 Live from San Jose, in the heart of Silicon Valley. It's theCUBE, covering AWS Summit 2016. Welcome back everyone, we are live in Silicon Valley for AWS Amazon Web Services Summit in Silicon Valley. This is theCUBE, Silicon Angles flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier with my co-host, Lisa Marden. Our next guest is Lowell Anderson, senior manager, product marketing of AWS Amazon Web Services. Welcome to theCUBE. Thanks for having me, it's great to be here. First time, CUBE alumni, welcome to theCUBE alumni list. Love to get you on because you know, you're in the product team and you're in go-to-market as well as you got to look into the product suites and one of the things that's been super impressive of AWS over the years, since I've been following you guys for a decade, since you started in theCUBE over the past four years, is the tsunami of product releases. The cadence of Jassy's Law I call it. And Amazon's Law, which is just constant slew of releases more and more every time, not just reinvent. Now you get the summits which are exploding. And they were tiny just a few years ago. Got New York in here. What's coming out now? What's the secret sauce? How do you guys do it? And give us some insight into what's happening here. Well, you know, for us, innovation's in our blood. It's a part of our DNA, it's what we do. We're really, every year we do more. This year we're already up to over 460 new services and features and we'll hit over a thousand this year of new services and features launched. Compared to last year when we hit like 720, I think something about in that range. So the innovation train keeps going. And you know, the way we do it is we, number one, we really focus on our customers. One of the benefits of the cloud is that we can innovate and roll out changes really rapidly for them. So just the whole cloud environment allows us to innovate very quickly and very rapidly. So that's exciting. And you see that in just the number of releases that we can put out. One of the things that I just asked the previous guest on, how do you explain the phenom that is AWS? And you know, Andy Jassy went to business school the same year as I did. And back then the competitive strategy ethos was build some proprietary technology, build a fence, protect it with guards and guys with guns and hold the line. With open source though, the new model is, you can't do that anymore. So there's one, the open source is now a tier one citizen. And two, there's no real walls to build around proprietary technology. So the game of the game is speed. Yeah, it's all about speed and the cloud really enables that agility. That's one of the biggest benefits that our customers talk about is how freeing up, breaking down the walls of your data center effectively. So that now your compute and your analytics and your storage expand beyond the walls of that building as rapidly as possible. And the use of open source, as you mentioned, I mean, we're big proponents of open source. We have a lot of open source services that we support as well. And trying to help the developer community really bring those types of technologies to the cloud and enable that's a big part of our success as well. It's clear that the competitive strategy game in this new world that Andy and the team are executing is really just more features faster than the competition. There is kind of an arms race going on, but that is the open source game. So with that, what is the, are the big announcements here? Obviously this show is much more developer focused. Yeah, yeah. It's much more getting weeds, breakout sessions. What are the key goods that are being talked about here? Down here in Silicon Valley, we really wanted to bring some more technical topics to the table and talk in that vein, talk about a couple of really key areas around focused around big data and what we're doing to help enable both small and large enterprises use data across their companies to develop more competitive applications and make it cheaper, make it easier to use and make it more performant than they could possibly imagine without the cloud. So using big data is one of the key themes of the conference that we had today. And then the other thing that we wanted to talk about was this movement from how we've been architecting services, our applications in the past from being based on servers to using serverless, which is really a whole new architectural concept that's allowing our customers to build applications in ways that they could never do before and do it at a cost that they could never make feasible in the past. There were some great examples of customer successes that Dr. Matt would talk about in the keynote. One, Redfin, I think we've all in this market had experiences with buying and selling homes. But I loved how we talked about friends don't let friends build data centers. That in the future, most organizations are going to run their own data centers or not going to run their own data centers and move to AWS benefits like becoming data driven. Big data, the more users, more data, more insight. He also talked about some of the things coming up. You mentioned it too about building with services building with servers. Talk to us about some of the, if you could expand a little bit on some of those examples, one that particularly spoke to me was what Illumina is doing in terms of genome sequencing. I got my masters in biological sciences a long time ago and that wasn't even a thought back then or certainly was a massively expensive. Talk to us a little bit more about how Illumina is doing that with AWS and scaling at costs to really facilitate breakthroughs that are saving lives. Right, right. Well, that was an exciting example because people weren't able to see the keynote Illumina is the largest genomic sequencing company in the world and they've really been able to implement a new architecture that's brought genomic sequencing from an industry that was done, just for very specific scientific purposes to now something that can be done all over the world to support disease research and it's really the power of big data that's made that happen. And the reason they selected AWS for that is really just the breadth and depth of the big data services that we provide along with the global deployments that we support. With genomic data, they mentioned that for many, many countries in the world they don't want that genomic data to move outside the boundaries of their specific geographic region. And so AWS is one of the few, very few cloud providers that has that level of geographic specificity. So you can keep the data within that specific region. So compliance issues as well with that too. Lots of compliance issues, of course, genomic sequencing, lots of federal and healthcare and HIPAA type requirements surrounding all of that type of information that AWS with our focus on security is able to achieve. So number one, it's this geographic capability which has allowed Illumina to really deploy this in a global way. But second, it's really just the depth of services that we offer, whether it's the data warehousing using Redshift, whether it's the ability to process that data at scale on Hadoop using EMR, whether it's the ability to then deliver that data across the world and visualize it and upload it from all those different genomic machines that they've put into their individual customers research facilities. All of that is capability that AWS is able to deliver to them at a cost. I think one of the things he talked about, they were looking for, I think, 100% reduction, or 100 times reduction in cost over trying to do this themselves and we've achieved that, helped working together with them, they've been able to achieve that. I'm excited about it. Well, I got to get your thoughts on the hybrid cloud because obviously Amazon was traditionally pigeonholed as just public cloud. The lines are blurring. Clearly the success you guys are having has been moving into the enterprise. Especially the CIA deal you beat IBM on. That was, again, a different instance in the Gov cloud. But, again, in the enterprise deals you're seeing, it's up against the oracles and the IBMs. And they're all talking hybrid. How are you guys addressing that from a product standpoint? How do you talk to a customer who says, hey Amazon, slow down, I love you guys, but we need a hybrid on-premise solution? Yeah, that's a great question. I think, first of all, I would say that what we've always said at AWS is really in the fullness of time, we expect that no enterprise is really going to want to run their own data center. And so we still see that as the end vision that we're going to achieve in the long run. And that most of our customers want to achieve in the long run as well. What are the critical conversations that they have? What are their requirements that you guys hear? Is it migration of data? Yeah, so that said, there's a lot of work to do between now and this long-term vision. And so a few of those things that need to be addressed like data migration. And we're working really hard to help enterprises move data up into the cloud. It seems like it'd be a simple thing, right? You take a picture, you upload it to Dropbox. Why is that so hard? But when you're talking about terabytes of data that have been in the corporate data centers with applications for years and years and years, moving that volume of data up to the cloud is a significant barrier. What about moving back to the enterprise? Vice versa? Again, making it available for them to use and to move back and forth is a critical component. So we've done a lot of work on a specific set of features and capabilities to make that happen. Amazon Direct Connect or AWS Direct Connect is one of those services that allows our enterprise customers to establish a high bandwidth connection to AWS regions so that they can move data back and forth very rapidly. Is that Interconnect or to Direct Connect not going through an Internet? Yeah, Direct Connect allows them to leverage private backhaul to establish a really high bandwidth connection. And so we... Security-wise alone, that's a big deal. Absolutely, it is. And then, earlier or last year, we announced Amazon S3 Transfer Acceleration, which is a service that allows them to utilize our backhaul to actually accelerate the upload of data into S3. Before, you had to use the Internet to upload data to S3. And now, what we've done is really extended that down to customers where if we can accelerate the transfer of their data to S3, we'll do that using our backhaul network for them. So the next question on top, that compounds the problem with data, which you guys are solving. And because this is, I agree, it's a big challenge for enterprise customers. IoT just complicates the hell out of it. So that's all about moving data around, putting compute to where the edge is. This whole edge of the network definition really plays into some of the trends around serverless concepts that you were mentioning earlier. How does that relate to the data equation? Yeah, so a couple of things. Let's touch on IoT first. So IoT brings a whole new level of complexity in terms of the number of devices and the distribution of data that you need to bring up into the cloud. And so we released this service we call AWS IoT last year at ReInvent. And what that does is it makes it really easy for customers to acquire data from billions of devices that might be generating trillions of messages at a time. And when you think about IoT devices, it becomes almost more complex because these devices may or may not be online all the time. They may not have a high bandwidth connection. They may not have the processing capability on the device itself to be able to update and optimize and do a lot of complex computing. So you need a specialized service that can work with those devices when there's intermittent connections, pull very small messages from those devices and ingest them on a huge, huge scale. And so AWS IoT is a service that does that, allows our customers to ingest those billions of messages and then connect them to AWS endpoints, big data services like Redshift and S3 and Kinesis and Lambda to process that data and generate applications that could never really be conceived before. And today I thought that the whole discussion from iRobot was super interesting about how they're using AWS IoT to connect what they call their home robots, their Rumba vacuum devices to the cloud and really enable a whole new set of applications and vision for the connected home. Really interesting stuff enabled by the cloud. Before Lisa has a question, I just want to quote Ben Keough who was with iRobot, he's an analyst over there, our scientist. Transition, I want to get your reaction to maybe Lisa, you can chime in. He just tweeted, transition to the cloud colon. Treat servers like cattle, not pets. Transition to serverless cloud architecture. Treat servers like roaches. That's a pretty bold statement. Yeah, yeah, it is, but. No, not a pet, no cuddle. Like a roach. Not cattle, it's roaches, people put the roaches out. So thoughts, serverless, comparing servers to roaches. Let's talk about the evolution a little bit. I mean, if you went back a few years back to when I was writing software as a graduate from college, when you wanted to start off a project, first thing you had to do was go buy a server, have it delivered, find a place to put it, plug it in. Call the network guys, get a board, call the router, get security. Then once you had it all plugged in, you had to put the operating system on it and then you could put your development system on it and then you could finally get started. It'd be months later before you could actually get the project started. And it seems strange to even talk about it now, but back then this was a key thing that limited our ability to start projects. Oh, forget the cost, just a time. And then when you finally got it done and you released the application and you wanted to scale it, you had to buy more servers and put them in the racks and figure out where to put them. And so this just slowed everything down. And so when we moved to the cloud and we got the ability to lease or really rent servers in the cloud, it took away a lot of the hardware aspects of that, but still when you had to scale, you still needed to provision more servers and you still needed to maintain and patch those operating systems in that software stack. And so now what's happening with serverless and with services like Lambda is all that goes away. Now, it doesn't mean there aren't servers under the hood. Of course, Lambda has lots of servers under the hood that are cranking away and implementing your code at lightning speed, but the difference is is you don't have to manage them anymore. You don't have to think about them. You don't have to worry about them. And so with Lambda, all you do is load your code up into the cloud. It's executed instantaneously when you need it to be executed. It scales on demand. So as your applications scale, we can scale the number of Lambda functions in parallel to execute your code dependent on the load that you're putting on it. And you only pay when that code is actually running. So you're no longer paying every month for those servers that are sitting in that room whether you're using them or not. So we've talked a lot about the services, a tremendous amount of services that AWS is offering compared with the three that you started with 10 years ago. We've talked about hybrid cloud, the opportunities there, enterprise. In fact, your CTO just last week in London was talking about the challenges with enterprise and really kind of the shift that they want to help customers grow through. Lot of capabilities, lot of speeds and feeds. What's the message? Rather, who's the target audience as we wrap up here? Who are you selling these services to within organizations? As we see the empowerment moving from IT to the C-suite to lines of business, who are you going after to share with them and get them to come on board as customers whether it's enterprise? Yeah, yeah. I think that's a really good question. And it speaks a little bit to our evolution as a company as well. Where when AWS started over 10 years ago, really focused on our developer messaging. But what we've seen is just the impact of the cloud is so significant that across the entire suite of different, whether that's executives, whether that's IT managers, whether that's developers. There's a significant value proposition that really at every level across the organization, high level of interest. And so we're starting to see, I think you saw it today, just across all sizes of companies, across all industries, and even within government and education and public sector, a strong interest in motion. There's really no industry or government type of agency that's not right now looking at, not just are they going to move to the cloud, but how quickly can we get to the cloud? And so that's really expanded the scope of what we're doing. Great synopsis of actually what Dr. Matt would talked about with how infiltrated Amazon is into all the industries, big in public sector, big in startups born in the cloud, now getting to be big in enterprise. Yeah. So Lole, we've got one minute left. I want to get your thoughts on, as an insider at Amazon, I'll see you out in the field here, you talk to customers in the product market, you have to look at that 20 mile stare in the marketplace, but also talk to the folks internally, engineering, product management. Sure. Talk about the coolest things that are going on right now in AWS that people should know about. Is the machine learning? Is it lambda? Is it red? Yeah. Reds, what's the fastest growing? What's the coolest tech? Yeah, yeah. What are the jewels on the table right now that we should look at and then explore and discover more about? Well, you touched on so many cool things. I mean, the fastest growing service now today is Aurora. Aurora is our own MySQL database engine that runs on RDS. And the response to that's been tremendous. It really offers enterprise class database capability at a tenth the cost of on-premises solution. So that's been, that's really our fastest growing service now. It's really exciting. In terms of the other stuff that we're just seeing tremendous excitement about, you mentioned machine learning, predictive analytics. A lot of the work that we've been doing at Amazon it's been part of our history at Amazon for a long time. Alex says the coolest thing. Everyone wants that. Right. Right. So machine learning, of course, is something that we're going to continue to see significant development. Flying cars coming soon? I don't know about flying cars. It's certainly not on our roadmap that I'm aware of, but who knows what Jeff is working on right now. But we don't have flying cars on our roadmap. Super exciting. I'm sure this is, but it's again, it's a software driven world. Mark Andreessen's new thesis is not software eating the world but software powering the world. And I think that's a whole nother concept. It's a global economy. So a lot of great stuff. Always a great surprise to see the coolness of AWS, the new stuff. Thanks so much for sharing on theCUBE. This is theCUBE bringing you all the goodness of AWS here at AWS Summit in Silicon Valley. I'm John Furrier. Lisa Martin, you're watching theCUBE.