covering AWS re:Invent 2017.

Presented by AWS, Intel, and our ecosystem of partners.

>> Welcome back everyone, live here in Las Vegas

it's AWS re:Invent, it's theCUBE exclusive coverage

of re:Invent 2017, our 5th year covering Amazon,

watching the explosive growth.

I'm John Furrier, the co-founder of SiliconANGLE Media,

with Justin Warren my co-host here for this segment.

Our next guest is Raejeanne Skillern, Vice President of the

Data Center Group and also General Manager

of the Cloud Service Provider, part of Intel.

Welcome to theCUBE.

>> Thank you very much, it's nice to be here again.

>> So, Intel inside the Cloud is big growth for you,

what's the numbers look like, your earnings

look pretty good, what's the business update?

>> You know, it is growing, and it's growing

in so many different angles,

it's coming from multiple fronts.

Part of it is just these killer workloads

that are driving the need for change.

Artificial Intelligence, immersive media,

network transformation to handle all the data.

It is causing this real spur in growth,

from both the very largest of Cloud service providers

across the ecosystem, and one of the things when

I look at the growth, I try to say, now where is it

really coming from?

Yes, Amazon is just insanely growing fast and

the big guys are doing well, their global expansion,

But, also, the next wave of Cloud service providers,

and regions, and different countries,

are doing really well too,

they're actually growing faster,

so the whole ecosystem is growing with demand.

>> Yeah, it's certainly not slowing down.

I can't see any way in which that it would slow down

at all, if anything it's just gonna get faster.

>> I think so, and when I track trends like CapEx spending

and analyst predictions on the future,

consumer demand, everything indicates

we're gonna see another strong 5-10 years.

>> Justin: Yep.

>> So how do the Cloud service providers

shake out because if you look at this

creativity of software renaissance,

the interactivity, all the amazing use cases,

from Thorn, finding missing exploited children,

to, you know, high end HPC scientists,

genome sequencing stuff.

Massive use cases.

>> Raejeanne: Right.

>> So that's going to be a tsunami of software developers,

Changing.

How does that shape the Cloud providers,

does it segment them into tiers,

how are you guys looking at that business?

>> Well I think it breeds a lot of new opportunity.

So, yes, you see more and more new services

and capabilities to enable developers to more

easily develop code, to more quickly,

to get better utilization out of their code.

But I also think just the concept of a mocking performance

and ease, means new insights, new services,

new capabilities, things that we just couldn't, a developer,

we could not have done before.

So it's that, just like electricity,

when you make it cheaper and easier to consume,

we use more of it.

I think Cloud computing is the same way.

So we're seeing kind of a natural tam expansion,

market expansion, around these things you just

couldn't do without the Cloud.

>> And new workloads, too.

>> And new workloads.

>> And all of those workloads, Intel is basically

completely repositioning itself from just

being a chip company, it's like,

you're a data company now.

So, what are some of the things

that Intel's doing to help people

understand how they can make use of these

new software techniques, and these new tools,

and the capabilities of the Intel chips

they're dependent on.

So what are some of the things that Intel's doing there?

>> So obviously it starts at the bottom,

with the best silicon, not just compute,

but compute, network, and storage, and accelerators,

for all different workloads.

We move up to the platforms, we do a lot of

hardware engineering with the ecosystem,

with our top CSPs, actually many top CSPs,

we do direct engineering work to get better

systems of architecture.

We have a host of libraries we're creating that

ease of use, and mocking performance out of it.

Reference architectures, co-partners, and solutions.

So for us when we talk about being a data company,

we can't do it from just even being a chip,

we have to be a solutions partner,

with Cloud service providers, enterprise,

IOT edge solutions, we try to be there.

>> You guys always enabled some very cool demos in the day,

even back on the PC you always had interactivity,

you pioneered multimedia.

You always had that eye on the applications.

Okay, on stage today all this greatness is out there:

NFL demos, all this cool stuff.

That's really powering your business,

so talk about your relationship with Amazon web services,

what's it like, how do you guys engage with them,

what's the relationship, 'cause you guys are power

engine for AWS.

>> Yeah, well we try to be.

We wanna be the best performance into their data center.

We've had a many, many, many

year deep relationship with Amazon.

It started from simple co-development and engineering,

and is extended much more pervasively

across their environment and it poured

sometimes into the services.

We just, we want to one,

make sure that what we're delivering today

has been already optimized

specifically for their unique environment,

and that means we have to start a year or two before,

if not earlier, to really understand where they're going,

and get their feedback, so that when we either

optimize a product or technology across compute network

or storage, or create something potentially

custom for them, right, it takes a number of years of work,

so our partnership has a lot of in-depth engineering,

it has a lot of future and near-term enabling,

and then we hope to see an expansion.

What we really want to do is use our technology

to differentiate Amazon.

We want their services better because of the

technologies or capabilities we put in,

so wherever they wanna align in terms of

strategic investment and growth markets,

we wanna make sure the silicon can enable it.

>> Intel always marched to the cadence

of Moore's law, and you guys have always

been a rapid machine, execution.

Amazon looks good, I mean, they're executing.

>> Raejeanne: They're fast.

>> I mean, what's it like?

Share some story, I mean, they're years ahead,

what's it like working with Amazon?

>> Well I think, I mean, they are fast.

It's amazing how quickly they can move and innovate,

how rapidly those innovations roll out to the market.

I will be honest, there are times

where we miss windows because we are slow,

and they just look at us like, "Well we told you

"this four weeks ago, here it is, right?"

(laughing)

>> Can't design a chip in four weeks.

We don't have kubernetes, no containers for chips.

>> I mean they are just, they have it down.

So what we're trying to do is part of this

transition from being a client company,

to a Cloud and data center company,

and IOT company, means everything

we have to do is faster.

So we have to design our chips more quickly,

we have to put in more modularity

for faster derivatives,

and we have to move at Cloud speed,

not classic Intel speed.

>> Right, yeah.

So what are some of the lessons

that other companies can take from Intel,

I mean it's a hardware company,

or it was originally a hardware company,

and now you've transitioned to being a Cloud company,

and you're being pushed by Amazon

to move faster and faster.

So what are some of the lessons

that you can share with other companies

who are trying to start moving at Cloud speed?

>> You know, I think, I love Jeff Bezos' approach,

customer-obsessed.

If you aren't understanding how the end customers,

starting with Amazon's customers,

but also then my customer, Amazon,

how they're using and consuming technology,

we can't really create good technology.

I would say a lot of companies create

a great thing and then try to go sell it at markets,

>> Yep.

>> Versus starting with the market,

and creating the specific thing.

The other thing we've learned,

I mean, Intel is a very data driven company,

both in our decision making, as well as our company growth,

this is, and we talk about it from

a developer envirogroup, but it's the same iterate fast.

Fail quickly and move on.

You don't need perfect.

This is one of our learnings, right?

Don't wait six months for perfect,

move fast, get 70-80% of the way there,

I've heard governments say they get 40-50 way

percent of there, make decisions,

because they have to move that quickly.

For military or other exercises.

So what we're trying to do is match that

type of speed as well.

>> It's a world of compute now,

I mean, I was at Alibaba Conference,

they had their Cloud coachings hearing it here,

the same message: more compute.

They're not saying I need more little chips,

they're saying I want more horsepower.

>> Raejeanne: Right.

>> And you guys just announced the C5 instance,

recently, a couple weeks.

>> And the budget.

>> What is that gonna do?

I mean, it's fairly new.

>> Raejeanne: Yes.

>> What does that mean?

Is that gonna be an IOT edge opportunity?

Is it all workloads?

That's gonna be like, a pretty big deal.

What's your take on it?

>> It is, their C instant line has always

been for high performances growing workloads.

We're seeing like, for HPC workloads,

anywhere from two to four-and-a-half X the performance

moving from C4 to C5, right?

This is an instance that can handle the most

demanding workloads from high performance compute

to artificial Intelligence to others.

So, you know, we have our latest and greatest

Intel ZN scalable process in there,

a very high performant one, that we customized

specifically for their environment,

but then they do all this amazing software

work and efficiency work around it,

to really unlock.

I was really glad to see when they talked about

those C5 instances launching,

25% on workload's price performance

up to 50% price performance improvements

on some others.

So, I mean, once again, when you can

take more compute and make it more cost effective,

it's just a lot more things people can do in the industry,

so we're very excited about that instance.

>> What's the biggest thing in the past five years

that jumped out at you in the massive change