>>from around the globe. It's the Cube with digital coverage
of AWS reinvent 2020 sponsored by Intel,
AWS and our community partners.
>>Everyone welcome to the cubes Live coverage of AWS reinvent 2020 virtual were virtual
this year We are the Cube Virtual I'm your host John for a joint day Volonte for keynote analysis Andy
Jassy just delivered his live keynote. This is our live keynote analysis.
Dave. Great to see you, Andy Jassy again. You know their eight year covering reinvent their ninth year.
We're virtual. We're not in person. We're doing it.
>>Great to see you, John. Even though we're 3000 miles apart, we both have the covert here.
Do going Happy birthday, my friend.
>>Thank you. Congratulations. Five years ago I was 50 and they had the cake on stage and on the floor.
There's no floor, this year's virtual and I think one of the things that came out of Andy Jessie's keynote,
obviously, you know, I met with him earlier. Telegraph some of these these moves was one thing that
surprised me. He came right out of the gate. He acknowledged that social change, the cultural shift.
Um, that was interesting but he went in and did his normal end to end.
Slew of announcements, big themes around pivoting. And he brought kind of this business
school kind of leadership vibe to the table early talking about what people are experiencing
companies like ourselves and others around the change and cultural change around companies
and leadership. It takes for the cloud. And this was a big theme of reinvent,
literally like, Hey, don't hold on to the old And I kept thinking to myself,
David, you and I both are Historians of the tech industry remind me of when I was young,
breaking into the business, the mainframe guys and gals,
they were hugging onto those mainframes as long as they could, and I looked at it like That's not gonna
be around much longer. And they kept No, it's gonna be around. This is this is the state of the art,
and then the extinction. Instantly this feels like cloud moment,
where it's like it's the wake up call. Hey, everyone doing it the old way.
You're done. This is it. But you know, this is a big theme.
>>Yes. So, I mean, how do you curate 2.5 3 hours of Andy Jassy.
So I tried to break it down at the three things in addition to what you just mentioned about him acknowledging the social
unrest and and the inequalities, particularly with black
people. Uh, but so I had market leadership. And there's some nuance there that
if we have time, I'd love to talk about, uh, the feature innovation. I mean, that was the bulk of his presentation,
and I was very pleased. I wrote a piece this weekend. As you know, talk about Cloud 2030
and my main focus was the last 10 years about I t transformation the next 10 years.
They're gonna be about organizational and business and industry transformation. I saw a lot of that in jazz
ces keynote. So you know, where do you wanna go? We've only got a few minutes here,
John,
>>but let's break. Let's break down the high level theme before we get into the announcement. The thematic part was,
it's about reinventing 2020. The digital transformation is being forced upon us.
Either you're in the cloud or you're not in the cloud. Either way, you got to get to the cloud for to survive
in this post covert error. Um, you heard a lot about redefining compute new
chips, custom chips. They announced the deal with Intel, but then he's like we're better and faster on our custom side.
That was kind of a key thing, this high idea of computing, I think that comes into play with edge and
hybrid. The other thing that was notable was Jessie's almost announcement
of redefining hybrid. There's no product announcement, but he was essentially announcing.
Hybrid is changed, and he was leaning forward with his definition of redefining
what hybrid cloud is. And I think that to me was the biggest,
um, signal. And then finally, what got my attention was the absolute overt
call out of Microsoft and Oracle, and, you know, suddenly, behind the scenes on the
database shift we've been saying for multiple times. Multiple databases in the cloud he
laid that out, said there will be no one thing to rule anything.
No databases. And he called out Microsoft would look at Microsoft. Some people like cloud
wars. Bob Evans, our good friend, claims that Microsoft been number one in the cloud for like like year,
and it's just not true right. That's just not number one. He used his revenue a za benchmark.
And if you look at Microsoft's revenue, bulk of it is from propped up from Windows Server
and Sequel Server. They have Get up in there that's new. And then a bunch of professional services and some eyes
and passed. If you look at true cloud revenue, there's not much there,
Dave. They're definitely not number one. I think Jassy kind of throws a dagger in there
with saying, Hey, if you're paying for licenses mawr on Amazon versus Azure
that's old school shenanigans or sales tactics. And he called that out.
That, to me, was pretty aggressive. And then So I finally just cove in management stuff.
Democratizing machine learning.
>>Let me pick up on a couple things. There actually were a number of hybrid announcements. Um,
E C s anywhere E k s anywhere. So kubernetes anywhere containers anywhere
smaller outposts, new local zones, announced 12 new cities,
including Boston, and then Jesse rattle them off and made a sort of a joke to himself
that you made that I remembered all 12 because the guy uses no notes.
He's just amazing. He's up there for three hours, no notes and then new wavelength zones for
for the five g edge. So actually a lot of hybrid announcements,
basically, to your point redefining hybrid. Basically, bringing the cloud to
the edge of which he kind of redefined the data center is just sort of another edge location.
>>Well, I mean, my point was Is that my point is that he Actually, Reid said it needs to be redefined.
Any kind of paused there and then went into the announcements. And, you know, I think you know, it's funny how you called out Microsoft.
I was just saying which I think was really pivotal. We're gonna dig into that Babel Babel Fish Open
source thing, which could be complete competitive strategy, move against Microsoft.
But in a way, Dave Jassy is pulling and Amazon's pulling the same move Microsoft did decades
ago. Remember, embrace and extend right Bill Gates's philosophy.
This is kind of what they're doing. They have embraced hybrid. They have embraced the data center.
They're extending it out. You're seeing outpost, You see, five g, You're seeing these I o
t edge points. They're putting Amazon everywhere. That was my take away.
They call it Amazon anywhere. I think it's everywhere. They want cloud operations everywhere.
That's the theme that I see kind of bubbling out there saying, Hey, we're just gonna keep keep doing this.
>>Well, what I like about it is and I've said this for a long time now that the edge is gonna be one by developers.
And so they essentially taking AWS and the data center is an AP,
and they're bringing that data center is an A P I virtually everywhere.
As you're saying, I wanna go back to something you said about leadership and Microsoft and the numbers because
I've done a lot of homework on this Aziz, you know, And so Jassy made the point.
He makes this point a lot that it's not about the the actual growth rate. Yeah,
the other guys, they're growing faster. But there were growing from a much larger base and I want to share with
you a nuance because he said he talked about how AWS grew incrementally 10 billion
and only took him 12 months. I have quarterly forecast and I've published these on Wiki Bond,
a silicon angle. And if you look at the quarterly numbers and now this is an estimate,
John. But for Q four, I've got Amazon growing at 25%.
That's a year on year as you're growing to 46% and Google growing at 50% 58%.
So Google and and Azure much, much higher growth rates that than than Amazon.
But what happens when you look at the absolute numbers? From Q three to Q four,
Amazon goes from 11.6 billion to 12.4 billion.
Microsoft actually stays flat at around 6.76 point eight billion.
Google actually drops sequentially. Now I'm talking about sequentially,
even though they have 58% growth. So the point of the Jazz is making is right on.
He is the only company growing at half the growth rate year on year, but it's sequential.
Revenues are the only of the Big Three that are growing, so that's the law of large numbers.
You grow more slowly, but you throw off more revenue. Who would you rather be?
>>I think I mean, it's clearly that Microsoft's not number one. Amazon's number one cloud certainly infrastructure
as a service and pass major themes in the now so we won't go through. We're digging into the analyst Sessions would come
at two o'clock in three o'clock later, but they're innovating on those two. They want they one that I would call this
member. Jasio says, Oh, we're in the early innings Inning one is I as and pass.
Amazon wins it all. They ran the table, No doubt. Now inning to in the game is global.
I t. That was a really big part of the announcement. People might have missed that.
If you if you're blown away by all the technical and complexity of GP three
volumes for EBS and Aurora Surveillance V two or sage maker Feature store and
Data Wrangler Elastic. All that all that complex stuff the one
take away is they're going to continue to innovate. And I, as in past and the new mountain that they're
gonna Klima's global I t spin. That's on premises.
Cloud is eating the world and a W s is hungry for on premises
and the edge. You're going to see massive surge for those territories.
That's where the big spend is gonna be. And that's why you're seeing a big focus on containers and kubernetes
and this kind of connective tissue between the data machine layer, modern app layer and full
custom. I as on the on the bottom stack. So they're kind of just marching along to the cadence
of, uh, Andy Jassy view here, Dave, that, you know,
they're gonna listen to customers and keep sucking it in Obama's well and pushing it
out to the edge. And and we've set it on the Cube many years. The data center is just a big edge.
And that's what Jazz is basically saying here in the keynote.
>>Well, and when when Andy Jassy gets pushed on Well, yes, you listen to customers. What about your partners?
You know, he'll give examples of partners that are doing very well. And of course we have many. But as we've often said
in the Cube, John, if you're a partner in the ecosystem, you gotta move fast. There were three interesting feature announcements
that I thought were very closely related to other things that we've seen before.
The high performance elastic block storage. I forget the exact name of it,
but Zand in a cloud the first ever seen in the cloud it reminds me of
something that pure storage did last year and accelerate so very, very kind of similar. And then the aws glue
elastic views. It was sort of like snowflakes. Data Cloud. Now,
of course, AWS has many, many more databases that they're connecting,
You know, it, uh, stuff like as one. But the way AWS does it is they're copying
and moving data and doing change data management. So what snowflake has is what I would
consider a true global mesh. And then the third one was quicksight que That reminded me of what
thought spots doing with search and analytics and AI. So again,
if you're an ecosystem partner, you gotta move fast and you've got to keep innovating. Amazon's gonna do what
it asked you for customers.
>>I think Amazon's gonna have their playbooks when it's all said and done, you know, Do they eat the competition
up? I think what they do is they have to have the match on the Amazon side. They're gonna have ah,
game and play and let the partners innovate. They clearly need that ecosystem message.
That's a key thing. Um, love the message from them. I think it's a positive story,
but as you know it's Amazons. This is their Kool Aid injection moment, David. Educational or a k
A. Their view of the world. My question for you is what's your take on what wasn't said
If you were, you know, as were in the virtual audience, what should have been talk about?
What's the reality? What's different? What didn't they hit home? What could they have done?
What, your critical analysis?
>>Well, I mean, I'm not sure it should have been said, but certainly what wasn't said is
the recognition that multi cloud is an opportunity. And I think Amazon's philosophy or belief at
the current time is that people aren't spreading workloads, same workload across multiple
clouds and splitting them up. What they're doing is they're hedging bets. Maybe they're going 70 30
90 10, 60 40. But so multi cloud,
from Amazon standpoint is clearly not the opportunity that everybody who doesn't
have a cloud or also Google, whose no distant third in cloud says
is a huge opportunity. So it doesn't appear that it's there yet, so that was I
wouldn't call it a miss, but it's something that, to me, was a take away that Amazon does not
currently see that there's something that customers are clamoring.
>>There's so many threads in here Were unpacked mean Andy does leave a lot of, you know, signature stories
that lines in there. Tons of storylines. You know, I thought one thing that that mass Amazon's gonna talk about this is not something
that promotes product, but trend allies. I think one thing that I would have loved to Seymour conversation
around is what I call the snowflake factor. It snowflake built their business on Amazon.
I think you're gonna see a tsunami of kind of new cloud service providers. Come on the scene
building on top of AWS in a major way of like,
that kind of value means snowflake went public, uh, to the level of no one's ever seen ever in the history of
N Y s e. They're on Amazon. So I call that the the next
tier cloud scale value. That was one thing I'd like to see. I didn't hear much about the global i
t number penetration love to hear more about that and the thing that I would like to have heard more.
But Jassy kind of touched a little bit on it was that, he said at one point, and when he talked about the verticals
that this horizontal disruption now you and I both know we've been seeing on the queue for years.
It's horizontally scalable, vertically specialized with the data, and that's kind
of what Amazon's been doing for the past couple of years. And it's on full display here, horizontal integration
value with the data and then use machine learning with the modern applications,
you get the best of both worlds. He actually called that out on this keynote. So to me,
that is a message to all entrepreneurs, all innovators out there that if you wanna change
the position in the industry of your company, do those things. There's an opportunity right now to
integrate with the cloud to disrupt horizontally, but then on the vertical.
So that will be very interesting to see how that plays out.
>>And eventually you mentioned Snowflake and I was talking about multi cloud snowflake talks about multi cloud a lot,
but I don't even think what they're doing is multi cloud. I think what they're doing is building a data cloud across clouds
and their abstracting that infrastructure and so to me, That's not multi Cloud is in.
Hey, I run on Google or I run on the AWS or I run on Azure ITT's. I'm abstracting that
making that complexity disappeared, I'm creating an entirely new cloud at scale.
Quite different.
>>Okay, we gotta break it there. Come back into our program. It's our live portion of Cube Live and
e. K s Everywhere day. That's multi cloud. If they won't say, that's what I'll say it for them, but the way we go,
more live coverage from here at reinvent virtual. We are virtual Cuban John for Dave a lot.
They'll be right back.