 Live from Las Vegas, it's theCUBE, covering AWS re-invent 2018. Brought to you by Amazon Web Services, Intel, and their ecosystem partners. Welcome back everyone, live coverage here of AWS re-invent 2018. I'm John Furrier, Dave Vellante, two sets, three days of wall-to-wall cover, hundreds of videos, great content, three hour keynote from Andy Jassy, 52,000 people here. This is where the industry now is getting together to set the agenda for the future. It's cloud-based, it's on-premise, it's all cloud all the time. Our next two guests are with Amazon, David K. who's with the marketplace, and Stefan Sieg, chief R&D officer at Software AG. Great to see you. Coming back, great to come back. So I got to say, you know, the customer dynamic that you guys have is pretty impressive. You guys are a customer. The value creation of the cloud is pretty amazing. What's your world like these days in terms of your market? You're in Europe, you're a lot of thousands of customers. What's the update? Well, I mean, we're operating worldwide, US being the biggest market. So 70 countries we're in from a customer perspective, all over the place with our labs. And obviously, I mean, the cloud and the digitalization is a whole new ballgame, and we are just at the time, we are reinventing ourselves for maybe the third time in order to help the customers to go that transition and our middleware expertise and our expertise that we now newly have added to in terms of IoT is just amazingly how that momentum is showing. I'd like to get your analysis of Andy Jess's keynote. I'll throw a one perspective at you. Besides the IoT awesomeness that the edge is now with satellites coming and unlimited connectivity in the future, but it kind of points out that this new kind of software developer, new persona, the builder, the right tool for the right job, this set of services now out there that can be merchandise and bought and sold, marketplace, which you run, software designs changing, but also consumption upon the buying side is changing. What's your analysis of that? For us, it's just, it couldn't be better because it's now again that software comes into enterprises. It has been pushed aside for many years because people would just implement standard software, would implement office software, and now all of a sudden, driven by the digital transformation and stuff like IoT, there's a demand for software, building software for their own needs, not just for the back office, but equipping the products with sensors, with data and hand software. So that's exactly our play, helping those customers, those enterprises to just start their software where it's necessary and we provide the platform getting them there. So Dave, software AG is almost as old as I am. The mainframe, you went through the client server, you dealt with the desktop and now the cloud era. How are you helping companies like software AG maintain their relevance, keep their infrastructure modern? How does that all work? Give us some insight on that. So first of all, AWS broadly is obviously working with all the world's software companies and if you think about all the large enterprises in the world are moving their applications onto the cloud, and if you think that the average enterprise has got a thousand applications, those thousand applications are woven in to a lot of third party software. So as our AWS customers move on to AWS, they want to bring their software with them. And clearly we work with companies like software AG and these guys are modernizing and re-architecting their software and the launch we just did today on container marketplace, so now we've launched marketplace for containers. It's a new way of packaging your software up in a microservices model and software AG has already refactored 10 of their product lines onto containers. So they're modernizing, our customers are modernizing and we're working together. And so Stefan, is it a case where you say to the customer, run it wherever you want it, or is it more aggressive? Okay, we're moving to the cloud, you're moving with us. How does it all work? What's the customer conversation like? The customer conversation is, customers come and they already decided their pace of going into the cloud, their maturity level going into the cloud and for the foreseeable future, there will be a hybrid world. There will be a hybrid world, still some pieces on premise, new things on the cloud, application integration within the cloud, application integration from the cloud to on premise, device integration coming up, the integration to edge use cases, very much a big topic. So it's a rebirth of our core technology that we are now seeing and we're taking our customers with us and they take us with them. You know, the thing that's interesting is that the whole software building market development or builders, right to the right job, needs to have a broad set of tools available because you've got an IoT edge application for instance, right? That's a complete custom bill in a way. So you don't want to have it be a one-off, just have the tools available, then it's just how you build. You build a unique solution for the unique use case, for the unique workload, use the cloud as distribution. You can, so you need a lot of services. So this is kind of the preferred model versus buying a general purpose application and stuffing it into a use case. Well, you got to understand that when you go to the cloud, you're going to redesign a lot of your applications. It's not a simple lift and shift. In some cases, it's right new. And in some cases, the developers want to use the tools they love. So, you know, you guys have got, what, 10,000 customers? Call it 10,000. Those 10,000 customers have all got skills and developers. So you've probably got a million developers that understand software AG and they're coming on to the cloud. They want to be familiar with what they're working with. So what I want to give them, what AWS wants to give the developer is a consumer experience that when the developer has a project, they can find the software. And so what we want to do is we're publishing software AG's products right in Marketplace. And you know, yesterday we announced that we now have 200,000 customers in AWS Marketplace. Then two years ago, I announced at the first time that we had 100,000. So we've doubled the number of customers using Marketplace in two years. And the reason is that the developers are showing up and finding the software they want. And the more software we add, the more developers come and use Marketplace. It's like going to Home Depot. I need a new tool. You know, I need a new service, hit the catalog. This is the preferred. And with containers and Kubernetes, you're seeing that explosive integration happen. People are integrating faster now because of containers and Kubernetes. And with more compute, it's only more goodness to accelerate the Kubernetes and containers. So that's got to be great glue for your business. Well, it is just the state of the art. I mean, this virtualization technology has evolved. And now it's there with Kubernetes and Docker and containers. So that's what customers even expect us doing. And then beyond that, they expect us being present in Marketplaces. Like the AWS Marketplace is the place to be. That's where people are looking for us. So we better be there. Containers are taking off for several reasons. You know, if you're a developer, one of the compelling things about containers is consistency of deployment. You can run Kubernetes on your laptop. You can run Kubernetes up on a server. You can run Kubernetes on the cloud. So you can develop on your laptop, provision up on the server, and then deploy on AWS. So that consistency is very compelling to the developer. What we're doing is by putting it in Marketplace, we're making it really easy because with ECS and EKS, whether it's the Docker container model, the Kubernetes orchestrator, we allow the developer on AWS to be well integrated into the AWS environment. So add edge into that equation and how does that consistency flow through? What's your edge strategy in terms of developing applications? Well, the edge strategy is clearly providing the, in the same time, the same way we provide the platform for usual application development, there is a huge demand for edge development. So for example, we have a great customer out there in Germany. They are the world market leader for paint robots. So obviously, if you want to maintain a paint robot, it's an edge thing. So we want to make sure that the data is close to the edge, is close to the device that can monitor and do the recognition of failures. The thing I want to just add to that that you mentioned about Kubernetes and the software deployment, is that when you got Lambda, you got these services that are so fast, you can do a lot with that. So as a service, you can bring that together. So the idea of throwing more compute at it in hundreds of milliseconds, you can wrap VMs around things, you can do cool things. So almost a change of buyer behavior is built into the development process. So that's good for your business, and companies are changing the business model. So Cisco, for instance, did a deal with you guys a couple of weeks ago, we covered it. They're using EKS for all the cloud stuff. So they have their stuff on the effort, so they go, hey, great. So containers as a next generation of deployment is one of your choices, right? You can go SaaS, you can go serverless, you can go containers. And companies are going to have all three in the mix. All of the software companies that are going to be repackaging for containers. The other thing that we've done with containers in marketplaces, we're actually metering by the second. A lot of containers run for a very short span of time. I don't know if you know this, but 50% of containers don't run for a week. You spin them up, you shut them down. You spin them up, you shut them down. And so the consumption of the software is moving much more into pay for how much you use. And you're granular. And we're granular, so we're going to mirror by the second. The vendors are typically going to price monthly and annually or hourly, depending on what the vendor choice is. And so we're going to make it easy for that to happen. And of course, the other thing we do is that by software AG being a marketplace, it goes on the developer's bill. Developer shows up with an account. The developer just gets the software AG software and runs it. And what makes it really easy for software AG is that developer has a contract with AWS, but they're now using software AG software. Well, congratulations, a great opportunity. By the way, I saw the announcement about having a marketplace for machine learning too. A lot of things happening. So the machine learning marketplace, in a way, actually leverages the same capability as the container marketplace. Because if you think about it in machine learning, we're packaging up the model or the algorithm in a Docker container. The difference, however, is that instead of rendering the container into ECS and EKS, we actually deploy the container right into the SageMaker console. So it's a different console and the user over there is either a data scientist or a developer, but they're going to find that package in a container and provision it in SageMaker and then apply the model. And you're right, we announced today, Andy announced the marketplace for machine learning with over 200 different machine learning models. So we had 160 container packages and we had 200 machine learning models. So now around the world, developers suddenly have access to 300 new pieces of software that they didn't have yesterday. I love this market. Web services, going back to the old 2001 timeframe is now happening. Service-oriented architectures are all happening. Catalogs of services is what it is. It's being realized right now and it's impacting and the results are obvious. The business model evolution, opportunities, not a bad thing. Marketplaces of the future are going to be all marketplace-driven. AWS Marketplace right now is probably the largest live introduction infrastructure library with third-party software. Congratulations, Dave, nice to see the success. Great to hear about these success stories there. Good job. And you know, ultimately we've got to remember that what we're delivering is a world-class experience for the customer and the marketplace only works if we have ISVs. So I want to thank Software AG because now all of our customers have access to the software. Customers win. Thank you. It's a pleasure. It's a win-win. Everyone wins with the cloud. That's the best part of co-creation and the cloud scale. I'm John Furrier, Dave Lanz. Stay with more coverage here, day two of AWS re-invent after this short break. Stay with us.