 Live from Orlando, Florida, it's theCUBE. Covering Microsoft Ignite, brought to you by Cohesity. Good morning, everyone, and welcome back to theCUBE's live coverage of Microsoft Ignite. We are here in the Orange County Convention Center. I'm your host, Rebecca Knight, along with Stu Miniman. Stu, this is Microsoft's big show. 26,000 people from around the globe, all descending on Orlando. This is the big infrastructure show. Thought's impressions now that we're on day two of a three-day show. Yeah, Rebecca, you know, last year I had this feeling that it was a little bit too much talking about like the Windows 10 transition and the latest updates to Office 365. I could certainly wanted to make sure that we really dug in more to what's going on with Azure, what's happening in the developer space, even though they do have a separate show for developers, it's Microsoft Build. They actually have a huge partner show. Microsoft has a lot of shows, so it's what is this show that is decades old, and really it is the combination of Microsoft as a platform today. Satya Nadelle yesterday talked about empowering the world. This morning, Scott Hanselman was in a smaller theater talking about app devs, and he came out and he's like, hey developers, isn't it a little bit early for you this morning? Everybody's laughing. He said, you know, even though we're kicking off at 9 a.m. Eastern, he said, you know, that's really early, especially for anybody coming from the West Coast. He was wearing his Will Code for taco shirt, and we're going to have Scott on later today, so we'll talk about that. But, you know, where does Microsoft sit in this landscape is something we've had. You know, I spent a lot of time looking at, you know, the cloud marketplace. You know, Microsoft has put themselves as the clear number two behind AWS, but trying to figure out because, you know, SaaS is a big piece of what Microsoft does, and they have their software estate and their customer relationships. So how many of those that are, what we used to call window shops, and you had, you know, Windows people are going to start, you know, will they just, will it be .NET, will it be other operating systems, will it come into Azure, you know, where do they play? And the answer is Microsoft's going to play a lot of places, and what was, you know, really kind of put on with a point yesterday is it's not just about the Microsoft solutions, it is about the ecosystem. They really haven't braced, you know, their role, very supportive of open source, and you know, trust is something that I know both you and I have been pointing in on because in the big tech market, Microsoft wants to, you know, stand up and say, you know, we are the most trusted out there, and therefore, you know, turn to us, and we will help you through all of these journeys. So you're bringing up so many great points, and I want to now go through each and every one of them. So, absolutely, we are hearing that this is a kinder, gentler Microsoft. We had Dave Totten on yesterday, and he was, as you just described, just talking about how much Microsoft is embracing and supporting customers who are using a little bit of Microsoft here, a little bit of other companies, I'm not going to name names, but they are seemingly demanding, I just want best to breed, and this is what I'm going to do, and Microsoft is supporting that, championing that, and of course, we're seeing this as a trend in the broader technology industry, however, it feels different because it's Microsoft doing, Microsoft doing this, and they've been so proprietary in the past. Yeah, well, and Rebecca, it's our job on theCUBE actually, I'm going to name names, and actually Microsoft is embracing of this, so the thing I'm most interested in at the show was Azure Arc, and I was trying to figure out is this a management platform, and at the end of the day, really, there's Kubernetes in there, and it's specifically tied to applications, so they're going to start with databases, specifically my understanding SQL is the first piece, and saying it sounds almost like the next incarnation of platform as a service or a pass, and say I can take this, I can put it on-premises in Azure or on AWS, any of those environments, manage all of them the same. Reminds me of what I hear from VMware with Tanzu. VMworld, Europe is going on right now in Barcelona, big announcement is to the relationship with VMware on Azure, if I got it right, it's actually in beta now, so Arc being announced and the next step of where Microsoft and VMware are going together, it is not a coincidence, they are not severing the ties with VMware, VMware of course, partners with all the cloud providers, most notably AWS. Dave Totten yesterday talked about Red Hat, you want Kubernetes, if you want OpenShift, if you're a Red Hat customer and you've decided that the way I'm going to leverage and use and have my applications run are through OpenShift, Microsoft says great, and the best, most secure place to run that environment is on Azure, so that's great, so Microsoft, when you talk about choice, when you talk about flexibility, and you talk about agility, because it is kinder and gentler, but Satya said they have that tech intensity, so all the latest and greatest, the new things that you want, you can get it from Microsoft, but they are also going to meet you where you are, that was Jeremiah Dooley, the Azure advocate said that, there's lots of bridges we need to make, Microsoft has lots of teams, it's not just the DevOps, it's not just letting the old people do their own thing, from your virtualization through your containerization and everything in between, microservices, serverless, and the like, Microsoft has teams, they have partners, sure that you could buy everything in Microsoft, but they know that there are lots of partners and pieces, and between their partners, their ecosystem, their channel, and their go-to-market, they're going to pull this together to help you leverage what you need to move your business forward. So next I want to talk about Scott Hanselman, who was up on the main stage, we're going to have him on the show, and he was, as you said, adorned in Coder Dude attire with a cool T-shirt and snappy, snappy kicks, but his talk was app development for everyone, and this is really Microsoft's big push, democratizing computing, hey, anyone can do this, and Satya Nadella, as we've talked about on the show, 61% of jobs, of technologists jobs, are not in the technology industry, so this is something that Microsoft sees as a trend that's happening in the employment market, so they're saying, hey, we're going to help you out here, but Microsoft is not a hardware company, so how does this really change things for Microsoft in terms of the products and services it offers? So really what we're talking about here, we're talking about developers, right? 61% of jobs openings for developers are outside the tech sector, and the high-level message that Scott had is your tools, your language, your apps, and what we have is, just as we were talking about choice of clouds, choice of languages. Sure, they'd love to say dotnet is wonderful, but you want your Java, your PHP, all of these options, and chances are, not only are you going to use many of them, but even if you're working on a total solution, different groups inside your company might be using them, and therefore you need tools that can span them. The interesting example they use was Chipotle, and there's a difference between when you're ordering and going through the delivery service and some of the backend pieces, and data needs to flow between them, and it can't be, oh wait, I've got silos of my data, I've got silos of all these other environments, so developer tools are all about having the company just work faster and work across environments. I was at Ansible Fest show earlier this year, and Ansible is one of those tools that actually, different roles where you have the product owner, the developer, or the operations person, they all have their way into that tool, and so Microsoft showing some very similar things as to when I build something, it's not, oh wait, we all chose this language, and so many of the tools was, okay, well, I had to standardize on something, but that didn't fit into what the organization needed, so I need to be able to get to what they all had, just like eventually when I'm picking my own taco, I can roll it, bowl it, soft or hard shell, and choose all my toppings in there, so it is taco Tuesday here at Microsoft Ignite, and the developers like their choices of tools, just like they like their tacos. And they like their extra guac. So going back to one of the other points you made in the very opening, and this is the competitive dynamic that we have here, we had David Davis and Scott Lowe on yesterday from Actual Tech Media. Scott was incredibly bullish about Microsoft, and saying it could really overtake AWS, not tomorrow, but within the next decade, of course, the choice for Jedi certainly could accelerate that. What do you make of it? I mean, do you think that's still pie in the sky here? AWS is so far ahead. So, look, first of all, when you look at the growth rates, first of all, just to take the actual number, we know what AWS's revenue is. Last quarter, AWS did $9 billion, and they're still growing at about a 35% clip. When I look at Microsoft, they have their intelligent cloud bucket, which is Azure, Windows Server, SQL Server, and GitHub. And that was $10.8 billion. And you say, oh, okay, that's really big. But last year, Azure did about $12 billion. So AWS is still two to three times larger when you look at infrastructure as a service. But SaaS, hugely important piece of what's going on in the cloud opportunity. AWS really is more of the platform and infrastructure service. They absolutely have some of the Paz pieces. Azure started out as Paz and has this. So you're trying to count these buckets and Azure is still growing at last quarter of 64%. So if you look at the projection, is it possible for Azure to catch up in the next three years? Well, Azure's growth rate is also slowing down. So I don't think it matters that much. There is a number one and a number two and they're both clear, valid choices for customer. And this morning at breakfast, I was talking to a customer and they are very heavily a Microsoft shop, but absolutely they've got some AWS on the side. They're doing Azure. They've got a lot of Azure being here at a Microsoft show. And when I go to AWS, even when I talk to the companies that are all in on AWS, oh, you got 0365, of course we do. Oh, if you're starting to do 0365 are there any other services that you might be using out of Azure? Yeah, that's possible. I know Google is in the mix, Alibaba's in the mix. Oracle, well, we're not going to talk about Oracle Cloud, but we talk about Oracle because they will allow their services to run on Azure specifically. We talked about that a lot yesterday, especially how that ties into Jedi. So look, I think it is great when we have a healthy competitive marketplace. Today, really it is a two horse race. It is AWS and Azure are the main choices for customers. Everyone else is really a niche player. Even companies like IBM, there's good solutions that they have, but they play in a multi-cloud world. Google has some great data services and absolutely a important player when you talk about multi-cloud for all they've done with Kubernetes and Istio. I'm going to be at KubeCon in a couple of weeks and Google is front and center there, but if you talk about the general marketplace, Microsoft has a lot of customers. They have a lot of applications and therefore can they continue to mature that market and grow their environment? Absolutely. AWS has so many customers. They have, the marketplace is stronger. It's an area that I want to dig in a little bit more. This show is the Azure marketplace. How much we talk about the ecosystem, but can I just procure through the cloud and make it simpler? A big thing we've talked about is cloud in the early days was supposed to be cheap and simple, and it is neither of those things, so how do we make it easier so that we can go from the 20% of applications in the public cloud up to 50% or more? Because it is not about all, everything goes to the public cloud, but making customers put the applications and their data in the right place at the right time with the right services. And of course, and then we haven't even talked about edge computing, which Microsoft has a big push on, especially with their partners. We talked to HP a little bit about that yesterday, but really the surface area that this show and Microsoft covers is immense and global. It is indeed, and we are going, this is our second day of three days of coverage, and we're going to be getting into all of those things. We've got a lot of great guests. We have a Cube host, Keith Townsend, Dave Cahill, a former Wikibon guy, a lot of other fantastic people, so I'm excited to get in with, get it in, get it on with you today. Thanks Rebecca, great stuff. I'm Rebecca Knight for Stu Miniman. Stay tuned for more of the Cube's live coverage of Microsoft Ignite.