 Live from San Francisco, it's theCUBE. Covering Google Cloud Next 2018. Brought to you by Google Cloud and it's ecosystem partners. Hello, everyone, welcome to theCUBE here. Live in San Francisco at Moscone South. We're here with Google Cloud Next conference. Google Next 2018's theCUBE is exclusive. Three days of wall-to-wall coverage. I'm John Furrier with my co-host Dave Vellante. Jeff Frick's here, the whole team is here. This is a big breakout moment for Google Cloud and we're going to break it down for you. We're going to have interviews with Diane Greene coming in today, Google executives, Google's top women in the cloud, top customers and top people within the ecosystem. Google Cloud has really gone to the next level. This show is really about a coming-out party for two years of work that Diane Greene and her team have been doing. Transforming Google from the largest cloud for their own business to making Google Cloud consumable and easy to use with the technology for large enterprise customers, as well as developers around the world, the global platform. Dave, we had the keynote here. Obviously Google, we're seeing introduce their Google Cloud service platform, GCP certifying partners, Cisco announced on stage. They are reselling Google Cloud, which takes a big objection off the table around not having a quote enterprise-ready sales force. Google is in every large enterprise. Google's cloud is morphing into a large-scale technology-driven cloud. The number one advantage they have is their technology, their open source, and now a partnership with Cisco and all the machine learning, all the infrastructure that they have are bringing out a new look. This is Google's coming-out party. This is really two years of hard work that Diane Greene and the team have accomplished. Working, bringing on new people, bringing on a whole new set of capabilities, checking the boxes for the table stakes, trying to get into pole position for the cloud game. Obviously, Amazon is significantly ahead of everybody. Microsoft making great progress. Their stock is up. Microsoft, although leveraging their core competency, the enterprise and the office and all the existing business that they do. Again, a B2B. Google bringing an end-user-centric view with all the automation. Big announcements. Google Cloud services platform. Istio is now shipping in production, doubling down on Kubernetes. This is Google looking at new abstraction layers for developers and businesses. Diane Greene, not the most elegant Nerkinos, but really hitting all her marks that she needed to hit. Big customer references and really showcasing their competitive advantage, what they want to do. The posture of Google Cloud is clear. Next is the execution. So we're here at Google Next, 25,000 registered people. It's a big crowd. Diane Greene said on stage, 3,000 engineers here. We want to talk to you. The Cisco announcements, classic case of a company without a cloud, wanting to partner up with somebody that has a cloud, Google, and Google without a big enterprise sales presence. Obviously, Cisco brings that. So kind of match made in heaven. Obviously, Cisco's got relationships with other cloud providers, particularly Microsoft. But to me, this makes a lot of sense. It's going GA in August. You also saw underneath that GKE, Google Kubernetes Engine, now it's on-prem. So you're seeing the recognition of hybrid. We heard Diane Greene talk about two years ago when she started, John. She's got a lot of heat from the analysts. You're not really an enterprise company. You got a long way to go. It's going to take you a decade. She basically laid down the gun and said, we are there. We'll talk about that. We'll talk about what leadership means. You just made a comment that Amazon, obviously, is in the lead. What is leadership? How does Google define leadership? Clearly, they're leading in aspects of the cloud. Scale, automation, open source, contributing a lot. It makes me wonder, does this $100 plus billion company with a $100 billion in the bank, do they really care about how much money they make in the enterprise? Or are they trying to sort of change the way in which people do development, do programming? That's maybe a form of leadership that we really haven't often seen in the industry. I mean, I go back. Not that it's an exact comparison, but you think about Xerox PARC and all the contributions they made to the industry. Think about the contributions that Google's making with TensorFlow, with Kubernetes, with Itzio, a lot of open source chops giving to the community and taking their time about monetizing it. Not that a couple of billion dollars or billion dollars, you know, a quarter is not monetization, but compared to 25 billion of Amazon and what Microsoft's doing, it's much smaller market share. I mean, that's a great point about the monetization. All the analysts and all the Wall Street guys are going to go to try to figure out and squint through the numbers, try to figure out how you make money on this. We've been talking to a lot of the Google executives and a lot of the engineers leading up to Google Next. We've had a great relationship with some of their inside people. The common theme day that I'm hearing is, absolutely they're playing the long game. And if Google's smart, they will leverage their retail business ads and other things and not focus on the short-term monetization. And that's pretty clear in some of the posture that they're looking at this as an engineering culture, engineering DNA, open source DNA, and they're about speed. When I press Google people and say, what is the DNA of Google Cloud? It all comes back down to the same thing. Inclusive open speed. They're going to focus on how to make things faster. That has always been the culture at Google. Make page loads faster, make things go faster. You know, Amazon has the notion of, you know, ship things as fast as possible and lower prices. Amazon is make stuff go faster and make it easy to use from a consumer standpoint. So ease of use has always been a consumer DNA of Google. And now with cloud, if they don't focus on the short-term, they continue to march to the cadence of open, speed, ease of use, and take that user-centric view to make things easier. That's key. I'm really impressed with the announcement. One little kind of technical kind of nuances. This Istio. Istio is an extension of Kubernetes and this is where you're starting to see some signals from Google on where they're going to be skating to where the puck will be. And that is as Kubernetes builds on top of containers and as Kubernetes starts to be more of an orchestration layer, the services that are deployed in the cloud are going to have more and more functionality. This is classic moving up the stack. This is only an opportunity to build abstraction layers that make things really easy to consume and make things faster. If they can get that position, that beachhead, they will enable developer greatness and that'll maybe hopefully change the game a little bit and slingshot them into a position. That's different than what Amazon, Microsoft's doing. Microsoft's just brute force, throwing everything in cloud, the numbers look good on paper, but will that truly translate to ease of use, large scale, global deployment, managing data at scale? Google's got some great technology and that is their number one thing that they have at their disposal. Well, this is a classic case of dogfruiting, right John? I mean, here's Google using tons and tons of microservices for its own purposes and okay, how do we simplify this? How do we automate this? And how do we pay it forward? And that's what they do. That's their culture. There's a company that's going to talk about leadership. They spend well over $10 billion a year on CAPEX. I think you can argue easily they got the biggest cloud in the world. Certainly they got more underwater cable and the biggest network in the world. So these are forms of leadership. Diane Greene talked about information technology, powering every aspect of the business. I mean, we've heard that since Nick Carr said IT doesn't matter, but now it seems like more than ever it's more important. She also said CIOs realize they're not in the data center business, but yet they only have a small fraction of their workloads in the cloud. This is why she said Google is seeing, and others I'm sure, seeing such big growth in the cloud, but then she underscored, but we're modern cloud. We're not lift and shift cloud. We're not doing what Oracle's doing, sticking existing apps in the cloud. We're doing things differently. You talk about this a lot, John. You talked to a couple of really high level women in Google about the new development model, the new programming model. They're really changing the way in which people think about software development. Yeah, I mean, I think one of the things that's clear is that there's a modern era here around software development. Software development, life cycle, certainly we hear agile been going on for the DevOps movement. That's kind of been out there. But what's changing now is that software engineering or software development isn't just computer science. You don't need three computer science degrees to do cloud and do development. The aperture is widening on what computer science is. That's opening up more women in tech. And as Diane Greene pointed out on her keynote, there's a re-engineering of business going on. There's new discoveries happening. And half the population is women. So women should be part of making the products consumed by women and other people. So there's a huge opportunity to fill the gender diversity gap. But more importantly, I think what's interesting about Google Cloud in particular is that they kind of figured out something and it might have been a pop to their arrogance balloon, but it used to be, oh, everyone wants to be like Google because we're so huge and we're great. Because they are, their technology is phenomenal. You look at what Google's built and hers has been on stage. They've built probably the best, most complex system to power their business. And all the stuff that's come out from MapReduce Paper to Kubernetes that they're now doubling down on, Google has done amazing. They're about 10 to 15 years ahead of the market in terms of technology by my estimate. The problem that they've had when they first started doing Cloud was, oh, just you want to be like Google. No, people don't want to be like Google. People can't be like Google. What they now understand is that people want what Google has and that's ease of use, DevOps, fully common set of libraries, common set of interfaces, really ease of rolling out at scale applications. That's different. People want the benefits of what Google has for their business. Not, they don't want to be like Google. I think that was a thing that Diane Green two years ago came in and reset. They've hired great enterprise people and the question is, can they catch up? How fast can they catch up? They're checking the boxes. They're doing the table stakes and can they harvest the bets that they're making? AutoML is a great example. IT operations is going to be decimated as an industry sector. All the industry analysts and the financial analysts have not yet observed this, but anyone who's in the business of IT operations is going to get decimated. Automation's going to take that away and make it a service. Yeah, it's going to be a human component, but the value is going to shift up the stack. This is something that we're seeing in Silicon Valley with startups, IT operations, AI operations. This is a new category of the industry and Google is betting on that. That to me is a big tell sign. And we've been talking about the economics of that for years, but I want to come back to something you said, Google clearly was late to the enterprise party. And I think part of the reason you were touching on this is I think they underestimated the degree to which organizations, enterprises in particular, have all this technical debt built up. You can't just rip out and replace. These companies are making money with their existing Oracle databases, where they're existing outdated processes, but they're making money. They're meeting Wall Street expectations. They're making their big bonuses. So they can't just stop doing that and be like Google to your point. But Google is playing the long game. They are doing something differently and they're trying to help people get to this new era of software development. So I think that's a very, very good point. L.A. McFessel on the VP of Engineering, she is going to announce a survey that she did. It's interesting, they polled the human aspect of developers and they asked the question, what do you care about? And developers care about generally enterprise development and kind of cloud native developers. Really two things, technical debt and time to push code. If technical debt accumulates, that's a huge problem, makes them unhappy, makes them kind of not happy with how things are going. And then also speed. If you're shipping code, it takes more than a few minutes to get back the commits that it hit. That's a problem. This is a huge issue. You said technical debt. Enterprise IT has been accumulating decades of technical debt that's now running the company. So as re-engineering the business theme that Diane Green points out really is spot on, people are going to stop buying IT and be deploying services more in the future and using those services to drive business value. This to me is a big shift. This is what's going to hurt the incumbents and enterprises that no one's buying IT. They're building platforms. The product is the platform and the sets of services will enable applications to sit on top of them. This is an absolute mindset shift and that impacts every vertical that we cover. You've covered IoT and everything else. The way CIOs think about this is they think about a portfolio and it's just to simplify. Run the business, grow the business, transform the business. And by far, the biggest investments are in run the business and they can't stop running the business. They can't stop investing in running that business. What they can do is say, okay, we can grow the business with these new projects and these new initiatives and we can transform the business with new models of software development as we transform it to a digital company as a software company. So they're increasingly going to be pouring investments there and then slowly sunset the run the business apps. It happens over decades. It doesn't happen overnight. Well that's actually the number one point I think that didn't come out in the keynote but Earl's talked about it where he said the old model was lift and shift. What we covered at the Linux Foundation and the CNCF and the other shows we go to is that with what containers and Kubernetes have bring into the market, the real value of that is that existing IT CIOs don't have to rip and replace old apps. And that's a lot of pressure. There's engineering requirements, there's personnel requirements, there's migration. So with Kubernetes and containers and containers and Kubernetes, you can essentially keep them around for as long as they need to be around. So you can sunset the applications and let the apps take its natural life-cycle course while bringing in new functionality. So if you want to be cloud native right out of the gate with Google Cloud and some of these great services like AI and machine learning that's going on, you can actually bring it in natively, containerize them with Kubernetes and now Istio build a set of services to connect existing applications and not feel the pressure and the heat to budget for it, to engineer for it, to actually hire against it, to manage the existing life-cycle. This is a huge accelerant for cloud native. The rip and replace doesn't have to happen. You can certainly sunset applications at will, but you don't need to kill the old to bring in the new. This is a very, very important point. Yeah, so a couple of things that Diane Green hit on, I just want to go quickly through her keynote. She talked about, like I say, a small fraction of workloads are actually in the cloud, but then she asked the question, why Google? She said, look, we're an enterprise company, but we're a modern enterprise company. We take all the information from that cloud, we organize it, we allow you to put it back intelligently. We've got a global cloud and it's unbelievably complex. We've got 20 years of scaling and optimizing with that elite team, with the most advanced cloud in the world. She said, you know, she didn't give the number, but many, many football-size, football stadium-sized data centers around the world that are carbon neutral with tons of fiber under the ocean, specialized processors, talked about Spanner, which is this amazing, distributed, globally distributed, consistent, transactional database, big querying. She also talked about a consistency with a common core set of primitives. And I want to ask her about that because I think she was taking a shot at Amazon, but I'm not sure if they can make a similar statement. So we're going to ask her about that when she comes on. She also said, the last thing I'll share with you is AI and security are basically hand-in-hand. Security is what everybody's worried about. AI is the big opportunity. Those are the two areas where Google is putting some of its greatest resources. That was my favorite soundbite, by the way. She said, security is the number one worry and AI is the number one opportunity. Really kind of points to it. On the primitive things, I don't think that's so much a shot at Amazon as that it's more of multi-cloud. We've been kind of saying multi-clouds vaporware for months, past year, because it kind of is. What we've seen with cloud-native communities and open sources, multi-cloud can only happen if you can run the same app across multiple clouds with common interfaces. And that ultimately is, I think, what they're trying to solve. My favorite soundbites from her keynote is, she said, quote, we've got 20 years scaling Google Cloud. It's obviously a very large number one cloud. If you want to put clouds in benchmarks and without talking about the enterprise, they're number one in terms of tech and scale. But she says, my main job at Google two years ago is surfacing the great technologies and services and make it easy to use. We have a technical infrastructure, TI, that has BigQuery, Spanner, and then consistencies across all primitives. And she says, on top of the technical infrastructure, they got Gmail, G Suite, Maps, et cetera, et cetera, powering at a large scale, dealing with all the threat intelligence and a ton of body of technology around AI. And to cap it all off, leader in open source. To me, this is where Google's betting big with security as the number one worry, which is a major checkbox, with AI kind of the catnip for the developers. And they got security features. If you compare Amazon to Google Cloud, Amazon wins on sets of services in terms of number of features. But the question is, does Google have the right features? These are the questions we're going to have. And the dig at Amazon was Reed Hastings, Netflix CEO, friend of Diane Greene. I've seen them both speak at Stanford. So she bumped into him. She said, Reed Hastings is a power user of Google Chrome and G Suite, and kind of said how great it is. But that's not Netflix. No, Netflix is an Amazon customer. So, interesting jab there was about Reed Hastings personally, but not about Netflix being a customer of Google Cloud. The question is, can Diane Greene convince Reed Hastings to move Netflix from Amazon to Google Cloud? That's the question I'm going to ask her. The other piece of the keynote that I thought was quite interesting was Erz Holtz, who's the Senior Vice President of Technology Infrastructure who was doing cloud before anybody talked about cloud. He said, cloud is a fundamental shift in computing. GCP gives you access to unlimited computing on the world's largest network. He talked about Spanner, the globally consistent distributed database, ML APIs for doing speech and natural language recognition. Big query, the big data warehouse, basically a silo buster. But he said, what's still missing is essentially that hybrid. He said, all the clouds are different. I interpreted that meaning closed. So he said, things like setting up a network, provisioning a virtual machine are all different. And basically to your point, John, that stuff is going to get automated away. So Istio, they talked about Apigee, getting visibility, orchestration, serverless. They talked about GKE on-prem, which is Google Kubernetes Engine on-prem. And then Cisco came out on stage, the big partnership, the big news from the keynote. Let's talk about what we're going to look for this week in Google Cloud and also within the industry. Dave, I'll start. I'm looking for Google's technology architecture map, which I love. I think they've got a great solution. Does that translate to the enterprise? In other words, can they take what Google has and make it useful and consumable for enterprises without having the be like Google strategy can use what Google has benefited from in a way that enterprises can consume. I'm going to look for that. See how the technology can fit in there. And then I think the most important thing that I'm going to squint through all the hype here and the news and Kool-Aid that they're spreading around is how are they making the ecosystem make money? Because if Google Cloud wants to take the long game, they got to secure the beach head as a viable, large scale cloud, which I think they're doing extremely well. Can they translate that into a ecosystem flourishing market? Does that make money for developers? They talked about going into verticals as a core strategy and healthcare being one. Can they go in there in financial services, manufacturing, transportation, gaming and media and attract the kind of partners and business customers that allow them to do better business? Does it translate the distribution for developers? Do businesses make more money with Google? That to me is the ultimate tell sign with how Google Cloud translates to the marketplace. Ecosystem benchmark and value to customers in terms of money making, utility to users and their customers, customers. So two things for me, John, and one is the same as yours is ecosystem. I learned from the SiliconANGLE editorial team. By the way, go to siliconangle.com. There's some great editorial that dropped this week in support of just what's going on in cloud and Google Next. But I learned from reading that stuff, Google late to the party, only 13,000 partners. Amazon's got 100,000 cloud partners. Azure has 70,000 cloud partners. So what's the ecosystem strategy? How are they going to grow? How are they going to help make money? The second thing is, basic question. I want to understand what Google wants in the cloud. What's their objective? I know Amazon wants to dominate infrastructures and services and be the leader there. I know that Microsoft wants to take its existing software estate and bring it to the cloud. I'm not really clear on what exactly Google's objectives are. So I want to get clarity on that. Yeah, I think it's going to be developers. One of the things we're going to dig into, obviously open source. It's the CUBE coverage here in San Francisco. Live coverage of three days, wall-to-wall. I'm John Furrier, Dave Vellante. Stay with us. The CUBE.NET is where you can find the live feed. If you're watching this on SiliconANGLE or around the web where we syndicate, go to the CUBE.NET to get all the content. And SiliconANGLE.com has a cloud special this week. The team is putting out a ton of content, covering the news, critical analysis, and what it means and the impact of Google Cloud into the industry and to their customers. So I'm John Furrier, Dave Vellante. Stay with us. Live coverage here. Be right back.