 Live from the Sands Convention Center in Las Vegas, Nevada, it's theCUBE at AWS re-invent 2014. Brought to you by headline sponsors, Amazon and Trend Micro. Welcome back to theCUBE, SiliconANGLE TVs, live coverage from AWS re-invent here in Las Vegas, 2014. Third year of the show, second year for theCUBE here, 13,500 people gathering to hear what Andy Jassy called the new normal of cloud computing. A whole lot of services, big announcements yesterday on the main stage, going through lots of solutions fitting the enterprise. Today in the keynote, Werner Vogels gets on stage wearing a Soundgarden Badmouther finger t-shirt. Last year was wearing Nirvana, of course showing out the Seattle sound and announcing some really cool technologies. Talking about things that the geeks have really been waiting for, of course, the big one is the Amazon EC2 container services, which is Docker support. Got a bunch of rounds of applause when it was announced. Ben Gullib from Docker, CUBE alum, who's going to be on with us later today, came to talk about how Docker is changing things. What Jerry Chen, the VC behind Docker said is the new unit of computing is what Docker is, the container's hottest technology. We've seen, been watching this meteoric rise, interviewed them back at Red Hat Summit earlier this year. Of course, they were making announcements with VM, we're with Google, and now here with Amazon. The joke I had is, you know, everybody says we are the best place for Docker, and of course Amazon wants to be close here. And a new cool technology called Lambda, which is really event-driven computing for dynamic applications. Little bit of a futuristic look out as to where they're going, attack some of the core features of what platform as a service or past applications are looking at. So if you take the Docker plus the Lambda, some really cool things down the road, Amazon continues to differentiate itself from the rest of the marketplace and is why really this cloud computing space is Amazon's lose. Joining me for the intro segment, Jeff Kelly, our big data guy here on the floor meeting with all the vendors. We're going to have a lot of the keynote people on today, Jeff, a lot of them big data companies like Splunk, who you've been at the Splunk conference for the last three years. We've got the Weather Channel on. What have you seen so far? What are you looking forward to covering today? Well, those two you just mentioned are top on my list. I think it was interesting listening to the keynote this morning. They brought Splunk on stage, Scott Reseleven talked about how they're going all in on AWS. And the Weather Channel talked about how they're, the Weather Company I should say, the Weather Channel is just one of their properties. They're much more than just a cable TV channel. They are delivering data services to the likes of Apple, Google, Yahoo, and others. And what both those keynote speakers, I think highlighted for me in one of the real areas of potential differentiation for Amazon relative to big data is the flexibility and the agility that allows their customers to iterate very quickly on data-centric applications and services. You don't have to worry about setting up the hardware. You don't have to worry about configuring the network. When you have data flowing through your system and you've got new opportunities with customers to deliver them in the differentiated analytics or in some, in the case of Weather Service, the Weather Company delivering streams of weather data so that they can integrate them into their applications or in the case of Splunk, bringing in all that machine data, doing the analysis and quickly spinning up new views of it, new applications using it. The cloud allows you to do that in ways that it's very difficult to translate on premise. So to me, that's really one of the big areas where AWS is a benefit for big data practitioners. Of course the challenge is, the whole data gravity question. Most of the data that enterprises are dealing with today, they've built up over many years. It's in their internal data centers. Moving that to the cloud is an issue. And people have to wait. The expense of that versus the benefit we get from moving to the cloud. Of course, AWS will say security, we've got the best security in the world. The reality is it's still an issue. There are still enterprises that, especially in regulated industries, that are going to be reluctant to move to the cloud for that reason. And then just in terms of, especially related to big data, you think about, you're a data-driven company and data is one of your core assets, especially when it comes to real production workloads. What I'm hearing from practitioners is that, in a lot of cases, especially where performance is critical, they're still kind of clinging to their on-premise deployments for that. So they have a little bit more control over that. So, huge opportunity for AWS. I don't see big data moving 100% over AWS in a lot of cases, but it's definitely going to play a big role. Yeah, Jeff, you've got a great point there, that one of the buzzwords we've been hearing is everybody talks about all-in on cloud. One of the people in the keynote was Phil from Omnivore. If you're not familiar with Omnivore, they're the ones that supply all of the music to companies like Spotify, Serious XM and the like and had a really great discussion with him and they started out with their own data centers. They'd spent millions and millions of dollars of building out this infrastructure to allow them to deploy content around the world with streaming music. And there's billions of files that they have in their data center. They're a huge Amazon partner, close relationship with Werner Vogel. That's why they came on stage, great kind of the music vibe and what's going on there. But those old data centers, it's not like they threw them out and got rid of them. They just found repurpose for them. So they're actually working with universities that we can do analytics on it and it is the master copy. So that if the online version ever has a little bit of a struggle and the codecs aren't working quite right, they can go kind of back to the master tape. So, Jeff, you bring up a real good point. When we say it's all-in on Amazon, it doesn't mean that there's not other options. We're still going to have companies having some data on their own properties and they're going to use services from other environments. I've talked to a number of customers here at AWS that they say, oh, Amazon's my strategic partner. I'm working with them. I said, great, what's your CRM? Oh, we're using Salesforce. Well, of course, Google Docs is still using a lot. When we've done surveys of customers, even the ones that love Amazon, they're using Microsoft application for a lot of environments. They're probably Office 365 customers. So, we know it is a multi-cloud world and Amazon's positioning has been that, look, they're not trying to rule the world. Of course, they have to say that, but it's not a winner-take-all. There is room for their partner ecosystem to grow. Big question I have is, if you're partnering with Amazon, how much are they going to take the high-margin pieces? How much are they going to do themselves and how much will they eat that ecosystem? It's a good point. If you're a partner of AWS, AWS offers you a huge opportunity to build a great business, but also, you better be innovating because AWS is watching. They see what's hot, what's driving revenue for their partners, and then, if it makes sense for them, they'll create their own service to try to take that high-margin business. So, what it does is it requires partners to keep innovating and doubling down on what they're doing. You can't sit still in this marketplace. Yeah, what's really fascinating to me, kind of looking in, you know, trying to find as much as you can about what Amazon's doing. Year after year, they keep adding new features, you know, and expanding what they're working on. And as you grow bigger, it's really difficult to keep building on that. How do they keep nimble? When I talked to the head of engineering for Amazon, he said, you know, that the team really just owns that code. It's not, I do a little bit of development and throw it over the wall. I give it over to somebody else. It's, I'm going to own that feature. Loosely coupled teams moving fast, adding on top of it. Absolutely, it's, you know, it's, I mean, something like Aurora announced yesterday, getting into the relational database world. I mean, you know, we hear a lot of practitioners running relational databases on AWS, and guess what? AWS sees the opportunity. They hear from customers that they're frustrated with their relational database vendors. They're expensive. They tend to be a bit rigid. AWS comes in and, you know, they spent three years developing the product. This isn't something they just spun up overnight. And it's just an example of how AWS is always looking for opportunities to add more value, build their business. All right, so we got so many guests we need to get through today. So we're going to be here all day. Jeffrey F. Kelly on Twitter, Ahmat Stu on Twitter. At Furrier, we'll be here shortly to help us pound through all of these great use cases from the Amazon executives, partner ecosystems, bunch of end users, real luminaries. I'm thrilled that we're going to have James Hamilton on again. Thousand people went and saw his session earlier today. You know, extracting the signal through the noise. Always check out siliconangle.tv for the event coverage. Wikibon.org, Wikibon's chief analyst, Dave Vellante, laid down a killer piece talking about how Amazon is changing the economic model for enterprise IT and really turning services into software economics. So lots of data coming out of this show. We're looking to bring it all to you through video, through the research. And of course on CrowdChat, crowdchat.net slash reinvent to get engaged. Send us your questions, send us your feedback. Thanks so much for watching. We'll be back with our first guest of day three here at Amazon re-invent right after this quick break.