 Live from Las Vegas, it's theCUBE, covering AWS re-invent 2017, presented by AWS, Intel, and our ecosystem of partners. Hey, hello everyone, welcome back to day two of live coverage of theCUBE's exclusive analysis coverage of AWS re-invent 2017. I'm John Furrier, co-host on set one with Stu Miniman here, analyst at Wikibon, and we have two sets here at Amazon Arena. First time we've done two sets, so much content. We have our director set with captain's chairs over there, getting all the community content, and all the folks who are doing the innovation here at AWS. Stu, a lot to talk about, we've had companies come through, tell us about their innovation with AWS, but the bottom line is Andy Jassy's keynote just went off. I mean, he's like the energizer bunnies. He keeps going and going and going. Announcement after announcement, I broke that Forbes story, kind of laid out what ended up turning out to be the core messaging. Tons of stories on siliconangle.com around Andy Jassy's exclusive interview that we had about a week and a half ago prior to re-invent. He's geared up, man. He's giddy up, as they say, his favorite word, and he's taken on the competition. He took Oracle head on and called Oracle a company that abuses their customers. Okay, that was hardcore abuse. He's the word abuse in this culture. It's like, he's just a predator. I mean, he's that kind of competitive vibe. Microsoft kind of called out vendor two on the chart, just laying out the sets of services. Amazon putting the aggressive, we're real stamp out there. What's your thoughts? I mean, you've got the only analysis. So, first of all, yeah, John, this show is always impressive, one of the ones I look forward to more than almost anything for the entire year. 43,000 people here. I spent the last day and a half in the analyst sessions, and there wasn't a single analyst that was like ho-hum. There are so many announcements, and even, you go down the list and the number like 73rd announcement on there, you're like, oh, I'm not sure. Oh, there's this group of customers that's been waiting for him, and it's going to transform their business. It's potentially going to crush certain parts of the industry. There's so much happening. There's lots of fanboys here, and it's tough not to just get exuberant about what's going on. Surprised to see Andy punching a little bit of the competitor. Sure, he takes jobs at Larry Ellison every year. The Red Stack stuff, database. They're making huge pieces on the migration, but talking a little bit more about Google and Microsoft, oh, well, they must be real competitors. A lot of people are saying if they're actually putting them up there, going through the numbers, so many things we want to dig into here and throughout the next two days. Yeah, man, the fact that he talks about the competitors means that it's still on his mind, although they're full steam ahead. The thing about Jassy, though, getting to know him, his style is not just talk. He walks it more than he talks. So he'll only talk trash, but he's got a solution in his back pocket. And what's different this year is the bravado has gone up and the rhetoric around Oracle, specifically, has been really hardcore. I mean, he called them an abusive partner to their customers. I mean, that is just, that's a line in the sand. Those are fighting words. But then he goes on stage and essentially rolls out a series of database options. He spent a lot of time talking about databases, too. In his keynote. John, we got Aurora serverless now. I mean, totally talking about how many companies how many resources do you have focused on managing the infrastructure under your database? So RDMS paired with serverless, that absolutely game changer. People are super excited about it. There's so much going on. But I mean, John, just take a loan. The one thing they put up is one of the Gartner slides and it was like, oh, what's Amazon at now? 44% up from like 39%. So there's talk about growth rates and everything like that. Amazon chugging along, dominant in their space, you know, and so many pieces happen. That's the one critique I would give Jassy. The one thing I don't like about his keynote and I don't like in general about Amazon is they talk new guard, new guard, old guard is bad. They're using Gartner slides, too. I mean, you couldn't get old guard than Gartner. Magic Quadrant has nothing to do with the presentation. It was infrastructure as a service. Didn't include platform as a service. Didn't include SaaS. I mean, they're using the wrong scoreboard. Now, I think he throws it up there because buyers kind of use Gartner as kind of a bellwether. But they're not, they're old guard. He's got to get better stats. I'm pressuring them to get the stats. What is the scoreboard for cloud? Yeah, well, John, you know, one of the things we always look at, there's two days of keynotes. Today's really the enterprise. Enterprise, Andy says, we're in kind of the early part of massive adoption from enterprise. So he's talking enterprise speak. And yeah, they go to the Gartner Magic Quadrant. Absolutely, it's, you know, John, what's happening in the software world? I mean, that's really where this is, the change of what's happening in software. Amazon's at the vanguard. There was plenty of things that I'm sure developers will love here, but it wasn't the big focus of today's. I mean, to me, the canary and the coal mine is developers. The canary and the coal mine for the big mega trends are also venture capitalists. The canary and the coal mine are the startup entrepreneurs, those alpha entrepreneurs. And last night we had a chance to set down multiple one-on-ones with some venture capitalists. We had some here on theCUBE. Then we went to the Greylock Amplify and the IVP party and had a chance to talk to some people. The general sentiment is this. We are in a sea change. It's like a tsunami. The whole beach is exposed before the big wave comes in, Stu. And the top venture capitalists like Greylock and others are looking at this going, the models have changed. The funding model, the dynamics, and everyone's going, holy shit. And that's where this renaissance in software development's happening. And the top guys on entrepreneurial side are saying, look at the new way to do it is take less funding. I need to get in market fast with the product. I need a part that's going to get me. The rest of the market is dear in the headlights, Stu. They're like, wait a minute. Do I compete with Amazon? Do I party with Amazon? What else cloud do I use? They get caught rearranging the deck chairs and then taking their eye off the ball, which is software. So John, the struggle I've been hearing, talk to a bunch of Amazon customers already this week. If you're in the enterprise and you're building your strategy, you got to write it on a whiteboard or an edge and sketch because things are changing so fast. The thing I was really looking forward to is what were they going to be in Kubernetes and serverless, huge promise. What are they delivering? What's the proof point? And have to say, definitely impressed with what I saw so far. What's the top? I mean, first of all, you're in the analyst meeting and I heard feedback from the analysts like, man, we can't even comprehend all these things. So I want you to boil it down for the folks not here. And they're going to read some blog posts on SiliconANG, a lot of covers to go through, certainly on theCUBE and SiliconANG will keep on. Bottom line, what's the executive summary in your mind, Stu? What should people pay attention to? What's the most important story? It is impossible to give one story to everyone. But let me start with, Andy lays out in your interview for Forbes and what he talked about in the keynote, kind of the compute continuum. So if you're just using compute instances, there's some new big ones. If you want your AI stuff, your big data, they've got new compute instances. The bare metal offering is basically the fruits of what they had to do to be able to get VMware on AWS to work and they're now making that same instance available for those that want to be able to do other things with it, bring their own hypervisor, things like that. I can tell you, it's a massive, it's like 72 logical cores, it's huge amounts of memory and it is going to be wicked expensive because it's not like most of the instances with Amazon, oh, pick between these six versions. It's one, here's a server and it's a big server. It's going to be really expensive. We're going to be digging into it with a couple of VMware executives on that piece but the newer stuff, containers, for last year we've been hearing Amazon's behind on Kubernetes, Amazon's behind on Kubernetes, they joined the CNCF a couple of months, now they have EKS, so fully supporting Kubernetes but here's the nuance, I talked to the people that run that group and ECS is not going away. We've seen all the time is, oh, here's the standard and we're going to fully embrace it but our proprietary version, Kubernetes doesn't scale the way you need. You've got to do our things. Kubernetes, we can't integrate it with all our services, use our service and Andy was like, hey, we're going to give you choice. Underneath that, they had, it's far point, is really, I'm sorry, far gate. Far gate is the underlying level that basically allows me to take rather than managing at the server level which really I was managing virtualization before. Now I'm managing at the compute level. When containers came out and Docker was buzzing, it was this is the new atomic instance of how we manage things and far gate really cool down at that lower level. So you know, I keep saying, yeah, far gate at the bottom level. Now I've got ECS or Kubernetes and then I've got things like Istio on top of that. You and I are going to be at the CNCF show next week, KubeCon and everything like that. I'm sure Amazon's going to suck a lot of the air out of that with what they're doing and gosh, I haven't even talked about serverless yet. So I got, I mean, first of all, I mean, this is, first of all, it's hard to boil it down. Like you said, you can't even breathe at this point. It's so exciting. But the thing that that is a success of Amazon also could be an Achilles heel. That's complexity. So I noticed the messaging was everything to every button or is everything to everything. It got this vibe going on. Everything is everything. Yes. Everything is everything. But a lot of people have been criticizing the software business or on the community side of the supplier side trying to be everything to everyone. Yeah. But that's what Amazon's doing, right? They're basically saying, we're going to give you everything, but it's not mandated that you choose one. Yeah. So talk about that dynamic because the people are critiquing them and saying, well, they're just throwing all this stuff out there. It's just a feature. Yeah. Yeah, no, it's a great point. And right, if you look at traditional enterprise vendors, it was, oh my God, look at that catalog and all the thousands and thousands of skews that are out there. I believe the number I heard is in the Amazon services, there's like 30,000 services out there. And how do you, as a company, manage with that? I talked to one global web company and I gave that, yeah, how do you keep up with this? How do you know what to do? He's like, well, we reached a certain price point. I've got two Tams. They help us work through this. There's no way any one person or even any company can be an expert on this. That's where Amazon need to get consultative. That's where SIs need to come in. But I'll tee up. That's where serverless really comes in because there's certain pieces that, as Andy talked about in the keynote, you know, Lambda is going everywhere. It's getting integrated into the environment. There's certain pieces of the stack that before I needed to choose my compute instance, I need to figure out how much memory I have to do all these kind of things. If I choose a certain layer of integration, Amazon's going to take care of those things underneath. So absolutely, they hear loud and clear that they want to simplify things. What was it? Last year, light sale was one of the big announcements. There's so many things. The spot instances had a huge growth to be able to drive down costs this year. So, I mean, dozens and dozens of features that Andy talked about this morning. Serverless, John, really massive wave. It's going to leave everything behind. Let's connect the dots, because there's a lot to talk about. We've got Werner Vogels keynote tomorrow. That should be really geeky and teching under the hood. But what Jassy's putting out there is a lot of the stuff you were mentioning. But also, he's got a wireless camera for facial recognition. They got transcribed, recognition, poly, Lex. So the sets of services that are new and new guard-like. And the use cases from this are interesting. There's a lot of different connective devices, so you see a little IoT. So they're kind of laying out, like, this is the landscape. You know, we're going to do stat casts for MLB and NFL. We got edge devices and databases for S3. The programming models, too, that the new assembly model, it's very modular. This is like the building blocks approach. I mean, it's not just the Lambda and the S3. You got cameras, wireless cameras that do facial recognition and... Right, because, John, I talked to a couple of customers that are doing serverless and they're working with Amazon. And it's like, oh, well, where do you think of serverless functions as a service? And they're like, well, really, I have, one customer was like, I have a bunch of my own services and I have APIs I write. And now I can have, it just call into various Amazon services. So it makes, John, the whole API economy that we've been talking about for many years, this is really, Amazon having this come to fruition. I should be able to write my own APIs. I can program to many of Amazon's APIs. Dave Vellante was here, I'm sure he'd be talking about API creep because there's so many pieces. But Amazon, Andy's saying we have everything of the best. I think a lot of he's trying to attack there. Many customers we talk to, they're going multi-cloud. What does that really mean? It's Amazon the primary. When are they using Google, Microsoft, Oracle, IBM? So there's so many pieces. But yeah. I mean, Stu, what's impressive to me is, I get called a fanboy all the time, but I just call as I see it, Amazon is crushing everyone else in my opinion. No doubt, there's no doubt about it. And when we get more data from Microsoft or Google, then we'll compare, but in Oracle, they're not even talking. So like they're hiding, they're building it again. There's tsunamis coming, the war is here. No doubt there's a cloud war and Microsoft is in it to win it. Google's hardcore, so this is going to game on. But what Amazon's doing is they're integrating new kinds of interactivity. You start to see Twitch more here. You see the NFL demo on stage that Andy did. The actual data they're getting from the sensors, they're integrating into the application. So yeah, Goldman Sachs never goes on stage and does a testimonial. The guy's basically given a love fest for Amazon. That's Goldman Sachs. Yeah. Okay, so you have new software models that are coming. This is something I think nobody's seeing. I think you talk to the hardcore dudes. The infrastructure is now with serverless, enabling creativity. And I think this renaissance is for real. You nailed something. It's Sandy Carter, who you know, you've had on theCUBE many times, joined Amazon within the last year. Talked about how Amazon, not just AWS, but Amazon is helping customers with the buzzword digital transformation. But how do you innovate? And it's not just Amazon web services. There's so many things that the broader Amazon portfolio you can tie into and absolutely it's impressive. Because customers always said, it used to be like, oh, how can I have a network that's kind of like Google's? Now how can I innovate like Amazon? Well, Stu, we go to all the shows. We didn't go to Oracle Open World this year. Again, they're kind of silent right now because they don't want to talk to the press because they're gearing up. You got Oracle. Microsoft's certainly very aggressive, more aggressive than Oracle. But Jassy's laying the line in the sand. So we're going to watch the new guard, old guard thing play out. Microsoft is absolutely moving the needle. They are coming up to Amazon. No doubt that they're in the sites in the rear view mirror. I think everyone else is really gearing up. You got Alibaba Cloud in China coming through the US. This is going to be exciting. The cloud game, it's got so much action and it's got the geeky under the hood and the sexiness of the applications too. I'm really super excited. Yeah, there's just so much information. Choose your category, choose where you're going. There is just no shortage. Everybody's geeking out. The big complaint is like, oh, there's too many people. If you go stand by, you have to go an hour ahead of time and it's still there and it's spread out. The ARIA and the MGM, there's all these things there. We're here at the heart of what used to be the one facility and now it's just spread out so much. So you really need to kind of choose your focus, dig on in and gosh, we got so many interviews. And Stu, we're going to want to wrap this up by saying the company that's behind us, you can't see or maybe you'll be able to see it in the shot, that's winning. That no one's talking about much because they're just winning is Intel. They sell more chips, they sell more compute. The compute game is where it's at. So you've got Intel kind of quietly under the surface and just this growth is only going to help Moore's law and everything else. Yeah, John, it's just like the old Intel inside. Amazon does more, they're buying more compute, whether that standard compute, it's containers or serverless at the end of the day, there's some Intel chips underneath almost all of it. Intel's not putting their strategy up, but it's clear to me through the observation and talking to them is that they're targeting the cloud as that new inside moment. They want to power the top clouds, they already are. They're kind of quietly keeping their nose clean and just having them head down and power all those clouds. They have a cube here, powering all the data here at AWS re-invent, I'm John Furrier, Stu Miniman, day two kickoff, more great coverage, stay with us. Two sets here in Las Vegas, we'll be right back.