 Live from the Moscone Center in San Francisco, California, it's the CUBE at AWS Summit 2015. To Silicon Angles, the CUBE, our flagship program, we go out to the events and expect a significant noise. I'm John Furrier, the co-founder of Silicon Angle. We are here live in San Francisco at the Moscone Center for Amazon Web Services Summit. This is the technical conference, technical presentation, separate from their actually big customer show, re-invent in Vegas, which is their big, big tent event. But this is exciting day. Amazon is continuing to dominate the cloud business, and they're just putting more and more distance between themselves and the incumbent players in the computer industry. I mean, today more and more announcements, slew of announcements, only too many announcements to talk about on this opening summit. So we're going to dedicate an entire segment to the news. Again, I'm John Furrier. I'm here, proud to present Mark Farley, our co-host here. With me today, Dave Vellante, Stu Miniman, Jeff Kelly. They're all in the country. They're at an MIT event. Mark, distinguished guest, author, storage evangelist, storage expert. Welcome to theCUBE. Welcome to theCUBE. Can I give you a hey now? Hey now, yes. Hey now. Yes, this is another podcast. We're rocking it live. We're doing it live. I'm the virtual Stu today. So I'll try to do what Stu does, whatever that is. Yeah. You have more hair than Stu. I have more hair than Stu. And maybe I've got more jokes than Stu, but maybe not, we'll see. So we're going to have some fun today. Looking good today with the tie here. Cube worthy, the jury Garcia tie. ESPN of tech. Again, developer crowd here. So this is our crowd. This is our wheelhouse. I mean, you know, you've been involved in obviously the podcast, the storage podcast. You've been in a three par. You know, storage up and down. Cold, you know, the history and the computer industry. Got a lot of experience. It's a geek fest here. I mean, Amazon, I know, look at this. It's the geeks are, they're, they're swarming. Look at this. They're piling out of the, I can't watch to see the camera, but to my right is they're pulling out of the key now. Andy Jassy just delivered really, really a great keynote. And again, it's really low key. I mean, Amazon, no frills on how they spend their dough. They put all their money into sessions, but Andy Jassy, the father, if you will, the parent or the leader of Amazon, that whole group has really done an amazing job. And he's proud of his baby. And they're changing the game. Mark, what's your take on Amazon? I mean, you know, you worked at three par, which is a company that changed the game of storage, which was bought by HP. One of the companies that Amazon's disrupting, what is your take of Amazon, their approach? Well, they're disrupting, they're disrupting everywhere, right? It's all about the platform and everything that they bring with the platform and all the, all the different services that you can get, right? I think, I think one of the things that, that I took away from the keynotes this morning, a CEO from Vessel, Jason Killar, you know, he talked about what it's like for a startup. He'd been at Hulu, he's doing media, and he talked about having big ambitions with small teams, right? That's a huge thing that Amazon brings to the table, right? I mean, you saw, you saw his presentation. When he did Hulu, this was 2007 timeframe. I think in a, maybe a year before or so, they built millions and millions of dollars in a data center. Yeah. Now they're doing Vessel in the cloud. And really the message we're hearing, I want to get your opinion on this, and I wrote some notes down on the crowd chat. Go to crowdchat.net slash AWS summit for all my live tweet notes. I'm sitting right next to the New York Times. I actually broke a story in the keynote on Twitter, separate story, but check, check the Twitter feed. But here's the, here's the line that, that I took down. Amazon's value proposition for cloud innovation is, quicker to build, easier to adapt and update lower cost. That is fundamentally their algorithm for innovation. They look at the world as Lego blocks. They look at an architecture map that's very SOA service oriented. It looks like web services finally here, they're living in that era. They have a Lego block approach and it's creating more value at a lower cost. I mean, there's two things they're doing disruptive. I mean, how do you explain that to people? One word, agility. It's all about agility, right? How fast can you do things? How low is the cost, right? It's, it's how, how quickly can you move? And Amazon really brings that to the table. That's what they're doing. I mean, when you look at the messages from the keynote today, they're just continuing to pile on there. You know, I don't know what they've got. There's this army of minions or whatever in Seattle, right? Whether they're, you know, people that have moved there to go to work for them, people they've taken from Microsoft to whatever they've built this company. These people are building amazing services and they just keep, and they just keep coming. They've never let up. And I'm looking at it. And at a pricing model, at a pricing model that's, you know, unbelievable. Yeah, so the big announcement here in terms of let's go down the highlights. There's so many things to talk about, but really the big announcement in my mind was the word pattern. Andy Jassy used the patterns in his monologue, in his presentation, he used the word. The pattern number one, startups are being born in the cloud, true. Pattern number two, you're starting to see big enterprises. Pattern number three, machine learning. Pattern number three, you know, four and on and on. The old guys are getting loosened up a bit and they're getting dislodged from their market share. But the big announcement to me, because he came back to it a second time, was the storage. The Amazon Elastic File system was their big announcement. That's a big deal. That's a direct strike on many players. One EMC and others. EMC and Amazon, almost on a collision course, in my opinion. One, two, Oracle, HPE, IBM. Amazon is disrupting. I mean, what is this Elastic File system and what is the implications in your opinion? Well, it's really universal storage for so many applications, right? I mean, they've had elastic block storage for a long time, but a lot of applications are written use file storage. And now with, and I'm sure they got it right, right? They've been looking at this for a long time. I think the, what do they call it again, Elastic File Service? Is that it? Yes, Elastic File System is a service, right? All kinds of enterprise apps that were written to take advantage of NFS storage, these things can now be migrated to the cloud. You can start new apps that use file storage, but I think basically this is really a shot at enterprise storage that uses NFS. And you look at the semiconductor business, you look at EDA, you look at bioinformatics, you look at all of these large growth industries, and they all use NFS storage, right? And Amazon hasn't had that, well, now they do. You know, it makes them a real player. Yeah, and they're putting what they really got to do to be, we've said this on theCUBE many times in the past, and certainly last re-invent, where they kind of showed a little bit more leg on the enterprise, they were always in public cloud, doing their thing, launching some stuff, but now you've got to fill in those holes, and you see compute storage, relational database, auditing security and compliance all in there, and they're slowly plugging the holes in the boat to be enterprise-grade. And ultimately, that's not an easy task. How hard is it to be enterprise-grade, and is Amazon doing a decent job in your opinion? Yeah, they're doing a great job in my opinion, right? It's hard to be enterprise-grade. They work very hard at it. You know, yeah, sure, they've had some highly publicized outages. How many? Not that many, right? And you look at it. Oh, NFS is down for a day. A big deal, my world's going to come to an end. Yeah, I mean, who doesn't have outages or problems in their data centers, right? Everybody does. You just don't hear about it. They don't get publicized. So they've done a great job putting this together. I mean, it's interesting in preparing for this. I didn't know much about what they did for security and audit and that sort of thing. So I did a little bit of looking into it. Not a lot. Don't quiz me, John. But like you say, they're filling in all the holes, right? You want to know what's going on in your cloud instance. They've got the tools for that. You want to know, and with machine learning today, this is really exciting, right? Analytics is such a big deal. Everybody's talking about how analytics is going to change the world. Well, now with machine learning, that's a big feeder for analytics, right? Yeah, I thought that was a highlight of the day was big, big deal. The machine learning is a service. Yeah, big deal for it. Huge deal, yeah. So, you know, they've got all the analytics. They've got partners doing analytics. They've got machine learning services. You know, all of this stuff is going to come together. Who knows? But they're providing all of the pieces. They've got, you know, it's a whole tool set out there for people to use. And the other thing that they announced today was they announced Aurora, database updates, and they also announced the mobile implementation was pretty significant. Let's go through my notes here. Let me see if let me find that notes. It was, start us building on the cloud, doubling down on storage, the big data analytics. You're starting to see more, you know, in memory stuff. You're going to start to see more machine learning. No. But the container service, this is what I was looking for. And Stu, Stu's all over the container service. EC2 container service with full Docker support, new features, it's GA today. That's the big news. And the other thing that they announced was schedule service, but the mobility focus is now in line for Amazon. All their workspace and stuff, all their other stuff, VDI, it's been for the desktop. Their weak link and all this was mobile. They now have mobile support. So, you know, I mean, they're targeting full stack developers and the hybrid IT. So if you're an enterprise and you need to hire full stack developers, Amazon is showing the way in terms of the goods. No, I mean, they got everything. I mean, if you're a kid in college studying computer science or something, if you're not following what Amazon is doing, if you're not engaging in their services and the services you can get for free from them, you know, as a student or whatever, you know, the small increments, you're crazy, right? Because there's going to be enormous opportunities around everything going on with Amazon. You know, the mobility one is really interesting. You know, it's, you can kind of contrast Amazon and Microsoft in a number of ways. You know, in Satya Nadella at Microsoft, he talks about, you know, Microsoft being a, you know, a mobility oriented company, right? You know, and Amazon has not really had that kind of focus. Oh, it looks like they do now. It'll be very interesting to see how that goes. Yeah, the Amazon Lambda use cases, data triggers, IoT stream processing, index and sync, server free backend. This is not an on-premise vocabulary, right? So now they're launching that for mobile developers. Again, the container service, they got Docker. So really app developers. I mean, the only thing they don't have at this point is UX as a service, because if they had put on user experience as a service, they'd have the full stack and no one would even need to do anything but work on Amazon. So, sometimes they'll put talking heads as a service and we won't have anything to do. So, getting your business on Amazon, that's the message. I mean, Andy Jassy, obviously funny at times. Goofy at times, I thought he made a faux pod, in my opinion. He had an icon of the enterprise data center, frozen. And the hashtag was frozen in time, but yet one of their big products is called Glacier. So, I just, I can't come to grips with that. Glacier frozen in time? Yeah, well, he's wrong about the enterprise data center being frozen in time. I think there's a lot of people, places like Pivotal, VMware, and everybody involved with OpenStack, they would say, huh, not really. But, you know, Dave and I are really been lucky to sit down with Andy Jassy and the one-on-one. And I got to say, I'm very impressed with Amazon. I've always been a fanboy of what they've done, mainly because they just kick an ass and taking names in the public cloud. I haven't always been a fanboy. There's things that they do. I don't like the way they wreck the book business, for instance. I can't go to a local bookstore and buy poetry anymore. Well, you know, you're old school. That's pretty old school problem, right? To put my little computer science hat on, I mean, Andy Jassy built this from scratch. No one loved Amazon. They were the kid that everyone was kicking to the curb. Oh, it'll never scale, never work. And they built, you know, compute and storage, and added on more and more and more and looking at the billions that they're throwing off in pre-cash flow, they're going to have to be, they're already broken out on the financials, on the business side, you're going to see them maybe a spin out. Some people are saying that's an opportunity. So I think just overall pure execution success by Amazon from a business standpoint. No question, execution success has been fantastic, right? At great cost to the rest of the industry. And that's the interesting thing, right? They really are a disruptor. And so for everybody else, you know, look at everyone that wanted to be in the cloud business. You know, IBM, HP, you know, you need them all these companies and they still might be trying to be in the cloud business. Can they really be in the cloud business? You know, that's the big theme I think we should focus on today is disruption. Who's being disrupted? Where are the horses on the track? Because you're right. They're leveling bookstores. They're destroying old, incumbent, slow companies. But the value shifts to other places. I mean, I was talking to a VC just this week on our VC chat, hashtag VC chat. And they don't invest in anyone in the infrastructure because they're afraid Amazon's going to replicate it. So if you're in a white space, that could be a venture-backed business. That's now could be decimated. Open stack investments are kind of like, no one's saying it, but the public secret is, where's the beef? Nebula went under. HP's just giving up on the public cloud. You got to focus all on hybrid IT. Yet Amazon's message today is hybrid IT. Very interesting playing field here. Really, really disruptive. And that's the thing about Amazon. But hybrid IT with a difference, right? A different goal. Hybrid IT that says, actually it's all going to the cloud. It's all coming to us anyway. Instead of hybrid IT, like, well use cloud technologies in your data center, right? A whole different view of hybrid IT. Well, we're going to break it down hybrid IT. We're talking about the stars. We're going to talk about the data. We're going to talk about all the things in the stack and break down what's going on with Amazon. We're going to have folks from Intel and some other industry leaders coming on here at theCUBE. We're going to break down. I'm John Furrier with Mark Farley. We'll be right back with our next guest after this short break.