>>Hello and run. Welcome back to the Cube's live coverage here. Day three of Cube's coverage, two sets, wall to wall coverage. Third set upstairs in the Executive Briefing Center. I'm John Furry, host of the Cube with Dave Alon. Two other hosts here. Lot of action. Dave. The cheer here is the CEO of MongoDB, exclusive post on Silicon Angle for your prior to the event. Thanks for doing that. Great to see >>You. Likewise. Nice to see you >>Coming on. See you David. So it's great to catch up. Prior to the event for that exclusive story on ecosystem, your perspective that resonated with a lot of the people. The traffic on that post and comments have been off the charts. I think we're seeing a ecosystem kind of surge and not change over, but like a an and ISV and new platform. So I really appreciate your perspective as a platform ISV for aws. What's it like? What's this event like? What's your learnings? What's your takeaway from your customers here this year? What's the most important story going on? >>First of all, I think being here is important for us because we have so many customers and partners here. In fact, if you look at the customers that Amazon themselves announced about two thirds of those customers or MongoDB customers. So we have a huge overlap in customers here. So just connecting with customers and partners has been important. Obviously a lot of them are thinking about their plans going to next year. So we're kind of meeting with them to think about what their priorities are and how we can help. And also we're sharing a little bit of our product roadmap in terms of where we're going and helping them think through like how they can best use Mongadi B as they think about their data strategy, you know, going to next year. So it's been a very productive end. We have a lot of people here, a lot of sales people, a lot of product people, and there's tons of customers here. So we can get a lot accomplished in a few days. >>Dave and I always talk on the cube. Well, Dave always goes to the TAM expansion question. Expanding your total stressful market, the market is changing and you guys have a great position growing positioned. How do you look at the total addressable market for Mongo changing? Where's the growth gonna come from? How do you see your role in the market and how does that impact your current business model? >>Yeah, our whole goal is to really enable developers to think about Mongo, to be first when they're building modern applications. So what we've done is first built a fir, a first class transactional platform and now we've kind expanding the platform to do things like search and analytics, right? And so we are really offering a broad set of capabilities. Now our primary focus is the developer and helping developers build these amazing applications and giving them tools to really do so in a very quick way. So if you think about customers like Intuit, customers like Canva, customers like, you know, Verizon, at and t, you know, who are just using us to really transform their business. It's either to build new applications quickly to do things at a certain level of performance of scale they've never done before. And so really enabling them to do so much more in building these next generation applications that they can build anywhere else. >>So I was listening to McDermott, bill McDermott this morning. Yeah. And you listen to Bill, you just wanna buy from the guy, right? He's amazing. But he was basically saying, look, companies like he was talking about ServiceNow that could help organizations digitally transform, et cetera, but make money or save money or in a good position. And I said, right, Mongo's definitely one of those companies. What are those conversations like here? I know you've been meeting with customers, it's a different environment right now. There's a lot of uncertainty. I, I was talking to one of your customers said, yeah, I'm up for renewal. I love Mongo. I'm gonna see if they can stage my payments a little bit. You know, things like that. Are those conversations? Yeah, you know, similar to what >>You having, we clearly customers are getting a little bit more prudent, but we haven't seen any kind of like slow down terms of deal cycles or, or elongated sales cycles. I mean, obviously different customers in different sectors are going through different issues. What we are seeing customers think about is like how can I, you know, either drive more efficiency in my business like and big part of that is modernization of my existing legacy tech stack. How can maybe consolidate to a fewer set of vendors? I think they like our broad platform story. You know, rather than using three or four different databases, they can use MongoDB to do everything. So that that resonates with customers and the fact that they can move fast, right? Developer productivity is a proxy for innovation. And so being able to move fast to either seize new opportunities or respond to new threats is really, you know, top of mind for still C level executive. >>So can your software, you're right, consolidation is the number one way in which people are save money. Can your software be deflationary? I mean, I mean that in a good way. So >>I was just meeting with a customer who was thinking about Mongo for their transactional platform, elastic for the search platform and like a graph database for a special use case. And, and we said you can do all that on MongoDB. And he is like, oh my goodness, I can consolidate everything. Have one elegant developer interface. I can keep all the data in one place. I can easily access that data. And that makes so much more sense than having to basically use a bunch of peace parts. And so that's, that's what we're seeing more and more interest from customers about. >>So one of the things I want to get your reaction to is, I was saying on the cube, now you can disagree with me if you want, but at, in the cloud native world at Cuban and Kubernetes was going through its hype cycle. The conversation went to it's getting boring. And that's good cause they want it to be boring. They don't want people to talk about the run time. They want it to be working. Working is boring. That's invisible. It's good, it's sticky, it's done. As you guys have such a great sticky business model, you got a great install base. Mongo works, people are happy, they like the product. So it's kind of working, I won't wanna say boring cuz that's, it's irrelevant. What's the exciting things that Mongo's bringing on top of the existing base of product that is gonna really get your clients and prospects enthused about the innovation from Mongo? What's what cuz it's, it's almost like electricity in a way. You guys are very utility in, in the way you do, but it's growing. But is there an exciting element coming that you see that they should pay attention to? What's, what's your >>Vision that, right, so if you look back over the last 10, 15 years, there's been big two big platform shifts, mobile and cloud. I think the next big platform shift is from what I call dumb apps to smart apps. So building more intelligence into applications. And what that means is automating human decision making and embedding that into applications. So we believe that to be a fundamentally a developer problem to solve, yes, you need data scientist to build the machine learning algorithms to train the models. Yeah. But ultimately you can't really deploy, deployed at scale unless you give developers the tools to build those smart applications that what we focused on. And a big part of that is what we call application driven analytics where people or can, can embed that intelligence into applications so that they can instead rather having humans involved, they can make decisions faster, drive to businesses more quickly, you know, shorten it's short and time to market, et cetera. >>And so your strategy to implement those smart apps is to keep targeting the developer Yes. And build on that >>Base. Correct. Exactly. So we wanna essentially democratize the ability for any customer to use our tools to build a smart applications where they don't have the resources of a Google or you know, a large tech company. And that's essentially resonating with our customer base. >>We, we were talking about this earlier after Swami's keynote, is most companies struggle to put data at the core of their business. And I don't mean centralizing it all in a single place as data's everywhere, but, but really organizing their company and democratizing data so people can make data decisions. So I think what you're saying, essentially Atlas is the platform that you're gonna inject intelligence into and allow developers to then build applications that are, you know, intelligent, smart with ai, machine intelligence, et cetera. And that's how the ones that don't have the resources of a Google or an Amazon become correct the, that kind of AI company if >>You, and that's, that's the whole purpose of a developer data platform is to enable them to have the tools, you know, to have very sophisticated analytics, to have the ability to do very sophisticated indexes, optimized for analytics, the ability to use data lakes for very efficient storage and retrieval of data to leverage, you know, edge devices to be able to capture and synchronize data. These are all critical elements to build these next generation applications. And you have to do that, but you don't want to stitch together a thousand primitives. You want to have a platform to do that. And that's where we really focus. >>You know, Dave, Dave and I, three, two days, Dave and I, Dave Ante and I have been talking a lot about developer productivity. And one observation that's now validated is that developers are setting the pace for innovation. Correct? And if you look at the how they, the language that they speak, it's not the same language as security departments, right? They speak almost like different languages, developer and security, and then you got data language. But the developers are making choices of self-service. They can accelerate, they're driving the behavior behavior into the organizations. And this is one of the things I wrote about on Friday last week was the organizational changes are changing cuz the developers set the pace. You can't force tooling down their throat. They're gonna go with what's easy, what's workable. If you believe that to be true, then all the security's gonna be in the developer pipeline. All the innovations we've driven off that high velocity developer site, we're seeing success of security being embedded there with the developers. What are you gonna bring up to that developer layer that's going to help with security, help with maybe even new things, >>Right? So, you know, it's, it's almost a cliche to say now software is in the world, right? Because every company's value props is driven by, it's either enabled to find or created through software. What that really means is that developers are eating all the work, right? And you're seeing, you saw in DevOps, right? Where developers basically enro encroach into the ops world and made infrastructure a programmable interface. You see developers, to your point, encroaching in security, embedding more and more security features into their applications. We believe the same thing's gonna happen with data scientists and business analysts where developers are gonna embed that functionality that was done by different domains in the Alex world and embed that capability into apps themselves. So these applications are just naturally smarter. So you don't need someone to look at a dashboard and say, aha, there's some insight here now I need to go make a decision. The application will do that for you and actually make that decision for you so you can move that much more quickly to run your business either more efficiently or to drive more, you know, revenue. >>Well the interesting thing about your business is cuz you know, you got a lot of transactional activity going on and the data, the way I would say what you just described is the data stack and the application stacks are coming together, right? And you're in a really good position, I think to really affect that. You think about we've, we've operationalized so many systems, we really haven't operationalized our data systems. And, and particularly as you guys get more into analytics, it becomes an interesting, you know, roadmap for Mongo and your customers. How do you see that? >>Yeah, so I wanna be clear, we're not trying to be a data warehouse, I get it. We're not trying to be like, you know, go compete. In fact, we have nice partnership with data bricks and so forth. What we are really trying to do is enable developers to instrument and build these applications that embed analytics. Like a good analogy I'd use is like Google Maps. You think about how sophisticated Google Maps has, and I use that because everyone has used Google Maps. Yeah. Like in the old, I was old enough to print out the directions, map quest exactly, put it on my lap and drive and look down. Now have this device that tells me, you know, if there's a traffic, if there's an accident, if there's something you know, going will reroute me automatically. And what that app is doing is embedding real time data into, into its decision making and making the decision for you so that you don't have to think about which road to take. Right? You, you're gonna see that happen across almost every application over the next X number of years where these applications are gonna become so much smarter and make these decisions for you. So you can just move so much more quickly. >>Yeah. Talk about the company, what status of the company, your growth plans. Obviously you're seeing a lot of news and Salesforce co CEO just resigned, layoffs at cnn, layoffs at DoorDash. You know, tech unfortunately is not impacted, thank God. I'm not that too bad. Certainly in cloud's not impacted it is impacting some of the buying behavior. We talked about that. What's going on with the company head count? What's your goals? How's the team doing? What are your priorities? >>Right? So we we're going after a big, big opportunity. You know, we recognize, obviously the market's a little choppy right now, but our long term, we're very bullish on the opportunity. We believe that we can be the modern developer data platform to build these next generation applications in terms of costs. We're obviously being a little bit more judicious about where we're investing, but we see big, big opportunities for us. And so our overall cost base will grow next year. But obviously we also recognize that there's ways to drive more efficiency. We're at a scale now. We're a 1.2 billion business. We're gonna announce our Q3 results next week. So we'll talk a little bit more about, you know, what we're seeing in the business next week. But we, we think we're a business that's growing fast. You know, we grew, you know, over 50, 50% and so, so we're pretty fast growing business. Yeah. You see? >>Yeah, Tuesday, December 6th you guys announce Exactly. Course is a big, we always watch and love it. So, so what I'm hearing is you're not, you're not stepping on the brakes, you're still accelerating growth, but not at all costs. >>Correct. The term we're using is profitable growth. We wanna, you know, you know, drive the business in a way that we think continues to seize the opportunity. But we also, we always exercise discipline. You know, I, I'm old enough where I had to deal with 2000 and 2008, so, you know, seen the movie before, I'm not 28 and have not seen these markets. And so obviously some are, you know, emerging leaders have not seen these kinds of markets before. So we're kind of helping them think about how to continue to be disciplined. And >>I like that reference to two thousand.com bubble and the financial crisis of 2008. I mentioned this to you when we chat, I'd love to get your thoughts. Now looking back for reinvent, Amazon wasn't a force in, in 2008. They weren't really that big debt yet. Know impact agility, wasn't it? They didn't hit that, they didn't hit that cruising altitude of the value pro cloud agility, time of value moving fast. Now they are. So this is the first time that they're a part of the economic equation. You're on, you're on in the middle of it with Amazon. They could be a catalyst to recover faster if plan properly. What's your CEO take on just that general and other CEOs might be watching and saying, Hey, you know, if I play this right, I could leverage the cloud. You know, Adams is leading into the cloud during a recession. Okay, I get that. But specifically there might be a tactic. What's your view on >>That? I mean, what, what we're seeing the, the hyperscalers do is really continue to kind of compete at the raw infrastructure level on storage, on compute, on network performance, on security to provide the, the kind of the building blocks for companies like Monga Beach really build on. So we're leveraging that price performance curve that they're pushing. You know, they obviously talk about Graviton three, they're talking about their training model chip sets and their inference model chip sets and their security chip sets. Which is great for us because we can leverage those capabilities to build upon that. And I think, you know, if you had asked me, you know, in 2008, would we be talking about chip sets in 2022? I'd probably say, oh, we're way beyond that. But what it really speaks to is those things are still so profoundly important. And I think that's where you can see Amazon and Google and Microsoft compete to provide the best underlying infrastructure where companies like mongadi we can build upon and we can help customers leverage that to really build the next generation. >>I'm not saying it's 2008 all over again, but we have data from 2008 that was the first major tailwind for the cloud. Yeah. When the CFO said we're going from CapEx to opex. So we saw that. Now it's a lot different now it's a lot more mature >>I think. I think there's a fine tuning trend going on where people are right sizing, fine tuning, whatever you wanna call it. But a craft is coming. A trade craft of cloud management, cloud optimization, managing the cost structures, tuning, it's a crafting, it's more of a craft. It's kind of seems like we're >>In that era, I call it cost optimization, that people are looking to say like, I know I'm gonna invest but I wanna be rational and more thoughtful about where I invest and why and with whom I invest with. Versus just like, you know, just, you know, everyone getting a 30% increase in their opex budgets every year. I don't think that's gonna happen. And so, and that's where we feel like it's gonna be an opportunity for us. We've kind of hit scap velocity. We've got the developer mind share. We have 37,000 customers of all shapes and sizes across the world. And that customer crown's only growing. So we feel like we're a place where people are gonna say, I wanna standardize among the >>Db. Yeah. And so let's get a great quote in his keynote, he said, if you wanna save money, the place to do it is in the cloud. >>You tighten the belt, which belt you tightening? The marketplace belt, the wire belt. We had a whole session on that. Tighten your belt thing. David Chair, CEO of a billion dollar company, MongoDB, continue to grow and grow and continue to innovate. Thanks for coming on the cube and thanks for participating in our stories. >>Thanks for having me. Great to >>Be here. Thank. Okay, I, Dave ante live on the show floor. We'll be right back with our final interview of the day after this short break, day three coming to close. Stay with us. We'll be right back.

>>Hey, welcome back everyone. We're live here in the cube in Las Vegas Raiders reinvent 2021. I'm Jeffrey hosted the key we're in person this year. It's a hybrid event online. Great action. Going on. I'm rolling. Vice-president of ADF analytics. David is great to see you. Thanks for coming on. >>It's great to be here, John. Thanks for having me again. >>Um, so you've got a really awesome job. You've got serverless, you've got analytics. You're in the middle of all the action for AWS. What's the big news. What are you guys announcing? What's going on? >>Yeah, well, it's been an awesome reinvent for us. Uh, we've had a number of several us analytics launches. So red shift, our petabyte scale data warehouse, EMR for open source analytics. Uh, and then we've also had, uh, managed streaming for Kafka go serverless and then on demand for Kinesis. And then a couple of other big ones. We've got RO and cell based security for AWS lake formation. So you can get really fine grain controls over your data lakes and then asset transactions. You can actually have a inserts, updates and deletes on data lakes, which is a big step forward. >>Uh, so Swami on stage and the keynote he's actually finishing up now. But even last night I saw him in the hallway. We were talking about as much as about AI. Of course, he's got the AI title, but AI is the outcome. It's the application of all the data and this and a new architecture. He said on stage just now like, Hey, it's not about the old databases from the nineties, right? There's multiple data stores now available. And there's the unification is the big trend. And he said something interesting. Governance can be an advantage, not an inhibitor. This is kind of this new horizontally scalable, um, kind of idea that enables the vertical specialization around machine learning to be effective. It's not a new architecture, but it's now becoming more popular. People are realizing it. It's sort of share your thoughts on this whole not shift, but the acceleration of horizontally scalable and vertically integrated. Yeah, >>No, I think the way Swami put it is exactly right. What you want is the right tool for the right job. And you want to be able to deliver that to customers. So you're not compromising on performance or functionality of scale, but then you wanted all of these to be interconnected. So they're, well-integrated, you can stay in your favorite interface and take advantage of other technologies. So you can have things like Redshift integrated with Sage makers, you get analytics and machine learning. And then in Swami's absolutely right. Governance is actually an enabler of velocity. Once you've got the right guardrails in place, you can actually set people free because they can innovate. You don't have to be in the way, but you know that your data is protected. It's being used in the way that you expect by the people that you are allowing to use that data. And so it becomes a very powerful way for customers to set data free. And then, because things are elastic and serverless, uh, you can really just match capacity with demand. And so as you see spikes in usage, the system can scale out as those dwindle, they can scale back down, and it just becomes a very efficient way for customers to operate with data at scale >>Every year it reinvented. So it was kind of like a pinch me moment. It's like, well, more that's really good technology. Oh my God, it's getting easier and easier. As the infrastructure as code becomes more programmable, it's becoming easier, more Lambda, more serverless action. Uh, you got new offerings. How are customers benefiting for instance, from the three new offerings that you guys announced here? What specifically is the value proposition that you guys are putting out there? Yeah, so the, >>Um, you know, as we've tried to do with AWS over the years, customers get to focus on the things that really differentiate them and differentiate their businesses. So we take away in Redshift serverless, for example, all of the work that's needed to manage clusters, provision them, scale them, optimize them. Uh, and that's all been automated and made invisible to customers, the customers to think about data, what they want to do with it, what insights they can derive from it. And they know they're getting the most efficient infrastructure possible to make that a reality for them with high performance and low costs. So, uh, better results, more ability to focus on what differentiates their business and lower cost structure over time. >>Yeah. I had the essential guys on it's interesting. They had part of the soul cloud. Continuous is their word for what Adam was saying is clouds everywhere. And they're saying it's faster to match what you want to do with the outcomes, but the capabilities and outcomes kind of merging together where it's easy to say, this is what we want to do. And here's the outcome it supports that's right with that. What are some of the key trends on those outcomes that you see with the data analytics that's most popular right now? And kind of where's that, where's that going? >>Yeah. I mean, I think what we've seen is that data's just becoming more and more critical and top of mind for customers and, uh, you know, the pandemic has also accelerated that we found that customers are really looking to data and analytics and machine learning to find new opportunities. How can they, uh, really expand their business, take advantage of what's happening? And then the other part is how can they find efficiencies? And so, um, really everything that we're trying to do is we're trying to connect it to business outcomes for customers. How can you deepen your relationship with your customers? How can you create new customer experiences and how can you do that more efficiently, uh, with more agility and take advantage of, uh, the ability to be flexible. And you know, what is a very unpredictable world, as we've seen, >>I noticed a lot of purpose-built discussion going on in the keynote with Swami as well. How are you creating this next layer of what I call purpose-built platform like features? I mean, tools are great. You see a lot of tools in the data market tools are tools of your hammer. You want to look for a nail. We see people over by too many tools and you have ultimately a platform, but this seems to be a new trend where there's this connect phenomenon was showing me that you've got these platform capabilities that people can build on top of it, because there's a huge ecosystem of data tools out there that you guys have as partners that want to snap together. So the trend is things are starting to snap together, less primitive, roll your own, which you can do, but there's now more easier ways. Take me through that. Explain that, unpack that that phenomenon role rolling your own firm is, which has been the way now to here. Here's, here's some prefabricated software go. >>Yeah. Um, so it's a great observation and you're absolutely right. I mean, I think there's some customers that want to roll their own and they'll start with instances, they'll install software, they'll write their own code, build their own bespoke systems. And, uh, and we provide what the customers need to do that. But I think increasingly you're starting to see these higher level abstractions that take away all of that detail. And mark has Adam put it and allow customers to compose these. And we think it's important when you do that, uh, to be modular. So customers don't have to have these big bang all or nothing approaches you can pick what's appropriate, uh, but you're never on a dead end. You can always evolve and scale as you need to. And then you want to bring these ideas of unified governance and cohesive interfaces across so that customers find it easy to adopt the next thing. And so you can start off say with batch analytics, you can expand into real time. You can bring in machine learning and predictive capabilities. You can add natural language, and it's a big ecosystem of managed services as well as third parties and partners. >>And what's interesting. I want to get your thoughts while I got you here, because I think this is such an important trend and historic moment in time, Jerry chin, who one of the smartest VCs that we know from Greylock and coin castles in the cloud, which kind of came out of a cube conversation here in the queue years ago, where we saw the movement of that someone's going to build real value on AWS, not just an app. And you see the rise of the snowflakes and Databricks and other companies. And he was pointing out that you can get a very narrow wedge and get a position with these platforms, build on top of them and then build value. And I think that's, uh, the number one question people ask me, it's like, okay, how do I build value on top of these analytic packages? So if I'm a startup or I'm a big company, I also want to leverage these high level abstractions and build on top of it. How do you talk about that? How do you explain that? Because that's what people kind of want to know is like, okay, is it enabling me or do I have to fend for myself later? This is kind of, it comes up a lot. >>That's a great question. And, um, you know, if you saw, uh, Goldman's announcement this week, which is about bringing, building their cloud on top of AWS, it's a great example of using our capabilities in terms of infrastructure and analytics and machine learning to really allow them to take what's value added about Goldman and their position to financial markets, to build something value, add, and create a ton of value for Goldman, uh, by leveraging the things that we offer. And to us, that's an ideal outcome because it's a win-win for us in Goldman, but it's also a win for Goldman and their customers. >>That's what we call the Supercloud that's the opportunity. So is there a lot of Goldmans opportunities out there? Is that just a, these unicorns, are these sites? I mean, how do you, I mean, that's Goldman Sachs, they're huge. Is there, is this open to everybody? >>Absolutely. I mean, that's been one of the, uh, you know, one of the core ideas behind AWS was we wanted to give anybody any developer access to the same technology that the world's largest corporations had. And, uh, that's what you have today. The things that Goldman uses to build that cloud are available to anybody. And you can start for a few pennies scale up, uh, you know, into the petabytes and beyond >>When I was talking to Adams, Lipski when I met with him prior to re-invent, I noticed that he was definitely had an affinity towards the data, obviously he's Amazonia, but he spent time at Tableau. So, so as he's running that company, so you see that kind of mindset of the data advantage. So I have to ask you, because it's something that I've been talking about for a while and I'm waiting for it to emerge, but I'm not sure it's going to happen yet. But what infrastructure is code was for dev ops and then dev sec ops, there's almost like a data ops developing where data as code or programmable data. If I can connect the dots of what Swami's saying, what you're doing is this is like a new horizontal layer of data of freely available data with some government governance built in that's right. So it's, data's being baked into everything. So data is any ingredient, not a query to some database, it's gotta be baked into the apps, that's data as code that's. Right. So it's almost a data DevOps kind of vibe. >>Yeah, no, you're absolutely right. And you know, you've seen it with things like ML ops and so on. It's all the special case of dev ops. But what you're really trying to do is to get programmatic and systematic about how you deal with data. And it's not just data that you have. It's also publicly available data sets and it's customers sharing with each other. So building the ecosystem, our data, and we've got things like our open data program where we've got publicly hosted data sets or things like the AWS data exchange where customers can actually monetize data. So it's not just data as code, but now data as a monetizeable asset. So it's a really exciting time to be in the data business. >>Yeah. And I think it's so many too. So I've got to ask you while I got you here since you're an expert. Um, okay. Here's my problem. I have a lot of data. I'm nervous about it. I want to secure it. So if I try to secure it, I'm not making it available. So I want to feed the machine learning. How do I create an architecture where I can make it freely available, but yet maintain the control and the comfort that this is going to be secure. So what products do I buy? >>Yeah. So, uh, you know, a great place to start at as three. Um, you know, it's one of the best places for data lakes, uh, for all the reasons. That's why we talked about your ability scale costs. You can then use lake formation to really protect and govern that data so you can decide who's allowed to see it and what they're allowed to see, and you don't have to create multiple copies. So you can define that, you know, this group of partners can see a, B and C. This group can see D E and F and the system enforces that. And you have a central point of control where you can monitor what's happening. And if you want to change your mind, you can do that instantly. And all access can be locked down that you've got a variety of encryption capabilities with things like KMS. And so you can really lock down your data, but yet keep it open to the parties that you want and give them specifically the access that you want to give them. And then once you've done that, they're free to use that data, according to the rules that you defined with the analytics tools that we offer to go drive value, create insight, and do something >>That's lake formation. And then you got a Thena querying. Yes, we got all kinds of tooling on top of it. >>It's all right. You can have, uh, Athena query and your data in S3 lake formation, protecting it. And then SageMaker is integrated with Athena. So you can pull that data into SageMaker for machine learning, interrogate that data, using natural language with things like QuickSight Q a like we demoed. So just a ton of power without having to really think too deeply about, uh, developing expert skill sets in this. >>So the next question I want to ask you is because that first part of the great, great, great description, thank you very much. Now, 5g in the edges here, outpost, how was the analytics going on that as edge becomes more pervasive in the architecture? >>Yeah, it's going to be a key part of this ecosystem and it's really a continuum. So, uh, you know, we find customers are collecting data at the edge. They might be making local ML or inference type decisions on edge devices, or, you know, automobiles, for example. Uh, but typically that data with some point will come back into the cloud, into S3 will be used to do heavy duty training, and then those models get pushed back out to the edge. And then some of the things that we've done in Athena, for example, with federated query, as long as you have a network path, and you can understand what the data format or the database is, you can actually run a query on that data. So you can run real-time queries on data, wherever it lives, whether it's on an edge device, on an outpost, in a local zone or in your cloud region and combine all of that together in one place. >>Yeah. And I think having that data copies everywhere is a big thing deal. I've got to ask you now that we're here at reinvent, what's your take we're back in person last year was all virtual. Finally, not 60,000 people, like a couple of years ago, it's still 27,000 people here, all lining up for the sessions, all having a great time. Um, all good. What's the most important story from your, your area that people should pay attention to? What's the headline, what's the top news? What should people pay attention to? >>Yeah, so I think first off it is awesome to be back in person. It's just so fun to see customers and to see, I mean, you, like, we've been meeting here over the years and it's, it's great to so much energy in person. It's been really nice. Uh, you know, I think from an analytics perspective, there's just been a ton of innovation. I think the core idea for us is we want to make it easy for customers to use the right tool for the right job to get insight from all of their data as cost effectively as possible. And I think, uh, you know, I think if customers walk away and think about it as being, it's now easier than ever for me to take advantage of everything that AWS has to offer, uh, to make sense of all the data that I'm generating and use it to drive business value, but I think we'll have done our jobs. Right. >>What's the coolest thing that you're seeing here is that the serverless innovation, is it, um, the new abstraction layer with data high level services in your mind? What's the coolest thing. Got it. >>It's hard to pick the coolest that sticks like kicking the candies. I mean, I think the, uh, you know, the continued innovation in terms of, uh, performance and functionality in each of our services is a big deal. I think serverless is a game changer for customers. Uh, and then I think really the infusion of machine learning throughout all of these systems. So things like Redshift ML, Athena ML, Pixar, Q a just really enabling new experiences for customers, uh, in a way that's easier than it ever has been. And I think that's a, that's a big deal and I'm really excited to see what customers do with it. >>Yeah. And I think the performance thing to me, the coolest thing that I'm seeing is the graviton three and the gravitron progression with the custom stacks with all this ease of use, it's just going to be just a real performance advantage and the costs are getting lowered. So I think the ECE two instances around the compute is phenomenal. No, >>Absolutely. I mean, I think the hardware and Silicon innovation is huge and it's not just performance. It's also the energy efficiency. It's a big deal for the future reality. >>We're at an inflection point where this modern applications are being built. And in my history, I'm old, my birthday is today. I'm in my fifties. So I remember back in the eighties, every major inflection point when there was a shift in how things were developed from mainframe client server, PC inter network, you name it every time the apps change, the app owners, app developers all went to the best platform processing. And so I think, you know, that idea of system software applications being bundled together, um, is a losing formula. I think you got to have that decoupling large-scale was seeing that with cloud. And I think now if I'm an app developer, whether whether I'm in a large ISV in your ecosystem or in the APN partner or a startup, I'm going to go with my software runs the best period and where I can create value. That's right. I get distribution, I create value and it runs fast. I mean, that's, I mean, it's pretty simple. So I think the ecosystem is going to be a big action for the next couple of years. >>Absolutely. Right. And I mean, the ecosystem's huge and I think, um, and we're also grateful to have all these partners here. It's a huge deal for us. And I think it really matters for customers >>What's on your roadmap this year, what you got going on. What can you share a little bit of a trajectory without kind of, uh, breaking the rules of the Amazonian, uh, confidentiality. Um, what's, what's the focus for the year? What do you what's next? >>Well, you know, as you know, we're always talking to customers and, uh, I think we're going to make things better, faster, cheaper, easier to use. And, um, I think you've seen some of the things that we're doing with integration now, you'll see more of that. And, uh, really the goal is how can customers get value as quickly as possible for as low cost as possible? That's how we went to >>Yeah. They're in the longterm. Yeah. We've always say every time we see each other data is at the center of the value proposition. I've been saying that for 10 years now, it's actually the value proposition, powering AI. And you're seeing because of it, the rise of superclouds and then the superclouds are emerging. I think you guys are the under innings of these emerging superclouds. And so it's a huge treading, the Goldman Sachs things of validation. So again, more data, the better, sorry, cool things happening. >>It is just it's everywhere. And the, uh, the diversity of use cases is amazing. I mean, I think from, you know, the Australia swimming team to, uh, to formula one to NASDAQ, it's just incredible to see what our >>Customers do. We see the great route. Good to see you. Thanks for coming on the cube. >>Pleasure to be here as always John. Great to see you. Thank you. Yeah. >>Thanks for, thanks for sharing. All of the data is the key to the success. Data is the value proposition. You've seen the rise of superclouds because of the data advantage. If you can expose it, protect it and govern it, unleashes creativity and opportunities for entrepreneurs and businesses. Of course, you got to have the scale and the price performance. That's what doing this is the cube coverage. You're watching the leader in worldwide tech coverage here in person for any of us reinvent 2021 I'm John ferry. Thanks for watching.

>>Hi, everyone. Welcome to the cubes coverage of Avis reinvent 2021 we're onsite in person. It's a virtual event, also hybrid events. I'm Jennifer and my host, David Dante ninth year, Dave, we've been doing Avis reinvent the cube and it's 11th season. We've seen a lot. Yeah, I'll say. >>And the show is pretty packed, John. I mean, I think it's surprised some folks over 25,000 people here. I mean, obviously a lot of sponsors, but >>Customers to a bad event for AWS in terms of attendance is like record-breaking for any other company, people are standing in line for sessions. It's definitely happening. People are here to learn. They're not just all employees. So definitely a successful event in person as well in the live stream. But so much news to talk about. Andy Jassy is now the CEO of Amazon. That's the top story Adam's Lipsky's taking over as CEO of AWS time, Amazonian who left Amazon to take the CEO job of Tableau sold that company to Salesforce under mark Benioff. Now back to take the helm from Andy Jassy and quite the pressure cooker here as he takes the stage, a lot of people are asking, is will he do well? Will he fumble on stage? Will he do the right things? And does he have what it takes to take the cloud to the next generation with AWS as their number one clear far and away, then the second competitor in Microsoft and then a look distant third and Google. So Amazon's are under a ton of competitive pressure. At least from an industry standpoint, everyone's still trying to catch up. It's the same theme, Dave, every year Amazon is out front and the lead just gets extended and extended. And again, here, no exception. Well, the Uber >>Of course there's you mentioned is Andy Jassy is now taking over a CEO of Amazon. And you know, history would suggest that a lot of times that companies falter when there's a CEO transition, but it feels like it's different this time. Andy Jassy was here since the beginning launched AWS versus a profit engine of Amazon brought back Adam sill Lipski who has a deep understand. He's not as technical as Andy, but obviously as a deep understanding of the business, yeah, he was comfortable up in the keynote. It wasn't John, a typical firehose of announcements. Even those, a lot of announcements, they didn't shove them down our throat and they didn't in the analyst session as well. Usually in the analyst session, it's hours and hours and hours of firehose Kool-Aid injection, not this year. Why do you think that is, is that a COVID thing? Is that a change in now? >>I think Adam's Leschi wants to be his own guy. As, as leader here, a lot of things were eliminated from the keynote that Andy Jasmine did, for instance, Andy Jesse loves music. So we always had the music walk up music like you see in sports, uh, which is very cool. That's an Andy Jassy kind of tweak. Andy is all about announcements and he was just, uh, pushing the envelope. Adam was much more laid back. He sees, I think, more of a holistic picture being more of an app guy being more of a data guy, less of a, I would say under the covers nerd like Jassy was, Andy was very deep on, on a lot of the tech stuff as is Adam. But I think Andy a little bit more proactive on that. So Adam was very much more about the impact of 80 of us culturally, as a society, as a company and kind of brought in this kind of think different apple vibe, which is, you know, the people who are Pathfinders, um, as he takes that Jassy kind of, um, approach of leaders, but be a builder, be a change agent, be a game changer. >>Adam took it to another level by saying, Hey, it's okay to be a Pathfinder because it's net new disruption with the cloud. And I think that's the story that I see coming out of this where, uh, in talking to Adam one-on-one Amazon absolutely has a secret weapon in it's chips, custom Silicon. They're absolutely crushing it with how they're thinking about SAS and platforms and they have a huge ecosystem. And I think at the end of the day, and we talked about this in our story on Silicon angle, Amazon could actually wipe out Microsoft. And I think Microsoft's core competitive advantage has always been their ecosystem and their developers. I think right now in the next few years, if Microsoft doesn't match Amazon, they will be decimated anyway, you know? >>Yeah, hold on. Okay. Amazon's not going to wipe out Microsoft. Microsoft has too much of a cash cow. Look at the hanging on to windows. Couldn't, you know, the mistake and missing mobile event initially missing the cloud. Didn't wipe out Microsoft. So they've just got too much of a software cashflow. That's not gonna happen maybe a little bit over the top. >>I thought, but Microsoft has done a great job and it's not going to tell it to kind of stay in the game and do more. But if you look at the major inflection points, Dave where's digital equipment corporation, where's prime computer. Well, >>I think this is the point is again, history would show that those companies, when they handed the reigns over to a new CEO failed, they faltered, it was self-inflicted wounds. It almost happened. You thought it would happen with Microsoft, whether it became irrelevant under bomber, but when Nadella came in, he reinvigorated because specifically they had the cashflow to be able to do that. Now. So the big question is, okay, w what's going to happen. We ran a survey to our community to see what could disrupt Amazon. You know, that the us government wants to break them apart or wants to regulate them. But our survey respondents said there's a 60% plus probability that Amazon will be disrupted by other factors. And that's what I was self-inflicted wound that's Jesse's that's right. And that's, Jessie's big challenge is how to not make those disruptions, how to fight those disruptions. >>The number one, uh, reason why they could be disrupted was self-inflicted wounds, which again, history would show what happened. But one of the things we talked about is that normally happens when companies stop innovating when they rest on their laurels. Right. And you kind of saw that with those companies that you mentioned, but you mentioned their secret weapon. We wrote about that in our article, the chips. So we heard no secret. Everybody knew graviton three was coming, right? And so that is Amazon secret up. And you know, I've been thinking about this. John Amazon makes a lot of money on x86 instances that they've deployed years ago and they charge a lot for, I was wondering, you know, is the, or the old X 86 instances actually more profitable than graviton, maybe at this point in time, but long-term graviton. They control their own destiny because they control the hardware and software stack. And I bet you allows them to get better negotiating leverage with >>M D and it's of course, I mean, pat, Kelsey, we should talk about this all the time, but as bad as Jason Intel, you, if you're not out in the next wave, your driftwood, I think Intel and AMD and others, they have purpose-built general purpose chips. They're probably going to be for the lift and shift stuff when you, but if you're actually seriously writing software as an owner on the cloud, and you want specific advantages of speed and performance, you're going to want the custom Silicon that's purpose-built for your application and write code to that stack. So, so I think there's a whole nother level of platform as a service. Dave, that's kind of coming out of this re-invent that I think could be a multi generational trend, which is, Hey, the cloud is of super cloud or platform. Look at the riser, snowflake and Databricks. Those guys are on Amazon. Like they're super clouds in and of themselves they're platforms. They're not appoint SAS solution. I think Microsoft in my, my analysis is, yeah, they got office 365, okay. Word processing stuff. But what other SAS apps do they have besides SQL server and other things that are actually being built on there? And if, if I'm a developer you're going to want to go to the platform. That's the highest performance for office 365. It's a cash cow. But how long is that going to last >>A long time? I mean, major momentum. We argue about that later, but I wanna, I want to touch on graviton three because I think that was the big announcement of the day 25% faster than graviton to at least twice the floating point performance twice the crypto graphic performance in three times for machine learning, learning workloads, and very importantly, 60% less power. So at Amazon scale, uh, Adam said this in our meeting, he said, the economics really favor us because of our scale. And so, and they've also announced new training them instances and, and, and what, what having custom Silicon allows Amazon to do is release on a much, much faster cadence than traditional x86. And they could do, and they could do really cool things. Nitro is there, Nick they're smart NEC, which it says the basis, their new hypervisor, if you will. So it allows them to bring in x86, uh, Nvidia NPUs some of their own or Nvidia GPU, some of their own Silicon. So optionality is really the key there. You heard them announce, uh, an SAP instance. So that's a memory intensive instance. They can dial things up, dial things down. They've got full control of the stack. And by the way, copying them Google's copy of Microsoft is copying them. And who's leading this charge in custom Silicon, AWS, obviously Tesla, apple. I mean, these are leading companies that I don't think they all got it wrong. I think >>The Silicon angle is to have your own custom Silicon. And that's the, that is the clearly the advantage as it's vertically integrated. But the other thing that's coming out of this reinvents, the purpose built software concept where, you know, they're not copying Microsoft playbook as the wall street journal was saying, and some are saying Microsoft copying Amazon, Amazon has always been this horizontally scalable resource that's cloud, but with machine learning and AI, you now have this purpose-built kind of capability from software into the app itself where data has to be addressable. And I think the people in the data business kind of know this, but as the rest of the world comes out, architecturally having that horizontal observation space and data that's vertically tied to machine learning is a huge architectural shift. This is a complete rethinking of how software is built and that's going to be a game changer. I think Amazon's well out on front of that. And I think that's going to be a huge architectural shift. >>Well, let's quantify this a little bit because you know, you're, you're making the point that Amazon is the number one cloud, which I would agree with. We're talking here about IAS infrastructure as a service in the past layer that sits on top of that. Microsoft defines the cloud is we'll put in an office 365, Google we'll put in its Google apps, Amazon pure infrastructure as a service. And if you just look at that space, that's about $120 billion business. When you add up AWS, Azure, Alibaba and GCP, which I would contend are the only four hyperscalers out there. I don't include Oracle as a hyperscale. I don't include IBM. I get a lot of crap for that sometimes. Yeah, but we're talking big scaler, $120 billion. So actually relatively small compared to the trillion dollar opportunity that they have, but it's growing at 35% a year. Amazon will do more than 60 billion this year, 62 billion, just to quantify it in that ISS space. Microsoft will be about 38, 30 9 billion. Okay. So pretty substantial. Those two are far ahead of the others. Everybody else's, you know, Google is still in, you know, under 10 billion, Alibaba is right around there. So those two, it's really a two horse race. And I asked Microsoft using its software estate. Amazon's gotta be the innovator and has to have the best cloud to win. And it does well >>Also a platform. Let's go back to the little history lesson for the younger folks out there. When Microsoft was had a monopoly, they had windows operating system, which has had DAS under the covers, but windows was the operating system. And office was a suite of applications. They encourage software developers to build on top of windows and they had other servers off SQL server all came out of that small history. So their bread and butter was to have developers build on top of windows. Hence the monopoly, of course they had the application and the system software, hence the monopoly, hence the Microsoft breakup by the government in 1997. Now today cloud is essentially one big kind of PC concept. It's like windows, it's windows equivalent. So cloud is essentially an environment platform that has apps that run on top of it. Okay. In that world, Amazon by far is the number one windows model at Amazon's. >>I mean, Microsoft is used to is okay, I got Azure and I got office 365 that keeps them in business that keeps them from losing. So it's a placeholder. So that what I'm looking at is what is Amazon? I mean, Amazon versus Azure, doing relative to ISV and uptake for developers. And I'm suggesting that this trend of Amazon will go, if it goes uncontested by Azure, they'll wipe the table on ISV and suffer developers. If you're an owner of a software, you're not gonna write software, that's gonna be sub-optimized for a platform. That's not going to be before, >>Unless you're, unless you're a Microsoft developer, nearly all.net days. And there are a lot of those. And that's what, that's what Microsoft is doing. They're they're, they're, they've, they've shifted to cloud, they've gone everything into cloud. So Azure is their platform for innovation and acceleration. >>So those developers are going to build a sub application versus going over here on AWS. >>Well, that's the, that's the story with Microsoft. Good enough. I know >>Again, this is we're speculating, but we're going to watch that, but that is, to me, will be the battlefield of what will determine Azure versus AWS. And I think everything else is smoke and mirrors Amazon Webster way ahead of Azure, but the TeleSign is going to be does 80 bus attract those developers on their cloud with the custom Silicon, with the integrated stack and with the purpose-built software. I mean, it's looking really good. I think they've got a really compelling story. >>I think it's less about Azure versus AWS. I mean, that's an interesting storyline and I love to talk about it, but I think they'll go back to 120 billion out of 4 trillion. That's really the, the larger opportunity for, for both Microsoft and AWS to continue to grow. Because you look at, you look at Dell with apex, you look at HPE with GreenLake, Lenovo, Cisco, they've all got their own clouds. One of the things that didn't get into our article, but Adam Lipski when, when you asked him about hybrid is that hybrid cloud. When we were talking about some of the stuff they're doing, he S he said, look, that's not cloud what those guys are doing. That's not what we did. And he talked today about edge has to be AWS, not like AWS. That was the quote to use. Talk about, you know, private 5g, bringing out posts. And he gave some examples of that. The point is they, AWS is bringing its system, its architecture to the edge it's programming model infrastructure as code to the edge. Now, Kubernetes, Kubernetes does moderate that a little bit, but his point was, that's not AWS. That's not the cloud. >>Yeah. I think in summary, Dave had to wrap up what's the big trend this week is that Amazon web services is a, is a heaven environment for a developer, for the elite people who want to roll their own for the folks in it. In these other environments, you can have prefabricated purpose-built software platform to build on top of. And I think that isn't going to address the whole ease of ease of rollout. So if I'm a SAS developer, I don't, I want, I don't want to rebuild that over again. I don't want to roll my own. I'll take what you got and connects a good example. If you want to call shedder, you can take it and use it and then build on top of it and iterate on it. So I think it's more of here's a platform for you and take it. So I think that to me is the big story and that's not and think about it. How many people out there, a role in their own Amazon, you've got to be pretty strong at Amazon, uh, familiar ups to roll your own gut >>Of other quick points that he barely emphasized the primitives, the API APIs, that multiple databases, right tool for the right job, took a shot at Oracle without mentioning Oracle because they had sort of one database, but I will say this is mission critical. Oracle still owns that. Uh, they talked about a mainframe migration, tooling and runtime from mainframe compatible runtime. That's going to allow them to nip at the edges of those mainframe workloads and Oracle workloads. It, they're not going to get to the core anytime soon. They also talked about role level and cell level security. We think that's the squirrel acquisition from years ago. And then he made a statement. We have three X with Redshift price performance better than any cloud data warehouse sort of interesting shot at, at, at, at a snowflake and Databricks Databricks. So, um, anyway, yeah, >>I mean, I think, I think overall, I thought Adam did a good job. I think he didn't, uh, he didn't disappoint. Okay. But that's comfortable. I think his goal was to get through this and not have people go well, it's not Andy Jassy. I thought he did an awesome job and he did a good job. And he, he got, he got what he needed to do >>Comfortable. And he obviously leaned on some of his Pathfinder customers. NASDAQ, I thought was very impressive. United airlines dish. So, >>Okay. Cutie coverage, ninth year of the cube here at ADP reinvent, uh, 2021 is the cube. You're watching the leader in high-tech coverage. The cube.