 Live from San Jose, in the heart of Silicon Valley. It's theCUBE, covering AWS Summit 2016. Hey, welcome back everybody. Jeff Frick here with theCUBE. We're in Santa Clara Commissions Center at AWS Summit, Santa Clara 2016. The AWS summits are all around the country. They've been in Chicago, Washington DC, New York, and all over the globe. It's really kind of a smaller regional event that they take the AWS show out. And really a big part of that is the ecosystem to meet people in all these different areas. Before the granddaddy of them all, AWS re-invent, which is later in the fall, 20-some-odd thousand, get registered now, they will sell out, I promise. So we're excited for our next segment. Join me by Lisa Martin. Good to see you again, Lisa. Good to see you Jeff. By Fangu, technical marketing engineer from Cisco, welcome. Thank you, thank you for having me here. So people might think, hmm, Cisco, what is Cisco doing at an Amazon AWS show? Because we think of Cisco as obviously infrastructure networking. We think of AWS as kind of infrastructure that you can buy with a swipe of the credit card. What are the two companies doing together? Give us a little bit of the history. Yeah, of course. Yeah, today we are having this booth on the AWS summit and a lot of people passing by asking the same question. So what are we doing with AWS? Of course, so before we get into that, I would just like to give a little background about our business unit. Absolutely. So we are enterprise routing business unit and our team are having a product called Cloud Service Router, CSR1000WV, which has been in Amazon AWS for quite a while. So it is a virtualized router, if you can think of that. And it have all the capabilities of routing VPN and a zone-based firewall, et cetera. So right now, we have seen a lot of requests from our customer, not just from Cisco perspective, but also from AWS. They would like to have some solution that can overcome the VPC peering limitation, which they can't do the transit VPC. So we, our team, from our backend engineering team from Cisco and AWS Architects Engineering, we have a true collaboration here. And we work on this transit VPC solution. And now it is available. Just to understand a little bit deeper, so does this solution sit inside my, as a customer, my kind of Amazon instance and operates like a virtual router inside my AWS Cloud? Or is it kind of a connection back to my physical infrastructure? How do the pieces kind of fit together? Sure, of course. So people come here, of course, are very familiar with the VPC solution. So it's a virtual private cloud, virtual private cloud. And the customers can deploy it as a virtual network. They can deploy as many as they want. But the second day, what they want is to have connection between them, right? So if it is just three VPCs, it's probably easy. And I will give you an example. Like we have VPC A and B and C. And you want to talk between A and B. We do a VPC peering or through the VGW. And we want to talk between B and C. We can do the same thing, do a VPC peering. But tomorrow I want to connect between the A and C. But I want to go through the B, which is typical transit routing requirements. And AWS right now have this limitation. They can't do it. It's restricted. So from our side, we can, from the CSR, which is a big routing, have this big routing capability, we can actually do this. We deploy the CSR in B. And then we can transit from A to C through the B. This is a big deal, especially when the customer have tons of VPCs to connect to. If you have hundreds and if you want to do a full match of the VPC peering, it's, of course, time-consuming. And management perspective is very, very tedious. So with the transit VPC, first, it's simple to manage. It's a one-click. And second, you save money and time to deploy this whole thing. And third, it's very secure. We have the IPsec inscription for the tunnels. So is the biggest business driver of this for a company speed, cost, both? Yeah, it's both. And back to the other question, actually, I think I was halfway. So you can have the VPC connected to each other. That's virtual. And you also have this capability to connect to your on-prem network. And that is what we see as well. A lot of use cases behind that. And kind of what's the business driver behind this kind of functionality? If you go one step closer to the customer, what are some of the capabilities that they're deploying using this that they couldn't do before? I think, you know, is it just more peering? Is it more kind of direct connects within, you know, kind of outside the public internet, if you will? How are people using this? What does that open up to them that makes it such a big deal? I love it. This is a big deal. This is a big deal. Yes. First thing is connection. We have talked quite a lot, right? So making connections between all those VPCs and to the on-prem network, that's one thing. And the other big deal is it's automated. So initially, when we have the VPC period, you do it manually. You go into the router or go into AWS to make these connections. However, with the transit VPC, it's a one click. So it's very simple. All the hard work is done on the back end. And through the cloud formation, which boosts the VPC infrastructure and the customer don't need to worry about. And they also have the Lambda function for orchestration, which will actively looking for which spoke haven't been connected yet. And then they will do the connection. It will push the configuration into the CSR. Yeah. So another thing is about the CSR itself. It's our router. It doesn't, the functionality offers not limited just to the routing and the VPN termination, but also it have other features such as don't be spyware, which provides security. And in addition to that, we have the AVC capability, which is application visibility and control, which monitor and analyze the traffic. So you can have that capability and a feedback to your management portal. If you have one, then you can control what traffic you want to go through and manage from there. So it's a combination, not just a connection, but also other features integrated into this. So I'm talking about some of the big challenges that customers face from a cloud adoption perspective. We've talked a lot about that today, security, compliance, control, flexibility. Can you give us, is there any project? I know you work with customers. Is there any project in particular that stands out where this capability has really been a big differentiator for that business's success? Sure. So as the public cloud has been becoming more and more mature, a lot of customers, they put their mission-critical applications into the cloud. And what they are looking for is, they want to extend from their on-prime network seamlessly to the public cloud. They want to have the consistency, the consistency including the security. They want to have the same security policies across the board. And they also want to have the integration simplicity. They don't want to change their IP addressing scheme of when they deploy this. And also from the user perspective, they want to have the same feel and use. They don't want to learn another language to do that. So this is a big challenge. And when we have the CSR in our public cloud, this is exactly, can transit smoothly from the enterprise on-prime network to the public cloud. And with this more capability provided by the transit VPC, we definitely can leverage this infrastructure into the existing customer infrastructure. It's interesting how the challenges kind of go back and forth between capacity, you start to get the capacity capability down, and now it switches kind of back over to the management right now. How do I manage all these things? So it kind of seems to swing back and forth as to kind of what's our next point of failure. Yeah, it has been a challenge. And we have actually heard a lot from our customers. That's where we are going actually. How do we simplify the management, right? And AWS support this cloud formation. I'll give you a quick example. For example, the HAA deployment for our CSR. Right now we have this capability to do HAA, but it's not aeroplane. So users, when they deploy it, it can make mistakes very easily. And when they make this mistake, they come to Tomaske, okay, I didn't deploy it, this didn't work well, but I've already paid. So how do we deal this? Can you like give me some discount next time? Right, right, just help me make it work, right? They want to make it work. So we are looking at how to make this more aeroplane. So the user, when they deploy it, it's one single click, you don't have to go manage all of these. So we are working on the backend to simplify this. Just answer my next question, Fan. I was going to say, what's the next big challenge that you guys are working on? But it sounds like that's definitely one of them. What are some of the other things that need to basically help the public cloud adoption grow? Yeah, sure. This is one of them for the simplified management. And the other, we talk to customers from time to time, and especially from Cisco Live, I just came back last night, that they are asking for, how do I proactively monitor our virtual machines on the public cloud, our instances? And we are looking at the cloud watch as well. And another thing is about performance. When people put virtual machines in the cloud as their extension of the network, they always look for how can I have more throughput on the network. And we are looking at different image types, which have the network accelerators from our perspective. Also, we are looking at the auto scaling, which you can think of CSR as a processor. As you need more, they will just expand. And when you don't need them, they will shut down and shrink. Right, right. Certainly, automatic elasticity is a huge cloud benefit. So automatic is just a big priority. Don't want to shift gears before I let you go. We just got back from Cisco Live. You know, when Satya Nadella came into Microsoft, a huge kind of boost of energy and a little bit of change of direction. And obviously, I don't want you to speak to Cisco's corporate direction, but just the vibe at Cisco Live, just having come back there. We saw some of the stuff on social. What was the vibe? You know, kind of what's the spirit with the new leadership there? That's a good question. Actually, yeah, I missed a key note, I have to say, because I was actually procting the lab, working very hard. Yeah, working very hard. So our students actually came from different department, different world to come to our lab, which, well, we have them to work on those, deploy CSR on the AWS, and they're very happy. So from the other side, we have the digital networking architecture. That is a new big thing. And I think folks who are interested to look forward to where Cisco is going, should definitely go to our website, Cisco.com, to look for the digital network architecture. Well, fan, thanks for taking a few minutes. Welcome back to California, to get out of the air conditioning. It was, what, 115 in Vegas, I think, this week. It's very dry over there. It is very dry. Get dried up by that AC. So thanks for stopping by. Appreciate it. Thank you for the conversation. Absolutely, I'm Jeff Frick. She's Lisa Martin. You're watching theCUBE. We are live in Santa Clara at AWS Summit. Santa Clara will be back with her next guest after this short break. Thanks for watching.