 from Las Vegas, it's theCUBE, covering AWS re-invent 2018. Brought to you by Amazon Web Services, Intel, and their ecosystem partners. And welcome back here at AWS re-invent. We are live in Las Vegas, day three of our coverage right here on theCUBE, and we continue our discussion now with Justin Moore and John Walls, with Matt Yamdition, who is the director of solutions architecture at AWS. That's right. Matt, good morning, good to see you, sir. Thanks for having me. And Nick Kiyu, Vice President of the Global Ecosystem at Pivotal, and good to see you this morning, Nick. Good morning, thanks for having me. All right, first off, let's just get your take on what's happening here. We were talking a little bit before we got started about here we are day three, well day four, if you've got the partner conferences, but last day of the show, and there's still a lot of excitement in the air, the show for Stillpack. What have you guys seen this week that's kind of stood out in your mind? Yeah, well, I mean, people stick around for the third day because Werner Vogels is like a hero for so many people here. And so, you know, a lot of the buzz is to see his keynote this morning. You know, one thing I've been really excited about is all the announcements around machine learning this week. There's just been an incredible amount of innovation and people are really excited about the DeepRacer and the DeepRacer League announced this morning. So that, you know, the momentum we're seeing and the excitement around machine learning is really cool to see. Yeah, from your perspective, Nick. I'm joining the marathon towards the middle. I came in last night, Matt and I had dinner. But I think the most impactful announcement I saw come out of AWS was probably the outpost announcement, sort of the commitment to hybrid, which I don't know, Matt played a big role in kind of pioneering that. And so that's super exciting. And I just can't believe how many people have stuck around. I mean, we're on the last day of this thing. And it's like, you know, people are staying after the party, they won't leave the house. Yeah, exactly. Well, at four o'clock they're going to have. We're going to kick about. DeepRacer, by the way, we had a couple of guests on. That was a really cool idea about taking literally a small toy truck, if you will, but programming it and then doing some, trying to hit, not reflective learning, but reinforced learning with it. And then actually taking it into practice and putting these cars on tracks and having a year-long competition. So we'll kind of see next year how that works out. AWS and Pivotal. All right, so what are the two of you aligned with now? What brings the two of you here and the two companies together? Yeah, well, I mean, I think first of all, as companies, we have a lot in common. Certainly how we think about customers, we're both really sort of customer obsessed companies. But, you know, what I see a lot, I work with partners all day long and we want to make it easy for both our customers and our partners to embrace modern DevOps. Like all these enterprises are going through DevOps transformation. And any tools and partnerships we can create to make that journey easier is really a priority for me and my team. Okay, and then from the Pivotal side of the fence. Yeah, I would say largely it's our customers, you know, large portion of our clients have chosen to run Pivotal Cloud Foundry, which is sort of our flagship platform as a service on AWS. Going back to, you know, 2014 was the first public IaaS we supported after vSphere. So, you know, I think our customers are pushing us to work together. I think we've met that challenge. You know, one of the things we're here to talk about from a Pivotal perspective is all the work we've done with Amazon to expose Amazon services to our platform through this technology called the Service Broker. That, you know, over the past six months, Amazon engineers and Pivotal engineers have worked kind of assiduously to deliver to market and now it's getting in the hands of customers. You know, after this session, we're going to go speak with about 50 customers in a private room about how they're deploying Cloud Foundry on AWS and utilizing the Service Broker to be, you know, more productive and drive more innovation of services into their developer community. So what are some of the services customers are attracted to? What are they pushing you to put into this Service Broker? What do they want to do with that? Maybe you could give us a bit of flavor of that. We came out initially a couple of months ago with 18 services that we support. So, you know, things like S3, RDS, some of the Hadoop offerings. You know, I think we're going to see the basics, the S3s probably consumed, you know, first. But we're working, we're actually putting some ideas together to see how we can build kind of reference architectures and paradigms to let our customers know how to take advantage of these services like machine learning or some of the Hadoop offerings, et cetera. Yeah, I mean, we started that with some of the IoT integrations already through the Service Brokers. But I agree, we're starting with the core services, the databases, DynamoDB, RDS, S3, et cetera, and we're starting to layer in more services over time. We've got to start with the basics so that you can then build upon that, which is what Amazon has a long history of doing. You know, you started with EC2 and then you bring out S3 and now we have services like SageMaker and the things that drive the car with it, with DeepResa. It would be nice if we could actually do training models using Pivotal Cloud Foundry to train up a racer. I mean, actually nothing stopping you from using, you know, PCF, one of the things I love about it is with Cloud Foundry, you can use the Service Brokers to make it easier for you to adopt AWS services, but nothing stopping you from using any AWS service and it's one of actually the great parts of the partnership, so you're not limited to what we have Service Brokers for. Yeah, so enterprises have been going on this cloud journey for some time and Amazon has been around for a long time. AWS has had these services for a while, Pivotal as well. Where are we seeing, where's the momentum for customers? Where they're transforming their businesses and we're hearing a lot about hybrid cloud here at the show. Where are enterprises putting their workloads? What are they looking at putting workloads into hybrid as compared to putting things over into public cloud or using Pivotal Cloud Foundry for it? I guess I'll take it from my angle first. So approximately 70% of our customers are still running their workloads on-prem, right? That doesn't mean to say that they're not expanding those applications out to Amazon, for example. And I think the key trend we've seen is, cloud is becoming more of an operating model and what we focus on is teaching our clients how to build and rebuild software. The big sort of surface area below the iceberg for us right now is all of these enterprise applications, legacy modelets that need to be kind of decomposed and moved into a cloud operating model, modernized through things like data services that we can expose through our platform to something like AWS. And it's starting to shift. We were talking earlier about the outpost and how I think the goal is to kind of meet customers where they are together, if that's the best way to put it. Both Amazon and Pivotal. Yeah, I mean, with the size of customers we're working with, like Comcast and Liberty Mutual and US Air Force, it's not like a single jump into the cloud. It's a migration, a lot of different workloads, a lot of different divisions with these companies. So it's sort of a continuum. And so companies are at different stages of their migration adoption in the cloud, like all over different parts of their business. So I think the hybrid story is really meeting that need. You have some divisions that are going to jump right into serverless and IoT, and then you have other parts of the company that maybe have a mainframe that they're still tied to. So there's always going to be some of these dependencies. And so having a hybrid story allows us to sort of address all different parts of the companies we work with. Yeah. So one of the factors that if I'm looking at a hybrid cloud solution, how do you help people decide what to put where? Because if you got it on prem, it becomes a heave to move some things over. And so it'd be easier to, I guess, take the lightest lift and go from there, but that's not necessarily the best route to go. So how do you help people with that kind of procedure? Yeah, I mean, we believe in the fullness of time that customers will eventually move everything to the cloud. But in the meantime, like I said, it's going to be a multi-year journey for a lot of these big customers. So like if you take Liberty Mutual or Comcast, these are very large companies, and we work with them to find teams and workloads within that comes down to people a lot of the time. Different teams may lead a different point of agility in terms of DevOps. And if they're able to adapt their software, if their software runs on X86 infrastructure, if they're already using CI CD, for example, and if they're used to containers, then they're going to be good candidates. So I always look to the people and then the products and then decide what they're going to migrate in that order. Yeah, and I would say that there's a lot of big enterprises that are looking to shut down data centers, and they've already made a decision to fundamentally move infrastructure to AWS, for example. And a lot of times we will be brought in after the fact, if you will, to deliver that developer experience on top of an already made fundamentally and outsourcing decision. So all the reasons, cost, complexity, flexible finances, consumption-based pricing, a lot of that kind of substrate decision has already been made. And we're generally coming in and saying, okay, now let's look at the application architecture. Are there things like latency and or regulatory requirements that would require you to keep this on-prem versus moving completely to the public cloud? Are there services? So could you move off of legacy middleware, for example, on-prem and take advantage of refactoring and moving applications into the public cloud to improve your cost structure there? There's a myriad of issues. I think we would generally agree, a lot of times we get guidance from our customers and their respective market segment as to what's most important to them. Yeah, so looking ahead, trying to sketch out the vision of what we're going to see in the future, what do you think that customers are going to be asking for you next year, two years out? Well, I think we've had a great reception for a lot of the templates and the automation that we've co-engineered. Nick was talking about a lot of the co-engineering, so we have something called AWS Quickstars that allow you to deploy to the cloud boundary really quickly. And so we've had really good reception from customers, things that we can make it easier for them to deploy, Pivotal and sort of explore using that AWS. We're going to double down on those efforts, more service brokers, more quick starts, more automation, more self-service for customers so they can get started with Pivotal quickly. Yeah, and I'd add we're also, we support a product we launched about three quarters ago, Pivotal Container Service on AWS. And so I think we'll see by virtue of the partnership with VMware, a lot more customer demand to run PKS on AWS, on Outpost, on VM Cloud for AWS and all the variants of the VMware and Amazon partnership as well. Like you said, meeting customers where they are. That's right, yeah. Well, you're about to meet Pithio. Yeah, that's right. Good luck with that, and I'm sure you're going to get a very positive earful, which is always a good thing, and continue that great work with them. Gentlemen, thanks for being with us. Thanks for having me. Great, appreciate the time. Thank you. Back before AWS re-invent, we're live in Las Vegas at the San's Expo. Here, watch it.