 If you sell software, we'd like to talk to you too. We can help get your software in front of some of the hundreds of thousands of AWS customers across 190 countries. You provide us your software on an Amazon machine image and tell us what it costs to use it. We'll take care of billing and then pay out the funds to you. Whether you're looking for software to use or hoping to sell your software to new customers, come visit AWS Marketplace today. When you're building an application, you want to... Co-host Jeff Frick. Jeff, it's been quite a day. This is the Cube, by the way, SiliconANGLE's production. The Cube drops into events. We try to extract the signal from the noise, bring you coverage of these events. This is really our first AWS show. We hope to do more. We were invited in by Amazon. Wall-to-wall coverage. We had Amazon executives on. We had partners on. We had customers on. We brought a few of our friends on and really got a good sense, I think, Jeff, of the momentum of Amazon, the innovation of Amazon, the commitment to the enterprise, the richness of the ecosystem. And as I say, the pace of innovation is just astounding. It's like I said at the top of the show. I've never seen anything like this in the IT business. I've been in there 20-plus years. You've got an incumbent that we forecast is going to do $3 billion this year in AWS revenue. An incumbent that's also the disruptor. I've never seen that before. What's interesting to Dave is they've disrupted a lot of things. I mean, there aren't a lot of companies that you can look at historically that have had a tremendous amount of success in one area and then been able to leverage into other areas. And that includes Microsoft. That includes Intel. That includes a lot of companies that are really good at their core value proposition and then try to evolve the company over time. I mean, this is a bookseller that then evolved into basically the retail platform and completely changed that. Then they got into the tablet business and really changed the book publishing business. And now they've used that as a fundamental infrastructure to change IT services and computing resources on demand. So the fact that they've got this culture of innovation and this culture of kind of continuous, just this march of innovation and really listening to their customers because they've always been customer-centric because they've been a click away from losing them historically is really something special. I go back to Andy's keynote this morning and he talked about just some really basic themes. Just a relentless reduction in costs. It's a relentless innovation. And this really dedicated listening to customers and adjusting the roadmap and going out and delivering accordingly. And it seems to have been supported in the people that we've talked to, some of this partner ecosystem, which I think is, again, analogous to what Apple was able to do to really leverage their position and take it up a notch. It's a pretty amazing story. So we love to use sports analogies here on theCUBE. So I think that we're entering the fourth quarter of a cloud game with many games to go. It's like an extended series. So what I mean by that is we had the first quarter was experimentation. And in 2008 and 2009, we had an accelerated move to the cloud because of the economic downturn. People trying to reduce CapEx, go to variable expense. And then what we saw is a real new emerging innovation beyond that. People started to see a new ecosystem emerge. People started to say, okay, we can do more than just my mess for less. Let's start to get deeper business integration into the cloud. And now what we're seeing is Amazon really expanding, leveraging its many hundreds of thousands. Let's say it has 200,000 customers, leveraging that into the enterprise. That was a wake up call for other enterprise players. Now what's happening is many of those enterprise players are partners of Amazon. We heard SAP today. We heard Oracle. We even heard VMware as a partner of Amazon AWS. At the same time, you have all these disruptive companies essentially supporting the Amazon ecosystem and some legacy companies. There's legacies of traditional IT companies like a NetApp, for example, who's putting forth their value proposition into the AWS cloud. So you have all that coming together now in 2013 and there's a massive ground swell of innovation. At the same time, you've got all these competitive forces going. We were at the OpenStack conference a couple of weeks ago. One of the premises that we came out of this conference within the OpenStack conference is OpenStack, in effect, while originally we set as a Hail Mary against Amazon, we're now starting to formulate the premise that OpenStack is essentially competing with a lot of the traditional IT suppliers, cloud services. We're talking about VMware in particular. If you had to handicap the horses, VMware and OpenStack are looking very strong. Obviously, you've got IBM and they're such a huge services company. Citrix, I don't know. You may be having an opinion on there, but it seems to me that Amazon is going to be the icebreaker and take a huge chunk of market share and you're going to have other people fighting over what's left in the enterprise. I don't know what your take is on that. It's fascinating to watch. I think there's two things that I also want to throw in. One is the shadow IT that was enabled kind of by the resource issues in 2008, 2009, but it was also all about the developer and the developer taking control of their world and not having to wait for people to ship them servers and stuff to get started. I think now what's happened is the rise of the developer, the power of the developer has now come front and center and everyone really wants to support that developer and remove any impediment that they have to get their job done. That has happened to Dovetail with really this infrastructure on tap, these resources on tap, which is pretty phenomenal. The other thing I found fascinating today is we had a couple old school storage guys whose customers are telling them, we like you, but we've got opportunities and we need to get some of the stuff in the cloud. How can we work with you to take advantage of the attributes that you have but still start to move into this lower cost opportunities? And to their credit, they're here at the show trying to figure it out. That's a dangerous game they're playing though. I know what you're saying to their credit. That's the big question. Is it TAM expansion or are they cutting their own drugs? Right, it's hard to reinvent yourself as a company and the other way to look at that right is you can let somebody else eat your lunch or you can try to eat it yourself and reinvent. And I also think it's driven by customer demand. I think that's very important. So some of the things that Amazon needs to do better, is to talk about that. So Amazon is tempering, I think, its posture toward the private cloud. It's clearly embracing that notion. Whereas I even sensed that at reinvent that there was some, there wasn't hostility. Amazon's not a hostile company, but there was some negativity toward that notion of private cloud. Like why do that? It's non-differentiated, heavy lifting. I think Amazon is recognizing as it goes to sell deeper into the enterprise that, you know, look, we need to rely on our ecosystem to connect. I think the second thing is you're starting to see the ecosystem of partners build out. You know, I saw guys from Deloitte here. You know, let's say Deloitte, Accenture, IBM, those are the big service providers. They control a lot of the dollars on the chessboard. We didn't hear those names in the keynote, but they're clearly watching, they're clearly here. You're seeing guys like Cap Gemini, which is somewhat smaller player, but definitely with a global footprint, adding value on top of AWS. They see AWS as an opportunity. The other big play is SAP. We're hearing a lot about HANA spinning up instances very quickly. We heard Oracle as a partner and a gazillion interesting, innovative startups. And that to me is the power of Amazon, but I still think there's still some learnings that are going on. I mean, I'm sorry Amazon would admit this, learnings going on to sell into the enterprise. It's a different game, and I think their philosophy is, look, we're just going to keep doing our thing, keep innovating, keep cutting prices, and not worry so much about the competition, focus on the customer. My question to you is, can the traditional enterprise guys keep up? Yeah, it's going to be tough. We talked last time at Opistack, Clayton Christensen, my all-time favorite business book writer from Harvard, talking about it is very hard with continuous change to catch your discontinuous innovation. You just make better and better and better hard drives. You forget when they move from 6 inch to 4 inch to 3 inch. You miss that. It is a big challenge you've got. Established customer base, who's driving for incremental innovation in the products that you already sell them, and you've got numbers you've got to hit. You've got sales people out there that are working. So it's really hard to make a big shift. It'll be an interesting challenge to save. The good news is they're in an incumbent position, and I think with some forward thoughts, and forward looking to try to find a way, what is that hybrid step? There may be a hybrid step to play, but it could take an entirely different point of view. It'll be an interesting thing to watch. Well, it's a big market. I think everybody's watching Amazon's playbooks. They're going to try to learn from the best. But I'll tell you, my observation is, many of them aren't getting done. I'm not going to name names. That wouldn't be fair. I'll tell you, I had a Twitter, a little war, a little urinary Olympics with one Twitter person talking about Amazon's SLAs. And I said, well, what's your SLAs? This is Cloud Service Brother. How are your SLAs so much better? Great, send me a copy. He said, go to the website. Went to the website, couldn't find them. So I said, all right, well, I couldn't find them. Oh, well, let me get them to you. Hey, listen, I've got to go through AR. Contact the AR people. I just want a copy of the SLA. You can't find a copy of the SLA. The point is, a lot of Amazon's competitors are talking the talk, but I want to see them walk the walk. And I think the reality, Jeff, is that Amazon was so far out in front. Now, having said that, these guys have resources. You know, you talk about crossing the chasm. I think in 2013, what's different is these large companies have massive resources. They have huge amounts of cash in the balance sheet. They're not afraid to use it. They'll buy companies. They actually can move a lot faster than they could when that original concept was written. So I think there's a new version of crossing the chasm. And I think these legacy companies, these traditional companies, are building bridges. And I do think they will figure it out with their customers because their customers want them to win. Why? Because they have so much investment built up in that legacy infrastructure. At the same time, you've got this new model coming and I think it's unstoppable. But then the other kind of funny thing was, Andy talked about it, all the services and stuff. There's three buckets of people services that Amazon now wants to sell, which is an interesting indication that they want to get into the enterprise. And can they successfully sell that stuff? They mentioned professional services, training. There was one other one, which is a nice indication that they're trying to play it. But that's a very different business model than click here, accept terms and ship. Well, I think a lot of that is Amazon. I think Amazon's strategy is to really enable their ecosystem to deliver a lot of those services. So I think they absolutely will not compete with their service partners from the standpoint of going belly to belly into your account. It's just more of an indication again of kind of coming from a different direction but headed straight towards that enterprise with an acknowledgement that we do have to have more than just click here, accept terms and ship or download or configure. Jeff, the other big question I have is, okay, so Amazon doesn't talk about its roadmap. We don't know what's going on. Unless you're a customer, apparently, we can go in and... Well, we are a customer, but I think they save that for Netflix and NASDAQ. I think they probably don't share that with Wikibon and SiliconANGLE. But we'll ask. And if we're not under NDA, we'll publish. You have to be careful Amazon. But so my point is, they've got so much innovation that we don't know about. They had to invent a lot of stuff. They were doing so before the industry was doing so. They helped invent the whole hyperscale market. They're a big data practitioner. They are doing things in IT that universities aren't doing. Obviously learning from universities but they're doing things that universities aren't doing. So a lot of the innovation in this industry, as we know, is it's coming from consumer and Amazon and Facebook and Google are a lot of the guys behind that innovation. Now, I think again the enterprise guys are fast followers and I think they can very clearly in my mind compete and they will compete very successfully on the basis of SLAs, on the basis of security, despite the fact that Amazon has good security within Amazon, sometimes the data has to move out of Amazon. And that's where some of these other ecosystem providers play. You look at a company like VMware with such a huge install base and such a huge affinity and asset base build up and others, obviously Microsoft playing and IBM and HP betting on OpenStack. There's a big market out there. It's going to be fragmented. I would expect you're going to see fragments of clouds. I think there's no question about it. You're going to see Oracle clouds, IBM clouds, VMware and its ecosystem clouds, obviously the Amazon cloud, Google cloud, Azure cloud. The market is enormous. Can the market support all those clouds? Probably for a while. But then eventually it's going to settle down. A couple of just final notes. I thought there's a lot of conversation with the last couple of guests about Amazon Direct Connect. And it's kind of an interesting to think that you've got another data center across the street with my boxes in it that got the hot connection into the AWS. So how is that going to morph over time? Are all the on-prem's going to actually be at this Equinex across the street? And how's that going to morph? And if it's across the street, why don't we just tear down the street and roof it over the top? That whole thing kills me. Amazon's got to be sitting there saying, yes, sure, no problem. So I thought that was interesting. The other thing with service mesh. Sean said at service mesh, at the end of the day, if you are the guy provisioning resources to do something, do you really care under the covers and how that's allocated? The high-end storage guy saying, there'll be a suite of offerings that will fulfill the resource obligation or resource needs of that particular operation. Do I really need to know what, the how and the why? And I love the service mesh story for the conversation we were just having about multiple clouds. You're going to talk about federated clouds and that's what service mesh, the name says it all, bringing those clouds together. So I really like that strategy a lot. We'll see what we're watching. Jeff, well listen, it's been fabulous working with you. Great day. We've got all kinds of stuff coming up. Maybe just a quick summary here. So we have next week, we've got, let's see, we're at EMC World. Yep. And then we do SAP Sapphire that following week. We're also at the Service Now Knowledge 13 conference. You and I will be doing that conference. We're beginning our summer tour. We're going to be at IBM Edge. Very excited about that conference. We were of course at the Excel Partners event today. So go to siliconangle.com check out the blog post at the river. You'll see all the videos that we do. We'll have a companion blog post and an analysis. Go to Wikibon, you'll see what we call the shock and awe pages, the aggregation pages. All the research on Wikibon is free. It's about peers and practitioners helping each other. Go to siliconangle, or go to sorry, youtube.com slash siliconangle for all of our YouTube videos, all of our playlists. Keep watching, you guys are a great audience. We really appreciate all the tweets, all the questions you guys sent in today. Give a shout out to the crew too. Great job with the crew today. Kenny and Nick, really appreciate all the help. Andre, the new kid in the block working with you this year. Great job guys, really appreciate all the local support. And Dave Butler and Stu back at the office, Kristen Nicole who runs our editorial desk. And that's it. We're wrapped from here, from the Moscone. I'm Dave Vellante, he's Jeff Frick. Thanks for watching everybody. We'll see you next time.