 Live from Washington D.C., it's theCUBE, covering AWS Public Sector Summit 2017. Brought to you by Amazon Web Services and its partner ecosystem. Where was Mr.... And welcome back live here on theCUBE. Along with John Furrier, I'm John Walls. Welcome to AWS Public Sector Summit 2017. Again, live from Washington D.C., your nation's capital, our nation's capital. And with us now is our host for the week. Puts on one heck of a show. I'm going to tell you, 10,000 strong here, jammed into the Washington Convention Center. Teresa Carlson from World Wide Public Sector. Nice to have you here, Teresa. Hi, good afternoon. Thanks for joining us. Love theCUBE and thank you for being here with us today. Absolutely. All week and back. It's been great, it really has. So let's just talk about the show first off. Okay. Way back, six years ago, right? We could probably get everybody there jammed into our little area here just about, I think. Pretty much, yeah. Hard to do today. That's right. Yeah, so just how do you feel about when you see this kind of growth and this kind of, not only at the show, but in your sector in general? Well, you know, I think at AWS, we're humbled and excited and on a personal level because I was sort of given the charge of go create this public sector business worldwide. I'm blown away. I pinch myself every time because you did hear my story. The first event, we had about 50 people in the basement of some hotel. Like, and then we're like, okay. And today, you know, 10,000 people. And last year, we had it at the Marriott Warman Park and we shut down Connecticut Avenue. So we sort of knew we needed to make a change. But it's great. And this is really about our customers and partners. This is really for them. It's for them to make connections, share. And the whole theme of this is superheroes and they are our superheroes. Well, one of the heroes you had on the stage today, John Edwards from the CIA. One of your poster children, if you will, for great success in that kind of collaboration, said something to the effect of, quote, the best decision we ever made at the CIA was engaging with AWS in that partnership. When you hear something like that, from such a treasured partner, you got to feel pretty good. Well, you just have to drop the microphone boom and you're sort of done because, and they are doing amazing work, you know, and their innovation levels are really leading, I would say, in the US public sector for sure and also not just in US public sector, but around the world, their efforts of what they're doing and the scale and reach at which they're doing it. So that's pretty cool. And John, you've talked about the CIA moment. I'd like to hear the story. I mean, Sherry, Theresa. Are you still my thunder here? No, no, I'm not. I'm setting you up. That's what a good partner does. Well, John, you know, we've had multiple times already. So I'll say for the third time, the shot heard around the cloud was my kind of definition of a similar moment. As always see in big mega trends, there's always a moment. It was when Obama tweeted, Twitter grew, Lane landing on the Hudson. There's always a seminal moment in major trends that make or break companies. For you guys, it was the CIA. And since then, it's just been a massive growth for you guys because that deal was interesting because it validated shadow IT, validated the cloud and it also unseeded IBM, the behemoth sales organization that own the account. So in a way, a lot of things lined up. Take us through what's happened then and since then to now. Well, I mean, now you sort of, you saw between yesterday at Werner Vogels keynote and my keynote this morning, just the breadth and depth of the type of customers we have. Everything from the UK government, GCHQ, the Department of Justice with the IT in the UK to the Centers for Medicare for HHS to amazing educational companies, Cal Polytech, Australia and tax office. I mean, that's just the breadth and depth of the type of customers we have and all of their stories were impactful. I mean, every story is impactful in their own way and across whatever sector they have. And that really just tells you that the type of workloads that people are running has evolved because I remember in the early days when you and I first talked, we talked about what are the kind of workloads and we were talking a little bit about like website hosting. That's of course really evolved into things like machine learning, artificial intelligence, you know, massive scale of just applications. Five years ago, I think with five or six years ago when we first chatted at re-invent, it's interesting because now this is the size of re-invent what it was then. So you're in the same trajectory from a show size. Again, validation to the growth in public sector. But I was complimenting you on our opening today saying that you're tenacious because we've talked early days. It was kind of a slog in the early days to get going in the cloud. You were knocking on a lot of doors, convincing people, hey, the future is going to look this way. And I won't say they slammed the proverbial door in your face, but it was more of, whoa, they don't believe the cloud is ever going to happen for the government. Share some of those stories because now looking back, obviously the world has changed. It has and in fact, it's changed in many aspects of it from policy makers, which I think will be great for you all to have on here sometimes to get their perspective on cloud. But policy makers who are now thinking about, we just had a new modernization of IT mandate come out in the US federal government where they're going to give millions and millions of dollars toward the modernization of IT for US government agencies which is going to be huge. That's the first time that's ever happened to an executive order around cybersecurity which is pretty much mandated to look at cloud and how you use it. So you're seeing things like that to even have grants are given where it used to be an old school model of hardware only to now use cloud. So those like ideas and aspects of how individuals are using IT but also just the procurements that are coming out, the buying vehicles that you're seeing come out of government, almost all of them have cloud now. And John and I were talking about DC and the political climate, obviously we always talk about on my show, comment on that, but interesting, theCUBE, we could do damage here in DC. So much target rich environment for content but more than ever to me is the tech scene here is really intrinsically different. For example, this is not a new shiny new toy kind of trend. It is a fundamental transformation of the business model. So what's interesting to me is again, since the CIA shot a hurt around the cloud moment you've seen a real shift in operating model. So the question if I have for you, Theresa, if you can comment on this is, how has that changed? How has the procuring of technology changed? How has the human side of the change? Because people want to do a good job. They just on many computers and mainframes from the old days, with small incremental improvement over the years on IT but now to a fundamental agile that's going to be more apps, more, more, more apps. And I will, and you said something really important just a moment ago, which this is a different kind of group than you'll get in Silicon Valley. And it is, but it's a very enterprise. Everybody you see here, every project they work on, we're talking DOD, the enterprise of enterprises. So they have really challenging and tough, you know, problems to solve every day. And how that's changed in the old days here in government, they know how to write acquisitions for a missile or a tanker or something really big in IT. And what's changing is their ability to write acquisitions for agile, IT, things like cloud utility-based models, moving fast, flywheel approach to IT acquisitions. So that's what's changing, that kind of acquisition model. And then also you're seeing the system integrator community here change. Where they were just sort of what I call body shops to do a lot of these projects. They're having to evolve their IT skills. They're getting much more certified in areas of AWS that the system had been to certified solution architects at the highest level to really roll these projects out. So training, education, the type of acquisition and how they're doing it. What happened in terms of paradigm shift mindset? Something had to happen, because you brought a vision to the table, but somebody had to buy it, right? And usually we talk about legacy systems was a legacy mindset too. Resistant, reluctant, cautious. Well everything that's grown at. Where did it tip the other way? Where did it go? I think it's been, over time, it's different with different parts of the government that culture is the hardest thing to always change. Like other elements of any changes is you get there but culture is fundamentally the hardest thing. So you're seeing that, you've always heard us say you can't fight gravity and cloud is the new normal. That has just kept right that sort of whole culture. People are like, I cannot do my project anymore without the use of cloud computing. We also have a saying you can't fight fashion either and sometimes being in fashion, it's kind of what the trends are going on. So I got to ask you, what is the fashion statement in cloud these days with your customers? Is it, you mentioned they're moving much down in the workload, is it multi-cloud? Is it analytics? Where's the fashionable, cool action right now? Yeah, I think here right now the cool thing that people really are talking about are artificial intelligence, machine learning, how they take advantage of that. You heard a lot about recognition yesterday, Polly and Lex, these new tools, how they are so differentiating anything that they could possibly develop quickly. So it's those kind of tools that really we're hearing and of course the IoT for state and local is a big deal. So I got to answer the hard question. I always ask Andy a hard question too. Yeah, okay. If he's watching you're going to get this one prior to reinvent. Amazon is a DevOps culture. You ship code fast and you make all these updates and it's moving very, very fast. And one of the things that you guys have done well but I still think you need some work to do in terms of critical analysis is getting the releases out that are on public cloud, into the Gov cloud. You guys have shortened that down to less than a year on most things. You got the East region now rolled out so full disaster covered. And that's but government has always been lagging behind most commercial. How are you guys shrinking that window? When do you see the day when push button, commercial, Gov cloud are all locked step and pushing code to both clouds. Yeah, so we could actually do that. We couldn't do that today but there's a couple of big differentiators that are important for the Gov cloud. And that is it requires US citizenship, which as you know we've talked about the challenges of technology and skills. I mean that's just out there, right? And at Amazon web services, we're a very diverse company of group of individuals that do our coding and development and not all of them are US citizens. So for these two clouds, you have to be US citizen. So that is an indicator. In terms of developers. In terms of building the product. Well managing, managing, not building, but managing sort of the management aspect. And we because of their design, we have multiple individuals managing multiple clouds, right? So now with us it's about getting that scale going, that flywheel for us. So now it's going to be managing the USA versus made in the USA with everything that's in service. Yeah, it is. And so for us it's about just making sure, number one, we can roll them out. But secondly, we do not want to roll services into those clouds unless they're critical. So we are moving a lot faster. We rolled in a lot more services. And the other cool thing is we're starting to do some unique things for our Gov cloud regions, which maybe the next time we can talk a bit more about those things. Okay, great. Final question for me and for Lechon Jump in. The CIA has got this DevOps factory thing. And I want you to talk about it because I think it points to the trend that's encouraging to me at least because I'm skeptical on government as you know. But this is a full transformation shift to how they do development. Right. So talk about this 4,000 work stage or developers that got rid of their development work stations are now doing cloud. And the question is, who else is doing it? Is this a trend that you see happening across other agencies? Yeah, so the reason that's really important, I know you know in the old school model, you waited forever to provision anything even just to do development. And you heard John talk about that and that's what he meant on this sort of work station. This long period of time it took for them to do any kind of development. Now what they do is they just use any mode they have and they go and they provision the cloud like that. And then they can also not just do that, they can create Amis of course, their Amazon machine images. So they have super repeatable tools. So think about that. We have these super repeatable tools sitting in the cloud that you can just pull down these machine images and begin to create both code and development and build off those building blocks. You move so much faster than you did in the past. So that's sort of a big trend. I would say they're definitely leading it. But other key groups are like NASA, HHS, Department of Justice. So those are some of the key big groups that we're seeing really do a lot of changes that they're doing. I got to ask you about them. They're also DHS on the Kessman Border Patrol. Same, they're doing the same. Really innovators. So one of the things that's happening which I'm kind of intrigued by is the whole digital transformation in our culture. Society, certainly the federal government wants to take care of the civil liberties of the citizens. So it's not a privacy question. It's more of where smart cities is going. You're starting to see kind of the I call the digital kind of parks, if you will. Where you're starting to see like a digital park going to Yosemite and camping out and using pristine resources and enjoying them. There's a demand for citizens to get democratized resources available to them. Super computing or data sets. What's your philosophy on that? What is Amazon doing to facilitate and accelerate the citizens value of technology so it can be in the hands of anyone? I love that question because I'll tell you at the heart of our business is what we call citizen service. Paving the way for disruptive innovation to make the world a better place. That's your citizen services and their access. And for us, we have multiple things. Everything from our data set program where we fund multiple data sets that we put up on the cloud and let everybody take advantage of them from the individual student to the researcher for no fee to working with- You pick up the costs on that. We do. We fund, we put those data sets in completely. We allow them to go and explore and use. The only time they would ever pay is if they sort of go off and then start creating their own systems. But we've done that with tons of amazing, well, the most highly curated data sets that they're right now are pretty much on AWS. You heard me talk about the earth, the AWS earth that we have that shows the earth. We have weather data sets, cancer data sets. I mean, we're working with so many groups, genomic, phenotypes, genomes of rice, the rice genome that we've done. So with something that you see that you're behind or passionate about and will continue to do. Because you've got to provide, you never know when that individual student or small community school is out there and they can access tools that they never could have accessed before. I mean, the training in education because you've got to, you know, that creativity of the mind. We need to open that up to everybody and we fundamentally believe that cloud is a huge opportunity for that. And you heard me tell the thousand genome story in the past of where we took the cancer data set or the genome data set from NIH, put it into AWS for the first time. The first week we put it up, we had 3200 new researchers crowdsource on that data set. And that was the first time that I know of that anyone had put up a major data set for research. And the scale certainly is a great resource. Yeah. And smart cities is an interesting area. I want to get your thoughts on your relationship with Intel. Yeah. They have 5G coming out, they have a full network transformation. You're going to have autonomous vehicles out there. You're going to have all kinds of digital. How are you guys planning on powering the cloud and what's the role that Intel will play with you guys in the relationship? Well, of course serverless computing comes into play significantly in areas like that because you don't, you know, you want to create efficiencies even in the cloud. I mean, we're all about that. People, you know, they always said, oh, AWS want to do that because that's disrupting themselves. Well, we're okay with disrupting ourselves if it's the right thing. And we also don't want to, you know, hog resourcing of these tools that aren't necessary. So when it comes to devices like that and OT, you need very efficient computing and you need tools that allow that efficient computing to both scale but not over resource things. So that will, you'll see us continue to have models like that around OT or Lambda or serverless computing and how we access and make sure that those resources are used appropriately. We're almost out of time. So I'd like to shift over if we can, really impressed with the NGO work, the nonprofit work as well and your working education space. Just talk about, I guess, the nuance differences between working with those particular constituents and the customer base, what you've learned and the kind of work that you're providing in those silos right now. They are amazing. They are so frugal with their resources and it makes you hungry to really want to go out and help their mission because what you will find when you go meet with a lot of these not-for-profits, they are doing some of the most amazing work that even many people I've really not heard of and they're being so frugal with how they resource and drive IT. And there's a program called Feed the World and I met the developer of this and it's like two people and they have fed millions of people around the world with like three developers and creating an app and doing great work to everything from like the American Heart Association that has a mission literally of stopping heart disease which is their number one killer around the world and when you meet them and you see the things they're doing and how they are using cloud computing to change and forward their mission, even you heard us talk about human trafficking. It's a horrible, misunderstood environment out there that more of us need to be informed on and help with but computing can be a complete differentiator for them cloud computing. So we get millions of dollars of grants away and not just give it away, we help them. We help them with the technical resourcing, how they're efficient and we work really hard to try to help forward their mission and get the word out. So it's really, it's humbling and it's really nice to feel that you're not only doing things for big governments but you also can help that individual not-for-profit that has a mission that's really important to not only them but you know, groups in the world. It's a different level of citizen service, right? I mean, ocean conservancy this morning. Right, talking about that. Title change, a global change. What's the biggest thing that in your mind? Personal question. Obviously you've been through that from the beginning to now. A lot more growth ahead of you. I'm speculating that AWS public sector although you won't disclose the numbers. We'll get, I'll find a number around here. It's big. You guys could run the table, take a big share. Similarly you've done with the startup and now enterprise market. What, do you have a pinch me moment where you go am I, you know, where are we? Like where are you on that spectrum of self-awareness of what's actually happening to you and this world and your team? Yeah, you know, in public sector we operate just like all of AWS and all of Amazon. We really have treated this business like a startup and I create new teams just like everybody else does and they go, you know, make them frugal and small and I say go do this. And I will tell you, I don't even think about it because we are just scratching the surface. We are just getting going. And today we have, you know, customers in 155 countries and I have employees in about 25 countries now. And in seven years ago, that was not the case. So when you're moving that fast, you know that you're just getting going and that you have so much more that you can do to help your customers and create a partner ecosystem. So it's really, it's a mission for us. It really is a mission and I'm, you know, my team and myself are really excited about out there every day working to support our customers to really grow and get them moving faster. So we sort of keep pushing them to go faster. So we have a long way to go and maybe ask me five years from now, we'll see. How about next year? We'll come back, we'll ask you again next year. How about that? Yeah, maybe I'll know more next year. Theresa, thank you for the time. Very generous with your time. I know you have a big schedule over the course of this week. So thank you for being here with us once again on theCUBE. Thank you. Many time, CUBE alum, Theresa Carlson from AWS. Back with more here from the AWS Public Sector Summit 2017, Washington DC, right after this.