 Okay, welcome back everyone. We're here live in San Francisco. This is theCUBE, our flagship program where we go out to the events and extract the signal from the noise. I'm John Furrier, the founder of SiliconANGLE. I'm joined by Jeff Frick, co-host on this segment, CUBE general manager, filling in for Dave Vellante. Days done here, we're done broadcasting live coverage wall-to-wall at Amazon Web Services Summit. A lot of great guests, Jeff. A lot of action here, cloud. So the big news is about the enterprise. Amazon is clearly marching the enterprise. They're humble. They're on their messaging, Jeff. I mean, they're on their messaging. Oh no, we're just in the customers. We're just in the customers. Okay, yeah, okay, got it. You're going after the enterprise, full throttle. That's what's going on here. And they are absolutely banging the drum. Price reduction, increased functionality. Price reduction, increased functionality. The cadence of the process of Amazon is like what Moore's law was with, you know, doubling your cycles, whatever Moore's law was. Amazon law has simply reduced the complexity, increased functionality, and lower the cost. Yeah, I think the message that I got out of this show that's a little bit different, but the volume was raised is it's really about innovation. You know, there's so much talk in the marketplace, not specifically in tech, but how do you get innovation in your company? How do you inspire people to innovate? How do you build a culture of innovation? And what's interesting is Amazon has a culture of innovation, but what they're really talking about is by using a service like a cloud, where it's easy to spin up an instance and take a risk and try something, that the cost to experiment, Ariel said, experimentation cost is driving to zero. And by driving the experimentation cost to zero, that encourages people to experiment, and that really drives the innovation. The other piece of that is by removing the barriers that were formerly IT, and they're talking a little bit about trying to empower IT, but by removing those barriers, you're now increasing the breadth of the people that can do that experimentation. So you're increasing experimentation to a broader set of people, and you're enabling them to do more experimentation by driving the price to zero, and the net net of that is innovation, because the stuff that doesn't work, you throw it away, the stuff that work, you drive forward. So I thought that was a pretty interesting take on why this is so transformational, and the fact that Amazon is trying to do this and actually implementing this within their own company is what enables them to really just kick out these features, product services at a torrid pace, and then Ariel even said, they have kind of a little internal game about who's driving cost out the quickest, whatever they hit that little trigger point, go ahead and pass that on to the saving. To the customer. Clearly the innovation strategy is working, they're disrupting, they're lowering the cost, increasing functionality, they're innovating while disrupting, really amazing formula, and that's, all happened at once, is a unique combination for any company in any generation of time in business. But the thing here, the show that I want to share with you that I learned is, really it's about the big bounce off of re-invent. The re-invent conference was a killer event, they launched some pretty amazing stuff, the key things were Kinesis, AppStream and WorkSpaces and some other stuff, they were point releases on some other products, but the major game changer, Jeff, was the Kinesis, AppStream and WebSpeak Spaces, clearly they're moving, advancing those products significantly, WorkSpaces now available in two zones in the east and west, soon to be all areas in geography, Kinesis, really kind of, I think they kind of knew what was going on there, they had a little twinkle in their eye, I think we effectively called it out in our analysis that it re-invent, it's going to close the loop, we absolutely called this one right, Kinesis is a home run, people are using it, it's a great aspirin, it solves a problem for developers, it puts people in a position to start doing analytics with dashboarding, and then ultimately it brings the final piece of the evolution of this Kinesis vision, and that is real-time business intelligence happening at a level that no one's ever seen before. So this is agile, this is the future, and to me, this is the modern infrastructure, the modern business era, what Amazon is doing with cloud is the printing press, and now everyone else wants a printing press, Google announces a low-cost, high-yield printing press yesterday, HP's got their cloud, they're pushing down on the street, IBM's got the reorganization, Oracle, EMC, VMware, and Pivotal have a cloud initiative, Rax, Ace, Microsoft, oh my God, and startups like Cloud Nexus, and Dockers, all these companies, so it is going to be a bloodbath. Yeah, and what they say, this is the AWS Summit, so these guys have been at it for a while, they've got a big lead, they're singularly focused, and it's going to be tough for the other guys to catch up. The other guys obviously have a big footprint in the enterprise already, that they're going to try to leverage, so it's really an extension of their existing customer base, and their products and services that are already in there. The other thing I thought was really interesting is this is a singular focus on latency, and this really comes from being born of the web, and being a web application all the way back to the original Amazon, the bookstore days would seem like forever ago, that we used to use Amazon to buy books, but when you're focused on the cloud app, it's all about latency, and we actually heard this, John, the two of us at the Fluent Show last year from the Google guys, we're talking about just constantly shading milliseconds and milliseconds and microseconds off of things to deliver this multi-screen app, having all the application in the cloud, and you think how much easier that is to not deliver it all these different devices when everything's still on the central cloud, and you just change the interface. So it is interesting, I think one of the other challenges I see for Amazon, perception or reality, because perception is reality, is the enterprise readiness and the security, which clearly Ariel said that he thinks they've covered it, they've invested a lot of money over the last four or five years in this space, and then the other piece is having the internal IT folks begin to embrace it and see the opportunity to see Amazon and AWS as an asset, and not really a threat to their job, and I think that was kind of the impact of shadow IT and the enterprise is the enterprise IT guy thinks I'm going to lose my job if this thing takes off. So they've talked a little bit about here today, trying to embrace and power and enable the internal IT folks to leverage this type of a resource, but I don't know that that's a real clear message that's made it into the enterprise yet. Well, the enterprise is very much aware of Amazon's, no doubt, the question is, I don't think Amazon is enterprise ready, or more importantly, I don't think the enterprise is ready for Amazon. So depending on how you look at it, that's two directions. But I want to ask you a question, Jeff, and I want to just end the segment this way. Let's talk about who we talked to today and what we learned from them. We had Flipboard on, we had Al Fresco, we had the Kinesis head of Kinesis, all some great people. What did you learn? I mean, to me, my takeaway was emphasis on education, obviously it's Amazon's Web Services Summit, which is a learning environment. So obviously they want to bring out the educational piece, but to me, speeds the game. Cost reduction, everyone talks about economics, but speed is the action. Speed, and again, I think using the platform as a way to innovate by reducing the cost of experimentation. To me, that was really an interesting thing, and it drives back to the big data world that we're living in, that you can A-B test. It isn't about creating the perfect product and shipping it, it's about getting something out and listening to your customers, and then improving on it. It's really an agile way, not only to do software development, but to run your business. And the fact that they have the big announcement with Pam on from Infor... Pam Murphy. Pam Murphy, a huge $3 billion, or $2.5 billion, no one really knows, it's a private company, software company, that is moving, migrating their customers and all these specialty enterprise ERP systems and specialty enterprise apps to a cloud delivery model. That's a big statement. That's probably not all net new business. So to migrate that business and really start to eat some of their own business, to get, to buy into this, and then I think the other quote that came up in the keynote this morning, which is not what should go to the cloud, but what shouldn't go to the cloud. So I think we're on this march, it's just a matter of time. There'll always be some stuff in the data center, but I think we're well on our way. Well, I think what's interesting, Jeff, is to look at the different approaches. So let's look at the leaders on the track. Amazon clearly number one, far and away the lead, but do not count Google out. And I said this at Amazon re-invent. Google has scale, and Google can price subsidize the hell out of it. Look at the different styles, Andy Jassy, Harvard Business School, process-oriented guy, very metric-driven, very humble. The customer's a focus, and they look at Google Cloud, the leaderships are different. The guy who runs Google Cloud is much more engineering-oriented, academic culture, getting, making the best product on the platform on the planet, conflicting styles. Interesting dynamic between the two firms. But I think the really important thing is that Google has shown that they've got the cash flow with their core business to fund a lot of experimentation. Now with their shopping service, I don't quite understand what the Google Express thing is all about, but clearly they've got a cash flow machine on their core business that's enabling them to fund and invest in all kinds of interesting things. They got the car. So Google's clearly got the scale. They clearly got the chops that are born on the web, but I think we'll see how they get in. Clearly the Google Apps strategy is a way that they're trying to get into the enterprise. I think they'll have some success there. I know I use things all the time and it really adds collaboration to what has traditionally been a single event with a Microsoft Office suite. So it's interesting. I think HP Cloud, clearly big player in the space, putting a lot of emphasis behind it. They've got a big installed base, their customer service engineering-driven company, but they're a little bit behind. HP has a great opportunity. They have a great installed base, but their cloud is trying too much to be like Amazon. And Meg Whitman, if you're watching, you know this because you went to business school too. There's diseconomies of scale. If you try to meet a trajectory, you just can't get there. Amazon's got eight years under their belt. I think HP is mistaken in trying to copy Amazon. I think they could do what IBM's doing, change the rules of the game, shift to their strengths and services and their IT service clients. So like, I think IT is a real winner for HP. I think they could win in the cloud. I think HP has a chance, but if they try to copy Amazon too much, there's too much cat-back investment and way too much, way too much energy. You could win another way. IBM's interesting. They're all in on cloud. Blue Mix, integrating all their IBM products. I think that's a winning strategy for IBM. I think IBM and they're going to do it. Azure is going to be good. It's not called Windows Azure anymore. It's called Microsoft. Microsoft has a chance. So the enterprise clouds are significantly in play. I think they all have a chance. It's an exciting time. And the other thing too is it's kind of the integration of cloud and big data and a way to leverage that in this new business infrastructure. The two I think are tightly coupled because the two kind of enable one another and they are really helping to find a new way to develop a new way to go to market and a new way to deliver value which is not figure it out, spec it out, build it, ship it, it's get it out, listen, iterate, get it out, listen, iterate. It's really agile and it's proven to be the way and also combine that with the plug and play modularization of all these services and software components and the way they all work together. It's a really exciting time and I'm glad we're here, John. You know, I think it's really going to be the gauntlet thrown down by Google and I think the enterprise guys got to figure out how they're going to play with that because those are massive, massive players with a lot of subsidy behind them and a lot of functionality. So this is theCUBE. We are here live in San Francisco. This is where the action is. This is the Amazon web services. This is exclusive silicon angle. Cube coverage of what's going on in the cloud communities. Our focus on the cloud is going to be ramped up again. You're going to see us at OpenStack, a lot of other events. The Cube is a great place to bring on conversations, trusted conversations and also crowd chat.net slash AWS summit. So Jeff, great job today, great lineup. Again, just getting inside the animal of AWS. Understanding the factory, great innovation. They're disrupting, commoditizing, at the same time innovating. A rare formula. I love this cloud business. Love the big data business. It's exciting times. Stay tuned with theCUBE. It's looking angle and thanks for the team and Mary, Kamarata at Amazon for setting everything up. Really appreciate it. Keep following theCUBE and stay tuned and we'll see you next time.