la from Las Vegas it's the cube covering AWS reinvent 2019 brought to you by Amazon Web Services and in care along with its ecosystem partners hey welcome back everyone cubes live coverage of eight of us reinvent 2019 this is the cube seventh year covering Amazon reinvent it's their eighth year of the conference and want to just shout out to Intel for their sponsorship for these two amazing sets without their support we would be able to bring our mission of great content to you I'm John Force to many men we're here with the chief of AWS the chief executive officer Andy chassis tech athlete and himself three our keynotes welcome to the cube again great to see you great to be here thanks for having me guys congratulations on a great show a lot of great buzz thank you a lot of good stuff your keynote was phenomenal you get right into you giddy up right into as you say three hours 30 announcements you guys do a lot but what I liked the new addition in the last year and this year is the band house man yeah they're pretty good they hit the Queen note so that keeps it balanced so we're going to work on getting a band for the cube awesome so if I have to ask you what's your walk-up song what would it be there's so many choices depends what kind of mood I'm in but maybe times like these by the Foo Fighters these are unusual times right now Foo Fighters playing at the Amazon intersect show they are Gandy well congratulations on the intersect you got a lot going on intersect is the music festival I'll get that in a second but I think the big news for me is two things obviously we had a one-on-one exclusive interview and you laid out essentially what looks like was gonna be your keynote it was transformation key for the practice I'm glad to practice use me anytime yeah and I like to appreciate the comments on Jedi on the record that was great but I think the transformation story is a very real one but the NFL news you guys just announced to me was so much fun and relevant you had the Commissioner of NFL on stage with you talking about a strategic partnership that is as top-down aggressive goals you could get yeah I have Roger Goodell fly to a tech conference to sit with you and then bring his team talk about the deal well you know we've been partners with the NFL for a while with the next-gen stats are they using all their telecasts and one of the things I really like about Roger is that he's very curious and very interested in technology in the first couple times I spoke with him he asked me so many questions about ways the NFL might be able to use the cloud and digital transformation to transform their various experiences and he's always said if you have a creative idea or something you think that could change the world for us just call me is it or text me or email me and I'll call you back within 24 hours and so we've spent the better part of the last year talking about a lot of really interesting strategic ways that they can evolve their experience both for fans as well as their players and the player health and safe safety initiative it's so important in sports and particularly important with the NFL given the nature of the sport and they've always had a focus on it but what you can do with computer vision and machine learning algorithms and then building a digital athlete which is really like a digital twin of each athlete so you understand what does it look like when they're healthy what and compare that when it looks like they may not be healthy and be able to simulate all kinds of different combinations of player hits and angles and different plays so that you can try to predict injuries and predict the right equipment you need before there's a problem can be really transformational so it was super excited about it did you guys come up with the idea it was the collaboration between there's really a collaboration I mean they look they are very focused on player's safety and health and it's it's a big deal for their you know they have two main constituents that the players and fans and they care deeply about the players and it's a it's a hard problem in a sport like football but you watch it yeah I gotta say it does point out the use cases of what you guys are promoting heavily at the show here of the stage maker studio which is a big part of your keynote where they have all this data right and they're dated hoarders they've the hoard data but they're the manual process of going through the data it was a killer problem this is consistent with a lot of the enterprises that are out there they have more data than they even know so this seems to be a big part of the strategy how do you get the customers to actually a wake up to the fact that they got data and how do you tie that together I think in almost every company they know they have a lot of data and there are always pockets of people who want to do something with it but when you're gonna make these really big leaps forward these transformations so things like Volkswagen is doing with they're reinventing their factories in their manufacturing process or the NFL where they're gonna radically transform how they do players health and safety it starts top-down and if they if the senior leader isn't convicted about wanting to take that leap forward and trying something different and organizing the data differently and organizing the team differently and using machine learning and getting help from us and building algorithms and building some muscle inside the company it just doesn't happen because it's not in the normal machinery of what most companies do and so it all wait almost always starts top-down sometimes it can be the commissioner or the CEO sometimes it can be the CIO but it has to be senior level conviction or it does get off the ground and the business model impact has to be real for NFL they know concussions hurting their youth pipelining this is a huge issue for them is their business model they they lose even more players to lower extremity injuries and so just the notion of trying to be able to predict injuries and you know the impact it can have on rules the impact it can have on the equipment they use it's a huge game changer when they look at the next 10 to 20 years all right love geeking out on the NFL but no more do you know off camera a 10 man is here defeated season so everybody's a Patriots fan now it's fascinating to watch you and your three-hour keynote Vernor in his you know architectural discussion really showed how AWS is really extending its reach you know it's not just a place for a few years people have been talking about you know cloud as an operation operational model it's not a destination or a location but I felt that really was laid out is you talked about breadth and depth and Verna really talked about you know architectural differentiation people talk about cloud but there are very there are a lot of differences between the vision for where things are going help us understand and why I mean Amazon's vision is still a bit different from what other people talk about where this whole cloud expansion journey but put over what tagger label you want on it but you know the control plane and the technology that you're building and where you see that going well I think that we've talked about this a couple times we we have two macro types of customers we have those that really want to get at the load level building blocks and stitch them together creatively and however they see fit to create whatever is in there in their heads and then we have this second segment of customers who say look I'm willing to give up some of that flexibility in exchange for getting 80% of the way they're much faster in an abstraction that's different from those low level building blocks in both segments of builders we want to serve and serve well and so we built very significant offerings in both areas I think when you look at micro services you know some of it has to do with the fact that we have this very strongly held belief born out of several years at Amazon where you know the first seven or eight years of Amazon's consumer business we basically jumbled together all of the parts of our technology and moving really quickly and when we wanted to move quickly where you had to impact multiple internal development teams it was so long because it was this big ball this big monolithic piece and we got religion about that and trying to move faster in the consumer business and having to tease those pieces apart and it really was a lot of the impetus behind conceiving AWS where it was these low-level very flexible building blocks that don't try and make all the decisions for customers they get to make them themselves and some of the micro services that you saw Verner talking about just you know for instance what we what we did with nitro or even what we do with firecracker those are very much about us relentlessly working to continue to to tease apart the different components and even things that look like low-level building blocks over time you build more and more features and all of a sudden you realize they have a lot of things that are they were combined together that you wished weren't that slowed you down and so nitro was a completely reimagining of our hypervisor and virtualization layer to allow us both to let customers have better performance but also to let us move faster and have a better security story for our customers I got to ask you the question around transformation because I think it all points to that all the data points you got all the references goldman-sachs on stage at the keynote Cerner and the healthcare just an amazing example because I mean this demonstrating real value there there's no excuse I talked to someone who wouldn't be named last night and then around the area said the CIA has a cost bar like this cost up on a budget like this but the demand for mission based apps is going up exponentially so there's need for the cloud and so seeing more and more of that what is your top-down aggressive goals to fill that solution base because you're also very transformational thinker what is your what is your aggressive top-down goals for your organization because you're serving a market with trillions of dollars of span that's shifting that's on the table a lot of competition now sees it too they're gonna go after it but at the end of the day you have customers that have that demand for things apps yeah and not a lot of budget increase at the same time this is a huge dynamic what's your goals you know I think that at a high level are top-down aggressive goals so that we want every single customer who uses our platform to have an outstanding customer experience and we want that outstanding customer experience in part is that their operational performance and their security are outstanding but also that it allows them to build and it build projects and initiatives that change their customer experience and allow them to be a sustainable successful business over a long period of time and then we also really want to be the technology infrastructure platform under all the applications that people build and they were realistic we know that that you know the market segments we address with infrastructure software hardware and data center services globally are trillions of dollars in the long term it won't only be us but we have that goal of wanting to serve every application and that requires not just the security operational performance but also a lot of functionality a lot of capability we have by far the most amount of capability out there and yet I would tell you we have three to five years of items on our roadmap that customers want us to add and that's just what we know today well and any underneath the covers you've been going through some transformation when we talked a couple years ago about how serverless is impacting things I've heard that that's actually in many ways glue behind the two pizza teams to work between organizations talk about how the internal transformations are happening how that impacts your discussions with customers that are going through that transformation well I mean there's a lot of a lot of the technology we build comes from things that we're doing ourselves you know and that we're learning ourselves it's kind of how we started thinking about microservices serverless - we saw the need we know we would have we would build all these functions that when some kind of object came into an object store we would spin up compute all those tasks would take like three or four hundred milliseconds then we spin it back down and yet we'd have to keep a cluster up in multiple availability zones because we needed that fault tolerance and it was we just said this is wasteful and that's part of how we came up with lambda and that you know when we were thinking about lambda people understandably said well if we build lambda and we build the serverless event-driven computing a lot of people who are keeping clusters of instances aren't going to use them anymore it's going to lead to less absolute revenue for us but we we have learned this lesson over the last 20 years at Amazon which is if it's something it's good for customers you're much better off cannibalizing yourself and doing the right thing for customers and being part of shaping something and I think if you look at the history of Technology you always build things and people say well that's gonna cannibalize this and people are gonna spend less money what really ends up happening is they spend spend less money per unit of compute but it allows them to do so much more that the ultimately long-term end up being you know more significant customers I mean you are like beating the drum all the time customers what they say we implement the roadmap I got that you guys have that playbook down that's been really successful for you yeah two years ago you told me machine learning was really important to you because your customers told what's the next tranche of importance for customers what's on top of mine now as you look at this reinvent kind of coming to a close replays tonight you had conversations your your tech a fleet you're running around doing speeches talking to customers what's that next hill from from my fist machine learning today there's so much I mean that's not it's not a soup question you know I think we're still in this in the very early days of machine learning it's not like most companies have mastered yet even though they're using it much more than they did in the past but you know I think machine learning for sure I think the edge for sure I think that we're optimistic about quantum computing even though I think it'll be a few years before it's really broadly useful we're very enthusiastic about robotics I think the amount of functions are going to be done by these robotic applications are much more expansive than people realize it doesn't mean humans won't have jobs they're just going to work on things that are more value-added I thought we're believers in augmented and virtual reality we're big believers and what's going to happen with voice and I'm also I think sometimes people get bored you know I think you're even bored with machine learning maybe already but yet people get bored with the things you've heard about but I think just what we've done with the chips you know in terms of giving people 40% better price performance in the latest generation of x86 processors it's pretty unbelievable and the difference in what people are going to be able to do or just look at big data I mean big date we haven't gotten through big data where people have totally solved it the amount of data that companies want to store process and analyze is exponentially larger than it was a few years ago and it will I think exponentially increase again in the next few years you need different tools the service I think we're not we're not for with machine learning we're excited to get started because we have all this data from the video and you guys got sage maker yeah we call it a stairway to machine learning heaven we start with the data move up what now guys are very sophisticated with what you do with technology and machine learning and there's so much I mean we're just kind of again in this early innings and I think that it was soaked before sage maker was so hard for everyday developers and data scientists to build models but the combination of sage maker and what's happened with thousands of companies standardizing on it the last two years Plus now sage maker studio giant leap forward we hope to use the data to transform our experience with our audience and we're on Amazon Cloud I really appreciate that and appreciate your support if we're with Amazon and Instant get that machine learning going a little faster for us a big that'll be better if you have requests so any I'm you talked about that you've got the customers that are builders and the customers that need simplification traditionally when you get into the you know the heart of the majority of adoption of something you really need to simplify that environment but when I think about the successful enterprise of the future they need to be builders yeah so has the model flipped if you know I normally would said enterprise want to pay for solutions because they don't have the skill set but if they're gonna succeed in this new economy they need to go through that transformation that yeah so I mean are we in just a total new era when we look back will this be different than some of these previous waves it's a it's a really good question Stu and I I don't think there's a simple answer to it I think that a lot of enterprises in some ways I think wish that they could just skip the low level building blocks and and only operate at that higher level abstraction it's why people were so excited by things like sage maker or code guru or Kendra or contact lens these are all services that allow them to just send us data and then run it on our models and get back the answers but I think one of the big trends that we see with enterprises is that they are taking more and more of their development in-house and they are wanting to operate more and more like startups I think that they admire what companies like Airbnb and Pinterest and slack and and you know Robin Hood and a whole bunch of those companies stripe have done and so when you know I think you go through these phases and errors where there are waves of success at different companies and then others want to follow that success and and replicate and so we see more and more enterprises saying we need to take back a lot of that development in-house and as they do that and as they add more developers those developers in most cases like to deal with the building blocks and they have a lot of ideas on how they can create us to creatively stitch them together on that point I want to just quickly ask you on Amazon versus other clouds because you made a comment to me in our interview about how hard it is to provide a service that to other people and it's hard to have a service that you're using yourself and turn that around and the most quoted line in my story was the compression algorithm there's no compression outliving for experience which to me is the diseconomies of scale for taking shortcuts yeah and so I think this is a really interesting point just add some color comments or I think this is a fundamental difference between AWS and others because you guys have a trajectory over the years of serving at scale customers wherever they are whatever they want to do now you got micro services it's even more complex that's hard yeah how about that I think there are a few elements to that notion of there's no compression algorithm I think the first thing to know about AWS which is different is we just come from a different heritage in a different background we sweep ran a business for a long time that was our sole business that was a consumer retail business that was very low margin and so we had to operate a very large scale given how many people were using us but also we had to run infrastructure services deep in the stack compute storage and database in reliable scalable data centers at very low costs and margins and so when you look at our our business it actually today I mean it's it's a higher margin business in our retail business the lower margin business and software companies but at real scale it's a it's a high-volume relatively low margin business and the way that you have to operate to be successful with those businesses and the things you have to think about and that DNA come from the type of operators that we have to be in our consumer retail business and there's nobody else in our space that does that you know the way that we think about cost the way we think about innovation and the data center and and I also think the way that we operate services and how long we've been operating services of the company it's a very different mindset than operating package software then you look at when you think about some of the issues and very large scale cloud you can't learn some of those lessons until you get two different elbows of the curve and scale and so what I was telling you is it's really different to run your own platform for your own users where you get to tell them exactly how it's going to be done but that's nothing really the way the real world works I mean we have millions of external customers who use us from every imaginable country and location whenever they want without any warning for lots of different use cases and they have lots of design patterns and we don't get to tell them what to do and so operating a cloud like that at a scale that's several times larger the next few providers combined is a very different endeavor and a very different operating rigor well you got to keep raising the bar you guys do a great job really impress again another tsunami of announcements in fact you had to spill the beans early with quantum the day before the event tight schedule I gotta ask you about the music festival because I think there's a really cool innovation it's the inaugural intersex conference yeah it's not part of replay which is the concert tonight right it's a whole new thing big music act you're a big music buff your daughter's an artist why did you do this what's the purpose what's your goal yeah it's an experiment I think that what's happened is that reinvent has gotten so big with 65,000 people here that to do the party which we do every year it's like a thirty five forty thousand person concert now which means you have to have a location that has multiple stages and you know we thought about it last year when we were watching it and we said we're kind of throwing like a four hour music festival right now there's multiple stages and it's quite expensive to set up that set for our partying we said well maybe we don't have to spend all that money for four hours in the rip it apart because actually the rent to keep those locations for another two days is much smaller than the cost of actually building multiple stages and so we we would try it this year we're very passionate about music as a business and I think we are I think our customers feel like we throw in a pretty good music party the last few years and we thought we were trying at a larger scale as an experiment and if you look at the economics the headliners real quick the Foo Fighters are headlining on Saturday night Anderson Park and the free Nashville free Nationals Brandi Carlile Shawn Mullins Willie Porter it's a good set Friday night it's back in Kacey Musgraves so it's it's a really great set of about 30 artists and we're hopeful that if we can build a great experience that people want to attend that we can do it it's scale and it might be something that you know both pays for itself and maybe helps pay for reinvent to overtime and you know I think that we're also thinking about it as not just a music concert and festival the reason we named it intersect is that we want an intersection of music genres and people and ethnicities and age groups and art and Technology all there together and this will be the first year we try it it's an experiment and we're really excited about I'm gone congratulations all your success and I want to thank you we've been seven years here at reinvent we've been documenting the history two sets now once-dead upstairs so appreciate a cube is part of reinvent you know you guys really are a part of the event and we really appreciate your coming here and I know people appreciate the content you create as well and we just launched cube 365 on Amazon Marketplace built on AWS so thanks for letting us cool build on the platform appreciate it thanks for having me guys Jesse the CEO of AWS here inside the cube it's our seventh year covering and documenting they're just the thunderous innovation that Amazon is doing they're really doing amazing work building out the new technologies here in the cloud computing world I'm John Force too many men be right back with more after this short break [Music]