 Live from the Sands Convention Center in Las Vegas, Nevada, it's theCUBE at AWS ReInvent 2014. Brought to you by headline sponsors, Amazon, and Trend Micro. Okay, welcome back everyone. We're bringing the energy here day two. Man, this show is brutally awesome. It's just great fun energy. This is theCUBE. We're live at the Sands Convention Center. This is theCUBE. We're live at the AWS ReInvent. I'm John Furrier with Stu Miniman. We're here to extract the studio from the noise. Our next guest is Barry Russell, head of Amazon Marketplace, Amazon Web Services Marketplace. Welcome to theCUBE. Thank you. You know, bringing the energy meant just this nonstop action. Yeah, it's been constant. I mean, between this slew of announcements, great guests we've had here on theCUBE. One of the big announcements here was just more and more innovation on Marketplace in terms of momentum, partners. We actually talked about the intelligence community yesterday with Teresa. What's going on with the Marketplace? Give us a quick update. Is it hard to get on? Is someone's watching and they want to buy from the Marketplace? Get on. Yeah. Obviously Informatica's now fully in on the Marketplace. Not hard to get on. We've done a couple of things this year. First, we continue to innovate for customers. We've added a couple of key features. In particular, we continue with our free trial program. Enables a customer to run a production version of the software as a free trial for a period of time. And then seamlessly migrate to purchasing and paying for the software. And then we also added a feature both for customers and vendors that are on the Marketplace, which is annual subscription pricing. And the neat thing about that is it allows a customer to run a product for a couple three or four months. And then if they deem that the product no longer meets their needs to run hourly, they can seamlessly migrate to an annual subscription. As far as vendors listing, we've got a pretty straightforward process. They create a machine image for us, an AMI, Amazon Machine Image. They give that to our catalog team. We do some testing on it for product vetting and security. They give us a description of their product, a rate sheet in terms of how they want to price, whether it be hourly, monthly, or annual. We publish that product. We put it into a limited state. Everybody checks it out to see if it's good to go. And in 30 days or less, the vendor's up and running on the Marketplace. And then there are products available worldwide across AWS to customers. So Barry, I heard that one of the stats was it's 1,900 listings across 23 categories. Can you show us a little bit of the inner workings? How big is your team? How do you manage those relationships? What kind of analytics? Is it just data that manages everything or is there kind of the belly-to-belly relationship with those 1,900 listings? It's 1,900 and growing. We plan on adding many more. I'm sure while we've been talking more, we're at it. Yeah, we've been adding more. And a lot of partners approached us interest from the keynote about Marketplace and from the announcement of the Intelligence Community Marketplace that we made. The process is somewhat automated in terms of a vendor getting on to the Marketplace. And the team is really divided into a couple of pieces. There's a business development team that I run. And they're responsible for working with the vendor, doing upfront technical vetting of the product, working with them on contracting and go to market plans before they launch the product. And then we have what's called a seller and catalog operations team. And once my team gets an AMI, that machine image, from a vendor, they hand that over to that catalog team. And that catalog team works with the vendor on a defined process to get the product published as quickly as possible. So it's a fairly seamless back and forth, typically done in face-to-face email and phone communication. And then with a defined process, we use a publishing catalog and a publishing pipeline to queue up products that are ready to go. All right, so is there any incentives that you give them to, how do you make sure that people buy it through the Amazon Marketplace and not some of the other places out? And are there any assurances that you're not competing with them on some of these pieces? How do those dynamics work? Well, on the latter question, the products that are sold in the Marketplace today are sold by the vendor, the partner that the vendor chooses to sell those products. In terms of how we go about ensuring that we do the right thing for partners and incent people to buy there, there's a couple different approaches and it comes from two points. First, we work with partners to run go-to-market programs and marketing campaigns. Some of those are generated by themselves. Others, we run with AWS. For example, we just ran a storage software campaign with AWS marketing, where we promoted storage vendors that were in the Marketplace and helped educate customers on use case. And then on the other side, we do a lot of our own marketing to drive traffic from some of the broader search engines into Marketplace, particularly when customers go into a search engine or are searching for a particular type of product. Security, business intelligence, application monitoring, network infrastructure, media and entertainment, those types of things. So it's a two-pronged approach to drive traffic to their listing page. So on the business model, we hear a lot of people nervous about the Marketplace. I mean, we actually interviewed Informatica and they kind of got over that first wave of fear. Wait a minute, I make so much money selling direct. I have a huge site license and I end up in a classic enterprise or licensed software. Why would I go to pricing it on the cloud? So okay, I can see the baby fear, not an early adopter, they want to see some movement. How do you talk to that customer out there? It's okay, here's the traction we have and here's why it's going to be safe. The bridge is secure. You must run into this all the time, I can imagine the fear of change. We do, there are a lot of mature sales models out there for software and this model is new, particularly charging by the hour for software. That's a new thing. One of the things that we do is work with the vendor and their sales team to help integrate them with the AWS field and we pursue opportunities in a lot of cases together where there's an AWS service component as well as a vendor's software. The other thing that we've been educating vendors on and sharing data with them is how quickly customers are buying in the marketplace and I'll give you an example. We have a software vendor in the marketplace named SoftNAS and they're a startup. We interviewed them yesterday. There's a classic example of a company that's young in their life cycle. Traditionally, a couple enterprise deals a year might be good for them and what happens on the marketplace is we know just last month, four enterprise deals, four Fortune 500 deals closed in less than 30 days because of the friction that we're removing from the discovery, the buying and the deployment process on marketplace. And talking with a vendor like Informatica, we simply want to educate them and let them know that we can help their sales teams accelerate deals much faster by removing a lot of the friction for the customer. So where a rep may have closed a couple of deals a year in the past, our theory is that we can help increase that by X percentage. I was talking with Carl Vandiver from TIPCO and formerly Jastersoft and I think he nailed it because you bring up one aspect of it, look at sales, just speaks for itself. So you just do the math on that. That's an easy one. And for new companies, it's easy. But what he nailed was they just helped the product positioning. They just said, okay, I'll go direct with the mega features and they just throttle back some of the features in the cloud and it's a beautiful upgrade. So they're getting net new business by going to the cloud. So all I did is just do the product tweak. It can be, that's one approach. And another approach is we do have vendors that put full featured products in and what they find is they pick up incremental net new business that their sales teams might not have touched, customers they didn't get to. Or they pick up business from inside of a large customer they're already doing business with but just didn't get to that business group. Or I want to eliminate the sales team altogether. That's a huge cost to it. I mean, if you're born in the cloud, you can say, okay, I'll go to Barbara with AWS and I can not have a huge sales team. I could have managers. And you know what else? It really allows for the sales person to get the customer using the product very quickly. You can literally have a customer launch a POC the same day, run it for a few weeks and then seamlessly move to production without changing at all. The new slogan will be standing up sales with Amazon Marketplace. So that's a great tool. Thanks for coming on theCUBE. Appreciate it. Thank you so much for all the software that's available at a one-click button. Great product. We'll be right back on theCUBE after this short break. More action here live at Reinvent at theCUBE. We'll be right back.