>> from the Silicon Angle Media Office in Boston, Massachusetts. It's the cue. Now, here's your host. Day Volonte. >> Hi, >> everybody. Welcome to this cute conversation. I'm Dave Volonte and Stew Minuteman is here with me. We're gonna break down a w s kind of give you Ah, midyear What's happened so far this year with all the events that we've been covering and what to look forward to? Uh, the N Y C Summit is coming up stew. It's been a big year. Obviously. What we came off a re invent. Amazon's got $30,000,000,000 run rate business growing at 40 plus percent per year. That means they're putting 9,000,000,000 of incremental revenue every year into the cloud business. The marketplace, That growth that's roughly as large is tthe e entire Microsoft cloud business, which is astounding >> day that that that's that's the point Amazon definitely has been making for a couple of years. And you're absolutely right. Microsoft is definitely growing at a faster pace than Amazon, and they're running about 75 87 but off a much smaller number. So the incremental add that Amazon has been throwing off the last couple years. Every year they're adding more than an azure every year. So absolutely Amazon, you know, is the lead horse out there. And while you know, the horses on the track behind them are trying fast to catch up Amazon. If you talk about Infrastructures service, AWS is still the lead. >> Well, the big question is. Will that attenuate? And we were at Remember the Nutanix inaugural Nutanix Stop next? Do you rush Pandey, who's very smart guy, somebody we respect a lot. One of the fundamental assumptions they were making is eventually the law of large numbers will catch up to them and know it very well May. But it hasn't yet. I asked John Lovelock, can a company the size of Amazon $30,000,000,000 company grow it for 42% a year? Is that sustainable? And he said, Absolutely. There's nothing to stop them now. Who knows who has the crystal ball? What are your thoughts? >> Yeah, So, Dave, what we saw is Amazon's not sitting still. You know, they always like to say it's always Day one, and if you look at where they're going, the products that they keep throwing off the innovation that they keep moving on and the flywheel that they've had first of customer acquisition with all of the innovations that they're putting out there and the flight well. But I've been talking about the last couple of years the label of data, which is something we want to be a little concerned about. How much data Amazon actually does have both Amazon AWS and Amazon, with all those intelligent devices that are in your homes and connecting everything together. Some people are a little concerned about that. The government's a little bit concerned about that, but absolutely Amazon is going everywhere. We've seen Amazon going into sub segments of the market, going into verticals and going just really broad, really deep. So absolutely I don't see anything slowing a bit on down. It is a company that continues to impress one of >> the challenges. I think those do that that Amazon does have, and this came out of the reinforced >> conference a couple weeks ago in Boston, which was, Ah, conference for security practitioners, a lot of si SOS chief information security officers. The number one challenge that came out of that when you talk to practitioners was their ability to keep up with the innovations that Amazon is putting forth. So, you know, I wonder if we're gonna talk to some commercial customers. You'll see them down the summit probe to see if, in fact, that's part of their challenge. Just the pace at which Amazon brings out new features. But we've done Gosh, we've covered eight events or will have covered eight events this year. Eight productions. It started in the U. K. Where we covered a public sector health care. And then we did the AWS summit London really all about both public sector in the UK as well as the summit in the UK Innovations in the UK around cloud, etcetera, cloud adoption. 12,000 people at the AWS London summit. Now you covered re Mars, which was not the Cube wasn't there, but you were there. What was that show? >> Yes. So, first of all, it's an Amazon >> show, not a native US show, but absolutely showed underneath where eight of us fits into the fulfillment centers of Amazon. And it was about re Marceau Mars A play of course on space. But it was a machine learning automation, robotics in space. So you had the cool blue origin stuff that actually brought in. Robert Downey Jr talked about how he's going to save the planet with, you know, robotics and intelligence out there to help clean up pollution in the globe on and the like. But it was a phenomenal show, but what I said is actually going to show a little bit underneath the covers of Amazon similar what we've seen from eight of us at the reinvent shows over the years. Because, you know, we all know how many boxes air coming to our, you know, our place of home every day and how fast that's going. And so this is what's happening underneath the robotics and machine learning a lot of those Air AWS Service's that are powering that. So it was a fascinating show, Dave and absolutely showed other relationship between Amazon, the parent company. Eight of us, all those cloud service is that helped feed the bigger business. >> Now, June, the Cube covered the D. C. Public sector summit. This is Teresa Carlson's gig. She's the host. Actually, Andy Jassy was there this time. He wasn't there last year when you and I recovering it. And of course, that's all about bringing cloud to public sector, not just federal but all public sector. It includes AH, non profit and education, which talk about in a minute. The big story. There is a jet. I we're talking about tens of billions of dollars going to ah, contract. Oracle, of course, is fighting it. It's going into the courts. I guess they've been a number of reviews or could won't give up its oracle. Amazon clearly is the front runner. Last I read, it was down to AWS and Microsoft, with AWS being the lead contender there. We'll see what happens. I think the decision is coming down this month, July 2019. But it's really again about bringing cloud innovations to public sector. Public sector tends to take things a little bit later than the commercial like. For instance, last year they announced the the VM wear on AWS was available, so you'll see those kinds of things come maybe a year later. But its again. Another big show there 12. 13,000 people there at the D. C Convention center. >> Yeah, Davey, when you talked about the critique of what's happening in Amazon as Amazon goes deeper into all of these verticals How do they help get that information to the user in a way that they need to run their businesses? So my co host for New York City's Cory Quinn was listen to his podcast this morning and he said, That's where Amazon's got dozens of blog's. They've got so many announcements, they haven't done a really good job, something we've seen many companies do. How do I get to you know that business roll and put it in, you know, verbal that they understand, as opposed to just >> Hey, we had 1000 new features >> come out this year and they're awesome. Then you should use everything s o. You know, that's something that, you know the industry as a whole needs to do better at an Amazon. Just in the nature of how fast they're moving is something that they should be able to do a better job. >> And Jennifer is also gonna be in New York City. And one of things he was stressing at reinforce was the marketplace. We had Dave McCann on the just rocketing. I think it was 100,000 census of security subscriptions. I think it was 1,000,000 subscriptions in total so just an amazing ah momentum in the marketplace. But reinforce was all about security. Deep dives on security, chief information, security officers. What came out of that show the big takeaway was was head of AWS is, uh, security. The chief information security officer, Schmidt said. This narrative in the industry that the sky is falling doesn't do anybody any good. Um, it's not productive. We should be more positive. The state of the cloud union is good, like the president of states is State of the Union is strong. Um, having said that, Amazon talks about the shared security model. The practitioners that we talked to said, Yeah, shared model Amazon's going to secure the the infrastructure of the storage, the compute of the database. We are responsible for our end, and it really is on us to make sure that we are secure. So again, back to that point about the pace of innovation that Amazon is putting forth is a challenge for people. AWS imagine is also going down. I think this week what's that you're >> so it's in Seattle and it's you mentioned the public Sector one in D. C, which is government agencies, nonprofits and education. So imagine is a subset of that. My understanding is the education, a nonprofit piece of that from when you and I were in D. C. Last year for the Public sector summit. It's It is impressive how deep Amazon is going into these spaces, the affinity they have. And really, you know how happy the customers are to be able to move fast. So, you know, when you think about nonprofits and think about education, innovation is not the first thing that usually comes to mind because budgets are tight and I don't have enough people. And usually you've got, you know, whatever's left over. But imagine is them. How do we move these forward? How do we You know, we know we need to help transform education. It's so important to train the next generation. So, you know, imagine there are some great stories that come out of that. Jeffrey loves getting those stories, helping us tell those stories through the Cube platform. And so it's the second year we're doing >> Yes, it would be covering that. And then, of course, reinvent will have two sets again that reinvent this year. The Super >> Bowl of our industry, >> right? Sure. Um, something's going on. So unfortunate incidents in Southern California. Big earthquakes, actually. Multiple earthquakes, Right? You had the physical earthquake, and then you had CO I, leonard going to the Clippers. But so I'm interested in sort of poking at this notion of ground stations. So at reinvent last year, Amazon announced on his own ground station, which essentially was ground station is a service. So if I understand it, one of the challenges okay, You launched the satellites, but you still need a ground station to collect the data and then uploaded and analyze it. That's what AWS is is partnering to put in infrastructure that allows you to essentially rent ground station infrastructure. So, you know, they worry about building it in securing it yourself. Because you think about it. It's got to be a secure location. You gotta have fencing. You got a physical security. You got to get the data in. You gotta upload it to the toe. Where we gonna upload it? So Amazon is basically building this service out, saying Don't worry about the ground station piece. Rent that from us, you know, swipe your credit card. Your ground station as a service, and then we'll ingest that data uploaded to the cloud and then apply all of the tooling that we have to allow you to analyze that data. So if you think about the earthquake of devastation, if you don't have a ground station there, you can, in theory, go to AWS and actually spin up a ground station in jest. You know, on the ground, you know, the ground truth as we like to sometimes talk about and actually get satellite imaging and telemetry in that region, you know, this comes into play things like forest fires and all kinds of of natural disaster. >> Dave, even at the remarks show, I attended a session where one of the Amazon partners was talking about not only just getting the satellite data down, but Justus. They have the snowball edge today, which is, you know, for you know, I ot or some remote sites, but some of these satellites are gonna have the compute and storage at in satellite themselves. So if you think about I'm gonna have these geosynchronous satellites. I'm gonna have all this connectivity. And if I could get a gigabit of Ethernet, you know, traffic going to the satellites and I could do the processing at the edge, which is now up in space. I can process that. And you know, that edge that we talked about get to hold another dimension, you know, off off the terra firma to be able to do those kind of analysis. As you said, earthquakes, you know, all the all the climate discussion that's going on, we should be able to have tap into even more. Resource is, and we'll have to rename Cloud if it even goes beyond the Earth. >> And then, um, outpost is the other story that we've been tracking, attracting a lot of stories, but but outpost is starting to ship in beta form. We've seen instances of >> so, so seeing >> it. We just did a little quick right up. >> I mean, Dave, you know, just a ripple went through the >> industry when they showed Hey, here's Iraq and what they're like. This is the exact same rack that we have in the Amazon data centers and why it's a little surprising because we're allowed to see inside the Amazon Data Center. So it's like, Okay, this is what they're computed awaited to 24 in tracking, supposed to a 19 in track. But that line between the public cloud and my on premises environment absolutely is blurring. So everybody wants to see where Amazon's going. They have the big partnership with VM, where Veum, where is already shipping the solution? That is the same software for that Veum wear on AWS in my data center. So, you know, I can have you know, the Dell hardware with the Veum where code or I can have the Amazon hardware with the VM where code coming later this year without post. So that line between public in private is absolutely blurring. And where to my applications live, You know that that future of how fast is eight of us continue to grow? Absolutely. There are applications and data and things that will stay in my own data center and under my control. But that line is definitely blurring. And there's gonna be some re architectures. It's definitely still gonna take a couple of years to sort some of these things out. But we're at some of those inflection points where we'll see some of >> us. So I wrote a post its upon wicked bond kind of analyzing that video, and there's some interesting things that are unique. There's certainly a lot of goodness in there. Not some of the things they talk about are completely unique. Thio, aws. But things like Nitro and their special virtual ization engine and their special chip on Do you want to get a look at that? You take a look at that video and thence to New York City Summit this week. Um, we mentioned some of the innovations that we've seen up to date this year. A lot of talk I'm sure about the marketplace. >> Yeah, I'm wondering if there'll be any ripples, Dave, because the 1/2 of a chick you, too, was supposed to be in New York City. And now it's not, doesn't mean they don't have a strong presence in New York City like London and believe it's somewhere around 12 to 15,000 people. When I went to New York City two years ago was quite impressive. It is a free show, which means if your customer you get in for free. If you're a partner, of course, you're still paying for everything that goes there. But the regional summits are quite impressive and a great way to get in touch with Amazon and all that they're doing. If you don't want to go to the Super Bowl itself, which is, you know, 50,000 plus now in Las Vegas towards the end of the year. >> Yeah, these air, like many reinvents and they're actually quite good. A lot of a lot of practitioner focused on you're gonna you're gonna see that New York City >> did what I always love about every Amazon show I go to. There are customers that are interested learning new things. How can you do better with what I'm doing? But also, how can I change what I'm doing? How can I move forward? So even if it's not adopting the latest and greatest from AWS, the entire ecosystem is going there to meet with those customers and talk about digital transformation? Modern workforce? All of these hot trends definitely play out. Ground zero is the AWS. >> Yeah, and this is by design. As I said before, the pace of innovation is a challenge for people. It's an adoption blocker and so Amazon wants to educate and share the knowledge so that they can get more adoption. OK, stew. Thanks very much. Good luck. This week. Check out silicon angle dot com For all the news, the cube dot net is where the videos will live and watch. Do on John Ferrier and Corey Quinn. Live and check out the cuban dot com for all the research. Thanks for watching Everybody Day, Volonte and Stupid Event. We'll see you next time.