 Okay, welcome back. We are live exclusive coverage of SiliconANGLE and Wikibon's exclusive coverage of Amazon Web Services re-invent conference. I'm John Furb joined by Jeff Kelly, Big Data Analyst at Wikibon. Breaking down the announcements around Kinesis, Redshift. Amazon is moving the game to a whole nother level in the big data world. The big data impact is significant. We're going to break it down with analysis of our views of Amazon's announcements this morning. Obviously, slew of announcements over the past two days. Jeff Kelly, Big Data is impacted. Yesterday, we got a bunch of tweets, we heard from people, hey, all this great stuff, VDI, enterprise ready. Not a lot of big data discussions, but when you look at Kinesis, you look at what's going on out there with Redshift, you're seeing a major move by Amazon to essentially close the loop on the integrated stack. And I want to really drill down with you because there are some impacts here. And my view is very clear that, in our experience with Amazon stack that we write, we move from Hadoop and HBase to Amazon, RDS, DynamoDB, Elastic Beans, like a variety of other technologies, and by far and away, significantly superior at all levels. So the thesis that I'm putting forth is, Kinesis puts the open source projects on notice, specifically Flume, Kaska. These are streaming aspects that Amazon essentially is now putting out there with Kinesis as an alternative. But when you got Redshift in here, you're talking about like, Hive now is put on notice. So to me, there's a major shift here. This will probably change the game significantly on the open source world because now Amazon can close the loop. They can stream data as a manning service, bring it into Redshift, provide essentially business intelligence, log data, et cetera. Significant game change, again, at large scale. So what's your take? Do you see it that way? What's your take? Well, as you said, really, AWS has pretty much the entire big data workload taken care of in terms of a product portfolio. Now they've got Kinesis for streaming, EMR for large scale batch processing, Hadoop, so you've got Redshift in the data warehouse and high performance analytics base. You've got DynamoDB for the NoSQL workloads. You got Elasticash for in memory. I mean, they've got it covered from a product standpoint. That's clear. I mean, look at those products I just mentioned. So Redshift, they're taken on the data warehouse world. EMR, they're taken on the open source to dupe world. Kinesis, now they're taking on people like IBM with InfoSphere Streams. So really, clearly they offer all the products. The question is, can they knit those together and make it easy for customers to knit those together to actually close that loop and provide some of the orchestration to actually make those things work seamlessly together? Dave Vellante and I were talking in our opening segment about some of the things and I broke it down, you get the managed services, you got the database layer or data layer and then you got infrastructure on the hood, innovations going on in all three of those theaters. But specifically, the scale is the differentiation for Amazon and one of the things that's going on is that who can take on Amazon? If they do close the loop here with Kinesis, you then can stream everything into Redshift. Redshift becomes a repository. I mean, this sounds like hype. We love hype, we love flume. These are open source projects in Apache. This is a direct threat to that and you got LinkedIn has their own streaming service so social might look more like an overlay layer but who can provide that on top of such a large scale infrastructure? That to me is a direct threat to Cloudera in particular. Well Redshift is, as AWS likes to point out the fastest growing service in AWS history in terms of revenue. And the reason that is because the performance is largely considered best in the industry. You've got, the technology is essentially car excels analytic database under the covers and which is widely known for performance. With the scale now, Amazon's able to scale that out to petabyte size. That's not something you can do combine the scale and the speed with a lot of these other solutions. So look, Amazon is trying to take on people in all these different areas. The open source to do world, the traditional data warehouse world, they haven't yet taken on kind of the business intelligence world, more partnering, starting to partner with companies like Jaspersoft. I'm seeing Tableau come up more and more. We'll see if they decide to take on that world as well. But they've got the full stack of big data products. It's like I said, I think it's a, there's a couple of challenges. One is integrating them, orchestrating them. The other is, and this relates to a lot of AWS in general, is getting companies to buy into moving things to the cloud. Especially sensitive data. We're talking big data scenarios. You've got, you know, internal regulations you got to deal with. You've got culture, the way people do things. So, you know, the way they've done them for years. So that's going to be a challenge. Let's talk about Cloud Air. Because you know, Cloud Air is a company that we're very close with. One SiliconANGLE started in the Cloud Air office. Amarawa Dalla, the founder, was generous enough to allow us to start the company in their office space incubated in there. So we've been watching them for a long time. Big fans. Obviously Hortonworks, again, came in from Yahoo. These guys are pioneering the Hadoop world. But what's interesting is with this change now with Amazon, you're seeing a movement where it's not about just source code anymore. It's about who can actually deliver the platform solution. So the integrated stack of the cloud that Amazon has with the leverage of the scale significantly changes the game for Cloud Air. So it becomes both an arms race on scale and it also becomes who can deliver the functionality. So even though Cloud Air has an excellent vision and solution that they're driving down, will they cross the finish line fast enough? I mean, that's the question. And at what point does developers abandon those projects to go with hardened functionality in the cloud? And this is not just for Cloud Air. You're talking about Pivotal as well. So big question. So it basically changes the game because it makes Cloud Air from a big player to a little player in that kind of scale. And now you've got VMware, which is the IT customer. So there's all these things on the table, right? So we'll start with Cloud Air, then we'll get to VMware. What does Cloud Air need to do, Jeff, in your opinion, to close the loop to the degree that Amazon's doing it? Well, it's going to be a challenge because when you're essentially a one product company, you're a Hadoop company. You're going to try to make Hadoop applicable across as many use cases as possible. That's what we're seeing Cloud Air do with Impala, with Search, and some other ways of accessing data inside of the Cloud Air distribution of Hadoop. What they need to do, one of the things I think they need to do is start embracing the cloud themselves more. I've heard numbers as high as 95% of Cloud Air deployments are inside the firewall. That's still, despite, they're delivering management software to make it easy to manage and monitor those infrastructure. But look, Amazon's value proposition is significant. I mean, what's one of the biggest challenges of Hadoop? It's the infrastructure. It's cabling it together. It's getting to work, get it to continually work well. Back up in recovery, disaster recovery. So Amazon says, we'll take care of that. Don't worry about it, build your applications. You know, Jeff, I think about this a lot. One, first of all, I think Cloud Air has got a big opportunity in them because they're the leader and they have some good people over there, but they have new management team over there. They're building to scale. Some say go public, but the market changes. And one of the things the startups have to do is be nimble to the marketplace. They have enough funding, they can get there. Hortonworks is a little bit different animal. I think Hortonworks is tried and true, pure open source. Their business is growing every day. I think they're going to make it. Hortonworks, I think, will make it clearly. But I think Cloud Air has a bigger opportunity and that is that if you look at the name of Cloud Air, it's Cloud Era. And I think Cloud Era could be a Cloud player. If the tide shifts, Cloud Era could actually, if they make the right strategic decision, now this would be a complete pivot, they could compete with Amazon. So Cloud Era could be the catalyst for competing with Amazon. Because right now, we are looking at the landscape right now. Who's competing with Amazon? Who can take on Amazon? If Amazon becomes, as I just bumped into, a big industry executive luminary in the hallway, they're being called the Microsoft of this generation. Massive scale, massive kind of monopoly-like behavior, but in the sense of the size. So who's going to compete with them? Can it be a Cloud Era that maybe will change colors and become a massive Cloud player and bundling a Hadoop underneath and all this greatness and have a suite offering the same as Amazon? Or is it VMware and shift the game to IT? Because Amazon has not cracked the nut on IT. So the question will be, does DevOps programming translate directly to the enterprise? I don't think it does. I think that's the opportunity. Well, speaking specifically around Cloud Era, I think if they were to make that kind of pivot, start to embrace the Cloud, they'd have to look at something like OpenStack, something where they'd have to partner heavily. They're not going to compete, be able to compete with something like Redshift on scale and performance. They're going to need to partner with other players in an open Cloud. And that might have a significant value proposition for a lot of customers who maybe are reluctant to go in with Amazon where you're basically using their full SAP. If you offer more choice, customers like choice, developers want choice. So my advice to Cloud Era would be, look at partnering in the Cloud with some other best of breed data management products, database products, so that you can truly knit together a enterprise grade, big data platform and deliver it as a service, abstract away a lot of that complexity, let developers do what they do best, develop applications that leverage the data. Great time to watch this industry. Of course, we're excited. We're intoxicated by all the action. It's really exciting. It's going to be great to watch. We'll watch Cloud Era, watch everyone else. But in summary, here's my take. We've been saying earlier to use the sports analogy of football. Amazon's moving the ball one yard at a time, first in 10, move the chains with improvements across the board and under the infrastructure side and little features like VDI. However, the big passing play, the big yardage gain here is Kinesis. I think that to me is a long ball play that's successful right now. They've got that big play. That streaming piece connects the dots. It closes the loop. This is a significant move for Amazon. They close the loop within the stack. Then right there, they can go back to the running game and continue to harden it and the scale, it's going to be hard to catch. So that to me is good news for Amazon in the public cloud. I agree. I think the challenge is going to be around, you've got the cultural issues around moving data into the cloud that a lot of organizations still have, whether it's right or wrong, that's still an issue. And then Kinesis, they've got to prove it with some use cases. So like I said earlier today, the use case they showed on stage today was more of a social media application. Interesting, but to me, if they can actually show some proof points where they're doing things in the industrial internet space in healthcare and energy and transportation, those are the proof points I'll be looking for. And now on the enterprise side, you got VMware, now Pivotal, that little spin out that's kind of like an experiment at this point, pretty expensive experiment, but I think that the opportunity to compete against Amazon will come from like a wildcard play like Cloudera morphing into or someone like a Cloudera morphing into an emerging player or the old guard of EMC VMware using Pivotal as a way to move the DevOps mindset of developers into an IT centric framework. So you look at the success of companies like ServiceNow, a Splunk, those guys were successful in the enterprise. So I think if the enterprise accepts the DevOps mindset, the tooling might look different. So the race to commoditize Amazon's functionality is going to happen, it's going to come from a Pivotal of VMware, IBM, or an HP, can OpenStack bring that to the table? And I think OpenStack is obviously a contender. So we'll be watching, this is the analysis and breakdown of Amazon's moves, kind of connecting the dots on day three, it's all kind of coming together, moving the ball yard by yard, but the big play, Kinesis, we love it, great product, closes the loop on the stack, we're excited by that. And I think it'll show great traction from Amazon. And again, we'll see what they do in the enterprise. I'm John Furrier with Jeff Kelly. We'll be back after this short break with our next guest. We'll talk about security, Chief Security Officer for Amazon, here inside theCUBE. Stay with us, we'll be right back with our next guest after this short break.