 Live from Las Vegas, Nevada, it's theCUBE. Covering AWS re-invent 2016. Brought to you by AWS and its ecosystem partners. Now, here are your hosts, John Furrier and Stu Miniman. Hello everyone, we are here live in Las Vegas for theCUBE all week. I'm John Furrier, Stu Miniman. We are breaking down all the re-invent coverage theCUBE is going on for three days. Stu and I are going to break down here in Studio B, the analysis of Andy Jassy's keynote. This is really day one of the event. Yesterday was kind of a preview at James Hamilton Tuesday evening, had a great band up there, and then he came on and delivered really an epic performance laying out. As he's not a showman in the sense of Steve Jobs-like, but he has a Steve Jobs-like cred, James Hamilton, when it comes to the geeks in the community, he delivered the, what I call the secret sauce of AWS's data centers. And then Andy Jassy today with his keynote, again, is so high-packed, they started at 8 a.m., which is kind of not usual for events, was so much up there, Pat Gelsinger came on stage. AI, Stu, first, I want to get your take on today's keynote with Andy Jassy. You were in the front row, what was going on inside the room? Tell us your perspective, give us the vibe, what was the energy level, and what was it like? Yeah, John, as you said, starting at 8 a.m., it's like, oh, we must be talking to the tech audience, because developers usually like to start a little bit later than that. It was an embarrassment of riches. Andy gets on stage, as he told you, when you met with him up at his home in Seattle, they're going to have about 1,000 major new features, updates, and I think Andy went through a couple hundred of them up on stage. This is a group of true believers. Pat keynote, people started streaming in over an hour ahead of time, because only 10,000 could fit in the main tent. They had other remote locations where you could go get Mamosa's Bloody Marys or coffee if you wanted to watch us, but oh my God, John. That should have been all over that. Just to tell you, my fourth year here at the show, and it's like, oh yeah, another tech show, you're going to get keynotes, they're going to make some announcements, John. No, Amazon impresses every year, and they deliver this year. Andy might not be a showman, but he was punching at Larry Ellison, in Oracle quite a bit. He got huge ovations, like every time they announced a new compute instance, and lots of these things, and a little bit of show flare at the end. With a truck. Yeah, it's certainly going after the database market, but also they're making some really good infrastructure enhancements with the new services. What was your highlight? If you're going to look at what the most significant, most important story this morning, what was squinting through all the great announcements? What ones do you like the best? Oh boy, John, I have to pick one? They pick a handful. Top three. Yeah, here's a few. One is, there's some pushback from people in the community that they announced another ton of new compute instances. There's all these different storage configurations. Aren't we supposed to be making things simple? And that's when they had, one, Amazon Light Sale, which is the virtual private servers in seconds, really goes after kind of a simple, low-cost model, really digital oceans, the leader in that space, starting at like $5 a month, John. Very exciting. A ton of people really getting as to where this can go. Every year, Amazon has a number of competitors that they're just like, up, we see this opportunity, we can go after this. And John, this is not a high-margin business. I mean, usually it's like, oh okay, database, I understand. There's huge margin there, the storage market. Of course, Light Sale, $5 a month. I mean, they make it up in volume, but it's super exciting. Well, last time it was on a playbook. Drive the price down as low as possible, and then shift the value with the analytics. And Aurora, not Pat Gelsinger, Andy Jassy who said, fastest growing service in the history of Amazon. Last year he said Redshift was, look at this surpassed Redshift, and the announced Postgres sequel on Aurora, another big significant customer request. Just on and on, the database seems to be the lock-in spec that they're trying to undo from Oracle. They're not stopping. I mean, the rhetoric was all-time high. Picture of Larry Ellison popped out, popped in. The Oracle O in the O. We know the long pole in the tent for enterprises is the applications you have, making any changes in that, doing any refactoring, tinkering, those are hard things to do. But we've heard a lot from Amazon this week as to how they're helping with migration, how they're giving options, how they're giving bridges, things like VMware on AWS to bridge over from where you are. You can lift and shift it, you can move it, you can rewrite it, lots of options there. And Amazon just has so many services and so many customers, thousands of systems integrators, thousands of ISVs, and really big enterprises making statements up on stage. When you get Workday up on stage, John, you get McDonald's up on stage, it's impressive. Yeah, they got some big name accounts, no doubt about it. Stu, I want to get your thoughts on James Hamilton. Again, Amazon's got some of the announcements. I mean, some companies will launch an entire conference, a keynote around maybe one or two of what they've done out of the many that they've had here. Also to note, there's been over 150 partner announcements. So the ecosystem, Stu, before we get to Hamilton, I want to talk about the ecosystem. This feels a lot like 2011 VMworld. I was kind of joking with Sanjay Poon and the COO of VMware, he was just on the cube with us and saying, what do you think about VMworld this year? I mean, I reinvent, I was kind of tongue in cheek. I wanted to zing him a little bit, but Stu, this feels like- So John, I'm an infrastructure guy and I want to talk about James Hamilton. One thing we've got to cover first, green grass. Green grass is how Amazon is taking their serverless architecture really lambda and they're taking it beyond the cloud. So how do I get that kind of hybrid edge? We talked about it a little bit with Sanjay, but number one, I can start pulling VMware into AWS. Number two, I can now get my Lambda services out on the edge. They talked about some IoT plays. They talked about the snowball edge, which is going to allow me to have kind of compute and storage down at that edge. I've seen huge excitement at this show on the serverless piece. Developers, it's really quick to work with. 25,000 Amazon Echo dots were handed out and I've already talked to people that are already writing functions for that and figuring out how they can play with it. And God, we haven't even talked about the AI, John, with voice and image messages. We'll get there. How many hours do we have, John? We'll get there, but let's stay on green grass for a minute because if you think about what that's about, I want to get your thoughts on the impact of green grass. I mean, obviously the Lambda and it's got a little edge piece of snowball tied to it. You know, green grass and high tides forever. The old song by Southern Rock Band outlaws back in the day. This is a significant announcement. What is the impact of customers? Yeah, well, John, I mean, the grass is greener in the cloud, right? So now we're going to bring the green grass. Snowball, when a snowball melts, it turns into green grass. What the hell? We're going to be riffing all day on this stuff. So David Floyer, our CTO at Wikibon, has been talking for a while that, while cloud is great for data, the problem we have is that IoT is going to have most of the data out on the edge. And we know the physics of moving large amounts of data is really tough. And especially if it's spread out, things like sensors, things like wind farms, getting the networking to that last mile can be difficult. That's where things like green grass are going to be able to play in. How can I take really that cloud type of compute and put it on the edge? It really has potential to be a real game changer, I think, John. We talked about what hybrid means, and we'll see, a lot of buzz in the industry about what Microsoft is doing with Azure Stack and lots of pieces, but green grass gives this new model of programming, gives the developers, gives me, I can use the ARM processors out on the edge and we can talk about how that fits with James Hamilton, too. We are here inside the hall, next to the cubes, studio being so much content. We have to actually set up a separate set. Stu, I want to get your thoughts on, I mean, obviously we can go on forever, but the significant innovation on multiple fronts for Amazon. You mentioned green grass, snowball, multiple instances, and certainly they got all the analytics on top of the stack with Redshift and about the stuff Kniece is streaming, goes on and on, the list goes on and on, but you look at what they're doing with green grass and snowball, and then you go look at what James Hamilton talked about yesterday. Now they're going down and innovating down to the actual physical chip level. They're doing stuff with the network routes, the control in the packet and they're, no one's touching the packets. They are significantly building the next global infrastructure backbone for themselves to power the world. This is, to me, I thought, a subtle talk that James gave. There's a ton of nuance in there. Your thoughts on last night's really epic presentation, I know we're going to have a sit-down exclusive interview with, with James Hamilton, with Rob Hovar, new editor in Chief SiliconANGLE, but Stu, give us a preview. What blew you away? What got you excited? I mean, it's certainly a geek dream. Yeah, I mean, John, you know, James Hamilton is just one of those, you talk about tech athletes, you know, just the real heroes in this space that so many of us look up to. It's been one of the real pleasures of my career working with theCUBE that I've gotten to speak to James a few times and the first article I wrote three years ago about what James Hamilton has done is it's hyper-optimization. The misconception that people had about cloud is, ah, just all white box, they're taking standard stuff. Amazon and what James always talks about is how to really grow and innovate at scale and that means they build for their environments and they really get down to every piece of the environment. All the software, all the hardware, they either customize it or make their own. So, you know, the big monster news- And Stu, to your point, for their own use cases, they tell him about Prime Fridays and those spike days, he was talking about how they would have to provision months and months in advance to understand some estimated peak that they were spinning up literally thousands of servers. Yeah, so John, you know, Amazon doesn't make a lot of acquisitions but one that they made is Anapurna Labs. So they've got their own custom silicon that they're making. So this really allows them to control how they're doing their build out. They can focus on things like performance. James talked about, you know, how they're really innovating on the network side. He was very early with 25 gigabit ethernet which really drove down some of the costs, gave them huge bandwidth advantages and kind of leading the way in the industry. The thing we've been poking at a bit is while Amazon leverages a lot of open source, they don't tend to give back as much. They've got the big MXNet announcement as to how they're going to be involved in the machine learning and that's good to see. They hired Adrian Cockroft, you know, who lots of us knew from his Netflix days and when he was a venture capitalist, he's going to be driving a lot of the open source activity. But James, you know, kind of went through everything from- by the way on your point about open source, I said it on theCUBE and I'll say it again and you mark my words, if Amazon does not start thinking about the open source equation, they could see a revolt that no one's ever seen before in the tech industry and that is the open source community now is a tier one, it has been for a long time, tier one contributor to innovation and there's a difference between using open source for an application like Facebook and a specific point application or Google for search. If you're building open source to build a company to take territory from others, there will be a revolt Stu. Do you agree, am I off base? Revolt might be a little strong but absolutely we already see some pushback there and any time a company gets large power in the marketplace, you see pushback. We saw it with Oracle, we saw it with Microsoft, we see it with VMware. So, you know, and I think Amazon hears this point, Andy Jassy talks about how they're making meaningful contributions. I expect Adrian to make that much more visible. We'll have to get into some of the James Hamilton stuff at a later date but I mean wow. Well we're here to sit down with him with Robbos, we have more on that later. You and I will hit James Hamilton analysis on theCUBE later. Final thoughts, you were giving me some hell before we came on to talk here about me saying I'm bullish on VMware's relationship with AWS and you said really and I said I am because I am a big fan of VMware, also AWS but for their customers, for VMware customers, this is a good thing. Now, you might have some thoughts on execution maybe, why did you roll your eyes when I said that? So John, I mean, you know, I have lots of love for the VMware community, you know, spent lots of time in that space and it's good to see VMware working with the public clouds. However, I think the balance of power shifts in the side of Amazon being in control here and you know, there's a lot of nuance. Where are the services, where are the values, what's going to be good for customers? Amazon's really good at listening and you know, this embarrassment of rations. All right, real summary, bottom line, what happened this morning in your mind? Abstracted all the way in one soundbite. Wait, they rolled a truck out on stage, John, the snowmobile, 100 petabytes of storage and a terabyte of information, something that you know, we were like, this is amazing, it's the maturation of the hybrid message is different from what people have been talking about hybrid. You know, where SaaS lives, all the ISVs, where's the data, where's the application? Amazon's in a really good position, John. There's a big and growing ecosystem here but there's some huge battles that I know we're going to get into out in the marketplace. You know, who's going to win voice? You know, everybody's there, Apple's there, Microsoft's there. Everyone's jockeying for position, you've got Google, you've got Oracle, you've got IBM, you've got Microsoft all looking at AWS and saying, how do we change the game on them? And we'll be covering this, the cute, we are here in Las Vegas, Studio B, Cube, three days of wall-to-wall coverage. I'm Jeff Rose, do Miniman, breaking it down on day one keynotes and analysis. Thanks for watching, we'll be right back. Stay tuned to theCUBE at SiliconANGLE.tv. Go to SiliconANGLE.com for all the special exclusive stories from Reinvent, exclusive news with Andy Jassy, James Hamilton and more. Thanks for watching.