 Okay, welcome back everyone. Day three of live coverage here in Las Vegas. Exclusive coverage, Silicon Angles theCUBE. Of Amazon web services, huge event, reinvent. We're here, exclusive coverage. This is Silicon Angle, Wikibon's theCUBE. It's our flagship program. We go out to the events, extract the signal from the noise and share that with you. I'm John Furrier, the founder of Silicon Angle. I'm joined again for day three with my co-host, Dave Vellante, co-founder of wikibon.org. Great research there. We got a lot of videos up. We'll be in tons of text, tons of emails. We'll go to youtube.com slash Silicon Angle. This is kicking off day three. We are also running a crowd chat, Dave. Crowdchat.net slash reinvent. Go check it out. It's a live chat room, kind of like Reddit. Ask me anything, but it's for Twitter and LinkedIn. Go sign in and be part of the conversation. Ask us anything. Ask our guest Dave. Day three, Amazon is just rolling out a ton of announcements. Obviously, DynamoDB, big success, Redshift, big success, they're building on that and announcing new stuff. What's your take so far, day three? What are we expecting to see today? Well, we saw Warner Vogels last night and he showed us a little leg. We heard the full announcement this morning. Amazon made a number of announcements. They've got a Postgres database as a service. They just announced a new streaming service called Kinesis for high volume streaming data, high velocity financial data, for example. Or they gave an example of ingesting the tweet stream and doing real time analysis on that. They've also announced some instances that are optimized for high performance. The iTube pre-announce is a high IO instance capability and they've also optimized another compute instance with new E5 cores and solid state disk. And John, what this is going to do is going to allow customers to take advantage of higher performance cores and optimized compute instances, which will mean they will potentially pay less on licenses. So we've done a lot of research on this for on-premise installations, looking at optimizing your infrastructure and reducing the number of cores that you need and also reducing the number of, for example, Oracle licenses. They've also done some regional replicas for high availability for RDS. So Amazon continuing to respond to customer demand and build out capabilities. Notice John as well today that Google made an announcement dealing with a problem that they've had for a while, dealing with live migration. So that's what's been going on here. Those are the announcements. Anything you'd add to that? Yeah, I mean, I think one of the things, Dave, I mean, you pointed out in great rundown of the announcements. Let's just break this down. Amazon is constantly innovating and the thing that's interesting to me is if you look at what they're doing, okay, you've got the managed services piece of the business. They are building on the fundamental paradigm shift around API based services. The world is moving to APIs. So you're seeing the app streaming thing. That's a managed service. You've called it an API economy. It's an API economy, the data economy, the cloud economy. I just used that hashtag this morning and we'll certainly have crowd chats all around these hashtags. But really the key is that Amazon will continue to throttle announcements around API based services. So look for managed services. This streaming thing is really a big deal. That is absolutely what the marketplace wants. They want real time information, real time analytics. Underneath the managed services, you're seeing them constantly, incrementally improve around RDS. RDS for Postgres is a huge deal. It's just again, checking the boxes, going down. It's inch by inch, move the ball down the field, yard by yard. It's a little running game there. No big movement. But again, they're making progress. First and 10, move the chains as they say. It's the West Coast offense of cloud. Power football for the cloud. Right, just to remind you that San Francisco 49 is the new time. Stand for Cardinal, I mean, beat Oregon, the biggest air show. Offense explosion last week. But again, RDS, again, incremental improvement. That's a ground game for them. They're going to continue to do that. And then ultimately underneath that, you're seeing Redshift and DynamoDB. To me, those are the big home runs. You mentioned some of the instant stuff. Constant improvement on the scale side. So there's really three sections of innovation for Amazon. Under the hood, that's improvement to the infrastructure. Regional snapshots, big, that's a big deal. Regional co-location virtually in the cloud will be a massive deal. That's to me a secret weapon for Amazon. So continuous improvement on the infrastructure. Under the hood. Then you've got the incremental improvements around the database, Redshift. You're seeing Redshift becoming this API-like data warehousing model. This is kind of where the big data market really will explode. So to me, that on, and then on top of that is the managed services. So again, managed services, continued improvement, some of the database layers, and other stack, and inside the middle stack, and then ultimately down the lower ends. So to me, great progress, great strategy by Amazon. You know what's interesting, John, is Amazon makes these announcements. They've got first mover advantage in the sense that they were first with the cloud, obviously. But take, for instance, their VDI announcement yesterday. Another thing that they're talking about a lot today. You heard Warner Vogels talk a lot about solid state disk. He said that magnetic disk is the new tape. So they're kind of late to that game. So Amazon seems to wait until they get its customers feedback and come in as the, you know, semi-fast follower. I mean, maybe not even that fast with VDI. What's your take on that, John? I mean, how important is first mover advantage in this day and age? Well, I mean, firstly, if you have large scale, first mover advantage will win. I mean, ultimately, you know, we had Martin Mikos on yesterday. He's a fantastic executive from Eucalyptus. He kind of had the quote of the century in my mind, which was open source 10 years ago, quote of the decade, I should say, 10 years ago he said open source is only about source code. Now open source is about not only source code, but about APIs and data. And if you look at what Amazon is doing fundamentally, that's changing the game. So to me, if you have large scale like Amazon does, first mover advantages on these little features and these new services can scale. There's a lot of leverage there. So this leverage in scale, so first mover advantage comes on the scale side. And in context of that, look at what Google's doing. Google's in making some announcements as well around Google Compute. They are significantly far behind Amazon on the developer traction. However, they have large scale. So Google is absolutely has pole position in this race and when they get their act together. So that's interesting. So I liked your answer. So I want to unpack that a bit because so who's the competition? Is it Google and Microsoft or is it really the on-premise enterprise? So for example, on-premise enterprises have been talking for what now? A couple of years anyway about solid state disks. Take that as an example. Take VDI. We've been talking about that for three, four, five years. So relative to the legacy enterprise players, my argument is that Amazon doesn't have first mover advantage from the standpoint of feature sets but it doesn't need it because it was first with the cloud and it's got to your point scale. It has first mover advantage relative to its big web scale cloud competitors as you just pointed out Google. So in a way it's got first mover advantage where it needs it in the cloud and yet it doesn't have it maybe against the on-premise guys but my argument is it doesn't need it relative to the on-premises guys because to your point they got scale. What do you think about that? So here's my take on that one. You think that's right on? I think that's right on but here's a little nuance there. The word cloud is a completely different ball game. Salesforce.com thinks they're cloud. Now they might have a SaaS model that's cloud based but ultimately it's not pure cloud in my mind because what Amazon has is pure cloud. Their differentiation is the scale and so when they roll out a VDI service for instance that's a great example of kind of an old feature. We had Jerry Chen on from Greylock X VMware. He's the godfather of VDI and Sanjay Pune at VMware is rolling his eyes like hey welcome to the party but here's the difference. They're taking a feature like VDI and they're commoditizing it and it becomes a feature in their stack. Is that a massive game changer? No it's just commoditization. So Amazon strategy is very very clear knock down the commodity components in that need to be in the stack and then differentiate on large scale and ultimately the new business models around developers. So to me that will be the game changer. So I look for the similar moves from Amazon in the enterprise that is commoditize other people's advantage and shift the differentiation to where their assets are at large scale. So Sanjay Pune was at his reaction on Twitter? Yeah Sanjay Pune had a tweet and he actually said let's partner. I mean he's smart. Now that's good. So welcome to the party that's sort of. It wasn't saying great it's like hey this is great stuff for the industry. But you know what I'm saying welcome to the party. You know an executive is going to say that that's cliche. The partner angle is interesting. It's just Sanjay he is smart right. So I think one of the things that I haven't talked about this publicly but I was talking to NetApp about this and others. Back in the day Dave if you remember virtualization again we weren't I mean I wasn't even covering it back then but I remember when it came out I was really interested in that but the thing about virtualization is everyone saw virtualization as a direct threat to their business. And the companies that embrace virtualization were successful. The ones that said oh I'm going to fight it lost. So to me I look at Amazon the same way and I think Sanjay Poonan at VMware is very very smart. He came from SAP saw the value of AWS in terms of getting stuff up and running very agile and fast and it's the same notion. People who look at AWS as a threat will lose. People who look at AWS as a partner as an enabler will win. I think embracing AWS as an enabler is really really smart. Randy Baez at Cloud Scaling saying hey you know what we should do an AP public API with Amazon screw the OpenStack Foundation. Let's co-opt it and let's grow together. So to me virtualization at the beginning was very threatening. The people who embraced it won. Amazon's the same way. So you know it might be somewhat similar maybe the debate that but I think Amazon is a winner and I think at the infrastructure as a service level they can be the standard. When virtualization first came out everybody said specifically everybody said Intel screwed. You remember that right? And that didn't happen. Virtualization you know helped boost Intel in a way because the market's elastic. But I would say this John if you look at the large players that were you know the operating system purveyors. Sun's gone. HP, IBM, you know obviously not so much Dell because they're reselling but you know they embraced virtualization they resold but they were resellers of virtualization they were resellers of you. Who were the real winners in virtualization? VMware, EMC. NetApp. Yeah NetApp you're right. NetApp embraced virtualization in a way that allowed them to compete very effectively with EMC but I would say they were sort of downstream in the value chain because storage was such a problem. So that was a smart move by them embracing it. A lot of the server guys though are now particularly IBM and HP are saying hey we're going open stack. That's our hedge for the future because you know why put the money in EMC's pockets we're going to drive open stack as hard as we can. So Dave we've got a great lineup today. What are you expecting? We're going to have Ariel Kelman who's the head of worldwide marketing for Amazon coming on. Great to get his perspective. We also have a crowd chat going on so ask questions there. Watch live at siliconangle.tv. We're going to have some of some new startups that are going to be coming out when it launches. We're going to talk to some of the developers. We're going to have Red Hat on, OpenShift. Couple of startups are going to announce they're going to come out of stealth on theCUBE John. We've got the CTO of MongoDB coming on. Elliot Horowitz, we awesome to talk to him. Mongo is a great success. And the big guest today is of course Stephen Schmidt who is the head of security at AWS. Everybody's always talking about security in the cloud. Well this is the man, this is the number one guy at AWS on security. We're going to have him on theCUBE this afternoon. I mean I tweeted out yesterday it was kind of funny. I'm like oh the big hallway conversation is security and it goes that's ironic. How secure is that? Okay this is theCUBE. We'll be back with wall to wall coverage. Again Dave just in summary day three. Again continuation of the same. A lot of announcements. It's an API economy. It's a cloud economy. I think Amazon is demonstrating great value. Obviously the developer traction is huge. And they are committed to looks like marching down to the enterprise at the managed services level, at the data layer and also down on the infrastructure. So we're going to continue to break that down all day today. Stay with us here on SiliconANGLE.tv and we'll be right back here at theCUBE live exclusive coverage from Amazon web services re-invent. We'll be right back.