 Live from Las Vegas, it's theCUBE! Covering AWS re-invent 2019. Brought to you by Amazon Web Services and Intel, along with its ecosystem partners. Hey, welcome back, everyone. This is theCUBE's live coverage of Las Vegas. AWS re-invent, I'm John Furrier with Dave Vellante, extracting the signal from the noise sponsored by Intel and AWS. They put the stage together. Two big stages, day two. We're here, day two, our rapid fire, AWS execs coming on, Dave McCann, CUBE alumni, VP of AWS Migration, Marketplace and Control Services, known most from the marketplace and a lot of stuff going on that's exciting in the marketplace. It's where all the ecosystem actions happening. Congratulations on your success. I know you're busy, you got new stuff, but the marketplace seems to be changing the procurement and the consumption of software and solutions, whether it's SaaS or images and technology, your demand on the marketplace. So, great to be back. Can't believe it's another re-invent. This is my sixth. So a lot's going on. Marketplace has got a lot bigger in the last year. We're up to 260,000 customers. So that's substantial growth from last year and we're adding thousands of customers every month. Big headline I have to start with is Marketplace has been a marketplace for software for the last seven years and two weeks ago, we launched a marketplace for data and it's a new service that we call AWS Data Exchange and instead of allowing you to point click subscribe to software and if you're a data consumer in a bank and you're an analyst or you're a researcher in a farmer company, you actually buy data from hundreds of companies. Now you can go into a new console, find the product in Marketplace, go over to this console called Data Exchange and you can go by research data. You can buy healthcare data from Change Healthcare, you can buy news data from Thomson Reuters, you can buy consumer data from Experian and we've launched 1400 products from 90 data providers and we've made it available globally. So it's a whole new class of intellectual property. Are there public data sources in there as well? There are, there's some open source, public sources as well and we're adding literally dozens of products every day. It's a really easy API and the cool thing is that after you subscribe, you copy it right into your S3 bucket, moves into your VPC and then you move it into your project and you can actually create a Lambda function where the next version of the data the next day gets updated and now the data just gets updated. And the use case here is like if I'm a retail outlet, I can buy or go and get weather data and do some things, is that kind of the model? Exactly right. I mean, companies all over the world buy $150 billion worth of data but it's all delivered under thousands of different APIs. Dave, we got cube data, we put all of our data out there which might be an opportunity but seriously, Cube 365 is our new listing on the marketplace so we have a cube cloud service, little plug for the cube, 365 on the marketplace and we're happy. But I want to ask you because one of the things that's coming up is from your team in the marketplace, the industry, is this notion of buying through the marketplace. The trend is increasing. Private offers is a hot feature that you guys have put in place and there's some news there. Could you explain how private offers is changing the game in the marketplace? I'd love to. So if you think about it, a lot of our customers are developers and builders and they're working on something on tests and it's a pilot and you use it for a few hours or a week but once a company contracts for software and if you're contracting for a lot of software, procurement wants best price, legal wants best terms and there's going to be a negotiation and we call that negotiation a private offer and so that involves salespeople and so our top software vendors like a Splunk, a New Relic, a Trend Micro, Palo Alto, their sales guys are negotiating, our sales ladies are negotiating with the customer for a couple of hundred thousand dollars and there's a price in terms, when are you going to pay? What clauses do you agree? How many are you buying? Where are you going to deploy? All of that's negotiated and now we have a portal for the seller, we've had it for a year, we've made some really good changes and essentially it allows the seller to automate that price quote right into your account and then the buyer subscribes and this is allowing our sellers to do quotations in the hundreds of thousands, the millions and sometimes in the tens of millions on a contract right through Marketplace. You're doing millions of dollars of business with private offers today. We've seen vendors write contracts for over 10 million dollars, paid over three years, SaaS contracts, so we've had that program available for the last year and we've been working out a lot of features with the help of people that Splunk and New Relic and today we've made it available for all ISVs in Marketplace. Can you say all the iterations get to take place in the Marketplace, so it's all documented? All those iterations for the end of the quarter. Just make sure I get it right. Before private offers were invite only kind of thing, now you're making it available to all ISVs. Correct, we've got one, as of today, we've over 1,500 ISVs in the Marketplace, you're one of them and with those 1,500 vendors, when they now go into Marketplace, there's a new button in the seller portal and it says create private offer and any of our ISVs can now create a private offer. So I'm going to put my little seller hat on. I'm a SaaS application. Look it, I don't have a big sales force. How can you guys help me? How do I get more sales? Is there a, does the money just fall on my bank account? You obviously have to do marketing, you have to do some discussions. You know, we had a company in the UK called Matillion last year on the Cube. Matillion started with 17 engineers and no salespeople. And now they're like 300 people, two rounds of venture and everything's through Marketplace. Yeah, they've got a big booth here. Well congratulations to those guys, we love them. Become Matillion. Again, they've drafted with you guys. They did. So all the sales will go to market through AWS. Everything goes through Marketplace. So we've made it available to 1,500 vendors today. Okay, so changing procurement, I love that trend. You're kind of modernizing the procurement process with the Marketplace. What about resellers? What's the update there? So the big update there is, you know, for the first six years of Marketplace, we couldn't handle the reseller. We didn't conceive of the VAR or the consulting partner. And we got a lot of feedback that we had to do work. And so we've taken private offers and we've designed consulting partner private offers. And now we've signed up over a hundred top consulting partner resellers, the likes of an octave, an SHI, a rack space in Europe, computer center and soft cat. And now we're working with all of the world's top resellers. And now if you are Splunk or Trend Micro, you can authorize computer center to offer private prices to their customers. And you can actually authorize a wholesale price from Splunk directly to computer center. So they could get paid for... Well, they could actually set the price. Mark it up. I got to ask you, Dave, what's your vision for Marketplace? Because you're doing a great job. It seems like you're pedaling as fast as you can, constantly improving the service. I know you've got a big to-do list. You want to make it easier or make it faster, all that good stuff. But what's the vision? Where do you see Marketplace evolving? You know, Jeff Bezos says it's only day one. We're seven years old. We've barely scratched the surface. Global software is 450 billion growing at 8%. Data is 150 billion growing at 3%. You've got a $600 billion industry. Marketplace has not touched a tiny percentage. We want all of our customers to be able to find, discover, provision and run all of their software and their data out of Marketplace. And it's going to take us another 10 years. And you've got a lot of team. How big is the team? We never publish headcount, but just let's say that Andy Jassy continues to invest in the business. And as we add engineers and we add business people and development people, you know, we work well with our partners. We co-market, we grow. Well, as Andy always says, as you know, and you always say this, the customer needs come first. It's kind of a vetting process. The working backwards documents, we know all about that history. What is the number one customer need that you're hearing, that you're addressing, that you see coming up around the corner that you're constantly working on and potentially new requests that are coming in that are relevant to your business? It's two or three big customer needs. The number one is governance. So while engineers are going faster than innovating, legal finance and procurement need to be confident that the contracts are being written well and is the spend under control. And so we're doing a lot of work around tagging of the resources so that it's tagged to the right project. Did you overspend on the project? And then on the contracting side, we launched this thing called enterprise contract and we're continuing to work with customers. We just integrated into the leading procurement system called SAP Aruba and we launched that last week. And so we now have a procurement workflow that says procurement's happy, IT finance is happy, legal needs to be happy because the engineers want to go quick but we can't leave the IT finance and legal professionals behind because they protect the risk for the customer. And the contracts too are all there. So you're modernizing procurement. We are transforming the supply chain for data and for software. You know I'm a big fan of what you do and I know you got a lot of hard work and a lot of demand but there's a lot of money to be made there. You know we've got a lot of customers to make happy and you know we've got great customers like BP or Shell or Coca-Cola, Coke Industries that are using Marketplace on a regular basis and we have customers now with over a thousand subscriptions from over 50 vendors. And that's a single customer. Dave, thank you so much for coming on. I know you're super busy and making the time for us on theCUBE means a lot. You've been with us the entire journey for the re-invent, it's our seventh re-invent. You've been a great, I missed one. Congratulations man. You saw it working backwards and it's happening. It's working well and you know we learn from our customers and I'm having a dinner tonight with 40 more and I'm sure they'll hit us with more requirements. I'll check my email for the invite. I'm sure it's in there somewhere. Dave McKen here inside theCUBE. Good friend of theCUBE. Hard working. Belive them the next generation, the next-gen Marketplace. Check it out. Of course theCUBE 365, our new offering is up there as of Monday. It's kind of a soft launch but we're telling you now. I'm John Furrier, Dave Vellante. Thanks for watching. Back with more. Thanks for having me. Have a good short break.