 From the Sands Convention Center, Las Vegas, Nevada. Extracting the signal from the noise. It's theCUBE, covering AWS re-event 2015. Now your host, Brian Graceley. Welcome back to theCUBE. I'm Brian Graceley, analyst with Wikibon. We're here at AWS here in Las Vegas. Huge show, 20,000 people. We've been going wall to wall here for three days. And sometimes you feel like you want to save the best for last or one of the hugest things for last. We're here with two really important partners. Made a huge announcement this week. Terry Wise, worldwide partners. Jeff Radick, North American Cloud Lead for Accenture. Gentlemen, huge partnership announcement this week. Give us the basics. What's going on? I mean, we've got AWS, which has got this massive innovation, massive ecosystem. Accenture, new-owned worldwide for global, multinational enterprise customers. How do the two of you get together? What's going on? Yeah, so I'll jump in. But I mean, this is really kind of the next evolution of a relationship that started about eight years ago. So we've been working with Accenture for quite a long time. We've been serving a lot of customers together across the globe for eight years, across a whole number of use cases. Yeah, I just felt like the right time to bring everybody together into a much bigger investment on both sides. And I think, from my point of view, it's because we shared the same passion for serving the customer. And with the demand from the enterprise, the time is right, Accenture's been a great partner. It's time to go big from our perspective. You know, if you look at our customer base and what they're asking for right now, they're asking for the public cloud capabilities, right? So they're pivoting from private to hybrid and ultimately public first. So I think that's where the venture made sense. Right. I mean, we see a lot of partnerships that get announced at events. I mean, this was a very, this is formalizing a lot of things. This is a cloud business group, formalizing 1,000 people getting training, 1,500 people getting training. You know, what does that mean in terms of, you know, what you can go to your customers with? What does that mean in terms of, you know, the investments you're making? Yeah, how do you have to think about that big of a partnership? Yeah, no, I mean, certainly the focus that we're having is making sure we have the architects that can take the capabilities and services that are available and figure out how to apply them to the customer's capabilities, right? So if they have an application portfolio, how do you use the multiples of services that are out there and really kind of get that platform as a service, right? Everybody's kind of moved along from the infrastructure as a service, and now we're looking to go up the stack and figure out how to put their enterprise applications into the cloud. Right, right. We had Rodrigo Flores on from Accenture, runs the Accenture cloud platform. One of the things that really, I don't want to say surprise, we've been really impressed with, a lot of times large companies feel like I've got to own the entire experience. I mean, that's been their nature. You know, we've seen a lot of companies who've tried to build data centers, tried to compete with Amazon to a certain extent, or any of the providers, unfortunately some failures. You guys took a very different approach. You said, let me just focus on the application. Let me focus on value. Let me let AWS do what they do, which is global infrastructure, huge innovation. Talk about the mindset that had to go on and how that's really paying benefits for you guys. Yeah, I mean if you really look at what they've done is kind of take what people are asking for and turn it very quickly, right? So their development and DevOps functionality, which is really what the industry is looking to move to is the infrastructure capabilities and being able to turn those over quickly. And we saw the ability that they had to make that happen and it made sense to kind of go along with it and figure out how to use it for our clients. They certainly want to innovate very quickly and they're starting to pivot from the, I'm going to go in a little bit, I'm going full in. And then you see that in some of the major clients that are here that are talking about how they're utilizing the capability, not only in the application space, but even in the desktop space. Right, in the past Andy or Werner's brought up Airbnb or one of the sort of very cool cutting-edge startups. This year it was GE, it was Capital One. It was big, well-known names, but some of them said, look we've been in business for 150 years. Talk about the mindset, the shift that's going on in the enterprise in particular about being willing to use the public cloud, about being aggressive with the public cloud and really this all-in mindset that's going on. Yeah, sure, so enterprises have been customers of AWS, literally from day one. And I think they started out with DevTest, small applications, small programs. I think the pivot point started to happen maybe 18 months ago when they just started checking the boxes. Hey, we're comfortable with security. We know it's a lot more cost efficient than we can do on our own. We know it's going to scale globally. So then it turned from a cost and efficiency discussion to really innovation and business agility. And now what that means is that people are much more committed to bringing their entire estate or huge parts of the estate into the cloud to start to take advantage of all of this innovation. DevOps is Jeff was mentioning, and it's just become a much, much bigger thing. And now you're seeing the global brands that you just mentioned being much more comfortable about sharing their journey experience. And these are conservative companies. And if they're talking about their journey, obviously they've been doing it for a while. And not only that, we're seeing them here hiring. We're seeing them here actively recruiting. I mean, they've got to find people. You guys have obviously a huge expertise in that. Talk about how you train your people, what the skills are that you're trying to really innovate around to let people do those new applications. Yeah, I mean, I think it starts off with the focus on the strategy. So figuring out where you apply the cloud. Is it public, is it private? We're in that continuum, sharing application fleet. And then it's figuring out the architecture. So taking the capabilities and the services and really figuring out how do they apply. Like talked earlier about platform as a service being a huge point, SAP into the cloud and those types of enterprise applications are certainly huge for our clients right now. So we're kind of focusing on making sure we can build the architects. And that's certainly one of the focus areas that the partnership is focused on is getting people trained up. Like you said earlier, 1,000, 1,500 people trained up, 500 people certified in year one. And those are year over year targets. So we're going to continue to do those in year two, year three, year four. One of the big things that was talked about in the keynote for the announcement was the idea of migrating applications. Some people will start with cloud native but the big push through a lot of the revenue is migrating. How much, I mean, what does that migration process look like? I mean, what can a customer typically expect? Is this a three month process? We're starting to see tools like database migration tools. We're seeing data movements. What can a customer expect when they're looking at migration versus maybe a net new application? So it really depends. Some applications are very straightforward. It's got a lift and shift, Linux to Linux, Windows to Windows. And there's some tools out in the marketplace that actually accelerate that migration. But when you're moving something, it's also a pretty good time to step back and take a look at, as I'm making this migration, should I upgrade the software? Should I modernize the application? Should I, this that and the other thing, which should I add to it as part of the strategy? So when you start to talk about full estate migration, then you get into this whole transformational opportunity. And that's really what this partnership is grounded on. The transformational services that include migration, but application modernization, big data solutions, internet of things, as Jeff mentioned SAP. So it's a lot, the whole migration topic is a big one. And that's why frankly, we turn to a partner like Accenture to really help accelerate making that success for customers. The migration of things is really near dear to my heart. That is one of the key focus areas of my practice is to make sure we can help our clients migrate to the cloud. So it's typically a 45 to 90 day window from I'm going to plan this migration to the execution of it. And really I think this is the power of the partnership is us bringing the process and the people along with it to get the capability migrated into the cloud quicker. Yeah, so 45 to nine days, I can see an idea to execution within a quarter. I can see that affecting the bottom line, top line within one or two quarters. Is that what you're seeing? Yeah, so right now at one of the clients I'm at, we're moving 450 workloads a month into the cloud. Wow. So, and we're looking to scale that to 600 very quickly and 17,000 workloads, it's something that can be done. That's a massive, I mean, that's 20 workloads a day kind of thing. Now, one of the great things about using the cloud is you move from huge CAPEX numbers up front, a lot of budget up front to you know, OPEX, pay as you go, align to business. What does that mean in terms of application development? Are you seeing shifting of what used to be hardware costs for infrastructure, getting shifted over to application development? Is that visible? Yeah, I mean the switch from CAPEX to OPEX is certainly something that clients can utilize to equate their new capabilities within their business. So you're seeing that shift to application development, new capabilities to allow people to go quicker to market and do the capabilities kind of from the infrastructure side of the house to the app dev inside of the house. It's still kind of an IT budget item, but it's a shift. Yeah, you know, yesterday we heard a huge push around data, right, you know, data, database, analytics. Today it was all about IoT. I mean, those aren't business productivity applications. I mean, those are business transformation, those are industry transformation. How much do you see that, is that still kind of looking forward? I mean, it's great capabilities. Are people looking at that today or is the migration stuff still top of mind for them? Oh, no, I mean, migration is happening, you know, as Jeff said, you know, hundreds of applications a month. So that is absolutely happening. It's happening at scale. The big data and the new database offerings, I mean, that is happening at scale as well. I mean, Andy talked about Aurora, our database engine being one of the fastest growing services in the history of AWS. Right. Yeah, and that's against EC2 and Redshift and some other things that have grown fast. So it's happening, it's happening at scale. And, you know, IoT, still an early market around IoT. You know, so lots of winners to be declared in that space. But the customer demand for the efficiencies and innovation they can get from the IoT platforms and space, the opportunity is just massive. So that's a little earlier, but moving very, very quickly. We're seeing, I mean, 20,000 people here. People are really excited. How do you guys measure success? How do you measure success for the partnership? What are we going to look at a year from now and say, this is beating our expectations? Well, you want to go? Sure. You know, so one of our early goals is to get the announcement out to our diamond clients, right, to focus in on the big enterprise and accounts to make sure everybody's aware of what it means, because there's going to be a lot of education on what does this really mean to us. So I think that's one of the big things is to make sure that that happens. You know, certainly we're working together to figure out what the business plans are and what the targets will be. And we'll make that happen together. We're certainly excited to move this thing forward. So, you know, from my point of view, I think success is, you know, a year from now at this event, global brands like we saw, you know, GE, Cap One, John Deere, you know, a number of those global brands up on stage that, you know, this partnership has delivered such enough value that they're up there telling the story for us. Yeah, no guys, exciting stuff. I'm going to wrap it up. Really transformational partnerships, seeing, you know, different parts of the industry, different parts of segments around the world, that's important. I mean, you guys are, you know, AWS is moving from being startup-driven to enterprise-driven, really making those things happen. You listen to your customers. It's an exciting partnership. Guys, thank you very much for being on. With that, we're going to wrap up. Folks, stay tuned. You can always find everything on siliconangle.tv. You can follow at wikibon.com for all of our research around cloud, around what's going on in this industry. And, you know, with that, we're going to wrap up and stay tuned for more here on theCUBE here at AWS 2015.