 Live from Washington, D.C., it's theCUBE, covering AWS Public Sector Summit 2017, brought to you by Amazon Web Services and its partner ecosystem. Well, welcome back to theCUBE here. We are live in Washington, D.C., day two of our coverage here at the AWS Public Sector Summit 2017. Again, in Washington, D.C., just about a mile and a half or so, about a mile from the White House, conveniently located here in our nation's capital with John Furrier. I'm John Walls, John, good morning to you, sir. Good morning, great day yesterday, a lot of great interviews, thought leaders, inspirational, very informational. And again, theCUBE just doing its thing, our inaugural event here at Amazon Web Services Public Sector Summit, our first time here. This is the seventh year of the show. Started out as just kind of gathering, people coming together. They're kind of a hope for gathering too, right where we heard yesterday, guys. Well, I hope somebody shows up. Oh, we have 10,000 showing up now. It's still small, but that's a huge number. Some big companies don't even get that many for their annual user customer conference in general. So 10,000 is certainly a good number. I expect Amazon to continue to blow away the performance and the numbers. I expect this show to be, again, the Amazon re-invent, which is their big show as a company, Amazon Web Services re-invent, which is held in Las Vegas every year overseas. But this is going to be the public sector version. Education, government, health, all these different public sector opportunities are ripe for the cloud, right? And that's really the big story. Yeah, and I think we saw that on the keynotes this morning with Theresa Carlson, who's the Vice President of the Worldwide Public Sector here for AWS. But she brought out a number of guests. John Edwards being the most prominent, the CIO of the CIA, but also representative for the Australian Tax Office, representative for the Ocean Conservancy. He talked about state and local government. So you hit the nail on the head. We think public sector, I think, maybe the presumptions go right to big government. But there are a lot of tentacles, if you will, out there, a lot of statements out there. 22,000 nonprofits, for example, that AWS is now working with, state, local, and federal government. So they've cast a wide net, and they've caught a lot of fish. I mean, yeah, I mean, to me, this is an interesting time in our lives. I mean, it's the famous quote, we live in interesting times. We are living in interesting times. Certainly in Washington, D.C., we are feeling it. Obviously, I mean, from California, I always love to come into D.C. to feel what it's like into the boiling water, and with Trump in the office and all the disarray in the government, there's a shooting of a congressman this morning, 50 shots fired at a softball practice. It's insane. And so there's also change going on at technology level that's changing government and also roles of education and whatnot. So you have this really kind of weird environment I call the frog in boiling water. At some point doesn't know it's being boiled to death, but that's been the public sector for generations. Really, I think the seminal change over was mainframes and mini-computers really kind of powered the government. And I think it's been incremental changes and you've seen IT become what we've seen in the enterprise. Again, incremental improvement, bolting on some support here, we've got wireless and so kind of a moving the ball down the field yard by yard. No major long ball throws to the end zone as we stay in football, but now with the cloud you have an opportunity to take the domain expertise of all the different agencies because they want to do a good job. Their world is changing. You can look no farther than education, higher ed and even K through 12. I mean, they're dealing with an audience that's growing up with cell phones, mobile phones, smart phones. I mean, they're not phones anymore. They're computers that happen to make phone calls and half the kids don't need to make phone calls anymore. That's right. Half. Are you kidding? It's not even a phone anymore. It's a computer and a camera. It's a texting device. User experiences are driving this and it's a forcing function. So all this disarray, all this opportunity, perfect storm of innovation happening. And I think the cloud enables that. And I think that's part of the reason why Amazon Web Services is again feeling the love here because the growth is right there in front of them. Now we're going to have Theresa Carlson out a little bit later on. But just get your take on her. I mean, she's taken this from an infancy stage and has just rocked it. She's amazing. Theresa Carlson, we'll have her on. She's been on theCUBE multiple times. We always joke with her when she comes on theCUBE when we're at re-invent and other places we see her when she comes on. Hey, we should come to your conference. And so we're here. But the thing about Theresa Carlson is she's loved by all the customers. She's very customer focused, but she's tenacious. She is smart. She's beautiful. She's a hustler. She's great. So she is a great leader and she's been knocking on doors in this town for years when cloud wasn't cloud yet. And when you're an innovator, pioneer, store slams in your face, right? So you got to have that kind of tenacity to stay on it. And that's what she's done. She's been amazing. I'm a real big fan of hers. I think she's got some work to do. I mean, areas I think that she's got to really expand is go faster with the ecosystem. I mean, some of the case studies are out there to be had. We know for a fact and they haven't talked on stage if there's a lot of smart cities things going on. There's a ton of transformative Amazon web services deals happening. So you want to see more of those, want to see more of them faster. I want to see more peer review. I want to see more case studies. So to me, that's where I think she's going to have to really keep the hustle going and then get her team kind of set the bar high and continue to innovate. You know, we talked about that seminal moment with the CIA deal four years ago when the CIA made the move, went to AWS, chose them over IBM. John Edwards was talking about that mind shift at the agency today saying it was our goal as we looked at all of our partners, instead of making you or them become like us, we wanted to become like them. We wanted to be faster. We wanted to be more agile. We wanted to be more nimble. We wanted to be more open in a way or at least open to new ideas. And so it was a transformational shift in their paradigm that really set him on a great course that he couldn't have been more positive on that stage. They talked about AWS and the relationship with the CIA and what they have done for the agency. What is that for the agency? Look, there's a frustration in public sector. This is the elephant in the room, so to speak. And that is they want to do more with less because that's always been their role. That's some kind of say, oh yeah, bolted contract or kind of bids and the procurement process, which old school was the $45 bolt that the joke in DC is for these, the big government army contract and contracts. But they still get scrutinized on costs. So there's been a way of doing things that are changing, right? So how you procure technology, how you deploy it is really different now. And the opportunity is to get this in the hands of people who want to move fast. They want to actually deliver a good product. There's a lot of great people in public sector who love their job. And if they don't give them the tools, you're going to consistently see what I call a brain drain go on in public service. And you're seeing that going on, obviously with Trump and the government here, a lot of smart people saying, hey, I'm out of here. It always kind of happens during political changeovers, but no more than the passion of the people working, just give them the tools for the job. That's kind of the cloud mojo, right? It's like, give them, move fast, give them the technology they need. And the other stuff we're hearing from Pew, for instance, one of our guests yesterday, they need some of the basic stuff automated away. I want the compliance, I want the security. I want to make sure that I can run the operations at scale. And that's really the table stakes. And that's going to be the tipping point. When all those details around compliance can just be programmed in once and just work, that's when you're going to start to see some real acceleration, new apps, new developers, new environments for whether it's students, federal workers, or practitioners in health and human services, you're going to start to see those things happen. Well, it's all about stability, right? Stability and certainty and knowing that what I'm doing is okay, right? That I'm staying within the confines, the regulations, because this town knows regulations. I mean, all these markets, I mean, what's going on in those worlds? And a lot of people will ask questions. People in the industry have, they know what's going on. And they want better, faster, cheaper now. And I think that's Amazon's ethos. I mean, Jeff Bezos, the CEO, is living large right now. Stock price is at thousands. It's been his personal cash to send people to space and build up Mars, for instance. That's his moonshot. It's not a moonshot, it's a Mars shot. He's got a grand vision, he loves space. But he's always said, the ethos are made to Amazon. Amazon, which Amazon Web Services is part of Amazon, is lower prices for customers. Constantly deliver lower prices, push the prices lower and ship product faster. Okay, get it in the hands faster on the delivery side. So you can apply that ethos to anything. It's really a timeless ethos. It's not pegged on one different division. Andy Jassy and Theresa Carlson, they picked that up. They're trying to drive the prices down. CIA talks about that and delivering faster means speed. I want faster tries, I want lower price. And they've delivered that. Amazon has consistently delivered better products at a lower price and working on shipping, software faster, better performance. So delivering here is packets. So there it is, that's essentially why Amazon's winning. That's the key to their success. Well, it's been a winning formula for sure and we'll be talking about that much more today as we continue our coverage here from Washington DC. We are live here on theCUBE. We'll continue with more from AWS Public Sector Summit 2017 right after this.