>>Mhm Hello and welcome to today's session of the 2021 aws Global Public Sector partner awards. I'm Natalie early, your host for the cube and I'm delighted to present our guests. They are Jose Montero, ceo logitech the central America and Rafael Ramirez Product manager. Costa rica Ministry of Education. Welcome gentlemen to today's session. >>Think in Italy >>religion and belief. Well, let's start with Rafael. Please tell us about some of the key challenges that are affecting the Ministry of Education in Post A Rekha. >>One of the main challenges was to be able to have a product that is always available to schools that is easy to use for schools and at the same time that the product should be user friendly. That is you don't need so much training for schools to use it more. A few things that we thought of was to consider our client because schools have a very limited connectivity so we could not use very highly tech technologies because that required very huge. Both advanced and our clients, the schools would be subject to a service that was not available to them. One of the main things was to consider the client and how to reach them. Thanks to Ed attack, the ministry made an alliance with a company that thought about the innovation and they recommended different services that we can provide with a cloud through the cloud so that we are able to get to take the service to deliver the service to our clients and then they can use the platform that we are building in an easy way and at the same time to take care of the quality they need. Something important about schools was that while they were using the product, they were getting benefit that made schools to be willing to participate. >>Terrific. Well Jose I'd love it if you could give us some insight on some of the services that you are providing to the ministry. >>Sure. Um, so when, when the ministry approaches and um, and we had the opportunity to work with them um, of course, as an AWS partner, we thought, well, this is couldn't be better, right? And um, so we um, we we started to think on all of the different services that AWS offers in the cloud to provide to the ministry to be able to reach this gap. That has been for a long time where you see still, you know, people using Excel, using access Microsoft access as databases, um, instead of using all of the energy and all of the, the power that the cloud has. So when we approach to them and um, and we were able to um um, to show all of these different services that AWS could um, could provide to the Minister of Education. It was it was a perfect marriage. So, um, we we started to work with uh, with them and I think it's been awesome. This is only the first part of of a project of eight stages, We are currently working on stage two and stage Three, which will come in August and in January of 2020, And, um, but we're we're super happy to to see just in this first face, everything that has come and all of the data that has come to help the Ministry of Education in order to take action in the student's lives. >>Yeah, that's really terrific to hear. Um, you know, I'd love to hear from Rafael further about why he thinks it was so important to have cloud data at the Ministry of Education level. >>Okay, I >>will give you an important example for us in our country. We would rather gather the, collect data in paper and take that to the central office and this would enter into an Excel file. This take around two months to process all this later and make decisions. Mm When we started with the first service, which was to record the number of enrollees of the students, we could pay teachers on time, we could get the number of students and know where we had the biggest needs. So this would make a very innovative solution. And when the pandemic started, we had the first active service. This allowed us to react very quickly and we realized that in the first quarter, 19,000 students were not in in our schools because we were from a face to face service to a virtual service. So we could react very quickly. We plant a strategy with the Ministry of Education that was to come back. That is the idea goes to locate where students were. And in the next four months we could reduce the dropout From 90 students to 18,000 students. After that, we initiated a Another stage to retrieve those 18,000 students back to school. This was thanks to having the information online in some countries that may not have this problem. This might be very little. But for us, this was very, very important because we were able to reach the poll a wrist households so as to bring those students back to the school. >>Terrific. Well, that's really fantastic. Um, you know, in a non covid world, how do you think this technology will really help you, uh, to enhance education within Costa rica? See I can't. The important thing. >>This is important in the idea of this innovative product for us has a strategy of having a single file of the student. This allows us to do a follow up of what the student has done during the different school years and we can identify their lacks the weaknesses and we can see which are the programs that are more appropriate. Was to replicate this in the rest of the country without a centralized file. Like we have now, we are looking to have this traceability of students so as to have strengthened our witnesses and replicate our strength in the rest of the educational system. one of the most important things when you is that this technological unit, this implementation not only reached primary school students, but also preschool kindergarten, primary school, secondary school higher education, technical Education. So we reached every single sector where the Ministry of Education was able to detect where there was a need in the country. >>Yeah, Terrific. Well, I'd love to hear more from our other guest Jose monteiro Ceo of ecotech to central America. Uh, you know, if you could give us a, you know, more insight, more depth on the services that you provide. You, you talked about like an eight step plan. If you could just highlight those eight steps. >>Sure. Um, so part of this aid stages that we're going to be developing and um, and we hope that we'll be working with the Ministry of Education and every single one of them. Um, It causes where it brings a lot of technologies. For example, there's one that were planning on using, which is recognition from AWS. Um, the fact of um, there was, there's a lot of students that come to the country that have no documentation. There's no passports, There's no um, document I. D. There's nothing, right? So it's really hard for a um within the same school system to be able to track these students, right? Because they can they can go, they can come and they can, if they want, they can change their name. They can they can do a lot of things that are maybe are not correct. And um and sometimes it's not even because they want to do something incorrect. It's just that the uh the system or the yeah the the way of doing things manually, it allows us to do these types of changes. So for example, with with the service like recognition have been able to recognize their face or or recognize their um their idea with their with their fingerprints um and and being able to a um to interact and give give an actual recognition as the word says to this student. It's amazing. It's amazing technology that allows the Ministry of Education and the students to have a voice to have a presence even though they don't have their actual documentation because of whatever reason. Um There is something behind this that helps them um b be valuable and the b at the same time, a present in the in the system. Right? And so and and with with not only that, but with the grading with um with the attendance, with with the behavior with um with a lot of things that we're creating within these stages. Uh It's gonna be, for example, let me give you a quick example. Um There's, for example, the system that we've created for the dropouts. Um The student doesn't come one day, two days, three days and automatically. Now it'll, it'll become an alert and it will start to shot emails and alerts to the different people involved in order to see, hey listen, this student has not come for the last week, two classes. Um, we need you to go and see what's going on, Right? So this is maybe it is something very small, but it can, it can change people's life and they can change students lives and um, and, and the fact of, of knowing where they are, how they are, how are they doing, how their grades are, where we can help them and activate these different types of alerts that, um, that the system allows them to, um, to do that. It helps incredibly, the life of the student in the future, of this, of this student. And uh, in that exact, that is exactly what we're trying to do here. At the end. It's not only, um, it's okay, all of the technological and all of the different efforts that we're doing, but at the end, that's what it matters. It's, it's the student, right? It's it's the fact that, um, that he can come and he can finish his school, he can graduate, he can go to college, he can, he can become an, uh, an entrepreneur and, and be some, some day here and I at AWS conference and give him give a conference, and, and and that is exactly what the Ministry of Education is looking at, what we are looking at the project per se. >>Yeah, I mean, that's a really excellent point that you're making. I mean, this technology is helping real people on the ground and actually shaping their lives for the better. So, I mean, it's really incredible, you know, I'd love to hear more now from Rafael, just a bit what insight he can provide to other ministries, who, you know, also, you know, ministers of Education, who also would consider implementing this kind of technology and also his own experience um with this project in the AWS. >>Well, the connectivity for us is really important, not only with within the institutions of the Ministry of Education, but we also have connections with the Ministry of Health, we also have connections with the software called Sienna Julia, which allows the identification of people within the country and the benefits provided by the stage. So the country where all by little is incorporating the pieces and these cloud services, we have found that before we developed everything AWS has a set of services that allow us to focus on the problem and instead of on the solution of the technology, because services are already available. So at the country level, other ministries are incorporating these services nowadays, for covid management, the Minister of Health has a set of applications that allowed to set links between people that has positive. So this has allowed us to associate the situation with that particular student in our classrooms. So little by little services are converting education and other services into a need that allows us to focus on the problem instead of on technological solutions because services are already there for us to consume >>terrific. You know, I'd love to now shift to our other guest um Jose could you give us some insight what is the next phase for your business when you look at 2021? You know, it's gonna be, I mean, we hope it's going to be a wonderful year. Uh post Covid. Uh you know, what's your vision? >>It's it's interesting that you're saying that Natalie um education has changed Covid has um has put an acceleration to um has accelerated the the whole shift of the technological change in in education. It will not, well I hope it will not go back to the same before Covid. Um it's all of these technologies that are being created that are being organized, that are being it developed um for education specifically um an area where everything has been done the same for a long time. Um we need it, it's crazy to say this, but we needed a Covid time in order to accelerate this type of of organizations right in and now like ministry, the ministries of Education, like like the Minister of Education of Costa rica, they've had this for a long time and they've they've been thinking of the importance of making changes and everything, but until now it became a priority. Why? Because they realized that without these technologies with another pandemic, oh boy, we're going to see the effects of this and, and, and it's going to affect a lot of countries and a lot of students. Um, but it's gonna help to accelerate and understand that for example, internet, it has to be a worldwide access, just like water or electricity is in some, in our countries right now. You know, the fact of a student not having internet, um, we're taking away lot of development for this student. So I believe that after this post covid time education is going to continue to do a lot of changes and you and you'll see this and you'll see this in all of the areas in elementary, in preschool, in university, in high school. Um, you're going to see the changes that this is, um, is starting to do and we've seen it and we've seen it, but now it's going to be at a 23 or four X. So we're pretty excited. We're pretty excited what what the world it's gonna what the world's gonna bring to this table and to this specific area which is education. >>Yeah. That's really terrific to hear a silver lining in this pandemic. And just real quick uh final thoughts from rafael, are you looking to ramp up further? Uh you know, in light of what Jose has said, you know, to ramp up the digital transformation process? >>Yes, I believe this is an opportunity. The country is facing the opportunity, the resistance that we had in the sector of education, the current emergency situation. And they need to use virtual tools Have flattened these curves and narratives. Since 2000 and 20, Costa Rica started a very strong uh teach that trainer process that every four years ago it was very difficult to set to involve all teachers. But nowadays all teachers want to get trained. So we are getting there with virtual trainings with new tools, with the implementation and the use of technology in the classroom. So these kinds of emergencies somehow we have to uh, we know the pain but we know that also the gain of this whole idea of this whole situation. So this opportunity for change is something that we have to take advantage of. Thanks to these cloud services, I believe this is nowadays available and the country realized that these things are closer than what we thought of. An innovation is here to stay and I believe we have to exploit this a little by little >>terrific. Well gentlemen, thank you so much for your insights, loved hearing about the innovations taking place in the classroom, especially overseas in Costa rica. And that of course was Rafael Ramirez, the Product Manager, Costa rica, Ministry of Education, as well as Jose monteiro, the ceo of Ecotech D central America. And of course, I'm Natalie ehrlich, your host for the cube for today's session for the 2021 AWS Global Public Sector Partner Awards. Thanks very much for watching. >>Mhm.

>> live from Boston, Massachusetts. It's the Cube covering AWS reinforce 2019. Brought to you by Amazon Web service is and its ecosystem partners. >> Okay, welcome back. It was two cubes. Live coverage in Boston, Massachusetts, for Amazon Web services reinforces A W s, his first inaugural conference around security, cloud security and all the benefits of security vendors of bringing. We're here with a man who runs the marketplace and more. Dave McCann Cube, alumni vice president of migration, marketplace and control surfaces. That's a new tail you were that you have here since the last time we talked. Lots changed. Give us the update. Welcome to the Cube. >> Great to be back, ma'am. Believe it's seven months of every event. >> Feels like this. Seven years. You know, you've got a lot new things happening. >> We do >> explain. You have new responsibility. You got the marketplace, which we talked about a great product solutions. What else do you have? >> So we've obviously been expanding our service portfolio, right? So either us is launching. New service is all the time. We have a set of service is a road in the migration of software. So I run. No, the immigration Service's team and interesting. We were sitting in Boston, and that's actually headquartered 800 yards down the road. So there's a set of surfaces around the tools to help you as a CEO. Move your applications onto the clothes. Marketplace is obviously where we want you to find short where you need to buy. And then once you get into the topic of governance, we had one product called Service Catalog and reinvent. We announced a new product. That was a preview called Control. Yesterday we went to G A full availability off control, Terror and Control term service catalog together are in the government space, but we're calling them control service is because it's around controlling the access off teams to particular resources. So that's control service. >> What people moving into the cloud and give us a sense of the the workload. I know you see everything but any patterns that you can see a >> lot of patterns and merging and migration, and they are very industry specific. But there are some common patterns, so you know we're doing migrations and frozen companies were weighed and professional service is run by. Todd Weatherby is engaged in hundreds of those migrations. But we also have no over 70 partners that we've certified of migration partners. Migration partners are doing three times as many migrations as our old professional service is. Team are doing so in collection. There's a lot going on there, one of the common patterns. First of all, everybody is moved a Web development other websites have done. They're all running on the AWS know what they're doing is they're modernizing new applications. So the building in Europe or bring enough over moving onto containers. So it was a lie that ran on a sever server on. As they move into the clothes, they're gonna reshape the throw away. Some of the court brief the court up into micro service is on. Deploy out, Let's see on E. C s, which is continuing. There's a lot of application organization, and then on the migration side, we're seeing applications clearly were migrating a lost a lot of ASAP. So the big partners like Deloitte and Accenture are doing a C P migrations, and we've done a lot of ASAP migrations. And then there are other business applications are being moved with particular software vendors. You know there's a company here in Boston called Pegasystems. They do a world leading workflow platform. We've worked with Pagan, and we have migrated loss of paga warped floors in dozens of paying customers up on the float. >> You innovated on the marketplace, which is where people buy so they can contract with software. So now you got moving to the cloud, buying on the cloud, consuming the cloud and then governing it and managing that aspect all under one cohesive unit. That's you. Is that good? >> Yeah, it's a good way to think about it. It's a san of engineering teams with Coleman purpose for the customer. So you know, one of the things we do AWS is we innovate a lot, and then we organize the engineering teams around a common customer needs. So we said, above all of the computer stories service is on. We pay attention to the application layer. We described the application, So if you think of a migration service is says, I've actually got a service called Discovery, I crawl over your servers and I find what you have way. Then what we do is we have a tool that says, Are you gonna bring and move the till. So you have to build a business case. We just bought a company in Canada called TSA Logic. They had a Super Two for building a business case that said, what would this absolutely running with either of us. >> So is the need of the business case. What's the courtney that you guys have focused on? What was that? >> So, interestingly, we run more Windows Server and the clothes when Microsoft. So you actually have to business keys here. So many windows servers are running on print. What does it look like when a run on either the U. S. And T s so logic? Really good, too. And we find our customers using it. That says, Here's your own prim Windows server configuration with an app on run the mortal What would it look like when it runs on AWS? >> But why would you just do that with a spreadsheet? What? What is the T s so logic do that you couldn't do especially >> well? First of all, you want to make a simple too Somebody has to go run a spreadsheet. They've turned it into a tool that a business years Ercan used a sales person you could use on. They've built on top of a database. So it's got a rich set of choices. You are richer than you put in. A special with a U IE is intuitive, and you're gonna learn it in 20 minutes. I'm not gonna have you made up >> this date in their best practice things like that that you can draw a library >> of what's going down, and it keeps the data store of all the ones we've done. So we're turning that into two. Were giving Old Toller solution architect. >> Well, you got a good thing going on with the marketplace. Good to see you wrapping around those needs there. I gotta ask for the marketplace. Just give us the latest stats. How many subscriptions air in the marketplace these days? What's the overall number in the marketplace? It's >> pretty exciting. Way decided just at San Francisco to announce that we now have over 1,000,000 active subscriptions in the marketplace, which is a main boggling number on its own 1,000,000 subscriptions. Ice of Scrape. Within those subscriptions, we've got over 240 foes and active accounts, you know, and the audience doors you could be an enterprise with 100 cases and in an enterprise. What we typically see is that there are seven or eight teams that are buying or using software, so we'll have seven or eight accounts that have the right to subscribe. So you could be a one team and you're in another team you're buying B I tools. You're buying security tools. So those accounts on what? We're announcing the show for the first time ever. Its security is we have over 100,000 security subscriptions. That's a while. That's a big number. Some companies only have 100 customers, and the market, please. Our customers are switched on 100,000 security. So >> many product listings is that roughly it's just security security. At 300 >> there's over 100 listings. Thing is a product with a price okay on a vendor could be Let's see Paolo off networks or crowdstrike or trains or semantic or McAfee or a brand new company like Twist located of Israel. These companies might have one offer or 20 offers, so we have over 800 offers from over 300. Vendors were having new vendors every week. >> That's the next question. How many security app developers are eyes? Do you have over 300? 300? Okay. About 100. Anyway, I heard >> this morning from Gartner that they believe that are over 1000 security vendors. So I'm only 30% done. I got a little work >> tonight. How >> do you >> govern all this stuff? I was a customer. Sort of Make sure that they're in compliance. >> Great question. Steven Smith yesterday was talking about governance once she moved things on the clothes. It's very elastic. You could be running it today, not running a tomato, running it in I d running in Sydney. So it's easy to fire up running everywhere. So how did the governance team of a company nor watch running where you know, you get into tagging, everything has to be tagged. Everything has to have a cord attached to it. And then you do want to control who gets to use what I may have bought about a cuter appliance. But I don't know that I gave you rates to use it, right, so we could have border on behalf of the company. But I need to grant you access. So we launched a couple of years ago. Service catalog is our first governance to and yesterday we went into full release over new to call the control tower. >> Right. What you announced way reinvents >> preview. And yesterday we went to Jenny. What control does is it Natural Owes me to set up a set of accounts. So if you think of it, your development team, you've got David Kay and tested and the product ain't your brand new to the company. I'm a little worried. What, you're going to get up. You >> don't want to give him the keys to the kingdom, >> so I'm actually going to grant you access to a set of resources, and then I'm gonna apply some rules, or what we call God reels is your brand. You you haven't read my manual, you're in the company. So I'm gonna put a set of God reels on you to make sure that you follow our guide length >> Just training. And so is pressing the wrong button, that kind of thing. So I gotta ask you I mean, on the buying side consumption. I heard you say in a talk upstairs on Monday. You have a buyer, buyer, lead, engineering teams and cellar Let engineering, which tells me that you got a lot of innovation going on the marketplace. So the results are obviously they mention the listings. But one of the trends that's here security conference and it was proper is ecosystems importance in monetization. So back in the old days, Channel partners were a big part of the old computer industry. You're essentially going direct with service listings, which is great. How does that help the channel? Is there sinking around channel as a buyer opportunity? How do you How does that work with the market? Is what your thinking around the relationship between the scale of a simplicity and efficiency, the marketplace with the relationships the channel partners may have with their customers? And how do you bridge that together? What's the thinking >> you've overstayed? Been around a long time? >> Uh, so you have 90 Sydney? Well, the channels have been modernizes the nineties. You think about a >> long time. It's really interesting when we conceived Market please candidly. Way didn't put the channel in marketplace, and in retrospect, that was a miss. Our customers are big customers or small customers. Trust some of the resellers. Some resellers operates surely on price. Some resellers bring a lot of knowledge, even the biggest of the global 2000 Fortune 100. They have a prepared advisor. Let's take a company record. You often got 700 security engineers that are blue chip companies in America trusts or they buy the software the adoptive recommends. So mark it, please really didn't accommodate for Let's Pick another One in Europe, it would be computer center. So in the last two years we've dedicated the data separate engineering team were actually opened up. A team in a different city on their sole customer is a reseller. And so we launch this thing called Consulting Partner Private offer. And so now you're Palo. Also, for your trained, you can authorize active or serious or s h I to be the re sailor at this corporation, and they can actually negotiate the price, which is what a role resellers do. They negotiate price in terms, so we've actually true reseller >> write software for fulfillment through the marketplace. Four partners which are now customers to you now so that they could wrap service is because that's something we talk to. People in the Channel number one conversation is we love the cloud. But how do I make money and that is Service is right. They all want to wrap Service's around, So okay, you guys are delivering this. Is that my getting that right? You guys are riding a direct link in tow marketplace for partners, and they could wrap service is around there, >> will you? Seeing two things? First of all, yes. We're lowering the resale of to sell the software for absolutely. So you re sailor, you can quote software you build rebuild for you so that I become the billing partner for a serious or a billing partner for active on active can use marketplace to fulfill clothes software for their customers. Dan Burns to see you about pretty happy. You crossed the line into a second scenario, which is condone burns attached. Service is on. Clearly, that's a use case we hear usually would we hear use cases way end up through feeling that a little, little not a use case I have enabled, but we've done >> what you're working on It. We've had what the customer. How does the reseller get into the marketplace? What kind of requirements are there. Is it? Is it different than some of your other partners, or is it sort of a similar framework? >> They have to become an approved resale or so First of all, they have to be in a peon partner. I mean, we work tightly with a p N e p M screens partners for AWS. So Josh Hoffman's team Terry Wise, his team, whole part of team screen. The reseller we would only work with resellers are screened and approved by the PM Wants the AP en approved way have no set up a dedicated program team. They work with a reseller with trained them what's involved. Ultimately, however, the relationship is between Splunk in a tree sailor, a five and a three sailor named after a tree sailor or Paulo trend or Croat straight. So it's up to the I S V to tail us that hey, computer centers my reseller. I don't control that relationship. A fulfillment agent you crow strike to save resellers, and I simply have to meet that work so that I get the end customer happy. >> So your enabler in that instance, that's really no, I'm >> really an engine, even team for everybody engineer for the Iast way, engineer for the buyer. And they have to engineer for the re. So >> you have your hands in a lot of the action because you're in the middle of all this marketplace and you must do a lot of planning. I gotta ask you the question and this comes up. That kind of put on my learning all the Amazon lingo covering reinvent for eight years and covering all the different events. So you gotta raise the bar, which is an internal. You keep innovating. Andy Jassy always sucks about removing the undifferentiated heavy lifting. So what is the undifferentiated heavy lifting that you're working toe automate for your customers? >> Great questions. Right now there's probably three. We'll see what the buyer friction is, and then we'll talk about what the sale of friction is. The buyer frustration that is, undifferentiated. Heavy lifting is the interestingly, it's the team process around choosing software. So a couple of customers were on stage yesterday right on those big institutions talked about security software. But in order for an institution to buy that software, there are five groups involved. Security director is choosing the vendor, but procurement has to be involved. Andre. No procurement. We can't be left out the bit. So yesterday we did. The integration to Cooper is a procurement system. So that friction is by subscribing marketplace tied round. Match it with appeal because the p O is what goes on the ledgers with the company. A purchase order. So that has to be a match in purchase order for the marketplace subscription. And then engineers don't Tidwell engineers to always remember you didn't tag it. Hi, this finance nowhere being spent. So we're doing work on working service catalog to do more tagging. And so the buyer wants good tagging procurement integrated. So we're working on a walk slow between marketplace service catalog for procurement. >> Tiring. So you've kind of eliminated procurement or are eliminating procurement as a potential blocker, they use another. Actually, we won't be >> apart for leading procurement. VPs want their V piece of engineering to be happy. >> This is legal. Next. Actually, Greek question. We actually tackled >> legal. First, we did something called Enterprise Code tracked and our customer advisory board Two years ago, one of our buyers, one of our customers, said we're gonna be 100 vendors to deploy it. We're not doing 100 tracks. We've only got one lawyer, You know, 6000 engineers and one lawyer. Well, lawyers, good cord is quickly. So we've created a standard contract. It take stain to persuade legal cause at risk. So we've got a whole bunch of corporations adopting enterprise contract, and we're up to over 75 companies adopting enterprise contract. But legal is apartment >> so modernizing the procurement, a key goal >> procurement, legal, security, engineering. And then the next one is I t finance. So if you think of our budgets on their course teams on AWS, everything needs to be can become visible in either of US budgets. And everything has become visible in course exporter. So we have to call the rate tags. >> I heard a stat that 6,000,000 After moving to the cloud in the next 6,000,000 3 to 5 years, security as a focus reinforces not a summit. It's branded as a W s reinforce, just like reinvents. Same kind of five year for security. What's your impression of the show so far? No, you've been highly active speaking, doing briefing started a customer's burn, the midnight oil with partners and customers What's that? What's your vibe of the show? What's your takeaway? What's the most important thing happening here? What's your what's your summary? >> So I always think you get the truth in the booth. Cut to the chase. I made a customer last night from a major media company who we all know who's in Los Angeles. His comment was weeks, either. These expectations wasn't she wanted to come because he goes to reinvent. Why am I coming to Boston in June? Because I'm gonna go to reinvent November on this. The rates of security for a major media company last night basically said, I love the love. The subject matter, right? It's so security centric. He actually ended up bringing a bunch of people from his team on, and he loves the topics in the stations. The other thing he loved was everybody. Here is insecurity, reinvent. There's lots of people from what's the functions, But everybody here is a security professional. So that was the director of security for a media company. He was at an event talking to one of the suppliers, the marketplace. I asked this president of a very well known security vendor and I said. So what's your reaction to reinforce? And he said, Frankly, when you guys told me it was coming, we didn't really want the bother. It's the end of the quarter. It's a busy time of year. It's another event, he said. I am sure glad we came on. He was standing talking to these VP of marketing, saying, We want to bring more people, make sure, So he's overjoyed. His His comment was, when I go to Rio event 50,000 people but only 5% of their own security. I can't reinforce everybody's insecurity >> in Houston in 2020. Any inside US tow? Why Houston? I have no clue what I actually think >> is really smart about the Vineyard, and this is what a customer said Last night. I met a customer from Connecticut who isn't a load to travel far. They don't get to go to reinvent in Vegas. I think what we did when we came to Boston way tapped into all the states that could drive. So there are people here who don't get to go to reinvent. I think when we go to Houston, we're going to get a whole bunch of takes its customers. Yeah, you don't get a flight to Vegas. So I think it's really good for the customer that people who don't get budget to travel >> makes sense on dry kind of a geographic beograd. The world >> if we're expanding the customers that can learn. So from an education point of view, we're just increase the audience that we're teaching. Great, >> Dave. Great to have you on. Thanks for the insights and congratulations on the new responsibility as you get more coz and around marketplace been very successful. 1,000,000 subscriptions. That's good stuff again. They were >> you reinvented and >> a couple of months, Seven days? What? We're excited. I love covering the growth of the clouds. Certainly cloud security of his own conference. Dave McCann, Vice president Marketplace Migration and Control Service is controlled cattle up. How they how you how you move contract and governed applications in the future. All gonna be happening online. Cloud Mr. Q coverage from Boston. They just reinforced. We right back with more after this short break

>> Live from San Francisco, it's The Cube, covering Google Cloud Next 2018. Brought to you by Google Cloud and its ecosystem partners. >> Hello, everyone. Welcome back to our live coverage. It's The Cube here, exclusive coverage of Google Cloud, Google Next 2018. I'm John Furrier, co-host with Dave Vellante, both co-founders of The Cube and SiliconANGLE, here with our special guest Diane Greene, who's the CEO of Google Cloud, legend in the industry, former CEO of VMware, among other great things. Diane, great to see you, great to have you on The Cube for the first time. >> Really fun to be here, I'm really happy to be here. >> One of the things about Google Cloud that's interesting that we've been observing is, you mentioned on stage, two years now in, you're starting to see some visibility into what Google Cloud is looking to do. They're looking to make things really easy, fast, and very developer-centric, an open source culture of inclusion, culture of openness, but hardcore performance. Talk about that vision and how that's translating as you're at the helms driving the big boat here. >> Yeah, sure. Obviously we had this amazing foundation with our modern enterprise company, Google Cloud. But what we've done with Google Cloud is we've realized that Google values engineering so much, and so do our customers. So one is, we're taking a very engineering-centric approach. People really love our open source philosophy. And then we're so double down on both security and artificial intelligence. So if you have this underlying, incredibly advanced, scaled infrastructure, high performance, security, availability, and all the goodness, and then you start taking people somewhere where they can really take advantage of AI, where they can be more secure than anywhere else and you have the engineering to help them really exploit it and to listen to the customer, it's about where they want to go, we're just getting incredible results. >> I've been following Google since the founders, Sergey and Larry, started it, it's been fun to watch. They really are the biggest Cloud ever to be built and Facebook certainly has built-- >> We have seven applications that have over a billion active users. >> Massive scale-- >> And actually, we're just this week on track to have the next one drive. >> 25 years of expertise. I've seen them move from buying servers to making their own, better airflow, just years and years of trajectory, of economies of scale, and then when Google started The Cloud a couple years ago, it's like, oh, great, everyone wants to be like Google so we'll just offer our Googleness to everyone and they're like wait, that didn't really work. People want to consume what Google has, not necessarily be Google, because not everyone can be Google. So there's a transition where Google's massive benefits are now being presented and sold, or offered as a service. This is a core strategy. What should people know about? Because people are squinting through all this market share, this company's got more revenue than that one, and if I bundle in AdWords and G Suite, you'd be the number one Cloud provider on the planet by far. So buyers are trying to figure out who's better for what. How do you talk to customers if someone says, are you behind, are you winning, how do I know if Google Cloud is better than the other Cloud? >> Well, the only way you're going to know is to kind of do a proof of concept and see what happens, you know, pull back the covers. But what we can explain to people is that we're so... One is that it's all about information. That's why I say Google's a modern enterprise company because we're about it. I said that in my keynote. We take information, we organize it, and we supercharge it. We give a lot of intelligence to it and that's what every business needs to do, and we're the best in the world at it. And then AI is this revolutionary thing going on where you can just apply it to anything. Someone made a joke about Cloud, they said it's like butter, it's better with everything. Well, The Cloud is better with everything. I think it's AI, actually. So when you combine our ability to manage data, our ability to do artificial intelligence, with our open source and then our security, not to mention the fact that the underlying infrastructure is, everybody pretty much acknowledges the most advanced technology in the world, it's a pretty unbeatable competition, I mean combination. But the thing is, we needed to bring it to market in a way that everybody could trust it and use it. One of the first things we did, which we hadn't had to do, is serving our internal customers. Have roadmaps, so customers can know what's going on, and what's coming when, that we won't ever turn something off, and all those things that an enterprise company expects and needs, for good reason. I have to say, our engineering team is loving working with external customers. Everybody said, you'll never get that engineering team caring about customers. And I knew we would because we had the same quality engineers at VMware and they loved it. And I knew it was just a matter of getting everybody to see how many interesting things that we-- >> And it's problems to solve, by the way, too. >> There's so many problems to solve and we're having even broader impact now, going to the enterprise, going to every company. >> You said in your keynote, IT is no longer a cost center, it's a key driver of business. Tech is now at the core of every product. You go back 15 years, I remember somebody said to me, have you seen what VMware can do and how fast it can spin up a server? That was cost, right? >> Yeah. >> Talk about the enterprise today. When you talk to customers, what are those problems they're solving, what are those opportunities? >> There is a class of customers, typically the internet companies, they are looking for the best infrastructure, they are looking to save cost, but they're also looking, you know, are people realizing, why should I do it all? Why don't I concentrate on my core competence? It's well known we've had Snap from day one and we were in their prospectus when they filed to go public. Then we have Twitter, we recently announced Spotify, and so forth. So those are very technically sophisticated. People, they come, they use BigQuery, they use our data analytics and our infrastructure. But then you get into the businesses, and we've taken this completely verticals approach. So they're coming to solve whatever problems it is they have. And because we have these exceptional tools and we're building platform tools, a lot of them with applied AI in every vertical, they can come to us and we can talk to them in their language and solve their problems. I talked about it in my keynote, with IT driving revenue, everybody's re-engineering how they do business. It's the most exciting time I've ever seen in the enterprise. I mean, I've always though tech was interesting, but now, it's the whole world. >> It's everywhere. You have an engineeering background, you went to MIT, studied there. If you were the lead engineer of most of these companies that are re-architecting and re-engineering, they're almost re-platforming their companies. They're allowed to think differently, it's not just an IT purchase, because they're not buying IT anymore, they're deploying platforms. >> And they're digitizing their whole business. They're using their information, they're using their data. That changes so many business processes. It changes what they can do with their customers, how they can talk to them, it changes how they can deliver anything. So it's just a radical rethink of... It's so amazing when we work deeply with the customer because they might start out talking about infrastructure and how they're going to move to The Cloud and how we can help them, and then we start talking about all the things our technologies can do for them and what's possible. And they'll kind of pause and then they'll come back and they'll go, holy cow, we are rethinking our whole company, we are redefining our mission, we're much more, you know, it's very exciting. >> I had a chance to interview some of your employees and the phrase comes up, kid in the candy store a lot. So I've got to ask you, with respect to customers, is there more of an engineering focus? As you see some of the adoption, you mentioned Twitter, Spotify, these are internet companies, these are nerds, they love to geek out, they know large scale, so not a hard sell to get them over the transom into the scale of The Cloud. As you get to the enterprise, is there a makeup, is their an orientation that attracts Google to them, and why are you winning these deals? Is it the tech, the people, the process, obviously the tech's solid, but-- >> It's a combination of all of the above. What'll happen is we'll all come in and start pitching these companies, and what we do, we really understand what they're trying to do. And then we send in the appropriate engineers for what it is they're trying to do. You get this engineer-to-engineer collaboration going that lets us know exactly how to help that company. >> They give you a list and you go, check, I've done that. Okay, next, check, check, you go down the checkbox, or is it-- >> Well, we brainstorm with them, and companies like that, because they don't necessarily understand all the technology. I always like to think what an engineering orgs does is one, it gets requirements from the customers about what they need, and we call that all the table stakes, and we get it done, and some of it's pretty hard to do. But then, the engineers, after they get to know customers, they can invent things that the customer had no idea was possible, but that solves their problem in a much more powerful way. And so, that's the magic. And that's how we're going into the market. Wherever we can, we'll take things and make it available to everybody. We're very, you know, that open source philosophy of all technology is for everybody, and it's a very nice environment to work in. >> The number one sound John and I have been talking all day about in your keynote was, security's the number one worry, AI is the number one opportunity. >> I was writing my keynote and it hit me. I'm like, oh, this is how it is. >> So please, when you talk to customers, how are you addressing that worry, and how are you addressing the opportunity? >> We're pretty proud of our security because it really is, at every layer, very deeply integrated, thought through. We don't think in terms of a firewall because if you get inside that firewall, all bets are off. So it's really everything you do needs to be looked at and you've got to make sure, and that's why the Chromebook with the hardware based two-factor authentication, and G Suite. Google, which went to that, and since we did, not a single one of our 85,000 employees have been phished. Kind of amazing. >> Yeah. >> Because it's the biggest source of attack. >> Ear phishing is the easiest way to get in. >> Yeah, but you cannot do it once you have that combination. It's all the way up there, all the way down to proprietary chips that check that the boot hasn't been tampered with every time you boot. Our new servers all have it, our Chromebooks all have it, and then everything in between. We think we have an incredibly powerful, we had to add in enterprise features like fine-grain security controls, ways to let our users manage their own encryption keys. But anyhow, we have just at a really phenomenal, and our data centers are so bulletproof. We have those catchers that'll pick up a car. We even have one of those. We had a UPS truck try and tailgate someone and got picked up in it. >> The magic of the engineering at Google. This is the value that we hear from customers, is that, we get that the technology and the engineers are there, we see the technology. But you've been involved in transformative businesses, beyond where Dave was mentioning, certainly changed IT. And it was new and transformed. Cloud's transformational as well. We were just talking earlier about the metaphor of the horse and buggy versus the car, things get automated away, which means those jobs now are gone, but new functionality. You're seeing a lot of automation machine learning, AutoML is probably one of the hottest trends going on right now. AI operations seems to be replacing what was categorically an industry, IT operations. You're starting to see IT again being disrupted. And the shifting into the value up the stack. And this is developers. >> That's the point. Because I don't feel like, yes, all those really painful jobs are going away. >> That no one wanted to do. >> That no one wanted to do anyhow. VMware was the same way. We eliminated tons of drudgery. And AI is doing it systematically across every industry but then you repurpose people. Because we still need so many people to do things. I gave the example in my keynote about the dolphin fins and using AutoML to find them and identify them. Well, that was PhD researchers and professors were looking at that. Is that what they should be doing? I don't think so. You free them up and think of the discoveries they're going to make. I mean, humans are really smart. I think all humans are, we just have to do a better job at helping them realize their potential. >> I want to talk about that, that's a great point. Culture's everything. I also interviewed some of your folks. I just wrote an article on my Forbes column about the four most powerful women in Google that aren't Diane Greene. It was some of your key lieutenants. >> That was a great piece. >> The human story came up, where you have machines and humans working together. One of the conversations was, artistry is coming back to software development. We were on this thread of modern software developers is not just your software engineer anymore. You don't need three PhDs to write code. The aperture of software development engineering and artistry and craft is coming back. What's your reaction to that? Because you're starting to see now a new level of range of software opportunities for everybody. >> Yeah, my daughter is a computer science major and she just taught at coding camp this summer, and they started from kindergarten and went up. It was amazing to hear what those kids were doing. I think a lot of applications are almost going to be like assembling lego. You have all these APIs you can put in, you have all these open source libraries, you have Serverless, so you just plop it in these little containers, and everything is taken care of for you. You're right, it's like a new age in building applications. You will still need, Google needs systems engineers but-- >> Under the hood, you've got to fix engines, mechanics. >> You guys talked about this in your article, the shifts toward creativity becomes a much more important ingredient. >> And also the human computer interface and the UX. You heard from Target, I was talking to him, they do an agile workshop for six weeks for all their developers. Their productivity, he said, an order of magnitude higher. I think the productivity of developers, in The Cloud, with all these technologies, is across the board, an order of magnitude better, at a minimum. >> Mike McNamara, the CIO of Target, was up on stage with you today. >> Yeah, he's a really impressive person. >> So I want to ask you about differentiation. You talked about open source, and specifically your contribution to open source, that's different from most Cloud players. The other thing you talked about, and I want to understand it better, is that you provide consistency with a common core set of primitives. What do you mean, and why is that important? >> Right. So when we build out all our services, we want to have one uniform way of thinking about things. So, how do you do queueing? It's common across every service. How do you do security? It's common across every service. Which means it's very intuitive and it's easy to use this system. Now, it slows you down. Software development at that layer, when you have to do that, goes more slowly. And if you have to make a change, you know, in a core primitive, everybody's got to change, right? However, you take the other side, where everybody just builds a service vertically and with disregard for how things are done, and now you've got this potpourri of ways to do things and everybody has to have specialized expertise in every service. So it really slows down the operators and the developers. You get a lot of inconsistency. So it's super high value and I have to believe people are going to start appreciating that and it's really going to be-- >> I think that's a huge problem that people don't really understand. Just as an example, if you're building out a data pipeline and tapping all these different services, you've got then different APIs for every single service that you have to become an expert at. >> That's exactly right. >> That's a real challenge. Like you said, from a software development-- >> And it's annoying. >> Yes, users who really understand this stuff are getting annoyed with it. But it's an interesting trade-off and a philosophy that you've taken that's quite a bit different from-- >> Well, Google has such a high bar for how they do things. >> That sounds foundational though. It's slower, but it's more foundational. But doesn't that accelerate the value? So the value's accelerated significantly-- >> Oh yes. >> So you go a little slower down. >> Our going a little slower makes everybody else go way faster, at a higher quality. The trade-off, it wins. >> Diane, thank you for taking the time to join us in The Cube today. >> I want to ask one final question. Culture in Google Cloud, how would you describe the DNA within Google Cloud? A lot of energy, a lot of enterprise expertise coming in big time, a lot of great stuff happening. How would you describe the DNA of Google Cloud? >> I would say just tremendous excitement because we're just moving so fast, we're scaling so fast, we're sort of barely in control, it's moving so fast. But such good things happening and the customers are loving us. It's so rewarding and everybody's increasingly taking more and more ownership and really making sure that we do super high quality work for our customers. Everybody's proud, we're all really proud. >> What's the one thing that you want people to know about that they may not know about Google Cloud, that they should definitely know about? >> Geez, you know, it's worth coming to and giving it a try. The biggest thing is how early we are, and it's the right place to be because you want the highest quality, you want the most advanced technology. And AI and security are pretty important. >> Diane Greene, the CEO of Google Cloud here inside The Cube, live in San Francisco. We're at the Moscone Center. I'm John Furrier with Dave Vellante. We'll be back with more live coverage. Stay with us for more from day one of three days of live coverage. We'll be right back.

(techno music) >> Announcer: Live, from the Moscone Center it's theCUBE. Covering AWS Summit, San Francisco 2018. Brought to you by Amazon Web Services. >> Hello everyone, welcome back to theCUBE's exclusive coverage here in San Francisco, I'm John Furrier with Stu Miniman. This is Amazon Web Services, AWS Summit 2018. We got two great guests, Dave McCann the vice president general manager of AWS Marketplace and Service Catalog and Matthew Scullion is a CEO of Matillion, partner of Marketplace. Guys thanks for coming on good to see you again >> Thank you. >> Thanks for havin' us. >> Alright, so Dave, Marketplace is doing phenomenal, well, we talked with Lew Cirne from New Relic at Reinvent, and was talking about how successful they've been on the Marketplace, so clearly it's working, 170 thousand active customers on stage, we saw the keynote today, What's going on with the Marketplace? Take a minute to explain how the Marketplace is set up now and how it's evolved to this point. >> Thank you, so, great to be back. Can't believe it's four months since Reinvent. So Marketplace is a digital library, of software. You know the cloud is helping our customers innovate faster but you need to be able to innovate with the software not just with the compute and the storage, and so our purpose is to stand up a digital library of software for our customers to subscribe and launch, and we're continuing to grow on multiple dimensions. We've deployed out to all the new standard regions, so we're now up in Korea, we're clearly in LHR so in all the standard regions we've fit Marketplace. And then we continue to expand the library of software, so more and more companies, like a Matillion, publish into the library. We're over 1,300 software companies now, and we're over 4,000 different software titles and you know, our customers show up, they're typically a developer or a manager, with a project with a budget, and they're looking for the best tool that they can keep the project going on schedule. >> And just to make clarification nuances, I know it's commercial and is there a public sector version or is it all one? >> That's a really good question. We actually launched Marketplace last August in our GovCloud Region, so we do actually operate a GovCloud Region for our US government customers and we actually offer a separate Marketplace for the US intelligence agencies. So that's the library of what were doing and we continue tho grow and as Werner said this morning, bunch of new stats. >> The business, the business model obviously people see, um, two things happening. I want to get your reaction to, one is Werner Vogels laid out how services are going to be laid out all over the place and it's not, you know, monolithic as he says. They're all a bunch of services. Scale is a huge factor in enabling that, and also the business model changes are going on, we're seeing people be successful. How are your customers and partners using Marketplace today, how does it work, I mean, do they just call up and say, "Hey! Dave I want to get in the Marketplace." I mean what, I mean, obviously downloading services, enabling services makes sense. How is it working? Like what do they do? Like what's the model? >> So, let's start from the customer and walk backwards. You know Amazon talks about working backwards from the customer. So typically in a company will be a set of developers who are building on us and they'll have a set of architects very often they've a few cloud architects and across the set of software, networking, security, database, dealer analytics, BI, DevOps, all the way to business apps. There'll be a set of architects saying, "What's the best software as we move to the cloud? "Do we bring what we had, or do we buy new?" So the architects are recommending to the developers, "Hey, for your project, here's a good tool." So in the buyer, architects are recommending, and then the developer gets told you can use these vendors. On the seller side of things, software companies like Matillion have to decide "How do we reach the AWS customer?" and then they have to package up their software, put it in our library, and make a bunch of decisions that he can talk about, and then they make it available. >> Yeah Dave it's been interesting to watch kind of the maturation in the Marketplace. It's been large for a number of years but how your partners have changed how they package software, last year there was a discussion that you know, it changed how billing is done, so that Amazon can help make it just seamless for customers, whether they buy service from, you know, AWS or beyond. You know, give us, you used to talk about the customer and the partner, walk us through a little bit of that maturation and how that's that's gone. >> So, we're a six year old service and so we you know we're agile, we keep releasing features. So last year in April, at San Francisco, with Splunk we launched something called SaaS Contracts, which was a new API for SaaS vendors and now we have over 300 SaaS companies in the last year that have developed to that API. So a software vendor can decide they want to deliver as a software package or as an AMI so it could be SaaS or AMI. And we also provision APIs. So we're constantly introducing flexibility on how that vendor can price and package and the more we innovate, the more software companies use our features. >> Yeah, I'm sure you get asked, you know, what's the concern, is there concern, from some of the SaaS players that, "Oh, I'm going to go in there, "I'm going to price and package the way Amazon does, "what's to stop them from just kind of "duplicating what I'm doing and becoming a competitor?" >> You know, that question comes up a lot, and you know look, the software industry is $550 billion. It's growing at 6% a year which is $30 billion and AWS all late last year did about $18 billion. So the software industry is growing by an AWS a year, and the reality is there's so much innovation going on that whatever innovation we're doing, you know, there's lots of room for other software vendors to innovate on top of our stack, 'cause we live in an expanding universe. >> Stu and I always joke, it's like so funny, we look at the, we watch all the cloud, of your competition, you Google Microsoft and Oracle, IBM, whatever, and they all quote numbers. If you factored in the ecosystem, in your number, the cloud revenues would be, I mean trillions. So you know, you guys I know you don't include that, in the numbers and like Microsoft does put Office in there, so it's kind of apples and oranges and so you know, Matthew I want to ask you, 'cause you're a partner. You're doing business on that, so, this is the formula we've been seeing that's been working where, the ecosystem growth, rising tide floats all boats, clearly that's Amazon's strategy. And they're opening up their platform to partners. So talk about what you guys are doing. First, take a minute to explain your company and then talk about your relationship to the Marketplace, and how that's working, and the relationship, how you make money, and the business model behind it. >> Yeah sure, and thanks for the question and for having me. So first of all Matillion, we're a software company, an ISV we make cloud-native data integration technology, purpose-built for this new generation of cloud data warehouses. For us that's Amazon Redshift, it's also Snowflake, and we sell both of those products on the AWS Marketplace, So customers are using us any time when they want to compete with data, so drive product development, or service their customers better, or in fact, become more efficient in the way they run their IT infrastructure. Perhaps migrating an on-premise warehouse into the cloud. So we developed that product through 2014-15, and we were looking for a route to market. Being honest, originally we were going to set it up as a SaaS business, and I saw a pitch from one of Dave's reports, a guy called Barry Russell, talking about AWS marketplace. We're like, okay here's a platform that's going to allow me to deliver my software anywhere in the world to any AWS customer pretty much instantly. More to the point, it's going to deliver my customer a really excellent experience around doing that, from a performance point of view, my software's going to go to go into their VPC sat right next to their data sources, in their Redshift cluster. From a security point of view, that question, very important in data integration, just taken totally off the table, so inside that firewall inside their VPC and of course super convenient and simple to buy. You just access AWS Marketplace, pay with Genuine Cloud Economics by the hour and stand it up pay a few AWS bills. So a really compelling way to deliver the software. >> Was there a technical integration required on your end? I mean like, there's some clients that are born in the cloud Amazon, some are, have built their own stuff. Do you have to, I mean, where are you guys fit into that? One, are you using Amazon? If not, was there any integration piece that you had to do? And if so, what was the level of work required to integrate? >> Yeah, and to be honest, I think this is, you know, the key question on how to be successful selling in this this kind of landscape of public cloud vendor marketplaces and, and the public cloud. So, I mean we're a born on AWS and in fact are born on AWS Marketplace products, and that intersection of product engineering with the route to market, and it's not just the software, it's also the things you surround it with, like great quality content, online support portals, videos, a really great launch experience, that means you're going to be clicked to running our software, commercial-grade ETL tool in under five minutes, free for the first 14 days and then by the hour billing, you know, there's a lot of different angles that go into that and you've absolutely got to be thinking about it. Other people are being successful just kind of sticking their products on the Marketplace and using it just as a billing mechanism but I think for us one of the reasons we've been able to drive great customer resonance and growth, is having that intersection of engineering, content and the Marketplace, together. >> Matthew I wanted have you talk to me a little bit about Matillion, 'cause when I think about kind of customer acquisition, you know Data Warehousing Market's been around for a long time. Redshift's been doing phenomenal, I mean for a while it was the largest, you know, fastest growing product in the AWS you know, portfolio. Being only through the Marketplace, does that, you know, how does that help you get customers, how do they learn about you? Do you ever worry about, like, oh well they just think I'm an Amazon service? Maybe that's a good thing. You know, I'm just curious about kind of that whole go-to-market and relationship with the customers being, you know, super tight, with AWS, you said Snowflake's in there too, so yeah, I'm just curious about that dynamic. >> Yeah, I mean the, the AWS only service thing that historically was a pro and a con. So back in the day we were just Redshift. We're now a couple of other data warehouses as well, you mentioned Snowflake, that's quite right. So that's allowed us to kind of move up the value chain with our customers and give them some choice, which they wanted. Yeah, I think in terms of the go-to-market economics, I mean, we all say this, sometimes its glib, here I think it's authentic. You want to start with what's best for the customer, right. And so we're delivering with genuine cloud economics. Our product starts at $1.37 an hour and yet it'll scale to the world's largest enterprises, and if they don't like it they can turn it off. Typical SaaS products, you're actually signing up for 12 months. So you're not that focused on keeping your customer happy for 11 of those months. Me, I need to keep that customer happy 100% of the time, because he can turn it off any time he likes. >> Yeah, yeah, I always wonder sometimes as an analyst, you know, should it be called a SaaS product if I'm signed into a year or multi-year contract. >> Yeah, so really interesting dynamic of our business is our entire revenue drops by 15% Saturday, Sunday, and it's cause people are turning off dev instances. They come back on Monday morning. Now, as a CEO I could worry about that and say, "Where's my 15% gone Saturday, Sunday?" Actually I'm delighted, 'cause it means my customers are only paying for value they're getting out of the product. >> And then, so about the business model, I wanted to drive into that. I want you to explain and give some color commentary to what your choice was if you didn't have the Marketplace. Hire a sales force? That's going to cost you some money. First you got to find people. >> Yeah. >> Push it to about a thousand customers, run ad campaign. Did you guys do the analysis and say, "Whoa, this is like A,B"? >> Well, so when we launched this product, we were a 12 man company, so I'm not going to say that we rolled in a management consultancy to work that stuff out for us, being honest. But we took a view. I think there have been two big things. First of all, in those very early days when you're trying to find some product market fit, you're trying to find some customers. That global reach instantly delivered by the Marketplace is amazing. So I'm from Manchester UK, apologies for the accent, that's where a good part of our business is still based, although we have offices now in New York and Denver and Seattle as well. If you drill a vertical hole downwards from Manchester, UK, you pop out in Melbourne, Australia that's the first customer we picked up on AWS Marketplace, still a customer today. So in those early guerrilla days, >> No travel, instant global footprint. >> And they were spending money with us before we spoke to them for the first time as well. Now today, we do have a sales force, of course, but it's not a sales force that's closing big deals. They're being value-added, and additive, they are escorting customers through the buying journey, and we've got just as many pre-sales guys as we have sales guys just helping the customer 'cause that's what we want to do. They're going to use the products and consume it 'cause it's easy to do and to turn it off. >> So you focus the high-value activities with the high value employees on the right customer mix, while the rest is just kind of working through the cloud economics. >> Yeah, that's it. Hey, we have to do marketing, of course. We're here doing an event, it's going great. We were lucky enough to be mentioned in the, in the keynote this morning, so our booth's been swamped, >> And now you're on theCUBE, you're a CUBE alumni. >> Exactly. >> The world's going to see, going public next. >> One of the things we do on the marketing front, is when you come into Marketplace and you talk about how we onboard a seller, we have a whole team who we call category managers and so there's an expert over each subject area such as data analytics or networking or security and we not only give them the engineering advice on how to package, on how to onboard and by the way we didn't curate manage so we publish his AMI and he tells us what regions he wants it to go to. And so he may say, clone to Korea, but I don't want it over here, so the seller could decide geography but then we lay on a business go-to-market plan and we actually develop a joint go-to-market. And so we'll do co-marketing with our sellers, and they can choose whether it's by country, by territory, is it large enterprise, is it small business. So there's a set of business advice that we lend. >> So you apply some best practices and some market intelligence on the portfolio side. >> Exactly. >> And the sector. And then we have all the data right? We provide these guys with a real time API they're pulling data off the API every day and what's happening, and so were monitoring that data and everything's measured so this is a digital channel. And then of course the ultimate thing we do when I ran my last SaaS company, we provide the billing platform. And so the buyer comes in on the AWS account, uses the AWS account, so now we bill on behalf of, we do the collection from the buyer, and then we disperse the funds back to the vendor. >> You're making the market for 'em, and they're still doing their blocking and tackling. >> The customer gets a really good experience on their bill and then the customer spend actually becomes visible in Cost Explorer, so we've tagged everything, so we also tagged it so that it's "this is Matillion", and so the customer knows "I'm spending X much on, "X amount of dollars on Matillion on that stack." >> So you're a sales channel and you're adding more value, Matthew, if someone asks you, just say I say, "Hey Matthew, look I got a great product and it's kickin' ass, I want to get into Marketplace" what do I do, what advice would you give me, what would you say? "Oh, I'm skeptical of Amazon's Marketplace" or, "Hey, I really want it". How would you talk to those two tubes of audiences? >> Yeah, so I think the first thing, and we alluded to it earlier, is I think really hard about that 360 experience of packaging the product and how it's launched, that's engineering in the software itself. You need to think about how the customer's going to interact with it, but you also need to clothe that software with great quality content and support, and finally the right type of go-to-market motion around that. And one of the big benefits for us in terms of the AWS Marketplace has been the efficiency of the sales model. So we've got really efficient go-to-market economics and also the types of customers that we sell to and we've, for a company of our stage, you know, we're a post series B, high-growth software company, but for a company of that stage, we are, have a disproportionately high number of global 8,000 global 2,000 customers, that are because Marketplace takes away the barrier of selling into those guys. So as advice on how to be successful, I'd focus on that packaging side and advice as to why to do it, you've got instant worldwide reach into the traditional stomping ground of the the startup other tech vendors but also into the world's biggest software users. >> A virtuous circle, faster to the customers, at a lower cost structure, you still make money, everyone's happy, sounds like a, the Amazon business model. >> It is. >> Great customer experience, great selection, and you know, adoption by the customer, and then continued innovation. Another thing that we do is we have a portal where these guys are publishing new versions, so it's not a one-and-done model. So as these guys update their models, their engineers just publish into seller portal and then that new version comes in, and then we publish that new version out to the customer. So there's a refreshing of the AMI so the latest version is up there. >> And Werner's keynote today really highlighted it's not just about developers anymore, it's about the business teams coming together, pushing stuff real time to the Marketplace is now a business ops model and it's really kind of coming together with entrepreneurial traction and the footprint's a gateway to the world. You have a world footprint. >> Yes, it's 21st century software distribution and really the buyer gets the ultimate choice and you know the buyer can go for an annual contract or for by the hour, so economically, lots of choice. >> Alright, so I'll put you on the spot to end this segment. I'll be a naysayer. Dave you got competition out there, what, what's in it for me? How do you compare vis-a-vis the competition? >> Dave: You're a software vendor? >> Yeah. >> As, you're playin' the persona? >> Yeah, I'm a software guy, I'm looking at marketplaces, you know, why you guys? >> You know, you have to go where the customer is, ultimately you have to decide who your customer is. You know, Werner talked this morning about the tens of thousands of companies that are up on AWS, and so, if I've got 170 thousand buyers showing up on my marketplace, and they're intentional on their budget, and you're a software vendor you get reach, and given what Gartner says on where we are, on fulfilling share in cloud, is where the customer is. >> And if you're a service too, software service APIs, it's even better goodness there. >> Yeah we have thousands of consulting partners also use Marketplace as a library so if you're an SI, and we have tens of thousands of SIs, those SIs also view Marketplace as a good place to find software for the project. >> You've been in this business for a while. I mean, we've always talked about this on theCUBE, I want to ask you real quick, I mean more than ever now, ecosystems and communities are paramount, priority. Especially with this kind of dynamic 'cause that ecosystem is that fabric to enable, you know, go-to-markets that are seamless with economic scale, visibility into the numbers, what's your reaction when someone says that comment to you about community and an ecosystem? >> Well you know, an ecosystem is a collection of software companies that inter-operate. And the reality is that our customers are rewriting all the software. The world is rewriting its software portfolio. You know, a large customer I went to see recently has a thousand software applications. Now as they move them all to the cloud, they're either rewriting or they're modernizing, but as they rewrite them, they're going to use distributed services, they're going to use micro-services. And so they're refreshing their entire stack. >> Yeah, it's a re-platforming of the internet. >> Transformational. >> Dave McCann, who runs the Marketplace for AWS. Really kickin' butt out there. Congratulations on all your success, and I know there's a lot more to do, I wish we had more time, I'd love to do a follow-up with you and find out what's going on the Marketplace. and Matthew a partner, congratulations, hyper-growth, hittin' that trajectory. Congratulations, we'll come visit you in Manchester and then we'll drill a hole, we'll go to Melbourne right down there. Appreciate, thanks for coming on theCUBE, thanks. >> Thank you. >> I'm John Furrier and Stu Miniman. More live coverage after this short break. We are in San Francisco, live for AWS Summit 2018. We'll be right back. (techno music)

live from Las Vegas it's the Cuban covering AWS reinvent 2017 presented by AWS Intel and our ecosystem of partners ok welcome back everyone we're here live in Las Vegas forty two thousand plus people maybe forty five huge numbers here at AWS reinvent twin seventeen Amazon Web Services annual conference wall-to-wall coverage our third day I'm John Ferrier the co-founder of silicon Anglo what's two Minutemen we're here with Andy Jesse the CEO of Amazon Web Services the Andy crate to see you again great to see you thanks for having me on graduations we had a great chat a week ago you and I sat down for breakfast and you kind of laid out you kind of laid out with a plan for the show here but I you kind of left a lot out of this you hold it back I've know every three hours from I thought I had a great story you needed the floor our breakfast oh damn it's good what an announcement I mean your keno two and a half hours I mean the longest keynote I've seen just non-stop announces you went right into a no preamble right into the announcements how many announcements did you do like fifty plus or what was the number I think there were 22 news services and features announced in the keynote I did alright so you gotta look back now as it's coming down to an end to reap the parties tonight what's your take I mousey you're absorbing it still he's still kind of like numb pinch me moment what's what's the vibe what are you feeling right now you know it's been a fantastic week and this is our favorite week of the year just having the chance to spend the week with our entire community and I think that it's been a very successful week in terms of what we were trying to accomplish which was it's always first and foremost of learning and education conference and I think that people feel like the array of sessions they've been able to go to and what they've learned both about the services altogether the new services we announced and then just especially what other peers are doing on top of the platform I think has been really valuable and I've had a lot of customer meetings over the last few days and the conversations have been so excited you know people saying I just can't you know you guys already had so much functionality but I just can't believe the amount of innovation and capability the two guys just released over the last couple days and several people said to me you know how to I knew I was having a meeting with you so I had a list of things I was gonna ask you to to deliver and during your keynote I kept going check check check so they're a really positive excited conversation talk about the flywheel what's going on with you guys right now I use that term kind of a pun intended because you've got some flywheel going on as you add more services I detailed in my story after we met I teased out this is a competitive advantage for you you just listen to listening to customers but you're putting out more services there's leveraging those services so it's good for customers but I worry about the complexity and they might worry about the complexity how do you talk about that and how does your team address that because I mean tsunami of services yeah well you know I think that the first thing to remember is that simply because we have a lot of functionality doesn't mean that customers have to know about every single service and every single feature they use what they need when they need it and they don't have to pay for it up front and so you know one of the reasons we release so many things during the area of over 1300 services and features this year alone and in about 70 new releases just at reinvent this week is that when you have millions of active customers you have lots of diversity in those customers you know lots of different businesses lots of different priorities lots of different needs and so you know even in the set of customer meetings I've had this week the first question I asked every single customer i sat down with is what are your impressions what are you excited about they were some who said I can't believe I'm so excited about sage maker it's gonna completely change the accessibility of doing machine learning in my org and some said oh I really really wanted those language application services and machine learning others were totally focused on the multi master or aurora on the global tables for dynamodb and the graph database and then still others said you know I love ECS but I've wanted a kubernetes option and then now that I don't even have to manage containers at the server level and I can manage the task level is what I'm excited about still others who are IOT customers that's what cared about so we have so many customers it was such diversity in their businesses and their priorities that they all have a bunch of needs keep on delivering on that and I want to get your reaction something that we've been talking about in the cube all week which is well I've been pushing its due and I've been kind of debating it but we see a clear path towards a new renaissance in software development and invention and it comes down to some of the things that you guys have enabled we saw a lot of go get excited by some of the deep learning I'll see lecture for business and two other things it's easier to do stuff now the application layer because you don't have to build the full stack so we're you guys are talking about a reimagining architecture that was Vernors keynote it's all kind of pointing to a new Renaissance a new way to create value what's your reaction then how do you share that the customers because it's kind of a new new model yeah well I think that this has been happening now for you know the last ten years and I think that people aren't building applications for the most part the way they used to it you know if you if you're building new applications and you're trying to build all the hosting software and all the storage software and all the database software at all the messaging and queuing and analytics and and machine learning you're just wasting resource because because when you when you have the option of using 120 services from a platform like AWS that has thousands and thousands of people working on it delivering on average three-and-a-half new features a day that you could choose to use or not it's so much faster and so much more empowering to let your builders take advantage of that platform you get from idea to implementation and orders of magnitude faster using the cloud and that you know what keeps happening is we just keep adding more and more capabilities that allow people get now even the marketplace we just had Barry Russell on and you go now are bringing a global reach opportunity so not only can you help them get to market faster with coding and building value this growth so it's not just parking the marketplace and hope that something happens they're taking advantage of that growth I think it's a really important point it's it's not just a set of services that we're building but are thousands and thousands vis--vis and SAS providers who are also building products on top of AWS where their business is growing by leaps and bounds I mean one of the interesting things about the marketplace I don't know how much you guys have talked about this in the past or currently is that most if you talk to most software buyers they hate the process it you know it's just how long it takes the negotiation process most the software sellers also hate the process and so if you can find a mechanism which is what we're trying to provide with the AWS marketplace where buyers and sellers can complete those transactions and find each other so much faster it totally changes the world of buying software and consuming software Andy I came in this week pretty excited to look at the adoption of server lists and you know congratulations you've impressed a lot of announcements talked a lot of customers the thing that probably impressed me the most is it went from being kind of just lambda to really integrated all the service it's a much more holistic view but you made a comment that I that a lot of us in the community kind of you know poked at a little witches if you were to build AWS today in 2017 you would build it you know on you mean Amazon yes sorry Amazon on it today now I've talked to startups that are building all server list but you know it was on D gigantic company and you know I talked to Tim I talked to the team a lot of things I can't do so is this a goal or you know it just being kind of kind of the future or you know do you feel that I can put you know a global you know company of your size you know built with yeah yeah it's a good question and you know I really the comment I made was really about directionally what Amazon would do you know in the city in the very earliest days of AWS Jeff used to say a lot if I were starting Amazon today I'd have built it on top AWS we didn't have all the capability and all the functionality at that very moment but he knew what was coming and he saw what people were still able to accomplish even with where the services were at that point I think the same thing is true here with lambda which is I think if Amazon we're starting today it's a given they would build it on the cloud and I think we with a lot of the applications that comprise Amazon's consumer business we would build those on our server list capabilities now we still have plenty of capabilities and features and functionality we need to add to to lambda and our various serverless services so that may not be true from the get-go right now but I think if you look at the hundreds of thousands of customers who are building on top of lambda and lots of real applications you know FINRA is built a good chunk of their market watch application on top of lambda and Thompson Reuters has built you know that one of their key analytics apps like people are building real serious things on top of lambda and the pace of iteration you'll see there will increase as well and I really believe that to be true over the next year or two and you talked a little bit more about competition than then I'm used to hearing in the keynote I mean there's been some pokes at some of the database stuff in that migration but you know when it walked talked about there was this colorful bar chart you put up and you had some data pointing about that you know in your market chairs growing your continuing growth you know how do you look at the market landscape what are people you know still getting wrong yeah I think that I don't think that we actually talked that much more or less about competitors in the keynote there was a slide that had a color chart that may have been the only difference but you know for us it's always about you you could spend so much your time trying to look at what others are doing and wondering what they're gonna do the reality is if you don't stay focused on your customers and what they actually care about you know you're wasting your time about mobile and business years ago Alexa for business is a new thing voice we heard from Berner today it's a new interface so we were talking on the cube it's the first time we're kind of talking about this constant maybe we're the first ones to say it so we'll just say it voice first strategy mobile first created a massive wealth creation iPhone new kinds of application development voice has that same feel voice first interface could spawn massive innovation yeah what's your view their reaction what do you guys talk about internally at Amazon in terms of a how voice will take advantage of all your scale yeah well I strongly agree with what you heard Verner communicate in the in his keynote today which is just you know when we first had phones that had apps and you could do all kinds of things by tapping on the phone like that was revolutionary but then when you experienced a voice app it makes tapping on your phone so circa 2010 and so I think that the world will have a huge amount of voice applications it's gonna be people's preference and in part because it's just a more natural expression than actually tapping and trying to click and type things and so we we had so many customers almost a good chunk of our enterprise meetings that we have throughout the year one of the things customers want to talk about is how can I actually be involved in using Alexa how can I build skills for Alexa and then over the last few months that conversation has started to turn to hey you thinking about making Alexa more useful inside of businesses and for work and so there's so much applicability I think that voice first it's gonna have the same kind of impact or more than the mobile trend or I think it has a chance to have as big an impact I mean all the devices have to continue to evolve and you can see that at Amazon we're continuing to build all kinds of diverse devices but I think voice is gonna be a major mode of how people interact with handi 42,000 people I don't know how you top it congratulations on all your success and appreciate the growth and you've done with the company congratulate breaking chicken wing contest to Tonka yeah we said a Guinness I what is that about come on tell us about this door well I Tatanka is a buffalo wing eating club that we started in Seattle back in 1997 and we go for wings we used to go every Tuesday night for wings and we have membership standards you can become a regular member if you need 10 wings with five pasty wings a pasty wing is you know when the wing sauce sits the room temperature and it kind of congeals it gets Spacey so it's five wings wrapped in that pays platinum membership is 25 wings plus five pasties then we started having eating contests and we call it a tonka Bowl and so when we start a reinvent we very much wanted to have a conference that had a lot of interesting fun quirky events and one of the ideas we had was we said well let's try an eating contest and the first year we tried it we did it a lunchtime down in the basement and nobody wanted to have an eating contest at one o'clock in the afternoon in the middle of rain BAM so then we moved it to Lagasse Stadium here in the Venetian and people started coming so this year we had two groups of about a hundred each one at Lagasse won at the MGM and they they did a 30-minute round and then the top five wing eaters in each venue came back to one place for a second round and the winner apparently ate a cumulative total of 59 wings there were three thousand eight hundred and fifty-seven Wings consumed in the contest about as many features as Amazon has released since the first time event sounds like to continue the momentum and you're eating away at the competition congratulations Andy jazzy CEOs on Web Services the cube thanks for coming in man and I appreciate it guys thanks for being here appreciate it live coverage here from Las Vegas Amazon webster's reinvent annual conference 2017 s the cube I'm John Force to Minutemen be back with more live coverage after this short break [Music]