Podcasts about aws amazon

Ron Westfall says Amazon (AMZN) will be the Mag 7 company that will suffer the most under tariffs. He points to the China trade as fundamental for its ecommerce business, which will be dialed back in a tariff-led environment. Chris McMahon doesn't agree with the risk to growth prospects. He considers AWS Amazon's most important business for its outlook.======== Schwab Network ========Empowering every investor and trader, every market day.Subscribe to the Market Minute newsletter - https://schwabnetwork.com/subscribeDownload the iOS app - https://apps.apple.com/us/app/schwab-network/id1460719185Download the Amazon Fire Tv App - https://www.amazon.com/TD-Ameritrade-Network/dp/B07KRD76C7Watch on Sling - https://watch.sling.com/1/asset/191928615bd8d47686f94682aefaa007/watchWatch on Vizio - https://www.vizio.com/en/watchfreeplus-exploreWatch on DistroTV - https://www.distro.tv/live/schwab-network/Follow us on X – https://twitter.com/schwabnetworkFollow us on Facebook – https://www.facebook.com/schwabnetworkFollow us on LinkedIn - https://www.linkedin.com/company/schwab-network/About Schwab Network - https://schwabnetwork.com/about

[Referências do Episódio] Tempest analisa suposto ataque contra AWS Amazon pelo grupo GD LockerSec  Exploit Me, Baby, One More Time: Command Injection in Kubernetes Log Query - https://www.akamai.com/blog/security-research/2025/jan/2024-january-kubernetes-log-query-rce-windows [Security Advisory] CVE-2024-9042: Command Injection affecting Windows nodes via nodes/*/logs/query API - https://discuss.kubernetes.io/t/security-advisory-cve-2024-9042-command-injection-affecting-windows-nodes-via-nodes-logs-query-api/31276 No Honour Among Thieves: Uncovering a Trojanized XWorm RAT Builder Propagated by Threat Actors and Disrupting Its Operations - https://www.cloudsek.com/blog/no-honour-among-thieves-uncovering-a-trojanized-xworm-rat-builder-propagated-by-threat-actors-and-disrupting-its-operations Roteiro e apresentação: Carlos Cabral e Bianca Oliveira Edição de áudio: Paulo Arruzzo Narração de encerramento: Bianca Garcia

　日本電気株式会社（NEC）は10月25日、AWS向けセキュリティ診断「Amazon Inspector」の性能検証記事を同社セキュリティブログで発表した。サイバーセキュリティ戦略統括部 セキュリティ技術センターの谷口氏が執筆している。

► Invest in top-performing AI stocks with OPTO - Install FREE app: https://optothemes.onelink.me/BZDG/ti2lb2fdToday, Miriam McLemore, Enterprise Strategist at AWS, discusses her journey from CIO at Coca-Cola to her current role, emphasising the importance of cloud adoption and data security in leveraging AI. She highlights that 2023 was a year of experimentation, while 2024 is seeing companies developing clear AI strategies, particularly those already using cloud infrastructure. Miriam also notes the transformative impact of AI across industries, with examples from healthcare and sports, and advises businesses to secure their data to maintain competitive advantages when deploying generative AI technologies. Enjoy!--------The content in this podcast is for informational purposes only. Opto Markets LLC does not recommend any specific securities or investment strategies. Investing involves risk & investments may lose value, including the loss of principal. Past performance does not guarantee future results. Investors should consider their investment objectives and risks carefully before investing. The information provided is not an endorsement of this product and is for information and/or educational purposes only.

COMPUTEX collaborates with AWS to explore the future trends of AI and cloud integration. In this episode, we invite AWS to discuss the global trends in AI development and the AI innovations in AWS Smart Manufacturing and Retail. Don't miss out on COMPUTEX 2024, seize the pulse of global technology! COMPUTEX攜手AWS，探索AI未來趨勢與雲端整合。 本集節目邀請AWS探討未來全球AI發展趨勢及AWS慧製造與零售的AI創新。 別錯過COMPUTEX 2024，把握全球科技脈搏！Feat. AWS台灣暨香港總經理 Mr.王定愷 活動詳情： ●COMPUTEX觀展預登：https://reurl.cc/g4qyQR ●AWS:3/27、3/28@台北華南銀行國際會議中心舉辦「AWS 韌性製造峰會」、「AWS智慧零售論壇」。 AWS 韌性製造峰會：https://reurl.cc/135AmX AWS智慧零售論壇：https://reurl.cc/ora2Qv -節目主持：Raymond -成音剪輯：林佳欣 -製作團隊：TAITRA X Soundtalk Creative -音樂來源：http://www.premiumbeat.com

AWSが手頃なシンクライアント「Amazon WorkSpaces Thin Client」を提供　見た目は「Fire TV Cube」そっくり　195ドルから。　Amazon Web Services（AWS）が、仮想デスクトップサービス「Amazon WorkSpaces」用のシンクライアント端末「Amazon WorkSpaces Thin Client」の提供を開始した。米国ではAmazon.comにおいて単体で195ドル（約2万8700円）、2画面出力用のUSBハブ付きで279.99ドル（約4万1200円）で販売しており、他の国／地域では2024年内に提供が始まる予定だ。

This week, I'm joined by the product KING himself: Nitin Bhat.Having built and led products for AWS, Amazon, Microsoft, Intel, and Smartsheet (not to mention he's the current CPO of Workiva,) we delve into the secrets of:Integrating your product into your customer's lifestyle.Leading with real empathy.Having to unlearn fundamentals as your business grows.What problems AI *actually* solves.What huge companies look for when hiring (spoilers: it's not just your skills.)This isn't one to miss.Connect with our host, Oz Rashid, on LinkedIn: https://www.linkedin.com/in/ozrashid.Learn more about MSH: https://www.talentmsh.com.Don't forget to rate, download and subscribe to the podcast so you won't miss out on creative, innovative strategies for hiring the best talent.#Talent #Hiring #Learning #Teams #Jobs

Carolina Piña, Líder de Entrenamiento Masivo para Latinoamérica para AWS (Amazon Web Services), nos platica sobre los conceptos básicos de la nube, cómo funciona la capacitación y cuáles son los beneficios profesionales y empresariales. Además, nos cuenta sobre los compromisos globales de Entrenamiento Masivo de AWS para cerrar la brecha digital en la región, sobre el portafolio y programas de entrenamiento para particulares, universidades e instituciones educativas, y la importancia de la nube como herramienta de transformación. Si estás buscando crecer laboralmente o incluso cambiar de carrera, este episodio es para ti.

En este episodio hablaremos del servicio Amazon Kinesis y sus diferentes componentes, Amazon Kinesis Data Streams, Kinesis Data Firehose, Kinesis Data Analytics y Kinesis Vide Stream Material Adicional: https://aws.amazon.com/kinesis/

In this 58th episode of the Decode Quantum podcast series, Fanny Bouton and Olivier Ezratty welcome Simone Severini, who runs all quantum activities at AWS/Amazon. It is the first in English and probably not the last one!Simone Severini is the Director in charge of Quantum Technologies at Amazon Web Services (AWS) since 2018. He also holds an academic appointment as a Professor of Physics of Information at University College London (UCL), where he has been since 2009. He contributed to initiate university-industry collaborations with enterprises like Google, Lockheed Martin, and Siemens. He helped co-founding startup like Phasecraft and Cambridge Quantum Computing (now Quantinuum). Simone got a PhD from the University of Bristol with Richard Jozsa in 2004 and a degree in Philosophy from the University of Florence. Simone is based in Seattle.

Guillermo Ruiz said about his work and answered some of my questions. more info- https://www.SmartCherrysThoughts.com

On this episode of The Cloud Pod, the team discusses the new Amazon Linux 2023, Google Bard,  new features of Google Chronicle Security Operations, GPT-4 from Azure Open AI, and Oracle's Kubernetes platform comparison. They also talk about cloud-native architecture as a way to adapt applications for a pivot to the cloud. A big thanks to this week's sponsor, Foghorn Consulting, which provides full-stack cloud solutions with a focus on strategy, planning and execution for enterprises seeking to take advantage of the transformative capabilities of AWS, Google Cloud and Azure. This week's highlights

On this episode of The Cloud Pod, the team discusses Amazon Pi Day, Google's upcoming I/O conference, the agricultural data manager by Microsoft, and the downturn in net profits of Oracle. They also round up cloud migrations by highlighting tools from different cloud service providers that are useful for the process. A big thanks to this week's sponsor, Foghorn Consulting, which provides full-stack cloud solutions with a focus on strategy, planning and execution for enterprises seeking to take advantage of the transformative capabilities of AWS, Google Cloud and Azure. This week's highlights

En este episodio nos centraremos en el servicio de Amazon Athena, el cual es un servicio de consultas avanzadas que nos proporciona una forma simplificada y flexible de analizar petabytes de datos directamente desde nuestro lago de datos almacenados en S3 utilizando sentencias estándar de SQL. Material Adicional: https://aws.amazon.com/es/athena/

En este episodio explicaremos por qué Amazon Redshift nos facilita análisis a gran escala, su integración con un Data Lake y fuentes operacionales para complementar distintos casos analíticos, así como la forma en la que habilita analítica para todos los usuarios de la organización Material Adicional: https://docs.aws.amazon.com/redshift/index.html

EP284 - 2022 Annual Predictions h 2021 Predictions Recap Jason: Made to Order apparel business > 9 figures Yes Retailer offers viable health alt insurance option to consumers No Grocery E-Com > 10%  someone deploys(not pilots) MFC Yes Amazon Shopify Competitor (shipping solution) No Retail Media > $20B Yes Bonus – More store closures in 2021 than 2020. No Jason Total Score: 3 of 5 Scot: Amazon move to same day prime by opening a huge wave of neighborhood DCs (near DSPs) Yes Shipping (Shopify) – launch own DSP No Shopify marketplace No ‘zero friction addiction' sticks – I've seen 30-40% repeated a lot, I think it's 60-80%. commerce penetration says at 16% or better in 2021. Yes spac/ipo? Dnvb wave Yes Bonus: post-covid anti-consumerism/materialism wave No Scot Total Score: 3 of 5 We have a tie, including the tie-breaker. Here are some relevent links: eMarketer recap of Retail Media Networks Bricks Meets Clicks analysis of digital grocery space 2022 Predictions Jason: NFTs, Web 3, Metaverse, and Ultrafast delivery services are all overhyped and don't deliver meaningful commerce revenue in 2022. Shein exceeds $30B in annual sales, disrupting apparel industry Adoption of BNPL services slows down to less than 15% CAGR in 2022. Amazon opens more than 100 Amazon Fresh grocery stores Last Mile evolves Veho, X-Delivery, shipium, or Instacart gets aquired Scot: Amazon launches a competitor to Shopify webstore, possibly via a headless solution on AWS Amazon wins ultra-fast delivery. Gopuff, Gorilla, or  Jokr goes out of business in 2022 Metaverse gets lots of buzz but no revenue Livestream commerce goes mainstream in the US  Fabric gets acquired Don't forget to like our facebook page, and if you enjoyed this episode please write us a review on itunes. Episode 284 of the Jason & Scot show was recorded on Thursday, January 6th, 2022. ttp://jasonandscot.com Join your hosts Jason "Retailgeek" Goldberg, Chief Commerce Strategy Officer at Publicis, and Scot Wingo, CEO of GetSpiffy and Co-Founder of ChannelAdvisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing. Transcript Jason: [0:23] Welcome to the Jason and Scot show this is episode 284 being recorded on Thursday January sixth 2022 I'm your host Jason retailgeek Goldberg and as usual I'm here with your co-host Scott Wingo. Scot: [0:40] Hey Jason and welcome back Jason Scott she listeners happy New Year Jason and listeners it's 2022 here we are we made it. Jason: [0:49] I know I feel like I'm already winning because the intern type 2021 in the show notes and when I read the intro I caught it in my head I feel like that I'm impressed with myself right now. Scot: [1:00] Boom yep and there that was bad timing because there is a performance review coming up so that in turn is going to be in some pretty pretty thin ice here so we'll see hopefully they make it through. Jason: [1:13] Might be another year probation before he gets to start taking a salary. Scot: [1:18] Yeah most important question are you watching the book of Boba Fett. Jason: [1:24] I am I am we have to be careful not to do any spoilers but. Scot: [1:29] Never spoilers never a million spoiler. Jason: [1:31] Spoiler free pass. Scot: [1:33] I believe he got eaten by that giant thing in the desert oh sorry those spoiler. Jason: [1:39] Yeah. Yeah there are I will let I'm not going to reveal anything but there is sand in the new episodes. Scot: [1:49] Yeah yeah he want he like Star Wars you get a lot of sand in some people hate sand but Boba doesn't seem to mind. Jason: [1:57] No I think he's had to adjust but yeah really well done show been enjoying it felt like there was a end of the year there was kind of a little role in television programming in our household so it's been exciting too Taz some of these series come back. Scot: [2:13] Let's jump into it cuz this is sometimes one of our longest episode so we're going to try to try to not go too crazy long. Jason: [2:20] I feel like we just lost half our listenership right there. Scot: [2:23] Like I don't believe that this is gonna be a three-hour I am happy that Joe Rogan is starting to do these like three-hour heh, episodes it makes me feel better about our one hour winds so this is every the first show of every year is been are many many year, tradition to go through our past years predictions and then formulate our predictions for the upcoming year, and that is this show it is the 2021 prediction review 2022 prediction Revelation show feel like we need a sound effect for that, but. Jason: [3:00] I have a sound effect but I feel like I'm going to leave yours in. Scot: [3:02] If you can beat that you know over override it there. [3:10] So the way we do this is we do have to show is kind of doing our predictions and kind of self scoring ourselves in Jason's it's kind of, banging your head against a book typically self-flagellation or whatever it's called and then and then we are back after the show is hopefully we learn from these predictions we made and we, cast them forward to see what's going to happen this year so I feel like Jason we should I think you actually won last year if I remember. Jason: [3:41] In a major upset I feel like I had been like over 45 the the previous app that seasons. Scot: [3:48] Yeah yeah so you get the dubious honor of getting to rate your 2021 predictions first so why don't you kick us off. Jason: [3:54] Awesome yeah and spoiler alert we do not learn from the previous years. Scot: [4:00] Well part of making predictions is you yeah yeah yeah you got to kind of put it out there and that's risky. Jason: [4:07] Sure so I'm always looking forward to this episode I'm super excited about it I get you know jazzed weeks in advance and then I like dust off last year's forecast and suddenly I'm a gloomy because I realize I'm not near as clever as I remembered myself so that'll just set the tone up front so my first prediction last year was that more personalized made to order products would be taking off this year and my specific prediction was made to order a parallel with grow to be a nine figure 9 digit, business in 2021 and so good news bad news that happened so, if you add up the revenue from Indochina oh and suit supply, proper cloth and not standard you actually get now about 250 million in Revenue which is, considerably higher than nine figures. [5:14] In hindsight it wasn't that good of a prediction like we are pretty close to nine figures before last year. And so it wasn't as stretchy as I had hoped and I had in mind a lot of more. Well we're in consumer products pivoting the made to order and I specifically had been watching some some Amazon Pilots around made to order and they didn't really grow this year at also, technically I guess it was it happened but I don't feel very good about my first one. Scot: [5:46] Okay yeah well it's a win just take the W dude. Jason: [5:53] Okay all right yeah well I'll try to be more more strict going forward or just make better predictions so my second one, there's been a lot of initiatives around retailers weaning in the healthcare and I propose that at least one retailer would, launch their own health insurance or offer some alternative solution to health insurance, and while there were a bunch of investments in health care and Amazon you know in particular has done a lot in the last year I don't think that really happened so I'm giving that a no. Scot: [6:29] Yeah and in fact that was like a huge loss because Amazon Unwound their big partnership that made it seem like they were going to do a lot more in this myth. Jason: [6:37] Yeah that there is some Nuance there they they were part of a Consortium and they bailed on the Consortium but then they invested a lot more money and did several acquisitions, and expanded the scope of their own internal initiatives and it almost look like the the internal stakeholders didn't like partnering with Goldman Sachs and Berkshire Hathaway but nevertheless. I'm I'm not taking that that win that that didn't happen so. Scot: [7:09] What attracted such a big L kind of swamps the W from the first one. Jason: [7:14] Yeah cleaner it correctly so the next one was interesting I said that e-commerce would grocery e-commerce penetration with grow above 10% and I said someone will deploy not just pilot these micro fulfillment centers for grocery in both of those things basically happen so bricks me clicks which is one of the more credible sources out there for tracking grocery penetration has us at about fourteen percent penetration right now. So we definitely passed that ten percent threshold obviously aided by, the pandemic and the various waves and then several retailers leaned into mfcs a couple small retailers did deploy them, across all of their stores so like a chibi for example is aggressively rolling out mfcs Walmart I want to say spent like 14 billion dollars on on MFC so real money is, is getting invested in there so I think generally I feel good about my my grocery production number three so so. Two yeses and a know so far. Scot: [8:29] Is this a bricks and clicks thing is that a can mere mortals get that or is that something you get. Jason: [8:35] Well there's a there's a paid version which is well worth it if you follow the industry but they do publish their monthly forecasts for free on their website at bricks me cliques.com. It's pretty interesting so there you know we get. Grocery sales data from the US Department of Commerce and e-commerce data but we don't get grocery e-commerce so there's the grocery e-commerce we only get from a couple of these third-party private. Data providers and they all do it primarily based on. Big panels of consumer surveys so that's what bricks me clicks does but they they have some like pretty interesting data like you can look at what percentage of those grocery e-commerce orders were home delivery versus curbside pickup and stuff like that. Scot: [9:26] Very cool there's a how do they get their data. Jason: [9:30] Panel so they're there. Yeah they're serving a bunch of consumers yeah. Scot: [9:38] All right I'm going to remember you you did that. Jason: [9:42] You make you make use with what is available. Um and directionally emarketer published some grocery data and they kind of roll together a bunch of people's forecast there's another company out there called mercado's that publish them data and it also aligns, directionally that there we are over 10% where they disagree more is where we started before the pandemic so some of them have us starting at like two-and-a-half or three percent some of them have as high as six percent before. Um over 10 now. And if you're super interested in the interest of prolonging the show frequent friend and guest of the show Professor Dan McCarthy they he and his students just published an interesting. Cohort analysis of, um how the pandemic impacted digital restaurant sales so closely related to digital grocery right and obviously a lot more people ordered restaurant food for delivery during the pandemic but his interesting question was, um [10:49] Was that you know a pandemic Spike and it's going to go down back down to pre-pandemic levels or is it a permanent shift and what can we suss out and the way they did it is they looked at cohorts that. They ordering from restaurants for home delivery before the pandemic and how their behavior change versus first time users and what they found is like most of the growth was. Households that were already using restaurant delivery increase their usage and it appears to be more sticky the smaller cohort of people that ordered from restaurants for the first time during the pandemic, that behavior did not stick and they're not continuing to order but still the sales are up higher. There's a nice long digression for you that wasn't one of my forecast. Scot: [11:33] Always appreciate the commentary. Jason: [11:36] Yeah I'm here for you man so forecast number four was. I predicted that Amazon's Shopify competitor would be revealed, in this is a thing that we had heard about called project Santos but no one really knew what it was I said hey we're going to find out what it is and I think it's going to be a shipping solution to compete with, to fulfill orders for Shopify and take take you know a piece of the Shopify gmv. And it was in fact revealed so that's the good news it was not a shipping solution so so project Santos turned out to be, a point-of-sale system for brick-and-mortar retailers that Amazon is developing, and has still not released but is purported to be small business POS system that's going to compete with Shopify and square and some other folks in that space so, I'm giving that a no. Scot: [12:42] All right I agree on the phone. Jason: [12:44] Cool cool. Interesting news and Evolutions there to talk about on one of our subsequent new shows is there some interesting patterns that Shopify and others of, have filed in that space so we get to my fifth prediction my fifth prediction was that retail media networks were going to take off in 2021 and that they would generate more than 20 billion dollars in ad revenues, and put things in perspective like the year before we had only seen about 10 billion and AD Revenue so that was a meaningful prediction and that. Totally happen so according to emarketer we did 24 billion, in calendar year 2021 in ads that were invested in retail media Networks, um Amazon is on a run rate right now to do about 30 billion dollars a year and everybody and their brother is launching a retail media Network so the Gap is launching a retail media Network which is. Interesting most of these, retail media networks are selling ads to what we would call endemic Advertiser so your Duracell batteries you sell batteries at Walmart you buy an ad from Walmart for Duracell batteries to help more people find them. [13:57] Gap doesn't sell other people's stuff so there are no endemic advertisers on the Gap right and so super interesting that even they are trying to monetize their traffic. You know you name it they watched a retail media Network this year and just today I want to say Best Buy which already had a retail media Network, launched a new rebranded retail media Network and they're now selling ads to non-endemic advertisers as well so so that when I feel like I hit pretty well. [14:28] So you add that up and that is three corrects and and to to mrs. and folks careful listeners will note we also made a bonus prediction and the case that we tied, in my. My bonus prediction was that we would have even more store closures in 2021 than we did in 2020 and I was wildly wrong, so caveat here are the data everyone uses when they quote store closures is this core site data and core site is kind of anecdotal data and it's totally tracking Big Chain, retailers but based on their data there is like 41 percent fewer store closures in 2021 than 20/20 so so we'll call that a huge mess, um I would argue that all the store closures that happen this year were small independent retailers that got wiped out by these big chains, and we really don't have a good data source for for those but nevertheless I'll accept that I lost the bonus round badly. Scot: [15:28] Yeah in fact isn't there a record number of stores opened. Jason: [15:33] Yeah so a separate issue from the store closings is hey where there are more openings and there, there there were so not a record number of openings but the but from that course I data set more store opens opened than closed last year which so we would have had a net increase in stores. That that's interesting I wouldn't encourage retailers to pay too much attention to that because it really matters. The nature of the closed and open stores I get almost rather follow, net gains or losses in retail square footage because if you have a bunch of Macy's stores closed and you have a bunch of Dollar General stores open your closing 100,000 square foot store and opening a 10,000 square foot store. Scot: [16:22] Awesome and then you had all right so then if we include your bonus you're even so three wins and three else. Jason: [16:35] Exactly I like to think of it as three wins and two L's and the bonus only comes up if you can tie me. Scot: [16:41] Okay alright let's see how I did so. Jason: [16:46] Yeah I'm excited to hear this. Scot: [16:48] Yeah so just to remind everyone this was done a year ago in January of 21 we were merely. Nine months months depends on when you start depending I guess nine months into two covid. Jason: [17:01] That's a calendar year ago but it was actually four years of Lifetime ago. Scot: [17:06] Yeah it feels like it for sure, all right so my first thing I always like to kick off with an Amazon prediction so my Amazon prediction last year was that we would move to same day Prime by opening a huge wave of neighborhood DC's. And they would be near dsps and I got that one right that one, don't feels obvious like I don't feel like I was making too much of a prediction but at the time I remember being worried about it because I think they they were still doing most of the dsps this is where time dilation happens during covid the four-year thing you mentioned. They've just built up an incredible amount of. They call him I called him neighborhood DC's they call him delivery stations now I think is the official name where they have built you know just tons of these these interesting new. Footprints where they house a bunch of these dsps Under One Roof and then they for deploy a lot of that days things to be delivered into that out of a fulfillment center and then the the dsps just line up and deliver that stuff so it's been really interesting to watch them build that, so I would count that one as a win. Jason: [18:18] Yeah no I totally agree I'm often surprised by how many people still have this outdated model of Amazon and they imagine the Amazon is primarily doing two day shipping. Scot: [18:29] Yeah no it is they have really cranked it up especially I'm out I'm in North Carolina you're in Chicago and you guys are probably getting stuff you know. Jason: [18:38] Yeah we we are we were in early market for same-day delivery and we're kind of an epicenter for a lot of of their delivery products and the vast majority of stuff I order, um my I get two offers for wind to have it delivered between 4 and 8 a.m. or between 8 a.m. and 10 a.m. the next day. So some stuff I get same day I would just tell you there were I was listening to an Amazon earnings call and someone asked them if they were were concerned about all these ultra-fast delivery services that were popping up all these VC funded, you know 15 minutes to 1 hour delivery services that are mostly sent in one one-block radius in New York and the Amazon CFO was like. You know those those Services deliver, an assortment of 4,000 skews to a five-block radius we're currently delivering about 400,000 skews Same Day to all of America we feel pretty good about our offering what's the. Scot: [19:42] Boom drops the mic walk. Haha okay sticking to Logistics which is interesting because I was poking around and Logistics a year ago and I you know in hindsight the perfect prediction would be there's going to be a supply chain problem but I did not I did not pick that one sadly instead I said you know Shopify, so my logic here was kind of looking at the chessboard at that point in time we all know Amazon's kind of, turning the guns toward Shopify if your Shopify you know those guns are turning towards you so one of the things you do is try to get into the delivery world. They have tried but they pretty publicly there was Toby was in, was it Bloomberg he did kind of a cover story on one of the Business magazines and in there he basically admitted that you know hey were. Pretty bad at this fulfillment stuff and I think they had a customer say that they're embarrassing really bad and you know it almost seemed like there are not going to go deeper into fulfillment so I missed on that one but Asterix. I think they should and I think it's going to be a pretty big strategic. Blind spot if you're an arm the rebels in e-commerce you're gonna need to help them get the products to consumers in that last mile that's going to be where the battle is and I feel like it's a bit of a soft underbelly for them right now. Jason: [21:11] Yeah generally agree. An interesting side note that the CEO of instacart just got named to the Shopify board and I inadvertently started a little bit of LinkedIn debate about like how soon it would be before that was a potential conflict of interest and a lot of people chimed in that they thought instacart was a potential acquisition Target of Shopify which might be one way for them to to get into the the Fulfillment business. Scot: [21:48] Yeah but even that's a conflict of interest rent mean proofs proves your point not you know. Jason: [21:53] Yeah I mean clearly I'm right but that's a separate issue. Scot: [22:07] You don't think this will ever happen and everyone else in the world thinks it will so you know, this one's tricky I could make some argument that they are doing more on this and then that same article they do start to talk about it being more of a central by it I'm talking about the shop app that they have, um doing more around that centralizing your your Shopify, you know whole experience in aggregate including some search functionality they have added some search haven't looked at lately but I've seen to Twitter traffic that they have added some stuff there, but I'll all I'll take the L on this one I but I still think. That it's going to be something they do more of down the road probably in a different flavor than a traditional Marketplace but I think it's an area that they have to explore it is more in their wheelhouse than the Fulfillment sign. Jason: [23:02] For sure I certainly agree with that and I would encourage you to double down on that prediction for Fort Wayne tonight but I will say like two things I was clearly wrong on the shop a. [23:17] Like is getting much broader adoption than I would have expected because I would argue it's mostly a shipping tracking app. It has some like Merchants search capabilities it doesn't really have product search capabilities at least in general release but it's. At various times it's been the most downloaded retail app and it's bouncing around in the top four so a lot of people are getting that app and so per your point, you know they have a bunch of merchants they have a bunch of users with this app which is really hard to do this app has some Marketplace of like features and then you know I don't know you I'm sure you saw but bradstone, got to go visit Shopify and do an interview with Toby and he in his article he kind of painted a picture that that. Internal stakeholders at Shopify were wildly divided and didn't agree about. If Shopify should do a Marketplace and what it would look like and so that that makes me think. They're you know having the same debate we are and Toby himself weighed in that he's like. You're not going to see us compete with our Merchants so if they do a Marketplace as probably going to have to look. You know considerably different than the kind of marketplace I think some people are thinking about but but it's an interesting space. Scot: [24:41] Yeah, yeah and then so we'll see if this comes up again in predictions and then I the super risky thing I did last year was made a covid prediction I've learned my lesson there remember to week two weeks and we're done anyway we my prediction was we will be shocked how much quote-unquote zero friction addiction sticks I've seen 30 to 40% repeated a lot and I think it's going to be much much higher and then so I think there is some good data that points to that we haven't seen a decrease in the growth of you know online even as we've gotten into a post covid World we're kind of getting back into one with with all the Quran right now but and to your point there's a lot of interesting data like like Dan and his group did that show that it's been pretty sticky. Jason: [25:37] Yeah no I think that's totally fair a lot of people are in correctly predicting that that it's going to revert but yeah I think I think all the tangible evidence points to it being sticky. Scot: [25:52] Okay and then my fifth prediction was given all the heat around these specs and IPOs that we would have 20:21 would be a banner year for digitally native vertical Brands either going pilot getting Acquired and doing IPOs, I want to made this one I felt like it was going to be much more around these facts but then the specs pivoted and started doing these really weird esoteric things that end up, not doing very well but where I kind of snuck the win out on this one is we did have three companies that we've tracked in our kind of the oh geez of digital native vertical Brands go public so we had War be Rent the Runway and I'll Birds now they haven't done great since they went public but they did get out and they had you know the kind of met their pricing and went public and are still out there and so so there you go so that was a yes. Jason: [26:51] Yeah yeah I will certainly give that one too. Scot: [26:54] All right so at this point I am let's see three yeses and to nose. Jason: [27:02] So we're tied so the bonus comes up what was your bonus. Scot: [27:07] My bonus was that there will be I was much more optimal another covid so I got lucky on the first one I felt like we're going we're going to in 21 we would be post covid and people would kind of stop buying stuff just generally and really focus on going out and doing things and seeing the world over the holiday I went down to Orlando for three or four days and it felt like, there's definitely a segment of the population that that's out there doing that they all seem to be in Florida right now and maybe some in Texas but I think if you look at the data there's nothing to really support that in fact the we've talked on this show about the e-commerce data and Retail data and it all seems quite robust so we have not hit a.n.t. consumer materialism wave that that I predicted. [28:03] Cough so it turns out that I think we're effectively tied is that I'm doing the math right on. Jason: [28:09] I think you are and and I think all our listeners will agree that a tie is basically a huge win for me. Scot: [28:15] Given our past history yes it's the first time we've had a feels like soccer or that we're in England where that is a possible outcome. Jason: [28:23] Exactly I think I think my high school soccer team just just tied your your Premier League team. Scot: [28:31] Yep cool so yeah that but you know it fun to do these things because I would say in a volatile world like we aren't getting half of these things right I think you would agree with me that we're pretty awesome you know we there's other people out there that make predictions and they throw so much junk against the wall they get like five percent right but and they do big Victory lap so I think if you look at our records pretty good pretty solid. Jason: [29:01] Yeah no I agree and I don't think we sandbag very much either I mean sometimes in hindsight they feel like sandbags but I feel like we stretch ourselves so, so I will definitely take them. So how are you going to like pay off that that self-congratulatory pat on the back Scott you're gonna have to come up with some Whoppers for this year. [29:32] I don't I don't what do you want to do I'm sure we lost all our listeners except for my mom so whichever she prefers. Scot: [29:39] I'll go first so so my predictions this year, so my Amazon prediction number one and this is for 2022 is I predict Jeff Bezos is going to have a midlife crisis and run around it was in Miami with hot chicks and other exotic locations and take a lot of selfies for Instagram. Jason: [30:05] If you had said in dubious fashion choices than I might give it to you. Scot I'm not sure but I think as of January 6 that's already happened. Scot: [30:16] Yeah yeah yeah okay you got me that ones are what they call retcon and in the world where it has already happened alright or series prediction is I'm gonna I'm gonna double down kind of on your prediction I'm going to steal your prediction from last year and say I guess this isn't exactly what you predicted but I do feel like, Amazon is very serious about Shopify in that same article I was talking about where, Toby was there a next Amazon you know an anonymous sex annum Amazon Source you have to take that with a grain of salt said these guys crushed us they came out of nowhere and destroyed us and where we were blindsided, that seems. [31:03] Pretty pretty Amplified but I do think they have their guns trained on them so I'm going to say we're going to see Amazon come out with a serious competitor this year, and I think it's gonna you know, I imagine it could even be like a web store offering even though they started this and got rid of it I think they're going to get pretty serious about it and now I could see them come out with a, you probably won't have a lot of Headway in the first year but they're gonna I think they're gonna go right out these guys the thing that's hard to predict, there's some interesting things they could do it with AWS and headless so I'm going to kind of give myself a little space there that it could be headless versus kind of a more monolithic type SAS kind of an offering but yeah, so I think they're going to get pretty serious about. Jason: [31:54] Okay yeah yeah I could I like that I can't I see that and you could imagine bundling like AWS Commerce platform with a bunch of the traditional merchant services from Amazon like fulfillment and payment and stuff like that. Scot: [32:08] Another Amazon one is and you kind of foreshadow this when you're talking about the Amazon thing there's there's hundreds of millions of dollars if not billions going into these do have a name for them fast. Jason: [32:23] Yeah well ultra-fast delivery is the. Scot: [32:25] Ultra-fast slurry okay these companies so there's like go puff and there's one that has like an animal name like. Gorilla yeah Joker yep yeah I've been I don't know how DC is letting them do that one but anyway you know so these guys have raised billions of dollars and it's a hot Market but I think Amazon is kind of going to train their guns on that and I think they're going to put a real hurting on them, I think we'll see I'll be pretty risky here and say one of them will close their doors one of those so I'll put it here in the notes so to keep me honest so, go puff gorilla and or Joker one of those three big ones probably doesn't make it out of 22. [33:19] Okay, so that's 1/2 so this is my third one I realize I'm actually short protection will have to do one on the flyer the Bezos wanted kind of counted in my head but that was early prediction you know the at the end of 21 we had Facebook changes name to metaverse and since they did that you can't throw a rock without reading a thousand articles about the maneuvers. In fact today on Twitter there was a big Walmart video you know kind of showing an metaverse shopping experience mock-up kind of thing that was kind of fun, the I think there's going to be I think there should be a lot of hype and 22 I'm actually kinda already burned out on it and a lot of you know what does metaverse shopping look like and there's going to be lots of excitement and smoke but no fire and no Ray. So I think it's going to be the flash in the pan when we look back on 22 so I think it's going to not a lot of activity there I think it'll be like, you know chat Commerce and social commerce and a lot of these things that had a lot of buzz in their era AI Commerce machine learning Commerce all these things that had huge amount of Buzz and then turned out to not really have substance. [34:37] Okay and then the inverse of that is I think one of the things that there's been a lot of talk about that is going to have substance is live streaming of kind of video live video e-commerce integration so I think that one is going to be more mainstream there's there's a little. Amazon has tried this and failed it's big and Ali Baba I'm I'll qualify this and say in the u.s. too so I'm not trying to be sneaky here and you know, there's not a lot of I've seen some startups trying to get traction here but they're in like supermicro verticals but that's how I things get adopted is you kind of build some habits in these small behaviors and then they can go mainstream so I think we'll look back on 22 when we do our 20:23 show and we will see live streaming has gone mainstream so that is one and then let's see, I may have to come back with another. Jason: [35:35] Yeah I'll let you you can make fun of mine and then you I'll let you cherry pick after hearing my. Scot: [35:41] Okay any reaction to my my for so far. Jason: [35:44] No I so a I should have come to rehearsal because I feel like we're gonna get off the right off the bat with some potential overlap but. I definitely. [36:00] I think we're going to see some way Amazon very seriously competes with Shopify I think it's not going to be the way most most people expect that your your description seems totally plausible is we're about to see I have a, an opinion on some of these ultra-fast delivery services and The Meta versed both of which you touched and then I got to be honest I am nervous about live streaming like I could I definitely am not bearish I could see it going either way a ton of Commerce happens via live stream in China and we're starting to get a lot of Commerce. Video content get consumed in the u.s. what's not working very well at the moment is the buy now button at the end of those videos and so you kind of have, indirect livestream commerce's is already starting to happen in pretty high volume here in the US and a bunch of people are investing in in. Trying to take it that that last click. And I have reasonable confidence that it could work so at the very least I know a lot of retailers and a lot of my clients are going to be trying it pretty pretty heavily this year so we shall see. Scot: [37:15] I came up with my fifth. Jason: [37:17] I knew if I just rambled that I would give you enough room for one. Scot: [37:20] Yeah this one is a risky one but you know our friend Faisal started Fabric and I'm going to predict that that company has so much Buzz they're going to get acquired in this year so that was risky because they're super early stage where is it it'll it'll it'll have to be a big number to take them off the table at this point but I think someone's going to going to, pay that number. Jason: [37:45] Yeah to fun ways that could go I feel like he's pretty – on Shopify so it would be awesome Shopify acquired them but you could also Imagine AWS acquiring them and and making two of your predictions come true. Scot: [37:59] Yeah or or adobe or you know IBM IBM's kind of on the sidelines lately they've got a whole. Jason: [38:07] Yeah yeah they kind of got out of the those software platforms I would be I mean but not to say they couldn't pivot and come back in for sure. Scot: [38:14] Yeah yeah and then let's see I said Adobe I've and Salesforce. Jason: [38:20] Interesting okay well I'm going to jump into mine and again we did not dedupe these I bundled several of yours and made them more negative, so my first prediction is what's not gonna happen and I lumped in a bunch of very trendy things that people are super hyped about and I said I don't think any of these are going to be economically meaningful in 2022 so it's in ft's which I know, are near to your heart than mine I I do believe there's some Niche use cases where in Ft is totally makes sense and I know you play in some of those, those Niche cases but there are so many people that just think crypto in general and nft is in particular are going to be, a huge part of Commerce I don't think they're going to be very economically meaningful and in 2022 even more so I don't think web 3 is going to have any impact I'm starting to get a lot of questions about, how Bigcommerce is going to change because of web three in my answer is it's not, I think the metaverse is going to fail pretty miserably as a Commerce, play and I'm also going to say all of these Venture funded ultra-fast delivery startups are going to fail so that's not to say that. [39:36] Amazon, instacart or even go puff couldn't win but like all these these Sand Hill Road back startups that are delivering in Manhattan I don't think any of them are gonna change consumer Behavior enough to really matter economically in, so that's my Chrome Legend hey all the cool things that talking has like to talk about aren't very important one. Scot: [40:02] Well I don't think that overlaps too much no no I I disagree but we'll see. Jason: [40:09] Knox awesome those are the. Scot: [40:11] What's your specific prediction like there will be less in ft's and 2022 and is in of T volume. Jason: [40:19] Yeah yeah. Scot: [40:20] Let's put that one down oh that's that's the prediction last in a $50 transacted. Jason: [40:26] Well so like I don't so full disclosure I can throw out a number but like I don't know of a credible source for tracking in Ft Revenue dollars. Scot: [40:40] Yeah there's some there's gmv trackers so open sea and is the biggest Market Place than there's like three or four others. Jason: [40:46] Okay I was mostly thinking like the there's there's not going to be meaningful revenue from the US Department of Commerce retail sales data that's enough. Scot: [40:57] Wow that's there it's going to take them 50 years before they can spell it. Jason: [41:02] Well I know they're not going to report it that's what I'm saying but I'm just saying like there's an Amazon Walmart the the top 10 eCommerce sites in the US are not going to have any meaningful revenue from in FTS. Yeah but nobody's going to do anything with webbed three in Commerce and nobody's going to buy anything with a virtual reality headset. Or from gorillas outside of one block. Scot: [41:40] Okay. Jason: [41:42] So I'll try to get less – now a company that we've talked about on the show a couple times that people don't talk about enough and I'm kind of using them as a surrogate for a whole new trend but is the the. Ultra fast fashion brand Chien which is a apparel brand the. The they're estimated to have sold about 10 to 15 billion dollars worth of Apparel in 2021 and I think they're going to exceed 30 billion dollars in apparel sales and 2022 which is going to make them. A top 3 apparel retailer in the US. [42:24] And I said they're kind of a surrogate for a trend this is democratized merchandising so this is, instead of Mickey Drexler deciding what the cool kids should wear in high school instead of easy deciding what the cool kids should wear in high school this is, algorithms watching what the cool kids post that they are wearing in high school on tick-tock, and then making it in two weeks and selling it to all the kids that want to be cool, and so it's kind of the perfect manifestation of what Amazon called hands off the wheel where they stopped having Merchants pick products and instead kind of use data to, to drive their catalog and I think she is gonna continue to have great success there and it's, it's disrupting the fashion industry more than a lot of people in the fashion industry realize but I think, it's going to become extremely evident in 2022 that it's disrupting the apparel business. Scot: [43:23] And then are you are you putting a specific number on it and if so how much is that over last year. Jason: [43:27] Sorry I thought I said it yeah so I think they're going to sell more than 30 billion dollars of Apparel in 2022. Scot: [43:34] What they do in 21. Jason: [43:36] The estimates they're not public but the estimates are between 10 and 15 billion so more than double. Scot: [43:42] Okay all right. Jason: [43:44] Again not trying to sandbag. So third one and I guess I'm going back to my my negative Nelly so one of the hottest trends of 2021 and the prediction I have seen the most people do and I fully expected you to do so I'm, totally bombed is that buy now pay later services are going to continue to explode, and in 2021 by some estimates they grew 30% in their you know wildly adopted, it's the fastest-growing payment type in in e-commerce in 2021 you're starting to see it expand from just e-commerce to in-store purchases as well, and it's moving down Market to you know from from expensive High consideration items to a lot of lower cost more impulse items so by all accounts the future of payments and credit is buy now pay later in my prediction is that it slows down and 2222 I'm not saying it's necessarily going to flop, but I think you're going to see only about 15 percent growth over 20. [44:52] One versus the 30% that they had this year so I think the rate of growth Cuts in half and I think there's a couple reasons behind that, I think the bill is going to come due for a lot of these products and a lot of these consumers are not going to be able to pay for the products they purchase, and I think you're going to start to see a ton of writedowns and the financial reality of renting money to subprime lenders without like significant collateral is going to kind of start to, catch up with some of these companies I think the Credit Agencies are going to start to lean into this more and that's going to take away one of the competitive advantages that they had and I think we might even see some some regulation because like there's some, some very financially responsible companies in the buy now pay later ecosystem but there's also some, some kind of rebranded payday loan players in that space and so I think there's just going to be a lot of erosion of trust and and some- stories that will slow down the rate of growth. Scot: [45:59] Gaap negative or positive on the next. Jason: [46:04] Yeah we're going positive again I'm yeah I'm alternating I'm and I'm going to throw an Amazon one to you I think Amazon opens more than 100 grocery stores in 2022. Not whole food so Amazon Fresh doors, um and that you know again that that would be about three times as many stores as they have ever opened Amazon book stores or five star store so. It's not the thousands of stores that some people have talked about but it's also a much faster pace of brick-and-mortar growth than we've ever seen from Amazon. Scot: [46:41] Yeah that I will be excited to see this one. Jason: [46:46] And you know most of them will be in Chicago so that'll be fun for me. Scot: [46:50] Of the 500 stores they'll be like 75. Jason: [46:54] Yeah exactly I'll be surrounded, yeah so I think that's a super interesting space I've talked about it a bunch it was you know the growth of digital commerce was one of my grocery commerce was one of my big ones and I think it's just the big category of consumer spending that Amazon. Doesn't play meaningfully and Whole Foods is very Niche and I just think it's a moonshot imperative for Amazon to win Grocery and I don't think you can win digital grocery without having brick-and-mortar grocery as well. [47:29] So that I think gives me 4 so my last one, is I think there's going to be a lot of interesting Activity one of the categories of e-commerce I'm most interested in watching in 2022 is Last Mile, there's going to be a lot all kinds of different Evolutions but the specific prediction I'll make is one of these new, um I'll call them FedEx UPS competitors is going to sort of get get acquired or have some meaningful liquidation event and so so there's a couple of startups that are kind of, Next Generation parcel delivery services like vejo index delivery ship IAM is a bunch of X Amazon guys and I'm going to say that, instacart original business model could even slow down and instacart could get acquired, primarily to be a last mile delivery service by someone so so one of those companies gets acquired, as part of the buzz around owning your own Last Mile in 2022. Scot: [48:38] Yep and does that include so there's all these like ship Bob Shapiro those kind of guys your that's not. Jason: [48:45] I think there's going to be a lot of I think they're an interesting space to in most cases they're not actually delivering products they're they're facilitating delivery of products or tracking delivery of products and so I tried to keep this pure to the, guys that have access to trucks and are driving products to people's houses but. Yeah so no I'm not I won't call it a win if it's if those are the only ones that get acquired. Scot: [49:13] And then any other bonus prediction so I kind of had to stretch to get my 5 but anything else you want. Jason: [49:20] So so yeah you know I do all my best thinking on dog walks and so I you know I might thinking about all these cool predictions and I came home with like 40 of them and so I struggled to narrow it down to these five and so then kind of the next class of predictions that just sounded. Too easy in a way but you know last year digital Commerce kind of slowed down a little bit compared to Brick and Mortar Commerce it was a huge year in brick-and-mortar growth. Because e-commerce had grown so fast the year before so I think that that. That Paradox gets inverted again this year so I think we see way faster e-commerce growth than we do brick-and-mortar growth, I think curbside which was a big thing in 2020 and 2021 becomes even bigger thing in 2022, I think you're gonna see a ton of stores redesign their parking lot I noticed H-E-B just opened a new store and as 26 Bays, for curbside pickup so I think those those are the big things in the you know the big macro story that we'll see in 2022. I recognize that less controversial than my official five predictions. Scot: [50:34] Yeah okay cool I think that's a good set of 10 predictions there any anything else you want to just let people marinate on that for little bit. Jason: [50:42] No I if folks strongly agree or disagree I'd love to hear about it on social media and if you have different predictions, throw them our way on Twitter Facebook and we'll be happy to debate them on our next show. Scot: [50:59] Yeah yeah maybe we could introduce some listener predictions as part of this going forward that would be kind of fun it also reminds me we need to we haven't done a deep dive in a while and maybe you know we touched on in ft's web 3 meta those are pretty good topics for deep Dives maybe even buy now pay later so usually we hit a new slow down in the e-commerce world, kind of in that March April May time frame after we get the q1 results so maybe we'll throw some deep Dives in there so that, if those topics are interesting we're happy to kind of go deep on those I guess looking back the live streaming when I don't think we've done a deep dive on that either so those are all areas where between the two of us we have a pretty good bit of domain knowledge that we could make sure that is out there and available if you want to go deeper on one of those topics so let us know think about your preferences on 20-22 content around that type of a topic as well. Jason: [51:56] Yeah I will look forward to all of that. And of course if you did find this show fun at all or you learned anything the best way you could reward us as jump on iTunes and leave us that 2022 five-star review all those reviews you wrote in 2021 don't count anymore so you need to get back on iTunes and leave us up fresh review and feel free to make fun of Scott in the review that's always appreciated. Scot: [52:22] Or Jason's title. Jason: [52:24] One of my many titles. Scot: [52:25] All right thanks everybody. Jason: [52:29] And until next time happy commercing.

What It’s Like Being an Inclusive and Diversity Leader E1 In this first episode of Under the Rug, Mary invites her mother, Andrea Seitz, to speak about her job and experiences as a Diversity, Equity and Inclusion Leader at Amazon, AWS. They have a discussion about why diversity, equity and inclusion is so important and […] The post What It’s Like Being an Inclusive and Diversity Leader E1 appeared first on Business RadioX ®.

What It’s Like Being an Inclusive and Diversity Leader E1 In this first episode of Under the Rug, Mary invites her mother, Andrea Seitz, to speak about her job and experiences as a Diversity, Equity and Inclusion Leader at Amazon, AWS. They have a discussion about why diversity, equity and inclusion is so important and […]

AWSとはAmazon Web Servicesの略で、Amazonが提供している100以上のクラウドコンピューティングサービスの総称です。 クラウドコンピューティングでは、手元に1台のPCとインターネットに接続できる環境だけで、サーバーや大容量のストレージ、高速なデータベースなどを必要な分だけ利用できる。 ★Amazon Web Services https://aws.amazon.com/jp/ ★ジェフ・ベゾス氏AWS紹介Youtube紹介動画 https://www.youtube.com/watch?v=OdQt0hF8jOo&feature=emb_logo ★Strainerの記事 https://strainer.jp/notes/2300 ★SKAYARCHの記事 https://www.skyarch.net/proactive/cloud/aws/aboutaws_01.html ★だいじろうのTwitter（ご意見お待ちしてます！） https://twitter.com/daijirostartup #海外　#スタートアップ　#AWS #Amazon #クラウド #サーバー #ストレージ #オンプレミス --- Send in a voice message: https://anchor.fm/daijirostartup/message

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Welcome! Craig discusses big problems found with the Microsoft Azure Store and provisioned servers that were part of this massive command and control network run out of China.  For more tech tips, news, and updates, visit - CraigPeterson.com --- Read More: Traders set to don virtual reality headsets in their home offices What's on Your Enterprise Network? You Might Be Surprised Malware Attacks Declined But Became More Evasive in Q2 One of this year’s most severe Windows bugs is now under active exploit The VPN is dying, long live zero trust Shopify's Employee Data Theft Underscores Risk of Rogue Insiders Microsoft boots apps out of Azure used by China-sponsored hackers WannaCry Has IoT in Its Crosshairs Love in the time of Zoom: Why we’re in the midst of a dating revolution --- Automated Machine-Generated Transcript: Craig Peterson: [00:00:00] We're going to talk about Microsoft and the Azure store and President Trump and WannaCry. Do you remember that terrible piece of malware? It's back. Hey, you're listening to Craig Peterson, make sure you follow me online as well. Craig peterson.com. It is a pleasure to be with here with you here today. I had just so many great discussions with people this week. I sent out a three-minute training, the first three-minute training. I'm going to be doing more and more of these here as time goes on. This training got just a plethora of responses from people. I'm so happy I could help out many people this week, including a bunch of tiny businesses, and that's what I love to do. That's why I do this, right. Help you guys out a little bit here. Now. I have customers, big paying customers, usually companies that are regulated and need cybersecurity. But for the rest of you, I still will help you just as much as I can. There are some things you need to do, and that's what this is all about. Well, you know already about the Apple app store. I've talked about it many times. Do you know about the Google play store? Both of those are stores that you go to to buy or download little applications that you can use on your smart devices. They're both tremendous small stores. Apple tends to do a better job when it comes to watching for security problems than Google does. Both of them tend to take about a 30% chunk of any money that you pay. Then of 75% or 70%, I should say to the developer. Well, Microsoft has a store, as well. You might have heard of Azure. That's a service that Microsoft has, and it is an online service. It's a cloud service. It lets you run Microsoft Windows in the cloud, in a data center. That's managed by Microsoft, run by Microsoft in most cases. Also, by the way, it'll let you run various types of Linux, and that was a bit of a surprise, but anyhow. That's the Microsoft Azure story. Then we also have over on Amazon, and that's called AWS Amazon web services. There is a lot of others too. We tend to use some of the IBM stores, including the IBM mainframe stuff, which has just been unique to us, just how good those things are. The IBM mainframes, how fast they are, and how inexpensive they are for computing stuff. It's just amazing. Anyhow. Microsoft and IBM and Amazon and anybody that has one of these cloud services also have a store. And it's much like the stores that you would expect to find for your smartphone. But in the stores where we're talking about here, Azure, or these cloud services, they are selling and leasing or renting fully configured machines. So you can go on, you can say, Hey, I want a new Ubuntu version, blah, blah, blah, or red hat enterprise Linux, which is what we tend to use, version this and such, and maybe you want also to use containerized stuff. And so they have all of these things pre-configured you can say, Hey, I want a database engine and Tada, poof, there is a database engine for you. It can be either poorly maintained by them. And you have no idea what it is. It acts like MySQL or whatever other databases you might want it to appear to be. Perhaps it's your version of that. Those types of apps are available in these cloud services to use those terms loosely. Well, earlier this year, it turns out, according to Dan Goodman, who wrote an article over at ARS Technica up on my site. Still, members of the Microsoft threat intelligence center suspended 18 Azure active directory applications because they determined they're part of this massive command and control network run out of China. Now we can also talk here about commanding control because your computer might even be part of this. So, if you have a computer and that computer gets hacked, one of the reasons they hack it is to use it as part of a command and control network. Now here's the idea behind the command and control hackers. They're not going to ransom your data. They're not going to try and do something nasty with it. These command and control guys don't care that your computer can do anything other than connect to the internet. So one of the things they'll do with command and control is to do what's called a denial of service attack against somebody. So there's some company they don't like, or maybe they're ransoming. This company says, Hey, listen, we'll shut down your website unless you pay us a million dollars. What they'll do is he'll use a thousand, 10,000, however many computers they have in their command and control network. They'll use them now to send off fake website requests to that company. Then that company's servers just get hammered, and nowadays, we see in the order of tens or even hundreds of thousands of requests per second coming into some of these data centers and that there are services out there to protect against it. Those types of denial of service attacks. Okay. But here's where things start getting interesting. They all also use command and control systems to send out emails, do phishing, and even research them. So command and control just as it sounds is they have control of your computer. They send commands to execute. So, in this case, what we're finding is that Microsoft had these apps that were in there as your active directory, their cloud service, that were part of this commanding control network. 18 different applications. Again, we're not just we're not talking about an app, like an app that would be in the windows phone. Suppose you are sad enough to have bought one and no longer getting support. So it is a difference. It's a pretty big difference. These are the types of applications that are used by businesses, database applications, web server applications. All right. It's not just the fortune 500 companies that are doing this anymore. We're talking about the smaller guys who don't have the resources to be able to check. You know, between the two of us, most of these fortune 500 companies aren't doing what they should be doing either. Hence all of the hacks that we've been seeing. So this hacking group that Microsoft is calling gadolinium had the cloud hook, hosted applications, and had also been storing stolen data in a Microsoft one drive account and used that account to execute various parts of their campaign. Now, Microsoft, Amazon, all these other cloud providers have been touting how secure it is, how fast these cloud services are. They're just so much cheaper. Oh, this scale that comes from renting computer resources. I remember describing what they were hoping for a way back when with cloud services, that it would be like the power company who cares where the electricity comes from as long as you flick the switch and the light comes on. It is no longer like that. The hackers have realized now the benefits of hacking the cloud surfaces and, in this case, using them to share their stolen data to store it, et cetera, et cetera. And now, there's so many free trial services and one-time payment accounts. Hackers have been able to get these different things up and running quickly. As I mentioned before, they can even buy their materials, their software to do the hacking, do the phishing, do the ransomware, and sell the decryption stuff. They even have banks that'll handle the transactions to convert Bitcoin into the US or whatever dollars they want to. Very very big deal. Earlier in the show, I've talked about this before some of these tools are in use right now, particularly in Windows PowerShell, that are not well secured and legitimately used by the system. Administrators have become a huge, huge tool for the bad guys to use. They're so widely used for legitimate tasks. It's tough to detect the reuse of these illegal tasks. This group, this gadolinium group, has recently started using a modified version of the PowerShell empire post-exploitation framework. It's open-source. Can you believe this stuff that's going on? So it's terrifying. Agility and scale, frankly, are working both ways here against us, and for us, I am very concerned about some of the stuff that's going to be happening. If we've got some of these bad guys that are out there, right? Some of these terrorist groups, domestic terrorist groups, are burning our cities right now and shooting people, shooting cops, et cetera, that these terrorists will be using these same techniques shortly here in the US. You probably already are. We already know it is using them to finance and fund their operations. Very, very scary stuff. So, one more thing real quick before we go. That is WannaCry. Very, very big deal. SonicWall is reporting a 109% increase in ransomware in the US during the first half of 2020. Keep your eyes out. It is very, very inexpensive for the bad guys to do. Get ransomware on your systems. They have high rates of return on it with hardly any risk for them and even outsourced it. We've talked about that before. It is a preferred method of attack for cybercriminals. So be very, very careful out there. Get the right kind of security. I was talking with a couple of companies this week. We're going to be putting some of the prosumer Cisco stuff in place to help out a small company and some of the commercial hardware you need to have if you are a regulated industry. So we'll be doing some of that this week, too. So I'm going to be kind of busy, but I plan to release two videos this week, two training videos, and knock on wood. One will be on Tuesday, and one will be on Thursday, but we'll see how it goes. I only got one out this week. You've been listening to Craig Peterson. Have a great week, and make sure you visit me online. me@craigpeterson.com. --- More stories and tech updates at: www.craigpeterson.com Don't miss an episode from Craig. Subscribe and give us a rating: www.craigpeterson.com/itunes Follow me on Twitter for the latest in tech at: www.twitter.com/craigpeterson For questions, call or text: 855-385-5553

You've made an enormous investment in your ERP system. It holds all of your company data in one nice software suite. You have your part masters, BOM's, routings, set-up times, part numbers, suppliers, customers, and accounting information all set up in nice SQL tables. Now you're concerned because like the great consultant scam that was Y2K you are hearing about Industry 4.0, Big data, etc. and you are concerned about your ERP system- which most likely you purchased because of Y2K. Maybe you are suffering from FOMO. Let's discuss the ways your ERP system can support Industry 4.0. Updated ERP systems already have the infrastructure built into them to support Industry 4.0. They can collect and handle data from many inputs. They use data to provide information, which is the reason for collecting the data. Here are several more benefits: Benefit #1- Eliminating human inputsBecause your ERP will collect inputs from different areas, the data collection will be automatic, cleaner, and real-time. The data quality will improve. Eliminating the human element from the data collection loop frees employees to be more productive. I am working with a machine shop in Santa Ana, California who is implementing a new ERP system. We are using tablets on the floor to clock into jobs, scan routers, and enter production and scrap quantities. This information is live as activities occur. We are using real-time information to bring in the material on a JIT basis- freeing up space and cash. Both of these are important considerations for a small company. Benefit # 2- Dashboard and alertsRealtime data collection from a machining center offers all kinds of dashboard opportunities and alerts. If you want to measure coolant levels and trigger an alert if they drop below a certain level, you can. You can set up an alert after a certain number of cutting cycles for a tool. If you have tool break detection on a machine and a tool breaks, it could trigger the vending machine to dispense another tool. Performance dashboards can share company performance in real-time. I know a company that sends texts when any scrap occurs within their processes. Information-sharing opportunities are endless. Benefit # 3 Level Playing FieldBecause many of the new ERP systems are cloud-based and cloud cost is based upon usage, smaller entities can have the same level of performance information that large companies have. Data storage solutions such as AWS (Amazon), Azure (Microsoft) are the two largest. In the example of capturing the machine coolant level, how often do you need to collect that information? My guess is once an hour is often enough. Understanding how often to collect information and upload it to the cloud is a key element to mitigating cost. Understanding how to use Big data with your ERP system will enable you to perform like a billion-dollar company! As always, it's an honor to serve you, and I hope this helps you and your organization get a little better today. http://getpodcast.reviews/id/1499224100 (Rate and Review Here) More show notes are https://americanlean.com/blog/big-data-and-your-erp-system/ (here) https://americanlean.com/contact/ (Schedule a free 1/2 call) with Tom Reed.https://www.amazon.com/dp/1645162818 (Buy) the Lean Game Plan Follow me on https://twitter.com/dailyleancoach (Twitter@dailyleancoach)Join me on https://my.captivate.fm/www.linkedin.com/in/tomreedamericanlean (Linked In)

最新情報を "ながら" でキャッチアップ！ ラジオ感覚放送 「毎日AWS！」 おはようございます、サーバーワークスの加藤です。 今日は 7/20 に出た11件のアップデートをご紹介。 感想は Twitter にて「#サバワ」をつけて投稿してください！ ■ UPDATE ラインナップ Amazon AppFlow が 新しいSaleforce との統合機能をサポート Amazon SQS が新しいコンソールエクスペリエンスをサポート AWS Global Accelerator に ALB へのワンクリック設定機能が追加 Amazon Connect に通話録音APIが追加 AWS Systems Manager Automation の同時実行数上限を引き上げ Amazon EC2 オンデマンドキャパシティ予約のメトリクスが Amazon CloudWatch で監視可能に Amazon EMR が Amazon EC2 G4 インスタンスをサポート AWS Solutions Library に AWS Content Analysis が追加 AWS IoT Device Tester for FreeRTOS v3.1.0 が利用可能に Migration Evaluator を発表 - AWS のビジネスケースを素早く作成 AWS Managed Services がコンテキストベースのプロアクティブなインシデント通知サービスを提供 ■ サーバーワークスSNS Twitter / Facebook ■ サーバーワークスブログ サーバーワークスエンジニアブログ

最新情報を "ながら" でキャッチアップ！ ラジオ感覚放送 「毎日AWS！」 おはようございます、サーバーワークスの加藤です。 今日は 7/14 に出た3件のアップデートをご紹介。 感想は Twitter にて「#サバワ」をつけて投稿してください！ ■ UPDATE ラインナップ 新しいデジタルコース Amazon FSx for Windows File Server Primer を発表 AWS Key Management Service が VPC エンドポイントポリシーをサポート Amazon Athena が Amazon S3 ベースのデータレイク内の Apache Hudi データセットへのクエリをサポート ■ サーバーワークスSNS Twitter / Facebook ■ サーバーワークスブログ サーバーワークスエンジニアブログ

Now that COVID19 has driven everyone to the safety of their homes, many organizations realize that they don't have an effective cloud strategy. Let me re-phrase that, they don't have ANY cloud strategy. You need one. My crystal ball broke, so I can't tell you what the future looks like, but I think it is safe to say, there will be more employees working from home. What is a cloud strategy? Is it a simple manifesto that states we will store everything in the cloud? You probably have a strategic plan. A cloud strategy is a strategic plan focused on handling digital assets and artifacts. It shouldn't stand alone but it should be a supporting piece of the overall strategic plan. 1. Get more than IT's inputOne of the worst things you can do is develop a cloud strategy with only the IT group's input. It needs to be holistic and take into account the needs and requirements of all aspects of the business. What are the needs of the manufacturing floor? How will data be transferred to the cloud from the many sensors attached to equipment and machines? Is it a better option to use edge computing for this information? What are the needs of the legal team? Procurement? Sales and marketing? Customer service, etc. Some information collected by these departments is confidential. Is the cloud the right place for this information? 2. Cloud strategy is not an implementation planDeveloping a strategy for deploying cloud methodologies comes first. It lays out the strategic elements and needs of the different users. It is less technical and more developmental than the implementation plan. The implementation plan, like all implementation plans, includes steps, milestones, technical validations, testing, etc. It is the “how-to” or roadmap of deploying the cloud strategy. 3. It's not too late to develop your cloud strategyYour IT team might have had to scramble starting in March 2020. That doesn't mean you can't take the time to develop a well thought out cloud strategy now. Take the time to be thorough. The recent change provides you with a better picture of what your needs will be in the future. 4. “We're moving everything to the cloud”That might sound awesome, but not everything belongs in the cloud. Some businesses can't have information stored in the cloud. I do a lot of work in the aerospace supply chain. Think machine shops. Many have been discouraged by their Prime customers in the aerospace and defense arena against storing their information in the cloud. Several Primes have told them they can't store the primes information in the cloud. While it sounds great, it might not be a reality for your business. Use your cloud strategy to ensure you understand what you can and can't do regarding this. 5. We're guaranteed savingsYou might save money, you might not. Automatically assuming your company will see huge savings is something to be cautious about. Yes, maybe you won't have the on-premise infrastructure costs, but you will have off-premise storage and data costs. Why do you think AWS (Amazon's) cloud storage makes up 13% of their sales and 62% of their operating income? I hope you consider these five elements as you develop the cloud strategy for your organization. As always, it's an honor to serve you and I hope this helps you and your organization get a little bit better today. http://getpodcast.reviews/id/1499224100 (Rate and Review Here) More show notes are https://americanlean.com/blog/five-tips-for-developing-your-cloud-strategy/ (here) https://americanlean.com/contact/ (Schedule a free 1/2 call) with Tom Reed.https://www.amazon.com/dp/1645162818 (Buy) the Lean Game Plan Follow me on https://twitter.com/dailyleancoach (Twitter@dailyleancoach)Join me on https://my.captivate.fm/www.linkedin.com/in/tomreedamericanlean (Linked In)

EP222 - RBC Mark Mahaney on Amazon Episode 222 is an interview with Mark Mahaney, Managing Director at Royal Bank of Canada (RBC). RBC is Canada’s biggest bank, and one of the largest in the world based on market capitalization. Mark is one of the top internet analysts in the world, being ranked #1 by Institutional Investor Magazine numerous times. His research on the e-commerce space are all must reads. In this interview, we discuss his new research note on Amazon, raising their price target to a Street-high $3,300 based on the impact of Covid-19 on it's business. In this broad ranging interview, we discuss Covid-19, Amazon's retail business, it's ad business, amazon web services, logistics, as well as competitors, Shopify, eBay, Etsy, and Chewy. http://jasonandscot.com Join your hosts Jason "Retailgeek" Goldberg, Chief Commerce Strategy Officer at Publicis, and Scot Wingo, CEO of GetSpiffy and Co-Founder of ChannelAdvisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing. Transcript Jason: [0:24] Welcome to the Jason and Scott show this is episode at 222 being recorded on Tuesday June 9th 2020 I'm your host Jason retailgeek Goldberg and as usual I'm here with your co-host Scot Wingo. Scot: [0:39] Hey Jason and welcome back Jason Scott show listeners today on the show we are really excited to have someone that is ripped from the headlines. While we were doing our little pre-show I Got a notification that Amazon had an all-time high right now at 2 5 5 2555 eight five five so that's interesting number and here we are in episode 2 2 2 I don't know what all that means I'm sure there's some some conspiracy theory in there and that's because yesterday one of the top internet analysts put out a comprehensive internet Report with some really juicy survey data and as part of the outcome of that he raised his price Target to a street high of $3,300 for Amazon so we've been trying to get on the show and it worked out that because of this report we were able to get him on here real quick so we're really excited to have rbc's managing director Mark mahaney as our guest welcome mark. Mark: [1:31] Hey good to be here thank you Scott. Jason: [1:33] Mark we're thrilled to have you and obviously Scott and I are both super familiar with you and and read all of your stuff but for some of our listeners that may not be as familiar with you can you give us the kind of. The quick highlights of your career and what you do for RBC. Mark: [1:50] Well I'm the oldest and longest lasting internet analysts on Wall Street I say that when I walk into Starbucks I still don't get a discount. But it is true I started in 98 the first week was his company called the eBay that called the office that where I worked at Morgan Stanley and was trying to get through to the lead analyst and they wanted somebody to understand and listen to the story and so I did my best to try to understand it way back then shortly thereafter. I met Scott Wingo so you know both of those were key events in in my life and I've tried to understand. Internet stocks for the last 20 20 22 years now. So that's that includes the e-commerce giants like Amazon and eBay and some smaller named Stitch fix and chewy online ad names like Google and Facebook Snapchat Pinterest and then a bunch of interesting one off so the travel names like booking in Expedia Netflix Spotify like media subscription names like that so I've got a group of there six of us in San Francisco we do our best to stay on top of each of these stocks it's a fascinating industry and that's what that's the day job. Jason: [3:01] Fun fact understanding eBay is really difficult but understanding Scot Wingo is even more challenging. Mark: [3:11] Yes. Scot: [3:12] Yeah and he hasn't Mark you haven't aged at all. Mark: [3:15] That's right same you and me we both actually look younger. Scot: [3:18] Absolutely yeah I think we can agree on that so let's dig in this report you put out yesterday it was really fascinating I've kind of been through it several times the overarching theme was really kind of understanding covid Trends so maybe we'll start there then of course we'll look at kind of the Amazon called that you got out of that what What did the what did the survey kind of surface for you as it relates to kind of covid-19 and what's that doing for e-commerce short and long-term. Mark: [3:43] Look I Eileen pretty heavily on consumer surveys most of the stocks companies I look at our consumer-facing so you have to understand what consumers think about these companies and how their positions have evolved over time and this was our 8th Annual so we can do it for eight years. [4:00] Amazon for 22 years but for the last eight years we've been surveying people we have a decent sized it's all in the US which is that which is a limitation because obviously at least half of Amazon's businesses overseas but we want to try to see what people think about Amazon whether their satisfaction is rising or falling intentions to purchase on Amazon what people are buying on Amazon how much they span are frequently and then we as you pointed out Scott like this isn't happening in a vacuum this year this is happening in. [4:26] During that you know the hopefully the only pandemic of our lives and an event that's had dramatic implications I think is almost been like like a huge billboard for online retail the necessities of purchasing products online the the benefits of purchasing products online too so we thought this the survey would show our assumption was that it would show an accelerated shift to e-commerce it did there's plenty of data out there from the Department of Commerce from companies like I mean my phone is data point of a frankly of last month is that eBay is now growing its gmv general merchandise volume or value I forget which one but it's growing it by 25% eBay hasn't grown at that level in over a decade it says something about how much of a boost to e-commerce as covid crisis has been we all want to shop we all need to shop we just can't go out so we're shopping from home and anyway that's one of the things that came through in the. The survey we saw record high levels of purchases online of frequency and spend and not by the way not just with Amazon but with other companies to. Jason: [5:35] That's amazing I think one of the common conversations I've had with clients is. You know we see that big spike and then you know the magic question is how much of that spike is permanent right like I would imagine you don't expect that eBay is going to be able to maintain that. That 28 percent GMP growth for example. Mark: [5:56] Yeah no I wouldn't expect it and I think spike is the right way to think about it I think it's a spike though within the trend and Scott knows this and you know this just as well Jason you know we've we've we've gone through the last two decades watching a greater and greater percentage of our spend occurring through online channels we all know this we've all lived through it and so we just had kind of an acceleration in this spend it's almost as if you know every year we were going to bounce up a pointer to in terms of online retail share we're going to go from. 9% to 10% to 11% you know annually and instead what we have would happen with this crisis I think we just you know we just kind of did a leap year like we went from we probably gained 2 to 300 bits of of up share shift from offline to online particularly in some of the more entrenched physical Store retail categories think groceries I think Consumer Staples I think those have really gapped up I'm sure that the rate of your rear growth in online retail will we'll add down we'll wave down a little bit but I think you know it's going to waive down from a higher level and so you know net-net we're going to just see this Rising accelerated adoption of online retail and companies that are in the middle of this obviously Amazon eBay to Shopify there's a couple of these platforms that are going to really benefit from this and you'll see it in their fundamentals and the market is already anticipated all this by bidding these stocks up to all-time highs that's true in the case of Shopify it's true in the case of Amazon. Jason: [7:25] Yeah I like to talk about covid as kind of a time machine that you know may be warped as five years in the future and like five minutes. Mark: [7:33] Yeah I like that. Jason: [7:35] The in so cool so you know that's the opening opening premise of your report is me and we rapidly accelerated adoption of digital shopping and then you know the next big Insight is. In Amazon is particularly for Prime to be the structural winner of this growth can you talk to us a little bit about that. Mark: [7:57] Yeah you know you if you would ask anybody what you know who would be the winner off of a surgeon online retail 9 out of 10 people would have said Amazon anyway and by the way that's pretty consistent with what we see in our survey results we have asked people for years which shopping sites do you use most often and. Nine out of 10 times it's Amazon of the last six years the answer has been 90 percent eighty nine ninety three ninety ninety one ninety one I mean also all those are the percentage of respondents who say they shop on Amazon now they've been some interesting fluctuations below that eBay used to have almost 40 percent of respondents say that it was a site that they commonly used that's that's drifted down the 30% and in the meantime Walmart and eBay really kind of switch places one more stop from 30% as an online site where people that people use most commonly up to now over 40% so very interesting turn there but with Amazon they say very consistently at the top we do see that they ranked highest in terms of things like price selection and convenience particularly notable though is the gap between them and their competitors in terms of selection and convenience based on our survey work there are there is one negative thing I know we're going to get to it in terms of satisfaction. [9:11] But the general results here show increased frequency of purchase greater amount of purchase and then they've got this program called Amazon Prime which I imagine I'm sure the window family has been a long-standing member of. And we saw penetration of that Gap up to record high levels and I reach 67 percent. Amazon earlier this year disclosed that they had about a hundred and fifty million Global Prime subscribers based on the survey work thinking about where the numbers could go we think that they are rapidly approaching they will rapidly approach 200 million by the end of this year that's a lot of people they're more loyal than regular Amazon customers they spend more they spend more frequently it's a it's a great Customer Loyalty program it's a great Revenue loyalty program it's a great prophet loyalty program. Scot: [10:01] And when you say 67 percent that's your survey data or your you okay so. Mark: [10:04] Yes that's right 60 67 percent of it of the internet users that we surveyed our no I'm sorry of am of the people that we surveyed who said they were Amazon customers 67% of those said that they were Prime customers. Scot: [10:19] Yeah yeah yeah I've seen some estimates that have 50 to 60 percent of households that kind of drives right in there. Mark: [10:26] Yeah I know. But I bet you it did Gap up Scott I bet you that's what's really happened you know in the last month or two I'm sure people's purchases on Amazon gapped up I mean we know that they did Amazon reported that in the March quarter and and so I'm I guess is that people realize well if I'm going to be ordering I'm staying at home. And I'm going to be ordering a lot of stuff on Amazon I might as well you know gin up for this Prime program I'm pretty certain that's what happened in that so that fifty six fifty to sixty percent that you see in other reports I mean those no I'm sure all those numbers went up I don't, the truth is probably somewhere in between us all but you know that it definitely it definitely moved up and pretty materially during this crisis. Scot: [11:04] And then as you said it wasn't all sunshine and Rainbows in the survey you saw some interesting feedback on Amazon's customer service satisfaction but would you would find there. Mark: [11:14] Yeah and this is this is a stumper I got plenty of theories but you know it's hard to really know what's what's going on but we do ask these questions about you know we give everybody response to the survey about 1,600 people give them a right variety of options are you extremely very moderately slightly or not at all satisfied and of course you would think that if there you know if they're Amazon customers that probably not going to say they're not at all satisfied because then they wouldn't be Amazon customer so you would expect the skew you know towards the extremely in the very satisfied we've asked this question the same way same you know relatively large sample size over the years and we've seen customer scores come down used to be 88 percent of customers back in 2013 Amazon Customer said they were extremely or very satisfied that now it went down to 64 percent in 2020 and you know it dipped down in 2018 we noticed it and then it just dip down again I think the reasons if our survey is right you know I think it's right you know we try to be pretty objective about this we've done the same question over the years so we do have a long time series here I think there's a bunch of things that are happening one is I'm sure there were some quality issues during the covid crisis are still are it's just hard that for a while though they weren't stocking non-essential. [12:33] Items and then there were delays in getting a lot of products so I'm sure that hurt their satisfaction secondly over the years they have increasingly included a lot of third-party Sellers and I think there may that may have increase the the risk of quality control problems not so much in the delivery but in the actual quality of the product in any customer service around that the product if you if you you know the more sellers you put on that Network you add this selection there's almost always going to be a trade-off in terms of quality 32 company is so big that kind of gets embroiled positively or negatively in kind of local controversies labor regulations taxes things like that so it's just it's become so big it's kind of hard for that stuff not to kind of come up fourth is as they move into categories that are really tough to fulfill and groceries this is the top of the list I think that can create satisfaction problems are for one of one of those people who had a hard time getting a slot for Amazon Fresh and I had one delivery that just didn't come through can't recall ever having that with any other Amazon product that. [13:33] A lot so I think a couple of these things have kind of come together and maybe the ad units that they have in their the sponsored listings products Maybe maybe putting a few too many of those you know in the Amazon shopping results is dinged satisfaction I don't know I just throw out five reasons and they're all just guesses on our part but we do know what the trend is based on our survey data that satisfaction is coming down and this is a serious issue of the company needs to address it we think they can if they don't that will that will impact growth if they can solve it they'll be able to sustain the growth they have. [14:06] But what do you think you think I'm full of baloney. Scot: [14:10] I think you're right but I think I think they can recover I think that they they were not expecting from March 15 April 15 I think they got that 30-day window which is probably pretty around when you did your survey the delivery times really spread out Jason our just talking offline and he got up to three or four days I was out weeks here in North Carolina so we're back to normal now so I think they've added a ton of capacity they don't release numbers on this but I know they bought 20,000 delivery vans I would bet they've doubled or tripled that just kind of anecdotally in my area. Actually know where the center is and just the number of trucks in generally is huge now so I think I think they can recover Jason had some more quantitative data Jason what did you see. Jason: [14:57] Yeah I was mentioning that Marketplace pulse monitors reviews of third-party sellers on Amazon so I you know how satisfied buyers where the bottom these third-party Sellers and. In General on average. There are about 400,000 negative reviews of sellers a month on Amazon that's kind of the Baseline and at the peak of covid those negative reviews went up above 800,000 so my premise there is. Amazon totally curtailed FBA the service level for all these third-party sellers fulfillment went down and there were a lot of negative reviews. And then they also speak with positive reviews of Sellers and in general ninety-four percent of all transactions result in a positive review for that cellar. When people write reviews 94% are positive and during covid that 94% fell down to about 85% so like I think there's. Numerous data points here that are all pointing to the same thing that like. Consumers rush to digital the service level on digital dropped because we weren't prepared for that that level of Spike and that that created some negative. My hypothesis certainly would be Amazon's way better suited than almost anyone else to address those capacity issues and recover from that negative. Mark: [16:25] Okay super. Jason: [16:31] So and like so clearly the retail business for Amazon's in a pretty good place like more people are shopping digitally and as you pointed out for variety of reasons Amazon Super well. Well said it situated structurally the benefit from that transaction. But you also talked a little bit about the other parts of Amazon's business in the mix and you know like from a revenue standpoint that's Amazon web services but increasingly that's. Amazon marketing services like what how are you thinking about those when you when you think about Amazon's growth potential. Mark: [17:08] We've referred to Amazon is the greatest mix shift story in technology and what I mean by that what we mean by that is its fastest growing businesses are its highest margin businesses it's a great position to be in like from a business model perspective the opposite is kind of Google they invented this thing which is probably the highest. Margin business ever that search advertising and anything they went into after that would have lower margins and. You know whether that's hardware or Cloud so for Amazon the makeshift story is they have this retail business that's got you know to 3% operating margins growing at you know 15 to 20% year-over-year a faster now and. [17:56] And then you've got these at this advertising business is just probably 30 percent margins that's growing kind of like fifty percent forty to fifty percent year-over-year it is AWS business which is also got about 30% operating margins it's also growing about 40 percent Thirty to forty percent year-over-year so faster growth businesses higher margins means just your overall margins are going to rise so that's kind of the business model so what of of of Amazon that's why it's got will remember this back in 2014 when for the first time ever Amazon disclosed with the margins were like on its AWS business the stock gapped up the stock re-rated it's almost as if the ticker had been changed from amzn to AWS because the market was so surprised that what they what everybody thought including me that the AWS was just a commodity low-margin business turned out it was a high margin business and that was fundamentally really positive for for Amazon because it suggested this mix shift and the idea that long term you're going to have a nice upward Trend in margins Amazon advertising and Amazon. [19:00] Cloud services they're both you know sizable businesses now roughly 10 billion run rate for advertising little bit more than roughly 30 billion for AWS it's a little bit more than that and again highly profitable 8 m is M Asam is an advertising platform is the third largest generator of advertising outside worldwide you know XX China and when we look at all of the ad platforms during this covid crisis and look to see all of them had material impacts on the revenue growth except one that's Amazon Amazon's advertising Revenue looks like it's going to decelerate but just modestly compared to Facebook compared to Google compared to the trade desk or Pinterest or Twitter or snap. [19:46] So they that that they've got lightning in a bottle there and in AWS the cloud business is probably also a big beneficiary it's probably a structure winner from the covid crisis because of the dramatic Ingham dramatically increased capacity needs driven by work from home driven by remote Computing and there was a wonderful data point by this company called Zoom which has now become a household name or at least a business office name and zoom had eight 20x increase in usage total amount of minutes used unzoom went up 20 x like it's hard to Fathom any business dealing with that kind of surge in demand yet they were able to do it and the reason are able to do it is because their cloud provider is Amazon and Amazon allow them to 20x increase their capacity in order to handle that kind of volume increase I mean you couldn't come up with a better advertisement for the for the durability the flexibility and the end the need for cloud services if zoom-zoom wasn't an AWS if they hadn't used AWS I guarantee you they would have had dramatic blackouts they're start and and you know the follow-on less important but their stock wouldn't their stock could be half of where it is now something like that. Jason: [21:13] Yeah it's interesting on the ad business in particular I wonder and part of the reason that it had a slight deceleration isn't even related to. Potential demand for ads or opportunity platform I wonder if it's tied to the issue we talked about earlier that like. Temporarily Amazon supply chain was constrained and they turned down the service level for all those 3-piece hours and fulfillment by Amazon like if if Amazon tells you you have a non-essential product and they're not going to accept new shipments in their warehouse of your product. You're going to turn off the ads for that problem. And I so you know it's not shocking that that the ad sales decelerated a little bit but I wonder if structurally. Give a bigger percentage of customers are shifting online like Amazon competes with Google and Facebook for Ed dollars but Amazon also competes with. Walmart and Target and billboard providers for ad dollars and I'll bet you know my feeling is permanently. Demand for those ad dollars has has has is likely to permanently shift to Amazon so I think even on ad platforms this might be. Like mostly favorable for them. Mark: [22:25] That makes sense Jason that makes a lot of sense. Scot: [22:30] Also some of your your analyst colleagues out there and I'll full disclosure I'll put myself in this camp at some point they feel like Amazon is going to effectively compete directly with FedEx and UPS meaning you could you know you're in San Francisco you could ship me a package on their Network in North Carolina for like maybe four bucks a package versus the FedEx UPS eight to twelve dollars do you see that happening or you're not in that camp. Mark: [22:57] No I think that's a probability we laid that out did a report a couple years ago called the fourth pillar try to figure out the next business that Amazon would go into I think I got an email back from Seattle right after we published that report as long as something along the lines of you idiot why would you think we just have one more pillar. A couple of things in mind we've written deep deep dive reports on their business to business opportunity you know business supplies that sounds like Logistics to me and Amazon's pretty damn good at logistics for consumers so I not for businesses so I think that build that business is nicely building up I'm curious as to what they'll do in Pharmaceuticals he's physical stores that are these. [23:41] What do they call me every it's not the everything stores the go stores thank you the go stores I thought those aims on goes towards I think that's a really interesting really novel concept that actually solves something it gives you more time well I what a wonderful what a wonderful gift that is and anyway so I think there's a lot of areas that I think they're investing in and you know Amazon shipping Services makes a ton of sense to me I did pitch that to them as the title you know is the name for that segment they just they thought about it for a little bit they didn't like the acronym the thought that would be an odd Summit so they decided to go with something else I think they went with shipping with Amazon SWA that's probably better than what I had thought of and my guess is that that building that that business builds up yeah this is like this strikes me just like Amazon building our physical capacity two. [24:33] To ship goods and services you got excess capacity bring on third-party sellers Amazon built out all this compute on that work to manage its own large needs they have excess capacity go ahead and Retail it as AWS Amazon builds out a distribution Network a fulfillment Network a series of trucks too deliver its own products and then third party products sold on its site well why not do it for third-party products sold on on third-party sites it just seems like a natural extension it's kind of like Amazon is the fixed cost business just they've got such bullish long-term views about how big online retail will be those use of been verified year in and year out that what you want to do is you want to vertically integrate and fix those costs therefore you get super high incremental margins so I think it's you know I think it's inevitable I think they're actually darn close to the size of FedEx now in terms of in terms of units and yeah I would imagine that they'll surpass you know UPS within the next five years in terms of raw shipping volume that include a lot of their own shipments but over time I would think they'd pass them in terms of other people's shipments to. Jason: [25:45] Yeah I think Scott and I both agree even before they get there even before they like try to sell those Services I think. A unsung challenge at the moment is with all this increase digital domain and you know most retailers are talking about like seeing volumes that are similar to their traditional Cyber Monday Black Friday volumes. And who doesn't have capacity to fulfill that demand as FedEx and UPS and so you know Frank right. They've all just tacked on a bunch of surcharges and so if you're any retailer besides Amazon. You know one of the the negatives of all this increase digital demand is you don't really have the ability to fulfill all that demand or at least fulfill it cost effectively. And so owning as much of their own fulfillment as Amazon does is I think another huge structural competitive Advantage it's going to help them take more than their fair share of the digital growth. Mark: [26:39] And it's I agree with you Jason and Scott you ask the question you do you have the same answer that I would have that I just gave. Scot: [26:47] Yeah I think I think they yeah there's some incremental costs yeah taking another packages is almost free at some point when they build out all the infrastructure so so yeah I think they get there it's a question of when I've had it on my annual prediction show for three years and then. I'm sticking to it the one time I take it off is when it will happen so. Mark: [27:08] I'll wait then. Jason: [27:10] Yeah that's a great way to invest in it is wait till Scott get throws in the towel on the prediction show. Mark: [27:15] The contrarian indicator I got it. Jason: [27:17] Exactly I do want to Pivot like you have really seen this industry grow up and there's a lot of interesting non Amazon things going on right now when we talked about in our last show was. Like all of these new Commerce initiatives at Facebook and you know are you falling that at all and what what do you think. Is Facebook going to be a viable player in the Commerce base. Mark: [27:43] I'll give you my opinion I'd love to hear yours we we do a survey of social media companies we've done this semi-annually. I think we've done this for four years now and the last one we published just last week we asked people. [28:04] About their usage of Facebook Marketplace and simple question we found a 51 percent of respondents had used Facebook Marketplace back in November last time we ran it was only 33 percent so there's another e-commerce inflection point we ask how many of you people on Instagram have made a purchase on Instagram 23 percent of users said they had six months ago that was. [28:30] That was fifteen percent so you know this Spike that we've seen in e-commerce is also translated onto these social media networks I'm I'm. I'm I think this is a fast fascinating area of to explore I don't know why they wouldn't be they certainly the traffic now it's not it's not conscious traffic it's not qualified traffic I don't want I want to shop I don't go to Facebook when I want to you know I don't go to Instagram but I happen to be on Instagram and Facebook a lot you can put relevant ads in front of me I just may not be in the mood to shop I'm in the mood to shop when I'm on Amazon so there's always going to be limits but if they but with the traffic they have and if they can get a little bit more of a picture of my commercial intent or not my intent my interest then there's a chance for them to tap into what do you call that impulse shopping and then you so you get that part and what we're seeing in this my raw data there says that there are there is the opportunity to tap into impulse shopping on these sites now you got to go to the other side. [29:39] You're not a vertically integrated Marketplace we are Marketplace bring you down vertically integrated so you better be careful not to put ads up there and. [29:47] And then and then for a product where the inventory quickly sells out and then people are going to remember yeah I try to buy on Facebook and you know that it didn't work so what they need to do is partner with somebody who can really help them with the Fulfillment with the design of the site and they need to make it seamless if I'm clicking on an ad and I got to click over and fill out the address and the credit card information that's friction friction friction but if they can if they can if they can like the one thing I don't know what percentage of people on Facebook have their credit card information stored with Facebook I'm guessing it's less than 1% so that's something that Facebook is going to try to have to incentivize people to give them a rationale a reason for putting a credit card data there that gets them closer to one click and then they need to work with a merchant partner like a Shopify which is what they're doing that can make that that that flow seamless and just make sure you get a picture into the inventory such that you're not showing you know the boots when you don't have them in inventory and can't get them you know with them three or four days to the consumer but I think all those pieces are coming together so yeah I'm increasingly bullish on this opportunity and I think the pieces are coming together like I'm seeing the consumer intent in my survey work I'm seeing them work with the right Partners I haven't seen enough of the actual experience I get I've yet to have that mind-blowing. [31:09] He's of sharp like you know I'm checking out at the grocery store I just all I have to do is reach for the Snickers put it on the put it on the conveyor belt it's not that simple yet but if they get there that's they came make that they won't surpass they won't supplant Amazon by God that won't happen but they'll be able to tap into impulse shopping dollars in a way they haven't before I'm very intrigued by it Scott what do you think. Scot: [31:33] Yeah it's interesting because it kind of you have to kind of loop Shopify into the whole thing so there's there's one school of thought that shopify's essentially the shopping engine for Facebook today in this latest announcement they kind of cut Shopify out a little bit like Facebook's kind of introducing their own check out so it's gonna be interesting to see there's almost kind of like a three-way War kind of here so there's like Shopify which is the Battlestar Galactica ragtag group and then you have the social guys kind of going their own way and then you have the death star of Amazon. I don't know you know it's always so hard for these people to compete with Amazon because of the shipping Logistics they have and the only company in those that list that's investing in that is Shopify so it's going to be really interesting to watch this next leg of e-commerce to see can Shopify. In this made it either on framing but the can Shopify the almost like a counter option to 3p Sellers and Brands against Amazon I think you're seeing a lot of people kind of frame it that way kind of. Famously been what's his name the Strategic review guy he's kind of like setting it up that way but other folks kind of say no it's just this that's not the right way to look at it how do you see Shopify fitting into the overall. I think they've surprised everyone with the amount of growth and the gmv that they're producing so it's hard to count them out at this point. Mark: [32:56] I I am I'm trying to count them in and it's a it's a company in a stock I've been ramping up on aggressively over the last six to nine months I'm very intrigued by what they're doing I like the way they think about. Their business I certainly look at their take rate it's like 1.67 percent. And it's like well wait a second you know that they if they can execute well that take great can double or triple that's a lot of growth in the future so I'm very intrigued by their opportunity some of the things I think are maybe false starts their ability this this app that they have I. [33:33] Just don't think I'm ever going to go to a shop app Shopify app to start my shopping I just and I don't know I signed up for it then I realized I just don't need another notification of when my Amazon packages are coming I already got that by the way and you know Amazon will tell me and then Google will tell me to so I get it I don't like Shopify to tell me one of my Amazon packages are coming but but I'm intrigued by the potential to chop has but probably not as a brand Central approach probably is just the the the enabler of D to C of D to C you know Commerce activities they talked in this last earnings call of of enabling I think was Hines and lint I think those are the two examples that they used to sell directly to Consumers. [34:22] So okay that sounds interesting I just don't think I'm going to go to Hines.com when I want to buy catch up but I'm going to want to buy Hines and so but I'm not going to go to Shopify to find a place where I can buy Heinz I think I know where to buy Hines so I don't know it there's an opportunity there but there's a lot of lot of lot of paths that could go the wrong way for them but they seem to be like a very disciplined management team so I'm giving him the benefit of the doubt we have an out perform on that stock for what it's worth and yeah e-commerce opportunities inflicting up for them as it has for Amazon in this in this covid crisis. Jason: [35:03] Yeah so so you kind of look at this big picture. You have dramatic digital acceleration like it seems like it's you know Amazon and Shopify are both currently poised to benefit from that digital acceleration. What about some of the other digital players like who else do you think ends up being a winner in this like you mentioned eBay had a. Sort of unexpected Spike I also think of Stitch fix and chewy is to of though I. Bigger play you know digital digital folks are they is this Rising tide that's going to lift all boats or. Do you think that they're going to lose share to Amazon and this. Mark: [35:44] Well near-term the rising tide will lift all boats achoo as a company they were Prince earnings after tonight I would think this is a company that dramatically benefits from the covid crisis I saw that Smuckers which owns Believe It or Not owns a large array of pet food products like Meow Mix is in there Kibbles and bits and all your other favorite cat food that they had 60 percent growth year over year in online retail sales I mean you know jeez they're doing that I imagine to he's going to put up some pretty big numbers tonight now they better that stock is really gapped up dramatically but I think they will I think they'll put up I think they'll put up really good numbers you had two Trends there and you know one is that people had to buy pet products and and food and supplies online the second one is just kind of tangential for pet owners like myself there was a Dish been a dramatic move towards pet adoption in the last two months because of shelter-in-place regulations that hadn't occurred to me right away but you know people when they're when they're forced to stay in. [36:48] Indoors like that they look for companionship and that led to a lot of people to a lot of people adopting pets and of course you have to feed the things and well you better you know the you've heard about this thing called chewy and so people signed up so I think they have like a two to three year just accelerated adoption of their services and by the way unlike the rest of retail you know where it is interesting to go in and try out things in stores you know for fashion apparel and you know there's experiential shopping I don't think there's such a thing as pet food experiential shopping so I would think that that's a category that's just right for dramatic acceleration online so I Chuy's the name Stitch fix to is just a couple of question marks we have. Around it like I'm surprised the growth isn't better there but they should benefit Etsy clearly as benefited to and not just because of people buying designer face masks my guess is that there they'll have a sustained acceleration but that's TBD. Jason: [37:45] Yeah it's interesting it's funny like I have to do these briefings and I give all these negative Trends and you know the world is going to end and so the the palate cleanser I always throw in there. Is every pet in every shelter has been adopted it's like the one one sort of feel good story and all this and you're exactly right like. We have the largest cohort of new pet owners in the history of the US and none of them could get their pet food or cat litter or toys. Promised or so. We'll see but I'm expecting that this hats had to be super favorable for chewy and then of course Amazon is also a great competitor in the pets page. Yeah so I think that's a great insight and that's actually going to be a great place to leave it because we've used up our allotted time. But Mark super appreciate you taking time out I know you're in high demand right now and a lot going on and we really enjoyed you sharing some of your insights and your. Mark: [38:42] Jason great talking with you Scott always a pleasure talking with you great to I've learned a lot from Scot Wingo over the last 20 years and I plan to learn a lot more of the next 20 years wish you both and your family's health and safety. Scot: [38:54] It's becoming Mark we look forward to seeing you at a one of your shows when we can get back to traveling and back to normal. Mark: [38:59] Absolutely see you buddy. Scot: [39:01] Until next time. Jason: [39:02] Happy commercing.

https://www.linkedin.com/in/fabioburitis/ Um profissional especialista em gestão de projetos ágeis e tradicionais, com um perfil híbrido. Atuei como Product owner, Scrum Master, Gerente de Projetos, Agile Coach e outras funções dentro da TI em seguimentos de Saúde, Varejo, Engenharia eletrônica, radiologia, telecomunicações e de outros. Entusiasta ágil tenho como objetivo a mudança de mindset cultural de times e diretorias de empresas de forma colaborativa de acordo com seus OKR's visando a transformação digital e a entrega constante de valor ao cliente com resultados positivos. Atuei em projetos diversos e de TI (com as linguagens e frameworks C#, JavaScript, VueJS, NodeJS, Delphi, Angular, TypeScript ). Com isso tive desafios concluídos com sucesso usando o melhor agilidade e a transformação digital, aplicando conceitos como Management 3.0, Facilitação de times remotos/home-office, SAFe, OKR, Kanban, Azure VDevOps, TFS, AWS(Amazon) e outros frameworks/metodologias. Tenho interesse sobre a parte de produtos e estou em preparação para a certificação PSPO que irá ocorrer em 06-2020 “Veloz é um trem bala, ele vai muito rápido! Já o ágil é o guepardo que vai rápido, mas muda de direção o mais rápido possível para se adaptar.” - Fábio Buritis Nas horas vagas me aventuro como Chef Amador Pro-Mundi ( CAPM) - Chefe de cozinha Keywords pesquisa: Proprietário do produto; Dono do Produto; PSPO; PSM; Metodologias ágeis; Instrutor de Agile; Gerente de projetos; Gerente de TI --- Send in a voice message: https://anchor.fm/pipocaagil/message

Mit hanseatischer Zurückhaltung, informieren, sortieren und ordnen die beiden Digital-Experten mit ihrem Meinungsbeitrag die aktuellen Entwicklungen und Trends rund um die Digitalisierung und das Leben und Arbeiten von morgen. Die Themen diesmal: -AWS ist seit Januar diesen Jahres offizieller Technologie Provider der Deutschen Fußball Liga. -Was plant die DFL und was sind die Ambitionen von Amazon? -Amazon spielt mit dem Gedanken, die weltgrößte Kino-Kette AMC Theatres zu kaufen. Damit könnten Amazon demnächst weltweit über 1.000 Kino gehören. Wir sprechen über mögliche Auswirkungen auf die Branche. -MasterClass: Aufwendig produzierte Streaming Inhalte von berühmten Persönlichkeiten in den unterschiedlichsten Bereichen wie Business, Koche, Schauspielerei, Musik oder Sport. -Airbnb: Wie stark setzt die Corona-Krise dem Unternehmen zu? Konzentration auf das Kerngeschäft scheint der Weg der Wahl zu sein, aber vermutlich wäre das auch ohne Corona der Fall gewesen. Ihr dürft uns dort gerne Themen vorschlagen, die wir hier diskutieren sollen. Themenvorschläge alternativ auch gerne per E-Mail an post@25r-digital.com. Unsere Diskussionsgruppen: Gerne möchten wir mit euch die Themen in unseren Facebook und LinkedIn-Gruppen weiter diskutieren: Facebook: https://www.facebook.com/groups/25rdigital/ LinkedIn: https://www.linkedin.com/groups/13831808/ 25R Digital steht für Veränderungen und Digitalisierung. Wir liefern Inspiration, Impulse, Wissen und Austausch für die Themen von morgen. Wir berichten über Trends und Entwicklungen und schaffen damit eine Bereitschaft für anstehende Veränderungen. Wir wollen Aufmerksamkeit für die Themen von morgen schaffen, befähigen und gemeinsam die digitale Transformation in der Gesellschaft vorantreiben! - Weitere Informationen: tbc - Informationen zum Podcast: https://www.25r-digital.com/podcast Produziert wird dieser Podcast von www.25r-digital.com / Werbung: Teilweise kommt unbezahlte Werbung zum Einsatz.

Sponsors Sentry use code “devchat” for 2 months free on Sentry small plan TripleByte offers a $1000 signing bonus Panel Dave Kimura Eric Berry Charles Wood Joined by special guest: Jesus Castello Episode Summary In this episode, Jesus Castello, a ruby developer who has been programming since he was 10 years old. He has been a Ruby Developer for 7 years. He teaches Ruby and has a Youtube channel and website. — discusses with the panel his post about Environmental Variables. Jesus teaches what an environmental variable is, and then together Jesus and the panel discuss the uses of environmental variables. One specific topic they go into detail on is credentials and the master key. They also ask him questions about his career teaching Ruby to those on the web. Links Ruby Guides - Jesus Castello Jesus Castello Twitter Ruby Guides Youtube - Jesus Castello The Twelve Factor App Jesus Castello Facebook Heroku AWS - Amazon nginx Apache bkeepers/dotenv - GitHub Enivronmental Variable in Ruby laserlemon/figaro GitHub Removing sensitive data from a repository - GitHub Codefund dry-configurable https://12factor.net/config yuki24/did_you_mean GitHub Picks Dave Kimura: Nobilechairs Epic Satechi Clamp Hub Andrew Mason: EugeneMayer/ docker-sync Jesus Castello: Brakeman 4.4.0 Released acts_as_list GitHub awesome-print/awesome_print GitHub Ruby Deep Dive Eric Berry: CODEFUND Jobs Charles Wood: Canon EOS M6 (Black) EF-M 15-45mm f/3.5-6.3 IS STM Lens Kit Rode VideoMic GO Lightweight On-Camera Microphone with Integrated Rycote Shockmount Skyward by Brandon Sanderson

Sponsors Sentry use code “devchat” for 2 months free on Sentry small plan TripleByte offers a $1000 signing bonus Panel Dave Kimura Eric Berry Charles Wood Joined by special guest: Jesus Castello Episode Summary In this episode, Jesus Castello, a ruby developer who has been programming since he was 10 years old. He has been a Ruby Developer for 7 years. He teaches Ruby and has a Youtube channel and website. — discusses with the panel his post about Environmental Variables. Jesus teaches what an environmental variable is, and then together Jesus and the panel discuss the uses of environmental variables. One specific topic they go into detail on is credentials and the master key. They also ask him questions about his career teaching Ruby to those on the web. Links Ruby Guides - Jesus Castello Jesus Castello Twitter Ruby Guides Youtube - Jesus Castello The Twelve Factor App Jesus Castello Facebook Heroku AWS - Amazon nginx Apache bkeepers/dotenv - GitHub Enivronmental Variable in Ruby laserlemon/figaro GitHub Removing sensitive data from a repository - GitHub Codefund dry-configurable https://12factor.net/config yuki24/did_you_mean GitHub Picks Dave Kimura: Nobilechairs Epic Satechi Clamp Hub Andrew Mason: EugeneMayer/ docker-sync Jesus Castello: Brakeman 4.4.0 Released acts_as_list GitHub awesome-print/awesome_print GitHub Ruby Deep Dive Eric Berry: CODEFUND Jobs Charles Wood: Canon EOS M6 (Black) EF-M 15-45mm f/3.5-6.3 IS STM Lens Kit Rode VideoMic GO Lightweight On-Camera Microphone with Integrated Rycote Shockmount Skyward by Brandon Sanderson

Sponsors Sentry use code “devchat” for 2 months free on Sentry small plan TripleByte offers a $1000 signing bonus Panel Dave Kimura Eric Berry Charles Wood Joined by special guest: Jesus Castello Episode Summary In this episode, Jesus Castello, a ruby developer who has been programming since he was 10 years old. He has been a Ruby Developer for 7 years. He teaches Ruby and has a Youtube channel and website. — discusses with the panel his post about Environmental Variables. Jesus teaches what an environmental variable is, and then together Jesus and the panel discuss the uses of environmental variables. One specific topic they go into detail on is credentials and the master key. They also ask him questions about his career teaching Ruby to those on the web. Links Ruby Guides - Jesus Castello Jesus Castello Twitter Ruby Guides Youtube - Jesus Castello The Twelve Factor App Jesus Castello Facebook Heroku AWS - Amazon nginx Apache bkeepers/dotenv - GitHub Enivronmental Variable in Ruby laserlemon/figaro GitHub Removing sensitive data from a repository - GitHub Codefund dry-configurable https://12factor.net/config yuki24/did_you_mean GitHub Picks Dave Kimura: Nobilechairs Epic Satechi Clamp Hub Andrew Mason: EugeneMayer/ docker-sync Jesus Castello: Brakeman 4.4.0 Released acts_as_list GitHub awesome-print/awesome_print GitHub Ruby Deep Dive Eric Berry: CODEFUND Jobs Charles Wood: Canon EOS M6 (Black) EF-M 15-45mm f/3.5-6.3 IS STM Lens Kit Rode VideoMic GO Lightweight On-Camera Microphone with Integrated Rycote Shockmount Skyward by Brandon Sanderson

Brant Burnett is continuously integrating and deploying microservices. This episode is sponsored by Smartsheet. Show Notes: Previous microservice episodes: Chase Aucoin on the Microservices Manifesto Richard Rodger on Microservices SOA (Service Oriented Architectures), first defined in a Gartner paper from 1996: "Service Oriented" Architectures, Part 1 CI tools mentioned: Jenkins TeamCity Travis CI AppVeyor DEB and RPM files were mentioned. DEB - Video: Anatomy of a Debian Package RPM - rpm.org Chocolatey is a similar offering for Windows s3 is a cloud storage service from AWS (Amazon) Spinnaker Blue/Green Deployment and Red/Black Deployment Canary Release Monitoring tools mentioned: Prometheus and Data Dog Linq2Couchbase is a Linq provider for Couchbase (NoSQL database). For more about Linq, check out this video featuring Ander Hejlsberg State of DevOps Report 2018 by Puppet (and Splunk) Book: Accelerate : The Science of Lean Software and DevOps by Nicole Forsgren, Jez Humble, Gene Kim LaunchDarkly Brant Burnett is on Twitter. Want to be on the next episode? You can! All you need is the willingness to talk about something technical. Music is by Joe Ferg, check out more music on JoeFerg.com!

How do you ensure the security of a third of America’s web traffic? By comprehensively understanding the different attack vectors around the cloud at the API level, specifically AWS (Amazon web services). And being prepared to react fast. I recently got together with Will Bengtson, a security researcher with over a decade of experience in cybersecurity who works at Netflix. “The biggest thing for me is that we have a lot of accounts, a lot of instances, a lot of change in our environment. So monitoring for us has to be just a continuous game,” Will said. So since your cloud provider isn’t going to hold your hand on this one, you need to know about these three tools Will uses.

Have you ever been on-call duty as an IT person or otherwise? Woken up at 3 a.m. to solve a problem? Did you have to go through log files or look at a dashboard to figure out what was going on? Did you think there has got to be a better way to troubleshoot and solve problems? Today, we’re talking to Sam Bashton, who previously ran a premiere consulting partner with Amazon Web Services (AWS). Recently, he started runbook.cloud, which is a tool built on top of serverless technology that helps people find and troubleshoot problems within their AWS environment. Some of the highlights of the show include: Runbook.cloud looks at metrics to generate machine learning (ML) intelligence to pinpoint issues and present users with a pre-written set of solutions Runbook.cloud looks at all potential problems that can be detected in context with how the infrastructure is being used without being annoying and useless ML is used to do trend analysis and understand how a specific customer is using a service for a specific auto scaling group or Lambda functions Runbook.cloud takes all aggregate data to influence alerts; if there’s a problem in a specific region with a specific service, the tool is careful to caveat it Various monitoring solutions are on the market; runbook.cloud is designed for a mass market environment; it takes metrics that AWS provides for free and makes it so you don’t need to worry about them Will runbook.cloud compete with or sell out to AWS? Amazon wants to build underlying infrastructure, other people to use its APIs to build interfaces for users Runbook.cloud is sold through AWS Marketplace; it’s a subscription service where you pay by the hour and the charges are added to your AWS bill Amazon vs. Other Cloud Providers: Work is involved to detect problems that address multiple Clouds; it doesn’t make sense to branch out to other Clouds Runbook.cloud was built on top of serverless technology for business financial reasons; way to align outlay and costs because you pay for exactly what you use Analysis paralysis is real; it comes down to getting the emotional toil of making decisions down to as few decision points as possible Save money on Lambda; instead of using several Lambda functions concurrently, put everything into a single function using Go AWS responds to customers to discover how they use its services; it comes down to what customers need Links: Sam Bashton on Twitter runbook.cloud How We Massively Reduced Our AWS Lambda Bill with Go AWS AWS Lambda Microsoft Clippy Honeycomb AWS X-Ray Kubernetes Simon Wardley Go Secrets Manager DynamoDB EFS Digital Ocean

WATCH THE VIDEO HERE: https://youtu.be/443TT26w1LE Network Engineers and AWS (Amazon Web Services) FEAT. Anthony Sequeira | CCNA | CCENT AWS (Amazon Web Services) is HUGE!! A ton of companies are migrating parts or ALL of their infrastructure to the AWS Cloud. With this growing trend, Network Engineers need to adapt!! Yes, get your CCENT and your CCNA...but also look at the CompTIA Cloud+, AWS Certified Cloud Practitioner, AWS Certified Solutions Architect Associate, AWS Certified Solutions - Professional.

EP129 - Amazon Q1 Earnings Hot Take This episode is a hot take of the Amazon Q1 2018 earnings Amazon Q1 Earnings Highlights $51b, which is a 43% y/y increase - 39% constant currency,  27% ex- Whole Foods NA was up 46% y/y which drove $1.1b in profits (26% ex WFM) Intl was up 21% constant currency and lost $622m  AWS had a material acceleration up 48% y/y constant currency and profits were $1.4b Amazon Prime fee increasing to $119 (20% increase) Marketplace  52% 3P by Unit sales 3P Growing at 60% (constant currency) JMP GMV analysis-> 1P - $31b / 3P - $69b = $101B GMV Wingo GMV estimate -> 1p - $37b/ 3p - $66b = $103b GMV   Amazon Ads - $2B quarter 132% y/y growth (72% y/y growth before accounting change vs. 60% last quarter) Increasing possible Amazon becomes first $1 trillion dollar company Bezos Annual Letter 100M Paid Prime Members (likely 60M in N.A vs. 124M Households) Don't forget to like our facebook page, and if you enjoyed this episode please write us a review on itunes. Episode 129 of the Jason & Scot show was recorded on Monday, April 30th 2018. Join your hosts Jason "Retailgeek" Goldberg, SVP Commerce & Content at SapientRazorfish, and Scot Wingo, Founder and Executive Chairman of Channel Advisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing. http://jasonandscot.com New beta feature - Google Automated Transcription of the show: Transcript Jason:  [0:25] Welcome to the Jason and Scott show this is episode 129 being recorded on Monday April 30th 2018 I'm your host Jason retailgeek Goldberg and as usual I'm here with your co-host Scot Wingo. Scot:  [0:39] Jason and welcome back Jason and Scott show listeners. [0:45] Will Fox tonight we want to focus on some Amazon news because there's been a lot of really big amazon news that his hit the wire in the last week or so and we've been. Bisley publishing are shoptalk interviews and wanted to interrupt the flow of those coming out so you get something a little more timely here and so that you know how to, did Justice Amazon news and think about what it means for your business Jason wants to kick it off. Jason:  [1:12] Yeah so two big events that we're going to talk about tonight early last week, Jeff Bezos released his annual shareholder letter and as we talked about several times on the show this something that he publishes every year he publishes one for the current year and he republish is the first one he wrote which is. 97 if I'm remembering right is that. Scot:  [1:34] That is correct. Jason:  [1:35] Ding ding and highly recommend you read the 97 one if you haven't, what will you talk about that a little bit later but then later in the week Amazon did their earnings announcement and tons of interesting things from both events so that's what we want to talk about tonight. Scot:  [1:57] Yes we're going to jump into the earnings let's look at the high-level and then we can kind of dig in so one thing that's kind of interesting is there's a new accounting standard coming out I know you're excited about this Jason. Jason:  [2:10] Oh my god I've been like my family have been on pins and needles for months waiting for this. Scot:  [2:14] It's a sit-down folks it's a it's a big one buckle up and so the. I know this because I am involved to the public company but the there's a group called The General accounting standard thingy Gap, and they have come out with a new way of recognizing Revenue that's called accounting standard 606 and this is. I'm packing all kinds of businesses one example of how it's impacted Amazon is. Amazon used to take Prime subscriptions and waited heavily towards the fourth quarter because that's when I got a lot of sign ups in this standard says you can't do that you have to allocate it, equally amongst quarters you can't do weighted averaging and things like that so it causes a little chaos and in the world of looking at these kind of results because you said we have apples and oranges so tonight on the show we will. [3:06] Do our best kind of straighten that out whenever it comes up but it's interesting just for folks to be aware of cuz you'll start to see some really weird numbers coming out and if you see the 606 that's a clue that just the rules are changing under underneath it's not the company doing some kind of weird shenanigans. So that being said. Best way to come to give us a $30,000 summary of Amazon's first quarter is it was a blowout quarter so not only did Amazon exceed pretty much every Wall Street expectation and its own kind of guidance but I watch even more closely is, the growth rates and pretty much every growth rate we track here at Jason Scott show is accelerated, which is pretty impressive so they had a very strong fourth quarter so to accelerate year-over-year coming off of 4th quarter. It's just pretty impressive it just shows they've they've kept a lot of momentum I'm also you know we haven't had prime day it's just kind of a few one kind of a normal. A kind of boring quarter to be honest with you in the world of e-commerce usually it's a breather quarter but Amazon you know it doesn't take breathers they just soaked up a bunch of Cher. So [4:13] The Lucy so we're going to talk about the marketplace briefly at but then when things you want to spend a little bit of time on is the ad business ever going to jump into that and worked at the show then we have in the past. Jason wants you kick ass off with the overall results and then we'll will dig into the marketplace. Jason:  [4:33] Yeah first thing that caught my attention was shortly after their announcement I saw like a Jim Cramer segment and he called this quarter for Amazon like the greatest quarterback company ever did you. Scot:  [4:47] I did that saw that yeah. Jason:  [4:49] He may be slightly front of hyperbole but that seems like kind of a big deal. Scot:  [4:53] He is prone to hyperbole my favorite is when he famously wrote on his knuckles Duke 600. Got turns out he was right but yeah so which is Facebook Amazon Netflix Google so he watches these stocks all pretty close. Jason:  [5:12] For sure for sure answer the first time we want to talk about is the growth and before I make the big reveal let's remind listeners like what kind of growth numbers are impressive so, in most cases you hear folks talk about the typical annual growth rate for e-commerce is around 15%, inter put that in perspective. [5:37] Good a brick-and-mortar retail growth right now is maybe 4% averages like 1% so 15%. Is much faster growth. Then retail is a whole already which is kind of impressive but the 15% number actually has some controversy that comes with it so. Most of the folks that site these 15% numbers in. They vary slightly so do you know if depending on whether you're getting in an RF number or a comscore number or a drug number from the US Department of Commerce 15 could be 17 or 16 in a lot of that has to do with. Their definition of retail exactly what categories are are in or not in their number. [6:22] But most of those companies based their estimates on Raw data from the US Department of Commerce and the 10 all come in with North American grow that right around 15% and so when we look at a company crossword kind of comparing it to that 15% number, I will say that most of the companies we tracked are growing substantially faster than that 15% in it. [6:46] Kind of throws that 15% in doubt you know it's so for example Amazon alone is. Right around 50% of all e-commerce you know arguably a bigger percentage of the growth some of the other big retailers Walmart and Target. Best Buy you know if all of those huge companies are growing at north of 15% it's it's actually hard to figure out how you land at 15%. In there there are some Economist that you know fine fall in the Department of Commerce is methodology for tracking e-commerce a also. I'll just throw that out there for your consideration but that being said. Amazon q1 number was 51 billion in Revenue which is a 43% year-over-year increased so. What you dramatically above that 15% if you take out currency fluctuation that's 39% it at the constant currency if you take out the Whole Foods acquisition they grew at 27%. In that the thing I like to remind people is usually we talk about. The biggest players in the industry and then we talked about the fastest growers in the industry so usually you're talking about you know. Company X maybe it's Walmart you know what they say the hugest percentage of the, the retail market and then you're talking about Warby Parker is the fastest growing or so it's it's extremely rare and you know frankly scary. [8:22] When we talked about Amazon in in eCommerce and we talked about them has both the the dramatic market leader and. One of the very fastest Growers. [8:35] So one thing I always like to remind people like whenever you see these kind of numbers you always get someone in the room pointing out that hey that's great but like, you know it's easy to grow when you're not profitable in your you're sort of buying buying market share and you know so there's this common diatribe that that. Amazon is funded by eight of us and now maybe the ads and that the the core retail part of their business isn't profitable. And I would really encourage people to sort of update their they're thinking on that there's unit significant evidence that most parts of the the retail business and mature markets. Are profitable their operating income this year this quarter increased 92% to 1.9 billion in the first quarter so if you back in the math. The. The bulk of that that growth came from the business in AWS so it is fair to make the argument that, those are the the fastest growing businesses in contributing the most to the revenue but you know remember the Jeff Bezos, always talks about revenue and profitability not being the the the, key success criteria and the fact that free cash flow is really wet at Amazon's trying to optimize for free cash flow bassist the the retail businesses is like the majority contributor to their revenue. Scot:  [10:06] Yeah that's a good point. And the reason free cash flow is more miserable is because it's cash right and you pay stockholders back in cash not operating income operating income is an accounting. Space thing that, importing a lot different businesses but it's really hard and Amazon's business for it to matter because you have all these rules that spread Revenue out even though you got the cash and then they also spread out cappex to appreciate it so, I really kind of distorts what's going on so FCF is a better way to look at Amazon and how they're in the business so it's when you look at that free cash flow came in at 7.2 billion best down from 10.1 a year ago, but it's not down because when operating reason it's because. What you have is you have total free cash flow you subtract out Capital Investments and then you're left with kind of net free cash flow 7.2 this year q1 is down from the 10.1 last year. But if you take out the Investments they're making and quote-unquote your property and Equipment purchases and I'll talk about that in a second the gross. Freak Ashley was 18 billion and then they've invested. 10.9 billion and capex this quarter so we kind of say yourself you you made this point earlier you know if they're so big and they continue to grow how do they do that they are still investing at a just tremendous clicking other taking about. No more than half of that free cash flow and investing it back into growth and that's that's pretty crazy no not many businesses I'm not an expert on Walmart but I think they. [11:41] They're probably dusting I would imagine 10 to 15% into growth and hear Amazon's ingesting like 50% of free cash flow into into growth and you know where that and it's out what is that it's a lie. Buying rights for movies and things for the streaming that's a small part of it the two biggest chunks are going to be equipment for the cloud computing and fulfillment centers you know they they continue to build fulfillment centers that just on Norma's clip they're building out. Prime facility in CVG you know so just amazing amount of investment in infrastructure they're making to keep this business growing at the pace it's growing up. [12:20] A year ago that that same kind of investiture. What's 7.4 billion say ramp that investment up from 7.4 billion to 211 billion a year of a year so that. [12:32] Pretty sad when on capex that's why I went down your weird but it's because I think they're increasingly bullish that they can grow this business for the foreseeable future at least 2 x this rate of e-commerce which is which is. [12:42] Pretty crazy yes I'm point you do run out of. Performance tuners to build a I would imagine they continue to invest in the. Like the same day infrastructure with the planes and whatnot. Jason:  [12:56] Yeah and again all those Investments are out of long-term competitive Advantage it's a moat against everybody else. Scot:  [13:01] Yeah and at some point when they stop doing those Investments That free cash phone number in a right now if they weren't doing this investment would be 18 billion which would be. A lot of cash but if you keep going 30% you know that that number you know could conceivably get up into 30 40 50 billion dollars in free cash flow and that's why. That's how Wall Street salary this thing. Because if you look at kind of though you know the the single-digit billions that they're making an operating profit you're like wow why is this thing worth. Nearly a trillion dollars it's a free cash flow and that's what Wall Street you know it is watching and when you can see a packed free cash flow being like that it it's it makes sense to invest at the pace that while she does. Jason:  [13:45] Yeah and oh by the way they also drop 22.6 billion and 100 which is way more than any other company like way more than any tech company invest in R&D. Scot:  [13:56] Take us on into the sum of the Interior results. Jason:  [14:00] Yeah so is it a reminder like the break their revenue down into these three big lines of business that are you no material to there, their revenue so the first is North America so North America was up 46% year-over-year so that drove 1.1 billion and Prophets, without Whole Foods that's 26% year-over-year growth so pretty healthy in North America which is. Their most mature Market International was up 21% based on constant currency and they lost about 622 million on that. So you know a couple of things to know if they're that lost was actually. Much smaller than most of the analyst were forecasting for international a lot of the international markets. Are much newer in Amazon is investing to win those markets you know some of those markets India in particular is you no potentially. The biggest prize out there either India or China but India's largest perceived as like the the biggest potential consumer Market that that you know doesn't have a dominant player that already has it locked up. Like Amazon does North America or like Alibaba does China in so it it really is like the the biggest battle out there and you you wouldn't expect to be turning a profit in those kind of you know early. Investment markets at this point so the fact that that on their whole International portfolio they only lost 622 is actually. [15:35] A substantial piece of good news for Amazon. [15:39] And then the 3rd big chunk for them is AWS Amazon web services. That also had phenomenal growth That Grew at 48% based on your VR constant currency and prophets were like 1.4 billion. So you don't amazon-web-services once again 48% when you're already like the dominant market leader is super impressive. I think in the the shareholder letter Jeff Bezos talked a little bit about how. You know that Amazon really had this sort of 6-year Head Start before they had I think we called the like-minded. Competitors enter the market and so they they got this like 6 year old Vantage over everyone that they've really you know continue to keep their foot on the gas and just kind of you know take that early lead they were given and there. They're using that to keep building it and and you know so far they they haven't run out of growth opportunity there which is pretty scary and amazing. [16:47] So Saturday a business which we like to talk about a lot is there add business in it isn't yet big enough that it gets its own segment so the ads are kind of blended into those. Three buckets so there are at least they're in a 2/3 buckets in the North American International numbers. And what we'll talk a little bit more about them later but then the. The other shoes piece of news which I think it's most of the consumer a buzz this week, is that Amazon also announced a substantial increase in the price of a Prime Membership so they jacked up Prime 219 bucks a year, which is like a 20% increase for consumers. Scot:  [17:34] Yeah he had that goes into effect May 11th so if you're not a Prime member this is your chance to get it at a discount and it's it's it's interesting they're doing it now you got to presume Prime day will be sometime in early June so I think they're kind of ramping into Prime day I think they know they did have a lot of data that shows that's a big sign up time so there, third there some method to the madness on that date are you going to cancel your Prime Membership Jason. Jason:  [17:58] I am not potentially my wife and I which each one of them, for those not in the know One Prime Membership not only covers the whole household you can actually share it with five family members, and so someone silly that my spouse and I each have a Prime member but membership but you know those were these valuable assets that we both brought into the marriage and we're both love to let go of our, old old Prime memberships at work white and financially irresponsible. Scot:  [18:31] I look forward to hearing who's a subscribe and save as to be recreated. Jason:  [18:35] Yeah I as with most things I think it's pretty clear that my wife is going to win that. Scot:  [18:41] Cool let's see let's do a quick review of marketplaces so long time listener still remember that Amazon does not disclose the size of the marketplace from a GMP perspective but they do disclose one metric which is the mix between and it's a unit mix between 1 p.m. and 3 p.m. so that came in at a new high of 52% to 52% of the units sold on Amazon or third-party and. [19:07] We probably said this a thousand times so I'll just run through it very quickly so Amazon's revenue for the quarter is 51 billion and the third party is counted the other. 30 greatest between 10 and 15% I use 10% to make the math easy so really when you when you. When you back into it what you find is there's a huge hidden amount of sales happening at Amazon because they only can count 10% of those sales for the third party Marketplace so the ends up that about, 67 billion of that 50 billion is revenue from the third party Marketplace multiply that by 10, her actual number so this is. I used to be the only one that would pontificate on this so when I run it to my calculator I end up with the quarter at a hundred. The first party stuff has a lower aov because most of the digital. Apps books and those kinds of things are are in first party and they have a lower aov so it it kind of. Excuse the third party tends to be higher average order value so it's. Unit wise is 52% but volume-wise were looking at almost like 66% or 64%. Third party 40% first party so that people are kind of. [20:37] Picking a part of those clues in and then figuring out so they tell you. Seller Services Revenue in inside of their is FBA fees as well as third-party fees so if you make some educated guesses you can do something so one of the one of the Alice JMP, baseball schiano's pick this out there all around the same range they came in at 1 p.m. 31 billion third party at 70 billion so a total of 101 the right in the ballpark of where it where I've been guessing which is good so. The punchline of this is Amazon feels like a 200 billion dollar pastry Taylor but there really a 400 billion dollar pastry Taylor so just in this quarter. Yeah it feels like 50 billion which is the top line but there's another 50 or 60 billion have a hidden under the mass of the ice, which is this Marketplace in we always encourage people you and I are on a Jihad to tell all the retailers about this so that they don't underestimate the the impact of Amazon I just just reading an internet retailer. They're kind of doing that they missed it at this time and that all this is frustrating what other little nugget on the marketplace side Amazon is really pushing this new functionality called Amazon Global selling they were talking a lot about it at. [21:50] Shoptalk for example this is what allows small or businesses anywhere in the globe to search Lee use Amazon Fulfillment Network and load balance globally so you could be a seller in the UK. And have a practice doing well and if you allow Amazon they will load balance it. Across Europe into China and Japan that even in the United States so they had interesting stat that. The first time I saw where they said in 2017 Global sellers sales grew more than 50%. Exodus this kind of cohort of people doing Global selling their sales grew more than 50%, and now it represents more than 25% of third-party sales on Amazon so strong to be a pretty material part as this kind of cross-border trade functionality that Amazon has now. We know at Shell visor one of the red hot pass for this is China manufacturers over to the US and then to Europe in other markets. So so Amazon is kind of got rid of all the middle men in the import world so you have these factories directly shipping product into fpa's across the globe, and that product is getting sold on Amazon so it's kind of the wish model, put on steroids and that is a huge kind of growth area but it also frustrates a lot of the sellers on Amazon because you know they're up against I'm selling a brand in microscope, and there's a Chinese manufacturer signed exact same thing out of the same Factory without a brand for half price so that it does cause a lot of lot of angst out there in the world with this this program. Jason:  [23:25] Yeah and I think it's, Rite Aid the program works crazy well I get super hard to move goods from country to Country in Legally sell them and customs and Tara sent by, it used to be that that there was a huge competitive advantage to this like relatively small pool of people that have the expertise to navigate all those systems and Amazon really takes all the complexity out of that like kids in their dorm room can now do cross-border trade which, you know what uniform was not possible and so is as more people adopt this system like, the fact that it kind of raises all tides in it it it also makes you know counterfeit product and and all those things sort of more ubiquitous we available it is a growing concern. Scot:  [24:14] Yeah. I don't think that people underestimate it's just like just kind of Fino translation so because Amazon has this a sand catalog if they take a certain widget, and translate it you know it gets translated into for five languages the next person to come sell that widget doesn't have to do the translation for just kind of say, yeah yes that's the same Mason and they get the automatic translation that's been done they get to ride on that investment so, if you're doing your website or something like that you don't get that benefit you going to translate it over and over and over again for every SKU where's Amazon gets this really nice kind of I reuse out of their catalog which is another huge benefit of this program. Jason:  [24:52] Yeah you know one thing I've never asked you know Diddy translate like the reviews or the reviews country-by-country. Scot:  [24:59] Country by country. Jason:  [25:01] Okay so they still have to build up the start of social proof in each welcome Market. [25:06] Anything else we want to talk about in the marketplaces this week. Scot:  [25:12] Dallas jumping to ads. Jason:  [25:14] Yeah so you know they have this Revenue line they call other services which we think is mostly their ad business you know what else is in other services anything meaningful Scott. Scot:  [25:27] The do some of the do a branded credit card and they do some other, they do on-site advertising so that ever tizing were talking about is a mg and a mess that tends to be 95 to 90% of the Intensive purposes it's the advertising business which is the new helping sellers promote their products. Jason:  [25:49] Got it yep and said that whole pool guy grew a hundred 32% year-over-year to 2 billion dollars for the quarter so I think that is one of the this is one of those categories that was affected by the 606 Gap. Reporting is that true. Scot:  [26:05] Yeah if you if you met that out in group a paltry 72%. Jason:  [26:09] Well then I don't know why we're even wasting their talking about it. So like this is more than one of these classic models where you know Google and Facebook are the dominant digital advertising platforms that have the bulk of the revenue and, you know Amazon it at a much more base is there for able to grow much more quickly. But 72% is is still a red-hot growth and I think they worked that's up from 60% growth last quarter so I. The pace of growth is accelerating. [26:42] And you know as a reminder for somebody games on the one of the reasons ad revenue is super exciting is. It's highly profitable like you. Much more so than been selling physical Goods you know to the extent that it successful. It's an ear recurring Revenue stream and so it's almost like a more valuable dollar of Revenue than some of Amazon's other sources of. Of Revenue in the Amazon is really quickly and merging. As kind of the the third digital advertising platform and so you know you seen a lot of buzz in the trades about it. You know when people try to analyze that number they get to a couple different places like I think I've seen some estimates in the like 5 to 6 billion dollars a year. I seen some people estimating 8 or 9 billion dollars a year for 2018 I have a feeling some of that has to do with. Whether they're looking at the old accounting of the new accounting there is some seasonality that advertising for a for a lot of these products. [27:52] The I think there is an anise out there that kind of try to forecast this Revenue out to 2023 and they got 236 billion. So that put you in the order of magnitude of Google and Facebook although you know presumably those will both be a lot bigger by. By 2023 than they are today but today Facebook said about, like just under a 50 billion dollar run rate so like 48 billion dollars so they Amazon's really able to get there that's a meaningful third competitor and that's a pretty nice, like ancillary Revenue stream for Amazon on top of all the other well-established businesses that they have. Scot:  [28:29] Yeah and we will talk about this we've been pounding this drum for probably 2 years that you know a lot of folks think this will be the third leg so that retail being one actually, marketplaces I would call the second and then AWS the 3rd and then adds the 4th you have billion dollars and then you and I have talked about, a voice like Alexa being number 5 so so I think there's kind of five legs to the store which is just not fair that you only need three but anyway that's the life of the Amazon. Jason:  [28:56] It's a very stable stool. Scot:  [28:57] It is a very stable stool and you know I said I think. It's going to be really interesting so Facebook's had some stumbles here you know, Google has some headwinds in certain areas in fact Google had a really nice quarter and they're shocked and removed much and I think a lot of it is people are starting to think when does this you know, so if Amazon is growing this business at cause 72%, when is the start to eat into Facebook and Google and it's long been an industry metric that something like 25% of Google's revenue comes from product-based terms which makes sense cuz they're you know if you kind of think about the verticals at Google you have time for a retail vertical I finance vertical Auto those kinds of things, the feels like it would be a pretty big one Facebook also and I either Superior amount of product that's advertised on Facebook we had them on the show several times talk about all the great offering they have there so it's going to be really nice to see is this wraps up. Do yo at some point there's got to be some share that gets taken and, maybe maybe the lines cross faster than we think there are if maybe if Amazon on its path that 36 billion maybe Facebook doesn't keep growing it kind of the pace it is because there's going to be some loss of share somewhere in there, I am when we at Chalmers are we talked to Brands specifically they are moving big dollars to this in a lot of it comes from your Prime. More you got more data than I do on this but a lot of it's coming out of old school media but it's coming out of Google budget some things that because they're just feeling like this is actually more miserable than the Google stuff because if you're a brand is hard to go buy Google ads because you usually have to find a retailer to do it and it's really complicated you have to trust their data and it gets really. [30:44] Really murky but if your brand you get really good data back from Amazon on exactly what's going on so so to the Brand's it feels like one of those measurable things are doing, hi the last point we we had, Jamie from Darrell on and remember he was talking about how they can actually measure offline impact of Amazon advertising because so many people are starting their product searches Amazon they saw. Stop sales at like Walmart and Costco go up when they did a very kind of isolated programming Amazon so this is a pretty interesting area of Amazon and we're keeping a close eye on it and courage to run to, to watch this because and if you haven't experimented in your business this is where I be. Putting a lot of effort heading into holiday at 18 because I think it's going to be a really big opportunity. Jason:  [31:29] Yeah for sure to so one thing I don't you mention Jamie just a piece of side news Jimmy is actually left her out and he's now running e-commerce for Keurig which is a, interesting to report having a back on the show to talk about his experience there in the near future. [31:46] In your two interesting things about advertising the. At the moment the reason that you probably don't feel like Amazon's growth coming out of Google and Facebook is because it, it is like all digital advertising is growing very rapidly as it's coming out of the traditional sort of dead tree media right so so print in intellivision and if you think about, the the traditional base advertising, your most advertising comes from Brands not retailers and they start they do two kinds of advertising like they do advertising to build awareness for the brand so they'll buy a Super Bowl at the by ad in a magazine that just says you know Mercedes-Benz cars are great or you know Bounty towels are the quicker picker-upper or whatever whatever the case may be, and the success criteria for those ads are just how many people saw. [32:41] Or maybe they'll do some study to say how many people remember our brand as a result of seeing that at rights of the the the. The outcomes of those ads are that the ad reached a person and that maybe the person remembered it. And then brands do this other kind of advertising with a partner with a retailer and what they called trade advertising and most of that advertising is like. Ads in the paper for their products you know what we call store circulars. Or even a lot of the advertising in the store the the point-of-purchase advertising is funded by manufacturers. So when you think about digital the. A lot of the Google advertising is replacing that brand awareness advertising I'm in it has the same kind of success criteria like how big was the audience that's on my Google ad, one of the things that super you know interesting and appealing about the Amazon ads are that you your success criteria is, how much good you sold rights are you you do get much lower on the funnel as people start to lose confidence in these advertising Vehicles the safe place to be is the advertising Vehicles where you can actually measure a true Roi. And so Amazon actually has a big competitive advantage over Google and Facebook and being able to quantify the value of the ads which is super interesting. But the other interesting thing is Amazon can actually draw ad Revenue. [34:12] From both of those old school models right so Amazon can get ads from the CMO at Procter & Gamble that used to buy a Super Bowl ad, an Amazon can credibly make the argument that you'll get more eyeballs on our platform then you will on the Super Bowl, but they can also get ad revenue from those trade teams that were you know historically buying store circulars in it and advertising in store at Walmart and instead get them to advertise next to the products, an Amazon and so systemically those are two big advantages over the other big digital platforms it in the long run make Amazon a real scary competitor to Amazon Facebook and Google. Scot:  [34:51] Absolutely and there's a fair amount of add load on the site. But you know if there's an auction underneath there so there's a fair amount of room to run so Google for example has had you have near the same ad load the tweet that but you know call it around the same ad load and and they continue to grow the last 10 years so so just within the current system, but but Amazon hasn't even there kind of version 1 L on a lot of their tools and they haven't even really started with video so one of the smartest Acquisitions I think Amazon did a lot of people don't pay attention to his twitch so you see all these people now that are making, there's this guy ninja he makes like $500 a month streaming fortnite and other games, well that uses switch for that and you can imagine that's a pretty interesting audience for people to monetize so there's. This really interesting things that they can do and they're also doing the Thursday night NFL so you could even say. Musterbrand let's run in NFL ad and I can sell you exact exactly how much tide you sold this ad versus just eyeballs. Jason:  [35:54] For sure which is very powerful I think that NFL deal maybe one of the main reasons they're able to get away with a hundred twenty bucks. Scot:  [36:01] Yeah absolutely. Cool last little piece on the quarterly earnings everyone Wall Street is very much a what have you done for me lately things are like good job great quarter what's coming next work so it's Amazon's practice to provide for guidance and they released their Q2 guidance, and it's going to come in at a growth rate between 34 and 42% which is 38% of the midpoint this the succeeded what all Wall Street was thinking there so, I am kind of classic Wall Street parlance it was a beat so the current quarter. [36:35] Expectations and then they race was being raised which is kind of what you want and it was a it wasn't kind of a wallet and a huge jump up kind of thing, so correspondingly you saw the stock really take a nice move and then most analysts have raised their price targets up into the socks kind of in the 1500 right now most people have raised the stock up to the highest I saw this 20/20 which was actually a, a phone number where that is that's right when they get to $20 so Scott debit over at stifel raised it up to 2020 kind of saying, county is Chester this will be the first trying dollar stock, I'm to the point we we pretty regularly about once a quarter when we do these shows we talk about this race to a trillion dollars so when you. Public companies you have a market cap and that's essentially taking the number of shares outstanding of multiplying it by the share price niggachu a market cap, use Yahoo finance or something it's already calculated for either so last time we visited this Jason Amazon was kind of going back and forth. What's number 3 and 4 with Microsoft so today if we look at this the number for company is Microsoft at a 718 billion dollar market cap. [37:47] Number three is Google at 7:06 and Amazon is now number two so this move they've had up in the stock from about a thousand to 1500 over the last. 8 months. It's beautiful up to the number to market cap company is 760 billion which is only about in a 340 billion shy of a trillion and 10% away from the lead the lead right now Apple + 838 billion. Apple is announcing tomorrow Tuesday or Wednesday there's a lot of concern around Apple there, you know we talked about the the new speaker they have you were not a huge fan of that one and, that has been kind of dud the iPhone x hasn't been blowing off shelves and they have a China problem so there could be. Because you have this kind of combination of looks like Amazon how to blow out there's a lot of concerned about Apple watch can see how they come out. But but anyway long-term if we can't think about this leading up number 5. Is Facebook at 497 think I should drop pretty considerably since this whole Russian interference thing is going to come up and in Autumn so. The the number for listeners to keep in mind is when Amazon gets to 1700 they should be in the lead and then when they get to just around that 20/20 number, they should hit a trillion dollars so it weave, I've been calling that they would be the first to get to Troy and for a couple years and it seems like that was a long shot and it's increasingly looking like it's theirs to lose so we'll see. Jason:  [39:23] How much will you personally make it they do that. Scot:  [39:26] No, Jason:  [39:31] So we mentioned in the outset that Jeff also released his annual shareholder letter so you know there's a bunch of interesting facts in that way every year but this is one huge Marquee fact that caught everyone's attention and was at, some of the big reveal and that fact is the Jeff Bezos does not know how to do a handstand. Scot:  [39:56] They're so yeah so kind of a painful personal admission. Jason:  [40:01] Yep. So he told a little personal story that involve the fact that he's going to do a handstand and after he got through that he mention that oh by the way we have a hundred million paid Prime members. Scot:  [40:12] This is a surprise cuz they've been very private about this for since Inception so I think everyone was caught off guard when they're reading the letter to see that and it caused quite a frenzy. Jason:  [40:24] Yeah I feel friend the show Jason Del Rey like predicted back in in like 2015 that he thought this was going to be the big year that Amazon Finally Revealed their prime number and so he was was only off by 3 years which is. Better than some people but so that we were talking a little bit before the show that number. [40:45] It requires a little bit of context but it certainly was in the range of a lot of the estimates, the verse folks have been making right like I mean certain order magnitude would you you call that like soda in The Sweet Spot of those estimates. Scot:  [41:01] Yeah there's so the washer guys were kind of clustered right around this hundred million number and so couple, couple things so she act all these parts would but these guys a very closely so that person why they said over so that gives us some pretty big range you know something somewhere over, I got a hundred million and one up to Infinity so there's there's a big range there but I think we can assume, you know I doubt it would be more than 110 so I think I would guess it's between 100 and 110 I don't think they would. Jason:  [41:30] He would have said over a hundred ten million if it was over a hundred ten. Scot:  [41:33] Maybe but then they're very catty to so for all I know it could be like a hundred fifty so it's really hard to guess what you guys. But that being said so if you take that hundred million and it's paid so just remind folks do see a couple free entries into Prime and if she'll does off when used to be Amazon mom's now, if wrap that up in the family program Jason was talking about we can have multiple people on a Prime account and then so it's kind of more of a household thing and then number to used to have free for students, this is largely to get their textbook business which is quite lucrative, I'm in Amazon now doing it does that to give 6 months free for students that's a very long extended trial program and then four-year discounted until they graduate. So All those programs up now pretty much converted to two paid so the only free Prime out there are people that are either in their 30-day trial or their 6-month trial with their students so it's a largely survey people and they say their Prime I think, but she can be paid maybe plus or minus 10% but but pretty small. There is a global number so most Wall Street people had, weed when you take Amazon and you want to take their Global number and parse it I usually go 6040 so 60 us 40 International which is kind of how there, their GMP goes so some example that add number at 2 billion is probably 60% us 40% International now ads are probably less developed International so I made fudge that look at 7030 or 8020 but I do think for her prime, pretty mature and all the markets so I would say that hundred mine is going to be 60 us. Jason:  [43:07] Although there are a bunch of Prime benefits that are exclusive to North America still right like grocery a lot of the digital video content. Scot:  [43:18] Video ethics National now. Jason:  [43:21] Okay the the like the prime the grocery delivery from Whole Foods is certainly unique to the US. [43:34] Okay so I'll give it to you so 60. Scot:  [43:39] But in the UK you get same-day so it's kind of. Jason:  [43:43] Yeah but that's a tiny little island that's cheating. Scot:  [43:45] There's a pretty big part of your 2. Jason:  [43:51] Oh they're not part of your anymore he didn't get the memo. Scot:  [43:54] It hasn't happened yet we're working Liam. The the one outlier is there's this company called cirp in a few what it is like consumer information research protocol and they had Amazon it 99 in the US so I think they kind of are off a bit now. you guys find out to do surveys of really small numbers in the extrapolating so they like survey 10 people in 9/2 Prime and I like well certainly 90 million people in the US have, it's not that bad but I think that's the little bit off so. You know the way to think about this I always see this like 60-70 80% of us households have Prime if you take this number and we see it 60 million there's a hundred twenty six million households in the US so this puts a right at 50%, I'm so 50% of households in the US have Prime that that feels right to me and then I think if you know if you parse that and look at demographics. Yeah if for household this is the way the Census Bureau defines it for household incomes over a hundred and twenty K you're going to look at like 80 90% penetration then as you go lower it's going to get off. Yeah down at the sub 50k it's going to be 20 30% of us households so so at that all fuels and checks out to me. Jason:  [45:08] Yeah two things are interesting to me so you crank up Prime membership to a hundred twenty bucks a year you have a hundred million page users you, start the every year with 12 billion in Revenue before you sell I think. Which is a pretty nice asset versus every other retailer on the planet that starts in zero every year with one exception which is our friends at Costco. Scot:  [45:36] Give me. Jason:  [45:40] And so I always like to compare Prime Membership with Costco so Costco has 90 million paid members in Costco is almost exclusively and I think is exclusively North America so not so there still, significantly ahead of Amazon which is interesting and just a reminder on on Costco's model, what is an oversimplification but Costco almost drives to break even on all their sales and essentially make. There their annual profit be that that Costco membership fee that they earn every year. [46:26] Inside like pretty interesting you know Costco membership is less expensive than a Prime Membership but like it's Costco members tend to skew older than Amazon members at the moment so it's kind of interesting you, you would certainly think that if you're looking for with a cap is on Prime members it's certainly not the 60 million there at now it's at least the 90 million and since Amazon has a much broader demographic than Costco. In North America. You know you can imagine it's even north of that so you know maybe one day after Amazon passes that that trillion-dollar Mark you you know we could see them. I'm in that 90 or hundred million just in North America. Scot:  [47:07] Yeah I've seen analysts do a bunch of surveys on this and there's a pretty high enough it's almost like 85% overlap of Costco and Prime members is pretty high. Jason:  [47:18] Yeah for sure and then the other interesting thing to me about crime is there was also some news it was alluded to in the shareholder letter, but the Whole Foods is actually in the process of turning off all of their existing Affinity programs and it's a pretty clear that they're going to be replacing. The the Whole Foods Affinity programs with Prime in those Whole Food stores and that's going to be. What a real interesting set of new experiences and you know another lucrative reason that that people might. [47:58] Become Prime members or at the very least retain their Prime Membership. [48:05] And with that it is happening again we've used up all our a lot of time we tried to be a little more concise for this deep. But if you have questions or you feel like Scott or more likely I got something horribly wrong we love to hear your point of view on our Facebook page so jump on over there and leave us a comment and we'll try to respond as quickly as possible. You're always welcome to reach out to us on Twitter and if you found this show useful or valuable we would certainly appreciate it if you'd spend 30 seconds and jump over to iTunes and leave us that 5-star review. Scot:  [48:42] Thanks for this five stars everyone and thanks for joining us this week. Jason:  [48:46] Until next time happy commercing.

I caught up with Richard “Buzzy” Busby, Principal Solution Architect at Amazon Web Services, at Xerocon earlier this month to learn more about how traditional small businesses can use AWS to grow their businesses. Buzzy shares how a new product announce at AWS re:Invent, SageMaker, can help SMBs leverage the power of machine learning to find insights into important business areas. He also discusses how SMBs can get involved with using Amazon’s Alexa virtual assistant to connect with customers, and how they can leverage AWS technology partners to get new business ideas quickly in action on the AWS platform.

EP092 - Artificial Intelligence Deep Dive   "We're in the middle of an obvious disruption right now: machine learning and artificial intelligence. It is a renaissance, it is a golden age. We are solving problems that were in the realm of science fiction for the last several decades." - Jeff Bezos This episode is a deep dive into all the use-cases for Artificial Intelligence and machine learning in retail. Insight Generation Analytics - Google Automated Insights Multi-Variable Regression Testing (Correlation)  Targeting - Best Audience / Next Best $ Social Listening / Sentiment Campaign Attribution / ROI Business Acceleration Inventory Management/Forecasting Merchandise Compliance Checkout - such as Amazon Go Product Design - such as Stichfix Tagging/Unstructured Data Fraud Price/Promotion Optimization Logistic Optimization Drone Delivery Customer Engagement Natural Language Assistants Virtual Agents Guided Selling Visual Search Search Recommendations  Fitment/Return Avoidance Personalization Loyalty/Retention AI Vendors Discussed General: IBM Bluemix Watson  Google Cloud Platform  Microsoft Azure Amazon AWS  -  including DSSTNE (pronounced “destiny”), the Amazon recommendation engine Retail Specific Vendors: Twiggle - Search Sentient.ai - Visual Search/ Personalization/ Recommendations Clarifai.com - Visual Search / Video Simbe Robotics - “tally” Robot / Shelf Audit / Inventory Focal Systems - Computer Vision / Inventory Luminoso -  Analytics Don't forget to like our facebook page, and if you enjoyed this episode please write us a review on itunes. Episode 92 of the Jason & Scot show was recorded on Monday July 10, 2017. New beta feature - Google Automated Transcription of the show: http://jasonandscot.com Join your hosts Jason "Retailgeek" Goldberg, SVP Commerce & Content at SapientRazorfish, and Scot Wingo, Founder and Executive Chairman of Channel Advisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing. Transcript Jason: [0:25] Welcome to the Jason and Scott show this is episode 92 being recorded on Monday July 10th 2017 I'm your host Jason retailgeek Goldberg and as usual I'm here with your co-host Scot Wingo. Scot: [0:40] Hey Jason happy Prime day Eve. Jason: [0:44] Happy Prime day Eve to you Scott. Scot: [0:47] You were recording here on July 10th Prime deals have launched the Alexa deals exclusives came out days ago I think I don't like 5 days ago and then now here at 9 to watch somebody else it's pretty exciting. Jason: [1:00] Yeah if you made a bunch of purchases yet. Scot: [1:03] Hi man I'm kind of just kind of keeping you in Iowa. One of the things I suffer from that I think I have is already have a fair number of Amazon devices so does seem to be the most discounted items and unfortunately already have a pretty full dance card there. Jason: [1:19] Yep I'm in the same boat it feels like there's a lot of deals but it's slightly tricky to identify the deals that would be personally interesting to you like as as is a problem with Amazon in many other areas Discovery is not their strength. Scot: [1:34] Yeah did see some pretty nursing with Deco and sipping pretty dramatically off younis I've seen some 30 40 50 per cent off so it's pretty pretty good. Jason: [1:43] Yeah if you haven't invested in the hardware this is definitely the right time to buy the hardware and other way to extend till I Kindles and stuff too so the lot of interesting things you can do with Kindle tablets, you can Jailbreak come and put other operating systems and stuff on them so I know a lot of people that use prime day as an opportunity to stock up on Hardware. Scot: [2:02] This is our first show in July we took a little bit of a vacation there how was your fourth of July. Jason: [2:09] It was great my mom was in town got to spend some time with her grandson and so we had a good time everyone in my family enjoys the 4th of July except MacGyver who definitely does not enjoy the 4th of July or a dog. Scot: [2:22] I got to get my ThunderShirt. Jason: [2:23] We've escalated from the Thundershirt to Pharmaceuticals. Scot: [2:28] Quaaludes. Jason: [2:33] Yeah I don't think he's getting quite as strong enough jokes to appreciate it but at least it's helping him take the edge off. Scot: [2:38] And then I guess you're stuck around Chicago then. Jason: [2:43] We did. [2:46] Dumb like mine anything else one of the nice things about Chicago being so flat is all the windows in my home face West and so from any room in our house you can actually see like for commercial firework shows in parallel. [3:01] Yeah I see you have to go nowhere to enjoy the fireworks. Scot: [3:06] Courtney retail trips to 247 in the gun down to see the Amazon bookstore there in Chicago. Jason: [3:13] Been to the Amazon bookstore a few times and I think we've talked about my visit there I have not been to any. Super exciting new retail I was in the Bay Area since our last show and I've talked about the beta store before in Seattle that the original beta store was in Palo Alto so I got a chance to visit that and it was. [3:37] In a frankly pretty similar to the the Seattle one and I did finally get to visit a. Up in San Francisco I'm a little shame that's been been so so long but I finally got to visit a next generation Apple Store. Scot: [3:51] What was that all about. Jason: [3:53] Well it's been pretty widely covered in the Press like these are the stores that have like the expert Grove and they have a lot of the organic elements and have a big video wall these are like the the Angela Earnhardt. Next generation Apple stores in you know I think they are improvements. I don't know that they make a big deal of difference in Amazon's business model like seems like they have the same voluminous number of people and employees as. The traditional Apple Store so I'll be curious if they ever came out and said like but the it's a much more expensive store to build I'd be curious if they feel like they like their. Never better return. Scot: [4:39] Got it cool sounds like you had a good time where you able to see any good movies. Jason: [4:45] I am no I did not were woefully behind on movie so Wonder Woman's at the top of the list of ones I haven't seen I feel like being a parent of a toddler is very detrimental to my movie-watching. Scot: [4:58] Absolute you're way behind on your movie-going. Jason: [5:01] I am I am I'm jealous of you and your ear like premieres like you can take your kids to the premier's. Scot: [5:09] Yep you have already seen Spider-Man Despicable Me 3 caught up. Jason: [5:14] Is a lot of talk about how the Spider-Mans are are much worse than the last generation is that your take. Scot: [5:22] I like I like this one in the Tobey Maguire I didn't like the one in the middle so I guess I'm counter Spidey. Jason: [5:30] Got you yeah so there's some there's some like critical videos that have gained traction on the internet that compare the Tobey Maguire ones to these current ones and they there they come down pretty hard on the current ones. [5:47] Yep. Scot: [5:49] Cool solicitors we've been doing a lot of interviews lately and it's time to mix it up and we're going bring back one of our most popular segments. [6:13] Deep dive this week we're going to do a deep dive into all things artificial intelligence and how it may impact Commerce. [6:23] This year's annual letter to shareholders Jeff Bezos talked a lot about Ai and machine learning so here's a little segment from that. These pictures are not that hard to spot they get talked and written about a lot but they can be a strangely hard for large organisations to embrace we're in the middle of an obvious one right now machine learning in artificial intelligence. It's a Renaissance a golden age Bezos said we're solving problems with machine learning in AI that were in the realm of Science Fiction for the last several decades. So I also remember when Bezos kind of dropped in one of those interviews earlier in the year that they had a thousand people working on machine learning so. Jason this one is squarely in your real house so I'm going to kind of take back burner here in simply interview you for for the audience so once you kick it off and give us your definition. Of a i and she running a lot of people using these all over the place so it's want to hear your your kind of foundational of you of of how we should think about these things. Jason: [7:18] I do think the definitions are all over the place in that that creates a lot of confusion there sort of the, a technical Definition of artificial intelligence which is not what anyone in our industry means when they talk about artificial intelligence cuz they like. Real artificial intelligences was called artificial general intelligence or a GI that's the whole notion of a, computer being able to do all the tasks that a human can and being like you know technology being indistinguishable from a human being and so, nothing that we're talking about is anything approaching that and there's certainly like that technology is not in the near Horizon for us that's. You know at least 10 plus years out and their lot of people that. Smarter people to me that argue about if and when it'll ever happen and if it did you know you could have any get to that. That Singularity that Ray Kurzweil likes to talk about. [8:14] So most of the time in our industry one they're talking about with the Ruby talking about is applied AI or what the scientist sometimes call Nero AI or weak Ai and what they mean by that is. The Machine's ability to do one specific thing as well as a human being can. And so you know a classic example of of Nero AI is Siri. Being able to do a very specific set of tasks like a human can in this. Highlights the real problem with the definition of a eye is unless you also Define the set of tasks you're talking about. [8:55] You can't really understand what someone means when they're when they're talking about applied AR right so if. [9:03] I said like in the 1970s that hey we just invented a computer program that can play chess right like the. Back then the the the Nero task was the ability to follow the rules of chest it wasn't necessarily good at chess and couldn't beat a good chess player but just being able to play chess was a very classic definition of AI in the 1970s. Today for for any of us to really think of Chess as AI you have to be talking about a chess program that can beat a Grandmaster. Right and so the the task that you're talking about change dramatically from just playing chess to playing Chessa to Grandmaster level. And so it it's kind of interesting the AI is always shifting when when you know recommendation engines for e-commerce first came out, that was state-of-the-art AI you know when folks like Netflix and Amazon first launched those features, that that was the The Pinnacle of AI you know today you know you've got a dozen vendors you can pick to plug into your website to do basic product recommendations and most of us don't think of those as. A a current example of a I-44 example so, the definitions are constantly shifting and then we have this problem of their these three terms that get used kind of interchangeably in our industry there's, artificial intelligence which is what we've been saying so far there's a related discipline called machine learning that gets used interchangeably with artificial intelligence a lot and then there is this third term. [10:35] Cognitive Computing and the there are specific definitions of each of those but when you know in the in the world of, e-commerce and vendors they're all using this using them and using them interchangeably I'm in so it makes it really hard to, know what folks are are even talking about. Scot: [10:55] So that's helpful I think the thing that the listeners price struggle with is how much is reality and how much is hype so for example when we were at shoptalk if just a couple months ago really, every vendor there for so there's this explosion of new vendors so if we had a fair number of vendors are in history and now there's no. Really a doubling or tripling and it seems like every one of the vendors is a redo of an existing vendor but with a machine like machine learning a I kind of an angle so now there's on site search. Adword bidding machines product recommendations upsell engines email optimizations that. [11:36] Brazilians of these kinds of things if I'm a retailer. Should part of my 2017 strategy be to just go and figure out all the vendors I have today and find a machine learning version of them and if that's not the answer then where. Where can someone have the biggest impact for for listeners that are out there with us technology. Jason: [11:55] That's a great question Scot we should do a podcast about that. Scot: [11:59] We're right in the middle of the chest. Jason: [12:00] Oh geez alright well I'm going to start while I come up with an answer but, in in all seriousness your hypothetical is I would send it as exactly what you shouldn't do you know there's no reason to just go look for versions of all your turn to experiences, never provided by a vendor that's bolted one of the AI words onto their service because that, that word doesn't make that service any better or worse than it was before and totally agree with you you know vendors are both in these things on right or left like we. You know there's some folks that I be in that take it really seriously but it's fun to poke fun at them, they have this technology or they would call cognitive Computing technology that they branded Watson and some days it feels like they've just added Watson to the front of every product that IBM sells. [12:51] And so you know the is that a better version than the last version because it has the word Watson in front of it but well. Not necessarily should you pay more money for it because it has the word Watson in front of it like I certainly not. I was looking at the vendor list from irce there's 22 vendors that have bolted a Ion 2. You know their existing product and I'm getting these like calls everyday from vendors saying hey I know you weren't interested on probably before but we pivoted and we're now in a I you know so and so and we would love some of your time to talk about how we should take. Take our product to all your clients and. You know you sort of implied in the question that's a bad strategy nothing's going to be better by just buying an AI version of it. Going back to our friend and number one listened or Jeff Bezos. She talked about machine learning as a sort of a horizontal layer right like so it's not a in point it's a it's a technology that enables, new kinds of experiences and he has this pretty simple definite definition that I like to use he says, like over the past decades computers have broadly automated tasks the programmers could describe with clear rules and Ayala grissom's in what modern machine learning does, is allow us to do the same for tasks where describing the rules is much harder right so, playing chess is a relatively defined set of rules and you could write a computer program that follow those rules but what machine learning let you do is. [14:30] Make a program that can play chess really well even though the programmer themselves might not be able to write a set of best practices for actually playing chess, and so what what we're really looking for our specific use cases in Commerce, that are made possible or made dramatically better by adding this horizontal layer by adding this ability to, to do fuzzy stuff that was hard to write rules for in the past, and so what I would say rather than looking for labels like you ought to be thinking about specific use cases, that are made much better or an able for the first time by underlying Technologies and decide whether any of those use cases are particular helpful for you. Scot: [15:20] So that's helpful what what are some. Where some examples of where retailers can use this technology in and maybe give folks a little bit of framework for helping him think about this so that they can kind of formulate a plan and figure out how to start sampling some of these things. Jason: [15:36] So so what's do exactly that was jump into some specifics and I I like to, kind of divide the experiences into three buckets the first bucket I called the insides generation bucket and that's all of the sort of, analytics data processing type things you can do and I'll go into some examples in just a second the second buzz bucket is what I've called business acceleration it's, saving time or money or reducing complexity from from various business processes. In the third bucket is customer engagement it's it's new customer experiences that you couldn't do before the customers appreciate and make you a better Merchant ER or a better solution for those customers. So let's they're talking about some of the the specific Commerce use cases that might fit in each one of those buck. [16:32] So the first one I like to talk about in the insights bucket is. Basic web analytics so we've had web analytics for a long time and you know they don't come with key and reports and dashboards and you can make your own custom reports but all of the traditional Analytics. Require you knowing the smart question to ask and then the the analytics engine being able to show you go find the answer to that question you asked. [17:03] And so you again you could you could put into find rules for what was in that dashboard and what wasn't. What machine learning let you do two analytics is find insights that you weren't smart enough to ask the question for. And so this is already being built into a lot of the traditional analytics product so there is now a beta feature in Google Analytics. Call Google automated insights and essentially instead of you having to define a segment and ask a smart question like. How do mobile users convert versus desktop users or how do first-time visitors convert versus repeat visitors or things like that. [17:43] Google will use machine learning to evaluate all your data, and suggest segments that that are particularly interesting or highlight some unique opportunities for you so it's. The the analytics engine becoming smart enough to ask the smart questions that we aren't smart enough to ask. [18:06] For the first time and that's an example to me if something is pretty exciting in the machine learning space that makes Commerce operators much better. [18:17] So another one that you and I were talking about earlier is this notion of discovering correlations outside of web analytics right so there's there's a lot of. Behavior is in Commerce that that have have. [18:35] Correlations or there's urban legends that that supposably things correlate that might affect how you run your business so I sort of the the, the famous example in e-commerce is weather and you know that type of product you should offer when it's raining versus Sonny and of course all retailers complain about whatever the weather is in playing that that was the reason that their sales were off. And so it's interesting to know what the correlation the real correlation between weather and sales are the famous not obvious correlation that turns out to be Urban myth is, the beer sales correlate very closely to diaper sales. And you go will guys would have those two have in common and it's it's in theory it was that the the dad got sent to the store to get get a new box of diapers and he also of course grabbed a six pack of beer. [19:27] And you mentioned you were using some interesting correlation tools at spiffy. Scot: [19:34] Yes yes sir. My latest company does On Demand Car Wash and detailing and you note small companies still getting off the ground essentially and. So one of our folks was playing around with the Amazon machine learning and the, play the story really is that some of the stuff feels like you have to be a multibillion-dollar company to play with it but we found the Amazon stuff is really approachable we'll put on Lincoln the show notes to took on this model that we used in essentially what you do is you can upload a. Transactional database withing about a really long spreadsheet. Spreadsheet with bunch of transactional data on every row you can put in there what you know about that transaction so obvious things like they OV the skew that kind of stuff in our world of car washing we know the vehicle. We know the location the zip code and some those kinds of things so you know what it's spit out with those really interesting and we also know the weather so. We were just doing this to really kind of. [20:32] Play around with the weather part of it but it was interesting as it said your inversely correlated to the weather which is the first inside it offered which was too obvious when we were looking for so when it's raining no one wants their car washed, but then the next thing it did and it said your model customer drives an American SUV probably Yukon and. [20:51] These are the top three zip codes that are correlated to your sales in Sunny warm weather wow those are things we had never even really. Kind of thought that you could figure out but it it is what it does you can come look at that data. And sniff out these correlations that that human just can't process so in all that is done to a pretty simple you I or you can upload a spreadsheet so, why the stuff feels like it's pretty science-fiction E when you hear about it but that was an example that I wanted to share with listeners where we were able to get some pretty interesting insights just by by using a web-based interface Steven API this with Amazon web. Web stuff. Jason: [21:31] Very cold and so that's that's an actual business user versus a data scientist in that case. Scot: [21:38] Absolutely. Jason: [21:38] Awesome yeah so those are those are great examples other common ones that we run into an in Commerce or around like targeting and best audiences so you know again, we have a lot of data about all the people that have bought from you in the past who you know what are the look-alikes that you should be, see you know buying from Facebook or other ad sources that are potentially most valuable to you you know in other all the marketing activities, that you could be doing for your business which one is going to give you the the best return for the next dollar of marketing spend you have so you know we're seeing these, these machine learning based analytics tools, get really good at defining Target audiences and helping figure out next best dollar sort of related to that are, the ability to do attribution and Roy models so you know, traditionally in in e-commerce we all use this model called the last click attribution which is whatever the last thing that guy did before they bought something, that's the activity that got 100% of the credit for the sale. That's kind of the default model in most of the analytics tools still and too many people use it and it's completely wrong headed. You know that sort of like saying like what's the most valuable thing in my store will it's the cash register cuz everyone uses the cash register read before they buy something. [23:09] The so there are all these other attribution models that give partial credit fractional credit to all the different marketing activities that led up to a purchase in the problem has always been. Will which model you know is most accurate for my business and you had to pick them out all, and you really didn't know if you would pick the right model or not so now with machine learning, the program kind of analyze your data and picks the best attribution model for you and so you know for the first time to your point business users. Using kind of web-based analytics tools can start getting these really sophisticated Roi calculations and customer lifetime value calculations. Without having to be a data scientist that could smartly pick the right attribution model. And then I guess the other area of inside generation that's getting a lot of traction right now. Is this whole notion of sentiment analysis or or more specifically for Commerce will call it social listening right and so that's this. This notion that man you have this fire hose of data of people talking about you on Twitter and Facebook and we chat and. [24:19] You know should I what should I be doing to enhance my reputation are people talking favorably about me or they speaking negatively about me which tweet should I flag for for customer service follow up. In the old world where you just had to have an army of people read all these things to make decisions on all of it it from most companies. The volume with such that it just didn't scale and didn't make sense but now with machine learning you can actually, process the entire fire hose or social media and do a pretty good job of categorizing all of the the dialogue about your brand or product or business into actionable buckets that tell you, you know. Weather weather audiences are looking at you favorably or negatively with it they like your new products are don't like your new products and more specifically what what specific, comments and social media you should be taking action on a responding to to try to improve your your reputation and customer service. [25:22] Assume you're doing all that at spiffy Scot. Scot: [25:25] We're just playing around with some correlations at this point. Jason: [25:28] Nice I wasn't. Scot: [25:30] I think some of the cinnamon stuff some of the Wall Street guys are like reading the Twitter firehose to try to get cinnamints on stocks and things it's I'm not sure that use case but it is pretty nursing. Jason: [25:39] Yeah well I didn't you know once or the interesting one is the. [25:44] Retailers are starting to report less and less data to the analyst which I know irritates the analyst to no end and so they're looking for all sorts of new tools too sore to get a read, like what weather Retailer's quarterly financial performance will be in any of those are these machine learning tools in some cases it's. Taking pictures of parking lots in malls with drones and using those two to evaluate like whether traffic is up or down in the mall and all sorts of interesting things like that. Scot: [26:17] Grateful so that's Insight generation than the second bucket you talked about was business acceleration what are some examples that you seen there. Jason: [26:24] Yeah what's up the classic one that's that's probably the highest Roi today that you see use the most by slightly more sophisticated operators is, the whole machine learning for inventory management in forecasting so you know kind of taking the the, buying a responsibility like out of the hands of the merchant Prince and and you know having them just guess how many of a garment you should make. Or how many you send to each store and instead using the data to sort of accurately tell you, what your inventory level should be in an even more accurately forecast your sales. [27:08] So there's a whole host of retail and e-commerce tools that are focused on using machine learning for inventory management and forecasting. One that I like that is not quite here yet there's some great demos and a number of retailers are testing at Target I know his testing it. Is what we call merchandising compliance. So if you think about a brick-and-mortar store a lot of the displays in that store are paid for by a brand so, Procter & Gamble might buy an end cap for tide and so the tide is supposed to not just be on the Shelf but beyond the end of the shelf and it supposed to get some special signage and Procter & Gamble probably paid a lot of money. For that in Cap Toe to Walmart or Target or whomever and so in the old days when you when you pay that money, you would then hire a bunch of college students or soccer moms, to go visit every store and take a picture of it and send these report cards back to Procter & Gamble to say whether every individual Target store, complied with that merchandising program or not because you're paying a lot of money for it and what you find is in a significant number of stores, they didn't put they didn't execute the in cap are they didn't put the signage out there used to be a stab that like half of the custom, printed signage that gets sent to the stores the merchandising the temporary point-of-purchase displays never got put out on the shelf and so all the brands had to spend a fortune sending these armies of people out up to the stores. [28:46] To measure compliance and what we're seeing now is, you can have a Roomba like some kind of robot that roams the the floors of the store with cameras and takes pictures and uses computer vision to match those those pictures against us, the planet that the planograms that the intended store layouts and you can report on, you know which stores did or didn't comply with those displays and you can take corrective action more quickly and you can save all that money of the Brand's having to spend people out to the stores to measure it. And then you can even use those pictures to tell you when, for example all of the particular SQ of tide is out of stock and not on the Shelf cuz it might be in the in the back room and not on the shelf and obviously in that out of stock situation, you're not selling any tide so so using computer vision for merchandise and compliance, you know is it's still early days but there's a ton of money and friction to be saved by doing that. And one of the expenses will talk about next Amazon go, is it a that's sort of one of the underlined capabilities of Amazon go then Amazon go extends that that. Capability by also letting you check out right so the Amazon go store that we've talked about, uses cameras to take pictures of the shells and know what products are on the Shelf but it's also using cameras to follow the Shoppers and know what Shoppers are holding which products so that it can charge them for those products when they walk out of the store. [30:22] So I would characterize Amazon go as a you know a potential future use case of artificial intelligence for retail. Scot: [30:32] Regal and then what am I favorite examples is the Stitch fix goddess they talk a lot about private label and one of the reasons they came up with private label was they would they would send all these products people. Would buy them but they would say I liked. The strap on this the design of that in the near able to synthesize all that feedback and essentially the machine morning would say you need to produce this garment. Bob for this audience of people tussle bit more about that. Jason: [31:03] Yeah I think that's that's a great use case is serve using machine learning for product selection and product design right soap, going back to the kind of old Merchant Prince model you know the Mickey drexler's of the world would decide what what you note, the design of the shirt is that was in gap or J.Crew and you know, it was as much art as it was science and you don't very often you know they would make good good selections and then sell a lot and then make a lot of money but occasionally they would design something the market didn't want and they. Have a ton of it in stock and lose a fortune so what folks like Stitch Fates are doing a saying hey let's not have Merchants what use the data to tell us what products to, to offer to our customers and eventually not just what products to buy and offered our customers but she's the data to decide what, products to design for our customers and offered them and sew and Stitch fits particular case they have like 60 attributes for every garment so, things you wouldn't think of but like how many inches is the top button from the collar of what's the ratio of the waist to the chest in the in the size 6 what you know what what kind of cuffs does it have what kind of treats does it have their defining each garment at a much more granular level of attributes, and then they're using machine learnings to say what are the combination of those attributes in a woman's blouse that sell the best to which of our customers. [32:35] And so you know originally that use that to the side, Which Wich prod third-party products to carry but more and more of their scent they're using those attributes to Define what products they should manufacture themselves and offer to their customers so it's really replacing the merchant, with with the data and then so instead of having a buyer or Merchant you you have a analyst. Scot: [32:59] Yeah and then the is a good time to kind of Jack the. The thing that gets pretty nursing your out this is when you think about business models you know one of the favorite business models the last 10 years is Network effects so the classic example is on Marketplace like an eBay where. I order more modern would be maybe an Uber where you have supply and demand and more Supply brings more to me into this flywheel effect happens. [33:22] So more drivers brings more writers writers brings more drivers or more sellers bring more buyers Etc. [33:30] I think I think when you start to think alot about this machine learning and II and you use that Stitch fix example that the reason to be able to do that is because they have all this great product data. [33:39] So [33:40] Data becomes almost the Next Generation Network effect so it's almost like this date and network effect where the more data a company can get about consumer behaviour preferences and those kinds of things they're going to have this Edge that no one else has and. [33:55] Yeah I know they're kind of called action I. Usually talk about with retailers are especially Brands is this what you need that connection with the customer because imagine your brand is not signed Direct. All that data is out of your hands right now and you're there will be a day when you will be at a severe strategic disadvantage for developing products I think. Trace how you feel about this if you don't have that direct connection to Consumers and you know also not only as the data. Important baby start flexing your muscles around these things are really understanding how to apply so he's techniques to that data. Jason: [34:28] Absolutely and in so I think you're exactly right with most of the current state-of-the-art machine learning models the big competitive Advantage is, having the data set to train the model and so the more customer interactions you have the more data you have the better model you'll be and the better you're able you be able to serve more customers into your point, you the better your flywheel will be right. An end so that's that's true for a lot of these these different cases and specifically with the manufacturer versus retailer it's. Once this data becomes key you start thinking about whoever owns that relationship with a customer has, access to a way more valuable asset so like one of the examples I always like to use as the tire industry and you think about the the tire manufacturers of the world, for the most part they have no idea what kind of vehicle in what ZIP codes, there their tires getting installed on and they don't know how the tire the the customers use those tires and have no idea for example how long those tires, last on specific vehicles in specific geographies, I'm in so they know they know very few Out reviews about their Tire once it leaves the factory but a good retail that installs those tires on the car can start collecting all these extra attributes, how many miles are on the car what kind of car is it that how frequently do they change their brake pads what ZIP code do they does the car live in and all the sorts of things and that retailer can start using those attributes of that data. [36:03] To start doing things like much more accurately predicting which Tire will work best for which customer on which vehicle in which geography, and said they're all sorts of interesting things that come into play there and so if you are that that, product manufacturer tire manufacturer whatever like one of your big strategic challenges right now is to figure out how, to start developing that relationship direct with a customer so you can be capturing that data. [36:36] In the business acceleration and I want to talk about that a little bit more and some of the customer engagement things but there are a couple other business acceleration ones that we should probably just touch on one that's getting used a lot right now is. The idea of tagging or evaluating text, so tons of brands have a lot of texts about their products that they someone typed into a super old database that they used to print the packaging that goes in the store, but the Torah conversation about attributes earlier that wasn't structured data like someone wasn't smart enough to say, we should have a field for whether all these snacks are Kosher or not and we should have the field to say whether all these next are gluten-free or not right like kosher and gluten-free might have just appeared in a, text description somewhere in so there tons of product manufacturers that have, piles of this unstructured data that isn't very useful for machine learning it isn't very useful for search and filtering and all these use cases that are super common in e-commerce and so what you know you either have to, pay a bunch of copywriters to read all your unstructured text and cut and paste it into fields, or you can start using these machine learning models to automatically tag your data and turn unstructured data into valuable attributes. And one of those common when is pictures right so you imagine that you're in a product category that's heavily uploaded to Pinterest or Instagram. [38:10] You don't know very much about those pictures which which you of yours is in that picture is it being portrayed with a man or woman, is it being for traded a beach or a ski chalet and all these different things that would be interesting to help you decide when to use that image the. Machine learning can tag all of those images and make them much more valuable in in all of your Commerce experiences. [38:37] So we're trying to see that a lot a common one that's being used right now is almost all of the latest fraud engines. Are using machine learning so this is a classic example where. You know fraud used to be a set of static rules so you would write rules if people try to shop our side in the US from Nigeria we won't let them shop and if they. Try to ship the product to a hotel we won't let them by that. And with machine learning we can be much smarter about what attributes. Trigger a secondary screen for fraud and what that does is it gives you weigh less false positives. So you're able to sell a lot more Goods to a lot more people and not offend them by by treating them like their prospective criminal when they've done nothing wrong, and said that the fraud models are both getting much better at catching fraud but equally important they're getting far fewer false positives as a result of using, this machine learning instead of a set of hard-and-fast rules one of the business accelerations that that Amazon has particularly made famous. Is the whole field of price optimization. And so you know I obviously you don't we talk a lot on the show about Amazon changing 2.5 million prices a day and they're there. Their approach is much more sophisticated than just being the lowest price on everything right like they're there a strategic low price provider and you know more and more of that, it's not possible to to just write a set of rules about what your pricing for every product out of be in so you're starting to see retailers. [40:14] Turn over the keys to their pricing models to these sophisticated machine learning systems that optimize price and optimize promotions and offers for individual customers and unity earlier Network effect point, those models are most powerful when you're you know at the high end of the volume and you have a ton of transactions and a ton of skews to apply those models against. Scot: [40:41] Yan is a reminder we had a guest Andrea who was on and relay and she was talking about how. A lot of times even a vendor's negotiating with a robot on the other side and Y episode there's not only are they optimizing the price the consumer sees but there no that's feeding into some engine that then kind of coming back to the vendor and saying you need to price the product at this. Jason: [41:00] Absolutely and so you know I think Amazon is kind of the gold standard in in Commerce for that and see you're seeing a lot of other like when you, to your point when you had to have a thousand data scientist to write your own pricing on rhythm, you know that that was a huge advantage to the people the top of the echo system like Amazon but. Today you know it is easier to buy an off-the-shelf model, that you just have to have enough data to feed so there's there's vendors out there like Boomerang which are every bit as sophisticated as Amazon's pricing engine but you know it's available too much smaller operators. You know as long as there they have enough data to put into the model and so that super interesting. At the moment the big challenge you have is how do brick-and-mortar retailers do that sort of real-time price optimization like it's pretty easy to change the price. [41:57] You know from second to second on Amazon it's much harder when there's a paper price tag next to that product. And it's on the Shelf in the store so that's that's an interesting organic when we're going to continue to see play out. Another one that I am azaan is particularly great at is this whole notion of logistics optimization. So once you're bigger than a single Warehouse you start getting you know all these issues about what's the optimum Mount of inventory have in each warehouse and where should you put all that product where is going to be most efficient to get to the most of your customers. And if you're wrong about that that whole supply chain planning you can cuss yourself a fortune moving products around or shipping products inefficiently to customers. And so using machine learning to optimize how many excused and which fuse go into each Warehouse. Is super important in you know when your Amazon and you have what do they have now Scot 112 fulfillment center something like that. Scot: [42:59] Yep thereabouts. Jason: [43:01] Yeah that that becomes a. A critical challenge an Amazon spray the only one that has the problem at that scale and they're also probably the only ones that have the solution at that scale. And then I guess the last business acceleration one that you know I don't think we're going to see immediately but gets talked about a lot is. Like obviously all the technology to get that drone to your house to deliver the goods. Is a great example of of something you can only do with artificial intelligence so if we ever see drone delivery be economical for certain customers like that you know that that will be exclusively enabled by. Buy artificial intelligence and machine learning and I would remind listeners whenever I say drone people always imagine these super expensive flying things, we are also starting to see a lot of wheelbase drones and so there's an interesting Pilots going on in in San Francisco and then, Maryland right now with with the drones that are sort of autonomous vehicles that drive on sidewalks and deliver things like pizza and stuff. [44:10] So I'm excited about renting a house in one of those markets and get a drone pizza delivery. Scot: [44:16] Call Sears a lot in the business acceleration in the country cap that sounds more like. [44:23] Cost savings um I guess there's some that impacts the customer experience but the next bucket is where you probably would customers are going to feel it the most which is what you're calling customer engagement. Jason: [44:34] Exactly and this is the stuff that that tends to be the most sexy it's the most visible to customers and, you know there a lot of things in this category that have their own buzz and then their own own spot in the hype cycle at the moment so one that we talked about a lot or natural language assistance and so that's, you know Siri Cortana Echo, Google home all of those sorts of things and you know if you if you think about them they're actually an amalgamation of multiple a Technologies right like so there's this this notion of being able to convert speech, into data and so their natural language processing and then there's the notion of being able to to. Act on those the sentences, and give proper responses and so that's the notion of virtual assistants right and so you you have a lot of these things that are like you speak to like Siri, you have a lot of virtual agents that you type to a chat box on Facebook and things like that. And you know there's an explosion between those two categories of The Voice assistance and the virtual assistants in in e-commerce at the moment. [45:53] If you tried any of the the virtual agents Jets Scot you think any of them are ready for primetime. Scot: [45:59] Now the ones I've tried pretty cheesy and there if you stay with them they're pretty unsatisfying they can't answer most your questions until they kick over to a human 20 minutes better. [46:14] I'm not believing this are quite there yet. Jason: [46:16] No and so it is funny because what what we're seeing is, customers definitely want customer service via chat and Via messenger and so it's, a mistake to say oh my gosh the chatbots are kind of not ready for Primetime and so it just hire more phone reps and do everything via phone cuz we're seeing strong indications that customers are less. Tolerant to sit on a hold line and do something asynchronous like like a talk to someone on the phone, but it's same time you're right like the virtual agents really aren't cutting it yet at the moment and so where The Sweet Spot is are our live humans at the other end of those, does chat and SMS strings and I guess the best virtual agents I've seen our kind of maybe just one layer deep and they they. [47:06] The answer some of the the highest velocity questions and they sort of act as a filter to make those those live agents more efficient by not having them have to answer the same question over and over again. Scot: [47:18] Yeah and they're smart enough to know when to get out of the way that kind of say hey did you are you looking to track a package oh I'm sorry let me write you to a human. Jason: [47:27] Exactly right and well that. Scot: [47:28] Once again a doing there like you know big kind of walk you through of of Sky knowledge-based relentlessly. Jason: [47:35] The best ones are seamless right and and unfortunately like too many of them you know keep fighting to try to keep you in the virtual realm and you know it some point you you stop asking an honest questions and you're just trying to figure out how to. How to bypass it. So another sort of adjacent thing that we're starting to see more of in customer engagement is this whole notion of Discovery and guided selling and so one of the, the ones that got the most bus here is, North Face uses the Watson implementation to have sort of a guided selling tool for jackets 800-Flowers has a guided selling experience for for gift giving, and, you know I'm a little bit you know I have similar feelings to the guy that selling tools at the moment that you you had to the virtual agents I think the idea of them is very interesting and I I certainly agree. We need to get way better at Discovery and helping people find new products but a lot of the guided selling tools I've seen at the moment just feel to linear and scripted and I'm not sure. The there there yet recommending products a heck of a lot better than then you don't sort of us structured set of rules used to last year. [48:58] So that the next one in customer engagement is one and I may have even have to go back this may have been one of my predictions so I'm going to type it again in the hopes that it helps my my annual prediction come true. One of the cool Technologies in artificial intelligence is computer vision and being able to. To process images and more more often process video to get insights out of out of that image data. And so one of the the most common use cases for that is tagging images that we talked about him business acceleration but the other way more sexy one is visual search. So that's Amazon Firefly being able to take a picture of a product. And then order it or you know even cooler use case is. Via an app like camfind being able to take a picture of the woman at the table next to you with the cool handbag and find that handbag for sale or those shoes and that's kind of the whole notion of this see it by it kind of experience. Scot: [50:02] Yeah isn't a lot of people say Pinterest is one of the better ones out there do you know what they're using under the hood for that is it is it some machine learning kind of. Jason: [50:12] Exactly and they rolled it out that, Pinterest to Lynn's they ruled that out relatively recent like so it's probably only about three months old at this point if memory serves, and that's a great example it's not products Pacific yet so it's, it helps you find similar images to the image or looking at there are some more sort of Commerce e ones I mentioned camfind is one company will talk about a couple other visual search companies at the end of the podcast that the, that the whole field of visual search I would just tell people is getting phenomenally better and so for years we talked about natural language getting. Twice as good every year and last year the natural language interfaces essentially surpassed human comprehension so the, the computers can now more accurately understand spoken words than an average human being and that's you not forgetting the fact that the computers can also understand. People in a bunch of other languages in the same sort of evolution is happening in visual search there's a an academic contest for visual search engines that the several of the universities including Stanford put on every year and the winning visual search engine, is twice as good every year as the year before and so the quality of visual search is doubling every year, so if you look at some of the best use cases right now they're already pretty impressive and you go oh man this is already useful today and if you think about the fact that they're getting twice as good every year. [51:42] You know we're very close to visual search being a super powerful tool and that's going to eliminate a lot of the friction we see in stores where people try to get you to, use NFC tags or scan QR codes or do things like that like imagine a future when you just hold your phone up to the Isle in a store, in the phone sees every product on that aisle and it visually recognizes all of them and maybe it even reads the price tag off the shelf for each one of them and it can you know instantly highlight for you, what's a good deals are in that store and what you'd be better off buying from an e-commerce site at home. Scot: [52:18] In an one thing that's interesting about this is part of the Renaissance on the visual side is it's tied to video games so you know as as people's demands for video games of higher the. The game processors that they're these high-end floating-point machines I've got more sophisticated than ends up that's a great platform for vision in. [52:42] Incognitive I think but I hear it more used for the vision stuff. So it's interesting is now is part of like AWS Amazon's leasing out you can actually lease out gpus Witcher game processing units, I end up as the cost of those is come down it's it's made this video stuff get even smarter so there's a hardware part of this that's pretty neat so this stuff is. You're not only is the machine getting smarter because the amount of data is going up but there's also Moore's law on the back end helping it as well. Jason: [53:10] Absolutely and the kind of math that all of these machine learning models use is the kind of math that that I think technically their Graphics processing units not game processing but, yeah but their primary you were right they were invented for games for sure in our friends at Nvidia like being a prime example the, that that the kind of math that those chips are good at is the kind of math the machine learning uses and so that is one of the gating factors for machine learning getting better is having access to big, server Farms of these gpus and and to your point all the big vendors of of cloud computing you know that's the new Battleground is, you know not not CPUs and cores but the gpus. And what's that that's really enable to Renaissance in machine learning that these academics can now rent. Like these these amazing supercomputers for short periods of time to run their experiments and refine their models. Another one that that's super common in this is like a classic example of. Making an existing technology better as opposed to enabling a new capability like visual searches enabling a new capability but obviously a core function of every e-commerce engine is it search function and, the, that search has gone incrementally better every year but it's a largely gotten better because we put better data into the search so we put more attributes into the surge the. [54:41] The underlying technology for deciding which product is most relevant to which user hasn't changed a heck of a lot in the last five or 10 years and machine learning is now like the first big incremental Improvement to, to search in a long time and the way to think about this is the results, of search that are most relevant to you based on all your past purchases and behavior are probably different than the search results that are most relevant to me, and so using machine learning they can say hey what's every search result I've given to every customer, and which ones are the search results had successful purchase experiences in the ends and which ones didn't, and what did the customers look like that had those successful purchase results and now you know we can personalize search much more to each use or, based on everything we know about them and make search much more effective and relevant that it's ever been before. [55:42] But that's a classic one we've always had search engines now every search vendor saying their search engine is machine learning based, and that really you know you can't just look at that label and say oh that's the new search engine to get like what you really need to do is test the search engine and make sure it's going to work, better for your audience and with your your product catalog in that that goes double for this next category, recommendation engines so you know we can take recommendation engines for granted at this point like there's so many out there and and you know for a while there's been kind of parody of these, these recommendation engines but but you know it don't lose sight of how powerful these things are, you know a few years ago we saw some data that 75% of all the views on Netflix were driven by product recommendations and this is pretty old now but back in 2013 there was a leak, that 35% of all the revenue from Amazon came from the those product recommendation tiles and I believe the, the plug recommendation tiles and Amazon emails were even higher converting than the ones on the product detail pages and so recommendations are super important and of course using machine learning, you it should be no surprise for listeners at this point you can make recommendations much more personalized and effective for each customer, then sort of static rule-based recommendation engines that are that are kind of the norm that are out there now. [57:16] So that I'm going to go a little faster cuz I know we're going to come up on time here pretty quick, Annette's category that super interesting in the apparel business returns or are crushing cost, and most of the returns are result of fitment issues so something wasn't the size you expected or didn't fit the way you wanted and Source turn to see machine learning get used, 4 to solve fitment problem so in the old world Zappos tighter going to buy two sizes of shoes that guaranteed one was coming back in that was super expensive so now what you want to do is use data about all the attributes, to accurately recommend the size and maybe even remind a customer that they bought another size before and it fit better in the order they bought this size before and had to return it, tell people get the right size the first time, and avoid buying stuff you're also seeing this get tied in with visual search where you're actually using the camera to help measure the size of the customer and then match that to fitment data tell them by the right stuff so watts of stuff, in machine learning happening around fitment and return avoidance, the whole General filled the personalization this is really hard to shop for right now cuz every vendor is hyping all kinds of new new artificial intelligence and machine learning, capabilities and it's really hard to separate the hype from the reality with all those products but it certainly is true that machine learning, generates more personalized experiences and so there's tons and tons of new vendors out there in that space you know folks they're still in loyalty programs and retention programs are those can be dramatically improved by Machine learning so we're starting to see the first generation of machine learning based loyalty programs. [59:01] And that's kind of the the main use cases that we talked about right now and in customer engagement. Scot: [59:08] Got it okay so does summarize what got three buckets Insight generation and that's kind of. [59:16] I think of that is like next Generation analytics so so analytics that not just Splats data but comes up with insights, business acceleration and that was things that that help you save money improve your forecasting pricing in even practice on, in the customer engagement which are the more forward front-office things are going to improve the user experience learn more about your customers and give him a better experience, people are interested in this soap so first of all. Maybe lay out a lil road map so so a listener is a omni-channel retailer Dave. Get out there like a lot going on in their world right now where does this fall into part ization and where are some places they can nibble and then where do you recommend they go for more information. Jason: [1:00:04] Yeah so in terms of what your focus should be like you know my high-level advised is ignore the labels don't go look for an AI product but instead look at the list that we just gave you and will put it in the show notes and say, which of those things do we feel like we're most efficient at and we're leaving the most money on the table like art, are you know we not making good decisions about who our audiences are and how we should Target our advertising or we not making good decisions about our pricing or we're paying too much for fraud, or are we in or not doing a good enough job of helping customers discover the right products and add more cards to the more more skews to their cards, and you know our returns to high-dose or two things and so focus on your biggest pain points, and then say alright you know what Solutions out there are using machine learning Technologies to best address that pain point so that would be my sort of, high-level advice and then in terms of specific vendors if you're going to build your own solution, they're they're sort of a 4 horse race for the underlying Technologies for all of these machine learning capabilities and as you sort of alluded to in your experience at spiffy they, none of these vendors require you to be data scientist anymore so they all are like pretty easy tools you probably still have to be a programmer cuz these are mostly api's that you rent, but it's really a 4 horse race it's four of the big vendors, all have these big stacks of AI capabilities that you can rent by the drink in there the really inexpensive in you. [1:01:41] Add them to your own product so if you're going to hire your own programmer to develop any of these experiences that the first one is IBM with their Watson technology and will put links to all four of these, these Platforms in the show notes one that people don't necessarily think of but is hugely competitive in the spaces Google and they they have the division called Google Cloud, platform services and they they have a bunch of api's for machine learning, they actually invented one of the underlying machine learning models called tensorflow and they've open-sourced it so they they have a lot of great tensorflow Solutions on a gcp but you'll also find other vendors now offering tensorflow because it's become so popular, Microsoft has a complete set of cognitive api's under the there as your services and then as you mentioned, Amazon has a complete set of AI capabilities that are part of AWS and. You know they're all kind of analogous like you'll find basically the same set of api's from all of them you'll find a, a computer vision Library you'll find a sentiment Library you'll find a natural language processing Library a text to speech Library you'll find all these these Legos of machine learning capabilities that you snap together yourself one that's kind of fun that I will highlight specifically for Amazon, is one of their Legos is called the destiny and it's spelled, goofy it's dsstne and that's the actual product recommendation engine from the Amazon. [1:03:14] Website that they added to AWS last year so you you can actually use, the very system that Amazon juzang and we mention this network effect, it's a huge advantage to be able to get a recommendation engine that's trained by Amazon already cuz you're benefiting from their network of fat. So that that's pretty interesting and then I would highlight that there's some more Niche vendors, there are vendors that as opposed to giving you a low-level API have sort of crafted complete machine language capabilities. Specific for Commerce vendors and so again I'll put them in the show notes but six that come up a lot there's a company called Wiggle, it has one of these machine language based search engines that we talked about in the customer experience portion, there's a company called sentient AI, that has really powerful visual search capability they also have some pretty interesting personalization recommendation engines, there's a company called clarify that that has visual search including video which is super interesting if you're someone that, produces a lot of content on YouTube, the we mentioned the robots that take pictures of the shelves so that's a company called simbi Robotics and they have the, tally robot that dumb Target is testing there's another company at a Stanford called focal systems that have the. [1:04:45] Computer vision library for doing inventory and then luminoso is one of the companies that has a specific machine language based analytics platform for Commerce and so, there's there's many many more vendors out there but those are sort of six interesting ones to look at to get you started. Scot: [1:05:03] Yes it's it seems like. And I don't mean to hang up on this but when when I was in e-commerce person just got thinking about our listeners here and I used to buy a solution know you would look at kind of feature benefit. Kind of analysis and cost and all that kind of stuff it seems like machine learning in some of these things add this like other dimension that's only important which is data so says you look at these Solutions. Yeah it's really important to understand. Is this going to operate just on my data is is my data going to be enough to really get a big get big enough bang for the buck cuz I think we're going to see his new models where you're sharing data with other people on a platform. But then you also need to be pretty cognizant about that because this is really important and watch will property you have and once it gets into these Platforms in his learned. Even when you leave and take your data the learning stay so it's really interesting kind of a way to think about things you kind of. As a user of vendor you want a lot of access to data but then you almost don't want your date at a time be. [1:06:07] In there in the system to use example let's say your. I don't know sorry blaktroniks train the system on on whatever recommendation Electronics now you switch vendors will that. Now competitor switch is there did you start using that now they've they've got a solution to spend trained on your data. Also you know it's pretty interesting that you mentioned Amazon example where it comes kind of pre learned if you will I don't know if that's the right. Verbage pre-trained maybe better in any advice on how people should think about that element of these Solutions. Jason: [1:06:43] Will know I think you have hit the nail on the head it's the wild west time Electro property and so your, you're exactly right li