 Live from Las Vegas, it's theCUBE, covering AWS re-invent 2017, presented by AWS, Intel, and our ecosystem of partners. Welcome back everyone, live here in Las Vegas, it's AWS re-invent, this is theCUBE's exclusive coverage of re-invent 2017, our fifth year covering Amazon, watching the explosive growth. I'm John Furrier, the co-founder of SiliconANGLE Media, with Justin Warren, my co-host here for this segment. Our next guest is Regine, the executive muscular and vice president of the data center group, and also general manager of the cloud service provider, part of Intel. Welcome to theCUBE. Thank you very much, it's nice to be here again. So, Intel inside the cloud has big growth for you. What's the numbers look like? Your earnings look pretty good. What's the business update? You know, it is growing, and it's growing in so many different angles, it's coming from multiple fronts. Part of it is just these killer workloads that are driving the need for change, artificial intelligence, immersive media, network transformation to handle all the data. It is crossing this real spur in growth from both the very largest of cloud service providers across the ecosystem. And one of the things when I look at the growth, I try to say, now where is it really coming from? Yes, Amazon is just insanely growing fast, and the big guys are doing well, they're a global expansion. But also, the next wave of cloud service providers and regions in different countries are doing really well too, they're actually growing faster. So the whole ecosystem is growing with demand. Yeah, it's certainly not slowing down. I can't see any way in which that it would slow down at all if anything is just going to get faster. I think so. And when I track trends like cap expending and analyst predictions on the future, consumer demand, everything indicates we're going to see another strong five to 10 years. Yeah. So how do the cloud service providers shake out because you look at this creativity of software renaissance, the interactivity, all the amazing use cases from Thorn funding, Missing Exploiting Children, to high-end HPC scientists, genome sequencing stuff, massive use cases. So this going to be a tsunami of software developers changing. How does that shape the cloud providers? Is it segment them into tiers? How are you guys looking at that business? Well, I think it breeds a lot of new opportunities. So yes, you see more and more new services and capabilities to enable developers to more easily develop code to more quickly to get better utilization out of their code. But I also think just that concept of unlocking performance and ease means new insights, new services, new capabilities, things that we just couldn't, a developer or we could not have done before. So it's that just like electricity, when you make it cheaper and easier to consume for that we use more of it, I think cloud computing is the same way. So we're seeing kind of a natural TAM expansion, market expansion around these things you just couldn't do without the cloud. And new workloads too. And new workloads. And all of those workloads, I mean Intel is basically completely repositioned itself from just being a chip company. It's like you're a data company now. So what are some of the things that Intel's doing to help people understand how they can make use of these new software techniques and these new tools and the capabilities of the Intel chips that underpin it all. So what are some of the things that Intel's doing there? So obviously it starts at the bottom with the best silicon, not just compute, but compute, network and storage and accelerators for all different workloads. We move up to the platforms. We do a lot of hardware engineering with the ecosystem, with our top CSPs, actually many top CSPs. We do direct engineering work to get better systems and architecture. We have a host of libraries we're creating that ease of use and unlocking performance out of it, reference architectures, co-partners and solutions. So for us, when we talk about being a data company, we can't do it from just even being a chip. We have to be a solutions partner with cloud service providers, enterprise, IoT edge solutions, we try to be there. You guys always enabled some very cool demos in the day. Even back on the PC, you always had interactivity. You pioneered multimedia. You always had that eye on the applications. Okay, on stage today, all this greatness is out there, NFL demos, all this cool stuff. That's really powering your business. So talk about your relationship with Amazon Web Services. What's it like? How do you guys engage with them? What's the relationship? Cause you guys are power engine for AWS. Well, we try to be. We want to be the best performance into their data center. We've had a many, many, many year deep relationship with Amazon. It started from simple co-development and engineering and is extended much more pervasively across their environment and upward sometimes into the services. We want to, one, make sure that what we're delivering today has been already optimized specifically for their unique environment. And that means we have to start a year or two before, if not earlier, to really understand where they're going and get their feedback so that when we either optimize a product or technology across compute network or storage or create something potentially custom for them, right? It takes a number of years of work. So our partnership has a lot of in-depth engineering. It has a lot of future and near-term enabling. And then we hope to see an expansion. What we really want to do is use our technology to differentiate Amazon. We want their services better because of the technologies or capabilities we put in. So wherever they want to align in terms of strategic investment and growth markets, we want to make sure the silicon can enable it. Intel always marched to the cadence of Moore's law. And you guys have always been a rapid machine execution. Amazon looks good. I mean, they're executing. They're fast. I mean, what's it like? Share some story. I mean, they're years ahead. What's it like working with Amazon? Well, I think, I mean, they are fast. It's amazing how quickly they can move and innovate, how rapidly those innovations roll out to the market. I will be honest, there are times where we miss windows because we are slow. And they just look at us like, well, we told you this four weeks ago. Here it is, right? So, what we've been doing for- Can't design a chip in four weeks. We don't have Kubernetes, no containers for chips. I mean, they're just, they have it down. So what we're trying to do is part of this transition from being a client company to a cloud and data center company and IoT company means everything we have to do is faster. So we have to design our chips more quickly. We have to put in more modularity for faster derivatives. And we have to move at cloud speed, not classic Intel speed. So what are some of the lessons that other companies can take from Intel's? I mean, it's a hardware company. It was originally a hardware company and now you've transitioned to being a cloud company and you're being pushed by Amazon to move faster and faster. So what are some of the lessons that you can share with other companies who are trying to start moving at cloud speed? You know, I think, I love Jeff Bezos approach, customer obsessed. If you aren't understanding how the end customers, starting with Amazon's customers, but also then my customer, Amazon, how they're using and consuming technology, we can't really create good technology. I would say a lot of companies create a great thing and then try to go sell it at markets versus starting with the market and creating the specific thing. The other thing we've learned, I mean, Intel is a very data driven company both in our decision making as well as our company growth. This is a, and we talk about it from a developer behind, but it's same, iterate fast, fail quickly and move on. You don't need perfect. This is one of our learnings, right? Don't wait six months for perfect, move fast, get 70, 80% of the way there. I've heard governments say they get 40 to 50 way percent of there and make decisions best because they have to move that quickly for military or other exercises. So what we're trying to do is match that type of speed as well. It's the world of compute now. I mean, I was at Alibaba conference, they had their cloud cause, he's hearing it here, the same message, more compute. They're not saying I need more little chips, they're saying I want more horsepower. And you guys just announced the C5 instance recently, couple weeks with Amazon. What is that going to do? I mean, it's fairly new. What does that mean? Is that going to be an IoT edge opportunity? Is it all workloads? That's going to be like a pretty big deal. What's your take on it? Their C instant line has always been for high performance, growing workloads. We are seeing like for HPC workloads, anywhere from two to four and a half X, the performance moving from C4 to C5, right? This is an instance that can handle the most demanding workloads from high performance compute to artificial intelligence to others. So we have our latest and greatest Intel Xeon scalable process in there, a very high-performance one that we customize specifically for their environment. But then they do all this amazing software work and efficiency work around it to really unlock. I was really glad to see when they talk about those C5 instances launching, 25% on workloads, price performance, up to 50% price performance improvements on some others. So, I mean, once again, when you can take more compute and make it more cost-effective, it's just a lot more things people can do in the industry. So we're very excited about that instance. What's the biggest thing in the past five years that's jumped out at you and the massive change in the industry? Applications, startups, business growth, what amazes you? There's so much I would kind of combine it under what the industry calls digital transformation. You know, when I look at it, one of the points that always sticks in my mind is, CEOs, 70% of them have digital transformation at the heart because the data suggests that by the end of 2018, the top 40% of the top 20, 40% of the top 20 industries are going to be disrupted. So that to me, that amount of disruption happening and the companies trying to disrupt themselves, whether it's healthcare, retail, manufacturing, oil and glass, the use and pervasiveness of where technology and cloud can fit has really kind of astonished me. And I love, once again, I love that they're making what they do today better, but the new things that they're doing, I mean, in healthcare, right? It's just amazing, so. I mean, we used to use the word back in the day when I broke into the business in the 80s, data processing department. I mean, the cloud is one big data processor. I mean. It is. It is a computer power. We call it the brain, right? If cloud is now ubiquitous, right? It is from public cloud to private to edge and everything in between. It's that brain, right? That's enabling the compute. So we have to. There's always been the inside of everything. Congratulations on your success on the cloud growth. General manager of the cloud service provider and vice president of the data center group, Regene Schiller here inside theCUBE with Intel. I'm John Furrier, Justin Warren. Back with more live coverage here in Las Vegas for Amazon Web Services 2017. Re-invent more after this short break.