 Live from Las Vegas, it's theCUBE, covering AWS re-invent 2017, presented by AWS, Intel, and our ecosystem of partners. Okay, welcome back everyone, this is theCUBE's exclusive coverage live in Las Vegas, 45,000 people here on the ground for Amazon Web Services, re-invent 2017, their annual conference, our fifth year doing it. I got two sets, two cubes, a lot of action, day two of three days of wall-to-wall coverage. My next guest, Tom Kemp, CEO of Centrify, security company out of California and Silicon Valley, leader in identity-based security in the cloud, on-prem, big business growing, fast growing startup in the area, good to see you. Yes, great to be here again. Security has been Amazon's kryptonite for many years. They've done their work, they're paying their dues, they're checking the boxes, certainly we see that on the federal side, public sector, great success. Theresa Carlson has done an amazing job, it's fun to watch her go from an outcast to in the marketplace, ah, we don't trust the cloud to winning, they've done the work. Security, you got to do the work. Yeah, I mean they've done a great job of evangelizing the shared responsibility model where they clearly identify, hey, this is what we do, and then this is what the customer needs to do, and so it's actually a very nice model that they offer that vendors such as us can slot into. And they move so fast, but again, security is one of those things, you can't fake it till you make it, right? You can't make it till you make it, which means it's hard. What are you guys doing with Amazon now? What's your story here for Centrify? Yeah, we do a couple things. I mean, so the first thing is, is that we do privilege management. I mean, the reality is, is that the keys to the kingdom are in the AWS console in terms of the billing systems, firing up servers, shutting down servers, et cetera. A lot of the more recent hacks have been because of people have gotten the access to those keys of those systems as well. So we help lock down the AWS environment, and then we also help lock down the actual servers being deployed on EC2. We provide multi-factor authentication, et cetera. The other thing that we do is, and what we announced just the other day is, we've actually moved our platform over to AWS. So before we ran on Azure, can I say that at this? That's fine. Yeah, I'm just joking. Oh, all fair and love it, sharing the cloud. So yeah, so now we have a production cloud on AWS, and we've also integrated in the marketplace, so there's SaaS billing that people can get as well, which actually is a very unique thing that AWS offers that the other cloud providers don't do. All right, so I got to ask you. Obviously, to me, a super exciting show because some of the announcements are really kind of cool and sexy, and some are under the hood geeky, like Lambda, and then you got the cool AI stuff happening, whether it's VR, AR, or recognition, all these cool, machine learning, democratized toolkits. So does this help you? I mean, Lambda Serverless is a dream for a developer. Just, oh my God, I don't have to worry about anything. What's a local host? I don't need to know what a load balancer is. Does that help you guys, or not? Yeah, it does. I mean, the reality is, is that the amount of servers and applications, be it server or serverless, the amount of applications, the users that are connecting to it, it just adds more to the potential complexity, and we can, through the power of identity, provide a control plane to give people identity-driven security, and really allow people to move. But it doesn't replace us. My point is, I guess, if you're locking down servers, this is a value, right, AC2 instances, but if the developers aren't using EC2 instances, because it's serverless, you guys transparent, are you abstracted away? So we also then integrate into the application, and then help facilitate security for the actual users themselves. But look, the reality of the situation is, is that people are always going to have a hybrid environment. They still have on-premises, which users have to access that environment. They're going to have the cloud environment, and it's going to be heterogeneous. I mean, so AWS is clear leader in the cloud, but you're also going to have Azure, Google, and then the SaaS applications as well, which are going to be used in conjunction with the custom applications people are building. So the one constant- I've been saying this for years. The specialty cloud is a big market. Oracle's a specialty cloud. Microsoft's a specialty cloud. Does they have apps for them? They can be different clouds. Multi-Cloud is what's coming. Do you agree? Yeah, and the reality is, companies go through digital transformation. They're going to open up more and more of their applications to more and more users. They're going to be more and more devices, and that's just going to lead to identity sprawl, more and more passwords that people have to deal with as well. And that's why in a world in which- How bad is that problem? Because that's a huge problem, at least in my mind. Identity sprawl, explain what that is, and how bad is it? And what are the consequences if it's not fixed? Well, look, the reality is 80% of breaches nowadays involve compromised credentials. I mean, we had the whole election, Podesta, the DNC, the recent hack of HBO, you had Sony, it all was tied into people stealing credentials, and people having too many credentials, sharing credentials, et cetera. So, the problem that we face as consumers in terms of having too many usernames and passwords has now entered into the actual enterprise, and we're now in a situation that, yeah, there's an app for that, but that means there's a password for that. So, IT is having a hard time controlling who can access what, while end users are just dealing with too many usernames and passwords as well. So, you have identity sprawl, it's difficult to provision access, and then now you have IoT coming on board, and those devices need an identity unto themselves. And probably the thing that excites me most about some of today's announcements is what AWS is doing with IoT. It's pretty cool stuff. I mean, I think IoT is the trend, AI and IoT, because to me, the data center, and this might be a little bit over the top, but I'll say it anyway, I think private cloud is real the way Wikibon talks about it, but it's still cloud, and the cloud looks at these endpoints as edge devices. So, a data center is just an IoT device, a big one, or a series of devices connected to the network, which connect to the cloud. I mean, if it's operating as a cloud, what's the difference by having it in public? IoT has got to be connected. That's where identity could be helpful. Identity, I mean, because look, every device has an identity beyond just an IP address. I mean, some of the attacks have even taken over IoT devices and then pointed them against websites and brought those websites down as well. So, users have multiple identities, devices have identities unto themselves. So, you've got this kind of N by M situation where you multiply the number of users times the number of devices and with whole digital transformation, more and more users are coming online, connecting to applications. So, I think it's just a great market to be in. Tom, great to have you in the queue. Congratulations on your business growth. What's your secret sauce? We'll end this segment by taking a minute to describe to the folks watching why are you doing so good? What's your secret sauce? What are the tailwinds for you? Why the success? Well, the tailwinds are, first of all, identity has become the top attack vector. It's now involved, compromised credentials, stolen identities, it's now involved in over 80% of all breaches. And the other tailwind is the whole move to the cloud that just has introduced this password sprawl. And we're very unique in the market in that we can secure both end users and their identities, but we can also secure the privileged accounts that are built into the infrastructures of service, the AWS, EC2, the IAM accounts, et cetera. And we do this in a hybrid environment. So, yes, people are aggressively moving to the cloud, but you know and I know that still, what, 70, 80% of IT is still on-prem and it's going to be a mixed hybrid environment. And we offer both software and cloud services to secure both end users as well as privileged accounts in that environment. All right, bottom line, eight of his cloud phenomenon. Describe it in three, in a sentence. In a sentence, oh, it's just the complete consolidation of all IT in a single platform. I mean, it's amazing that, you know, every year they announce another couple hundred new brand new services as well. So, it's just like a phenomena that I've never seen before in terms of a vendor aggressively able to come out with new capabilities and deliver more and more features. Cloud is an operating system, that's what I always say and I can see it coming together and they're staying on their track. I've got to give Andy Jassy credit, even though I bust his chops with putting the gardener slide on there, but because that's old guard, technically this doesn't match his presentation so he's got to fix that. They stay on their line. They're not wavering. They are mission focused, changing the game, adding value for customers. And they're thinking about new app scenarios and I think it was brilliant that, take IoT, there's so many different flavors of operating systems for IoT. They're saying, hey, we're going to come out with a standard operating system that you can leverage and we're going to provide device management and we're going to tie it back into the platform. So, they're going to capture the, they're sure going to try to capture the edge. And then so, and the good news is stuff like that does provide opportunities for vendors such as CentralPy. And they surround themselves with great ecosystem bar. You guys are doing great in there. I know you're growing, but you seem to be bigger, but Intel, they're doing great with Intel. Intel gets a lift off this more compute everywhere. So, even if they kind of split some of the business, whatever they do, who knows what happens there, but Intel wins with this scenario. So, Amazon's not trying to eat the whole pie. They're sharing. They're sharing the wealth. And they do it, and in the case of security, again, I go back to their shared responsibility model. It provides a great framework where it makes it very easy for vendors such as ourselves to say, we play here, here, and here. So, it makes it great to partner with. And the ability for them to actually have SaaS-based applications in their marketplace as well. And that's powerful. And no other of the cloud guys have a similar concept. Yeah, you could put AMIs on infrastructure as a service, but to actually have a cloud-based service tied into the billing system of AWS is incredibly powerful. We're very excited about being part of that. And we will keep an eye on them on the open source side. Certainly, that's an area we're watching very carefully. Hey, the developers love Amazon. That's a good thing. Now the enterprise love Amazon. Public sector loves Amazon. Who doesn't love Amazon web services? We'll be following that very closely over the course of the next few months and next year, 2018. Of course, live here in here in Las Vegas is AWS ReInvent 2017. We'll be back with more coverage after this short break.