 Welcome back, everyone, to theCUBE's coverage of AWS Reinvent, Amazon Web Services Annual User Conference. I'm John Furrier, host of theCUBE. We're here up in the press area where our other stages, we also have a stage down in the MongoDB Emeralds Lounge, which is Sugar Cane, calling it the Sugar Cube. We've got a cube down there, just to interview the top execs at Mongo, people in the industry, all the legends. Here, I have a special guest, Shelly Cremude, just joined our team, theCUBE Research and Advisory, formerly Wikibon, it was our analyst arm for many, many years, over a decade. She's managing director and lead analyst, entrepreneurial in high integrity, high intelligence. Thanks for joining our team, psyched to have you on board. Absolutely, I'm psyched too. One of the things I want to just kind of put up front is that you have such high integrity. Your reputation is very strong in the industry. You do great work. You founded companies and just your track record and your body of work has been phenomenal. We're super happy to have you on the team and looking forward to creating some new research products and reinventing the whole AR concept and providing a great service and backing it up. Yeah, I think that what we know that we're good at is disruption and disrupting ourselves and disrupting a tired AR model and all of that sort of thing. I think that's really exciting and so we're looking forward to that. I find the AR industry, and having worked with David Laughey, who's a legend in the industry, helped build IDC up in scratch with McGovern. So he knows this thing about research. I came from SiliconANGLE, the podcasting background, search and kind of a techie. And I've worked with all the top AR departments in this industry for years. And it's been a great evolution, great people, their relationship oriented, reputation matters and service matters, but it's changing. And he's seeing a lot more power ship between PR and ARs depending on which company you're in. And a lot of companies are moving into the analyst's relations to take on financial industry and kind of influencers. And a new category of influencer analysts, ones that do a lot of selfies, get in the front row in the keynotes. They're more influential, but still have impact. They're not doing research and you have the hardcore research and you get the financial. But it's what's, the game has changed a lot. And now you throw in AI, a lot more vanilla content coming out with AI, seeing the thing on the web that says, search is being manipulated by AI. So you're starting to see the organic market churning to reputation, not so much influence because that influence game is changing. I mean, I just find it fascinating. And then the companies are realizing, okay, I can't hit everybody because someone might be an expert in storage like Sanjeev Mohan, who's like a legend, but he might not get invited to the big events because he's just storage. Right. So it's a hard nut to crack. It is a hard nut to crack. And I think you also, you mentioned AR, you mentioned PR, there's also marketing and there's also the event team. So really as analysts, we're used to working across all of those areas within a company and being able to help them in a variety of ways. A colleague, and I am not going to be able to remember his company, Duncan Chappelle, does a lot in the AR space. And one of the bits of research that they put out was that people trust analysts more than they trust your marketing materials. I mean, of course, you know, and so we were having this conversation yesterday and the thing about being an analyst is that, you know, it's not a pay to play. You're not paying us to say good things about you. What you're paying us for is our insights, our ability to guide and help you reach your goals. And I think that's really an important part of the equation today. Yeah, it certainly is an era where there's high velocity content, a lot of data in content. Yeah, telling stories, better stories. Making sense of the results. And that's why I'm excited by having the cube and silkenangle.com and the cube and cube research and advisory, formerly Wikibon together, because we can integrate them, but yet have them be cohesive on their own. But the data between them is shared and there's benefits on each one that contribute to the other. So I find it to be an exciting opportunity. And I wanted to ask you what you see as division that you see us doing, share with the folks your plans, what you're thinking. Yeah. And what you're going to be covering. Yeah, absolutely. So part of I think what I'm excited about bringing to the team is that many of my focus areas are areas that aren't typically things that you're focusing on, right? And so whether that's CX and all the things that fall under that bucket, collab, contact center, CRM, employee experience, all of those things, the whole future of work space. Anything having to do with security. We have so many clients in the security space, like Francisco, Dell, IBM, AWS, right? I mean, that's a huge space. And not that we don't already cover security, but there's so much more to security, AI security, all of that sort of thing. I think that we're going to be able to delve into who's not covering AI, right? My expertise is deep in the automation space and all of that. And that sector is evolving as we've got the advent of Gen AI and all of that sort of thing. So that's kind of a little sneak preview. The other thing that we have in the works and I'm really excited about is, and I know that you know this, but we're really passionate about working with the analyst community. And we feel like our peers in this space are brilliant. And so being able to collaborate with them, to lift up their thinking and their insights, and we're rolling out, we're still developing it, but we're rolling out a platform called theCUBE Collective. And so you'll see that. I just did a webcast with George Gilbert as part of this CUBE Collective effort. This new show is focusing on the rise of the Intelligent Data Platform, which is George's area of expertise and all of that sort of thing. We're going to be rolling out a webcast focused on cybersecurity. We're going to be rolling out a webcast focused on 5G. So all kinds of exciting things in the work that you're going to see. That's awesome. And I love that, love the Collective. I love the collaboration because we bring great people together that have high integrity and respect for each other and good reputation. Magic happens. And I think that's so important. And you know what it all does? Serve your customers better. And I think that's what, I was having a meeting yesterday with someone here at the event and they were griping about sort of the traditional AR model that everybody's really tired of. But you know, there's a few vendors out there that everybody groans when it comes to the thought of working with them. And they call this the tax that we have to pay. And there's got to be a better way and we know there's a better way. And so. I think I'd love to hear some of the anecdotes from happy customers and when people get it right, it's fun to see and celebrate those great days. And one of the comments I heard was, love working with you guys, love analysts that help us cross the bridge to the future. And that is really more of a trusted advisory role where, you know, they want to count on you. And I think, you know, 13 years we're doing theCUBE and here at ReInvent, 11 years, you know, we have a relationship. We get to know people, watch the progress. We can be critical, we are. Yeah. But that's our job. And that's our job is to get the data. And I love theCUBE because we get the data from the guests. So super exciting. And again, this show to me encapsulates the industry. Cause, you know, you heard Adam Sileski up on stage here saying, you know, and cause Amazon's getting pounded. Are they old guard? Are they old hat? Are they going to cross to the future? They're behind, they're behind as it relates to AI. And when you're around and you're in the incumbent, you know, believe me, we know what that with theCUBE. The question is, here's who we are. He said, we are always reinventing. And theCUBE has a lot of DNA from the Amazon culture. And it's a similar mindset, which is, if you're not reinventing yourself, disrupting the market and yourself and being aware of where you are, we've been doing this for 13 years. I mean, we've seen us go through inflection points. And I think that speaks volumes because the speed of change and our customers are asking us to saying, I'm going to ride with you guys. I'm going to sit in the front row with you as we have a front row seat to the industry. And we do, and we've had for years, they're in with us. It's not just us having a front row seat. We're with the customer. And to me, I love that about my job. And I think Amazon here is in the same boat and they, they established themselves and said, okay, we're a little quirky company. We do things our way. But one thing that's consistent, we work back from the customer and we're going to reinvent us. And then they laid out the new GNAI stuff. So I thought, I thought that was a compelling way to kind of address the elephant in the room, which was all the puns were saying, oh, they don't have AI, Microsoft's beating them. I mean, Microsoft's not beating Amazon. I mean, it's like- I mean, this is such early days anyway. They're catching up for sure, no doubt about that. But, and then making some good moves to open AI, which I've been, been very pleased with. But there's no way they're ahead because co-pun is integrated into Microsoft's products, but they just rolled out more infrastructure. And if that stuff hits that they announced today. But you know what, John, you can roll out all the crap you want to roll out, but the real magic is in the adoption. And what all the data is showing right now is that especially at the enterprise level, the adoption rate is really slow. So nobody's really behind, you know, especially, you know, part of the report that we put out right before the event on AI, and I'll share a link to that in the show notes. But, you know, part of the data that we've seen is showing that enterprise adoption is fairly slow, where we're seeing adoption is with the younger startup with that mentality, and it's really the mentality that we have, you know, move fast, break stuff, figure it out, fix it as you go along. You know, good is the enemy of perfect, or perfect is the enemy of good, whatever that saying is. But anyway, I just think that there are so many things to be excited about ahead. And they're really, you know, open AI may dominate conversations, but they're not the only player in the space. We were just down in the sugar cane where Mongo has an event and we have a set down there. David Chiaire, the CEO, we were talking, and what's interesting, you got two factors going on that I think are relevant to the market right now. The developer-led model where developers are going to be in charge as automation hits and more developers are going to be encoding AI. Then you're going to have cost and price performance conversations. So I think, to me, I had to put the world at the two buckets right now. It's developers who are going to basically still be in charge and drive a lot of the agenda. And then the infrastructure performance is where there's hard costs involved. If you don't get the energy equation right, you're going to get blown out on costs. If you don't get the performance right that's tailored to the model, you're going to have some performance concerns. So there's going to be a real battle for supremacy around AI in those areas. Are the developers coding in line? Is it legit code? Is it trusted? Can it be verified? Is it helping them do their job better? And I think MongoDB's approach was awesome because they're saying, hey, that's our TAM, developers. We're not a data company and analyst. We have databases, we have a platform called Atlas. I think that's a smart play. And I think Amazon's trying to do the same thing with saying, we're the best cloud. We're the super cloud. We have the best chips, the infrastructure layer, we have the best models and choice with security built in from day one. And enabling- Which is a big factor. Huge factor. Huge factor and that's something that's glossed over by so many other providers. And that is one of my most favorite things about what it is AWS is doing. He took a ding on Microsoft when he said, I would never imagine rolling out something that didn't have security. That's a direct shot at Microsoft. Yeah. I mean, it should be a foundational thing, period. And then he put up Jordan Novelet's CNBC article on stage and they actually blurred out his name. I was just tweeting with him online. Blurred out his name and company. So I like how he's not pulling any punches, finally addressing the elephant in the room, which is open AI and anthropic versus open AI and then their investment in that. So that's the battle of titans. I mean, you've got Google, got the sphere. You know, a big story here in Vegas with the folks who aren't here is that Google just bought out the advertising for that new sphere which is this huge monster, this beautiful thing and Amazon missed it. So like basically on their show here in Vegas they're dominating the Google ad. It's kind of, it's a middle finger for AWS for sure. Someone at AWS missed that and they're going to probably be in the principal's office tomorrow. Prats to whoever did this at Google Cloud because it was a brilliant move. I mean, it was. So let's back up just a little bit. And I know you had an exclusive interview pre-show with Adam Silipski. Talk a little bit if you would about just some of the highlights of that conversation. I know you talked about chips. I know you talked a little bit about anthropic, but what were the high level takeaways from that conversation? You know, I wrote, I think 2,000 word posts under the companion cheat sheet post going to summarize it, but pretty much he didn't reveal anything, but I kind of put the keynote together based on the conversation flow. And so essentially pretty much nailed the keynote. But it was more, there was a lot of wide range in conversations in that one was their core business is still being upgraded. Graviton 4, fourth generation. So traditional non-GNI workloads are going to be worked on. Can't forget that's still a lot of non-generated workouts out there. And then the second one was the role of Silicon, right? The role of Silicon chips, custom chips, custom chip development. And then I had no idea, and he's going to come and say, but I brought up NVIDIA and I called the GPU conundrum, which was, we just came back from supercomputing and I asked him directly, DGX cloud is addressing this new sub market, it's kind of super cloud like where people are going to stand up GPU clusters and enable kind of these secondary GPU AI clouds, which we're already seeing. Well, because there's a huge challenge in being able to get the GPU computing power to run your AI needs, you know, your gen AI stuff. It's a big deal. And you got companies doing that core weave and a bunch of other ones, they're becoming AI as a service clouds. That's a direct strike at Amazon. And he addressed that by saying, it's not about just the chips. And he nailed that in the keynote here, that it's about the networking and stuff. And he actually rolled out specifics on that. So that was a nice gem there. But other things that was interesting that didn't make the story was I brought up the comparisons of the World Wide Web. And he was animated and he said, who's the internet company? And I said, I actually think someone did try to claim it once, but no one owns the internet. No one owns AI conceptually. Developers will build apps. And his point was, there was no one model to rule the world. And I said, well, you had AOL as an online service provider. That was proprietary, that was not the World Wide Web. World Wide Web was DNS, HTML, HTTP, content on top of standards that made everything successful. The online service providers, CompuServe, AOL, went out of business. So we kind of were riffing on the concept of who's the AOL for AI? Now, open AI has been criticized as being closed AI in Twitter. And you go in the thought leader circles, you have the open source community saying, they're not open. And then you've got Huggingface, Clem at Huggingface, keep alumni, really vocal around open and we'll win. So you're already seeing it now. It's very similar to the web, Shelly. You remember those days? I do. Online service providers, you dial up and you're in a proprietary platform with content service providers. Those content service providers all went to the web. So I think we're in an interesting moment. I think Silebski got it right with this idea of the power law. He validated our power law research that we put out. And he actually weaved that into the keynote. So congratulations to the research team. You guys did good work there. And he recognized that. So I think our work has contributed to his keynote, which I was a private victory for us, but you can see that in there. And he wants to fight. I think he didn't say this, but I think he's like proud Amazonian like Andy Jass. He's like, I'm not going to let people say we don't have AI. And so this event, he kind of flexed. Yeah, no, well, and I mean, he needed to though. I think that he needed to. And I enjoyed the conversation with Dario Amodi, who was part of the keynote this morning. He's the co-founder and CEO of Anthropic. And one of the things that he said toward the end of his conversation was, he looks at this as a race to the top. And I feel like that is really important because in what I like about Amazon and others approach to Gen AI in particular is I believe a federated approach is the most customer centric way to go. Instead of all your apples in an open AI bucket, being able to work with different providers of family of providers, I mean, that's always going to be a better solution. And you get the benefit of all the innovation. And you know, again, we were talking about the cube collective, you know, a collection of brilliant minds makes your findings even better, right? And I think that a federated approach to AI is similar to that. And so I thought that was cool. Dario also just kind of talked briefly about some of their, the sectors they're focusing on, the biomedical space, you know, the story about Pfizer and, you know, the results they were able to reap for Pfizer, the legal space where they're working with a deployment through Lexis Nexus, the finance industry where they've got to deal with Bridgewater to develop an investment analyst assistant. Like there's no sector that's not going to, already being or going to be touched by Gen AI. And I think that's really exciting. Well, I'm super excited to have you on the team. I got a lot of great messages yesterday. You posted on LinkedIn, I think it was awesome. And a lot of people are super excited for the work we're going to do. And it's great to have you. And we're here again, we'd love to reinvent what we do. We go to the events, we extract the signal from the noise, we've got SiliconANGLE, tsunami content, we've got a big special reports there, we've got news, analysis, research, commentary, all there in siliconangle.com. Look, you're obviously here on the ground, in studio in Palo Alto, and the CUBE research team on the ground, getting all the data, collecting it in, and providing insights and the full machine is here. Team coverage of re-invent is here. We're up in the press area. This is where one of our stages is, the other stage is down in Mongo DB special event. Bringing you coverage back to everyone in the studio in Palo Alto, we'll be right back here on location after this short break.