 Live from San Francisco, it's theCUBE. Covering AWS Summit 2017, brought to you by Amazon Web Services. Hi, welcome to theCUBE. We are live in San Francisco at the Amazon Web Services Summit 2017 AWS Summit. I'm Lisa Martin with my co-host, Jeff Frick. We've got George Gilbert here as well. Pat Taucia, we all just came from the keynote where there were some fantastic announcements. A lot of passion. Dr. Werner Vogels, the CTO and VP at AWS did a fantastic keynote. And some of the themes that I heard guys were really customers, customers, customers. We know how obsessed AWS is with customers. A lot of great announcements, all really substantiated by phenomenal customers from enterprise startups, public sector. We've obviously seen how quickly they've been innovating. They've done a fantastic job turning this first mover status into sustained market leadership. What are some of the things, Jeff, that really kind of caught your eye in the CTO's keynote this morning? Lisa, the thing that I was actually taken back to Tuesday night with James Hamilton at AWS re-invent, which if you are not going to re-invent, you should register just for that. And really the idea is that scale just trumps everything. And because Amazon has so many customers in so many areas, they can apply such scale to all their infrastructure across such a broad array of services. I mean, all the slides that Werner kept popping up had so many little squares because they have so many services. So if you need fast IO, you need fast compute. You want facial recognition. You want machine learning. They have a set of services for you. So a lot of people talk about the application-centric view of the world. But Amazon is actually delivering that to people and they had NextdoorUp as kind of their showcase customer where they focus on the application because Amazon does the rest. And now I thought it was interesting now they're moving into the development sphere. So now you can do your native development in AWS. Again, use that set of services that most apply to the applications you're building and focus on your application and your customer. I mean, how do you compete with the scale and who wants to compete in infrastructure scale if you're a company that's building a web-centric or native application? The other thought I think was interesting at the beginning, you know, he had his NASCAR slides, his logo slides, went through the startups, great. Went through the enterprises, great. Went through public sector, great. Went through ISVs, great. Went through system integrators, great. I mean, the ecosystem is phenomenal. So again, James Hamilton, I just love his talks, but you know, the amount of resources he can apply to his business problems compared to any individual company, it's just, you can't even compare. What do you think, George? I look at the capabilities the top three vendors are providing, you know, Amazon, Azure and Google. And they each bring some different strengths to bear. Google is still building out for commercial access to services that they built internally for their own use. So you have what's a spectacular relational database that's globally distributed called Spanner, but it's not actually something that commercial customers are used to. It's, that was built really for Google internal gurus. Now it's in many ways better than anything that commercial developers have access to, but it's a bit of a migration hurdle in terms of learning. So now Amazon took their internal, they took their internal infrastructure, but they built it somewhat differently. It wasn't meant to sort of stretch the capabilities of their internal developers and external developers, but they've been getting richer over time. Let's just use an example of a product that got significantly enhanced today, Redshift with, they called it Spectrum. Redshift used to be a traditional MPP data warehouse, and its data was tied into the same servers or nodes as the compute analytic functions. And so it was not that elastic. It was almost like an on-prem product ported to the cloud, but they've been improving it. And today there was a huge step forward where they put the storage on S3, which is completely separate from the SQL compute. And so now they go from what was essentially data warehouse that could max out a two bed of petabytes to something that can go to the exabyte range. And because the data's on a cheap S3 storage, you can spend the compute down and then you're just paying essentially for archive. So that's something that now looks more like Snowflake, which was the best in class cloud data warehouse up until this point. Now there, I'm sure many other differences, but Amazon is that iteration to taking more and more advantage of taking what were conventional products and turning them into cloud ready services. You mentioned the reinvent show last November, 32,000 attendees sold out. And then 50,000 watching the live stream of the keynote. Andy Jassy was on theCUBE talking with John. And one of the things that I found interesting about that and also some recent press that Andy has done is talking about how, which they're normally very customer focused and the theme today was customer obsession, which I think we saw with all those logos up there. But they don't really talk about competition. One of the things I found interesting was that Andy has talked recently about them being six to seven years ahead of their competition. We see them continue to innovate, add capabilities, add technology integrations. Jeff, you mentioned the ecosystem partners growing. We've been a number of them on the show today. They're so far ahead of competitors and kind of going off what you said about Google, George, Amazon is now starting to productize some of the technologies like Amazon Connect that was announced last month, the Virtual Call Center that they used in the house, but just something we haven't seen from a Google yet. That's a great point. And that was actually one of the differences that I didn't get to when I'm sort of talking database, but both companies, all Amazon, Azure, Google, IBM all have really advanced machine learning, essentially engines and algorithms. But what makes machine learning really useful is the data is when you combine those with the data that trains those algorithms. That's what makes essentially application ready services. Otherwise it's just tooling. And Google can leverage its data from search, from voice search, from video and image recognition with YouTube. So it has a bunch of machine learning services that are good for a conversational user interface and a visual user interface. But what Amazon is going, Amazon is leveraging the Alexa and Echo product to train their natural language understanding and speak to text to speech. So that was added to today. But the thing that they're doing that's really interesting that Google and Microsoft yet is they're taking the machine learning capabilities that they use for fashion merchandising, price optimization, fulfillment. And they're going to be taking those and putting them out on AWS for developers to use just the way they took the compute and basic software middleware and put them out for other companies to use. So in other words, they're going to take some of their core, most core mission critical, machine learning capabilities and open them up for others. But the key thing is they're trained on Amazon data so that they're immediately useful by corporate developers not data scientists. And that's something in those areas where Amazon's unique. Every cloud vendor will have their areas of data where they can make it accessible to corporate developers but Amazon has a unique set. And the other thing we talk often about founder led companies and I think the culture thing is this, it can't be overstated. Recently, Jeff Bezos's day one kind of internal memo is making the rounds again on social media. So it took a minute to reread it. And we talk often on theCUBE, are we in the first inning? Are we in the second inning or the third inning of whatever trend we happen to be covering? And I think his attitude that it's always day one is pretty significant and you can't bet against the guy. So I love to see it and never get a bet against Bezos because he's got a vision, he's got executed. And the team that he's put in place with Andy, it's just a quiet execution. It's just like you said, they don't really look at the competition. That's not who they're competing against. Werner said it today, they're competing against time and their customers are competing against time. And I thought the examples again that from the keynote of Nextdoor about the time compression for all the various processes in their company were giant, which allow again better application development it allows their customers to better serve their customers. And I don't think that can be really overstated. And you don't get that as much in Google where Google Cloud is a different thing and they brought in new leadership. Obviously Satya's done a hell of a job turning Microsoft around from what it was before. But you just see this quiet, confident execution within the AWS team that I think is pretty special. There's one thing, oh sorry Lisa, let me just add on that execution point and the lead that they have over the competition. Internally Andy Jassy tells this team there's no compression algorithm for a lead time of six years. It's not like just because Azure got started a little bit later and they know what things are going to look like sooner because they can see the future before Azure, before Amazon had to wait 10 years to get there. That you still have to go through that learning curve. And in other words, what he's trying to say is their lead is, it's not, they can maintain their lead just by continuing to execute that flywheel effect that Jeff was talking about. Right, and they continue to innovate. One of the things that I know that Jeff, you and John, George have been following AWS since Synthesis 10 years ago and they continue to innovate, they continue to add integrations. One thing that I was particularly interested in and just doing some prep for today's event is what they announced with VMware a few months ago, VMware vSphere based cloud services. Is that a couple of things? Is that a foray to be able to bring VMware legacy customer applications into the cloud? Is that maybe a step towards saying, hey, we're ready to start taking our customers to hybrid cloud. I'm curious to hear from some of our guests today what they think the next steps are. It wasn't talked about in the keynote, but if you talk about competition or rather growth, one of the areas that they've really excelled in obviously with the developer community and the startups, where they started is in Greenfield, right? They have a great rich set of application development tools, ideal for cloud development, ideal for Greenfield. If you look at the legacy application space, you might think Microsoft, IBM, do they have an advantage there? But now what Amazon's doing in hopefully later this year with VMware, is that a batch signal that, hey, we're ready to take these customers and their legacy applications into the cloud as a competitive signal or really as a signal to, hey, customers, we're ready to take you to the hybrid cloud. What are your thoughts on that? I guess that they started with startups, they were the ones who were the most demanding on the infrastructure because they were Greenfield apps. And so there was, they needed to go beyond the constraints of legacy systems. And in fact, Sacha Nadella said of Azure, we need our Netflix, which was the Lighthouse customer for Amazon that was always pushing the envelope of what was possible. What's happening now though, is that there was this journey that I just want to touch on, that there was a pre-brief yesterday about the sort of the typical customer journey where they start with DevTest workloads, then they go to new Greenfield apps, then digital experience and user experience, then analytics and mobile. And what's now happening is that we're getting to the mission critical systems. And that's why we heard a lot on database issues because that's where application databases are the foundation of mission critical apps. Speaking of that, I think we're really excited. We have a great guest lineup today. We've got Splunk CMO on the show. We've got a number of ecosystem partners, Datadog as well. So guys, I think it's going to be a fantastic day, a lot to talk about. Really excited to hear about a lot of the innovation, the evolution that's going on and where these partners are going to be able to take their customers next. So, you're watching theCUBE. Again, we're live at the Amazon Web Services Summit in San Francisco for George Gilbert and Jeff Frick. I'm Lisa Martin. Stick around. We'll be right back.