 We've been in Las Vegas for the exclusive coverage of SiliconANGLE and Mookie Bonds, The Cube, go out to the events, scour all the news, go where the stories are, find out where the signal is, share that with you on siliconangle.com and mookiebond.org, and of course the videos are on siliconangle.tv, and we've introduced our new crowd chat application which is going, it's more like Reddit AMA, Dave, so people respond to that, ask me anything, chat when I tell people about that. So we're here to get the story from Stu Miniman, Dave Vellante, my co-host, Stu Miniman, analyst at Wikibon, has been here since Monday, getting the analyst meeting, talking to customers, getting the scoop out in the ground, scouring for stories. Stu, let's kick it off. What are you seeing? What do you learn? What's your report? So John, it's exciting to be here and the excitement is palpable at the event. So this has been called the Cloud Super Bowl. So last night, all the Clouderati were hanging out at the bar, I know you were talking with Werner Vogels, we saw lots of people that we know from across the community, a lot of people that were at the OpenStack Conference in Hong Kong last week, and Amazon is a force to be reckoned with. We saw last year, when this event kicked off for the first time, it was really the shot heard around the enterprise as to Amazon is coming after the enterprise, coming after every workload. Andy Jassy this morning talked about how the traditional people like to say that 75% of stuff is going to live still on-premise and Amazon thinks it's more like maybe 10% will live on-premise and the rest of it will live up in the cloud, so after John, we've been watching this for a bunch of years, that public cloud versus private cloud argument that we've been having for a while is still going on a little bit. Yeah, it's not a lot of water on that. Actually, that doesn't hold a lot of water and that ship is really niche in my opinion. I think Eucalyptus has got a focus strategy on that. But Stu, you're right on the money and I think Wikibon called it, we called it on theCUBE. Dave, two years ago, we saw, we said on theCUBE, Amazon is a freight train heading right to the enterprise. We called it. I think we were the first ones to actually call that. And then last year, we had coverage. Now, Amazon is full throttle as Stu said, Dave, going hard at the enterprise and they're not holding back. No. Just saying specifically, we're doing auditing, these notifications, all this stuff is enterprise, the feature set. No, and I think that the interesting thing to me is the competitive dynamic that you're seeing now with the traditional IT vendors. They're all lining up. I mean, they've been thinking about this for well over a year now. They saw a re-invent last year. They heard, you know, Jassy's keynote and they reacted. Now, they haven't responded in terms of developing solutions that are as competitive as they need to be. But IBM went out and bought software. You see, you know, VMware spinning off pivotal. So they're making their moves. And I got to give the enterprise guys a lot of credit. You know, they're not dear in the headlights like the enterprise guys used to be in the 80s and 90s when they would deny things like, you know, the microprocessor revolution. So companies today, they're much more well funded. And so it's going to be really interesting to see how they fight and hang on to their existing base. Stu, what do you think? I mean, you walk around a re-invent. A lot of developers here, not a lot of CIOs in science. I mean, I think I'm the only guy with a suit on. But so, so a lot of developers, that's their stronghold. But can they bleed into the enterprise and really unseat that trillion dollar opportunity? Yeah, Dave, and the answer is yes. You know, I've talked to, there are a few of the enterprise players here and people that even sell infrastructure here that are partnering with Amazon. And they say there are some buyers that are looking at these solutions because it's a different pricing dynamic. You know, you guys did a great interview with James Hamilton earlier and talked about, you know, storage, for example, and just how Amazon can really just, you know, change that pricing dynamic so much. It was interesting. I actually had a side conversation with James and we talked about, you know, they're different classes of storage. You can have S3 or, you know, I can do the, you know, penny per, you know, terabyte per month and do that. And I said, well, you know, if I do the cheapest, you know, offering that you have, you know, how many people really want to do that? And he said, well, you know, because we offer that and enough people do it, which can, you know, disrupt tape, it also gives us massive scale that we can then leverage. You know, they talked about the virtuous cycle this morning. Amazon adds more features, more people use it. They get more feedback for the community and Amazon just gets bigger and bigger. And, you know, I look at things from a supplier and from an infrastructure standpoint. I mean, you know, Amazon is such a big player. They, you know, have to be like the largest buyer of servers in the market. I mean, you see Intel's here. And, you know, same for, you know, switching and, you know, disk drives and flash. I mean, they're just a huge, huge consumer of these technologies and can really just have a huge impact on what the market's doing. So today's to Amazon announced workspaces, the VDI for the cloud, essentially. What's your take on that? Yeah, so, you know, definitely the one that caught all of us, especially with a virtualization background. You know, a little bit surprised that they did this because VDI has been, you know, this hyped solution for many, many years. And it's been so long that it really hasn't delivered on it. Our analysis, of course, we've looked at this for many years is, you know, it's, you know, the pricing, the complication of putting this entire stack together and all the politics of putting, moving from your traditional desktop environment into, you know, some new version that hopefully allows you to be more mobile is very complicated. So some of the biggest barriers are, you know, performance and cost and, you know, how fast it is to roll this out. And Amazon really can have a significant impact on this. And, you know, it is a, you know, credible, you know, player in this space now. So who gets impacted? So Jerry, we had Jerry Chen on earlier. He basically said, hey, I started the whole VDI thing, you know, kind of coined the term when he was at VMware. Obviously he got Citrix making, you know, inroads. A lot of customers applying VDI in certain use cases, right? But this still seems to be, I mean, I tweeted today, VDI is like a do-over. Even John, you and I talked about, you know, it's a couple of VM worlds ago. Why did they even call it virtual desktop? It's all about mobile. So I feel like you guys were kind of down on, you and Jerry were a little bit down on the VDI market in general this morning, but I feel like there's still a lot of potential there. Let me be clear, I'm down on VDI in general because of the misfires over the years, and that's been basically frustrating. That's been very frustrating, but the tide is turning with edge devices, Internet of Things, big data analytics we heard from Sumo Logic, that's Splunk. We are now going to see, I believe, the right VDI using virtualization and automation to make the stuff just work, right? It's like what ServiceNow is doing with IT service management. Making the edge device work seamlessly is the goal, period, whether there's a desktop or mobile. You know what it reminds me of, and this is kind of a weird analogy, it's not as big, but you remember when Compact dominated the PC business, and Dell came late to the game, but they came with a better model, and Dell became a dominant player, and they disrupted, I feel like the timing is right for Amazon. They're architecting around mobile, they've been hiring tons of mobile developers, Andy Jassy told us that, John, we're at our one-on-one in New York, so I actually feel like a lot of people are going to glom onto this. So I guess my counterpoint to that would be, one of the worst things about working for a big company is that corporate image. I hate to use my corporate image, I hate to have to dial into VPN, and really what VDI is doing is extending that. So for the price of what I can do for Amazon Workspaces, it looks compelling, but what if I just give everybody Chromebook and use Google Apps? It's a heck of a lot cheaper, and Dave, we don't have a corporate image that we can live on Google applications, I don't need it. So if I can move to much more modern applications, if I'm on sales- I don't even know what Outlook looks like anymore. Yeah. So if I can enable SaaS providers more and have a new mobile engagement. Okay, so maybe you guys are right, maybe all you Lotus Notes users out there, you're going to love the Workspaces. Yeah, so the nice thing about Workspaces is, right, if I have a Windows environment today, and I was interested in VDI, but the cost and the complication of it were holding me back. This is a good thing to try, and who's it hurt most? I think Citrix is the one that loses the most here, who is a pretty big partner of VDI. Stu, I got to ask you, do people want to know what Stu thinks? I get emails all the time, what does Stu think? So I got to ask you, you're very social on the social media, what's going on with this event? What do you think about what's happening here? Give us the Stu perspective. What's going on around the ecosystem, the people involved, some of the personalities, and what are people thinking about him? What's going on with the show here? What's your take? What does Stu think? Tell us. Thanks, John. I'm happy to share with the community always. For me, it's really that dichotomy. If you think, look at, if you come to some of the kind of more traditional infrastructure guys, you've got the hardware huggers out there, and we've got all of our applications out there, it's really refreshing to see so many startups, and we talked about all the developer communities. I mean Hack Amazon, they're not giving out teachers, they've got hoodies for everyone, so we should all be coding and helping build the new generation of where technology goes, so what's going to happen to the IT workforce? Hopefully, two years from now, you won't be doing the same thing that you're doing now. There was a quote I loved from Amazon that said, if you go to most people in IT and said, do you want to keep doing the same thing day after day, month after month, year after year, they're going to say, no, I want to innovate, and enterprises want to innovate, so if I have things that I can try it better, move faster, it's a little bit of cool late injection here at Amazon, but it is a compelling future. Final question for you Stu, as we wrap up the Stu segment here, what are people talking about privately? What's going on? I know you're in on a lot of inner circle conversations, what's the private conversation? You don't have to name names, but what are people talking about privately behind the closed door about what's going on at Amazon? So I mean, Amazon is a force to be reckoned with, but it's a challenge. How much do you really want to partner with Amazon? Because there are cases where Amazon, we'll just take over your business. If Amazon just kind of grows and grows and grows, how much control do they have? We talked about how much control Microsoft had for many years and how they would take over markets that their partner ecosystem had. We've seen what VMware has done, they built a huge ecosystem, and they're growing out some of their future functionality in that battle, that tug of war, and you expect to see the same with Amazon as they grow their ecosystem. There's a lot of people riding their coattails and building their businesses around it, but in the enterprise especially, there's only so many dollars to be spent, so where do I make those bets, and where do I go into the market? Stu Miniman, analyst at Wikibon, out on the floor, out at night, doing the Tweet Ups, Meet Ups, Drink Ups, beers, what they call them, cloud beers, all kinds of great stuff going on socially, but also more importantly, a lot of action in cloud. Thanks Stu for coming on and sharing your perspective. We'll be right back with our final wrap up with just John and Dave. Given the summary of day two, we'll be right back after this short break.