 From around the globe, it's theCUBE with digital coverage of AWS ReInvent 2020 sponsored by Intel, AWS, and our community partners. Everyone, welcome to theCUBE's live coverage of AWS ReInvent 2020 virtual. We're virtual this year. We are theCUBE virtual. I'm your host, John Furrier, Joe and Dave Vellante for keynote analysis. Andy Jassy just delivered his live keynote. This is our live keynote analysis. Dave, great to see you, Andy Jassy. Again, it's our eighth year covering ReInvent. Their ninth year, we're virtual. We're not in person. We're doing it. Great to see you, John. Even though we're 3,000 miles apart, we both have the COVID hairdo going. Happy birthday, my friend. Thank you very much. Congratulations. Five years ago, I was 15 and I had the cake on stage on the floor. There's no floor this year. It's virtual. And I think one of the things that came out of Andy Jassy's keynote is obviously, you know, I met with them earlier, telegraphed some of these moves, was one thing that surprised me. He came right out of the gate and he acknowledged that social change, the cultural shift that was interesting. But he went in and did his normal end-to-end slew of announcements, big themes around pivoting. And he brought kind of this business school kind of leadership vibe to the table early, talking about what people are experiencing, companies like ourselves and others around the change and cultural change around companies. And the leadership it takes for the cloud. This was a big theme of reinvent. Literally like, hey, don't hold on to the old. And I kept thinking to myself, David, you and I both are historians of the tech industry. Remind me of when I was young, breaking into the business, the mainframe guys and gals, they were hugging on to those mainframes as long as they could. And I looked at them like, that's not going to be around much longer. And they kept, no, it's going to be around. This is the state of the art. And then they extinct instantly. This feels like cloud moment where it's like, it's the wake up call. Hey, everyone doing the old way, you're done. This is it, this is a big theme. Yeah, so, I mean, how do you curate two and a half, three hours of Andy Jassy? So I tried to break it down into three things in addition to what you just mentioned about him acknowledging the social unrest and the inequalities, particularly with black people. But so I had market leadership and there's some nuance there that if we have time, I'd love to talk about the feature innovation. I mean, that was the bulk of his presentation. And I was very pleased to, I wrote a piece this weekend, as you know, we talk about cloud 2030. And my main focus was the last 10 years about IT transformation, the next 10 years are going to be about organizational and business and industry transformation. I saw a lot of that in Jassy's keynote. And so, you know, where do you want to go? We've only got a few minutes here, John. But let's break down the high level theme before we get into the announcement. The thematic part was, it's about reinventing 2020. The digital transformation has been forced upon us. Either you're in the cloud or you're not in the cloud. Either way you got to get to the cloud for to survive in this post COVID error. You heard a lot about redefining compute, new chips, custom chips. They announced a deal with Intel, but then he's like, we're better and faster on our custom side. That was kind of a key thing, this idea of compute. And I think that comes at the play with edge and hybrid. The other thing that was notable was Jassy's almost announcement of redefining hybrid. There was no product announcement, but he was essentially announcing hybrid is change. And he was leaning forward with his definition of redefining what hybrid cloud is. And I think that to me was the biggest signal. And then finally, what got my attention was the absolute overt call out of Microsoft and Oracle and, you know, subtly behind the scenes on the database shift. We've been saying for multiple times, multiple databases in the cloud. He laid that out and said, there will be no one thing to rule anything, no databases. And he called out Microsoft. If you look at Microsoft, some people like cloud wars, Bob Evans, our good friend, claims that Microsoft's been number one in the cloud for like year. And it's just not true, right? It's just not number one. He uses revenue as the benchmark. And if you look at Microsoft's revenue, bulk of it is from propped up from Windows server and SQL server. They have GitHub in there, that's new. And then a bunch of professional services and some IaaS and PaaS. If you look at true cloud revenue, there's not much there, Dave. They're definitely not number one. And I think Jassy kind of throws a dagger in there with saying, hey, if you're paying for licenses more on Amazon versus Azure, that's old school shenanigans or sales tactics. And he called that out. That to me was pretty aggressive. And then finally, just COVID management stuff, democratizing machine learning. Let me pick up on a couple of things. There actually were a number of hybrid announcements. ECS anywhere, EKS anywhere, so Kubernetes anywhere, containers anywhere, smaller outposts, new local zones. They announced 12 new cities, including Boston. And then Jassy rattled them off and made a sort of a joke to himself that you may as I remembered all 12 because the guy uses no notes. He uses amazing, he's up there for three hours, no notes. And then new wavelength zones for the 5G edge. So actually a lot of hybrid announcements, basically to your point, redefining hybrid, basically bringing the cloud to the edge of which he kind of redefined it. The data center is just sort of another edge location. Well, I mean, my point is that he actually said, it needs to be redefined and he kind of paused there and then went into the announcements. And I think it's funny how he called out Microsoft. I was just saying that, which I think was really pivotal. We're going to dig into that Babelfish open source thing, which could be complete competitive strategy move against Microsoft. But in a way, Dave, Jassy's pulling and Amazon's pulling the same move Microsoft did decades ago. Remember, embrace and extend, right? Bill Gates' philosophy. This is kind of what they're doing. They've embraced hybrid. They've embraced the data center. They're extending it out. You're seeing outpost, you see 5G, you're seeing these IoT edge points. They're putting Amazon everywhere. That was my takeaway. They call it Amazon anywhere. I think it's everywhere. They want cloud operations everywhere. That's the theme that I see kind of bubbling out. And they're saying, hey, we're just going to keep doing this. Well, what I like about it is, and I've said this for a long time now, that the edge is going to be won by developers. And so they're essentially taking AWS and the data center is an API and they're bringing that data center as an API virtually everywhere, as you're saying. I want to go back to something you said about leadership and Microsoft and the numbers, because I've done a lot of homework on this, as you know. And so, Jesse made the point, he makes this point a lot, that it's not about the actual growth rate. Yeah, the other guys are growing faster, but we're growing from a much larger base. And I want to share with you a nuance, because he talked about how AWS grew incrementally 10 billion and only took them 12 months. I have quarterly forecast, and I've published these on Wikibon and SiliconANGLE. And if you look at the quarterly numbers, and now this is an estimate, John, but for Q4, I've got Amazon growing at 25%, that's year on year. Azure growing at 46% and Google growing at 58%. So Google and Azure much, much higher growth rates than Amazon. But what happens when you look at the absolute numbers from Q3 to Q4, Amazon goes from 11.6 billion to 12.4 billion. Microsoft actually stays flat at around 6.7, 6.8 billion. Google actually drops sequentially now. I'm talking about sequentially, even though they have 58% growth. So the point that Jess is making is right on. He's the only company growing at half the growth rate year on year, but his sequential revenues are the only of the big three that are growing. So that's the law of large numbers. You grow more slowly, but you throw off more revenue. Who would you rather be? I think, I mean, it's clearly that Microsoft's not number one, Amazon's number one cloud. Certainly infrastructure as a service and pass, major themes in the analysis. We won't go through and we'll dig into the analyst sessions. We come at two o'clock and three o'clock later, but they're innovating on those two. They won that. I would call this member, Jess, who says, oh, we're in the early innings. Inning one is IaaS and pass. Amazon wins it all. They ran the table, no doubt. Now, inning two in the game is global IT. That was a really big part of his announcement. People might have missed that. If you're blown away by all the technical and complexity of GP three volumes for EBS and Aurora serverless V2 or Sage maker, feature store and data wrangler, elastic, all that complex stuff. The one takeaway is they're going to continue to innovate on IaaS and pass. And the new mountain that they're going to climb is global IT spend that's on-premises. Cloud is eating the world and AWS is hungry for on-premises and the edge. You're going to see massive surge for those territories. That's where the big spend is going to be. And that's why you're seeing a big focus on containers and Kubernetes and this kind of connective tissue between the data machine layer, modern app layer and full custom IaaS on the bottom stack. So they're kind of just marching along to the cadence of Andy Jassy's view here, Dave, that, you know, they're going to listen to customers and keep sucking it in to Amazon. And pushing it out to the edge. And we've said it on theCUBE many years, the data center is just a big edge. And that's what Jassy's basically saying here in the keynote. Well, and when Andy Jassy gets pushed on, well, yes, you listen to customers, you know, what about your partners? You know, he'll give examples of partners that are doing very well. And of course we have many. But as we've often said in theCUBE, John, if you're a partner in the ecosystem, you got to move fast. There were three interesting feature announcements that I thought were very closely related to other things that we've seen before, the high performance elastic block storage, if we get the exact name of it, but it's sand in a cloud, the first ever sand in a cloud. It reminds me of something that Pure Storage did last year at Accelerate. So very, very kind of similar. And then the AWS Glue elastic views, it was sort of like Snowflake's data cloud. Now, of course, AWS has many, many more databases that they're connecting, you know, Snowflake has one, but the way AWS does it is they're copying and moving data and doing change data management. So what Snowflake has is, what I would consider a true global mesh. And then the third one was QuickSight queue. That reminded me of what ThoughtSpot's doing with search and analytics and AI. So again, if you're an ecosystem partner, you got to move fast and you got to keep innovating because Amazon's going to do what it has to for customers. I think Amazon's going to have their playbooks when it's all said and done, do they eat the competition up? I think what they do is they have to have the match on the Amazon side. They're going to have a game and play and let the partners innovate. They clearly need that ecosystem message. That's a key thing. Love the message from them. I think it's a positive story. But as you know, it's Amazon's, this is their Kool-Aid injection moment, Dave, it's educational or AKA, their view of the world. My question for you is, what's your take on what wasn't said? If you were in, you know, as we're in the virtual audience, what should have been talked about? What's the reality? What's different? What didn't they hit home? What could they have done? What's your critical analysis? Well, I mean, and I'm not sure it should have been said, but certainly what wasn't said is the recognition that multi-cloud is an opportunity. And I think Amazon's philosophy or belief at the current time is that people aren't spreading workloads, the same workload across multiple clouds and splitting them up. What they're doing is they're hedging bets. Maybe they're going 70, 30, 90, 10, 60, 40. But so multi-cloud from Amazon standpoint is clearly not the opportunity that everybody who doesn't have a cloud or also Google who's distant third in cloud says is a huge opportunity. So it doesn't appear that it's there yet. So that was a, I wouldn't call it a miss, but it's something that to me was a takeaway that Amazon does not currently see that as something that customers are clamoring. There's so many threads in here we're going to unpack. I mean, Andy does leave a lot of, you know, signature stories at lines in there, tons of storylines. You know, I thought one thing that that must Amazon's going to talk about this is not something that promotes product, but trendalize, I think one thing that I would have loved to see more conversation around is what I call the snowflake factor. Snowflake built their business on Amazon. I think you're going to see a tsunami of kind of new cloud service providers come on the scene, building on top of AWS in a major way of like that kind of value. I mean, snowflake went public to the level of no one's ever seen ever in the history of NYSE. They're on Amazon. So I call that the next tier cloud scale value. That was one thing I'd like to see. I didn't hear much about the global IT number penetration, love to hear more about that. And the thing that I would like to have heard more but Jassy kind of touched a little bit on it was that he said at one point and when he talked about the verticals that there's horizontal disruption. Now you and I both know, we've been staying on the queue for years. It's horizontally scalable, but vertically specialized with the data. And that's kind of what Amazon's been doing for the past couple of years and it's on full display here. Horizontal integration value with the data and then use machine learning with the modern applications. You get the best of both worlds. He actually called that out on this keynote. So to me, that is a message to all entrepreneurs, all innovators out there that if you want to change the position in the industry of your company, do those things, there's an opportunity right now to integrate with the cloud to disrupt horizontally but then own the vertical. So that'll be very interesting to see how that plays out. And it's interesting you mentioned Snowflake and I was talking about multi-cloud. Snowflake talks about multi-cloud a lot but I don't even think what they're doing is multi-cloud. I think what they're doing is building a data cloud across clouds and they're abstracting that infrastructure. And so to me, that's not multi-cloud as in, hey, I run on Google or I run on AWS or I run on Azure. I'm abstracting that, making that complexity disappear and I'm creating an entirely new cloud at scale, quite different. Okay, we got to break it there, cut back into our programming. This is our live portion of CubeLive and EKS everywhere, Dave, that's multi-cloud. If they won't say it, I'll say it for them. But here we go. More live coverage from here at Reinvent Virtual. We are Virtual Cube, I'm John Furrier, Dave Vellante, we'll be right back.