 Live from the Sands Convention Center, Las Vegas, Nevada. Extracting the signal from the noise. It's theCUBE covering AWS re-invent 2015. Now your host, John Furrier. Okay, welcome back. When we are here live in Las Vegas on Amazon web services, AWS re-invent 2015. This is Silicon Angles theCUBE, our flagship program. We go out to the events, extract the signal from the noise. I'm John Furrier. I'm under Silicon Angle. I'm joined here today, special guests on theCUBE, Andy Jassy, Senior Vice President of Amazon Web Services. Basically the CEO of AWS. Great to have you on theCUBE. Great to see you. Thanks for having me. Great. We always talk about tech athletes on theCUBE. And I know you're a sports fan, and we love the MLB highlights. Great company. You're a sports fan. We want to have kind of a sports chat here about tech. My first question is, the keynote, you had a smile this year up there. You really had some color, some Andy Jassy, some good vibes going. You showed a picture of your daughter, you had dynamic, it was good. Do you feel different this year? I mean, the industry's a lot of stuff, so you had good supporting cast there. Yeah, well, first of all, being at re-invent is the best time of the year for all of us at AWS. So we're always very happy to be here and be here with our customers and our partners. And then we had so much to deliver and announce to our customers that we've been holding as a secret for so long that we couldn't wait to get it out. So it was fun to be asked to be the one to actually share all that information with our customers. You even showed a picture of your daughter up on stage, I was talking with Stu Miniman, after that I was like, did he get permission for that, Stu? So did you get permission from your daughter? Because my kids will never let me take a picture and put it on any social media, never mind a keynote. Yeah, you know, I saw a bunch of tweets where people said when I got home after the conference that I was going to be in trouble at home, but the reality is, I actually told Emma that I was thinking about doing it the next morning and she was the biggest proponent of my thinking about doing it. In fact, she had suggestions of what else I could say about her in the keynote. I said, no, no, really, this is just about a story and a bridge to the security point, in which case she lost interest. But she was absolutely fine with having her picture to split. When you're on the Snapchat, you know you made it to the top grade of the family community. I'm not sure that'll ever happen for me. I want to get your take on just your mindset right now. I mean, you've been very successful, obviously the numbers that are out in the press, you know, seven billion. Dave Vellante, I always speculate probably 10 billion. You've built the largest storage business since NetApp was founded. You've built the biggest server business. You have now business until all this good stuff happening. You've built a disruption machine. It's really, really changed in the industry. The big whales are kind of scratching their heads. They're in turmoil. How do you feel about this? I mean, like, I know we've talked in the past privately one-on-one. You kind of didn't plan it. You're going to go where the customer's going, but you've got an engine of innovation that's also disrupting. Well, you know, our goal is to try to build a technology infrastructure platform that companies and developers can build their applications on top of. And we started off with just this core set of building blocks that were compute and storage and database. And then we've iterated really quickly over the last nine and a half years such that we now have over 50 services and lots of features within those services. We don't think of it so much as trying to be disruptive as much as just what customers tell us they want that allow them to move more of their workloads to the cloud and for them to be disruptive in their businesses they're pursuing. What we're about is really enabling other businesses to be successful, whether it's a startup getting going or whether it's an enterprise that's trying to reinvent themselves or whether it's a government that's trying to do more for the constituency for less money. You know, culture in a company is defined not so much as what the company says, but what the employees do. And AWS has a cadence, I call it Jassy's Law, and you guys are always shipping product. It's kind of a DevOps ethos, but it's also one of discipline. And I know you're a humble guy, but I want to get your take on that. How is that culture fostered internally? I mean, you're constantly putting out, when people aren't coming on theCUBE, they're like, man, I'm so happy they filled in the white spaces. Is that part of the cadence now within AWS just to keep shipping more and more features? Yeah, well, you know, first of all, fairly obvious point, which is anytime you've got a significant size business, it's never one person and it's never one person's culture. And we have a leadership team at AWS that's very strong and has been together for a long time. And that group is very committed to iterating quickly on behalf of our customers. And you know, some of that, you set a culture around what are the dates that you're going to ship? What do you ask about meetings on where we are and whether we're on track? And then what's your philosophy and on when you ship the products? And we have a very strong principle that we don't try to ship all singing, all dancing monolithic products. We try to pick the minimal amount of functionality that allow our customers to use the service in some meaningful way. And then we organize ourselves and hold ourselves to the standard to execute on iterating quickly based on what they give us as feedback and what they want next. You know, the business is changing the industry all over the place. The computer industry is now integrated. You guys have led that way, that disruption and the innovation. What's the biggest learnings that you've personally have walked away with over the past three years, maybe 10, but in the last three years? Because you guys really have moved the needle in the past three years. Before that, certainly the foundation has said been successful. But what's the biggest learnings that's been magnified for you personally? Well, I mean, there have been so many. We could spend 20 minutes just on the learnings. But you know, the one I would probably pick is that I think when we were starting AWS, we started in significant part because we saw a very strong technology company in Amazon, the retailer, that was thirsty to move more quickly and needed reliable, scalable, cost effective, centralized infrastructure services. And so we thought it had a chance to take off because Amazon needed it and lots of other companies that maybe less technical might need it as well. But I don't think any of us really internalized just how constrained developers and companies have been over the last 30 years. They, you know, builders really want the freedom and the control over their own destiny to pursue the ideas they have that can make their businesses better. And for so long at enterprises, they were so unable to move quickly that all the people inside the company just gave up hope in thinking about new innovations because they knew it was so unlikely to get done. And when you actually give them access to infrastructure in minutes and all the supporting services so they can get from an idea to actually testing it quickly, all of a sudden it opens up all of the ideas that are company and you get lots of people thinking constantly about your customers and how you can solve problems for them instead of a tiny few. You know, I know you're a competitive person. I know you're humbled. They don't want to admit it, but you always say to me privately, oh, we don't think about the competition. We think about our customers. I get that. But you are actually executing a really strong competitive strategy just by playing offense. You guys are shipping more product, but the ecosystem is also now a competitive opportunity, but for you guys and your customers, talk about your mindset on that because on the business side, you're creating a lot of value for people to make money. Certainly on the ecosystem side. So describe your philosophy there and is it still early days for you guys? Is it still a lot more to do? And some of the opportunities that the partners can have. There are so many opportunities for companies of all sizes to build on top of our platform and build successful businesses. And it's astounding. I mean, we are totally blown away with what our ecosystem partners have built on top of the platform and the success they're having in their businesses. And there's no end in sight to that. I mean, all of these areas, every single area of technology, and I think every application area too is being reinvented and has an opportunity to have new experimentation quicker than ever because the cloud allows it to move much faster. And you did take some shot at the competition with Oracle. Obviously, they're a higher priced and you guys are, some of the quotes were like a 10th of the cost you're offering products for free migration products. So you guys have that advantage with the cost. Well, you know, we've built these database products from the ground up with the cloud in mind. So the powered by the cloud, they're highly scalable, they're really flexible, and they have a cost structure that's much more affordable than what the old guard products were. It's why we've been able to add Redshift, which is our data warehouse service, which is as performant as the old guard data warehouses, but a 10th of the cost. Same goes for Aurora, which is our new database engine. Same goes for QuickSight, which is our new business intelligence service. And so we're building them from the ground up with the cloud in mind so that our customers can move more quickly, have whatever scalability they need and also have a better cost structure. You know, the internet of things, things were pumped about that we were talking about this morning. That's kind of one of those things which kind of out there in edge of the network, connected device, connected cars, you know, pretty obvious it's not anything new per se. But now the way the market's evolving, it's a huge opportunity, right? So I want, is that a pinch me moment for you? We kind of saw it out there, but now that you're on top of it, you look at it and say, wow, we're really poised for this. And then how do you see that evolving for Amazon? Cause it's almost like you were, where the puck came to you guys. Yeah, well, you know, most of the big IoT applications today are built on top of AWS. If you look at Nest or Dropcam or Amazon's Echo and the consumer space or Illumina or Tata, their truck fleet application they build or Phillips lighting, those are all built on top of AWS. And yet we always believed that it was more challenging than it should have been for device manufacturers to be able to leverage the cloud. Remember the smaller the device, the less CPU it has and the less disk it has and the more important the cloud becomes is supplementing its capabilities. So we always felt like it was more difficult than it should have been to connect to AWS. And also for application developers we're building the applications that really control these devices. They didn't have tools to deal with things like identity or to deal with things like the state of these devices and be able to build applications that have much more sophisticated capabilities. So that's what our AWS IoT platform capability that Werner announced today is about. And you know, there are going to be millions of these devices in people's homes and in people's workplaces and oil fields. And we hope that it will be much easier for customer, for companies to build these devices. I know you're super busy. Thank you so much for that time. We're going to ask you one final question. Is it a thesis internally of your business that making things easier is part of the core design? Because you guys keep seeping making easier and easier. Is that part of the cultural directive to the team? Make things simpler and easier and elegant? Yeah, everything we do is about the customer and the customer experience. And we're very blessed that we have all kinds of customer feedback loops. And one of the things customers say is we love using these services. There are some folks in the organization that don't want to have to dig into the details as much if you can provide abstractions and make it even easier, even better. So I got to ask you the baseball question since MLB was on the keynote. What inning are we in in the cloud? You know, I still think we're in the first inning. I mean, it's amazing, AWS is a $7.3 billion revenue run rate business. And yet I would argue that we're in really the beginning stages of the meat of enterprise and public sector adoption. If you look at the segments that AWS addresses, infrastructure, software, hardware, and data center services, that's trillions of dollars globally. So we're in the really beginning stages. And you're agnostic to who works on your platform. You could have MLB to, you know, TV to, you know, IOT. Yeah, we want to enable all of our customers build on top of our infrastructure platform. Andy, thanks so much for spending the time. Really appreciate it. Andy Jassy here inside the Cube. The CEO of AWS, I'm sorry, SVP of AWS, Senior Vice President, built a great team. Congratulations, great to have you. We're live here at AWS, reinvent. Go to SiliconANGLE.tv to check out all the footage. Next week will be a Grace Hopper celebration of women in technology computing. Watch us there. We're going to continue our coverage after this short break.