>> Narrator: From theCUBE Studios in Palo Alto and Boston bringing you data-driven insights from theCUBE and ETR. This is breaking analysis with Dave Vellante >> Enterprise tech practitioners, like most of us they want to make their lives easier so they can focus on delivering more value to their businesses. And to do so, they want to tap best of breed services in the public cloud, but at the same time connect their on-prem intellectual property to emerging applications which drive top line revenue and bottom line profits. But creating a consistent experience across clouds and on-prem estates has been an elusive capability for most organizations, forcing trade-offs and injecting friction into the system. The need to create seamless experiences is clear and the technology industry is starting to respond with platforms, architectures, and visions of what we've called the Supercloud. Hello and welcome to this week's Wikibon Cube Insights powered by ETR. In this breaking analysis we give you a preview of Supercloud 2, the second event of its kind that we've had on the topic. Yes, folks that's right Supercloud 2 is here. As of this recording, it's just about four days away 33 guests, 21 sessions, combining live discussions and fireside chats from theCUBE's Palo Alto Studio with prerecorded conversations on the future of cloud and data. You can register for free at supercloud.world. And we are super excited about the Supercloud 2 lineup of guests whereas Supercloud 22 in August, was all about refining the definition of Supercloud testing its technical feasibility and understanding various deployment models. Supercloud 2 features practitioners, technologists and analysts discussing what customers need with real-world examples of Supercloud and will expose thinking around a new breed of cross-cloud apps, data apps, if you will that change the way machines and humans interact with each other. Now the example we'd use if you think about applications today, say a CRM system, sales reps, what are they doing? They're entering data into opportunities they're choosing products they're importing contacts, et cetera. And sure the machine can then take all that data and spit out a forecast by rep, by region, by product, et cetera. But today's applications are largely about filling in forms and or codifying processes. In the future, the Supercloud community sees a new breed of applications emerging where data resides on different clouds, in different data storages, databases, Lakehouse, et cetera. And the machine uses AI to inspect the e-commerce system the inventory data, supply chain information and other systems, and puts together a plan without any human intervention whatsoever. Think about a system that orchestrates people, places and things like an Uber for business. So at Supercloud 2, you'll hear about this vision along with some of today's challenges facing practitioners. Zhamak Dehghani, the founder of Data Mesh is a headliner. Kit Colbert also is headlining. He laid out at the first Supercloud an initial architecture for what that's going to look like. That was last August. And he's going to present his most current thinking on the topic. Veronika Durgin of Sachs will be featured and talk about data sharing across clouds and you know what she needs in the future. One of the main highlights of Supercloud 2 is a dive into Walmart's Supercloud. Other featured practitioners include Western Union Ionis Pharmaceuticals, Warner Media. We've got deep, deep technology dives with folks like Bob Muglia, David Flynn Tristan Handy of DBT Labs, Nir Zuk, the founder of Palo Alto Networks focused on security. Thomas Hazel, who's going to talk about a new type of database for Supercloud. It's several analysts including Keith Townsend Maribel Lopez, George Gilbert, Sanjeev Mohan and so many more guests, we don't have time to list them all. They're all up on supercloud.world with a full agenda, so you can check that out. Now let's take a look at some of the things that we're exploring in more detail starting with the Walmart Cloud native platform, they call it WCNP. We definitely see this as a Supercloud and we dig into it with Jack Greenfield. He's the head of architecture at Walmart. Here's a quote from Jack. "WCNP is an implementation of Kubernetes for the Walmart ecosystem. We've taken Kubernetes off the shelf as open source." By the way, they do the same thing with OpenStack. "And we have integrated it with a number of foundational services that provide other aspects of our computational environment. Kubernetes off the shelf doesn't do everything." And so what Walmart chose to do, they took a do-it-yourself approach to build a Supercloud for a variety of reasons that Jack will explain, along with Walmart's so-called triplet architecture connecting on-prem, Azure and GCP. No surprise, there's no Amazon at Walmart for obvious reasons. And what they do is they create a common experience for devs across clouds. Jack is going to talk about how Walmart is evolving its Supercloud in the future. You don't want to miss that. Now, next, let's take a look at how Veronica Durgin of SAKS thinks about data sharing across clouds. Data sharing we think is a potential killer use case for Supercloud. In fact, let's hear it in Veronica's own words. Please play the clip. >> How do we talk to each other? And more importantly, how do we data share? You know, I work with data, you know this is what I do. So if you know I want to get data from a company that's using, say Google, how do we share it in a smooth way where it doesn't have to be this crazy I don't know, SFTP file moving? So that's where I think Supercloud comes to me in my mind, is like practical applications. How do we create that mesh, that network that we can easily share data with each other? >> Now data mesh is a possible architectural approach that will enable more facile data sharing and the monetization of data products. You'll hear Zhamak Dehghani live in studio talking about what standards are missing to make this vision a reality across the Supercloud. Now one of the other things that we're really excited about is digging deeper into the right approach for Supercloud adoption. And we're going to share a preview of a debate that's going on right now in the community. Bob Muglia, former CEO of Snowflake and Microsoft Exec was kind enough to spend some time looking at the community's supercloud definition and he felt that it needed to be simplified. So in near real time he came up with the following definition that we're showing here. I'll read it. "A Supercloud is a platform that provides programmatically consistent services hosted on heterogeneous cloud providers." So not only did Bob simplify the initial definition he's stressed that the Supercloud is a platform versus an architecture implying that the platform provider eg Snowflake, VMware, Databricks, Cohesity, et cetera is responsible for determining the architecture. Now interestingly in the shared Google doc that the working group uses to collaborate on the supercloud de definition, Dr. Nelu Mihai who is actually building a Supercloud responded as follows to Bob's assertion "We need to avoid creating many Supercloud platforms with their own architectures. If we do that, then we create other proprietary clouds on top of existing ones. We need to define an architecture of how Supercloud interfaces with all other clouds. What is the information model? What is the execution model and how users will interact with Supercloud?" What does this seemingly nuanced point tell us and why does it matter? Well, history suggests that de facto standards will emerge more quickly to resolve real world practitioner problems and catch on more quickly than consensus-based architectures and standards-based architectures. But in the long run, the ladder may serve customers better. So we'll be exploring this topic in more detail in Supercloud 2, and of course we'd love to hear what you think platform, architecture, both? Now one of the real technical gurus that we'll have in studio at Supercloud two is David Flynn. He's one of the people behind the the movement that enabled enterprise flash adoption, that craze. And he did that with Fusion IO and he is now working on a system to enable read write data access to any user in any application in any data center or on any cloud anywhere. So think of this company as a Supercloud enabler. Allow me to share an excerpt from a conversation David Flore and I had with David Flynn last year. He as well gave a lot of thought to the Supercloud definition and was really helpful with an opinionated point of view. He said something to us that was, we thought relevant. "What is the operating system for a decentralized cloud? The main two functions of an operating system or an operating environment are one the process scheduler and two, the file system. The strongest argument for supercloud is made when you go down to the platform layer and talk about it as an operating environment on which you can run all forms of applications." So a couple of implications here that will be exploring with David Flynn in studio. First we're inferring from his comment that he's in the platform camp where the platform owner is responsible for the architecture and there are obviously trade-offs there and benefits but we'll have to clarify that with him. And second, he's basically saying, you kill the concept the further you move up the stack. So the weak, the further you move the stack the weaker the supercloud argument becomes because it's just becoming SaaS. Now this is something we're going to explore to better understand is thinking on this, but also whether the existing notion of SaaS is changing and whether or not a new breed of Supercloud apps will emerge. Which brings us to this really interesting fellow that George Gilbert and I RIFed with ahead of Supercloud two. Tristan Handy, he's the founder and CEO of DBT Labs and he has a highly opinionated and technical mind. Here's what he said, "One of the things that we still don't know how to API-ify is concepts that live inside of your data warehouse inside of your data lake. These are core concepts that the business should be able to create applications around very easily. In fact, that's not the case because it involves a lot of data engineering pipeline and other work to make these available. So if you really want to make it easy to create these data experiences for users you need to have an ability to describe these metrics and then to turn them into APIs to make them accessible to application developers who have literally no idea how they're calculated behind the scenes and they don't need to." A lot of implications to this statement that will explore at Supercloud two versus Jamma Dani's data mesh comes into play here with her critique of hyper specialized data pipeline experts with little or no domain knowledge. Also the need for simplified self-service infrastructure which Kit Colbert is likely going to touch upon. Veronica Durgin of SAKS and her ideal state for data shearing along with Harveer Singh of Western Union. They got to deal with 200 locations around the world in data privacy issues, data sovereignty how do you share data safely? Same with Nick Taylor of Ionis Pharmaceutical. And not to blow your mind but Thomas Hazel and Bob Muglia deposit that to make data apps a reality across the Supercloud you have to rethink everything. You can't just let in memory databases and caching architectures take care of everything in a brute force manner. Rather you have to get down to really detailed levels even things like how data is laid out on disk, ie flash and think about rewriting applications for the Supercloud and the MLAI era. All of this and more at Supercloud two which wouldn't be complete without some data. So we pinged our friends from ETR Eric Bradley and Darren Bramberm to see if they had any data on Supercloud that we could tap. And so we're going to be analyzing a number of the players as well at Supercloud two. Now, many of you are familiar with this graphic here we show some of the players involved in delivering or enabling Supercloud-like capabilities. On the Y axis is spending momentum and on the horizontal accesses market presence or pervasiveness in the data. So netscore versus what they call overlap or end in the data. And the table insert shows how the dots are plotted now not to steal ETR's thunder but the first point is you really can't have supercloud without the hyperscale cloud platforms which is shown on this graphic. But the exciting aspect of Supercloud is the opportunity to build value on top of that hyperscale infrastructure. Snowflake here continues to show strong spending velocity as those Databricks, Hashi, Rubrik. VMware Tanzu, which we all put under the magnifying glass after the Broadcom announcements, is also showing momentum. Unfortunately due to a scheduling conflict we weren't able to get Red Hat on the program but they're clearly a player here. And we've put Cohesity and Veeam on the chart as well because backup is a likely use case across clouds and on-premises. And now one other call out that we drill down on at Supercloud two is CloudFlare, which actually uses the term supercloud maybe in a different way. They look at Supercloud really as you know, serverless on steroids. And so the data brains at ETR will have more to say on this topic at Supercloud two along with many others. Okay, so why should you attend Supercloud two? What's in it for me kind of thing? So first of all, if you're a practitioner and you want to understand what the possibilities are for doing cross-cloud services for monetizing data how your peers are doing data sharing, how some of your peers are actually building out a Supercloud you're going to get real world input from practitioners. If you're a technologist, you're trying to figure out various ways to solve problems around data, data sharing, cross-cloud service deployment there's going to be a number of deep technology experts that are going to share how they're doing it. We're also going to drill down with Walmart into a practical example of Supercloud with some other examples of how practitioners are dealing with cross-cloud complexity. Some of them, by the way, are kind of thrown up their hands and saying, Hey, we're going mono cloud. And we'll talk about the potential implications and dangers and risks of doing that. And also some of the benefits. You know, there's a question, right? Is Supercloud the same wine new bottle or is it truly something different that can drive substantive business value? So look, go to Supercloud.world it's January 17th at 9:00 AM Pacific. You can register for free and participate directly in the program. Okay, that's a wrap. I want to give a shout out to the Supercloud supporters. VMware has been a great partner as our anchor sponsor Chaos Search Proximo, and Alura as well. For contributing to the effort I want to thank Alex Myerson who's on production and manages the podcast. Ken Schiffman is his supporting cast as well. Kristen Martin and Cheryl Knight to help get the word out on social media and at our newsletters. And Rob Ho is our editor-in-chief over at Silicon Angle. Thank you all. Remember, these episodes are all available as podcast. Wherever you listen we really appreciate the support that you've given. We just saw some stats from from Buzz Sprout, we hit the top 25% we're almost at 400,000 downloads last year. So really appreciate your participation. All you got to do is search Breaking Analysis podcast and you'll find those I publish each week on wikibon.com and siliconangle.com. Or if you want to get ahold of me you can email me directly at David.Vellante@siliconangle.com or dm me DVellante or comment on our LinkedIn post. I want you to check out etr.ai. They've got the best survey data in the enterprise tech business. This is Dave Vellante for theCUBE Insights, powered by ETR. Thanks for watching. We'll see you next week at Supercloud two or next time on breaking analysis. (light music)

foreign welcome back to re invent 2022 we're wrapping up four days well one evening and three solid days wall-to-wall of cube coverage I'm Dave vellante John furrier's birthday is today he's on a plane to London to go see his nephew get married his his great Sister Janet awesome family the furriers uh spanning the globe and uh and John I know you wanted to be here you're watching in Newark or you were waiting to uh to get in the plane so all the best to you happy birthday one year the Amazon PR people brought a cake out to celebrate John's birthday because he's always here at AWS re invented his birthday so I'm really pleased to have two really special guests uh former Cube host Cube Alum great wikibon contributor Stu miniman now with red hat still good to see you again great to be here Dave yeah I was here for that cake uh the twitterverse uh was uh really helping to celebrate John's birthday today and uh you know always great to be here with you and then with this you know Awesome event this week and friend of the cube of many time Cube often Cube contributor as here's a cube analyst this week as his own consultancy sarbj johal great to see you thanks for coming on good to see you Dave uh great to see you stu I'm always happy to participate in these discussions and um I enjoy the discussion every time so this is kind of cool because you know usually the last day is a getaway day and this is a getaway day but this place is still packed I mean it's I mean yeah it's definitely lighter you can at least walk and not get slammed but I subjit I'm going to start with you I I wanted to have you as the the tail end here because cause you participated in the analyst sessions you've been watching this event from from the first moment and now you've got four days of the Kool-Aid injection but you're also talking to customers developers Partners the ecosystem where do you want to go what's your big takeaways I think big takeaways that Amazon sort of innovation machine is chugging along they are I was listening to some of the accessions and when I was back to my room at nine so they're filling the holes in some areas but in some areas they're moving forward there's a lot to fix still it doesn't seem like that it seems like we are done with the cloud or The Innovation is done now we are building at the millisecond level so where do you go next there's a lot of room to grow on the storage side on the network side uh the improvements we need and and also making sure that the software which is you know which fits the hardware like there's a specialized software um sorry specialized hardware for certain software you know so there was a lot of talk around that and I attended some of those sessions where I asked the questions around like we have a specialized database for each kind of workload specialized processes processors for each kind of workload yeah the graviton section and actually the the one interesting before I forget that the arbitration was I asked that like why there are so many so many databases and IRS for the egress costs and all that stuff can you are you guys thinking about reducing that you know um the answer was no egress cost is not a big big sort of uh um show stopper for many of the customers but but the from all that sort of little discussion with with the folks sitting who build these products over there was that the plethora of choice is given to the customers to to make them feel that there's no vendor lock-in so if you are using some open source you know um soft software it can be on the you know platform side or can be database side you have database site you have that option at AWS so this is a lot there because I always thought that that AWS is the mother of all lock-ins but it's got an ecosystem and we're going to talk about exactly we'll talk about Stu what's working within AWS when you talk to customers and where are the challenges yeah I I got a comment on open source Dave of course there because I mean look we criticized to Amazon for years about their lack of contribution they've gotten better they're doing more in open source but is Amazon the mother of all lock-ins many times absolutely there's certain people inside Amazon I'm saying you know many of us talk Cloud native they're like well let's do Amazon native which means you're like full stack is things from Amazon and do things the way that we want to do things and you know I talk to a lot of customers they use more than one Cloud Dave and therefore certain things absolutely I want to Leverage The Innovation that Amazon has brought I do think we're past building all the main building blocks in many ways we are like in day two yes Amazon is fanatically customer focused and will always stay that way but you know there wasn't anything that jumped out at me last year or this year that was like Wow new category whole new way of thinking about something we're in a vocals last year Dave said you know we have over 200 services and if we listen to you the customer we'd have over two thousand his session this week actually got some great buzz from my friends in the serverless ecosystem they love some of the things tying together we're using data the next flywheel that we're going to see for the next 10 years Amazon's at the center of the cloud ecosystem in the IT world so you know there's a lot of good things here and to your point Dave the ecosystem one of the things I always look at is you know was there a booth that they're all going to be crying in their beer after Amazon made an announcement there was not a tech vendor that I saw this week that was like oh gosh there was an announcement and all of a sudden our business is gone where I did hear some rumbling is Amazon might be the next GSI to really move forward and we've seen all the gsis pushing really deep into supporting Cloud bringing workloads to the cloud and there's a little bit of rumbling as to that balance between what Amazon will do and their uh their go to market so a couple things so I think I think we all agree that a lot of the the announcements here today were taping seams right I call it and as it relates to the mother of all lock-in the reason why I say that it's it's obviously very much a pejorative compare Oracle company you know really well with Amazon's lock-in for Amazon's lock-in is about bringing this ecosystem together so that you actually have Choice Within the the house so you don't have to leave you know there's a there's a lot to eat at the table yeah you look at oracle's ecosystem it's like yeah you know oracle is oracle's ecosystem so so that is how I think they do lock in customers by incenting them not to leave because there's so much Choice Dave I agree with you a thousand I mean I'm here I'm a I'm a good partner of AWS and all of the partners here want to be successful with Amazon and Amazon is open to that it's not our way or get out which Oracle tries how much do you extract from the overall I.T budget you know are you a YouTube where you give the people that help you create a large sum of the money YouTube hasn't been all that profitable Amazon I think is doing a good balance of the ecosystem makes money you know we used to talk Dave about you know how much dollars does VMware make versus there um I think you know Amazon is a much bigger you know VMware 2.0 we used to think talk about all the time that VMware for every dollar spent on VMware licenses 15 or or 12 or 20 were spent in the ecosystem I would think the ratio is even higher here sarbji and an Oracle I would say it's I don't know yeah actually 1 to 0.5 maybe I don't know but I want to pick on your discussion about the the ecosystem the the partner ecosystem is so it's it's robust strong because it's wider I was I was not saying that there's no lock-in with with Amazon right AWS there's lock-in there's lock-in with everything there's lock-in with open source as well but but the point is that they're they're the the circle is so big you don't feel like locked in but they're playing smart as well they're bringing in the software the the platforms from the open source they're picking up those packages and saying we'll bring it in and cater that to you through AWS make it better perform better and also throw in their custom chips on top of that hey this MySQL runs better here so like what do you do I said oh Oracle because it's oracle's product if you will right so they are I think think they're filing or not slenders from their go to market strategy from their engineering and they listen to they're listening to customers like very closely and that has sort of side effects as well listening to customers creates a sprawl of services they have so many services and I criticized them last year for calling everything a new service I said don't call it a new service it's a feature of a existing service sure a lot of features a lot of features this is egress our egress costs a real problem or is it just the the on-prem guys picking at the the scab I mean what do you hear from customers so I mean Dave you know I I look at what Corey Quinn talks about all the time and Amazon charges on that are more expensive than any other Cloud the cloud providers and partly because Amazon is you know probably not a word they'd use they are dominant when it comes to the infrastructure space and therefore they do want to make it a little bit harder to do that they can get away with it um because um yeah you know we've seen some of the cloud providers have special Partnerships where you can actually you know leave and you're not going to be charged and Amazon they've been a little bit more flexible but absolutely I've heard customers say that they wish some good tunning and tongue-in-cheek stuff what else you got we lay it on us so do our players okay this year I think the focus was on the upside it's shifting gradually this was more focused on offside there were less talk of of developers from the main stage from from all sort of quadrants if you will from all Keynotes right so even Werner this morning he had a little bit for he was talking about he he was talking he he's job is to Rally up the builders right yeah so he talks about the go build right AWS pipes I thought was kind of cool then I said like I'm making glue easier I thought that was good you know I know some folks don't use that I I couldn't attend the whole session but but I heard in between right so it is really adopt or die you know I am Cloud Pro for last you know 10 years and I think it's the best model for a technology consumption right um because of economies of scale but more importantly because of division of labor because of specialization because you can't afford to hire the best security people the best you know the arm chip designers uh you can't you know there's one actually I came up with a bumper sticker you guys talked about bumper sticker I came up with that like last couple of weeks The Innovation favorite scale they have scale they have Innovation so that's where the Innovation is and it's it's not there again they actually say the market sets the price Market you as a customer don't set the price the vendor doesn't set the price Market sets the price so if somebody's complaining about their margins or egress and all that I think that's BS um yeah I I have a few more notes on the the partner if you you concur yeah Dave you know with just coming back to some of this commentary about like can Amazon actually enable something we used to call like Community clouds uh your companies like you know Goldman and NASDAQ and the like where Industries will actually be able to share data uh and you know expand the usage and you know Amazon's going to help drive that API economy forward some so it's good to see those things because you know we all know you know all of us are smarter than just any uh single company together so again some of that's open source but some of that is you know I think Amazon is is you know allowing Innovation to thrive I think the word you're looking for is super cloud there well yeah I mean it it's uh Dave if you want to go there with the super cloud because you know there's a metaphor for exactly what you described NASDAQ Goldman Sachs we you know and and you know a number of other companies that are few weeks at the Berkeley Sky Computing paper yeah you know that's a former supercloud Dave Linthicum calls it metacloud I'm not really careful I mean you know I go back to the the challenge we've been you know working at for a decade is the distributed architecture you know if you talk about AI architectures you know what lives in the cloud what lives at the edge where do we train things where do we do inferences um locations should matter a lot less Amazon you know I I didn't hear a lot about it this show but when they came out with like local zones and oh my gosh out you know all the things that Amazon is building to push out to the edge and also enabling that technology and software and the partner ecosystem helps expand that and Pull It in it's no longer you know Dave it was Hotel California all of the data eventually is going to end up in the public cloud and lock it in it's like I don't think that's going to be the case we know that there will be so much data out at the edge Amazon absolutely is super important um there some of those examples we're giving it's not necessarily multi-cloud but there's collaboration happening like in the healthcare world you know universities and hospitals can all share what they're doing uh regardless of you know where they live well Stephen Armstrong in the analyst session did say that you know we're going to talk about multi-cloud we're not going to lead with it necessarily but we are going to actually talk about it and that's different to your points too than in the fullness of time all the data will be in the cloud that's a new narrative but go ahead yeah actually Amazon is a leader in the cloud so if they push the cloud even if they don't say AWS or Amazon with it they benefit from it right and and the narrative is that way there's the proof is there right so again Innovation favorite scale there are chips which are being made for high scale their software being tweaked for high scale you as a Bank of America or for the Chrysler as a typical Enterprise you cannot afford to do those things in-house what cloud providers can I'm not saying just AWS Google cloud is there Azure guys are there and few others who are behind them and and you guys are there as well so IBM has IBM by the way congratulations to your red hat I know but IBM won the award um right you know very good partner and yeah but yeah people are dragging their feet people usually do on the change and they are in denial denial they they drag their feet and they came in IBM director feed the cave Den Dell drag their feed the cave in yeah you mean by Dragon vs cloud deniers cloud deniers right so server Huggers I call them but they they actually are sitting in Amazon Cloud Marketplace everybody is buying stuff from there the marketplace is the new model OKAY Amazon created the marketplace for b2c they are leading the marketplace of B2B as well on the technology side and other people are copying it so there are multiple marketplaces now so now actually it's like if you're in in a mobile app development there are two main platforms Android and Apple you first write the application for Apple right then for Android hex same here as a technology provider as and I I and and I actually you put your stuff to AWS first then you go anywhere else yeah they are later yeah the Enterprise app store is what we've wanted for a long time the question is is Amazon alone the Enterprise app store or are they partner of a of a larger portfolio because there's a lot of SAS companies out there uh that that play into yeah what we need well and this is what you're talking about the future but I just want to make a point about the past you talking about dragging their feet because the Cube's been following this and Stu you remember this in 2013 IBM actually you know got in a big fight with with Amazon over the CIA deal you know and it all became public judge wheeler eviscerated you know IBM and it ended up IBM ended up buying you know soft layer and then we know what happened there and it Joe Tucci thought the cloud was Mosey right so it's just amazing to see we have booksellers you know VMware called them books I wasn't not all of them are like talking about how great Partnerships they are it's amazing like you said sub GC and IBM uh with the the GSI you know Partnership of the year but what you guys were just talking about was the future and that's what I wanted to get to is because you know Amazon's been leading the way I I was listening to Werner this morning and that just reminded me of back in the days when we used to listen to IBM educate us give us a master class on system design and decoupled systems and and IO and everything else now Amazon is you know the master educator and it got me thinking how long will that last you know will they go the way of you know the other you know incumbents will they be disrupted or will they you know keep innovating maybe it's going to take 10 or 20 years I don't know yeah I mean Dave you actually you did some research I believe it was a year or so ago yeah but what will stop Amazon and the one thing that worries me a little bit um is the two Pizza teams when you have over 202 Pizza teams the amount of things that each one of those groups needs to take care of was more than any human could take care of people burn out they run out of people how many amazonians only last two or three years and then leave because it is tough I bumped into plenty of friends of mine that have been you know six ten years at Amazon and love it but it is a tough culture and they are driving werner's keynote I thought did look to from a product standpoint you could say tape over some of the seams some of those solutions to bring Beyond just a single product and bring them together and leverage data so there are some signs that they might be able to get past some of those limitations but I still worry structurally culturally there could be some challenges for Amazon to keep the momentum going especially with the global economic impact that we are likely to see in the next year bring us home I think the future side like we could talk about the vendors all day right to serve the community out there I think we should talk about how what's the future of technology consumption from the consumer side so from the supplier side just a quick note I think the only danger AWS has has that that you know Fred's going after them you know too big you know like we will break you up and that can cause some disruption there other than that I think they they have some more steam to go for a few more years at least before we start thinking about like oh this thing is falling apart or anything like that so they have a lot more they have momentum and it's continuing so okay from the I think game is on retail by the way is going to get disrupted before AWS yeah go ahead from the buyer's side I think um the the future of the sort of Technology consumption is based on the paper uh use and they actually are turning all their services to uh they are sort of becoming serverless behind the scenes right all analytics service they had one service left they they did that this year so every service is serverless so that means you pay exactly for the amount you use the compute the iops the the storage so all these three layers of course Network we talked about the egress stuff and that's a problem there because of the network design mainly because Google has a flatter design and they have lower cost so so they are actually squeezing the their their designing this their services in a way that you don't waste any resources as a buyer so for example very simple example when early earlier In This Cloud you will get a VM right in Cloud that's how we started so and you can get 20 use 20 percent of the VM 80 is getting wasted that's not happening now that that has been reduced to the most extent so now your VM grows as you grow the usage and if you go higher than the tier you picked they will charge you otherwise they will not charge you extra so that's why there's still a lot of instances like many different types you have to pick one I think the future is that those instances will go away the the instance will be formed for you on the fly so that is the future serverless all right give us bumper sticker Stu and then Serb G I'll give you my quick one and then we'll wrap yeah so just Dave to play off of sharp G and to wrap it up you actually wrote about it on your preview post for here uh serverless we're talking about how developers think about things um and you know Amazon in many ways you know is the new default server uh you know for the cloud um and containerization fits into the whole serverless Paradigm uh it's the space that I live in uh you know every day here and you know I was happy to see the last few years serverless and containers there's a blurring a line and you know subject we're still going to see VMS for a long time yeah yeah we will see that so give us give us your book Instagram my number six is innovation favorite scale that's my bumper sticker and and Amazon has that but also I I want everybody else to like the viewers to take a look at the the Google Cloud as well as well as IBM with others like maybe you have a better price to Performance there for certain workloads and by the way one vendor cannot do it alone we know that for sure the market is so big there's a lot of room for uh Red Hats of the world and and and Microsoft's the world to innovate so keep an eye on them they we need the competition actually and that's why competition Will Keep Us to a place where Market sets the price one vendor doesn't so the only only danger is if if AWS is a monopoly then I will be worried I think ecosystems are the Hallmark of a great Cloud company and Amazon's got the the biggest and baddest ecosystem and I think the other thing to watch for is Industries building on top of the cloud you mentioned the Goldman Sachs NASDAQ Capital One and Warner media these all these industries are building their own clouds and that's where the real money is going to be made in the latter half of the 2020s all right we're a wrap this is Dave Valente I want to first of all thank thanks to our great sponsors AWS for for having us here this is our 10th year at the cube AMD you know sponsoring as well the the the cube here Accenture sponsor to third set upstairs upstairs on the fifth floor all the ecosystem partners that came on the cube this week and supported our mission for free content our content is always free we try to give more to the community and we we take back so go to thecube.net and you'll see all these videos go to siliconangle com for all the news wikibon.com I publish weekly a breaking analysis series I want to thank our amazing crew here you guys we have probably 30 35 people unbelievable our awesome last session John Walls uh Paul Gillen Lisa Martin Savannah Peterson John Furrier who's on a plane we appreciate Andrew and Leonard in our ear and all of our our crew Palo Alto Boston and across the country thank you so much really appreciate it all right we are a wrap AWS re invent 2022 we'll see you in two weeks we'll see you two weeks at Palo Alto ignite back here in Vegas thanks for watching thecube the leader in Enterprise and emerging Tech coverage [Music]

(ethereal music) >> Good morning, everyone, and welcome to theCUBE's day-two coverage of Snowflake Summit '22. Lisa Martin here with Dave Vellante. We are live in Las Vegas at Caesar's Forum, looking forward to an action-packed day here on theCUBE. Our first guest joins us, Bill Stratton, the global industry lead, media, entertainment and advertising at Snowflake. Bill, great to have you on the program talking about industry specifics. >> Glad to be here, excited to have a conversation. >> Yeah, the media and entertainment industry has been keeping a lot of us alive the last couple of years, probably more of a dependence on it than we've seen stuck at home. Talk to us about the data culture in the media, entertainment and advertising landscape, how is data being used today? >> Sure. Well, let's start with what you just mentioned, these last couple of years, I think, coming out of the pandemic, a lot of trends and impact to the media industry. I think there were some things happening prior to COVID, right? Streaming services were starting to accelerate. And obviously, Netflix was an early mover. Disney launched their streaming service right before the pandemic, Disney+, with ESPN+ as well. I think then, as the pandemic occurred these last two years, the acceleration of consumers' habits, obviously, of not just unbundling their cable subscription, but then choosing, you know, what services they want to subscribe to, right? I mean, I think we all sort of grew up in this era of, okay, the bundle was the bundle, you had sports, you had news, you had entertainment, whether you watched the channel or not, you had the bundle. And what the pandemic has accelerated is what I call, and I think a lot of folks call, the golden age of content. And really, the golden age of content is about the consumer. They're in control now, they pick and choose what services they want, what they watch, when they watch it. And I think that has extremely, sort of accelerated this adoption on the consumer side, and then it's creating this data ecosystem, as a result of companies like Disney having a direct-to-consumer relationship for the first time. It used to be a Disney or an NBC was a wholesaler, and the cable or satellite company had the consumer data and relationship. Now, the companies that are producing the content have the data and the consumer relationships. It's a fascinating time. >> And they're still coming over the top on the Telco networks, right? >> Absolutely right. >> Telco's playing in this game? >> Yeah, Telco is, I think what the interesting dynamic with Telco is, how do you bundle access, high speed, everybody still needs high speed at their home, with content? And so I think it's a similar bundle, but it takes on a different characteristic, because the cable and Telcos are not taking the content risk. AT&T sold Warner Media recently, and I think they looked at it and said, we're going to stay with the infrastructure, let somebody else do the content. >> And I think I heard, did I hear this right the other day, that Roku is now getting into the content business? >> Roku is getting into it. And they were early mover, right? They said the TVs aren't, the operating system in the television is not changing fast enough for content. So their dongle that you would slide into a TV was a great way to get content on connected televisions, which is the fastest growing platform. >> I was going to say, what are the economics like in this business? Because the bundles were sort of a limiting factor, in terms of the TAM. >> Yeah. >> And now, we get great content, all right, to watch "Better Call Saul", I have to get AMC+ or whatever. >> You know, your comment, your question about the economics and the TAM is an interesting one, because I think we're still working through it. One of the things, I think, that's coming to the forefront is that you have to have a subscription revenue stream. Okay? Netflix had a subscription revenue stream for the last six, eight, 10 years, significantly, but I think you even see with Netflix that they have to go to a second revenue model, which is going to be an ad-supported model, right? We see it in the press these last couple days with Reid Hastings. So I think you're going to see, obviously subscription, obviously ad-supported, but the biggest thing, back to the consumer, is that the consumer's not going to sit through two minutes of advertising to watch a 22 minute show. >> Dave: No way. >> Right? So what's then going to happen is that the content companies want to know what's relevant to you, in terms of advertising. So if I have relevancy in my ad experience, then it doesn't quite feel, it's not intrusive, and it's relevant to my experience. >> And the other vector in the TAM, just one last follow-up, is you see Amazon, with Prime, going consumption. >> Bill: That's right. >> You get it with Prime, it's sort of there, and the movies aren't the best in the world, but you can buy pretty much any movie you want on a consumption basis. >> Yeah. Just to your last quick point, there is, we saw last week, the Boston Red Sox are bundling tickets, season tickets, with a subscription to their streaming service. >> NESN+, I think it is, yeah. So just like Prime, NESN+- >> And it's like 30 bucks a month. >> -just like Prime bundling with your delivery service, you're going to start to see all kinds of bundles happen. >> Dave: Interesting. >> Man, the sky is the limit, it's like it just keeps going and proliferating. >> Bill: It does. >> You talk about, on the ad side for a second, you mentioned the relevance, and we expect that as consumers, we're so demanding, (clears throat) excuse me, we don't have the patience, one of the things I think that was in short supply during COVID, and probably still is, is patience. >> That's right. >> I think with all of us, but we expect that brands know us enough to surf up the content that they think we watched, we watched "Breaking Bad", "Better Call Saul", don't show me other things that aren't relevant to the patterns I've been showing you, the content creators have to adapt quickly to the rising and changing demands of the consumer. >> That's right. Some people even think, as you go forward and consumers have this expectation, like you just mentioned, that brands not only need to understand their own view of the consumer, and this is going to come into the Snowflake points that we talk about in a minute, but the larger view that a brand has about a consumer, not just their own view, but how they consume content, where they consume it, what other brands they even like, that all builds that picture of making it relevant for the consumer and viewer. >> Where does privacy come into the mix? So we want it to be relevant and personalized in a non-creepy way. Talk to us about the data clean rooms that Snowflake launched, >> Bill: That's right. >> and how is that facilitating from a PII perspective, or is it? >> Yeah. Great question. So I think the other major development, in addition to the pandemic, driving people watching all these shows is the fact that privacy legislation is increasing. So we started with California with the CCPA, we had GDPR in Europe, and what we're starting to see is state by state roll out different privacy legislations. At some point, it may be true that we have a federal privacy legislation, and there are some bills that are working through the legislature right now. Hard to tell what's going to happen. But to your question, the importance of privacy, and respecting privacy, is exactly happening at the same time that media companies and publishers need to piece together all the viewing habits that you have. You've probably watched, already this morning, on your PC, on your phone, and in order to bring that experience together a media company has to be able to tie that together, right? Collaborate. So you have collaboration on one side, and then you have privacy on the other, and they're not necessarily, normally, go together, Right? They're opposing forces. So now though, with Snowflake, and our data clean room, we like to call it a data collaboration platform, okay? It's not really what a data warehouse function traditionally has been, right? So if I can take data collaboration, and our clean room, what it does is it brings privacy controls to the participants. So if I'm an advertiser, and I'm a publisher, and I want to collaborate to create an advertising campaign, they both can design how they want to do that privacy-based collaboration, Because it's interesting, one company might have a different perspective of privacy, on a risk profile, than another company. So it's very hard to say one size is going to fit all. So what we at Snowflake do, with our infrastructure, is let you design how you create your own clean room. >> Is that a differentiator for Snowflake, the clean rooms? >> It's absolutely a very big differentiator. Two reasons, or probably two, three reasons, really. One is, it's cross cloud. So all the advertisers aren't going to be in the same cloud, all the publishers aren't going to be in the same cloud. One big differentiator there. Second big differentiator is, we want to be able to bring applications to the data, so our clean room can enable you to create measurement against an ad campaign without moving your data. So bringing measurement to the data, versus sending data to applications then improves the privacy. And then the third one is, frankly, our pricing model. You only pay for Snowflake what you use. So in the advertising world, there's what's called an ad tech tax, there is no ad tech tax for Snowflake, because we're simply a pay-as-you-go service. So it's a very interesting dynamic. >> So what's that stack look like, in your world? So I've pulled up Frank's chart, I took a picture of his, he's called it the new, modern data stack, I think he called it, but it had infrastructure in the bottom, okay, that's AWS, Google, Azure, and then a lot of you, live data, that would be the media data cloud, the workload execution, the specific workload here is media and entertainment, and then application development, that's a new layer of value that you're bringing in, marketplace, which is the whole ecosystem, and then monetization comes from building on top. >> Bill: Yes. >> So I got AWS in there, and other clouds, you got a big chunk of that, where do your customers add value on top of that? >> Yeah. So the way you described it, I think, with Frank's point, is right on. You have the infrastructure. We know that a lot of advertisers, for example, aren't going to use Amazon, because the retailer competes with Amazon, So they want to might be in Google or Azure. And then sort of as you go up the stack, for the data layer that is Snowflake, especially what we call first-party data, is sitting in that Snowflake environment, right? But that Snowflake environment is a distributed environment, so a Disney, who was on stage with me yesterday, she talked about, Jaya talked about their first-party datas in Snowflake, their advertisers' datas in their own Snowflake account, in their own infrastructure. And then what's interesting is is that application layer is coming to the data, and so what we're really seeing is an acceleration of companies building that application natively on Snowflake to do measurement, to do targeting, to do activation. And so, that growth of that final application layer is what we're seeing as the acceleration in the stack. >> So the more data that's in that massive distributed data cloud, the more value your customers can get out of it. And I would imagine you're just looking to tick things off that where customers are going outside of the Snowflake data cloud, let's attack that so they don't have to. >> Yeah, I think these partners, (clears throat) excuse me, and customers, it's an interesting dynamic, because they're customers of ours. But now, because anybody who is already in Snowflake can be their customer, then they're becoming our partner. So it's an interesting dynamic, because we're bringing advertisers to a Disney or an NBCU, because they already have their data in Snowflake. So the network effect that's getting created because of this layer that's being built is accelerated. >> In 2013, right after the second reinvent, I wrote a piece called "How to Compete with the Amazon Gorilla." And it seemed to us pretty obvious at the time, you're not going to win an infrastructure again, you got to build on top of it, you got to build ecosystems within industries, and the data, the connection points, that network effect that you just talked about, it's actually quite thrilling to see you guys building that. >> Well, and I think you know this too, I mean, Amazon's a great partner of ours as well, right? So they're part of our media data cloud, as Amazon, right? So we're making it easier and easier for companies to be able to spin up a clean room in places like AWS, so that they get the privacy controls and the governance that's required as well. >> What do you advise to, say, the next generation of media and advertising companies who may be really early in the data journey? Obviously, there's competition right here in the rear view mirror, but we've seen services that launch and fail, what do you advise to those folks that maybe are early in the journey and how can Snowflake help them accelerate that to be able to launch services they can monetize, and get those consumers watching? >> I think the first thing for a lot of these brands is that they need to really own their data. And what I mean by that is, they need to understand the consumer relationship that they have, they need to take the privacy and the governance very seriously, and they need to start building that muscle. It's almost, it's a routine and a muscle that they just need to continue to kind of build up, because if you think about it, a media company spends two, three hours a day with their customer. You might watch two hours of a streaming show, but how much time do you spend with a single brand a day? Maybe 30 seconds, maybe 10 seconds, right? And so, their need to build the muscle, to be able to collect the data in a privacy-compliant way, build the intelligence off of that, and then leverage the intelligence. We talked about it a few days ago, and you look at a retailer, as a really good example, a retailer is using Snowflake and the retail data cloud to optimize their supply chain. Okay? But their supply chain extends beyond their own infrastructure to the advertising and marketing community, because if I can't predict demand, how do I then connect it to my supply chain? So our media data cloud is helping retailers and consumer product goods companies actually drive demand into their reconstructed supply chain. So they both work together. >> So you have a big focus, obviously, on the monetization piece, of course, that's a great place to start. Where do you see the media data cloud going? >> Yeah. I think we'll start to expand beyond advertising and beyond marketing. There's really important sub-segments of media. Gaming is one. You talk about the pandemic and teenagers playing games on their phones. So we'll have an emphasis around gaming. We'll have an emphasis in sports. Sports is going through a big change in an ecosystem. And there's a big opportunity to connect the dots in those ecosystems as well. And then I think, to what we were just talking about, I think connecting commerce and media is a very important area. And I think the two are still very loosely connected today. It used to be, could I buy the Jennifer Aniston sweater from "Friends", right? That was always the analogy. Now, media and social media, and TikTok and everything else, are combining media and commerce very closely. So I think we'll start to see more focus around that as well. So that adds to your monetization. >> Right, right. And you can NFT that. (Lisa laughs) >> Bill: That's right, there you go, you can mint an NFT on that. >> It's the tip of the iceberg. >> Absolutely. >> There's so much more potential to go. Bill, thank you so much for joining us bright and early this morning, talking about what snowflake is doing in media, entertainment and advertising. Exciting stuff, relevant to all of us, we appreciate your insights and your forward-looking statements. >> Thank you for having me. I enjoyed it. >> Our pleasure. >> Thank you. >> Good >> Bill: Bye now. >> For our guest and Dave Vellante, I'm Lisa Martin, you're up early with us watching theCUBE's day-two coverage of Snowflake Summit '22. We'll be back in a moment with our next guest. (upbeat music)