>> Narrator: From around the globe, it's theCUBE with digital coverage of AWS Public Sector Online brought to you by Amazon Web Services. >> Hi and welcome back to theCUBE's coverage of AWS Summit Online. I'm Stu Miniman your host for this segment. Always love when we get to talk to the practitioners in this space and of course at AWS Public Sector, broad diversity of backgrounds and areas, everything from government to education and the like, so really happy they were able to bring us Joshua Spence, he is the Chief Technology Officer, from West Virginia in the Office of Technology. Josh, thank you so much for joining us. >> I appreciate the invitation to be here. >> All right so, technology for an entire state, quite a broad mandate, when you talk about that, maybe give our audience a little bit of your background and the role of your organization for West Virginia. >> Yeah, absolutely so in the public sector space, especially at state government, we're involved in a myriad of services for government to the citizens and from a central IT perspective, we're seeking to provide those enterprise services and support structures to keep those costs controlled and efficient and be able to enable these agencies to service the citizens of the state. >> Excellent, maybe just to talk about the role of the state versus more local, from a technology standpoint, how many applications do you manage? How many people do you have? Is everything that you do in the Cloud, or do you also have some data centers? just give us a little thumbnail sketch if you would, of what what's under that umbrella. >> Sure, absolutely I think you'll see at the state level we have... We typically administer a lot of the federal programs that come down through funding, ranging from health and human resources to environmental protection, to public safety you've got, just a broad spectrum of services that are being provided at the state level and so the central office, the Office of Technology, Services approximately 22,000 state employees and their ability to carry out those services to the citizens. And then of course you have like local government, like in State of West Virginia with 55 counties, and then you're following municipalities. The interesting thing though in public sector is from the citizen's perspective, government is government, whether it's local, state or federal. >> Yeah, that's such a good point and right now of course there's a strain on everything. With the global pandemic, services from the public sector are needed more than ever, maybe help us understand a little bit things like work from home and unemployment, I expect, may require a shift and some reaction from your office. So tell us what's been happening in your space the last few months. >> Yeah absolutely, well, the first part you get the work from home piece rate, West Virginia, although the last state to have a confirmed test positive of COVID-19, we were in a little bit of in a position of advantage as we were watching what was happening across the world, across the country and so we didn't hesitate to react in West Virginia and through great leadership here, we shut down the state quickly, we put protections in place to help, show up and prevent the spread of COVID. And to do that though with the government facilities, government services, we had to be able to enable a remote workforce and do so very quickly, at a scale that no one ever anticipated having to do. Coop plans for the most part rejected just picking up from the location you're working at to go work at another centralized location. No one really ever thought, "Well, we wouldn't be able to all congregate to work." So that created our first challenge that we had to respond to. The second challenge was then how do we adjust government services to interface with citizens from a remote perspective and in addition to that a surge of need. And when you look at unemployment all across the country, the demand became exponentially larger than what was ever experienced. The systems were not equipped to take on that type of load. And we had to leverage technology to very quickly adapt to the situation. >> Yeah, I'd love you to drill in a little bit on that technology piece. Obviously you think about certain services, if I had them, just in a data center and I needed it all of a sudden ramp up, do I run into capacity issues? Can I actually get to that environment? How do I scale that up fast? The promise of Cloud always has been well, I should be able to react immediately, I have in theory infinite scale. So what has been your experience, are there certain services that you say, "Oh boy, I'm so glad I have them in the Cloud." and has there been any struggles with being able to react to what you're dealing with. >> Well yeah the struggles have absolutely been there and it's been a combination of not just on-premise infrastructure, but then legacy infrastructure. And that's what we saw when we were dealing with the unemployment surge here in West Virginia, just from a citizen contact perspective, being able to answer the phone calls that were coming in, it was overwhelming and what we found is we unfortunately had a number of phone systems all supporting whether it's the central office or the regional office, they were all disparate, some of which were legacy. We therefore had no visibility on the metrics, we didn't even know how many calls were actually coming in a day. When you compound that the citizen's just trying to find answers, well, they're not going to just call the numbers you provide, they're going to call any numbers. So then they're now also calling other agencies seeking assistance just 'cause they're wanting help and that's understandable. So we needed to make a change, we need to make change very quickly. And that's when we looked to see if a solution in the Cloud might be a better option. And would it enable us to not only correct the situation, get visibility and scale, what could we do so extremely quick because the time to value was what was real important. >> Excellent, so my understanding that you were not using any cloud-based contact center before this hit. >> We were in only... There were some other agencies that had some hosted contact center capabilities, but on a small scale. This was the first large project around a Cloud Contact Center, and needed to run the project from Go Live or decision to go forward on a Friday at one o'clock and to roll over the first call center on the following Monday at 6:00 p.m. was a speed that we had never seen before. >> Oh boy yeah, I think back, I worked in telecom back in the 90s and you talk about a typical deployment you used to measure months and you're talking more like hours for getting something up and running and there's not only the technology, there's the people, the training, all these sorts of things there, so, yeah tell us, how did you come to such a fast decision and deployment? So you walk us through a little bit of that. >> Sure, so we went out to the market and asked several providers to give us their solution proposals and to do so very quickly 'cause we knew we had to move quickly and then when upon evaluation of the options before us, we made our selection and indicate that selection and started working with both the Cloud provider and the integrator, to build out a phased approach deployment of the technology. Phase one was, hey, let's get everybody calling the same 800 number as best as we can. And then where we can't get the 800 number be that focal point, let's forward all other phone numbers to the same call center. Because before we were able to bring the technology and our only solution was to put more people on the phones and we had physical limitations there. So we went after, the Amazon contact center or our integrator a Smartronix and we were able to do so very quickly and get that phase one change in place, which then allowed us to decide what was phase two and what was going to be phase three. >> Josh, you've got some background in cybersecurity, I guess in general, there's been a raised awareness and need for security with the pandemic going on, bad actors are still going in there. I've talked to some when they're rolling out their call centers, they need to worry about... Sounds like you've got everything in your municipality. So might not need to worry about, government per se but, I guess if you could touch on security right now for what's happening in general and anything specific about the contact center that you need to make sure that people working from home were following policy, procedure, not breaking any regulation and guidelines. >> Yeah, absolutely I think the most important piece of the puzzle when you're looking at security is understanding, so it's always a question of risk, right? If you're seeking first and foremost, to put in security with the understanding that now, hey we've put it in we don't have to think about it anymore. That's not the answer 'cause you're not going to stop all risk, right? You have to weigh it and understand which risks you need to address so that's really important piece. The second part that we've looked at in the current situation with the response to COVID is not only do we see threat actors trying to take advantage of the circumstances, right? Because more people are working from home, there are less computers on the hard network, right? They're now either VPN-ing in or they are just simply outside the network and there may be limited visibility that central agency or the central entity has on those devices. So what do you do? We got to extend that protection out to the account and to the devices itself and not worry so much about the boundary, right? 'cause the boundary now is a lot in all and since it purposes the accounts, but then I think an additional piece of the puzzle right now is to look at how important technology is to your organization, look at the role it's performing in enabling your ability to continue to function remotely (indistinct) the risk associated with those devices becoming compromised or unavailable. So, we see that the most important aspects of our security changes were to extend that protection as best we could to push out education to the users on the changing threats that might be coming their way. >> Yeah, it's fascinating to think if this pandemic had hit 10 years ago, you wouldn't have the capability of this. I'm thinking back to like, well, we could forward numbers to a certain place and do some cascading, but the Cloud Contact Center, absolutely wasn't available. Have you had a chance to think about now that you have this capability, what this means as we progress down the road, do you think you'll be keeping a hybrid model or stay fully Cloud once people are moving back to the offices? >> Well, I definitely think that the near future is a hybrid model and we'll see where it goes from there. There's workloads without a doubt that are better served, putting them in the Cloud, giving you that on demand scalability. I mean, if we look at what a project like this would have required, had we had to procure equipment, install equipment, there was just no time to do that. So having the services, the capability, whether it's microservices or VMS or whatever, all available, just don't need be turned on and configure to be used, it's just there's a lot of power there. And as government seeks to develop digital government, right? How do we transition from providing services where citizens stand in line to doing it online? I think Cloud's going to continue to play a key piece in that. >> Yeah I'm wondering if you could speak a little bit to the financial impact of this. So typically you think about, I roll out a project, it's budgeted, we write it off over a certain number of years, Cloud of course by its nature is there's flexibility and I'm paying for what I'm using, but this was something that was unexpected. So how were you... Did you have oversight on this? Was there additional funding put out? How was that financial discussion happening? >> Yeah, so that's a big piece of the puzzle when a government entity like a state is under a state of emergency, the good thing is there's processes and procedures that we leverage regularly to understand how we're going to fund those response activities. And then the Federal Government plays a role also in responding to states of emergency that enable the state and local government to have additional funding to cover during the state of emergency. So that makes things a little easier to start in a sense, I think the bigger challenge is going to be what comes from the following years after COVID, because obviously tax revenues are going to take a hit across the board. And what does that mean to government budgets that then in turn are going to have to be adjusted? So the advantage of Cloud services and other type technology services where they're sold under that OPEX model, do give states flexibility in ways to scale services, scale solutions as needed and give us a little bit more flexibility in adjusting for budget challenges. >> Yeah, it's been fascinating to watch, we know how the speed of adoption in technology, tends to run at a certain pace. The last three months, there are definitely certain technologies that there's been massive acceleration like you've discussed. So, I'm wondering that you've had the modernization, things like the unemployment claims was the immediate requirement that you needed, but have there been other pieces, other use cases and applications that this modernization, leverage of cloud technologies is impacting you today or other things that you see a little bit down the path. >> Yeah, I think it's... We're going to see a modernization of government applications designed to interface directly with the citizen, right? So we're going to want to be able to give the citizen opportunity, whether it's on a smartphone, a tablet, or a computer to interface with government, whether it's communications to inquire about a service, or to get support around a service or to file paperwork around a service. We want to enable that digital interface and so that's going to be a big push, and it's going to be amplified. There was already a look towards that, right? With the smart cities, smart states and some of the initiatives there, but what's happened with COVID basically it's forced the issue of not being able to be physically together, well, how do you do it using technology? So if there was a silver lining in an awful situation that we have with COVID, one might be that, we've been able to stretch our use of technology to better serve the citizens. >> Well, great, really really impressive story. Josh, I want to give you the final word. Just what advice would you give your peers kind of dealing with things in a crisis, and any other advice you'd have in general about managing and leveraging the Cloud? >> I think in a closing comment, I think one of the most important aspects that can be considered is having that translation capability of talking to the business element, the government service component and understand what they're trying to achieve, what their purpose or their mission is and then being able to tie it back to the technology in a way to where all parties, all stakeholders understand their roles and responsibilities, to make that happen. Unfortunately I think what happens too often is on the business side or the non-technical side of the equation, they see the end state, but they don't truly understand their responsibilities to get to the end state. And it's definitely a partnership and the better that partnership's understood at the start, the more successful the project's going to have to get there under budget and on time. >> Well, thank you so much for joining us, best of luck with the project and please stay safe. >> Thank you for having me. >> All right, stay tuned for more coverage from AWS Public Sector Online. I'm Stu Miniman and thank you for watching theCUBE. (soft music)

>>from the cube studios in Palo alto >>in boston >>connecting with thought leaders all around the >>world. This >>is a cute conversation. Hello and welcome to today's session of the AWS Global Public sector Partner Awards. I'm your host Natalie ehrlich. Today we're going to focus on the following award for best partner transformation. I'm pleased to introduce our guests, josh door smith, vice president of public sector at Effectual and jeremy Yates, deputy technology architect at jenny May. Welcome gentlemen so glad to have you on our show. >>Hi there. Very nice to be here. Thank you so much for having me >>terrific. Well josh, I'd like to start with you. How can companies leverage cloud native solutions to deliver higher quality services? >>So Natalie, that's a great question. And in the public sector and our our government customers, we run into this all the time. It's kind of our bread and butter. What what they can do is the first thing they need to be aware of is you don't have to be afraid of the cloud as some very obscure technology that is just emerging. It's been out for 10, 11 years now, customers across government space are using it lock stock and barrel to do everything from just managing simple applications, simple websites all the way through hosting their entire infrastructure, both in production and for disaster recovery purposes as well. So the first thing to note is just don't be afraid of the cloud. Um secondly, it's, it's imperative that they select the right partner who is able to kind of be there Sherpa to go into however far they want to dip their toe into the, into the proverbial cloud waters. Um to select somebody who knows whatever it is that they need to go do. So if they want to go Aws as we are talking about today, pick a partner who has the right experience, past performance designations and competencies with the cloud that they're interested in. >>Terrific. Well, you know, Jeremy, I'd love to move to you. What does modern modernization mean to jenny May? >>Sure, Thanks Natalie, great to be here. Thanks josh as well, you know. So for jenny May, modernization is really, it's not just technology is holistic across the organization. So that includes things like the business, um not just you know, the the I. T. Division. So we're looking at the various things to modernize like our culture and structural changes within the organization. Um moving to implement some, some proven practices like def sec ops and continuous integration and continuous delivery or deployment. Uh and then, you know, our overall overarching goal is to give the best and most secure technology to the business that we can to meet the Jeannie Mai mission and the needs of our customers >>terrific. Well josh, how is Effectual planning to support jenny Maes modernization plans? >>So we have been supporting jenny May for about 14 months now. Uh and back in september of last year, we rewarded a co prime 10 year contract for Jeannie Mai to do exactly that. It's to provide all things cloud to Jeannie Mai for 10 years on AWS and that's including reselling AWS. That's including providing all sorts of professional services to them. And it's, it's providing some third party software applications to help them support their applications themselves. So what Effectual is doing is kind of a threefold. We are supporting the modernization of their process, which jeremy mentioned a moment ago and that includes in stan shih ating a cloud center of Excellence for jenny May, which enables them to modernize the way they do cloud governance while they're modernizing their technology stack. We're also providing a very expert team of cloud architects and Dempsey cops engineers to be able to, to design the Jeannie Mai environment, collaborating with our co prime uh to ensure that it meets the security requirements, the compliance requirements that jerry mentions. Uh, Jeannie Mai is a federal entity, but it also has to adhere to all the finance industry uh compliance requirements as well. So very strenuous from that perspective. And then the third thing that we're doing to help them kind of along their modernization journey is in stan shih aging infrastructure as code. So in the cloud, rather than building everything in the AWS management console, we script everything to build it automatically, so it improves consistency, it improves the customer experience regardless of which resource is working on it. And it improves disaster recovery capability as well. And also, just quite frankly, the speed by which they can actually deploy things. >>And jeremy, how is this transition helping your security really enhancing it now? >>Uh From a security perspective we're implementing a number of various tools um both, you know, a W. S based as well as other software that josh mentioned. Um So we're able to utilize those in a more scalable manner than we could previously in the traditional data center. Um we've got a number of things such as we're looking at multiple vulnerability management products like 10 of Ohio and Wallace. Um we're using uh tools such as Centra fi for our our pam or privileged access management capabilities. Um Splunk a pretty industry standard. Um software for log and data correlation and analysis um will also be using that for some system and application monitoring. Um as well as uh the Mcafee envision product for endpoint and other cloud service security. So being able to pull all those in in a more scalable and more cost efficient way as well from cloud based services. Uh, it's really helped us be able to get those services and integrate them together in a way that, you know, we may not previously been able to. >>Yeah, terrific. Well, josh, let's move back to you and talk further about compliance. You know, any insight here, how Effectual is building a modern cloud infrastructure to integrate AWS services with third party tools to really achieve compliance with the government requirements. Just any further insight on that >>front? That's a great question. Natalie and I'm gonna tag team with Jeremy on this one if you don't mind, but I'll start off so jenny may obviously I mentioned earlier has federal requirements and financial requirements so focused right now on on those federal aspects. Um, so the tools that Jeremy mentioned a moment ago, we are integrating all of them with a W. S native meaning all of the way we do log aggregation in the various tools within AWS cloudwatch cloud trail. All of those things were implementing an AWS native, integrating them with Splunk to aggregate all of that information. But then one of the key requirements that's coming up with the federal government in the very near future is tick three dot or trusted internet connection. Basically in the first iteration a decade or so ago, the government wanted to limit the amount of points of presence that they have with the public facing internet fast forward several versions to today and they're pushing that that onus back on the various entities like jenny May and like hud, which Jeannie Mai is a part of but they still want to have that kind of central log repository to where all of the, all of the security logs and vulnerability logs and things like that. Get shipped to a central repository and that will be part of DHS. So what effectual has done in partnership with jenny May is create a, a W. S native solution leveraging some of those third party tools that we mentioned earlier to get all of those logs aggregated in a central repository for Ginny MaE to inspect ingest and take action from. But then also provide the mechanism to send that to DHS to do that and correlate that information with everything coming in from feeds across the government. Now that's not required just yet. But we're future proofing jenny Maes infrastructure in order to be able to facilitate adherence to those requirements when it becomes uh required. Um, and so jeremy, I'll pass it over to you to talk a little bit further about that because I know that's one of the things that's near and dear to your sister's heart as well as jenny may overall. >>Yeah, absolutely. Thanks josh. Um, so yeah, we, as you mentioned, we have implemented um, uh, sort of a hybrid tech model right now, um, to to handle compliance on that front. Um, so we're still using a, you know, some services from the legacy or our existing T two dot x models. That that josh was mentioning things such as m tips, um, uh, the Einstein sensors, etcetera. But we're also implementing that take 30 architecture on our own. As josh mentioned that that will allow us to sort of future proof and and seamlessly really transitioned to once we make that decision or guidance comes out or, you know, mandates or such. Um, so that effort is good to future proof house from a compliance perspective. Um, also, you know, the tools that I mentioned, uh, josh reiterated, those are extremely important to our our security and compliance right. Being able to ensure, you know, the integrity and the confidentiality of of our systems and our data is extremely important. Not both, not just both on the r not only on the government side, but as josh mentioned, the finance side as well. >>Terrific. Well, I'd love to get your insight to on AWS workspaces. Um, if either one of you would like to jump in on this question, how did they empower the jenny May team to work remotely through this pandemic? >>That's a great question. I guess I'll start and then we'll throw it to jeremy. Um, so obviously uh effectual started working with jenny May about three weeks after the pandemic formally started. So perfect timing for any new technology initiative. But anyway, we, we started talking with Jeremy and with his leadership team about what is required to actually facilitate and enable our team as well as the government resources and the other contractors working for jenny May to be able to leverage the new cloud environment that we were building and the very obvious solution was to implement a virtual desktop infrastructure uh type solution. And obviously Jeannie Mai had gone all in on amazon web services, so it became the national natural fit to look first at AWS workspaces. Um, so we have implemented that solution. There are now hundreds of jenny May and jenny make contractor resources that have a WS workspaces functioning in the GovCloud regions today and that's a very novel approach to how to facilitate and enable not only our team who is actually configuring the infrastructure, but all the application developers, the security folks and the leadership on the jenny may side to be able to access, review, inspect, check log etcetera, through this remote capability. It's interesting to note that Jeannie Mai has been entirely remote since the pandemic initiated. Jeremy's coming to us from, from west Virginia today, I'm coming to us from national harbor Maryland And we are operating totally remotely with a team of 60 folks about supporting this specific initiative for the cloud, not to mention the hundreds that are supporting the applications that Jamie runs to do its day to day business. So jeremy, if you wouldn't mind talking about that day to day business that jenny may has and, and kind of what the, the mission statement of Jeannie Mai is and how us enabling these workspaces uh facilitates that mission >>or you know, so the part of the overall mission of jenny Maes to, to ensure affordable housing is, is made available to uh, the american public. Um that's hud and, and jenny may as part of that and we provide um mortgage backed securities to help enable that. Um, so we back a lot of V A. Loans, um, F H A, those sort of loans, um, workspaces has been great in that manner from a technology perspective, I think because as you mentioned, josh, it's really eliminated the need for on premise infrastructure, right? We can be geographically dispersed, We can be mobile, um, whether we're from the east coast or west coast, we can access our environment securely. Uh, and then we can, you know, administer and operate and maintain the technology that the business needs to, to fulfill the mission. Um, and because we're able to do that quickly and securely and effectively, that's really helpful for the business >>Terrific. And um, you know, I'd like to shift gears a bit and uh you know, discuss what you're looking ahead toward. What is your vision for 2021? How do you see this partnership evolving? >>Yeah, you >>Take that 1/1. >>Sure. Yeah. Um you know, definitely some of the things we look forward to in 2021 as we evolve here is we're going to continue our cloud journey um you know, through practices like Deb said cops, you realize that uh that journey has never done. It's always a continual improvement process. It's a loop to continually work towards um a few specific things or at least one specific thing that we're looking forward to in the future, as josh mentioned earlier was our arctic three Oh Initiative. Um, so with that we think will be future proofed. Um as there's been a lot of um a lot of recent cyber security activity and things like that, that's going to create um opportunities I think for the government and Jeannie Mai is really looking forward to to leading in that area. >>Mhm and josh, can you weigh in quickly on that? >>Absolutely. Uh First and foremost we're very much looking forward to receiving authority to operate with our production environment. We have been preparing for that for this last year plus. Uh but later on this summer we will achieve that 80 oh status. And we look forward to starting to migrate the applications into production for jenny May. And then for future proof, it's as jerry jerry mentioned, it's a journey and we're looking forward to cloud optimizing all of their applications to ensure that they're spending the right money in the right places uh and and ensuring that they're not spending over on any of the one given area. So we're very excited to optimize and then see what the technology that we're being able to provide to them will bring to them from an idea and a conceptual future for jenny may. >>Well thank you both so very much for your insights. It's been a really fantastic interview. Our guests josh duggar smith as well as jeremy Gates. Really appreciate it. >>Thank you very much. >>Thank you so much. >>Terrific. Well, I'm your host for the cube Natalie or like to stay tuned for more coverage. Thanks so much for watching.

>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel and AWS. Yeah, okay. Welcome back to the cubes. Live coverage here. Reinvent 2020 for a W s amazing content happening here within across the industry on digital transformation and more, more important than ever in the public sector has been mawr impacted by anyone during the cove and pandemic. And we're here remotely with the Cube Virtual because of the pandemic. Got a great guest, Kim, a jurist. She's the leader on the U. S. Education, state and local government for a W s public sector Kim, great to see you. Thanks for coming on. Remotely, at least we get to have a remote interview. >>Well, thank you for taking the time. This is This is our world these days, so it's good to be able to connect. >>Well, thanks for coming on. We're doing some specialty programming around public sector, mainly because it's such an important area. Uh, Andy Jassy Esquina, which is for the best conference at large at reinvent talks broadly, but I think it highlights what's going on in your world and that is this facing the truth. Um, this digital transformation has been forced upon us. It's accelerated and it's get busy, busy building or get busy figuring out how it might unwind and mawr education virtual remote if we >>didn't >>have video conference, and this could have been a disaster even further, but certainly has impacted everybody in the government education. How is it impacting share with us? What's going on? >>You know, I think that difficult partisans. When we turned on the news early days there in Cove it it was clear that students weren't learning and citizens couldn't get in contact with their government to ask for support. Um, I would say it was that moment in time where the technical debt that whether your state, local or education, you had to quickly realized that you need to connect with your students and your citizens. But I take a look at how quickly they were able to turn across the US Many of them realized what usually took years, literally turned into innovating overnight to support students as well as those filing for on unemployment claims. And I think that's what we heard a lot of, and those were some of the opportunities that Amazon really took, uh, to our customers said, Hey, we can help you solve these problems with great services such as connect >>you know, Connect came up in the keynote multiple times, and he really spend time on that as a as a disruption slash enabler for value. Can you share how cloud has scaled up some of your customers? I know connects, been pretty prominent in the public sector for Covic support and really has changed in saves lives in many cases. Can you share an example of how it's worked out? >>Absolutely. I mean, Rhode Island is is a great example. They use Amazon connect. They helped the state literally address this massive surgeon of unemployment insurance applications due to Cova 19. But literally the call times and the vines were cut down in What they were able to do is answer the call, not just have it be on a fast busy or a disconnect. Whether it was Department of Labor at Rhode Island, whether it was the state of Kentucky or the state of West Virginia, all those authorities use had to deal with that surge, and they were able to do it successfully and literally, in some cases, overnight to support citizens. That's how quickly they were able to innovate and hit those call centers, Um, effectively. But it's not just about the call center, because keep in mind they would go into those call centers with connect. They were able to actually take those calls from home, and we saw that in education as well. Take a look at L. A unified school district. What they had to do to quickly transition from in person training to supporting these students remotely. They had to do it overnight, and they use connect their asses well, not only to support the students, the teachers or the staff, but they took that opportunity to really continue educating and continue serving. >>You know, one of the things I was talking anti about in my one on one interview before reinvent was necessity is the mother of all invention in these days, and I think that came from a quote from one of your customers, like interviewed when asked, You know how the innovation strategy come about, and that's what they said. They said we needed it really bad, and we had to move quickly and then Andy said in his keynote that everything is on full display right now, meaning that the pandemic is forced one and you can see who's winning and who's not based on where they are in the cloud journey. So have to ask you leaderships a big part of this. What is the trend that you're seeing within your world because, you know, government not known for moving fast. And this is a speed game at this point. Healthcare. A big part of that. You got education. Government. What's >>the >>leadership mindset on innovating right now? And can you share because, yeah, you got some easy, you know, examples. Now the point is, hey, way have connect with people were like productivity opportunity that's now the new normal. So even in life does come back. There's new new things that have been discovered. Is that resonating with your your customers? And can you share the leadership mindset? >>Absolutely. So make no mistake. It was never a question of if it was a question of when the pandemic clearly is accelerating it. But, you know, we've been working with over 6500 government agencies and collaborating with them to really focus on some of their mission critical, um called based services. So and this is the new normal. They recognize it. And it's the foundation that during the pandemic that it's been said to say, Hey, we're going to push and we're gonna push quicker because they were actually able to demonstrate that they could do it. I'll give you an example. It's It's a heartbreaking one from my perspective. Being a mom, um, l. A. County Department of Child and Family Services, They operated their analog child protection hotline. Now the numbers are are unfortunate and staggering. But when you took a look at the peak before the pandemic, the call center received as many as 21,000 reports of child abuse and neglect in a month. During those pick times, up to 100 staff members would log in and literally take 120 back to back calls per hour. Now, when you think about that legacy environment with Amazon connect, they were able to continue the service, continue the support to help these Children and available 24 7, and they were able to do it from their homes. So e mean it gives me chills, just thinking about three unfortunate situations. But they were able to quickly move and and continue to support. Yeah, >>and the thing to I want to just bring up also had a customer I interviewed from Canada. I think they were partner with a censure. They had unemployment checks, they couldn't get out, and entitlement things that were literally checks and connect stood up that in like, record time. He was convinced. He's like he was kind of Amazon fan, but he was kind of still out of Amazon. He was like, I'm convinced we're gonna use Amazon going forward. It was a tipping point for him. There's a lot of these tipping points going on right now. This has been a big theme of this reinvent so far. Yeah, cloud transition, two full cloud value. This is the new normal What? What what what can clients get when they have budget or trying to get budget when they say the benefit? The clouds are what? >>Well, I mean again, use another use case. I'll go back to another example in L. A county. So when you think about l. A county itself, um, I won't give you the exact numbers because I don't know him off the top, but approximately 10 million residents and employs over 100,000 staff again. Look at the cost savings that they saw. So, you know, technical data is a problem. Being able to invest is a challenge because of budgets, but they were able to save 60% in one year from there on prem environment and licensing costs. But the cost is one piece. If you could take 17% fewer calls and you're solving those challenges by using a i N M l. Through the technology of what they were gathering through those calls, it made a huge impact and improved their service to their citizens. So you know it. The cost savings air there. And there are so many examples that states air, recognizing that they need to move quicker because they could take advantage of those costs, especially with some of the budget challenges we're going to see across the U. S. >>And the machine learning examples are off the charts. So, Kim, I gotta ask, you going forward now in reinvent what's the big focus for you and your teams and your customers because you guys are very customer focused. You're working backers from the customers. We hear that on and on what is going on in your customer base? One of the priorities, >>um, priorities for us will always remain on the mission to which our customers are focusing on. If we think about education, the question is, how are they re imagining the the delivery and the success in this new world that we're dealing with? So we'll continue to work and innovate with our partners and with amazing All right, a text that are in our business take a look at blackboard, right? They were able to scale 50 times their normal capacity globally, literally within 24 hours they're looking at How do they continue to innovate to serve? We're gonna work with K through 12 through academic medical centers and research, because when you think about what we need is we need to find that vaccine we need to find the ability to treat and serve. We're focused on those missions with the states, the research and the education teams. >>It's been unusual year learning is changing remote learning, remote work, the workforce, the workplace, the workloads. They're all changing. Onda clouds a big part of it. Um, final question for you. What's the take away for reinvent this year means different. You mentioned some of those highlights. What's the big take away for your audience? >>I think for state local education is it's available. It's now, and they have to serve their students and citizens quit. Um, what they've been able to do in the cloud again? A zay said at the start of the interview. They can now do overnight within minutes and hours and and support their citizens. And they have to do it quickly. So, >>uh, coyote to coyote goodness for the state and local governments to >>absolutely it's going to continue. And I think the important part is focused on the opportunity of innovating and supporting the mission >>Can Great to see you. Thanks for the insight. Thanks for the update. Appreciate it. We'll be following it. A lot of great successes. You guys have been having the Cuban involved in a bunch of them and we'll continue to follow the transformation. Thanks for coming on. >>Thank you. Enjoy Sena. >>Okay. This is the Cube Virtual. I'm John for your host. Thanks for watching more coverage. Walter Wall reinvent 2020 Virtual. Thanks for watching. Yeah,

>>from around the globe. It's the queue with digital coverage of AWS public sector online brought to you by Amazon Web services. >>Everyone welcome back to the Cube's virtual coverage of AWS Public sector summit online. That's the virtual conference. Public Sector Summit is the big get together for Teresa Carlson and her team and Amazon Web services from the public sector, which includes all the government agencies as well as education state governments here in United States and also abroad for other governments and countries. So we're gonna do an analysis of Teresa's keynote and also summarize the event as well. I'm John Furrow, your host of the Cube. I'm joined with my co host of the Cube, Dave Volante Stew Minimum. We're gonna wrap this up and analyze the keynote summit a really awkward, weird situation going on with the Summit because of the virtual nature of it. This event really prides itself. Stew and Dave. We've all done this event. It's one of our favorites. It's a really good face to face environment, but this time is virtual. And so with the covert 19 that's the backdrop to all this. >>Yeah, so I mean, a couple of things, John. I think first of all, A Z, you've pointed out many times. The future has just been pulled forward. I think the second thing is with this whole work from home in this remote thing obviously was talking about how the cloud is a tailwind. But let's face it. I mean, everybody's business was affected in some way. I think the cloud ultimately gets a tail wind out of this, but but But I think the third thing is security. Public sector is always heavily focused on security, and the security model has really changed overnight to what we've been talking about for years that the moat that we've built the perimeter is no longer where organizations need to be spending money. It's really to secure remote locations. And that literally happened overnight. So things like a security cloud become much, much more important. And obviously endpoint security and other other things that we've talked about in the Cube now for last 100 days. >>Well, Steve, I want to get your thoughts cause you know, we all love space. Do we always want to go the best space events that they're gonna be virtual this year as well? Um, But the big news out of the keynote, which was really surprising to me, is Amazon's continued double down on their efforts around space, cyber security, public and within the public sector. And they're announcing here, and the big news is a new space business segment. So they announced an aerospace group to serve those customers because space to becoming a very important observation component to a lot of the stuff we've seen with ground station we've seen at reinvent public sector. These new kinds of services are coming out. It's the best, the cloud. It's the best of data, and it's the best of these new use cases. What's your thoughts? >>Yeah, interesting. John, of course. You know, the federal government has put together Space Forces, the newest arm of the military. It's really even though something it is a punchline. There's even a Netflix show that I believe got the trademark board because they registered for it first. But we've seen Amazon pushing into space. Not only there technology being used. I had the pleasure of attending the Amazon re Marcia last year, which brought together Jeff Bezos's blue origin as well as Amazon AWS in that ecosystem. So AWS has had a number of services, like ground Station that that that are being used to help the cloud technology extend to what's happening base. So it makes a lot of sense for for the govcloud to extend to that type of environment aside you mentioned at this show. One of the things we love always is. You know, there's some great practitioner stories, and I think so many over the years that we've been doing this show and we still got some of them. Theresa had some really good guests in her keynote, talking about transformation and actually, one of the ones that she mentioned but didn't have in the keynote was one that I got to interview. I was the CTO for the state of West Virginia. If you talk about one of those government services that is getting, you know, heavy usage, it's unemployment. So they had to go from Oh my gosh, we normally had people in, you know, physical answering. The phone call centers to wait. I need to have a cloud based contact center. And they literally did that, you know, over the weekend, spun it up and pulled people from other organizations to just say, Hey, you're working from home You know you can't do your normal job Well, we can train your own, we can get it to you securely And that's the kind of thing that the cloud was really built for >>and this new aerospace division day this really highlights a lot of not just the the coolness of space, but on Earth. The benefits of there and one of Amazon's ethos is to do the heavy lifting, Andy Jassy told us on the Cube. You know, it could be more cost effective to use satellites and leverage more of that space perimeter to push down and look at observation. Cal Poly is doing some really interesting work around space. Amazon's worked with NASA Jet Propulsion Labs. They have a lot of partnerships in aerospace and space, and as it all comes together because this is now an augmentation and the cost benefits are there, this is going to create more agility because you don't have to do all that provisioning to get this going spawned. All kinds of new creativity, both an academic and commercial, your thoughts >>Well, you know, I remember the first cloud first came out people talked a lot about while I can do things that I was never able to do before, you know, The New York Times pdf example comes to mind, but but I think what a lot of people forget is you know the point to a while. A lot of these mission critical applications Oracle databases aren't moving to the cloud. But this example that you're giving and aerospace and ground station. It's all about being able to do new things that you weren't able to do before and deliver them as a service. And so, to me, it shows a great example of tam expansion, and it also shows things that you never could do before. It's not just taking traditional enterprise APs and sticking them in the cloud. Yeah, that happens. But is re imagining what you can do with computing with this massive distributed network. And you know, I O. T. Is clearly coming into into play here. I would consider this a kind of I o t like, you know, application. And so I think there are many, many more to come. But this is a great example of something that you could really never even conceive in enterprise Tech before >>you, Dave the line on that you talked about i o t talk a lot about edge computing. Well, if you talk about going into space, that's a new frontier of the edge that we need to talk about >>the world. Glad it's round. So technically no edge if you're in space so again not to get nuance here and nerdy. But okay, let's get into the event. I want to hold on the analysis of the keynote because I think this really society impact public service, public sector, things to talk about. But let's do a quick review of kind of what's happened. We'll get to the event. But let's just review the guests that we interviewed on the Cube because we have the cube virtual. We're here in our studios. You guys were in yours. We get the quarantine cruise. We're still doing our job to get the stories out there. We talked to Teresa Carlson, Shannon Kellogg, Ken Eisner, Sandy Carter, Dr Papa Casey Coleman from Salesforce, Dr Shell Gentleman from the Paragon Institute, which is doing the fairground islands of researcher on space and weather data. Um, Joshua Spence math you can use with the Alliance for Digital Innovation Around some of this new innovation, we leave the Children's National Research Institute. So a lot of great guests on the cube dot net Check it out, guys. I had trouble getting into the event that using this in Toronto platform and it was just so hard to navigate. They've been doing it before. Um, there's some key notes on there. I thought that was a disappointment for me. I couldn't get to some of the sessions I wanted to, um, but overall, I thought the content was strong. Um, the online platform just kind of wasn't there for me. What's your reaction? >>Well, I mean, it's like a Z. That's the state of the art today. And so it's essentially a webinar like platforms, and that's what everybody's saying. A lot of people are frustrated with it. I know I as a user. Activity clicks to find stuff, but it is what it is. But I think the industry is can do better. >>Yeah, and just to comment. I'll make on it, John. One of things I always love about the Amazon show. It's not just what AWS is doing, But, you know, you walk the hallways and you walk the actual So in the virtual world, I walk the expo floor and its okay, Here's a couple of presentations links in an email address if you want to follow up, I felt even the A previous AWS online at a little bit more there. And I'm sure Amazon's listening, talking to all their partners and building out more there cause that's definitely a huge opportunity to enable both networking as well. As you know, having the ecosystem be able to participate more fully in the event >>and full disclosure. We're building our own platform. We have the platforms. We care about this guys. I think that on these virtual events that the discovery is critical having the available to find the sessions, find the people so it feels more like an event. I think you know, we hope that these solutions can get better. We're gonna try and do our best. Um, so, um well, keep plugging away, guys. I want to get your thoughts. They have you been doing a lot of breaking analysis on this do and your interviews as well in the technology side around the impact of Covert 19 with Teresa Carlson and her keynote. Her number one message that I heard was Covad 19 Crisis has caused a imperative for all agencies to move faster, and Amazon is kind of I won't say put things to the side because they got their business at scale. Have really been honing in on having deliverables for crisis solutions. Solving the problems and getting out to Steve mentioned the call centers is one of the key interviews. This is that they're job. They have to do this cove. It impacts the public services of the public sector that she's that they service. So what's your reaction? Because we've been covering on the commercial side. What's your thoughts of Teresa and Amazon's story today? >>Yeah, well, she said, You know, the agencies started making cloud migrations that they're at record pace that they'd never seen before. Having said that, you know it's hard, but Amazon doesn't break out its its revenue in public sector. But in the data, I look at the breaking analysis CTR data. I mean, it definitely suggests a couple of things. Things one is I mean, everybody in the enterprise was affected in some way by Kobe is they said before, it wouldn't surprise me if there wasn't a little bit of a pause and aws public sector business and then it's picking up again now, as we sort of exit this isolation economy. I think the second thing I would say is that AWS Public sector, based on the data that I see, is significantly outpacing the growth of AWS. Overall number one number two. It's also keeping pace with the growth of Microsoft Azure. Now we know that AWS, on balance is much bigger than Microsoft Azure and Infrastructures of Service. But we also know that Microsoft Azure is growing faster. That doesn't seem to be the case in public sector. It seems like the public sector business is is really right there from in terms of growth. So it really is a shining star inside of AWS. >>Still, speed is a startup game, and agility has been a dev ops ethos. You couldn't see more obvious example in public sector where speed is critical. What's your reaction to your interviews and your conversations and your observations? A keynote? >>Yeah, I mean something We've all been saying in the technology industry is Just imagine if this had happened under 15 years ago, where we would be So where in a couple of the interviews you mentioned, I've talked to some of the non profits and researchers working on covert 19. So the cloud really has been in the spotlight. Can I react? Bask scale. Can I share information fast while still maintaining the proper regulations that are needed in the security so that, you know, the cloud has been reacting fast when you talk about the financial resource is, it's really nice to see Amazon in some of these instances has been donating compute occasional resource is and the like, so that you know, critical universities that are looking at this when researchers get what they need and not have to worry about budgets, other agencies, if you talk about contact centers, are often they will get emergency funding where they have a way to be able to get that to scale, since they weren't necessarily planning for these expenses. So you know what we've been seeing is that Cloud really has had the stress test with everything that's been going on here, and it's reacting, so it's good to see that you know, the promise of cloud is meeting that scale for the most part, Amazon doing a really good job here and you know, their customers just, you know, feel The partnership with Amazon is what I've heard loud and clear. >>Well, Dave, one of these I want to get your reaction on because Amazon you can almost see what's going on with them. They don't want to do their own horn because they're the winners on the pandemic. They are doing financially well, their services. All the things that they do scale their their their position, too. Take advantage. Business wise of of the remote workers and the customers and agencies. They don't have the problems at scale that the customers have. So a lot of things going on here. These applications that have been in the i t world of public sector are old, outdated, antiquated, certainly summer modernize more than others. But clearly 80% of them need to be modernized. So when a pandemic hits like this, it becomes critical infrastructure. Because look at the look of the things unemployment checks, massive amount of filings going on. You got critical service from education remote workforces. >>these are >>all exposed. It's not just critical. Infrastructure is plumbing. It's The applications are critical. Legit problems need to be solved now. This is forcing an institutional mindset that's been there for years of, like, slow two. Gotta move fast. I mean, this is really your thoughts. >>Yeah. And well, well, with liquidity that the Fed put into the into the market, people had, You know, it's interesting when you look at, say, for instance, take a traditional infrastructure provider like an HP era Dell. Very clearly, their on Prem business deteriorated in the last 100 days. But you know HP Q and, well, HBO, you had some some supply chain problem. But Dell big uptick in this laptop business like Amazon doesn't have that problem. In fact, CEOs have told me I couldn't get a server into my data center was too much of a hassle to get too much time. It didn't have the people. So I just spun up instances on AWS at the same time. You know, Amazon's VD I business who has workspaces business, you know, no doubt, you know, saw an uptick from this. So it's got that broad portfolio, and I think you know, people ask. Okay, what remains permanent? Uh, and I just don't see this This productivity boom that we're now finally getting from work from home pivoting back Teoh, go into the office and it calls into question Stu, when If nobody is in the corporate office, you know the VP ends, you know, the Internet becomes the new private network. >>It's to start ups moving fast. The change has been in the past two months has been, like, two years. Huge challenges. >>Yeah, John, it's an interesting point. So, you know, when cloud first started, it was about developers. It was about smaller companies that the ones that were born in the cloud on The real opportunity we've been seeing in the last few months is, you know, large organizations. You talk about public sector, there's non profits. There's government agencies. They're not the ones that you necessarily think of as moving fast. A David just pointing out Also, many of these changes that we're putting into place are going to be with us for a while. So not only remote work, but you talk about telehealth and telemedicine. These type of things, you know, have been on our doorstep for many years, but this has been a forcing function toe. Have it be there. And while we will likely go back to kind of a hybrid world, I think we have accelerated what's going on. So you know, there is the silver lining in what's going on because, you know, Number one, we're not through this pandemic. And number two, you know, there's nothing saying that we might have another pandemic in the future. So if the technology can enable us to be more flexible, more distributed a xai I've heard online. People talk a lot. It's no longer work from home but really work from anywhere. So that's a promise we've had for a long time. And in every technology and vertical. There's a little bit of a reimagining on cloud, absolutely an enabler for thinking differently. >>John, I wonder if I could comment on that and maybe ask you a question. That's okay. I know your host. You don't mind. So, first of all, I think if you think about a framework for coming back, it's too said, You know, we're still not out of this thing yet, but if you look at three things how digital is an organization. How what's the feasibility of them actually doing physical distancing? And how essential is that business from a digital standpoint you have cloud. How digital are you? The government obviously, is a critical business. And so I think, you know, AWS, public Sector and other firms like that are in pretty good shape. And then there's just a lot of businesses that aren't essential that aren't digital, and those are gonna really, you know, see a deterioration. But you've been you've been interviewing a lot of people, John, in this event you've been watching for years. What's your take on AWS Public sector? >>Well, I'll give an answer that also wants to do away because he and I both talk to some of the guests and interview them. Had some conversations in the community is prep. But my take away looking at Amazon over the past, say, five or six years, um, a massive acceleration we saw coming in that match the commercial market on the enterprise side. So this almost blending of it's not just public sector anymore. It looks a lot like commercial cause, the the needs and the services and the APS have to be more agile. So you saw the same kind of questions in the same kind of crazy. It wasn't just a separate division or a separate industry sector. It has the same patterns as commercial. But I think to me my big takeaways, that Theresa Carlson hit this early on with Amazon, and that is they can do a lot of the heavy lifting things like fed ramp, which can cost a $1,000,000 for a company to go through. You going with Amazon? You onboard them? You're instantly. There's a fast track for you. It's less expensive, significantly less expensive. And next thing you know, you're selling to the government. If you're a start up or commercial business, that's a gold mine. I'm going with Amazon every time. Um, and the >>other >>thing is, is that the government has shifted. So now you have Covad 19 impact. That puts a huge premium on people who are already been setting up for digital transformation and or have been doing it. So those agencies and those stakeholders will be doing very, very well. And you know that Congress has got trillions of dollars day. We've covered this on the Cube. How much of that coverage is actually going for modernization of I T systems? Nothing. And, you know, one of things. Amazon saying. And rightfully so. Shannon Kellogg was pointing out. Congress needs to put some money aside for their own agencies because the citizens us, the taxpayers, we got to get the services. You got veterans, you've got unemployment. You've got these critical services that need to be turned on quicker. There's no money for that. So huge blind spot on the whole recovery bill. And then finally, I think that there's a huge entrepreneurial thinking that's going to be a public private partnership. Cal Poly, Other NASA JPL You're starting to see new applications, and this came out of my interviews on some of the ones I talked to. They're thinking differently, the doing things that have never been done before. And they're doing it in a clever, innovative way, and they're reinventing and delivering new things that are better. So everything's about okay. Modernize the old and make it better, and then think about something new and completely different and make it game changing. So to me, those were dynamics that are going on than seeing emerge, and it's coming out of the interviews. Loud and clear. Oh, my God, I never would have thought about that. You can only do that with Cloud Computing. A super computer in the Cloud Analytics at scale, Ocean Data from sale Drone using satellite over the top observation data. Oh, my God. Brilliant. Never possible before. So these are the new things that put the old guard in the Beltway bandits that check because they can't make up the old excuses. So I think Amazon and Microsoft, more than anyone else, can drive change fast. So whoever gets there first, well, we'll take most of the shares. So it's a huge shift and it's happening very fast more than ever before this year with Covert 19 and again, that's the the analysis. And Amazon is just trying to like, Okay, don't talk about us is we don't want to like we're over overtaking the world because outside and then look opportunistic. But the reality is we have the best solution. So >>what? They complain they don't want to be perceived as ambulance station. But to your point, the new work loads and new applications and the traditional enterprise folks they want to pay the cow path is really what they want to dio. And we're just now seeing a whole new set of applications and workloads emerging. What about the team you guys have been interviewing? A lot of people we've interviewed tons of people at AWS reinvent over the years. We know about Andy Jassy at all. You know, his his lieutenants, about the team in public sector. How do they compare, you know, relative to what we know about AWS and maybe even some of the competition. Where do you Where do you grade them? >>I give Amazon and, um, much stronger grade than Microsoft. Microsoft still has an old DNA. Um, you got something to tell them is bring some fresh brand there. I see the Jedi competition a lot of mud slinging there, and I think Microsoft clearly got in fear solution. So the whole stall tactic has worked, and we pointed out two years ago the number one goal of Jet I was for Amazon not to win. And Microsoft looks like they're gonna catch up, and we'll probably get that contract. And I don't think you're probably gonna win that out, right? I don't think Amazon is gonna win that back. We'll see. But still doesn't matter. Is gonna go multi cloud anyway. Um, Teresa Carlson has always had the right vision. The team is exceptional. Um, they're superb experience and their ecosystem partners Air second and NASA GPL Cal Poly. The list goes on and on, and they're attracting new talent. So you look at the benchmark new talent and unlimited capability again, they're providing the kinds of services. So if we wanted to sell the Cube virtual platform Dave, say the government to do do events, we did get fed ramp. We get all this approval process because Amazon customer, you can just skate right in and move up faster versus the slog of these certifications that everyone knows in every venture capitalists are. Investor knows it takes a lot of time. So to me, the team is awesome. I think that the best in the industry and they've got to balance the policy. I think that's gonna be a real big challenge. And it's complex with Amazon, you know, they own the post. You got the political climate and they're winning, right? They're doing well. And so they have an incentive to to be in there and shape policy. And I think the digital natives we are here. And I think it's a silent revolution going on where the young generation is like, Look at government served me better. And how can I get involved? So I think you're going to see new APS coming. We're gonna see a really, you know, integration of new blood coming into the public sector, young talent and new applications that might take >>you mentioned the political climate, of course. Pre Cove. It'll you heard this? All that we call it the Tech lash, right, The backlash into big tech. You wonder if that is going to now subside somewhat, but still is the point You're making it. Where would we be without without technology generally and big tech stepping up? Of course, now that you know who knows, right, Biden looks like he's, you know, in the catbird seat. But there's a lot of time left talking about Liz more on being the Treasury secretary. You know what she'll do? The big tech, but But nonetheless I think I think really it is time to look at big tech and look at the Tech for good, and you give them some points for that. Still, what do you think? >>Yeah, first of all, Dave, you know, in general, it felt like that tech lash has gone down a little bit when I look online. Facebook, of course, is still front and center about what they're doing and how they're reacting to the current state of what's happening around the country. Amazon, on the other hand, you know, a done mentioned, you know, they're absolutely winning in this, but there hasn't been, you know, too much push back if you talk culturally. There's a big difference between Amazon and AWS. There are some concerns around what Amazon is doing in their distribution facilities and the like. And, you know, there's been lots of spotlights set on that, um, but overall, there are questions. Should AWS and Amazon that they split. There's an interesting debate on that, Dave, you and I have had many conversations about that over the past couple of years, and it feels like it is coming more to a head on. And if it happens from a regulation standpoint, or would Amazon do it for business reason because, you know, one of Microsoft and Google's biggest attacks are, well, you don't want to put your infrastructure on AWS because Amazon, the parent company, is going to go after your business. I do want to pull in just one thread that John you and Dave were both talking about while today you know, Amazon's doing a good job of not trying todo ambulance case. What is different today than it was 10 or 20 years ago. It used to be that I t would do something and they didn't want to talk to their peers because that was their differentiation. But Amazon has done a good job of explaining that you don't want to have that undifferentiated heavy lifting. So now when an agency or a company find something that they really like from Amazon talking all their peers about it because they're like, Oh, you're using this Have you tried plugging in this other service or use this other piece of the ecosystem? So there is that flywheel effect from the cloud from customers. And of course, we've talked a lot about the flywheel of data, and one of the big takeaways from this show has been the ability for cloud to help unlock and get beyond those information silos for things like over 19 and beyond. >>Hey, John, if the government makes a ws spin out or Amazon spin out AWS, does that mean Microsoft and Google have to spin out their cloud businesses to? And, uh, you think that you think the Chinese government make Alibaba spin out its cloud business? >>Well, you know the thing about the Chinese and Facebook, I compare them together because this is where the tech lash problem comes in. The Chinese stolen local property, United States. That's well documented use as competitive advantage. Facebook stole all the notional property out of the humans in the world and broke democracy, Right? So the difference between those bad tech actors, um, is an Amazon and others is 11 enabling technology and one isn't Facebook really doesn't really enable anything. If you think about it, enables hate. It enables some friends to talk some emotional reactions, but the real societal benefit of historically if you look at society, things that we're enabling do well in free free societies. Closed systems don't work. So you got the country of China who's orchestrating all their actors to be state driven, have a competitive advantage that's subsidised. United States will never do that. I think it's a shame to break up any of the tech companies. So I'm against the tech lash breakup. I think we should get behind our American companies and do it in an open, transparent way. Think Amazon's clearly doing that? I think that's why Amazon's quiet is because they're not taking advantage of the system that do things faster and cheaper gets that's there. Ethos thinks benefits the consumer with If you think about it that way, and some will debate that, but in general Amazon's and enabling technology with cloud. So the benefits of the cloud for them to enable our far greater than the people taking advantage of it. So if I'm on agency trying to deliver unemployment checks, I'm benefiting the citizens at scale. Amazon takes a small portion of that fee, so when you have enabling technologies, that's how to me, The right capitalism model works Silicon Valley In the tech companies, they don't think this way. They think for profit, go big or go home and this has been an institutional thing with tech companies. They would have a policy team, and that's all they did. They didn't really do anything t impact society because it wasn't that big. Now, with networked economies, you're looking at something completely different to connected system. You can't handle dissidents differently is it's complex? The point is, the diverse team Facebook and Amazon is one's an enabling technology. AWS Facebook is just a walled garden portal. So you know, I mean, some tech is good, some text bad, and a lot of people just don't know the difference what we do. I would say that Amazon is not evil Amazon Web services particular because they enable people to do things. And I think the benefits far outweigh the criticisms. So >>anybody use AWS. Anybody can go in there and swipe the credit card and spin up compute storage AI database so they could sell the problems. >>The problems, whether it's covert problems on solving the unemployment checks going out, are serving veterans or getting people getting delivering services. Some entrepreneurs develop an app for that, right? So you know there's benefits, right? So this you know, there's not not Amazon saying Do it this way. They're saying, Here's this resource, do something creative and build something solve a problem. And that was the key message of the keynote. >>People get concerned about absolute power, you know, it's understandable. But if you know you start abusing absolute power, really, I've always believed the government should come in, >>but >>you know, the evidence of that is is pretty few and far between, so we'll see how this thing plays out. I mean, it's a very interesting dynamic. I point about why should. I don't understand why AWS, you know, gets all the microscopic discussion. But I've never heard anybody say that Microsoft should spend on Azure. I've never heard that. >>Well, the big secret is Azure is actually one of Amazon's biggest customers. That's another breaking analysis look into that we'll keep on making noted that Dave's do Thanks for coming to do great interviews. Love your conversations. Final words to I'll give you What's the big thing you took away from your conversations with your guests for this cube? Virtual coverage of public sector virtual summit >>so biggest take away from the users is being able to react to, you know, just ridiculously fast. You know it. Talk about something where you know I get a quote on Thursday on Friday and make a decision, and on Monday, on up and running this unparalleled that I wouldn't be able to do before. And if you talk about the response things like over nine, I mean enabling technology to be able to cut across organizations across countries and across domains. John, as you pointed out, that public private dynamic helping to make sure that you can react and get things done >>Awesome. We'll leave it there. Stew. Dave. Thanks for spending time to analyze the keynote. Also summarize the event. This is a does public sector virtual summit online Couldn't be face to face. Of course. We bring the Cube virtual coverage as well as content and our platform for people to consume. Go the cube dot net check it out and keep engaging. Hit us up on Twitter if any questions hit us up. Thanks for watching. >>Yeah, yeah, yeah, yeah, yeah, yeah

>>from around the globe. It's the queue with digital coverage of AWS Public sector online brought to you by Amazon Web services. Everyone welcome back to the Cube's virtual coverage of Amazon Web services. Public sector Summit Online Virtual I'm John Furrier, your host of the Cube here in our Palo Alto studios were quarantined with our crew here. We're talking to all the guests, getting all the content I'm excited of. Sandy Carter Cube alumni's also the VP vice president. Worldwide public sector partners and programs. Sandy. Great to see you virtually. You look >>great virtually too. It's great to see everybody virtually. >>I love the sign behind you. Powered by AWS. I'm excited to have you on, but I really wanted to get jump right in because this is really an important conversation. Public sector is seeing a lot of activity around what's going on with covert 19 especially with all the public services that are needed. And people are now remote workers, remote consumers, public service and still needs to be delivered just like business. So it's a really had a big impact of the entire world. We're all seeing it. We're feeling it's not just tech thing. How are you seeing your community respond? Your partners are responding to covert. 19. Can you share what's happening? >>Yes, John, I have to say, I am so incredibly proud of the partners that we support and how they've stepped up in this time. That has no blueprint, right? It's brand new for everybody, whether we're talking about virtual call centers. We had so many states that said they had people waiting for hours waiting for calls to be answered about Covance for Take. For instance, West Virginia, West Virginia had collars waiting for hours 77,000 calls a day. They worked with one of our partners, Smartronix, and they got this new solution a ream or remote virtual call center, up in 72 hours. 72 hours later, Average wait. Time was 60 seconds. Amazing job by Smartronix or one of our other partners, Elektronik Caregiver who's based out of New Mexico, where my husband's from a great partner who's been looking at, um, telemedicine, how they can help those at risk in hospitals and rehabs, even just at their homes. Or another startup that's a partner of ours called Hello, Alice, that integrated with our AI and ML to create a small business platform to help those small businesses get access to funding. Answer questions During this really hard time and the last example, I'll give you his Inter vision, one of our newest premier partners, who had a customer that came to them and said, Look, I need to get a remote work solution up workspaces identity manager help desk And they thought it would take months and Inter Vision was able to do it in week. So I am so proud and so thankful of our partners and what they've done to really impact the world, not just for their own profit, but for purpose helping out states, governments and citizens >>and congratulations. And it's well needed. People are feeling the pain. One area I want to get your thoughts on is the agencies we talked to the Department of Defense general manager earlier today. Um, all of the agencies in in public sector are shifting, and obviously, with the limitations, they got a shift to the remote workforce. They got to be faster. They got to be agile. I know they've been trying to, but they can't just wait any longer. They're forced to. How are your public sector partners helping the agencies? >>Yeah, this is another just terrific story. I cannot brag about our partners enough with our agency work. So if you looked at all of the agencies, kind of had a tight title wave of this digital transformation, things that we're gonna take them years ended up taking them weeks and months. So whether it's Kansas with the Department of Labor, they had 8800 and 77,000 calls a day. 21 staff couldn't do. It worked with our partners to get a call center up and going or in New Mexico again with Accenture, they used Amazon Connect, which is one of my new favorite products from Amazon. It's a call center that leverages machine learning and AI. They were able to work with the New Mexico Human Services and get that up and going in two days, Um, or even in Montana, a great story with Deloitte, where they built a custom chat box in seven days, custom chat box and seven days to answer questions about food and medicine and even how to get cash. If you needed to get cash, our partners really stepped up with the agencies, and they did so much compelling work so quickly. I think speed was such a great component here, John. The speed of deployment, the speed of help. You know, working 24 by seven to deliver these solutions. Our partners really did an amazing job. >>Yeah, and it's really hard with virtual. I got, I got I wish I was in person with everyone because coming to the public sector summits, one of my favorite events reinvent in public sector. Some of the two big shows, I really think encapsulate all the activity because it's virtual. People might miss some news. What else is going on in the world of public sector partners? You? Can you elaborate more on what's going on around the edges? What's on the bleeding? Cutting edge? What's the pioneer and what are some of the blocking and tackling that you're doing? Share some of the news. What else is going on? >>Yeah. Thank you, John. There's so much going on. First of all, we just introduced a new partner solution portal. So all of these code that 19 solutions are featured there. We will provide a URL for any customer looking for a great solution by our partners. We also really honed in and helped our partners during this time around. Said Ramp. And you know that fed ramp is so crucial. Security cybersecurity Incredibly essential. During this time I know you talked to my good friend Casey from Salesforce. They were able to achieve their fed ramp I and we offer a lot of help to our partners to help them to achieve not just fed ramp, but GDP are as well as HIPPA too. Some other news on migrations. We've got a competency around migrations. We've got some new funding for our partners around map and we're seeing our migration's really accelerate, you know, once these agencies, once he states see the power of the cloud, they're like, give me more, I want to put more and so we're seeing migrations accelerate. I know that you saw the Navy speak about what they're doing with s AP and as to another one of my favorite partners 72,000 users now running in his two on AWS. Six different commands pretty powerful. And I would say last but not least, is PTP our program transformation program for our partners, which really is like 100 and 10 day session to help the partners become a cloud business themselves. So they're kind of drinking their own champagne before they go out and help others. They become a cloud business. It's really powerful. This program has helped to generate twice the revenue of a typical a PM program. >>You mentioned the Navy always having interesting chat about that. Migration was less than 10 months. >>Yes, again. Speed, speed, speed, right, John. I mean, it's incredible >>years, two months, and the other thing that you probably find interesting and this is something that's kind of not talked about. But it's felt just the basic stuff, like getting paperwork in some of these processes, like you mentioned Fed Ramp. There's a lot of things that go on around public sector. You just got to get done. You got a slog through it, if you will. You guys have have responded well there, and this is the benefit of the cloud. Having the streamlined processes elaborate more on that, because I think that's important. Benefit not only just started in the critical infrastructure, like call centers and things of that nature, but getting business done. That's a big thing. >>Yeah, And I would say, you know, if you look at it, we helped over 20 states with their insurance processes. I mean, it seems like a minor thing, but a lot of these things were manual before, Um, we've helped many states with unemployment, you know, very critical at this time, taking a manual process and getting it into the cloud. There's so many of these that we can go on and on about How do you get medical supplies? One of our partners cohesive down in Latin America has been helping around some of the supply chain issues that that we deal with there some of the things that we take for granted when you're in person now that your virtual, you really need to think them through in the cloud. So again, you know, our partners responded with speed. They responded with heart to John one of the other things, you know, hashtag tech for good. They responded with heart as well as they were looking at these projects and ensuring that states and agencies and governments around the world could take care of their citizens, which is all of us. >>You know, existing. We've talked in the past. We've talked on camera and off camera around our shared passion around tech for good. I've been a big proponent of as well as us of right of other folks. But with the crisis, the word impact means something. And social impact is actually social impact. Getting your unemployment check or, you know, this this is highlights the critical nature of why these services exist. I think it's a real testament. I think people should step back and saying why we should never go back to the old antiquated ways because this is now the new reality. These services can be agile, they can be faster. It takes a crisis, unfortunately, and I guess that could be the silver lining in all this. So props to you guys on giving the partnership there with the partners >>and to the governments and states, John, who have now, like they moved rapidly, right? All these states, all these agencies, all these governments move quickly to digital transformation. Now they've gotten a taste of it, and they're like, give me more. And so the great thing to me is that this wasn't a one time event or one time crisis driven movement. Now that they see the power of it much like what you're saying with your business, they're doing more and and that's what I really applaud for all of them. And the way that they're transforming the business is now longer term. >>I'm optimistic, and I hope when we come out of this when everyone gets settled and they re imagine and reinvent, there's a growth strategy and expansion could be for positive change. So you've >>got >>stuff. We're all for that, and we'll be watching that reporting on it. I >>want to >>ask you something. I've heard that you guys will be soon expanding your public safety and disaster response partner. Competency. Can you tell me more about that? >>Yeah, So we announced the This is a hard one is disaster response in public safety competency at re invent for our consulting partners? And that went over amazingly well. I mean, take, for instance, Max are who is probably the best at believing delivering data both pre and post data to a disaster. They helped Noah, for instance, where data was taking 100 minutes to get that data down. Not good enough in a disaster. They were able to achieve a 58% faster download of data so you can do something with that Use that data to make good decisions. So these consulting partners have really embraced are our disaster recovery and public safety response competency. And now what we want to do is introduce this for our technology partners. So we're announcing the coming of this program for our technology partners. Now who is a technology partner? Well, think about an AI is the or a SAS provider these type of partners who have great solutions that target this particular area, think about public safety right now and how important that is, or even disaster response. You know, we have cove it, but right after that, we have all these hurricanes and earthquakes and other things that are happening around the world. Killer hornets. Um and so we've got some great technology partners that have solutions here, and we'll be welcoming them into this confidence. He fold as well. >>Well, this brings up something I've been commenting on. I want to get your reaction is because you know, when you have that flywheel pattern, infrastructures of service platforms of service and sass that build cloud when we've seen the benefits over a decade. Plus, when you bring the business model, you start to see the same thing. Some foundational things like infrastructure as service would be like compliance. Instant auditing that the Navy seeing, for instance, I heard earlier and then that platform pieces to allow these new workloads. So these new applications are going to be coming on. Creative surge of application developers, new kinds of workloads, new kinds of workforces and and work work flows. So you're gonna start to see these new APS. That means you guys will probably be inundated with new things. How do people get involved? Do they join a PN? What are some of the benefits? What should someone do? I want to be a partner of AWS because I see a solution. I create something that may be unique and specialize in niche. But it solves a really important problem. I want to bring it to Amazon. How do I do that? >>And we want you as a partner to John. Um, so yes. I mean, if you're a partner, the very first place to start is to join our A p m r Amazon Partner Network. If you're a startup or an I s d a distributor or reseller consulting partner, any of those that would be the first place to start, And then based on what you're interested in, you would then select the types of help that you might get. So, for example, if you're a start up, we helped start ups with credits because a lot of startups need free credits as they're starting their businesses or even technologies. So if you think about Hello, Alice, uh, you know, really using tagging for her small business site during Cove it we were able to provide some technology expertise to get her moving and grooving. Um, other great programs that we have out there are things like 80 0 the authority to operate. And this is really important, John, because a lot of our our customers require fed ramp and fed ramp is very costly and not only costly, but takes a lot of time so we can dramatically reduce your time to market with fed ramp really help you through with all those best practices. In fact, today we have 110 fed ramp solution that have gone through our 80 or authority to hire authority to operate process. And that's four X. Our top two competitors combined four x the number of partners that have gotten through because of the amount of time that is reduced through this process as well as the best practices that we bring. We've done a slim down version, so if you're a start up and you're interested in it like we partner with the Joshua down at Capital Factory and they've got the Army future command, we got a lot of startups. You want it? We've also got a slim down version for for them as well. >>It's been a >>very powerful program, >>and being in the cloud you can fast track and learn from others. This >>is the >>whole point of cloud. >>Absolutely, And learning from others is, you know, one of the great things that we love to do. In fact, until I we're going to do a big partner meeting, you know, here at the summit we'll have partners that participate in the virtual online summit. We're going to do a separate meeting just for our partners in July as well to share with them some of the things that are important to them around programs and some of these AP and benefits and some of the changes that we've made to help support them during the Cove it crisis. >>And I think you know the partners or the channel or how you look at it. They're adding value and a great partner for Amazon. For you guys, It's a great city. >>Yeah, I mean, are we could not. We at Amazon could not do the business We do without our partners. They bring their expertise, their best practices, the skills and the relationships they have, the contracts they bring to the table. So we're so grateful for the partners that we have in our public sector partner program. It's one of the reasons I loved my job. Every day I get to talk to a new partner on a new technology area that they're working on. It could be, you know, spatial computing, or AI, and they're helping not just move for a business, but they're helping on a purposeful mission project usually which are so powerful in today's world, especially with all the different crisis, is that we've seen, >>you know, One thing I want to get just share with you is that I talk to a lot of partners, certainly on the Cube and in person. One of the things that resonates with partners is not only the optimism of Amazon and programs you run, but it's enablement. You guys really enable the partners to be successful on your behalf and you on their behalf. But ultimately the customer and I think, and there's money to be made so lucrative and profitable, and they could impact change. So this enabling capability is really the magic. And so I want to ask you on your final question. Here in the talk is what's the vibe now? Because also, we know it's pretty depressing with Cove it, um and we're gonna get through this, but so there will be a day we get through. This will be growth and strategies around. It will never be the same. Certainly, I believe the hybrid world. What's >>the >>vibe inside the Amazon Web services public sector partner team, the community, the ecosystem? Could you just give some insight into how people are doing? And what's the vibe? >>Yeah, I would say the vibe is hopeful um, we all see the difference and the impact that we're making on a daily basis. And because of that, um, we continue to stretch forward and really move mountains for our customers to help them deliver better services. Um, you know, our partners are jumping in and all kinds of areas. First of all, for example, they are jumping in on doing hackathons to help with covet 19. So, John, you know, girls and tech. We've got our partners and us as AWS jumping into happy on different solutions for some of these challenges that are facing there. That's all about hope. I hope that we can make a difference. We are jumping in and assisting on remote work and unemployment, um, to provide hope to the teams and the community. So I would say, you know, it's tough for all. In fact, one of my friends describes, this is a crisis cake, not one level of a crisis, but multiple levels of the crisis. And I have never been with a with a more optimistic and positive team in my whole life, one who's willing to do what it takes. And when I see team, I mean not just my AWS partner team, which is the best of the world, but our world class partner team as well, who is willing to jump in there and do what it takes to help our customers. Even this weekend, I had a part of my partner team and my partners working to solve a problem for an agency that was, you know, um, critical. And they jumped in on the weekend to make that happen. So I would say, if I could say one word, I would say My partner's are hopeful they are. They're learning. They're curious. They're stepping out into new areas like connect and remote work and remote learning. And they're doing things that they never thought was possible based on what's happening today. >>Critical infrastructure, critical software, services and processes gotta be maintained and this opportunity. So I think it's, you know, heads down with hope and growth, always great to chat with you. And of course, we'll be following and covering your event next month. So looking forward to it, exciting times. Sandy Carter, Thank you for joining me today for coverage. >>Thank you, John. It's always a pleasure to be here on the Cube Thank you guys for watching as well. >>Sandy Carter, vice president, worldwide public sector partners in program. Distinguished Cube Alumni. A tough job, great job at same time. A lot of opportunities and hope. I'm John Furrow, your host of the Cube. You're watching our coverage. Cube Virtual of Amazon public sector Online summit. Thanks for watching. Yeah, yeah, yeah.

(upbeat music) >> From New York City, it's theCUBE. Covering "Welcome To The New Edge." Brought to you by Pensando Systems. >> Hey, welcome back here ready. Jeff Frick here with theCUBE. We are high atop Goldman Sachs in downtown Manhattan, I think it's 43 floors, for a really special event. It's the Pensando launch. It's really called welcome to the new edge and we talked about technology. We had some of the founders on but, these type of opportunities are really special to talk to some really senior leaders and we're excited to have John Chambers back on, who as you know, historic CEO of Cisco for many, many years. Has left that, is doing his own ventures he's writing books, he's investing and he's, happens to be chairman of the board of Pensando. So John, thanks for taking a few minutes with us. >> Well, more than a few minutes, I think what we talked about today is a major industry change and so to focus on that and focus about the implications will be a lot of fun. >> So let's jump into it. So, one of the things you led with earlier today was kind of these 10 year cycles and they're not exactly 10 years, but you outlined a series of them from mainframe, mini client server everybody knows kind of the sequence. What do you think it is about the 10 year kind of cycle besides the fact that it's easy and convenient for us to remember, that, kind of paces these big disruptions? >> Well, I think it has to do with once a company takes off they tend to, dominate that segment of the industry for so long that even if a creative idea came up they were just overpowering. And then toward the end of a 10 year cycle they quit reinventing themselves. And we talked earlier about the innovator's dilemma and the implications for it. Or an architecture that was designed that suddenly can't go to the next level. So I think it's probably a combination of three or four different factors, including the original incumbent who broke the glass, disrupted others, not disrupting themselves. >> Right, but you also talked about a story where you had to shift focus based on some customer feedback and you ran Cisco for a lot longer than 10 years. So how do you as a leader kind of keep your ears open to something that's a disruptive change that's not your regular best customer and your regular best salesman asking for a little bit faster, a little bit cheaper, a little bit of more the same versus the significant disruptive transformational shift? >> Well this goes back to one of my most basic views in life is I think we learn more from our setbacks or setbacks we were part of, or even the missteps or mistakes than you ever do your successes. Everybody loves to talk about successes and I'm no different there. But when you watched a great state like West Virginia that was the chemical center of the world and the coal mining center of the world, the 125,000 coal mines, six miners very well paid, 6,000 of the top engineers in the world, it was the Silicon Valley of the chemical industry and those just disappear. And because our state did not reinvent itself, because the education system didn't change, because we didn't distract attract a new set of businesses in we just kept doing the right thing too long, we got left behind. Then I went to Boston, it was the Silicon Valley of the world. And Route 128 around Boston was symbolic with the Silicon Valley and I-101 and 280 around it. And we had the top university at that time. Much like Stanford today, but MIT generating new companies. We had great companies, DEC, Wang, Data General. Probably a million jobs in the area and because we got stuck in a segment of the market, quit listening to our customers and missed the transitions, not only did we lose probably 1.2 million jobs on it, 100,000 out of DEC, 32,000 out of Wang, etc, we did not catch the next generation of technology changes. So I understand the implications if you don't disrupt yourself. But I also learned, that if you're not regularly reinventing yourself, you get left behind as a leader. And one of my toughest competitors came up to me and said, "John, I love the way you're reinventing Cisco "and how you've done that multiple times." And then I turned and I said "That's why a CEO has got to be in the job "for more than four or five years" and he said, "Now we disagree again." Which we usually did and he said, "Most people can't reinvent themselves." And he said "I'm an example." "I'm a pretty good CEO" he's actually a very good CEO, but he said, "After I've been there three or four years "I've made the changes, that I know "I've got to go somewhere else." And he could see I didn't buy-in and then he said, "How many of your top 100 people "you've been happy with once they've been "in the job for more than five years?" I hesitated and I said "Only one." And he's right, you've got to move people around, you've got to get people comfortable with disruption on it and, the hardest one to disrupt are the companies or the leaders who've been most successful and yet, that's when you got to think about disruption. >> Right, so to pivot on that a little bit in terms of kind of the government's role in jobs, specifically. >> Yes. >> We're in this really strange period of time. We have record low unemployment, right, tiny, tiny unemployment, and yet, we see automation coming in aggressively with autonomous vehicles and this and that and just to pick truck drivers as a category, everyone can clearly see that autonomous vehicles are going to knock them out in the not too distant future. That said, there's more demand for truck drivers today than there's every been and they can't fill the positions So, with this weird thing where we're going to have a bunch of new jobs that are created by technology, we're going to have a bunch of old jobs that get displaced by technology, but those people aren't necessarily the same people that can leave the one and go to the other. So as you look at that challenge, and I know you work with a lot of government leaders, how should they be thinking about taking on this challenge? >> Well, I think you've got to take it on very squarely and let's use the U.S. as an example and then I'll parallel what France is doing and what India is doing that is actually much more creative that what we are, from countries you wouldn't have anticipated. In the U.S. we know that 50% of the Fortune 500 will probably not exist in 10 years, 12 at the most. We know that the large companies will not incrementally hire people over this next decade and they've often been one of the best sources of hiring because of AI and automation will change that. So, it's not just a question of being schooled in one area and move to another, those jobs will disappear within the companies. If we don't have new jobs in startups and if we don't have the startups running at about three to four times the current volumes, we've got a real problem looking out five to 10 years. And the startups where everyone thinks we're doing a good job, the app user, third to a half of what they were two decades ago. And so if you need 25 million jobs over this next decade and your startups are at a level more like they were in the 90s, that's going to be a challenge. And so I think we've got to think from the government perspective of how we become a startup nation again, how we think about long-term job creation, how we think about job creation not taking money out of one pocket and give it to another. People want a real job, they want to have a meaningful job. We got to change our K through 12 education system which is broken, we've got to change our university system to generate the jobs for where people are going and then we've got to retrain people. That is very doable, if you got at it with a total plan and approach it from a scale perspective. That was lacking. And one of the disappointing things in the debate last night, and while I'm a republican I really want who's going to really lead us well both at the presidential level, but also within the senate, the house. Is, there was a complete lack of any vision on what the country should look like 10 years from now, and how we're going to create 25 million jobs and how we're going to create 10 million more that are going to be displaced and how we're going to re-educate people for it. It was a lot of finger pointing and transactional, but no overall plan. Modi did the reverse in India, and actually Macron, in all places, in France. Where they looked at GDP growth, job creation, startups, education changes, etc, and they executed to an overall approach. So, I'm looking for our government really to change the approach and to really say how are we going to generate jobs and how are we going to deal with the issues that are coming at us. It's a combination of all the the above. >> Yep. Let's shift gears a little bit about the education system and you're very involved and you talked about MIT. Obviously, I think Stanford and Cal are such big drivers of innovation in the Bay area because smart people go there and they don't leave. And then there's a lot of good buzz now happening in Atlanta as an investment really piggy-backing on Georgia Tech, which also creates a lot of great engineers. As you look at education, I don't want to go through K through 12, but more higher education, how do you see that evolving in today's world? It's super expensive, there's tremendous debt for the kids coming out, it doesn't necessarily train them for the new jobs. >> Where the jobs are. >> How do you see, kind of the role of higher education and that evolving into kind of this new world in which we're headed? >> Well, the good news and bad news about when I look at successful startups around the world, they're always centered around a innovative university and it isn't just about the raw horse power of the kids, It starts with the CEO of the university, the president of the university, their curriculum, their entrepreneurial approach, do they knock down the barriers across the various groups from engineering to business to law, etc? And are they thinking out of box? And if you watch, there is a huge missing piece between, Georgia Tech more of an exception, but still not running at the level they need to. And the Northeast around Boston and New York and Silicon Valley, The rest of the country's being left behind. So I'm looking for universities to completely redo their curriculum. I'm looking for it really breaking down the silos within the groups and focus on the outcomes. And much like Steve Case has done a very good job on focusing, about the Rust Belt and how do you do startups? I'm going to learn from what I saw in France at Polytechnique and the ITs in India, and what occurred in Stanford and MIT used to occur is, you've got to get the universities to be the core and that's where they kids want to stay close to, and we've got to generate a whole different curriculum, if you will, in the universities, including, continuous learning for their graduates, to be able to come back virtually and say how do I learn about re-skilling myself? >> Yeah. >> The current model is just not >> the right model >> It's broken. >> For the, for going forward. >> K through 12 is >> hopelessly broken >> Yeah. >> and the universities, while were still better than anywhere else in the world, we're still teaching, and some of the teachers and some of the books are what I could have used in college. >> Right, right >> So, we got to rethink the whole curriculum >> darn papers on the inside >> disrupt, disrupt >> So, shifting gears a little bit, you, played with lots of companies in your CEO role you guys did a ton of M&A, you're very famous for the successful M&A that you did over a number of years, but in an investor role, J2 now, you're looking at a more early stage. And you said you made a number of investments which is exciting. So, as you evaluate opportunities A. In teams that come to pitch to you >> Yeah. >> B. What are the key things you look for? >> In the sequence you've raised them, first in my prior world, I was really happy to do 180 acquisitions, in my current world, I'm reversed, I want them to go IPO. Because you add 76% of your headcount after an IPO, or after you've become a unicorn. When companies are bought, including what I bought in my prior role, their headcount growth is pretty well done. We'd add engineers after that, but would blow them through our sales channel, services, finance, etc. So, I want to see many more of these companies go public, and this goes back to national agenda about getting IPO's, not back to where they were during the 90's when it was almost two to three times, what you've seen over the last decade. But probably double, even that number the 90's, to generate the jobs we want. So, I'm very interested now about companies going public in direction. To the second part of your question, on what do I look for in startups and why, if I can bridge it, to am I so faired up about Pensando? If I look for my startups and, it's like I do acquisitions, I develop a playbook, I run that playbook faster and faster, it's how I do digitization of countries, etc. And so for a area I'm going to invest in and bet on, first thing I look at, is their market, technology transition, and business model transition occurring at the same time. That was Amazon of 15 years ago as an example. The second thing I look at, is the CEO and ideally, the whole founding team but it's usually just the CEO. The third thing I look for, is what are the customers really say about them? There's only one Steve Jobs, and it took him seven years. So, I go to the customers and say "What do you really think of this company?" Fourth thing I look for, is how close to an inflection point are they. The fifth thing I look for, is what they have in their ecosystem. Are they partnering? Things of that type. So, if I were to look at Pensando, Which is really the topic about can they bring to the market the new edge in a way that will be a market leading force for a whole decade? Through a ecosystem of partners that will change business dramatically and perhaps become the next major tech icon. It's how well you do that. Their vision in terms of market transitions, and business transitions 100% right. We've talked about it, 5G, IOT, internet of things, going from 15 billion devices to 500 billion devices in probably seven years. And, with the movement to the edge the business models will also change. And this is where, democratization, the cloud, and people able to share that power, where every technology company becomes a business becomes a, every business company becomes a technology company. >> Right. >> The other thing I look at is, the team. This is a team of six people, myself being a part of it, that thinks like one. That is so unusual, If you're lucky, you get a CEO and maybe a founder, a co-founder. This team, you've got six people who've worked together for over 20 years who think alike. The customers, you heard the discussions today. >> Right. >> And we've not talked to a single cloud player, a single enterprise company, a single insurance provider, or major technology company who doesn't say "This is very unique, let's talk about "how we work together on it." The inflection point, it's now you saw that today. >> Nobody told them it's young mans game obviously, they got the twenty-something mixed up >> No, actually were redefining (laughs) twenty-something, (laughs) but it does say, age is more perspective on how you think. >> Right, right. >> And Shimone Peres, who, passed away unfortunately, two years ago, was a very good friend. He basically said "You've got all your life "to think like a teenager, "and to really think and dream out of box." And he did it remarkably well. So, I think leaders, whether their twenty-something, or twenty-some years of experience working you've got to think that way. >> Right. So I'm curious, your take on how this has evolved, because, there was data and there was compute. And networking brought those two thing together, and you were at the heart of that. >> Mm-hmm. Now, it's getting so much more complex with edge, to get your take on edge. But, also more importantly exponential growth. You've talked about going from, how ever many millions the devices that were connected, to the billions of devices that are connected now. How do you stay? How do you help yourself think along exponential curves? Because that is not easy, and it's not human. But you have to, if you're going to try to get ahead of that next wave. >> Completely agree. And this is not just for me, how do I do it? I'm sharing it more that other people can learn and think about it perhaps the same way. The first thing is, it's always good to think of the positive, You can change the world here, the positive things, But I've also seen the negatives we talked about earlier. If you don't think that way, if you don't think that way as a leader of your company, leader of your country, or the leader of a venture group you're going to get left behind. The implications for it are really bad. The second is, you've got to say how do you catch and get a replicable playbook? The neat thing about what were talking about, whether it's by country in France, or India or the U.S., we've got replicable playbooks we know what to run. The third element is, you've got to have the courage to get outside your comfort zone. And I love change when it happens to you, I don't like it when it happens to me And I know that, So, I've got to get people around me who push me outside my comfort zone on that. And then, you've got to be able to dream and think like that teenager we talked about before. But that's what we were just with a group of customers, who were at this event. And they were asking "How do we get "this innovation into our company?" "How do we get the ability to innovate, through not just strategic partnerships with other large companies or partnerships with startups?" But "How do we build that internally?" It's comes down to the leader has to create that image and that approach. Modi's done it for 1.3 billion people in India. A vision, of the future on GDP growth. A digital country, startups, etc. If they can do it for 1.3 billion, tell me why the U.S. can not do it? (laughs) And why even small states here, can't do it. >> Yeah. Shifting gears a little bit, >> All right. >> A lot of black eyes in Silicon Valley right now, a lot of negativity going on, a lot of problems with privacy and trading data for currency and, it's been a rough road. You're way into tech for good and as you said, you can use technology for good you can use technology for bad. What are some things you're doing on the tech for good side? Because I don't think it gets the spotlight that it probably should, because it doesn't sell papers. >> Well, actually the press has been pretty good we just need to do it more on scale. Going back to Cisco days, we never had any major issues with governments. Even though there was a Snowden issue, there were a lot of implications about the power of the internet. Because we work with governments and citizens to say "What are the legitimate needs so that everybody benefits from this?" And where the things that we might have considered doing that, governments felt strongly about or the citizens wouldn't prosper from we just didn't do it. And we work with democrats and republicans alike and 90% of our nation believed tech was for good. But we worked hard on that. And today, I think you got to have more companies doing this and then, what, were doing uniquely in JC2, is were literally partnering with France on tech is for good and I'm Macron's, global tech ambassador and we focus about job creation and inclusion. Not just in Paris, or around Station F but throughout all the various regions in the country. Same thing within India, across 26 different states with Modi on how do you drive it through? And then if we can do it in France or India why can't we do it in each state in the U.S.? Partnering with West Virginia, with a very creative, president of the university there West Virginia University. With the democrats and republicans in their national senate, but also within the governor and speaker of the house and the president and senate within West Virginia, and really saying were going to change it together. And getting a model that you can then cookie cut across the U.S. if you change the curriculum, to your earlier comments. If you begin to focus on outcomes, not being an expert in one area, which is liable not to have a job >> Right. >> Ten years later. So, I'm a dreamer within that, but I think you owe an obligation to giving back, and I think they're all within our grasps >> Right >> And I think you can do, the both together. I think at JC2 we can create a billion dollar company with less than 10 people. I think you can change the world and also make a very good profit. And I think technology companies have to get back to that, you got to create more jobs than you destroy. And you can't be destroying jobs, then telling other people how to live their lives and what their politics should be. >> Yeah. >> That just doesn't work in terms of the environment. >> Well John, again, thanks for your time. Give you the last word on >> Sure >> Account of what happened here today, I mean you're here, and Tony O'Neary was here or at the headquarters of Goldman. A flagship launch customer, for the people that weren't here today why should they be paying attention? >> Well, if we've got this market transition right, the technology and business model, the next transition will be everything goes to the edge. And as every company or every government, or every person has to be both good in their "Area of expertise." or their vertical their in, they've got to also be good in technology. What happened today was a leveling of the playing field as it relates to cloud. In terms of everyone should have choice, democratization there, but also in architecture that allows people to really change their business models, as everything moves to the edge where 75% of all transactions, all data will be had and it might even be higher than that. Secondly, you saw a historic first never has anybody ever emerged from stealth after only two and a half years of existing as a company, with this type of powerhouse behind them. And you saw the players where you have a customer, Goldman Sachs, in one of the most leading edge areas, of industry change which is obviously finance leading as the customer who's driven our direction from the very beginning. And a company like NetApp, that understood the implication on storage, from two and a half years ago and drove our direction from the very beginning. A company like HP Enterprise's, who understood this could go across their whole company in terms of the implications, and the unique opportunity to really change and focus on, how do they evolve their company to provide their customer experience in a very unique way? How do you really begin to think about Equinix in terms of how they changed entirely from a source matter prospective, what they have to do in terms of the direction and capabilities? And then Lightspeed, one of the most creative intra capital that really understands this transition saying "I want to be a part of this." Including being on the board and changing the world one more time. So, what happened today? If we're right, I think this was the beginning of a major inflection point as everything moves to the edge. And how ecosystem players, with Pensando at the heart of that ecosystem, can take on the giants but also really use this technology to give everybody choice, and how they really make a difference in the future. As well as, perhaps give back to society. >> Love it. Thank you John >> My pleasure, that was fun. >> Appreciate it. You're John, I'm Jeff you're watching theCUBE. Thanks for watching, we'll see you next time. (upbeat music)

Silicon Valley, it's theCUBE covering People First Network. Brought to you by Mayfield. >> Hello, I'm John Furrier here in Palo Alto for an exclusive conversation, CUBE conversation, part of the People First Network with theCUBE and Mayfield fund. I'm here with John Chambers at his house in Palo Alto. John Chambers is the former CEO/Chairman of Cisco Systems, now running J2C, JC2 Ventures. Great to see you, thanks for spending time! >> It's a pleasure to be together again. >> I'm here for two reasons. One, I wanted a conversation about People First and technology waves, but also, I want to talk about your new book, which is exciting, called Connecting the Dots. And it's not your standard business book, where, you know, hey, rah-rah, you know, like a media post these days on the internet; it's some personal stories weaved in with the lessons you've learned through the interactions you've had with many people over the years, so exciting book and I'm looking forward to talking about that. >> Thank you! >> Again, John Chambers, legend, Cisco, 1991 when you joined the company from Wang before that. 400 employees, one product, 70 million in revenue. And when you retired in 2015, not so much retired, 'cos you've got some--. >> I'm working on my next chapter! >> You've got your next chapter (laughs)! 180 acquisitions, 447 billion in revenue, you made 10,000 people millionaires, you created a lot of value, probably one of the biggest inflection points in computer history, the evolution of inter-networking and tying systems together, it was probably one of the biggest waves somewhat before the wave we're on now. So an amazing journey, now you're running JC2 Ventures and investing in game-changing start-ups. So you're not retired? >> No. It was only my next chapter. I made my decision almost 10 years before I left Cisco first, to make for a very smooth transition because it's my family, and out of the 75,000 people, I hired all but 23 of them! And in terms of what I wanted to do next, I really wanted to both give back, create more jobs, get our start-up engine going again in this country, and it's currently broken, and I want to do that on a global basis, in places like France and India as well. So I'm on to my next chapter, but the fun part in this chapter is that I do the things that I love. >> And you've got a great team behind you, but also, you have a great personal network. And I want to get into that, of your personal stories as well as your social network in business and in the community; but one of the things I want to get up front, because I think this is important for this conversation is, you've been very strong. I've seen you present many times over the years, going way back into the 90's. You're eloquent, you're people-oriented, but you have a knack for finding the waves, seeing transitions, you've been through many waves. >> Yes I have, good and bad. >> Good and bad. But one of the big ones, how do you spot those transitions? And what wave are we in now? I mean, talk about the wave that's happening now, it's unprecedented on many levels, but, different, but it's still a wave. >> It is, and outgoing market transitions and often combined with either economic changes or business model changes with technology. And part of the reason that I've been fortunate to be able to identify many of them is I listen to customers very carefully, but also, you're often a product of your prior experiences. Having experienced West Virginia, one of the top states in the US in terms of the chemical industry, uh, during the 40's and 50's and 60's when I was growing up there, and literally more millionaires in West Virginia than there were in the entire Great Britain. We were on top of the world in the chemical industry, and the coal industry, and yet, because we missed transitions, and we should've seen them coming, the state fell a long way, so now we're trying to correct that with some of the start-up activity we'll talk about later. As you see this, and then I went to Boston, 128, we were talking earlier, Wang Laboratories, the mini-computer era, but I was in IBM first out of the central part of the nation, so I watched IBM and Mainframes, and then I watched them miss on going to the mini-computer, and then miss in terms of the internet. So I was able to see the transitions that occurred in Boston, Route 128, where we were the Silicon Valley of the world, and we knew it, and this unusual area out in California called Silicon Valley, we paid almost no attention to, and we didn't realize we failed to make a transition from the mini-computer era to the pc and the internet era. Then I joined Cisco, and saw the internet era. So part of it is, you're a product of your experiences, and know the tremendous pain that occurs, because Boston 128 is nowhere near what it used to be, so there's no entitlement in this new world out of the thousand high-tech companies that I was associated with, including four or five giants in mini-computers, none of them are really in existence today, so it shows you, if you don't identify the transitions, number one, you're going to have an opportunity to benefit by them, but number two, you sure have an opportunity to get hurt by them. >> And you know, these waves also create a lot of wealth and value; not just personal wealth, but community wealth, and Cisco in particular had a good thing going for them, you know, TCP-IP was a defact-- not even a standard, it was a defacto standard at that time, IBM and these kinds of digital equipment corporations dominated the network protocol. Even today, people are still trying to take out Cisco competitively, and they can't because they connected the world. Now the world's connected with digital, it's connected with mobile, so we're kind of seeing this connected wave globally. How do you think about that, now that you've seen the movie at the plumbing levels at Cisco, you now have been traveling the world, we're all connected. >> We are. And it's important to understand that I'm completely arms-length with Cisco, it's their company to run now, and I'm excited about their future. But I'm focused on the next chapter in my life, and while I think about the people at Cisco everyday, I'm into the start-up world now, so how do I think about it now? I think most of the innovation over the next decade will come from start-ups. The majority of the top engineering students, for example, at a Stanford or an MIT or a Polytechnique in France, which is the top engineering school, I think, in Europe, or at the ITs in India, they are all thinking about going to start-ups, which means this is where innovations going to come from. And if you think about a digital world going from the time you and I, we almost recruited you to Cisco, and then we finally did; there's only a thousand devices connected then when Cisco was founded. Today there are about 20 billion devices connected to the internet; in the future, it's going to be 500 billion in a decade, and so this concept of digitalization combined with artificial intelligence, all of a sudden we'll get the right information at the right time to the right person or machine to make the right decision, sounds complex, and it is. And it's ability to do that, I think start-ups are well-positioned to play a key role in, especially in innovation. So while the first stage of the internet, and before that were all dominated by the very large companies, I think you're going to see, in this next phase of digitalization, you're going to see a number of start-ups really emerge, in terms of the innovation leaders, and that's what I'm trying to do with my 16 investments I've made, but also coaching probably another 50 uh, start-ups around the world on a regular basis. >> And the impact of outside Silicon Valley, globally, how do you see that ecosystem developing with the entrepreneurship models that are now globally connected in with these connection points like Silicon Valley? >> It will partially in parallel, partially, it's a new phenomenon. I sold the movie of Boston 128, as I said earlier, and on top of the world, and there is no entitlement. The same thing's true with Cisco, um, sorry, of Silicon Valley today; there's no entitlement for the future, and just because we've led up until this point in time, doesn't mean we will in 10 years, so you can't take anything for granted. What you are seeing, since almost all job creation will be from start-ups, and small companies getting bigger, the large companies in total will probably not add any head count over this next decade because of artificial intelligence and digitization, and so you're now going to see job growth coming from those smaller companies, if these small companies don't get a forum to all 50 states, if they don't get a chance to grow their head count there, and the economic benefits of that, then we're going to leave whole states behind. So I think it's very important that we look at the next wave of innovation, I think there's a very good probability that it will be more inclusive, both by geography, by gender, and all diversity measures, and I'm optimistic about the future, but there are no guarantees, and we'll see how it plays out. >> Let's talk about your next chapter. I was going to wait, but I want to jump while we're on the topic. JC2 is a global start-up, game-changing start-up focus that you have. What is the thesis? What are you looking for, and talk about your mission? >> Well, our mission is very simple. I had a chance to change the world one time with Cisco, and many people, when I said Cisco's going to change the way the world works, lives, learns, and plays by enabling the internet, everybody said nice marketing, but you're a router company. And yet, I think most people would agree, probably more than any other company, we had the leadership role in changing the internet and the direction going on, and now, a chance to do it again, because I think the next wave of innovation will come from the start-ups, and it doesn't come easy. They need coaches, they need strategic partners, they need mentors as much as they need the venture capitalists, so I would think of as this focusing on disruptive start-ups that get very excited in these new areas of technology, ranging from physical and virtual worlds coming together, to artificial intelligence and automation everywhere, to the major capabilities on cyber security across that to the internet of things, so we're trying to say, how do we help these companies grow in skill? But if I was just after financial returns, I'd stay right here in the Valley. I can channel anybody, VC's here that I trust and they trust me, and it would be a better financial return. But I'm after, how do you do this across a number of states, already in seven states, and how do you do it in France and India as role models? >> It's got a lot of purpose. It's not just a financial purpose. I mean, entrepreneurs want to make money, too, but you've made some good money over the years, but this is a mission for you, this is a purpose. >> It is, but you referred to it in your opening comments. When we were at Cisco, I've always believed that the most successful owe an obligation to give back, and we did. We won almost every corporate social responsibility award there was. We won it from the Democrats and the Republicans, from Condie Rice and George Bush and from Hillary Clinton and President Obama. We also, as you said, made 10,000 Cisco employees millionaires just in the first decade. And we tried to give back to society with training programs like Network Academies and trained seven million students. And I think it's very important for the next generation of leaders here in the Valley to be good at giving back. And it's something that I think they owe an obligation to do, and I think we're in danger now of not doing it as well as we should, and for my start-ups, I try to pick young CEOs that understand, they want to make a financial return, and they want to get a great product out of this, but they also want to be fair and giving back to society and make it a win-win, if you will. >> And I think that's key. Mission-driven companies are attracting the best talent, too, these days, because people are more cognizant of that. I want to get into some of your personal stories. You mentioned giving back. And reading your book, your parents have had a big role in your life--. >> Yes, they have. >> And being in West Virginia has had a big role in your life. You mentioned it having a prosperity environment, and then missing that transition. Talk about the story of West Virginia and the role your parents played, because, they were doctors, so they were in the medical field. The combination of those two things, the culture where you were brought up, and your family impacted your career. >> I'm very proud of being from West Virginia, and very proud of the people in West Virginia, and you see it as you travel around the world. All of us who, whether we're in West Virginia, or came out of it, care about the state a great deal. The people are just plain good people, and I think they care about treating people with respect. If I were ever run off a road at night in the middle of the night, I'd want to be in West Virginia, (both laugh) when I go up to knock on that door. And I think it carries through. And also, the image of our state is one that people tend to identify in terms of a area that you like the people. Now what I'm trying to do in West Virginia, and what we just announced since last week, was to take the same model we did on doing acquisitions, 180 of them, and say here's the playbook, the innovation playbook for doing acquisitions better than anyone else, and take the model that we did on country digitization, which we did in Israel and France and India with the very top leaders, with Netanyahu and Shimon Peres in Israel, with Macron in France and with Modi in India, and drove it through, and then do the same thing in terms of how we take the tremendous prosperity and growth that you see in Silicon Valley, and make it more uniform across the country, especially as traditional business won't be adding head count. And while I'd like to tell you the chemical industry will come back to West Virginia and mining industry will come back in terms of job creation, they probably won't, a lot of that will be automated in the future. And so it is the ability to get a generation of start-ups, and do it in a unique way! And the hub of this has to be the university. They have to set the pace. Gordon Gee, the President there, gets this. He's created a start-up mentality across the university. The Dean of the business school, Javier Reyes is going across all of the university, in terms of how you do start-ups together with business school, with engineering, with computer science, with med school, et cetera. And then how do you attract students who will want to really be a part of this, how do you bring in venture capital, how do you get the Governor and the President and the Senate and the Speaker of the House on board? How do you get our two national senators, Shelly Moore Capito and also Joe Manchin, a Democrat and a Republican working together on common goals? And then how do you say here's what's possible, write the press release, be the model for how a country, or a state, comes from behind and that at one time, then a slow faller, how do we leap frog? And before you say it can't be done, that was exactly what people said first about India, when I said India would be the strongest growing economy in the world, and it is today, probably going to grow another seven to 10%. That means you double the per capita of everyone in India, done right, every seven to 10 years. And France being the innovation engine in Europe to place your new business, you and I would have said John, no way, just five years ago, yet it has become the start-up engine for Europe. >> It's interesting, you mentioned playbook, and I always see people try to replicate Silicon Valley. I moved out here from the East Coast in 1999, and it's almost magical here, it's hard to replicate, but you can reproduce some things. One of the common threads, though, is education. The role of education in the ecosystem of these new environments seems to be a key ingredient. Your thoughts about how education's going to play a role in these ecosystems, because education and grit, and entrepreneurial zeal, are kind of the magic formula. >> Well they are in many ways. It's about leadership, it's about the education foundation, it's about getting the best and brightest into your companies, and then having the ability to dream, and role models you can learn from. We were talking about Hewlett-Packard earlier, a great role model of a company that did the original start-up and Lou Platt, who was the President of HP when I came out here, I called him up and said, you don't know me, Lou, I'm with a company you've probably never heard of, and we have 400 people, but I don't know the Valley, can you teach me? And he did, and he met with me every quarter for three years, and then when I said what can I do to repay you back, because at that time, Cisco was on a roll, he said John, do it for the next generation. And so, that's what I'm trying to do, in terms of, you've got to have role models that you can learn from and can help you through this. The education's a huge part. At the core of almost all great start-up engines is a really world-class university. Not just with really smart students, but also with an entrepreneur skill and the ability to really create start-ups. John Hennessey, Stanford did an amazing thing over the last 17 years on how to create that here at Stanford, the best in the world, probably 40% of the companies, when I was with Cisco, we bought were direct or indirect outgrowth of Stanford. Draw a parallel. Mercury just across the way, and this isn't a Stanford/CAL issue, (both laugh) equally great students, very good focus on interdisciplinary activities, but I didn't buy a single company out of there. You did not see the start-ups grow with anywhere near the speed, and that was four times the number of students. This goes back to the educational institution, it has to have a focus on start-ups, it has to say how they drive it through, this is what MIT did in Boston, and then lost it when 128 lost it's opportunity, and this is what we're trying to do at West Virginia. Make a start-up engine where you've got a President, Gordon Gee, who really wants to drive this through, bring the political leaders in the state, and bring the Mountaineers, the global Mountaineers to bare, and then bring financial resources, and then do it differently. So to your point, people try to mimic Silicon Valley, but they do it in silos. What made Silicon Valley go was an ecosystem, an education system, a environment for risk-taking, role models that you could steal people from--. >> And unwritten rules, too. They had these unwritten rules like pay it forward, your experience with Lou Platt, Steve Jobs talks about his relationship with David Packard, and this goes on and on and on. This is an important part. Because I want to just--. >> Debt for good is a big, big issue. Last comment on education, it's important for this country to know, our K through 12 system is broken. We're non-competitive. People talk about STEM, and that's important, but if I were only educating people in three things, entrepreneurship, how to use technology, and artificial intelligence; I would build that into the curriculum where we lose a lot of our diversity, especially among females in the third, fourth, fifth grade, so you haveta really, I think, get people excited about this at a much earlier age. If we can become an innovation engine again, in this country, we are not today. We're not number one in innovation, we're number 11! Imagine that for America? >> I totally agree with ya! And I don't want to rant and waste a lot of time, but my rants are all on Facebook and Twitter. (both laugh) Education's a problem. It's like linear, it's like a slow linear train wreck, in my opinion, but now you have that skills gaps, you mentioned AI. So AI and community are two hot trends right now. I'm going to stay with community for a minute. You mentioned paying it forward. Open source software, these new forms of operational scale, cloud computing, open source software, that all have this ethos of pay it forward; community. And now, community is more important than ever. Not just from the tech world, but you're talking about in West Virginia, now on a global scale. How does the tech industry, how can the tech industry, in your opinion, nurture community at local, regional, global scale? >> This is a tough one John, and I'd probably answer it more carefully if I was still involved directly with Cisco. But the fun thing is, now I represent myself. >> In your own opinion, not Cisco. There's a cultural thing. This is, Silicon Valley has magic here, and community is part of it. >> Yes, well it's more basic than that. I think, basically, we were known for two decades, not just Cisco, but all of the Valley as tech for good, and we gave back to the communities, and we paid it forward all the time, and I use the example of Cisco winning the awards, but so do many of our peers. We're going to Palestine and helping to rebuild Palestine in terms of creating jobs, et cetera. We went in with the Intels of the world, and the Oracles and the other players and HP together, even though at times we might compete. I think today, it's not a given. I think there is a tug of war going on here, in terms of what is the underlying purpose of the Valley. Is it primarily to have major economic benefits, and a little bit of arm's length from the average citizen from government, or is it do well financially, but also do very well in giving back and making it inclusive. That tug of war is not a given. When you travel throughout the US, today, or around the world, there are almost as many people that view tech for bad as they do tech for good, so I think it's going to be interesting to watch how this plays out. And I do think there are almost competing forces here in the Valley about which way should that go and why. The good news is, I think we'll eventually get it right. The bad news is, it's 50/50 right now. >> Let's talk about the skill gap. A lot of leaders in companies right now are looking at a work force that needs to be leveled up, and as new jobs are coming online that haven't been trained for, these openings they don't have skills for because they haven't been taught. AI is one example, IOT you mentioned a few of those. How do great leaders, proactively and reactively, too, get the skills gaps closed? What strategies can you do, what's the playbook there? >> Well two separate issues. How do they get it closed, in terms of their employees, and second issue, how do we train dramatically better than we've done before? Let's go to the first one. In terms of the companies, I think that your ability to track the millennials, the young people, is based upon your vision of doing more than quote just making a profit, and you want to be an exciting place to work with a great culture, and part of that culture should be giving back. Having said that, however, the majority of the young people today, and I'm talking about the tops out of the key engineering schools, et cetera, they want to go to start-ups. So what you're going to see is, how well established companies work with start-ups, in a unique partnership, is going to be one of the textbook opportunities for the future, because most companies, just like they didn't know how to acquire tech companies and most of all tech acquisitions failed, even through today. We wrote the textbook on how to do it differently. I think how these companies work with start-ups and how they create a strategic relationship with a company they know has at least a 50/50 probability of going out of business. And how do you create that working relationship so that you can tap into these young innovative ideas and partnerships, and so, what you see with the Spark Cognition, 200 people out of Texas, brilliant, brilliant CEO there in terms of what he is focused on, partnering with Boeing in that 50/50 joint venture, 50/50 joint venture to do the next FAA architecture for unmanned aircraft in this country. So you're going to see these companies relate to these start-ups in ways they haven't done before. >> Partnership and collaboration and acquisitions are still rampant on the horizon, certainly as a success for you. Recently in the tech industry we're seeing big acquisitions, Dell, EMC, IBM bought Red Hat, and there's some software ones out there. One was just going public and got bought, just recently, by SAP, how do you do the acqui-- you've done 180 of them? How do you do them successfully without losing the innovation and losing the people before they invest and leave; and this is a key dynamic, how do companies maintain innovation in an era of collaboration, partnerships, and enmity? >> I had that discussion this morning at Techonomy with David Kirkpatrick, and David said how do you do this. And then as I walked out of the room, I had a chance to talk with other people and one of them from one of the very largest technology companies said, John, we've watched you do this again and again; we assumed that when we acquired a company, we'd get them to adjust to our culture and it almost never worked, and we lost the people at a tremendously fast pace, especially after their lock-in of 18 to 24 months came up. We did the reverse. What we did was develop a replicatible innovation playbook, and I talk about it in that book, but we did this for almost everything we did at Cisco, and I would've originally called that, bureaucracy, John. (both laugh) I would've said that's what slow companies do. And actually, if done right, allows you to move with tremendous speed and agility, and so we'd outline what we'd look for in terms of strategy and vision; if our cultures weren't the same, we didn't acquire them. And if we couldn't keep the people, to generate the next generation of product, that was a bad financial decision for us, as well. So our attrition rate averaged probably about 5% or over while I was at Cisco for 20 years. Our voluntary attrition rate of our acquired companies, which normally runs 20% in these companies, we had about four. So we kept the people, we got the next generation product out, and we went in with that attitude in terms of you're acquiring to be able to keep the people and make them a part of your family and culture. And I realize that that might sound corny today, but I disagree. I think to attract people, to get them to stay at your company, it is like a family, it is like how you succeed and occasionally lose together, and how you build that family attitude under every employee, spouse, or their children that was life-threatening, and we were there for them in the ways that others were not. So you're there when your employees have a crisis, or your customer does, and that's how you form trust in relationships. >> And here's the question, what does People First mean to you? >> Well people first is our customer first. It means your action and everything you do puts your customers and your people first, that's what we did at Cisco. Any customer you would talk to, almost every customer I've ever met in my life would do business with us again, or with me again, because your currency in today's world is trust, track record, and relationships, and we built that very deep. Same thing with the employees. I still get many, many notes from people we helped 10 or 15 years ago; here's the picture of my child that you all helped make a difference in, Cisco and John, and you were there for us when we needed you most. And then in customers. It surprises you, when you help them through a crisis, they remember that more than when you helped them be successful, and they're there for you. >> Talk about failure and successes. You talk about this in the book. This is part of entrepreneurship, you can't succeed without failures. Handling failures is just as important as handling successes, your thoughts on people should think about that from a mindset standpoint? >> Well, you know, what's fun is those of you who are parents, or who will be parents in the future, when your child scores a goal in soccer or makes a good grade on a test, you're proud for them, but that isn't what worries you. What worries you is when they have their inevitable setbacks, everybody has that in life. How do you learn to deal with them? How do you understand how much were self-inflicted and how much of it was done by other causes, and how they navigate through that determines who they are. Point back to the West Virginia roots, I'm dyslexic, which means that I read backwards. Some people in early grade school thought I might not even graduate from high school much less go to college. My parents were doctors, they got it, but how I handled that was key. And while I write in the book about our successes, I spend as much time on when disaster strikes, how you handle that determines who you are in the future. Jack Welch told me in the 90's, he said John, you have a very good company, and I said Jack, you're good at teaching me something there, we're about to become the most valuable company in the world, we've won all of the leadership awards and everything else, what does it take to have a great company? He said a near-death experience. At the time I didn't understand it. At the end of 2001 after the dot com bubble, he called me up, he said, you now have a great company, I said Jack, it doesn't feel like it. Our stock price is down dramatically, people are questioning can I even run the company now, many of the people who were so positive turned very tough and--. >> How did you handle that? How did you personally handle that, 'cos--. >> It's a part of leadership. It's easy to be a leader when everything goes well, it's how you handle when things are tough, and leadership is lonely, you're by yourself. No matter how many friends you have around you, it's about leadership, and so you'd lead it through it. So 2001, took a real hard look, we made the mistake of focusing, me, on the numbers, and my numbers in the first week of December were growing at 70% year over year. We'd never had anything negative to speak of, much less below even 30% growth, and by the middle of January, we were -30%. And so you have to be realistic, how much was self-inflicted, how much the market, I felt the majority of it was market-inflicted, I said at the time it's a hundred year flood. I said to the employees, here's how we're going to go forward, we need to bring our head count back in line to a new reality, and we did it in 51 days. And then you paint the picture from the very beginning of what you look like as you recover and in the future and why your employees want to stay here, your customers stay with you and your shareholders. It wiped out most of our competitors. Jack Welch said, John, this is probably your best leadership year ever, and I said Jack, you're the only one that's going to say that. He said probably, and he has been. >> And you've got the scar tissue to prove it. And I love this story. >> But you're a product of your scars. And do you learn how to deal with them? >> Yeah, and how you-- and be proud of them, it's what, who you are. >> I don't know if proud's the right word. >> Well, badge of honor. (both laugh) >> Red badge of honor, they're painful! >> Just don't do it again twice, right? >> We still make the same mistake twice, but at the same time when I teach all these start-ups, I expect you to make mistakes. If you don't make mistakes, you're not taking enough risk. And while people might've, might say John, one of your criticisms is that you spread yourself a little bit too thin in the company at times, and you were too aggressive. After thinking about it, I respectfully disagree. If I had to do it over, I'd be even bolder, and more aggressive, and take more risks, and I would dream bigger dreams. With these start-ups, that's what I'm teaching them, that's what I'm doing myself. >> And you know, this is such a big point, because the risk is key. Managing risk is actually, you want to be as risky as possible, just don't cut an artery, you know, do the right things. But in your book, you mention this about how you identify transitions, but also you made the reference to your parents again. This is, I think, important to bring up, because we have an expression in our company: let's put the patient on the table and let's look at the problem. Solving the problems and not going out of business at that time, but your competitors did, you had to look at this holistically, and in the book, you mentioned that experience your parents taught you, being from West Virginia, that it changed how you do problem solving. Can you share what that, with that in conscience? >> Well, both parents were doctors, and the good news is, you got a lot of help, the bad news is, you didn't get a lot of self 'cos they'd fix you. But they always taught me to focus on the real, underlying issue, to your point. What is the real issue, not what the symptom is, the temperature, or something else. And then you want to determine how much of that was self-inflicted, and how much of it was market, and if your strategy's working before, continue, if your strategy was starting to get long in the tooth, how do you change it, and then you got to have the courage to reinvent yourself again and again. And so they taught me how to deal with that. I start off the book by talking about how I almost drowned at six years of age, and as I got pulled down through the rapids, I could still see my dad in my mind today running down the side of the river yelling hold on to the fishing pole. It was an ugly fishing pole. Might've cost $5. But he was concerned about the fishing pole, so therefore I obviously couldn't be drowning so I focused both hands on the fishing pole and as I poked my head above water, I could still see him running down. He got way down river, swam out, pulled me in, set me on the side, and taught me about how you deal when you find yourself with major setbacks. How do you not panic, how do you not try to swim against the tide or the current, how you be realistic of the situation that you're in, work your way to the side, and then you know what he did? He put me right back in the rapids and let me do it myself. And taught me how to deal with it. Dad taught me the business picture and how you deal with challenges, Mom, uh, who was internal medicine, psychiatry, taught me the emotional IQ side of the house, in terms of how you connect with people, and I believe, this whole chapter, I build relationships for life. And I really mean it. I think your currency is trust, relationships, and track record. >> And having that holistic picture to pull back and understand what to focus on, and this is a challenge for entrepreneurs. You're now dealing with a lot of entrepreneurs and coaching them; a lot of times they get caught in the forest and miss the trees, right? Or have board meetings or have, worry about the wrong metrics, or hey, I got to get financing. How should an entrepreneur, or even a business leader, let's talk about entrepreneur first and then business leader, handle their advisors, their investors, how do they manage that, how do they tap into that? A lot of people say, ah, they don't add much value, I just need money. This is important, because this could save them, this could be the pole for them. >> It could, or it could also be the pole that causes the tent to collapse (both laugh). So I think the first thing when you advise young entrepreneurs, is realize you're an advisor, not a part of management. And I only take young entrepreneurs who want to be coached. And as I advise them, I say all I'm asking is that you listen to my thoughts and then you make the decision, and I'll support you either way you go, once you've listened to the trade-offs. And I think you want to very quickly realize where they are in vision and strategy, and where they are on building the right team and evolving the team and changing the team, where they are in culture, and where they are on their communication skills because communication skills were important to me, they might not have been to Jack Welch, the generation in front of me, but they were extremely important to ours. And today, your communication mismatch on social media could cost your company a billion dollars. If you're not good at listening, if you're not good at communicating with people and painting the picture, you've got a problem. So how do you teach that to the young players? Then most importantly, regardless of whether you're in a big company or a small company, public or private sector, you know what you know and know what you don't. Many people who, especially if they're really good in one area, assume that carries over to others, and assume they'll be equally as good in the others, that's huge mistake; it's like an engineer hiring a good sales lead, very rarely does it happen. They recruit business development people who appeals to an engineer, not the customer. (both laugh) So, know what you know, know what you don't. For those things you don't know, surround yourself with those people in your leadership team and with your advisors to help you navigate through that. And I had, during my career, through three companies, I always had a number of advisors, formal and informal, that I went to and still go to today. Some of them were very notable players, like our President Clinton or President Bush, Shimon Peres, Henry Kissinger, or names that were just really technical leads within companies, or people that really understood PR like Thomas Freedman out of the New York Times, or things of that. >> You always love being in the trenches. I noticed that in Cisco as an observer. But now that you're in start-ups, it's even more trenches deeper (laughs) and you've got to be seeing the playing field, so I got to ask ya a personal question. How do you look back at the tech trends that's happening right now, globally, both political, regulatory technology, what advice would you give your 23-year-old self if you were breaking into the business, you were at Wang and you were going to make your move; in this world today, what's going on, what would you be doing? >> Well the first thing on the tech trend is, don't get too short-term focused. Picture the ones that are longer term, what we refer to as digitization, artificial intelligence, et cetera. If I were 23 years old, or better yet, 19 years old, and were two years through college and thinking what did I want to do in college and then on to MBA school and perhaps beyond that, legal degree if I'd followed the prior path. I would focus on entrepreneurship and really understand it in a lot more detail. I learned it over 40 years in the business. And I learned it from my dad and my mom, but also from the companies I went into before. I would focus on entrepreneurship, I'd focus on technology that enables entrepreneurship, I would probably focus on what artificial intelligence can do for that and that's what we're doing at West Virginia, to your point earlier. And then I would think about security across that. If you want really uh, job security and creativity for the future, if you're a really good entrepreneur, with artificial intelligence capability, and security capability, you're going to be a very desired resource. >> So, we saw you, obviously networking is a big part of it. You got to be networking with other people and in the industry, would you be hosting meet ups? Young John Chambers right now, tech meet ups, would you be at conferences, would you be writing code, would you be doing a start-up? >> Well, if we were talking about me advising them? >> No, you're 23-years-old right now. >> No, I'd just be fooling around. No, I'd be in MBA school and I'd be forming my own company. (both laugh) And I would be listening to customers. I think it's important to meet with your peers, but while I developed strong relationships in the high-tech industry, I spent the majority of time with my customers and with our employees. And so, I think at that age, my advice to people is there was only one Steve Jobs. He just somehow knew what to build and how to build it. And when you think about where they were, it still took him seven years (laughs). I would say, really get close to your customers, don't get too far away; if there's one golden rule that a start-up ought to think about, it's learning and staying close to your customers. There too, understand your differentiation and your strategy. Well John, thanks so much. And the book, Connecting the Dots, great read, it's again, not a business book in the sense of boring, a lot of personal stories, a lot of great lessons and thanks so much for giving the time for our conversation. >> John, it was my pleasure. Great to see you again. >> I'm John Furrier here with the People First interview on theCUBE, co-created content with Mayfield. Thanks for watching! (upbeat electronic music)