 The Cube presents On the Ground. Here's your host, John Furrier. Hello everyone, I'm John Furrier with Silicon Angle, The Cube, we're here in San Francisco, at the Ritz-Carlton for the exclusive coverage of Amazon Web Services, AWS's big announcement with VMware's CEO, Pat Gelsinger, with the CEO of Amazon Web Services, Andy Jassy here. I'm the big announcement of VMware managing a cloud on Amazon, a lot of good stuff. And our next guest is Terry Wise, the Vice President of Global Alliances. Great to see you. Good to see you, John, thanks for having us. So you're the man, I'm at Bowtown, Andy came on stage, obviously delivered a great performance. Kind of humble, like he always is, but this is a really big deal and you guys are obviously killin' it on the public cloud. But this is like almost sweeping the double header. Game one, you win the public cloud. Game two, enterprise cloud. It's pretty much in your back pocket with the size of VMware. You got to be happy with this deal. Yeah, we're very pleased with it. If you look at it, we don't look at it in the terms you just articulated, find it certainly entertaining, but if we really look at it as how we're gonna best serve customers. And at the beginning and the end of the day, this all came about really by customer demand. You heard both Andy and Pat talk about it. Enterprise customers have been talking to us for years. Hey, we want to run these workloads across multiple environments. Help make that happen. And now it's the right time and place and the right market conditions to make that happen. Yeah, tongue in cheese side, nice political answer on the Amazon front. But in reality, we've been covering both Amazon and VMware both in a very deep way over the past years. And I was questioning myself, why has Andy Jassy come into San Francisco to announce a deal with VMware? It seems like VMware is groping a lot of criticism on the false start to the cloud. I obviously knew something big was going on, so I felt that. But this, my question, you're innovating so much at Amazon. But why slow down and go work with VMware? Obviously, it's the customers. Talk about the customer impact, because this is important. It's not that you guys are straying from the vision of AWS, which is in the cloud, a lot of innovation, sets of services. Is this just another service for AWS? Well, it's another service, but it's a very different service. To your point, this is really going to accelerate customer adoption. We're going to make it easier for enterprise customers to move to the public cloud environment, because they can leverage the same software licenses, skill sets, and tools that they've used to virtualize and build private clouds. So it now naturally extends into the AWS environment, and it should help everybody move faster and get all the goodness and the benefits of the cloud much quicker. So you had two customers on there on the stage. One was Western Digital, and they got a huge integration. It's interesting, the use case for him was analytics. Yes. So that's an Amazon benefit too. So it's not just VMware, so the deal is VMware customers get to run the VMware stuff onto Amazon. So you give them a lifeline for their business models. Ragu was alluding to ours being more specific. This allows them to preserve their licenses, as well as give their customers a bridge to the future. But reality is, there's a ton of services on the Amazon side that they're going to take advantage of. It's not just they're going to get Amazon, they're naturally going to use. What services do you guys see the VMware customers using the most? Oh, that's a great question. And I think, I mean, it really runs the gamut. If you look at analytics for sure, I mean, that's a no-brainer. If you look at more of the innovation use cases that are happening around IoT, the things that don't fit, the use cases that don't fit nicely into kind of your private data center because of the constraints that you have there. Big data, obviously the variable kinds of workloads, massive amounts of storage, all that data that's coming off these IoT sensors has to go somewhere as three, Redshift. I mean, all of these things are just natural extensions. To be completely canon, I have a hard time thinking of any that would not be an extension to the VMware. As Dave Vellante says, there's a lot of cloud-native agility and innovation coming on Amazon. How is that going to connect into the VMware? So the customers just say, hey, I'm a VMware customer. I'm now going to use vCenter and I got all my comfortable dashboarding and tooling and stack technology VMware. Now I go to Amazon, I just plug into Amazon services directly. Yeah, so I'll have an AWS account that's going to spin up the AWS native services. We'll run those alongside the VMware offering and through vCenter and the management tools, you'll leverage our APIs into CloudWatch logs and all of our different management functionality. So to get a single view across that integrated landscape. So the number one question I had coming into today was why is Andy Jassy coming to San Francisco? So in your own words, how would you describe the magnitude of this deal for both AWS and for VMware? It's certainly perhaps the most unique deal we've done. We've done a lot of strategic alliances. We announced one last year at this time with Accenture. It's one step shy of a joint venture. That's been a big deal. We've got a number of others. We just announced one with SAP a few weeks ago here in San Francisco around the BW for HANA launch. But in comparison, I mean, this is obviously a big deal. And the enterprise adoption has been up too. Can you comment on any color around uptake with the enterprises prior and vis-a-vis this announcement? I'm sure it's going to be a lot more. This is a non-ramp of three million customers. But in general, Amazon was already winning in the enterprise, correct? Yeah, I mean, the fastest growing segments for us clearly are the enterprise and public sector. I want to make sure we conclude public sector in there. It's probably the first time in history. Theresa Carlson, great doing a great job there. Probably the first time in the history of the IT world that the public sector in many cases is moving faster than the private sector. It's one of my favorite stories to tell. And I notice on the region map you had a Gov cloud on there. That is the public sector cloud. So VMware customers in public sector can tap into that. Is that similar? Is that going to be part of the deal? That is on the road map to support our Gov cloud initiative. I think that'll come in a kind of phase two, but absolutely. And what we're finding too is most of the governments we're working with now and government agencies don't require Gov cloud. They want to actually want to run in our public cloud because it's equally secure, more secure, more capacity, more flexibility, more choice. Terry, thanks so much for coming on, sharing your thoughts here at the exclusive announcement. In a nutshell, what's the big takeaway for AWS folks, customers, and VMware customers? What's the key message that you'd like to share? I think today we're even more relevant than we were yesterday in terms of the ability to actually serve an enterprise customer's full suite of workloads, faster, more innovative, and cost effective. Awesome. Great. Thanks so much. Appreciate your time. John Furrier here in San Francisco, the risk called for the exclusive Amazon Web Services and VMware big partnership. Thanks for watching.