 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. It's theCUBE's live coverage in Las Vegas for AWS re-invent 2019. It's our seventh year covering Amazon re-invent. They've only had the conference for eight years. We've been documenting history. I'm John Furrier with Stu Miniman, Dave Vellante, John Walls, Jeff Frick, they're all in the other set. Sponsored by Intel, I want to thank their support without their generous support to our mission. We wouldn't be able to bring this great content. Our next guest, we'll talk about the IoT Edge. Dirk Didas Kalu. Perfect. Welcome back, VP of IoT. Thank you. I love the Greek names. Yeah, I'm half Greek, half German, so what can you expect? Okay, it's smart, good. So, Dirk, I got to ask you, so IoT's hot. Explain quickly your role at AWS because you're not in IoT, but specifically to find your scope. So, my scope is owning all, or my team's scope, is owning all software, services, and tools that deal with non-IT equipment. So, when you go to AWS and look for IoT, all the service that you'll find, that's the scope of my teams. And this IT group, which has all the IT stuff, industrials like cars, manufacturing, sensors, all of that stuff. Stadiums for the NFL, all that good stuff. So, when you go and see AWS, so go adabasamazon.com, and then you find either EC2 means all of our compute, all of our databases, all of our storage, and there's also all of our ML and AI, and then there's an IoT section, and there you find all of the goodness that we do for IoT. You know, it's exciting. Stu and I are talking about all week here, the whole cloud native. You take the T out of cloud native, it's cloud naive. You got the general commercial business and public sector barely getting their act together transforming. They're doing it now. Trillions of dollars of change coming. Good up business opportunity. But if they're having trouble transforming, you get this whole new world of industrial edge which requires computing, cars, manufacturing. This is a hot area, so a lot of change happening. What is the most important story people should pay attention to in your area that's notable for this collision of all this transformation? I think maybe the most notable story that we currently have is a cooperation that we do with VW, which is Volkswagen, the largest car manufacturer. And we were just lucky that we had their CIO, Martin Hoffman, being part of Werner Fogel's keynote, our CTO, so if you haven't seen that, just go and review the keynote of Werner and then at the larger part, then he was talking about all of that, what he calls industrial 4.0, this digitization fourth revolution and Martin did an awesome job explaining what are we doing together with them to build their industrial cloud? Dirk, one of the things we've been really watching is the extent that Amazon services are starting to push out. I've been super excited really looking at some of the growth of serverless there. Your team did a bunch of announcements ahead of the show, including the one that caught my eye the most was the IoT Greengrass support for Lambda and Docker, maybe start there and walk us through some of the new pieces in your org. Okay, maybe for us to understand, we offer three type of offerings for our customers. One is device software, which might sound strange that a cloud company actually gives you software that it's not running on the cloud. But when you talk about IoT, we need software running on your devices in order to be able to be controlled and communicate with the cloud. And we have an offering in that area which is called IoT Greengrass, which is a software runtime that you can install on edge devices like gateways, for example. And we announced two new additions to our IoT Greengrass, one is Docker support, which was very important because till now, Greengrass were supporting machine learning at the edge and Lambda, which is our serverless offering. But many companies now, more established enterprises, said, you know what, I have legacy applications which I can package, can I deploy them as well? Now you can deploy Docker containers, Lambda functions, and ML at the edge, all with one go with Greengrass at the edge. So that was one of the announcements we did for our device software. Dirk, I want to get your thoughts on an area that we're reporting on and doing a lot of investigation, collecting a lot of data, talking to a lot of people, and that's around the industrial IoT, or IOT, industrial IoT. And one of our big concerns, I want to get your reaction to this in thoughts, is security is of paramount importance because it's not just a DDoS attack or some malware which is causing credit card data or these kinds of theft, you could actually take over machines, people could die, there's some serious if-shoes around security. This is the number one conversation. What is the state-of-the-art security posture in your area around software and the edge? So at AWS, whether it's IoT or any other workloads, we always say we have two proprietary zeros, one is security and one is operations because if any company puts their faith in us, if we are down, their business is down, and if there would be any security issues, of course all the trust would be broken. And we do the exact same approach now with IoT, so we build our services with security in mind. For example, when you connect to AWS IoT Core, every single individual device needs to have certificates to be identified. We require that you can encrypt your data, it doesn't even allow you to connect to the cloud without encryption. We have software, as I said, at the edge with Amazon Free Artists and Greengrass where we support all of the hardware, TM modules that you have security postures there, we have secrets managers, we even have an award-winning cloud, if you like, security tool which is called IoT device management, but at any given point in time, you have audits, whether you configured correctly and does something like detection of something's going wrong. Like when you get your credit card and say, hey, by the way, have you been in this country currently making any purchase? We figure out there's something going wrong with your device. And you feel good that it's built-in from zero? I mean, you got DNS hacks going on. What, I mean, you feel comfortable with that? I mean, we believe whatever we build, you can never be 100% sure and security is always evolving, but we believe that we are at the forefront of being always the latest and greatest technology at the hands of our customers. Dirk, that's really powerful because I saw one of the other announcements was really taking the Alexa voice service integration, but if I understand it rightly, it pulls that core along. So, you know, part of me was like, okay, Alexa enabled everywhere, that's great. I don't need 700 devices in my house that all have that, but the security piece is going to be needed everywhere, so help us tease that out. So maybe you don't understand what we did. You ask about the other launches. We also launched something called AVS integration for IoT. And AVS stands for Alexa voice services. So if you know Alexa, that's our digital assistant that runs, for example, on Echo devices. But if you want to build a device as a third party, which you can directly talk to, meaning it has microphones and speakers, that is called AVS or Alexa built-in devices. And if you wanted to build one today, you needed to put quite some resources onto this device because it needs to understand you. It needs to have a lot of audio processing. That means there's a lot of memory involved and quite some processing. Now I'm using some technical terms. You need something like a Cortex-ACPU, which makes this device expensive. So the bill of material is quite elevated. And we were working with our Alexa team, saying is how can we make this really, really affordable? And we found a trick where we said, let's offload all of this audio processing to the cloud that you in a sense can build very dumb devices. The only thing that these devices don't need to do is have microphones, have a speaker and what we call a wake work detection. They need to wake up when you say Alexa or Echo computer. Everything else gets dreamed to the cloud, processes there and comes back so that you can reduce cost for those devices by at least a factor of half. And we had a great customer on stage as well because if you can make so cheap Alexa and built-in devices, you can put this into a light switch and iDevices, now believe it or not, launched as light switch, which you can now directly talk to and which talks back and plays you music. Rick, talk about your role again. I want to understand, are you on a technical side? You have a development team? What do you do on a daily basis? What's your job? So officially I'm a VP of engineering. So I'm a tech guy. Okay, so. I love the hoodie, by the way, with the jacket. This is tech, that's because I'm on video, okay? No, it looks great. So I'm an engineer by heart and at Amazon we don't have a separation between businesses and product management and engineering. We call the single-threaded leaders that we believe that teams have to own it all. So that means my teams on everything from the conception of their services, the development, the operations, that what we call DevOps and also the business behind. So it means all of the services, whether it's free archers, green grass at the edge, whether it's IoT Core Device Management and Defender or our data service like IoT Analytics or you talked about industrial site-wise, their health all being conceived by my teams. They have all been developed and they are all operated today so that our customers can use them. Does it make sense? What should people, it totally does. Thanks for clarifying, that's awesome. What should people pay attention to? What should we be reporting on in your area? What are some of the key things that people watching this should pay attention to in your IoT area? What are the most important items and products and services that you're doing? I think one of the most important things to understand is, we talked just before the interview about this, that a lot of the technical hurdles are actually solved now because we have the software on devices, we have the connectivity control services and we have all the analytics services to make sense of the data that you can take actions. You don't need to be an expert in machine learning anymore to do machine learning at AWS. You don't have to be an embedded software developer to get connected devices. You don't have to be a data scientist to understand what your data does. The most interesting part, though, is there is a cultural aspect to this because in the past, you had to ideally, most likely in your old company, try and say, oh, I would like to connect something, so do I have a purchase acquisition? Can I go to my finance team? Does IT install this? Today, you don't need that anymore. With AWS IoT, the same thing that happens with the cloud and IT happens with IoT, so understanding that we have very powerful tools for engineers in the company that you can build at any given point in time, I think that's maybe the most important thing. I think the IT, I think that whole process of the time it takes, it's like going to the airport on Thanksgiving, going through TSA and all that bureaucracy. Then the other thing too is that the IoT used to be kind of a closed system, self-formed devices. Now with cloud, you got a lot more range and compatibility. Can you talk about that address, address that issue because there might be still legacy out there and no problem, it's data, it's data, but also data's coming to the cloud, but there's now a new shift happening where it's not just fully monolithic OT devices. If it, so the past of fully monolithic was called machine to machine, closed systems. IoT is the opposite, that's where you say now all the devices and connections can be done in between the devices and the cloud, to its system of systems. And in order to make that happen, for example, when you call your legacy systems, we also announced on Monday in our IoT day additional features for IoT Core that you can migrate legacy systems much easier to the cloud without that you need to update your devices. Yeah, Dirk, one of the things I find most interesting about your space is you span between the consumer and the enterprise piece. So I remember a few years ago, there was like a hackathon on building skills for Alexa and it got lots of people involved. There was a giveaway of lots of the devices there. We used to talk about the consumerization of IT. How is what's happening in the consumer world? How is the enterprise going to take care of, take that and transform business as we see IoT permeating everywhere? So the capabilities that you need, whether you go in an industrial or in consumer or in the medical or pick your favorite other vertical is in essence the same. You need to connect the devices. You need to ensure that they're secure. We talked about security. You need to make sense of the data. Whether you do this in the home with your television set or your light switch or your robot or you do the exact same thing with the most sophisticated robot in the industry is the same thing. The good thing about us handling all of those sites is that the scale that we gain with literally hundreds of millions of devices now managed by our service in the back end of course means we will handle all of that scale also in the industry and the security and postures and complexity that we need to handle in industrial also benefits computer. So our consumer side. So you benefit from both sides. Very cheap and scale on the one industrial benefit. Very complex. How do you solve that? Consumer will benefit. So it's very fruitful synergies if you like. Oh, you guys love to solve problems at Amazon. That's going to eat those. Derek, thank you so much for coming on and sharing the insights and you're working on and what's important. Congratulations on all your success. Thank you so much. The threaded leader here. Final question for you. Eighth year of reinvent. It's bigger every year. Louder, crazier, more parties, more business development, more executive. I mean, just it's crazy. Yeah. Just saying work hard, play hard. What is your favorite thing going on here? What's the coolest thing that you've seen? I think the coolest thing and it might sound a little cheeky is, is the excitement from all of our customers and partners coming here every year. PR tells you to say, I'm talking about products. You're talking about products? I love my products, of course. I'm still so happy about it. I mean, I can talk to a light switch now or you see the karma car and the other quality area that we have here. It's a very different experience that you can build. Stu, don't talk to your light switch when you get home. Your wife will think you're going crazy. I love that. Thank you for coming on. Really appreciate it. Thanks for having me. Okay, cube coverage here. Hold on, we're going to wrap up here. Cube coverage with Dirk. Runs all the IOT for non-IT within AWS. Exciting new area. It's going to change the game on architecture and solutions are being baked out in real time. We're here breaking out the cube in real time. I'm John Furrier, Stu Miniman. Thanks for watching.