 from the Sands Convention Center, Las Vegas, Nevada. Extracting the signal from the noise. It's theCUBE, covering AWS re-invent 2015. Now your host, John Furrier and Brian Grazley. Hey, welcome back everyone. You're watching Silicon Angles theCUBE, live here in Las Vegas at AWS Amazon Web Services, re-invent 2015. I'm John Furrier with my co-host this segment, Brian Grazley, contributing analysts at wukibond.com. Our next guest is Rodriguez Flores, managing director at Accenture. Former entrepreneur, he's been a CTO, he worked at Cisco, industry legend. One of the original Clouderates with us, with Brian, myself, Stu, and a handful of others. Back in 2007, 2008, when the Jeb off movement started. Great to see you, thanks for joining us. Glad to be here, finally made it. You know, as a technologist and us guys who have seen the cycles of innovation, I got to ask you, are you pinching yourself right now? Are we in this moment of like, oh my God, this is now going to the whole nother level? Are we seeing AWS 2.0? Are we seeing the big whales running scared? I mean, a lot of interesting things are happening in the past 10 years. Yeah, so we're seeing the enterprise go whole hog on adoption of cloud. I mean, I'm an inquiries migration request. I was interesting reading a tweet from Lydia Leong where she said that most of her inquiries are about migrating existing workloads, not about the new workloads, which is interesting. And that's consistent with what we're seeing. People are saying, I'm shutting down a data center. We want to go to a public cloud first. In fact, Accenture itself, which is a pretty, let's say, established company, an enterprise company, has now a public cloud first policy. You have to justify for something to go on a data center or a private cloud. Let's talk about Accenture. Accenture is a very professional company. I've noticed that they have a very high integrity. All the stuff that they've been involved in is bringing above board. They're very tight on them. They don't over amplify there. They don't hype up their stuff. But they've been a trusted partner for the enterprise. But that kind of mindset favors the slow. Okay, but the customers want to go faster. How does Accenture compete in a world where speed is valued? What are you guys doing differently? What's the new mantra? You guys have data scientists on staff? You guys have DevOps dudes? Give us the update. Great, so we cover the entire spectrum of cloud. We have 1,000 data scientists on staff. 1,000 data scientists staff. So why do people come to us? Scale and expertise, right? So it's fine. You have small companies that have great expertise. But for a large company, when they need to do things big and really scale up, you need to be able to say, yeah, I'm going to put a couple hundred people who have data scientists expertise. Or what we have is hundreds of people certified with Amazon. We've trained 1,500 people on AWS. So because there's huge demand for cloud skills, huge demand for specifically AWS skills. And people want to, you know, by people, clients want to know, do you have the people on staff? Can you put people who know RDS, SQS? Can they do IoT? We have a significant IoT practice. In fact, there's a whole IoT pavilion here that's AWS, Intel, and extension. So we covered the entire spectrum. On DevOps, we have great DevOps practice. And we partner with a bunch of the leaders, you know, some companies like Docker, companies like Pivotal, right? So we are going pretty fast for an established enterprise. We're probably going faster than almost all our existing competitors that either offer advisory, but then don't actually do the work, right? Or other competitors that, you know, have data centers or their own clouds. One of the things that you might not know is Accenture is an asset-like company. We don't own data centers. Yeah, let's talk about that. I mean, we've all seen lots of companies who go, I'm a large company. I'm involved with a lot of enterprises. I'm going to be a service provider. I'm going to build my own data centers. I'm going to build my own cloud. What's the approach you guys have taken with Accenture Cloud Platform? It's building on top of what else is out there. That's right, so Accenture Cloud Platform is not a data center somewhere that we call cloud. It's the usage of Amazon and Azure and other cloud providers where we provide capacity to our clients and then management. So things like, we get asked for like, are we using the right firewall rules? You know, are we filing the right expert compliance papers? Are we doing backups? So, you know, look, a lot of early cloud projects are what we call hipster-defined infrastructure. Right? And hipster-defined infrastructure is that you see them, they're wearing the hoodie and they assemble their own stacks, they open their accounts. It's great. And then they matriculate with this cool project. And that project becomes really important. And at some moment, that project and another project and another project, rise up to where senior management says, well, hold on a second. Are we managing this the right way? Do we have the right controls on budget? Can any developer just put, you know, provision pedophiles? Yeah, that's an ops question. This is exactly what we're seeing. I want you to drill on that because the dev equation saw we're seeing developers very much happy. It's relatively happy. Not a lot of change going on there. The ops side is a huge change. IT operations is under massive reconstruction. Yes. Much more than developers. That's right. Comment on that. What's your take on that? And what's the prescription for this? It's what we actually said the challenge is to kind of create the new cloud operational model, right? If you're traditional, you had your ITIL style workflows where everything requires an approval and there's a change control board meeting on Friday afternoons, is that workload going to wait there, right? I mean, we see that a lot where we go like, you probably want to remove approvals. I go, but how do we stop people from over-consuming? And so that balance between agility and control is the new balance that clients are asking us for help, right? And it shows up in governance and billing, not just in the dev ops part. Rebecca, talk about the conversations you're involved in. What are the top conversations with customers that you're having? I mean, you have a purview now. You're at a censure. Again, high integrity company, great reputation, trusted advisor to many large companies. Are they all going to Amazon? Are they like, look at private cloud? I mean, you've got a broad view of the landscape now. Share with us your perspective on this. So we're seeing a great migration to both Amazon and Azure, consistent with market share numbers. We are seeing kind of a generation, second generation private cloud being built. The first one was virtualization with a little self-service. But now what they're asking for is, I want to integrate that private cloud with my public cloud. I want one common operating model, one common control framework, and who's going to help me with that, right? And that is the challenge. Most interesting, I was with a bank last year here, where, you know, a bank is very conservative, right? We said, look, we've decided we're going public cloud and we're concerned about security. But we're not concerned about security as a way of waving the big bloody red shirt security down the hall and say, security, security. No, we want to tell us what we need to do because we know we want to be on cloud. That's a sea change, right? That's a sea change in the enterprise. So you could say the migration has started, right? It's already underway. It's going to take a while because, you know, you have to do, it's workload per workload cloud, you know, process per process, person per person. So, for Rodrigo and I have been talking some offline and talking about some of the experiences he's had. One of the things, you know, Amazon's going to talk about, you know, where their data centers are. They're growing their data center footprint, which is great. People go, okay, I can deploy the cloud anywhere. We've been talking about what does that really mean? What does that mean to deploy in China? What does that mean to deploy in Brazil? What does that mean? You guys have not only sort of global presence, but you've got global insight. You understand tax rules. You understand, you know, intellectual property. Talk about what that sort of, you know, Accenture Business Insight means now when you apply that to the cloud. Sure. So what's great about the global cloud is you can deploy workloads wherever you need, right? But you'll get a letter from expert compliance saying, we noticed you deploy some chef's scripts in China. Did you file your expert compliance papers? Intellectual property in China. Intellectual property in China, right? Even though it's under control. Does that exist? Absolutely exists, right? And you have to go through the great firewall of China. And so, and then all of a sudden you're going to mean- Well, I'm kidding by the way, but I'm not kidding. People don't know what that means. So for every VM that you spin up, you have to file expert control paper. And in Brazil, by the way, it's 35% tax if you deploy from the U.S. and charge from the U.S. to Brazil. So those are examples where people go in with great promise that, you know, very cool stuff or doing the DevOps is all scale out. And then somebody has to come in and say, okay, now we got to clean all this up and make it- Or you get blindsided by some sort of tax or liability, I mean, huge black hole there. That's right, you know, the day the feds show up in your place, you know, and say, we're arresting you because, you know, you're taking secret- So what do you guys do with a customer? How do you move a customer into a global environment under a cloud consumption model that's global? Couple of ways. We actually have expert compliance systems, right, that we reported from our cloud. We have subsidiaries in Brazil so that we don't have to contract from the U.S. So our global footprint allows for a large enterprise, a global enterprise to contract with us across the globe, right? So we are compliant with every place, right? So things when you're selling to the European governments or healthcare there, they want to know that the people doing the backups are European, right? They want to know their data is in Europe, right? So we are able to check all those boxes for them. And that makes it easy for them to go to cloud. Now, as you guys are building the Accenture Cloud Platform, I mean, everybody loves the AWS platform, swipe or credit card, click, click, click. I'm doing things. Have you guys reached that point? I mean, you've got a ton of experience in terms of how to, we used to talk about this, how to productize services, how to productize IT services, how to productize and make them, have you made it as simple as, you know, being a front-end platform for these underlying platforms? Is there still friction? Is it getting simplified? It's, we made it better. So at Accenture, you can go to our internal portal, fill out a little form, you put your accounting code and we open your Amazon account, you don't have to use your credit card. That means that, you know, if a person leaves the company or they forget to pay the credit card or anything like that, your client's system won't shut down, right? So we make it as easy to use AWS and other cloud resources as though you had a credit card. And so that's, you know, that's a meaningful piece of work, right, to make the adoption as easy as a credit card inside an enterprise. So I got to ask you the industry question, you're a former entrepreneur, now you're Accenture. Take your Accenture hat off for a minute and put your industry hat on. Is DevOps now becoming obsolete now that we're seeing internet of things in the horizon? Because that's just a development environment. The ops are now devices. You can see programmatic, firmware, device drivers. Those days are going to be over. Is that still DevOps or is it device ops or dev devices? Or, I mean, we're seeing a whole new class of developers, instrumented machines, fully instrumented physical plans, workflows affected by this. Huge seed change for business. Right, so we're going to see a new kind of ops needed for those things, right? So you're not now dealing with the device because the device is smart, but you're still going to have things like, what do we do about change processes to the management layer? What are we going to do about privacy and compliance? What are we going to do about the fact that we may have contracted with somebody to charge them per heartbeat or per insight? And so all of a sudden you go, these new business models are going to require a management platform and an operations platform that's not dealing with the device anymore, but it's dealing with the whole thing, right? Can you guys hire enough people? I mean, this is the opportunity we're talking about. I mean, what you basically laid out is everyone's opportunity and challenge is so much growth, so much new things. It's talent crunch is a big deal right now. That's right. So we train a lot of people. I was just telling Brian that sometimes I feel that Accenture is the worst, largest post-graduate university. And the number of academies for IOT, we have an academy for pass, we have an academy for cloud, because what our clients want to know is that do your people know, right? And they want it at scale. They don't want, do you have three smart guys and a dog? They want to know, even if they're really three smart guys and one really smart dog, they want to know can you have 1,000 people? It's a constant learning environment. It's a constant learning environment. Well, I mean, go back to the old school, go back 30 years ago, you went to a couple of training classes a year, you got certified, you did your job now. It's like, we were just at big data NYC and had duped world. And the stuff Merve from Gardner was saying, Merve Adrian is saying, the stuff that they were talking about last year, there's now a new skill you have to learn. So you learned it last year and now it's over. You got to learn this new skill. Major emphasis on versatility. Major emphasis on versatility. And that's what we're a people, you know, company. We're asset-like. We don't own the buildings, we rent them, we don't have data centers. It's all people, right? I don't people say those things, but really here it's all people and knowledge, right? So I want to get you guys to take this. So if we believe that's going to be a problem, software could solve it. Brian, what do you think about this? I mean, you're studying the numbers, your radio's got a perspective, I want to get, is soft, does software solve the problem? Automation, orchestration. Software's the great enabler. Software, if the beauty of it is I can employ it as a resource anywhere, I can get it at low cost or no cost is a starting point. So I can go from, you know, idea and all the way to implementation. But it brings its own set of problems. It brings the problem of, do I have enough people? Can I train those people? How do I operate when I don't have these distinct things anymore? It's, you know, we talk all the time, what inning are we in for this game? We're in the first inning of this sort of software is eating the world. It's a fantastic opportunity. I mean, it's huge. It's a long inning. It's going to be a long. The top of the first, they're going through the order many times. It's actually like a baseball. It just takes a long time. Real quick, we're going to kind of wrap this up. What's the blueprint for, you know, one of your customers goes, look, you know, I've got a lot of process, but I want to do things fast. What's the blueprint to go? Here's how you're going to drive something that becomes visible in your company that then builds that snowball that they want to keep doing things this new, faster, more innovative way. It depends on the specific business problem that they have, right? So we work with clients, for example, that are moving into brand new business models online. And so they're a devils model. Using Docker and microservices and all that goodness makes a lot of sense. It's a green field. But we also have a huge amount of SAP and Oracle that we do. We also are the largest Salesforce integrator and that's all cloud. I don't know if you guys knew that, but Salesforce is a huge business for Accenture. And we do a lot, a lot of that business integration happens on Heroku. So it's passed from the get go. So we're going fast as fast as our clients want. And they want pretty fast. And what are you guys at Accenture talking about here at AWS? What's the big news? What's the big focus? The main news today is we just are releasing our new Accenture cloud platform. We call it the Vegas release because you don't want to gamble with your cloud platforms. That's a lame bad joke. And so it's also we're talking about Accenture and Insight platform, which is our asset model service for big data. So many clients want a big data project, but they don't want to spend a lot of time building the stack and reference architecture. So we come to them and say, pick from this stuff. Click, click, click. There you go. You're ready to go with your Insight platform, right? And then IoT. Yeah, Fred Rigio Flores, the managing director for Accenture's cloud platform here inside theCUBE, we're live in Las Vegas for Amazon re-invent. And tomorrow you're going to hear Andy Jassy's keynote from nine to 1030. We are going to be starting our live coverage at 1030. We will not be broadcasting the keynotes. Amazon will refuse to let us re-stream their keynotes. So go to their web stream. We will not have it available. Programming note, theCUBE will not be broadcasting the Amazon stream tomorrow. We'll be live with CUBE coverage at 1030. We'll run replays all night, but go to the Amazon website for the live stream. Andy Jassy keynote, nine to 1030. We're calling it a wrap. Day one is over in the books. This is theCUBE. We'll see you tomorrow. Thanks for watching.