 From the CUBE studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is a CUBE conversation. Hello everyone, welcome to this special CUBE virtual coverage of AWS Summit 2020 online. This is the AWS Summit that has now moved from a physical event to a digital event, a virtual event, it's all online. Of course, the CUBE normally at the summits are virtual as well. We have an all day program of CUBE coverage here from our Palo Alto studios with our quarantine crew, great team who's been sheltering in place for the past two and a half months, as well as our team in Boston with Dave Vellante and Stu Miniman. The CUBE is virtual because we have to be and we are going to be continuing doing more coverage. We're going to continue to do that with all the other big events in the enterprise and emerging tech business. Stu and Dave are going to join me. Hey John, good to see you, thank you. Stu, we're going to do a segment later on more of a breakdown of some of the news and the highlights. We've got Matt Garmin coming on who's the new vice president of sales and marketing. He ran EC2, he now reports to Andy Jassy. He's running the field. We've got Sanjay Poonan, the chief operating officer at VMware coming on as well. And then we've got a customer and then we've got a slew of great guests, Swami, Dave Brown who now runs EC2, the GM of analytics. Stu, are you going to do a segment with Corey Quinn, which should be fun? And Dave, of course, you're going to do a breaking analysis to end the day. And we've got a lot of other great content on the CUBE.net, check it out. Guys, let's just jump into it. AWS is really feeling all the pressure as all the Cloud guys are. Everyone's working at home, the Cloud is on the front stage of the world in terms of delivering capacity, compute, everything else. And now they've got to run a digital event. So pretty crazy times. What do you guys think, Dave? What's your thoughts? Stu. So, John, you want me to, yeah, let me jump in there. So really impressive watching Werner Vogels. First of all, last year I saw him up on stage at the New York City Summit. Of course, we'd seen him on stage at Reinvent Mankind, but well produced, really looks good. Challenging to have that keynote feel when you're sitting at home, but they did a nice job of editing. They put them up on a big white space here. But what Werner talked about is the scale of Cloud. This is what they've been building for. You never know when you're going to have a Cyber Monday. And I just need to be able to scale. He talked about examples like Netflix, more than doubling, how many minutes they're doing, and walking through all the ways that Amazon is stepping up. Something we've been looking at, close days been digging into the analysis here. Public Cloud is being put under the spotlight right now. Can they react? And Amazon, to their credit, is doing a real good job of not been hearing any challenges. They're not leaving their customers behind. They're having lots of people coming and wanting more. I've been looking at people, yeah. I want to dig into that a little bit later in terms of uptime and high availability. The table stakes right now in this new virtualized world of living and working at home, competing with life, is what services stay up the most? Which ones are failing? The staffing level's there. Are they dealing with the remote workforce? All these things are going to impact the Cloud. But ultimately, what we're talking about now is who's really leading this? Dave, you and I have been riffing on this around who really has the market share lead and what the numbers are. Clearly, Amazon is winning. The numbers all point that way. Some people even have Microsoft ahead of Amazon. I don't know how they get there. But bottom line, Microsoft is catching up. But what is the real lead? What's the market share numbers look like? What are you finding in the research that we're doing? Well, as you know, John, we've been tracking this for a while now and all three companies, the big three, Amazon, Google and Microsoft, just reported. And we actually have some data on this, guys, if you could maybe share that with our audience. But we saw this last quarter. The reason why, John, that people, some maybe people have Microsoft ahead is because they bundle a lot of the stuff into their intelligent cloud. And it includes GitHub, Azure Stack, hybrid, private. It includes services, and oh yeah, by the way, Azure. But nonetheless, they give us some clues as to what Azure looked like. So this is our estimate of infrastructure as a service and platform as a service. Both Google and Microsoft sort of hide the ball a little bit on the pure play. Amazon very cleanly provides that guidance. And so you could see here, I guess the key points are, like you said, Azure and GCP are growing faster than Amazon, Amazon is much bigger. I would say though, if you go back to 2018, Amazon was well over 2X, Azure, 2019, it was just kind of around 2X. You're seeing that now with the trailing 12 months. And this last quarter, dip into a little bit below. So you are seeing Azure close that gap. But as I say, the numbers are fuzzy. So you have to do your best to squint through them. I read 10 Ks till my eyes bleed. So you don't have to. Stu, what are you hearing in terms of uptime? Azure had some fails, Google had some fails, but you're starting to see the clouds starting to differentiate. You see Google doing much more vertical focus. They're obviously going after retail. That's an easy one. Microsoft with Office 365 doing well on the enterprise. The numbers are there. What's your thoughts on the reliability and uptime? Yeah, so John, first of all, Amazon not hearing any reports of issues there. As you noted, where Microsoft and Google going after Amazon, where they can. So retail is an obvious one. The ecosystem, how well can they partner with companies? Because the fear of many companies is, if I partner with Amazon, are they going to come after my business? So when I looked at the online events, John, I got a sneak peek last night for the Asia Pacific region. I kind of logged in as if I was from Australia or New Zealand. They have regional partner things set up. So once again, Amazon, huge global presence, doing a really good job there. And as Dave showed in the numbers, while Azure and Google have much higher growth rates, if you just look at raw numbers, Amazon's just adding another Google Cloud like every quarter to their revenues. So it is still Amazon in the clear lead out in front. You know, I think it's important to point out that the clouds have different capabilities. You know, Microsoft put out a blog just very recently saying that it was going to prioritize some of the essential businesses, you know, some of the healthcare workers and several others that were quote unquote essential. So if you're one of those essential business, they were going to sort of allocate capacity toward you. So they're clearly having some scaling issues and they're somewhat using the COVID-19 pandemic as a bit of a heat shield there. Oh, by the way, they're prioritizing teams as well for the work from home. So it's caveat empty there, as I said in my breaking analysis. I mean, you know, unless you're one of those sort of priority customers and maybe even if you are, you might want to sort of be careful as to what you're actually running in Azure. At the same time, you know, clearly Microsoft's doing well. It's got a lot of spending momentum for its platform. And so that's undeniable. A lot of workloads are kind of good enough. Yeah. And I think just to put a quick plug if you're watching this segment now, Dave will do a breaking analysis at three o'clock on our stream here. Of course, it'll be on demand on theCUBE.net as well as YouTube. Guys, I want to get your thoughts on some of the hot spots here. Usually around this time, Amazon comes out and shows a lot of GA, general availability, a lot of stuff they announced that reinvent. So Kendra is going general availability as well as some other services. But one of the things that was interesting to me, I want to get your thoughts on it because I held the processor in my hand. Jassy tweeted about yesterday, the new ARM EC2-M6G which is their Graviton 2 processor. It's like super small. This has really been the competitive edge for Amazon's performance. The stuff that they're doing now is they're lowering the cost and increasing the performance. That's their Amazon law. That's what they do. So you got the processor, you got analytics. You start to see these GA's. Can you squint through some of the announcements and try to get a feel for where this is going? Obviously it's machine learning. If I'm an enterprise, I got to make some tough calls right now because I got to double down on the projects that are working that are going to get me through the pandemic and then a growth trajectory. And I got to get rid of the people and the projects or redeploy them quickly. This is going to impact positioning and ultimately revenues. I mean, I think if you look at the edge specifically and you think about ARM, I think what Amazon's got right is they're not just throwing traditional, you know, data center boxes over the fence to the edge and saying, okay, here you go, data center in a box. What they're doing is they're sort of rethinking it and realizing that you're going to have real-time workloads running at the edge, processing very, they have to be very efficient and very inexpensive. So that's where ARM fits. And I think, you know, you're going to have to be able to do the processing at the edge, much of the data, if not most of the data is going to stay at the edge. And it's not a traditional processing architecture. New architectures are going to emerge. David Flurry calls these things matrix workloads. He's written a lot about it. And it's just a whole new way of thinking about computing architectures. And really the edge is going to be driving that. Stu, I want to get your opinion on something. And David, you can weigh into that. That'd be great. You know, I was watching a little bit of the Down Under APAC stuff yesterday, Stu, as well. And I saw Ben Kaps, one of our friends, CUBE alumni and co-host helps us out. He lives in New Zealand. He brought a couple of interesting things I want to get your thoughts on. This is more of a community angle. Andy Jassy's been with Amazon for 23 years. Ben mentioned the cloud a rod. He's still going back, you know, thinking about cloud was 2008 around that timeframe. There was only a small cast of characters talking about what was going on. And finally he mentioned the point about Jassy's keynote, a fireside chat he mentioned. One-way door decisions versus two-way door decisions. The former cannot be undone, hence need to be thought over. So you start to see Jassy 23 years of experience. You get the cloud a rod, the kind of ecosystem influencers that are out there that we all know. We've been covering this for that long of a time. And then you got this notion of the two-way door. You're starting to connect the dots here on what's going on. You start to see a maturation of AWS. But not only that, the community. The truth is out there. And it's interesting to see how this plays out in terms of how they talk about the information as we're all on virtual online. Who are the experts? Who are the YouTubers trying to get a flash in the pan? What's the real story? The data, the misinformation that's flying around. There's a ton of that going on. We're going to see more of it with virtual. But you got the experience in the table with Amazon and the community, your thoughts. Yeah, so John, absolutely it's about, you need to have optionality. We know that things change really fast. 2020, key example of having to react to things that I weren't prepared for. Dave was just talking about edge computing. What I need to succeed in edge is very different from how I was attacking cloud before. So is Amazon a walled garden? Everything goes in, hotel California, that it was attacked for years? Or are they going to be flexible? You see Google and Microsoft really trying to attack Amazon here. Many of us that are proponents of open source have attacked Amazon for years. They've hired some really good people, of course, Adrian Cockruff a couple of years ago. Peter Ulander more recently, they've even hired some people from Red Hat and the Linux Foundation. So getting involved in open source and they've been leading some of the efforts when you talk about edge. But emerging technologies like serverless and edge computing, is it the Amazon way or everything else? Or will they play in an open ecosystem? Will they allow things to be more flexible? We've talked for a bunch of years, they really softened on their hybrid stance. In 2020, will Amazon soften on their multi-cloud stance? Especially if you start throwing in where edge fits in this environment. They can't be a one way ladder to everything to the public cloud. We know it needs to be a diverse environment. And therefore, that community and ecosystem wants to play with Amazon, but also wants a mature and competitive marketplace. We've all seen what happens when there's a monopoly or duopoly out there. It's not good for innovation. It's not good for the customer's long-term. Dave, the reality of the marketplace is changing. Customers are going to be virtualized in their world, literally, physically and digitally. How the work's going to get done is to mention open source when it's probably see a revolution of new applications. Cambrian explosion of new kinds of capabilities, new demands, new expectations. There's going to be favored here for the people who have the steep learning curve who have those, has that trajectory. And as Amazon says, you know, there's no compression algorithm for experience. This is a real kind of nuanced point, but it's going to expose for the next year, who's got the juice in the marketplace? Your thoughts? Well, Warner Vogels today talked about, he said there's a shift, a fundamental shift going on. And he sort of referring to COVID-19 is not just about the technology, but it's about how we access applications, how we build applications. And Amazon is clearly making some bets and betting on data, we know that. And they're also betting on video because they know that's where a lot of the data come from. And when you talk about who's got the experience, I mean, clearly Amazon is seeing a huge, you know, demand for video services. And we're seeing a giant disruption in content distribution networks. And Amazon, I think, is at the heart of that. So I mean, it's, you know, it was interesting to see him doubling down on that, talking about the whole workflow. So I think in terms of, you know, experience, obviously, Amazon, they're going to, that's one of their, you know, clear sweet spots, but there are obviously others. You know, I've heard the term reinvent many times in the past couple of months, especially during the COVID crisis. And it wasn't in context to the Amazon show. There's a real reinvention going on in the marketplace in enterprises and small, medium-sized enterprises. To every business, they have to rethink and reinvent what they're doing to get a growth trajectory. And traditionally, if you look at these crisis 2008, companies that came out on the upswing became real master, master class examples of growth. And a lot of people who weren't prepared, flat-lined or dropped off. So we are in this point, even theCUBE, we're digital, we're virtual, we're rethinking it. We're open to new ideas. There's going to be an experimentation phase at the same time, how do you leverage what's out there? This is going to be an opportunity for the cloud guys. What do you, how do you guys react to all that? Well, the last downturn was good for cloud. And Stu, we've talked about how this one certainly is shaping up to be a tailwind as well for cloud. Cloud is doing better than others. I think Gartner put out a stat today. They've seen like a 5x increase and increase around cloud, not surprising. Companies that previously wouldn't even think about cloud now really have no choice. Guys, we've got to cut it there. We've got a clock here. We've got all day with theCUBE, CUBE Virtual, AWS Summit Online. Check out, they got a big portal, it's complicated. A lot of education going on there. It's the classic Amazon Summit. We've got great interviews. Guys, we've got a great interview coming up next with Matt Garmin, who's the new senior vice president or vice president of sales and more. He runs all the field, public sector, both of those areas under massive growth opportunities. So we're going to hear from him. Thanks for coming on guys. Really appreciate it. Good to see all of you as well in Boston. And thanks for the insight. So we'll be right back with more CUBE coverage after this short break. And Matt Garmin, up next.