 From the SiliconANGLE Media Office in Boston, Massachusetts, it's theCUBE. Now, here's your host, Dave Vellante. Everybody, welcome to this CUBE conversation. I'm Dave Vellante, and Stu Miniman is here with me. We're going to break down AWS, kind of give you a mid-year, what's happened so far this year with all the events that we've been covering and what to look forward to. The NYC summit is coming up, Stu. It's been a big year. Obviously, we came off a re-invent. Amazon's got a $30 billion run rate business growing at 40 plus percent per year. Stu, that means they're putting nine billion of incremental revenue every year into the cloud business, the marketplace, that growth. That's roughly as large as the entire Microsoft cloud business, which is astounding. Yeah, Dave, that's the point. Amazon definitely has been making for a couple of years, and you're absolutely right. Microsoft is definitely growing at a faster pace than Amazon, and they're running, what, 75, 80 percent, but off a much smaller number. So the incremental ad that Amazon has been throwing off the last couple of years, every year they're adding more than in Azure every year. So, absolutely, Amazon is the lead horse out there, and while the horses on the track behind them are trying fast to catch up, Amazon, if you talk about infrastructure as a service, AWS is still the lead horse out there. Well, the big question is, will that attenuate? And we were at, remember the Nutanix inaugural Nutanix.next, D. Raj Pandey, who's a very smart guy, somebody we respect a lot, one of the fundamental assumptions they were making is eventually the law of large numbers will catch up to them, and now it very well may, but it hasn't yet. I asked John Lovelock, can a company the size of Amazon, 30 billion dollar company grow at 42 percent a year, is that sustainable? And he said, absolutely, there's nothing to stop them. Now, who knows, who has the crystal ball? What are your thoughts on it? Yeah, so Dave, what we saw is Amazon's not sitting still. They always like to say it's always day one, and if you look at where they're growing, the products that they keep throwing off, the innovation that they keep moving on, and the flywheel that they've had first of customer acquisition with all of the innovations that they're putting out there, and the flywheel that I've been talking about the last couple of years, the flywheel of data, which is something we want to be a little concerned about how much data Amazon actually does have, both Amazon AWS and Amazon with all those intelligent devices that are in our homes and connecting everything together. Some people are a little concerned about that. The government's a little bit concerned about that, but absolutely Amazon is growing everywhere. We've seen Amazon going into sub-segment to the market, going into verticals, and going just really broad and really deep, so absolutely. I don't see anything slowing Amazon down. It is a company that continues to impress. One of the challenges I think those do that Amazon does have, and this came out of the reinforced conference a couple of weeks ago in Boston, which was a conference for security practitioners. A lot of CISOs, chief information security officers. The number one challenge that came out of that when you talk to practitioners was their ability to keep up with the innovations that Amazon is putting forth. So I wonder, we're going to talk to some commercial customers. You'll see them down in the summit. Probe to see if in fact that's part of their challenge, just the pace at which Amazon brings out new features. But we've done, gosh, we've covered eight events, or will have covered eight events this year, eight productions. It started in the UK where we covered a public sector healthcare, and then we did the AWS Summit London. Really all about both public sector in the UK, as well as the summit in the UK, innovations in the UK around cloud, et cetera, cloud adoption, 12,000 people at the AWS London Summit. Now you covered RIMARS, which was not, the cube wasn't there, but you were there. What was that show all about? Yeah, so first of all, it's an Amazon show, not an AWS show, but absolutely showed underneath where AWS fits into the fulfillment centers of Amazon and it was about RIMARS. So Mars a play, of course, on space, but it was machine learning, automation, robotics, and space. So you had the cool Blue Origin stuff, they actually brought in Robert Downey Jr., talked about how he's going to save the planet with robotics and intelligence out there to help clean up pollution in the globe and the like, but it was a phenomenal show, but what I said is actually, it's gonna show a little bit underneath the covers of Amazon, similar to what we've seen from AWS at the re-invent shows over the years, because we all know how many boxes are coming to our place of home every day and how fast that's going, and so this is what's happening underneath the robotics and machine learning. A lot of those are AWS services that are powering that. So it was a fascinating show, Dave, and absolutely showed the relationship between Amazon, the parent company, AWS, all of those cloud services that help feed the bigger business. Now, June theCUBE covered the DC Public Sector Summit. This is Theresa Carlson's gig, she's the host. Actually, Andy Jassy was there this time. He wasn't there last year when you and I were covering it. And of course, that's all about bringing cloud to public sector, not just federal, but all public sector. It includes a nonprofit and education, which we'll talk about in a minute. The big story there is, of course, Jedi. We're talking about tens of billions of dollars going to a contract, Oracle, of course, is fighting it. It's going into the courts. I guess there have been a number of reviews Oracle won't give up, it's Oracle. Amazon clearly is the front runner. Last I read it was down to AWS and Microsoft, with AWS being the lead contender there. We'll see what happens. I think the decision is coming down this month, July of 2019, but it's really, again, about bringing cloud innovations to public sector. Public sector tends to take things a little bit later than the commercial. For instance, last year they announced the VMware on AWS was available. So you'll see those kinds of things come maybe a year later. But it's, again, another big show. There were 12, 13,000 people there at the DC Convention Center. Yeah, and Dave, when you talked about the critique of what's happening in Amazon, as Amazon goes deeper into all of these verticals, how do they help get that information to the user in a way that they need to run their businesses? So my co-host for New York City is Corey Quinn, was listening to his podcast this morning and he said, that's where Amazon's got dozens of blogs, they've got so many announcements, they haven't done a really good job, something we've seen many companies do. How do I get to that business role and put it in verbiage that they understand as opposed to just, hey, we had a thousand new features come out this year and they're awesome and you should use everything. So that's something that the industry as a whole needs to do better at and Amazon, just in the nature of how fast they're moving, is something that they should be able to do a better job of. And John Furrier is also going to be in New York City and one of the things he was stressing at reinforce was the marketplace we had Dave McCann on, the just rocketing, I think it was 100,000 of security subscription, I think it was a million subscriptions in total, so just an amazing momentum in the marketplace, but reinforce was all about security, deep dives on security, chief information security officers. What came out of that show, the big takeaway was, was the head of AWS's security, the chief information security officer, Schmidt, said, this narrative in the industry that the sky is falling doesn't do anybody any good. It's not productive. We should be more positive. The state of the cloud union is good, like the president of the United States said, state of the union is strong. Having said that, Amazon talks about the shared security model, the practitioners that we talked to said, yeah, shared model, Amazon's going to secure the infrastructure, the storage, the compute, the database, we are responsible for our end and it really is on us to make sure that we are secure. So again, back to that point about the pace of innovation that Amazon is putting forth is a challenge for people. AWS Imagine is also going down, I think, this week. What's that show all about? Yeah, so it's in Seattle and it's, you mentioned the public sector one in DC, which is government agencies, nonprofits and education. So Imagine is a subset of that. My understanding is the education and non-profit piece of that from when you and I were in DC last year for the public sector summit. It is impressive how deep Amazon is going into these spaces, the affinity they have and really how happy the customers are to be able to move fast. So when you think about non-profits and think about education, innovation is not the first thing that usually comes to mind because budgets are tight and I don't have enough people and usually you've got whatever's left over. But Imagine is them, how do we move these forward? How do we, we know we need to help transform education. It's so important to train the next generation. So Imagine, there are some great stories that come out of that. Jeff Frick loves getting those stories, helping us tell those stories through the CUBE platform. And so it's the second year we're doing that show. Yeah, so we'll be covering that. And then of course, Reinvent, we'll have two sets again at Reinvent this year. Yeah, they'd be super bowl of our industry as well. Right, for sure. Couple of things going on. So unfortunate incidents in Southern California, big earthquakes, actually multiple earthquakes, right? You had the physical earthquake and then you had Kawhi Leonard going to the Clippers. It's kind of an earthquake. But so I'm interested in sort of poking at this notion of ground stations. So at Reinvent last year, Amazon announced Amazon Ground Station which essentially was ground station as a service. So if I understand it, one of the challenges, okay, you launched these satellites but you still need a ground station to collect the data and then upload it and analyze it. That's what AWS is partnering to put in infrastructure that allows you to essentially rent ground station infrastructure so you don't have to worry about building it and securing it yourself because you think about it, it's got to be a secure location. You got to have fencing, you got to have physical security. You got to get the data in, you got to upload it to wherever you're going to upload it. So Amazon is basically building this service out saying don't worry about the ground station piece. Rent that from us. Swipe your credit card and you'll have ground station as a service and then we'll ingest that data, upload it to the cloud and then apply all of the tooling that we have to allow you to analyze that data. So if you think about the earthquake devastation, if you don't have a ground station there, you can in theory go to AWS and actually spin up a ground station, ingest on the ground, the ground truth as we like to sometimes talk about and actually get satellite imaging and telemetry in that region. This comes into play at things like forest fires and all kinds of natural disasters. Yeah, Dave, even at the Remark show I attended a session where one of Amazon's partners was talking about not only just getting the satellite data down but just as they have the snowball edge today which is for IoT or some remote sites but some of these satellites are gonna have the compute and the storage in the satellites themselves. So if you think about, I'm gonna have these geosynchronous satellites and I'm gonna have all this connectivity and if I can get a gigabit of ethernet traffic going to the satellites and I can do the processing at the edge which is now up in space, I can process that and that edge that we talked about gets a whole other dimension off the terra firma to be able to do those kind of analysis as you said, earthquakes, all of the climate discussion that's going on we should be able to have tap into even more resources and we'll have to rename cloud if it even goes beyond the earth I think. And then Outpost is the other story that we've been tracking, we've been tracking a lot of stories but Outpost is starting to ship in beta form we've seen instances of it out there we've seen it, we just did a little quick write up I mean Dave just a ripple went through the industry when they showed, hey, here's a rack and they're like, this is the exact same rack that we have in the Amazon data centers and why it's a little surprising because we're not allowed to see inside the Amazon data center so it's like, oh, okay, this is what they're compute it's, oh wait, it's a 24 inch rack as opposed to a 19 inch rack but that line between the public cloud and my on-premises environment absolutely is blurring so everybody who wants to see where Amazon's going they have the big partnership with VMware VMware is already shipping the solution that is the same software for that VMware on AWS in my data center so I can have the Dell hardware with the VMware code or I can have the Amazon hardware with the VMware code coming later this year without Post so that line between public and private is absolutely blurring and where do my applications live that future of how fast does AWS continue to grow absolutely there are applications and data and things that will stay in my own data center and under my control but that line is definitely blurring and there's going to be some re-architectures it's definitely still going to take a couple of years to sort some of these things out but we are at some of those inflection points where we'll see some of the massive change Yeah, so I wrote a post that's up on Wikibon kind of analyzing that video and there's some interesting things that are unique there's certainly a lot of goodness in there some of the things they talk about aren't completely unique to AWS but things like Nitro and their special virtualization engine and their special chip and you can want to get a look at that take a look at that video and then Stu, New York City Summit this week we mentioned some of the innovations that we've seen up to date this year a lot of talk I'm sure about the marketplace Yeah, I'm wondering if there will be any ripples Dave because the one half of HQ2 was supposed to be in New York City and now it's not doesn't mean they don't have a strong presence in New York City like London I believe it's somewhere around 12,000 to 15,000 people when I went to New York City two years ago it was quite impressive it is a free show which means if you're a customer you get in for free if you're a partner of course you're still paying for everything that goes there but the regional summits are quite impressive and a great way to get in touch with Amazon and all that they're doing if you don't want to go to the Super Bowl itself which is 50,000 plus now in Las Vegas towards the end of the year Yeah, these are like many re-invents and they're actually quite good a lot of practitioner focus and you're gonna see that in New York City Dave, what I always love about every Amazon show I go to there are customers that are interested in learning new things how can I do better with what I'm doing but also how can I change what I'm doing how can I move forward so even if it's not adopting the latest and greatest from AWS the entire ecosystem is going there to meet with those customers and talk about digital transformation modern workforce all of these hot trends definitely play out Ground Zero is the AWS marketplace Yeah, and this is by design as I said before the pace of innovation is a challenge for people, it's an adoption blocker and so Amazon wants to educate and share the knowledge so that they can get more adoption Okay, Stu, thanks very much good luck this week check out siliconangle.com for all the news thecube.net is where the videos will live and watch Stu and John Furrier and Corey Quinn live and check out wikibon.com for all the research Thanks for watching everybody Dave Vellante and Stu Veneven we'll see you next time