 from Las Vegas, it's theCUBE, covering AWS re-invent 2018. Brought to you by Amazon Web Services, Intel, and their ecosystem partners. Hey, welcome back everyone. It's theCUBE live, day three coverage of Amazon Web Services, AWS re-invent 2018. We're here with two sets, Dave, six years we've been covering Amazon every single re-invent since they've had this event, except for the first year. And we've been following AWS really since its inception. One of my startups said I was trying to launch and didn't ever got going years ago, and when EC2 launched, it was still command line. And so we know all about it, but what's really exciting is the global expansion of Amazon Web Services, the impact to not only the commercial business, but the public sector, government, changing the global landscape, and the person who I've written about many times on Forbes and on SiliconANGLE, Teresa Carlson. She's the chief of public sector, vice president of Amazon Web Services Public Sector, global public sector, great to see you. Hi, hi John, hi Jack, great to be here again as always. So the global landscape, I mean public sector used to be this, hey, we've talked this many times, oh, do this, do that. The digital environment and software development growth is changing all industries, including public sector. You've been doing a great job leading the charge. The CIA, one of the most pivotal deals when I asked Andy Jassy directly, in my one on one of them, that there's proudest moments, one of them is the CIA deal, when I talked to the top executive in sales, Carla and other people at Amazon, they point to that seminal moment where the CIA deal happened. And now you got the DOD, a lot of good stuff. What's new? How do you top that? How do you raise the bar? Well, you know, it still feels like day one, even with all that work and that effort, and those customers kind of going back to go forward in 2013 when we won the CIA opportunity, they are just an amazing customer. The entire community is really growing, but there's so much more at this point that we're doing outside of that work, which is being additive around the world. And as you've always said, John, that was kind of a pivotal deal, but now we're seeing so many of our government customers. We now have customers in 174 countries, and I have teams on the ground in 28 countries. So we're seeing a global move, but you know, at my breakfast this week, we talked a lot about one of the big changes I've seen in the last like 18 months is state and local government, where we're seeing actually states making a big move, California, Arizona, New York, Ohio, Virginia. So we're starting to see those states really make big moves and really looking at applications and solutions that can change that citizen services engagement. And IT in these state and local governments aren't real, I won't say, of course they're funded, but they're not like funded, like a financial services sector that's swimming in money. They got to be very efficient. Clouds are a perfect opportunity for them because they can be more productive. They can do a lot of good things. They can, and there's 20 new governors coming on this year. So we've had a lot of elections, lots of new governors, lots of new local council members coming in, but governors, a lot of times you'll see a big shift when a governor comes in and takes over or if there's one that stays in and maintains you'll see kind of that program. I was just in Arizona a couple of weeks ago and the governor of Arizona has a really big push toward modernization and utilization of information technology. And the CIO of the state of Arizona is like awesome. They're doing all this work, transformative work with the government. And then I was at Arizona State University the same day where we just announced a cloud innovation center for smart cities. And I went around their campus and it's amazing. They're using IoT everywhere. You can go in their football stadium and you can see the movement of the people, how many seats are filled, where the parking spaces are, how much water has been used, where Sparky is, their mascot. I got to be Sparky, which was fun. But you're seeing these kind of things and all of that runs on AWS and they're doing all the analytics and they're going to continue to do that. One for efficiency and knowledge, but two also to protect their students and citizens and make them safer through the knowledge of data analytics. You know, at the John's point about funding and sometimes constricted funding at state and local levels and even sometimes at federal levels. We talked about this at the Public Sector Summit. I wonder if you could comment. Amazon in the early days helped startups compete with big companies. It gave them equivalent resources. It seems like the distance between public sector and commercial is closing because of the cloud. They're able to take advantage of resources at lower costs that they weren't able to before. Your thoughts? It's definitely becoming the new normal in governments for sure. And we are seeing that gap closing. This year, 2018 for me was a year that I saw kind of big moves to cloud because in the early days it was website hosting, kind of dipping their toes in. This year we're talking about massive systems that are being moved to the cloud. You know, big re-architecting and design. And a lot of people say, well, why do they do that? That costs money. Well, the reason is because they may have to re-architect and design, but then they get all the benefits of cloud through the things that you examples this week. New types of storage, new types of databases, data analytics, IoT, machine learning. Because in the old model, they're kind of just stagnated with where they were with that application. So we're seeing massive moves with very large applications. So that's kind of cool to see our casters in public sector making those big moves. And then the, plus the outcome for citizens, taxpayers, agencies, that's really the value. Sometimes that's harder to quantify or justify in public sector, but over the long term, it's going to make a huge difference in services. And one of the things I announced at the breakfast was our work in something called helping out the agents with the ATO process. The authority to operate, which is a big deal and it costs a lot of money a lot of times, long time in processes. And we've been working with companies like Smartsheet, which we help them do this less than 90 days to get in GoCloud. So now working with our partners like Telos and Rackspace in our own model, that's one of the things you're also going to see, checking Johnny. So you're taking your knowledge of the process, trying to shrink that down time-wise. Exactly. Pass it forward to the partners. Yes. To help them through the journey. Move fast, move fast. That's kind of just keep it going. And that's really the goal. Because they get very frustrated if they build an application that takes forever to get that security, that authority to operate, because they can't really, they can't move out into full production unless that's completed. And this could make or break these companies. These contracts are so big. Oh, yeah. I mean, it's significant. Yeah. And they want to get paid for what they're doing and the good work, but they also want to see the outcome and the results happening. Yeah. All right, I got to ask you what's new on the infrastructure policy. We were in Bahrain for the new region announcement. Exciting expansion there. You got new clouds, GovCloud East, is that's up and running? Up and running. Announced. Customers are in there. They're doing their DR, their COOP, running applications. We're excited. Yes, that's our second region. Based on 185% year-over-year growth of GovCloud region West. So it's up and running. I read an article that was on the web from General Keith Alexander. He wrote an op-ed on the rationale that the government's taking in the, looking at the cloud and looking at the military, looking at the benefits of the country around how to do cloud. You guys are also competing for the jet idea which is now, it's not a single source contract but they want to have one robust, consistent environment to take advantage of analytics. So between General Keith Alexander's story and then the public statement around this was do is actually outline benefits of staying with one cloud. How is that going? How's that jet ideal going? Well, there's two points I'd like to make on this. First of all, we are really proud of DoD. They're just continuing to move and they're sticking with their model and it's not slowing them down. Everything happening around Jedi. So the one piece is yes, Jedi's out there and they need to complete this transaction but the second part is we're just, it's not slowing us down to work with DoD. In fact, we've had great meetings with DoD customers this week and they're actually launching really amazing cloud workloads. What's going to be key for them is to have a platform that they can consistently develop and launch new mission applications very rapidly and because they were kind of behind, their model right now is to be able to take rapid advantage of cloud computing for those warriors, those war fighters out in the field that we can really help every day. So I think General Alexander is spot on. The benefits of the cloud are going to be really merit at DoD. You know, I have to say as an analyst, you guys can't talk about these big deals but when companies, competitors contest them, information becomes public. So in the case of CIA, IBM contested, the Judge Wheeler ruling was just awesome reading and it underscored Amazon's lead at the time. They had forced IBM to go out and pay $2 billion for software. The recent Oracle contestant and the GAO's ruling there gave a lot of insights. I would recommend go reading it and my takeaway was the DoD Pentagon said, a single cloud is more secure, it's going to be more agile and ultimately less costly. So that decision was on a very strong foundation and we got insight that we never would have been able to get had they not contested. Well and remember, one of the points we were just talking about earlier was the authority to operate, that ability to go through the security and compliance and get it launched and if you throw a whole bunch of stuff into an organization, if they're struggling with one model, how are they going to get 100 models all at once? So it's important for DoD that they have a framework that they can utilize and repeat. First of all, as a technical person and an operating system, which is kind of my background is that it makes total sense to have that cohesiveness. But the FBI gave a talk at your breakfast on Tuesday morning, Christine Halberson. She's amazing and she pointed out the problems that they're having to keep up with the bad actors and she said, quote, we are FBI's in a data crisis. And she pointed out all the bad things that happened in Vegas, the Boston Marathon bombing and the time it took to put the puzzle pieces together was so long and Amazon shrinks that down so if post event, that's hard, imagine what the DoD has to do in real time. So this is pointing to a new model. This is a new era, can you comment on that? Well, and we, you know, one of the themes was tech for good. And if you look at the FBI example, it's a perfect example of us helping them move faster to do their mission. And if they continue to do what they've always done, which is use old technologies that don't scale, buying things that they may never use or being able to test and try quickly and effectively test, fail fast, recover and then use this data. And FBI, I will tell you, it is brilliant how they're, the name of this program, Sandcastle, one of them that they've used to actually do all this data analytics. And she talked about time to mission, time to catch the bad guys, time to share that analysis and data with other groups so that they could quickly disseminate and get to the heart of the matter and not sit there and say, wait on this bad guy while we go over here and chase this one. Time to value. That's a consistent being that Amazon is on, whether it's commercial or government. I talk about values, great. You guys can have a short-term opportunity to nail all these workloads. But in Amazon fashion, there's always a wild card. So I was so excited, Dave and I interviewed Lockheed Martin yesterday. And this whole ground station thing is so cool because it's kind of like a Christopher Columbus moment. Because the world isn't flat, doesn't have an edge. It's ground. It's very big up there. There's a lot going on up there. You've got spaces involved. There's a space company. Yes. Space Force, right around the corner. You're in DC. What's the excitement around all this? What's going on in space? Well, I think we surprised a lot of folks with that announcement. Lockheed Martin and Digital Globe, we even had Digital Globe in with Andy when we talked about AWS Ground Station and Lockheed Martin Verge. And the benefit of this is two amazing companies coming together, AWS that knows cloud, analytics, our storage, and now we're taking a really hard problem with satellites and making it almost as a service, as well as Lockheed doing their CubeSats and making sure that there is analysis of every satellite that moves at all points in time with no disruption. We're going to bring that all together for our customers, for a mission that is so critical at every level of government, research, commercial entities, and it's going to help them move fast. And that is the key, move very fast. Every mission leader you talk to that has these kinds of programs will say, we have to move faster, and that's our goal, bringing commercial best practices. I know you've got to run. We've got less than a minute left, but I want you to do a quick plug-in for the work you're doing around the space in general. You had a special breakout at yours, Public Sector Summit. We did. It's not going on in the space area that you're involved in. Give a quick teaser. So we will have it again this year. We had our first ever, the day before our Public Sector Summit, we had an Earth and Space Day, and where we really brought together all these thought leaders on how do we take advantage of the commercial cloud services that are out there to help both the programs, research, observatory, and anyway, shape up, data sets. It went great. We worked with NASA. While we were here, we actually had a little control center with that Tom Soster from NASA JPL, where we literally sat and watched the Mars landing, Mars Insight, which we were part of, and so was Lockheed Martin, and so was Digital Globe. So that was a lot of fun. So you'll see us continue to really expand our efforts in the satellite and space arena around the world with these partnerships. Well, you're super cool and relevant. Space is cool. You're doing great, relevant work with Amazon. I wish we had more time to talk about all the mentoring you're doing with women in tech. You're doing tech for good. So many great things going on. Well, I need to get you guys at all my Public Sector Semmits in 2019. We're going to have eight of them around the world, and it was so fantastic having the Cuban Bahrain this year. I mean, it was really buzzing there, and I think we got to see the level of innovation that's shaping up around the world with our customers. Well, thanks to the leadership that you have and Amazon as a company and the industry's changing, theCUBE will be global, and we might see CUBE region soon. I'd love that. That would be awesome. If Lockheed Martin could do it, theCUBE could be there. That's right, exactly. And they have CubeSats. Yeah, they have CubeSats. You can have one of those. Teresa, thank you for coming on. Teresa Carlson, making it happen. Really changing the game and raising the bar in Public Sector globally with Cloud. Congratulations. Great to have you on theCUBE. As always, more CUBE coverage. Andy Jackson coming up later in the program. Thank you guys for day three coverage after this short break.