 Live from Las Vegas, it's theCUBE, covering AWS re-invent 2017, presented by AWS, Intel, and our ecosystem of partners. Hello everyone, welcome to day three of exclusive CUBE coverage here at Las Vegas for live coverage of AWS re-invent 2017. This is theCUBE's fifth year covering AWS re-invent and what a transformation's been. Rocket ship growth, they got the tiger by the tail, full speed ahead, they're not looking in the rear view mirror. This is the mojo of Amazon web services. They're kicking ass and taking names, as we say here in theCUBE, but really they're changing the game. A lot of game-changing announcements, architectural re-engineering, re-imagining the future is really what they want, and they're trying to be everything to everyone. And of course that's always hard to do. I'm John Furrier with Stu Miniman on our kickoff of day three, breaking down Werner Vogel's keynote, as well as kind of a review of what's been going on in the past few days. There is a lot of signal here. There's almost a noise around the signal, meaning there's so much good content, it's really hard to get hold of Stu. Great, great to kick off day three. Rested, didn't go out late last night, went to bed by 10. I know you stayed out until three in the morning, but... Hoping my voice can hold up for another day in Vegas. John, good to see you, and I'm really excited. 3,951 announcements since the first re-invent. We're going to go through every one of them. No, no, no. Werner Vogel's, it was interesting because he's like, oh, we'd been told ahead of time, it's not going to be announcement heavy. Of course, there's some really awesome announcements. You know, I hate, we sound like fanboys sometimes, but, you know, Alexa for business, you know, the serverless marketplace, some really good segments from, you know, Netflix. They were just talking about iRobot, somebody I had on theCUBE earlier this year. But, you know, Werner really kind of stepping back. Some people were like, what is this? A kind of computer science 101, but it's no. Here's how you architect the future. Here's how Amazon's going to fit everything from how voice is going to be a major interface to a theme that I've really liked. We've been covering for a number of years. You know, the digital future is not robot taking of the world, but how do I take people and technology, put them together to really create, you know, that explosive future? Because even the things like machine learning, the things that I've been talking to the people really in this environment is how are we going to train the people that are going to put these things together? It's not just, you know, something that just runs off by itself. And we had Sanjay Poonan who's the CEO of VMware, not CEO, that's Pat Gelsinger. But he kind of pointed out something that I want to bring up here, which is Andy Jassy and the team in Amazon are highly competent and they're executing. But, Stu, they're not just executing on the technical prowess, they're kicking ass on the technology. Certainly, I want to have a longer conversation with you about that. But they're really hitting some real high notes on societal change. So, if you look at what Amazon enables, both the startup level and the business transformation, even in the public sector with Theresa Carlson, who we'll have on later, they're enabling a new way to reimagine how they solve problems that never could be solved before. Two, they're kind of on the right vectors and it's causing some competitive ripples. Just today in the news, you can see stories out there in the Wall Street Journal and other places where Apple's partner at Stanford University has solved heart disease with the iWatch. Google's folding Nest back into the hardware division as pressure because their playbook's not working because Amazon's kicking their ass on Alexa and you got Siri. Google's fumbling on that point. They're trying to figure it out. So, you're seeing the forces start to line up in this new era of competing on value, competing on software, competing on community and open source. Amazon has the right formula. If they keep this up, Microsoft and Google will not be able to catch them. And that is so obvious. So, until Amazon makes a misfire, which they have not yet, I mean they experiment, but they're solid track record, we're going to call as we see it. But calling balls and strikes right now on the cloud game, there is not even a close second place. Yeah, so John, I've been searching for a word. We used to talk about a platform that you built or the marketplace or the ecosystem that we have around here. Amazon is enabling new things. The new AWS marketplace, enabling anyone really to go in there, really could do for cloud and technology, what Amazon.com helped do for retail and business. You know, I'd say look, not every single one of the features that Amazon had is leaps and bounds ahead of what a Google or Microsoft has. I know you've done lots of reporting on the machine learning and everything happening, you know, even Facebook and the like going in there. But, you know, Amazon absolutely is in a class by itself and it's still, you know, in our fifth year coming here that they impress and they continue to keep up. Let's dissect the competition. Let's lay it all out. To me, the top three are no doubt Amazon and then way distant second place, Microsoft. And then third on technology and then kind of all kind of clustered like a NAS card, a bunch of NAS card clusters all trying to figure out what to do is Oracle, IBM and everybody else. Okay, so hold on, you didn't mention Google, you didn't mention Alibaba. I mean, sorry, Google would be third. Alibaba would be four, but they're US presidents. They're from number four by sheer China volume. But Amazon's business in China has grown. They just cut a deal with China. So we're going to see that play out. We'll see, but Alibaba is a force we reckon with as well as Tencent and Baidu and all those other platforms. But here's the deal, you can't be a pure play anymore. Look at Google, the search engine business, they're milk on that cow dry, but the thing is is that the business is shifting. So I think Google of all the competitors probably has the best chance to accelerate because I think innovation has to be at the heart of that accelerated leadership position. Two, culture. The culture of solving not just tech problems too. And this is where I think Amazon, no one's really kind of unpacked this, is that if you look at Intel, for instance, they always have great tech and they always do good things. Amazon's kind of doing the same thing. They're solving societal problems, and but they're kicking ass on the business front. Google has that DNA, it's just not organized into the machinery. Yeah, I mean, John, we know Google has amazing technology, really good talent, we think like Google Spanner, oh my God, this is amazing. The thing we'd say is there's things that Google comes out with and it's like, wow, this is really cool. I really need to think about a while, how can I do it as opposed to most of the announcements you hear in the sessions. People are like, oh my God, I can't believe Amazon did this, I can immediately take this, I can change the way I'm doing something, I can increase my agility, I can make my, how I just do my entire business different, better. Yeah, and so Stu, I bring up the Alibaba comment, I want to bring that back in because one of the things that Amazon's doing that Alibaba is kind of copying, I won't say copying, but emulating is this notion of craftsmanship. If you look at the past 10 years, the programmer culture, the Y Combinator, the agile, lean startup kind of mindset, you look at a loss in craft in software development. Software development used to be a craft, you build software, we had a CUBE alumni from Apple that talked about, you build a shrink-wrap product, you ship it, you QA, you ship it, but you don't know what's going to run. But in the agile you're shipping, you're shipping, oh, shipping, it kind of takes the craft and the artisan out of it. Yeah, US could be cool, but I think now you're going to start to see a swing back and whoever, whichever cloud can bring that artisan kind of craft and blend the open source kind of community model to me will be the winning formula because that will change the game on these new use cases, the new user expectations, the new user experiences. And John, that's exactly what Werner was talking about in his keynote is this is how we're architecting the future. Everybody needs to be thinking about security. One of the critiques I saw is like, oh well, you need to think about everything up and down the stack. It's like, everybody needs to be the unicorn, full stack developer, understand security, be on top of serverless, do all this. Well, look, that's asking a lot as to not everybody's going to be able to do everything. Amazon might be everything is everything, but we need to be under, understand, how do we take the vast majority of enterprises out there and move them along? I loved, Keith Townsend and I did an interview with Chris Wolf from VMworld, from VMware here at the show. And Keith said, you know, VMware used to move at the speed of the CIO. Amazon's moving way faster than the CIO. How do we help the enterprises move faster? And it's tough, every customer I talk to- I mean, we heard Intel saying they're moving faster than Intel. So, I mean, Intel has to get in these reference architectures. So, with FPGNAs and these new technologies, they have to accelerate and keep pace. But I think the Werner Vogels keynote here is kind of historic to do, and you brought this up before we came on was that he was not going to do a lot of announcements. Although he did launch Alexa for Business on the Lambda services all in on that area. He kind of did a throwback to five years ago, or six years ago when he did his first keynote here, when he talked about the new architecture and re-imagining it. So, but he took a modern version of what he was talking about then. And I think that highlights the Amazon greatness, but also their challenge. The one thing I'd be critical of Amazon is, well, two things. One is, I mentioned yesterday, Andy Jassy shouldn't be putting gardener slides in a new guard presentation because they're old guard, but that's one thing. But what they're doing with the sales motion, it's hard. They have to convince customers and show them the new way. So what Werner painted the picture of is, this is how we're thinking. This is how you should be thinking customers. You have to re-imagine what was traditional architecture and think about it in a completely different way, which will change ultimately software methodologies, the life cycle of Agile, and hopefully bring in some value-oriented craftsmanship and artisan. Yeah, John, so this reminds me of many of the waves we've seen throughout our careers. The customers, when they get in this ecosystem and they really start using it, they get religion. And number one advice I hear from a lot of the companies I talk to, say, talking to your peers, what would you say? Say, get on it faster and really just dive in. It's like, yeah, you start with one application, but get off the old stuff as fast as you can. Get on this because when you have access to all of these services, it just transforms your business. You can get these changes in these services into more pieces of the organization. John, we haven't brought up, does IT matter? What's the role of IT in this versus the business lines and the developers? IT radically changing. Amazon looking to change that model. They are, I mean, there's no doubt. This show is kind of the final exclamation point on the fact that not only was it a collision course, it has absolutely happened. IT and Amazon have come together in a massive collision and there's going to be carnage to it. There's going to be people lying on the side of the road. It's a question for you. I heard there's some people that like, this is the industry's biggest infrastructure show. And I'm an infrastructure guy by the back of my mind. I take, I don't think this is not an infrastructure show. This is really about business. Absolutely, there's technology. Somebody I love that said, CES, this is now EES. This is the enterprise. Well, I mean, we're going to have Theresa Carlson on. It's, you know, it's all digital, right? I mean, it's a digital culture because their public sector business is booming. It's not just the enterprise. They nailed the startup. They nailed the elastic cloud check. Tom Siebel pointed out yesterday. And what they're nailing now with IT is they are becoming the lever, the catalyst for IT transformation at price points and functionality never seen before. And it's mind boggling. Google's got to reorganize because they can't compete with Alexa, right? Or things of that nature. So then you got the public sector, the government and then global, regional, China, Europe, huge issues. So they're winning. I mean, to me, this is a huge new thing. And why I ran it on the Gartner slide that Jassy puts up is, Amazon is the new guard and they're putting up old guard metrics. So Stu, this is not an infrastructure as a service, magic quadrant. So the question that we share is what are the new guard metrics? My opinion, no one's developed it yet. How would you define a modern metric for who's winning and who's losing? Because if you say number of customers, Oracle has a lot of customers, IBM's got a lot of customers. Yeah, so John, Amazon's leading the Vanguard and helping customers through digital transformation. I don't know how to measure that yet, but absolutely, they're the ones that are doing this. It's not a product centric. It's about the mindset and how we build things. I've really loved this week talking about how real is serverless and really that land is getting embedded everywhere. It's not about a product and oh hey, you're only going to pay for it by the microsecond and it's 90% cheaper. No, no, no, it's about the triggers and the APIs and just integrating into the way I can build things faster. Yes, I can really get benefit out of microservices. That serverless application repository that Werner talked about. I mean, we got really excited when we got for containers like the Docker Hub. We had, in virtualization, we had the same way we could get kind of standard images out there. Serverless application repository is going to do the same thing for serverless. Is there lock-in from AWS Lambda? How much is there going to be standards that come in? The CNCF next week is going to be digging into that. Is there a cost reduction or is there a cost increase? These are questions. All right, so final question for you. I know we got to move on to our full day here, but Stu, you study, you do the hallway conversations. You read all the influencer events. How do you connect the dots between Andy Jassy's keynote and Werner's? Where is the dots connecting? What is jumping out at you? Obviously Lambda, but what are the highlights from your perspective that you see just jumping out the Amazons connecting and trying to present? Yeah, so we always used to say it was like, okay, as day one developer and day two enterprise, we're starting to see those lines blur. As the enterprise, we are still early in kind of the massive adoption there, but that's where it's coming together. There's lots of excitement, but as we talked about the continuum, we know we have bare metal, we have instances, we have containers, we have serverless, and the enterprise is starting to drop that. I know there's a Sumo Logic report you've been quoting, and we've been getting data out. And it came on yesterday. Absolutely, so good data there. New Relic had some good reports digging into this, so the wave changes happening faster than ever, and Amazon is the lead horse in driving this change throughout the industry. And don't forget Intel. Intel's just minding their business, just watching all these compute requests come in. I mean, as more compute comes out, Intel just is a rising tide, and you know, there are a big boat in the harbor there. Absolutely. All right, I'm John Furrier, Stu Minion, breaking down day three of theCUBE, day three here. We've actually started on Sunday night at midnight. A lot of great action, a lot of great analysis. Of course, check out our new Twitch channel, so twitch.tv slash SiliconANGLE, twitch.tv slash theCUBE, two new channels, or one rebooted channel, one new channel. And of course, thecube.net, we're on YouTube, so check out our Twitch and join our community if you're a gamer. Back with more live coverage here live in Las Vegas for AWS re-invent after this short break.