 Live from Las Vegas, it's theCUBE, covering AWS re-invent 2017 presented by AWS, Intel, and our ecosystem of partners. Okay, welcome back, we're live here in Las Vegas for Amazon Web Services re-invent 2017, our fifth year covering, we missed the first year by one year, 2012, we couldn't make it, we were here for 2013 and going forward. Or was it 2012? I don't know, I'm John Furrier with Lisa Martin. Our next guest is CUBE alumni, number five in all time on CUBE visits, famous venture capitalist partner at Greylock, Jerry Chen, former head of cloud at VMware Industry Legend, great to see you. Thanks for having me. It's quite the intro. Always an important guest. Oh no, it's always important to stop on any conference, like I said, if the CUBE's not there, it's not an event, how's that? Well you're one of our most famous CUBE alumni, soon you're going to get the credit card in the mail with the affinity program and all the benefits the alumni get. Thank you. Oh, I'm almost good. Okay, Jerry, thanks for coming on. I want to just reminisce a little bit. 2013, your first time on the CUBE, it was small. We were on the other side over there. You were kind of mingling around, looking for your first deal at Greylock. And you said I'm looking for the next Amazon. Is there, there was never a next Amazon that just kept growing and growing, what a ride it's been. Share your thoughts looking back now. Thank you, well thanks for having me. It's hard, like Moore's Law says you double every 18 months, right, in compute power. So like the Amazon Cloud Conference is the number of people are tripling every single year we've been here. The number of expos, the number of ecosystem partners has just been like doubling, tripling. The number of services on Amazon's cloud has to be more than doubling every single year, right? So that Moore's Law is taking to the cloud in a different exponential way. And scale certainly is a dynamic. I was commenting on my post leading up to here and my exclusive with Jassy talking to him, trying to look at him and read the tea leaves and it's clear to me, this is not him, my observation. The competitive strategy for Amazon is more services, speed, scale, they're raising the bar on the number of services that could be used, thus increasing their total addressable market as more people use the cloud, more services are available. That's their plan, it's pretty clear, and the speed. Is that a competitive opportunity that blocks out other people? We talked before, you said it's not a winner take all, it's winner take most, Amazon's looking good, but you got Microsoft and Google. So okay, I get that. Don't get Alibaba. Alibaba, they're number four worldwide, number seven in, well, number one in China. But here's the deal, there's specialty clouds, there's new intelligent clouds that stop the Nutella talks about. So it's an interesting dynamic, right? And Google, which almost has very little presence outside of North America, is considered a new guard. A lot of developers love Google. So you got this kind of developer cult going on that's very like a renaissance. And then you got the IT, almost sitting there like not wondering what to do. Or do they? What's your thoughts? I don't know if IT's wondering what they do. So you said a couple of things that's interesting. It's not a winner take all or winner take most market, but Amazon's launching all these new services. And so what it is, is when you have that scale, the cost to serve another customer, the cost to launch an additional service is low, right? The marginal cost for yet another API on Amazon's low. So what Amazon's done so well is there's a long tail of developer features and services that everybody wants and they just could be adding them. So if there's only like a thousand developers that care about the service, the cost for Amazon to launch that is so low, they can do that and have a positive ROI. So if you're going to attack Amazon right now, you can't do the breadth of services. You got to figure out a different vector of attacking. And so you asked about Google. So Google's definitely taking the approach of two things. One, when developer love, where a bunch of features around performance, storage, speed, they're doing really well. And number two, they're really doing a concentrated attack around some of their data and ML services, TensorFlow and whatnot. That's getting a lot of attention. In contrast, you're going to see, I think a lot of announcements tomorrow by Amazon are on ML and data services tomorrow because they're going to try to win the hearts and minds of the next generation of apps which could be around AI and data. And that's not low level parts of the stack. That's around the database layer. I mean, a new kind of middleware is developing. I think you're seeing Amazon really attack the market in three different ways. One, the lowest level platform infrastructure, right? Storage, security, compute, check. You know, we see what they're doing there. Next is what I call the system of intelligence, right? Is how do you build AI or data? How do you build a system of intelligence on top of that data? And that's where the battle is. The third area for Amazon is really these verticals, right? They're fed cloud, go out to healthcare, go back to financial services. So there's kind of a go-to-market angle for these guys. So you'll see, I think Andy and his team announced core infrastructure, system of intelligence tools around AI and data, and then different go-to-marks around healthcare, government, financials, et cetera. It's interesting. You know, the developer attraction is interesting right now. We were debating this on our opening, Lisa, where, you know, IT controls the budgets and the enterprise at least. Certainly government's the same way. And the old developer model was joining my developer program. He has a bunch of goodness. Go build, go in the corner. We're going to take it with a do, make it work, run the IT pipes, lay down some software applications, and we're done. Chip it, QA, done. Now with cloud, the developers are driving the sentiment and now the freedom and the democratization of developers is interesting. So does developers, this new cult I'm calling, it's new renaissance, are they going to drive the buying decision? It used to be the sales guy from Oracle or Old Guard would come in and say, hey, I got a deal for you, I'll discount it by a zillion percent. Well, the developers don't want that. So you got this new force with the scale. So it's interesting to see what we'll see from Amazon. Again, this is, I don't think it going to be this year, but this seems to be the trend that we've kind of talked about winning the developers. Interesting, if you win the developers. The dollars will follow. The dollars will follow or be the new influencer. Correct. The new maker of the deal. Yeah. And they've done that so well. One of the interesting things that we're seeing now is advertising from AWS, which we haven't really seen before. There were digital ads at Fenway Airport yesterday. They have done such a great job building awareness in the developer community. They really haven't had to advertise. You mentioned also Google getting stickier, binding to developers at TensorFlow, Kubernetes. Correct. But the advertising as a market kind of speaks to me that are they trying to now go stronger into the enterprise and up the stack of the C-suite, the corporate boards? To John's question, where is the buying power? Are you seeing a shift towards up the stack or are the developers now becoming stronger influencers in that case? It's never either or. I think it's where we start and where you grow to. So I think Amazon did so well and Google's doing now is you start with the developers. They're going to build the apps. You're going to make the decisions of what technology to use. But you and I both know that's where you start is not how you finish. To get sticky, you need security, operations, IT. So eventually the CIO, the CFO is going to write that seven-figure, eight-figure, nine-figure deal to Amazon or to Google, to Azure because they're going to standardize on this cloud, this technology. If your business is running on Amazon, you're dependent on Amazon, you know the CEO is going to make a decision, not to the developer. So I think you start with the developer because they're going to make the right choices and you have to offer them the right set of tools and technology, the right weapons. But ultimately you build a house but someone's going to pay for it and that's going to be the C-suite. Jerry, you've been involved in one of the best deals, sentimental deals in the history of this new generation Docker containers. Container madness now turns into Kubernetes madness. So you just sort of see at the top of the stack the application and orchestration really tease up multi-cloud. So that's, although not a lot of meat on the bone in my mind, but still certainly customers want choice. So what's your investment thesis these days? As you see, if there's a renaissance of developers, which we believe, and this ecosystem is going to grow, by the way, not just Amazon, you've got Microsoft, you've got Google, you've got Alibaba in China. So now new gateways to, you know, outside of North America. How do you invest in that and market? What's the strategy for Greylock? How are you guys looking at the market? Are there things that are new? Can you share some color around what goes on on the board means all the investors? I would say there's probably two themes I'm thinking about right now to ride this wave around cloud, both around the infrastructure layer and the app layer on top of it, right? So I would say when you receive new platform shift around mainframe and client server, client server, cloud mobile, cloud mobile, where we're at now, the first shift is always take what I'm doing now and move it to cloud, right? And so I think a lot of the tools we're seeing now, database migration, how to transpose my data from one cloud to next cloud. But what you see the second wave is this cloud-nated developers, right? These guys coming out of college, men and women that never racked a server, they're building cloud-nated databases, cloud-nated applications. And what you can do now is you see another generation of applications being built that look nothing like the generation behind, right? So the way you think about data, AI and apps will look very different. There's a new substrate around data applications in the cloud that we're looking at. And certainly I know we got to go, we're going to have it bring you back, but decentralization, you guys, Greylock invested in Coinbase doing very well, Bitcoins at 10,000, crypto is hot, token economics potentially looking good? I think you're going to have- At the board. Yeah, so I think like all things a hype cycle, you have a trauma disillusionment, what do the Garner guys say before you have a new expectations? We will hit like a crypto winter, but then it'll come back in some realization. There's a bunch of great technologies, great companies out there in the crypto space. Coinbase being one of them, we're lucky enough to be investors in, a bunch of other ICOs that are legitimate, but a bunch of stuff that's just noise. There's a lot of junk, and you can see the ICOs are down now. So it looks like it's a little bit cold, the leaves are coming off the tree. And you're seeing three or four years, I think Bitcoin and some of these other assets that do well, some of these other token services that do well, and a bunch will exist. But they paved the way for, I think, a new paradigm. Well, the new paradigm certainly will be Kubecoin, so look out for those for all the Kube alumni. No, I signed up. No, you already get them, you're fifth on the all-time list. Now it's fixed. Jerry Chen is a Kube alumni here inside the Kube, Venture Capital at Greylock, tier one big-time investors in Silicon Valley, great friend of the Kube, thanks for coming on, sharing your commentary. I'm John Furrier, Lisa Mard, we'll be back with more coverage at Reinvent 2017 after this break.