 Live from Bahrain, it's theCUBE. Covering AWS Summit, Bahrain. Brought to you by Amazon Web Services. Hey, welcome back everyone. We're here live in Bahrain in the Middle East. This is theCUBE's exclusive coverage here for the first time, covering Amazon Web Services, AWS's public sector, and the breaking news around their new region that they announced a while ago going to be deployed here in the early 2019 timeframe. In Amazon region, it really is a power source of digital. It has a track record of creating so much value and innovation, and I'm here with Teresa Carlson, who's the head, she's the chief of public sector. She's the head of Amazon Web Services Public Sector globally, except for China, that's a different territory. Teresa Carlson, great to see you. It's so great to have you here with us, oh my goodness. So I got to say, you told me a few years ago, we're going to really go international. We're doubling down outside North America. We're going to have Regis, Andy Jassy, CEO of AWS, said the same, this is the strategy of Amazon, but the Middle East was your baby. This was something that you did this for a lot of time on, and a lot of decisions. Everyone wants to know, why Bahrain? Why did you choose this region, and what do you see happening, and how's it going? Well, you know, it's interesting because I have had a lot of people say why Bahrain as the first region that you put in the Middle East, because it doesn't seem like the first place somebody would choose, and the thing that kept coming back to me is, Jeff has always said we're willing to be misunderstood for long periods of time, and I think this is probably one of those times where people just didn't quite understand why Bahrain. Well, here's why. I met the Crown Prince, we talked about digital innovation and the economy here, and he immediately got that they needed to go through a digital transformation. They are not a country that has a lot of oil. They are a smaller country, and they really are a working class country that is looking for how do they have sustainment, and they've done things in the past around financial services that really got him going. They were kind of, they would spearhead things. And I think he saw the opportunity that this could help them gem-start the economy, and they could kind of be a hub for innovation. So they created the right policies around Cloud First. They created the right telecommunications policy. They were one of the first to deregulate. They had good pricing for utilities. They were friendly toward businesses, and they had kind of a culture that we felt could fit well with us, as well as our partner community. A couple of observations being the first time here. So thank you for inviting us and allowing us to cover you here. One, they're a learning culture. They speak multiple languages. Why not add programming to it? Software. Two, they like to move fast. They are just built a track in 14 months. They're not afraid to go faster. They go fast. That's Amazon. Amazon, you guys move at a speed of a whole nother cadence. And then two, I think my observation again, comparing to other areas as I look around, is that the percentage of the population of Baharanians is large. There's a lot of people who live here that are native and they're talented. Well, one of the things you said that I think is key is that they move fast. They're used to being frugal on how they do things and they're very scrappy. And that really fits with their culture. Because again, they have to do things different than some of the other Middle East countries that are not quite as rich. But they had this culture of really moving fast and they took down blockers like crazy. I mean, as we came in and we're making a decision on- Who are some of those blockers? Stumbling blocks? Are they more hurdles or are they? They were stumbling blocks, but we had to really come in and talk about why telecommunications policies and pricing had to change. Because in an old school model of Telco, there's a lot of just a lot of big charges. And when you have a digital economy coming in, if you think about you have a few transactions for a lot of money in an old school, in a new school world, you have millions of transactions for a little bit because you've got to be able to transact a lot. And that's the way your telecommunications industry has got to be set up. As well as you want it deregulated, they had already deregulated it. So they worked with us to open it up to set the policies. And now, but Telco, who is one of our major telecommunications partners here, is doing managed services on AWS. They've gotten all kinds of people trained. And it's just an example of how they look at an opportunity and say, we have got to innovate and make changes if we want to have a sustainment in the 21st century economy. And you guys are bringing a lot of goodness to the table. They're quick learners. They're smart. They've got the entrepreneurial vibe. They're not afraid to put some funds of funds together and get some professional investment going on. So that's going to level up the entrepreneurship base. The question is, when will the region be ready? How's that going? It's under construction. We've been hearing it's been impacting and frankly bringing in to this country an agenda item of sustainability and sustainable energy. Well, why would they need sustainable energy? They got oil. Well, they... Why burn it if you can sell it? That's what the British prime... Well, they do and they've had a new fine but I think they have to get to the new oil that they found. But they're not... I think what I understand they're not banking on that. They're going to bank on a digital economy. So they know this is kind of a guaranteed way to really grow what they're doing and bringing out outside others. There's two big elements they're doing. One is they're creating policies for data that allows other countries to put their data here safely and with the right laws. That is game changing. So that's one big thing they're doing. The second thing is they have this spirit of kind of teaching and training so they're getting other countries to come in and talk to them about what they're doing. And remember John, they're already moving the government to the cloud and they don't even have their cloud here yet. So they've done all their homework and they're already moving workloads into the cloud that they don't feel need to be here but they've looked at security design, compliance practices and they're like, we're moving, we're not waiting. They're cloud first. They're cloud first. Okay, so when do you expect the construction to be ready, ballpark? I know you can't probably give an exact date but when... We expect it'll be ready by Q1 of 2019. And we're excited it's going to be one of the most innovative regions. And by the way, I don't know if you saw I had a big star on the map today in my presentation. We have literally at AWS had a big hole in the world with no region in the Middle East or Africa and now we're going to have this region. So it is exciting and I know that the region itself is really anxious to get going. Well, not only are you an amazing executive. I've seen you work. I've seen what you've done. Checking the boxes, doing the hard work, getting down and dirty and doing hustling and scrapping but you also made some good strategic bets. This one really is successful because I think two things, you bring a region to the area for AWS. But you guys are doing it in a way that's partnering with the government. You're actually as industry contributing. And I think that's the case there that's going to probably be recognized down the road when people figure that out but that's going to be a great one. But the cultural win for you is pretty amazing. And I have to say yesterday I went to the women breakfast that you hosted. And I've never been at a women breakfast and I've been to a lot of them because I like to be involved where I get kicked out of a table because they need the space. So it was so crowded. Sorry guys, you're out. I got booted but I didn't leave the room. I had to just move on. They had workshops. Take a minute to explain the women breakfast you have because I think that was extraordinary and a proof point that the narrative of the region, women don't go to school, all this nonsense that's out there, take a minute to clarify this is a cultural shift. There might be some cultural things going on. Well, the women are here. Hashtag smart is beautiful. They are like amazing. And they are very educated. And in fact, 53% of the government workforce here are females at high level jobs too. They're not just low level. And I actually met with the king this week who told me that he was able, he has the first Supreme Court justice that's a female in the Middle East. And he said it was against culture, but he did it because he said this woman was so amazing and she was so talented and she fit the role. She had the job description down. And he said it's gone great. So the women here are smart. They're talented, they're educated and they actually get degrees in computer science. Here in Bahrain, 60% of the computer science students are females. Now, what is not happening is they're not always getting out and getting these jobs. And the second thing is right now, we're still working with them to teach the right skills. A lot of the skills are actually outdated tech skills. And I know John, you see this too, even in the US. You have universities that are still teaching the wrong skills for cloud. So we are working with them at the university and the high school level to actually teach and certify on the right skills. But the women are talented, they're amazing. There are some cultural things that we're kind of going to work together on, but there's really no reason we can't have an amazing and talented workforce of women here in the Middle East. We had Mohamed on who's the chief executive of the IGA, the information e-government authority. He told me that any citizen can get a certification for free in this country. Yes, oh my gosh. So I've never seen this. So our partner here, Tim Keen, who's like the labor fund about a year and a half ago agreed that any citizen that got a certification on AWS, it would be 100% paid for. And then we just announced today that they're actually also going to pay 100% of Bahraini companies that want to move to the cloud. They are serious about this. I mean, they are serious. And they are being a role model. And again, John, why are they doing it? They are doing it because they realize that they want to be a true digital economy and grow their businesses here and create new. They've got to move faster because they're smaller. They got to be scrappier. They got to be faster. They got to do things a little bit different. The other thing I want to point out, you can't really see it on the camera, but behind us you have essentially a mix of commercial and public sector. The show here is so crowded. Couldn't get into the keynote speech. Overflow room was packed. This is attracting everyone from the Gulf region here. Not just public sector, but commercial businesses. Absolutely. This is not a one time thing. This is a pent up demand is here. What do you expect is going to happen when the region gets here built out? Well, if you look at all the partners around, I mean, like you have Trend Micro over here and others, many of them have come because they're excited about us putting a region here. And Andy Jassy and I both have had many of our partners say when are you going to have a region in the Middle East? So we expect a lot more partners are going to come just like you. They're going to see the value of being here. But additionally, I don't know what we're going to do for a conference or summit because we've already outgrown the space. And you're right, we have delegates here from Jordan, the UAE, Saudi Arabia, of course Bahrain, Kuwait, the US. So many different groups are being represented here. And I think also South Africa. We have some folks from South Africa. Well, theCUBE is here. We're making great observations and great commentary. I got to say that, you know, you even attracting amazing talent from the US besides theCUBE, General Keith Alexander was here. John Wood from Telos and all these partners, all visionaries can see the opportunity. This is important. You're not being misunderstood by the people who know Amazon. No, I agree. And you made a point earlier that I think is important which this, even though I'm kind of here for this conference leading it, this is not a public sector conference. It's a AWS summit. It has tons of commercial, tons of public sector. They'll think that's a little bit different when you get to some of these countries. They are more government led. So that is the reason it's important to have this relationship with government if you really want it. But you don't want to surprise them and you want to work with them to help make sure that they and the country are successful. Well, Teresa, it's been fun to observe and watch your successes continue to raise the bar, here in your job. This is a whole nother level when you talk about really filling a hole, you see a hole, you feel it. So I heard someone say that once in a motivational speech on it was you. You see a hole, you feel it. Oh, we got a hole in the Middle East, feel it. You have a region here. You got great success in Washington DC, CIA, other governments, congratulations. And thanks for all your support. Thank you, John, for being here. Thank you. Thank you. Live coverage here. We are here in Bahrain in the Middle East of CUBE's first time. I'm John Furrier, your host here, covering the exclusive Amazon Web Services Summit and covering the historic launch of the new region in the Middle East. This should change the game. This is going to be a digital hub. It's going to have impact to entrepreneurship, economics and society. We'll be covering it to CUBE. Stay with us for more after this short break.