>>Everyone welcome back from the cubes coverage here in Las Vegas for Aus re Mars. It's one of the re shows, as we know, reinvent is the big show. Now they have focus, shows reinforces coming up that security Remar is here. Machine learning, automation, robotics, and space. I'm John for your host, Michael Mike Miller here, director of machine learning thought leadership with AWS. Great to see you again. Yeah. Give alumni welcome back here. Back every time we got deep racer, always to talk >>About, Hey John, thanks for having me once again. It's great to be here. I appreciate it. >>So I want to get into the deep racer in context here, but first re Mars is a show. That's getting a lot of buzz, a lot of press. Um, not a lot of news, cuz it's not a newsy show. It's more of a builder kind of a convergence show, but a lot is happening here. It's almost a, a moment in time that I think's gonna be one of those timeless moments where we're gonna look back and saying that year at re Mars was an inflection point. It just seems like everything's pumping machine learning, scaling robotics is hot. It's now transforming fast. Just like the back office data center did years ago. Yeah. And so like a surge is coming. >>Yeah. >>What, what's your take of this show? >>Yeah. And all of these three or four components are all coming together. Right. And they're intersecting rather than just being in silos. Right. So we're seeing machine learning, enabled perception sort of on robots, um, applied to space and sort of these, uh, extra sort of application initiatives. Um, and that's, what's really exciting about this show is seeing all these things come together and all the industry-wide examples, um, of amazing perception and robotics kind of landing together. So, >>So the people out there that aren't yet inside the ropes of the show, what does it mean to them? This show? What, what, what they're gonna be what's in it for me, what's all this show. What does it mean? >>Yeah. It's just a glimpse into where things are headed. Right. And it's sort of the tip of the iceberg. It's sort of the beginning of the wave of, um, you know, these sort of advanced capabilities that we're gonna see imbued in applications, um, across all different industries. >>Awesome. Well, great to have you in the cube. Every time we have an event we wanna bring you on because deep racers become a, the hottest, I won't say cult following because it's no longer cult following. It's become massive following. Um, and which started out as an IOT, I think raspberry pie first time was like a, like >>A, we did a little camera initially camera >>And it was just a kind of a fun, little clever, I won't say hack, but just having a project that just took on a life OFS own, where are we? What's the update with racer you're here with the track. Yeah, >>Possibly >>You got the track and competing with the big dogs, literally dog, you got spot over there. Boston dynamics. >>Well we'll, we'll invite them over to the track later. Yeah. So deep razor, you know, is the fastest way to get hands on with machine learning. You know, we designed it as, uh, a way for developers to have fun while learning about this particular machine learning technique called reinforcement learning, which is all about using, uh, a simulation, uh, to teach the robot how to learn via trial and error. So deep racer includes a 3d racing simulator where you can train your model via trial and error. It includes the physical car. So you can take, uh, the model that you trained in the cloud, download it to this one 18th scale, um, kind of RC car. That's been imbued with an extra sensor. So we have a camera on the front. We've got an extra, uh, Intel, X, 86 processor inside here. Um, and this thing will drive itself, autonomously around the track. And of course what's a track and uh, some cars driving around it without a little competition. So we've got the deep racer league that sort of sits on top of this and adds a little spice to the whole thing. It's >>It's, it's like formula one for nerds. It really is. It's so good because a lot of people will have to readjust their models cuz they go off the track and I see people and it's oh my, then they gotta reset. This has turned into quite the phenomenon and it's fun to watch and every year it gets more competitive. I know you guys have a cut list that reinvent, it's almost like a, a super score gets you up. Yeah. Take, take us through the reinvents coming up. Sure. What's going on with the track there and then we'll get into some of the new adoption in terms of the people. >>Yeah, absolutely. So, uh, you know, we have monthly online races where we have a new track every month that challenges our, our developers to retrain their model or sort of tweak the existing model that they've trained to adapt for those new courses. Then at physical events like here at re Mars and at our AWS summits around the world, we have physical, uh, races. Um, and we crown a champion at each one of those races. You may have heard some cheering a minute ago. Yeah. That was our finals over there. We've got some really fast cars, fast models racing today. Um, so we take the winners from each of those two circuits, the virtual and the physical and they, the top ones of them come together at reinvent every year in November, December. Um, and we have a set of knockout rounds, championship rounds where these guys get the field gets narrowed to 10 racers and then those 10 racers, uh, race to hold up the championship cup and, um, earn, earn, uh, you know, a whole set of prizes, either cash or, or, you know, scholarships or, you know, tuition funds, whatever the, uh, the developer is most interested >>In. You know, I ask you this question every time you come on the cube because I I'm smiling. That's, it's so much fun. I mean, if I had not been with the cube anyway, I'd love to do this. Um, would you ever imagine when you first started this, that it would be such so popular and at the rise of eSports? So, you know, discord is booming. Yeah. The QB has a discord channel now. Sure, sure. Not that good on it yet, but we'll get there, but just the gaming culture, the nerd culture, the robotics clubs, the young people, just nerds who wanna compete. You never thought that would be this big. We, >>We were so surprised by a couple key things after we launched deep racer, you know, we envisioned this as a way for, you know, developers who had already graduated from school. They were in a company they wanted to grow their machine learning skills. Individuals could adopt this. What we saw was individuals were taking these devices and these concepts back to their companies. And they're saying, this is really fun. Like we should do something around this. And we saw companies like JPMC and Accenture and Morningstar into it and national Australia bank all adopting deep racer as a way to engage, excite their employees, but then also create some fun collaboration opportunities. Um, the second thing that was surprising was the interest from students. And it was actually really difficult for students to use deep racer because you needed an AWS account. You had to have a credit card. You might, you might get billed. There was a free tier involved. Um, so what we did this past year was we launched the deep racer student league, um, which caters to students 16 or over in high school or in college, uh, deep Razer student includes 10 hours a month of free training, um, so that they can train their models in the cloud. And of course the same series of virtual monthly events for them to race against each other and win, win prizes. >>So they don't have to go onto the dark web hack someone's credit card, get a proton email account just to get a deep Razer that's right. They can now come in on their own. >>That's right. That's right. They can log into that virtual the virtual environment, um, and get access. And, and one of the other things that we realized, um, and, and that's a common kind of, uh, realization across the industry is both the need for the democratization of machine learning. But also how can we address the skills gap for future ML learners? Um, and this applies to the, the, the world of students kind of engaging. And we said, Hey, you know, um, the world's gonna see the most successful and innovative ideas come from the widest possible range of participants. And so we knew that there were some issues with, um, you know, underserved and underrepresented minorities accessing this technology and getting the ML education to be successful. So we partnered with Intel and Udacity and launched the AI and ML scholarship program this past year. And it's also built on top of deep Bracer student. So now students, um, can register and opt into the scholarship program and we're gonna give out, uh, Udacity scholarships to 2000 students, um, at the end of this year who compete in AWS deep racer student racers, and also go through all of the learning modules online. >>Okay. Hold on, lets back up. Cuz it sounds, this sounds pretty cool. All right. So we kind went fast on that a little bit slow today at the end of the day. So if they sign up for the student account, which is lowered the batteries for, and they Intel and a desk, this is a courseware for the machine learning that's right. So in order to participate, you gotta take some courseware, check the boxes and, and, and Intel is paying for this or you get rewarded with the scholarship after the fact. >>So Intel's a partner of ours in, in putting this on. So it's both, um, helping kind of fund the scholarships for students, but also participating. So for the students who, um, get qualified for the scholarship and, and win one of those 2000 Udacity Nanodegree scholarships, uh, they also will get mentoring opportunities. So AWS and Intel, um, professionals will help mentor these students, uh, give them career advice, give them technical advice. C >>They'll they're getting smarter. Absolutely. So I'm just gonna get to data here. So is it money or credits for the, for the training? >>That's the scholarship or both? Yes. So, so the, the student training is free for students. Yep. They get 10 hours a month, no credits they need to redeem or anything. It's just, you log in and you get your account. Um, then the 2000, uh, Udacity scholarships, those are just scholarships that are awarded to, to the winners of the student, um, scholarship program. It's a four month long, uh, class on Python programming for >>AI so's real education. Yeah. It's like real, real, so ones here's 10 hours. Here's check the box. Here's here's the manual. Yep. >>Everybody gets access to that. That's >>Free. >>Yep. >>To the student over 16. Yes. Free. So that probably gonna increase the numbers. What kind of numbers are you looking at now? Yeah. In terms of scope to scale here for me. Yeah. Scope it >>Out. What's the numbers we've, we've been, uh, pleasantly surprised. We've got over 55,000 students from over 180 countries around the world that have signed up for the deep racer student program and of those over 30,000 have opted into that scholarship program. So we're seeing huge interest, um, from across the globe in, in this virtual students, um, opportunity, you know, and students are taking advantage of those 20 hours of learning. They're taking advantage of the fun, deep racer kind of hands on racing. Um, and obviously a large number of them are also interested in this scholarship opportunity >>Or how many people are in the AWS deep racer, um, group. Now, because now someone's gotta work on this stuff. It's went from a side hustle to like a full initiative. Well, >>You know, we're pretty efficient with what we, you know, we're pretty efficient. You've probably read about the two pizza teams at Amazon. So we keep ourselves pretty streamlined, but we're really proud of, um, what we've been able to bring to the table. And, you know, over those pandemic years, we really focused on that virtual experience in viewing it with those gaming kind of gamification sort of elements. You know, one of the things we did for the students is just like you guys, we have a discord channel, so not only can the students get hands on, but they also have this built in community of other students now to help support them bounce ideas off of and, you know, improve their learning. >>Awesome. So what's next, take us through after this event and what's going on for you more competitions. >>Yeah. So we're gonna be at the remainder of the AWS summits around the world. So places like Mexico city, you know, uh, this week we were in Milan, um, you know, we've got some AWS public sector, um, activities that are happening. Some of those are focused on students. So we've had student events in, um, Ottawa in Canada. We've had a student event in Japan. We've had a student event in, um, Australia, New Zealand. And so we've got events, both for students as well as for the professionals who wanna compete in the league happening around the world. And again, culminating at reinvent. So we'll be back here in Vegas, um, at the beginning of December where our champions will, uh, compete to ho to come. >>So you guys are going to all the summits, absolutely. Most of the summits or >>All of them, anytime there's a physical summit, we'll be there with a track and cars and give developers the opportunity to >>The track is always open. >>Absolutely. All >>Right. Well, thanks for coming on the cube with the update. Appreciate it, >>Mike. Thanks, John. It was great to be >>Here. Pleasure to know you appreciate it. Love that program. All right. Cube coverage here. Deep race are always the hit. It's a fixture at all the events, more exciting than the cube. Some say, but uh, almost great to have you on Mike. Uh, great success. Check it out free to students. The barrier's been lower to get in every robotics club. Every math club, every science club should be signing up for this. Uh, it's a lot of fun and it's cool. And of course you learn machine learning. I mean, come on. There's one to learn that. All right. Cube coverage. Coming back after this short break.

from the cube studios in palo alto in boston bringing you data-driven insights from the cube and etr this is breaking analysis with dave vellante by our estimates aws will generate around nine billion dollars in storage revenue this year and is now the second largest supplier of enterprise storage behind dell we believe aws storage revenue will hit 11 billion in 2022 and continue to outpace on-prem storage growth by more than a thousand basis points for the next three to four years at its third annual storage day event aws signaled a continued drive to think differently about data storage and transform the way customers migrate manage and add value to their data over the next decade hello and welcome to this week's wikibon cube insights powered by etr in this breaking analysis we'll give you a brief overview of what we learned at aws's storage day share our assessment of the big announcement of the day a deal with netapp to run ontap natively in the cloud as a managed service and we'll share some new data on how we see the market evolving with aws executive perspectives on its strategy how it thinks about hybrid and where it fits into the emerging data mesh conversation let's start with a snapshot of the announcements made at storage day now as with most aws events this one had a number of announcements and introduced them at a pace that was predictably fast and oftentimes hard to follow here's a quick list of most of them with some comments on each the big big news is the announcement with netapp netapp and aws have engineered a solution which ports the rich netapp stack onto aws and will be delivered as a fully managed service this is a big deal because previously customers either had they had to make a trade-off they had a settle for cloud-based file service with less functionality than you could get with netapp on-prem or it had to lose the agility and elasticity of the cloud and the whole pay-by-the-drink model now customers can get access to a fully functional netapp stack with services like data reduction snaps clones the full multi-protocol support replication all the services ontap delivers in the cloud as a managed service through the aws console our estimate is that 80 of the data on-prem is stored in file format and that's not the revenue but that's the data and we all know about s3 object storage but the biggest market from a capacity standpoint is file storage you know this announcement reminds us quite a bit of the vmware cloud on aws deal but applied to storage netapp's aunt anthony lai told me dave this is bigger and we're going to come back to that in a moment aws announced s3 multi-region access points it's a service that optimizes storage performance it takes into account latency network congestion and the location of data copies to deliver data via the best route to ensure our best performance this is something we've talked about for quite some time using metadata to optimize that that access aws also announced improvements to s3 tiering where it will no longer charge for small objects of less than 128k so for example customers won't be charged for most metadata and other smaller objects remember aws years ago hired a bunch of emc engineers and those guys built a lot of tiering functionality into their boxes and we'll come back to that later in this episode aws also announced backup and monitoring tools to ensure backups are in compliance with regulations and corporate edicts this frankly is table stakes and was was overdue in my view aws also made a number of other announcements that have been well covered in the press around block storage and simplified data migration tools so we'll leave that to your perusal through other outlets i want to come back to the big picture on the market dynamics now as we've reported in previous breaking analysis segments aws storage revenue is on a path to 10 billion dollars we reported this last year this chart puts the market in context it shows our estimates for worldwide enterprise storage revenue in the calendar year 2021. this data is meant to include all storage revenue including primary secondary and archival storage and related maintenance services dell is the leader in the 60 billion market with aws now hot on its tail with 15 of the market in terms of the way we've cut it now in the pre-cloud days customers would tell us our storage strategy is the following we buy emc for block and netapp for file keeping it simple while remnants of this past habit continue the market is definitely changing as you can see here the companies highlighted in red represent the growing hyperscaler presence and you can see in the pi on the right they now account for around 25 percent of the market and they're growing much much faster than the on-prem vendors well over that thousand basis points when you combine them all a couple of other things to note in the data we're excluding kindrel from ibm's figures that's ibm spinout but including our estimates of storage software for example spectrums protect that is sold as part of the ibm cloud but not reported in ibm's income statement by the way pre-kindred spin ibm storage business we believe would approach the size of netapp's business now in the yellow we've highlighted the portion of hyper-converged that comprises storage this includes vmware nutanix cisco and others vmware and nutanix are the largest hci players but in total the storage piece of that market is less than two billion okay so the way to look at this market is changing traditional on-prem is vying for budgets with cloud storage services which are rapidly gaining presence in the market and we're seeing the on-prem piece evolve of course into as a service models with hpe's green lake dell's apex and other on-prem cloud-like models now let's come back to the netapp aws deal netapp as we know is the gold standard for file services they've been the market leader for a long long time and other than pure which is considerably smaller netapp is the one company that consistently was able to beat emc in the market emc developed its its nas business and developed on its own nasdaq and it bought isilon to compete with netapp with isilon's excellent global file system but generally netapp remains the best file storage company today now emerging disruptors like cumulo vast weka they would take issue with this statement and rightly so as they have really promising technology but netapp remains the king of the file hill you can't debate that now netapp however has had some serious headwinds as the largest independent storage player as seen in this etr chart the data shows a nine-year view of netapp's presence in the etr survey presence is referred to by etr as market share it's not traditional market share it measures the pervasiveness of responses in the etr survey over a thousand customers each quarter so the percentage of mentions essentially that netapp is getting and you can see well netapp remains a leader it has had a difficult time expanding its tam and it's become frankly less relevant in the eye in the grand scheme and the grand eyes of it buyers the company hit headwinds when it began migrating its base to ontap 8 and was late riding a number of new waves including flash but generally it is recovered from those headwinds and it's really now focused on the cloud opportunity opportunity as evidenced by this deal with aws now as i said earlier netapp evp anthony lai told me that this deal is bigger than vmware cloud on aws like me you may be wondering how can that be vmware is the leader in the data center it has half a million customers its deal with aws has been a tremendous success as seen in this etr chart the data here shows spending momentum or net score from when vmware cloud on aws was picked up in the etr surveys with a meaningful n which today is approaching 100 responses in the survey the yellow line is there for context it's vmware's overall business so repeat it buyers who responded vmware versus specifically vmware cloud on aws so you see vmware overall has a huge presence in the survey more than 600 n the red line is vmware cloud on aws and that red dotted line you see that that's that's my magic 40 mark anything above that line we consider elevated net score or spending velocity and while we saw some deceleration earlier this year in that line that top line for vmware cloud vmware cloud and aws has been consistently showing well in the survey well above that 40 percent line so could this netapp deal be bigger than vmware cloud on aws well probably not in our view but we like the strategy of netapp going cloud native on aws and aws's commitment to deliver this as a managed service now where could get interesting is across clouds in other words if netapp can take a page out of snowflake and build an abstraction layer that hides the underlying complexity of not only the aws cloud but also gcp and azure where you log into the netapp cloud netapp data cloud if you will just go ahead and steal steal it from snowflake and then netapp optimizes your on-prem your aws your azure and or your gcp file storage we see that as a winning strategy that could dramatically expand netapp's tam politically it may not sit well with aws but so what netapp has to go multi-cloud to expand that tam when the vmware deal was announced many people felt it was a one-way street where all the benefit would eventually accrue to aws in reality this has certainly been a near-term winner for aws and vmware and of course importantly vmware and aws join customers now longer term it's going to clearly be a win for aws because it gets access to vmware's customer base but we also think it will serve vmware well because it gives the company a clear and concise cloud strategy especially if it can go across clouds and eventually get to the edge so with this netapp aws deal will it be as big probably not in our view but it is big netapp in our view just leapfrogged the competition because of the deep engineering commitment aws has made this isn't a marketplace deal it's a native managed service and we think that's pretty huge okay we're going to close with a few thoughts on aws storage strategy and some other thoughts on hybrid talk about capturing mission critical workloads and where aws fits in the overall data mesh conversation which is one of our favorite topics first let's talk about aws's storage strategy overall as with other services aws approach is to give builders access to tools at a very granular level that means it does mean a lot of apis and access to primitives that are essentially building blocks while this may require greater developer skills it also allows aws to get to market quickly and add functionality faster than the competition enterprises however where they will pay up for solutions so this leaves some nice white space for partners and also competitors and especially the on-prem folks but let's hear from an aws executive i spoke to milan thompson bucheveck an aws vp on the cube and asked her to describe aws's storage strategy here's what she said play the clip we are dynamically and constantly evolving our aws storage services based on what the application and the customer want that is fundamentally what we do every day we talked a little bit about those deployments that are happening right now dave that is something that idea of constant dynamic evolution just can't be replicated by on-premises where you buy a box and it sits in your data center for three or more years and what's unique about us among the cloud services is again that perspective of the 15 years where we are building applications in ways that are unique because we have more customers and we have more customers doing more things so you know i i've said this before uh it's all about speed of innovation dave time and change wait for no one and if you're a business and you're trying to transform your business and base it on a set of technologies that change rapidly you have to use aws services i mean if you look at some of the launches that we talk about today and you think about s3's multi-region access points that's a fundamental change for customers that want to store copies of their data in any number of different regions and get a 60 performance improvement by leveraging the technology that we've built up over over time the the ability for us to route to intelligently router requests across our network that and fsx for netapp ontap nobody else has these capabilities today and it's because we are at the forefront of talking to different customers and that dynamic evolution of storage that's the core of our strategy so as you hear and can see by milan's statements how these guys think outside the box mentality at the end of the day customers want rock solid storage that's dirt cheap and lightning fast they always have and they always will but what i'm hearing from aws is they think about delivering these capabilities in the broader context of an application or a business think deeper business integration not the traditional suppliers don't think about that as well but the services mentality the cloud services mentality is different than dropping off a box at a loading dock turning it over to a professional services organization and then moving on to the next deal now i also had a chance to speak with wayne dusso he's another aws vp in the storage group wayne do so is a long time tech athlete for years he was responsible for building storage arrays at emc aws as i said hired a bunch of emcs years ago and those guys did a lot of tiered storage so i asked wayne what's the difference in mentality when you're building boxes versus cloud services here's what he said you have physical constraints you have to worry about the physical resources on that device for the life of that device which is years think about what changes in three or five years think about the last two years alone and what's changed can you imagine having being constrained by only uh having boxes available to you during this last two years versus having the cloud and being able to expand or contract based on your business needs that would be really tough right and it has been tough and that's why we've seen customers from every industry accelerate uh their use of the cloud during these last two years so i get that so what's your mindset when you're building storage services and data services so so each of the surfaces that we have in object block file movement services data services each of them provides very specific customer value in each are deeply integrated with the rest of aws so that when you need object services you start using them the integrations come along with you when if you're using traditional block we talked about ebs io2 block express when using file just the example alone today with ontap you know you get to use what you need when you need it and the way that you're used to using it without any concern so so the big difference is no constraints in the box but lots of opportunities to blend in with other services now all that said there are cases where the box is gonna win because of locality and and physics and latency issues you know particularly where latency is king that's where a box is gonna be advantageous and we'll come back to that in a bit okay but what about hybrid how does aws think about hybrid and on-prem here's my take and then let's hear from milan again the cloud is expanding it's moving out to the edge and aws looks at the data center as just another edge node and it's bringing its infrastructure as code mentality to that edge and of course to data centers so if aws is truly customer centric which we believe it is it will naturally have to accommodate on-prem use cases and it is doing just that here's how milan thompson-bucheveck explained how aws is thinking about hybrid roll the clip for us dave it always comes back to what the customer is asking for and we were talking to customers and they were talking about their edge and what they wanted to do with it we said how are we going to help and so if i just take s3 for outposts as an example or ebs and outposts you know we have customers like morningstar and morningstar wants outposts because they are using it as a step in their journey to being on the cloud if you take a customer like first adudabi bank they're using outposts because they need data residency for their compliance requirements and then we have other customers that are using outposts to help like dish networks as an example to place the storage as close as account to the applications for low latency all of those are customer driven requirements for their architecture for us dave we think in the fullness of time every customer and all applications are going to be on the cloud because it makes sense and those businesses need that speed of innovation but when we build things like our announcement today of fxs for netapp ontap we build them because customers asked us to help them with their journey to the cloud just like we built s3 and evs for outposts for the same reason so look this is a case where the box or the appliance wins latency matters as we said and aws gets that this is where matt baker of dell is right it's not a zero-sum game this is especially accurate as it pertains to the cloud versus on-prem discussion but a budget dollar is a budget dollar and the dollar can't go to two places so the battle will come down to who has the best solution the best relationships and who can deliver the most rock solid storage at the lowest cost and highest performance let's take a look at mission critical workloads for a second we're seeing aws go after these it's doing a database it's doing it with block storage we're talking about oracle sap microsoft sql server db2 that kind of stuff high volume oltp transactions mission critical work now there's no doubt that aws is picking up a lot of low hanging fruit with business critical workloads but the really hard to move work isn't going without a fight frankly it's not going that fast aws and mace has made some improvements to block storage to remove some of the challenges related but generally we see this is a very long road ahead for aws and other cloud suppliers oracle is the king of mission critical work along with ibm mainframes and those infrastructures generally it's not easy to move to the cloud it's too risky it's too expensive and the business case oftentimes isn't there because very frequently you have to freeze applications to do so what generally what people are doing is they're building an abstraction layer over that putting that abstraction layer maybe in the cloud building new apps that can connect to the back end and the into the cloud but that back end is largely cemented and fossilized look it's all in the definition no doubt there's plenty of mission critical work that is going to move but just really depends on how you define it even aws struggles to move its most critical transaction systems off of oracle but we'll continue to keep an open mind there it's just that today we define the most mission-critical workloads as we define them we don't see a lot of movement to the hyperscale clouds and we're going to close with some thoughts on data mesh so one of our favorite topics we've written extensively about this and interviewed and are collaborating with jamaa dagani who has coined the term and we've announced a media collaboration with the data mesh community and believe it's a strong direction for the industry so we wanted to understand how aws thinks about data mesh and where it fits in the conversation here's what milan had to say about that play the clip we have customers today that are taking the data mesh architectures and implementing them with aws services and dave i want to go back to the start of amazon when amazon first began we grew because the amazon technologies were built in microservices fundamentally a data match is about separation or abstraction of what individual components do and so if i look at data mesh really you're talking about two things you're talking about separating the data storage and the characteristics of data from the data services that interact and operate on that storage and with data mesh it's all about making sure that the businesses the decentralized business model can work with that data now our aws customers are putting their storage in a centralized place because it's easier to track it's easier to view compliance and it's easier to predict growth and control costs but we started with building blocks and we deliberately built our storage services separate from our data services so we have data services like lake formation and glue we have a number of these data services that our customers are using to build that customized data mesh on top of that centralized storage so really it's about at the end of the day speed it's about innovation it's about making sure that you can decentralize and separate your data services from your storage so businesses can go faster so it's very true that aws has customers that are implementing data mess data mesh data mess data mesh can be a data mess if you don't do it right jpmorgan chase is a firm that is doing that we've we've covered that they've got a great video out there check out the breaking analysis archive you'll see that hellofresh has also initiated a data mesh architecture in the cloud and several others are starting to pop up i think the point is the issues and challenges around data mesh are more organizational and process related and less focused on the technology platform look data by its very nature is decentralized so when mylan talks about customers building on centralized storage that's a logical view of the storage but not necessarily physically centralized it may be in a in a hybrid device it may be a copy that lives outside of that same physical location this is an important point as jpmorgan chase pointed out the data mesh must accommodate data products and services that are in the cloud and also on-prem it's got to be inclusive the data mesh looks at the data store as a node on the data mesh it shouldn't be confined by the technology whether it's a data warehouse a data hub a data mart or an s3 bucket so i would say this while people think of the cloud as a centralized walled garden and in many respects it is that very same cloud is expanding into a massively distributed architecture and that fits with the data mesh architectural model as i say the big challenges of data mesh are less technical and more cultural and we're super excited to see how data mesh plays out over time and we're really excited to be part of part of the the community and a media partner of the data mesh community okay that's it for now remember i publish each week on wikibon.com and siliconangle.com and these episodes they're all available as podcasts all you do is search for breaking analysis podcasts you can always connect on twitter i'm at d vellante or email me at david.velante at siliconangle.com i appreciate the comments you guys make on linkedin and don't forget to check out etr.plus for all the survey action this is dave vellante for the cube insights powered by etr be well and we'll see you next time [Music] you

(pensive music) >> Thank you, Jenna, it's great to see you guys and thank you for watching theCUBE's continuous coverage of AWS Storage Day. We're here at The Spheres, it's amazing venue. My name is Dave Vellante. I'm here with Mai-Lan Tomsen Bukovec who's Vice President of Block and Object Storage. Mai-Lan, always a pleasure to see you. Thanks for coming on. >> Nice to see you, Dave. >> It's pretty crazy, you know, this is kind of a hybrid event. We were in Barcelona a while ago, big hybrid event. And now it's, you know, it's hard to tell. It's almost like day-to-day what's happening with COVID and some things are permanent. I think a lot of things are becoming permanent. What are you seeing out there in terms of when you talk to customers, how are they thinking about their business, building resiliency and agility into their business in the context of COVID and beyond? >> Well, Dave, I think what we've learned today is that this is a new normal. These fluctuations that companies are having and supply and demand, in all industries all over the world. That's the new normal. And that has what, is what has driven so much more adoption of cloud in the last 12 to 18 months. And we're going to continue to see that rapid migration to the cloud because companies now know that in the course of days and months, you're, the whole world of your expectations of where your business is going and where, what your customers are going to do, that can change. And that can change not just for a year, but maybe longer than that. That's the new normal. And I think companies are realizing it and our AWS customers are seeing how important it is to accelerate moving everything to the cloud, to continue to adapt to this new normal. >> So storage historically has been, I'm going to drop a box off at the loading dock and, you know, have a nice day. And then maybe the services team is involved in, in a more intimate way, but you're involved every day. So I'm curious as to what that permanence, that new normal, some people call it the new abnormal, but it's the new normal now, what does that mean for storage? >> Dave, in the course of us sitting here over the next few minutes, we're going to have dozens of deployments go out all across our AWS storage services. That means our customers that are using our file services, our transfer services, block and object services, they're all getting improvements as we sit here and talk. That is such a fundamentally different model than the one that you talked about, which is the appliance gets dropped off at the loading dock. It takes a couple months for it to get scheduled for setup and then you have to do data migration to get the data on the new appliance. Meanwhile, we're sitting here and customers storage is just improving, under the hood and in major announcements, like what we're doing today. >> So take us through the sort of, let's go back, 'cause I remember vividly when, when S3 was announced that launched this cloud era and people would, you know, they would do a lot of experimentation of, we were storing, you know, maybe gigabytes, maybe even some terabytes back then. And, and that's evolved. What are you seeing in terms of how people are using data? What are the patterns that you're seeing today? How is that different than maybe 10 years ago? >> I think what's really unique about AWS is that we are the only provider that has been operating at scale for 15 years. And what that means is that we have customers of all sizes, terabytes, petabytes, exabytes, that are running their storage on AWS and running their applications using that storage. And so we have this really unique position of being able to observe and work with customers to develop what they need for storage. And it really breaks down to three main patterns. The first one is what I call the crown jewels, the crown jewels in the cloud. And that pattern is adopted by customers who are looking at the core mission of their business and they're saying to themselves, I actually can't scale this core mission on on-premises. And they're choosing to go to the cloud on the most important thing that their business does because they must, they have to. And so, a great example of that is FINRA, the regulatory body of the US stock exchanges, where, you know, a number of years ago, they took a look at all the data silos that were popping up across their data centers. They were looking at the rate of stock transactions going up and they're saying, we just can't keep up. Not if we want to follow the mission of being the watchdog for consumers, for transactions, for stock transactions. And so they moved that crown jewel of their application to AWS. And what's really interesting Dave, is, as you know, 'cause you've talked to many different companies, it's not technology that stops people from moving to the cloud as quick as they want to, it's culture, it's people, it's processes, it's how businesses work. And when you move the crown jewels into the cloud, you are accelerating that cultural change and that's certainly what FINRA saw. Second thing we see, is where a company will pick a few cloud pilots. We'll take a couple of applications, maybe one or a several across the organization and they'll move that as sort of a reference implementation to the cloud. And then the goal is to try to get the people who did that to generalize all the learning across the company. That is actually a really slow way to change culture. Because, as many of us know, in large organizations, you know, you have, you have some resistance to other organizations changing culture. And so that cloud pilot, while it seems like it would work, it seems logical, it's actually counter-productive to a lot of companies that want to move quickly to the cloud. And the third example is what I think of as new applications or cloud first, net new. And that pattern is where a company or a startup says all new technology initiatives are on the cloud. And we see that for companies like McDonald's, which has transformed their drive up experience by dynamically looking at location orders and providing recommendations. And we see it for the Digital Athlete, which is what the NFL has put together to dynamically take data sources and build these models that help them programmatically simulate risks to player health and put in place some ways to predict and prevent that. But those are the three patterns that we see so many customers falling into depending on what their business wants. >> I like that term, Digital Athlete, my business partner, John Furrier, coined the term tech athlete, you know, years ago on theCUBE. That third pattern seems to me, because you're right, you almost have to shock the system. If you just put your toe in the water, it's going to take too long. But it seems like that third pattern really actually de-risks it in a lot of cases, it's so it's said, people, who's going to argue, oh, the new stuff should be in the cloud. And so, that seems to me to be a very sensible way to approach that, that blocker, if you will, what are your thoughts on that? >> I think you're right, Dave. I think what it does is it allows a company to be able to see the ideas and the technology and the cultural change of cloud in different parts of the organization. And so rather than having a, one group that's supposed to generalize it across an organization, you get it decentralized and adopted by different groups and the culture change just goes faster. >> So you, you bring up decentralization and there's a, there's an emerging trend referred to as a data mesh. It was, it was coined, the term coined by Zhamak Dehghani, a very thought-provoking individual. And the concept is basically the, you know, data is decentralized, and yet we have this tendency to sort of shove it all into, you know, one box or one container, or you could say one cloud, well, the cloud is expanding, it's the cloud is, is decentralizing in many ways. So how do you see data mesh fitting in to those patterns? >> We have customers today that are taking the data mesh architectures and implementing them with AWS services. And Dave, I want to go back to the start of Amazon, when Amazon first began, we grew because the Amazon technologies were built in microservices. Fundamentally, a data mesh is about separation or abstraction of what individual components do. And so if I look at data mesh, really, you're talking about two things, you're talking about separating the data storage and the characteristics of data from the data services that interact and operate on that storage. And with data mesh, it's all about making sure that the businesses, the decentralized business model can work with that data. Now our AWS customers are putting their storage in a centralized place because it's easier to track, it's easier to view compliance and it's easier to predict growth and control costs. But, we started with building blocks and we deliberately built our storage services separate from our data services. So we have data services like Lake Formation and Glue. We have a number of these data services that our customers are using to build that customized data mesh on top of that centralized storage. So really, it's about at the end of the day, speed, it's about innovation. It's about making sure that you can decentralize and separate your data services from your storage so businesses can go faster. >> But that centralized storage is logically centralized. It might not be physically centralized, I mean, we put storage all over the world, >> Mai-Lan: That's correct. >> right? But, but we, to the developer, it looks like it's in one place. >> Mai-Lan: That's right. >> Right? And so, so that's not antithetical to the concept of a data mesh. In fact, it fits in perfectly to the point you were making. I wonder if we could talk a little bit about AWS's storage strategy and it started of course, with, with S3, and that was the focus for years and now of course EBS as well. But now we're seeing, we heard from Wayne this morning, the portfolio is expanding. The innovation is, is accelerating that flywheel that we always talk about. How would you characterize and how do you think about AWS's storage strategy per se? >> We are a dynamically and constantly evolving our AWS storage services based on what the application and the customer want. That is fundamentally what we do every day. We talked a little bit about those deployments that are happening right now, Dave. That is something, that idea of constant dynamic evolution just can't be replicated by on-premises where you buy a box and it sits in your data center for three or more years. And what's unique about us among the cloud services, is again that perspective of the 15 years where we are building applications in ways that are unique because we have more customers and we have more customers doing more things. So, you know, I've said this before. It's all about speed of innovation Dave, time and change wait for no one. And if you're a business and you're trying to transform your business and base it on a set of technologies that change rapidly, you have to use AWS services. Let's, I mean, if you look at some of the launches that we talk about today, and you think about S3's multi-region access points, that's a fundamental change for customers that want to store copies of their data in any number of different regions and get a 60% performance improvement by leveraging the technology that we've built up over, over time, leveraging the, the ability for us to route, to intelligently route a request across our network. That, and FSx for NetApp ONTAP, nobody else has these capabilities today. And it's because we are at the forefront of talking to different customers and that dynamic evolution of storage, that's the core of our strategy. >> So Andy Jassy used to say, oftentimes, AWS is misunderstood and you, you comfortable with that. So help me square this circle 'cause you talked about things you couldn't do on on-prem, and yet you mentioned the relationship with NetApp. You think, look at things like Outposts and Local Zones. So you're actually moving the cloud out to the edge, including on-prem data centers. So, so how do you think about hybrid in that context? >> For us, Dave, it always comes back to what the customer's asking for. And we were talking to customers and they were talking about their edge and what they wanted to do with it. We said, how are we going to help? And so if I just take S3 for Outposts, as an example, or EBS and Outposts, you know, we have customers like Morningstar and Morningstar wants Outposts because they are using it as a step in their journey to being on the cloud. If you take a customer like First Abu Dhabi Bank, they're using Outposts because they need data residency for their compliance requirements. And then we have other customers that are using Outposts to help, like Dish, Dish Networks, as an example, to place the storage as close as account to the applications for low latency. All of those are customer driven requirements for their architecture. For us, Dave, we think in the fullness of time, every customer and all applications are going to be on the cloud, because it makes sense and those businesses need that speed of innovation. But when we build things like our announcement today of FSx for NetApp ONTAP, we build them because customers asked us to help them with their journey to the cloud, just like we built S3 and EBS for Outposts for the same reason. >> Well, when you say over time, you're, you believe that all workloads will be on the cloud, but the cloud is, it's like the universe. I mean, it's expanding. So what's not cloud in the future? When you say on the cloud, you mean wherever you meet customers with that cloud, that includes Outposts, just the programming, it's the programmability of that model, is that correct? That's it, >> That's right. that's what you're talking about? >> In fact, our S3 and EBS Outposts customers, the way that they look at how they use Outposts, it's either as part of developing applications where they'll eventually go the cloud or taking applications that are in the cloud today in AWS regions and running them locally. And so, as you say, this definition of the cloud, you know, it, it's going to evolve over time. But the one thing that we know for sure, is that AWS storage and AWS in general is going to be there one or two steps ahead of where customers are, and deliver on what they need. >> I want to talk about block storage for a moment, if I can, you know, you guys are making some moves in that space. We heard some announcements earlier today. Some of the hardest stuff to move, whether it's cultural or maybe it's just hardened tops, maybe it's, you know, governance edicts, or those really hardcore mission critical apps and workloads, whether it's SAP stuff, Oracle, Microsoft, et cetera. You're clearly seeing that as an opportunity for your customers and in storage in some respects was a blocker previously because of whatever, latency, et cetera, then there's still some, some considerations there. How do you see those workloads eventually moving to the cloud? >> Well, they can move now. With io2 Block Express, we have the performance that those high-end applications need and it's available today. We have customers using them and they're very excited about that technology. And, you know, again, it goes back to what I just said, Dave, we had customers saying, I would like to move my highest performing applications to the cloud and this is what I need from the, from the, the storage underneath them. And that's why we built io2 Block Express and that's how we'll continue to evolve io2 Block Express. It is the first SAN technology in the cloud, but it's built on those core principles that we talked about a few minutes ago, which is dynamically evolving and capabilities that we can add on the fly and customers just get the benefit of it without the cost of migration. >> I want to ask you about, about just the storage, how you think about storage in general, because typically it's been a bucket, you know, it's a container, but it seems, I always say the next 10 years aren't going to be like the last, it seems like, you're really in the data business and you're bringing in machine intelligence, you're bringing in other database technology, this rich set of other services to apply to the data. That's now, there's a lot of data in the cloud and so we can now, whether it's build data products, build data services. So how do you think about the business in that sense? It's no longer just a place to store stuff. It's actually a place to accelerate innovation and build and monetize for your customers. How do you think about that? >> Our customers use the word foundational. Every time they talk about storage, they say for us, it's foundational, and Dave, that's because every business is a data business. Every business is making decisions now on this changing landscape in a world where the new normal means you cannot predict what's going to happen in six months, in a year. And the way that they're making those smart decisions is through data. And so they're taking the data that they have in our storage services and they're using SageMaker to build models. They're, they're using all kinds of different applications like Lake Formation and Glue to build some of the services that you're talking about around authorization and data discovery, to sit on top of the data. And they're able to leverage the data in a way that they have never been able to do before, because they have to. That's what the business world demands today, and that's what we need in the new normal. We need the flexibility and the dynamic foundational storage that we provide in AWS. >> And you think about the great data companies, those were the, you know, trillions in the market cap, their data companies, they put data at their core, but that doesn't mean they shove all the data into a centralized location. It means they have the identity access capabilities, the governance capabilities to, to enable data to be used wherever it needs to be used and, and build that future. That, exciting times we're entering here, Mai-Lan. >> We're just set the start, Dave, we're just at the start. >> Really, what ending do you think we have? So, how do you think about Amazon? It was, it's not a baby anymore. It's not even an adolescent, right? You guys are obviously major player, early adulthood, day one, day zero? (chuckles) >> Dave, we don't age ourself. I think if I look at where we're going for AWS, we are just at the start. So many companies are moving to the cloud, but we're really just at the start. And what's really exciting for us who work on AWS storage, is that when we build these storage services and these data services, we are seeing customers do things that they never thought they could do before. And it's just the beginning. >> I think the potential is unlimited. You mentioned Dish before, I mean, I see what they're doing in the cloud for Telco. I mean, Telco Transformation, that's an industry, every industry, there's a transformation scenario, a disruption scenario. Healthcare has been so reluctant for years and that's happening so quickly, I mean, COVID's certainly accelerating that. Obviously financial services have been super tech savvy, but they're looking at the Fintech saying, okay, how do we play? I mean, there isn't manufacturing with EV. >> Mai-Lan: Government. >> Government, totally. >> It's everywhere, oil and gas. >> There isn't a single industry that's not a digital industry. >> That's right. >> And there's implications for everyone. And it's not just bits and atoms anymore, the old Negroponte, although Nicholas, I think was prescient because he's, he saw this coming, it really is fundamental. Data is fundamental to every business. >> And I think you want, for all of those in different industries, you want to pick the provider where innovation and invention is in our DNA. And that is true, not just for storage, but AWS, and that is driving a lot of the changes you have today, but really what's coming in the future. >> You're right. It's the common editorial factors. It's not just the, the storage of the data. It's the ability to apply other technologies that map into your business process, that map into your organizational skill sets that drive innovation in whatever industry you're in. It's great Mai-Lan, awesome to see you. Thanks so much for coming on theCUBE. >> Great seeing you Dave, take care. >> All right, you too. And keep it right there for more action. We're going to now toss it back to Jenna, Canal and Darko in the studio. Guys, over to you. (pensive music)

(digital music) >> My, what a difference 10 years makes in the tech industry. At the beginning of the last decade, the cloud generally in AWS specifically ushered in the era where leading developers they tapped into a powerful collection of remote services through programmable interfaces you know, out there in the cloud. By the end of the decade this experience would shape the way virtually every IT professional thinks about acquiring, deploying, consuming and managing technology. Today that remote cloud is becoming ubiquitous, expanding to the "edge" with connections to on-premises, data centers and other local points throughout the globe. One of the most talked about examples of this movement is AWS Outposts, which brings the Amazon experience to the edge wherever that may be. Welcome everyone to this CUBE conversation. My name is Dave Vellante. We're going to explore the ever expanding cloud and how two companies are delivering on customer needs to connect their data center operations to the cloud and the cloud to their on-prem infrastructure and applications. And with me are Joshua Burgin who's the General Manager of AWS Outposts and Michael Sotnick who's the VP at Global Alliances at Pure Storage. Gents, welcome come inside theCUBE. >> Right on. Well, thrilled to be here Dave. >> Great. >> Pleasure is mine, thank you. >> Awesome to have this conversation with you it's really our pleasure. So Joshua, let's start with Outpost. Maybe you could for the audience describe what it is maybe some of the use cases that you're seeing you're heard by narrative upfront maybe you can course correct anything I missed. >> Oh sure. I mean, I think you got it right on. AWS Outpost is a fully managed service that allows you to use AWS, API systems, tools, technology, hardware software innovation in your own data center or a colocation facility. And coming later this year as you put the edge in quotes at almost any edge site, as we announced the small form factor one you and two you Outposts at this last year's re-invent. >> I was excited when I saw Outpost a couple of years ago we were doing theCUBE at reinvent and I said, wow, this is truly going to be interesting. And I'm wondering like, how's Amazon, how are they going to partner? Where do some of the ecosystem get folks fit in? So Michael, you're an AWS Outpost ready partner. You know, what is that program all about? What does that mean for customers? >> Yeah, it's a great question. And you know, like you, Dave, I think we're as a vendor in technology we're inspired by what AWS has done. And when we look at Pure and see the opportunity we have you know, shared customer obsession, focused on outcomes, focused on NPS, great customer experience seeing AWS deliver the cloud to the edge, deliver the cloud to the data center that's just a great fit for us. So we rallied internally across our flash array of block storage solution a unified fast file and object flash plate solution and our container solution Portworx and, you know, across the entire portfolio we're the first to be in our segment the first to be service ready with AWS Outposts. And to us, it's an opportunity to link arms with AWS and cover some ground that's very familiar to us in the data center and clearly cover some ground that's very familiar to AWS in terms of great customer relationships across the board. >> Right, and, you know, I got to say, I've been a student of of Andy Jassy I always have listened to all his talks and go back and read the transcripts and Joshua I've learned that I never say never when it comes to AWS. And you see you guys moving into that, whatever you call it, the hybrid cloud, the on-premises really leaning in in a big way with Outposts and I wonder if you could talk about what's behind that expansion strategy? >> Sure, I mean, the way we looked at it obviously is always kind of working backwards from our customers. We have people tell us that they had some applications with low latency needs or where data resonancy or sovereignty was driven by regulations or in some cases where they needed to do local data processing something like an autonomous vehicle workload or in a factory or a healthcare facility. And they really wanted to say like, look, we're going to move all of our applications, you know the bulk of them to one of your regions in the fullness of time, but what's holding us back is that we want a consistent environment on-prem and in what you call the cloud. So we wanted a continuum of offerings from AWS to be able to serve all those needs. And that's really where Outpost came from. And, you know, we're seeing a lot of traction across financial services with companies like Morningstar and First Abu Dhabi bank, the iGaming space as you can imagine highly regulated industry, every city and, you know, municipality around the world wants to get in on that but they have their own regulations and they really require the infrastructure to be in a specific location and run a certain way. A company like TYPICA, which is based out of Europe they don't want to deliver different solutions depending on whether something's deployed in Minnesota or Germany or, you know, Vancouver. So that's where AWS Outpost comes in and it kind of fits that it works the same way as the things do in the region they can use the same tooling. >> Yeah, so Michael I'm going to ask you this question and maybe Joshua, you can chime in as well. I mean, you've got this, it's sort of a, win-win-win you know, Pure, AWS, you bringing that experience to on-premises, the customer gets that experience that Joshua just explained. I wonder if you could, I mean, you've been out now for a little bit testing the market learning here and there. What are the big takeaways in the learnings you're getting from customers? >> Yeah, I'll start and I'm sure Joshua can compliment quite a bit. And like Joshua hit on, right. You know, I think we take our cues from our customers, Dave, and you know what the customers are looking for, you know is a commercial relationship and so in addition to the technological inspiration we've got from AWS we offer the solution for Outposts and a Pure as a service model. So it's 100% subscription-based for the customer and they're able to consume it, you know the same way that they would all of their services from AWS including Outposts and it's also available on the AWS marketplace. So you've got to meet the customer where they want to be met first and foremost and so they appreciate that. And they see that as a great value in the relationship. You know, the growth of object, you know, I think is another one of those macro trends that's happening in our space. And as customers are deploying locations that are putting out petabytes of object storage requirements there's an increasing need for high-performance object. And that's where we can really compliment an Outpost implementation and deliver high performance and that kind of ubiquitous experience, that hybrid experience to allow the customer on a policy based way to maximize that on-prem performance with Outpost and Pure around that object data set. And then also manage the life cycle of that data and the economics of that data in the cloud. >> So, but Joshua, so you guys obviously you invented that, you know, the modern subscription model for infrastructure but it's different, you're actually installing hardware. So you had to sort of rethink how you did that. What have you learned and how has that model... How do you get it substantially similar as possible to the public cloud? >> Yeah, I mean, I think you called it a win-win-win earlier. And as much as we like to innovate we also like to make things feel kind of comfortable and familiar to people 'cause you think about there's both the developer who's using the APIs and the tools and also the CFO and the people in finance or procurement who are looking at the spending. So with Outposts, it actually feels very similar to the region. If you're used to purchasing our compute savings plans or what people used to call reserved instances or RIs the underlying infrastructure on the Outpost works in a very similar way. You're not going to be deploying a multi-rack Outpost and then ripping it out three weeks later so on demand doesn't really make sense there. But for all the services that are deployed on top of Outposts whether it's application load balancer or elastic cash or Elastic MapReduce, those have the same kind of on demand service model, the pricing model that they do in the region. And so very similarly, the Outpost ready program which lets you use trusted and certified third-party solutions, such as ones from Pure those are also going to feel familiar, whether you're coming from the on-prem world and you're already that technology for your storage, your network monitoring, your security or if you're using that solution from the marketplace in the AWS region, it's going to be a totally seamless deploy on the Outpost. So you're going to get something that's kind of the best of both worlds, familiar to you economically and from an installation perspective but also removing all that undifferentiated heavy lifting of having to patch and manage firmware upgrades and you asked this earlier, what customers really want is that there's this whole world of innovation, things that haven't even been invented yet. A few years ago, we hadn't invented Outposts. People want to know that as those innovations get released to the market they can take advantage of them without having to redeploy and so that's what having an AWS Outpost means. That as third parties or Amazon innovates new services can be made available without shipping a DVD or kind of spinning up an entire staff to manage that. >> Yeah, it's kind of interesting watching this equilibrium you know, take place. And I think it's going to continue to evolve. Obviously AWS has a huge impact on how people think about price, as I said upfront. And it seems like, you know, culturally, Michael, there's a fit. I mean, you guys have always sort of been into that you know, your evergreen model, for the first one that subscription sort of mindset. So it's sort of natural for you whereas, you know, maybe a a legacy company might not (chuckles) be able to lean in as hard as you guys are. Maybe some quick thoughts on that. >> Yeah, look, I love the way you framed that up and couldn't agree more. I think AWS is famous for a lot of things some of the values that they embrace and putting the customer at the center of everything they do couldn't be more shared, you know, with Pure. I think, you know, we talk about our company as one that runs two fires right, to give the customer a great experience. And so we know our way around the data center and I think the opportunity to give that customer, you know a consistent experience with AWS as they deliver Outpost to the data center is a really powerful combination. You know, I think one thing, just look at the backdrop of the pandemic, Dave, you know, every part of a company's organization is going through significant change. And I think the data center is absolutely at the center of some of those changes. And I think every one now as they look at the next generation data center they're asking themselves what are containers what does Kubernetes mean to my business? And I think the opportunity that, you know we see jointly with EKS as a partner is really to help customers achieve that goal of, you know the application deployments anywhere and the ability to drive that application, you know modernize that next generation application cycle. So I love the way you framed it up, giving us credit for being highly differentiated from our legacy competitors and we take great pride in that and really want to give a cloud-like experience to our customers. And I think what we're able to do with AWS Outpost is kind of bring that cloud-like experience that they have come to love from AWS into the data center and at the same time shine a light on what we've always done in terms of a cloud-like experience for the Pure customer. >> There's a lot of ways to skin a cat but when you've invented the cloud and you don't have a lot of legacy baggage you can kind of move faster. And I think that, you know, we're really excited about what's occurring here because take the term digital transformation I mean, before the pandemic (groaning) it's like, yeah okay, it had some meaning but you really had to squint through it and a lot of people were complacent about it. Well, we know what digital means now if you're not a digital business, you're out of business. And so it was kind of this forced march to digital I call it and as a result it really increases the need for things like automation and that cloud experience on-prem because I don't have time to be provisioning LUNs anymore. It's just what you guys call it undifferentiated heavy lifting that is really a no-no these days I just absolutely can't afford it. Let's close on what's next. I mean, we've got new form factors coming we're like super excited about when we see things like what Amazon is doing with custom Silicon we see these innovations coming out with processing power going through the roof. Everybody says Moore's law is dead but processing power is increasing faster than it ever has when you combine all these innovations of GPU's and NPUs and accelerators, it's just, it's amazing. And the costs are coming down so you're going to be able to take advantage of that. Outpost will take advantage of that, Pure will, New Designs but specifically as it relates to Outpost, you got one you, you got two you, you coming optimizing for the edge what do customers need to know about these solutions? Why should they consider this combination of Pure and AWS? Maybe Joshua you can start and Michael you can bring us home. >> Yeah, I mean, you hit a lot of the reasons that people should consider it, right. The pace of innovation is not going to slow down here at AWS or of course, with Pure. Whether you have the need for a single server, or you're somebody like dish rolling out a new cloud enabled, you know cloud native 5G network you want to work with somebody who can deploy all the way at the Telco edge right, with hardware innovation up to a local zone all the way up to a region. You don't want to be working with different providers for that and you don't know what you're going to need in three or five years and frankly, I'm not sure that we know everything yet either but we're going to continue to listen to our customers and as you mentioned, deliver things like graviton and inferential and trainium which are our innovations in custom Silicon. Those are delivering 40% price performance improvements for people who are migrating, that's really an enormous benefit. And we're bringing all of those to the Outpost as well so you don't have to choose between moving to the cloud and that being your only modernization option, you can move to the cloud and at the same time still operate on-prem, you know, at a colo facility or all the way at the edge using all of the same tooling. And you can work with best-in-breed third-party technologies like what's offered by Pure. >> Well, and Michael, I'm going to cut you off before you get a chance to close, but I'll let you close. The Portworx acquisition was really interesting to us because it brings that kind of portability, new programming model and something that Joshua said struck in my mind is when I think about the edge word to me what's going to win the edge you know, obviously the flexibility, the agility but the programmability and the customization. So many different use cases. We're not just going to take general purpose boxes and throw them over the fence and say, here you go. You know, the general purpose, that's not what's going to win the edge it's really going to take a lot more thought than that. But, so I just wanted to put that in there. Michael, bring us home, please. (laughing) >> Right on. Well, look you two, and no surprise here right, you two covered so much great ground there. From first principles you know, what does Pure look at? Like what we did being first in terms of service ready across Portworx, for EKS, for flash plate across unified fast file on object and flash ray, you know for block storage, being first with Outposts we want to be first for the one you and to you solutions. So I think customers can expect, you know that our partnership is going to continue to deliver that cloud-like experience, that cloud experience in the AWS context, that cloud-like experience in the Pure context, you know for their on-prem and hybrid workloads. And I think you hit it up so well like if you're not digital business, you're not in business. And so I think one thing that everyone learned over the last year is exactly that. The other thing they learned is they don't know what they don't know. And so they need to make bets on partners that are modern that are delivering simple solutions that solve complex problems that are automated and that are being delivered with the customer first mindset. And I think in the combination of AWS, Outposts and Pure, we're doing exactly that. >> Great point, so a lot of unknowns out there. Hey guys, congratulations on the progress you've made. It's a great partnership, two super innovative companies and really pleasure to have you in theCUBE. Thank you for coming on. >> Thanks for having us. >> Yeah, always a pleasure. Thank you so much. >> All right, thank you for watching everybody. This is Dave Vellante. We'll see you next time. (digital music)

>>live from Las Vegas. It's the Q covering AWS executive. Something >>brought to you by Accenture. >>Welcome back, everyone. We are kicking off day two of the cubes. Live coverage of the ex center Executive Summit here at AWS. Reinvent, I'm your host, Rebecca Knight. We have three guests for this panel. We have some bad meta. He is the chief information officer at Putnam based in Boston. Where? Boston People together. Thank you so much for coming on the show. Nitin Gupta. He's the partner and solutions lead. Financial service is at AWS Welcomed and Shale Jane back again for more. Who leads the data business group in North America. Thanks >>so much the last time. >>Yes. We can't get enough of each other. So thank you so much for coming on the show. We're talking about the data data journey and financial service is so I'm gonna start with you, Sam. It tell us. Tell our viewers a little bit about Putnam. That your assets under management. Your employees? >>Sure. So you know, problem is a global firm. We are a leader in mutual funds in the mutual fund business. We're in 84 year old organization. We based in Boston on, and we are known for innovation. We've done a lot of firsts in our industry on our focus has always bean looking after the needs of our shareholders. So even as we launch digital transformation, we launch it with the lens off, making sure we're covering the needs of our shareholders. >>So what was the impetus? What was the driving force to it? To embark on this cloud journey? >>Sure, So you look recovered. The financial markets recover industries. We look at our own industry as well. Things are changing rather rapidly, right, if I may just turn it around a little bit. Last year's letter from our CEO Bob Reynolds, said That problem now has Maur increasingly Maur four and five star funds, according to Morningstar, then we've had it as a percent of total funds ever. Before we had inflows, when the rest of the industry were having outflows, we built a digital platform and we said digital technology at problem is how we gonna view the internal technology department who will help enable our company to go and provide the investment insights directly to our advisors and to our shareholders so that they can benefit from the performance that we're we're delivering, right? We can only do that through a change. What's really going on in our industry is that there's more choice that's now available to shareholders than ever before. So while we talk about where there's outflows in in in our world, there's actually a lot of flow happening, right, So So it's for us to figure out how. How are the tastes changing right? What are people buying would do advisors need? When do they need them and can reposition ourselves to service them at scale, and so that those are the things that are driving our business? For us to continue to serve the shareholders needs. We really need to be in tune with where the market is. So we're helping do that at Putnam through technology, >>so shale in it. And I mean, what he's just described is thin. This enormously changing landscape and financial service is disrupted by a lot of new entrance. A lot of financial text in tak, a lot of different kinds of technologies. A lot of industries are experiencing this rapid pace of change. How do u ex ensure in AWS work with Putnam amidst this tremendous change, and how do you sit down with the client and sort of work out? Where do we go from here? >>So you know, I want to touch upon a couple of things that made you said And Rebecca You said, So no one is the cloud of their journey. It's It's not a destination that you're trying to get to, And then the other thing that you talked about, it's change. So we had in the cycle right now. But there's a lot of change happening at an industry we had in the cycle Where you nothing, that $38 trillion or something, which is a generator, you know, they're just getting transferred from one generation to the other. I'm not getting any off it. Unfortunately, you know >>all of >>this change that is happening in the industry. What is really required is you need something up in terms of technology, a platform that allows you to move quickly on adapt really quickly to this change. And I think that's where cloud comes in when we talk about all the new generation technologies like data machine learning, artificial intelligence, how >>do you >>leverage all of those. How do you fail quickly? How do you test experiment? Run thousands of not millions of experiments and see what will work in what will not work and do that in a very cost effective way and cloud of a very easy. It's an effective way to do it. And the weight of Louis is helping our customers. Obviously. You know, we we announced a bunch of service is yes, today way have the widest and the deepest tack that is dead in the industry today. You know the strength of our partners. Accenture. So you know, Accenture has Bean one of our longest standing partners altar and financial firm on, you know, working with them, working with our partners to enable our customers. But then we're also investing very heavily in building our industry capabilities. Are accounting solution architects? Professional service is security professionals helping our customers answer all the questions that they would need to answer as they go in this journey with us. So it's, you know, we are in this with them for for the long haul on dhe, you know, super excited about parking trip. >>So from our perspective, I think where we view the world as at a point where we're post digital, where digital was to put a front end that made your engagement with the customers much better. But now we're talking about intelligent enterprise, which is to really digitize the company from the inside out. So not only you need cloud for agility and all the other benefits that cloud offers, but you also need to look at data is the vehicle that would actually not only transform the culture of the company but also be able to integrate with your partners. For example, Cement talked about, you know, getting mind share from the advisers. But if you can exchange data, integrate data much better, faster with them and serve data to them in shapes and speeds that they need, they'll be more amenable to put you on their roster as well. So I think we're seeing a change that's mostly driven by the fintech industry disruption. That's that's happening as well. And it is no better time than now with the cloud and data to really help transform companies like >>the's tons of innovation, right, it's We heard Andy Jassy talk about the Let's roll Sweet the Sweets that are available to us. Our job is to learn what they are and how does it apply to our business because at the end of the game you said it's about our shareholders. It's about the value that we can bring. But we want to harness the power off all of the innovation, and we can't even though we've Bean an innovator, we're not going to innovate alone, all right, so it's really helpful to have to surround yourself with partners who have done this before, to be learning from others and bringing in the right tools at the right time, so so we can turn things around quickly, right? This is way are obviously very conservative and risk averse when it comes to managing other people's money. So we have to be very, very careful. Having said that, you know, we want to learn about all the guardrails we can put in place so we can go faster. >>I want to actually do something about what Shayla brought up, and that is the cultural change within the organization, because change is hard and so many people are resistant, particularly when things are going relatively well and they say Why mess that up with the new technology? So how is hard? Maybe >>is the understatement of the week very hard, and as you guys know, you know where it's not. It's not hard because people don't just want changes. They are experts in things that they've been doing for the last 15 years. 20 years. They've bean at our firm for a really long time. They really know how everything works from front to back. What happens, though? Now, when we get a changing need from the market and people want to buy things differently and we want to sell different products and maybe wanna introduce new products to the market, we can create bottlenecks that slow things down if we're not careful. So this is where we want to learn about the two pizza teams and how you can do things faster. How can we apply that to our world? Which means business partners working with technology, co located in small teams, being completely empowered to deliver solutions, right, working with our risk and compliance people, making sure that everyone's doing things that there were supposed to be doing right? How do we put that to work in the financial service is industry. So where we're learning as we go, we're learning to break down the sidles in the organization, and it's hot all the way around because we're experts in our areas. We know what we've done really well. But fortunately we have a leader in our CEO who's basically said that Let's transform problem so that we become leaders in the digital era for financial service is so with his support waken. Get the executive team align, and as the executive team aligns, then you find that people in the organization they want to work in this model, right but way don't know yet what we don't know, right? It's so we know how to do things from yesterday. Now we're learning and working together. So you guys have come in and this is where we've said, Bring in the people who have done this before and let's hold a session with 40 50 people that Putnam and let's just learn about what that transformation looked like at other places, so we don't make the same mistakes. >>Well, that's what Andy Jassy said in his fireside chat this morning. He was talking about how he had surgery recently in the question you need to ask your surgeon is how many times have you done this surgery? Because that is the critical thing. And so having a trusted partner is so important. So how how does it work that we're working together, collaborating on this relationship? How are you ensuring that Putnam doesn't make mistakes and does do the right tool for the right job shell? >>So, um, earlier this year, we actually launched an offering. A devious lighthouse with eight of us and what it is is a is a collection off. All of our assets are thought, leadership and architectures that we have garnered over the years, having worked with plants like Putnam and have them through the journey. So we put them all together and we bring Bring that Fourth Putnam is one of the first clients actually take advantage of it Abuse Data Lighthouse and, for example, we have a methodology that is specially customized for doing data on on eight of us. So things like that is what we bring to the table to help eliminate the risk that they may encounter. >>And data is critical to us, right? It's we manage a set of data assets, and that's the engine off the organization. So when we look at cloud migration way, look at what's our data strategy? How are rebuilding the so called you guys introduce the terminology for confirmed data sets? And then can we gallon eyes the rest of the organization around it, from investment professionals to operational professionals who used that data every day. Manager governent Make sure that it is what it's supposed to be. And to do that in a cloud environment where their user experience becomes a lot simpler, a lot easier almost takes I t a little away from the day to day. We don't have to be in the report writing business because we can make them more self service right that will create efficiencies in our organization. Our clients are asking us to do things at a lower cost than ever before and introduce more products and more tools and more service is right, so >>I would just tie with Samantha, just said with your question about culture. So if you can make it easy for people, for example, making things self service and data that's discovered through a catalog, so you have a place where you can go and find all the data sets it available. What is the quality? What is the veracity of data and then be able to take a piece of that and try some experiments with it? I think that would enable the cultural change much faster >>because they are able to basically do their jobs better. >>Yes, yes, >>it is. A is a more productive implement. Will highly >>engaged employees, right? We don't want to be in a situation where we find a lot of those disengagement moving employees and the mission for company. We want high engagement. We own people committed to what they're doing. We want to remove hurdles, and technology is they can produce great efficiencies, but it's not done right. It can also be a big hurdle. So we want to learn how to deliver the right tools, the right products to make it easier for way like to say, bring delightful experiences for our clients and our employees. >>Delightful. Another were another Jeff Bezos favorite word of his Obviously Putnam is, is a real innovator and really on the vanguard of this new technology. What are you seeing in the greater financial service is landscape. I mean, how how what are the what is the corporate mind set when it comes to this kind of change? >>So you know, when we look across our financial service is customer base across banking, capital markets, insurance pretty much every customer today. The question is not, you know if we should move to the cloud or when should we move to the cloud? But I think every every CEO and see io is asking the question, How do I move too loud? And what applications do I move over? How do I start on this journey of transformation? Whether it's a digital or it's reducing costs are improving my risk. Posher whatever that end goal is on dhe, you know, when we look at use cases across the industry, risk and data is with one of the easiest use cases to get started with, say, on Ben Field. They were looking at Solvent E to calculations for 25 million other policy holders, and they reduce that time from 10 days to 10 minutes. That is a, you know, really good use case off getting moving to the cloud. You know, if Indra is a great example. They're very public customer analyzing 38 building over market records in the stock market and looking in on alive in all of the data. On it up with data and risk is one of the core use cases that companies start with but then >>has to >>get more as they learn more about the cloud. As they get more get a deeper understanding, they start looking at other things, like Transforming Corp core applications. Today we have core creating applications, scored insurance application score, banking applications that are running running on the cloud. And then they start looking and innovation. You know, how do we look at artificial intelligence? How do we look at machine learning? How do we look at the new technologies to really transform our business and one of the great use case? And we thought so. You know, a lot off insurance companies Liberty Mutual using Lexx as part of their there was a conversational agent for their customers. But one of the interesting examples I have is it's ah, it's a reinsurer in Denmark, Italy insurer in Denmark, and what they're doing is they're using image recognition from from Amazon to look at on accident in the field and then analyzing that, using the using our recognition service to see what that that actual damages and what the cost is and feeding that information to the underwriter really compressing the time that it takes two from a clean filing to processing and payment to a matter of a few few few hours on getting that payment to the to the customer. So really creating a very positive customer experience. >>So it speaking of customer experiences, what have you know? You said you thought you were in service to your shareholders. What have been some of the results that you've seen? >>So you have to look across the organization, right? So our advisers served the need on the retail side, so we were like a bee to be business, right? So we have to be cognizant of what's going on in their world. They're sitting down with clients and talking through the choices, and they have certain needs what they need to fulfill their obligations. They need to explain why they're doing what they're doing. If Putnam knows where each of the advisers are at in their journey with their clients, we can be more helpful to them in explaining why our funds are behaving the way they are right, that information can be had at the right time at the right moment when they need it. Need it, And that brings advisers closer to our our teams are retail distribution teams are marketing teams are investment teams are investment professionals, are using data and analytics to get information to. We're using technology to get information to them faster, so companies are doing releases. There's a ton of information out there these days. We're using technology to dig deeper into the press releases as well as the SEC filings, looking at the footnotes, really trying to understand what they're trying to say, what they said before and what are analysts should be focused on. And we can take a 70 page document, condense it to seven pages and pinpoint what the technology tools say's are really insights. And the analysts will take the time and read the whole thing. But they'll also look at the insides and they'll add it into their process. So technology's additive to the investment process and really making a change help and then that's helping Dr performance. So at the end of the day, we're living good performance on our funds through data analytics technology, you know, give you another example. Some off the were were very strong in the in the mortgage analytics business and on the fixed income side. Our team's very well known. They've been together for many, many years now. They're starting to use data at scale, and we found that being able to go to the cloud to do these analytics right in hours instead of days has really made a material difference in the number of iterations we can run. So now the questions are, when we do risk management, can we do that a little differently and run more reiterations and get more accuracy? So we're seeing all of that benefit. That's direct user experience, that people are seeing people seeing how technology is helping them do a better job with their thesis. >>Excellent. Thank you so much for coming on. The Cube seem ed knitting and shale. A pleasure having you on. >>Thank you for being here. >>I'm Rebecca night. Stay tuned for more of the cubes. Live coverage of the Ex Center Executive Summit coming up in just a little bit