 Live from San Francisco, it's theCUBE. Covering AWS Summit 2017, brought to you by Amazon Web Services. Welcome back to theCUBE. We thank you so much for hanging out with us today. We've had an amazing day. Jeff Frick, George Gilbert with me, Lisa Martin. I think guys, first impressions or overall impressions of the day, it started with Werner Vogels, very energetic, very passionate keynote. It was almost what can't Amazon do. The amount of services that they're offering, the amount of customer logos validating, presumably in substantiating all of these services, it was really quite eye-opening, I think for me. But also, some of the use cases that they've shared were those that were on main stage, those that were in breakout sessions were here with us. It really shows that the culture that they're building or have built over the last 11 years now at AWS is really one of experimentation. Failure is okay, let's keep moving. Speed, speed, speed, and agility. So many, so many great things. I just want to touch on some of the culture, to pivot off the culture, conversation Andy Jassy and his keynote. And I think the culture is so, so important. But one of the things he talked about is they banned PowerPoint. He said because it wasn't interactive, he wasted a lot of time. No one was prepared for a deep dive because they just put the slides together. And they went to this thing he called the six page narrative, which I thought was pretty interesting. And everyone reads the narrative at the beginning of the meeting. So, you know, everyone's busy. Before the meeting. Yeah, but I think at the beginning of the meeting. So everyone's at a common point, because let's face it, everyone's busy, no one really preps as much as they should before the meeting, so now they force it with a 20 minute read the narrative. And so everyone is at the same kind of depth of knowledge. I thought that was really powerful. And then to write the press release and the FAQs. That was phenomenal. Before you write the line of code. So what are the issues that people are going to raise? And what's the really exciting value that you're delivering to the market that you define under press release? Yeah. You know, I think it's great stuff. That was as interesting I thought as any of the product releases. I agree, yeah. Because it was, it almost told us how they keep the wheels spinning so fast. Right, right. Exactly. But that is really culturally different than I think a lot of the companies that we talk to. Who when you get to a, at six dot, one dot, two, press release, is it really that interesting? Right, right. That was really, really revolutionary. And I think speaks to, to your point, how have they been able to build this dominance this quickly and not let their competitors gain on what they project as a six to seven year advantage? Like he said though, because they don't look at the competitors, they just keep moving, right? And they didn't have the, you know, kind of the legacy thing holding him back. You know, Clayton Christensen, animators dilemma. They just kept moving forward. But I thought the other really insightful thing that came out of his fireside chat was the conversation around third party sales when they were still just Amazon. And do they let other people sell on their platform? And it's, and he said, you can't fight gravity. So it goes back, it reminds me of like when Schwab went to $19 trades. Dave Potrick tells the story of online trading. They were giving up these expensive commissions, but he's basically out of, I don't kill my own business. Somebody else is going to do it for me. So I better be the one that kills it and at least try to take advantage of that next wave. Really powerful concepts. But there was, there's an analog to the fulfilled by Amazon, which is where the third parties went, where they sort of essentially took the eBay model and said, we're going to essentially make our fulfillment platform and commerce platform stronger because we're going to take all those other third parties. And then what they did with Amazon AWS was take the whole commerce platform and open it up for other people because that made it more powerful for them. And there's still more to come. What they didn't really talk about, they talked a lot about AI and mostly at the framework and tools levels where framework levels would be for world-class scientists and the tools would be for data scientists. But when they talked about the image recognition, the voice recognition and speech, tech to speech, things like that, they were saying, then they're leveraging the Amazon data and training those models so that mere mortal developers can do that. What he didn't say, and when we had their product marketing guy here, what he didn't want to say was, there's a whole lot of other areas where Amazon, the commerce company, the retail company has data that no other cloud has that they can offer not to think about really the machine learning as tools again, but as semi-finished applications. And I think that's going to be pretty profound differentiated versus other clouds. And just the basic scale, right? The slide that Werner showed, not only with all the customers and partners of this, but just the breadth of services and the way they keep adding more based on whatever your special function is. I need high IO, I need ML, I need really cheap cold storage, I need whatever they can apply the scale to all those kind of sub-segments and offer a breadth at scale that's pretty tough to compete against. Absolutely, and they continue to innovate. And Andy's fireside chat, he was really kind of talking about why and how they're able to do that. Being customer focused, not having to look at the competition is a major advantage. And one of the themes I also heard and felt today was if you think back 11 years ago to their Genesis, they were very much focused on the startup community, the developers really won long ago the hearts and the minds of those developers because they were the ones that would try and innovate and fail and try again. But as the cloud becomes, and I think Verner's words this morning, the new normal, they've done a very good job of continuing to foster and enable developers within startups and those entrepreneurs who want to start and start companies. All the way up to the enterprise, as we see the dynamic and buying software change dramatically, thinking about the Amazon Marketplace is a great example. We are now seeing the C-suite being mandated sometimes by the board, you've got to move more applications into the cloud. Well, how do I do that? So it's developers that's lines of business like the marketing folks or the sales folks that shadow IT say we need to do this, you can't help us move fast enough. All the way up to the C-suite and the board and they've done a great job of expanding the conversation, expanding the services to really target multiple audiences and meet a lot of pain points. There was a press briefing, pre-brief for the announcement of the Marketplace expansion yesterday and what came out really interesting was, you go to the Amazon Marketplace homepage and there's dozens of categories and about, I think it's 3,500 actual products from third parties and 1,200 vendors and you can't go to an enterprise, you can't go to JP Morgan and say here, go to town. What IBM does with their own rich library of stuff is they have their global business services and their industry solutions development groups, they take the piece parts and put solutions together for their customers but what Amazon is now in a position to do is they have solution architects working either for them who are billing out at maybe two or 300,000 a year or who are working for vars who've turned into managed service providers who configure these solutions and so what looks like a self-service marketplace now can serve a bank with 100 billion in assets or a trillion in assets because there's now the IBM equivalent of a system integrator who can put the pieces together and who can run them for you if you don't want it. And have the aggregated data of everybody else running those services so for best practices and stuff you're leveraging the whole ecosystem, not a single instance at a single company and that is so big, right? And that was actually, that was one of the themes of our last guest from Datadog which is they can watch so much of what's going on not just a customer's workload but maybe they're not doing it now but they will be able to do it in the future where they can look across workloads and identify best practices in configurations and things like that and then you send that back to the customer and they pay for that advice. Right, it's just interesting you know the three years ago the conversation was all about security around public cloud and you know we're done with, we're done with that conversation especially since most security breaches are people lose their laptops, right? It's an employee or disgruntled employee but the thing that's interesting to me on this startup and rent versus own is again the answer to every question is in a cube interview. Why do you want to do the undifferentiated heavy lifting of managing infrastructure? Those guys think logic, they're like 14 people and a couple of dozen hand developers that are attacking the IoT space they would never even get an approved vendor status at somebody like Boeing or GE or they would never even get to the procurement issue but now as part of this marketplace you know they can come in either as a partner part of a solution, an adjunct part of an SI or as a stand alone app that you still buy through your approved vendor process with AWS why would you go anywhere else? Right, that was a great point that you brought up a number of times today showing not only how Amazon is innovating internally and to enable the startups to the enterprises from a public cloud perspective but they're also enabling businesses to be born that would never have gotten off the ground and to your point it's very valid about even becoming an approved vendor for a company the size of things logic logics they would never be able to do that so it's really exciting I think overall I think we'd all summarize the day it's a very positive, very enlightening I think for me I was really excited to hear what was going to be going on for IoT and hybrid heard some interesting things there today so I think that's day dot dot dot to be continued I think overall really strong announcements from them the passion was there culturally I think they really reap what they sow and I think that was reflected in the conversations that we were able to have today One thing I'll ask you about George you're a smart guy, speed of light's too damn slow the speed of light's too damn slow right we heard over and over and over again Yes and still a cloud base right soft underbelly of cloud you got to be connected do you think that the speed of light issues with edge and shifting resources co-locating storage compute and the data you see any really big hurdles that are just really scary Like following on the dot dot dot it's computing always follows a pendulum centralization, decentralization no side ever goes away it's just a change in emphasis and we're going to see some analysis have to move to the edge because for the speed of light your car, your smart car it doesn't have time to say that looks like an old lady who's actually in the crosswalk I'm going to go back to the cloud and ask whether I should plow through her or the car next to me that needs a low latency analytic Right, right but at the same time and one of our guests was talking about it if you're looking at the pressure at valves at a thousand mile pipeline you probably don't need to react instantaneously you send that back to the cloud and it'll look at it over a period of time and say this one's looking like it's going to leak Right, normally it's actually not Different scenarios and unfortunately we are going to have to say dot dot dot we can talk all day about this Jeff Frick, thank you so much George Bill but what a fantastic day we've had here at the AWS Summit in San Francisco we thank you for joining you can follow all of the replays here on SiliconANGLE.tv and Jeff what do we got coming up next week we're at several events, NAB next week NAB, Oracle, modern customer experience and you're doing a red carpet I guess a green carpet award show A green carpet award show at the Computer History Museum next week so stay tuned, stick around on SiliconANGLE.tv to find out all the things we're doing it's going to be an exciting spring again thanks for joining see you next time