>> Narrator: Live from Orlando, Florida,
it's theCUBE, covering Microsoft Ignite.
Brought to you by, Cohesity.
>> Good morning everyone and welcome back
to theCUBE's live coverage of Microsoft Ignite.
We are here in the Orange County Convention Center.
I'm your host Rebecca Knight, along with Stu Miniman.
Stu, this is Microsoft's Big Show.
26,000 people from around the globe,
all descending on Orlando.
This is the big infrastructure show.
Thoughts, impressions, now that we're on day two
of a three day show.
>> Yeah, Rebecca.
Last year I had this feeling that
it was a little bit too much talking about
the Windows 10 transition and the latest updates
to Office 365.
I could certainly want to make sure
that we really dug in more to what's going on with Azure,
what's happening in 6the developer space.
Even though they do have a separate show for developers,
it's Microsoft build.
They actually have a huge partner show.
And so, Microsoft has a lot of shows.
So it's, what is this show that is decades old?
And really it is the combination of Microsoft
as a platform today.
Satya Nadella yesterday talked about empowering the world.
This morning, Scott Hanselman was in a smaller theater,
talking about app devs.
And he came out and he's like, "Hey, developers,
isn't it a little bit early for you this morning?"
Everybody's laughing.
He said, "Even though we're kicking off
at 9:00 a.m., Eastern."
He said, "That's really early,
especially for anybody coming from the West Coast."
He was wearing his Will Code For Tacos shirt.
And we're going to have Scott on later today,
so we'll talk about that.
But, where does Microsoft sit in this landscape?
Is something we've had.
I spent a lot of time looking at the cloud marketplace.
Microsoft has put themselves
as the clear number two behind AWS.
But trying to figure out
because SaaS is a big piece of what Microsoft does.
And they have their software estate
in their customer relationship.
So how many of those that are
what we used to call window shops.
And you had Windows people are going to start,
Will it be .NET?
Will it be other operating systems?
Will it come into Azure?
Where do they play?
And the answer is,
Microsoft's going to play a lot of places.
And what was really kind of put on
with the point yesterday is,
it's not just about the Microsoft solutions,
it is about the ecosystem,
they really haven't embraced their role,
very supportive of open source.
And trust is something that I know both you and I
have been pointing in on because,
in the big tech market, Microsoft wants to stand up and say,
"We are the most trusted out there. And therefore,
turn to us and we will help you through all
of these journeys."
>> So you're bringing up so many great points
and I want to now go through each and every one of them.
So, absolutely, we are hearing
that this is the kinder, gentler Microsoft,
we had Dave Totten on yesterday.
And he was, as you just described,
just talking about how much Microsoft is embracing
and supporting customers who are using a little bit
of Microsoft here, a little bit of other companies.
I'm not going to name names, but they're seemingly demanding.
I just want best to breed, and this is what I'm going to do.
And Microsoft is supporting that, championing that.
And, of course we're seeing this as a trend
in the broader technology industry.
However, it feels different,
because it's Microsoft doing this.
And they've been so proprietary in the past.
>> Yeah, well, and Rebecca, it's our job on theCUBE actually,
I'm going to name names.
(laughs)
And actually Microsoft is-- >> Okay.
>> Embracing of this.
So, the thing I'm most interested
in at the show was Azure Arc.
And I was trying to figure out,
is this a management platform?
And at the end of the day really, it is,
there's Kubernetes in there, and it's specifically tied
to applications.
So they're going to start with databases specifically.
My understanding, SQL is the first piece and saying,
it sounds almost like the next incarnation
of platform as a service to our past.
And say, I can take this, I can put it on premises
in Azure or on AWS.
Any of those environments, manage all of them the same.
Reminds me of what I hear from VMware with Hangzhou.
Vmworld, Europe is going on right now in Barcelona.
Big announcement is to the relationship
with VMware on Azure.
If I got it right, it's actually in beta now.
So, Arc being announced and the next step
of where Microsoft and VMware are going together,
it is not a coincidence.
They are not severing the ties with VMware.
VMware, of course partners with all the cloud providers,
most notably AWS.
Dave Totten yesterday, talked about Red Hat.
You want Kubernetes?
If you want OpenShift, if you are a Red Hat customer
and you've decided that, the way I'm going to leverage
and use and have my applications run,
are through OpenShift, Microsoft's is great.
And the best, most secure place to run that environment
is on Azure.
So, that's great.
So Microsoft, when you talk about choice,
when you talk about flexibility,
and you talk about agility cause,
it is kinder and gentler, but Satya said they have
that tech intensity.
So all the latest and greatest,
the new things that you want, you can get it from Microsoft,
but they are also going to meet you where you are.
That was Jeremiah Dooley, the Azure advocate, said that,
"There's, lots of bridges we need to make,
Microsoft has lots of teams.
It's not just the DevOps, it's not just letting
the old people do their own thing, from your virtualization
through your containerization and everything
in between microservices server list, and the like.
Microsoft has teams, they have partners.
Sure that you could buy everything in Microsoft,
but they know that there are lots of partners and pieces.
And between their partners, their ecosystem, their channel,
and their go-to-market, they're going to pull this together
to help you leverage what you need
to move your business forward.
>> So, next I want to talk about Scott Hanselman
who was up on the main stage,
we're going to have him on the show and he was as you said,
adorned in coder dude, attire with a cool t-shirt
and snappy kicks.
But his talk was app development for everyone.
And this is really Microsoft's big push,
democratizing computing, hey, anyone can do this.
And Satya Nadella, as we've talked about on the show.
61% of technologist's jobs are not
in the technology industry.
So this is something that Microsoft sees as a trend
that's happening in the employment market.
So they're saying, "Hey, we're going to help you out here."
But Microsoft is not a hardware company.
So how does this really change things for Microsoft
in terms of the products and services--
>> Well right, >> It offers.
>> So really what we're talking about here,
we're talking about developers right?
61% of jobs openings for developers
are outside the tech sector.
And the high level message that Scott had is your tools,
your language, your apps.
And what we have is,
just as we were talking about choice of clouds,
it's choice of languages.
Sure they'd love to say .NET is wonderful,
but you want your Java, your PHP, all of these options.
And chances are, not only are you going to use many of them,
but even if you're working on a total solution,
different groups inside your company might be using them
and therefore you need tools that can spam them.
The interesting example they use was Chipotle.
And if there's a difference between when you're ordering
and going through the delivery service,
and some of the back-end pieces, and data needs
to flow between them, and it can't be,
"Oh wait, I've got silos of my data,
I've got silos of all these other environments."
So, developer tools are all about, having
the company just work faster and work across environments.
I was at AnsibleFest show earlier this year.
And, Ansible is one of those tools that actually,
different roles where you have to have the product owner,
the developer, or the the operations person.
They all have their way into that tool.
And so, Microsoft's showing some very similar things as to,
when I build something, it's not, "Oh, wait,
we all chose this language."
And so many of the tools was, " Okay, well,
I had to standardize on something."
But that didn't fit into what the organization needed.
So I need to be able to get to what they all had.
Just like eventually, when I'm picking my own taco,
I can roll it, bowl it, soft or hard shell--
>> It was a cool analogy. >> And choose all my toppings
in there.
So it is Taco Tuesday here--
>> Yes.
>> At Microsoft Ignite and the developers like
their choices of tools, just like they like their tacos.
>> And they like their extra block.
So going back to one of the other points you made
at the very opening.
And this is the competitive dynamic that we have here.
We had David Davis and Scott Lowe on yesterday
from a ActualTech Media.
Scott was incredibly bullish about Microsoft.
And saying it could really overtake AWS, not tomorrow,
but within the next decade.
Of course, the choice for JETI
certainly could accelerate that.
What do you make of it?
I mean, do you think that's still pie in the sky here?
AWS is so far ahead.
>> So look, first of all, when you look at the growth rates,
first of all, just to take the actual number,
we know what AWS's, revenue is.
Last quarter, AWS did $9 billion.
And they're still growing at about a 35% clip.
When I look at Microsoft, they have
their intelligent cloud bucket,
which is Azure, Windows Server, SQL Server and GitHub.
And that was 10.8 billion.
And you say, "Oh, okay, that's really big."
But last year, Azure did about $12 billion dollars.
So, AWS is still two to three times larger
when you look at infrastructure as a service.
But SaaS hugely important piece of what's going on
in the cloud opportunity.
AWS really is more of the platform
and infrastructure service,
they absolutely have some of the past pieces.
Azure started out as pass and has this.
So you're trying to count these buckets,
and Azure is still growing at, last quarter was 64%.
So if you look at the projection, is it possible
for Azure to catch up in the next three years?
Well, Azure's growth rate is also slowing down,
so I don't think it matters that much.
There is a number one and a number two,
and they're both clear, valid choices for customer.
And, this morning at breakfast, I was talking to a customer
and they are very heavily on Microsoft shop.
But absolutely, they've got some AWS on the side.
They're doing Azure, they've got a lot of Azure,
being here at our Microsoft show.
And when I go to AWS, even when I talked
to the companies that are all in on AWS,
" Oh, you got O 365?"
"Of course we do."
"Oh, if you're starting to do O 365,
are there any other services that you might be using
out of Azure?"
"Yeah, that's possible."
I know Google is in the mix.
Ali Baba's in the mix.
Oracle, well, we're not going to talk about Oracle Cloud,
but we talked about Oracle, because they will
allow their services to run on Azure specifically.
We talked about that a lot yesterday,
especially how that ties into JETI.
So, look, I think it is great when we have
a healthy competitive marketplace.
Today really, it is a two horse race.
It is, AWS and Azure are the main choices for customers.
Everyone else is really a niche player.
Even company like IBM, there's good solutions
that they have, but they play in a multi cloud world.
Google has some great data services,
and absolutely a important player
when you talk about multi cloud for all they've done
with Kubernetes and Istio.
I'm going to be meet Cupe Con in a couple of weeks
and Google is front and center there.
But if you talk about the general marketplace,
Microsoft has a lot of customers, they had
a lot of applications and therefore, can they continue
to mature that market and grow their environment?
Absolutely. AWS has so many customers,
they have the marketplace is stronger.
Scenario that I want to dig in a little bit more
at this show is the Azure Marketplace,
how much we talked about the ecosystem.
But, can I just procure through the cloud
and make it simpler?
Big theme we've talked about is,
cloud in the early days was supposed to be cheap and simple.
And it is neither of those things.
So, how do we make it easier, so that we can go
from the 20% of applications in the public cloud,
up to 50% or more?
Because it is not about all everything goes
to the public cloud, but making customers put
the applications and their data in the right place
at the right time with the right services.
And then we haven't even talked about edge computing
which Microsoft has a big push on, especially
with their partners.
We talked to HP, a little bit about that yesterday.
But really the surface area that this show
and Microsoft covers is immense and global.
>> It is indeed, and we are going, this is our second day
of three days of coverage and we're going to
be getting into all of those things.
We've got a lot of great guests.
We have Cute Host, Keith Townsend, Dave Kayhill,
a former wiki bond guy, a lot of other fantastic people.
So I'm excited to get it on with you today, Stu.
>> Thank you, Rebecca. Great stuff.
>> I'm Rebecca Knight, for Stu Miniman.
Stay tuned for more of theCUBE's live coverage
of Microsoft Ignite.
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