 Live from San Francisco, it's theCUBE. Covering Google Cloud Next 19, brought to you by Google Cloud and its ecosystem partners. Hello everyone, welcome back everyone. Live coverage here in San Francisco for theCUBE. Google Cloud Next 2019 is the show around cloud, Google Cloud, I'm John Furrier, Stu Miniman and Dave Vellante. We've been here all week, three days of wall-to-wall coverage here. On the floor with all the exhibitors right in the main, all the action. We talked to all the thought leaders, Google executives, entrepreneurs, experts are in the cloud and around the ecosystem. Dave, Stu, wrapping up, this is the wrap-up segment to kind of put the show to rest and look to next year and possibly Google summits. There's one in New York and some other shows we're looking to also cover. But if you encapsulate the show, I want to get your guys' reaction to what the main themes have been. We're seeing obviously Anthos was the big news. That's the big deal. That's their platform. They want to bring all the connective tissue around data security and really on-prem hybrid cloud, multi-cloud, application modernization, clearly during my open source and enterprise developers, plus the ability to do hybrid and multi-cloud. Stu, your thoughts on the show? Yeah, so John, when I first saw Anthos, I was like, well, this is CSP they announced last year. We were excited about that. We talk about things like Azure Stack and AWS Outposts, but the more I learn about it, the more I understand it, it's more than just kind of GKE and a little bit of packaging here. Eric Burr or Dave and I just interviewed a Google Fellow and you expect the Google Fellow to really be able to articulate the history of Google and the distributed architecture they're doing is like we're going to enable Cloud Native. Of course, we always have that in the Google Cloud, but now we're going to make that easier for you to do that in your own environment. So when you're thinking about modernizing your applications, you know, I was a little bit tough on Google when I said, oh, I hear a lot about lift and shift. Well, most customers, I can't lift and shift and not change because then I'll pull it back. It's too expensive. But if I can modernize wherever it makes the most sense. I talked to some customers here that said, look, I need to kick the team and get it into the cloud and then I can modernize it and start pulling it apart. But for some end customers, I can't move that and they need to modernize it here. And that's Anthos is the key enabler and therefore it's a good message. It's extension of what they've done with Kubernetes. There's a lot of other pieces here, but I'm pretty impressed. Dave, I want to get your thoughts because one of the things I'm seeing and in sports, when a team plays a game and wins, they call it a statement game. I think Google Cloud Next 2019 is a statement by Google saying, we're into the enterprise. We are not going to waver. We got hired Thomas Curry in a mid-savory and they're going to keep all the great talent. No one's leaving. It's not like a new regime change came in, they're pivoting. They know there's no pivot here. They put a stake in the ground saying, we are going to invest in the cloud. Sundar Pakai, the CEO of Google said that on stage at day one, they're clearly putting all the window dressing around enterprise with all the great phrases that we love, digital transformation, data-centric architecture, multi-cloud hybrid modernization applications. They're invested Dave. They are in it to play. They recognize that they're not going to win right away because it's a long game. So Google clearly is playing the cards properly. They're saying, look it, we're going to bring a lot to the table in this long-time table, but we're in it to play, and we're going to play well, we're going to invest. Yeah, I think it took a while for me to get there, Stu, too, because I heard a lot of the what, right? We do global distributed infrastructure. We're doing the applications for digital transformation. We got industry-specific solutions. This is what we do. Okay, great. And I heard a lot of differentiators. This is our unique value proposition and so forth. What I would have liked to hear right up front was, okay, we know that 80% of your workloads are on-prem. Well, guess what? And we're investing in scale and all that stuff, but we're the best at Cloud Native. And we're going to take, and we have the tools and expertise. We're going to bring those to you on your premises and show you how to get there. And then when you're ready, come to the cloud. If you're never ready, that's fine, but we're going to earn the right for your future business. They said that right way, the things that we want to earn in your business, but I don't think they can yet say we're the best at Cloud Native. And then I think that's a good self-awareness, Stu, for Google. I think they could say it. Now, maybe it's debatable, but... I would debate that. I do not think that Google is the best Cloud Native cloud at this point. I don't think they have the breadth and depth that Amazon has, but I don't think that that's the hard core stake on the ground because Cloud Native is early, CNCF, they're investing heavily in, open source is a big bet that they're talking about. They got a lot more work to do, but Cloud Native is still early, because you said the workloads are still on-premise for most of the enterprises, so they got plenty of time. The point is, if they had overplayed that card, I would have been more cautious. Well, okay, fine, let's talk about that a little bit, because it's nuanced. Would you disagree that internally, Google's got the most sophisticated, the best Cloud in the world, internally, globally? Can they make that claim, right, start there? We get the best Cloud in the world, yeah. Well, I think Amazon's got a great Cloud too. They've got all that stuff on there. I mean, they've at least got some credibility there, so I would have come from that position of strength. Now, the other criticism I heard was, where are the numbers? Now, that doesn't bother me so much. How long are they going to take Amazon to show us the numbers? Nine years, I think, so Google will get there. It's clear it's growing. You look around here, there's what, 30, 35,000 people. I don't know, what was it last year, 20, 25,000? It's growing, it's growing nicely, and the quality of the people is good, so. Dave, here's what I'd say about Google Cloud. Stu, I'd love to get your reaction. Sudhir Hasbay said this, he's the director of product management, he's talking about Cloud Fusion. He said, just from a customer quote, Google's Cloud is like an awesome highway, but I can't get my car on the road. So, and that's the on-ramp aspect. I can't, what, get my- Get the car on the road. Our on-ramp sucks. Yeah, yeah, yeah, yeah, yeah. So, just note about, if you look at the technology, from Spanner, Kubernetes, which was founded inside Google, and they did that right, big query is amazing. They have fricking amazing tech because they had to do it for Google. So I think that is a key strategy, and unlike other clouds that have come in and then died away, didn't have a lot of tech chops. So cultural shift is one of the big themes, but on-ramping, getting people on board, and the bed on open source, I think there's a gestation period that gives Google some time. I don't think they got to have it overnight. There's some table stakes, but they're checking the boxes. They just got to grind it out. I mean, look, the critique has been for years is, you know, Google's too smart for all of us. You know, we love reading the papers and we're really impressed with the technology, but the term you heard over and over again this week is we're going to meet customers where they are. And I almost feel they dialed it down a little too much here because I didn't have anything that I'm like, wow, blown away. They had Urz up on stage and it's like, I'm used to seeing him flying out of a plane with a Google glass on his head. That was Sergey, by the way. That was Google IO like five years ago. Sure, Sergey, but you know, that's what you expect from a Google is some of those pieces. And there wasn't a gee wow amazing moment for me, but the messaging solid, they absolutely understand and are solving some real customer problems today and solid business. Well, and 100% of the cloud providers now have a coherent and explainable hybrid on-prem strategy. You know, frankly, it's about time. I mean, they were denying that for a long time and I think it's clear that's where the business is. Well, to me, the big criteria on the cloud game is do they have the global footprint? They do. Do they have the software at scale check? Do they have the connective tissue to bring these disparate data services together? Check, working on it, continue to improve. And are they on the API philosophy side of things? Meaning, one of the things that made Amazon really great was they from day one were API centric. Google always has been part of web services, so they have that API DNA. I think Apigee is going to be the secret little dark horse in all of this and it's going to be a tell sign because as APIs become programmable, you saw Cisco and VMware on stage, can they build an ecosystem? Can they work with multiple vendors? Because the fact is from our data, and we've been reporting on this on SiliconANGLE and Wikibon, is that big enterprises and governments, whether it's a DOD or a big bank, are going to have hundreds of cloud projects, hundreds of workloads that are going to require unique cloud selection criteria because you cannot separate real-time data from software. And that's just the fact. So the databases are moving all over the place. If I got a workload, I got to need data, I got to be agile with the data, but I then need a data plane to connect across other workloads. So the workload conversation, I don't think was front and center enough where workloads are the key criteria. And still, some of the message on where Google fits in that hybrid and multi-cloud world is a little bit muddy to me. So how do they get, you know, on those in your data center? Well, it's a deep partnership with VMware. You know, I heard some people here, it's like, oh well, the current Amazon VMware deal, you know, is like up for renewal soon. It's like, I don't see VMware and Amazon separating. That's a deep, deep, deep engineering partnership. We've heard directly from Andy Jassy's, talked about it on theCUBE, how important that relationship is. So VMware's going to play across all the cloud environments, but you know, where does Google, you know, really make their money? They're going to partner with all the open source companies and you know, you're going to own your data. We're going to make sure the privacy is there. So as Dave said, the numbers and the business of how Google can start scaling and really growing the enterprise business beyond, you know, G Suite's now part of it and we saw some of the Android for enterprise and they have lots of pieces, but the cloud revenue gets a little bit muddy like a Microsoft. So, you know, from the cloud piece itself, I'm not sure where, you know, they start gaining on a Microsoft or an Amazon today. Well, I think that they could gain ground and take territory, as I said on day one. Jennifer Lin's demo of no code modification, migration of workloads. If that actually happens, that's going to be a critical piece of the pie. That's going to move the needle very quickly for at Google. But I want to get you guys take on surprises. What surprised you here at the show? What was something that you didn't expect happened that was a surprise on a good way? To me, the big surprise is that the word customer was used a lot more here than ever before. Customer is the key to success in the enterprise. Listening to customer and customer choice. That's a playbook from Amazon. You don't hear Andy Jassy or any other executive Amazon go a three words without saying the word customer. If you had a tag cloud and it'd be like customer is the biggest font, here we've heard customer choice. That's been a big one for me, surprises. I was going to say, when you were asking that question, to me it was customer related as well. You know, clearly when you, in an Amazon show it's just customer, just you get inundated with a Kool-Aid injection of customers. It's very impressive and you don't have that scale here. However, what it did see is a lot of Fortune 1000 companies senior people were here. Yeah, still kicking the tires, but learning. And I think that usually leads to something. So I think Google's developing a lot of pipeline at this show that I think next year is going to translate. And we had conversations John with companies that we can't mention on air, but they are seriously, substantively looking at moving workloads into Google's cloud. Number one, number two is, if you look around here, Deloitte, Accenture, Atos. You know, some of the big guys, I'd like to see more of those global SIs, and I think you will. And that's where you're going to really start to see customer traction. So Dave took the customer and I'll say partner. So we said in one of our analysis segments that the logo slide's good, but you know, compared to a Microsoft or Amazon, it needs to quadruple where it is today. But in the conversations that I had from startups through some of those big logos on here, partnering with Google is good for them and they are excited by it. And that's not necessarily the case for every one of the big cloud providers out there. All right, so a lot of multi-cloud talk. I've said multi-cloud's all the rage, but it's really more a symptom of sort of multi-vendor, people going best of breed with different departments. Big news last night on Jedi, John, I want to get your take. Google really wasn't, I don't think, ever in the running, but certainly, you know, Amazon was the lead, Oracle, IBM, Microsoft, share the news and your analysis of that news. Well, yesterday there was news that the Department of Defense, this Jedi contract, the Joint Defense Initiative that's going on, Joint Enterprise Defense Initiative, such as the military cloud, $10 billion contract, was under a lot of, it's the biggest story in tech and DC in generations. It's the confluence of procurement being outdated, cloud selection, one sole cloud for that workload, multi-cloud across the department, and a lot of lost business potentially for Oracle and IBM. So Amazon, Microsoft, Amazon Web Services, Microsoft, Oracle and IBM are all fighting for this business. The incumbents, IBM and Oracle, were potentially at risk of losing billions of dollars. So there's been a lot of dirty pool, so to speak, a lot of dirty politics, a lot of dirty smear campaigns going on from Oracle to Amazon to try to discredit them. So the DoD, Oracle sued the DoD, saying it's unfair process, conflict of interest. The DoD made a final selection, Amazon Web Services and Microsoft are the final selections, and basically kicking out Oracle and IBM out of the process. So Oracle and IBM are out. Oracle's lawsuit is still pending, that'll probably be dismissed, because Oracle tried three different times to claim conflict of interest. They tried to claim conflict of interest in, where it has three, I got my notes here. July 2018, November 2018, and April 2019, all three times, incumbents have been not proven, and Oracle and IBM are out. The analysis here is that this proves what we've been saying on theCUBE, and that is that you can have one cloud, sole cloud, for a workload. So the Department of Defense has hundreds of projects, but for the military project, the $10 billion one, Amazon or Microsoft, probably going to be Amazon, they're the front runner, can serve that cloud, and that's the best architecture. That means that Microsoft will probably win the $8 billion contract of the DOES contract for collaboration. Again, sole cloud, sole workload. This is the trend, Dave. My analysis is that Oracle and IBM, mainly Oracle, knew that they were going to lose, they tried to do whatever it takes to kill the deal, and now the DOD has fought forward and they're modernizing the application. And all these lawsuits about procurement rules from 1985, all this tripwires, all these little nuances, this is a great win for the Department of Defense, and I think it is a tell sign for large enterprises because you can be multiple, you can have multiple clouds, but you can have one cloud work on one workload. It could be a big monster workload, like a $10 billion workload, or it could be a small workload. All the tech vendors want to eat at the government trough. We know that, and so why is this relevant? It's relevant to me because I think you're absolutely right. For a particular set of workloads, mission critical workloads especially, a single cloud is going to be more cost effective, more secure, a higher availability, less complex, and that's really what the debate is here now. Is multi-cloud going to happen? Of course, for different workloads, it's going to be horses for courses, so multi-cloud is a huge opportunity. Everybody's going after it. Stu, Google threw its hat in the ring in a big way. We seem to have a couple of camps lining up, and Red Hat, interesting news in both camps. Kind of got the IBM Red Hat camp, kind of VMware with, now with Google, really interesting sort of chessboard matches going on. Yeah, absolutely, every customer we talk to here, there's no like, oh, you know, I might be moving most of my stuff or even all of my stuff to the public cloud, but it is workload dependent, and that's how I'm choosing it. Google has some key strengths. A guy took us a little while to get the data and AI and ML pieces that we know Google has some strength here. One of the questions I had coming into it, can they reclaim kind of that thought leadership in the space, I'd love to hear whether you guys think that was the case, but you know, messaging point on good speed, you know, TK has them talking to the enterprise in a way that won't scare them away as to, oh geez, I'm not smart enough to work with Google. Well, I mean, I think obviously Google has to get enterprise compatible, and they've been working really hard to do that, and they got to just grind it out. I said this on Tuesday, it's a grinding out game, they got to fight into the trenches, they got to get the checkboxes, and this is what Amazon did early on and helped them a lot. Google has been working hard. I think the security angle from a device, the Android phone, and the onboard security at the edge is huge, I think data and BigQuery and those kinds of onboarding tools is going to be a great accelerant. I think cloud code, cloud run, cloud build is a phenomenal construct. I think that's absolutely developer friendly. If they can continue to serve the developer for the enterprise and make it easy to build and stand up applications that hit that sweet spot of the trend, which is the modernization of enterprise apps, not developer apps, not like a startup. I mean startups are different, startups are cloud, born in the cloud. Enterprise apps got to deal with legacy and all these compliance and all this risk, but they can make that easy and make it DevOps like that's a great checkbox. Just a quick note on that, because there was a lot of enterprise talk there, there's a nice group inside of Google working with a lot of the startups, got to talk to a couple of the startups there, and Google's definitely a company they're looking to partner with. All right, guys, let's wrap this up. Google really leaning into the enterprise heavily, obviously they're not blinking, they're going to continue power forward. And again, I like the Mojo they have here, they got a new CEO, we interviewed George Curry and Thomas's brother, Thomas couldn't make it on theCUBE, he was super busy talking to customers, we'll get him on theCUBE soon. But you got a culture here at Google and the culture is innovation and the culture's DevOps, the culture's developer, the culture's APIs. Dave, that puts them in a good position. Your thoughts? I mean, I've been saying for a decade I feel like a broken record. I said it so much, I stopped saying it, but the marginal economics of the cloud service providers who have scale are driving towards zero, in other words, the more volume they do, the cost of adding an extra customer goes down to zero just like software. There's three companies in the United States who have that scale, Google, Amazon and Microsoft, you know, obviously some guys outside the U.S. And you just look at the capex numbers, 47 billion over the last three years by Google, 13 and a half billion year-to-date U.S. data centers alone, it would take IBM three and a half years to spend that much on capex. It would take Oracle six years. Okay, they just do not have the marginal economics to compete, they'll compete in other ways. But these three are in it to win it. There's a big market there, it's a trillion dollar market, there's enough room for each to carve out an opportunity and continue to grow for quite some time. Yeah, let's do it. And Google lining up their ecosystem of partners to help them get deep into the enterprise. Absolutely, there's good opportunity for Google to do a number of acquisitions they have, you know, a big bank could spend a lot of money not just on infrastructure, but all the partner engagements and definitely some acquisition to help them get there wouldn't be surprised if they, you know, made some nice acquisition to help them grow that enterprise. IBM. In a modern way. Well, you know, now this one that was mentioned too, it was the Curian twins could, you know, be back together, but sure. Awesome stuff, guys. I think my final take is I've always said Google's the dark horse in the cloud game. They don't have a lot of baggage. They've got a lot of work to do and they're working hard and they really bring in tech to the table. They're bringing that culture of innovation they're behind, but there's opportunities for them to move the ball down the field in a big way. I think they can take territory and gain share quickly if a lot of things fall into place. If those bets come home, this dark horse will be right up on number two really quickly. So great job. Want to thank Google, Google's team, Google comms team, Google's CMO and executive new Thomas Curian for letting us come to the cube, bring the cube here. Google's very co-creation oriented. We appreciate the location. Want to thank Google. Want to thank some of our sponsors. Without our sponsors, we wouldn't be here. Cohesity, Signal FX. We got NetApp. We got Sada. We got some great clients here supporting us. Actifio. Actifio, thanks to our sponsors. They signal to the community that they care and they support our programs. Our 10th year of cube coverage at events. Want to thank everyone for watching, listening, sharing, hit us up on Twitter at cube and also siliconangle.com. We now are adding on a new feature to our cube which is on siliconangle.com. Special reports where we flow as many stories as it takes to get the truth out there, get the stories right, of course. Use the cube and stream the data with you here on the cube. We're here at Google Next in San Francisco. I'm John Furrier with Stu Miniman and Dave Vellante. Thanks for watching.