 Hi everybody, welcome back to Reinvent 2022. This is theCUBE's exclusive coverage. We're here at the satellite set. It's up on the fifth floor of the Venetian Conference Center. And this is part of the global startup program, the AWS startup showcase series that we've been running all through last year and into this year with AWS and featuring some of its global partners. Ed Walters here is the CEO of Chaos Search, many-time CUBE alum, and Kevin Miller. There's also a CUBE alum, Vice President and GM of S3 at AWS, guys, good to see you again. Yeah, great to see you, Dave. Like Kevin, this is, we call this our Super Bowl, so this must be like your, I don't know, world cup. It's a pretty big event, yeah. It's the world cup, for sure. Yeah, so a lot of S3 talk, I mean, that's what got us all started in 2006, so. Absolutely. What's new in S3? Yeah, it's been a great show. We've had a number of really interesting launches over the last few weeks and a few at the show as well. We've been really focused on helping customers that are running mass scale data lakes, including whether it's structured or unstructured data. We actually announced just a few, just an hour ago, I think it was, a new capability to give customers cross-account access points for sharing data securely with other parts of the organization, and that's something that we'd heard from customers is as they are growing and have more data sets and they're looking to get more out of their data, they are increasingly looking to enable multiple teams across their businesses to access those data sets securely, and that's what we provide with cross-account access points. We also launched yesterday our multi-region access point failover capabilities, and so again, this is where customers have data sets and they're using multiple regions for certain critical workloads. They're now able to use that to fail, to control the failover between different regions in AWS. And then one other launch I would just highlight is some improvements we made to Storage Lens, which is really a very novel and unique capability to help customers really understand what storage they have, who's accessing it, when it's being accessed, and we added a bunch of new metrics. Storage Lens has been pretty exciting for a lot of customers, in fact. We looked at the data and saw that customers who have adopted Storage Lens, typically within six months, they saved more than six times what they had invested in turning Storage Lens on, and certainly in this environment right now, we have a lot of customers who are, it's pretty top of mind. They're looking for ways to optimize their costs in the cloud and take some of those savings and be able to reinvest them in new innovation. So, pretty exciting with the Storage Lens launch. I think what's interesting about S3 is that, pre-cloud object storage is kind of a niche, and then of course you guys announced S3 in 2006, as I said, and okay, great. Cheap and deep storage, simple, get put. Now the conversation's about how to enable value from data, analytics, and it's just a whole new world, and Ed, you've talked many times, I love the term, we built Chaos Search on the shoulders of giants, right? And so, the underlying that is S3, but the value that you can build on top of that has been key. I don't think we've talked about the shoulders of giants, but we've talked about how we really, we have a big vision, right, so hard to kind of solve the challenge of analytics at scale. We really focus on the big data coming in the environment and getting analytics. So, we talked about that on the shoulders of giants, obviously, I think Newton's metaphor of, I learned from everything before and we layer on top. So, Lily, when you talk about all the things coming from S3, I just smiled, because we picked it up naturally. We went all in an S3, and this is where I think you're going, Dave, but everyone is, so let's just cut the chase. So any of the data platforms you're using S3 is what you're building, but we did it a little bit differently. So at first people using cold storage, like you said, and then the ETL it up into a different platform for analytics of different sorts. Now how people are using it closer, they're doing caching layers and caching out, and that's where the attributes of a scale or reliability are. What we did is we actually make S3 a database. So, Lily, we have no persistence outside S3, and that kind of comes in. So, it's working really well with clients, because most of the thing is we pick up all these attributes of scale or reliability, and it shows up in the client's environments. And so, when you launch all these new, scalable things, we just see it. Like our clients constantly comment, one of our biggest customers, Fintech in Europe, they go to Black Friday. Again, Black Friday's not one day. And they lose scale from, what is it, 58 terabytes a day, and they're going up to 187 terabytes a day, and we don't flinch. And they say, how do you do that? Well, we built our platform on S3, as long as we can stream it to S3. So, they're saying, I can't overrun S3, and it's a natural play. So, it's really nice that, but we take out those attributes. But same thing, that's why we're able to, you know, help clients get, you know, really, you know, Equifax is a good example, maybe. They're able to consolidate 12 divisions on one platform. We couldn't have done that without the scale and the performance of what we can get at S3. But also, they saved 90%. I'm able to do that, but that's really because the only persistence S3 and what you guys are delivering. And then we really focus on shoulder giants. We're doing on top of that, innovating on top of your platforms and bringing that out. So, things like, you know, we have a unique data representation that makes it easy to ingest this data. Because it's kind of coming at you, four V's of big data. We allow you to do that, make it performant on S3. So, now you're doing hot analytics on S3, as if it's just a native database in memory, but there's no memory SSE caching. And then multi-model, once you get it there, don't move it, leverage it in place. So, you know, elastic search access, you know, Kibana, Grafana access, or SQL access with your tools. So we're seeing that constantly, but we always talk about on the shoulders of giants. But even this week, I get comments from our customers like, how did you do that? And most of it is because we built on top of what you guys provided. So it's really working out pretty well. And, you know, we talk a lot about digital transformation, of course. We had the pleasure of sitting down with Adam Salipsky prior, John Furrier flew to Seattle, sits down in his annual one-on-one with the AWS CEO, which is kind of cool. And yeah, it's good. It's like study for the test, you know. And so, but one of the interesting things he said was, you know, one of our challenges going forward is, how do we go beyond digital transformation into business transformation? Like, okay, that's interesting. I was talking to a customer today, AWS customer and obviously others, because they're a 100-year-old company. And they're basically, their business was, they're kind of like the Uber for servicing appliances. When your appliance breaks, you got to get a person to serve it. The service, if it's out of warranty, you know, these guys do that. So they got to basically have, you know, a network of technicians. And they got to deal with the customers, no phone. So they had a completely, you know, that was a business transformation, right? They're becoming, you know, everybody says they're coming to a software company, but they're building it, of course, on the cloud. So, I wonder if you guys could each talk about what you're seeing in terms of changing, not only in the sort of IT and the digital transformation, but also the business transformation. Yeah, no, I 100% agree that I think business transformation is probably one of the top themes I'm hearing from customers of all sizes right now. Even in this environment, I think customers are looking for what can I do to drive top line, or, you know, improve bottom line, or just improve my customer experience and really, you know, sort of have that effect where I'm helping customers get more done. And, you know, it is very tricky because to do that successfully, the customers that are doing that successfully, I think are really getting into the lines of businesses and figuring out, you know, it's probably a different skill set, possibly a different culture, different norms and practices and process. And so it's a lot more than just a tech, like you said, a lot more than just the technology involved. But when it, you know, we sort of liquidated it down into the data, that's where absolutely we see that as a critical function for lines of businesses to become more comfortable first off, knowing what data sets they have, what data they could access, but possibly aren't today, and then starting to tap into those data sources, and then as that progresses, figuring out how to share and collaborate with data sets across a company to, you know, to correlate across those data sets and drive more insights. And then as all of that's being done, of course, it's important to measure the results and be able to really see, is this, what effect is this having and proving that effect? And certainly I've seen plenty of customers be able to show, you know, this is a percentage increase in top or bottom line. And so that pattern is playing out a lot. And actually a lot of how we think about where we're going with S3 is related to, how do we make it easier for customers to do everything that I just described, to have to understand what data they have to make it accessible. And you know, it's great to have such a great ecosystem of partners that are then building on top of that and innovating to help customers connect really directly with the businesses that they're running and driving those insights. Well, and customers are challenged today. One of the things I loved that Adam said, he said, where Amazon is strategically very, very patient, but tactically we're really impatient. And then you got customers out there like, how are you going to help me increase revenue? How are you going to help me cut cost? We were talking about how off camera, how, you know, software can actually help do that. Yeah, it's deflationary. I love the quote, right? So software's deflationary. As costs come up, how do you go drive it? Also free of the team. And you nail it. It's like, okay, everyone wants to save money, but they're not putting off these projects. In fact, the digital transformation of the business, it's actually moving forward, but they're getting a little bit bigger. But everyone's looking for creative ways to look at the architecture and it becomes larger, larger. We talked about a couple of those examples, but like even like things like observability, they want to give this toolset, this data to all their developers, all their estuaries, same data to all the security team. And then to do that, they need to find a way in architecture to do that scale and save money simultaneously. So we see constantly people are pairing us up with some of these larger firms, like keep your data dog, keep your Splunk, use us to reduce the cost. That one-on-one is actually cheaper than what you have. But then they use it either to save money. We're saving 50 to 80% hard dollars, but more importantly, to free up your team from the toil. And then they turn around and make that budget neutral and then allow to get the same tools to more people across the org. Because they're sometimes constrained of getting the access to everyone. Explain that a little bit more. Let's say I got a Splunk or data dog, sifting through logs. How exactly do you help? So it's pretty simple. I'll use data dog example. So let's say you're using data dog for observability. So it's your developers, your estuaries managing the environments. All these platforms are really good at being a monitoring or learning type of tool. What they're not necessarily great out is keeping the data for longer periods, like the log data, the bigger data. That's where we're strong. What you see is like a data dog. Let's say you're using it for administrative to keep 30 days of logs, which is not enough. Like let's say you're running environment, you're finding that performance issue. You kind of want to look to last quarter in, last month in, or maybe last Friday. So 30 days is not enough, but they'll charge you $2.80, $2.80 a gigabyte. Don't focus on it, it's just $2.80. And then if you just turn the knob and keep seven days, but keep two years of data on us, which is on S3, it goes down to $0.22 plus our list price of $0.80, goes to $1.02 compared to $2.80. So here's the thing, what they're able to do is just turn a knob, get more data. We do an integration, so you can go right from data dog or a Grafana directly into our platform so the user doesn't see it, but they save money. A lot of times they don't just save the money, now they use that to go fund and get data dog to a lot more people. Makes sense? So it's a creativity, they're looking at it and they're looking at tools. We see the same thing with Grafana. If you look at the whole Grafana play, which is, hey, you can't put it in one place, but put permissives for metrics or traces. We fit well with logs, but they're using that to bring down their cost because a lot of this data just really bogs down these applications. The alerting monitoring are good at small data, they're not good at the big data, which is what we're really good at. And then the one-in-one is actually less than you paid for the one. So it works pretty well. So things are really unpredictable right now in the economy, you know, during the pandemic, we're kind of locked down and in the stock market went crazy, we're like, okay, it's going to end, it's going to end, and then it looked like it was going to end, and then last year it reinvented, it was just in that sweet spot before Omicron, so we tucked it in, which was awesome. It was a great event. We really missed one physical reinvent, which was very rare, so that's cool. But I've called it the slingshot economy. It feels like you're driving down the highway and you've got to hit the brakes and then all of a sudden you're going, okay, went through it, oh no, you got to hit the brakes again. So it's very, very hard to predict. And I was listening to Jassy this morning, he was talking about, consumers, they're still spending, but what they're doing is they're shopping for more features. They might be buying a TV that's less expensive, more value for the money, so okay, so hopefully the consumer spending will get us out of this, but we don't really know. And I don't know, we don't seem to have the algorithms, we've never been through something like this before. So what are you guys seeing in terms of customer behavior given that uncertainty? Well, one thing I would highlight that I think, particularly going back to what we were just talking about as far as business and digital transformation, I think some customers are still appreciating the fact that where yesterday you may have had to buy some capital, put out some capital and commit to something for a large upfront expenditure, is that today, the value of being able to experiment and scale up and then most importantly scale down dynamically based on is the experiment working out, am I seeing real value from it? And doing that on a time scale of a day or a week or a few months, that is so important right now because again it gets to, I am looking for ways to innovate and to drive top line growth, but I can't commit to a multi-year sort of set of costs to do that, so and I think plenty of customers are finding that even a few months of experimentation gives them some really valuable insight as far as is this going to be successful or not? And so I think that again, just of course with S3 and storage from day one, we've been elastic, pay for what you use, if you're not using the storage you don't get charged for it and I think that particularly right now, having the applications and the rest of the ecosystem around the storage and the data be able to scale up and scale down is just ever more important. And when people see that, like typically they're looking to do more with it, so if they find, you usually find these old department projects, but they see a way to actually move faster and save money, I think it is a mix of those two, they're looking to expand it, which can be a nightmare for sales cycles because they take longer, but if you were looking, well, why don't you leverage this and go across divisions? So we do see people trying to leverage it because there's still, I don't think digital transportation is slowing down, but a lot more, to be honest, a lot more approvals at this point for everything you do. A lot more focus on the cost and performance. You know, Adam had another great quote in his keynote he said, if you want to save money, the cloud's a place to do it. Absolutely. And I read an article recently, and I was looking through it and I said, this is the first time AWS has ever seen a downturn, because the cloud was too early back then, I'm like, you weren't paying attention in 2008 because that was the first major inflection point for cloud adoption where CFO said, okay, stop the CapEx, we're going to OpEx and you saw the cloud takeoff. And then 2010 started this amazing cycle that really I haven't seen anything like it where it was doubling down in investments and they were real hardcore investment. It wasn't like 1998, 99, it was all just going out the door for no clear reason. So that foundation is now in place and I think it makes a lot of sense and it could be here for a while where people are saying, hey, I want to optimize and I'm going to do that on the cloud. Yeah. No, I mean, obviously I certainly agree with Adam's quote. I think really that's been in AWS's DNA from day one, right? Is that ability to scale costs with the actual consumption and paying for what you use. And I think that certainly moments like now are ones that can really motivate change in an organization in a way that might not have been as palatable when it just, it didn't feel like it was as necessary. All right, we got to go give you the last word. I think it's been a great event. I love all your announcements. I think it's wonderful. It's been a great show. I love, in fact, how many people are here at reinvention? North of 50,000. Yeah, I mean, I feel like it was, it's as big if not bigger than 2019. People have said 2019 was a record when you count out all the, I don't know, it feels as big if not bigger. So, it's quite amazing and we're thrilled to be part of it. Guys, thanks for coming on theCUBE again. Yeah, thanks. Really appreciate it. Thank you so much. Thank you for watching. This is Dave Vellante for theCUBE, your leader in enterprise and emerging tech coverage. We'll be right back.