>>on >>the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. Okay. Welcome back, everyone. That's the cubes. Live coverage here in Palo Alto, California. I'm John for your host with David Lantana in Boston. Massachusetts. Uh, we got a great panel here. Analysts just gonna break it down. Keynote analysis. Day one, we got Ah, longtime Web services expert analyst Diane Hinchcliffe, principal researcher at N V. P. It constantly research, but he goes way back. Dan, I remember, uh, 2000 and one time frame you and I'm >>reading Last time you and I hang out with Michael Arrington's house back in the TechCrunch days >>back when, you know you were on this was Web services. I mean, that's always, uh, serves on the architectures. They called it back then. This was the beginning. This really was the catalyst of cloud. If you think about virtualization and Web services in that era, that really spawned where we are today so great to >>have you on as an Amazon got their start saying that everyone could get whatever they want to on a P. I now right, >>all right? Well, we've been riding this wave. Certainly it's cotton now more clear for the mainstream America. And I quoted you in my story, uh, on Andy Jassy when I had my one on one with them because I saw your talk with star Bit of the weekend and in the way you kicked it off was the Pandemic four was forced upon everybody, which is true, and that caught my attention was very notable because you talked to a lot of C E. O s. Does jazz sees pitch resonate with them? In your opinion, what's your take on on that on that posture? Because we heard, hey, you know, get busy building or you're dying, right? So get busy building. That's what >>I thought that was a good message. But I mean on and certainly I saw tweets and said, Hey, he's just he's just directly talking to the CEO. But if you ask me, he's still talking to the CTO, right? The technology officer who's got a feels all this technology and bend it into the shape that it will serve the business. You talk to a CEO who wants is trying to get on the cloud their biggest challenges. I know I need armies of people who know all these brand new services. You saw the development velocity of all the things that they announced and things they re emphasized there was There was a lot of things that were bringing back again because they have so many things that they're offering to the public. But the developer skills or not, they're the partner skills are not there. So you talked to CEO, says All right, I buy in and and I have had to transform overnight because of the pandemic, my customers have moved, my workers have moved on, and I have to like, you know, redirect all my I t Overnight and Cloud is the best way to do that. Where's my where's all the skills for the training programs, the department programs that allow me to get access to large amounts of talent? Those are the types of things that the CEO is concerned about is from an operational perspective. We didn't hear anything about, like a sales force type trailhead where we're going to democratize cloud skills to the very far end of your organization. >>Yeah, they're just kind of scratching the service. They didn't mention that, you know, far Gates away to get into server list. I mean, this is ultimately the challenge Dave and Deena like, don't get your thoughts on this because I was talking Teoh a big time CTO and a big time see so and that perspectives were interesting. And here's the Here's the Here's what I want you to react Thio the sea level Say everything is gonna be a service. Otherwise we're gonna be extinct. Okay, that's true. I buy that narrative, Okay, Make it as a service. That's why not use it. And then they go to the C t. And they say, implement, They go Well, it's not that easy. So automation becomes a big thing. And then so there's this debate. Automate, automate, automate. And then everything becomes a service. Is it the cart before the horse? So is automation. It's the cart before the horse, for everything is a service. What do you guys think about that? >>We'll see. I mean, CEO is to Diane's point, are highly risk averse and they like services. And those services generally are highly customized. And I think the tell in the bevy of announcements the buffet have announces that we heard today was in the marketplace what you guys thought of this or if you caught this. But there was a discussion about curated professional services that were tied to software, and there were classic PDM services. But they were very, you know, tight eso sort of off the shelf professional services, and that's kind of how Amazon plays it. And they were designed to be either self serve. It's a Diane's point. Skill sets aren't necessarily there or third parties, not directly from Amazon. So that's a gap that Amazon's got too close. I mean, you talk about all the time without post installations, you know, going on Prem. You know who's gonna support and service those things. You know, that's a that's a white space right now. I think >>e think we're still reading the tea leaves on the announcements. But there was one announcement that was, I thought really important. And that was this VM Ware cloud for a W s. It says, Let's take your VM ware skills, which you've honed and and cultivated and built a talent base inside your organization to run VMS and let's make that work for a W s. So I thought the VM Ware cloud for a W s announcement was key. It was a sleeper. It didn't spend a lot of time on it. But the CEO ears are gonna perk up and say, Wait, I can use native born skills. I already have to go out to the cloud So I didn't think that they did have 11 announcement I thought was compelling in that >>in the spending data shows of VM Ware Cloud on AWS is really gaining momentum by the way, As you see in that open shift So you see in that hybrid zone really picking up. And we heard that from AWS today. John, you and I talked about it at the open I produces in >>Yeah, I want to double down on that point you made because I want to get your thoughts on this a Z analyst because you know, the VM ware is also tell. Sign to what I'm seeing as operating and developing Dev ops as they be called back in the day. But you gotta operate, i t. And if Jassy wants to go after this next tier of spend on premise and edge. He's gotta win the global i t posture game. He's gotta win hybrid. He's got to get there faster to your point. You gotta operate. It's not just develop on it. So you have a development environment. You have operational environment. I think the VM Ware thing that's interesting, cause it's a nice clean hand in glove. VM Ware's got operators who operate I t. And they're using Amazon to develop, but they work together. There's no real conflict like everyone predicted. So is that the tell sign is the operational side. The challenge? The Dev, How does Amazon get that global I t formula down? Is it the VM Ware partnership? >>I think part of it is there, finally learning to say that the leverage that the vast pool of operational data they have on their literally watching millions of organizations run all the different services they should know a lot and I say made that point today, he said, Well, people ask us all the time. You must have all these insights about when things were going right or wrong. Can you just tell us? And so I think the announcement around the Dev ops guru was very significant, also saying you don't necessarily have to again teach all your staff every in and out about how to monitor every aspect of all these new services that are much more powerful for your business. But you don't yet know how to manage, especially at scale. So the Dev Ops guru is gonna basically give a dashboard that says, based on everything that we've known in the past, we could give you insights, operational insights you can act on right away. And so I think that is again a tool that could be put in place on the operational side. Right. So b m where for cloud gives you migration ability, uh, of existing skills and workloads. And then the Dev Ops crew, if it turns out to be everything they say it is, could be a really panacea for unlocking the maturity curve that these operators have to climb >>on. AWS is in the business now of solving a lot of the problems that it sort of helped create. So you look at, for instance, you look at the sage maker Data Wrangler trying to simplify data workloads. The data pipeline in the cloud is very very complex and so they could get paid for helping simplify that. So that's a wonderful, virtuous circle. We've seen it before. >>Yeah. I mean, you have a lot of real time contact lens you've got, um, quick site. I mean, they have to kind of match the features. And And I want to get your guys thoughts on on hybrid because I think, you know, I'm still stuck on this, Okay? They won the as path and their innovations Great. The custom chips I buy that machine learning all awesome. So from the classic cloud I as infrastructure and platform as a service business looking good. Now, if you're thinking global, I t I just don't just not connecting the dots there. See Outpost? What's riel today for Amazon? Can you guys share E? I mean, if you were watching this keynote your head explode because you've got so many announcements. What's actually going on if you're looking at this is the CEO. >>So the challenge you have is the CEO. Is that your you have 10, 20 or 30 or more years of legacy hardware, including mainframes, right. Like so big insurance companies don't use mainframe because their claims systems have been developed in their very risk averse about changing them. Do you have to make all of this work together? Like, you know, we see IBM and Redhead are actually, you know, chasing that mainframe. Which angle, which is gonna die out where Amazon, I think is smart is saying, Look, we understand that container is gonna be the model container orchestration is gonna be how I t goes forward. The CEO is now buy into that. Last year, I was still saying, Are we gonna be able to understand? Understand? Kubernetes is the regular average i t person, which are not, you know, Google or Facebook level engineers Are there gonna be able to do do containers? And so we see the open sourcing of of the AWS is, uh, kubernetes, uh, server on. We see plenty of container options. That's how organizations could build cloud native internally. And when they're ready to go outside because we're gonna move, they're gonna move many times slower than a cloud native company to go outside. Everything is ready there. Um, I like what I'm seeing without posts. I like what I'm seeing with the hybrid options. The VM ware for cloud. They're building a pathway that says you can do real cloud. And I think the big announcement that was that. That s a really, uh, spend time on which is that PCs for everywhere. Um, a saying you're gonna be able to put Amazon services are compute services anywhere. You need it, e think that's a smart message. And that allows people to say I could eventually get toe one model to get my arms around this over time >>day. What does that mean for the numbers? I know you do a lot of research on spend customer data. Um, CEO is clearly no. This is gonna be the world's never go back to the same way it was. They certainly will accelerate cloud toe. What level depends upon where they are in their truth, as Jassy says. But >>what does >>the numbers look at? Because you're looking at the data you got Microsoft, You got Amazon. What's the customer spend look like where they're gonna be spending? >>Well, so a couple things one is that when you strip out the the SAS portion of both Google and Azure, you know, as we know, I asked him pass A W S is the leader, but there's no question that Microsoft is catching up. Says that we were talking about earlier. Uh, it's the law of large numbers Just to give you a sense Amazon this year we'll add. Q four is not done yet, but they'll add 10 billion over last year. And Jesse sort of alluded to that. They do that in 12 months. You know, uh, azure will add close to nine billion this year of incremental revenue. Google much, much smaller. And so So that's, you know, just seeing, uh, as you really catch up there for sure, you know, closing that gap. But still Amazon's got the lead. The other thing I would say is die on you and I were talking about this Is that you know Google is starting. Thio do a little bit better. People love their analytics. They love the built in machine learning things like like big query. And you know, even though they're much, much smaller there, another hedge people don't necessarily want to goto Microsoft unless they're Microsoft Shop. Google gives them that alternative, and that's been a bit of a tailwind for Google. Although I would say again, looking at the numbers. If I look back at where Azure and AWS were at this point where Google is with a few billion dollars in cloud the growth rates, I'd like to see Google growing a little faster. Maybe there's a covert factor there. >>Diane. I want to get your thoughts on this transition. Microsoft Oracle competition Um, Jesse knows he's got a deal with the elite Salesforce's out there. Oracle, Microsoft. Microsoft used to be the innovator. They had the they had the phrase embracing extend back in the day. Now Amazon's embracing and extending, but they gotta go through Oracle and Microsoft if they wanna win the enterprise on premise business and everybody else. Um, eso welcome to the party like Amazon. You What's your take on them versus Microsoft? Calling them out on sequel server licensing practices almost thrown him under the bus big time. >>Well, I think that's you know, we saw the evidence today that they're actually taking aim at Microsoft now. So Babel Fish, which allows you to run Microsoft sequel server workloads directly on Aurora. Uh, that that is what I call the escape pod that gives organizations an easy way That isn't Will parliament to redesign and re architect their applications to say, Just come over to AWS, right? We'll give you a better deal. But I think you've got to see Amazon have, um, or comprehensive sales plan to go into the C. E. O s. Go after the big deals and say, You know, we want to say the whole cloud suite, we have a stack that's unbeatable. You see our velocities, you know, best in class. Arguably against Microsoft is the big challenger, but we'll beat you on on a total cost of ownership. You know, your final bill. At the end of the day, we could we commit to being less than our competitors. Things like that will get the attention. But, you know, uh, Amazon is not known for cutting customized deals. Actually, even frankly, I'm hearing from very CEO is a very large, like Fortune 20 companies. They have very little wiggle room with Microsoft's anybody who's willing to go to the big enterprise and create custom deals. So if you build a sales team that could do that, you have a real shot and saying getting into the CEO's office and saying, You know, we want to move all the I t over and I'm seeing Microsoft getting winds like that. I'm not yet seeing Amazon and they're just gonna have to build a specialized sales team that go up against those guys and migration tools like we saw with Babel fish that says, If you want to come, we can get you over here pretty quick. >>I want to chime in on Oracle to John. I do. I think this is a blind spot somewhat for AWS, Oracle and mainframes. Jesse talks that talks like, Oh yeah, these people, they wanna get off there. And there's no question there are a number of folks that are unhappy, certainly with Oracle's licensing practices. But I talked to a lot of Oracle customers that are running the shops on Oracle database, and it's really good technology. It is world class for mission critical transaction workloads. Transaction workloads tend to be much, much smaller data set sizes, and so and Oracle's got, you know, decades built up, and so their their customers air locked in and and they're actually reasonably happy with the service levels they're getting out of Oracle. So yes, licensing is one thing, but there's more to the story and again, CEO or risk averse. To Diane's point, you're not just gonna chuck away your claim system. It's just a lot of custom code. And it's just the business case isn't there to move? >>Well, I mean, I would argue that Well, first of all, I see where you're coming from. But I would also argue that one of the things that Jesse laid out today that I thought was kind of a nuanced point was during the vertical section. I think it was under the manufacturing. He really laid out the case that I saw for startups and or innovation formula, that horizontal integration around the data. But then being vertically focused with the modern app with same machine learning. So what he was saying, and I don't think he did a good job doing it was you could disrupt horizontally in any industry. That's a that's a disruption formula, but you still could have that scale. That's cloud horizontal scalability, cloud. But the data gives you the ability to do both. I think bringing data together across multiple silos is critical, but having that machine learning in the vertical is the way you could different so horizontally. Scalable vertical specialization for the modern app, I think is a killer formula. And I think >>I think that's a I think it's a really strong point, John, and you're seeing that you're seeing in industries like, for instance, Amazon getting into grocery. And that's a data play. But I do like Thio following your point. The Contact Center solutions. I like the solutions play there and some of the stuff they're doing at the edge with i o T. The equipment optimization, the predictive maintenance, those air specialized solutions. I really like the solutions Focus, which several years ago, Amazon really didn't talk solution. So that's a positive sign, >>Diane, what do you think? The context And I think that was just such low hanging fruit for Amazon. Why not do it? You got the cloud scale. You got the Alexa knowledge, you know, got machine learning >>zone, that natural language processing maturity to allow them to actually monitor that. You know that that contact lens real time allows them a lot of supervisors to intervene them conversations before they go completely south, right? So allowing people to get inside decision windows they couldn't before. I think that's a really important capability. And that's a challenge with analytics in general. Is that generates form or insights than people know how to deal with? And it solutions like contact lens Real time? This is Let's make these insights actionable before it's broken. Let's give you the data to go and fix it before it even finishes breaking. And this is the whole predictive model is very powerful. >>Alright, guys, we got four minutes left. I wanted Segway and finish up with what was said in the keynote. That was a tell sign that gives us some direction of where the dots will connect in the future. There's a lot of stuff that was talked about that was, you know, follow on. That was meat on the bone from previous announcements. Where did Jassy layout? What? I would call the directional shift. Did you see anything particular that you said? Okay, that is solid. I mean, the zones was one I could see. What clearly is an edge piece. Where did you guys see? Um, some really good directional signaling from Jassy in terms of where they really go. Deal with start >>e I felt like Jassy basically said, Hey, we invented cloud. Even use these words we invented cloud and we're gonna define what hybrid looks like We're gonna bring our cloud model to the edge. And the data center just happens to be another edge point. And hey, I thought he laid down the gauntlet. E think it's a very powerful message. >>What do you think Jesse has been saying? That he laid out here, That's >>you laid out a very clear path to the edge that the Amazons marching to the edge. That's the next big frontier in the cloud. It isn't well defined. And that just like they defined cloud in the early days that they don't get out there and be the definitive leader in that space. Then they're gonna be the follower. I think so. We saw announcement after announcement around that you know, from the zones Thio the different options for outpost um, the five g announcement wavelength. All of those things says we're gonna go out to the very tippy edge is what I heard right out to your mobile devices. Right after the most obscure field applications imaginable. We're gonna have an appliance So we're gonna have a service that lets you put Amazon everywhere. And so I think the overarching message was This is a W s everywhere it z gonna go after 100% of I t. Eventually on DSO you can move to that. You know, this one stop shop? Um and you know, we saw him or more discussions about multi cloud, but it was interesting how they stand away from that. And this is what I think One area that they're going to continue to avoid. So it was interesting, >>John, I think I think the edges one by developers. And that's good news for Amazon. And good news for Microsoft. >>We'll see the facilities is gonna be good for me. I think guys, the big take away You guys nailed two of them there, but I think the other one was I think he's trying to speak to this new generation in a very professorial way. Talk about Clay Christensen was a professor at his business school at Harvard. We all know the book. Um, but there was this There was this a posture of speaking to the younger generation like hey, the old guy, the old that was running the mainframe. Wherever the old guys there, you could take over and run this. So it's kind of like more of a leadership preach of preaching like, Hey, it's okay to be cool and innovative, right now is the time to get in cloud. And the people who are blocking you are either holding on to what they built or too afraid to shift. Eso I think a Z we've seen through waves of innovation. You always have those people you know who are gonna stop that innovation. So I was very interesting. You mentioned that would service to the next generation. Um, compute. So he had that kind of posture. Interesting point. Yeah, just very, very preachy. >>E think he's talking to a group of people who also went through the through 2020 and they might be very risk averse and not bold anymore. And so, you know, I think that may have helped address that as well. >>All right, gentlemen, great stuff. Final word in the nutshell. Kena, What do you think about it in general? Will take away. >>Yeah, I I think we saw the continued product development intensity that Amazon is going to use to try and thrash the competition? Uh, the big vision. Um, you know, the real focus on developers first? Um and I think I t and C e O's second, I think before you could say they didn't really think about them too much at all. But now it's a close second. You know, I really liked what I saw, and I think it's It's the right move. I'd like to Seymour on on hybrid cloud migration than that, even when we saw them. >>All right, leave it there. Don. Thanks for coming on from this guest analyst segment. Appreciate you jumping in Cuba. Live. Thank you. >>Thanks. Alright. >>With acute virtual. I'm your host John per day Volonte here covering A W s live covering the keynote in real time State more for more coverage after the break

(upbeat music) >> Live from the Mission Bay Conference Center in San Francisco, California, it's theCUBE at Google Cloud Platform Live. Here are your hosts, John Furrier and Jeff Frick. >> Okay welcome back everyone, we are live. This is theCUBE in San Francisco, California for Google Platform Conference Live, their developer conference for the cloud. I'm John Furrier, the founder of SiliconANGLE, Jeff Frick, my cohost, and we're excited to have CUBE alumni but also man about town coming to talk about containers, Kubernetes. We have Craig McLuckie, product manager at Google. Named the product Kubernetes. Welcome back. >> Thank you. It's great to be back on theCUBE. >> As I said, you're the man about town. Containers are the hottest thing going on. Really enabling a lot of new change. A lot of solidarity in the developer community around bringing cloud together, right? You're seeing people go, wow, containers are not a new concept. Docker has brought together the concept and made a huge push, just the ball got moved down the field big time. And then Kubernetes kind of tying it all together and you guys are open sourcing it. I wanted to first talk about, from your perspective, what's changed since VMware where we had a great conversation around Kubernetes? Obviously that was front and center in VMware's show, which is a huge IT enterprise vote of confidence. So now, here at Google, core developers. Large scale, backend network interconnect stuff going on. You almost connect the dots, right? Native developers really cranking out the apps? Large scale interconnect? There's a lot in the middle there between those bookends. What's changed? >> So a couple things I think have changed since I last spoke to theCUBE at VMworld. The first is we've seen an amazing amount of velocity around the Kubernetes community. Not just what Google's been doing but also what our open source community members have been contributing. And we're seeing a very fast acceleration of the overall platform. Moving quickly towards operation maturity, you know getting closer to production readiness and introducing a lot of features that are really need to both run real world applications and to go to new place, to go to a variety of new clouds. We're seeing the reality of a very highly portable and maturing way to build container based applications emerging. That's been very exciting. I think the other thing that's really interesting here is the way that we at Google have been introducing Kubernetes directly into the Google Cloud platform. Today we announced a new product called Google Container Engine which provides the quickest and easiest way to get a Kubernetes cluster up and running and managed for you on Google Cloud platform. And we're very excited about how easy it's making it for our customers to access this new way of building applications. >> Talk about this Container Engine because obviously App Engine's had huge success. Little bit of learning curve but you guys have some core front end developers that you're making that easier now but what is a Container Engine? Is it a Docker engine? Is it Docker compatible? Is it a whole new animal? What it is? What is it? >> That's great, I'm glad you asked that question. I would start by saying this, at Google we have Google Compute Engine which offers powerful, flexible, fast breeding VMs and at the other end of the spectrum we've had App Engine which offers a highly managed, very efficient way to get web applications up and running. And what we've encountered with our customers is that there is no natural way to move from one world to the other world. There's no connective tissue that exists in the middle that let's our customers think about building applications that are running on a cloud computer rather than just running on a virtual machine. And so what Google Container Engine is is a technology that let's our customers program at the cluster level. So Docker has provided this amazingly productive way to package up an application and deploy it into a node. Docker has done a great job of taking a lot of technologies that existed and making them incredibly accessible to developers. But the reality, in our experience, is that at least 80% of our customer's cost of maintaining applications comes out of the operation space so Kubernetes and Google Container Engine are an operationally viable way to build these distributed applications. It really moves our customers from thinking about deploying things into individual virtual machines to instead saying, hey, I'm just going to drop this into this cluster and it will all be wired together so I can take these little Lego building blocks I've got called containers, piece them together in ways that are intuitive and then have a very smart and effective system to run those for me on my behalf.. >> So basically a pool of VMs could be available to developer, if I get this right? So you're saying, I'm a developer, I don't have to worry about the dependencies by VMware, by VMware versus another form factor? I just let the container deal with that? Is that-- >> What we've done, yes, that's exactly right, we've created this strong separation between infrastructure operations and application operations. Docker has created a portable framework to take basically a binary and run it anywhere which is an amazing capability. But that's not enough. You also need to be able to manage that with a framework that can run anywhere so the union of Docker and Kubernetes provides this framework where you're completely abstracted from the underlying infrastructure. You could use VMware, you could use Red Hat Open Stack deployment, you could run on another major cloud provider like Rack Space or IBM and you could just build this application and deploy it there and experience this very powerful cluster first way of building and managing that app. >> Cluster first, I haven't heard that one. >> It's not a cluster you-know-what, it's a cluster first. (laughing) That trumps cloud first from Microsoft but let's go back to Kubernetes. You named the product, what does it mean? I mean it's kind of a, you don't look at a tech name, you say, it's not like alpha one, ya know? >> Kubernetes is the Greek word for the helmsman of a ship. I was looking to find a name and turns out, there's a lot of cluster management technologies and a lot of the obvious names were taken and so I had the inspiration of what is this doing? It's actually the thing that's overseeing the whole of your operation, and is planning what goes where and managing it. So Kubernetes is the helmsman of your cluster group, it's the thing that manages it. >> Did you design the algorithm to stay away from icebergs? (laughing) That's the key thing, you don't want to crash the system. But that's the challenge, you know, just joking aside, orchestration is really a hard thing. That's been a cloud phenomenon, automation. Everyone's been talking about, oh we have management software that automates and orchestrates cloud resources. But now in a cloud environment, it's more challenging now. Talk about what Kubernetes does different than older approaches to orchestration. >> I think is a very, very important consideration. When I look at the way that orchestration's been done traditionally, you tend to think about your application as being deeply tied to the underlying piece of infrastructure, so your orchestration process is provision me a basic machine, go get the packages I need, deploy my application pieces, wire it in explicitly to all the other pieces of my system and so you have to kind of build this relatively fragile system where all the piece are tied together and deeply coupled. What Kubernetes has done is provide a framework where you have a very principled, almost Lego building block that you can stick together and say, I want one of these things, I want it replicated six times, and I want it wired in to these other pieces without actually having to know about where those other pieces are deployed, how they relate to one another. It really is realizing this highly decoupled, very principled way of thinking about your environment as a cluster where you just drop your packages in and they're all wired together using virtualized networking and using this cluster centric paradigm and it radically, radically reduces the cost of operations. I could just give you an example of that. In the old days of Google, before we had these technologies inside the house, it was all we could do to keep the lights on. Like every day was an adventure, it was very hard, because our operations had our application pieces deeply tied into the physical infrastructure. When we introduced the system internally known as Borg, we changed the game. In less than a year-- >> Hold on, name is Borg? >> What was it called? >> Borg? >> Borg. >> Borg. >> Internally known as Borg. (laughing) >> Like connected to everything, like the Microsoft Borg, that's at Microsoft but Microsoft used to be called-- >> I was thinking more Arnold Schwarzenegger, but that's alright. >> Continue. I just wanted to make sure we heard that right. >> We literally doubled the number of production services we were running within a year. It's just so much easier to run things at scale. >> So provisioning, managing, it just makes a smoother operation? Smooth sailing if you will? >> It's really trying to hide provision, managing, right? You're basically, I have an app and I want to build it easily and then I want to deploy it easily and then I want it to be able to scale easily. >> Yes. >> Without having to go back and reconnect it to more stuff. It's funny because I think most people think that that's what clouds have already always done, right? There's basically compute, a networking and storage that's just in small units, virtually available to assemble however I want. But you say it, I used to have to still assemble it and disassemble it, now it's just-- >> Exactly. >> It's just plugging in. >> That's the challenge. The way we've seen cloud evolving has disappointed us a little bit because it really is just a re manifestation of the same existing first generation way of thinking about application development, application provisioning. If you challenge a lot of the fundamental assumptions, if you really step back and think about is there a better way to do this? If I have all this incredibly fungible resource that can turn up and turn down, is there a better way to build applications? Kubernetes is our invitation to the community to participate in defining that thing. We think it is a better way to build applications. We know it because we've been doing this for 10 years and it works really well for us. >> So talk about the open source angle because one, Kubernetes is open source, we've reported that live when we last chatted. Docker has huge success with their open source model. That's not well known in the main world, how the nuance and developers really are engaged and motivated to play with Docker which has it's own flywheel effect which is very viral in network effect. What's your strategy with Kubernetes? Is it standard open source blocking and tackling? Is there things you're doing to prime the pump? Is there a magical formula you guys are really nurturing and fostering? >> I am very happy with the way that the projects been run and it's been humbling to see the amount of adoption success we've had. I think that this manner of operating where we built Kubernetes as an open source project with the community, and then we take it and take exactly that and we turn it into a service and add a lot high value capabilities to it, is a pattern that's working very well for us. It's massively increased our velocity because it's not just us that are actually developing the project, we have amazing contributions from people like Red Hat. They're putting a lot of time and effort into making this thing great. Our friends at CoreOS are putting a lot of effort into it. We're able to do more because it's just more people working on it, so the velocity is far higher. The second thing is that we were able to go straight to an open offer. Normally we do these early adopter programs hidden behind the curtain, try to figure stuff out and do a lot of iteration. We didn't have to do that because the community has built the API with us, our customers have been working directly with us to shape the API. We know it's going to work for them. >> And that's helped you guys, so your differentiation doesn't really conflict with the community? >> Absolutely not. We recognized as we moved from a cloud that's worked mostly in the start up community and with internet facing companies to a cloud that's really engaging mainstream business. Our customers want multi cloud. It's critical to them. They want to be able to run in hybrid cloud. They want to have multi cloud provider relationships. They don't want to just rely on one provider and so our framework that works well everywhere but works especially well on Google, serves our business very well. >> Getting some great prompts on Crowd Chat so thanks for coming on theCUBE, always great to chat with you. You're in a hot area, we'd love to pick your brain but I want you to address three things I'm going to say to you, get your thoughts on. >> Okay. >> It can be your Google perspective, could be your own geeky perspective. Perimeter-less IT, multi cloud and mobile infrastructure. Three of the hottest areas on the planet right now in terms of people looking at investments, retooling, trying to figure things out, perimeter-less IT. Obviously perimeter IT, perimeter based security? >> Sure. >> Kind of goes away with the cloud right? >> Yeah. >> But you still need security, it's perimeter-less, so what does that mean? How do people understand and grasp that concept? >> I'm not sure I'm the right person to speak to perimeter less IT but I can say that-- >> Just in general. >> When I think about it, I think there's a couple of things that are happening here that are really interesting. When I look at the idea of perimeter-less IT, when I look at the idea of what I consider the democratization of IT, if you will, we've lived in a world where most businesses have been beholden to a specific organization that's controlled their provisioning, the policies and the set of bits they can use, everything's been controlled and IT hasn't been well loved by and large. We're moving into a world where it's a much more open ecosystem. Departments are far more empowered, anyone with a corporate credit card can go and get a machine and that's creating amazing agility and velocity for businesses. But it's introducing-- >> Creativity, too. >> A lot of creativity, but it's introducing a lot of pain as well. The hard thing is going to be creating a smart framework that allows empowered decentralization. Going from this world of highly controlled to decentralized empowerment, and I think that's where we're going to see a lot of interest from folks that are operating in the airplay space. >> Okay, multi cloud, just in general. Will people move to multiple clouds? Do you see that? UberClouds, we had Bitnami in earlier like, ah, people aren't really going to multiple clouds. They're not interested in moving workloads. Is that a state of the current situation or will it evolve to workloads anywhere? >> Multi cloud is the reality of our world. There's no serious customer I've spoken to in the last six months that has not been interested in a multi cloud relationship. Sorry, that's not true, there's no enterprise customer I've spoken to the last six months. >> That has not been interested? >> That has not been interested in multi cloud. >> And the reason is? >> In some ways. >> It's for what, resources? >> There's a couple of reasons. One is a lot of companies want to have just a multi provider relationship. They don't want to be beholden to a single cloud provider and frankly almost every customer I speak to has a massive investment in on premise infrastructure. They want to move away from a lot of the pain associated with managing that, but it's not going to happen overnight. Hybrid cloud is going to exist for quite a while. >> This is back to your empowered decentralization theme. >> And we have to provide them the tools to do that. We have to create positive pressure that moves them from those clouds to the public cloud. >> Final concept, and I've heard this a lot, kind of leads into the keynote, not necessarily the words but almost reeking of this concept of mobile infrastructure. I mean, mobile first, cluster first, kind of enables mobile first but mobile is obviously a form factor, whether it's an internet of things as a human or a device, doesn't matter it's still an endpoint the network. >> Yeah. >> It's a multitude of millions of devices so what is mobile infrastructure? Is it different? Is it the same? What's your take on it? >> It's an interesting question and the reality of our world is it's a mobile world. It's almost folly to do anything but think about mobile as the primary vehicle for customers, consumers and everyone else to interface with the internet, with the web. It certainly introduces an interesting set of challenges to application developers. I think one of the things that I am most sort of interested in cracking from a cloud provider's perspective is the world of multiple devices where you have a large set of devices in different form factors that are ultimately presenting a view of the same set of data, the same set of information and creating a set of experiences that work well in that multi device space. Moving away from a world where state is bound to a device to a world where state is based in your cloud and your device is simply providing a view or a way to interface with that data. We still have a way to go before that is fully materialized but I think that's going to be a big sort of anchor point of a lot of mobile development in the space. >> So Craig, where's the locus of competition move then? If the data center just becomes a resource that's on tap, basically, that I can just get? How do the cloud providers then differentiate? >> Basic infrastructure is relatively undifferentiated but when I look at the way that we run inside Google, we do some really, really scary smart things to make your application run for you. If you think about the way we run our infrastructure it's almost like the flight controller of a modern airplane. It's going from the old wire based control system where you move something to move a flap to a world where you have this controller that's taking in million of signals a second and making incredibly informed decisions that is optimizing the heck out of everything you do and making very fine grain corrections and I think that's going to be a huge avenue of differentiation. When you take an application, you package it and you give it to us and you trust us to run it for you and it's running at a slightly higher level, we have a much high extraction level, we can do incredibly smart things with things like machine learning technologies. We can watch how your application's running. We know how it ran last time so we can tell if something's going wrong because we have the ability to actually watch it. This is how we run internally. >> Right, right. >> It's not just about the infrastructure. It's going to be about smart systems that run your application for you. And that's going to be hard to-- >> It's really to abstract above the management of the application. It's actually the management of the application and the optimization of the application as opposed to the infrastructure? >> There's so much more value in moving from static, dumb infrastructure to actively managed, sort of precision managed container based capabilities. It's quite jarring. This was clear to me very soon after we shipped Google Compute Engine. I was able to see, we never looked inside VM so we were able to see what level of CP utilization our customer's were getting and we compared that to what we were able to run in our internal web loads and our customers are only getting like, there were several integer multiples less utilization than what they were paying for. So we knew that something could be done. We could actually move up the abstraction layer and just do a better job by actively managing and making smart decisions. And that would be very disruptive-- >> So let's play a game, we played a game with our last guest, we'll play the game of you and I are going to go into business together and be venture capitalist. >> Okay. >> Okay. >> Sounds like fun. >> What's our investment thesis? Knowing what we know, I mean, there's a lot of entrepreneurs out there really looking at the enterprise right now. The enterprise is hard, cloud is kind of like a proxy for the enterprise but it's not like your classic enterprise. I'm a tech entrepreneur, I'm a coder, I'm an architect, I'm an OS guy, systems guy, could be a creative filmmaker, whatever but I want to come in and get some white space. Is there white space out there that you see that is an opportunity for developers that could really come in and stake claim and build a really good business? It could be lifestyle business, it could be a home run. Where would we invest? >> Yeah, I think there's so much white space in this domain. We are in the very early days of getting these technologies to market. Obviously there's just bolstering the basic, sort of the fundamentals of the platform. Overlay networking, everyone's talking SDN. Obviously there's a lot of hype around that but being able to create an abstraction that allows high levels of plugability for different network fabrics as you move between clouds is interesting. Storage, and doing a better job of providing virtualized storage that is available to these containers is an area of opportunity. There's a lot of work to be done in the tuning environment, full on application lifecycle management, continuous integration, lots of opportunity in that space. And then frankly, as we start looking at taking these technologies to market and deploying them into real businesses that are running multi cloud, there's going to be a lot of the governance, risk management and compliance overlay capabilities that just don't exist. We have the ability to define policy and enforce it in a very effective way, whether it's security policy, data loss prevention policy-- >> But it has to be dynamic, right? >> And it has to by dynamically done and it has to be enforced at the node. >> That's software, that's hard software? >> And there's so much work to be done there. There's so many opportunities to either create niche, vertically oriented capabilities of service specific protocol or unique, highly valuable, cross coding capabilities. I'm very excited about the future in this space. >> Where would we get started if I was an entrepreneur? Like, hey Craig, I saw your interview, where do I get started? Writing an app engine code? I want to put the boat in the water and starting drifting into this area you just mentioned, how should I navigate in? How should I vector in? >> A lot of it depends on where you're going to be operating in the stack. I would suggest you go and learn Go. Go is rapidly, GoLang, if you want to talk about the sort of the development environment is rapidly emerging as the language for the new cloud. We're seeing a lot of work in the Go community. Docker is written in Go, Kubernetes is written in Go. So I'd start there. It's a great platform for systems development. So I'd start looking at some of the existing technologies, Docker, Kubernetes, start just assessing where the gaps are. I'd probably approach it from a systems development perspective if I was doing it but there's also going to be a lot of value higher up the chain where you can actually-- >> You can dance on top of the stack and around the stack? >> Absolutely. >> Alright so final question, are we going back to the old OS days? I know you were joking before we came on, conversational even in a way, that was pretty relevant. I mean, we're seeing concepts of systems programming of the 80's kind of, but in decentralized way. Comment on that because I think that's tying a lot of things together. >> I think that's an incredibly astute observation and I think we're moving away from a world, operating system today is a node local thing, right? So I have an operating system and it's providing an environment that abstracts me from the physical details of one piece of hardware, one machine, you know one set of resources. What we're starting to see now is the emergence of some of these distributed concepts where you're programming not to a specific singe piece of infrastructure, single piece of hardware but you're programming to a cluster and so I think it's very much like that. I think that's a very astute observation and we're going to see the buzz-- >> But no one vendor owns it. It's owned by the world. >> And nor should one. It needs to be a POSIX like ubiquitous framework that let's us get more out of these cluster centric applications. >> Very organic, I mean I love what's happening is a very organic development but yet there's some, kind of group dynamics going on around cluster and Docker's a great example. Came out of the woodwork to become a defacto standard. Probably the fastest defacto standard that I've ever seen-- >> It's been breathtaking how quickly that technology's taken hold. >> And that's just the crowd. >> Yeah. >> Just saying, hey if we don't like decide on something? We like these guys the best, they didn't piss anyone off or whatever, whatever the dynamic is. It could be double source, flywheel, but-- >> It's interesting, certainly from Google's perspective, we've noticed Docker a lot sooner than most the world did. We had technologies that we could have stood up as potentially competing capabilities but we chose not to, because the world is incredibly well served by a single standard for defining and packaging applications. Now we need to continue that and we need to build the standard for the POSIX like distributed systems standard, that people think about coding to when they're building these modern, next gen cloud V2 applications. >> Craig, I really appreciate you spending the time. Love the conversation, love kind of the long winding road we took there. We knocked out some Kubernetes. We talked about Docker containers. Talked about the future of the industry. Really appreciate it, you're awesome to have on theCUBE here, you're invited any time. CUBE alumni Craig McLuckie right on theCUBE. We'll be right back, here, live in San Francisco broadcasting exclusively from Google's developer conference here, the Cloud Platform Live Event from Google. We'll be right back after this short break. (light music)