AWS global startup program provides white glove support, dedicated headcount for each one of those pillars. Um, and within our program, we've also provided incentives, programs go to market activities like the AWS startup showcase that we've built for these startups. >>Yeah. By the way, start AWS startups.com is the URL, check it out. Okay. So partnerships are key. Jeff, what's your role? >>Yeah. So I'm responsible for leading the overall F for, for the AWS global startup program. Um, so I've got a team of partner managers that are located throughout the us, uh, managing a few hundred startup ISVs right now. <laugh> >>Yeah, I got >>A lot. We've got a lot. >>There's a lot. I gotta, I gotta ask the tough question. Okay. I'm I'm a startup founder. I got a team. I just got my series a we're grown. I'm trying to hire people. I'm super busy. What's in it for me. Yeah. What do you guys bring to the table? I love the white glove service, but translate that what's in it. What do I get out of it? What's >>A good story. Good question. I focus, I think. Yeah, because we get, we get to see a lot of partners building their businesses on AWS. So, you know, from our perspective, helping these partners focus on what, what do we truly need to build by working backwards from customer feedback, right? How do we effectively go to market? Because we've seen startups do various things, um, through trial and error, um, and also just messaging, right? Because oftentimes partners or rather startups, um, try to boil the ocean with many different use cases. So we really help them, um, sort of laser focus on what are you really good at and how can we bring that to the customer as quickly as possible? >>Yeah. I mean, it's truly about helping that founder accelerate the growth of their company. Yeah. Right. And there's a lot that you can do with AWS, but focus is truly the key word there because they're gonna be able to find their little piece of real estate and absolutely deliver incredible outcomes for our customers. And then they can start their growth curve there. >>What are some of the coolest things you've seen with the APN that you can share publicly? I know you got a lot going on there, a lot of confidentiality. Um, but you know, we're here lot of great partners on the floor here. I'm glad we're back at events. Uh, a lot of stuff going on digitally with virtual stuff and, and hybrid. What are some of the cool things you guys have seen in the APN that you can point to? >>Yeah, absolutely. I mean, I can point to few, you can take them. Sure. So, um, I think what's been fun over the years for me personally, I came from a startup, ran sales at an early stage startup and, and I went through the whole thing. So I have a deep appreciation for what these guys are going through. And what's been interesting to see for me is taking some of these early stage guys, watching them progress, go public, get acquired, and see that big day mm-hmm <affirmative>, uh, and being able to point to very specific items that we help them to get to that point. Uh, and it's just a really fun journey to watch. >>Yeah. I, and part of the reason why I really, um, love working at the AWS, uh, global startup program is working with passionate founders. Um, I just met with a founder today that it's gonna, he's gonna build a very big business one day, um, and watching them grow through these stages and supporting that growth. Um, I like to think of our program as a catalyst for enterprise sort of scale. Yeah. Um, and through that we provide visibility, credibility and growth opportunities. >>Yeah. A lot, a lot of partners too. What I found talking to staff founders is when they have that milestone, they work so hard for it. Whether it's a B round C round Republic or get bought. Yeah. Um, then they take a deep breath and they look back at wow, what a journey it's been. So it's kind of emotional for sure. Yeah. Still it's a grind. Right? You gotta, I mean, when you get funding, it's still day one. You don't stop. It's no celebrate, you got a big round or valuation. You still gotta execute >>And look it's hypercompetitive and it's brutally difficult. And our job is to try to make that a little less difficult and navigate those waters right. Where everyone's going after similar things. >>Yeah. I think as a group element too, I observe that startups that I, I meet through the APN has been interesting because they feel part of AWS. Yeah, totally. As a group of community, as a vibe there. Um, I know they're hustling, they're trying to make things happen. But at the same time, Amazon throws a huge halo effect. I mean, that's a huge factor. I mean, yeah. You guys are the number one cloud in the business, the growth in every sector is booming. Yeah. And if you're a startup, you don't have that luxury yet. And look at companies like snowflake, they're built on top of AWS. Yeah. I mean, people are winning by building on AWS. >>Yeah. And our, our, our program really validates their technology first. So we have, what's called a foundation's technical review that we put all of our startups through before we go to market. So that when enterprise customers are looking at startup technology, they know that it's already been vetted. And, um, to take that a step further and help these partners differentiate, we use programs like the competency programs, the DevOps compet, the, the security competency, which continues to help, um, provide sort of a platform for these startups, help them differentiate. And also there's go to market benefits that are associated with that. >>Okay. So let me ask the, the question that's probably on everyone's mind, who's watching. Certainly I asked this a lot. There's a lot of companies startups out there who makes the, is there a criteria? Oh God, it's not like his sports team or anything, but like sure. Like there's activate program, which is like, there's hundreds of thousands of startups out there. Not everyone is at the APN. Right? Correct. So ISVs again, that's a whole nother, that's a more mature partner that might have, you know, huge market cap or growth. How do you guys focus? How do you guys focus? I mean, you got a good question, you know, a thousand flowers blooming all the time. Is there a new way you guys are looking at it? I know there's been some talk about restructure or, or new focus. What's the focus. >>Yeah. It's definitely not an easy task by any means. Um, but you know, I recently took over this role and we're really trying to establish focus areas, right. So obviously a lot of the fees that we look after our infrastructure ISVs, that's what we do. Uh, and so we have very specific pods that look after different type of partners. So we've got a security pod, we've got a DevOps pod, we've got core infrastructure, et cetera. And really we're trying to find these ISVs that can solve, uh, really interesting AWS customer challenges. >>So you guys have a deliberate, uh, focus on these pillars. So what infrastructure, >>Security, DevOps, and data and analytics, and then line of business >>Line of business line, like web marketing >>Solutions, business apps, >>Business, this owner type thing. Exactly. >>Yeah, exactly. >>So solutions there. Yeah. More solutions and the other ones are like hardcore. So infrastructure as well, like storage, backup, ransomware of stuff, or, >>Uh, storage, networking. >>Okay. Yeah. The classic >>Database, et cetera. Right. >>And so there's teams on each pillar. >>Yep. So I think what's, what's fascinating for the startup that we cover is that they've got, they truly have support from a build market sell perspective. Right. So you've got someone who's technical to really help them get the technology, figured out someone to help them get the marketing message dialed and spread, and then someone to actually do the co-sell, uh, day to day activities to help them get in front of customers. >>Probably the number one request that we always ask for Amazon is can we waste that sock report? Oh, download it, the console, which we use all the time. Exactly. But security's a big deal. I mean, you know, SREs are evolving, that role of DevOps is taking on dev SecOps. Um, I, I could see a lot of customers having that need for a relationship to move things faster. Do you guys provide like escalation or is that a part of a service or not, not part of a, uh, >>Yeah, >>So the partner development manager can be an escalation point. Absolutely. Think of them as an extension of your business inside of AWS. >>Great. And you guys how's that partner managers, uh, measure >>On those three pillars. Right. Got it. Are we billing, building valuable use cases? So product development go to market, so go to market activities, think blog, posts, webinars, case studies, so on and so forth. And then co-sell not only are we helping these partners win their current opportunities that they are sourcing, but can we also help them source net new deals? Yeah. Right. That's >>Very important. I mean, top asked from the partners is get me in front of customers. Right. Um, not an easy task, but that's a huge goal of ours to help them grow their top >>Line. Right. Yeah. In fact, we had some interviews here on the cube earlier talking about that dynamic of how enterprise customers are buying. And it's interesting, a lot more POCs. I have one partner here that you guys work with, um, on observability, they got a huge POC with capital one mm-hmm <affirmative> and the enterprises are engaging the startups and bringing them in. So the combination of open source software enterprises are leaning into that hard and bringing young growing startups in mm-hmm <affirmative>. Yep. So I could see that as a huge service that you guys can bring people in. >>Right. And they're bringing massively differentiated technology to the table. Mm-hmm <affirmative> the challenge is they just might not have the brand recognition that the big guys have. And so that it's our job is how do you get that great tech in front of the right situations? >>Okay. So my next question is about the show here, and then we'll talk globally. So here in San Francisco sure. You know, Silicon valley bay area, San Francisco bay area, a lot of startups, a lot of VCs, a lot of action. Mm-hmm <affirmative> so probably a big market for you guys. Yeah. So what's exciting here in SF and then outside SF, you guys have a global program, you see any trends that are geography based or is it sure areas more mature? There's certain regions that are better. I mean, I just interviewed a company here that's doing, uh, AWS edge really well in these cases. It's interesting that these, the partners are filling a lot of holes and gaps in the opportunities with AWS. So what's exciting here. And then what's the global perspective. >>Yeah, totally. So obviously a ton of partners, I, from the bay area that we support. Um, but we're seeing a lot of really interesting technology coming out of AMEA specifically. Yeah. Uh, and making a lot of noise here in the United States, which is great. Um, and so, you know, we definitely have that global presence and, and starting to see super differentiated technology come out of those regions. >>Yeah. Especially Tel Aviv. Yeah. >>Amy real quick, before you get in the surge. It's interesting. The VC market in, in Europe is hot. Yeah. They've got a lot of unicorns coming in. We've seen a lot of companies coming in. They're kind of rattling their own, you know, cage right now. Hey, look at us. We'll see if they crash, you know, but we don't see that happening. I mean, people have been projecting a crash now in, in the startup ecosystem for at least a year. It's not crashing. In fact, funding's up. >>Yeah. The pandemic was hard on a lot of startups for sure. Yeah. Um, but what we've seen is many of these startups, they, as quickly as they can grow, they can also pivot as, as, as well. Um, and so I've actually seen many of our startups grow through the pandemic because their use cases are helping customers either save money, become more operationally efficient and provide value to leadership teams that need more visibility into their infrastructure during a pandemic. >>It's an interesting point. I talked to Andy jazzy and Adam Leski both say the same thing during the pandemic necessity, the mother of all invention. Yep. And startups can move fast. So with that, you guys are there to assist if I'm a startup and I gotta pivot cuz remember iterate and pivot, iterate and pivot. So you get your economics, that's the playbook of the ventures and the models. >>Exactly. How >>Do you guys help me do that? Give me an example of walk me through, pretend me I'm a startup. Hey, I am on the cloud. Oh my God. Pandemic. They need video conferencing. Hey cube. Yeah. What do I need? Surge? What, what do I do? >>That's a good question. First thing is just listen. Yeah. I think what we have to do is a really good job of listening to the partner. Um, what are their needs? What is their problem statement and where do they want to go at the end of the day? Um, and oftentimes because we've worked with so many successful startups, they have come out of our program. We have, um, either through intuition or a playbook, determined what is gonna be the best path forward and how do we get these partners to stop focusing on things that will eventually, um, just be a waste of time yeah. And, or not provide, or, you know, bring any fruit to the table, which, you know, essentially revenue. >>Well, we love star rights here in the cube because one, um, they have good stories. They're oil and cutting edge, always pushing the envelope and they're kind of disrupting someone else. Yeah. And so they have an opinion. They don't mind sharing on camera. So love talking to startups. We love working with you guys on our startup showcases startups.com. Check out AWS startups.com and you got the showcases, uh, final. We I'll give you guys the last word. What's the bottom line bumper sticker for AP the global APN program. Summarize the opportunity for startups, what you guys bring to the table and we'll close it out. Totally start >>With you. Yeah. I think the AWS global startup program's here to help companies truly accelerate their business full stop. Right. And that's what we're here for. I love it. >>It's a good way to, it's a good way to put it Dito. >>Yeah. All right, sir. Thanks for coming on. Thanks John. Great to see you love working with you guys. Hey, startups need help. And the growing and huge market opportunities, the shift cloud scale data engineering, security infrastructure, all the markets are exploding in growth because of the digital transformation of the realities here. Open source and cloud all making it happen here in the cube in San Francisco, California. I'm John furrier, your host. Thanks for watching >>John. >>Hello and welcome back to the cubes live coverage here in San Francisco, California for AWS summit, 2022. I'm John for host of the cube. Uh, two days of coverage, AWS summit, 2022 in New York city. Coming up this summer, we'll be there as well at events are back. The cube is back of course, with the cube virtual cube hybrid, the cube.net, check it out a lot of content this year, more than ever, a lot more cloud data cloud native, modern applic is all happening. Got a great guest here. Jeremy Burton, Cub alumni, uh, CEO of observe Inc in the middle of all the cloud scale, big data observability Jeremy. Great to see you. Thanks >>Always great to come and talk to you on the queue, man. It's been been a few years, so, >>Um, well you, you got your hands. You're in the trenches with great startup, uh, good funding, great board, great people involved in the observability hot area, but also you've been a senior executive president of Dell, uh, EMC, uh, 11 years ago you had a, a vision and you actually had an event called cloud meets big data. Um, yeah. And it's here. You predicted it 11 years ago. Um, look around it's cloud meets big data. >>Yeah. I mean the, the cloud thing I think, you know, was, was probably already a thing, but the big data thing I do claim credit for, for, for sort of catching that bus out, um, you know, we, we were on the, the, the bus early and, and I think it was only inevitable. Like, you know, if you could bring the economics and the compute of cloud to big data, you, you could find out things you could never possibly imagine. >>So you're close to a lot of companies that we've been covering deeply. Snowflake obviously are involved, uh, the board level, you know, the founders, you know, the people there cloud, you know, Amazon, you know, what's going on here? Yeah. You're doing a startup as the CEO at the helm, uh, chief of observ, Inc, which is an observability, which is to me in the center of this confluence of data engineering, large scale integrations, um, data as code integrating into applic. I mean, it's a whole nother world developing, like you see with snowflake, it means snowflake is super cloud as we call it. So a whole nother wave is here. What's your, what's this wave we're on what's how would you describe the wave? >>Well, a couple of things, I mean, people are, I think riding more software than, than ever fall. Why? Because they've realized that if, if you don't take your business online and offer a service, then you become largely irrelevant. And so you you've got a whole set of new applications. I think, I think more applications now than any point. Um, not, not just ever, but the mid nineties, I always looked at as the golden age of application development. Now back then people were building for windows. Well, well now they're building for things like AWS is now the platform. Um, so you've got all of that going on. And then at the same time, the, the side effect of these applications is they generate data and lots of data and the, you know, the sort of the transactions, you know, what you bought today or something like that. But then there's what we do, which is all the telemetry data, all the exhaust fumes. And I think people really are realizing that their differentiation is not so much their application. It's their understanding of the data. Can, can I understand who my best customers are, what I sell today. If people came to my website and didn't buy, then I not, where did they drop off all of that they wanna analyze. And, and the answers are all in the data. The question is, can you understand it >>In our last startup showcase, we featured data as code. One of the insights that we got out of that I wanna get your opinion on our reaction to is, is that data used to be put into a data lake and turns into a data swamp or throw into the data warehouse. And then we'll do some query, maybe a report once in a while. And so data, once it was done, unless it was real time, even real time was not good anymore after real time. That was the old way. Now you're seeing more and more, uh, effort to say, let's go look at the data cuz now machine learning is getting better. Not just train once mm-hmm <affirmative> they're iterating. Yeah. This notion of iterating and then pivoting, iterating and pivoting. Yeah, that's a Silicon valley story. That's like how startups work, but now you're seeing data being treated the same way. So now you have another, this data concept that's now yeah. Part of a new way to create more value for the apps. So this whole, this whole new cycle of >>Yeah. >>Data being reused and repurposed and figured out and >>Yeah, yeah. I'm a big fan of, um, years ago. Uh, uh, just an amazing guy, Andy McAfee at the MIT C cell labs I spent time with and he, he had this line, which still sticks to me this day, which is look I'm I'm. He said I'm part of a body, which believes that everything is a matter of data. Like if you, of enough data, you can answer any question. And, and this is going back 10 years when he was saying these kind of things and, and certainly, you know, research is on the forefront. But I, I think, you know, starting to see that mindset of the, the sort of MIT research be mainstream, you know, in enterprises, they they're realizing that yeah, it is about the data. You know, if I can better understand my data better than my competitor than I've got an advantage. And so the question is is, is how, what, what technologies and what skills do I need in my organization to, to allow me to do that. So >>Let's talk about observing you the CEO of, okay. Given you've seen the wave before you're in the front lines of observability, which again is in the center of all this action what's going on with the company. Give a quick minute to explain, observe for the folks who don't know what you guys do. What's the company doing? What's the funding status, what's the product status and what's the customer status. Yeah. >>So, um, we realized, you know, a handful of years ago, let's say five years ago that, um, look, the way people are building applications is different. They they're way more functional. They change every day. Uh, but in some respects they're a lot more complicated. They're distributed. They, you know, microservices architectures and when something goes wrong, um, the old way of troubleshooting and solving problems was not gonna fly because you had SA so much change going into production on a daily basis. It was hard to tell like where the problem was. And so we thought, okay, it's about time. Somebody looks at the exhaust fumes from this application and all the telemetry data and helps people troubleshoot and make sense of the problems that they're seeing. So, I mean, that's observability, it's actually a term that goes back to the 1960s. It was a guy called, uh, Rudolph like, like everything in tech, you know, it's, it's a reinvention of, of something from years gone by. >>But, um, there's a guy called, um, Rudy Coleman in 1960s, kinder term. And, and, and the term was been able to determine the state of a system by looking at its external outputs. And so we've been going on this for, uh, the best part of the all years now. Um, it took us three years just to build the product. I think, I think what people don't appreciate these days often is the barrier to entry in a lot of these markets is quite high. You, you need a lot of functionality to have something that's credible with a customer. Um, so yeah, this last year we, we, we did our first year selling, uh, we've got about 40 customers now. <affirmative> um, we just we've got great investors for the hill ventures. Uh, I mean, Mike SP who was, you know, the, the guy who was the, really, the first guy in it snowflake and the, the initial investor were fortunate enough to, to have Mike on our board. And, um, you know, part of the observed story yeah. Is closely knit with snowflake because all of that time data know we, we still are in there. >>So I want to get, uh, >>Yeah. >>Pivot to that. Mike Pfizer, snowflake, Jeremy Burton, the cube kind of, kind of same thinking this idea of a super cloud or what snowflake became snowflake is massively successful on top of AWS. Mm-hmm <affirmative> and now you're seeing startups and companies build on top of snowflake. Yeah. So that's become an entrepreneurial story that we think that to go big in the cloud, you can have a cloud on a cloud, uh, like as Jerry, Jerry Chan and Greylock calls it castles in the cloud where there are moats in the cloud. So you're close to it. I know you're doing some stuff with snowflake. So a startup, what's your view on building on top of say a snowflake or an AWS, because again, you gotta go where the data is. You need all the data. >>Yeah. So >>What's your take on that? >>I mean, having enough gray hair now, um, you know, again, in tech, I think if you wanna predict the future, look at the past. And, uh, you know, to many years ago, 25 years ago, I was at a, a smaller company called Oracle and an Oracle was the database company. And, uh, their, their ambition was to manage all of the world's transactional data. And they built on a platform or a couple of platforms, one, one windows, and the other main one was Solaris. And so at that time, the operator and system was the platform. And, and then that was the, you know, ecosystem that you would compete on top of. And then there were companies like SAP that built applications on top of Oracle. So then wind the clock forward 25 years gray hairs. <laugh> the platform, isn't the operating system anymore. The platform is AWS, you know, Google cloud. I gotta probably look around if I say that in. Yeah. It's >>Okay. But hyperscale, yeah. CapX built out >>That is the new platform. And then snowflake comes along. Well, their aspiration is to manage all of the, not just human generator data, but machine generated data in the world of cloud. And I think they they've done an amazing job doing for the, I'd say, say the, the big data world, what Oracle did for the relational data world, you know, way back 25 years ago. And then there are folks like us come along and, and of course my ambition would be, look, if, if we can be as successful as an SAP building on top of snow snowflake, uh, as, as they were on top of Oracle, then, then we'd probably be quite happy. >>So you're building on top of snowflake. >>We're building on top of snowflake a hundred percent. And, um, you know, I've had folks say to me, well, aren't you worried about that? Isn't that a risk? It's like, well, that that's a risk. You >>Still on the board. >>Yeah. I'm still on the board. Yeah. That that's a risk I'm prepared to take <laugh> I am long on snowflake you, >>Well, you're in a good spot. Stay on the board, then you'll know what's going on. Okay. No know just doing, but the, this is a real dynamic. It is. It's not a one off it's. >>Well, and I do believe as well that the platform that you see now with AWS, if you look at the revenues of AWS is an order of magnitude more than Microsoft was 25 years ago with windows mm-hmm <affirmative>. And so I believe the opportunity for folks like snowflake and folks like observe it's an order of magnitude more than it was for the Oracle and the SAPs of the old >>World. Yeah. And I think this is really, I think this is something that this next generation of entrepreneurship is the go big scenario is you gotta be on a platform. Yeah. >>It's quite >>Easy or be the platform, but it's hard. There's only like how many seats are at that table left. >>Well, value migrates up over time. So, you know, when the cloud thing got going, there were probably 10, 20, 30, you know, Rackspace and there's 1,000,001 infrastructure, a service platform as a service, my, my old, uh, um, employee EMC, we had pivotal, you know, pivotal was a platform as a service. You don't hear so much about it, these, but initially there's a lot of players and then it consolidates. And then to, to like extract, uh, a real business, you gotta move up, you gotta add value, you gotta build databases, then you gotta build applications. So >>It's interesting. Moving from the data center of the cloud was a dream for starters. Cause then if the provision, the CapEx, now the CapEx is in the cloud. Then you build on top of that, you got snowflake you on top of that, the >>Assumption is almost that compute and storage is free. I know it's not quite free. Yeah. It's >>Almost free, >>But, but you can, you know, as an application vendor, you think, well, what can I do if I assume compute and storage is free, that's the mindset you've gotta get into. >>And I think the platform enablement to value. So if I'm an entrepreneur, I'm gonna get a serious, multiple of value in what I'm paying. Yeah. Most people don't even blanket their Avis pills unless they're like massively huge. Yeah. Then it's a repatriation question or whatever discount question, but for most startups or any growing company, the Amazon bill should be a small factor. >>Yeah. I mean, a lot of people, um, ask me like, look, you're building on snowflake. Um, you, you know, you are, you are, you're gonna be, you're gonna be paying their money. How, how, how, how does that work with your business model? If you're paying them money, you know, do, do you have a viable business? And it's like, well, okay. I, we could build a database as well in observe, but then I've got half the development team working on in that will never be as good as snowflake. And so we made the call early on that. No, no, we, we wanna innovate above the database. Yeah. Right. Snowflake are doing a great job of innovating on the database and, and the same is true of something like Amazon, like, like snowflake could have built their own cloud and their own platform, but they didn't. >>Yeah. And what's interesting is that Dave <inaudible> and I have been pointing this out and he's actually more on snowflake. I I've been looking at data bricks, um, and the same dynamics happening, the proof is the ecosystem. Yeah. I mean, if you look at Snowflake's ecosystem right now and data bricks it's exploding. Right. I mean, the shows are selling out the floor. Space's book. That's the old days at VMware. Yeah. The old days at AWS >>One and for snowflake and, and any platform provider, it's a beautiful thing. You know, we build on snowflake and we pay them money. They don't have to sell to us. Right. And we do a lot of the support. And so the, the economics work out really, really well. If you're a platform provider and you've got a lot of ecosystems. >>Yeah. And then also you get, you get a, um, a trajectory of, uh, economies of scale with the institutional knowledge of snowflake integrations, right. New products. You're scaling that function with the, >>Yeah. I mean, we manage 10 petabytes of data right now. Right. When I, when I, when I arrived at EMC in 2010, we had, we had one petabyte customer. And, and so at observe, we've been only selling the product for a year. We have 10 petabytes of data under management. And so been able to rely on a platform that can manage that is invaluable, >>You know, but Jeremy Greek conversation, thanks for sharing your insights on the industry. Uh, we got a couple minutes left. Um, put a plug in for observe. What do you guys, I know you got some good funding, great partners. I don't know if you can talk about your, your, your POC customers, but you got a lot of high ends folks that are working with you. You getting traction. Yeah. >>Yeah. >>Scales around the corner. Sounds like, are you, is that where you are scale? >>Got, we've got a big announcement coming up in two or weeks. We've got, we've got new funding, um, which is always great. Um, the product is, uh, really, really close. I think, as a startup, you always strive for market fit, you know, which is at which point can you just start hiring salespeople? And the revenue keeps going. We're getting pretty close to that right now. Um, we've got about 40 SaaS companies run on the platform. They're almost all AWS Kubernetes, uh, which is our sweet spot to begin with, but we're starting to get some really interesting, um, enterprise type customers. We're, we're, you know, F five networks we're POC in right now with capital one, we got some interest in news around capital one coming up. I, I can't share too much, uh, but it's gonna be exciting. And, and like I saids hill continued to, to, to stick, >>I think capital one's a big snowflake customer as well. Right. They, >>They were early in one of the things that attracted me to capital one was they were very, very good with snowflake early on. And, and they put snowflake in a position in the bank where they thought that snowflake could be successful. Yeah. And, and today that, that is one of Snowflake's biggest accounts. >>So capital one, very innovative cloud, obviously AIOS customer and very innovative, certainly in the CISO and CIO, um, on another point on where you're at. So you're, Prescale meaning you're about to scale, right? So you got POCs, what's that trick GE look like, can you see around the corner? What's, what's going on? What's on, around the corner. That you're, that you're gonna hit the straight and narrow and, and gas it >>Fast. Yeah. I mean, the, the, the, the key thing for us is we gotta get the product. Right. Um, the nice thing about having a guy like Mike Pfizer on the board is he doesn't obsess about revenue at this stage is questions that the board are always about, like, is the product, right? Is the product right? Is the product right? If you got the product right. And cuz we know when the product's right, we can then scale the sales team and, and the revenue will take care of itself. Yeah. So right now all the attention is on the product. Um, the, this year, the exciting thing is we were, we're adding all the tracing visualizations. So people will be able to the kind of things that back in the day you could do with the new lakes and, and AppDynamics, the last generation of, of APM tools, you're gonna be able to do that within observe. And we've already got the logs and the metrics capability in there. So for us, this year's a big one, cuz we sort of complete the trifecta, you know, the, the logs, >>What's the secret sauce observe. What if you had the, put it into a, a sentence what's the secret sauce? I, >>I, I think, you know, an amazing founding engineering team, uh, number one, I mean, at the end of the day, you have to build an amazing product and you have to solve a problem in a different way. And we've got great long term investors. And, and the biggest thing our investors give is actually it's not just money. It gives us time to get the product, right. Because if we get the product right, then we can get the growth. >>Got it. Final question. Why I got you here? You've been on the enterprise business for a long time. What's the buyer landscape out there. You got people doing POCs on capital one scale. So we know that goes on. What's the appetite at the buyer side for startups and what are their requirements that you're seeing? Uh, obviously we're seeing people go in and dip into the startup pool because new ways to refactor their business restructure. So a lot happening in cloud. What's the criteria. How are enterprises engaging in with startups? >>Yeah. I mean, enterprises, they know they've gotta spend money transforming the business. I mean, this was, I almost feel like my old Dell or EMC self there, but, um, what, what we were saying five years ago is happening. Um, everybody needs to figure out out a way to take their, this to this digital world. Everybody has to do it. So the nice thing from a startup standpoint is they know at times they need to risk or, or take a bet on new technology in order to, to help them do that. So I think you've got buyers that a have money, uh, B prepared to take risks and it's, it's a race against time to, you know, get their, their offerings in this. So a new digital footprint, >>Final, final question. What's the state of AWS. Where do you see them going next? Obviously they're continuing to be successful. How does cloud 3.0, or they always say it's day one, but it's more like day 10. Uh, but what's next for Aw. Where do they go from here? Obviously they're doing well. They're getting bigger and bigger. >>Yeah. They're, they're, it's an amazing story. I mean, you know, we we're, we're on AWS as well. And so I, I think if they keep nurturing the builders in the ecosystem, then that is their superpower. They, they have an early leads. And if you look at where, you know, maybe the likes of Microsoft lost the plot in the, in the late it was, they stopped, uh, really caring about developers and the folks who were building on top of their ecosystem. In fact, they started buying up their ecosystem and competing with people in their ecosystem. And I see with AWS, they, they have an amazing head start and if they did more, you know, if they do more than that, that's, what's gonna keep the jut rolling for many years to come. Yeah, >>They got the silicone and they got the staff act, developing Jeremy Burton inside the cube, great resource for commentary, but also founding with the CEO of a company called observing in the middle of all the action on the board of snowflake as well. Um, great start. Thanks for coming on the cube. >>Always a pleasure. >>Okay. Live from San Francisco to cube. I'm John for your host. Stay with us more coverage from San Francisco, California after the short break. >>Hello. Welcome back to the cubes coverage here live in San Francisco, California. I'm John furrier, host of the cubes cube coverage of AWS summit 2022 here in San Francisco. We're all the developers of the bay area at Silicon valley. And of course, AWS summit in New York city is coming up in the summer. We'll be there as well. SF and NYC cube coverage. Look for us. Of course, reinforcing Boston and re Mars with the whole robotics AI thing, all coming together. Lots of coverage stay with us today. We've got a great guest from Deibel VC. John Skoda, founding partner, entrepreneurial venture is a venture firm. Your next act, welcome to the cube. Good to see you. >>Good to see you, Matt. I feel like it's been forever since we've been able to do something in person. Well, >>I'm glad you're here because we run into each other all the time. We've known each other for over a decade. Um, >><affirmative>, it's been at least 10 years now, >>At least 10 years more. And we don't wanna actually go back as frees back, uh, the old school web 1.0 days. But anyway, we're in web three now. So we'll get to that in >>Second. We, we are, it's a little bit of a throwback to the path though, in my opinion, >><laugh>, it's all the same. It's all distributed computing and software. We ran each other in cube con you're investing in a lot of tech startup founders. Okay. This next level, next gen entrepreneurs have a new makeup and it's software. It's hardcore tech in some cases, not hardcore tech, but using software is take old something old and make it better, new, faster. <laugh>. So tell us about Deibel what's the firm. I know you're the founder, uh, which is cool. What's going on. Explain >>What you're doing. I mean, you remember I'm a recovering entrepreneur, right? So of course I, I, I, >>No, you're never recovering. You're always entrepreneur >>Always, but we are also always recovering. So I, um, started my first company when I was 24. If you remember, before there was Facebook and friends, there was instant messaging. People were using that product at work every day, they were creating a security vulnerability between their network and the outside world. So I plugged that hole and built an instant messaging firewall. It was my first company. The company was called, I am logic and we were required by Symantec. Uh, then spent 12 years investing in the next generation of our companies, uh, early investor in open source companies and cloud companies and spent a really wonderful 12 years, uh, at a firm called NEA. So I, I feel like my whole life I've been either starting enterprise software companies or helping founders start enterprise software companies. And I'll tell you, there's never been a better time than right now to start enter price software company. >>So, uh, the passion for starting a new firm was really a recognition that founders today that are starting in an enterprise software company, they, they tend to be, as you said, a more technical founder, right? Usually it's a software engineer or a builder mm-hmm <affirmative>, uh, they are building products that are serving a slightly different market than what we've traditionally seen in enterprise software. Right? I think traditionally we've seen it buyers or CIOs that have agendas and strategies, which, you know, purchased software that has traditionally bought and sold tops down. But, you know, today I think the most successful enterprise software companies are the ones that are built more bottoms up and have more technical early opts. And generally speaking, they're free to use. They're free to try. They're very commonly community source or open source companies where you have a large technical community that's supporting them. So there's a, there's kind of a new normal now I think in great enterprise software. And it starts with great technical founders with great products and great and emotions. And I think there's no better place to, uh, service those people than in the cloud and uh, in, in your community. >>Well, first of all, congratulations, and by the way, you got a great pedigree and great background, super smart admire of your work and your, and, and your founding, but let's face it. Enterprise is hot because digital transformation is all companies. The is no, I mean, consumer is enterprise. Now everything is what was once a niche. No, I won't say niche category, but you know, not for the faint of heart, you know, investors, >>You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. But remember, like right now, there's also a giant tech in VC conference in Miami <laugh> it's covering cryptocurrencies and FCS and web three. So I think beauty is definitely in the eye of the beholder <laugh> but no, I, I will tell you, >>Ts is one big enterprise, cuz you gotta have imutability you got performance issues. You have, I IOPS issues. Well, and, >>And I think all of us here that are, uh, maybe students of history and have been involved in, open in the cloud would say that we're, you know, much of what we're doing is, uh, the predecessors of the web web three movement. And many of us I think are contributors to the web three movement. >>The hype is definitely that three. >>Yeah. But, but >>You know, for >>Sure. Yeah, no, but now you're taking us further east to Miami. So, uh, you know, look, I think, I, I think, um, what is unquestioned with the case now? And maybe it's, it's more obvious the more time you spend in this world is this is the fastest growing part of enterprise software. And if you include cloud infrastructure and cloud infrastructure spend, you know, it is by many men over, uh, 500 billion in growing, you know, 20 to 30% a year. So it it's a, it's a just incredibly fast, >>Let's getting, let's get into some of the cultural and the, the shifts that are happening, cuz again, you, you have the luxury of being in enterprise when it was hard, it's getting easier and more cooler. I get it and more relevant, but it's also the hype of like the web three, for instance. But you know, uh, um, um, the CEO snowflake, okay. Has wrote a book and Dave Valenti and I were talking about it and uh, Frank Luman has says, there's no playbooks. We always ask the CEOs, what's your playbook. And he's like, there's no playbook, situational awareness, always Trump's playbooks. So in the enterprise playbook, oh, higher direct sales force and SAS kind of crushed the, at now SAS is being redefined, right. So what is SAS? Is snowflake a SAS or is that a platform? So again, new unit economics are emerging, whole new situation, you got web three. So to me there's a cultural shift, the young entrepreneurs, the, uh, user experience, they look at Facebook and say, ah, you know, they own all my data. You know, we know that that cliche, um, they, you know, the product. So as this next gen, the gen Z and the millennials come in and our customers and the founders, they're looking at things a little bit differently and the tech better. >>Yeah. I mean, I mean, I think we can, we can see a lot of commonalities across all successful startups and the overall adoption of technology. Uh, and, and I would tell you, this is all one big giant revolution. I call it the user driven revolution. Right. It's the rise of the user. Yeah. And you might say product like growth is currently the hottest trend in enterprise software. It's actually user like growth, right. They're one in the same. So sometimes people think the product, uh, is what is driving. You >>Just pull the >>Product through. Exactly, exactly. And so that's that I, that I think is really this revolution that you see, and, and it does extend into things like cryptocurrencies and web three and, you know, sort of like the control that is taken back by the user. Um, but you know, many would say that, that the origins of this movement maybe started with open source where users were, are contributors, you know, contributors, we're users and looking back decades and seeing how it, how it fast forward to today. I think that's really the trend that we're all writing and it's enabling these end users. And these end users in our world are developers, data engineers, cybersecurity practitioners, right. They're really the users. And they're really the, the beneficiaries and the most, you know, kind of valued people in >>This. I wanna come back to the data engineers in a second, but I wanna make a comment and get your reaction to, I have a, I'm a GenXer technically, so for not a boomer, but I have some boomer friends who are a little bit older than me who have, you know, experienced the sixties. And I've, I've been staying on the cube for probably about eight years now that we are gonna hit a digital hippie revolution, meaning a rebellion against in the sixties was rebellion against the fifties and the man and, you know, summer of love. That was a cultural differentiation from the other one other group, the predecessors. So we're kind of having that digital moment now where it's like, Hey boomers, Hey people, we're not gonna do that anymore. We hate how you organize shit. >>Right. But isn't this just technology. I mean, isn't it, isn't it like there used to be the old adage, like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would get fired if you bought IBM. And I mean, it's just like the, the, I think, I think >>It's the main for days, those renegades were breaking into Stanford, starting the home brew club. So what I'm trying to get at is that, do you see the young cultural revolution also, culturally, just, this is my identity NFTs to me speak volumes about my, I wanna associate with NFTs, not single sign on. Well, >>Absolutely. And, and I think like, I think you're hitting on something, which is like this convergence of, of, you know, societal trends with technology trends and how that manifests in our world is yes. I think like there is unquestionably almost a religion around the way in which a product is built. Right. And we can use open source, one example of that religion. Some people will say, look, I'll just never try a product in the cloud if it's not open source. Yeah. I think cloud, native's another example of that, right? It's either it's, you know, it either is cloud native or it's not. And I think a lot of people will look at a product and say, look, you know, you were not designed in the cloud era. Therefore I just won't try you. And sometimes, um, like it or not, it's a religious decision, right? It's, it's something that people just believe to be true almost without, uh, necessarily. I mean >>The decision making, let me ask you this next question. As a VC. Now you look at pitch, well, you've made a VC for many years, but you also have the founder, uh, entrepreneurial mindset, but you can get empathize with the founders. You know, hustle is a big part of the, that first founder check, right? You gotta convince someone to part with their ch their money and the first money in which you do a lot of is about believing in the person. So fing, so you make, it is hard. Now you, the data's there, you either have it cloud native, you either have the adaption or traction. So honesty is a big part of that pitch. You can't fake it. Oh, >>AB absolutely. You know, there used to be this concept of like the persona of an entrepreneur, right. And the persona of the entrepreneur would be, you know, somebody who was a great salesperson or somebody who tell a great story. You, I still think that that's important, right? It still is a human need for people to believe in narratives and stories. But having said that you're right, the proof is in the pudding, right? At some point you click download and you try the product and it does what it says it it's gonna do, or it doesn't, or it either stands up to the load test or it doesn't. And so I, I feel like in this new economy that we live in, it's a shift from maybe the storytellers and the creators to, to the builders, right. The people that know how to build great product. And in some ways the people that can build great product yeah. Stand out from the crowd. And they're the ones that can build communities around their products. And, you know, in some ways can, um, you know, kind of own more of the narrative because their products exactly >>The volume back to the user led growth. >>Exactly. And it's the religion of, I just love your product. Right. And I, I, I, um, Doug song was the founder of du security used to say, Hey, like, you know, the, the really like in today's world of like consumption based software, the user is only gonna give you 90 seconds to figure out whether or not you're a company that's easy to do business with. Right. And so you can say, and do all the things that you want about how easy you are to work with. But if the product isn't easy to install, if it's not easy to try, if it's not, if, if the, you know, it's gotta speak to >>The, speak to the user, but let me ask a question now that the people watching who are maybe entrepreneurial entrepreneur, um, masterclass here is in session. So I have to ask you, do you prefer, um, an entrepreneur to come in and say, look at John. Here's where I'm at. Okay. First of all, storytelling's fine. Whether you're an extrovert or introvert, have your style, sell the story in a way that's authentic, but do you, what do you prefer to say? Here's where I'm at? Look, I have an idea. Here's my traction. I think here's my MVP prototype. I need help. Or do you wanna just see more stats? What's the, what's the preferred way that you like to see entrepreneurs come in and engage, engage? >>There's tons of different styles, man. I think the single most important thing that every founder should know is that we, we don't invest in what things are today. We invest in what we think something will become. Right. And I think that's why we all get up in the morning and try to build something different, right? It's that we see the world a different way. We want it to be a different way, and we wanna work every single moment of the day to try to make that vision a reality. So I think the more that you can show people where you want to be, the more likely somebody is gonna align with your vision and, and want to invest in you and wanna be along for the ride. So I, I wholeheartedly believe in showing off what you got today, because eventually we all get down to like, where are we and what are we gonna do together? But, um, no, I >>Show >>The path. I think the single most important thing for any founder and VC relationship is that they have the same vision, uh, have the same vision. You can, you can get through bumps in the road, you can get through short term spills. You can all sorts of things in the middle of the journey can happen. Yeah. But it doesn't matter as much if you share the same long term vision, >>Don't flake out and, and be fashionable with the latest trends because it's over before you can get there. >>Exactly. I think many people that, that do what we do for a living will say, you know, ultimately the future is relatively easy to predict, but it's the timing that's impossible to predict. So you, you know, you sort of have to balance the, you know, we, we know that the world is going this way and therefore we're gonna invest a lot of money to try to make this a reality. Uh, but sometimes it happens in six months. Sometimes it takes six years is sometimes like 16 years. >>Uh, what's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at right now with Desel partners, Tebel dot your site. What's the big wave. What's your big >>Wave. There, there's three big trends that we invest in. And they're the, they're the only things we do day in, day out. One is the explosion and open source software. So I think many people think that all software is unquestionably moving to an open source model in some form or another yeah. Tons of reasons to debate whether or not that is gonna happen and on what timeline happening >>Forever. >>But it is, it is accelerating faster than we've ever seen. So I, I think it's, it's one big, massive wave that we continue to ride. Um, second is the rise of data engineering. Uh, I think data engineering is in and of itself now, a category of software. It's not just that we store data. It's now we move data and we develop applications on data. And, uh, I think data is in and of itself as big of a, a market as any of the other markets that we invest in. Uh, and finally, it's the gift that keeps on giving. I've spent my entire career in it. We still feel that security is a market that is under invested. It is, it continues to be the place where people need to continue to invest and spend more money. Yeah. Uh, and those are the three major trends that we run >>And security, you think we all need a dessert do over, right? I mean, do we need a do over in security or is what's the core problem? I, >>I, I keep using this word underinvested because I think it's the right way to think about the problem. I think if you, I think people generally speaking, look at cyber security as an add-on. Yeah. But if you think about it, the whole economy is moving online. And so in, in some ways like security is core to protecting the digital economy. And so it's, it shouldn't be an afterthought, right? It should be core to what everyone is doing. And that's why I think relative to the trillions of dollars that are at stake, uh, I believe the market size for cybersecurity is around 150 billion. And it still is a fraction of what we're, what >>We're and security even boom is booming now. So you get the convergence of national security, geopolitics, internet digital >>That's right. You mean arguably, right? I mean, arguably again, it's the area of the world that people should be spending more time and more money given what to stake. >>I love your thesis. I gotta, I gotta say, you gotta love your firm. Love. You're doing we're big supporters of your mission. Congratulations on your entrepreneurial venture. And, uh, we'll be, we'll be talking and maybe see a Cub gone. Uh, >>Absolutely. >>Certainly EU maybe even north America's in Detroit this year. >>Huge fan of what you guys are doing here. Thank you so much for having me on >>The show. Guess bell VC Johnson here on the cube. Check him out. Founder for founders here on the cube, more coverage from San Francisco, California. After the short break, stay with us. Everyone. Welcome to the queue here. Live in San Francisco, California for AWS summit, 2022 we're live we're back with the events. Also we're virtual. We got hybrid all kinds of events. This year, of course, 80% summit in New York city is happening this summer. We'll be there with the cube as well. I'm John. Again, John host of the cube got a great guest here. Justin Coby owner and CEO of innovative solutions. Their booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, uh, off camera about some of the work you're doing. You're the owner of and CEO. Yeah. Of innovative. Yeah. So tell us a story. What do you guys do? What's the elevator pitch. >>Yeah. <laugh> so the elevator pitch is we are, uh, a hundred percent focused on small to midsize businesses that are moving into the cloud or have already moved to the cloud and really trying to understand how to best control, cost, security, compliance, all the good stuff, uh, that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is, but now we have offices down in Austin, Texas up in Toronto, uh, key Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago and it's been a great ride. It >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by AWS. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demands coming from cloud migrations and application modernization and obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? >>Yeah. It's a great question. Every CEO I talk to, that's a small to midsize business. They're trying to understand how to leverage technology. It better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech ISNT really at the, at the forefront and the center of that. So most customers are coming to us and they're like, listen, we gotta move to the cloud or we move some things to cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then, uh, progressively working through a modernization strateg, always the better approach. And so we spend a lot of time with small to midsize businesses who don't have the technology talent on staff to be able to do >>That. Yeah. They want get set up. But then the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off happening around everywhere. It is. And it's not, it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more IOT devices. What's that like right now from a challenge and problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem you guys solve >>In the SMB space? The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and are hardened solutions. And so, um, what we try to do with technology staff that has traditional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I talk to, yeah, they're like, listen, the end of the day, I'm gonna be spending money in one place or another, whether that's OnPrem or in the cloud. I just want to know that I'm doing that in a way that helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is, is no. No. >>Good. How about factoring in the, the agility and speed equation? Does that come up a lot? It >>Does. I think, um, I, there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time. Yeah. In the cloud, if you start down your journey in one way and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's gives you a much higher density for making decisions and failing >>Forward. Well actually shutting down the abandoning the projects that early and not worrying about it, you got it. I mean, most people don't abandon cause like, oh, I own it. >>Exactly. And >>They get, they get used to it. Like, and then they wait too long. >>That's exactly. Yeah. >>Frog and boiling water as we used to say. So, oh, it's a great analogy. So I mean, this is a dynamic that's interesting. I wanna get more thoughts on it because like I'm a, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you, I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talked to at reinvent, that's a customer. Well, how many announcements did am jazzy announce or Adam, you know, the 5,000 announcement or whatever. They do huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just processes. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are, >>What's the values. >>Our mission is, is very simple. We want to help every small to midsize business leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we go to market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a tech company in the process of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your, or it department to make all those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our managed services. Meaning they know that we have their back Andre or the safety net. So when a customer is saying, all right, I'm gonna spend a couple thousand dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going in alone. Who's there to help protect that. Number two, if you have a security posture and let's just say you're high profile and you're gonna potentially be more vulnerable to security attack. If you have a partner, that's all offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products, uh, that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own. It, it would cost 'em a fortune. If >>Training alone would be insane, a factor and the cost. Yes, absolutely. Opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. Yeah. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 2018, when, uh, when we made the decision to go all in on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious decision. It wasn't requirement and still isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front desk >>And she could be running the Kubernetes clusters. I love it. It's amazing. >>But I'll tell you what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get >>The right people involved. And that's a cultural factor that you guys have. So, so again, this is back to my whole point about SMBs and businesses in general, small en large, it staffs are turning over the gen Z and millennials are in the workforce. They were provisioning top of rack switches. Right. First of all. And so if you're a business, there's also the, I call the build out, um, uh, return factor, ROI piece. At what point in time as an owner or SMB, do I get the ROI? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cybersecurity issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one and the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are >>Critical issues. This >>Is just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about. So that's, >>That's what, at least a million in bloating, if not three or more Just to get that going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side though. Yeah. No. And nevermind AI and ML. That's >>Right. That's right. So to try to go it alone, to me, it's hard. It it's incredibly difficult. And, and the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll >>Do all that >>Exactly. In it department. >>Exactly. >>Like, can we just call up, uh, you know, <laugh> our old vendor. That's >>Right. <laugh> right. Our old vendor. I like it, but that's so true. I mean, when I think about how, if I was a business owner, starting a business to today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around that is, is very important. And it's something that we talk about every, with every one of our small to midsize business. >>So just, I want to get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative award winning guys doing great. Uh, great bet on a good call. Yeah. Things are good. Tell your story. What's your journey? >>It's real simple. I was, uh, was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportunity with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduce other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. And I came in, I did an internship for six months and I loved it. I learned more in those six months that I probably did in my first couple of years at, uh, at R I T long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, sales process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2010 and I was like, Hey, I'm growing the value of this business. And who knows where you guys are gonna be another five years? What do you think about making me an owner? And they were like, listen, you got long ways before you're gonna be an owner, but if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that we're gonna also buy the business with >>Me. And they were the owners, no outside capital, >>None zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons. They all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like if we're owners, we're gonna have to like cover that stuff. <laugh> so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015, and, uh, we made the decision that I was gonna buy the three partners out, um, go through an earn out process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the business, cuz they care very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be? We had built this company to this point. Yeah. And, uh, and by 2018 we knew that pivoting all going all in on the cloud was important for us and we haven't looked back. >>And at that time, the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly the, uh, and those kinds of big enterprises. The game don't, won't say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to midsize business, to migrate completely to the cloud as, as infrastructure was considered. That just didn't happen as often. Um, what we were seeing were a lot of our small to midsize business customers, they wanted to leverage cloud based backup, or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration. The, the Microsoft suite to the cloud and a lot of 'em dipped their toe in the water. But by 2017 we knew infrastructure was around the corner. Yeah. And so, uh, we only had two customers on eight at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is the app modernization? Is it data? What's the hot product and then put a plug in for the company. Awesome. >>So, uh, there's no question. Every customer is looking to migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. So any SMB that's thinking about migrating to the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customers not to be cash strapped and gives them an opportunity to move forward in a controlled, contained way so that they can modernize. >>So like insurance, basically for them not insurance class in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers, empathetic to where they are in their journey. And >>That's the cloud upside is all about doubling down on the variable wind. That's right. Seeing the value and doubling down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate it. Thank >>You very much for having >>Me. Okay. This is the cube coverage here live in San Francisco, California for AWS summit, 2022. I'm John for your host. Thanks for watching with back with more great coverage for two days after this short break >>Live on the floor in San Francisco for 80 west summit, I'm John ferry, host of the cube here for the next two days, getting all the action we're back in person. We're at AWS reinvent a few months ago. Now we're back events are coming back and we're happy to be here with the cube, bringing all the action. Also virtual, we have a hybrid cube, check out the cube.net, Silicon angle.com for all the coverage. After the event. We've got a great guest ticketing off here. Matthew Park, director of solutions, architecture with innovation solutions. The booth is right here. Matthew, welcome to the cube. >>Thank you very much. I'm glad >>To be here. So we're back in person. You're from Tennessee. We were chatting before you came on camera. Um, it's great to have to be back through events. >>It's amazing. This is the first, uh, summit I've been to and what two, three years. >>It's awesome. We'll be at the, uh, New York as well. A lot of developers and a big story this year is as developers look at cloud going distributed computing, you got on premises, you got public cloud, you got the edge. Essentially the cloud operations is running everything dev sec ops, everyone kind of sees that you got containers, you got Kubernetes, you got cloud native. So the, the game is pretty much laid out. Mm. And the edge is with the actions you guys are number one, premier partner at SMB for edge. >>That's right. >>Tell us about what you guys doing at innovative and, uh, what you do. >>That's right. Uh, so I'm the director of solutions architecture. Uh, me and my team are responsible for building out the solutions that are around, especially the edge public cloud out for us edge is anything outside of an AWS availability zone. Uh, we are deploying that in countries that don't have AWS infrastructure in region. They don't have it. Uh, give >>An example, >>Uh, example would be Panama. We have a customer there that, uh, needs to deploy some financial tech data and compute is legally required to be in Panama, but they love AWS and they want to deploy AWS services in region. Uh, so they've taken E EKS anywhere. We've put storage gateway and, uh, snowball, uh, in region inside the country and they're running their FinTech on top of AWS services inside Panama. >>You know, what's interesting, Matthew is that we've been covering Aw since 2013 with the cube about their events. And we watched the progression and jazzy was, uh, was in charge and then became the CEO. Now Adam Slosky is in charge, but the edge has always been that thing they've been trying to, I don't wanna say, trying to avoid, of course, Amazon would listen to customers. They work backwards from the customers. We all know that. Uh, but the real issue was they were they're bread and butters EC two and S three. And then now they got tons of services and the cloud is obviously successful and seeing that, but the edge brings up a whole nother level. >>It does >>Computing. It >>Does. >>That's not central lies in the public cloud. Now they got regions. So what is the issue with the edge what's driving? The behavior. Outpost came out as a reaction to competitive threats and also customer momentum around OT, uh, operational technologies. And it merging. We see with the data at the edge, you got five GM having. So it's pretty obvious, but there was a slow transition. What was the driver for the <affirmative> what's the driver now for edge action for AWS >>Data is the driver for the edge. Data has gravity, right? And it's pulling compute back to where the customer's generating that data and that's happening over and over again. You said it best outpost was a reaction to a competitive situation. Whereas today we have over fit 15 AWS edge services, and those are all reactions to things that customers need inside their data centers on location or in the field like with media companies. >>Outpost is interesting. We always used to riff on the cube, uh, cuz it's basically Amazon in a box, pushed in the data center, uh, running native, all the stuff, but now cloud native operations are kind of become standard. You're starting to see some standard Deepak sings group is doing some amazing work with open source Rauls team on the AI side, obviously, uh, you got SW who's giving the keynote tomorrow. You got the big AI machine learning big part of that edge. Now you can say, okay, outpost, is it relevant today? In other words, did outpost do its job? Cause EKS anywhere seems to be getting a lot of momentum. You see low the zones, the regions are kicking ass for Amazon. This edge piece is evolving. What's your take on EKS anywhere versus say outpost? >>Yeah, I think outpost did its job. It made customers that were looking at outpost really consider, do I wanna invest in this hardware? Do I, do I wanna have, um, this outpost in my data center, do I wanna manage this over the long term? A lot of those customers just transitioned to the public cloud. They went into AWS proper. Some of those customers stayed on prem because they did have use cases that were, uh, not a good fit for outpost. They weren't a good fit. Uh, in the customer's mind for the public AWS cloud inside an availability zone. Now what's happening is as AWS is pushing these services out and saying, we're gonna meet you where you are with 5g. We're gonna meet you where you are with wavelength. We're gonna meet you where you are with EKS anywhere. Uh, I think it has really reduced the amount of times that we have conversations about outposts and it's really increased. We can deploy fast. We don't have to spin up outpost hardware. We can go deploy EKS anywhere in your VMware environment and it's increasing the speed of adoption >>For sure. So you guys are making a lot of good business decisions around managed cloud service. Innovative does that. You have the cloud advisory, the classic professional services for the specific edge piece and, and doing that outside of the availability zones and regions for AWS, um, customers in, in these new areas that you're helping out are they want cloud, like they want to have modernization a modern applications. Obviously they got data machine learning and AI, all part of that. What's the main product or, or, or gap that you're filling for AWS, uh, outside of their available ability zones or their regions that you guys are delivering. What's the key is it. They don't have a footprint. Is it that it's not big enough for them? What's the real gap. What's why, why are you so successful? >>So what customers want when they look towards the cloud is they want to focus on, what's making them money as a business. They wanna focus on their applications. They want focus on their customers. So they look towards AWS cloud and say, AWS, you take the infrastructure. You take, uh, some of the higher layers and we'll focus on our revenue generating business, but there's a gap there between infrastructure and revenue generating business that innovative slides into, uh, we help manage the AWS environment. We help build out these things in local data centers for 32 plus year old company, we have traditional on-premises people that know about deploying hardware that know about deploying VMware to host EKS anywhere. But we also have most of our company totally focused on the AWS cloud. So we're filling that gap in helping deploy these AWS services, manage them over the long term. So our customers can go to just primarily and totally focusing on their revenue generating business. >>So basically you guys are basically building AWS edges, >>Correct? >>For correct companies, correct? Mainly because the, the needs are there, you got data, you got certain products, whether it's, you know, low latency type requirements, right. And then they still work with the regions, right. It's all tied together, right. Is that how it works? Right. >>And, and our customers, even the ones in the edge, they also want us to build out the AWS environment inside the availability zone, because we're always gonna have a failback scenario. If we're gonna deploy FinTech in the Caribbean, we're gonna talk about hurricanes and gonna talk about failing back into the AWS availability zones. So innovative is filling that gap across the board, whether it be inside the AWS cloud or on the AWS edge. >>All right. So I gotta ask you on the, since you're at the edge in these areas, I won't say underserved, but developing areas where now have data, you have applications that are tapping into that, that requirement. It makes total sense. We're seeing across the board. So it's not like it's, it's an outlier it's actually growing. Yeah. There's also the crypto angle. You got the blockchain. Are you seeing any traction at the edge with blockchain? Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech in, in the islands. There are a lot of, lot of, lot of web three happening. What's your, what's your view on the web three world right now, relative >>To we, we have some customers actually deploying crypto, especially, um, especially in the Caribbean. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers that are deploying crypto. A lot of, uh, countries are choosing crypto underly parts of their central banks. Yeah. Um, so it's, it's up and coming. Uh, I, I have some, you know, personal views that, that crypto is still searching for a use case. Yeah. And, uh, I think it's searching a lot and, and we're there to help customers search for that use case. Uh, but, but crypto, as a, as a tech technology, um, lives really well on the AWS edge. Yeah. Uh, and, and we're having more and more people talk to us about that. Yeah. And ask for assistance in the infrastructure because they're developing new cryptocurrencies every day. Yeah. It's not like they're deploying Ethereum or anything specific. They're actually developing new currencies and, and putting them out there on it's >>Interesting. And I mean, first of all, we've been doing crypto for many, many years. We have our own little, um, you know, projects going on. But if you look talk to all the crypto people that say, look, we do a smart contract, we use the blockchain. It's kind of over a lot of overhead. It's not really their technical already, but it's a cultural shift, but there's underserved use cases around use of money, but they're all using the blockchain, just for this like smart contracts for instance, or certain transactions. And they go into Amazon for the database. Yeah. <laugh> they all don't tell anyone we're using a centralized service, but what happened to decent centralized. >>Yeah. And that's, and that's the conversation performance. >>Yeah. >>And, and it's a cost issue. Yeah. And it's a development issue. Um, so I think more and more as, as some of these, uh, currencies maybe come up, some of the smart contracts get into, uh, they find their use cases. I think we'll start talking about how does that really live on, on AWS and, and what does it look like to build decentralized applications, but with AWS hardware and services. >>Right. So take me through a, a use case of a customer, um, Matthew around the edge. Okay. So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. I want to modernize my business. And I got my developers that are totally peaked up on cloud. Um, but we've identified that it's just a lot of overhead latency issues. I need to have a local edge and serve my a and I also want all the benefits of the cloud. So I want the modernization and I wanna migrate to the cloud for all those cloud benefits and the good this of the cloud. What's the answer. Yeah. >>Uh, big thing is, uh, industrial manufacturing, right? That's, that's one of the best use cases, uh, inside industrial manufacturing, we can pull in many of the AWS edge services we can bring in, uh, private 5g, uh, so that all the, uh, equipment inside that, that manufacturing plant can be hooked up. They don't have to pay huge overheads to deploy 5g it's, uh, better than wifi for the industrial space. Um, when we take computing down to that industrial area, uh, because we wanna do pre-procesing on the data. Yeah. We want to gather some analytics. We deploy that with, uh, regular commercially available hardware running VMware, and we deploy EKS anywhere on that. Uh, inside of that manufacturing plant, uh, we can do pre-processing on things coming out of the, uh, the robotics that depending on what we're manufacturing, right. Uh, and then we can take the, those refined analytics and for very low cost with maybe a little bit longer latency transmit those back, um, to the AWS availability zone, the, the standard >>For data lake or whatever, >>To the data lake. Yeah. Data Lakehouse, whatever it might be. Um, and we can do additional data science on that once it gets to the AWS cloud. Uh, but I'll lot of that, uh, just in time business decisions, just in time, manufacturing decisions can all take place on an AWS service or services inside that manufacturing plant. And that's, that's one of the best use cases that we're >>Seeing. And I think, I mean, we've been seeing this on the queue for many, many years, moving data around is very expensive. Yeah. But also compute going of the data that saves that cost yep. On the data transfer also on the benefits of the latency. So I have to ask you, by the way, that's standard best practice now for the folks watching don't move the data unless you have to. Um, but those new things are developing. So I wanna ask you, what new patterns are you seeing emerging once this new architecture's in place? Love that idea, localize everything right at the edge, manufacture, industrial, whatever the use case, retail, whatever it is. Right. But now what does that change in the, in the core cloud? There's a, there's a system element here. Yeah. What's the new pattern. There's >>Actually an organizational element as well, because once you have to start making the decision, do I put this compute at the point of use or do I put this compute in the cloud? Uh, now you start thinking about where business decisions should be taking place. Uh, so not only are you changing your architecture, you're actually changing your organization because you're thinking, you're thinking about a dichotomy you didn't have before. Uh, so now you say, okay, this can take place here. Uh, and maybe, maybe this decision can wait. Yeah. Uh, and then how do I visualize that? By >>The way, it could be a bot tube doing the work for management. Yeah. <laugh> exactly. You got observability going, right. But you gotta change the database architecture in the back. So there's new things developing. You've got more benefit. There >>Are, there are. And, and we have more and more people that, that want to talk less about databases and want to talk more about data lakes because of this. They want to talk more about out. Customers are starting to talk about throwing away data, uh, you know, for the past maybe decade. Yeah. It's been store everything. And one day we will have a data science team that we hire in our organization to do analytics on this decade of data. And well, >>I mean, that's, that's a great point. We don't have time to drill into, maybe we do another session on this, but the one pattern we're seeing of the past year is that throwing away data's bad, even data lakes that so-called turn into data swamps, actually, it's not the case. You look at data, brick, snowflake, and other successes out there. And even time series data, which may seem irrelevant efforts over actually matters when people start retraining their machine learning algorithms. Yep. So as data becomes code, as we call it in our last showcase, we did a whole whole event on this. The data's good in real time and in the lake. Yeah. Because the iteration of the data feeds the machine learning training. Things are getting better with the old data. So it's not throw it away. It's not just business better. Yeah. There's all kinds of new scale. >>There are. And, and we have, uh, many customers that are running pay Toby level. Um, they're, they're essentially data factories on, on, uh, on premises, right? They're, they're creating so much data and they're starting to say, okay, we could analyze this, uh, in the cloud, we could transition it. We could move Aytes of data to the AWS cloud, or we can run, uh, computational workloads on premises. We can really do some analytics on this data transition, uh, those high level and sort of raw analytics back to AWS run 'em through machine learning. Um, and we don't have to transition 10, 12 petabytes of data into AWS. >>So I gotta end the segment on a, on a kind of a, um, fun note. I was told to ask you about your personal background, OnPrem architect, Aus cloud, and skydiving instructor. <laugh> how does that all work together? What tell, what does this mean? Yeah. >>Uh, you >>Jumped out a plane and got a job. You got a customer to jump out >>Kind of. So I was, you jumped out. I was teaching having, uh, before I, before I started in the cloud space, this was 13, 14 years ago. I was a, I still am a sky. I instructor, uh, I was teaching skydiving and I heard out of the corner of my ear, uh, a guy that owned an MSP that was lamenting about, um, you know, storing data and, and how his customers are working. And he can't find an enough people to operate all these workloads. So I walked over and said, Hey, this is, this is what I went to school for. Like, I'd love to, you know, uh, I was living in a tent in the woods, teaching skydiving. I was like, I'd love to not live in a tent in the woods. So, uh, uh, I started and the first day there, uh, we had a, a discussion, uh, EC two had just come out <laugh> and, uh, like, >>This is amazing. >>Yeah. And so we had this discussion, we should start moving customers here. And, uh, and that totally revolutionized that business, um, that, that led to, uh, that that guy actually still owns a skydiving airport. But, um, but through all of that, and through being in on premises, migrated me and myself, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, now let's take what we learned in the cloud and, and apply those lessons and those services tore >>It's. So it's such a great story, you know, was gonna, you know, you know, the whole, you know, growth mindset pack your own parachute, you know, uh, exactly. You know, the cloud in the early days was pretty much will the shoot open. Yeah. It was pretty much, you had to roll your own cloud at that time. And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. >>And so was Kubernetes by the way, 2015 or so when, uh, when that was coming out, it was, I mean, it was, it was still, and maybe it does still feel like that to some people. Right. But, uh, it was, it was the same kind of feeling that we had in the early days of AWS, the same feeling we have when we >>It's now with you guys, it's more like a tandem jump. Yeah. You know, but, but it's a lot of, lot of this cutting edge stuff, like jumping out of an airplane. Yeah. You got the right equipment. You gotta do the right things. Exactly. >>Right. >>Yeah. Thanks for coming. You really appreciate it. Absolutely great conversation. Thanks for having me. Okay. The cubes here live in San Francisco for eight of us summit. I'm John for host of the cube. Uh, we'll be at a summit in New York coming up in the summer as well. Look up for that. Look up this calendar for all the cube, actually@thecube.net. We'll right back with our next segment after this break. >>Okay. Welcome back everyone to San Francisco live coverage here, we're at the cube a be summit 2022. We're back in person. I'm John fury host of the cube. We'll be at the eighties summit in New York city this summer, check us out then. But right now, two days in San Francisco, getting all the coverage what's going on in the cloud, we got a cube alumni and friend of the cube, my dos car CEO, investor, a Sierra, and also an investor in a bunch of startups, angel investor. Gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see you. Cool. How are you? Good. >>How hello you. >>So congratulations on all your investments. Uh, you've made a lot of great successes, uh, over the past couple years, uh, and your company raising, uh, some good cash as Sarah. So give us the update. How much cash have you guys raised? What's the status of the company product what's going on? >>First of all, thank you for having me. We're back to be business with you, never after to see you. Uh, so is a company started around four years back. I invested with a few of the investors and now I'm the CEO there. We have raised close to a hundred million there. The investors are people like Norwes Menlo ventures, coastal ventures, Ram Shera, and all those people, all well known guys. And Beckel chime Paul me Mayard web. So whole bunch of operating people and, uh, Silicon valley VCs are involved >>And has it gone? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISRA is going after is what I call the applying AI for customer service. It operations, it help desk, uh, the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and service now to take you to the next stage? Well, >>I love having you on the cube, Dave and I, Dave LAN as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a, you're like a guest analyst. <laugh> >>You know, who does >>You, >>You >>Get the call fund to talk to you though. You >>Get the commentary, your, your finger in the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase it. Isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud scale. You predicted that we talked about in the cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing Docker just raised a hundred million on a $2 billion valuation back from the dead after they pivoted from enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control plan? Emerging AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded, observability there's 10 billion observability companies. Data is the key. This is what's your end on this. What's your take. >>Yeah, look, I think I'll give you the few that I see right from my side. Obviously data is very clear. So the things that rumor system of recorded you and me talked about the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud native, it'll be called AI. NA AI enable is a new buzzword and using the AI for customer service. It, you talk about observability. I call it, AIOps applying AOPs for good old it operation management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events insurance. So I see a lot of work clicking for AIOps and AI services. What used to be desk with ServiceNow BMC GLA you see a new ALA emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflows, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with AI workflows. So you, you see AI going >>Off is RPA. A company is AI, is RPA a feature of something bigger? Or can someone have a company on RPA UI S one will be at their event this summer? Um, is it a product company? I mean, or I mean, RPA is, should be embedded in everything. It's a >>Feature. It is very good point. Very, very good thinking. So one is, it's a category for sure. Like, as we thought, it's a category, it's an area where RPA may change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company also, but that automation should be embedded in every area. Yeah. Like we call cloud NATO and AI. They it'll become automation data. Yeah. And that's your, thinking's >>Interesting me. I think about the, what you're talking about what's coming to mind is I'm kinda having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it was middleware. It sat between two things and then the middle, and it was software abstraction. Now you have all kinds of workflows, abstractions everywhere. So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed. Are they integrated? I mean, these are the challenges. This is crazy. What's the, >>So remember the databases became called polyglot databases. Yeah. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area like you, you were talking about, it should be part of service. Now it should be part of ISRA. Like every company, every Salesforce. So that's why you see it MuleSoft and sales buying RPA companies. So you'll see all the SaaS companies, cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also have an automation as a layer embedded inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind, as you got the XPO hall got, um, we're back to vis, but you got, you know, AMD, Clum, Dynatrace data, dog, innovative, all the companies out here that we know, we interview them all. They're trying to be suppliers to this growing enterprise market. Right? Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Deibel later. He's a former NEA guy and we always talk to Jerry, Jen, we know all the, the VCs, what does the startups look like? What does the state of the, in your mind, cause you, I know you invest the entrepreneurial founder situation. Cloud's bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's code. Yes. Basically. Data's everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to, uh, two things that I'm seeing out there. Remember leaders of Amazon created the startups 15 years back. Everybody built on Amazon now, Azure and GCP. The next layer would be people don't just build on Amazon. They're going to build it on top of snow. Flake companies are snowflake becomes a data platform, right? People will build on snowflake, right? So I see my old boss playing ment, try to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer, right? So I think that's the next level of companies trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis a couple months ago called castles in the cloud where your moat is, what you do in the cloud. Not necessarily in the, in the IP. Um, Dave LAN and I had last re invent, coined the term super cloud, right? It's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldman S Sachs is doing. You're starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage. And guys like Charles Fitzgeral out there, who we like was kind of hitting on us saying, Hey, you guys terrible, they didn't get him. Like, yeah, I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. <laugh> cause he's cool. Um, but snowflake is on Amazon. Yes. Now they say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist and, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. >>It is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to build everything on Amazon where possible whatever is, I cannot build. I'll make the pass layer room. The middle layer pass will be snowflake. So I cannot build it on snowflake. I can use them for data layer if I really need to size, I'll build it on force.com Salesforce. Yeah. Right. So I think that's where you'll >>See. So basically the, the, if you're an entrepreneur, the, the north star in terms of the, the outcome is be a super cloud. It >>Is, >>That's the application on another big CapEx ride, the CapEx of AWS or cloud, >>And that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. Yeah. >>Yeah. How are, how is Amazon and the clouds dealing with these big whales, the snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think got Redshift. Amazon has got Redshift. Um, but snowflake big customer. The they're probably paying AWS big, >>I >>Think big bills too. >>So John, very good. Cause it's like how Netflix is and Amazon prime, right. Netflix runs on Amazon, but Amazon has Amazon prime that co-option will be there. So Amazon will have Redshift, but Amazon is also partnering with the snowflake to have native snowflake data warehouse as a data layer. So I think depending on the use case you have to use each of the above, I think snowflake is here for a long term. Yeah. Yeah. So if I'm building an application, I want to use snowflake then writing from stats. >>Well, I think that comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, you know, foreclose your value. That's right. With some sort of internal hack, but I've think, I think the general question that I have is that I think it's okay to have a super cloud like that because the rising tide is still happening at some point, when does the rising tide stop and the people shopping up their knives, it gets more competitive or is it just an infinite growth cycle? I >>Think it's growth. You call it closed skill you the word cloud scale. So I think look, cloud will continually agree, increase. I think there's as long as there more movement from on, uh, on-prem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations, it helpless. Even the customer service service. Now the ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So cloud ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go made. >>I wanna get your thoughts for the folks watching that are, uh, enterprise buyers are practitioners, not suppliers to the market. Feel free to text me or DMing. Next question is really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products. Cause you know, the big enterprises now and you know, small, medium, large, and large enterprise, they're all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between the startup selling to, or growing startup selling to an enterprise? Um, have you seen changes there? I mean seeing some stuff, but why don't we get your thoughts on that? What it >>Is you, if I remember going back to our 2007 or eight, when I used to talk to you back then when Amazon started very small, right? We are an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or one person today. Most companies are already spending 20, 30% with startups. Like if I look at a C I will line our business, it's gone. Yeah. Can it go more? I think it can double in the next four, five years. Yeah. Spending on the startups. Yeah. >>And check out, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want to get your reaction because I, I reference the URL causes like there's like a bunch of companies we've been promoting because the solution that startups have actually are new stuff. Yes. It's bending, it's shifting left for security or using data differently or um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there. Um, and goes back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona, you mentioned AIOps, we've been seeing AIOps IOPS booming and that's creating a new developer paradigm that's right. Which we call coin data as code data as code is like infrastructure as code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this data engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same thing? Do you agree? Um, do you disagree or can you share? >>I, a lot of thoughts that Fu I see the AI op solutions in the futures should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone there yet. Like I spend a lot of time with data dog, Cisco app dynamic, right? Dynatrace, all this solution will go future towards predict to pro so solution with AOPs. But what you bring up a very good point on the data side. I think like we have a Amazon marketplace and Amazon for startup, there should be data exchange where you want to create for AOPs and AI service that customers give the data, share the data because we thought the data algorithms are useless. I can give the best algorithm, but I gotta train them, modify them, make them better, make them better. Yeah. And I think their whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that area is very important. >>You've always been on, um, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to big data days back in 2009, you know that >>Look at, look how much data bricks has grown. >>It is doubled. The key cloud >>Air kinda went private, so good stuff. What are you working on right now? Give a, give a, um, plug for what you're working on. You'll still investing. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. So right. ISRA is my number one baby right now. So I'm looking year that growing customers and my customers, or some of them, you like it's zoom auto desk, McAfee, uh, grand <inaudible>. So all the top customers, um, mainly for it help desk customer service. AIOps those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What's what's their need? What category is it? >>I think they look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on, predict ours. One area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value problem. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service, >>Great stuff, man. Doing great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the cube. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of a us summit 2022. And we're gonna be at Aus summit in San, uh, in New York in the summer. So look for that on the calendar, of course, go to a us startups.com. That's a site for all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break. >>Okay. Welcome back everyone. This the cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back, little bit smaller footprint, a lot of hybrid events going on, but this is actually a physical event, a summit in new York's coming in the summer. We'll be two with the cube on the set. We're getting back in the Groove's psych to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're gonna see a lot of virtual cube outta hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economist with duck bill groove, he's the founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank you. >>Thanks. Coming on. Sure is a lot of words to describe is shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at mark, Andrew's been doing a lot of shit posting lately. All a billionaires are shit posting, but they don't know how to do it. They're >>Doing it right. There's something opportunity there. It's like, here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a mid-size island to begin doing this from, oh, then we're having fun. >>This shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on this side I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what, what is shitposting >>It's more or less talking about the world of enterprise technology, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream, but it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a Jack ass or more prosaically are worried about getting fired for better or worse. I don't have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, Cuban coming up in Spain, which they're having a physical event, you see the growth of cloud native Amazon's evolving Atos, especially new CEO. Andy move on to be the chief of all. Amazon just saw him the cover of was it time magazine. Um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything. These folks do. They're they're effectively in a fishbowl, but I have trouble. Imagine the logistics, it takes to wind up handling the catering for a relatively downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. And it's, it's sprawling immense, the nominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. >>Well, there's a lot of force for good conversations. Seeing a lot of that going on, Amazon's trying to a, is trying to portray themselves, you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that and I think that's a good angle as cloud goes mainstream. There's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now it's same kind of thing. As you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby races, a as a semi-pro race car, our driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. Either way, it sounds like more exciting. Like they >>Better have a replacement ready in case something goes wrong on the track, highly >>Available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula, the one is they have these new rigs out. Yeah. Where you can actually race in e-sports with other people in pure simulation of the race car. You gotta get the latest and video graphics card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. Oh, >>It's great too. And I can see the appeal of these tech companies getting it into it because these things are basically rocket shifts. When those cars go, like they're sitting there, we can instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going on in your world. I know you have a lot of great SA we've been following you in the queue for many, many years. Got a great newsletter. Check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's the blowback, any blowback late leads there been tick? What was, what are some of the things you're hearing from your audience, more Corey, more Corey. And then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's hi, I'm emailing an awful lot of people at last week in AWS every week and okay. They not have heard me. It. That is not actually true. People just generally don't respond to email because who responds to email newsletters. That sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do that. >>We should do that. Actually. I think sure would call in. Oh, I, I >>Think >>I guarantee if we had that right now, people would call in and Corey, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised anything by how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the customer. >>You know, I always joke with Dave Avante about how John Fort's always at, uh, um, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of goof on that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0, 0 5, or we can't, we >>Have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And then there you go. Yeah. >>It's and the old joke at HP was if they, if they invented sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish, but that's what it is. And so the joke was cold. Dead fish is a better name than sushi. So you know is fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their product >>They're going in different directions. When they named Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonus on number of words, they can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, a session manager is a great one. I love the service ridiculous name. They have a systems manager, parameter store with is great. They have secrets manager, which does the same thing. It's two words less, but that one costs money in a way that systems manage through parameter store does not. It's fun. >>What's your, what's your favorite combination of acronyms >>Combination of you >>Got Ks. You got EMR, you got EC two. You got S three SQS. Well, RedShift's not an acronym. You got >>Gas is one of my personal favorites because it's either elastic block store or elastic bean stock, depending entirely on the context of the conversation, >>They still got bean stock or is that still >>Around? Oh, they never turn anything off. They're like the anti Google, Google turns things off while they're still building it. Whereas Amazon is like, wow, we built this thing in 2005 and everyone hates it. But while we certainly can't change it, now it has three customers on it, John. >>Okay. >>Simple BV still haunts our >>Dreams. I, I actually got an email on, I saw one of my, uh, servers, all these C twos were being deprecated and I got an email I'm like, I couldn't figure out. Why can you just like roll it over? Why, why are you telling me just like, gimme something else. Right. Okay. So let me talk about, uh, the other things I want to ask you is that like, okay, so as Amazon gets better in some areas where do they need more work? And you, your opinion, because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database Snowflake's got out database service. So, you know, Redshift, snowflake database is out there. So you've got this optician. Yes. How's that going? And what are you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with Amazon and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want. And they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multi-cloud cause obviously the other cloud shows are coming up. Amazon hated that word. Multi-cloud um, a lot of people are saying, you know, it's not a real good marketing word. Like multicloud sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multicloud? >>Multiple single >>Loves that term. Yeah. >>You're building in multiple single points of failure. Do it for the right reasons or don't do it as a default. I believe not doing it is probably the, the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about multi-cloud either as the industry leader, let's talk about other clouds, bad direction to go in from a market cap perspective. It doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of some brilliant, some brain dead. It depends a lot on context. But my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing because it solves problems. That's when I shut up and listen. >>Yeah. Cool. Awesome. Corey, I gotta ask you a question cause I know you we've been, you know, fellow journey mean in the, in the cloud journey, going to all the events and then the pandemic hit where now in the third year, who knows what it's gonna end, certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations community's gonna emerge. You've got a pretty big community growing and it's growing like crazy. What's the weirdest or coolest thing, or just big changes you've seen with the pan endemic, uh, from your perspective, cuz you've been in the you're in the middle of the whitewater rafting. You've seen the events you circle offline. You saw the online piece come in, you're commentating, you're calling balls and strikes in the industry. You got a great team developing over there. Duck bill group. What's the big aha moment that you saw with the pandemic. Weird, funny, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who >>Can pony. >>Hello and welcome back to the live cube coverage here in San Francisco, California, the cube live coverage. Two days, day two of a summit, 2022 Aish summit, New York city coming up in summer. We'll be there as well. Events are back. I'm the host, John fur, the Cub got great guest here. Johnny Dallas with Ze. Um, here is on the queue. We're gonna talk about his background. Uh, little trivia here. He was the youngest engineer ever worked at Amazon at the age. 17 had to get escorted into reinvent in Vegas cause he was underage <laugh> with security, all good stories. Now the CEO of company called Z know DevOps kind of focus, managed service, a lot of cool stuff, Johnny, welcome to the cube. >>Thanks John. Great. >>So tell a story. You were the youngest engineer at AWS. >>I was, yes. So I used to work at a company called Bebo. I got started very young. I started working when I was about 14, um, kind of as a software engineer. And when I, uh, it was about 16. I graduated out of high school early, um, working at this company Bebo, still running all of the DevOps at that company. Um, I went to reinvent in about 2018 to give a talk about some of the DevOps software I wrote at that company. Um, but you know, as many of those things were probably familiar with reinvent happens in a casino and I was 16. So was not able to actually go into the, a casino on my own. Um, so I'd have <inaudible> security as well as casino security escort me in to give my talk. >>Did Andy jazzy, was he aware of >>This? Um, you know, that's a great question. I don't know. <laugh> >>I'll ask him great story. So obviously you started a young age. I mean, it's so cool to see you jump right in. I mean, I mean you never grew up with the old school that I used to grew up in and loading package software, loading it onto the server, deploying it, plugging the cables in, I mean you just rocking and rolling with DevOps as you look back now what's the big generational shift because now you got the Z generation coming in, millennials on the workforce. It's changing like no one's putting and software on servers. Yeah, >>No. I mean the tools keep getting better, right? We, we keep creating more abstractions that make it easier and easier. When I, when I started doing DevOps, I could go straight into E two APIs. I had APIs from the get go and you know, my background was, I was a software engineer. I never went through like the CIS admin stack. I, I never had to, like you said, rack servers, myself. I was immediately able to scale. I was managing, I think 2,500 concurrent servers across every Ables region through software. It was a fundamental shift. >>Did you know what an SRE was at that time? >>Uh, >>You were kind of an SRE on >>Yeah, I was basically our first SRE, um, was familiar with the, with the phrasing, but really thought of myself as a software engineer who knows cloud APIs, not a SRE. All >>Right. So let's talk about what's what's going on now as you look at the landscape today, what's the coolest thing that's going on in your mind in cloud? >>Yeah, I think the, I think the coolest thing is, you know, we're seeing the next layer of those abstraction tools exist and that's what we're doing with Z is we've basically gone and we've, we're building an app platform that deploys onto your cloud. So if you're familiar with something like Carku, um, where you just click a GitHub repo, uh, we actually make it that easy. You click a GI hub repo and it will deploy on ALS using a AWS tools. So, >>Right. So this is Z. This is the company. Yes. How old's the company about >>A year and a half old now. >>All right. So explain what it does. >>Yeah. So we make it really easy for any software engineer to deploy on a AWS. It's not SREs. These are the actual application engineers doing the business logic. They don't really want to think about Yamo. They don't really want to configure everything super deeply. They want to say, run this API on S in the best way possible. We've encoded all the best practices into software and we set it up for you. Yeah. >>So I think the problem you're solving is that there's a lot of want be DevOps engineers. And then they realize, oh shit, I don't wanna do this. Yeah. And some people want to do it. They loved under the hood. Right. People love to have infrastructure, but the average developer needs to actually be as agile on scale. So that seems to be the problem you solve. Right? >>Yeah. We, we, we give way more productivity to each individual engineer, you know? >>All right. So let me ask you a question. So let me just say, I'm a developer. Cool. I build this new app. It's a streaming app or whatever. I'm making it up cube here, but let's just say I deploy it. I need your service. But what happens about when my customers say, Hey, what's your SLA? The CDN went down from this it's flaky. Does Amazon have, so how do you handle all that SLA reporting that Amazon provides? Cuz they do a good job with sock reports all through the console. But as you start getting into DevOps <affirmative> and sell your app, mm-hmm <affirmative> you have customer issues. How do you, how do you view that? Yeah, >>Well, I, I think you make a great point of AWS has all this stuff already. AWS has SLAs. AWS has contract. Aw has a lot of the tools that are expected. Um, so we don't have to reinvent the wheel here. What we do is we help people get to those SLAs more easily. So Hey, this is AWS SLA as a default. Um, Hey, we'll fix you your services. This is what you can expect here. Um, but we can really leverage S's reliability of you. Don't have to trust us. You have to trust ALS and trust that the setup is good there. >>Do you handle all the recovery or mitigation between, uh, identification say downtime for instance? Oh, the server's not 99% downtime. Uh, went down for an hour, say something's going on? And is there a service dashboard? How does it get what's the remedy? Do you have a, how does all that work? >>Yeah, so we have some built in remediation. You know, we, we basically say we're gonna do as much as we can to keep your endpoint up 24 7 mm-hmm <affirmative>. If it's something in our control, we'll do it. If it's a disc failure, that's on us. If you push bad code, we won't put out that new version until it's working. Um, so we do a lot to make sure that your endpoint stay is up, um, and then alert you if there's a problem that we can't fix. So cool. Hey S has some downtime, this thing's going on. You need to do this action. Um, we'll let you know. >>All right. So what do you do for fun? >>Yeah, so, uh, for, for fun, um, a lot of side projects. <laugh> uh, >>What's your side hustle right now. You got going on >>The, uh, it's >>A lot of tools playing tools, serverless. >>Yeah, painless. A lot of serverless stuff. Um, I think there's a lot of really cool WAM stuff as well. Going on right now. Um, I love tools is, is the truest answer is I love building something that I can give to somebody else. And they're suddenly twice as productive because of it. Um, >>It's a good feeling, isn't it? >>Oh yeah. There's >>Nothing like tools were platforms. Mm-hmm <affirmative>, you know, the expression, too many tools in the tool. She becomes, you know, tools for all. And then ultimately tools become platforms. What's your view on that? Because if a good tool works and starts to get traction, you need to either add more tools or start building a platform platform versus tool. What's your, what's your view on a reaction to that kind of concept debate? >>Yeah, it's a good question. Uh, we we've basically started as like a, a platform. First of we've really focused on these, uh, developers who don't wanna get deep into the DevOps. And so we've done all of the pieces of the stacks. We do C I C D management. Uh, we do container orchestration, we do monitoring. Um, and now we're, spliting those up into individual tools so they can be used. Awesome in conjunction more. >>All right. So what are some of the use cases that you see for your service? It's DevOps basically nano service DevOps. So people who want a DevOps team, do clients have a DevOps person and then one person, two people what's the requirements to run >>Z. Yeah. So we we've got teams, um, from no DevOps is kind of when they start and then we've had teams grow up to about, uh, five, 10 men DevOps teams. Um, so, you know, as is more infrastructure people come in because we're in your cloud, you're able to go in and configure it on top you're we can't block you. Uh, you wanna use some new AWS service. You're welcome to use that alongside the stack that we deploy >>For you. How many customers do you have now? >>So we've got about 40 companies that are using us for all of their infrastructure, um, kind of across the board, um, as well as >>What's the pricing model. >>Uh, so our pricing model is we, we charge basically similar to an engineering salary. So we charge a monthly rate. We have plans at 300 bucks a month, a thousand bucks a month, and then enterprise plan for >>The requirement scale. Yeah. So back into the people cost, you must have her discounts, not a fully loaded thing, is it? >>Yeah, there's a discounts kind of asking >>Then you pass the Amazon bill. >>Yeah. So our customers actually pay for the Amazon bill themselves. So >>Have their own >>Account. There's no margin on top. You're linking your, a analyst account in, um, got it. Which is huge because we can, we are now able to help our customers get better deals with Amazon. Um, got it. We're incentivized on their team to drive your costs down. >>And what's your unit main unit of economics software scale. >>Yeah. Um, yeah, so we, we think of things as projects. How many services do you have to deploy as that scales up? Um, awesome. >>All right. You're 20 years old now you not even can't even drink legally. <laugh> what are you gonna do when you're 30? We're gonna be there. >>Well, we're, uh, we're making it better, better, >>Better the old guy on the queue here. <laugh> >>I think, uh, I think we're seeing a big shift of, um, you know, we've got these major clouds. ALS is obviously the biggest cloud and it's constantly coming out with new services, but we're starting to see other clouds have built many of the common services. So Kubernetes is a great example. It exists across all the clouds and we're starting to see new platforms come up on top that allow you to leverage tools for multiple times. At the same time. Many of our customers actually have AWS as their primary cloud and they'll have secondary clouds or they'll pull features from other clouds into AWS, um, through our software. I think that's, I'm very excited by that. And I, uh, expect to be working on that when I'm 30. <laugh> awesome. >>Well, you gonna have a good future. I gotta ask you this question cuz uh, you know, I always, I was a computer science undergrad in the, in the, and um, computer science back then was hardcore, mostly systems OS stuff, uh, database compiler. Um, now there's so much compi, right? Mm-hmm <affirmative> how do you look at the high school college curriculum experience slash folks who are nerding out on computer science? It's not one or two things. You've got a lot of, lot of things. I mean, look at Python, data engineering and emerging as a huge skill. What's it, what's it like for college kids now and high school kids? What, what do you think they should be doing if you had to give advice to your 16 year old self back a few years ago now in college? Um, I mean Python's not a great language, but it's super effective for coding and the datas were really relevant, but it's, you've got other language opportunities you've got tools to build. So you got a whole culture of young builders out there. What should, what should people gravitate to in your opinion and stay away from or >>Stay away from? That's a good question. I, I think that first of all, you're very right of the, the amount of developers is increasing so quickly. Um, and so we see more specialization. That's why we also see, you know, these SREs that are different than typical application engineering. You know, you get more specialization in job roles. Um, I think if, what I'd say to my 16 year old self is do projects, um, the, I learned most of my, what I've learned just on the job or online trying things, playing with different technologies, actually getting stuff out into the world, um, way more useful than what you'll learn in kind of a college classroom. I think classroom's great to, uh, get a basis, but you need to go out and experiment actually try things. >>You know? I think that's great advice. In fact, I would just say from my experience of doing all the hard stuff and cloud is so great for just saying, okay, I'm done, I'm banning the project. Move on. Yeah. Cause you know, it's not gonna work in the old days. You have to build this data center. I bought all this, you know, people hang on to the old, you know, project and try to force it out there. Now you >>Can launch a project now, >>Instant gratification, it ain't working <laugh> or this is shut it down and then move on to something new. >>Yeah, exactly. Instantly you should be able to do that much more quickly. Right. So >>You're saying get those projects and don't be afraid to shut it down. Mm-hmm <affirmative> that? Do you agree with that? >>Yeah. I think it's ex experiment. Uh, you're probably not gonna hit it rich on the first one. It's probably not gonna be that idea is the genius idea. So don't be afraid to get rid of things and just try over and over again. It's it's number of reps >>That'll win. I was commenting online. Elon Musk was gonna buy Twitter, that whole Twitter thing. And someone said, Hey, you know, what's the, I go look at the product group at Twitter's been so messed up because they actually did get it right on the first time. And we can just a great product. They could never change it because people would freak out and the utility of Twitter. I mean, they gotta add some things, the added button and we all know what they need to add, but the product, it was just like this internal dysfunction, the product team, what are we gonna work on? Don't change the product so that you kind of have there's opportunities out there where you might get the lucky strike right outta the gate. Yeah. Right. You don't know. >>It's almost a curse too. It's you're not gonna hit curse Twitter. You're not gonna hit a rich the second time too. So yeah. >><laugh> Johnny Dallas. Thanks for coming on the cube. Really appreciate it. Give a plug for your company. Um, take a minute to explain what you're working on. What you're look looking for. You hiring funding. Customers. Just give a plug, uh, last minute and kind the last word. >>Yeah. So, um, John Dallas from Ze, if you, uh, need any help with your DevOps, if you're a early startup, you don't have DevOps team, um, or you're trying to deploy across clouds, check us out z.com. Um, we are actively hiring. So if you are a software engineer excited about tools and cloud, or you're interested in helping getting this message out there, hit me up. Um, find us on z.co. >>Yeah. LinkedIn Twitter handle GitHub handle. >>Yeah. I'm the only Johnny on a LinkedIn and GitHub and underscore Johnny Dallas underscore on Twitter. All right. Um, >>Johnny Dallas, the youngest engineer working at Amazon, um, now 20 we're on great new project here in the cube. Builders are all young. They're growing into the business. They got cloud at their, at their back it's tailwind. I wish I was 20. Again, this is a I'm John for your host. Thanks for watching. Thanks. >>Welcome >>Back to the cubes. Live coverage of a AWS summit in San Francisco, California events are back, uh, ADAS summit in New York cities. This summer, the cube will be there as well. Check us out there lot. I'm glad we have events back. It's great to have everyone here. I'm John furry host of the cube. Dr. Matt wood is with me cube alumni now VP of business analytics division of AWS. Matt. Great to see you. Thank >>You, John. Great to be here. >>Appreciate it. I always call you Dr. Matt wood, because Andy jazzy always says Dr. Matt, we >>Would introduce you on the he's the one and only the one and >>Only Dr. Matt wood >>In joke. I love it. >>Andy style. And I think you had walkup music too on, you know, >>Too. Yes. We all have our own personalized walk. >>So talk about your new role. I not new role, but you're running up, um, analytics, business or AWS. What does that consist of right now? >>Sure. So I work, I've got what I consider to be the one of the best jobs in the world. Uh, I get to work with our customers and, uh, the teams at AWS, uh, to build the analytics services that millions of our customers use to, um, uh, slice dice, pivot, uh, better understand their day data, um, look at how they can use that data for, um, reporting, looking backwards and also look at how they can use that data looking forward. So predictive analytics and machine learning. So whether it is, you know, slicing and dicing in the lower level of, uh Hado and the big data engines, or whether you're doing ETR with glue or whether you're visualizing the data in quick side or building models in SageMaker. I got my, uh, fingers in a lot of pies. >>You know, one of the benefits of, uh, having cube coverage with AWS since 2013 is watching the progression. You were on the cube that first year we were at reinvent 2013 and look at how machine learning just exploded onto the scene. You were involved in that from day one is still day one, as you guys say mm-hmm <affirmative>, what's the big thing now. I mean, look at, look at just what happened. Machine learning comes in and then a slew of services come in and got SageMaker became a hot seller, right outta the gate. Mm-hmm <affirmative> the database stuff was kicking butt. So all this is now booming. Mm-hmm <affirmative> that was the real generational changeover for <inaudible> what's the perspective. What's your perspective on, yeah, >>I think how that's evolved. No, I think it's a really good point. I, I totally agree. I think for machine machine learning, um, there was sort of a Renaissance in machine learning and the application of machine learning machine learning as a technology has been around for 50 years, let's say, but, uh, to do machine learning, right? You need like a lot of data, the data needs to be high quality. You need a lot of compute to be able to train those models and you have to be able to evaluate what those mean as you apply them to real world problems. And so the cloud really removed a lot of the constraints. Finally, customers had all of the data that they needed. We gave them services to be able to label that data in a high quality way. There's all the compute. You need to be able to train the models <laugh> and so where you go. >>And so the cloud really enabled this Renaissance with machine learning, and we're seeing honestly, a similar Renaissance with, uh, with data, uh, and analytics. You know, if you look back, you know, five, 10 years, um, analytics was something you did in batch, like your data warehouse ran a analysis to do, uh, reconciliation at the end of the month. And then was it? Yeah. And so that's when you needed it, but today, if your Redshift cluster isn't available, uh, Uber drivers don't turn up door dash deliveries, don't get made. It's analytics is now central to virtually every business and it is central to every virtually every business is digital transformation. Yeah. And be able to take that data from a variety of sources here, or to query it with high performance mm-hmm <affirmative> to be able to actually then start to augment that data with real information, which usually comes from technical experts and domain experts to form, you know, wisdom and information from raw data. That's kind of, uh, what most organizations are trying to do when they kind of go through this analytics journey. It's >>Interesting, you know, Dave LAN and I always talk on the cube, but out, you know, the future and, and you look back, the things we were talking about six years ago are actually happening now. Yeah. And it's not a, a, a, you know, hyped up statement to say digital transformation. It actually's happening now. And there's also times where we bang our fist on the table, say, I really think this is so important. And Dave says, John, you're gonna die on that hill <laugh>. >>And >>So I I'm excited that this year, for the first time I didn't die on that hill. I've been saying data you're right. Data as code is the next infrastructure as code mm-hmm <affirmative>. And Dave's like, what do you mean by that? We're talking about like how data gets and it's happening. So we just had an event on our 80 bus startups.com site mm-hmm <affirmative>, um, a showcase with startups and the theme was data as code and interesting new trends emerging really clearly the role of a data engineer, right? Like an SRE, what an SRE did for cloud. You have a new data engineering role because of the developer on, uh, onboarding is massively increasing exponentially, new developers, data science, scientists are growing mm-hmm <affirmative> and the, but the pipelining and managing and engineering as a system. Yeah. Almost like an operating system >>And as a discipline. >>So what's your reaction to that about this data engineer data as code, because if you have horizontally scalable data, you've gotta be open that's hard. <laugh> mm-hmm <affirmative> and you gotta silo the data that needs to be siloed for compliance and reasons. So that's got a very policy around that. So what's your reaction to data as code and data engineering and >>Phenomenon? Yeah, I think it's, it's a really good point. I think, you know, like with any, with any technology, uh, project inside an organization, you know, success with analytics or machine learning is it's kind of 50% technology and then 50% cultural. And, uh, you have often domain experts. Those are, could be physicians or drug experts, or they could be financial experts or whoever they might be got deep domain expertise. And then you've got technical implementation teams and it's kind of a natural often repulsive force. I don't mean that rudely, but they, they just, they don't talk the same language. And so the more complex the domain and the more complex the technology, the stronger that repulsive force, and it can become very difficult for, um, domain experts to work closely with the technical experts, to be able to actually get business decisions made. And so what data engineering does and data engineering is in some cases team, or it can be a role that you play. >>Uh, it's really allowing those two disciplines to speak the same language it provides. You can think of it as plumbing, but I think of it as like a bridge, it's a bridge between like the technical implementation and the domain experts. And that requires like a very disparate range of skills. You've gotta understand about statistics. You've gotta understand about the implementation. You've gotta understand about the, it, you've gotta understand and understand about the domain. And if you could pull all of that together, that data engineering discipline can be incredibly transformative for an organization, cuz it builds the bridge between those two >>Groups. You know, I was advising some, uh, young computer science students at the sophomore junior level, uh, just a couple weeks ago. And I told 'em, I would ask someone at Amazon, this questions I'll ask you since you're, you've been in the middle of of it for years, they were asking me and I was trying to mentor them on. What, how do you become a data engineer from a practical standpoint, uh, courseware projects to work on how to think, um, not just coding Python cause everyone's coding in Python mm-hmm <affirmative> but what else can they do? So I was trying to help them and I didn't really know the answer myself. I was just trying to like kind of help figure it out with them. So what is the answer in your opinion or the thoughts around advice to young students who want to be data engineers? Cuz data scientists is pretty clear in what that is. Yeah. You use tools, you make visualizations, you manage data, you get answers and insights and apply that to the business. That's an application mm-hmm <affirmative>, that's not the, you know, sta standing up a stack or managing the infrastructure. What, so what does that coding look like? What would your advice be to >>Yeah, I think >>Folks getting into a data engineering role. >>Yeah. I think if you, if you believe this, what I said earlier about like 50% technology, 50% culture, like the, the number one technology to learn as a data engineer is the tools in the cloud, which allow you to aggregate data from virtually any source into something which is incrementally more valuable for the organization. That's really what data engineering is all about. It's about taking from multiple sources. Some people call them silos, but silos indicates that the, the storage is kind of fungible or UND differentiated. That that's really not the case. Success requires you to really purpose built well crafted high performance, low cost engines for all of your data. So understanding those tools and understanding how to use 'em, that's probably the most important technical piece. Um, and yeah, Python and programming and statistics goes along with that, I think. And then the most important cultural part, I think is it's just curiosity. >>Like you want to be able to, as a data engineer, you want to have a natural curiosity that drives you to seek the truth inside an organization, seek the truth of a particular problem and to be able to engage, cuz you're probably, you're gonna have some choice as you go through your career about which domain you end up in, like maybe you're really passionate about healthcare. Maybe you're really just passionate about your transportation or media, whatever it might be. And you can allow that to drive a certain amount of curiosity, but within those roles, like the domains are so broad, you kind of gotta allow your curiosity to develop and lead, to ask the right questions and engage in the right way with your teams. So because you can have all the technical skills in the world, but if you're not able to help the team's truths seek through that curiosity, you simply won't be successful. >>We just had a guest on 20 year old, um, engineer, founder, Johnny Dallas, who was 16 when he worked at Amazon youngest engineer at >>Johnny Dallas is a great name by the that's fantastic. It's his real name? >>It sounds like a football player. Rockstar. I should call Johnny. I have Johnny Johnny cube. Uh it's me. Um, so, but he's young and, and he, he was saying, you know, his advice was just do projects. >>Yeah. That's get hands on. >>Yeah. And I was saying, Hey, I came from the old days though, you get to stand stuff up and you hugged onto the assets. Cause you didn't wanna kill the cause you spent all this money and, and he's like, yeah, with cloud, you can shut it down. If you do a project that's not working and you get bad data, no one's adopting it or you don't want like it anymore. You shut it down. Just something >>Else. Totally >>Instantly abandoned it. Move onto something new. >>Yeah. With progression. Totally. And it, the, the blast radius of, um, decisions is just way reduced, gone. Like we talk a lot about like trying to, you know, in the old world trying to find the resources and get the funding. And it's like, right. I wanna try out this kind of random idea that could be a big deal for the organization. I need 50 million in a new data center. Like you're not gonna get anywhere. You, >>You do a proposal working backwards, document >>Kinds, all that, that sort of stuff got hoops. So, so all of that is gone, but we sometimes forget that a big part of that is just the, the prototyping and the experimentation and the limited blast radius in terms of cost. And honestly, the most important thing is time just being able to jump in there, get fingers on keyboards, just try this stuff out. And that's why at AWS, we have part of the reason we have so many services because we want, when you get into AWS, we want the whole toolbox to be available to every developer. And so, as your ideas developed, you may want to jump from, you know, data that you have, that's already in a database to doing realtime data. Yeah. And then you can just, you have the tools there. And when you want to get into real time data, you don't just have kineses, but you have real time analytics and you can run SQL again, that data is like the, the capabilities and the breadth, like really matter when it comes to prototyping and, and >>That's culture too. That's the culture piece, because what was once a dysfunctional behavior, I'm gonna go off the reservation and try something behind my boss's back or cause now as a side hustle or fun project. Yeah. So for fun, you can just code something. Yeah, >>Totally. I remember my first Haddo project, I found almost literally a decommissioned set of servers in the data center that no one was using. They were super old. They're about to be literally turned off. And I managed to convince the team to leave them on for me for like another month. And I installed her DUP on them and like, got them going. It's like, that just seems crazy to me now that I, I had to go and convince anybody not to turn these service off, but what >>It was like for that, when you came up with elastic map produce, because you said this is too hard, we gotta make it >>Easier. Basically. Yes. <laugh> I was installing Haddo version, you know, beta nor 0.9 or whatever it was. It's like, this is really hard. This is really hard. >>We simpler. All right. Good stuff. I love the, the walk down memory lane and also your advice. Great stuff. I think culture's huge. I think. And that's why I like Adam's keynote to reinvent Adam. Lesky talk about path minds and trail blazers because that's a blast radius impact. Mm-hmm <affirmative> when you can actually have innovation organically just come from anywhere. Yeah, that's totally cool. Totally. Let's get into the products. Serverless has been hot mm-hmm <affirmative> uh, we hear a lot about EKS is hot. Uh, containers are booming. Kubernetes is getting adopted. There's still a lot of work to do there. Lambda cloud native developers are booming, serverless Lambda. How does that impact the analytics piece? Can you share the hot, um, products around how that translates? Sure, absolutely. Yeah, the SageMaker >>Yeah, I think it's a, if you look at kind of the evolution and what customers are asking for, they're not, you know, they don't just want low cost. They don't just want this broad set of services. They don't just want, you know, those services to have deep capabilities. They want those services to have as lower operating cost over time as possible. So we kind of really got it down. We got built a lot of muscle, lot of services about getting up and running and experimenting and prototyping and turning things off and turn turning them on and turning them off. And like, that's all great. But actually the, you really only most projects start something once and then stop something once. And maybe there's an hour in between, or maybe there's a year, but the real expense in terms of time and, and complexity is sometimes in that running cost. Yeah. And so, um, we've heard very loudly and clearly from customers that they want, that, that running cost is just undifferentiated to them and they wanna spend more time on their work and in analytics that is, you know, slicing the data, pivoting the data, combining the data, labeling the data, training their models, uh, you know, running inference against their models, uh, and less time doing the operational pieces. >>So is that why the servers focus is there? >>Yeah, absolutely. It, it dramatically reduces the skill required to run these, uh, workloads of any scale. And it dramatically reduces the UND differentiated, heavy lifting, cuz you get to focus more of the time that you would've spent on the operation on the actual work that you wanna get done. And so if you look at something just like Redshift serverless that we launched a reinvent, you know, there's a kind of a, we have a lot of customers that want to run like a, uh, the cluster and they want to get into the, the weeds where there is benefit. We have a lot of customers that say, you know, I there's no benefit for me though. I just wanna do the analytics. So you run the operational piece, you're the experts we've run. You know, we run 60 million instant startups every single day. Like we do this a lot. Exactly. We understand the operation. I >>Want the answers come on. So >>Just give the answers or just let, give me the notebook or just give the inference prediction. So today for example, we announced, um, you know, serverless inference. So now once you've trained your machine learning model, just, uh, run a few, uh, lines of code or you just click a few buttons and then yeah, you got an inference endpoint that you do not have to manage. And whether you're doing one query against that endpoint, you know, per hour or you're doing, you know, 10 million, but we'll just scale it on the back end. You >>Know, I know we got not a lot of time left, but I want, wanna get your reaction to this. One of the things about the data lakes, not being data swamps has been from what I've been reporting and hearing from customers is that they want to retrain their machine learning algorithm. They want, they need that data. They need the, the, the realtime data and they need the time series data, even though the time has passed, they gotta store in the data lake mm-hmm <affirmative>. So now the data lakes main function is being reusing the data to actually retrain. Yeah, >>That's >>Right. It worked properly. So a lot of, lot of postmortems turn into actually business improvements to make the machine learning smarter, faster. You see that same way. Do you see it the same way? Yeah, >>I think it's, I think it's really interesting. No, I think it's really interesting because you know, we talk it's, it's convenient to kind of think of analytics as a very clear progression from like point a point B, but really it's, you are navigating terrain for which you do not have a map and you need a lot of help to navigate that terrain. Yeah. And so, you know, being, having these services in place, not having to run the operations of those services, being able to have those services be secure and well governed, and we added PII detection today, you know, something you can do automatically, uh, to be able to use their, uh, any unstructured data run queries against that unstructured data. So today we added, you know, um, text extract queries. So you can just say, well, uh, you can scan a badge for example, and say, well, what's the name on this badge? And you don't have to identify where it is. We'll do all of that work for you. So there's a often a, it's more like a branch than it is just a, a normal, uh, a to B path, a linear path. Uh, and that includes loops backwards. And sometimes you gotta get the results and use those to make improvements further upstream. And sometimes you've gotta use those. And when you're downstream, you'll be like, ah, I remember that. And you come back and bring it all together. So awesome. It's um, it's, uh, uh, it's a wonderful >>Work for sure. Dr. Matt wood here in the queue. Got just take the last word and give the update. Why you're here. What's the big news happening that you're announcing here at summit in San Francisco, California, and update on the, the business analytics >>Group? Yeah, I think, you know, one of the, we did a lot of announcements in the keynote, uh, encouraged everyone to take a look at that. Uh, this morning was Swami. Uh, one of the ones I'm most excited about, uh, is the opportunity to be able to take, uh, dashboards, visualizations. We're all used to using these things. We see them in our business intelligence tools, uh, all over the place. However, what we've heard from customers is like, yes, I want those analytics. I want their visualization. I want it to be up to date, but you know, I don't actually want to have to go my tools where I'm actually doing my work to another separate tool to be able to look at that information. And so today we announced, uh, one click public embedding for quick side dashboards. So today you can literally, as easily as embedding a YouTube video, you can take a dashboard that you've built inside, quick site cut and paste the HTML, paste it into your application and that's it. That's all you have to do. It takes seconds and >>It gets updated in real time. >>Updated in real time, it's interactive. You can do everything that you would normally do. You can brand it like this is there's no power by quick site button or anything like that. You can change the colors, make it fit in perfectly with your, with your applications. So that's sitting incredibly powerful way of being able to take a, uh, an analytics capability that today sits inside its own little fiefdom and put it just everywhere. It's, uh, very transformative. >>Awesome. And the, the business is going well. You got the serverless and your tailwind for you there. Good stuff, Dr. Matt with thank you. Coming on the cube >>Anytime. Thank >>You. Okay. This is the cubes cover of eight summit, 2022 in San Francisco, California. I'm John host cube. Stay with us with more coverage of day two after this short break.

>>mhm Yes, everyone, welcome back to the cubes coverage of dr khan 2021. I'm john for your host of the cube. Got a great segment here. One of the big supporters and open source amazon web services returning back second year. Dr khan virtual Deepak Singh, vice president of the compute services at AWS Deepak, Great to see you. Thanks for coming back on remotely again soon. We'll be in real life. Reinvent is going to be in person, we'll be there. Good to see you. >>Good to see you too, john it's always good to do these. I don't know how how often I've been at the cube now, but it's great every single time your >>legend and getting on there, a lot of important things to discuss your in one of the most important areas in the technology industry right now and that is at the confluence of cloud scale and modern development applications as they shift towards as Andy Jassy says, the new guard, right. It's been happening. You guys have been a big proponent of open source and enabling open source is a service creating business models for companies. But more importantly, you guys are powering, making it easier for folks to use software. And doctor has been a big relationship for you. Could you take a minute to first talk about the doctor, a W S relationship and your involvement and what you're doing? >>Yeah, actually it goes back a long way. Uh you know, Justin, we announced PCS had reinvented 2014 and PCS at that time was very much managed orchestration service on top of DACA at that time. I think it was the first really big one out there from a cloud provider. And since then, of course, the world has evolved quite a bit and relationship with DR has evolved a lot. The thing I'd like to talk to is something that we announced that Dr last year, I don't remember if I talked about it on the cube at that time. But last year we started working with DR on how can we go from doctor Run, which customers love or DR desktop, which customers love and make it easy for people to run containers on pcs and Fergie. Uh so most new customers running containers and AWS today start with this Yes and party or half of them and we wanted to make it very easy for them to start with where they are on the laptop which is often bucket to stop and have running services the native US. So we started working with DR and that that collaboration has been very successful. We want to keep you look forward to continuing to work on evolving that where you can use Docker compose doctor, desktop, doctor run the fuel that darker customers used and the labour grand production services on the end of your side, which is the part that we've got that on. So I think that's one area where we work really well together. Uh, the other area where I think the two companies continue to work well together. It's open source in general as some of, you know, AWS has a very strong commitment to contain a. D uh, EKS our community service is moving towards community. Forget it actually runs all on community today and uh, we collaborate dr Rhonda on the Ocr specification because, you know, the Oc I am expect is becoming the de facto packaging format idea. W S. This morning we launched yesterday, we launched a service called Opera. And the main expected input for opera is an Ocr image are being in this Atlanta as well, where those ci images now a way of packaging for lambda. And I think the last one I like to call out and it has been an amazing partnership and it's an area where most people don't pay attention is amid signing. Uh, there's a project called Notary. We do the second version of the Notary Spec for remit signing and AWS Docker and a couple of other companies have been working very closely together on bringing that uh, you know, finalizing no tv too, so that at least in our case we can start building services for our customers on top of that. You know, it's it's a great relationship and I expect to see it continue. >>Well, I think one of the themes this year is developer experience. So good. Good call out there in the new announcements on the tools you have and software because that seems to be a great developer integration with Docker question I have for you is how should the customers think about things like E C. S and versus E K. S. App, Runner lambda uh for kind of running their containers. How do they understand the difference is, what's there? What's the, what's the thought process there? What's >>that? It's a good question actually been announced after. And I think there was one of the questions I started getting on twitter. You know, let's start at the very beginning. Anyone can pick up a Docker container and run it on easy to today. You can run it on easy to, we can run a light sail, but doc around works just fine. It's the limits machine. Then people want to do more complex things. They want to run large scale orchestrated services. They won't run their entire business and containers. We have customers will do that today. Uh, you know, you have people like Vanguard who runs a significant portion of the infrastructure on pcs frg or you have to elope with the heavy user of chaos, our community service. So in general, if you're running large scale systems, you're building your platforms, you're most likely to use the csny Chaos. Um, if you come from a community's background, you're, you're running communities on prem or you want the flexibility and control the communities gives you, you're gonna end up with the chaos. That's what we see our customers doing. If you just want to run containers, you want to use AWS to its fullest extent where you want the continue a P I to be part of the W A S A P. I said then you pick is yes. And I think one of the reasons you see so many customers start with the CSN, Forget is with forget to get the significant ease of use from an operational standpoint. And we see many start ups and you know, enterprises, especially security focus enterprises leaning towards farming. But there's a class of customers that doesn't want to think about orchestration that just wants. Here's my code, here's my container image just run my service for me and that's when things like happen, I can come and that's one of the reasons we launched it. Land is a little bit different. Lambda is a unique service. You buy into an event driven architecture. If you do that, then you can figure our application into this. That's they should start its magic. Uh, the container part, there is what land announced agreement where they now support containers, packaging. So instead of zip files, you can package up your functions as containers. Then lambda will run them for you. The advantage it gives you with all the tooling that you built, that you have to build your containers now works the land as well. So I won't call and a container orchestration service in the same sense of the CSC cso Afrin are but it definitely allows the container image format as a standard packaging format. I think that's the sort of universal common theme that you find across AWS at this point of time. >>You know, one of the things that we're observing at this at this event here is a lot of developers Coop con and Lennox foundations. A lot of operators to kubernetes hits that. But here's developers. And the thing is I want to ease of use, simplicity experience, but also I want the innovation. Yeah, I want all of it. When I ask you what is amazon bring to the table for the new equation, what would you say? >>Yeah, I mean for me it's always you've probably heard me say this 100 times. Many 1000 times. It's foggy fog. It's unique to us. It takes a lot of what we have learned about operating infrastructure scale. The question we asked ourselves, you know, in many ways we talk about forget even before belong pcs but we have to learn on what it meant and what customers really wanted. But the idea was when you are running clusters of instances of machines to run containers on, you have to start thinking about a lot of things that in some ways VMS but BMS in the car were taken away capacity. What kind of infrastructure to run it on? Should have been touched. Should have not been back. You know, where is my container running? Those are things. They suddenly started having to think about those kind of backwards almost. So the idea was how can we make your containerized bundles? So TCS task or community is part of the thing that you talk to and that is the main unit that you operate on. That is the unit that you get built on and meet it on. That's where Forget comes in and it allows us to do many interesting things. We've effectively changed the engine of forget since we've launched it. Uh, we run it on ec two instances and we run it on fire cracker. Uh, we have changed the forget agent architecture. We've made a lot of underneath the hood, uh, changes that even take the take advantage of the broader innovation, the rate of us, We did a whole bunch more to launch acronym trans on top of family customers don't have to think about it. They don't have to worry about it. It happens underneath the hood. It's always your engine as as you go along and it takes away all the operational pain of managing clusters of running into picking which instances to use to getting out, trying to figure out how to bend back and get efficiency. That becomes our problem. So, you know, that is an area where you should expect to see a Stuart done more. It's becoming the fabric of so many things that eight of us now. Uh, it's, you know, in some ways we're just talking a lot more to do. >>Yeah. And it's a really good time. A lot more wave of developers coming in. One of the things that we've been reporting on on Silicon England cube with our cute videos is more developers keep on coming on, more people coming in and contributing to the open source community. Even end users, not just the normal awesome hyper scholars you're talking about like classic, I call main street enterprises. So two things I want to ask you on the customer side because you have kind of to customers, you have the community that open source community and you have enterprise customers that want to make it easier. What are you seeing and hearing from customers? I know you guys work backwards from the customer. So I got to ask you work backwards from the community and work backwards from the enterprise customer. What's going on in their environment? What's the key trends that they're riding? What's the big challenges? What's the big opportunities that they're facing and saying for the community? >>Yeah, I start with the enterprise. That's almost an easier answer. Which is, you know, we're seeing increasingly enterprises moving into the cloud wholesale. Like in some ways you could argue that the pandemic has just accelerated it, but we have started seeing that before. Uh they want to move to the cloud and adult modern best practices. Uh If you see my talk agreement last few years, I've talked about modernization and all the aspects of modernization, and that's 90% of our conversation with enterprises, I've walked into a meeting supposedly to talk about containers, whatever half a conversation is spent on. How does an organization modernize? What does an organization need to do to modernize and containers and serverless play a pretty important part in it, because it gives them an opportunity to step away from the shackles of sort of fixed infrastructure and the methods and approaches that built in. But equally, we are talking about C I C. D, you know, fully automated deployments. What does it mean for developers to run their own services? What are the child, how do you monitor and uh, instrument uh, your services? How do you do observe ability in the modern world? So those are the challenges that enterprises are going towards, and you're spending a ton of time helping them there. But many of them are still running infrastructure on premises. So, you know, we have outpost for them. Uh, you know, just last week, you're talking to a bunch of our customers and they have lots of interesting ideas and things that they want to do without both, but many of them also have their own infrastructure and that's where something like UCS anywhere came from, which is hey, you like using Pcs in the cloud, You like having the safety i that just orchestrates containers for you. It does it on on his in an AWS region. It will do it in an outpost. It'll do it on wavelength, it'll do it on local zone. How about we allow you to do it on whatever infrastructure you bring to us. Uh you want to bring a raspberry pi, you can do that. You want to bring your on premises data center infrastructure, we can do that or a point of sale device, as long as you can get the agent running and you can connect to an AWS region, even though it's okay to lose connectivity every now and then. We can orchestrate a container for you over there and, you know, the same customer that likes the ease of use of Vcs. And the simplicity really resonated with that message really resonates with them. So I think where we are today with the enterprise is we've got some really good solutions for you in eight of us and we are now allowing you to take those a. P. I. S and then launch containers wherever you want to run them, whether it's the edge or whether it's your own data center. I think that's a big part of where the enterprise is going. But by and large, I think yes, a lot of them are still making that change from running infrastructure and applications the way they used to do a modern sort of, if you want to use the word cloud native way and we're helping them a lot. We've done, the community is interesting. They want to be more participatory. Uh that's where things like co pilot comes from. God, honestly, the best thing we've ever done in my order is probably are open road maps where the community can go into the road map and engage with us over there, whether it's an open source project or just trying to tell us what the feature is and how they would like to see it. It's a great engagement and you know, it's not us a lot. It's helped us prioritize correctly and think about what we want to do next. So yeah, I think that's, that >>must be very hard to do for opening up the kimono on the road map because normally that's the crown jewels and its secretive and you know, and um, now it's all out in the open. I think that is a really interesting, um, experiment and what's your reaction to that? What's been the feedback on the road map peace? Because I mean, I definitely want to see, uh, >>we do it pretty much for every service in my organization and we've been doing it now for three years. So years forget, I think about three years and it's been great. Now we are very we are very upfront, which is security and availability. Our job 000 and you know, 100 times out of 100 at altitudes between a new feature and helping our customers be available and safe. We'll do that. And this is why we don't put dates in that we just tell you directionally where we are and what we are prioritizing Uh, there every now and then we'll put something in there that, you know, well not choose not to put a feature in there because we want to keep it secret until it launches. But for the most part, 99% of our own myself there and people engaged with it. And it's not proven to be a problem because you've also been very responsible with how we manage and be very transparent on whether we can commit to something or not. And I think that's not. >>I gotta ask you on as a leader uh threaded leader on this group. Open source is super important, as you know, and you continue to do it from under years. How are you investing in the future? What's your plan? Uh plans for your team, the industry actually very inclusive, Which is very cool. It's gonna resonate well, what's the plans? Give us some details on what you're investing in, what your priorities? What's your first principles? >>Yeah, So it goes in many ways, one when I I also have the luxury also on the amazon open source program office. So, you know, I get the chance to my team, rather not me help amazon engineers participate in open source. That that's the team that helps create the tools for them, makes it easy for them to contribute, creates, you know, manages all the licenses, etcetera. I'll give you a simple example, you know, in there, just think of the cr credential helper that was written by one of our engineers and he kind of distorted because he felt it was something that we needed to do. And we made it open source in general, in in many of our teams. The first question we asked is should something the open why is this thing not open source, especially if it's a utility or some piece of software that runs along with services. So they'll step one. But we've done some big things also, I, you know, a couple of years ago we launched Lennox operating system called bottle Rocket. And right from the beginning it was very clear to us that bottle Rocket was two things. It was both in AWS product. But first it was an open source project. We've already learned a little bit from what we've done at Firecracker. But making bottle rocket and open source operating system is very important. Anyone can take part of Rocket the open source to build tooling. You can run it whatever you want. If you want to take part of Rocket and build a version and manage it for another provider. For another provider wants to do it, go for it. There's nothing stopping you from doing that. So you'll see us do a lot there. Obviously there's multiple areas. You've seen WS investing on the open source side. But to me, the winds come from when engineers can participate in small things, released little helpers or get contributions from outside. I think that's where we're still, we can always have that. We're going to continue to strive to make it better and easier. And uh, you know, I said, I have, you know, me and my team, we have an opportunity to help their inside the company and we continue to do so. But that's what gets me excited. >>Yeah, that's great stuff. And congratulations on investing in the community, really enjoys it and I know it moves the needle for the industry. Deepak, I gotta ask you why I got you here. Dr khan obviously, developers, what's the most important story that they should be paying attention to as a developer because of what's going on shift left for security day two operations also known as a I ops getups, whatever you wanna call it, you know, ongoing, you get server lists, you got land. I mean, all kinds of great things are going on. You mentioned Fargate, >>um >>what should they be paying attention to that's going to really help their life, both innovation wise and just the quality of life. >>Yeah, I would say look at, you know, in the end it is very easy developers in particular, I want to build the buildings and it's very easy to get tempted to try and get learn everything about something. You have access to all the bells and whistles and knobs, but in reality, if you want to run things you want to, you want to focus on what's important, the business application, that and you the application. And I think a lot of what I'll tell developers and I think it's a lot of where the industry is going is we have built a really solid foundation, whether it's humanity, so you CSN forget or you know, continue industries out there. We have very solid foundation that, you know, our customers and develop a goal of the world can use to build upon. But increasingly, and you know, they are going to provide tools that sort of take that wrap them up and providing a nice package solution After another great example, our collaboration, the doctor around Dr desktop are a great example where we get all the mark focus on the application and build on top of that and you can get so much done. I think that's one trend. You'll see more and more. Those things are no longer toys, their production grade systems that you can build real world applications on, even though they're so easy to use. The second thing I would add to that is uh, get uh, it is, you know, you can give it whatever name you want. There's uh, there's nuances there, but I actually think get up is the way people should be running the infrastructure, my virus in my personal, you know, it's something that we believe a lot in homicide as hard as you go towards immutable infrastructure, infrastructure, automation, we can get off plays a significant role. I think developers naturally gravitate towards it. And if you want to live in a world where development and operations are tightly linked, I think it after the huge role to play in that it's actually a big part of how we're planning to do things like yes, anywhere, for example, a significant player and that it would be a proton. I think get up will be a significant in the future of proton as well. So I think that's the other trend. If you wanted to pick a trend that people should pay attention. That's what I believe in a lot. >>Well you're an expert. So I want to get you a quick definition. What is get Ops, how would you define it? Because that's a big trend. What does it, what does that mean? >>Electricity will probably shoot me for getting this wrong. I tell you how I think about it. Which is, you know, in many cases, um, you when you're doing deployments are pushing a deployment getups is more of a full deployment. When you are pushing code to get depository, you have a system that knows that the event has happened and then pulls from there and triggers the thing as opposed to you telling it take I have this new piece of code now go deployed everywhere. So to me, the biggest changes that Two parts one is it's more for full mechanism where you're pulling because something has changed. So it needs systems like container orchestrators to keep them, you know, to keep them in sync. And the second part of the natural natural evolution of infrastructure score, which is basically everything is called the figures code. Infrastructure as code, code is code and everything is getting stored in that software repo and the software repo becomes your store of record and drives everything. Uh So for a glass of customers, that's going to be a pretty big deal. >>Yeah, when you're checking in code, that's again, it's like a compiler for the compiler, a container for the container, you've got things for each other. Automation is ultimately what we're talking about here. And that's to me where machine learning kicks in. So again, having this open source foundational fabric, as you said, forget out the muck or the undifferentiated heavy lifting. This is what we're talking about automation, isn't it? Deepak? >>Yes. I mean I said uh one thing where we hang our hat on is there's such good stuff out there in the world which we like to contribute to, but the thing we like to hang our hat on is how do you run this? How do you do it this in ways that you can uniquely bring capabilities to customers where there's things like nitro or things are nitro open stuff. Well, the fact that we have built up this operational infrastructure over the last in a decade plus or in the container space over the last seven years where we really really know how to run these things at scale and have made all the investments to make it easy to do. So that's that's where we have hanger hard keeping people safe, helping them only available applications, their new startup, that just completely takes off in over the weekend. For whatever reason, because, you know, you're the next hot thing on twitter and our goal is to support you whether you are, you know, uh enterprise that's moving from the main train or you are the next hot startup, that's you know, growing virally and uh, you know, we've done a lot to build systems help both sides and yeah, it's >>interesting if you sing about open source where it's come from, I mean I remember that base wouldn't open source wasn't open, I would be peddling software, there's a free copy of Linux, UNIX um in college and now it's all free. But I mean just what's changed now. It used to be just free software, download software. You got it now, it's a service. Service now can be monetized quickly. And what you guys are offering with AWS and cloud scale is you've done all these things as I don't have to have a developer. I get the benefits of the scale, I can bring my open source code to the table, make it a service integrated in with other services and be the next snowflake, be the next, you know, a company that could scale. And that is that's the that's the innovation, right? That's the this is a new phenomenon. So it also changes the business model. >>Yeah, actually you're you're quite right. Actually, I I like one more thing to it. But you look at how a lot of enterprises use containers today. Most of them are using something like this year, Symphony or GS to build an internal developer platform and internal developer portal. And then the question then becomes this hard to scale this modern and development practices to an entire organization. What is your big bank that's been around as thousands and thousands of ID stuff That may not all be experts are running communities running container is when you scale it out different systems that proton come into play. That was actually the inspiration is how do you help an organization where they're building these developer Portholes and developer infrastructure, developer platforms, How do you make it easy for them to build it? Be almost use it as a way to get these modern practices into the hands of all the business units, where they may not have the time to become experts at the modern ways of running infrastructure because they're busy doing other things. And I think you'll see the a lot more happening that space that's not happening in the open source community. There's proton, there's a bunch of interesting things happening here and be interesting to see how that evolves. >>And also, you know, the communal, communal aspect of not just writing code together, but succeeding, right, building something. I mean, that's when you start to see the commercial meets open kind of ethos of communal activity of working together and sharing a big part of this year's. Dakar Con is sharing not just running and shipping code but sharing. >>Yeah, I mean if you think about it uh Dockers original value was you build run and shit right? You use the same code to build it, you use the same code to ship it, the same sort of infrastructure interface and then you run it and that, you know, the fact that the doctor images such a wonderfully shareable entity uh that can run every girl is such a powerful and it's called the Ci Image. Now I still call him Dr images because it's just easier. But that to me like that is a big deal and I think it's becoming and become an even bigger deal over the years. I came from something before, Amazon has to work in The sciences and bioinformatics and you know, the ability to share codeshare dependencies, package all of that up in a container image is a big deal. It's what got me one of the reasons I got fascinated with container 78 years ago. So it will be interesting to see where all of systems. >>It's great, great stuff. Great success. And congratulations. Deepak, Great to always talk to you got a great finger on the pulse. You lead a really important organizations at AWS and you know, doctor has such a huge success with developers, even though the company has gone through kind of a uh change over and a pivot to what they're doing now. They're back to their open source roots, but they have millions and millions of developers use Docker and new developers are coming in dot net developers are coming in. Windows developers are coming in and and so it's no longer about Lennox anymore. It's about just coding. >>Yeah. And it's it's part of this big trend towards infrastructure, automation and and you know development and deployment practices that I think everyone is going to adopt faster than we think they will. But you know, companies like Doctor and opens those projects that they involved are critical in making that a lot easier for them. And then you know, folks like us get to build on top of that orbit them and make it even easier. >>Well, great testimony the doctor that you guys based your E C. S on Docker Doctor has a critical role in developing community. I run composed in their hub with dr desktop and we'll be watching amazon and and the community activity and see what kind of experiences you guys can bring to the table and continue that momentum. Thank you Deepak for coming on the >>cube. Thank you, john. That's always a pleasure. >>Okay. Mr cubes. Dr khan 2021 virtual coverage. I'm john for your host of the cube. Thanks for watching.

>> Announcer: Live from Las Vegas, it's theCUBE! Covering AWS re:Invent 2019. Brought to you by Amazon Web Services and Intel, along with it's ecosystem partners. >> Welcome inside Live here at the Sands as we continue our coverage of AWS re:Invent 2019 on theCUBE, day three. Always an exciting time I think to get a summary of what's happened here. Dave Vellante, John Walls, we're joined by a couple of gentlemen from Immuta, Steven Touw who's a co-founder and CTO. Steve, good to see you. >> Yeah thanks for having me. >> John Walls: And Rob Lancaster, who's the GM of Cloud at Immuta. Rob, thanks for joining us as well. >> Great to be here. >> First off, let's talk about Immuta a little bit. You're all about governance right? You're trying to make it simple, easy, taking out the complexity. But for those at home who might not be too familiar with your company, tell us a little bit about you. >> Yeah so the company started out, our roots are in the U.S. intelligence community. So we had been dealing with access and control issues for data for years and we said to ourselves, "Hey this product has to be useful for non-IC customers. "This problem has to exist." And with the advent of all these privacy regulations like CCPA, GDPR and of course HIPPA's been around for a long time, really our goal was to bring a product to the market that makes it easy to govern access to data in a way that you don't have to be technical to do it, you don't have to understand how to write SQL statements, you don't have to be a system administrator. We really bring together three personas, the users that want to get access to the data, legal compliance that needs to understand how the rules are being enforced or even enforce them themselves, and then of course the data owners and the DBAs who need to expose the data. So usually those three personas are at odds with one another, we bring them together in our platform and allow them to work together in a way that's compliant and also accelerates their data analytics. >> Could we talk a little bit about why this is such a problem? Because it is a big problem and especially today and in the cloud and we'll get into that, but you've got data lakes, data oceans now, you got data coming in, all types of data. Might be internal transaction data, it might be stuff in your data warehouse. And the organization say, "Well I want some other data. "I want to bring in maybe some social data." So certain data is, everybody can have access to. Certain data not everybody can have access to. And it's not necessarily just a security problem, edicts of my organization that need to be enforced. So first of all, is that sort of, the problem that you're solving? And maybe you can double-click on that a little bit. >> Yeah sure, so the market has evolved and is evolving. You allude to data lakes, I think you can point to the immersion of Hadoop, as a distributed infrastructure as kind of the original data lakes, or the most recent data lakes, where you can store all your data and run analytics on all your data, and now with the advent, with the emergence of Cloud you've effectively got very low, if not zero cost storage, and the ability to throw an unlimited amount of compute at the data. That, kind of in conjunction with heightened awareness for consumer data privacy and risk associated with data, has created a market for data governance beyond kind of the course-grained access controls that people have been using on their databases for decades now. >> Yeah I mean Hadoop really got it all started. You're right and despite all it's problems, it had some real epiphany-like technical innovations, but one of the things that it didn't worry about at the time was governance. So whose responsibility is this? Is it the CISO? That is essentially trying to build out a new cloud stack to provide security, privacy, governance and what does that stack look like? >> Rob: Go ahead. >> Yeah so it depends, it's actually pretty interesting that different organizations have tackled this different ways. So we have CISOs that maintain this. In other organizations we've got the legal compliance teams that want to do this but maybe don't have the technical chops. And the CISO doesn't necessarily know all the privacy rules that need to be enforced, so it's kind of moving into this world where security is about keeping the bad guys out and black or white access, like you either can see the data or you won't, but with privacy controls it gets into this gray area where there's a lot of technical complexity and there's a lot of legal complexity. So the organizations struggle with this 'cause you've got to play in that gray area where it's not just like I said, black and white. The analogy we use is, security is like a light switch, you're either in or you're out. With privacy controls you need to anonymize the data, you need to do privacy by design. It's like a dimmer switch where you want to play in that gray area and allow some utility out of the data but also protect privacy at differing levels of whatever you're doing analytically. So this can be challenging for an organization to wrestle with because it's not as, I would argue it's not as black and white as it is with security. >> Your question is in many cases it's the business that's running really fast and that is building these data lakes because they want to get value out of their data and the CISO or the compliance or risk officers are the ones that are telling them to slow down. So our product that Steve set up caters to both parties. It checks the boxes for risk, but it also enable the business to get utility out of their data lake. >> It's a very complicated situation because you've got this corpus of data that's organic and constantly changing and you have, you mentioned GDPR, you've got California now, every state's going to have it's own regulations so you've got to be able to sort of adjudicate that. And can you talk about, I mean obviously I've interviewed Matt Carroll, we covered you guys so I know a little bit about you, but can you talk about your tech in terms of it's ability? You've got a capability to do really granular level understanding and governance policies, can you describe that a little bit? >> Yeah sure, so when we talk about privacy controls, these are things like way beyond just table-level access. So instead of saying, "Hey you have access to this table or not," or even, "You have access to this column or not," you've got to go deeper than that, you've got to be able to make rows disappear based on what people are doing. So for example, we have financial institution customers that are using us for all their trading data and only some traders can see some trade desks and we manage all that dynamically. We're not making anonymized copies of data. Everything happens at query time, and depending on what compute you're using that all works differently, but then at the column level we're able to do these anonymization techniques like we could make numeric data less specific, we could use techniques like k-anonymization that allows analysts to analyze the data but ensures that small groups that exist in that data won't reveal someone's true identity. And we have techniques like differential privacy, which provides mathematical guarantees of privacy. So for example, one of our manufacturing customers set aside, these are the four analytical use cases that we're using our data for and under GDPR we want different levels of privacy associated to those use cases. So they could do that all with Immuta. So they could say, "When I'm doing this "I want these columns to be anonymized to this level "and these rows to disappear, but if I'm doing something, "maybe more critical, which our consumers have consented to "you know there's less privacy controls." And that all happens dynamically so the analysts could actually switch context of what they're doing and get a different view of the data and all of that is audited so we understand why someone's doing what they're doing and when they're running queries we can associate those queries to purpose. >> We've talked about customers of course and they're adapting right, to a new world? How are you adapting? I mean what are you learning about, in terms of policy regulation and governance, what have you, you said you came out of the intelligence community, high bar there right? >> Steven Touw: Yeah. >> So what have you done to evolve as a company and what are you, as the headlights basically for these folks, what are you seeing change that is going to require a lot of shift on the other side? >> Yeah so, I don't know if you have thoughts. >> I mean it's a great question but there's really two parts to it, there's what are we doing? But, what is the market doing as well, right? So if you think about when we got started, even a year ago people understood the technology, they thought it was cool but maybe a little nichey for government or financial services or maybe healthcare because there's well understood regulation, these vertical regulation. Even over the past year with kind of this increasing or heightened awareness for consumer data privacy, not just driven by CCPA and GDPR but kind of this, call it the Facebook Effect right? Cambridge Analytica has created this awareness within the general population for what are these organizations actually doing with my data? Before it was okay 'cause you give your data to Google and you get a better search result and you're okay with that but now they may be using your data for their own profit in different ways so this has created this rising tides effect for the overall market and we talk a lot about organizations using something like Immuta to protect their highly sensitive data. I like to think of it is their most valuable data, which may be highly sensitive but it also could be the crown jewels, trading data for a bank for example. So it's become about extracting value and operational benefit from data, whereas the risk offices are trying to lock it down in many cases. >> So, there's definitely a big problem and people are becoming more aware of it. I want to talk about where you guys fit into this whole cloud ecosystem. There's a sea change now, there's this sort of, this new cloud coming into play. It's not just about infrastructure anymore. I'll give you some examples, you got all these data lakes, maybe you got Redshift running, Snowflake's another one, you've now got this data exchange where you can bring data right in the Cloud bring in all different types of data, you're bringing in some AML and AI and it's all, really again, a complicated situation. So I see you guys as fitting in there and real need but can you describe where you fit in the ecosystem, what your relationship is with AWS, how do I engage with you? >> Yeah absolutely, so a core part of our value is that we are heterogeneous in terms of the environment that we support. We support a hybrid estate so the architecture of the product is fully microservices based so we can run on PRIM as well as on Cloud, on any Cloud, we support effectively any popular database system or analytical tool. So think of us as a data abstraction layer across a hybrid environment, so we're here because AWS is obviously the big boy in the market, they have market share, this is a strategic relationship for us. We're working very deeply with AWS field teams, particularly around some of their verticals, the verticals that align to our business and at the end of the day we're trying to define a category. It's a similar category that we've had for decades but with all the changes that are happening in data and regulation and infrastructure what we're trying to do is raise the level of awareness for the fact that Immuta has actually solved the problem that many of these risk officers are struggling with today. >> Yeah and from a, diving a little on the technical side of that answer is that we are, think of us as the way to enforce policy in the Cloud. We consider ourselves a Cloud-first software vendor. And you don't necessarily want one point solution in Redshift or another point solution on your on-premise Cloudera instance, whatever it may be where you're using your data and running analytics, you need to abstract the policies out into a consistent layer and then have them be enforced across whatever you're using. So you might be using Cloudera today and then you switch to Databricks tomorrow, that shouldn't be a hard change from you from a policy perspective. You just re-point Immuta at Databricks and all your policies are still working like they used to so it gives you this flexibility now to use all these different services that AWS provides 'cause as was stated in the keynote on Tuesday, there's no one database solves all. You're always going to be using a heterogenous set of compute to do your job in analytics so you need a consistent way to enforce policies across all of that. >> That's a great point. I mean I don't know if you saw the Vanguard guy today in the keynote, he basically said, "We rip down, or tore down our big data infrastructure "moved it to the Cloud, spun up EMR." I mean there's a perfect example of, you got to bring your governance with you. You can't have to rebuild that whole stack. Are you in the Marketplace yet? >> Steve and Rob: Yes. >> You are, great, awesome. >> Yeah we launched a managed version of Immuta over the summer on AWS Marketplace. We'll be launching a second one shortly and it's really, the offering that we have out there is really geared toward, for lack of a better term, democratizing data governance. It's actually free up to the fifth user so any organization can deploy Immuta in under 30 minutes through Marketplace and start protecting their data. >> That's great, we had Dave McCann on yesterday, he runs the Marketplace, he was telling us just now, private offers for every marketplace, so ICV, so that's from. Last question I have is, how do you see this all playing out? You got GDPR, remember you talked about California regulations, there's a technology component, any predictions you guys want to share? What's your telescope say? >> All data will be regulated data eventually. So if you're not thinking about that now you need to. So, at least that's our theory, obviously, so we think it's critical that you're doing that from day one instead of day 365 and in your migration strategy. And if you're not thinking about that it's going to potentially bite you in the ass. >> Yeah you're right, I mean Web 2.0 was the wild, wild west, there was no privacy, there was no regulation, GDPR started to get people focused on that and it's now a whole new world. >> Gentlemen thank you, appreciate the time and best of luck. I know you said you had the big launch this summer but good things are ahead no doubt. >> For sure, thank you. >> Thank you. >> Dave Vellante: Thanks guys. >> Back with more coverage here on theCUBE. You're watching AWS re:Invent 2019. We are live and we're in Las Vegas. (upbeat tones)

>>LA from Las Vegas. It's the cube covering AWS reinvent 2019 brought to you by Amazon web services and along with its ecosystem partners. >>Hello everyone. Welcome back to the cubes. Day three coverage of ADAS reinvent in Las Vegas. It's the cubes coverage. Want to thank Intel for being the headline sponsor for the cube two sets. Without Intel, we wouldn't make it happen. We're here extracting the signal from the noise as usual. Wall-to-wall SiliconANGLE the cube coverage. I'm John Feria with student men and men doing a keynote analysis from Verner Vogel. Stu, you know Vernor's, they always, they always got the disc, the format jazzy kicks it off. You get the partner thing on day two and then they say Verner flask could nerd out on all the good stuff. Uh, containers. Coobernetti's all under the hood stuff. So let's jump in a keynote analysis. What's your take? What's Verner's posture this year? What's the vibe? What's the overall theme of the keynote? >>Well, well, first of all, John, to answer the question that everybody asks when Werner takes the stage, this year's t-shirt was posse. So Verner usually either has a Seattle band or it's usually a Dutch DJ, something like that. So he always delivers it. The geek crowd there. And really after seeing it of sitting through Werner's keynote, I think everybody walks out with AWS certification because architecturally we dig into all these environments. So right. You mentioned they started out with the master class on how Amazon built their hypervisor. Super important. Nitro underneath is the secret sauce. When they bought Annapurna labs, we knew that those chips would be super important going forward. But this is what is going to be the driver for outposts. It is the outpost is the building block for many of the other services announced this week. And absolutely the number one thing I'm hearing in the ecosystems around outpost but far gate and firecracker micro databases and managing containers. >>Um, they had some enterprises up on stage talking about transformation, picking up on the themes that Andy started with his three hour keynote just yesterday. But um, it's a lighter on the news. One of the bigger things out there is we will poke Amazon about how open and transparent they are. About what they're doing. And one of the things they announced was the Amazon builders library. So it's not just getting up on stage and saying, Hey, we've got really smart people and we architected these things and you need to use all of our tools, but Hey, this is how we do things. Reminded me a little bit of a, you know, just echoes of what I heard from get lab, who of course is fully open source, fully transparent, but you know, Amazon making progress. It's Adrian Cockcroft and that team has moved on open source, the container group. >>I had a great interview yesterday with Deepak saying, and Abby fuller, the container group actually has a roadmap up on containers. They're so sharing a lot of deep knowledge and good customers talk about how they're taking advantage, transforming their business. In serverless, I mean, John, coming out of Andy's keynote, I was like, there wasn't a lot of security and there wasn't a lot of serverless. And while serverless has been something that we know is transforming Amazon underneath the covers, we finally got to hear a little bit more about not just Lambda but yes, Lambda, but the rest of it as to how serverless is transforming underneath. >>You know ain't Jessie's got along three hour keynote, 30 announcements, so he has to cut save some minutes there. So for Verner we were expecting to go in a little bit more deeper dive on this transformational architecture. What did you learn about what they're proposing, what they're saying or continuing to say around how enterprises should be reborn in the cloud? Because that's the conversation here and again, we are, the memes that are developing are take the T out of cloud native. It's cloud naive. If you're not doing it right, you're going to be pretty naive. And then reborn in the cloud is the theme. So cloud native, born in the cloud, that's proven. Reborn in the cloud is kind of the theme we're hearing. Did he show anything? Did he talk about what that architecture is for transformation? Right. >>Did actually, it was funny. I'm in a watching the social stream. While things are going on. There was actually a cube alumni that I follow that we've interviewed at this show and he's like, if we've heard one of these journeys to you know, transformation, haven't we heard them all and I said, you know, while the high level message may be similar is I'm going to transfer math transform, I'm going to use data. When you looked at what they were doing, and this is a significant, you know, Vanguard, you know the financial institutions, Dave Volante commenting that you know the big banks, John, we know Goldman Sachs, we know JP Morgan, these banks that they have huge it budgets and very smart staffs there. They years ago would have said, Oh we don't need to use those services. We'll do what ourselves. Well Vanguard talking about how they're transforming rearchitecting my trip services. >>I love your term being reborn cloud native because that is the architecture. Are you cloud native or I used to call it you've kind of cloud native or kinda you know a little bit fo a cloud. Naive is a great term too. So been digging in and it is resonating is to look, transformation is art. This is not trying to move the organizational faster than it will naturally happen is painful. There's skillsets, there's those organizational pieces. There are politics inside the company that can slow you down in the enterprise is not known for speed. The enterprises that will continue to exist going forward better have taken this methodology. They need to be more agile and move. >>Well the thing about the cloud net naive thing that I like and first of all I agree with reborn in the cloud. We coined the term in the queue but um, that's kinda got this born again kind of vibe to it, which I think is what they're trying to say. But the cloud naive is, is some of the conversations we're hearing in the community and the customer base of these clouds, which is there are, and Jesse said it is Kino. There are now two types of developers and customers, the ones that want the low level building blocks and ones who want a more custom or solution oriented packages. So if you look at Microsoft Azure and Oracle of the clouds, they're trying to appeal to the folks that are classic it. Some are saying that that's a naive approach because it's a false sense of cloud, false sense of security. >>They got a little cloud. Is it really true? Cloud is, it's really true. Cloud native. So it's an interesting confluence between what true cloud is from a cloud native standpoint and yet all the big success stories are transformations not transitions. And so to me, I'm watching this it market, which is going to have trillions of dollars in, are they just transitioning? I old it with a new coat of paint or is it truly a skill, a truly an architectural transformation and does it impact the business model? That to me is the question. What's your reaction to that? >>Yeah, so John, I think actually the best example of that cloud native architecture is the thing we're actually all talking about this week, but is misunderstood. AWS outpost was announced last year. It is GA with the AWS native services this year. First, the VMware version is going to come out early in 2020 but here's why I think it is super exciting but misunderstood. When Microsoft did Azure stack, they said, we're going to give you an availability zone basically in your data center. It wasn't giving you, it was trying to extend the operational model, but it was a different stack. It was different hardware. They had to put these things together and really it's been a failure. The architectural design point of outpost is different. It is the same stack. It is an extension of your availability zone, so don't think of it of I've got the cloud in my data center. >>It's no, no, no. What I need for low latency and locality, it's here, but starting off there is no S3 in it because we were like, wait, what do you mean there's no S3 in it? I want to do all these services and everything. Oh yeah. Your S three bucket is in your local AC, so why would you say it's sharing? If you are creating data and doing data, of course I want it in my S three bucket. You know that, that that makes that no, they're going to add us three next year, but they are going to be very careful about what surfaces do and don't go on. This is not, Oh Amazon announces lots of things. Of course it's on outpost. It has the security, it has the operational model. It fits into the whole framework. It can be disconnected song, but it is very different. >>I actually think it's a little bit of a disservice. You can actually go see the rack. I took a selfie with it and put it out on Twitter and it's cool gear. We all love to, you know, see the rack and see the cables and things like that. But you know, my recommendation to Amazon would be just put a black curtain around it because pay no attention to what's here. Amazon manages it for you and yes, it's Amazon gear with the nitro chip underneath there. So customers should not have to think about it. It's just when they're doing that architecture, which from an application standpoint, it's a hybrid architecture. John, some services stay more local because of latency, but others it's that transformation. And it's moving the cloud, the edge, my data center things are much more mobile. Can you to change and move over? >>Well this spring you mentioned hybrid. I think to me the outpost announcement in terms of unpacking that is all about validation of hybrid. You know, VMware's got a smile on their face. Sanjay Poonen came in because you know Gelson you're kind of was pitching hybrid, you know, we were challenging him and then, but truly this means cloud operations has come. This is now very clear. There's no debate and this is what multi-cloud ultimately will look like. But hybrid cloud and public cloud is now the architecture of the of it. There's no debate because outpost is absolute verification that the cloud operating model with the cloud as a center of gravity for all the reasons scale, lower costs management, but moving the cloud operations on premises or the edge proves hybrid is here to stay. And that's where the money is. >>So John, there's a small nuance I'll say there because hybrid, we often think of public and private as equal. The Amazon positioning is it's outpost. It's an extension of what we're doing. The public cloud is the main piece, the edge and the outposts are just extensions where we're reaching out as opposed to if I look at, you know what VMware's doing, I've got my data center footprint. You look at the HCI solution out there. Outpost is not an HCI competitor and people looking at this misunderstand the fundamental architecture in there. Absolutely. Hybrid is real. Edge is important. Amazon is extending their reach, but all I'm saying is that nuance is still, Amazon has matured their thinking on hybrid or even multi-cloud. When you talk to Andy, he actually would talk about multi-cloud, but still at the center of gravity is the public cloud and the Amazon services. It's not saying that, Oh yeah, like you know, let's wrap arounds around all of your existing, >>well, the reason why I liked the cloud naive, take the T out of cloud native and cloud naive is because there is a lot of negativity around what cloud actually is about. I forget outpost cloud itself, and if you look at like Microsoft for instance, love Microsoft, I think they do an amazing work. They're catching up as fast as they can, but, and they play the car. Well we are large scale too, but the difference between Amazon and Microsoft Azure is very clear. Microsoft's had these data centers for MSN, I. E. browsers, global infrastructure around the world for themselves and literally overnight they have to serve other people. And if you look at Gardner's results, their downtime has been pretty much at an all time high. So what you're seeing is the inefficiencies and the district is a scale for Microsoft trying to copy Amazon because they now have to serve millions of customers anywhere. This is what Jessie was telling me in my one-on-one, which is there's no compression algorithm for experience. What he's basically saying is when you try to take shortcuts, there's diseconomies of scale. Amazon's got years of economies of scale, they're launching new services. So Jesse's bet is to make the capabilities. The problem is Microsoft Salesforce do is out there and Amos can't compete with, they're not present and they're going into their customers think we got you covered. And frankly that's working like real well. >>Yeah. So, so, so John, we had the cube at Microsoft ignite. I've done that show for the last few years. And my takeaway at Microsoft this year was they build bridges. If you are, you know, mostly legacy, you know, everything in my data center versus cloud native, I'm going to build your bridge. They have five different developer groups to work with you where you are and they'll go there. Amazon is a little bit more aggressive with cloud native transformation, you know, you need to change your mindset. So Microsoft's a little bit more moderate and it is safer for companies to just say, well, I trust Microsoft and I've worked with Microsoft and I've got an enterprise license agreement, so I'll slowly make change. But here's the challenge, Don. We know if you really want to change your business, you can't get there incrementally. Transformation's important for innovation. So the battle is amazing. You can't be wrong for betting on either Microsoft or Amazon these days. Architecturally, I think Amazon has clear the broadest and deepest out there. They keep proving some of their environments and it has, >>well the economies of scale versus diseconomies scale discussion is huge because ultimately if Microsoft stays on that path of just, you know, we got a two and they continue down that path, they could be on the wrong side of the history. And I'll tell you why I see that and why I'm evaluating Microsoft one, they have the data center. So can they reach tool fast enough? Can they, can they eliminate that technical debt because ultimately they're, they're making a bet. And the true bet is if they become just an it transition, they in my opinion, will, will lose in the long run. Microsoft's going all in on, Nope, we're not the old guard. We're the new guard. So there's an interesting line being formed too. And if Microsoft doesn't get cloud native and doesn't bring true scale, true reliability at the capabilities of Amazon, then they're just going to be just another it solution. And they could, that could fall right on there, right on their face on that. >>And John, when we first came to this show in 2013 it was very developer centric and could Amazon be successful in wooing the enterprise? You look around this show, the answer was a resounding yes. Amazon is there. They have not lost the developers. They're doing the enterprise. When you talk to Andy, you talked about the bottoms up and the top down leadership and working there and across the board as opposed to Google. Google has been trying and not making great progress moving to the enterprise and that has been challenging. >>Oh, I've got to tell you this too. Last night I was out and I got some really good information on jet eye and I was networking around and kind of going in Cognito mode and doing the normal and I found someone who was sharing some really critical information around Jedi. Here's what I learned around this is around Microsoft, Microsoft, one that Jed ideal without the capabilities to deliver on the contract. This was a direct quote from someone inside the DOD and inside the intelligence community who I got some clear information and I said to him, I go, how's that possible? He says, Microsoft one on the fact that they say they could do it. They have not yet proven any capabilities for Jedi. And he even said quote, they don't even have the data centers to support the deal. So here you have the dynamic we save, we can do it. Amazon is doing it. This is ultimately the true test of cloud naive versus cloud native. Ask the clouds, show me the proof, John, you could do it and I'll go with, >>you've done great reporting on the jet. I, it has been a bit of a train wreck to watch what's going on in the industry with that because we know, uh, Microsoft needs to get a certain certification. They've got less than a year. The clock is ticking to be able to support some of those environments. Amazon could support that today. So we knew when this started, this was Amazon's business and that there was the executive office going in and basically making sure that Amazon did not win it. So we said there's a lot of business out there. We know Amazon doing well, and the government deals Gelsinger was on record from VMware talking about lots of, >>well here's, here's, here's the thing. I also talked to someone inside the CIA community who will tell me that the spending in the CIA is flat. Okay. And the, the flatness of the, of the spending is flat, but the demand for mission support is going exponential. So the cloud fits that bill. On the Jedi side, what we're hearing is the DOD folks love this architecture. It was not jury rig for Amazon's jury rig for the workload, so that they're all worried that it's going to get scuttled and they don't want that project to fail. There's huge support and I think the Jedi supports the workload transformational thinking because it's completely different. And that's why everyone was running scared because the old guard was getting, getting crushed by it. But no one wants that deal to fail. They want it to go forward. So it's gonna be very interesting dynamics do if Microsoft can't deliver the goods, Amazon's back in the driver's seat >>deal. And John, I guess you know my final takeaway, we talked a bunch about outpost but that is a building block, 80 West local zones starting first in LA for the telco media group, AWS wavelength working with the five G providers. We had Verizon on the program here. Amazon is becoming the everywhere cloud and they really, as Dave said in your opening keynote there, shock and awe, Amazon delivers mere after a year >>maybe this logo should be everything everywhere cause they've got a lot of capabilities that you said the everything cloud, they've got everything in the store do great stuff. Great on the keynote from Verner Vogel's again, more technology. I'm super excited around the momentum around Coobernetti's you know we love that they think cloud native is going to be absolutely legit and continue to be on a tear in 2020 and beyond. I think the five G wavelength is going to change the network constructs because that's going to introduce new levels of kinds of policy. Managing data and compute at the edge will create new opportunities at the networking layer, which for us, you know, we love that. So I think the IOT edge is going to be a super, super valuable. We even had Blackberry on their, their car group talking about the software inside the car. I mean that's a moving mobile device of, of of industrial strength is industrial IOT. So industrial IOT, IOT, edge outpost, hybrid dude, we called this what year? Yeah, we call that 2013. >>And John, it's great to help our audience get a little bit more cloud native on their education and uh, you know, make sure that we're not as naive anymore. >>Still you're not naive. You're certainly cloud native, born in the clouds do, it's us born here. Our seventh year here at Amazon web services. Want to thank Intel for being our headline sponsor. Without Intel support, we would not have the two stages and bringing all the wall to wall coverage. Thanks for supporting our mission. Intel. We really appreciate it. Give them a shout out. We've got Andy Jassy coming on for exclusive at three o'clock day three stay with us for more coverage. Live in Vegas for reinvent 2019 be right back.

>>Live from Orlando, Florida. It's the cube covering Microsoft ignite brought to you by Cohesity. >>Good afternoon everyone. You are watching the cubes live coverage of Microsoft ignite. I am your host, Rebecca Knight, along with my cohost Stu Miniman. We are joined by Sean Gifford. He is the senior infrastructure administrator, administrator and infrastructure team lead at Illinois mutual. Thank you so much for coming on the cube. Thanks for having me. This is really fun. Yeah. So tell us a little bit about Illinois mutual. >>Sure. So Alou Mutual's a a life insurance company. We sell life insurance Dai and several other insurance products. We've been around for a little over a hundred years now. So, uh, not myself, but uh, you know, the company. Um, and uh, we are based in Peoria, Illinois, uh, about 200 employees. And uh, we're uh, mostly uh, based on one headquarters there with a couple of their uh, uh, one of their, uh, co located dead center. >>And you are a senior infrastructure administrator. Tell us, tell our viewers a little about what you do. >>Sure. So basically a infrastructure admin means you do just about everything now. Just seems that way sometimes. Um, so, uh, my team, uh, handles everything from windows system, ministration, um, individual systems like a, your exchange, SharePoint, you know, things like that that we would use on prem. Um, too. Also outside of the on prem side, any of our cloud management, et cetera. All right, so, so Sean, you know, this shows decades old and started out at the windows administrator and you know, what's now office or O three 65, uh, at its core. Uh, so have you been to the show before or is this your first time? Uh, on one time, watch. Never on before. Okay. So, but you know, I, I'd love just your viewpoint on Microsoft before we get into some of the environments. Cause of that, you know, Microsoft, you know, started out as people knew kind of windows and some of their apps, but now, you know, the sprawling company with, you know, apps everywhere in the cloud, the edge and the data center, uh, you know, such a big footprint is what they do. >>How you personally in Illinois mutual look at Microsoft? Well, Microsoft is definitely a major partner for Illinois mutual. Right. I mean, we are a very big Microsoft shop. Does that mean that everyone, uh, you know, thinks that Microsoft is the best that every product? Of course not, but, uh, they do a lot of things and they do them really well. So I mean, we obviously rely on them not only for our on prem active directory, but then replicating that out to, to as your, um, you know, I mean our email much just people like might not like to admit it is still one of the most essential pieces of the infrastructure. Um, and that's around on exchange. So I mean, honestly, uh, as much as a, you know, people might want to say Cisco networking is like the backbone of the network. Uh, my Microsoft technologies really are kind of the backbone as far as I look at it. >>Okay. So you still have exchange, you know, in your own shop. You haven't made the move. DOE Microsoft pressure in there. >> Yeah, I know, right? Um, so, uh, no. Yeah, we're, we're still on prem. Um, we have our O three 65 account and we're, um, full disclosure. So, you know, I've been in it for 20 some years, but, uh, uh, been into Eleni mutual for about four. When I was in consulting before only mutual. I did a lot of, uh, in a cloud consulting and getting people on. So it felt really weird to me, but that's, uh, you know, coming into Eleanor mutual where, uh, at the time they came on, uh, it was, the cloud in general was like a bad word. Um, so, and getting past that culture-wise has been a little bit of a struggle. >> Oh yeah. I would, I'd love you to just step back for a second. >>You know, you work for a company that's over a hundred years old, uh, so, you know, exchange in cloud and everything like that is, you know, been around for a very short piece of the overall company. So tell us some of the, you know, what are some of the changes, the pressures going on? Oftentimes there's M and a involved in pulling all those things together. So, uh, you know, Illinois mutual as a company, what are the, what are the drivers and stressors on, you know, your, your, your, your organization? >> Yeah, well first and foremost, data security, right? Um, getting it, uh, any data so that it's fully encrypted at rest in transit and all that sort of thing so that, uh, you know, and, and you don't have to worry about it, uh, leaving anywhere once it's on someone else's prem. Right. Um, it has always been a big part of it. >>Um, trust I mean in is really what it just comes down to. Uh, when you, when you're selling life insurance policies that, you know, go for the life of a human being, you know, that's a pretty longterm relationship. And, uh, going with something, uh, especially a technology like that, that is considered as you say, you know, new to the game, uh, has, has been a struggle for sure. I mean, we're, uh, just to give you an idea, we're a still on mainframe and, uh, we have now to be, to be fair, we have a sizable, uh, uh, project for getting, uh, things moved off of the mainframe, but that, you know, is 40 plus years old. Getting, getting that moving, uh, to, you know, try and hop just into the end of the 20th century, let alone the 21st is always a little bit hard. >>So talk about some of the specific challenges of managing legacy infrastructure, managing tape and, and sort of what, what you do as more of a on the Vanguard of technology in terms of how you're leading your organization to make changes that are, that are much needed. >>Yeah. Uh, so yeah, when, when I came in on, in fact until just a few months ago, you bring up the example of tape. I mean, uh, we had been doing tape off to a, on off-prem, a site that, uh, had been just the way they did it, right. And, uh, um, as a joke, when some people an earlier, um, as the new crew came in, uh, one of the things that we instituted is a, uh, that's how we always done it. Jar. Um, and, uh, instead of people having a swear jar, right, they'd have to throw money in a anytime. They didn't say, I can't do it cause that's how we've always done it. And that's always been just that struggle, you know, with tape, you know, why is it that we're sending our tapes, why are we sending tapes at all? But why are we sending them to this place that's a, you know, three miles away from our place and calling that disaster recovery. >>Um, so I, I, that has been one of the major struggles for sure. Um, getting through that. But, uh, I've been really impressed, uh, culture-wise with the fact that, uh, people are really starting to, to get in line with it. You know, they're seeing the, the advantages that we're bringing. Um, w when you have a cloud strategy that's well thought out and, uh, isn't, uh, at least inherently a, you know, tied to a given vendor as your AWS or whoever it might be. Um, and, and you're not making decisions for cloud just for the sake of calling it cloud. It makes a big difference. I think. So, uh, as you, as you started to embrace cloud, uh, how did things like data protection and security, you know, what stayed the same? You know, what, what things did you need to rethink as you roll those out? >>Data protection changes completely, right? Um, first of all, uh, you know, everyone had that, uh, idea that if it's in cloud, of course it's completely protected, right? It's not right. And so getting people to understand that, uh, as they say, Oh yeah, we're going to, you know, do this new sass offering. It's totally, you know, they take care of everything, the applications on them. You don't have to touch it. Right? Well, no, that's not really the case. You know, that they can lose a data just like anybody else. So getting through pieces like that on the, on the cloud side is, has been a struggle. But, uh, getting into just even normal or excuse me, newer, um, on-prem technologies has, has meant changing completely the way we're doing a lot of things. Um, the, uh, it was becoming harder and harder, especially as we moved data sets off of the, uh, uh, mainframe side to keep up with a lot of those replication timeframes and things like that because, uh, it, as you push more data through what is still a small pipe and it's never big enough, um, it, uh, it became everyday nightmares. >>So it's been a struggle. >>So when you are, when you, when you come to the conclusion that you need to make a change and you need to look for other kinds of solutions, how do you go about finding the right vendor for the problem that you're trying to solve? How do you find the best in class? Right. And that's, >>that's been an interesting piece with w with alimony mutual and, and, uh, having spent time at VARs for the first part of my career, I was used to, you know, answering things like RFPs and whatnot. Right. Um, and we don't necessarily do it within an RFP process, but, uh, honestly conventions like this one and stuff is how I like to do it. Um, you know, we get really stuck in the day to day doldrums and stuff like that too, right? As much as you're trying. And your goal might always be to, you know, get things to at least the cutting edge if not the bleeding edge. Uh, you really need to, you know, be at a places where you can learn about new new technologies now. So when it comes to us, we end up finding a lot of our vendors like that. And, uh, you know, cause we don't really want her to necessarily rely on, you know, the sales people or, or even really our, our, you know, sales people from a VAR or anything like that. >>It's about trying to find, uh, that, that third party knowledge to, to really understand what's the best thing for the needs and the, uh, pain points that you're having. And that's Sean, can you bring us in through, can you tell us, you know, which solutions you were, uh, you were deciding between and how you ultimately came to your final decision? Yeah. So, uh, so we looked at, uh, several different vendors. Um, when it came to our, uh, data protection, uh, analysis, we had looked at a beam for awhile. We had looked at rubric. Um, we had, we had looked at, uh, uh, of course, uh, you know, trying to continue things along with our current vendor at the time we should have been con ball. Um, and we did, uh, we did an M U a you right. a utility attribute analysis. Yeah. Uh, and we, uh, set that up and, uh, just tried to really compare and, uh, uh, you know, what are the actual things we really wanted, what were the selection criteria we have and grading each vendor on those things. >>Um, and ultimately that's what it took to be able to get it through to, you know, to our executives and, and whatnot, uh, building an algorithm that, uh, that, that looked at all those pieces and then, you know, as really address the pain points we were having, you know, uh, not just as a Jeep cause yes, as always a big thing. Right. But is it gonna replicate in time? Is it, is it going to, uh, reduce our overhead, uh, that we're in, that we're experiencing right now? Am I going to have to keep on a full time contractor just to, you know, do my data protection. So, all right, so you ended up choosing Cohesity. So what was it about Cohesity that separated it from, uh, from, from all the others? Yeah, so Cohesity, um, I had pretty given up, uh, when I did the analysis I was talking to you about a couple of years ago. >>Um, I looked around and nobody could quite fit the square peg into the round hole that I was trying to make it work. Right? I wanted a lot of things and nobody had exactly what I was looking for. Can we sit? He was the first one that could really do most of what I wanted to do. Uh, as an example. Um, being able to replicate your data, but while keeping it encrypted on both ends and but still having dedupe and compression and all those things built in, into the platform and, and weight, it's actually searchable wallets in those States, right? I can do like a Google type search and be able to find exactly what I'm looking for. Made a huge difference and it cut it down. Uh, you know, time wise, not only on the administrative effort but also when I had to do a restore and we had a major project just a, a month or so ago where, uh, I had my DBA doing a backup, uh, during a rollout. He accidentally set at the backup to go with the wrong side at the wrong data center. Everyone was kind of freaking out, right? What are we gonna do? We restored it across data centers, across the handling, kept within our timeframes. I was, that's the type of thing, type of thing that really makes it different stuff. So, >>so, so talk about some of the results that you've seen since implementing this. >>Yeah, so replication, um, that I brought up a couple of times, but, uh, it was a really big problem that we would take. For instance, um, I'll take SQL as an example, right? Our SQL data, we would do a data mirroring, right? So it replicated across our wind line for that. We would, uh, we would do a, uh, primary storage replication. So in this case, a nimble Sans that would replicate across with snapshots and then our actual data protection. Uh, so the same exact data would have to replicate across one tiny land line three times for every a replication. Um, since putting in Cohesity, we have experienced an actual, I was blown away when we actually calculated the results, but it was actually a four times increase in replication efficiency. Uh, it just allowed us to do a whole lot more without buying more land bandwidth. So this is a big deal for us. >>So, in terms of this show, as you said this, this is really helpful for you to go and meet different kinds of companies that you might not even know exists. There are new entrance all the time. So what are you going to bring back with you when you go back to Illinois mutual next week? What are some of the things that have stuck out to you, resonated most with you? >>Yeah, so I'm, I'm really encouraged and even with just Cohesity, for instance, I've talked to a, I'm actually met up with a couple of the engineers that I've talked with them, um, who had one of them and even put out a, uh, a new, uh, feature request for us. And he was telling me before lunchtime about some new features available that I can start to change up some of my jobs. I've, I'm really excited. I was texting my, my, uh, data protection, uh, you know, secondary admin, uh, uh, you know, texting furiously to them, we can do this. And, you know, I'm really excited about that. But, uh, honestly on the other side, is these your side? I'm, uh, really, uh, excited to learn about some of the things that we can actually implement, uh, even with older infrastructure, uh, in trying to pull some of those things, uh, into a cloud platform in ways that actually make sense and aren't gonna lose us money in the longterm. So I'm happy with that. Thank you so much for coming on the cube. Thank you very much. It's been fun. I'm Rebecca aid for Stu Miniman. Stay tuned for more of the cube.

>> Live from Miami Beach, Florida it's the CUBE covering VeeamON 2019 brought to you by Veeam. >> Welcome back to Miami everybody, you're watching the CUBE the leader in live tech coverage as we go out to the events and we extract the signal from the noise, this is day one of VeeamON 2019 the CUBE's third year covering Veeam first year we were in New Orleans, last year Chicago, very cool and hip location here at the Fontainebleau Hotel, I'm Dave Vellante with my co-host Peter Boroughs. Colin Chatelier is here, he's the manager of storage and compute for Europe at Rabobank, Colin thanks for coming on the CUBE it's good to see you. >> Yeah glad to be here. >> So tell us about Rabobank, what are you guys all about? >> Okay, so Rabobank is obviously a bank we have two main focuses, first of all we're trying to be the biggest high street bank in the Netherlands, biggest retail bank in the Netherlands and we've got 7.3 million customers there, in an adult population of 14 million so that's not bad. And secondly the Netherlands is only of certain size and we're not going to grow it that much so the biggest part of our new business is international. And that's the bank is all focused on providing food and agriculture expertise loans, FX, spot work, anything that can help people or help businesses improve their efficiencies and get more food from spade to plate. >> So what are some of your, the drivers in your business that are affecting your technology strategy? >> Drivers in a business I guess again we've got two different parts of the bank I should probably explain, so two years ago we brought the IT of those two different parts of the bank together. >> [Dave} That's the Retail And The International? >> The retail and the international and if you think about it the international is all wholesale work, the retail is all high street banking so the retail those people really want to see their data, they want to see it on the, on the web, their check and balances, transferring pocket money to their kids and if that doesn't happen, that's a tragedy and embarrassing. So we can't be responsible for that as a result one of our watch words is always on, so we need to make sure that data is always available and we need to make sure that systems are always up for them. Part of that really is, occasionally it won't always be on so you need to be able to recover very quickly and getting a product that's simple to use for recovery and fast to recover was really part of that strategy, that's where Veeam came in. >> So when you had to merge those two IT operations, obviously it was more than the data protection side of things, but talk generally about what the challenges were but then specifically about the data protection piece. >> Okay, so bringing two IT departments together of course gives you a choice, "am I going to use product A or product B?" "Or sometimes product A and product B and not C." That gave us an opportunity to really do something that's not that common in the backup world and introduce a bit of churn, especially in retail environments, we have monthly backups, sorry especially in wholesale we have monthly backups. And those monthly backups go for anything from one year to ten years. So trying to get away from a backup product where there's ten years worth of legacy there, to recover, it's very tricky. But bringing the two banks together gave us that opportunity to say, okay well we'll invest in in a move and we really put a whole series of criteria together to try and figure out which one we were going to use. We moved from vmware and Hyper-V we're moving everything to vmware and from, we have a number of other backup products which I won't name because we're moving away from them. And Veeam was the winner there. Now, why? We needed something that would recover quickly we needed something that would scale to the enterprise, we have 13 thousand VMs being backed up today. We needed something that we could deploy reasonably quickly and without too much effort and actually when we deployed Veeam, we started off in November last year and by the end of January we were finished. Now there were a couple of thousand VMs on Veeam at that point >> Hold on, I'm sorry so it took you two months to effectively move out an old backup infrastructure and move in a new one? >> Sort of correct yes, for dailies. For monthly's we haven't touched that yet so we decide to just bite off one chunk at a time. >> Because you've got ten years of legacies with your monthly's... >> We have at least ten years, yeah >> All right but still >> That's pretty quick >> Yeah, yeah yeah >> Now what about cloud, every conference you go to you see the sign, cloud data management everything is cloud, cloud, cloud it used to be in your business, the financial services business, that cloud was an evil word >> Yeah >> Is it still? What's your clod strategy and how does data protection fit in? >> Well we have a strategy of public cloud first, that's a lot easier to do for new applications than it is for existing applications of course. So it tends to be that the existing applications are waiting for a technical refresh or are waiting for a an application re-write and new applications are going straight into the cloud. How we are protecting that, at the moment most of our data is held on prem where as a lot of our applications which can easily be refreshed and re-published is held on the cloud so we, those guys, the dev ops teams are performing their own backup, their own recovery. >> So are you able to sort of, for the on prem stuff are you trying to sort of make that cloud-like so it'll substantially mimic the cloud are you able to do that? You know, Peter you're always talking about bringing the cloud experience to your data, is that something that you're able to do or is that just sort of good marketing tagline? >> It's something that we are just starting to do again, so a year ago we had a private cloud that was just on the verge of being deployed, but we decided then that strategically we'd mothball that and encourage everybody to go to public cloud, and not confuse them with two different choices. That's proving a little difficult so one of the things that we find is development teams who are currently in the cloud can develop things with software defined infrastructure but when they try and interface with the data or with some of the systems that are on prem, then they come to a dramatic holt and they have to wait for the normal on prem processes to kick through. So what we're looking at doing now is we just started a new process or a new project an on prem, proof of concept, on prem cloud that will interact with the off prem cloud and give the cloud-like experience. So we'll see. >> So you have that challenge of agile meets waterfall and now you're trying to create some kind of equilibrium or really trying to modernize the on prem, what's the strategy there? >> Well I don't think it's agile meets waterfall I think its dev ops meets traditional process. It's and, yeah... (laughter) But how are we going to do it you say? >> Yeah, well I guess what I'm getting to is are you gong to find sort of a common ground or are you really going to try to drive that sort of dev ops mentality into the legacy process? >> We'll, continue to have a traditional or legacy, depending on what you want to call it, environment there, but we'll also have a software to find infrastructure environment on prem, if this proof of concept works, it's being built at the moment or being designed at the moment based on a vmware stack. >> What role will containers and microservices play in terms of facilitating that transformation? >> At the moment we have containers on prem which are coming with applications but we don't have a specific container platform which we're offering as a service on prem That's just where, there's containers off prem of course you know as Euro Cloud. >> Right, right, so for the on prem stuff what does that do for you and where do you see that going? >> For containers? >> Yeah >> At the moment we have a policy of not providing a container service on prem >> Oh, oh, oh, sorry, I heard wrong, sorry. Okay so that's not a direction that you're going currently? >> No but it maybe, because we're feeling our way forward I think. >> As you think about, for example banks or financial services companies have been at the Vanguard of a lot of digital business practices because you're core offering is data and how it gets used so is your overall business starting to rethink this notion of backup and restore from something that's just there to you know, make sure the data's available to becoming an essential strategic capability that can span between the two modes that you're describing but a common approach to making sure the data assets aren't compromised by vendor relationships, by application development style, by locations, is that, are you thinking in those terms of a federated approach to ensure the services on the data that you need? >> Okay well that was a very long question >> Yes >> But it's quite a short answer, yes we're thinking about it, no we haven't done it yet. So, but I think you're absolutely right, one of the problems could be for example we deploy in I don't know as your AWS, Google, and we fall out with one of those cloud providers and we try and move our backup data from provider A to provider B, is it transportable? You know, is, have we got the same policy that's been deployed in each of them so that whole thing needs to be... >> You don't want to recreate that problem that you got with those ten years of monthly backups with the new stuff too? >> Exactly, yeah yeah, we've already made that mistake. >> What are the other challenges, well but you made it for good reason, that was the state of the technology at the time and you had to have hardened processes and that was how you did it you know, ten or fifteen years ago. What are the other problems or challenges that you hear from when we talk to financial services organizations is if their data exists, they're data companies as Peter said but their data exits in hardened silos, again for good reason, you had to protect that data it was mission critical family jewels type of stuff >> Regulatory reasons >> Now as you transform into the so-called digital business everybody wants access to that data and so you've got that tough balancing act so, is that obviously a challenge for you, how are you dealing with that challenge and data protection generally was unique to each of those silos, so how are you thinking about data protection going forward in terms of busting those silos? >> Well, I don't think we've eve had silos in data protection, I think we've, our data protection has been uniform across the two banks of course >> Yeah, right. >> So now we've brought them together again, we have what, different retention characteristics, different ways of using the product. But over the last year and a half, two years we've pretty much brought in the same processes. But I don't think that any application on prem or any that will be on the private cloud or on the prem cloud will have anything different. It will use the same product, the same processes and perhaps have more access by the development teams, dev ops teams to be able to fire off their own backups at the right time. >> You're talking from a data protection perspective >> Perspective, yeah >> And then potentially other things like microservices or containers over time? >> Yeah >> Yeah, okay what's happening at the show here? Things you've learned, anything you've seen that's exciting you? Any announcements? >> Well, it's early days isn't it? It's early days so I think the, the best thing for the show so far was last night when it, going on the boat, meeting some of the other execs and sharing some experiences with them. I think, you know one of the things I always think is the best practice comes from worst experience and I don't want to have all that worst experience myself I wouldn't mind it from everybody else. (laughter) So I think you can learn more in an hour in a social situation then you can perhaps in two hours in the conference room there. >> So what are yo hearing from your peers, what are they doing, some of the challenges they're facing this digital business stuff is it real? How are they dealing with it? >> Okay, my peers, I think what they're feeling is that the traditional backup solution, the traditional backup providers are just not quick enough on their feet, agile in a real sense rather than a >> Quotes >> Quotes and marketing sense yeah, and I think the traditional providers tend to be, less grateful for the business perhaps. You know I heard about the number of new customers that Veeam are getting today but they seem to give a lot of attention to those new customers. Now deploying 13 thousand vms in a relatively short period of time we needed a lot of help from Veeam to overcome the obstacles as we hear them and they were there when we needed them and you know that makes a difference I think especially when you're protecting your data and you need to be ale to restore that data you need a partner not a vendor. >> So it's as much the relationship as the technology is what I'm hearing? >> I don't think we would get into bed with a vendor who wasn't a partner as well. >> Or in manner respects it's almost like Veeam understands how to solve the problem and their technology is a way of doing it easily, and simply, and reliably? >> Exactly yeah. >> I want to follow up on that because some of the large companies that can infer what you're talking about, they might have big established direct sales forces, meat eating guys that are in the field that just go belly to belly. You know Veeam all channel, all indirect how are they successfully partnering with you in ways that the other guys may not be with that type of go to market model? >> So we used a company called Pro*Act a reseller to buy into Veeam, I guess Veeam trained them up well because they had all the information at their finger tips and they represented us in the negotiation with Veeam, so it took away perhaps some of the conflict that you would get in an early situation. And then when we needed the direct help from Veeam, Veeam stepped up to the board and started giving that direct help and not cut out the reseller but the reseller wasn't needed anymore at that point. >> And that was help from a technology stand point or a business terms stand point or both? >> Technology, just over coming the problems, you know a big organization has got a lot of networks a lot of lans, v-lans, and we need to be able to punch holes through those v-lans so it's quite interesting to be able to be told up front where we need to punch. >> Make this work >> Yeah >> Great, all right Colin, well thanks very much for coming to the CUBE, it was great having you, give your final thoughts on Miami, you're coming in from out of town and you got the tour last night on the boat, and what'd you think and impressions of the conference? >> Well Miami first of all, it looks like a nice place to live as we cruised past all of those gigantic homes, I didn't notice anyone in them so, perhaps one's going cheap. The conference it looks good, I am always surprised by how big it is, it's my second event and yeah, they've got a hell of a lot of customers and seem to be loyal customers as well, nobody has a bad thing to say. >> Were you here in Chicago last year? >> I wasn't I was here in New Orleans >> New Orleans, yeah, two years ago, all right great well thanks very much of coming to the CUBE we appreciate it >> Thank you >> All right keep it right there everybody, we'll be back with our next guest you're watching the CUBE live from VeeamON 2019, be right back. (upbeat music)

>> Voiceover: Live from Las Vegas, it's theCUBE, covering AWS re:Invent 2017. Presented by AWS, Intel, and our ecosystem of partners. >> Hey, hello everyone. Welcome back to day two of live coverage as theCUBE's exclusive analysis coverage of AWS re:Invent 2017. I'm John Furrier, co-host on set one with Stu Miniman here, analyst at Wikibon. And we got two sets here at Amazon re:Invent The first time we've done two sets, so much content. We have our directors' set with captains' chairs over there getting all the community content. And all the folks doing the innovation here at AWS. Stu, a lot to talk about. We've had companies come through, tell us about their innovation with AWS. But the bottom line is Andy Jassy's keynote just went off. I mean, he's like the energizer bunny. He keeps going and going and going. Announcement after announcement. I broke that Forbes story, laid out what ended up turning out to be the core messaging. Tons of stories on SiliconANGLE.com around Andy Jassy's exclusive interview that we had about a week and a half ago, prior to re:Invent. He's geared up. He's giddy up, as they say, his favorite word. He's taken on the competition. He took Oracle head on and called Oracle a company that abuses their customers. That was hard core, "abuse." He used the word, "abuse." In this culture, he could have just said, "predator." He's that kind of competitive vibe. Microsoft kind of called out Vinder 2 on the chart. Laying out the sets and services. Amazon putting the aggressive we're real stamp out there. What's your thoughts? You got the only analysis. >> So first of all John, this show is always impressive. One of the ones that I look forward to more than almost anything for the entire year. 43,000 people here. I spent the last day and a half in the analyst sessions. There wasn't a single analyst that was like, "Ho-hum." There are so many announcements. You go down the list and the number 73rd announcement on there, you're like, "I'm not sure." "There's this group of customers that's been waiting "for them and is going to transform their business. "It's potentially going to crush certain parts "of the industry." There's so much happening, there's lots of fanboys here. It's tough not to get exuberant about what's going on. Surprised to see Andy punching a little bit of competitors. Sure, he takes jabs at Larry Ellison every year. You know the red stack stuff, you know database. They're making huge piece on the migration. But talking a little bit more about Google and Microsoft, "Well they must be real competitors," a lot of people are saying, "if they're actually putting them up there, "going through the numbers," so many things we want to dig into here, and throughout the next two days. >> Yeah man, and the fact that he talks about the competitors means that it's still on his mind, although they're still full steam ahead. The thing about Jassy though, getting to know him, his style is not just talk, he walks it more than he talks. He'll only talk trash if he's got a solution in his back pocket. And what's different this year is, the bravado has gone up and the rhetoric around Oracle specifically has been really hard core. I mean he called them an abusive partner to their customers. That's a line in the sand. Those are fightin' words but then he goes on stage and essentially rolls out a series of database options. He spent a lot of time talking about databases, Stu, in his keynote. >> John, we got Aurora Serverless totally talking about, "How many companies, how many resources do you have focused "on managing the infrastructure under your database?" So, RDMS, paired with Serverless, absolutely game changer. People are super excited about it. There's so much going on. But I mean, John just take alone, the one thing they put up, it was one of the Gartner slides, and what's Amazon at now, 44% up from 39%? So there's talk about growth rates and everything like that. Amazon chugging along, dominant in their space, and so many pieces. >> That's the one critique I would give Jassy, the one thing I don't like about his keynote, and I don't like in general about Amazon is, they talk new guard, new guard, old guard is bad. They're using Gartner slides, too. I mean, you couldn't old guard then Gartner. Magic Quadrant has nothing to do with the presentation. It was infrastructures of service, didn't include platform as a service, didn't include SAS. I mean, they're using the wrong scoreboard. Now, I think he throws it up there because buyers kinda use Gartner as kind of a bellwether but they're not, they're old guard. He's got to get better stats and I'm pressuring them to get the stats. What is the scoreboard for cloud? >> Well, john, you know one of the things we always look at, there's two days of keynotes. Today is really the enterprise. Enterprise, Andy says, we're in kind of the early part of massive adoption from enterprise. He's talking enterprise-speak and yeah, they go to the Gartner Magic Quadrant, absolutely. John, what's happening in the software world? I mean, that's really where this is is the change of what's happening in the software. Amazon's at the vanguard. There was plenty of things that I'm sure developers will love here, but it wasn't the big focus of today's keynotes. >> To me, the canary in the coalmine is developers. The canary in the coalmine for the big mega trans are also venture capitalists. The canary in the coalmine of the startup entrepreneurs, those alpha entrepreneurs and last night we had a chance. I sat down multiple one on ones with some venture capitalists. We had some here on theCUBE, then we went to the Greylock, Amplify, and then IVP party and haD a chance to talk to some people. The general sentiment is this, we are in a sea change. It's like a tsunami. The whole beach is exposed before the big wave comes in, Stu. The top venture capitalists like Greylock and others, are looking at this going, "the models have changed." The funding model, the dynamics and everyone is going, "holy shit." That's where this renaissance in software development is happening and the top guys on the entrepreneurial side is saying, "the new way to do it is, "take less funding, I need to get in market fast "with a product, I need a partner that's gonna get me." The rest of the market is deer in the headlights, Stu. They're like, "wait a minute, do I compete with Amazon? "Do I partner with Amazon? "Which could do I use?" They get caught rearranging the deck chairs and they're taking their eye off the ball which is software. >> So john, the struggle I've been hearing, you know, you talked to a bunch of Amazon customers already this week. If you're in the enterprise and you're building your strategy, you got to write it on a whiteboard or an etch-a-sketch because things are changing so fast. The thing I was really looking forward to is what were they gonna be in cubernetties and you know, server list, huge promise, what are they delivering? What was the proof point? And I have to say, definitely impressed with what I saw so far. >> What's the top? I mean first of all, you're in the analyst meeting and I heard feedback from the analysts like, "we can't even comprehend all these things." I want you to boil it down for the folks not here and they're gonna be reading some blog posts and still getting a lot of coverage to go through certainly on theCube and SiliconANGLE will keep on. Bottom line, what's the executive summary in your mind, Stu? What should people pay attention to? What's the most important story? >> It is impossible to give one story to everyone but let me start with, Andy lays out, in your interview for Forbes and what he talked about in the keynote, kind of a compute continuum so if you're just using compute instances, there are some new big ones. If you want your AI stuff, your big data, they've got new compute instances. The bare middle offering is basically the fruits of what they have to do to be able to get vmware on AWS to work and they're now making that same instance available for those that want to be able to do other things with it, bring their own hypervisor, things like that. I could tell you, it's a massive... It's like 72 logical cores, huge amounts of memory and it is gonna be wicked expensive because it's not like most of the instances with Amazon, pick between these six versions, it's one. Here's a server and it's a big server, it's gonna be really expensive. We're gonna be digging in with a couple of vmware executives on that piece but the newer stuff, containers. The last year we've been hearing, Amazon's behind on cubernetties, Amazon's behind on cubernetties. They joined the CNCF for a couple months. Now they have EKS so full supporting cubernetties but here's the nuance, I talked to the people that run that group and ECS is not going away. They're there, we've seen all the time is they say, "oh here's the standard and we're gonna fully embrace it, "but our proprietary's version." Cubernetties doesn't scale the way you need, you gotta do our thing. Cubernetties, we can't integrate it with all our services, you know use our services. Andy was like, "hey, we're gonna give you a choice." Underneath that they had farpoint, I'm sorry fargate. Fargate is the underlying level that basically allows me to take rather than, you know, managing at the server level which really I was managing virtualization before. Now I'm managing at the compute level. When containers came out and Docker was buzzing, it was, "this is the new atomic instance "of how we manage things." Fargate really cooled down at that lower level so you have (mumbles) I keep saying fargate at the bottom level, now I've got ECS or cubernetties and I've got things like istio on top of that. You and I are gonna be at the CNCF show next week, CubeCon and everything like that. I'm sure Amazon is gonna suck a lot of the air out of that with what they're doing and gosh, I haven't even talked about serverless yet. >> First of all I mean, it's hard to boil it down like you said. You can't even breathe at this point, it's so exciting but the thing that is a success at Amazon also could be an Achilles heel because it has complexity so I noticed in messaging was everything to everyone or is everything to everything. It's got this vibe going on... >> Stu: Everything is everything. >> Everything is everything. A lot of people have been criticizing the software business on the community side, supplier side of trying to be everything to everyone. But that's what Amazon's doing, right? They're basically saying, "we're gonna give you everything "but it's not mandated that you choose one." So talk about that dynamic because the people critiquing them and saying, "well they're just throwing all this stuff out there, "it's just a feature." Is it viable? >> It's a great point and right, if you look at traditional enterprise vendors, it was, "oh my god look at that catalog "and all these thousands and thousands of skews "that are out there." I believe the number I heard is in the Amazon services, there's like 30,000 services out there and how do you, as a company, manage that? I talked to one global web company and I gave that. How do you keep up with this? How do you know what to do? And he's like, "well, we reach a certain price point. "I've got two TAMs, they help us work through this." There's no way any one person or even any company could be an expert on this. That's where Amazon needs to get consultative. That's where SIs need to come in. I'll tee up, that's where serverless really comes in because there's certain pieces that, as Andy talked about in the keynote, you know lambda is going everywhere. It's getting integrated into the environment. There's certain pieces of the stack that before I needed to choose my compute instance. I needed to figure out how much memory. I have to do all of these kind of things. If I choose a certain layer of integration, Amazon is gonna take care of those things underneath so absolutely they hear loud and clear that they want to simplify things. What was it, last year light sale was one of the big announcements. There's so many things. Spot instances had a huge growth to be able to drive down costs this year. I mean, dozens and dozens of features that Andy talked about this morning. Serverless, John, really massive wave. (mumbles) >> Let's connect the dots. There's a lot to talk about, we've got Werner Vogles keynote tomorrow. That should be really geeky and tech under the hood, but what Jassy is putting out there is a lot of the stuff you're mentioning but also he's got a wireless camera for facial recognition, they've got transcribe recognition, poly, lex, so the sets of services that are new and new guard like and the use cases from this are interesting. A lot of different connective devices so you see a little IOG. They're kind of laying out like this is a landscape. You know, we're gonna do statcast for MLB, NFL. We got edge devices, databases for S3. The programming model, the new assembly model. It's very modular. This is like the building blocks approach. It's not just the lambda and S3. You've got wireless cameras that do facial recognition. >> Right, because John, I talked to a couple customers that are doing serverless and they're working with Amazon and it's like, "oh well, where do you think of serverless functions as a service?" And they're like, "well really I have you know..." One customer was like, "I have a bunch of my own services "and I have APIs I write and now I can just call into "various Amazon services so it makes..." John, the whole API economy that we've been talking about for many years, you know, this is really Amazon having this come to fruition. I should be able to write my own APIs that can program to many of Amazon's APIs. If Dave Vellante was here, I'm sure he'd be talking about API creep because there's so many pieces but you know, Amazon, Andy is saying, "we have everything of the best." I think a lot of he's trying to attack there. Many customers we've talked to, they're going multi-cloud. What does that really mean? It's Amazon the primary. When are they using Google, Microsoft, Oracle, IBM? There's so many pieces. >> Stu, it's impressive to me. I get called a fanboy all the time, but I just call it as I see it and Amazon is crushing everyone else, in my opinion. There's no doubt about it. When we get more data from Microsoft or Google, then we'll compare, you know, and Oracle. They're not even talking so like they're hiding. They're building again. The tsunami is coming. The war is here. No doubt there's a cloud war and Microsoft is in it to win it. Google's hardcore so this is game on. What Amazon is doing is they're integrating new kinds of interactivity. You start to see Twitch more here. You see the NFL demo on stage that Andy did. The actual data that they're getting from the sensors. They're integrating the application so you know Goldman Sachs never goes on stage and does a testimonial. The guy's basically giving a lovefest for Amazon. That's Goldman Sachs. So you have new software models that are coming. This is something I think nobody's seeing. I think you talk to hardcore dudes. The infrastructures now with serverless is enabling creativity and I think this renaissance is for real. >> John, you nailed something. It's Sandy Carter who you know and have had on theCUBE many times, joined Amazon within the last year, talked about how Amazon, not just AWS but Amazon, is helping customers with buzzword digital transformation but how do you innovate? It's not just Amazon Web Services, there's so many things that the broader Amazon portfolio can tie into, you know. Absolutely, it's impressive. Customers always said it used to be like, "oh how can I have a network that's kinda like Google's?" Now it's "how can I innovate like Amazon?" >> Well Stu, we go to all the shows. We didn't go to Oracle Open World this year. Again, they're kind of silent right now because they don't want to talk to the press because they're gearing up. You've got Oracle, Microsoft, certainly very aggressive, more aggressive than Oracle, but Jassy is laying the line in the sand so we're gonna watch the new guard old guard thing play out. Microsoft is absolutely moving the needle. They are coming up to Amazon. There's no doubt that they're in the sights, in the rearview mirror. I think everyone else is really gearing up. You've got Alibaba cloud in China coming to the US. This is going to be exciting. The cloud game has got so much action in it. It's got the geeky under the hood and the sexiness of the application, Stu. I'm really super excited. >> Yeah, there's just so much information, you know. Choose your category. Choose where you're going. There is just no shortage. Everybody is geeking out. The big complaint is like how there's too many people. If you go standby, you go an hour ahead of time and you're still there and it's spread out, you know. The Aria and the MGM, there's all these things there. We're here at the heart of what used to be the one facility and now it's just spread out so much so you really need to kind of choose your focus, dig on in, and you know, we've got so many interviews. >> Stu, we're gonna want to wrap this up by saying the company that's behind us, you can't see or maybe you're able to see in the shot that's winning that no one's talking about much because they're just winning is Intel. They sell more chips. They sell more compute. The compute game is where it's at. You've just Intel kind of quietly under the surface and this growth is only gonna help Moore's law and everything else. >> John, it's just like the old Intel inside, you know. Amazon does more. They're buying more compute, whether that's standard compute, it's containers, or serverless at the end of the day, there's some Intel chips underneath almost all of it today. >> Intel's not putting their strategy up but it's clear to me through observation and talking to them, is that they're targeting the cloud as that new inside moment. They want to power the top clouds. They already are. They're kinda quietly keeping their nose clean and have their head down and power all those clouds. TheCUBE here powering all the data here at AWS re:Invent. I'm John Furrier, Stu Miniman. Day two kickoff, more great coverage. Stay with us, two sets here in Las Vegas. We'll be right back. (digital music)

>> Announcer: Live from Manhattan, it's theCUBE covering AWS Summit New York City 2017. Brought to you by Amazon Web Services. >> Welcome back live to Midtown Manhattan, along with Stu Miniman, I am John Walls. We're here on theCUBE and we're wrapping up our coverage here at AWS Summit. Again, kind of tough to get a feeling for just how many folks were here. But some were in that seven, eight, $9,000 range and most of them are still here I think, out on the show floor here behind us. Good keynotes this morning. Good programming throughout the day as well and then really good buzz here on the show floor. So, good day I think, for AWS Stu, and we've talked about it, it is kind of remarkable to see the number of people who turned out for a regional show. >> Yeah John, you know I've been to some shows in the Javits Center where people wander in, they get some swag, they look for a free beer and a t-shirt and then that's kind of their... These people are, you know, kind of diggin' in. I know there's a bunch of sessions been going on. The pavilion here has had all these little breakout sessions. There was one on, you know, VMware and VMware and AWS and it was, you know, not only the seats, which usually it was like oh come on in, you know, come get a prize and things like that. >> John: Right, right. >> There was five rows of people standing pressed in and asking questions like, "How do I set up "the networking on this, how does this work?" Things like this, so it's like a mini AWS re:Invent, so their big show, one we've done theCUBE at a number of years, I've been there a number of years. I commented on our intro that this is larger than the first Amazon re:Invent that I went to like four years ago. >> How about that, in that short of period of time? >> Yeah and that's one of the things about Amazon and public Cloud in general and all of these technologies, the growth and the speed of change is just amazing. It used to be we talked from a software standpoint, it was like okay, I'm tied to that Intel release of every 18 months that I'm going to click out, then it was like okay, we kind of go to a yearly cycle. Now it was more like well not only is a lot of software released, you know, continuous integration and continuous deployment CICD, which sometimes it's every six weeks, sometimes it's daily, but Amazon's releasing new features every day. We talked in the intro, oh there were three major releases and we had the guy I'm talking about, the machine learning stuff and he's like oh you mean the three announcements that we had in machine learning? And we're like oh, we only heard about one of those. Wait, you had a couple others underneath there? Oh, let's talk about the F1 compute instance and the FPGAs. There's always so much in Amazon and when you go into any environment in the little boxes that they put in there and you start peeling the onion, it's impressive. >> It is. >> And there's just depth and customers are interested in it and people are using it. You know, I was used to so much in my career where something gets announced and a year later it's like hello, is anybody using this? As opposed to at this show, a bunch of the announcements, I already talked to a bunch of people that have been in private beta, they've been testing this out, they're excited about it and because it's just so easy to get on all of these new features. >> Right, and I mean, we've seen it here, we've heard from many people here from a lot of different walks of life. You mentioned some of the past shows, AWS Public Sector. I was at that not too long ago in Washington, D.C. and you see a company that has its units very focused and very driven and doing very well and the right relationships. Buzzword, serverless, right? We heard it a lot today. Serverless applications, serverless computing. From more than one source, we heard it from several folks and so obviously this is not just a popular piece of nomenclature for the day, this is a trend, a theme that's going to be evolving and maturing over the next year or two. >> Yeah I mean everybody for the last couple years they've kind of been looking at it with their head sideways. I'm not sure that I understand it. We talked to two companies today, it was IOPipe and A Cloud Guru that their company, their IT infrastructure was all built on serverless, and they both got funding recently, so this isn't just oh yeah, some developer does some cool stuff on the side, microservices, buzz buzz, things like that. We talked to FICO is using serverless for their admin functions, certain areas they're not ready to roll it out across the board, governance compliance, things like that, I need to understand it. It is still very early, but that being said, there's a lot of usage in it. Last year it was oh, if you want to develop for the Alexa platform, the Amazon Echo type thing, that uses serverless, so we're seeing lots and lots of cases. That really is a new way of architecting the way to roll out really microservices driven applications and when we talk about the big challenge of our time, it's distributed architectures and how do I have new applications? We talked to a number of companies moving from the old way of doing my application to building new application, that's the long hole in the 10. This is not something that happens overnight, but I can start playing with it in a much smaller form factor and do it for pennies not years and millions of dollars so there is really serverless has really in many ways eclipsed kind of the container's discussion for the hot buzz in the industry. Kubernetes fits into that whole picture, but not just serverless in general, but AWS Lambda is the leader of the pack out there and you know, yet another reason why Amazon just going strong, their revenue still doing well, keeps adding to what they're doing and you don't hear many people griping when you walk around the show floor as to what they wish they had. It's a very positive experience. >> And you hear criticisms saying, "They only had 42% growth year to year." It's not what it used to be. But 42 as you know, most people would gladly be in that position. What about your thoughts about the maturation of the Cloud? You mentioned transformative and things are evolving and growing, where do you put it now? Is this second phase, next phase, late phase? Where are we in terms of what's happening and what AWS is making happen? >> So a couple years ago we know that Cloud is here to stay. There's still the joke a friend of friend of mine in the keynote. 20,000 people registered for this event and it was like well, I guess this Cloud thing might have legs, so we are still early in the overall wave of this. I've been in a number of conferences this year that we've done theCUBE on. You talk about the infrastructure companies and companies that have built on virtualization. They said, "We went through a decade "of tremendous growth with virtualization." Virtualization is still very important. Amazon builds their infrastructure not on VMWare, but they leverage virtualization technologies, but the next 10 years will be this huge wave of really that going up the uptake of the S curve so we're past really the classic crossing the chasm. We're in the early majority going to mid majority of people using it and there's just no shortage of new use cases that people can use it for. We've talked to lots of companies that start up and say, "I'm just leveraging Cloud because it's easy." THere's VCs that look at that as how to get involved and as I've just mentioned before, there's companies now that are building themselves on serverless so this is even kind of the next piece that follows these waves we are early in Cloud if you look at kind of overall ham of IT, public Cloud is still a very small piece. At Wikiban we've been talking for the last I think two years about what we really the multi Cloud environment. There's true private Cloud and there's public Cloud and how do I get that operational model that I can scale, I can build really a distributed architecture? I shift more to an operational expense rather than a capital expense, so it's flexibility, it's agility, it's speed, and it's very interesting, exciting times. There's no more exciting time to be in tech than today, maybe tomorrow, because we know the only thing constant is that the pace of change keeps increasing. >> It does increase and two big drivers of that, we heard again today, artificial intelligence, machine learning. How would you rate or how would you characterize the impotence that they're providing in terms of pushing the envelope? >> Absolutely there was some good announcements today, I don't know that there's any today that you'd say, "I'm going to look back five years from now and be like, 'Wow, I was in New York City when that was announced.'" >> John: Right, but just in general? >> But in general, let me say one of the things that I didn't hear today, I was was little bit disappointed, I mentioned it in the open, we talked to a couple of the partners here, you know the Kubernetes option. Adrian Kovrov got up on stage. He had written a blog post there was an announcement last week, no mention of where Kubernetes is going to fit in here. Definitely they're committed to it, they're making developments, but maybe something will come out in beta soon. I would expect by the time we get to the re:Invent show in November that we will have more clarity here. I was hoping to hear that more and that was something that didn't come out of Amazon, but they're embracing it. Customers are asking for it, developers, there's a ground swell on that, so they're involved with it. Lambda and serverless absolutely. Amazon is at the vanguard, they're pushing things forward. Machine learning and IoT, Amazon is at the table. It is still very early, they're driving a lot of things forward. Yeah, you know, you get enough, it's like come on, there's no BitCoin discussed today, why is that? So some of the other vendors there, but Amazon is in all the appropriate conversations. There's not any wide gaps that you'd say customers like hate these. Amazon's not in this base and I expect them to and therefore I'm going to choose another platform provider. That being said, it's not a winner-take-all, it is a multi Cloud world, most of these environments, we talked about even if I do serverless, if I architect them a certain way I can move them and make changes, Kubernetes the same way. So Amazon, one of the things that they pride themselves on is they need to keep proving to their customers every month that they are the ones that they fuse on because otherwise it is relatively easy to make a change, but they're the big dog, they got the leadership position, and it's always impressive to watch them. >> It is and you speak of impressive. re:Invent, is just what, two and a half months away, three months away, we'll be out there as well. Huge show, probably one of the largest shows by far that we attend and looking forward to that and seeing you down the road. Always a pleasure to be with you. >> Thanks so much. >> And great job as always. Stu Miniman does an outstanding job providing analysis for Wikiban, so on behalf of Stu and all the crew here at theCUBE, we thank you for joining us here at the AWS Summit in Midtown. We've been live at the Javits Center. Have a good week and we'll see you down the road here on theCUBE. (light electronic music)

>> Announcer: Live from San Francisco, it's theCUBE, covering DevNet Create 2017, brought to you by Cisco. >> Hello everyone, welcome to day two of theCUBE's exclusive coverage Cisco Systems' DevNet Create, their inaugural event where they're put in the foray into the developer community and the open source community, really looking at DevOps, cloud-native, with data. Great move by Cisco. We're going to analyze it again here on the opening day and review yesterday a little bit and talk about what we think is happening here and give you the take on it, our angle, and extracting the signal from the noise. I'm John Furrier with my co-host Peter Burris for day two, head of research for SiliconANGLE Media, also, general manager of Wikibon.com. Check out Wikibon.com, great research, some free, most of it. The good stuff is behind subscription firewall via client. Check it out. Your business will do great because of it. Peter, quick plug there. Get that out of the way. But, let's talk about Cisco. >> Thank you, John. >> We said yesterday and kind of played out Cisco has an opportunity to transfer and grow their core development community, DevNet, which is only three years old, is very robust, it's the heartbeat of Cisco right now, it's the core constituency for Cisco Systems. We're talking tier one elite networking guys, the plumbers, (laughs) pack it movers, whatever you want to call them, they've been designing networks from internet scale to today, everything from Voice over IP, you name it, they've been doing it and the network has been the center of the action and the data center. It's been the most critical asset for availability, operational support, and stable. But not very adaptive, not very agile (laughing) so, you know, now-- >> Almost by definition. >> And that's the purpose is the network guys drive the network and enable opportunities, but now that shift has happened. It's DevOps application developers are driving change to the network and the big conversation is what does it mean for Cisco? What does it mean for their communities? And we were saying that this is an opportunity to extend. We had the folks first from RedHat on yesterday talking about how when you have things come together, there's opportunities. There could be a collision or there could be an opportunity so, can use data science and computer science come together. That is now big data. That's changed the game in the world. Cisco now has DevOps and networks coming together. Applications and infrastructure. This is an opportunity for Cisco. Your take from yesterday, do you feel it? Do you think it's real? What's your take? >> Well, it's real. Digital transformation's happening and it's happening because people can now do things with data that they couldn't do before and they're starting to. So, that's the base of digital transformation, but the reality is, in a digital business, you're going to be by definition, almost inherently, highly networked. And your ability to move data where it needs to be when it needs to be there to whom it needs to be so that they can consume it, is emerging as an essential capability. But, you're not going to do that manually everywhere. You're not going to do it manually in the infrastructure, it's just too complex. And you're certainly not going to do it manually in the applications. And so, you're absolutely right. Being at that edge, being at that margin between how the network does things, how the network is the basis for very high-quality capability for distributing application componentry and how the data then flows over that network under control by applications is really where the next five years are going to be, a lot of the new value is going to created and it's great to see so many developers here that are actually creating code at a conference that's being sponsored and put forward by Cisco. >> The AppDynamics is certainly a force in function for Cisco. Great acquisition. They paid a pretty penny for it, but it could've been more had they gone public (laughing) given the market that's in. So, AppDynamics comes in, Cisco now has a cloud-native direction, still work to do, but they're doing it in a way that's not all Cisco. They're not coming in with Cisco washing, "Hey, this is Cisco." They're really doing it right. They come in, 90% of the sessions are not Cisco at all. It's all community-based. Is this a working strategy for Cisco? Do you see, and what would you advise them because this is important. They have to do this, in my opinion. I think it's a great move, personally. But now, the innovator's dilemma is DevNet's exploding. You've got DevNet's beautiful community, it's growing. It's growing really fast. But, now you have Devnet Create. What do they do? >> Well, so, let's talk about the AppDynamics acquisition just for a second. As with everything, in talking about a big company acquiring a company of any size, you always have observe and see how it's going to play out, but it's got a lot of potential. One of the places that I think it's got a significant potential is in that AppDynamics, as a technology, does a great job of capturing metrics about application performance on networks and as we think about how the market and technology is going to be reconfigured so that networks can be better, more planful, more predictive about what kinds of things the applications are going to need, being able to surface that kind of data is going to be really, really crucial to setting the next round of conventions and that will lead to the answer of your question. If we think about where the market needs to go, we have full stack developers, we have networks. They talk to each other, but they don't engage in a meaningful way as often as they should and I think it's time for us to start thinking about above layer six, that layer seven, start breaking down layer seven and saying, "Well, that's where that full "distributed stack development's going to take place," so that we can start seeing how data will be reused, application services will be reused, componentry will be reused across a variety of different use cases and having that kind of a new structure defined and laid out so that it is built on the presumption that there's going to be a significant network in a way, in the middle of it, I think is going to be really important. Doing everything with RESTful APIs is really important, but I think the industry needs to get a lot more intelligent about how we're really going to build these things and not just presume that there is no network connection. There is a network connection. There has to be one and we have to build that into the architectures that we put forward in the future. >> So, programmable infrastructure as the DevOps ethos, that's what Cisco's proposing and saying they will and are becoming. I get that. I think that's the winning formula, but let's take that concept with what you just said. You're implying that okay, with now distributed infrastructure at scale, with AppDynamics and other things, the notion of a developer changes 'cause now, Cisco folks and their developer community, now is not just by itself, it's integrating in with the rest of the communities. That changes the notion of full stack developer because when you go hire, "I need to hire "a full stack developer," this stops really at the database or how low does it go? So, I think, you brought this up yesterday, not on camera, but after when we were kind of talking, is that this is an opportunity to reconfigure the new definition of a full stack developer. >> Yeah, I think so, John, and you know, one of the things we did talk about was when Susie was on camera yesterday, was the idea that yes, we can, as we introduce software-defined infrastructure, the infrastructure becomes programmable and so, we now see Cisco, CLI-type people thinking about programming instead of just doing command line work. We see it happening in the server world and the CAD world, et cetera, so there's no question that that notion of programmable infrastructure is becoming very real. What we're talking about is stepping it up and having it be available to developers in new and different ways, but utilizing new conventions that start to suggest that for time purposes, latency purposes, security purposes, think about organizing your application componentry in new ways so that the underlying network and infrastructure can provide even more robust capabilities and more consistent capabilities so that we can see further future ways of integrating these things together. And I think that's where this ends up. >> Interesting point about these network opportunity is that Cisco and networking guys are not a stranger to services. Network services have been around for a while. When you look at what came out of yesterday's conversation and this is consistent with a lot of our CUBE interviews we've done with cloud-native players like Amazon and everyone else like AWS and VMware and everyone else, is everything's a service. So the question that I have for the Cisco world is can they move quickly enough to a services model in this notion of a new network engineer, network developer, infrastructure developer? How well can they get transitioned over while preserving their core base of developers? >> I think they have to, so, and it's a great question and we're not going to have the answer from here, but I think one of the things we do need to start seeing and we're starting to hear rumblings of it is the idea that the network has to become more intelligent in the context of the services that the application developer utilizes that run above it and so, the network doesn't necessarily have to be made explicitly or overtly available, but it has to be intelligent enough so that it can provide new capabilities, new service levels, new security levels, et cetera, in a response to the way the services are invoked in the patterns of operation. You know, in many respects, we talked about this a little bit yesterday, John, I think we used to have infrastructure defined by hardware and that served the industry okay for a long time and in the last 10 years, we started talking about software-defined infrastructure. So, we moved from hardware-defined infrastructure to software-defined infrastructure and that's kind of where we are today with the idea of the network becoming more programmable. I think as a consequence of big data and recognition where digital business is going, where data really is the asset and the idea that we're going to build applications and then find data, we're going to start with data and then, decide what we need to do with that data through big data and other types of things, we're literally talking about, in the next five years, about something that we might call data-defined infrastructure where the data, the characteristics of the data, the location of the data, the way it's used, the way it creates value for the business, having a dominant impact on how the infrastructure gets configured and I think that's a, has enormous opportunity for Cisco. >> Yeah, Pat Gelsinger talks about the software-defined use and that's still part of the VMware strategy. This is kind of where it's going so I'm going to put you on the spot. >> Peter: Uh-oh. >> After yesterday's interviews, what did you learn? What did you walk away that's either net new information to you or something that validates something that you've been thinking about or had been researching and analyzing? >> Well, the first thing I'll note and somewhat self-servicing is Wikibon is known for being at the vanguard. We tend to be a little bit out in front and imagining what, how technology disruption's going to play out in response to the new use cases and business issues and it's always good to talk to people that are smarter than I am to start validating some of our positions. So, we heard a lot of, yesterday, that was pretty strong validation at a technical level and a couple of big vendors that are along the lines of what we're talking about so that was very useful. >> What did they validate? What specifically-- >> well, this notion of, for example, the notion of data-defined infrastructure. The idea that data in the future is going to be seminal to thinking about how infrastructure's intelligent, really configured based on the needs described within the data and the metadata. So, we heard that from a couple different people. Another thing that we heard was that there is a, that this not just, that Cisco's vision here of having developers and network jocks coming together to thinking about what the impact's going to be ultimately on how we create business value out of technology is something that's not just a Cisco pipe dream. We had four or five partners on yesterday, including a number of them who are quite sizable, RedHat, for example, who trumpet and reflect and are promoting similar types of concepts. And the other thing that I heard and I'm particularly going back to the PubNub conversation we had, it's really nice to see technology that is been around for a while, that works well, be really reconceived to be able to do new and different things and in particular, PubNub was talking about a deterministic Pub/Sub network infrastructure. Very interesting stuff, it's going to be really important. And the reason why I think that's important is because the lessons that we've learned in the past are not necessarily dead because we're going through transformation. One of the biggest things that I think we all need to take away from this is that we think about a computer, we think about my iPad, your Mac, a Dell machine, whatever else is, we think about that as computer, we think about a server as a computer, but the reality is, if you think about what we're trying to do through conferences like this is internet-scale computing where we look at the entire internet as a computer. Any data, any process-- >> Network's critical. The network is the essential element of it because that's what weaves the whole thing together and I think what we learned yesterday is the lessons of the past, some are going to be gone and we have to get rid of them, but a lot of them have more to do with business models. This is, we're still talking about computers and we're still talking about computer science. >> Great summary of your learnings. I learned, just to wrap up our intro segment, I learned a couple things. Observations that just popped out at me, one is Cisco has a lot of women in tech, engineers, so that was a very cool thing for me 'cause we always look at our index and theCUBE interviews over the thousands of people interviewed and still, only 18% have been women interviews. (laughing) Do more. That's our kind of passion. But they're smart and they're really knowledgeable and it's really awesome to see great women being featured. Certainly, Susie's a rockstar leader as CTO. The other thing that I learned in talking to Abby Kearns, Executive Director at Cloud Foundry and Dan at Cloud Native Foundation is open source is changing significantly-- >> Peter: It's a fair point. >> And open source communities used to be, "My community, yeah, we're winning!" And it's always been a gamer mentality or win-lose and I think now, with the horizontally-scalable cloud, you're starting to see a cross-pollination of players cross-pollinating and participating in multiple horizontal communities that together, is an expansion of the overall open source ecosystem. I think this is a new next generation dynamic that takes the tier one open source position, which really, it's our generation. We're seeing open source become tier one, not tier two, it's a tier one software where people's business models are now a open source. MuleSoft, these companies going public, multiple IPOs since RedHat just recently going public, I think you're going to see more business models on open source and open source is changing and I think cloud is a big part of that. >> That's a great point, John. And the only thing I'd add to it, since it's a great summary, is that we also heard yesterday that the very notion of leadership in the open source universe is starting to change. As people come up with new business models, they're also exploring with new ways of providing leadership that doesn't violate the basic precepts of open source because if there has been an issue in the open source universe, it's been that open source does a great job of, if you have a convention and a statement about where the product is, like an operating system, open source can do an equal or better job of it. If you start talking about use cases and a lot of business uncertainty and how open source can sometimes spend its time looking at each other, looking at other projects and filling holes in between projects and not getting to that use case. >> We've known for a while, it's not new to us that open source where the innovation is and that's certainly seeing companies have their employees there and that's where recruiting is going on, as well. But, I'm being more specific. I think the changing game in the open source community is going to be one that's going to reflect the structure of the industry and I think Cisco jumping in with this event will change the game in the makeup of open source and the projects because if you believe that the network is programmable, and that the cloud is one big computer operating system, then you have to believe that that's going to be a new domino that drops and falls and I think the impact of Cisco making programmable internet, programmable networks to developers will have a cascading effect that will ripple on and I think-- >> So, you're predicting a lot of new open source projects that Cisco's helped to catalyze. >> I'm predicting some turmoil that could be positive. Again, is it a collision or is it-- >> Peter: Yeah, it is. >> Edges coming together? >> And it's okay. >> John: And that's the chaos theory, you've talked about that. >> It's a good prediction. >> So, I think it's a lot of good stuff. We'll be watching and covering and of course, play-by-play action on theCUBE. More day two coverage on theCUBE after this short break. I'm John Furrier with Peter Burris, after this short break, stay with us. (upbeat music) >> Hi, I'm April Mitchell and I'm the Senior Director of Strategy & Planning for Cisco.

>> Announcer: Live from San Francisco it's the CUBE, covering Informatica World 2017 brought to you by Informatica. >> Welcome back everyone, we're here live in San Francisco for our wrap-up of day one, the CUBE's exclusive coverage of Informatica World 2017. So our flagship program, we go out to the events, and extract the signal and the noise. I'm John Furrier with SiliconANGLE, the CUBE. My co-host this week is Peter Burris, Head of Research at SiliconANGLE Media, also the General Manager of Wikibon.com. Go to Wikibon.com and check out all the great research, great stuff behind the paywall, subscription required but also some free content there as well and our special guest is Neil Raden, who's the new analyst on the Wikibon team. Welcome to the team. You're covering the value of data, and analytics industry veteran, great to have you on the team. Thanks for joining us on our wrap-up here. >> Thank you. >> Welcome Peter, look here, this is kind of a coming-out party for Informatica. We've been following them for multiple years. Some of their top exec has been CUBE alumni for many, many years. I think I admit Wallie's going to be on his eighth year, eighth time on the CUBE, but look behind as you see a new branding. Informatica has a new CMO, and she's got swagger and she's got brand impact. Informatica is now going to start bragging about their products. Although I have some critical analysis of Informatica we'll get to in a second but I've always said they've brought in a team of folks during the going private that have product chops, and they've had an install base, and their goal has been from the beginning let's go private close the curtain, and get stuff where you organize, and really work on the product and install base. Can they pivot? That was my question three years ago. Every year they keep on coming out with not a land grab but an incremental and moving the ball down the field to use your football analogy first and then do it again but starting to get into that horizontally scalable cloud model and with good cloud deals, looking poised, in my opinion, for being a data layer, potentially for making that data fabric on. So to me, I think that's the big story here. So far is some good news around the brand, product increases got AI, augmented intelligence with CLAIRE. Some interesting dynamics, which means the interface the data is changing, not only the underlying value of the data, which we want to get into but Informatica is trying to up level the interface. Your thoughts? >> So I think you're absolutely right, John. I think we've seen three things here. First off, Informatica has always had a pretty decent product kit, well embedded within some really first-rate customers. Number two, they've been talking about the need to accommodate some of the new trends around cloud, and how they're going to move in that direction. They've been talking about it. This is the first year we've really seen it. Number three, they even, when Informatica talks, people have historically not listened as much. Sally Jenkins, the new CMO has gotten an enormous amount of work done in a very, very short period of time. This is a bang so and it's manifesting itself in that people are buzzing about it. >> Yeah. >> It's even if Informatica has a lot to do to really be that enterprise cloud data management leader, a lot left to do but it all starts by presenting themselves in a coherent way. That's something that we're seeing for the first time. >> The value proposition has changed significantly. I was talking about the Amazon stock price. Since 2010, it's just been a skyrocket growth for Amazon across the board. Yeah, I got the retail but AWS certainly has been powering it. Having a good brand behind you is going to really energize the channel, ISV, software developers. Like I always joked about the old days, when I used to work at Hewlett-Packard, the joke was I used to call cold dead fish versus sushi. HP would be so accurate, so engineering-oriented, they would be so accurate around the products. They didn't really have a lot of marketing, and the joke was if they had sushi, they called it cold dead fish because that's what it is. Sushi sounds better but again back to marketing, they need to bring the brand out, and put a message around the shift to value. >> Well think about how important it's going to be to a company that increasingly acknowledges or acknowledges increasingly. Their customers are going to find it in something like the Amazon Marketplace or in Google, or in some other cloud environment. It means that they have to bias the customer to choose Informatica versus a range of tools that may not be as good but some of them are going to be open source to get people to bias at that moment, you got to get your brand out there. You have to get your identity out there. Informatica was not going to be a success when the customers making that decision as they're looking at that Amazon Marketplace just by word-of-mouth. They have to get their name out there. So this is big. The products are still good and making, and improving. Getting to the cloud is a big deal. Delivering on their promises, and now having a marketing platform that allows them to scream a little bit louder from the rafters, about who they are and what they want to be. A lot of it's coming again. >> Day two, we're going to have a lot. All the top execs on, they were in an off-site down the street right here at Intercontinental in San Francisco with Executive Customer Day, but we had SVP on for cloud business. We had the board member, Jerry Hill, who's five decades in the business. I mean he essentially laid it out. Hybrid cloud is here to stay, and it's not going to be an overnight success. It's going to be a transition, and that favors the legacy vendors, who are sharpening their saw, and getting their products in line. Of course we have the Chicago Cubs on, and we took the ring, almost put in my pocket in a very Putin-esque like style. We all know Robert Kraft waltz Super Bowl ring, to the biggest criminal in the world, Putin, but kind of a fun there. But the baseball team highlights the customer journeys. They have customers that love them and stay with them 'cause of the install base. >> Absolutely and Informatica is deeply embedded, and has been, Neil has been on the vanguard. Look, they got a lot of work to do but they've been on the vanguard of tying together the idea of data, data is an asset, tooling. So you can get more value out of the data through analytics. >> That's right, I'll tell you a little story. I mean, I brought Informatica in to one of my clients the first time in 1996. They were pretty much a brand new company. >> Peter: About a year after they started? >> Yeah and what motivated me to think about Informatica as opposed to any other way we were trying to get data into a data warehouse was that they understood metadata. They were the only company that had an active metadata repository. So this is their heritage. I know that Informatica claims they have, I don't know 10,000 customers. I think a significant number of those are not going to be interested in this whole thing. They don't have the budget for it. They don't have the time or the staff or anything but they've got the elite. When you look at the companies that are clients of Informatica, those are the people that would be interested in and spend time and money on this sort of thing. >> Well let me get you guys perspective as analyst because let's turn this into the analysis of what's happening here with Informatica, and compare that to what's happening in the industry. SAP Sapphire is happening right now in Orlando. We got CUBE coverage in our studio in Palo Alto. But Oracle, SAP, these are database guys. They have systems of record. IBM, Amazon is now a new player in that. They have to balance the install base, systems of record of their data. Now granted old techniques for walls, data warehouse, whatever you want to call. It was an old way. Now the new way's to empower developers to actually build and use that data. So the question is how do they get their product from old to new and modernize quickly, and highlight data as value because this is the thing that you guys are both researching heavily, is that data now is going to start to be evaluation discussion. Are we getting the data through the pipes, if you will, into the hands of the developers, into the apps, into the decision-making process in the value chains that are being reconstructed. This is a top conversation that not a lot of people are laying out there with best practices. Your thoughts? >> Well I think the first thing, then I'll start, like the first thing is that that's probably my biggest thing on Informatica here, is that they need to be more of a beacon about what is the new data management. It's more than just the combination of tools. It's more than just getting data out of applications, and getting data out of databases, and freeing it up so they can be applied. The notion of data management is evolving rapidly, and businesses are trying to as they try to use data as an asset is going to require some significant changes to how we think about-- >> Do you think they could put that stake in the ground right now and owned that right now? >> I think somebody has to. I think they need to take a crack at it. >> I think they're weak on the value. I think they're weak on, you know what happens, I always have this idea that you see their layer cakes, and the things that go from left to right but on the right-hand side of the diagram, there are no people right. What happens when you implement all this? How do people use this okay? That's true of everybody in this industry, not just Informatica. So that's one weakness. Last year when I was here, I thought they had a real weakness in governance but with the dike who acts on acquisitions, I think they made a giant step towards that. They've got a lot, they've got a lot of the piece, parts, and then putting them together but I don't think they're addressing what happens next. I call it the Jordan River problem. We wandered around for 40 years. We got to the Jordan River. We can't get across the damn river right. >> Is it a river or lake or an ocean? I mean it's a data river. It's something happening. It's a lake or something. >> I think that's where they are because it's a whole different discipline. >> But is that on Informatica? I mean they're now a smaller company or is that an industry issue? >> No, it's an industry issue but companies like Informatica, if they really want to be a leader as he flings his grad classes around, that's all passionate I have about this. If they want to be a leader or the leader, they have to put a stake in the ground don't they? >> I believe so. >> Okay so what about positives? Neil what's your thoughts on how are they well-positioned in your mind? >> Well, putting together all these different pieces so that they operate together is phenomenal. Moving to, I still don't understand how enterprise software companies move to a subscription model smoothly. That's got to be a real headache but they're moving to that. They've adopted the cloud. They still have the data integration. I mean that's their keystone. It works beautifully, it gets better every year, and that's what attracts people to them. So I think these are all good things. >> And the good news is they're private so they can do that subscription, kind of hide the ball a little bit then come out. But they're not doing bad. I mean they have a spring to their step. >> Here's, I think Neil's absolutely right. Here's what I would add to it. They're executing, they have demonstrated over the past couple of years, certainly that we've been here, and listening to them, they made promises, they've delivered. They've made new promises, they've delivered. Some of these promises have been complex. Some of them have been extremely hard. They've still delivered. That is a real important piece of the story because this notion of data management is changing. Developers are going to want to work with companies that have competent management, that deliver on the promises they're making and Informatica is proving that they're up to that progress. >> I think, I think-- >> Another thing John, they have brilliant people. Everybody I've met here from Informatica is really special. I mean you know maybe they kept the clunkers in the closet somewhere but they've got brilliant motivated people working here. >> John: You've got a ton of experience. >> Peter: We're passionate about this stuff. >> They've got a lot of experience too, and they brought in some new guns the product side we're going to admit has a fantastic product executive and he obviously has that background but I want to shift now to the end user now. They're now living in the world of massive business transformation. Yeah, digital transformation, rah-rah. It's kind of overhyped but what that translates to is business transformation. That's the conversation on all CXOs. >> Peter: Business transformation around data. >> Around data so I want to get your thoughts now vis-a-vis that the customers perspective. I'm looking at Informatica. How do I feel about them? >> Well before I march off this mortal coil, this is what I want to happen. I want to say look computer I want to put together a new pricing model all right. Here are a couple variables I'm interested in. One of my competitors just issued a press release with some new pricing data. Go get that and come back to me with some data. Recommend some data I need to build a model to do this. >> Peter: Give me some updates. >> Yeah. >> That's CLAIRE, I mean that's something to talk about doing some automation machine learning. Peter, do you think that's the nirvana, that is a nice position to be? It's like hey Alexa, play some music, and you know they play a genre for you. So I mean give me some data, pricing data. >> So let's think about the elements that are going to be important as we think about this new notion of data management. Again, I don't think Informatica is too far from this. A new notion of data management suggests number one, that if your business is going to use data differently, you have to introduce some notion of some concept of design. How do I design business around data, and how do I design data around business needs? Part of that problem is going to be being able to go out and capture inventory catalog metadata. No question about it. You're going to need the next generation of data management. It's going to be very metadata focused. Secondly, you need a lot of the tooling that's capable of doing the transformation and creating derivative value out of data. That's something else that they have. The third one and this is a really, really important piece, and we talked about it for example with (faint) and a couple of other people. Data has to move but it has to move not just based on point to point interfaces that are programmed and built but based on patterns of utilization, and in a way that the system recognizes that. That is going to be crucially important, that whole notion of data that's moving in response to what the business needs, and not what the people recognize and do. >> Okay, so that reminds me. I was speaking to someone who is part of their security stuff right and I said well have you considered how data security could benefit analyst as opposed to keeping the company out of trouble? >> Peter: Business analysts? >> Yeah, just couldn't answer the question right. Because I said, so tell me how this works, and she said "Well, if someone has a pattern "of how they work with data, "if suddenly they work out in that pattern, "it's going to send off a signal." I said what's a signal? Are they going to get a skull and crossbones like oh you can't have this data. >> It sends off a policy flag. Okay, hey you're out of your swim lane. It's like get back into your jail cell. I mean it's restrictive, Absolutely restrictive. >> But think about it this way. Don't you want your analysts to be thinking out of the box? Which means on a regular basis, they would be requesting data they don't normally want. >> Here's what I like about Informatica from my perspective. Again, you guys are in under the hood in a deeper way but from my perspective is that what they're doing with the horizontally scalable is interesting, and this is interesting on the metadata side, you mentioned that with SPAN, Google SPAN are now available. They're in Amazon. If they can somehow create that addressable data sets that could be horizontally scalable and freely available, I think that is a winning strategy because most of the vendors in the data take a siloed stack approach. Okay here's our stack, you own it. So I think they're on this genius play of okay we can get this horizontal layer, that is now the lock spec, because now I mean I'm agnostic on cloud. So to me I think that directionally is correct. Where that is when the rubber meets the road, is a whole another story. So your thoughts on that. >> It's very exciting, I hope they pull it off. >> Yeah, I think it's very exciting. So if you think about it-- >> How do they pull it off? >> Let's well, so there's, let's-- >> We're not being shot by the other income with bigger guns. >> Let's think about it a couple of different ways of thinking about this right. On the one hand, you have new ways of thinking about how data is going to be spread in a multi or a hybrid cloud world. So that's happening. Secondly, we're thinking about data control, and a data control plane above that, and they're a bunch of companies that are talking about how you bring control across all these different multi cloud instances. On top of that, now we're talking about some of the analytics and how data gets huge from a metadata standpoint. So this is extremely relevant to where the industry is going to be in five years. Somebody is going to get there. It's best to look for the folks who are skating to that puck. Informatica seems to be skating to that puck. >> All right, I want to ask you guys a question. I want you to tell me if I'm smoking crack or not. When I say this the whole goal of getting data from any database at any given time in less than 100 milliseconds, no matter where it came from, when it came from, IOT included all the stuff that's coming in, I'm an app developer, I want data programmability. Meaning I have an app, and I'm doing some some cognitive, cognition thing and all sudden, Neil you bought something at Nordstrom's from three years ago. It's some database. Yeah, that means let's think about the logic on that query. But that data could be cross connected with other relevant data, your Twitter stuff or whatever you're doing, and pull together, provide some insight for you. Now that sounds like I'm smoking crack to pull that off. Is that possible? Can it be done in the kind of low latency mechanism? >> You know it can be done but I don't think we know enough about the data. There are four types of metadata still leave out deep semantic information. I'm hoping they're going to work on that. I mean I was in here 10 years ago pitching ontologies, and they threw me out. (laughs) But I think that the four types of-- (fast crosstalk) Yeah, I think the four types of metadata are great but they're still generating it mechanically from datasets as opposed to some knowledge about what the data really means. To do what you want to do, I think you need some kind of semantic metadata. >> I agree with that, and you also need semantic information about the underlying network as well. So the idea of a semantic-- >> So a lot more work to do to make that happen. >> A lot more work. So final question-- >> It's probably not going to be 100 milliseconds, 140, 150, maybe 200. >> Yeah, well I mean anything, just getting the data would be a win. Okay final question this is kind of more on the stuff we were talking about in leading to the intro of the work you guys are doing. The valuation concept of data, I mean I say valuation, I could mean financial valuation. How valuable a firm is? Or what is our CFO goes, where's our assets, where's our data assets? So there's a combination of data hygiene, and also in heart surgery, right, if it's the heartbeat of your organization, who the hell's the surgeon? Who's the doctor? When do you do CPR? Who does the hygiene? Who does the amputation? I mean who does, I mean this is like, I mean this is a data nightmare of a reconstruction of a company. The nature of the firm is completely upside down when you start thinking data. Just your reaction to that concept. >> Well, they have a very loyal customer base. So I think that they can get out with this before it's completely cooked, and have some success. Maybe I'm being optimistic. I don't know but I think-- >> John: Valuation of data. >> I think that there is a way of thinking about it is not to value data in a narrow sense but to think about data, what we're calling data dynamics. The idea that data's value is founded in its use. It's not something that has value when it's just sitting there and not being used. >> It's, yeah, it's like that old saw. I don't know how to define pornography but I know it when I see it, right. That was a Supreme Court Justice. I didn't say that. >> John: Looks like teenage sex. The hero things they're having it, pull the notch. >> This goes back to the notion of data management. It's how am I going to use data? How am I going to get value out of data through its use? That suggests a whole different set of principles and practices that are quite different from how we normally value assets. >> Okay, tomorrow we got the top execs coming in. We got the CMO, we got the CEO, we got the EVP of Products. What should we be asking them tomorrow? What should I be opening up the kimono and digging into them on? >> I'll ask him what the roadmap is in terms of getting this implemented in their best customers. Not the software development roadmap. So tell us. (fast crosstalk) How this is going to roll out for you? >> You're going to be here up 'til two o'clock. We'll be there, what are you going to be looking at? >> I'll look for two things. One is I would continuously push on the execution. Are they really executing as reliably as we think they are? 'Cause they're making some big promises this year too. The second one I'd look at is again, that beacon, that touchstone, what is this new data management? What are you really going to be leading? >> I'm still blown away by the conferences I go to, everyone's like what is a new way, new modern era's evolving and it's transforming. We're number one in five magic quadrants. I mean how can you get magic quadrants as the scoreboard if you go into a new definition? So again, our metric KPI on that is customers. What is your customer traction? Show me the proof points. I don't care what magic quadrant you're in. That's an old metric. That's siloed based. That's not reality based, in my opinion. So we will drill them on customers. To me that's the scoreboard. Okay it's the CUBE breaking down day one wrap up here at Informatica World. This is CUBE coverage. I'm John Furrier, Peter Burris, and special guest new Wikibon analyst, Neil Raden, covering the value of data and analytics. See you tomorrow, stay with us for more continuing coverage tomorrow for full day. Be right back.