From business to government, the cloud's already at work, say Amazon, Walmart execs and our experts.

Insights: Cloud Computing

[MUSIC PLAYING] MICHAL LEV-RAM: For those of us who aren't fully steeped in government procurement processes and the DOD's JEDI project. What is the JEDI project? Can you just explain? TERESA CARLSON: Well, first of all, thanks for having me. And it's amazing to be here with all these other women. And I'm totally shocked that everyone doesn't understand government procurement. But JEDI is a $10 billion contract that the Department of Defense has put out. It's called a warfighter contract. And it's the first time they've gone out for an enterprisewide capability for a new technology that really supports the warfighter at the edge for mission. So it's very different. A lot of these are kind of back office, and they're large IT contracts, but this is really considered a warfighter contract. So it's significant. And it's a new kind of model they're looking to drive. MICHAL LEV-RAM: 10 year, $10 billion contract. Give an example of what is a warfighter cloud or contract mean. What kind of applications will this enable? TERESA CARLSON: Yeah. Well, one of the reasons this is different, if you think about a warfighter, they need information in real time. And in kind of an old model today, they've had to be-- it takes them a long time to get information that they need because they would have to buy tools and wait for them to get them. And when you're in the field and you're in dangerous areas and [INAUDIBLE] areas around the world, you can have as an example, you need information dissemination. So you need the ability to rapidly pull in and process data and analyze it, and get it to the warfighters so they could do something with it. And today, because of the amount of data and how much comes down as being processed. If you think about unmanned vehicles, overhead, or drones that are looking at things, there's a lot of information flow coming from that. And if they can't process and decide what to do with that information quickly, the other area is continuous communications or resiliency of communications. So if satellites-- many times in the field for warfighters, their satellites get jammed or communications networks get cut. Then, cloud computing allows them to have that continuous level of communication. And the third area may all would be like training and maintenance where they have continuous information about fleets, so they know what's working what's not. And then, just virtual in real time training. And it's critical for them to have these capabilities at all times. MICHAL LEV-RAM: This all sounds like something that we would think already existed, but doesn't at DOD. Why is that? TERESA CARLSON: Well, DOD, for some of you who may not know the US Department of Defense spends more money on IT than anyone in the world by far. And you have, again, like I said IT capabilities. And then, you have mission. And mission, trumps everything in government as it should just in business. But the old model of IT is one where you go out and you buy bunch of servers and you buy things that you don't always need and kind of hope you have what you need. Cloud computing is still fairly new. It's not new to startups. Most of the companies you've heard here they begin they begin their companies and build and sustain. They don't know. They're cloud native we call. They just build their tools in cloud Well governments around the world, most of them have old, very outdated legacy systems. And part of it is because of what you just said, that procurement processes are long, laborious, and they get they had protested all the time. So it takes a very long time. And in the past, governments have tended to do these really long contracts without continuous innovation built in. So now, they're trying to make this shift. So all legacy for a very long period of time. Now, they're really going through a modernized approach to how they're actually procuring and using technology, which must be done in the United States of America. It's got to be done. 

Insights: Amazon Exec Details Company's $10 Billion Pentagon Cloud Bid

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Amazon’s will build the Pentagon’s new cloud infrastructure.

Amazon Exec Details Company's $10 Billion Pentagon Cloud Bid

Amazon’s $10 billion bid to build out the Pentagon’s new cloud computing infrastructure is huge.

those of us who aren't fully steeped in government procurement processes and the d o d Jed I project. What is the Jet I project? Can you just explain? Well, first of all, thanks for having me. And it's amazing to be here with all these other women, and I'm totally shocked that everyone doesn't understand government procurement. But that Jet I is a $10 billion contract that the Department of Defense has set out its called a war fatter contract. And it's the first time they've gone out for an enterprise wide capability for a new technology that really supports the war. Fatter at the edge for mission. That's very different. A lot of these, they're kind of back office in their large I T contracts that this is really considered a war fatter contract. It's a significant, and it's a new kind of model. They're looking to drive 10 year, $10 billion contracts, um, given example of what is the warfighter cloud or contact me and what kind of applications? Well, one of the reasons is different. If you think about ah, war fatter, they need information in real time and then kind of old mall today they've had Thio be. It takes him a long time to get information that they need because they would have to buy tools and wait for them to get him. And when you're in the field and you're in dangerous ferries, there's areas around the world you can have as an example. You need information dissemination, so you need the ability to rapidly pull in and process data and analyze it and get it to the war fathers so they could do something with it. And today, because of the amount of data and how much comes down, is being processed. If you think about N men vehicles over header drones that are looking at things, there's a lot of information flow coming from that. And if they can't process and decide what to do with that information quickly, the other area is continuous communications or resiliency of communications. So it's satellite many times in the field for war fighters, their satellites get jammed or communications network get a cat, then cloud computing allows them to have that continues level of communication in 1/3 area. Me hall would be like training and maintenance, where they have continuous information about fleet so they know what's working, what's not. And then just virtual in real time training. And it's it's critical for them to have these capabilities at all times. This all sounds like something that we would think already existed but doesn't a d o d Why Why is that? Well, d o d for some of you may not know the U. S department defense. Then more many on I t than anyone in the world by far. And you have again. Like I said, I see capabilities and then you have mission, admission, trance everything in government as it should just in business that the old model of I t. Is one where you go out and you, Babin, just servers and you back things that you don't always need and kind of hope you have what you need. Cloud computing is still fairly new. It's not needed. Startup that cos you've heard. Here they begin. They begin their companies and building sustained. They don't know their cloud native. We call. They just build their tools and clouds. Well, governments around the world Ms Devane have old, very outdated legacy on part of it is because of what you just said. The procurement processes are long, laborious, and they get they get processed it all the time. It takes a very long time. And in the past, governments have tended to do these really long contracts without continuous innovation built in. So now they're trying to make this ship the old legacy for a very long period of time. Now they're really going through a modernized approach to how they're actually procuring and using technology which mess be done in the United States of America. It's got to be done.

[MUSIC PLAYING] SUSIE GHARIB: You heard the debate though, there are some tech experts who are saying that the big opportunities and the real future is the cloud. And that companies like Amazon, Google, and Microsoft are on the right track by putting their stake in the cloud. What do you say to that? ANTONIO NERI: You know when you talk to customers, they tell you, "I'm not going to put everything on the cloud. I'm going to put stuff in my data center or somebody else data center close to me and some stuff in the public cloud." But in the end, we're going to live in this hybrid world. And therefore, infrastructure enabled by the software experience that provides that cloud agility is going to be necessary as we go forward. And that's an opportunity for us. SUSIE GHARIB: You also say that the next new big thing is edge computing. I mean, tell us in an easy-to-understand way what this is and why it's so important. ANTONIO NERI: We live in a world that everything is connected. Right? So think about your personal lives, whether it's your mobile phone or now at your home, thermostats, refrigerators, anything is connected to the network. And therefore, that connectivity has to have security built into it. More and more intelligence is built into those devices, which means data gets processed exactly at the point where they are operating. In fact, we say, 75% of the data is generated where we live and work. And so the question is how we move the cloud experience closer where the data is generated, so we can extract value real time. And that's why it starts with connectivity, security, and then moving that cloud in the form of edge computing to the data. And that's the opportunity for us. SUSIE GHARIB: But that new edge computing, that's years away. I mean, how long is it going to be before it can have a significant impact at HPE? ANTONIO NERI: We believe it's going to move much faster than ever seen before. We believe that verticals like manufacturing, health care are adopting this new age computing technologies way faster because the amount of data that's being created needs to be processed where the action is. And with the implementation of 5G with the new type of connectivities, we actually open new use cases. So we believe it's going to move much faster than we think and for us it's a big opportunity to get ahead of it. 

Insights: HPE CEO Says Edge Computing is Next Big Thing

HPE CEO Says Edge Computing is Next Big Thing

Antonio Neri explains edge computing and how HPE is trying to get ahead of it. 

No way you heard the debate, though There are some tech experts who are saying that the big opportunities and the real future is the cloud and that companies like Amazon, Google and Microsoft are on the right track by putting their stake in the cloud. What do you say to that? You know, when you talk to customers, they tell you I'm not gonna put everything in the cloud. I'm gonna put stuff in my data center or somebody else data center close to me, some stuff in before the cloud. But in the end, you know, we're gonna live in this hybrid ward in there for infrastructure enabled by the software experience that provides that cloud agility is gonna be necessary as we go forward. And that's an opportunity for us. You also say that, uh, the next new big thing is EJ computing. Tell us in an easy to understand way what this is and why it's so important. We live in a world that everything is connected, right? So think about your personal lives. You know, whether it's your mobile phone or now at the home, you know, thermostats, refrigerators, anything is connected to the network and before that connecting, they have to have security building. Tow it mortem or intelligence is built in disposables of devices, which means data gets processed exactly the point where they're operating. In fact, we say 75% of the data is generated where we live and work. And so the question is how we moved the cloud expedience closer where the data is generated so we can extract value real time. And that's why starts with connectivity security and then moving that cloud in the former rage computing to the data. And that's the opportunity for us. But that a new edge computing that's years away. I mean, how long is it gonna be before it can have a significant impact at HP we believe is gonna move much faster than ever seen before? We believe that particles like manufacturer health care I'll adopt in this new age. Computer technologies were faster because the amount of data that we created it needs to be processed where the action is, and with the implementation of five G with a new type of connectivity is we actually open New Year's cases, so we believe is gonna move much faster than we think, and for us, is a big opportunity to get ahead of it.

[MUSIC PLAYING] PHIL WAHBA: While cloud computing might sound like a nerdy topic, it's actually an essential component now for retailers as they fight with Amazon. Cloud computing is helping major chains from Walmart and Nordstrom to Kohl's and Macy's have a much better handle on their inventory on who their customers are and how they work with vendors. So let's dive into this a little bit. If you have any doubts of how important cloud computing is, consider this. In 2018, Walmart announced that it was setting up enormous server farms. For a company of the size of Walmart, it was important to have that capability in-house and not rely on outside vendors. It allows them to have all the information they need to personalize their web page for you, to customize the offers that they'll make to you, and also to figure out what are the items that they should showcase on the web page that are most likely to get you to buy the products. Cloud computing doesn't just help improve the experience for shoppers. It also helps store managers. Take a company like Kohl's, which is making it a very top priority now for each individual Kohl's store to have its own assortment according to the needs of that market. It would not be able to do that without cloud computing, telling it what merchandise it needs at what time and at what store. And that is really what is helping Kohl's pull away from some of its competitors. A third component this is much tighter interaction with top vendors. Take the example of Nordstrom, which has a cloud computing system that helps it communicate more regularly and more closely with vendors like Coach and Levi's. And what that ends up doing for Nordstrom is that it knows what products are selling well more quickly. And it knows with products that it needs to phase out more quickly. And ultimately, that means fewer markdowns and fewer items sold at clearance, but also having more stock of items that are popular with shoppers. 

Insights: Cloud Computing is Helping Retailers Compete with Amazon

Walmart, Nordstrom, Kohl's, and Macy's are using it.

Cloud Computing is Helping Retailers Compete with Amazon

Walmart, Nordstrom, Kohl's, and Macy's are all utilizing cloud computing.

While competing might sound like a nerdy topic, it's actually an essential component now for retailers as they fight with Amazon. Cloud computing is helping major chains from Walmart and North Gym too. Cold and Macy have a much better handle on their inventory upon who their customers are and how they work with vendors. So let's dive into this a little bit. You have any doubts how important computing is? Consider this. In 2018 WalMart announced that it was setting up enormous server farms for a company the size of Wal Mart. It was important to have that capability and housing not rely on outside vendors. It allowed them to have all the information they need to personalize their Web page for you to customize the offers that they'll make you and also to figure out what are the items they should show okay on the Web page that are most likely to get you to buy the product, computing doesn't just help improve the experience for shoppers. It also helps store managers take the company like coals, which is making it a very top priority now for each individual cold sore toe have its own assortment, according to the needs of that market. It would not be able to do that without con computing, telling it what merchandise it needs at what time and at one store. And that is really what helping Cole's pull away from some of its competitors. 1/3 component, This is much tighter interaction with top vendors. Take example of Nordstrom, which has the conn computing system that helps communicate more regularly and more closely with vendors like Coach and Levi's. And what that ends up doing for North Stream is that it knows what products are selling well more quickly, and it knows what products that needs to phase out more quickly. And ultimately that means you're markdowns and your item sold that clearance but also having more stock of items that are popular with shoppers.

[MUSIC PLAYING] ANDREW NUSCA: It cannot be understated how important cloud computing is to the corporate world. The notion of having servers that are on 24/7, 365 to help you has changed the customer relationship, has changed everyone's relationship with technology of course, and it's even changed the business models, making it more and more possible to make money in myriad ways. So one important thing that the cloud has changed is the business model for software as we know it. Cloud computing means you can now have subscriptions for technology instead of just simple purchase prices, because you can deploy it all year long, you can update it, always make sure that the customer has an up-to-date version instead of the old box software way where you'd have to hope that they'd buy a new one again. And that's really evened out revenues for companies and of course technology adoption for customers. One great example of this is Adobe. If you think about its Creative Suite, you can pay a subscription for it. Your Photoshop is constantly up to date, and Adobe is constantly getting money from you, and that's been great for it and its stock price. Another way that cloud computing has changed technology and really the business world is the customer relationship. So in the old days, you used to sell technology to the IT guy. And he would go to the customer-- his internal customer at the company and say, I got this great technology for you, hope it works out. Today, with cloud computing and software as a service, a regular worker can use his or her corporate card, buy some software, try it out with their team, and hope to adopt it more broadly. It's not just changing the way companies are operating, but it's changing the way software is made, because it now has to appeal to a consumer instead of a technologist. One company that's known for this dynamic is Slack. Its communication software is not sold to a chief technology officer, it's sold to a worker, you or me or anybody who has a job in a company. And then we can try it out with our teams, and the adoption keeps growing internally. Slack has enjoyed one of the highest software adoption rates in the business because of this. Cloud computing has also changed the way that consumers interact with corporations. Take the retail industry for example. Today you can do a whole bunch of things through your smartphone, and the store doesn't have to even be open. You can buy a garment, process a return, check on a delivery. All of that possible with cloud computing, because the company's servers are always on and ready to serve even when it's actual workers are not. [CHIME] 

Insights: Cloud Computing and the Corporate World

Cloud computing has changed cloud technology adoption.

Cloud Computing and the Corporate World

Fortune's Digital Editor Andrew Nusca outlines the ways cloud computing has fundamentally changed corporate cloud technology adoption.

cannot be understated. How important cloud computing is to the corporate world. The notion of having servers that are on 24 73 65 to help you has changed. The customer relationship has changed everyone's relationship with technology, of course, and it's even changed the business models, making it more more possible to make money in myriad ways. So one important thing that the cloud has changed is the business model for software as we know it. Cloud computing means you can now have subscriptions for technology instead of just simple purchase prices. Because you can deploy it all year long, you can update it. Always make sure that the customer has an up to date version. Instead of the old box software wave, you have to hope that they buy a new one again. And that's really even doubt revenues for companies and, of course, technology adoption. One great example of this is Adobe. If you think about its creative suite, you can pay a subscription for it. Your photo shop is constantly up to date, and Adobe is constantly getting money from you, and that's been great for it. And it's another way that cloud computing has changed technology, and really the business world is the customer relationship. So in the old days, you used to sell technology to the I T. Guy, and he would go to the customer, his internal customer at the company and say, I got this great technology for you. Hope it works out today with cloud computing and software as a service, a regular worker can use his or her corporate card by some software, tried out with their team and hope to adopt it more broadly. It's not just changing the way companies are operating, but it's changing the way software is made because it now has to appeal to a consumer. One company that's known for this dynamic black It's communications software is not sold to a chief technology officer. It's sold to a worker, you or me or anybody who has a job in a company, and then we can try it out with our teams. And the adoption keeps growing internally. Slack has enjoyed when the highest software adoption rates in the business because cloud computing has also changed the way that consumers interact with corporations. Take the retail industry, for example. Today you could do a whole bunch of things through your smartphone, and the store doesn't have to even be open. You can buy a garment process, a return check on the delivery, all of that possible with cloud computing, because the company's servers are always on and ready to serve, even when it's actual workers are not.

[MUSIC PLAYING] LEENA RAO: Amazon is a company that's really known for its retail marketplace, but quietly over the past nine years, it's actually built a pretty vibrant business around selling cloud, services, and infrastructure to companies. So a few weeks ago, Amazon released the financials behind Amazon Web Services, its cloud computing business. And it's on track to make $6 billion this year, and all signs point to AWS, Amazon Web Services, as being one of Amazon's strongest businesses. Amazon Web Services started out nine years ago. It initially just launched with one specific product that allowed companies to basically store any files that were uploaded to their website in the cloud. Flash forward nine years, it's not just startups using AWS, it's companies like Netflix, it's big huge enterprises. What's driving the growth right now is that more and more companies are putting their infrastructure, their computing. They are basically allowing their websites and their web products to be powered by the cloud. Because of that trend, more and more enterprises, more and more big companies, including Time Inc. now use AWS as the place that powers their web infrastructure. Amazon Web Services had about a seven-year head start when it came to offering these types of services. But Microsoft and Google have caught on, IBM has caught on, and they all are competing with Amazon Web Services and with each other to create and get a slice of this massive cloud market, which many people call it a trillion-dollar opportunity. Amazon has cut its prices of its services 48 times in the past six years. Amazon is sending a clear signal to its competition. It doesn't care about cutting its prices. Jeff Bezos is known actually for not caring about profits. He cares about sales. He cares about long-term vision. But AWS, Amazon Web Services, is actually making between $100 and $200 million in profit. There are a few challenges that lie ahead for Amazon. First is that Microsoft is growing pretty fast, and part of the reason that Microsoft's going fast is because it's had a legacy of being an enterprise business. Another thing that Amazon should be worried about is investor pressure to potentially spin off. There's been a lot of talk on Wall Street about AWS becoming its own business. And that being said, Jeff Bezos is the founder of the company, and it's highly unlikely that that would ever happen unless he gave his blessing. [CHIME] 

Insights: How Amazon Took Over the Cloud

Amazon quietly got a head start on other cloud companies. 

How Amazon Took Over the Cloud

Amazon is the company that really known for its retail marketplace, but quietly over the past nine years, it's actually built a pretty vibrant business around. Selling Cloud Service is on infrastructure to cos A few weeks ago, Amazon released the financials behind EMS on Web service is cloud computing business, and it's on track to make $6 billion this year and all science 60.28 of US Amazon Web services as being one of Amazon strongest businesses. Amazon Web services started out nine years ago. It initially just launched with one specific product that allowed companies to basically store any files that were uploaded to their Web site in the Cloud Flash board. Nine years. It's not just started using eight of us, it's companies like Netflix, it big, huge enterprises. What's driving the growth right now is that more and more companies are putting their infrastructure there. Computing there are basically allowing their websites in their Web product to be powered by the clouds. Because of that trend, more and more enterprises more and more big companies, including timing, now use eight of us as the place that powers their Web infrastructure and Web service had about a seven year head start when it came. Offering these types of service is, but Microsoft and Google have caught on. IBM cut on, and they all are competing with Amazon Web services and with each other to create and get a slice of this massive cloud market, which many people call it a trillion dollar opportunity Amazon has cut its price of a service is 48 times in the past six years. Amazon is sending a clear signal to its competition. It doesn't care about cutting his prices. Just known, actually, for not caring about profits. He cares about Sales cares about long term vision. But eight of us Amazon Web service is is actually making between 102 100 million in profit. They're few challenges that lie ahead for Amazon. First is that Microsoft is growing pretty fast and part of the reason that Microsoft going fast because it had a legacy of being an enterprise business. Another thing that Amazon should be worry about, investor pressure to potentially skin off. There's been a lot of talk on Wall Street about eight of us becoming its own business, and that being, said Jeff Bay, those is the founder of the company, and it's highly unlikely that that would ever happen unless he gave me

Insights: Cloud Computing

Insights: Amazon Exec Details Company's $10 Billion Pentagon Cloud Bid

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Amazon’s $10 billion bid to build out the Pentagon’s new cloud computing infrastructure is huge.

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Insights: Amazon Exec Details Company's $10 Billion Pentagon Cloud Bid

Insights: HPE CEO Says Edge Computing is Next Big Thing

Insights: Cloud Computing is Helping Retailers Compete with Amazon

Insights: Cloud Computing and the Corporate World

Insights: How Amazon Took Over the Cloud