 Live from the Javits Center in New York City, it's theCUBE, covering Inforum 2017. Brought to you by Inforum. Welcome back to theCUBE's coverage of Inforum. I am your host, Rebecca Knight, along with my co-host, Dave Vellante. We're joined by Terry Wise. He is the Vice President of Alliances for AWS. Thanks so much for coming on the program again. It's great to be here. Yeah, thanks, you see him. So we are now a few years into this relationship with Inforum. Where are we? We're, put things in perspective for us. That's a great question. I think in some respects, this is arguably the most mature and strategic relationship we have. We've been working with Inforum for, I've been at Amazon now nine years, and the better part of my nine years, we've been working with Inforum, in the early days it was awesome before Infor bought the company. And they've always done a great job of pushing us to be more enterprise centric, more innovative in our platform and services. So it's very mature from that perspective. But I'd say also at the same time, we're just entering a whole new day. It's, we like to call it day one at Amazon. If you look at some of the things that Charles and the team announced today with Coleman and some of the new functionality and the growth of the cloud, I mean, we really are still at the early stages of this relationship, which is exciting. You know what was interesting to me, Terry, is Andy always talks about the flywheel. He was sort of the first to use that terminology. And I was sitting in the analyst meeting yesterday and Infor was going through its architecture. And I just saw a lot of flywheel in there. I mean, there was DynamoDB in there. I certainly saw S3. I think there was Kinesis in terms of time series stuff. I think I saw Redshift in there. And so I wonder if you could talk about how this company specifically, but generally how people are leveraging that flywheel of innovation to drive value for their customers. Yeah, and again, I think this goes back to the relationship we've had with Infor for so many years. It's, you know, cloud is not just about cheap compute and storage. It's really about platform and innovation that comes from that platform. And partners and customers like Infor that have been with us a while and they've got the skill sets internally. They've got great vision for they want to take their customers with application functionality. They're really ripe to be able to take advantage of all of the innovative platform services we've built. Kinesis, Lambda for serverless computing. We're talking about some neat things around Edge. You've heard Charles in Duncan today talk about Lex and some of the AI capabilities we have that are underpinning Coleman and some of their new offerings. So they really are kind of the poster child for adopting our new services and driving innovation on top of our platform for their customer base. So we're, if you can look into your crystal ball a little bit, where will we be a year from now, three years from now from, with these technologies? So if I look out a year, I think, you know, rapid global expansion. You know, we're long past in many respects sort of the early questions around cloud. Is it secure? Is it cost-effective? Is it robust and reliable? And we're really past that if I look across the globe. And now it's a question of how can we help enterprises adopt faster? And that's really probably the single biggest question I get from enterprise customers is, this is great, help me move quicker. And I think one of the neat things about the info relationship is because they've packaged all of this innovation into a set of business applications. They're actually helping customers move to the cloud quite a bit faster and get that great value prop of cost efficiency, security, innovation, et cetera. Looking out three years, I think Duncan and the team did a very nice job today talking about the interaction and user experience of how you're going to engage with business software moving forward. It's going to be very voice driven. It's going to be predictive in nature. So it's actually going to tell you what you need to think about versus going to a terminal or even a mobile device. So much left to do in that space. But I really do think three years from now, machine learning won't be a buzzword, normal artificial intelligence. It'll just be a bigger part of our daily lives. We were talking to Chip Coil a little bit about trying to debunk some of the myths in cloud, specifically Amazon cloud. And I mentioned Oracle saying that core enterprise apps really aren't going to the cloud. That's why you need Oracle. And they've got a strategy to do that. You've seen it. But then you see in four, 55% of their businesses in your cloud. They look like core enterprise apps. So is it, my question is help us debunk that myth, but is it narrowly confined to companies like in four or other examples of others? I mean, certainly there are companies. You guys have the unbelievable logo chart, but when you peel back the onion, many of those apps are cloud native or emerging apps. But those core of enterprise apps, we're seeing it from in four. I wonder if you could add some color to that and are there other examples? Absolutely. I mean, I think there's others in the market that may be uncomfortable with the change that's happening with cloud and therefore might be incented to try to slow that down. But I would say the vast majority of all software companies we're engaging with are moving mission-critical enterprise apps to AWS, some built natively and SaaS like in four has done. Others that are enabling certifying their applications. SAP is another good example. You can kind of go across the stack, Adobe, Autodesk. There's just Siemens PLM for product lifecycle management. I mean, if you think about, that's putting companies core IP, the product development into the cloud to take advantage of all of this agility scale and cost savings, et cetera. So it's been happening for a long time. DeSau is another great one, very innovative but somewhat conservative French company. They were very early on in the journey with us. And again, that's IP used to design airplanes, the things we fly around in. So it's been happening for a long time. It's accelerating. And I would say the other trend we're seeing is the companies out there that are resisting. We're hearing more and more from customers that, hey, that company's not helping move me to the future. Can you help me find an alternative? So there's this big movement for enterprises to actually migrate out of legacy platforms, whether that's hardware or software, and move into our cloud native platforms which are the future. So we see, we've been talking on theCUBE for years about this whole digital transformation and how it's going to allow companies to play in different industries. Amazon, obviously retailer, just purchased Whole Foods, getting into grocery, it's a content company. So Walmart said, all right, we're not going to put our stuff in the Amazon cloud. Netflix obviously does. How do you deal with that, the obvious competitive fears of some of the customers that you have for AWS? How do you message that? And what do you tell the world? Sure. The first thing is, I mean, AWS, while it is part of Amazon.com, we are a separate operating group. And we've been that way since the beginning. So Amazon is a customer, just like Netflix or Nordstrom or any of the other millions that we serve. They're a very hard customer and a very good customer and they help drive our innovation roadmap, but we don't treat them any differently that we do Netflix or the others. And part of that has to do with how we protect and secure the information that those companies put on AWS. So there's some companies out there, the one you just mentioned that still may be a bit uncomfortable for whatever reasons, competitive reasons, putting information or having third parties put information related to their business on AWS. And yeah, I think that's unfortunate. I think, and it also talks about two different philosophies. We take very much a customer-centric view of the business, what's best for the customer? And if one of our partners has a better capability, we've got plenty of partners that have similar products to what we offer, but if it's the better product for the customer, we're more than happy to support that. Whereas others out there take a very competitive focus to the market, where they're watching what their competitors are doing, they're trying to head them off at the pass or copy what their competitors are doing. In the long term, I don't think that's a fantastic strategy because you're never really innovating on behalf of the customer. You're never giving them the best solution. You're actually preventing them from getting something that could be beneficial to that customer. And we just don't believe that's a long-term, great business strategy for our customers and for ourselves. We recently saw the announcement of Amazon purchasing Whole Foods. Can you talk a little bit about this for our viewers and talk about how you see the future of grocery and retail and where it's going? Sure, so we've announced our intentions of purchasing Whole Foods. It has not happened, so there's still some more work to do there. But I think anytime we look at how we're going to expand either organically or through acquisition, it's about where are there synergies between our existing business, what the customer is looking for, and how can we create a better experience for that customer? And how can we do it at scale? How can we innovate around that model? And then how can we make that a great long-term experience for the customer that then ultimately drives the success and growth of our business, but also the partners that we bring in, whether again through acquisition or through third-party partnership? I think this is kind of a, if you look at this, this is a bit of a natural move as we look to, when our customers are telling us, hey, make it easier for us to purchase groceries and household items. And do it in a hybrid way, both combination of online and more from a physical presence. Terry, I wonder if you could talk about, you mentioned the edge before, and as you build out the partner strategy and the partner ecosystem, talk more about the edge, where it fits, edge at the, analytics at the edge, and Amazon being the cloud. So what's your point of view on what happens at the edge, what moves back to the cloud, the expense of moving things back to the cloud? What's your thought on that whole thing? Well, there's so many use cases for edge computing. I mean, you can take the mining industry. I mean, we're putting huge trucks in the middle of nowhere that may have limited or very expensive connectivity, and they're capturing all kinds of information during the natural operation of that machine. And it just makes sense that you want some level of data processing storage and analytics to happen on that machine. It could be a cruise ship. It could be an able vessel. It could be an airplane. There's lots and lots of different applications there. But by doing some of that processing at the edge, you're actually limiting the amount of data you have to send back to the central cloud. But of course, if you want to take full advantage of the analytics, you actually have to match that data with all the historical data and other real-time data that's resident in the cloud to get the result you're looking for. So it really becomes kind of this hybrid computing model. So some of it is efficiency around how much data you're sending back and forth. Some of it is just efficiency around processing at the point of data capture. Some do the connectivity reasons, some do the other. But it really is kind of this interesting new extension of hybrid cloud, if you will. We're very excited about it. So, and you've made some moves in that area. I mean, Snowball was, I think, one of the first. And there are other sort of edge, what I would consider edge-like devices or solutions. How dogmatic are you about everything living in the cloud? I mean, those are steps should we expect increasingly you extending the reach of the cloud or is it just really going to all in your world come back to the AWS clouds? Yeah, yeah, certainly be an extension of the cloud. That's already been happening. I mean, if you look at hybrid cloud and I think we've always been a supporter of hybrid cloud. If you look at our roadmap going back many, many years with virtual private cloud, with Direct Connect, with some of the newer capabilities like Snowball and of course Greengrass, our edge capabilities. We're really extending the reach out to be much more of a hybrid story. Because we recognize that not all the data today exists in the cloud or AWS in the future. We think most applications will run in the cloud because the value proposition is so strong across so many different dimensions. But today there's plenty of other places we have to connect to, again, to capture the data. Now I do think the vast majority of the data that we're capturing will be either pre-processed or sent natively into AWS to create a massive data lake so that you can start to drive these innovative machine learning and artificial intelligence applications. The predictive analytics, the algorithms, they just don't work. If you don't, they don't work effectively. If you don't have massive amounts of data and you continuously refresh that data so that the algorithms can continue to learn. And you, I want to double click on something you said about the value. To capture most of the value, your belief is that it's going to be in the cloud, one cloud and others obviously have different view for a variety of different reasons. I buy the cost argument, and you didn't make that argument, I'm making it. The marginal cost of having a single cloud, standard homogeneity is superior, I'll grant that. What else is there, though? Is it speed? Is it innovation? Is it standardization across the base? The single biggest value that I hear from customers today, but they love it. They love the cheap hosting piece, the efficiency part of it, but it really is the speed and agility. It's certainly the security model as well. I would say that most, almost every organization now that we talk to, once we've had a chance to educate them if they haven't already done so themselves, has determined that the cloud computing security model is much more effective than they could deliver on their own. We can just invest more, we can experiment more, we can have multiple certifications across different industries, which every customer gets to take advantage of. But I would just come back, it's the ability to move quickly. Whether it's moving into new market, I was just in Europe we were talking about and it's so volatile there right now on so many dimensions with Brexit and some of the nationalistic politics things that are happening, potentially the opening up more of the Middle East with the sovereign wealth funds coming into play. There's just so much opportunity that enterprises need to be able to move quickly. And if they have to go stand up a data center somewhere else or they can't deploy the software quickly, they're the competitive disadvantage. So the single biggest driver from what I hear from customers and what I'm saying is agility. Yeah, okay, so just to clarify, I said it's cost, not price, but we can debate that some other time. You just came back from Europe, you mentioned Brexit, what about things like GDPR, which has taken effect but the penalties go into effect May of 18. Obviously that puts a lot of pressure on the cloud provider as well as your customers. What are you hearing in Europe and generally and specifically GDPR? Yeah, so I mean, I would say the regulatory environment everywhere, but specifically in Europe continues to evolve and is fairly fluid. We've spent many years working with the various different regulatory bottles, the article 29 working party that's actually been crafting a lot of this legislation. So we're heavily influencing because if you step back, people said you couldn't do cloud, but they didn't explicitly say you could. So customers are meant to, how do I interpret this? And some, you know, like if I look at Nell and I look at Society General and I look at BMW and some of our forward leaning European customers, Siemens is another great one who was one of the original companies to put PII in the cloud. There's a big German company putting PII in AWS a number of years ago. So we figure out how to get, not get around, but interpret the regulations and then also ensure that we've got the features and capabilities to make sure that they comply with those regulations. So the full audit trail, the ability to encrypt data, the ability to make sure that data storage and localization is compliant with whether it's a country level regulation or industry level regulation. So we continue to spend a lot of time and effort monitoring and influencing that and then building the services to make sure our customers are working. Well, you've always done well with permutations and complexity and automating that. So it's going to be fun to watch. It will indeed. Great. Terri, thanks so much for joining us. We really appreciate it. It's been a lot of fun talking to you. Yeah, great. Thanks. Appreciate it. I'm Rebecca Knight for Dave Vellante. We will have more from Inforum just after this.