 Hi everyone, welcome to the Cube Pod episode 22. I'm John Furrier, Dave Vellante. We're here every week breaking down the top stories in Enterprise Emerging Tech. Dave extracting the signal from the noise. What a week, I was in New York City, just got back, eight of a summit. New York City was a quasi local summit, local summit that go around, but it turned out to a big, huge AI announcement from AWS, big story there. And it was interesting to see the press push by Amazon trying to get in the action. The PR team did their best. I thought they, I gave them a good solid B minus. I didn't say they did a great job because they could have done better. The keynotes were, or it could have been better, but some protests on there, typical protests, but AWS did a good, a bunch of good announcements, eight new things, definitely right along my analysis. They do the right things and continuing to push. And they're playing the Amazon game. And we're going to get into that. I'll get into deep dive on AWS versus the other cloud players when it comes to the AI wars. But this is the big week where we must change the logo from the Twitter bird to X. And as Rob Hope, our editor-in-chief, writes X marks the splat. And iconic bird changing logo, iconic logo, the Twitter name tweet, tweet, Twitter tweeting. Virtually no one thinks it's a good thing. It's crazy. I mean, you could, you just given Mark Zuckerberg so many chances, mulligans on threads. It's unbelievable. And then there was an interesting perspective from a rising star in the social media world, Esther Crawford, who I love her videos, we're friends on Facebook. She's an entrepreneur. She sold her company to Twitter. Really like her, and she's cool. I like her attitude. And when she's up to, she wrote this huge long tweet. She had to read it. It was a real good thing. We'll get into that. Big weeks for earnings, Alphabet, Google, strong cloud growth, their AI workload numbers were up huge. Microsoft stock falls for demand on their cloud, but then they claim they got 9,000 new customers with Azure, with AI. So mixed reaction. And I'd love to get your thoughts there and obviously more news and the enterprise. But the big story this week to me is the earnings, the AWS continue to try to pound up, making up for lost ground on AWS. Again, our analysis has been right on all along. And there's a lot of tech out here, one random story I'm going to bring up. Obviously the Alina Khan is out there again, losing every day. But there's some China stories coming out that the government's really taking a hard look at China. And then I'll see there's a big Senate op-dead about promoting big tech and regulating, I'm not promoting, regulating big tech. So a new agency for regulating big tech. Just another attempt for more government layers. That'll be my rant section. So Dave, episode 22 kicking off. How you doing? Yeah, definitely good. Good, I was in California last 20 hours and you're neck of the woods last week. You were in the East Coast. We had an event in studio. It was a super cloud like live slash hybrid event put on with theCUBE, but made possible by IBM. So we got paid by IBM to do this, but it was good. It was a storage summit. And you remember the old IBM Edge, those storage conferences, which I loved. They were really good. Because we know a lot of storage peeps. I came out of that world years and years ago. And it was like a mini half day storage summit. And there really wasn't a lot of news. Really wasn't any news, frankly. But there was a lot of good content there. We had some of their, IBM always gives us good guests. We had like these really serious alpha geeks from the IBM lab side of the business. And I got to learn more about Watson X because we didn't get invited to IBM Think this year. And so I was kind of out of touch, but I was pretty impressed with what I saw. But they got to tell the story, which is I presume why they came to us. Because we're really good at helping people tell their stories. But the Watson X is basically their AI play, their new AI play, which actually looks pretty good. They got some cool data tools that I think are competitive with Databricks and a little bit what Snowflake are doing. And they got some advantages in storage. They got some good IP in the flash that can compete with Pure and Dell. So they got a good story. And it's a decent sized business for IBM. So we're hanging out with those guys this week. So that was what I was doing. And I definitely want to talk about Intel's earnings. I definitely want to talk about what you were, you're talking about with Lena Kahn, if they want to create yet another more government. Awesome. X, I got some thoughts on that. And then cloud, I spent today. So today's breaking analysis. You remember last month, the leaked redacted, the poorly redacted documents, leaked IBM, Amazon, sorry, Azure, Microsoft's Azure revenues, 34 billion for that 12 months ending June, 2022, which is much lower than everybody thought. So I spent the day today and then yesterday in the plane in the ride home, redoing my cloud forecast. So I can sort of bring you up to date there in terms of what that means for Amazon and AWS and to a lesser extent, Google market shares. Well, a lot of stuff going on. Go to the IBM store. By the way, the whole storage thing is, I mean, it never dies storage. I mean, talking about the AI wave, we've been following like a blanket, covering like a blanket has been all about storage. And you look at the storage companies like IBM, like Vast data, like Dell EMC, use and pure storage, they're all going to grow because like servers, there's more demand for storage and compute and networking than ever before. Even as companies right size and do cost optimization on one side, there's a whole open field of green field opportunity with generative AI and all the AI applications coming. So more data is coming in, more ways to access it and it's enforcing the storage companies to re-up their game and re-platform some of their storage. So, you know, I love that event that IBM did with us this week. Next week we got Vast data. I talked to some of the pure storage folks over the past couple of weeks. Same thing with those guys, NetApp, another one. They're doing some amazing things. Again, just the world is changing but the storage game still remains the same. You got to store stuff. And I think it's just such a lucrative market. It's just, it's been our core cube market from day one. So it's gone from boxes, right? You got to have a good box and metal bending where you're charged for the controller functionality, you know, inside that box because you could buy off the shelf discs at fries for, you know, peanuts and flash drives and then, you know, storage vendors would mark them up 10X. So it went from that type of business to one that was, you know, so-called software-led or software-defined. So everything became sort of programmable as coincided with the cloud era. And the hyper-converged sort of started that. Nutanix, guys like that really got that whole trend going with the software-defined or software-led was what we used to call it. And then the cloud forced everybody to go finally to ask a service. So you're seeing that certainly with Dell, Apex, HPE, GreenLake, they're doing, you know, GreenLake storage. Dell's got its Apex, its common storage layer. That's their super cloud. So that's changed quite dramatically. IBM's playing all in the software-defined game. You remember Herzog when he used to come on the cube with his Hawaiian shirt when he was at IBM. And then so he kind of helped lead that product transition along with Ed Walsh to software-defined. But now they're taking it to a new level which is driving intelligence into the storage which everybody's doing. And then you got guys like Vast, which are trying to completely change the world with some radical thinking. Hammerspace too is doing things that with distributed storage. That's really fascinating. So you're right, it like never dies. And now with all this AI and all this data and all this compute power, it just gets supercharged and there's a lot of opportunities for incumbents. There's some opportunities for disruption. We always keep saying, oh, well, there won't be another NetApp and then along comes Pure and there won't be any more independent storage companies. And then along comes Vast. So, and I'm not even sure if I would call them a storage company, but they're coming at it from a storage company. It's hard to do. It's hard to do. A couple current event things going on. Obviously the earnings will get into a second, but I just want to get your thoughts on not sure if you had saw, I have gone to see the movie Oppenheimer yet. Have you seen that movie? I saw it last Monday. I saw the rage of seeing great review. I haven't seen it yet. I'm gonna probably see it this weekend with my sons and daughters if I can get them to go out with me this weekend. Spend some time with your dad. What did you think? Yeah, it was good. I mean, first of all, they kind of framed it. I made Oppenheimer kind of a martyr like he got treated kind of unfairly. A lot of that was of his own doing. They didn't really... I mean, Oppenheimer was born with a silver spoon in his mouth. I mean, he had, fuck you, money. And they didn't really let you know that. You had to know that was the case or maybe you could semi-inferred if you read to the TV. But it was very emotional and I thought really, really well done. I think a lot of people will be shaken. I think we grew up in that kind of just after that era, I mean, we were in it, but we were little kids and you remember when we were in grade school, we weren't really... I was a little older, a little younger, so my brother was older, so they would have you duck under their desk and practice with the whole Cold War thing. But it was really instructive and extremely emotional and really a great story that they told. Yeah, we were a little bit too old for the under the desk thing, but there was fallout shelter signs. I mean, we had signs fallout shelter, like fallout shelter, like what? So honestly, a huge Cold War part of the history. Right now, people are trying to compare that now to some of the big text challenge around open source AI. It's kind of weird. I see no correlation. If anything, I would say that if there's any Cold Wars with China and Russia, I would say mostly China and some reports come out from NSI this week around a report about China's competitiveness against us and their 2025 mission to have dominant tech. At the same time, the EU opened an antitrust investigation this week into whether Microsoft abuses its dominant position by bundling teams with office. It's the first investigation in 10 plus years. And I think this is a huge story. It's in the Wall Street Journal and then carried everywhere else. We caught it as well. This is actually a very interesting story. This is almost exactly the mirror image of internet explorer and Windows. And is teams a good product? I've got the people all the time, they say, no, it's terrible product. And so I don't really like to use Teams because I don't have it. I don't really, because we use Zoom and we'll look at WebEx with Cisco. But I have no interest in bundling teams, using Teams. But John, this is, but so I like this move by the EU. I hate what Mina Khan's doing with M&A. It's just, you know, I can't stand that. But I like this angle because it's the right one. Not that I'm, I mean, you know me, I'm not anti-business. I think the U.S. Biden administration is anti-business, but this is legitimate. You can't like check, you can't not get Teams. They're bundling it in and they're bundling it in, you know, because you're saying it's a deficient product. I don't really like it either, but I do know people who do like it, but they're forcing people to essentially use it. And that's what the EU is looking into. That's exactly the right move, not stopping M&A for a third place player for gaming. Gaming, it's about things like bundling. And we can talk about it in our rant section, but I think it's a- Yeah, the slogan at Microsoft right now, job not done till Zoom doesn't run. And they have the power to actually put code in their system, Windows and Office and all Windows, Microsoft 365 to disable and disarm or play around with Zoom. So it causes weird stuff to happen. And so when you start thinking about security, remember Microsoft 365, no, it's just Office. It's Microsoft 365. It includes their security suite. It includes a lot of other things. So, you know, having an embedded bundled component, that's definitely competitive. And that's borderline anti-competitive because they can do things not checked to disarm the competition. We saw this with Lotus 123. When Office came out, they had a new spreadsheet called Excel. It was terrible. Lotus was better, but job's not done till Lotus doesn't run. Same exact philosophy. So this is definitely a legitimate complaint. It's funny, Microsoft got busted on the last one because of Internet Explorer, when they actually did it with Lotus 123 beforehand for all the historians out there, that was the first spreadsheet. Actually, Visicalc with Bob Frankston and Dan Bricklin was the first official spreadsheet. But Lotus 123 was the first commercial spreadsheet in the 80s, which I used a lot of. And then Office Excel came as bundled. It totally worked. It absolutely killed the market. They stole that market away, used their power of the suite bundled with Windows. They didn't get reprimanded for that, but when Internet Explorer came out, the first browser, I mean the second browser, Netscape was the first, that's where they got flagged. And that's what the DOJ took them down on, on that complaint. So very similar pattern here. Teams is embedded and into Office 365 and the Microsoft 365 productivity suites. So I said, I think I might have said this in the pod last week, it killed Visicalc. I didn't mention Visicalc, but Netscape, Lotus, WordPerfect, Novell, Microsoft killed all of those companies. Like literally killed those companies with Harvard presentation graphics, took them all out. And then here's the other thing, John. You think about when Bomber was running Microsoft, he like tried to do everything in his power to not innovate, just hanging onto Windows, trying to put Windows on the phones. It was just a failed strategy, but it didn't matter because Microsoft had such a huge software monopoly, they were able to withstand it until Satya came in and was able to turn around the company. And so you're seeing Intel doesn't have that software monopoly, it had a monopoly, but that monopoly is getting challenged now and you can see it in Intel's results. They're having more difficult time even though the stock was up today. But this to me, this move by the EU is legitimate. There was a guy named Lord Acton, he was a historian and he had a little quote, I'll share it with you. Power tends to corrupt and absolute power corrupts absolutely. So when these companies, I know I've been sort of defending digital these past several pods, but I think it's legitimate these companies get too much power and they use it in a way that the government should be looking at them, but what Lena Kahn's doing is bullshit. Well, this brings up the whole thing about the US starting an agency. This was an op-ed I saw New York Times, Howard, Senator Warren and the other Republican, what's his name? Not the guy who wears a shirt, the guy from North Carolina. I don't know who it was. He's a Republican guy. Doesn't matter. They want to start an agency for big tech. Okay, Lindsey Graham, Elizabeth Warren and Lindsey Graham sponsored a bill that will establish a new agency for regulating big tech. I thought Rob framed this well. Rob Hofer, our editor in chief, basically saying you got everybody on the left and everything on the right and they're like failing to convince all of us in the middle with the normal people, which is most of us, that big tech needs to be regulated on their terms and so they're now starting an agency to do that. And then whoever is in control of the White House is gonna sort of dictate how that agency plays like Lena Kahn right now. The Biden administration is anti-business. I voted for Biden because I thought he was a moderate and but they just like so anti-business and they're trying to essentially raise the cost of doing M&A with the biggest cost of M&A is resources and time. If you can slow down the time it takes for for instance, Broadcom to acquire VMware or Microsoft to acquire Activision, the executives are gonna say, ah, forget it, I'll just put my resource elsewhere. So she's effectively changing the rules of the game and I think she's trying to get the laws changed not to rant too much, but that's the wrong thing. We don't need more government on this issue. We just need them focused on the right topics. Well, now back to Elon Musk, we gotta get him in here because he's been such a figurehead in all of our pause, not recently, but he changed the logo with Twitter, huge backlash, huge deal, everybody was up in arms. Why is he doing this? Why is he killing a brand? Bester Crawford had this long thing. She was known for sleeping on the floor as former head of Twitter Blue. She got fired by Musk and she wrote this long thing describing how bad it was at Twitter, how old and archaic the infrastructure was, how political it was, the fiefdoms everywhere. Yeah, and that's what happens in these big companies, but in California, it gets to be like, all the dead was all around the company and all the big good people leave and it's all political, the fiefdoms. And so apparently it was a shit show internally. And then when he came in, he didn't make it any better. So again, Elon just on a whim changed the logo to X. That's changed the name, x.com, which was a company he started with the PayPal guys to try to do credit cards. So he loves the X, you know, spaces. But it resolves the Twitter, of course. Yeah, and it's now the logos are gone. So x.com goes to Twitter. You still tweet. Do you? Yeah, you still tweet. You don't X? We'll see how deep they go into the scrubbing of the brand. They tried to take the sign off their building in San Francisco and they illegally rolled in a cherry picker like Lyft without pulling a permit. And so they had him stop the thing in midstream and it's only ER left, E-E-R, Twitter. X-er, E-E-R, tour. I mean, okay, I like Twitter. You know, people crap on Twitter all the time. I like it. I like its features. I think it's really good. The blue check lets me edit. Let's me control, you know, what I send immediately. And there's some, it lets me do more than 280 characters. So the features, Twitter is fricking awesome. Now, whether or not this brand change is going to mean anything, their problem is still monetization. You know, I don't know if it's going to help them advertise. And Elon is probably their, the biggest detriment to that because he's so outspoken and, spoken and advertisers are like, maybe I don't want to advertise with this guy. But that brings me to threads, which I haven't spent as much time on threads and I'm sort of wondering what Zuck's going to do next, you know, because he is awesome. I mean, even though a lot of people don't like him, he's technically is awesome. What he's done with Insta and, you know, and Meta changed their name, you know, but didn't really make any difference. In fact, I would think that I'm waiting for threads 2.0 to see what he does there. Because I think the threads is clearly tailing off, right? Do you go on there as much? I don't. Not much, no, not at all. But so I got to believe this was not a one-shot deal. He's got something up his sleeve and he's going to come out with a bunch of new features and say, come on back in. So that's going to be fun to watch. But I like Twitter. I'm one of these all above folks. I don't necessarily have the time. All above, I'm mostly LinkedIn and Twitter. But I think Twitter is just good. It's really, really good. And so I don't really care about the name change. I think it's all theatrics. But the bigger issue, John, is does the world need this everything app? Do you want all your financial capability? I got too many apps. A lot of people think that Twitter is a right wing turning into a right wing cesspool. It's not, though. I don't agree with that. I think that's bullshit. I do, I do, too. Mainly because they're looking for reasons to get on Elon. There's definitely polarization. I mean, I definitely see polarization for sure. So we'll see. I mean, I think the perspective of Esther was solid. And I think he just wants to burn the thing down. I've always said from the beginning he's going to burn it down and rebuild it again. Well, what do you think about this everything? I mean, I have a lot of apps. I got too many apps. But the apps that I do use are best for you. I personally wouldn't have done it that way. I put a kept the Twitter name. If I was advising him, I would have kept. But again, I'm not a billionaire. So like, he's a billionaire. He can do whatever he wants. He can do. Do you think he's trying to do this everything app? Or do you think that's crap? I mean, you've heard that, right? He wants to turn this into the everything app where it'll do payments. Snap tried to do this. Facebook has tried to do this. I mean, Apple's doing it. You got to like that scene in Gladiator with you want to win Rome, win the crowd, you win Rome, right kind of thing. And here, Twitter, they're losing people. And I think he thinks he can rebuild it back up. It might be hard. I mean, it might be untenable. I don't think he's going to be. It's going to be harder. Is it possible? I see what you're saying. On the way around, right? When you want to win Rome, you've got to win the crowd. So you're saying you want to win the social game, you've got to win the crowd. But he's got a crowd. He's losing a lot of people on Twitter. Are people defecting from Twitter? I mean, I don't know. Yeah, in spades. Really? I mean, how many people on Twitter? It's maybe, if I'm living in a bubble, then it's just my seat in the universe here. It's looking valley, but everyone is like leaving. All the top people, traffic's down. 450 million people on the network. I mean, it's, I don't know. I find a lot more value out of Twitter. You know what I wonder? You and I have talked about this a lot. Is Threads gonna have a Twitter moment? We talk, remember the plane landing on the Hudson? Yeah, let me go on Threads right now, see what's going on. That was the Twitter moment. So if Threads can have a similar moment, but Threads doesn't do news. Like, I go to Twitter still for news. If something's happening out there, the first place you go is Twitter. You get the news faster than anywhere else. You know, or you call Stu. Because he's on Twitter all the time. Well, Threads is going through threads right now. It's just, it's just not compelling. I mean, I just get to see good content out here. It's just, it feels like Instagram wanna be, but it's like, again, maybe it's just me, but except I would act on Twitter from day one. So I'm an early Twitter user. All right, let's get into earnings, Dave. What do you see? Can I talk about Intel? Yeah, sure. Intel was up. They just had their earnings. Yeah, they were up 8% after hours last night. I think they're six or 7% today. And you know, I saw some really positive tweets. SubG put out some stuff. I saw some other folks put out some really positive things about how great Intel is. And so I responded, yep, revenue down 15%, non-gap gross margins down 5.5%, non-gap operating margins down 9%, client revenue down 12%, data center revenue down 15%. It's hard for me to get excited about this stock, but the stock was up 8% after hours. They're talking about Foundry having great growth on a $200 million plus base, so it's tiny. And they're talking about Mobileye. Okay, again, small base, $400 million or so. You know, the acquisition, which really never really did well. So I think Intel has the same problem. I mean, I think this is a reaction to the fact that they sandbagged their estimates, which were smart, good job, Pat. He knows how to play the game. And they beat estimates. And so people said, oh, wow, everybody's going to raise their estimates so it was a trade. They knew the stock was going to go up, all the insiders made money and everybody else. This is, in my opinion, not a reason to hop on Intel. They have the same fundamental problem that I've been talking about for years, which is they lost the volume war to ARM and they get competition from AMD, which is making better, more functional products and Nvidia, which is kicking the shit out of them in the GPU market. And so I just don't see a reason yet anyway to hop on the Intel bandwagon. As much as we love Pat, you've sent out a kind of douchey tweet. Hopping on mine about Pat doesn't come in the cube anymore. Ever since Pat hasn't been on the cube, his performance as a tech athlete has been hurting. If you're listening, I'm telling you, it's the Babe Ruth curse. You'll never win another Super Bowl. Come on. No, that's baseball. Brady curse. It's the Brady curse. Remember the Babe Ruth, you said that the Red Sox when they traded to the Yankees, you'll never win without me. The cube is your lucky charm, Pat. Come on, let's go. Come on, let's go, you know, right? Curse the cube. But so anyway, I don't know. And then obviously the other big news was Azure or Microsoft and Google announced. And you know, Google's kicking ass. It was funny, CNBC had a poll before the earnings, which stock is most likely to go up. And I said alphabet, absolutely. I mean, I don't know how you can get even more excited about Microsoft, they're so dominant. But the interesting thing there that people are watching is the impact of Gen AI on revenue and earnings, obviously. But there's no impact yet. And so, but I think there will be before the end of the year. I think it's going to be noticeable before the end of the year. And that's why I think the cloud guys are going to do really, really well. But looking at the cloud, Azure was up 27%. Google was up, Google Cloud, 28% Google Cloud Platform performed a little bit better. They had to kind of pull teeth to get that. But I, like I said, I spent my day and yesterday and today redoing my cloud shares. I want to share that with you. The one tidbit that came out, the first time I think to my knowledge, Microsoft talked about this, they said, for the first time, Azure is now more than 50% of the overall Microsoft cloud, which was 110 billion. So it's over 55 billion now. I had them at around 60 billion last year. But let me share this with you, John, the new market share. So just to give you a quick take, my old forecast in 2022 had Azure at almost 35% market share and Amazon just at 50%. And then I had that dropping Amazon to 47%. This year and Azure growing to 37%. With that leaked data, I've redone my forecast. I took literally 10 to 12 billion more than that, even almost $13 billion out of the Azure numbers. So right now I got Microsoft last year 55, I'm sorry, AWS at 55%. So up from what I have five points more benefit based on those leaked documents, Azure 28% instead of 35%. And then this year, Amazon holding, I got them at 53%. This is of the big for hyperscalers, AWS, Azure, GCP, and Alibaba. And this is just IaaS and PAS. We're one of the few companies, and I'm one of the few people that follows that closely. There's a handful of people who do it. But so the bottom line is two things. One is Azure wasn't as big as we thought. And two, they're still growing faster than AWS. I squint through the numbers and what's coming down to the cloud game is the same thing we talked about all the time. If you count the applications in their cloud, that's a huge number. Google has numbers there. Microsoft has their own applications. Microsoft and Google, yeah, that's a big number for that piece of it. Amazon has some stuff. They got Redshift. They got some applications in there but they have a huge ecosystem. So I've always been curious about squinting through the numbers and looking at the ecosystem of the clouds and saying, if you add all the revenue of all the ecosystem partners, and factor that in the analysis, which cloud would be bigger? My guess is by an order of magnitude, AWS would be monstrous. Now, that being said, that's why this chat GPT and OpenAI wave is huge because Azure has pulling customers on their earnings call. Sutton and Tell was saying they were doing what? Every 30 seconds they're adding 100 customers or something like that. I forget the number. 9,000 customers. 9,000 new customers in the quarter. Okay, those are people that were probably on AWS spinning up Azure servers for the AI piece of it. So again, this is, you know, Roche Motel kind of situation. Check in, you can't check out. So huge opportunity for Azure, major threat to AWS. And that's why AWS is on a massive campaign to make up for lost time on their AI misfire. Their PR team and their marketing missed it big time. And their PR, they're constantly getting all their insects on the road. Adam Sileski just talked to Financial Times. Love that he retweeted my article on I've just wrote. Z is just posted on SiliconANGLE on their big event they had in New York. Eight new announcements. Matt Woods on the road, he looked tired. Swami was trying to do his best. He did good on the stage. They got all their big guns on the road. They're out there making up for lost time. And they have to because they got, they're in a good position. And again, they're taking the narrative as of this past week. Pretty much along the lines, what I've been saying for over months now is that they're the cloud. Host and run your stuff on it. Don't try to copy Microsoft. I think they are sticking to their game, Dave. They're playing, you know what? We can't compete head to head on going with an open AI or own LLM. They got to be the site for all models, okay? That's what they're going for. I said, Matt Garmin told me in my exclusive interview a few weeks ago, that's what we learned at Open, as we learned at SuperCloud last week from everyone in the industry, that AWS is going to play the long game while people start building apps. Now they're going to put them on there. Now they did, they did announce they had thousands of customers already on Bedrock, their new foundation platform. Bedrock is the Gen of AI Foundation, curated data sets. They have SageMaker, which hosts all the other models. So the Lama 2 from Metta and Facebook, they got Huggingface, all the other open source models are in SageMaker. So you got Bedrock, SageMaker as the key tools for AWS. And then you got all the other stuff in Open Source. Huggingface is doing a lot of good work there. They announced Cohere as a new update, Claude2 update on their Titan model, just a lot of new stuff they're chipping away at. They're playing the long game. And I think what we're going to try to do is wait, let the hype settle and be in position for when all of the developers and builders have production code. And I think they're going to play the card around there, they're silicon and they're going to play the, we're faster, smaller, cheaper, come to AWS. So we'll see if that works. By re-invent, we'll have data on this. So I'm tracking this like a hawk right now. I know you're tracking the market share, but I'm squinting through looking at the generative AI pickup and we'll have a ton to report at re-invent. I'm telling you, I'm really getting the great, I mean, I had great means in New York City. Only had three PR means, which gave me time to go hunt. And what I found out was compelling. There are major people on the fence right now on what their production workload is going to run on. So the horses are on the track. And although Microsoft, I mean, got out of the gate early and Amazon didn't, this is far from over. I mean, this is like, you know, Amazon, all they got to do is start thundering away and they could really blow away everybody. So again, I think Microsoft's going to do very well. And I think this is a, you know, shoe horse race for the big clouds. And I think Google's the wild card. We got Google next coming up and, you know, we'll put the ear to the ground there and find out what's going on there. I like, what I like about Amazon is not only do they, they, you know, open the kimono and say, come on in. We want to host all LLMs, all kinds of LLMs. They have their own. So they're also vertically integrating with bedrock. I'm glad you mentioned the silicon, because I think generally Amazon has a five year lead in silicon relative to the other cloud guys. And look, right now anyway, when you think about Microsoft, prior to open AI, their MLAI strategy was almost completely reliant upon Databricks. And now it's pretty much reliant upon open AI. Now, maybe they got something else coming, but you know, when you got to pay other guys and you don't have your own, you know, that has an effect, but there's no reason that Microsoft can't change its strategy. We've seen that before, but I like what Microsoft, what Amazon is doing. I don't think it's a game over by any means. And I think unquestionably, Google is going to be player. I think AI, LLMs, generative AI is going to be a tailwind, most certainly for the big three cloud players. I think it's a tailwind for Databricks. I think it's going to be a tailwind for Snowflake. I think you're only going to have a handful of big LLM players, the big three clouds, open AI, maybe an anthropic and maybe there's some, you know, a handful of others that try, but I think there's going to be a lot of smaller models out there, whether it's at the edge or guys like theCUBE, you know, doing their own little thing, using open source tooling. But I think that, I think the Amazon is in a really good position, even though right now they're getting out marketed, I would agree. Well, the one wild card that I'm watching, I put this up in my interviews with some of the executives and then we'll move on to the rant section and wrap up the podcast is that with Amazon and AWS, AWS and Microsoft Azure. Amazon's success early on was about winning the developer's startup people in the garage, because the alternative was spending a lot of money to get up, to get something up there. You got to build your own box, ship it, and then put host it, versus swiping the credit card and getting on AWS. Clearly no data center, cloud native, cloud first, that created Airbnb, Dropbox, Twitter even use Amazon the early days. Anyone who's a startup in the web 2.0 movement, used AWS period full stop. Great. Look at their stock price since 2012. It's a straight up line total slope, hockey stick stock price. They won the enterprise. Everyone who was doing the startups went to the enterprise. Now they have a huge enterprise install base. They're taking a very enterprise approach to all their news announcements right now. It's all about the enterprise. Let's talk to the customers. Well, Microsoft has a huge enterprise presence and they're good at it. They've been doing it for decades longer than AWS. And so they have the advantage there. One thing that's not, that's a wild card in the AI race is the startups. If you look at what's going up on Silicon Valley and Axios had a story on this, Silicon Valley right now in San Francisco Bay Area is the dominant hub for all AI startups. Amazon has to make their cloud for AI appeal to both the enterprise needs, which is top-down executive, executive, build AI to the developers in a complex environment to satisfying the hackathon startups where there's teams forming all around the world right now, building a new company. And those teams are smaller, faster, and more coding friendly. They're really savvy. And Amazon's got to make it easier for the developers and the startups too. And what I'm not hearing from them is that message. And when I talk about it, they're like, oh yeah, that's what we're all good for. Well, it was for great for compute storage and queuing back in the old days. Now they got to make it better than the alternative for the startup, which is hosting their own box or using another cloud. So different power dynamics, but if Amazon web services can win the startups and make it just as easy to run on AWS versus the alternative of provisioning it yourself or working with another cloud, that's their focus. And if they miss that, they might go down the road on just the enterprise and get caught in a head-to-head battle of Microsoft. And you and I both know that Microsoft's got great enterprise chops. So if I'm Amazon, I play both horses. I have both of them in the game and I make sure both are successful. It's absolutely has to happen. So they got two cars in the race on the track, two horses on the track, that has to have, but I'm not hearing a lot from them. It's all enterprise, enterprise, enterprise. And that's the dangerous game. Well, like you said, I mean, Microsoft knows enterprise. You know, the big question is, how does AWS expand its TAM? And we're seeing some solution-oriented stuff. We're seeing some vertical stuff, things like call centers. We're seeing, obviously, doing a lot in telco and satellites. And so will Amazon move up the stack is obviously always the big question. And I think so far, the answer is, they want to be the place where builders go and move up the stack that way, take a piece of that action. So we'll see. It's going to be really interesting to see what kind of growth rates we get for this past quarter, the June quarter, and then Q3 and Q4 for AWS. I personally think it's going to stay relatively flat and maybe even tick up a bit and then definitely up tick in Q4. That's what I'm predicting is a result in part anyway, because of generative AI. And I think, you know, betting that the economy is going to stay strong. Okay, we got seven minutes left today. Let's get into the ranch. We got to let's rapid fire rain. Here you go. Go first. Okay, so there's a story this week in Politico. The FTC is ready, ready's a lawsuit that could break up Amazon. So my feeling is that a company is in the best position to decide whether or not it should break itself up. And of course, there is a lot of people left a lot of people to infer this means breaking up AWS from Amazon. But that really wasn't the focus of the FTC. The focus was really on prime and on the advertising business. And the interesting thing in the advertising business, the way I liken it is when the Hoover Dam was built in the early 1930s, you know, Great Depression was just starting, people were desperate. So they had all these workers come out in the dam and they would put them up in these, you know, in these, basically these, these, these hots, you know, and they had a commissary and they would charge the workers out of their salary. They'd take, you know, their, their, the cost of room and board and the cost of their food. And that's kind of what Amazon, evidently is doing to its advertisers, forcing them to sort of advertise and give the money back. And prime, I'm not as sort of, you know, convinced, I mean, prime is a great service. I know they were making it difficult to leave prime, you know, big deal, that's easily fixable. But in general, I don't like the government coming in and saying, okay, we're going to break up companies that are, you know, publicly held companies. It's not like AT&T, which was highly regulated, you know, industry and had a, then the government gave them a monopoly. These guys earned the monopoly for themselves. They should be regulated. If they're breaking the law, they should be, you know, held accountable, I guess I should say, but I think, you know, this is another example of the FTC. They want to create an agency as a watchdog. They want to break up companies. They're going after Google. Then, you know, the EU, I think is right, going after Microsoft, but I think in general, you know, too much government is not a good thing. I think that I much rather see markets work themselves out. They always seem to do so. Yeah, I guess I have a mixed rant. I'm quasi-ranting on the X thing because it's just so pivotal in the history of my life in tech because obviously Twitter started as a result of the failed podcasting company. My podcasting company failed. We started Silicon Angle. And then Evan Williams and Dorsey's podcasting venture failed, they started Twitter. So I knew these guys from day one and before I even started. So, you know, I love the Twitter vibe. So Twitter has been there for the beginning. So I'm kind of bummed to see X because I don't think he's valuing the users that love Twitter like us. And it just seems to be just kind of a, you put someone who's got Aspergers in charge of a platform, this is what you get, right? So smart guy, but stick to the product. Yeah, so, you know, that's my rant. Just don't, just do the product, stay out of the brand and marketing side. So I'm not a big fan of the X. I'm not going to lose any sleep over it, but it's one of those things where, damn, you should have done that. So that's my rant. The other one is this big tech agency. Okay, this is where, you know, just from my personal philosophy, I do not like government getting bigger. Okay, so senators propose creating new agencies for reading big tech. Do I think big tech needs to be kind of like checked? Yeah, sure, absolutely. There's been some idiots running some of these companies that don't have any political savvy at all. They need more than a policy department. And I have a friend, Sunil Delavoy, who's writing a great paper right now on this called the jizitsu and policy and how to make it more mainstream. I'm gonna work with him to help that get published and get the word out, but there's no way that we should have an agency regulating big tech. They're not bad people. The platform's got out of control. They're there to make money. And so that's their profit incentive. You start getting into the socialism side of tech, then where does it stop? Now, the question is maybe they've become so big that they have to be run by the government. Okay, and maybe buy that argument, but like really? There are too many issues to address and it just seems like this nonstop left wing, right wing polarization is huge. And the team's thing, I think that's not a rant. I think that's a positive rant. Microsoft's got a lot of competitive advantage and the rich are getting richer with the cloud, right? So they got to think about the ecosystem of entrepreneurship underneath it. If the big guys get too big, okay, then it doesn't foster innovation. That's where the line is in my mind. So that's my rant and two good rants, yeah, good stuff. And yeah, busy week, a lot going on was more there. I mean, Alphabet CFO is taking on a new role. We saw our friend Bruno as these that go from Google Cloud to Google G capital agency. David Strum digging into the resurgence of more banking Trojans out there, the QuackBot, whatever that means. And then I said, a lot of just so much stuff. And by the way, the AI stuff's going to be amazing. And of course we got the big event coming up SuperCloud 4 in October. Last week of October, SuperCloud 4 will be all about AI. Go to supercloud.world because I'm still digesting. I'm going through the clips on SuperCloud a couple of weeks ago. The content, John, is fantastic. I mean, the SuperCloud 1 content is really good. But I'm excited, it was good. We had 11,000 Uniques come to SuperCloud 3. We had less signups than we had at SuperCloud 2. But we had as many Uniques at the beginning, as of now, that we had in all of SuperCloud 2. So it's funny, you know, our content is open so people don't really have to sign up. But right now you got to sign up to get the on-demand content. Well, I see a lot more traffic on LinkedIn and Twitter. So it's really starting to flow now. It's got a lot of legs. So we'll see, you'll see more SuperCloud World coming for channel number four is coming up, SuperCloud World. So, all right, that's signed off on pod 22, David. We'll get it in the books. See you next time, everybody. All right, see you next week, John.