 From the Sands Convention Center, Las Vegas, Nevada. Extracting the signal from the noise. It's theCUBE, covering AWS re-invent 2015. Now your host, John Furrier. Okay, we're back here live at Amazon re-invent in Las Vegas. I'm John Furrier with my co-host for those day two wrap up Stu Miniman, analyst at Wikibon Cloud and networking analyst at wikibon.com. Brian Grace, the cloud analyst at Wikibon.com and I'm John Furrier with SiliconANGLE. Day two is in the books here at Amazon, it's a wrap up segment guys. A lot of stuff going on, obviously there's some breaking news in the Wall Street Journal that EMC and VMware are in talks with Dell to go private and some mega merger. Market cap of EMC is $50 billion up after hours on the rumor. We'll analyze that in a second. Let's talk about what's going on here. Day two, Andy Jassy was out there, big keynote. Big data, business intelligence, VI as it's called in the industry, is front and center in the keynote. A lot of upgrades, a lot of slew of new announcements. We heard some people on theCUBE here talking about it. Data's at the center of the diverse. Your take quickly on day two wrap up Amazon. Thumbs up, thumbs down. What's your thoughts? No, big thumbs up, big thumbs up. You know, unbelievable amount of innovation. They continue to pace. I mean, every customer we've had who's come on here loves working with them. They're doing a bunch of innovative business models. No, it's been all smiles. It's been all thumbs up around Las Vegas today. Yeah, and the other thing I want to really highlight here is the audience at this show is phenomenal. Talk about these are the people that are trying new things. They're excited about technology. Big mix of kind of the t-shirt crowd and as well as the kind of button down business crowd. And it's really just phenomenal energy, John. We go to a lot of shows. This is our third year doing theCUBE here. Fourth year of the show overall. And you know, this is just one of the best audiences here. And I can tell you that the people that have the boost behind us here, they're really excited because they have a lot of people that are checking things out, digging it into it. You know, yeah, they want their t-shirts and swag, but that they're really digging into that technology and geeking out. So Jerry Chen was on theCUBE from Greylock here today. And I like this line. He comes to this event because he likes to collect the dots so then he could connect them. And so let's take that theme to theCUBE. We go to a lot of shows, guys. We collect a lot of dots. Wikibon, you guys analyze those dots. You put that on wikibon.com. But across the industry now, we're seeing a sea change. The EMC, VMware talks with Dell, the rumor today. Pure storage went public. Kind of got a dead cat bounce on that news. Not a big uptake, so kind of flat. Kind of soft, if you will. Big fans of pure storage. I'm bummed about that. I wish they could have done higher. And then you got Amazon decimating the landscape. It's almost as if it's a scorched earth in their wake of performance. Yeah, so John, the first commentary is, I mean, we're fans of the technology industry. So we hope the IPO, the storage industry doesn't have a stock that tanks. We had a couple of IPOs over the last couple of years in storage and it hurt the overall tech industry. So when a tech company, IPOs, we hope they're successful. People put a lot of time and effort in growing the company, growing the base, and there. But Amazon really puts the industry on watch here. I mean, they're continuing to just move fast. They're not hurting in storage. They're not hurting. One of the things that, it's interesting, there's a lot of storage companies that have showed up here. We had a good interview with the CEO of Zadara Storage and their good partner he talked about, absolutely. We need to keep adding value in that ecosystem and working with them. There are companies that are direct connect with the storage. There are companies that are here because, oh my God, my customers are all going cloud. I need to stay relevant, so. Well, relevance is the key word. So obviously pure storage, IPO, I'm not trying to get down on them. I'm a big fan. My point is that we talk about theCUBE, Dave Vellante, and I always talk about escape velocity. Can they get that escape velocity? When was the last startup that achieved billion dollars in revenue since NetApp? Not many, they're all been in M&As for the big companies. But pure storage, okay, kind of competing against EMC, EMC's in turmoil. In talks with Dell, I mean, this is a radical sea change. Brian, how do you make sense of this? Is it purely cloud pressure? Overall economics, a combination of a few things. What is it? Well, I think first and foremost, all those rules that we've played by for the last 20 years, they're all going away. And what that means is people are going, okay, what are the new rules? To a certain extent, Amazon's defining them. They're defining them as on-demand resources. They're defining them as incredibly fast innovation. And for a lot of these companies, we're going to see some, I believe we're going to see some very, very radical change from the old guard. They're going to have to, right? Whatever comes out of this EMC thing, they're going to have to become a software company. We've been talking about that. They're going to have to shed the business that isn't easy to consume. We've heard all day long from practitioners from vendors, if you don't get something up and running in a minute, in five minutes, in an hour, you don't add value, you're dead. That doesn't work in the old world. And if those are the new rules, there's a lot of change that's got to happen. Well, my take on the EMC, I'll give you my speculation based on the data that I'm trying to connect the dots on. Again, no formal on-the-record comments, just kind of gathered dots that I've connected over the past year around EMC. Here's what I think is happening. Well, I think the Wall Street Journal story is wrong. I think that is not going to play out. I do not think the Wall Street story will, Wall Street Journal story will actually play out in any capacity as they wrote it. I think it's going to be complete fish wrap. However, what they do talk about is they are talking to Dell. I believe that the scenario that they're on is EMC will sell portions of their business to Dell. EMC, as one scenario, they go private with VMware, with a Silver Lake-like partner, go private, and then it's the Joe Tucci Godfather against Gordon Gekko, Elliot Capitol, the evil hedge fund activists, total evil, right? Tucci's not going to lose that war. He basically says, screw you guys, I'm going to take it private, then we'll go public. That's one scenario. In order to do that, EMC would have to shed some baggage due, which not necessarily baggage, just revenue, so you could put numbers against that. So that's one scenario. Or EMC becomes VMware, they hire a new CEO, they stay public. So I don't think that there'll be a mega merger. I just don't think the numbers are there. I should love to get Dave Vellante's comments. He's watching Dave get on Twitter, but I don't see a mega merger between EMC, VMware, and Dell because it's too big. Now, the only wild card in that is EMC is looking for a CEO. Michael Dell is back. So, interesting dynamic thoughts. Wow, that's a lot to absorb, John. All right, Brian, thoughts, Stu, you think? I'll give you one really basic thought. So, however the scenario plays out, I don't think there's anybody here. I mean, I would argue 99% of the people that are here would have just listened to what you think is going to play out. None of them care. It doesn't really affect their business. And you think about that, 20,000 people here that don't care what VMware's doing, what EMC's doing, what Dell's doing. That tells you a lot about what's going on in the marketplace, right? These folks are laser focused on the next generation of IT, the next generation of applications, and what's going on in that other dance party that it's not influencing AWS? It says a lot. So then, in that scenario, LA Capital's not evil. All they're doing is lighting a fire under the laggard, in this case, EMC, if that's what you're referring to. Amazon's winning, so they're lighting a fire under their butt. Yeah, John, you talked about who's the last company to get a billion dollars in revenue and storage? Amazon, they're there, they're growing. Boy, they've got an interesting ecosystem around them. Yeah, it's not stopping either. Yeah, it's not really growing fast. And they've got the shipping, the new snowball product, that thing's going to snowball really, really fast and get bigger. We could make an argument that Amazon's storage revenues probably as big as the next 10 biggest, it's as big as all the flash guys, all flash guys combined and probably the next 10 biggest storage startups. So if that doesn't scare those guys, I don't know what does. And there's also the wild card on top of all this, which is just the power of Amazon Web Services cloud business is going to power multiple industries. We're in the media business, we're live streaming on the web, they bought Twitch, they have movies coming out, they have the technology to essentially incubate and house any industry from healthcare to media. So I mean, Amazon is looking pretty good in the middle of the fairway right now. Yeah, absolutely. All right, so guys, what are you guys coming out of? What research do you guys have, Stu? You mentioned some new stuff happening. Let's get going into what we're going to do next. What data are you analyzing? What's on the table in a Wikibon war room right now? Share with the audience, what's happening? Yeah, so first of all, of course, we're gathering a lot of data here, collecting those dots, talking to a lot of the ecosystem, talking to the practitioners, excited to actually announce we're going to be doing a big survey that's been going on for a number of years. But first time for Wikibon is the future of cloud computing with Northbridge. So expect that data, the survey, as I said, been going on for a few years. The folks at Giga Home had actually been kind of the co-sponsor research arm of that, but we're going to be doing it with them. Data is actually going to be coming out, I believe the week of structure is the current plan. So excited to do that, always when we can reach out, get a lot of data points and help understand those trends, where they're going. Because we want to be able to give the practitioners useful guidelines as to how they should be approaching things, how their peers are looking at things, and where should they should move forward. How is that going to render in products, and how is Amazon's show here impacting your research right now? Well, I'll give you one example. So we came down a few weeks ago, we came out with a piece of research that really said the hybrid cloud market as a whole is sort of immature. We weren't terribly impressed. Lots of companies are trying to say they've got a hybrid cloud solution. You listen to what Andy was talking about this week, they really have a very different viewpoint on hybrid cloud. Really they're trying to figure out how to work on the acceleration side of that. We've really got to dig into that because a lot of our clients are saying, look, hybrid cloud's the number one requirement that I want, that's where I think I need to go. And Amazon having such a different viewpoint, like they said, every hybrid cloud that exists today is also an Amazon cloud. We need to dig into that a little bit more. We need to help them understand how to buy in this hybrid cloud world. So that's going to influence a lot of what we're looking at as just one example. We're looking at how does pricing work for an Amazon or a public cloud world? We're looking at how do I make cloud native applications happen faster? Do I build a platform? Do I leverage a platform? So tons of different angles we're really looking at from a research perspective. Stu, how does this show affect your research? If any outreach, new customers, new people on the radar, obviously Juniper Networks is here. We got an event we're doing with them, New Relic. First time on theCUBE, she's impressive. I really like Hillary. She's the president now. She's running all the revenue. Impressive growth that they've done. They've been winning the DevOps war quietly with developers. They now are breaking out of the pack. Interesting company. Tons of other ones. What's on your radar, Stu? Yeah, so I mean, John, first of all, from the infrastructure side, if you're not going to Amazon, you need to at least have the message to your C-suite as to how you are competing. Doesn't mean I necessarily have to have the price point, but something we've been saying for over five years is either need to use the cloud or I need to understand how I'm moving faster, responding to the business, because IT needs to be responsive to the business. And that's something that cloud's been delivering and something that just IT in general needs to adjust. So yeah, I mean, huge implications on just everything that we do in Amazon is really a front runner in many of these spaces. And of course, I'll share with the folks out that the high level research agenda, editorial agenda, the CUBE agenda that we're watching that is consolidation. We are seeing a lot of M&A activity. We're seeing a lot of product roadmap changes happening in real time. You're going to start to see strategies and go to market and sales motions, product development motions, radically shifting pretty quickly. So you're starting to see now the tip of the iceberg. M&A activity, clever save required by IBM. The cloud business is moving. This train is rolling hard. We're seeing a lot of real time stuff. And that's going to impact the practitioner, Stu. You're right on the money. So you guys are doing a great job. We're going to continue to look at the consolidation in context. Stu, share some more on that. Yeah, John, actually we talk about consolidation. You've talked to a bunch of the VCs this week so far. Amazon doesn't make a lot of acquisitions themselves. How does that play over in the overall market space and specifically around Amazon? Well, I can share some news here. I guess no one's really reported on it, but Amazon is making investments. They do invest in their ecosystem. They are making investments in ecosystem partners. They have the marketplace. Obviously they're making money for their ecosystem. We're going to see that huge economic gain for their ecosystem. But the Silicon Valley economic system is an opportunity. I think you start to see lines in the sand, if you will, or rules of engagement, rules of the road, whatever metaphor you want to use, where Amazon's saying we're moving down this track and it's pretty clear what we do and what we won't do. So I think there's going to be a ton of white space opportunity within the growth engine of AWS. Now that white space is a huge opportunity. So a white space in Amazon is potentially a massive opportunity for startup. Right, right. But we have seen some acquisitions. We've seen Elemental. We're going to have them on the show at some point. They bought a company called Tulemetry that's really focused on telemetry and IoT back in March. The other thing, to your point about, how does Amazon affect the rest of the industry? How does the rest of the industry look at it? What's going to be really interesting? We're going to be out at Oracle Open World in a couple of weeks. Last year was the first time we ever heard Larry Ellison explicitly mention Amazon. They like to talk about their cheaper than Amazon. I'd be interested to do the top name on his slides. Right. Not anymore. Not anymore, but it's going to be very interesting to see how much, what Andy announced this week, the aggressiveness that they went after this week is going to get reflected from Oracle. Because we used to think Oracle had this incredibly powerful position. We're going to find out just how powerful that is in a couple of weeks. Well, I will clarify that they are doing M&A, but I will put some color on that because it's a good point. Amazon's very parochial around their growth strategy. They are really almost over the top organic. If you look at their announcements, it's all organic growth. There are instances where they're opportunistic. They see an opportunity to move the ball down the field, but they don't pump up their M&A. So they're kind of doing quiet M&A, elemental, they announce that they just kind of leave it out there, they don't really pump it up because it really kind of distracts what I think they're trying to push, which is the organic growth, slew of new services, they're listening to the customer. So I think that's a different strategy. Companies that amplify their M&A are usually desperate. Yeah, and John, one of the feedback that I got from Amazon is that they're not necessarily making acquisition to go into new spaces. It's augmenting what they're doing. A lot of times it is kind of the aqua hire, helping them to just move a little bit faster in some of the spaces. Because we know, one of the big things Brian's been looking at, many of the companies that are here and being very visible is because they're going after that talent acquisition. I mean, why does Nike have a huge booth here? It's because they are aggressively hiring, giving everybody shirts that say, Code is King, Code is Queen, come work for Nike and be a developer. We've seen those GE commercials. I'm going to work for GE and they're like, oh great, here's a hammer. No, no, no, I'm writing code for them. I mean, Code is King, something we've been talking about quite a bit on theCUBE is the importance of code, important of code or structural code. That's your wheelhouse. DevOps now going mainstream. This is, to me, the big news. There was another comment this morning. It was kind of subtle, but it really hit me hard. Andy talked about they've been in business nine and a half, almost 10 years now. GE got up there and the guy from GE, the CIO from GE said, we're making an investment for the next 100 years. They're looking at this platform as being something that's going to be around for a very, they're looking, they have a very, very long vision. Very long vision in terms of their features, long vision in terms of their infrastructure. This is a company that's thinking about how big they're going to make the buy. That to me was a wake up call. That was the arrow that's been shot across the bow this week by Amazon to the enterprise market. Saying, hey, you weren't taking this seriously two years ago, but last year they announced a slew of enterprise ready still. The naysayers, oh, they're not really enterprise ready. This year, clearly with that. Banks, manufacturing, health care, all the major verticals were on stage today. At large scale. At large scale. At large scale. This isn't POC, we go to, we're just at Hadoop, Strata Hadoop. Basically, it's one big POC love fest. Not here, this is production. So that's one thing. The other thing is that, you want to get your take on guys is the boring stuff is front and center. They're actually doing stuff like in the compliance. Those are enterprise ready table stakes. And they're also making things for flexibility. The freedom speech, that's freedom theme, I get that, it's marketing. That's a good theme to wrap around, love fest. The reality is, wow, these tools are free. Schema, tool for free. They're helping the customers get in. Look, the bottom line is everybody kind of understands the 80-20 rule. The 80% sizzle, that last 20%, it's hard. And they're trying to go after that 20% that's hard. They want to make it easy to move data. You can have whatever opinion you want, but they just made it easy to move 50 terabytes of data at a time. It's getting easier to ingest lots of data. That's the theme, the easy button. We've heard that on theCUBE now. Multiple, multiple months in a row. Where's the easy button? We heard, the one theme that we heard all day long was, you need to reduce friction. We heard that from customers saying, I got to reduce friction with my end customers. And we heard that with vendors saying, look, the only way you're going to be successful is to reduce friction to them using your services. Everybody's starting to get that concept. Guys, great day today, good job. I know you guys are scouring the landscape. Any final anecdotal tidbits from out in the landscape? You're out here in the show for a little bit. Any hallway conversations notable to share? People are excited. People are excited. People are energized because they're big opportunities. There's jobs out there. They're hearing about transformational business. This is not, you're going to save 50% by buying a new box. This is, you're going to go change the business. This is a change the world kind of show. People are excited about that stuff. And you're seeing the reflections in the market or impact in the market. EMC, all this turmoil. The big whales are running, scared. They have to shift. This is disruption at its best. This is innovation. I love this market. It's exciting. And then, you know, we haven't even gotten to Internet of Things. So tomorrow we should hear what the news will be. We're going to probably hear some really kick-ass Internet of Things. My little thing here, I think that's public. Is that a little pre-release thing? Oops, sorry, Mary. Let the cat out of the bag. You're going to hear Internet of Things tomorrow. You're going to hear what that means. And to me, I'm super excited by that because that opens up a whole new level of conversations. Yeah, so last comment from me on this, John. First of all, we get some of these buzzwords. You know, when did cloud become real? When did big data become real? Tomorrow, does IoT become real? And I was having a conversation, Brian and I, with Steve Herrod. We're talking about sometimes, you know, we get too excited about a technology like Hadoop or Docker or something like this. And it's really those transformations, as Brian said, that help businesses do something that they couldn't do before. The practitioners here, when they say, right, here's global things that I can do to just help people in healthcare, all these other industries, that they just couldn't do before. It's not about speeds and feeds. Connecting the dots here in theCUBE tomorrow. I think Internet of Things is already real. It's just called the network. It's called the Internet. It's called Connected Devices. But it's coming together in a scalable, large-scale, easy way. And I think it's going to be the beginning of the dawn of a new innovation. A great wealth creation cycle, great opportunity for startups, new companies to pivot big and small and for new players to come into the market. It's certainly best for Amazon. They're going to win on that. So we'll have live coverage tomorrow, all day, and you're watching theCUBE, SiliconANGLE.tv. Go there. We have Guest of the Week. Every week we have a Guest of the Week podcast of our favorite guest, as voted by our crack editorial team on theCUBE. We also have on Wednesday, our featured Women of the Week Wednesday feature podcast. And of course, all the videos are on YouTube, SiliconANGLE, YouTube.com, SiliconANGLE. And we're going to be at the Grace Hopper Celebration, Dell World. We'll be at Dell World to ask Michael Dell directly. Will he be the CEO of EMC? So we're going to ask him that. He might be by then. We'll see. Two, we're going to be at Oracle Open World. We got Pentaho World. Structure. Structure. We are doing the structure event with the former GigaOM event people. That's going to be fantastic. Fortune will be there. Dev Ops Enterprise Summit. Dev Ops Enterprise Summit. theCUBE is everywhere. We want to talk to you. Join the conversation, crowdchat.net, slash reinvent for this show. Join us on Twitter anytime. Love to engage with you. This is theCUBE. Thanks for watching. We'll see you tomorrow. Day two is out.