 It's theCUBE covering AWS Summit, New York, 2018. Brought to you by Amazon Web Services and its ecosystem partners. Here in New York City, we're live at Amazon Web Services, AWS Summit. This is their big show that they take on the road. It kind of originates at Amazon, reinventing Las Vegas, their big kickoff show for the year and then goes out to the different geographies and goes out and talks to the customers and actually rolls out all the greatest of the cloud from Amazon's perspective. Of course, it's theCUBE covering it. A wall-to-wall cloud coverage. I'm John Furrier, co-host with Jeff Frick here today in New York City for special coverage. Jeff, Amazon obviously continue to dominate, but competition is heating up. Google next is next week. We'll be there live. Microsoft's got a big show. Azure's gaining market share. Amazon's still racing ahead. They got a book they're giving out here called Ahead in the Cloud. Best practices for enterprise IT. Amazon clearly, we talk about this all the time, have cleared the runway from winning the startups, small, medium-sized growing business in the cloud native to actually putting big dent in the market share for acquiring large enterprise customers. That has been their mission. That's Andy Jassy's mission. That's the team. Their head count is growing. Jeff Bezos is the richest man in history of the world. Pretty impressive story we've been covering since 2012. What's crazy is it's barely got started, John. I mean, I was just looking up some numbers before we came on. Gartner has a bunch of projected public cloud TAMS. Anywhere from 180 billion to 260 billion. So even with Amazon, at the head of the pace, I can't remember their last statement. I think it was 18 billion run rate and everybody's saying Microsoft's growing so fast. They've barely still scratched the surface and that I think is what's really scary. There'll be 50,000 people probably reinvent. There's 10,000 here in New York. They have these summits all over the country, all over the world. And so as impressive as the story is, what I think is even crazier is we've barely just begun. You were just a public sector. That's a whole nother giant tronch that's growing. Well, you're starting to see the ecosystem develop nicely and cloud native certainly is a tailwind for overall Amazon. Obviously they have the winning cloud form that they've been ahead for many, many years. But again, competition is keeping up. But if you look behind us, you probably can't see in the cameras. It doesn't give justice, but this shows in New York, it's a regional kind of like event. It's now looking the size of what reinvent was just a few years ago. Public sector, some of which is the global public sector that Theresa Carlson runs. And really it's third year and roughly since it got big and started out a couple of years ago. That's now morphing into size of reinvent. So pretty massive. Yeah, they said there's 10,000 people here. I don't know how many were at public sector. 138 sponsored just some of the numbers that Werner shared in the keynote. 80 sessions, really an education session. It's a one day event. We're excited to be here. But what's amazing is even though pretty much every enterprise has something going on in the public cloud in terms of the vast majority of their workloads, still most of them are not. And really an interesting play. We were there with the AWS VM where announcement was made a couple of years back in San Francisco as kind of this migration path that's both been really good for VMware and also really good for Amazon because now they have an answer to the kind of the enterprise legacy question. I mean, Jeff, if you look at the big picture if you want to squint through the noise of cloud what's really going on is one the analysts that are looking at markets here I think are looking at old data. It's hard to know who's really winning when they look about revenue because everyone can bundle in revenue for Microsoft bundles office revenue in. So essentially that's hard to understand but if you look at the overall big picture the landscape that's happening is that the enterprise and IT market is moved from being consumerization of IT to digital transformation. Those are the two buzzwords. But really what's happening is the operational model of cloud has created two real personas in the enterprise from a technical perspective. The developers were building apps and operators who were running the infrastructure, running the software, running the dashboards, running the operations. And so you start to see that interplay between operators and developers working together but yet decoupled different personas. These are the ones that are changing how work gets done. So the future of how work and computing is going to be applied for end user benefits, user benefit consumers, whether it's B2B or B2C companies the cloud is the power engine of innovation and new apps are coming on faster and the roles are changing and this is causing a shift of value. This is what the analysts at Wikibon and theCUBE insights team has been looking at is that this is really the big thing and machine learning and AI really take advantage of that and you start to see IoT, security, AI start to be the critical apps to take advantage of this power of the cloud and as enterprises transform their operations and their development frameworks then I think you're going to see a whole new level of innovation. Right. They just had Epic Games on the company that makes Fortnite which is a huge global phenomenon. If you don't know anything about it ask somebody who's under the age of 15 they'll tell you all about it. It's amazing. It's a million gamers. Right. The core value proposition of cloud is still the same, right? It's flexibility, it's global reach, it's the ability to scale up and scale down and we've asked this question before and we're getting closer and closer with each passing days. We live in a world, John, with infinite compute, infinite bandwidth and infinite store basically priced at zero asymptotically approaching zero. What could you build? And if you could get that to the entire world instantly what could you build? And we're really getting closer and closer to that and it's a very different way to think about the world than whether you have the provision at 50% overhead and you got to buy it and plug it in and turn it on and that world is over. We're not going back, I don't think. If you look at the cloud players you've got Microsoft, Amazon, Google and then we'll throw Alibaba if that's more of a China thing. Those are the main ones. You've got Oracle, you've got Oracle and IBM in there. Look at the companies and look at the ones that have consumer experience and look at the ones that don't. Microsoft has failed in the consumer business although they have some consumer stuff really not really been successful. Oracle, Microsoft, IBM have been business to business companies. Google and Amazon have been consumer companies that have bolted on a cloud just to run their operations. So to me what's interesting is which one of those sides of the streets which one will emerge as the victorious cloud platform I think I would bet on the consumer side. I like Google, I like Amazon better than Azure and Oracle and IBM mainly because they have consumer experience, they understand the ultimate end user and built clouds for that and now are rolling out business. So the question is will that be the better model than having an Azure or Oracle or IBM who know the business model? But yet will the devices matter? So this is going to be a big thing that we're going to watch on theCUBE is which cloud play will win or does it matter? Is it winner take all, winner take most? This is the question. It's pretty interesting. You interviewed Mark Hurd many moons ago for a long time and he talked about cloudifying all the Oracle applications. The problem is Clayton Christensen book, Innovator's Delim is still the best business book ever written. It's really hard to knock off your own core business especially when it's profitable. That I think is Oracle's biggest problem. The other thing I think they have is they're a sales culture. It's built around a sales culture. People are going out and it's a hard sell. That's not what the cloud is all about. It's really the commercialization of shadow IT. I need it, I turn it on, I activate it, I don't need it anymore, I turn it down, I turn it off, I turn it over. So I think Oracle's in a tough position to eat their own business. IBM continues to try different things and with the weather company and Ustream and they're doing a lot of things. But the core three have such momentum. We'll see, we're excited to be there next week and kind of get an update on what their story is. But still in the enterprise they barely scratch the surface of the available workloads. I think that's the main story. The surface is just being scratched. If this is like the first or second inning of this game or the second game of a double header as Madhu said on theCUBE many times, he'll come on today, is interesting because if you think about the clouds that are best positioned to take advantage of new technologies like AI, like blockchain, like token economics, those are the ones that have to be adaptable and flexible enough to take on new things because if we're just scratching the surface, the new things that are going to come out have to scale, have to be data driven, have to be mobile, have to use AI, have to have the compute power. If you're kind of stuck in the old model and you have a Me Too cloud, it's going to be always hard to ratchet up and kind of always re-architect and change. You need to architecture that and essentially be flexible and be adaptive. To me, I think that's what we're going to look for here in the interviews today. And of course, security, Jeff, continues to be the number one conversation in AWS re-invent and re-invent public sector summit. Security is getting better and better in the cloud and some say it's better than on-premises security. I think the resources that can be applied at a company like AWS, the security teams, the technology, the hardening, the private fiber connections. I mean, so many things that they can apply because they have such scale that you just can't do as a private enterprise. The other thing is that people usually take better care of their customers than their own. And as we know, a lot of security breaches and data breaches are disgruntled employees or somebody lost a laptop. They're these types of things where if you're an actual vendor for someone else and you're responsible for their security, you're going to be a little bit different, a little bit more diligent than kind of protecting one charity inside the wall. And it changes the infrastructure. I mean, just in the news this week, obviously, Trump was in Helsinki. All I can say in my mind is, the servers, where are the servers? Where are the servers? With the cloud, you don't need servers. The whole paradigm is shifting. If you use cloud, you can get encryption. You can get security. These are things that are going to start to, I think, be the table stakes for security. The idea of having a server, provisioning a server, managing servers per se, unless you're a cloud service provider at some level, either tier two or tier one, you don't need servers. This is the serverless trend. Again, Lambda, Functions, AI, application developers, all driving change. Again, two personas, operators and developers. This is what the swim lanes are starting to look at. We're starting to get that visibility. And of course, we'll get all the data here in theCUBE and share that with you. This week, today in New York City, live theCUBE, I'm John Furrier with Jeff Frick. Stay with us from coverage here for AWS Summit 2018. We'll be right back.