Summit this weekend, but our eyes are on just two of them. The United States and china. President trump and chinese president xi face a trade war, tariffs, and the question of intellectual property. The talks may be at the conference in japan or in beijing or in washington, but their effects are felt in silicon valley. From china, whed. Hes joining us now. China is the home to vm wares locations. Sanjay is in charge of all of them. Joined by John Schwartz and richard waters. I kind of want a deep review on your most recent trip to china. In the hotel bar, and youre talking with your chinese counterparts, who work for your company, and those who dont, maybe some of your clients, what are they saying behind closed doors . Thank you for having me on the show. First off, it was important an executive showed up, they were getting a sense of who is going to show up here. Low level person or the senior executive. I went there deliberately to reassure first time employees, we care first about our employees and partners and customers that were cto stomer. It aly wlwsth u. S. Law, which affects certain partners. There is a vast number of other customers and partners we want to reassure that and how do you reassure them and what they respond . Im talking the granular level what are their concerns, what are yourconc ns and h explain what is happening in the United States, how do they explain it back to you what is going on in beijing . First off, theyre employees, they want to know theyre going to have a job. Are you going to fire them . It all starts with the employees, we have a lot of good employees there. That was important. Thats a top level concern. Ill do a call there this evening with those employees again to reassure them. Ustomers, they want to know the road map, where are you going, are you Building Product that is specific for us, are you going to continue to support us . When we have support escalations or are you going to abandon us. I think what is most interesting to me right now in this environment were in, there is this kind of o s hespening world, u. S. Story and china story. And the huawei situation, iong as this. There is outrage in china over what is happening. There is a very strong belief, not only in china, but many parts of the world that the u. S. Is acting out of selfinterest here. And it is causing you must get on the ground there and hear people must be saying to you, but what is the u. S. Doing . Why are you doing this to our country . It must be going quite deep in your organization. How do you respond to that . The chinese people, i found to be very measured in their approach. Maybe not being as honest to my face. We found them to be measured. The huawei situation doesnt apply to every customer and partner there. And from our perspective, as parts of huawei we compete with and those parts, software, we have a better solution so we can obviously showse customers where vm will overlap with huawei, virtualization provides you freedom. Thats good. But for the manyot and the most important thing is assuring them that you will support them, that the software will continue to run, and that you will be with them through tough times and good times. And thats what i sought to do with customers and partners. There will be so many different segments of the tech industry, watching this closely. I think about apple, 20 of their revenue comes from china. I think europe is more than 11 . Less than that. We dont have as much, were not as exposed. I think of the semiconductors, stocks were surging, based on some movement with micron and huawei. And it seems as if the Chinese Government is going to insist the u. S. Lift the ban as part of the trade truce. So im wondering, this offer is an opportunity but also we have to make sure were not doing anng political stand one way or the other. Were business people. Were technologists, and that way we can ensure were complying with u. S. Law, which is important. Huawei and others. At the same time serving china customers and our hope is in the longterm these trade issues will resolve and we get back to doing business. No doubt i hope they will. But we were talking about exposure. Obviously if you were to lose your access to china, theoretically, you lose your clients in china. What is the opposite, what is vm wares exposure to china . Would you be affected if that were some were not as exposed. We dont source a lot of we have chinese employees there, but we dont source were not a hybrid company that sources materials. In that sense, were less exposed. We were told we cant employ anybody in china. Which i dont think were going to get to. But from the stand point of the fact that we can hopefully do we want to continue to do business there. Thats important to the other interesting kind of question coming out of the trade talks now going on is whether access to local markets will be opened up, Companies Like yours. You think about the Cloud Computing market in chis very developed world. Massive opportunity and yet at the moment, american Cloud Companies are essentially shut out, they have to go through partners there and so on. From your point of view, youre looking presumably at potentially a huge market. How do you assess that right now. Where is the upside for you coming out of these talks . Thats a good point. One of the things that benefit vm ware, we dont fly as high as some of the other big Consumer Brands in terms of being getting the attention. Secondly, were sort of a Software Provider to any cloud. So quite frankly many of those cloud providers in china can use our software, and they are. We announced a partnership with alibaba, most successful Cloud Company tha soware and we have a partnership. China mobile. The key is when you think about many of the companies, i noticed you mentioned huawei, many of them are vm ware customers and not targeted by this. So to the extent we can serve those customers, serve those partners, there is an opportunity for us to play in the Cloud Computing growth in china in a positive way. Very early stage. Very early stage. I think there is as much an opportunity for an or other private clouds to be successful in china. If this problem continues and lingers, do you see companies maybe not yours perhaps, but others and im thinking about apple, increasingly looking into services and being less reliant on the hardware side, do you see other companies starting to slowly pivot to a different alternative that is less dependent on china . I think i cant give advice to every company, certainly the hardware economies, ones who are sourcing materials, an dha think about what theyre my advice is, listen, first, make sure you diversify geographical base of your revenue so youre coming from multiple countries and growing your china is the second largest country in many, not for us, for many companies. In software, you have more ex exposure to other companies because the Software Economy in china is still growing. The hardware economy is more mature than in terms of its penetration level. The software is still early. Many of us software companies, sales force and adobe and these are all very Successful Software companies in that 10 billion to 20 billion range, were seeing a lot of opportunity and china is not yet a number two country. We have a lot of growth in other regions and well play the china situation out a little more over a multiyear period. A little bit of time left. Ill hog the last two questions. You have offices in beijing, offices in hong kong. Hong kong is in a special administrative reiome out of ho. Do you notice differences in the employees between the two and how they approach business . There are certainly, you know, little bit more of a western influence among Hong Kongbased folks. They have to speak the language. But i think in the millennial generation, scott, things are really starting to the world is flat. In terms of i think that the Chinese Students that i talked to in their 20s, you cant tell if theyre growing up in the american university, hong kong, they think very much like the Tech Companies of today. So those barriers and differences starting to change. In the older generation, the folks in their 40s, 50s, and 60s, there say difference between folks in hong kong and beijing and shanghai. Speaking of the world, i know youre a huge cricket fan. How can you not be yes. Without going into detail, if i tune in cricket and watch india, what am i watching what is the exciting thing that i should be watching for in crib cricket. Sell me on cricket. It is the one sport, because of india and pakistan, many of the countries, a lot of people, that has the most viewers. India and pakistan, like a billion people watching it. It is phenomenal. So heres the deal. It is a game, it is like baseball, rather than four bases, you got two stumps. This game is a little longer than baseball. All day or half day or five days. I once watched a one day match, there was no winner. No winner. Go watch the game. Can i just say, it is a very american thing to want a winner. It is essentially baseball with better manners. Watch the games this weekend. India and australia, the two best teams in the world cup cricket tournament going on in the next few weeks, best time to learn, watch the games, youll probably learn a little bit. Ke stan. There are 50 ways to think like amazon. Welcome back to press here. About half the stuff you see on amazon is sold through what the Company Calls marketplace. Those are third party vendors, mom and pop shops or even Major Department stores. So about 50 of the goods moving through Amazon Fulfillment Centers belongs to somebody else, but amazon gets a cut. The comthank johns an amazon executive, he launched and scaled marketplace, then went on to convince big brands like target to sell onin amazon 50 1 2 ways to become a digital lea thank you for joining us. Thank you for having me. What would jeff do . I realize you wrote a whole book about it, what are some of the top key things we need to know about what jeff bezos does and will do . That question for me is really a proxy for all the questions i get asked by executives and teams that are figuring out how tot digital er. How do i compete against amazon . How do i make the Customer Experience better . How do i make supply chain a Strategic Asset . Those are really all the things that jeff does on a very consistent basis. Now you started this marketplace, this opened up amazon to a tremendous number of third parties. I think the average person at home doesnt realize how often theyre buying something on ambut not necessarily from amazon. Thats right. Yeah, so the marketplace business is Third Party Sellers selling at amazon. Com. And really the goal of the whole business was to provide as trusted a Customer Experience when buying from a third party as you were w retailer. John, i realize youre not at amazon anymore. But you talk about amazon a great deal in your book. One of the criticisms of marketplace has been this idea that amazon is able to see what Third Party Sellers are selling and then jump into that marketplace because amazon has the data, and the minute they see that a small bike shop in dayton, ohio, is selling an interesting bicycle pedal or Something Like that, amazon is able to jump into that business because they see the data. I dont think it is so much a scene like what a seller is seeing, but seeing what the customer is looking for and what the trends are are. So it is very true that amazon launched a large numbly wf th serve the customer and provide great selection and great different options for them. Do you think amazon could ever get too big . Is it too big now . Amazon is a big company, but it is a cong fora amazon and the retailer, the marketplace business, amazon web services, logistic businesses, devices businesses. Today it is a conglomerate business. I think like any business, size brings complexity and size brings the need for oversight and so i do think that scrutiny on all of these Large Companies is needed. Should we think of amazon as an operating system . Well, i think certain parts of it, thats a really interesting question, certain parts of it i think doveome of the essences of an operating system. I think some of their supply chain capabilities where theyre providing tools to other sellers, to help manage their psystem. Hain start becoming like echo the alexa certainly is has the potential of being a voice operating system. So i think there are some parts of amazon that has some of ths oversight or what not is when it is the full stack. It is the i Say Something to echo, it goes, delivered, a third party is part of amazons, you know, infrastructure, its environment really, theyre in control of all of that. In control, but it also provides, you know, an incredible ease to the customers, which we all love. I think were going to have to think carefully about the tradeoffs of, you know, what type of ease of use and integration we want versus, you know, the challenges and the pizza teams. This is something that amazon talked about before, but explain happen. And, john, you talk about two the t owns a capability or a service. So it could be Something Like the Image Service or the payment services, amazon. And they own it for a long period of time. And that obsession on a product making it world class, innovating it, delivering every single day, breeds a different type of result than a project team that launches something and leaves. So really that product ownership and cross functional nature of a small team, thats what helps keep the entrepreneurial capability of a big company going. John rossman is an author of a new book about amazon and how you can replicate some of that companys success. Thank you for being with us this morning. Thank you, scott. And press here will be back in just a moment. Welcome back to press here. We were just talking about amazon and as you watch the video from inside those amazon fulfillment cenrobots. There are so myvisible human and one dog. Dont get the human is there to feed the dog, the dogt human from interi the robots. Uncertain. More and more tasks, blue collar and highly skilled will be ct o. There is a danger of overhyping. We in the media, guilty of overhyping 3d printing, important but so far not the breakthrough that we thought. And robots, not going to replace every job. This is no robocop. That is for sure. Ceo of exponential works and a board member of the exfi. Thank you for being with us this morning. You did a ted talk about the same time we were hyping up 3d printing. We were comparing it to star trek and get a cup of teaof the wall sort of 2014 . I feel good about what if t timelines and actually underestimating some of the progress, for elenting metals o devices. And the reality is all this Technology Well talk about in a minute, getting to the deceptive state and in the same way that we couldnt predict the production of mobile devices, once it got going, once it came out of its deceptive state, we missed the predictions every year. Same thing is happening with 3d printing, same with robotics. The problem is these are overnight successes that have been decades in the making. Ill come to your defense. Carbon just got about 260 million of funding. 4 billion in valuation. And the amount of money that is being put into 3d 700 milli take time. So well grant that. Im personally sti bieve the were hitting that inflexion point. Follow the money. Still aitiein the sense you have a incompany, that are struggling d you have the carbons and the people predict what is going to happen in the future and you say theyre off by several years or i think about mark who talked about bitcoin, five years too early before that hits. It does happen. I think 50 years early for bitcoin. I generally agree with this. The one thing i wonder is you get to a certain point, you say, well, which part of this technology arent working . So carbon is polymers and they worked that out. Metals, metals is metals are realt. And it is working. You can see the analog to carbon 3d in metal is they raise nearly half a billion dollars. Thats what a 3d printer is used for. You see in in aerospace, automotive. They have already taken off the table all the level one with material substitutions. What are they going to do next . They have to use general designs and added manufacturing to take more mass out of product. And so you can look, in all these technologies, and how long have we had ai . Nearly five decades. Why is this ubiquitous. You have the infinite Computing Power in the cloud and creativity and lots of data and algorithms have been there forever are monetizable and disruptive. So if we established it, we may printing. Lets talk about my second point, the future of jobs, ai and robotics and what we peoples jobs. I know stanford is studying and some people worry tremendously about it. What is your take on it and are we in danger of overhyping the robot . Im worried about it. And im excited about it at the same time. Im worried about it because i think that we are tripping all over ourselves to every power of repetitive tasking that we can think of. Look at ai does extremely well. So it is not just limited to mechanicization. Think about the tax preparers, think about people in c going to get disruptive. The challenge we have is the timing. Im worried that the disruption will on the other arwe going to have in our lifetime the situation where we collaborate with robotics all over the place . Yes. But the moment that Long Distance freight gets disrupted, and you dont have drivers or it is the end of car ownership as we know it let me go ahead and squeeze that one in. Microsoft and manufacturing and what we see is humans and machines working together, to automate this, automate that. The real opportunity is to automate an entire process or sell robotics, that cant make enough of this systems because theyre inexpensive, they show up to work every day, and theyre reliable. And you can give them more and more tasks because theyre selftaught. So i am worried about the timing of the disruption versus the creation of abundance and what happens to jobs in the interim. I think here in silicon valley, we think how can we be part of that solution . My commercial system is run by jukebox robots. It is on a timer. It is counting down. So avi, thank you for being with us this morning. Thank you. Press here will be back. A reminder, we launched a new podcast called sand hill road. Among our guests this season, the chairman of microsoft, the investor behind the success of zoom video, one of the hottest ipos of the year and serial entrepreneur whose kids didnt know he was a billionaire. Find sand hill road anywhere you find podcasts. Thats my show for this week. My thanks to my guests and thank Damian Trujillo hello, and welcome to comunidad del valle. Im Damian Trujillo, and today a fight of tribal proportions. That fight is here today on your comunidad del valle. Damian and we do begin with that tribal fight here on comunidad del valle. With me on the show today is valentin, val lopez, he is the chair of the amah mutsun tribal band here in this entire region. Welcome to the show. Before we talk about the issue, i want to show a story that we did here on nbc bay area so we can kind of get the background on why were here, so heres that report. Valentin lopez its eliminating our history. Female announcer as Valentin Lopez surveys sarg in gilroy, he recalls the rich history here for the amah mutsun tribal band. The region is called juristac, once home to an indian village