 Live from the Sands Convention Center in Las Vegas, Nevada, it's The Cube at AWS ReInvent 2014. Brought to you by headline sponsors, Amazon and Trend Micro. Welcome back everyone, we're live in Las Vegas for Amazon ReInvent Conference at The Cube. Second year in a row, we're on the ground getting all the data, blanket coverage, we love his shotgun approach. A ton of action to talk about. The place is packed. I'm here with Stu Miniman, my co-host. I'm John Furrier, the founder of Silicon Angle. Our next is old Daphne, who is the CEO of CloudNexa. Got you on The Cube again. Welcome back. Thank you, John. So you guys are the premier partner of the year, which is a great honor with Amazon. Obviously their Amazon partners really are very selective. They're very picky. I mean, people know. I mean, I know Amazon, no Andy. They're not a partner. Like partnering with everybody. They don't do a lot of Barney deals. They're very selective. They're very much a technique company. Give us the update. What's new this year? You were involved in the early beta of config one of their top announcements today. Full stack in the cloud, integrated stacks, the consumption patterns. These are the themes. Now we're hearing high reliability databases. Give us the update on what you guys are doing and your role in the show. Yeah, well, we were named another premier partner again for 2015. We're really excited about that. We never really know until it actually happens. And it's a little bit of a nail biter, but we're really excited to be welcome back into that select group of partners. As you mentioned, the AWS config was announced today. And we're happy that we participated in the private beta with Amazon and now have functionality available in our core product offering that we call VNOC. VNOC's a cloud management solution. And by the way, we received notification from the US Patent Office last year. We received the patent for our cloud management solution as well. So we're really excited about that. So a lot of the theme here, we interviewed the guys from GitHub yesterday. You're seeing the onboarding cloud, obviously auditing, you're seeing some coolness there. There's no perimeter in the cloud. A lot of chaos, a lot of opportunities. Share the folks out there. What is the paradigm that you guys are executing on? Because the cloud does bring up a new consumption pattern for your customers and cloud consumers. What has that done for the business side of it? As I'm a CIO or a mid-market business, I just want to turn on services, make sure I don't get hacked, making sure I get some code out there, I have a mobile app, whatever those things are, it's changing. What's your premise of your business? Well, the best reference is Gartner's born in the cloud. And it's truly a group of vendors that have embraced utility-based solutions that deliver their solution in a utility model. And we help customers consume AWS services much easier in that, you know, look, if you're moving to the cloud for the first time, you might not be sure that it's the exact right solution for you. And when you have a utility-based solution just like with Amazon, you turn it on, you turn it off, you try it, you're going to love it. But we just stand behind that and we align with you to make sure that this solution is going to work for you. You're not going to spend a lot of money in the process to get there. So we call it cloud management as a service. And I think it's just characteristic of most born in the cloud companies. We define ourselves more about what we don't do and put a really tight fence about the services that we provide to our customers to make sure that they're successful. So, you know, as such, we've developed our own little partner ecosystem with partners that also mimic our utility model. For example, this year we released a premium tier offering. You might not have heard this, but Sumo Logic, AppDynamics and Trend converted their price models into utility pricing on top of our managed services offering. And this is wonderful for customers because, again, it gets them into the cloud and it gets them there and tracks their spending and usage on exactly what they need. So people are cobbling together the services. It's a Lego block kind of concept, really. I mean, we're back there, the good old Lego blocks. Best of breed. You guys have a lot of professional services and they all turn key as a service, self-service. That all amazed. I am proud to say we have zero professional services. Zero professional services. We are... High margins. It's good leverage. Yeah. No professional services. Everything is based on consumption and the management of... So in your ecosystem, you must push out people to enable those services. Is that part of your added value besides the utility-based kind of self-service? Well, you know, a lot of times customers will come to us and they have app modernization concerns or they have application development issues or they have, you know, compliance is a big thing. We talked about compliance and the inroads that AWS has made, both on the public sector and the commercial side, on compliance. Well, I mean, there's a specialized group of professionals that can do compliance audits. We recently announced a relationship with cloud technology partners out of Boston and we turned the cloud to TP for a lot of that work and we, in turn, were doing a lot of their managed service management services for their customers. Awesome. Pack for us, you know, what is, you know, what does AWS Config mean to users out there and how do you differentiate through your integrations compared to the others that are supported such as Splunk Service Now and Cloud Checker? Well, with AWS Config, it's a new service and we've simply built a UI around AWS Config. It's a very powerful tool. It's going to give our customers much more visibility and historically what's been going on. I think there's change management implications. And you can really get a good topographical view of what's going on with your environment. So, it's a feature, actually. We bundle AWS Config along with three other services offerings into our free Venoct here. So, even if you don't want to be a Cloud Next Managed Services customer, you can come to us and you can get the AWS Config UI capability at no cost. And I encourage if you're here at the event to come over to the booth, sign up for it. If you're watching globally, visit our website and sign up. All right, so you also cover some government customers. I'm curious, has the CIA deal that Amazon's done had any noticeable impact on your business? You know, that's really exciting. I've had the opportunity to watch that develop firsthand and it absolutely has had a big impact on customers' level of comfort with the security that AWS has native to their solution. We've done work, for example, with United Nations as one of our customers. And last year, after WikiLeaks, there was a lot of nervousness. And I think with the signing of the CIA deal, it's really quenched a lot of those concerns. It made a lot more people comfortable about AWS's security capabilities. Yeah, I think Amazon, certainly this year, is really flexing their muscle, but certainly not putting the gloves on yet. And I think it's really exciting in the enterprise because we know they're all going there. We said it last year. That's why I like you, you're a fighter. Just like me. I love it. Take off the gloves. It's the East Coast thing. You're in Philly, right? That's right. You've got to be able to handle yourself in public. That's why I'm good at Twitter, because I'm not afraid to say things and to follow my sword. But Chassis is pretty competitive and he's got that fire in his belly. I mean, they're on a mission. It really is. It feels like what Intel was in the early days. You're seeing this new categorical shift and inflection point coming together and they're not stopping. They're really just more about the tsunami coming in. The question is, how much turf do they take into the beach and the land? How much water comes in on the enterprise? So we always say, who's going to put the seawall up? EMC, VMware, IBM? At what point, what do the enterprise guys have to do? Certainly Oracle has put on notice today with the database. Now, I find it ironic that my sequel is only my Oracle. So, I mean, we'll see. Job not done until Amazon doesn't run. That's kind of old Microsoft philosophy. Will that be a weirdness there? So all this stuff is so much fun to cover. What's your take on it? I mean, how much is Amazon going to win right now in the enterprise? In terms of real adoption, certainly my test and dev, I mean, I can't believe you brought that up in the keynote. Because that's like, I mean, that's so 2008. But now you're starting to see workloads, you see migrations. What's your analysis on that? Well, we have a rather jaded view. We are deep in the flow of AWS opportunities. And the way we've positioned CloudNexa, we're typically seeing customers who have already made that commitment to move to the AWS platform. And we're solving problems for them in terms of the management of those solutions. Which one, which problems you guys knocked down first? What's the low end group? Well, you know, when customers have moved from traditional data centers, you know, they've got those sysadmins that are operating those boxes for them and keeping everything running. They moved to a virtual environment, especially AWS. A lot of those core services are gone, yet, you know, they still need it. So, I mean, that's the gaps we feel. And when we talk to enterprise customers especially, it's sometimes it can be quite painful because they want to move as rapidly as we try to move our customers. But they're still bogged down in the traditional processes. You know, they have to get through the syso and the networking and the storage groups. And, you know, it just comes together. Now, I think it's moving a lot faster than what happened in the past. It certainly is. But you still have to jump through those hurdles. And in the enterprise side, especially, Amazon has now stepped up, really flexed their muscles and say, hey, you know, AWS is enterprise great. You know, for enterprise customers for CloudNexa, it only represents about 20% of our total market. Most of our customers are mid-market customers. Even in the government sector, we tend to focus on NGOs, non-government organizations, nonprofits. And these firms are more conducive to rapid adoption. So, I still think there's challenges. I love the classic, you know, investor or presentation. Who do you target? Tell me who the buyer is. So, you bring up a good point. You mentioned mid-market. Okay, that's clearly how you're consumed. But a lot of the land and expand cloud-based technologies are value-driven, meaning you can consume it any way you want. So, it's really, if a large enterprise wants to standardize on your stuff, it's not like they're not the target, right? I mean, so, but they buy in a shadow IT-like way, which is, hey, this department, or this is my focus, my data center, my knock or whatever, I have an objective. I can buy it that way or I can go company-wide. Do you guys have that same approach? Yeah, I mean, you're seeing more business-driven solutions outside core IT. That's very typical. And when we do have an enterprise that we're approached by the C-level suite, and they're talking like a business, like a business sponsor, then we know that's a customer that we can really get behind and work with. And it's rare. You don't see that as much. I think it's happening more and more. And I think most of the big enterprises that we've been engaged with have been direct business-led opportunities. And I think Gartner covered that yesterday as well in some of the presentations. I think Tiffany pointed out maybe 45%, don't hold me to that, but I think it's something like 45% of the moves were driven by business within the enterprise. All right, Joel, can you take us into what are the security discussions you're having today? The kind of story on Amazon has been, it can most of the time be better security than what you have in-house when you were doing it, but their security is their security and Amazon does not really change for it. Obviously, they're adding a lot of new services like the key management pieces. What are you seeing in the field? Is this a challenge or impediment for users or have they kind of gone over the inflection point or bought into public cloud security? Well, first off, the announcement on the key management is huge. And we're going to have to read into that and really begin to understand what that means. Well, we can already foresee that's going to have a big impact on our business alone. So is that one that your customers have been asking for? Well, we've been asking for for sure. This part of the managed service is offering. So that's going to be huge for us. So is that a new revenue opportunity for you then? No, absolutely not. It just means more efficiency and better service to the customers. You know, an interesting, I had mentioned the United Nations earlier and we think about security in terms of our own frame of reference and I had the opportunity to be in front of the individuals from the World Refugee Agency and they talked about security and what it means. So it really depends on where you're sitting and what security actually means, but you know, they said, well, look, if you have a security breach, I mean, somebody's credit card gets swiped. If World Refugee has a World Refugee Organization as a security means, it means a real live person and one of our refugees camps is in peril. So, you know, we really do take security very seriously and we've been able to handle our customers' concerns with the capabilities of the AWS. Joel, I got to ask you. So you guys are certainly close to the disruptive force. I'm not sure if I want to call them the evil empire yet or the good guys or bad guys. No one knows. I like what they're doing. I see we're a customer of Amazon with our CrowdChat product. I just love what the team's done. It's been fantastic to watch. I think it's going to be a revolution. So I got to ask you, you know, take your CEO hat off of your company and share with the folks what's the coolest thing about Amazon this year at Reinvent? What's the coolest thing you've seen? What's the vibe? What's it like here? People who aren't physically here can't feel the energy. They may not be able to connect the dots on the massive disruption. Yeah, I mean, it's just grown so much and there's so much acceptance and I think the general vibe now is it has tipped. There's no doubt about it. The amount of energy here being displayed around cloud adoption and some of the discussions are not about like if, but hey, we're doing this and how can we do it better? How can we consume more? What else can we open it up to in our company? And those are the types of discussions we're having now. A couple of years ago, you were just hearing the discussions about what we're thinking about and now the discussions are what we're doing and we want to do more. And then picking up some pretty big round. Security, a lot of the service they're doing around auditing and compliance, really big, kind of boring details at our table stakes for the enterprises. Yeah, I mean, again, we're focusing on mid-market so fortunately our customers give us a little more leeway with that but when we get into the enterprise customers, yeah. I mean, it's definitely, you're seeing that pan out. You saw Johnson & Johnson present today and they're a great customer from Amazon and into it certainly on the financial services side and you're going to see more and more non-traditional businesses. I mean, look, the Phillips announcement, you know, I have a healthcare background by prior to being in IT and wow, that is just, that's incredible to think about the possibilities that present itself to traditional healthcare IT companies and what they can now deliver to consumers. I thought the keynote with the MLB being cool play, entertainment to serious life-saving was really nice perspective. And the analysis of the double play and learning not to slide, something we've all learned since kids but now seeing that graphically represented in real time. The data doesn't lie, truth in crowds, truth in the data. Joel, great to see you again. Thanks for coming on theCUBE. Congratulations on your success. We'll give you the final word. Just share with the folks what's your business objectives this year? What are you working on? You onboarding more employees, closing more business? What's the update on the company? Yeah, absolutely. Well, happy to report for 2014. We're actually tracking close to 1,000% for customer, new customer increases. That's an amazing number and I think that's really indicative of how cloud is growing and we're looking to at least match that in 2015 and maybe beyond. We're also expanding some service locations into the Austin market diversifying from our Philadelphia location. So, we're looking forward to 2015 being another great year for us. Well, congratulations. Certainly, there's a rush of options here. Water skiing behind the wake of Amazon's new opportunities. This is the new normal, as they're saying. This is theCUBE. Of course, we're extracting the signal from the noise. We'll be right back for this short break. Live wall-to-wall blanket coverage here in Las Vegas. Live at Amazon, reinvent this theCUBE. We'll be right back.