>>The Cube presents Ignite 22, brought to you by Palo Alto Networks. >>Hey guys, welcome back to the Cube, the leader in live enterprise and emerging tech coverage. We are live in Las Vegas at MGM Grand Hotel, Lisa Martin with Dave Valante, covering our first time covering Palo Alto Ignite. 22 in person. Dave, we've had some great conversations so far. We've got two days of wall to wall coverage. We're gonna be talking with Palo Alto execs, leaders, customers, partners, and we're gonna be talking about the partner ecosystem >>Next. Wow. Super important. You know, it's funny you talk about for a minute, you didn't know where we were. I, I came to Vegas in May. I feel like I never left two weeks ago reinvent, which was I, I thought the most awesome reinvent ever. And it was really all about the ecosystem and the marketplace. So super excited to have that >>Conversation. Yeah, we've got Wet Whit Krump joining us, director of America's business development worldwide channels and customer programs at AWS marketplace. Wet, welcome to the Cube. Great to have >>You. Thanks for having me. Give >>Us a, you got a big title there. Give us a little bit of flavor of your scope of work at aws. >>Yeah, sure. So I, I've been with the marketplace team now almost eight years and originally founded our channel programs. And my scope has expanded to not just cover channels, but all things related to customers. So if you think about marketplace having sort of two sides, one being very focused on the isv, I tend to manage all things related to our in customer and our, our channel partners. >>What are some of the feedback that you're getting from customers and channel partners as the marketplace has has evolved so much? >>Yeah. You know, it's, it's, it's been interesting to watch over the course of the years, getting to see it start its infancy and grow up. One of the things that we hear often from customers and from our channel partners, and maybe not so directly, is it's not about finding the things they necessarily want to buy, although that's important, but it's the actual act of how they're able to purchase things and making that a much more streamlined process, especially in large enterprises where there's a lot of complexity. We wanna make that a lot simple, simpler for our customers. >>I mean, vendor management is such a hassle, right? But, so when I come into the marketplace, it's all there. I gotta console, it's integrated, I choose what I want. The billing is simplified. How has that capability evolved since the time that you've been at aws and where do you, where do you want to take it? >>Yeah, so when we, we first started Marketplace, it was really a pay as you go model customer come, they buy whatever, you know, whatever the, the whatever the solution was. And then it was, you know, charged by the hour and then the year. And one of the things that we discovered through customer and partner feedback was especially when they're dealing with large enterprise purchases, you know, they want to be able to instantiate those custom price and terms, you know, into that contract while enjoying the benefits of, of marketplace. And that's been, I think the biggest evolution started in 2017 with private offers, 2018 with consulting partner private offers. And then we've added things on over time to streamline procurement for, for >>Customers. So one of the hottest topics right now, everybody wants to talk about the macro and the headwinds and everything else, but when you talk to customers like, look, I gotta do more with less, less, that's the big theme. Yeah. And, and I wanna optimize my spend. Cloud allows me to do that because I can dial down, I can push storage to, to lower tiers. There's a lot of different things that I can do. Yeah. What are the techniques that people are using in the ecosystem Yeah. To bring in the partner cost optimization. Yeah. >>And so one of the key things that, that partners are, are, are doing for customers, they act as that trusted advisor. And, you know, when using marketplace either directly or through a partner, you know, customers are able to really save money through a licensing flexibility. They're also able to streamline their procurement. And then if there's an at-risk spin situation, they're able to, to manage that at-risk spend by combining marketplace and AWS spin into into one, you know, basically draws down their commitments to, to the company. >>And we talk about ask at-risk spend, you might talk about user or lose IT type of spend, right? Yeah. And so you, you increase the optionality in terms of where you can get value from your cloud spend. That's >>All right. Customers are thinking about their, their IT spend more strategically now more than ever. And so they're not just thinking about how do I buy infrastructure here and then software here, data services, they wanna combine this into one place. It's a lot less to keep up with a lot, a lot less overhead for them. But also just the simplification that you alluded to earlier around, you know, all the billing and vendor management is, and now in one, one streamlined, one streamlined process. Talk >>About that as a facilitator of organizations being able to reduce their risk profile. >>Yeah, so, you know, one of the things that, that came out earlier this year with Forrester was a to were total economic impact studies for both an ISV and for the end customer. But there was also a thought leadership study done where they surveyed over 700 customers worldwide to sort of get their thoughts on procurement and risk profile management. And, and one of the things that was really, you know, really surprising was is was that, you know, I guess it was like over 78% of of respondents DEF stated that they didn't feel like their, their companies had a really well-defined governance model and that over half of software and data purchases actually went outside of procurement. And so the companies aren't really able to, don't, they don't really have eyes on all of this spin and it's substantial >>And that's a, a huge risk for the organization. >>Yeah. Huge risk for the organization. And, and you know, half of the respondents stated outright that like they viewed marketplaces a way for them to reduce their risk profile because they, they were able to have a better governance model around that. >>So what's the business case can take us through that. How, how should a customer think about that? So, okay, I get that the procurement department likes it and the CFO probably likes it, but how, what, what's the dynamic around the business? So if I'm a, let's say I'm, I'm a bus, I'm a business person, I'm a, and running the process, I got my little, I get my procurement reach around. Yeah. What does the data suggest that what's in it from me, right? From a company wide standpoint, you know, what are the, maybe the Forester guys address this. So yeah, that overall business case I think is important. >>Yeah, I think, I think one of the big headlines for the end customer is because of license flexibility is that is is about a 10% cost savings in, in license cost. They're able to right size their purchases to buy the things they actually need. They're not gonna have these big overarching ELAs. There's gonna be a lot of other things in there that, that they don't, they don't really aren't gonna really directly use. You're talking about shelfware, you know, that sort of the classic term buy something, it never gets used, you know, also from just a, a getting things done perspective, big piece of feedback from customers is the contracting process takes a long time. It takes several months, especially for a large purchase. And a lot of those discussions are very repetitive. You know, you're talking about the same things over and over again. And we actually built a feature called standardized contract where we talked to a number of customers and ISVs distilled a contract down into a, a largely a set of terms that both sides already agreed to. And it cuts that, that contract time down by 90%. So if you're a legal team in a company, there's only so many of you and you have a lot of things to get done. If you can shave 90% off your time, that that's, that's now you can now work on a lot of other things for the, the corporation. Right. >>A lot of business impact there. You think faster time to value, faster time to market workforce optimization. >>Yeah. Yeah. I mean, it, it, you know, from an ISV standpoint, the measurement is they're, they're able to close deals about 40% faster, which is great for the isv. I mean obviously they love that. But if you're a customer, you're actually getting the innovative technologies you need 40% faster. So you can actually do the work you want to take it to your customers and drive the business. >>You guys recently launched, what is it, vendor Insights? Yeah. Talk a little bit about that, the value. What are some of the things that you're seeing with that? >>Yeah, so that goes into the, the onboarding value add of marketplaces. The number of things that go into, to cutting that time according to Forrester by 75%. But Vendor Insights was based on a key piece, offa impact from customers. So, you know, marketplace is used for, one of the reasons is discoverability by customers, Hey, what is the broader landscape? Look for example of security or storage partners, you know, trying to, trying to understand what is even available. And then the double click is, alright, well how does that company, or how does that vendor fit into my risk profile? You know, understanding what their compliance metrics are, things of that nature. And so historically they would have to, a customer would've to go to an ISV and say, all right, I want you to fill out this form, you know that my questionnaire. And so they would trade this back and forth as they have questions. Now with vendor insights, a customer can actually subscribe to this and they're able to actually see the risk profile of that vendor from the inside out, you know, from the inside of their SaaS application, what does it look like on a real time basis? And they can go back and look at that whenever they want. And you know, the, the, the feedback since the launch has been fantastic. And that, and I think that helps us double down on the already the, the onboarding benefits that we are providing customers. >>This, this, I wanna come back to this idea of cost optimization and, and try to tie it into predictability. You know, a lot of people, you know, complain, oh, I got surprised at the end of the month. So if I understand it wit by, by leveraging the marketplace and the breadth that you have in the marketplace, I can say, okay, look, I'm gonna spend X amount on tech. Yeah. And, and this approach allows me to say, all right, because right now procurement or historically procurement's been a bunch of stove pipes, I can't take from here and easily put it over there. Right. You're saying that this not only addresses the sort of cost optimization, does it also address the predictability challenge? >>Yeah, and I, I think another way to describe that is, is around cost controls. And you know, just from a reporting perspective, you know, we, we have what are called cost utilization reports or curve files. And we provide those to customers anytime they want and they can load those into Tableau, use whatever analysis tools that they want to be able to use. And so, and then you can actually tag usage in those reports. And what we're really talking about is helping customers adopt thin op practices. So, you know, develop directly for the cloud customers are able to understand, okay, who's using what, when and where. So everyone's informed that creates a really collaborative environment. It also holds people accountable for their spin. So that, you know, again, talking about shelfware, we bought things we're not gonna use or we're overusing people are using software that they probably don't really need to. And so that's, that adds to that predictable is everyone has great visibility into what's happening. And there's >>Another, I mean, of course saving money is, is, is in vogue right now because you know, the headwinds and the economics, et cetera. But there's also another side of the equation, which is, I mean, I see this a lot. You know, the CFO says financial people, why is our cloud bill so high? Well it's because we're actually driving all this revenue. And so, you know, you've seen it so many so often in companies, you know, the, the spreadsheet analysis says, oh, cut that. Well, what happens to revenue if you cut that? Right? Yeah. So with that visibility, the answer may be, well actually if we double down on that, yeah, we're actually gonna make more money cuz we actually have a margin on this and it's, it's got operating leverage. So if we double that, you know, we could, so that kind of cross organization communication to make better decisions, I think is another key factor. Yeah. >>Huge impact there. Talk ultimately about how the buyer's journey seems to have been really transformed >>The >>Correct. Right? So if you're, if you're a buyer, you know, initially to your point is, you know, I'm just looking for a point solution, right? And then you move on to the next one and the next one. And now, you know, working with our teams and using the platform, you know, and frankly customers are thinking more strategically about their IT spend holistically. The conversations that we're having with us is, it's not about how do I find the solution today, but here's my forward looking software spend, or I'm going through a migration, I wanna rationalize the software portfolio I have today as I'm gonna lift and shift it to aws. You know, what is going to make the trip? What are we gonna discard entirely because it's not really optimized for the cloud. Or there's that shelf wheel component, which is, hey, you know, maybe 15 to 25% of my portfolio, it's just not even getting utilized. And that, and that's a sunk cost to your point, which is, you know, that's, that's money I could be using on something that really impacts the bottom line in various areas of the business. Right. >>What would you say is the number one request you get or feedback you get from the end customers? And how is that different from what you hear from the channel partners? How aligned or Yeah. Are those >>Vectors? I would say from a customer perspective, one of the key things I hear about is around visibility of spin, right? And I was just talking about these reports and you know, using cost optimization tools, being able to use features like identity and access management, managing entitlements, private marketplaces. Basically them being able to have a stronger governance model in the cloud. For one thing, it's, it's, you know, keeping everybody on track like some of the points I was talking about earlier, but also cost, cost optimization around, you know, limiting vendor sprawl. Are we actually really using all the things that we need? And then from a channel partner perspective, you know, some of the things I talked about earlier about that 40% faster sales cycle, you know, that that TEI or the total economic impact study that was done by Forrester was, was built for the isv. >>But if you're a channel partner sitting between the customer and the isv, you kind of get to, you get a little bit of the best of both worlds, right? You're acting as that, you're acting as that that advisor. And so if you're a channel partner, the procurement streamlining is a huge benefit because the, you know, like you said, saving money is in vogue right now. You're trying to do more with less. So if you're thinking about 20, 27% faster win rates, 40% faster time to close, and you're the customer who's trying to impact the bottom line by, by innovating more, more quickly, those two pieces of feedback are really coming together and meeting in, in the middle >>Throughout 2021, or sorry, 2022, our survey partner, etr Enterprise Technology Research has asked their panel a question is what's your strategy for, you know, doing more with less? By far the number one response has been consolidating redundant vendors. Yes. And then optimizing cloud was, you know, second, but, but way, way lower than that. The number from last survey went from 34%. It's now up to 44% in the January survey, which is in the field, which they gave me a glimpse to last night. So you're seeing dramatic uptick Yeah. In that point. Yeah. And then you guys are helping, >>We, we definitely are. I mean, it, there's the reporting piece so they have a better visibility of what they're doing. And then you think about a, a feature like private marketplace and manage entitlements. So private marketplace enables a customer to create their own private marketplace as the name states where they can limit access to it for certain types of software to the actual in customer who needs to use that software. And so, you know, not everybody needs a license to software X, right? And so that helps with the sprawl comment to your point, that's, that's on the increase, right? Am I actually spending money on things that we need to use? >>But also on the consolidation front, you, we, we talked with nikesh an hour or so ago, he was mentioning on stage, if you, if you just think of this number of security tools or cybersecurity tools that an organization has on its network, 30 to 50. And we were talking about, well, how does Palo Alto Networks what's realistic in terms of consolidation? But it sounds like what you're doing in the marketplace is giving organizations the visibility, correct, for sure. Into what they're running, usage spend, et cetera, to help facilitate ultimately at some point facilitate a strategic consolidation. >>It's, that's exactly right. And if you, you think about cost optimization, our procurement features, you know, the, the practice that we're trying to help customers around, around finops, it's all about helping customers build a, a modern procurement practice and supply chain. And so that helps with, with that point exactly. The keynotes >>Point. Exactly. So last question for you. What, what's next? What can we expect? >>Oh, so what's next for me is, you know, I, I really want to, you know, my channel business for example, you know, I want to think about enabling new types of partners. So if we've worked really heavily with resellers, we worked very heavily with Palo Alto on the reseller community, how are we bringing in more services partners of various types? You know, the gsi, the distributors, cloud service providers, managed security service providers was in a keynote yesterday listening to Palo Alto talk about their five routes to market. And, you know, they had these bubbles. And so I was like, gosh, that's exactly how I'm thinking about the business is how am I expanding my own footprint to customers that have deeper, I mean, excuse me, to partners that have deeper levels of cloud knowledge, can be more of that advisor, help customers really understand how to maximize their business on aws. And, and you know, my job is to really help facilitate that, that innovative technology through those partners. >>So sounds like powerful force, that ecosystem. Exactly. Great alignment. AWS and Palo Alto, thank you so much for joining us with, we >>Appreciate, thanks for having >>With what's going on at aws, the partner network, the mp, and all that good stuff. That's really the value in it for customers, ISVs and channel partners. I like. We appreciate your insights. >>Thank you. Thanks for having me. Thank you. >>Our guests and Dave Valante. I'm Lisa Martin. You're watching the Cube Lee Leer in live enterprise and emerging tech coverage.

(upbeat music) >> Welcome back everyone to The Cubes coverage here in Seattle, Washington. For AWS's Marketplace Seller Conference. It's the big news within the Amazon partner network, combining with marketplace, forming the Amazon partner organization. Part of a big reorg as they grow to the next level, NextGen cloud, mid-game on the chessboard. Cube's got it covered. I'm John Furry, your host at Cube. Great guests here from Data bricks. Both cube alumni's. Jack Anderson, GM and VP of the Databricks partnership team for AWS. You handle that relationship and Joel Minick vice president of product and partner marketing. You guys have the keys to the kingdom with Databricks and AWS. Thanks for joining. Good to see you again. >> Thanks for having us back. >> Yeah, John, great to be here. >> So I feel like we're at Reinvent 2013. Small event, no stage, but there's a real shift happening with procurement. Obviously it's a no brainer on the micro, you know, people should be buying online. Self-service, Cloud Scale. But Amazon's got billions being sold through their marketplace. They've reorganized their partner network. You can see kind of what's going on. They've kind of figured it out. Like let's put everything together and simplify and make it less of a website, marketplace. Merge our partner organizations, have more synergy and frictionless experiences so everyone can make more money and customer's are going to be happier. >> Yeah, that's right. >> I mean, you're running relationship. You're in the middle of it. >> Well, Amazon's mental model here is that they want the world's best ISVs to operate on AWS so that we can collaborate and co architect on behalf of customers. And that's exactly what the APO and marketplace allow us to do, is to work with Amazon on these really, you know, unique use cases. >> You know, I interviewed Ali many times over the years. I remember many years ago, maybe six, seven years ago, we were talking. He's like, "we're all in on AWS." Obviously now the success of Databricks, you've got multiple clouds, see that. Customers have choice. But I remember the strategy early on. It was like, we're going to be deep. So this is, speaks volumes to the relationship you have. Years. Jack, take us through the relationship that Databricks has with AWS from a partner perspective. Joel, and from a product perspective. Because it's not like you guys are Johnny come lately, new to the scene. >> Right. >> You've been there, almost president creation of this wave. What's the relationship and how does it relate to what's going on today? >> So most people may not know that Databricks was born on AWS. We actually did our first $100 million of revenue on Amazon. And today we're obviously available on multiple clouds. But we're very fond of our Amazon relationship. And when you look at what the APN allows us to do, you know, we're able to expand our reach and co-sell with Amazon, and marketplace broadens our reach. And so, we think of marketplace in three different aspects. We've got the marketplace private offer business, which we've been doing for a number of years. Matter of fact, we were driving well over a hundred percent year over year growth in private offers. And we have a nine figure business. So it's a very significant business. And when a customer uses a private offer, that private offer counts against their private pricing agreement with AWS. So they get pricing power against their private pricing. So it's really important it goes on their Amazon bill. In may we launched our pay as you go, on demand offering. And in five short months, we have well over a thousand subscribers. And what this does, is it really reduces the barriers to entry. It's low friction. So anybody in an enterprise or startup or public sector company can start to use Databricks on AWS, in a consumption based model, and have it go against their monthly bill. And so we see customers, you know, doing rapid experimentation, pilots, POCs. They're really learning the value of that first, use case. And then we see rapid use case expansion. And the third aspect is the consulting partner, private offer, CPPO. Super important in how we involve our partner ecosystem of our consulting partners and our resellers that are able to work with Databricks on behalf of customers. >> So you got the big contracts with the private offer. You got the product market fit, kind of people iterating with data, coming in with the buyers you get. And obviously the integration piece all fitting in there. >> Exactly. >> Okay, so those are the offers, that's current, what's in marketplace today. Is that the products... What are people buying? >> Yeah. >> I mean, I guess what's the... Joel, what are people buying in the marketplace? And what does it mean for them? >> So fundamentally what they're buying is the ability to take silos out of their organization. And that is the problem that Databricks is out there to solve. Which is, when you look across your data landscape today, you've got unstructured data, you've got structured data, you've got real time streaming data. And your teams are trying to use all of this data to solve really complicated problems. And as Databricks, as the Lakehouse Company, what we're helping customers do is, how do they get into the new world? How do they move to a place where they can use all of that data across all of their teams? And so we allow them to begin to find, through the marketplace, those rapid adoption use cases where they can get rid of these data warehousing, data lake silos they've had in the past. Get their unstructured and structured data onto one data platform, an open data platform, that is no longer adherent to any proprietary formats and standards and something they can, very much, very easily, integrate into the rest of their data environment. Apply one common data governance layer on top of that. So that from the time they ingest that data, to the time they use that data, to the time they share that data, inside and outside of their organization, they know exactly how it's flowing. They know where it came from. They know who's using it. They know who has access to it. They know how it's changing. And then with that common data platform, with that common governance solution, they'd being able to bring all of those use cases together. Across their real time streaming, their data engineering, their BI, their AI. All of their teams working on one set of data. And that lets them move really, really fast. And it also lets them solve challenges they just couldn't solve before. A good example of this, you know, one of the world's now largest data streaming platforms runs on Databricks with AWS. And if you think about what does it take to set that up? Well, they've got all this customer data that was historically inside of data warehouses. That they have to understand who their customers are. They have all this unstructured data, they've built their data science model, so they can do the right kinds of recommendation engines and forecasting around. And then they've got all this streaming data going back and forth between click stream data, from what the customers are doing with their platform and the recommendations they want to push back out. And if those teams were all working in individual silos, building these kinds of platforms would be extraordinarily slow and complex. But by building it on Databricks, they were able to release it in record time and have grown at a record pace to now be the number one platform. >> And this product, it's impacting product development. >> Absolutely. >> I mean, this is like the difference between lagging months of product development, to like days. >> Yes. >> Pretty much what you're getting at. >> Yes. >> So total agility. >> Mm-hmm. >> I got that. Okay, now, I'm a customer I want to buy in the marketplace, but you got direct Salesforce up there. So how do you guys look at this? Is there channel conflict? Are there comp programs? Because one of the things I heard today in on the stage from AWS's leadership, Chris, was up there speaking, and Mona was, "Hey, he's a CRO conference chief revenue officer" conversation. Which means someone's getting compensated. So, if I'm the sales rep at Databricks, what's my motion to the customer? Do I get paid? Does Amazon sell it? Take us through that. Is there channel conflict? Or, how do you handle it? >> Well, I'd add what Joel just talked about with, you know, with the solution, the value of the solution our entire offering is available on AWS marketplace. So it's not a subset, it's the entire Data Bricks offering. And- >> The flagship, all the, the top stuff. >> Everything, the flagship, the complete offering. So it's not segmented. It's not a sub segment. >> Okay. >> It's, you know, you can use all of our different offerings. Now when it comes to seller compensation, we view this two different ways, right? One is that AWS is also incented, right? Versus selling a native service to recommend Databricks for the right situation. Same thing with Databricks, our sales force wants to do the right thing for the customer. If the customer wants to use marketplace as their procurement vehicle. And that really helps customers because if you get Databricks and five other ISVs together, and let's say each ISV is spending, you're spending a million dollars. You have $5 million of spend. You put that spend through the flywheel with AWS marketplace, and then you can use that in your negotiations with AWS to get better pricing overall. So that's how we view it. >> So customers are driving. This sounds like. >> Correct. For sure. >> So they're looking at this as saying, Hey, I'm going to just get purchasing power with all my relationships. Because it's a solution architectural market, right? >> Yeah. It makes sense. Because if most customers will have a primary and secondary cloud provider. If they can consolidate, you know, multiple ISV spend through that same primary provider, you get pricing power. >> Okay, Joel, we're going to date ourselves. At least I will. So back in the old days, (group laughter) It used to be, do a Barney deal with someone, Hey, let's go to market together. You got to get paper, you do a biz dev deal. And then you got to say, okay, now let's coordinate our sales teams, a lot of moving parts. So what you're getting at here is that the alternative for Databricks, or any company is, to go find those partners and do deals, versus now Amazon is the center point for the customer. So you can still do those joint deals, but this seems to be flipping the script a little bit. >> Well, it is, but we still have vars and consulting partners that are doing implementation work. Very valuable work, advisory work, that can actually work with marketplace through the CPPO offering. So the marketplace allows multiple ways to procure your solution. >> So it doesn't change your business structure. It just makes it more efficient. >> That's correct. >> That's a great way to say it. >> Yeah, that's great. >> Okay. So, that's it. So that's just makes it more efficient. So you guys are actually incented to point customers to the marketplace. >> Yes. >> Absolutely. >> Economically. >> Economically, it's the right thing to do for the customer. It's the right thing to do for our relationship with Amazon. Especially when it comes back to co-selling, right? Because Amazon now is leaning in with ISVs and making recommendations for, you know, an ISV solution. And our teams are working backwards from those use cases, you know, to collaborate and land them. >> Yeah. I want to get that out there. Go ahead, Joel. >> So one of the other things I might add to that too, you know, and why this is advantageous for companies like Databricks to work through the marketplace. Is it makes it so much easier for customers to deploy a solution. It's very, literally, one click through the marketplace to get Databricks stood up inside of your environment. And so if you're looking at how do I help customers most rapidly adopt these solutions in the AWS cloud, the marketplace is a fantastic accelerator to that. >> You know, it's interesting. I want to bring this up and get your reaction to it because to me, I think this is the future of procurement. So from a procurement standpoint, I mean, again, dating myself, EDI back in the old days, you know, all that craziness. Now this is all the internet, basically through the console. I get the infrastructure side, you know, spin up and provision some servers, all been good. You guys have played well there in the marketplace. But now as we get into more of what I call the business apps, and they brought this up on stage. A little nuanced. Most enterprises aren't yet there of integrating tech, on the business apps, into the stack. This is where I think you guys are a use case of success where you guys have been successful with data integration. It's an integrators dilemma, not an innovator's dilemma. So like, I want to integrate. So now I have integration points with Databricks, but I want to put an app in there. I want to provision an application, but it has to be built. It's not, you don't buy it. You build, you got to build stuff. And this is the nuance. What's your reaction to that? Am I getting this right? Or am I off because, no one's going to be buying software like they used to. They buy software to integrate it. >> Yeah, no- >> Because everything's integrated. >> I think AWS has done a great job at creating a partner ecosystem, right? To give customers the right tools for the right jobs. And those might be with third parties. Databricks is doing the same thing with our partner connect program, right? We've got customer partners like Five Tran and DBT that, you know, augment and enhance our platform. And so you're looking at multi ISV architectures and all of that can be procured through the AWS marketplace. >> Yeah. It's almost like, you know, bundling and un bundling. I was talking about this with, with Dave Alante about Supercloud. Which is why wouldn't a customer want the best solution in their architecture? Period. In its class. If someone's got API security or an API gateway. Well, you know, I don't want to be forced to buy something because it's part of a suite. And that's where you see things get sub optimized. Where someone dominates a category and they have, oh, you got to buy my version of this. >> Joel and I were talking, we were actually saying, what's really important about Databricks, is that customers control the data, right? You want to comment on that? >> Yeah. I was going to say, you know, what you're pushing on there, we think is extraordinarily, you know, the way the market is going to go. Is that customers want a lot of control over how they build their data stack. And everyone's unique in what tools are the right ones for them. And so one of the, you know, philosophically, I think, really strong places, Databricks and AWS have lined up, is we both take an approach that you should be able to have maximum flexibility on the platform. And as we think about the Lakehouse, one thing we've always been extremely committed to, as a company, is building the data platform on an open foundation. And we do that primarily through Delta Lake and making sure that, to Jack's point, with Databricks, the data is always in your control. And then it's always stored in a completely open format. And that is one of the things that's allowed Databricks to have the breadth of integrations that it has with all the other data tools out there. Because you're not tied into any proprietary format, but instead are able to take advantage of all the innovation that's happening out there in the open source ecosystem. >> When you see other solutions out there that aren't as open as you guys, you guys are very open by the way, we love that too. We think that's a great strategy, but what am I foreclosing if I go with something else that's not as open? What's the customer's downside as you think about what's around the corner in the industry? Because if you believe it's going to be open, open source, which I think open source software is the software industry, and integration is a big deal. Because software's going to be plentiful. >> Sure. >> Let's face it. It's a good time to be in software business. But Cloud's booming. So what's the downside, from your Databricks perspective? You see a buyer clicking on Databricks versus that alternative. What's potentially should they be a nervous about, down the road, if they go with a more proprietary or locked in approach? >> Yeah. >> Well, I think the challenge with proprietary ecosystems is you become beholden to the ability of that provider to both build relationships and convince other vendors that they should invest in that format. But you're also, then, beholden to the pace at which that provider is able to innovate. >> Mm-hmm. >> And I think we've seen lots of times over history where, you know, a proprietary format may run ahead, for a while, on a lot of innovation. But as that market control begins to solidify, that desire to innovate begins to degrade. Whereas in the open formats- >> So extract rents versus innovation. (John laughs) >> Exactly. Yeah, exactly. >> I'll say it. >> But in the open world, you know, you have to continue to innovate. >> Yeah. >> And the open source world is always innovating. If you look at the last 10 to 15 years, I challenge you to find, you know, an example where the innovation in the data and AI world is not coming from open source. And so by investing in open ecosystems, that means you are always going to be at the forefront of what is the latest. >> You know, again, not to date myself again, but you look back at the eighties and nineties, the protocol stacked with proprietary. >> Yeah. >> You know, SNA and IBM, deck net was digital. You know the rest. And then TCPIP was part of the open systems interconnect. >> Mm-hmm. >> Revolutionary (indistinct) a big part of that, as well as my school did. And so like, you know, that was, but it didn't standardize the whole stack. It stopped at IP and TCP. >> Yeah. >> But that helped inter operate, that created a nice defacto. So this is a big part of this mid game. I call it the chessboard, you know, you got opening game and mid-game, then you get the end game. You're not there at the end game yet at Cloud. But Cloud- >> There's, always some form of lock in, right? Andy Jazzy will address it, you know, when making a decision. But if you're going to make a decision you want to reduce- You don't want to be limited, right? So I would advise a customer that there could be limitations with a proprietary architecture. And if you look at what every customer's trying to become right now, is an AI driven business, right? And so it has to do with, can you get that data out of silos? Can you organize it and secure it? And then can you work with data scientists to feed those models? >> Yeah. >> In a very consistent manner. And so the tools of tomorrow will, to Joel's point, will be open and we want interoperability with those tools. >> And choice is a matter too. And I would say that, you know, the argument for why I think Amazon is not as locked in as maybe some other clouds, is that they have to compete directly too. Redshift competes directly with a lot of other stuff. But they can't play the bundling game because the customers are getting savvy to the fact that if you try to bundle an inferior product with something else, it may not work great at all. And they're going to be, they're onto it. This is the- >> To Amazon's credit by having these solutions that may compete with native services in marketplace, they are providing customers with choice, low price- >> And access to the core value. Which is the hardware- >> Exactly. >> Which is their platform. Okay. So I want to get you guys thought on something else I see emerging. This is, again, kind of Cube rumination moment. So on stage, Chris unpacked a lot of stuff. I mean this marketplace, they're touching a lot of hot buttons here, you know, pricing, compensation, workflows, services behind the curtain. And one of those things he mentioned was, they talk about resellers or channel partners, depending upon what you talk about. We believe, Dave and I believe on the Cube, that the entire indirect sales channel of the industry is going to be disrupted radically. Because those players were selling hardware in the old days and software. That game is going to change. You mentioned you guys have a program, let me get your thoughts on this. We believe that once this gets set up, they can play in this game and bring their services in. Which means that the old reseller channels are going to be rewritten. They're going to be refactored with this new kinds of access. Because you've got scale, you've got money and you've got product. And you got customers coming into the marketplace. So if you're like a reseller that sold computers to data centers or software, you know, a value added reseller or VAB or business. >> You've got to evolve. >> You got to, you got to be here. >> Yes. >> Yeah. >> How are you guys working with those partners? Because you say you have a product in your marketplace there. How do I make money if I'm a reseller with Databricks, with Amazon? Take me through that use case. >> Well I'll let Joel comment, but I think it's pretty straightforward, right? Customers need expertise. They need knowhow. When we're seeing customers do mass migrations to the cloud or Hadoop specific migrations or data transformation implementations. They need expertise from consulting and SI partners. If those consulting and SI partners happen to resell the solution as well. Well, that's another aspect of their business. But I really think it is the expertise that the partners bring to help customers get outcomes. >> Joel, channel big opportunity for Amazon to reimagine this. >> For sure. Yeah. And I think, you know, to your comment about how do resellers take advantage of that, I think what Jack was pushing on is spot on. Which is, it's becoming more and more about the expertise you bring to the table. And not just transacting the software. But now actually helping customers make the right choices. And we're seeing, you know, both SIs begin to be able to resell solutions and finding a lot of opportunity in that. >> Yeah. And I think we're seeing traditional resellers begin to move into that SI model as well. And that's going to be the evolution that this goes. >> At the end of the day, it's about services, right? >> For sure. Yeah. >> I mean... >> You've got a great service. You're going to have high gross profits. >> Yeah >> Managed service provider business is alive and well, right? Because there are a number of customers that want that type of a service. >> I think that's going to be a really hot, hot button for you guys. I think being the way you guys are open, this channel, partner services model coming in, to the fold, really kind of makes for kind of that Supercloud like experience, where you guys now have an ecosystem. And that's my next question. You guys have an ecosystem going on, within Databricks. >> For sure. >> On top of this ecosystem. How does that work? This is kind of like, hasn't been written up in business school and case studies yet. This is new. What is this? >> I think, you know, what it comes down to is, you're seeing ecosystems begin to evolve around the data platforms. And that's going to be one of the big, kind of, new horizons for us as we think about what drives ecosystems. It's going to be around, well, what's the data platform that I'm using? And then all the tools that have to encircle that to get my business done. And so I think there's, you know, absolutely ecosystems inside of the AWS business on all of AWS's services, across data analytics and AI. And then to your point, you are seeing ecosystems now arise around Databricks in its Lakehouse platform as well. As customers are looking at well, if I'm standing these Lakehouses up and I'm beginning to invest in this, then I need a whole set of tools that help me get that done as well. >> I mean you think about ecosystem theory, we're living a whole nother dream. And I'm not kidding. It hasn't yet been written up and for business school case studies is that, we're now in a whole nother connective tissue, ecology thing happening. Where you have dependencies and value proposition. Economics, connectedness. So you have relationships in these ecosystems. >> And I think one of the great things about the relationships with these ecosystems, is that there's a high degree of overlap. >> Yeah. >> So you're seeing that, you know, the way that the cloud business is evolving, the ecosystem partners of Databricks, are the same ecosystem partners of AWS. And so as you build these platforms out into the cloud, you're able to really take advantage of best of breed, the broadest set of solutions out there for you. >> Joel, Jack, I love it because you know what it means? The best ecosystem will win, if you keep it open. >> Sure, sure. >> You can see everything. If you're going to do it in the dark, you know, you don't know the outcome. I mean, this is really kind of what we're talking about. >> And John, can I just add that when I was at Amazon, we had a theory that there's buyers and builders, right? There's very innovative companies that want to build things themselves. We're seeing now that that builders want to buy a platform. Right? >> Yeah. >> And so there's a platform decision being made and that ecosystem is going to evolve around the platform. >> Yeah, and I totally agree. And the word innovation gets kicked around. That's why, you know, when we had our Supercloud panel, it was called the innovators dilemma, with a slash through it, called the integrater's dilemma. Innovation is the digital transformation. So- >> Absolutely. >> Like that becomes cliche in a way, but it really becomes more of a, are you open? Are you integrating? If APIs are connective tissue, what's automation, what's the service messages look like? I mean, a whole nother set of, kind of thinking, goes on in these new ecosystems and these new products. >> And that thinking is, has been born in Delta Sharing, right? So the idea that you can have a multi-cloud implementation of Databricks, and actually share data between those two different clouds, that is the next layer on top of the native cloud solution. >> Well, Databricks has done a good job of building on top of the goodness of, and the CapEx gift from AWS. But you guys have done a great job taking that building differentiation into the product. You guys have great customer base, great growing ecosystem. And again, I think a shining example of what every enterprise is going to do. Build on top of something, operating model, get that operating model, driving revenue. >> Mm-hmm. >> Yeah. >> Whether, you're Goldman Sachs or capital one or XYZ corporation. >> S and P global, NASDAQ. >> Yeah. >> We've got, you know, the biggest verticals in the world are solving tough problems with Databricks. I think we'd be remiss because if Ali was here, he would really want to thank Amazon for all of the investments across all of the different functions. Whether it's the relationship we have with our engineering and service teams. Our marketing teams, you know, product development. And we're going to be at Reinvent. A big presence at Reinvent. We're looking forward to seeing you there, again. >> Yeah. We'll see you guys there. Yeah. Again, good ecosystem. I love the ecosystem evolutions happening. This NextGen Cloud is here. We're seeing this evolve, kind of new economics, new value propositions kind of scaling up. Producing more. So you guys are doing a great job. Thanks for coming on the Cube and taking the time. Joel, great to see you at the check. >> Thanks for having us, John. >> Okay. Cube coverage here. The world's changing as APN comes together with the marketplace for a new partner organization at Amazon web services. The Cube's got it covered. This should be a very big, growing ecosystem as this continues. Billions of being sold through the marketplace. And of course the buyers are happy as well. So we've got it all covered. I'm John Furry. your host of the cube. Thanks for watching. (upbeat music)

(upbeat electronic music) >> Welcome back to everyone, to "theCUBE's" coverage here in Seattle, Washington for Amazon Web Services Partner Marketplace Seller Conference, combining their partner network with Marketplace forming a new organization called AWS Partner Organization. This is "theCUBE" coverage. I'm John Furrier, your host. We've got great "Cube" alumni here from Zscaler, a very successful cloud company doing great work. Stelio D'Alo, senior director of cloud business development and Raveesh Chugh, VP of Public Cloud Partnerships at Zscaler. Welcome back to "theCUBE." Good to see you guys. Thanks for coming on. >> Thank you. >> Thanks having us, John. >> So we've been doing a lot of coverage of Zscaler, what a great success story. I mean, the numbers are great. The business performance, it's in the top two, three, one, two, three in all metrics on public companies, SaaS. So you guys, check. Good job. >> Yes, thank you. >> So you guys have done a good job. Now you're here, selling through the Marketplace. You guys are a world class performing company in cloud SaaS, so you're in the front lines doing well. Now, Marketplace is a procurement front end opportunity for people to buy. Hey, self-service, buy and put things together. Sounds novel, what a great concept. Great cloud life. >> Yes. >> You guys are participating and now sellers are coming together. The merger of the public, the partner network with Marketplace. It feels like this is a second act for AWS to go to the next level. They got their training wheels done with partners. Now they're going to the next level. What do you guys think about this? >> Well, I think you're right, John. I think it is very much something that is in keeping with the way AWS does business. Very Amazonian, they're working back from the customer. What we're seeing is, our customers and in general, the market is gravitating towards purchase mechanisms and route to market that just are lower friction. So in the same way that companies are going through their digital transformations now, really modernizing the way they host applications and they reach the internet. They're also modernizing on the purchasing side, which is super exciting, because we're all motivated to help customers with that agility. >> You know, it's fun to watch and again I'm being really candid and props to you guys as a company. Now, everyone else is kind of following that. Okay, lift and shift, check, doing some things. Now they go, whoa, I can really build on this. People are building their own apps for their companies. Going to build their own stuff. They're going to use piece parts. They're going to put it together in a really scalable way. That's the new normal. Okay, so now they go okay, I'm going to just buy through the market, I get purchasing power. So you guys have been a real leader with AWS. Can you share what you guys are doing in the Marketplace? I think you guys are a nice example of how to execute the Marketplace. Take us through. What are you guys offering there? What's the contract look like? Is it multi-pronged? What's the approach? What do customers get if they go to the marketplace for Zscaler? >> Yeah, so it's been a very exciting story and been a very pleasing one for us with AWS marketplace. We see a huge growth potentially. There are more than 350,000 customers that are actively buying through Marketplace today. We expect that number to grow to around a million customers by the next, I would say, five to ten years and we want to be part of this wave. We see AWS Marketplace to be a channel where not only our resalers or our channel partners can come and transact, but also our GSIs like Accenture want to transact through this channel. We are doing a lot, in terms of bringing new customers through Marketplace, who want to not only close their deals, but close it in the next few hours. That's the beauty of Marketplace, the agility, the flexibility in terms of pricing that it provides to ISVs like us. If a customer wants to delay their payments by a couple of quarters, Marketplace supports that. If a customer wants to do monthly payments, Marketplace supports that. We are seeing lot of customers, big customers, that have signed EDPs, enterprise discount plans with AWS. These are multi-year cloud commits coming to us and saying we can retire our EDPs with AWS if we transact your solution through AWS Marketplace. So what we have done, as of today, we have all of our production services enabled through AWS Marketplace. What that means for customers, they can now retire their EDPs by buying Zscaler products through AWS Marketplace and in return get the full benefit of maximizing their EDP commits with AWS. >> So you guys are fully committed, no toe on the water, as we heard. You guys are all in. >> Absolutely, that's exactly the way to put it. We're all in, all of our solutions are available in the marketplace. As you mentioned, we're a SaaS provider. So we're one of the vendors in the Marketplace that have SaaS solutions. So unlike a lot of customers and even the market in general, associate the Marketplace for historical reasons, the way it started with a lot of monthly subscriptions and just dipping your toe in it from a consumer perspective. Whereas we're doing multimillion dollar, multi-year SaaS contracts. So the most complicated kinds of transactions you'd normally associate with enterprise software, we're doing in very low friction ways. >> On the Zscaler side going in low friction. >> Yep, yeah, that's right. >> How about the customer experience? >> So it is primarily the the customer that experiences. >> Driving it? >> Yeah, they're driving it and it's because rather than traditional methods of going through paperwork, purchase orders- >> What are some of the things that customers are saying about this, bcause I see two benefits, I'll say that. The friction, it's a channel, okay, for Zscaler. Let's be clear, but now you have a customer who's got a lot of Amazon. They're a trusted partner too. So why wouldn't they want to have one point of contact to use their purchasing power and you guys are okay with that. >> We're absolutely okay with it. The reason being, we're still doing the transaction and we can do the transaction with our... We're a channel first company, so that's another important distinction of how people tend to think of the Marketplace. We go through channel. A lot of our transactions are with traditional channel partners and you'd be surprised the kinds of, even the Telcos, carrier providers, are starting to embrace Marketplace. So from a customer perspective, it's less paperwork, less legal work. >> Yeah, I'd love to get your reaction to something, because I think this highlights to me what we've been reporting on with "theCUBE" with super cloud and other trends that are different in a good way. Taking it to the next level and that is that if you look at Zscaler, SaaS, SaaS is self-service, the scale, there's efficiencies. Marketplace first started out as a self-service catalog, a website, you know, click and choose, but now it's a different. He calls it a supply chain, like the CICD pipeline of buying software. He mentions that, there's also services. He put the Channel partners can come in. The GSIs, global system integrators can come in. So it's more than just a catalog now. It's kind of self-service procurement more than it is just a catalog of buy stuff. >> Yes, so yeah, I feel CEOs, CSOs of today should understand what Marketplace brings to the bear in terms of different kinds of services or Zscaler solutions that they can acquire through Marketplace and other ISV solutions, for that matter. I feel like we are at a point, after the pandemic, where there'll be a lot of digital exploration and companies can do more in terms of not just Marketplace, but also including the channel partners as part of deals. So you talked about channel conflict. AWS addressed this by bringing a program called CPPO in the picture, Channel Partner Private Offers. What that does is, we are not only bringing all our channel partners into deals. For renewals as well, they're the partner of record and they get paid alongside with the customer. So AWS does all the heavy lifting, in terms of disbursements of payments to us, to the channel partner, so it's a win-win situation for all. >> I mean, private offers and co-sale has been very popular. >> It has been, and that is our bread and butter in the Marketplace. Again, we do primarily three year contracts and so private offers work super well. A nice thing for us as a vendor is it provides a great amount of flexibility. Private Offer gives you a lot of optionality, in terms of how the constructs of the deal and whether or not you're working with a partner, how the partner is utilizing as well to resell to the end user. So, we've always talked about AWS giving IT agility. This gives purchasing and finance business agility. >> Yeah, and I think this comes up a lot. I just noticed this happening a lot more, where you see dedicated sessions, not just on DevOps and all the goodies of the cloud, financial strategy. >> Yeah. >> Seeing a lot more conversation around how to operationalize the business transactions in the cloud. >> Absolutely. >> This is the new, I mean it's not new, it's been thrown around, but not at a tech conference. You don't see that. So I got to ask you guys, what's the message to the CISOs and executives watching the business people about Zscaler in the Marketplace? What should they be looking at? What is the pitch for Zscaler for the Marketplace buyer? >> So I would say that we are a cloud-delivered network security service. We have been in this game for more than a decade. We have years of early head start with lots of features and functionality versus our competitors. If customers were to move into AWS Cloud, they can get rid of their next-gen firewalls and just have all the traffic routed through our Zscaler internet access and use Zscaler private access for accessing their private applications. We feel we have done everything in our capacity, in terms of enabling customers through Marketplace and will continue to participate in more features and functionality that Marketplace has to offer. We would like these customers to take advantage of their EDPs as well as their retirement and spend for the multi-commit through AWS Marketplace. Learn about what we have to offer and how we can really expedite the motion for them, if they want to procure our solutions through Marketplace >> You know, we're seeing an ability for them to get more creative, more progressive in terms of the purchasing. We're also doing, we're really excited about the ability to serve multiple markets. So we've had an immense amount of success in commercial. We also are seeing increasing amount of public sector, US federal government agencies that want to procure this way as well for the same reasons. So there's a lot of innovation going on. >> So you have the FedRAMP going on, you got all those certifications. >> Exactly right. So we are the first cloud-native solution to provide IL5 ATO, as well as FedRAMP pie and we make that all available, GSA schedule pricing through the AWS Marketplace, again through FSIs and other resellers. >> Public private partnerships have been a big factor, having that span of capability. I got to ask you about, this is a cool conversation, because now you're like, okay, I'm selling through the Marketplace. Companies themselves are changing how they operate. They don't just buy software that we used to use. So general purpose, bundled stuff. Oh yeah, I'm buying this product, because this has got a great solution and I have to get forced to use this firewall, because I bought this over here. That's not how companies are architecting and developing their businesses. It's no longer buying IT. They're building their company digitally. They have to be the application. So they're not sitting around, saying hey, can I get a solution? They're building and architecting their solution. This is kind of like the new enterprise that no one's talking about. They kind of, got to do their own work. >> Yes. >> There's no general purpose solution that maps every company. So they got to pick the best piece parts and integrate them. >> Yes and I feel- >> Do you guys agree with that? >> Yeah, I agree with that and customers don't want to go for point solutions anymore. They want to go with a platform approach. They want go with a vendor that can not only cut down their vendors from multi-dozens to maybe a dozen or less and that's where, you know, we kind of have pivoted to the platform-centric approach, where we not only help customers with Cloud Network Security, but we also help customers with Cloud Native Application Protection Platform that we just recently launched. It's going by the name of the different elements, including Cloud Security Posture Management, Cloud Identity Event Management and so we are continuously doing more and more on the configuration and vulnerability side space. So if a customer has an AWS S3 bucket that is opened it can be detected and can be remediated. So all of those proactive steps we are taking, in terms of enhancing our portfolio, but we have come a long way as a company, as a platform that we have evolved in the Marketplace. >> What's the hottest product? >> The hottest product? >> In Marketplace right now. >> Well, the fastest growing products include our digital experience products and we have new Cloud Protection. So we've got Posture and Workload Protection as well and those are the fastest growing. For AWS customers a strong affinity also for ZPA, which provides you zero trust access to your workloads on AWS. So those are all the most popular in Marketplace. >> Yeah. >> So I would like to add that we recently launched and this has been a few years, a couple of years. We launched a product called Zscaler Digital X, the ZDX. >> Mm-hmm. >> What that product does is, let's say you're making a Zoom call and your WiFi network is laggy or it's a Zoom server that's laggy. It kind of detects where is the problem and it further tells the IT department you need to fix either the server on which Zoom is running, or fix your home network. So that is the beauty of the product. So I think we are seeing massive growth with some of our new editions in the portfolio, which is a long time coming. >> Yeah and certainly a lot of growth opportunities for you guys, as you come in. Where do you see Zscaler's big growth coming from product-wise? What's the big push? Actually, this is great upside for you here. >> Yeah. >> On the go to market side. Where's the big growth for Zscaler right now? So I think we are focused as a company on zero trust architecture. We want to securely connect users to apps, apps to apps, workloads to workloads and machines to machines. We want to give customers an experience where they have direct access to the apps that's hidden from the outside world and they can securely connect to the apps in a very succinct fashion. The user experience is second to none. A lot of customers use us on the Microsoft Office 365 side, where they see a lag in connecting to Microsoft Office 365 directly. They use the IE service to securely connect. >> Yeah, latency kills. >> Microsoft Office 365. >> Latency kills, as we always say, you know and security, you got to look at the pattern, you want to see that data. >> Yeah, and emerging use cases, there is an immense amount of white space and upside for us as well in emerging use cases, like OT, 5G, IOT. >> Yeah. >> Federal government, DOD. >> Oh god, tactical edge government. >> Security at the edge, absolutely, yeah. >> Where's the big edge? What's the edge challenge right now, if you have to put your finger on the edge, because right now that's the hot area, we're watching that. It's going to be highly contested. It's not yet clear, I mean certainly hybrid is the operating model, cloud, distributing, computing, but edge has got unique things that you can't really point to on premises that's the same. It's highly dynamic, you need high bandwidth, low latency, compute at the edge. The data has to be processed right there. What's the big thing at the edge right now? >> Well, so that's probably an emerging answer. I mean, we're working with our customers, they're inventing and they're kind of finding the use cases for those edge, but one of the good things about Zscaler is that we are able to, we've got low latency at the edge. We're able to work as a computer at the edge. We work on Outpost, Snowball, Snowcone, the Snow devices. So we can be wherever our customers need us. Mobile devices, there are a lot of applications where we've got to be either on embedded devices, on tractors, providing security for those IOT devices. So we're pretty comfortable with where we are being the- >> So that's why you guys are financially doing so well, performance wise. I got to ask you though, because I think that brings up the great point. If this is why I like the Marketplace, if I'm a customer, the edge is highly dynamic. It's changing all the time. I don't want to wait to buy something. If I got my solution architects on a product, I need to know I'm going to have zero trust built in and I need to push the button on Zscaler. I don't want to wait. So how does the procurement side impact? What have you guys seen? Share your thoughts on how Marketplace is working from the procurement standpoint, because it seems to me to be fast. Is that right, or is it still slow on their side? On the buyer side, because this to me would be a benefit to developers, if we say, hey, the procurement can just go really fast. I don't want to go through a bunch of PO approvals or slow meetings. >> It can be, that manifests itself in several ways, John. It can be, for instance, somebody wants to do a POC and traditionally you could take any amount of time to get budget approval, take it through. What if you had a pre-approved cloud budget and that was spent primarily through AWS Marketplace, because it's consolidated data on your AWS invoice. The ability to purchase a POC on the Marketplace could be done literally within minutes of the decision being made to go forward with it. So that's kind of a front end, you know, early stage use case. We've got examples we didn't talk about on our recent earnings call of how we have helped customers bring in their procurement with large million dollar, multimillion dollar deals. Even when a resaler's been involved, one of our resaler partners. Being able to accelerate deals, because there's so much less legal work and traditional bureaucratic effort. >> Agility. >> That agility purchasing process has allowed our customers to pull into the quarter, or the end of month, or end of quarter for them, deals that would've otherwise not been able to be done. >> So this is a great example of where you can set policy and kind of create some guard rails around innovation and integration deals, knowing if it's something that the edge is happening, say okay, here's some budget. We approved it, or Amazon gives credits and partnership going on. Then I'd say, hey, well green light this, not to exceed a million dollars, or whatever number in their range and then let people have the freedom to execute. >> You're absolutely right, so from the purchasing side, it does give them that agility. It eliminates a lot of the processes that would push out a purchase in actual execution past when the business decision is made and quite frankly, to be honest, AWS has been very accommodative. They're a great partner. They've invested a lot in Marketplace, Marketplace programs, to help customers do the right thing and do it more quickly as well as vendors like us to help our customers make the decisions they need to. >> Rising tide, a rising tide floats all boats and you guys are a great example of an independent company. Highly successful on your own. >> Yep. >> Certainly the numbers are clear. Wall Street loves Zscaler and economics are great. >> Our customer CSAT numbers are off the scale as well. >> Customers are great and now you've got the Marketplace. This is again, a new normal. A new kind of ecosystem is developing where it's not like the old monolithic ecosystems. The value creation and extraction is happening differently now. It's kind of interesting. >> Yes and I feel we have a long way to go, but what I can tell you is that Zscaler is in this for the long run. We are seeing some of the competitors erupt in the space as well, but they have a long way to go. What we have built requires years worth of R&D and features and thousands of customer's use cases which kind of lead to something what Zscaler has come up with today. What we have is very unique and is going to continuously be an innovation in the market in the years to come. In terms of being more cloud-savvy or more cloud-focused or more cloud-native than what the market has seen so far in the form of next-gen firewalls. >> I know you guys have got a lot of AI work. We've had many conversations with Howie over there. Great stuff and really appreciate you guys participating in our super cloud event we had and we'll see more of that where we're talking about the next generation clouds, really enabling that new disruptive, open-spanning capabilities across multiple environments to run cloud-native modern applications at scale and secure. Appreciate your time to come on "theCUBE". >> Thank you. >> Thank you very much. >> Thanks for having us. >> Thanks, I totally appreciate it. Zscaler, leading company here on "theCUBE" talking about their relationship with Marketplace as they continue to grow and succeed as technology goes to the next level in the cloud. Of course "theCUBE's" covering it here in Seattle. I'm John Furrier, your host. Thanks for watching. (peaceful electronic music)

>>Okay, welcome back everyone. It's the cubes coverage here in Seattle, Washington for Amazon web services, marketplace seller event. Really the big news here is the combination of the partner network with marketplace to one organization called the Amazon web services partner organization. Again, great news. Things are coming together, getting simplified and I'm John furry host of the cube. You've got a great guest here. Trish TRO head of worldwide Alliance at Wiz the fastest growing software company in history. Congratulations. Welcome to the cube. >>Thank you so much. And thanks for having us. >>So we were talking on camera. You had a little insight to a AWS. You jumped on this company. Oh my God. Amazing team. Take us through the story real quick. It's worth noting Wiz the company fastest growth. We're seeing take us through the quick soundbite. >>Sure. So the quick soundbite. So I was at AWS and my husband shared an article with me on cnbc.com about Wiz. They just done a big funding raise and he's like, you really have to read this. And I read it. And I said, oh my God, every single customer that I've met with the last year and a half has this problem. I have to find a way to be there. I don't care if I have to sweep the floors, lucky enough, they needed someone to run channels and alliances. So I did not have to sweep the floors, but for me, you know, when I think about our success, it's really this convergence of a series of things it's it's right time. Right? COVID forced everybody to the cloud, probably a little faster than they were ready to, you know, right market. And we have this convergence of the incredible product market fit, helping customers accelerate their cloud journey securely. And then I can't say enough about the team. You know, I thought it was fascinating, you know, as great as our product is when I got on board, everyone kept telling me, you know, they bought our product because of the team. And I was like, okay, cool. What about the product? And then I met the team and I understood. So jumped >>On one off one rocket ship. Yeah. To go onto another one. Yeah. You like the rocket, you like to ride those big, fast growth companies. You >>Know, I, I wish I was the kind of person where, you know, I just, I need excitement. Right? I'm I love to build. And I've had really good luck that I've always been able to find myself in a place, whether it's at a massive company or a startup to find myself as a builder, which has always been awesome. >>Well, tr it's great to have you on the cube. And a little fun fact is your sister was interviewed here on the cube in 2019 by myself. And so we have the first sisters, both cube alumni. Congratulations. >>I think that's, you know, honestly of all the accomplishments in my career, that's definitely one. I gotta make sure I get a plaque for that. You >>Will get a VIP sticker too. Yes, we, we all >>Sticker. Let's not get crazy now. >>All right. We'll designate in the front page. We'll have a very big story. L fund all good. We'd love the queue. We'd love to get the insight. So I wanna get your thoughts. Okay. You you've seen the Amazon side. You've been on that side. Now you're another side of the table with a partner growing. We're here to seller our conference. Big mission here is let's make things simpler and easier to procure software since you're already fast growing, what's in it for the customer to work through AWS, to get Wiz. Obviously you guys got a lot of demand. Yeah. A lot of money flowing through. You guys have a direct sales force. Are you going through the marketplace? What's the relationship between Wiz and Aish marketplace. >>So huge, honestly, and it's been a huge contributor to our success. We were lucky because we're, we were born during COVID, we're born in the cloud company. We got to build it from the ground up. This wasn't something that we had to go and figure out how to integrate into our existing ecosystem. Our ecosystem is actually built around the marketplace motion. You know, it's, it's interesting as you know, coming from AWS and now being on the other side, you know, something we really put a focus on is, you know, I see a lot of the companies that I was working with, you know, cloud was very much this thing. That's kind of in a silo and it's its own box and it competes internally. And really when you, you get deeper and deeper into the marketplace, it becomes about how do I use the cloud to really accelerate what I'm doing and to integrate it across my different channels. And for us, you know, AWS is our deepest relationship on the partner side. We invested heavily early and often, and it's been amazing. You >>Know, tr I was talking one of the data brick guys as well, and other companies that are big successes. This is a unique time here at the marketplace. We're on the ground floor. You can see here, we're at the, there's no stage. It's the smaller Q small venue, very intimate event. But it reminds me of 2013 when reinvent was starting to get traction second year, small, intimate, little bit bigger, obviously, but this is gonna feel like it's gonna explode. And you mentioned that you guys are building emotions around the ecosystem of the marketplace because you were born, born in the cloud. And COVID, so it's almost like if you're a startup today, why wouldn't you be in the marketplace first? Why even have that motion? So reminds me of the old days of you're a startup. Why not use the cloud? Why build a data center? >>No, and I think that's a really great analogy, you know, at least from what I've seen, it's, it's super interesting as a startup, because part of when you come out with a new technology in a perfect world, customers would already know what you were gonna make and have funding allocated for it. And we would all have this much easier sales cycle. That's not how it works. The customers, you know, as much as they might wanna get your solution, they have real things like budgets to deal with. And so it's really cool because when you work with the marketplace, it's a pool of funding that the customer has allocated on the customer side. It burns down their commit with the, with their different contracts. So that's usually powerful for them, right? Being able to consolidate your it, spend, reduce your overall total cost of ownership is, is usually powerful to the customer. And it on our side is a startup. So not only are they the financial benefits, it also helps you elevate the conversation. You know, a lot of times in the security industry, it's really all about like speeds and beads. That's how we sell cyber crime is 300% on the rise and stuff like that. Right. But being able to kind of get above that and help the customer, you know, have that financial conversation is, is really helpful too. >>So if I'm a startup, I'm a company, what would be the playbook for me and say, you know what, I'm gonna go all in, in the marketplace, I'm just gonna build the best kick ass product. Okay. I got product market fit. I'm gonna focus all my creative energy on building the best tech with the best, best team. All my friends and colleagues, and none of this non says go to market direct Salesforce, go all in on AWS. I know the product market fits there. What's the playbook. What do I do? Do just list it. >>So list, I think this is one of the mistakes that a lot of companies make when, when they first start out with the marketplace, right? They're like I will get to the marketplace and then AWS will sell my solution. I'm done the marketplace really? >>Where's the money back up the truck, come on. >>Exactly. Right? Like they have all these customers, they should just all come to me. Right. And I think that's one of the mistakes that organizations stumble on initially, cuz they go to the marketplace and then AWS is not selling their solution for them immediately. And they're like, the marketplace is a failure and it's really not. It's just the beginning of that. Being able to go into the marketplace, being able, honestly, to set expectations internally and understanding the journey that really comes into play here. You know, building, you know, one of the things that I talk to a lot about my team with is like building success within the sales reps and helping them be big advocates and champions for the marketplace. And the other thing is like, don't assume people know, I can't tell you. I feel like my, my real job at Wiz is I'm like the marketplace evangelist and cheap cuz that's all I do is talk about why they should use the marketplace and how it can solve all these different problems. Don't assume that people know how to do these things. Like you have to keep reiterating the message. You have to find sellers that are ready for it. And then you have to really, you have to teach them how to do it and then align your sales process accordingly. Like confidentiality come up a whole bunch at this conference today. It's important. You need it. >>It's huge. How big is your sales force right now? >>On >>The direct side. >>On the direct side, I think we're like a hundred or something like >>That. So you have, you have people out there on the streets knocking on doors selling. How's that comp decision go internally as you guys have that, what's the, what's the uptake in the marketplace for you guys right now? Is it high? Is it it's >>Been really high honestly. Yeah. It's and we've been really great. We have some incredible champions internally who are really great about sharing their experience, helping other sellers understand like we've, we've honestly had amazing co-sell stories at AWS where they've been so supportive and helpful. And it's amazing. Like we've had so many sellers that have done their first marketplace transaction ever. And now it's like for some of our sellers, they're at the point where they're like, I don't wanna, I don't wanna not do a marketplace transaction. It's just, it's so much easier. Take us >>For the procurement benefits. Take, walk me through what happens on the procurement side. What's the benefits for using the marketplace as you, as the procurement process goes through? >>Oh, from a, from a procurement side, right? It's like, it's simple, right? Like you, you essentially click a button and it's done like from the seller's side, like imagine not having to like chase down 15 different signatures and make sure nobody's on vacation. Right? So it just takes this really convoluted ti process that they would normally deal with. It makes it a lot simpler on the customer side. Right. Being able to have one consolidated is super powerful, burning down against commit, super powerful. And I think that's something that's really helped. Our sellers too, is being able, like we, we spend a tremendous amount of resources on educating our sellers. Not only about how it's gonna help them, but also how it's gonna help the customer too, >>Too. So good internally for you guys frictionless easier, better, better. Sounds like a better path >>On that. Oh, I won't say frictionless. I mean we're, we're about a year into this, but it wasn't so much frictionless, but it's not a hassle itself. Right. It's not a hassle. And it's all about >>On scale one to 10, 10 being frictionless. Would you get a, an eight or >>I'd say like an eight. Yeah. Okay. Okay. Cool. But it's important for organizations to understand that, right? Like that just because there's a little bit of friction at first. Like the most important thing I told my team is they were like, look like, well, why doesn't everybody wanna do this? This is so easy. And a, a good seller will take the hard time every way when they know what the defined outcome is. Yeah. The marketplace to them feels like a shortcut at first. Yeah. So a very much helps them become like, Hey look, this isn't a shortcut. This is gonna help you. Like, this is a good thing. And once you get that adoption like that, that's where the primary friction is. They almost go, is this, is this too good to be true? This can't be real. >>It, it, it almost sounds too good to be true when you think about, okay, so lemme take, I'm gonna put them a sales rep for a second. Like I'm selling WIS and I go and knock on a door and there's a company and I get an, a champion inside the company and says, oh, I love this product. I wanna buy it. I gotta get my PO approved and I gotta go get, I tell my boss about it. Does it go through that kind of normal kind of normal sales motion where you got buy in and now they gotta commit and close and get contract or they just go to the person who runs the account, click the button, like, like, is there, I mean, I'd like to see that shortcut happen. Like so on the customer side, what, what do you see as the process? Is it just go to the console and hit by and >>You know, depends on the customer honestly, and kind of where they are in their cloud journey. You know, really mature customers tend to have a little bit more of a mature process, you know, earlier customers, it tends to be a little less, let's say structured, but no, it's definitely not. The customer just clicks the button and it's done. That would be quite nice. We're just not there yet, but it's definitely a much simpler process cuz you know, you think about it on the customer side when they decide they wanna buy something, especially something new, they don't have allocated funding for us. They have to go build all this justification for funding. They still have to do that. Right. But then now there's a pot of money that they can go to and be able to retire against. There, there, it does help in that sense. A >>Lot. Chris, Chris grew has talked about on his keynote, the buyer journey survey. That seems to be on the, on the customer side. Yeah. Having those processes where they can forecast against it, they kind of know what they're getting. That's that's that's sounds like a great thing that's happening. I wanna get back to this comp issue again. Cause this came up. I heard that a lot. We talked with Chris about the competing thing. That's not an issue in my mind, but I think the factor to me, if I'm looking at this is that if you get the comp right, they can sell it at Amazon. You get comped, your sales people get comped goes through the marketplace. How do you look at that? How do company her look? How do they look at the comp what's what's the deciding factor or is it a non-issue what's the, what's the core. >>So I'm opportunity. I'm gonna be honest. I think I got a little lucky because I think the getting alignment at the executive level that this was something we should do to be totally honest here. Wasn't wasn't super hard. When we presented a clear plan, how we were gonna do it, what other companies were doing, what it did for their business to our executives. We do, we get some pushback. Sure. Healthy questions. Sure. But like it, it really >>Was it margin related or more like operational costs. >>It wasn't even margin related. It was again, more of like, is this, this feels too good to be true kind of thing. So it was more like proving it to them. Like no, like it really can be that easy. Yeah. And then on the, the comp side, right. For us, we look at it as like cost of sales. So yeah. You know, we, we treat it the same way. We treat all other channels and we wanted to make sure for our reps that, you know, when we think about the channel, whether, you know, from, especially with marketplace, like it can't be harder for them to do a marketplace transaction or less incentive for them to do that than a direct one that doesn't incentivize the right behaviors. >>So it's more of an indirect channel play. >>Yeah. So it's all for us. It was about aligning the right incentives to drive the right behaviors. It wasn't, it actually was a pretty short discussion on the confidentiality. Everyone was like, no, this, this makes sense. We should do that. >>Yeah. I mean, I think it's, I think it's an easy, easy, but you have to be organized for it. Like, like Chris said, don't put the toe in the water. Right. Put your flagship offering in there, make it valuable. And then the flag wheel gets going, the Amazon sales people can sell it. Right. They get calm. That's always a good thing. >>Yeah. And I think that's something that was really interesting. Like when we started on the marketplace journey, like I said, it's not just, you get in a marketplace and you're done, you know, Chris talked a lot about ISV accelerate and you know, how you elevate yourself within that program, doing things with ACE, like putting in different opportunities to, to start to essentially build that groundswell to drive co-sell it's, it's gets that first step into it. But there's so much more that, that we're still discovering and learning today is we're building it >>Out. And you said you had some good co-sell examples. >>Oh yeah. So we've had some great Cosell. >>What's your best one. Best one to >>Share. Oh, so my favorite one, I won't say the customer name, but we were in the final stages and a customer was really like, oh, like this is a lot of money. I'm really nervous. And the, they, I think what's crazy is that at AWS you have a different relationship with customers. Like you are truly a trusted advisor and rightfully so. Yeah. AWS really does a great job with making sure their account teams do what's best for the customer. And so an AWS seller or technical resource on an account says, Hey, no, this is the right thing for your business. That is huge for the customer. So we at Wiz actually spend a lot of time investing in enabling and educating the AWS account teams. So they feel comfortable when they get into that situation where the customers nervous of being saying like, no, this is you need to do this. This is >>Gonna be, you carry a lot of weight with the customers. >>Absolutely. >>And so you almost have to treat them like a lunch and learn, get 'em up, find, share. So it's kind of like an indirect relationship for you, but for them it's a part, you know, this is basically a channel. >>Yeah. And I think that's the thing that, that really is something we we've really heavily invested in is, is building. I like call the ground game within AWS. Right? Yeah. Making sure we spend time with enabling their reps. We enable their technical teams lunch and learns, right? Like there's so much energy at AWS to really invest in technical solutions that help their customers. Awesome. Which you don't always find that a lot of partners honestly. >>Well, Trish, great. Great to have you on sharing the AWS relationship story with WIS, gotta ask you, what's it like to be working for the fastest growing startup? What's it like? It's, it's, it's pretty fun. >>You know, it's, let's say I don't ever wake up on a day and say, man, I just wish I had more things to do. No, it's, it's been an incredible journey. The people, you know, my favorite part of a startup is, you know, getting to do this with a bunch of really incredible, awesome people. It's, it's the most fun thing in the world. We've, I've learned more in the last, you know, we like to joke that we're a five year old company and a one year old company at the exact same time. Yeah. And what's cool is we get to learn and, and I I've learned so much this year. >>When was the company officially >>Formed? It was officially formed before. Like, so it was officially formed in February, 2020. We started officially operating in the January following 21. So 21. Yep. >>Yeah. So one and a half years, >>One and a half years. Isn't that crazy? Great. >>And a hundred million ARR already. Yeah. Hitting that. >>Yep. It's been a, a wild journey. I I'll put it that way >>Is the, what's the success of the businesses? It, the onboarding the, is it the business model of freemium? What's the product market fit dynamic. Why is so fast? I mean, that's the needs there? Pandemic fresh, clean piece, piece of paper doing it, right. What's the, why is it? Why is that going so fast? >>Well, I think about this, I've been in the security industry for too many years. And when you think about normal security products, like there's so much time to value, you have to deploy all this infrastructure and then you gotta wait till something happens that you find that's scary, that will excite the customer. Right? It's, it's, it's a lot of time to show value. What blew my mind is the way that we approach our, the problem that we're solving is essentially immediate time to value. So the customer connects within minutes, they're immediately presented with here's your, your top risks. And then they can take action on them. Right? Like it's not just, here's these big threats and detecting, it's actually giving, empowering the customer to go and, and fix things. That's that's powerful for them. Yeah. Yeah. >>So, and the renewals are there coming in, people like the product, >>I mean, we've only been around for a year and a half, so there aren't that many renewals yet, but let's say we have extremely strong renewal rate from our customer base. >>Yeah. I mean you can have when you have a great product. Yeah. Well, thanks for coming on sharing. What's your assessment so far of the database marketplace kind of reorg with APN partner network to have one organization. What does that mean to the, to the market? What does that what's that tell you? >>So I was really excited. So we're actually built this way. So I run both our channels and alliances organization and it was, it was great because it allows these two things to work together and, and very well. And AWS, I think, is realizing the power of bringing those two groups together. So when I saw that, I was like, that's gonna be great. It's gonna make it simpler, easier. And at least for us, it's been really powerful. >>Awesome. Thanks for coming on the cube. Really appreciate it. We'll get you that plaque shortly. >>I thought I was getting a sticker too. >>Don't forget the sticker. Oh, the sticker definitely guaranteed. And we'll give you a VIP icon on our cube alumni network. All >>Right. I like that. >>Thanks for coming out. Alls great stuff. Thanks. Awesome. Thanks for having all best growing company history here on the cube, bringing all the action again, the new flywheel is gonna be procured through the marketplaces. This is obvious how it all kind of works and forms. It's kind of happening in real time. Cube's got you covered on the ground floor here in Seattle with more coverage after the short break.

>>Hello everyone. I'm John furry with the cube. We're here, live on the ground in Seattle, Washington at the Bellevue Hilton for thes marketplace seller conference. It's kind of like the one and a half inaugural event. They have their first event in 2019, and now with the pandemic, they're re rebooting it, but it's really all about AWS's marketplace and partner network coming together, creating an experience for how people will be buying software and how people will be selling through with their ecosystem. I'm Jennifer, the cube we're here with Megan. Fontain, who's the VP of cloud seek. Who's a seller and partner of AWS making great to see you. Thanks for coming on the cube. >>Thank you so much. It's, it's nice to be back in person and it's great to be with you. >>So watching the progression of how Amazon web services is evolving the marketplace and the partner network, you're starting to see some patterns. One is, I'll say they have their own stuff, and they're addressing that in the room, but they're really letting the thousand flowers bloom in the ecosystem. You hear that every year reinvent, even when Andy Jesse who's now the CEO of Amazon would say, no, we want the best of breed. Best product wins. Adam. Celeste's the same view, new leadership here, the combination of APN partner network with the marketplace now partner organization, APO is the big news. They're open. They're building an API service layer between their old marketplace to create this new model here. What's your, what's your, what's your take? What's your seller view? >>Yeah, so our marketplace and APN journey started with AWS about three years ago. And I think something that was the most profound to me out of the keynote this morning was that Chris Gus, who runs the API organization for ISVs talked about marketplace as the automation layer for how AWS will partner going forward. So an independent software vendor likes, we see that as opening up the door for two things. One, we get to leverage the great global scale and platform of AWS, but then secondly, it really brings together this idea that we will sell together to the end customer through the marketplace. And we will also sell as partners through co-sell and APM. >>You know, I love these kind of new, new development models around channel partners, ISVs at the end of the day, buyers are buying software. Yes. And they're cloud they're on a cloud journey. You're the VP of cloud at the company, your company seek take a minute to explain what your company's known for, what you guys do, your relationship with the market. You're an ISV. Yeah. Where are you guys? Cuz you guys ha have a good thing going on here. What do you guys do? What are you known for >>Sure. So seek is market leading software for advanced analytics for the manufacturing industry. So we're squarely in that industry. ISV, we sell SAS solutions to business buyers who want two things. One is they want technology that they can deploy quickly in their organizations drive that great business value ROI that drives the next level of investment in technology seeks unique offering in marketplace is that we've solved a lot of the challenges around that operational data in manufacturing. So manufacturing the industry, it's going through massive transformation, supply chain, disruption, or coming out of that, the globalization of manufacturing. And yet they have data that they've stored for 20, 30 years, that they're still in the first generation of trying to gain insights from. So that's why seek exists. It's really to bring the insights outta that data and then help the manufacturing customers we work with. Get to the cloud. >>What's interesting. I like your perspective and I want to follow up on that because data analytics used to be this thing. Well, I got a database. Yeah. You hosted on some storage and you got structured data, unstructured data. Okay. You got scale. But now you've got data platforms. You've got data mesh. I think Gardner actually has a different term, but gets a whole nother conversation. Data platforms are diverse. Yeah. They're pervasive. They're part of core infrastructure in cloud. It's not like a point solution anymore. It's gotta be integrated and customers are trying to work on, this is one of the hardest problems today. Yeah. In cloud transformation is the data layer, the relationship to other services. Yeah. >>So the Dataverse common data models. How APIs will interact with data. The trend there though is something that it is the ecosystem that will bring value to customers because no database is gonna serve every need. Right. And you think about the data layer. It really has to solve the problems whereby any application, any user, any insight can be generated almost seamlessly. And we're really on the first wave of that journey. But I think a, an element for seek that we certainly understand with our customers is that data alone is not an end objective, right? If it doesn't lead to a decision and an action and a workflow that humans can take to go drive and improvement in their business process, then you haven't tapped into the, you know, value of that technology >>When a buyer comes to the marketplace. Yeah. And they see your listing and solutions. Yes. What are they getting? What are they, what, what are they buying? >>So for seek, we've radically simplified that we, we really embrace this idea of simplification. We just sell, seek. So we have one seat listing in the AWS marketplace, all applications of seek they're all available there. We really leaned into the enterprise procurement models. So private offers are how we do the most of our business on marketplace. And it really went from a stage of experimentation where couple of customers, you know, what is this marketplace? Maybe we'll buy a few of our business applications there all the way through to now we're starting to see the demand side come through for customers where it's not just their security software or their DevOps or infrastructure software. They wanna buy solutions like seek including line of business buyers through a common catalog in the marketplace. >>Great. So I wanna ask you, cuz I want to give you the opportunity to give the pitch, the customer watching right now. Yeah. What's the pitch. Why seek, why this listing? Why should they hit the purchase button? I wish it was that easy. Why should they, why should they what's the pitch? Sure. >>So the first thing is seek through marketplace is a five clicks on three screens procurement experience. So compare that to months and months of back and forth with contracts and purchase orders and vendor set up, this is five less than five minutes, few screens, couple of clicks. And you can buy a multi-year subscription of seek to cover your entire enterprise. The second pitch is that it's a SaaS application that now can be deployed within hours. And then your users, your insights, your value is starting within the first couple hours. This is not a heavy lift it project. That's gonna take months. And then lastly seek specifically. So seek, because we're validated in the marketplace has been well architected for AWS cloud. We have that, you know, stamp of credibility. And we are leading in this space for manufacturing organizations who want cloud native secure software for analytics on their operational data. >>That's awesome. And customers have the challenge when they think about data, the use case security, yes governance, there's a variety of different use cases. What are you seeing as the top three use cases for C? >>So on the there's two lines of that question. The first is really the line of business use cases. And those are all about what outcome are we gonna drive? Are we gonna approve efficiency in your factory? Are we gonna reduce greenhouse gas emissions? Those are the kinds of use cases on the business side that that seek works with our customers on, on the it side. They wanna know that we can access data securely, that we can be part of an ecosystem where they can bring in aerations and algorithms and machine learning and new applications. And they also wanna know that we are sustainable. So meaning that we're driving constant innovation that is easy for them to consume and to gain access, to, to drive the next level of >>Improvement. My final AWS marketplace seller question is, yeah. How does the procurement process through marketplace help you and your customers what's in it for them? What value do the, does the customer get going through AWS procuring? >>So there's really really three. The first is you get a validated set of a catalog of solutions, right? That AWS says, you know, we undergo a rigorous process technically and commercially to be in the marketplace. The second thing for procurement effect of for procurement professionals is that they can leverage their cloud committed spend with AWS. So as they commit more expense and spend with AWS, now these marketplace purchases can be credited to that committed expense. We found that brings it and the business together with procurement to really work more collectively on that. And then the third piece is, imagine buying software where you don't need legal, you know, back and forth, back and forth because we're using a standard doula that thousands of other software companies are using in the marketplace today. >>I thought the keynote had a great line. We are not just a website of a catalog. We are a API service layer. Yes. With automation, more like a C I C D pipe lining. Yes. Of software. Yeah. And we are hearing more and more about software supply chain, more about scaling. This is kind of the future of procurement. Why wouldn't you buy direct, pick a few buttons and assemble your solutions at scale. >>There's some amount of tenant consequences that we've really learned as well. It brings it and the business closer together. So the it person wants to know, well, what is this seek, you know, piece of my AWS invoice. And so they get more engaged earlier in the process with procurement, with the business. And we've actually found that it brings internally for our customers, more people to the seat at the table around what are the applications and how will they govern them across the enterprise. >>Megan, I really appreciate you taking the time to speak with me here at the, at the conference, the seller S marketplace. I have to ask you, we were talking before we came on camera, you made a comment. I'd like you to share this comment with some commentary. You said I'm the VP of cloud transformation. And in the future that might title might not exist. Explain what you mean there, cuz I think this is kind of a telling moment about where we are at this point in the industry. >>Sure. So maybe it's, maybe it's funny to sort of envision a future where your role doesn't exist. But I think, you know, it's a to innovators do that, right? And for us we're a software company. That's going through the transition on-prem to SAS, you know, cloud native sets of applications, but in the pretty near term fore, really the next two years, all of our business will be SaaS and cloud. And so we won't need a separate VP or a separate team or separate function. It will just be how the business operates. >>Megan, thanks for running cue, Meghan bine, who is SI, she's a cloud VP of cloud transformation, VP of cloud, and she's successful. The title will go away and she'll move on to some other great valuable things like running the business. Thanks for coming on. Thank you so much. Okay. This is a cube here in Seattle. We're covering the eights marketplace seller conference. Part of APN merging with Amazon marketplace now called the APO Amazon partner organization. I'm John ER, with the cube. Thanks for watching.

>>Hello. And welcome back to the cubes live coverage here in Seattle for the cubes coverage of AWS marketplace seller conference. Now part of really big move and news, Amazon partner network combines with AWS marketplace to form one organization, the Amazon partner organization, APO where the efficiencies, the next iteration, as they say in Amazon language, where they make things better, simpler, faster, and, and for customers is happening. We're here with Chris Cruz, who's the general manager, worldwide leader of ISV alliances and marketplace, which includes all the channel partners and the buyer and seller relationships all now under one partner organization, bringing together years of work. Yes. If you work with AWS and are a partner and, or sell with them, all kind of coming together, kind of in a new way for the next generation, Chris, congratulations on the new role and the reor. >>Thank you. Yeah, it's very exciting. We're we think it invent, simplifies the process on how we work with our partners and we're really optimistic so far. The feedback's been great. And I think it's just gonna get even better as we kind of work out the final details. >>This is huge news because one, we've been very close to the partner that we've been working with and we talking to, we cover them. We cover the news, the startups from startups, channel partners, big ISVs, big and small from the dorm room to the board room. You guys have great relationships. So check marketplace, the future of procurement, how software will be bought, implemented and deployed is also changed. So you've got the confluence of two worlds coming together, growth in the ecosystem. Yep. NextGen cloud on the horizon for AWS and the customers as digital transformation goes from lift and shift to refactoring businesses. Yep. This is really a seminal moment. Can you share what you talked about on the keynote stage here, around why this is happening now? Yeah. What's the guiding principle. What's the north star where, why what's what's the big news. >>Yeah. And so, you know, a lot of reasons on why we kind of, we pulled the two teams together, but you know, a lot of it kind gets centered around co-sell. And so if you take a look at marketplace where we started off, where it was really a machine image business, and it was a great self-service model and we were working with ISVs that wanted to have this new delivery mechanism on how to bring in at the time was Amazon machine images and you fast forward, we started adding more product types like SAS and containers. And the experience that we saw was that customers would use marketplace for kind of up to a certain limit on a self-service perspective. But then invariably, they wanted by a quantity discount, they wanted to get an enterprise discount and we couldn't do that through marketplace. And so they would exit us and go do a direct deal with a, an ISV. >>And, and so to remedy that we launched private offers, you know, four years ago. And private offers now allowed ISVs to do these larger deals, but do 'em all through marketplace. And so they could start off doing self-service business. And then as a customer graduated up to buying for a full department or an organization, they can now use private offers to execute that larger agreement. And it, we started to do more and more private offers, really kind of coincided with a lot of the initiatives that were going on within Amazon partner network at the time around co-sell. And, and so we started to launch programs like ISV accelerate that really kind of focused on our co-sell relationship with ISVs. And what we found was that marketplace private offers became this awesome way to automate how we co-sell with ISV. And so we kinda had these two organizations that were parallel. We said, you know what, this is gonna be better together. If we put together, it's gonna invent simplify and we can use marketplace private offers as part of that co-sell experience and really feed that automation layer for all of our ISVs as they interacted with native >>Discussions. Well, I gotta give you props, you and Mona work on stage. You guys did a great job and it reminds me of the humble nature of AWS and Amazon. I used to talk to Andy jazzy about this all the time. That reminds me of 2013 here right now, because you're in that mode where Amazon reinvent was in 2013. Yeah. Where you knew it was breaking out. Yeah. Everyone's it was kind of small, but we haven't made it yet. Yeah. But you guys are doing billions of vows in transactions. Yeah. But this event is really, I think the beginning of what we're seeing as the change over from securing and deploying applications in the cloud, because there's a lot of nuanced things I want to get your reaction on one. I heard making your part product as an ISV, more native to AWS's stack. That was one major call out. I heard the other one was, Hey, if you're a channel partner, you can play too. And by the way, there's more choice. There's a lot going on here. That's about to kind of explode in a good way for customers. Yeah. Buyers get more access to assemble their solutions. Yeah. And you got all kinds of like business logic, compensation, integration, and scale. Yeah. This is like unprecedented. >>Yeah. It's, it's exciting to see what's going on. I mean, I think we kind of saw the tipping point probably about two years ago, which, you know, prior to that, you know, we would be working with ISVs and customers and it was really much more of an evangelism role where we were just getting people to try it. Just, just list a product. We think this is gonna be a good idea. And if you're a buyer, it's like just try out a private offer, try out a self, you know, service subscription. And, and what's happened now is there's no longer a lot of that convincing that needs to happen. It's really become accepted. And so a lot of the conversations I have now with ISVs, it's not about, should I do marketplace it's how do I do it better? And how do I really leverage marketplace as part of my co-sell initiatives as, as part of my go to market strategy. >>And so you've, you've really kind of passed this tipping point where marketplaces are now becoming very accepted ways to buy third party software. And so that's really exciting. And, and we see that we, you know, we can really enhance that experience, you know, and what we saw on the machine image side is we had this awesome integrated experience where you would buy it. It was tied right into the EC two control plane. And you could go from buying to deploying in one single motion. SAS is a little bit different, you know, we can do all the buying in a very simple motion, but then deploying it. There's a whole bunch of other stuff that our customers have to do. And so we see all kinds of ways that we can simplify that. You know, recently we launched the ability to put third party solutions outta marketplace, into control tower, which is how we deploy all of our landing zones for AWS. And now it's like, instead of having to go wire that up as you're adding new AWS environments, why not just use that third party solution that you've already integrated to you and have it there as you're span those landing zones through >>Control towers, again, back to humble nature, you guys have dominated the infrastructure as a service layer. You kind of mentioned it. You didn't really kind of highlight it other than saying you're doing pretty good. Yeah. On the IAS or the technology partners as you call or infrastructure as you guys call it. Okay. I can see how the, the, the pan, the control panel is great for those customers. But outside that, when you get into like CRM, you mentioned E R P these business apps, these horizontal and verticals have data they're gonna have SageMaker, they're gonna have edge. They might have, you know, other services that are coming online from Amazon. How do I, as an ISV, get my stuff in there. Yeah. And how do I succeed? And what are you doing to make that better? Cause I know it's kind of new, but not new. Yeah, >>No, it's not. I mean, that's one of the things that we've really invested on is how do we make it really easy to list marketplace? And, you know, again, when we first start started, it was a big, huge spreadsheet that you had to fill out. It was very cumbersome and we've really automated all those aspects. So now we've exposed an API as an example. So you can go straight out of your own build process and you might have your own C I CD pipeline. And then you have a build step at the end. And now you can have that execute marketplace update from your build script, right across that API all the way over to AWS marketplace. So it's taking that effectively, a C CD pipeline from an ISV and extending it all the way to AWS and then eventually to a customer, because now it's just an automated supply chain for that software coming into their environment. And we see that being super powerful. There's nowhere manual steps >>Along. Yeah. I wanna dig into that because you made a comment and I want you to clarify it here in the cube. Some have said, even us on the cube. Oh, marketplace. Just the website's a catalog. Yeah. Feels old school. Yeah. Feels like 1995 database. I'm kind of just, you know, saying no offense sake. And now you're saying, you're now looking at this and, and implementing more of a API based. Why is that relevant? I'm I know the answer. You already set up with APIs, but explain the transition from the mindset of it's a website. Yeah. Buy stuff on a catalog to full blown API layer. Yeah. Services. >>Absolutely. Well, when you look at all AWS services, you know, our customers will interface, you know, they'll interface them through a console initially, but when they're using them in production, they're, it's all about APIs and marketplace, as you mentioned, did start off as a website. And so we've kind of taken the opposite approach. We've got this great website experience, which is great for demand gen and, you know, highlighting those listings. But what we want to do is really have this API service layer that you're interfacing with so that an ISV effectively is not even in our marketplace. They interfacing over APIs to do a variety of their high, you know, value functions, whether it's listing soy, private offers. We don't have that all available through APIs and the same thing on the buyer side. So it's integrating directly into their AWS environment and then they can view all their third party spend within things like our cost management suites. They can look at things like cost Explorer, see third party software, right next to first party software, and have that all integrated this nice as seamless >>For the customer. That's a nice cloud native kind of native experience. I think that's a huge advantage. I'm gonna track that closer. We're we're gonna follow that. I think that's gonna be the killer killer feature. All right. Now let's get to the killer feature and the business logic. Okay. Yeah. All partners all wanna know what's in it for me. Yeah. How do I make more cash? Yeah. How do I compensate my sales people? Yeah. What do you guys don't compete with me? Give me leads. Yeah. Can I get MDF market development funds? Yeah. So take me through the, how you're thinking about supporting the partners that are leaning in that, you know, the parachute will open when they jump outta the plane. Yeah. It's gonna be, they're gonna land safely with you. Yeah. MDF marketing to leads. What are you doing to support the partners to help them serve their >>Customers? It's interesting. Market marketplace has become much more of an accepted way to buy, you know, our customers are, are really defaulting to that as the way to go get that third party software. So we've had some industry analysts do some studies and in what they found, they interviewed a whole cohort of ISVs across various categories within marketplace, whether it was security or network or even line of business software. And what they've found is that on average, our ISVs will see a 24% increased close rate by using marketplace. Right. So when I go talk to a CRO and say, do you want to close, you know, more deals? Yes. Right. And we've got data to show that we're also finding that customers on average, when an ISV sales marketplace, they're seeing an 80% uplift in the actual deal size. And so if your ASP is a hundred K 180 K has a heck of a lot better, right? >>So we're seeing increased deal sizes by going through marketplace. And then the third thing that we've seen, that's a value prop for ISVs is speed of closure. And so on average, what we're finding is that our ISVs are closing deals 40% faster by using marketplace. So if you've got a 10 month sales cycle, shaving four months off of a sales cycle means you're bringing deals in, in an earlier calendar year, earlier quarter. And for ISVs getting that cash flow early is very important. So those are great metrics that we're seeing. And, and, you know, we think that they're only >>Gonna improve and from startups who also want, they don't have a lot of cash ISVs that are rich and doing well. Yeah. They have good, good, good, good, good to market funding. Yeah. You got the range of partners and you know, the next startup could be the next Figma could be in that batch startups. Exactly. Yeah. You don't know the game is changing. Yeah. The next brand could be one of those batch of startups. Yeah. What's the message to the startup community. Yeah. >>I mean, marketplace in a lot of ways becomes a level in effect, right. Because, you know, if, if you look at pre marketplace, if you were a startup, you were having to go generate sales, have a sales force, go compete, you know, kind of hand to hand with these largest ISVs marketplace is really kind of leveling that because now you can both list in marketplace. You have the same advantage of putting that directly in the AWS bill, taking advantage of all the management go features that we offer all the automation that we bring to the table. And so >>A lot of us joint selling >>And joint selling, right? When it goes through marketplace, you know, it's gonna feed into a number of our APN programs like ISV accelerate, our sales teams are gonna get recognized for those deals. And so, you know, it brings nice co-sell behavior to how we work with our, our field sales teams together. It brings nice automation that, you know, pre marketplaces, they would have to go build all that. And that was a heavy lift that really now becomes just kind of table stakes for any kind of ISV selling to an, any of >>Customer. Well, you know, I'm a big fan of the marketplace. I've always have been, even from the early days, I saw this as a procurement game changer. It makes total sense. It's so obvious. Yeah. Not obvious to everyone, but there's a lot of moving parts behind the scenes behind the curtain. So to speak that you're handling. Yeah. What's your message to the audience out there, both the buyers and the sellers. Yeah. About what your mission is, what you're you wake up every day thinking about. Yeah. And what's your promise to them and what you're gonna work on. Cause it's not easy. You're building a, an operating model. That's not a website. It's a full on cloud service. Yeah. What's your promise. And what's >>Your goals. No. And like, you know, ultimately we're trying to do from an Aus market perspective is, is provide that selection experience to the ABUS customer, right? There's the infamous flywheel that Jeff put together that had the concepts of why Amazon is successful. And one are the concepts he points to is the concept of selection. And, and what we mean by that is if you come to Amazon it's is effectively that everything stored. And when you come across, AWS marketplace becomes that selection experience. And so that's what we're trying to do is provide whatever our AWS customers wanna buy, whatever form factor, whatever software type, whatever data type it's gonna be available in AWS marketplace for consumption. And that ultimately helps our customers because now they can get whatever technologies that they need to use alongside Avis. >>And I want, wanna give you props too. You answered the hard question on stage. I've asked Andy EY this on the cube when he was the CEO, Adam Celski last year, I asked him the same question and the answer has been consistent. We have some solutions that people want a AWS end to end, but your ecosystem, you want people to compete yes. And build a product and mostly point to things like snowflake, new Relic. Yeah. Other people that compete with Amazon services. Yeah. You guys want that. You encourage that. Yeah. You're ratifying that same statement. >>Absolutely. Right. Again, it feeds into that selection experience. Right. If a customer wants something, we wanna make sure it's gonna be a great experience. Right. And so a lot of these ISVs are building on top of AWS. We wanna make sure that they're successful. And, you know, while we have a number of our first party services, we have a variety of third party technologies that run very well in a AWS. And ultimately the customer's gonna make their decision. We're customer obsessed. And if they want to go with a third party product, we're absolutely gonna support them in every way shape we can and make sure that's a successful experience for our customers. >>I, I know you referenced two studies check out the website's got buyer and seller surveys on there for Boer. Yeah. I don't want to get into that. I want to just end on one. Yeah. Kind of final note, you got a lot of successful buyers and a lot of successful sellers. The word billions, yes. With an S was and the slide. Can you say the number, how much, how many billions are sold yeah. Through the marketplace. Yeah. And the buyer experience future what's those two things. >>Yeah. So we went on record at reinvent last year, so it's approaching it birthday, but it was the first year that we've in our 10 year history announced how much was actually being sold to the marketplace. And, you know, we are now selling billions of dollars to our marketplace and that's with an S so you can assume, at least it's two, but it's, it's a, it's a large number and it's going >>Very quickly. Yeah. Can't disclose, you know, >>But it's a, it's been a very healthy part of our business. And you know, we look at this, the experience that we >>Saw, there's a lot of headroom. I mean, oh yeah, you have infrastructure nailed down. That's long, you get better, but you have basically growth up upside with these categor other categories. What's the hot categories. You >>Know, we, we started off with infrastructure related products and we've kind of hit critical mass there. Right? We've, there's very few ISVs left that are in that infrastructure related space that are not in our marketplace. And what's happened now is our customers are saying, well, I've been buying infrastructure products for years. I'm gonna buy everything. I wanna buy my line of business software. I wanna buy my vertical solutions. I wanna buy my data and I wanna buy all my services alongside of that. And so there's tons of upside. We're seeing all of these either horizontal business applications coming to our marketplace or vertical specific solutions. Yeah. Which, you know, when we first designed our marketplace, we weren't sure if that would ever happen. We're starting to see that actually really accelerate because customers are now just defaulting to buying everything through their marketplace. >>Chris, thanks for coming on the queue. I know we went a little extra long. There wanted to get that clarification on the new role. Yeah. New organization. Great, great reorg. It makes a lot of sense. Next level NextGen. Thanks for coming on the cube. Okay. >>Thank you for the opportunity. >>All right here, covering the new big news here of AWS marketplace and the AWS partner network coming together under one coherent organization, serving fires and sellers, billions sold the future of how people are gonna be buying software, deploying it, managing it, operating it. It's all happening in the marketplace. This is the big trend. It's the cue here in Seattle with more coverage here at Davis marketplace sellers conference. After the short break.

>>Welcome back everyone to the cubes coverage here in Seattle, Washington for the Avis marketplace seller conference, part of the APN partner network merging with the marketplace to form the Amazon partner organization. I'm John furrier, host of the cube Walter Wall coverage today, Christian Gor cash, who is the VP of alliances at Kong Inc. Welcome to the cube. Thanks for coming on. >>Thank you. Thank you, John. Really glad to be here. Corke exactly. Yeah. It's awesome. >>So Kong we've been following you guys for while Docker Kong cube. You've been part of our cube conversation. Also part of our, our startup showcase fast growing startup, you know, working on stuff that everyone loves APIs. I mean, APIs are so popular now that they now a security concern, right? Yeah. So like it gets squat there everywhere. I won't say API sprawl, but APIs are the connections and that are, is the web. That is the cloud. Okay. Now with cloud native developers who are now in the front lines have taken over it, everyone knows DevOps dev SecOps is now the new it and it's the developers security and data they're below they're the new ops, right? So, so this is where microservices come in, open source service MES new automation is coming down the pike. That's super valuable to businesses as they look at cloud native architecture, what are you guys doing in there? Take a minute to explain Kong's value proposition, the hot products, and then why you're here. >>Yeah. So, you know, I joined Kong now or three years ago, you know, we were still just reaching our hundred employees, mark, which is very important, very startup, but even back then, you know, Kong was relatively well known in industry, you know, so we have one of the most, well the most popular open source project in API gateway area. So con API gateway, you know, we cross now 300 million downloads, even more important is just the scale it, which the product's been used. So between our open source community and enterprise customers, we are now crossing like 11 trillion transactions per month. Now just give you comparison. Like this is like 18, 19 times more than Netflix per month. You know? So for any company that has a technology that operates it at scale, you need to hit few things outta the park. You know, as he mentions cloud data developers, they want simplicity. You know, they want automation. They also want performance and scale and security, which are all critical, you know, to how Kong, you know, start as opensource project. Now, of course we have the whole suite of enterprise products. We also have our con service mesh offering as well as our cloud offerings. >>Yeah. And this is how open source is doing it now, obviously, you know, I, I still remember, I still tell the story to the young startups. Hey, I, there was proprietary software when I was in college. Open source is now everything. Now you've got, got cloud scale. So the dynamic between open source, which has become the software industry open source success doesn't mean it's it's game over. It's the beginning. The commercialization that you guys have gone through is super important. Trillions of transactions. Now you have enterprises working with you. What's the big advantage of the seller relationship that you have with Amazon? Why are customers using it? What are they buying it for? Give the pitch of con for the marketplace customer. >>Yeah, it's actually, we are relatively new in AWS marketplace. You know, so our first transaction that we ever done was actually in July and 2021. So we are just over a year, you know, that journey, you know, when I look what Chris gross talked today, he was talking about, you know, Hey, just publishing marketplace, not enough. You know, you need to understand what's your value proposition. You need to make sure your operations already, your sales is ready. Everything is, is set. And we kind of did this for the first year and a half is spend a lot of time improving our integration with AWS overall, all the first party services relevant to con we also understood, well, what does it take to kind of fine tune our value proposition? We have like three specific sales place. And you know, when we launch our flagship product con connect enterprise and got our first transaction, that was great milestone for, for star like Kong. But then what we've seen is just that work that we've done before really paid off. I mean right now, >>Like what we'll give example. >>Yeah. So, you know, we are focusing on as measure three sales place. Money is we are focused, specific on helping customers who are modernizing and, and their application going to the cloud. And you have a lot of these, you know, lifting shift and are rearchitect and modernized, but most of the attentions on the workloads, what about the connections? You know, so a monolith application had to authentic all the users understand wheres the network and so on. When you build those, when you now decouple this built like 1,000 thousand microservices, you don't want to repeat this for every microservice. So that's where K brings the whole suite from, you know, service match to the API gate to help manage the journey and really support this environment. And we spend a lot of time to just fine tune that message. So that customers understood where, you know, how can we help them on their journey beyond what, for instance, cloud native or AWS API gateway offers them. So we can really help them from day one on the journey and accelerate. And >>I think I it's a no, it's a no braining for a customer to buyer or to come into the marketplace and say, click, I'm gonna buy some data analytics services. I'm gonna buy gateway through Kong. But when they start getting into these microservices, this automation opportunity there, there's more behind the curtain for them with Kong. So I have to ask you with the keynote we heard from Chris, the leader of the marketplace. Now he said that he wants the ISVs to be more native in the cloud. That probably resonates with you. You, >>You guys well with con's relatively simple because we were built at cloud native, you know, so very briefly the whole story of Congo. This is before Ajo, our founders were actually running the, the very popular API exchange col mesh shape. And they had to build their own gateway just to handle the scale and was built on cloud native technologies. And then when everybody's calling you, what are you using to running? This are using PGS. And so else, no, we built ourselves, oh, how can we get our hands on? That's how con actually >>Came to. And that's how the big winners usually happen too. They start build their own, solve their own problem because it's a big scale problem. Exactly. No one's had that problem. >>Yeah. And what we have seen, especially what was very, you know, through, through the pandemic, what we have seen. And it's interesting, you know, being in a startup doing pandemic is like, whoa, will the life just shut down or what we're doing? You know? But actually what we have seen customers prioritize the new business capability. For instance, you have a large parental companies that overnight, they have to understand where the assets are. Yeah. Or banks who are like 45 days of, you know, approving process for the loans. They need to reduce it for a day or two. >>Yeah. And they're adding more developers, too, exactly. To build the modern application. So they need to have that infrastructure as code aspect. Correct. >>And they >>Need in place. >>Yeah. I need to like you have, you know, I don't think that many customers still have waterfall cycles, but they have, have pre pretty long developers development cycles. And now you need to, you know, do this multiple times a day. That's >>Interesting. We talked to a lot of cloud architects and C CIO C says, and you know, the executive just hire more developers take that hill, build. It just don't build a new app. It's not that easy boss. When, when the cloud architect says we have to be fully operationally ready with cloud native infrastructure's code. So with that, you're seeing a lot more enterprises come in now that are more savvy. They getting better. We're seeing Kubernetes more and more. You're seeing containerization. You're seeing that cloud native enterprise acceptance. What does that mean for you guys in the marketplace, as you look at the value proposition, how are you guys working with the marketplace today and where do you see customers buying in the future? >>Yeah, so we as mentioned, you know, we, we are now a year into that journey. We already seen tremendous benefits just in terms of reducing the friction. You know, the whole procurement, you know, you come as a startup with some, some of the largest companies in the world, they used to buy five, 10 billion in software and they have all these processes and you're like, well, but we only have like two people in finance. Sorry. How can you, and where marketplace can really, really helps us is, you know, improve this experience, both sides because they understand like we are fast moving company. They, they want us because of our speed and, and innovation that we, the product's strong. Yeah. They don't want us to get bogged down in all these pro procurement processes either. And so, so that's the first benefit. We also are working very hard to make sure that the customers can provision Kong in AWS and automate across the board. So essentially reducing their time to value dramatically. Yeah. And another thing that we found tremendously beneficial for us is a startup is the whole concept of a standard marketplace contract. Yeah. So instead of us coming with our little MSA or come like 50 page MSA from companies, we now have a middle ground. So we can just agree. You know, there's some differences, some specifics to qu software and it's tremendously reduced costs on both sides. >>Great. For you guys great for the buyers. Yeah. You get deployed services. They're not just buying, they're managing and deploying. Yeah, >>Exactly. Great. >>Quick, final question. Put a plugin for the company. What are you working on now? What's the big news. What's the con update? >>Well, that's an interesting part because I can't tell you because next week we have our con summit. Oh right. In San Francisco. The cubes not so 28, 20 ninth. Yeah. We, we we'll, I think we are gonna fix that in the future. But anyway, this is the first time after pandemic to do this in person, we have number of very exciting announcement, our Kong products, as well as you may hear some news about our AWS partnership, >>We like con we believe that DevOps has happened. Dev sec ops, whatever you gonna call it, dev is now the developers they're in the front lines. They're in the C I CD pipeline. They're shifting left. That's the new they took over it. That's what DevOps does. It's not a title. Now you have security and data ops behind the scenes. That's gonna be middleware. That's gonna have tons of microservices. So more, more, more action coming, all API based. >>Exactly. And the more, you know, the more complexity we can take away from that, the better we, you know, the >>Whole community. Thank you. Spending the time to come on the cube here at the, a us marketplace seller conference. What do you think about the APN merging with the marketplace formed the P the Amazon partner organization. Thumbs up, thumbs down. What's your heard? >>It's excellent. We have a great friend in AP, a great friend, us marketplace. Now both of them work together with huge. >>Fantastic. Yes. Thanks for okay. Cube coverage here in Seattle. I'm John furier APN marketplace together. APOs the new organization making it easier. Of course, we got all the coverage here. Thanks for watching.

>>Welcome back to the cubes coverage here in Seattle for AWS marketplace seller conference, the combination of the Amazon partner network, combined with the marketplace from the AWS partner organization, the APO and John Forer host of the queue, bringing you all the action and what it all means. Our next guest is Trisha kata, Malva, chief strategy officer at DataRobot. Great to have you. Thanks for coming on. >>Thank you, John. Great to be here. >>So DataRobot obviously in the big data business data is the big theme here. A lot of companies are in the marketplace selling data solutions. I just ran into snowflake person. I ran into another data analyst company, lot of, lot of data everywhere. You're seeing security. You're seeing insights a lot more going on with data than ever before. It's one of the most popular categories in the marketplace. Talk about DataRobot what you guys are doing. What's your product in there? Yeah, >>Absolutely. John. So we are an artificial intelligence machine learning platform company. We have been around for 10 years. This is this year marks our 10th anniversary and we provide a platform for data scientists and also citizen data scientists. So essentially wanna be data scientists on the business side to rapidly experiment with data and to get insights and then productionize ML models. So the 100% workflow that goes into identifying the data that you need for machine learning and then building models on top of that and operationalizing a, >>How big is the company, roughly employee count? What's the number in >>General general, about a thousand employees. And we have customers all over the world. Our biggest verticals are financial services, insurance, manufacturing, healthcare pharma, all the highly regulated, as well as our tech presence is also growing. And we have people spread across multiple geographies and I can't disclose a customer number, but needless to say, we have hundreds of customers across the >>World. A lot of customers. Yeah, yeah. You guys are well known in the industry have been following some of the recent news lately as well. Yeah. Obviously data's exploding. What in the marketplace are you guys offering? What's the pitch, someone hits the marketplace that wants to buy DataRobot what's the pitch. >>The pitch is if you're looking to get real value from your data science, personal investments and your data, then you have DataRobot that you can download from your AWS marketplace. You can do a free trial and essentially get from, get value from data in a matter of minutes and not months or quarters, that's generally associated with IML. And after that, if you want to purchase you, it's a private offer on, in the marketplace. So you need to call DataRobot representative, but AWS marketplace offers a fantastic distribution channel for us. >>Yeah. I mean, one of the things I heard Chris say, who's now heading up the marketplace and the partner network was the streamlining, a lot of the benefits for the sellers and for the buyers to have a great experience buyers. Clearly we see this as a macro trend, that's gonna only get stronger in terms of self-service buying bundling, having the console on AWS for low level services like infrastructure. But now you've got other business applications that like analytics applies to. You're seeing that work. Now he said things like than the keynote, I wanna get your reaction to like, we're gonna make this more like a C I C D pipeline. We're gonna have more native services built into AWS. What that means to me is that sounds like, oh, if I have a solution, like DataRobot, that can be more native into AWS level services. How do you see that working out for you guys is that play well for your strategy and your customers? What's the, what's the what's resonating with the >>Customers. It plays extremely well with the strategy. So I call this as a win, win, win strategy, win for DataRobot win for customers and win for AWS, which is our partner. And it's a win for DataRobot because the amount of people, the number of eyeballs that look at AWS marketplace, a significantly higher than, than the doors that we can go knock on. So it's a distribution multiplier for us. And the integration into AWS services that you're talking about. It is very important because in this day and age, we need to be interoperable with cloud player services that they offer, whether it is with SageMaker or Redshift, we support all of those. And it's a win for customers because customers, it is a very important growing buyer persona for DataRobot. Yeah. And they already have pre-committed spend with AWS and they can use the, those spend dollars for DataRobot to procure DataRobot. So it eases their procurement life cycle as >>Well. It's a forced multiplier on, on the revenue side, correct? I mean, as well as, as on the business front cost of sales, go down the cost of order dollar. Correct. This is good. Goodness. >>It's it's definitely sorry, just to finish my thought on the win for the partner for AWS. It's great win for them because they're getting the consumption from the partner side, to your point on the force multiplier. Absolutely. It is a force multiplier on the revenue side, and it's great for customers and us, because for us, we have seen that the deal size increases when there is the cloud commit that we can draw down for, for our customers, the procurement cycle shortens. And also we have multiple constituencies within the customers working together in a very seamless fashion. >>How has the procurement going through AWS helped your customers? What specific things are you seeing that are popping out as benefits to the customer? >>So from a procurement standpoint, we, we are early in our marketplace journey. We got listed about a year ago, but the amount of revenue that has gone through marketplace is pretty significant at DataRobot. We experienced like just in, by, I think this quarter until this quarter, we got like about 20 to 30 transactions that went through AWS marketplace. And that is significant within just a year of us operating on the marketplace. And the procurement becomes easier for our customers. Yeah. Because they trust AWS and we can put our legal paperwork through the AWS machine as well, which we haven't done yet. But if we do that, that'll be a further force multiplier because that's the, the less friction there is. >>I like how you say that it's a machine. Yeah. And if you think about the benefits too, like one of the things that I see happening, and I love to get your thoughts because I think this is what's happening here. Infrastructure services, I get that IAS done hardware I'm oversimplifying, but all the, all the goodness, but as customers have business apps and vertical market solutions, you got more AI involved. You need more data that's specialized for that use case. Or you need a business application. Those, you don't hear words like let's provision that app. I mean, your provision hardware and, and infrastructure, but the, the new net cloud native is that you provision turn on the apps. So you're seeing the wave of building apps are composing Lego blocks, if you will. So it seems like the customers are starting to assemble the solution, almost like deploying a service, correct. And just pressing a button. And it happens. This seems to be where the, the business apps are going. >>Yeah, absolutely. You agree for us? We are, we are a data science platform and for us being very close to the data that the customers have is very important. And where if, if the customer's data is in Redshift, we are close to there. So being very close to the hyperscale or ecosystem in that entire C I C D pipeline, and also the data platform pipeline is very important. >>You know, what's interesting is, is the data is such a big part of, I mean, DevOps infrastructure has code has been the movement for decade. Yeah. So throw security in there. It's dev SecOps. Yeah. That is the developer now. Yeah. They're running essentially what used to be it now the new ops is security and data. Yeah. You see, in those teams really level up to be highly high velocity data meshes, semantic layer. These are words I'm hearing in the industry around the big waves of data, having this mesh. Yeah. Having it connected. So you're starting to see data availability become more pervasive. And, and we see this as a way that's powering this next gen data science revolution where it's like the business person is now the data science person. >>That's exactly. That is, that is what DataRobot does the best. We were founded with the vision that we wanted to democratize the access to AI within enterprises. It shouldn't be restricted to a small group of people don't get me wrong. Data scientists also love DataRobot. They use DataRobot. But the mission is to enhance many, many hundreds of people within an organization to use data science, like how you use Tableau on a regular basis, how you use Microsoft Excel on a regular basis. We want to democratize AI. And when you want to democratize AI, you need to democratize access to data, which is, which could be stored in data marketplaces, which could be stored in data warehouses and push all the intelligence that we grab from that data into the E R P into the apps layer. Because at the end of the day, business users, customers consume predictions through applications layer. >>You know, it's interesting, you mentioned that comment about, you know, trying not to, to offend data scientists, it's actually a rising tide that the tsunami of data is actually making that population bigger too. Right. So correct. You also have data engineering, which has come out of the woodwork. We covered a lot on the cube, which is, you know, we call data as code. So infrastructure as code kind of a spoof on that. But the reality is that there's a lot more data engineering. I call that the smallest population. Those are the, those are the alphas, the alpha geeks. Yeah. Hardcore data operating systems, kind of education, data science, big pool growing. And then the users yeah. Are the new data science practitioners. Correct? Exactly. So kind of a, the landscape is you see that picture too, right? >>For sure. I mean, we, we have presence in all of those, right? Like data engineers are very important. Data scientists. Those are core users of DataRobot like, how can you develop thousands and hundreds of thousands of models without having to hand code? If you have to hand code, it takes months and years to solve one problem for one customer in one location. I mean, see how fast the microeconomic conditions are moving. And data engineers are very important because at the end of the day, yes, you do. You create the model, but you need to operationalize that model. You need to monitor that model for data drift. You need to monitor how the model is performing and you need to productionize the insights that you gain. And for that engineering effort is very important behind the scenes. Yeah. And the users at the end of the day, they are the ones who consume the predictions. >>Yeah. I mean the volume and, and the scale and scope of the data requires a lot of automation as well. Correct. Cause you had that on top of it. You gotta have a platform that's gonna do the heavy lifting. >>Correct. Exactly. The platform is we call it as an augmented platform. It augments data scientists by eliminating the tedious work that they don't want to do in their everyday life, which some of which is like feature engineering, right? It's a very high value add work. However, it takes like multiple iterations to understand which features in your data actually impact the outcome. >>This is where the SAS platform is a service is evolved and we call that super cloud, right. This new model where people can scale it out and up. So horizontally, scalable cloud, but vertically integrated into the applications. It's an integrator dilemma. Not so much correct innovators dilemma, as we say in the queue. Yeah. So I have to ask you, I'm a, I'm a buyer I'm gonna come to the marketplace. I want DataRobot why should they buy DataRobot what's in it for them? What's the key features of DataRobot for a company to hit the subscribe, buy button. >>Absolutely. Do you want to scale your data science to multiple projects? Do you want to be ahead of your competition? Do you want to make AI real? That is our pitch. We are not about doing data science for the sake of data science. We are about generating business value out of data science. And we have done it for hundreds of customers in multiple different verticals across the world, whether it is investment banks or regional banks or insurance companies or healthcare companies, we have provided real value out of data for them. And we have the knowhow in how to solve, whether it is your supply chain, forecasting, problem, demand, forecasting problem, whether it is your foreign exchange training problem, how to solve all these use cases with AI, with DataRobot. So if you want to be in the business of using your data and being ahead of your competitors, DataRobot is your tool log choice. >>Sure. Great to have you on the cube as a strategy officer, you gotta look at the chess board, right. And we're kind of in the mid game, I call it the cloud opening game was, you know, happened. Now we're in the mid game of cloud computing where you're seeing a lot of refactoring of opportunities where technologies and data is the key to success, being things secure and operationally, scalable, etcetera, et cetera. What's the key right now for the ecosystem as a strategy, look at the chessboard for data robots. Obviously marketplace is important strategy. Yeah. And bet for, for DataRobot. What else do you see for your company to be successful? And you could share with, with customers watching. >>Yeah. For us, we are in the intelligence layer, the data, the layer below us is the data layer. The layer about us is the applications and the engagement layer. DataRobot I mean, interoperability and ecosystem is important for every company, but for DataRobot it's extra important because we are in that middle of middle layer of intelligence. And we, we have to integrate with all different data warehouses out there enable our customers to pull the data out in a very, very faster way and then showcase all the predictions into, into their tool of choice. And from a chessboard perspective, I like your phrase of we are in the mid cycle of the cloud revolution. Yeah. And every cloud player has a data science platform, whether it is simple one or more complex one, or whether it has been around for quite some time or it's been latent features. And it is important for us that we have complimentary value proposition with all of them, because at the end of the day, we want to maximize our customer's choice. And DataRobot wants to be a neutral platform in supporting all the different vendors out there from a complementary standpoint, because you don't want to have a vendor lock in for your customers. So you create models in SageMaker. For example, you monitor those in DataRobot or you create models in DataRobot and monitor those in AWS so that you have to provide like a very flexible >>That's a solution architecture. >>Correct? Exactly. You have to provide a very flexible tech stack for your customers. >>Yeah. That's the choice. That's the choice. It's all good. Thank you for coming on the cube, sharing the data robot. So I really appreciate it. Thank >>You for coming. Thank you very much for the opportunity. >>Okay. Breaking it all down with the partners here, the marketplace, it's the future, obviously where people are gonna buy the buyers and sellers coming together, the partner network and marketplace, the big news here at 80 seller conference. I'm John ferry with the cube will be right back with more coverage after this short break.

>>Welcome back everyone to the cubes coverage here in Seattle, Washington, AWS's marketplace seller conference. It's the big news within the Amazon partner network, combining with marketplaces, forming the Amazon partner organization, part of a big reorg as they grow the next level NextGen cloud mid-game on the chessboard. Cube's got cover. I'm John fur, host of Cub, a great guests here from data bricks, both cube alumnis, Jack Anderson, GM of the and VP of the data bricks partnership team. For ADOS, you handle that relationship and Joel Minick vice president of product and partner marketing. You guys are the, have the keys to the kingdom with data, bricks, and AWS. Thanks for joining. Thanks for good to see you again. Thanks for >>Having us back. Yeah, John, great to be here. >>So I feel like we're at reinvent 2013 small event, no stage, but there's a real shift happening with procurement. Obviously it makes it's a no brainer on the micro, you know, people should be buying online self-service cloud scale, but Amazon's got billions being sold to their marketplace. They've reorganized their partner network. You can see kind of what's going on. They've kind of figured it out. Like let's put everything together and simplify and make it less of a website marketplace merge our partner to have more synergy and friction, less experiences so everyone can make more money and customer's gonna be happier. >>Yeah, that's right. >>I mean, you're run relationship. You're in the middle of it. >>Well, Amazon's mental model here is that they want the world's best ISVs to operate on AWS so that we can collaborate and co architect on behalf of customers. And that's exactly what the APO and marketplace allow us to do is to work with Amazon on these really, you know, unique use cases. >>You know, I interviewed Ali many times over the years. I remember many years ago, I think six, maybe six, seven years ago, we were talking. He's like, we're all in ons. Obviously. Now the success of data bricks, you've got multiple clouds. See that customers have choice, but I remember the strategy early on. It was like, we're gonna be deep. So this is speaks volumes to the, the relationship you have years. Jack take us through the relationship that data bricks has with AWS from a, from a partner perspective, Joel, and from a product perspective, because it's not like you got to Johnny come lately new to the new, to the scene, right? We've been there almost president creation of this wave. What's the relationship and has it relate to what's going on today? >>So, so most people may not know that data bricks was born on AWS. We actually did our first 100 million of revenue on Amazon. And today we're obviously available on multiple clouds, but we're very fond of our Amazon relationship. And when you look at what the APN allows us to do, you know, we're able to expand our reach and co-sell with Amazon and marketplace broadens our reach. And so we think of marketplace in three different aspects. We've got the marketplace, private offer business, which we've been doing for a number of years. Matter of fact, we we're driving well over a hundred percent year over year growth in private offers and we have a nine figure business. So it's a very significant business. And when a customer uses a private offer that private offer counts against their private pricing agreement with AWS. So they get pricing power against their, their private pricing. >>So it's really important. It goes on their Amazon bill in may. We launched our pay as you go on demand offering. And in five short months, we have well over a thousand subscribers. And what this does is it really reduces the barriers to entry it's low friction. So anybody in an enterprise or startup or public sector company can start to use data bricks on AWS and pay consumption based model and have it go against their monthly bill. And so we see customers, you know, doing rapid experimentation pilots, POCs, they're, they're really learning the value of that first use case. And then we see rapid use case expansion. And the third aspect is the consulting partner, private offers C P O super important in how we involve our partner ecosystem of our consulting partners and our resellers that are able to work with data bricks on behalf of customers. >>So you got the big contracts with the private offer. You got the product market fit, kind of people iterating with data coming in with, with the buyers you go. And obviously the integration piece all fitting in there. Exactly. Exactly. Okay. So that's that those are the offers that's current and what's in marketplace today. Is that the products, what are, what are people buying? I mean, I guess what's the Joel, what are, what are people buying in the marketplace and what does it mean for >>Them? So fundamentally what they're buying is the ability to take silos out of their organization. And that's, that is the problem that data bricks is out there to solve, which is when you look across your data landscape today, you've got unstructured data, you've got structured data, you've got real time streaming data, and your teams are trying to use all of this data to solve really complicated problems. And as data bricks as the lake house company, what we're helping customers do is how do they get into the new world? How do they move to a place where they can use all of that data across all of their teams? And so we allow them to begin to find through the marketplace, those rapid adoption use cases where they can get rid of these data, warehousing data lake silos they've had in the past, get their unstructured and structured data onto one data platform and open data platform that is no longer adherent to any proprietary formats and standards and something. >>They can very much, very easily integrate into the rest of their data environment, apply one common data governance layer on top of that. So that from the time they ingest that data to the time they use that data to the time they share that data inside and outside of their organization, they know exactly how it's flowing. They know where it came from. They know who's using it. They know who has access to it. They know how it's changing. And then with that common data platform with that common governance solution, they'd being able to bring all of those use cases together across their real time, streaming their data engineering, their BI, their AI, all of their teams working on one set of data. And that lets them move really, really fast. And it also lets them solve challenges. They just couldn't solve before a good example of this, you know, one of the world's now largest data streaming platforms runs on data bricks with AWS. >>And if you think about what does it take to set that up? Well, they've got all this customer data that was historically inside of data warehouses, that they have to understand who their customers are. They have all this unstructured data, they've built their data science model, so they can do the right kinds of recommendation engines and forecasting around. And then they've got all this streaming data going back and forth between click stream data from what the customers are doing with their platform and the recommendations they wanna push back out. And if those teams were all working in individual silos, building these kinds of platforms would be extraordinarily slow and complex, but by building it on data bricks, they were able to release it in record time and have grown at, at record pace >>To not be that's product platform that's impacting product development. Absolutely. I mean, this is like the difference between lagging months of product development to like days. Yes. Pretty much what you're getting at. Yeah. So total agility. I got that. Okay. Now I'm a customer I wanna buy in the marketplace, but I also, you got direct Salesforce up there. So how do you guys look at this? Is there channel conflict? Are there comp programs? Because one of the things I heard today in on the stage from a Davis's leadership, Chris was up there speaking and, and, and moment I was, Hey, he's a CRO conference, chief revenue officer conversation, which means someone's getting compensated. So if I'm the sales rep at data bricks, what's my motion to the customer. Do I get paid? Does Amazon sell it? Take us through that. Is there channel conflict? Is there or an audio lift? >>Well, I I'd add what Joel just talked about with, with, you know, what the solution, the value of the solution our entire offering is available on AWS marketplace. So it's not a subset, the entire data bricks offering and >>The flagship, all the, the top, >>Everything, the flagship, the complete offering. So it's not, it's not segmented. It's not a sub segment. It's it's, you know, you can use all of our different offerings. Now when it comes to seller compensation, we, we, we view this two, two different ways, right? One is that AWS is also incented, right? Versus selling a native service to recommend data bricks for the right situation. Same thing with data bricks. Our Salesforce wants to do the right thing for the customer. If the customer wants to use marketplace as their procurement vehicle. And that really helps customers because if you get data bricks and five other ISVs together, and let's say each ISV is spending, you're spending a million dollars, you have $5 million of spend, you put that spend through the flywheel with AWS marketplace. And then you can use that in your negotiations with AWS to get better pricing overall. So that's how we, >>We do it. So customers are driving. This sounds like, correct. For sure. So they're looking at this as saying, Hey, I'm gonna just get purchasing power with all my relationships because it's a solution architectural market, right? >>Yeah. It makes sense. Because if most customers will have a primary and secondary cloud provider, if they can consolidate, you know, multiple ISV spend through that same primary provider, you get pricing >>Power, okay, Jill, we're gonna date ourselves. At least I will. So back in the old days, it used to be, do a Barney deal with someone, Hey, let's go to market together. You gotta get paper, you do a biz dev deal. And then you gotta say, okay, now let's coordinate our sales teams, a lot of moving parts. So what you're getting at here is that the alternative for data bricks or any company is to go find those partners and do deals versus now Amazon is the center point for the customer so that you can still do those joint deals. But this seems to be flipping the script a little bit. >>Well, it is, but we still have VAs and consulting partners that are doing implementation work very valuable work advisory work that can actually work with marketplace through the C PPO offering. So the marketplace allows multiple ways to procure your >>Solution. So it doesn't change your business structure. It just makes it more efficient. That's >>Correct. >>That's a great way to say it. Yeah, >>That's great. So that's so that's it. So that's just makes it more efficient. So you guys are actually incented to point customers to the marketplace. >>Yes, >>Absolutely. Economically. Yeah. >>E economically it's the right thing to do for the customer. It's the right thing to do for our relationship with Amazon, especially when it comes back to co-selling right? Because Amazon now is leaning in with ISVs and making recommendations for, you know, an ISV solution and our teams are working backwards from those use cases, you know, to collaborate, land them. >>Yeah. I want, I wanna get that out there. Go ahead, Joel. >>So one of the other things I might add to that too, you know, and why this is advantageous for, for companies like data bricks to, to work through the marketplace, is it makes it so much easier for customers to deploy a solution. It's, it's very, literally one click through the marketplace to get data bricks stood up inside of your environment. And so if you're looking at how do I help customers most rapidly adopt these solutions in the AWS cloud, the marketplace is a fantastic accelerator to that. You >>Know, it's interesting. I wanna bring this up and get your reaction to it because to me, I think this is the future of procurement. So from a procurement standpoint, I mean, again, dating myself EDI back in the old days, you know, all that craziness. Now this is all the, all the internet, basically through the console, I get the infrastructure side, you know, spin up and provision. Some servers, all been good. You guys have played well there in the marketplace. But now as we get into more of what I call the business apps, and they brought this up on stage little nuance, most enterprises aren't yet there of integrating tech on the business apps, into the stack. This is where I think you guys are a use case of success where you guys have been successful with data integration. It's an integrator's dilemma, not an innovator's dilemma. So like, I want to integrate, so now I have integration points with data bricks, but I want to put an app in there. I want to provision an application, but it has to be built. It's not, you don't buy it. You build, you gotta build stuff. And this is the nuance. What's your reaction to that? Am I getting this right? Or, or am I off because no, one's gonna be buying software. Like they used to, they buy software to integrate it. >>Yeah, >>No, I, cause everything's integrated. >>I think AWS has done a great job at creating a partner ecosystem, right. To give customers the right tools for the right jobs. And those might be with third parties, data bricks is doing the same thing with our partner connect program. Right. We've got customer, customer partners like five tra and D V T that, you know, augment and enhance our platform. And so you, you're looking at multi ISV architectures and all of that can be procured through the AWS marketplace. >>Yeah. It's almost like, you know, bundling and unbundling. I was talking about this with, with Dave ante about Supercloud, which is why wouldn't a customer want the best solution in their architecture period. And it's class. If someone's got API security or an API gateway. Well, you know, I don't wanna be forced to buy something because it's part of a suite and that's where you see things get suboptimized where someone dominates a category and they have, oh, you gotta buy my version of this. Yeah. >>Joel, Joel. And that's Joel and I were talking, we're actually saying what what's really important about Databricks is that customers control the data. Right? You wanna comment on that? >>Yeah. I was say the, you know what you're pushing on there we think is extraordinarily, you know, the way the market is gonna go is that customers want a lot of control over how they build their data stack. And everyone's unique in what tools are the right ones for them. And so one of the, you know, philosophically I think really strong places, data, bricks, and AWS have lined up is we both take an approach that you should be able to have maximum flexibility on the platform. And as we think about the lake house, one thing we've always been extremely committed to as a company is building the data platform on an open foundation. And we do that primarily through Delta lake and making sure that to Jack's point with data bricks, the data is always in your control. And then it's always stored in a completely open format. And that is one of the things that's allowed data bricks to have the breadth of integrations that it has with all the other data tools out there, because you're not tied into any proprietary format, but instead are able to take advantage of all the innovation that's happening out there in the open source ecosystem. >>When you see other solutions out there that aren't as open as you guys, you guys are very open by the way, we love that too. We think that's a great strategy, but what's the, what am I foreclosing? If I go with something else that's not as open what what's the customer's downside as you think about what's around the corner in the industry. Cuz if you believe it's gonna be open, open source, which I think opens our software is the software industry and integration is a big deal, cuz software's gonna be plentiful. Let's face it. It's a good time to be in software business, but cloud's booming. So what's the downside from your data bricks perspective, you see a buyer clicking on data bricks versus that alternative what's potentially is should they be a nervous about down the road if they go with a more proprietary or locked in approach? Well, >>I think the challenge with proprietary ecosystems is you become beholden to the ability of that provider to both build relationships and convince other vendors that they should invest in that format. But you're also then beholden to the pace at which that provider is able to innovate. And I think we've seen lots of times over history where, you know, a proprietary format may run ahead for a while on a lot of innovation. But as that market control begins to solidify that desire to innovate begins to, to degrade, whereas in the open format. So >>Extract rents versus innovation. Exactly. >>Yeah, exactly. >>But >>I'll say it in the open world, you know, you have to continue to innovate. Yeah. And the open source world is always innovating. If you look at the last 10 to 15 years, I challenge you to find, you know, an example where the innovation in the data and AI world is not coming from open source. And so by investing in open ecosystems, that means you were always going to be at the forefront of what is the >>Latest, you know, again, not to date myself again, but you look back at the eighties and nineties, the protocol stacked for proprietary. Yeah. You know, SNA at IBM deck net was digital, you know, the rest is, and then TCP, I P was part of the open systems, interconnect, revolutionary Oly, a big part of that as well as my school did. And so like, you know, that was, but it didn't standardize the whole stack. It stopped at IP and TCP. Yeah. But that helped interoperate, that created a nice defacto. So this is a big part of this mid game. I call it the chessboard, you know, you got opening game and mid game. Then you got the end game and we're not there. The end game yet cloud the cloud. >>There's, there's always some form of lock in, right. Andy jazzy will, will address it, you know, when making a decision. But if you're gonna make a decision you want to reduce as you don't wanna be limited. Right. So I would advise a customer that there could be limitations with a proprietary architecture. And if you look at what every customer's trying to become right now is an AI driven business. Right? And so it has to do with, can you get that data outta silos? Can you, can you organize it and secure it? And then can you work with data scientists to feed those models? Yeah. In a, in a very consistent manner. And so the tools of tomorrow will to Joel's point will be open and we want interoperability with those >>Tools and, and choice is a matter too. And I would say that, you know, the argument for why I think Amazon is not as locked in as maybe some other clouds is that they have to compete directly too. Redshift competes directly with a lot of other stuff, but they can't play the bundling game because the customers are getting savvy to the fact that if you try to bundle an inferior product with something else, it may not work great at all. And they're gonna be they're onto it. This is >>The Amazon's credit by having these, these solutions that may compete with native services in marketplace, they are providing customers with choice, low >>Price and access to the S and access to the core value. Exactly. Which the >>Hardware, which is their platform. Okay. So I wanna get you guys thought on something else. I, I see emerging, this is again kind of cube rumination moment. So on stage Chris unpacked, a lot of stuff. I mean this marketplace, they're touching a lot of hot buttons here, you know, pricing compensation, workflows services behind the curtain. And one of the things he mentioned was they talk about resellers or channel partners, depending upon what you talk about. We believe Dave and I believe on the cube that the entire indirect sales channel of the industry is gonna be disrupted radically because those players were selling hardware in the old days and software, that game is gonna change. You know, you mentioned you guys have a program, want to get your thoughts on this. We believe that once this gets set up, they can play in this game and bring their services in which means that the old reseller channels are gonna be rewritten. They're gonna be refactored with this new kinds of access. Cuz you've got scale, you've got money and you've got product and you got customers coming into the marketplace. So if you're like a reseller that sold computers to data centers or software, you know, value added reseller or V or business, >>You've gotta evolve. >>You gotta, you gotta be here. Yes. How are you guys working with those partners? Cuz you say you have a part in your marketplace there. How do I make money? If I'm a reseller with data bricks with eight Amazon, take me through that use case. >>Well I'll let Joel comment, but I think it's, it's, it's pretty straightforward, right? Customers need expertise. They need knowhow. When we're seeing customers do mass migrations to the cloud or Hadoop specific migrations or data transformation implementations, they need expertise from consulting and SI partners. If those consulting SI partners happen to resell the solution as well. Well, that's another aspect of their business, but I really think it is the expertise that the partners bring to help customers get outcomes. >>Joel, channel big opportunity for re re Amazon to reimagine this. >>For sure. Yeah. And I think, you know, to your comment about how to resellers take advantage of that, I think what Jack was pushing on is spot on, which is it's becoming more about more and more about the expertise you bring to the table and not just transacting the software, but now actually helping customers make the right choices. And we're seeing, you know, both SI begin to be able to resell solutions and finding a lot of opportunity in that. Yeah. And I think we're seeing traditional resellers begin to move into that SI model as well. And that's gonna be the evolution that >>This gets at the end of the day. It's about services for sure, for sure. You've got a great service. You're gonna have high gross profits. And >>I think that the managed service provider business is alive and well, right? Because there are a number of customers that want that, that type of a service. >>I think that's gonna be a really hot, hot button for you guys. I think being the way you guys are open this channel partner services model coming in to the fold really kind of makes for kind of that super cloudlike experience where you guys now have an ecosystem. And that's my next question. You guys have an ecosystem going on within data bricks for sure. On top of this ecosystem, how does that work? This is kinda like hasn't been written up in business school and case studies yet this is new. What is this? >>I think, you know, what it comes down to is you're seeing ecosystems begin to evolve around the data platforms and that's gonna be one of the big kind of new horizons for us as we think about what drives ecosystems it's going to be around. Well, what is the, what's the data platform that I'm using and then all the tools that have to encircle that to get my business done. And so I think there's, you know, absolutely ecosystems inside of the AWS business on all of AWS's services, across data analytics and AI. And then to your point, you are seeing ecosystems now arise around data bricks in its Lakehouse platform, as well as customers are looking at well, if I'm standing these Lakehouse up and I'm beginning to invest in this, then I need a whole set of tools that help me get that done as well. >>I mean you think about ecosystem theory, we're living a whole nother dream and I'm, and I'm not kidding. It hasn't yet been written up and for business school case studies is that we're now in a whole nother connective tissue ecology thing happening where you have dependencies and value proposition economics connectedness. So you have relationships in these ecosystems. >>And I think one of the great things about relationships with these ecosystems is that there's a high degree of overlap. Yeah. So you're seeing that, you know, the way that the cloud business is evolving, the, the ecosystem partners of data bricks are the same ecosystem partners of AWS. And so as you build these platforms out into the cloud, you're able to really take advantage of best of breed, the broadest set of solutions out there for >>You. Joel, Jack, I love it because you know what it means the best ecosystem will win. If you keep it open. Sure. You can see everything. If you're gonna do it in the dark, you know, you don't know the outcome. I mean, this is really kind we're talking about. >>And John, can I just add that when I was in Amazon, we had a, a theory that there's buyers and builders, right? There's very innovative companies that want to build things themselves. We're seeing now that that builders want to buy a platform. Right? Yeah. And so there's a platform decision being made and that ecosystem gonna evolve around the >>Platform. Yeah. And I totally agree. And, and, and the word innovation get kicks around. That's why, you know, when we had our super cloud panel was called the innovators dilemma with a slash through it called the integrated dilemma, innovation is the digital transformation. So absolutely like that becomes cliche in a way, but it really becomes more of a, are you open? Are you integrating if APIs are the connective tissue, what's automation, what's the service message look like. I mean, a whole nother set of kind of thinking goes on and these new ecosystems and these new products >>And that, and that thinking is, has been born in Delta sharing. Right? So the idea that you can have a multi-cloud implementation of data bricks, and actually share data between those two different clouds, that is the next layer on top of the native cloud >>Solution. Well, data bricks has done a good job of building on top of the goodness of, and the CapEx gift from AWS. But you guys have done a great job taking that building differentiation into the product. You guys have great customer base, great grow ecosystem. And again, I think in a shining example of what every enterprise is going to do, build on top of something operating model, get that operating model, driving revenue. >>Yeah. >>Well we, whether whether you're Goldman Sachs or capital one or XYZ corporation >>S and P global NASDAQ, right. We've got, you know, these, the biggest verticals in the world are solving tough problems with data breaks. I think we'd be remiss cuz if Ali was here, he would really want to thank Amazon for all of the investments across all of the different functions, whether it's the relationship we have with our engineering and service teams. Yeah. Our marketing teams, you know, product development and we're gonna be at reinvent the big presence of reinvent. We're looking forward to seeing you there again. >>Yeah. We'll see you guys there. Yeah. Again, good ecosystem. I love the ecosystem evolutions happening this next gen cloud is here. We're seeing this evolve kind of new economics, new value propositions kind of scaling up, producing more so you guys are doing a great job. Thanks for coming on the Cuban, taking time. Chill. Great to see you at the check. Thanks for having us. Thanks. Going. Okay. Cube coverage here. The world's changing as APN comes to give the marketplace for a new partner organization at Amazon web services, the Cube's got a covered. This should be a very big growing ecosystem as this continues, billions of being sold through the marketplace. Of course the buyers are happy as well. So we've got it all covered. I'm John furry, your host of the cube. Thanks for watching.

>>Welcome back everyone to the cubes coverage here in Seattle, Washington for AWS's marketplace seller conference. The big news here is that the Amazon partner network and marketplace coming together and reorganizing into one organization, the AIST partner organization, APO bringing together the best of the partnership and the marketplace to sell through. It's a sellers company. This is the second year, but technically with COVID, I call it a year and a half. This is the cube. I'm John for your host. Got a great guest, Leah for sale vice president of business development at four square. Leah, thanks for coming on the cube. Look great. Yeah. >>Hey, thanks. Thanks for having me here. >>So four square, everyone, and that has internet history knows you. You check in you'd become the mayor of a place right back in the day, all fun. It was a great app and I think it was competitor go sold the Facebook, but that was the beginning of location data. Now you got Uber apps, you got all apps, location, everywhere. Data is big here in the marketplace. They sell data, they got a data exchange, Chris head of marketplaces. Like we have all these things we're gonna bring 'em together, make it simpler. So you're on the data side. I'm assuming you're selling data and you're participating at the data exchange. What is Foursquare doing right now? Yeah, >>Exactly. So we are part of the data exchange. And you mentioned checking in. So we, we are really proud of our roots, the, the four square app, and that's kind of the basis still of our business. We have a hundred million data points, which are actually places of interest across the world 200 countries. And we are we're in the business of understanding whereplace are and how people move through those places over time. And >>What's the value proposition for that data. You're selling the data. >>We are selling the data and we're selling it. You can think about use cases. Like how can I improve the engagement with my app through location data? So for example, next door, as a customer of ours, everyone knows next door. When a new business comes online, they wanna make sure that business is a real business. So they use our places to ensure that the address of that business is accurate. >>So how did you, how do you guys get your data? Because if you don't have the first party app, you probably had critical mass of data. Yeah. But then do other people use your data and then re contribute back in kinda like, well, Stripe is for financial. You guys are plugging in yeah. To >>Apps. A great question. So we still do have our consumer apps. We're still proud of those. It's still a basis of our company really. Okay. So, but we take that data. So our first party data, we also, for all the web, we have some partners integrate our SDK. And so we're pulling in all that data from various sources and then scrubbing it and making sure we have the most unique. >>So you guys still have a business where the app's working. Yep. Okay. But also let's just say, I wanna have a cube app. Yeah. And I want to do a check in button. Yep. So rather than build checking in, could I OEM you could four square is that you >>Could, and we could help you understand where people are checking in. So we know someone's here at the Hilton and Bellevue, we know exactly where that place is. You building the Cub app. You could say, I'm gonna check in here and we are verified. We know that that's the >>Right place. So that's a good for developer if they're building an app. >>Absolutely. So we have an SDK that any developer can integrate. >>Great. Okay. So what's the relationship with the marketplace? Take us through how Foursquare works with AWS marketplace. >>Sure. So we are primarily integrated with ADX, which is sort of a piece of marketplace it's for data specifically, we have both of our main products, which are places that POI database and visits, which is how people move through those places over time. So we're able to say these are the top chains in the country. Here's how people move throughout those. And both those products are listed on ADX. >>So if I'm in Palo Alto and I go to Joe in the juice yeah. You know that I kind of hang in one spot or is it privacy there? I mean, how do you know like what goes on? Well, >>We know somebody does that. We don't >>Know that you do that. So >>We ensure, you know, we're very privacy centric and privacy focused. We're not gonna, we don't tell anybody at you >>Yourself it's pattern data. It is. >>Okay. So it's normalized data, right? Over time groups of people, >>How they, how are people using the data to improve processes, user experience? What are some of the use cases? >>So that example, nextdoor, that's really a use case that we see a lot and that's improving their application. So that nextdoor app to ensure that the ACC, the data's accurate and that as you, as a user, you know, that that business is real. Cuz it's verified by four wear. Another one is you can use our data to make business decisions around where you're gonna place your next loca. You know, your next QSR. So young brands is a customer of ours. Those are, those guys are pizza hut KFC. They work with us to figure out where they should put their next KFC. Yeah. >>I mean retail location, location, location. Yeah. >>Right. Yeah. People are still, even though e-commerce right. People still go into stores >>And still are. Yeah. There's, there's, there's probably lot, a lot of math involved in knowing demographics patterns. Volume. >>Yeah. Some of our key customers are really data scientists. Like the think about cus with businesses that have true data science companies. They're really looking at that. >>Yeah. I mean in, and out's on the exit for a reason. Right. They want in and out. Yeah. So they wanna put it inland. >>Right. And we can actually tell you where that customer from in and out where they go next. Right. So then, you know, oh, they go to this park or they go somewhere and we can help you place your next in and out based on that visitation. >>Yeah. And so it's real science involved. So take us through the customers. You said data scientists, >>Mostly data scientists is kind of a key customer data science at a large corporation, like a QSR that's >>Somebody. Okay. So how is the procurement process on the marketplace? What does the buyer get? >>So what we see the real value is, is because they're already a customer of Amazon. That procurement is really easy, right? All the fulfillment goes through Amazon, through ADX. And what you're buying is either at API. So you can, that API can make real time calls or you're buying a flat file, like an actual database of those hundred points of interest. >>And then they integrate into their tool set. Right. They can do it. So it's pretty data friendly in terms of format. >>You can kind of do whatever you want with it. We're gonna give you that as long as you're smart enough to figure out what to do. Do we have a >>Lot of, so what's your experience with AWS marketplace? I mean, obviously we, we see a lot of changes. They had a reorg partner network merging with marketplace. You've been more on the data exchange, Chris kind of called that out. It's yeah. It's kind of a new thing. And, and he was hinting at a lot of confusion, but simplifying things. Yeah. What's your take of the current AWS marketplace >>Religions? I actually think ADX because our experience has primarily been ADX. I think they've done a really good job. They've really focused on the data and they understand how CU, how, you know, people like us sell our data. It hasn't been super confusing. We've had a lot of support. I think that's what Amazon gives you. You have to put a lot of effort into it, but they're also, they also give you a lot of support. >>Yeah. And, and I think data exchange is pretty significant to the strategic. It is >>Mission. It is. We feel that. Yeah. You know, we feel like they really value us as a partner. >>What's the big thing you're seeing out there right now in data, because like you're seeing a lot more data exchanges going on. There's always been data exchange, but you're seeing a lot more exchanges between companies. So let's just take partners. You're seeing a lot more people handle front end of a, a supply chain and you got more data exchanges. What's the future of data exchanges. If you had to kind of, you know, guess given your history in, in the industry. Yeah. What's the next around the corner trend? >>I think. Well, I think there's a, has to be consolidation. I know everyone's building one, but there's probably too many. I know from our experience, we can't support all of them. We're not a huge company. We can't support Amazon and X and Y and Z. Like it's just too many. So we kind of put all of our eggs in a couple baskets. So I think there'll be consolidation. I think there has to be just some innovation on what data products are, you know, for us, we have these two, it's an API and a flat file. I think as exchanges think about, you know, expanding what are the other types of data products that can help us build? >>Yeah. I mean, one of the things that's, you know, we see, we cover a lot of on the cube is edge. You know, you got, yeah. Amazon putting out new products in regions, you got new wavelength out there, you got regions, you got city level connectivity, data coming from cars. So a lot more IOT data. How do you guys see that folding into your vision of data acquisition and data usage, leverage, reuse, durability. These >>Are, yeah. I mean, we're, we are keeping an eye on all of that. You know, I think we haven't quite figured out how we wanna allocate resources against it, but you know, it's definitely, it's a really interesting space to be in. Like, I don't think data's going anywhere and I think it's really just gonna grow and how people use it's >>Gonna expand. Okay. So if I'm a customer, I go to the marketplace, I wanna buy four square data. What's the pitch. >>We can help you improve your business decisions or your applications through location data. We know where places are and how people move through the world over time. So we can tell you we're, we're sure that this is the Hilton in Bellevue. We know that, that we know how many people are moving through here and that's really the pitch. >>And they use that for whatever their needs are, business improvement, user experience. Yeah. >>Those are really the primary. I mean, we also have some financial use cases. So hedge funds, maybe they're thinking about yeah. How they wanna invest their money. They're gonna look at visits over time to understand what people are doing. Right. The pandemic made that super important. >>Yeah. That's awesome. Well, this is great. Great success story. Congratulations. And thanks for sharing on the cube. Really appreciate you coming on. Thank you. My final question is more about kind of the future. I wanna get your thoughts because your season pro, when you have the confluence of physical and digital coming together. Yeah. You know, I was just talking with a friend about FedEx's earnings, comparing that to say, AWS has a fleet of delivery too. Right? Amazon, Amazon nots. So, but physical world only products location matters. But then what about the person when they're walking around the real world? What happens when they get to the metaverses or, you know, they get to digital, they tend an event. Yeah. How do you see that crossroad? Cuz you have foot in both camps. We do, you got the app and you got the physical world it's gonna come together. Is there thoughts around, you can take your course care hat off and put your industry hat on. Yeah. You wanna answer that? Not officially on behalf of Foursquare, but I'm just curious, this is a, this is the confluence of like the blending of physical and digital. >>Yeah. I know. Wow. I admittedly haven't thought a whole lot about that. I think it would be really weird if I could track myself over time and the metaverse I mean, I think, yeah, as you said, it's >>It's, by the way, I'm not Bo on the metaverse when it's blocked diagrams, when you have gaming platforms that are like the best visual experience possible, right? >>Yeah. I mean, I think it, I think we'll see, I don't, I don't know that I have a >>Prediction, well hybrid we've seeing a lot of hybrid events. Like this event is still intimate VIP, but next year I guarantee it's gonna be larger, much larger and it's gonna be physical and face to face, but, but digital right as well. Yeah. Not people experiencing the, both that first party, physical, digital hybrid. Yeah. And it's interesting something that we track a lot >>Of. Yeah, for sure. Yeah. I think we'll have a, well, I think we'll, there's something there for us. I think that those there's a play there as we watch kind >>Of things change. All right, Leah, thank you for coming on the Q appreciate so much it all right. With four Graham, John fur a year checking in with four square here on the cube here at the Amazon web services marketplace seller conference. Second year back from the pandemic in person, more coverage after this break.

(upbeat electronic music) >> Welcome back to everyone, to "theCUBE's" coverage here in Seattle, Washington for Amazon Web Services Partner Marketplace Seller Conference, combining their partner network with Marketplace forming a new organization called AWS Partner Organization. This is "theCUBE" coverage. I'm John Furrier, your host. We've got great "Cube" alumni here from Zscaler, a very successful cloud company doing great work. Stelio D'Alo, senior director of cloud business development and Raveesh Chugh, VP of Public Cloud Partnerships at Zscaler. Welcome back to "theCUBE." Good to see you guys. Thanks for coming on. >> Thank you. >> Thanks having us, John. >> So we've been doing a lot of coverage of Zscaler, what a great success story. I mean, the numbers are great. The business performance, it's in the top two, three, one, two, three in all metrics on public companies, SaaS. So you guys, check. Good job. >> Yes, thank you. >> So you guys have done a good job. Now you're here, selling through the Marketplace. You guys are a world class performing company in cloud SaaS, so you're in the front lines doing well. Now, Marketplace is a procurement front end opportunity for people to buy. Hey, self-service, buy and put things together. Sounds novel, what a great concept. Great cloud life. >> Yes. >> You guys are participating and now sellers are coming together. The merger of the public, the partner network with Marketplace. It feels like this is a second act for AWS to go to the next level. They got their training wheels done with partners. Now they're going to the next level. What do you guys think about this? >> Well, I think you're right, John. I think it is very much something that is in keeping with the way AWS does business. Very Amazonian, they're working back from the customer. What we're seeing is, our customers and in general, the market is gravitating towards purchase mechanisms and route to market that just are lower friction. So in the same way that companies are going through their digital transformations now, really modernizing the way they host applications and they reach the internet. They're also modernizing on the purchasing side, which is super exciting, because we're all motivated to help customers with that agility. >> You know, it's fun to watch and again I'm being really candid and props to you guys as a company. Now, everyone else is kind of following that. Okay, lift and shift, check, doing some things. Now they go, whoa, I can really build on this. People are building their own apps for their companies. Going to build their own stuff. They're going to use piece parts. They're going to put it together in a really scalable way. That's the new normal. Okay, so now they go okay, I'm going to just buy through the market, I get purchasing power. So you guys have been a real leader with AWS. Can you share what you guys are doing in the Marketplace? I think you guys are a nice example of how to execute the Marketplace. Take us through. What are you guys offering there? What's the contract look like? Is it multi-pronged? What's the approach? What do customers get if they go to the marketplace for Zscaler? >> Yeah, so it's been a very exciting story and been a very pleasing one for us with AWS marketplace. We see a huge growth potentially. There are more than 350,000 customers that are actively buying through Marketplace today. We expect that number to grow to around a million customers by the next, I would say, five to ten years and we want to be part of this wave. We see AWS Marketplace to be a channel where not only our resalers or our channel partners can come and transact, but also our GSIs like Accenture want to transact through this channel. We are doing a lot, in terms of bringing new customers through Marketplace, who want to not only close their deals, but close it in the next few hours. That's the beauty of Marketplace, the agility, the flexibility in terms of pricing that it provides to ISVs like us. If a customer wants to delay their payments by a couple of quarters, Marketplace supports that. If a customer wants to do monthly payments, Marketplace supports that. We are seeing lot of customers, big customers, that have signed EDPs, enterprise discount plans with AWS. These are multi-year cloud commits coming to us and saying we can retire our EDPs with AWS if we transact your solution through AWS Marketplace. So what we have done, as of today, we have all of our production services enabled through AWS Marketplace. What that means for customers, they can now retire their EDPs by buying Zscaler products through AWS Marketplace and in return get the full benefit of maximizing their EDP commits with AWS. >> So you guys are fully committed, no toe on the water, as we heard. You guys are all in. >> Absolutely, that's exactly the way to put it. We're all in, all of our solutions are available in the marketplace. As you mentioned, we're a SaaS provider. So we're one of the vendors in the Marketplace that have SaaS solutions. So unlike a lot of customers and even the market in general, associate the Marketplace for historical reasons, the way it started with a lot of monthly subscriptions and just dipping your toe in it from a consumer perspective. Whereas we're doing multimillion dollar, multi-year SaaS contracts. So the most complicated kinds of transactions you'd normally associate with enterprise software, we're doing in very low friction ways. >> On the Zscaler side going in low friction. >> Yep, yeah, that's right. >> How about the customer experience? >> So it is primarily the the customer that experiences. >> Driving it? >> Yeah, they're driving it and it's because rather than traditional methods of going through paperwork, purchase orders- >> What are some of the things that customers are saying about this, bcause I see two benefits, I'll say that. The friction, it's a channel, okay, for Zscaler. Let's be clear, but now you have a customer who's got a lot of Amazon. They're a trusted partner too. So why wouldn't they want to have one point of contact to use their purchasing power and you guys are okay with that. >> We're absolutely okay with it. The reason being, we're still doing the transaction and we can do the transaction with our... We're a channel first company, so that's another important distinction of how people tend to think of the Marketplace. We go through channel. A lot of our transactions are with traditional channel partners and you'd be surprised the kinds of, even the Telcos, carrier providers, are starting to embrace Marketplace. So from a customer perspective, it's less paperwork, less legal work. >> Yeah, I'd love to get your reaction to something, because I think this highlights to me what we've been reporting on with "theCUBE" with super cloud and other trends that are different in a good way. Taking it to the next level and that is that if you look at Zscaler, SaaS, SaaS is self-service, the scale, there's efficiencies. Marketplace first started out as a self-service catalog, a website, you know, click and choose, but now it's a different. He calls it a supply chain, like the CICD pipeline of buying software. He mentions that, there's also services. He put the Channel partners can come in. The GSIs, global system integrators can come in. So it's more than just a catalog now. It's kind of self-service procurement more than it is just a catalog of buy stuff. >> Yes, so yeah, I feel CEOs, CSOs of today should understand what Marketplace brings to the bear in terms of different kinds of services or Zscaler solutions that they can acquire through Marketplace and other ISV solutions, for that matter. I feel like we are at a point, after the pandemic, where there'll be a lot of digital exploration and companies can do more in terms of not just Marketplace, but also including the channel partners as part of deals. So you talked about channel conflict. AWS addressed this by bringing a program called CPPO in the picture, Channel Partner Private Offers. What that does is, we are not only bringing all our channel partners into deals. For renewals as well, they're the partner of record and they get paid alongside with the customer. So AWS does all the heavy lifting, in terms of disbursements of payments to us, to the channel partner, so it's a win-win situation for all. >> I mean, private offers and co-sale has been very popular. >> It has been, and that is our bread and butter in the Marketplace. Again, we do primarily three year contracts and so private offers work super well. A nice thing for us as a vendor is it provides a great amount of flexibility. Private Offer gives you a lot of optionality, in terms of how the constructs of the deal and whether or not you're working with a partner, how the partner is utilizing as well to resell to the end user. So, we've always talked about AWS giving IT agility. This gives purchasing and finance business agility. >> Yeah, and I think this comes up a lot. I just noticed this happening a lot more, where you see dedicated sessions, not just on DevOps and all the goodies of the cloud, financial strategy. >> Yeah. >> Seeing a lot more conversation around how to operationalize the business transactions in the cloud. >> Absolutely. >> This is the new, I mean it's not new, it's been thrown around, but not at a tech conference. You don't see that. So I got to ask you guys, what's the message to the CISOs and executives watching the business people about Zscaler in the Marketplace? What should they be looking at? What is the pitch for Zscaler for the Marketplace buyer? >> So I would say that we are a cloud-delivered network security service. We have been in this game for more than a decade. We have years of early head start with lots of features and functionality versus our competitors. If customers were to move into AWS Cloud, they can get rid of their next-gen firewalls and just have all the traffic routed through our Zscaler internet access and use Zscaler private access for accessing their private applications. We feel we have done everything in our capacity, in terms of enabling customers through Marketplace and will continue to participate in more features and functionality that Marketplace has to offer. We would like these customers to take advantage of their EDPs as well as their retirement and spend for the multi-commit through AWS Marketplace. Learn about what we have to offer and how we can really expedite the motion for them, if they want to procure our solutions through Marketplace >> You know, we're seeing an ability for them to get more creative, more progressive in terms of the purchasing. We're also doing, we're really excited about the ability to serve multiple markets. So we've had an immense amount of success in commercial. We also are seeing increasing amount of public sector, US federal government agencies that want to procure this way as well for the same reasons. So there's a lot of innovation going on. >> So you have the FedRAMP going on, you got all those certifications. >> Exactly right. So we are the first cloud-native solution to provide IL5 ATO, as well as FedRAMP pie and we make that all available, GSA schedule pricing through the AWS Marketplace, again through FSIs and other resellers. >> Public private partnerships have been a big factor, having that span of capability. I got to ask you about, this is a cool conversation, because now you're like, okay, I'm selling through the Marketplace. Companies themselves are changing how they operate. They don't just buy software that we used to use. So general purpose, bundled stuff. Oh yeah, I'm buying this product, because this has got a great solution and I have to get forced to use this firewall, because I bought this over here. That's not how companies are architecting and developing their businesses. It's no longer buying IT. They're building their company digitally. They have to be the application. So they're not sitting around, saying hey, can I get a solution? They're building and architecting their solution. This is kind of like the new enterprise that no one's talking about. They kind of, got to do their own work. >> Yes. >> There's no general purpose solution that maps every company. So they got to pick the best piece parts and integrate them. >> Yes and I feel- >> Do you guys agree with that? >> Yeah, I agree with that and customers don't want to go for point solutions anymore. They want to go with a platform approach. They want go with a vendor that can not only cut down their vendors from multi-dozens to maybe a dozen or less and that's where, you know, we kind of have pivoted to the platform-centric approach, where we not only help customers with Cloud Network Security, but we also help customers with Cloud Native Application Protection Platform that we just recently launched. It's going by the name of the different elements, including Cloud Security Posture Management, Cloud Identity Event Management and so we are continuously doing more and more on the configuration and vulnerability side space. So if a customer has an AWS S3 bucket that is opened it can be detected and can be remediated. So all of those proactive steps we are taking, in terms of enhancing our portfolio, but we have come a long way as a company, as a platform that we have evolved in the Marketplace. >> What's the hottest product? >> The hottest product? >> In Marketplace right now. >> Well, the fastest growing products include our digital experience products and we have new Cloud Protection. So we've got Posture and Workload Protection as well and those are the fastest growing. For AWS customers a strong affinity also for ZPA, which provides you zero trust access to your workloads on AWS. So those are all the most popular in Marketplace. >> Yeah. >> So I would like to add that we recently launched and this has been a few years, a couple of years. We launched a product called Zscaler Digital X, the ZDX. >> Mm-hmm. >> What that product does is, let's say you're making a Zoom call and your WiFi network is laggy or it's a Zoom server that's laggy. It kind of detects where is the problem and it further tells the IT department you need to fix either the server on which Zoom is running, or fix your home network. So that is the beauty of the product. So I think we are seeing massive growth with some of our new editions in the portfolio, which is a long time coming. >> Yeah and certainly a lot of growth opportunities for you guys, as you come in. Where do you see Zscaler's big growth coming from product-wise? What's the big push? Actually, this is great upside for you here. >> Yeah. >> On the go to market side. Where's the big growth for Zscaler right now? So I think we are focused as a company on zero trust architecture. We want to securely connect users to apps, apps to apps, workloads to workloads and machines to machines. We want to give customers an experience where they have direct access to the apps that's hidden from the outside world and they can securely connect to the apps in a very succinct fashion. The user experience is second to none. A lot of customers use us on the Microsoft Office 365 side, where they see a lag in connecting to Microsoft Office 365 directly. They use the IE service to securely connect. >> Yeah, latency kills. >> Microsoft Office 365. >> Latency kills, as we always say, you know and security, you got to look at the pattern, you want to see that data. >> Yeah, and emerging use cases, there is an immense amount of white space and upside for us as well in emerging use cases, like OT, 5G, IOT. >> Yeah. >> Federal government, DOD. >> Oh god, tactical edge government. >> Security at the edge, absolutely, yeah. >> Where's the big edge? What's the edge challenge right now, if you have to put your finger on the edge, because right now that's the hot area, we're watching that. It's going to be highly contested. It's not yet clear, I mean certainly hybrid is the operating model, cloud, distributing, computing, but edge has got unique things that you can't really point to on premises that's the same. It's highly dynamic, you need high bandwidth, low latency, compute at the edge. The data has to be processed right there. What's the big thing at the edge right now? >> Well, so that's probably an emerging answer. I mean, we're working with our customers, they're inventing and they're kind of finding the use cases for those edge, but one of the good things about Zscaler is that we are able to, we've got low latency at the edge. We're able to work as a computer at the edge. We work on Outpost, Snowball, Snowcone, the Snow devices. So we can be wherever our customers need us. Mobile devices, there are a lot of applications where we've got to be either on embedded devices, on tractors, providing security for those IOT devices. So we're pretty comfortable with where we are being the- >> So that's why you guys are financially doing so well, performance wise. I got to ask you though, because I think that brings up the great point. If this is why I like the Marketplace, if I'm a customer, the edge is highly dynamic. It's changing all the time. I don't want to wait to buy something. If I got my solution architects on a product, I need to know I'm going to have zero trust built in and I need to push the button on Zscaler. I don't want to wait. So how does the procurement side impact? What have you guys seen? Share your thoughts on how Marketplace is working from the procurement standpoint, because it seems to me to be fast. Is that right, or is it still slow on their side? On the buyer side, because this to me would be a benefit to developers, if we say, hey, the procurement can just go really fast. I don't want to go through a bunch of PO approvals or slow meetings. >> It can be, that manifests itself in several ways, John. It can be, for instance, somebody wants to do a POC and traditionally you could take any amount of time to get budget approval, take it through. What if you had a pre-approved cloud budget and that was spent primarily through AWS Marketplace, because it's consolidated data on your AWS invoice. The ability to purchase a POC on the Marketplace could be done literally within minutes of the decision being made to go forward with it. So that's kind of a front end, you know, early stage use case. We've got examples we didn't talk about on our recent earnings call of how we have helped customers bring in their procurement with large million dollar, multimillion dollar deals. Even when a resaler's been involved, one of our resaler partners. Being able to accelerate deals, because there's so much less legal work and traditional bureaucratic effort. >> Agility. >> That agility purchasing process has allowed our customers to pull into the quarter, or the end of month, or end of quarter for them, deals that would've otherwise not been able to be done. >> So this is a great example of where you can set policy and kind of create some guard rails around innovation and integration deals, knowing if it's something that the edge is happening, say okay, here's some budget. We approved it, or Amazon gives credits and partnership going on. Then I'd say, hey, well green light this, not to exceed a million dollars, or whatever number in their range and then let people have the freedom to execute. >> You're absolutely right, so from the purchasing side, it does give them that agility. It eliminates a lot of the processes that would push out a purchase in actual execution past when the business decision is made and quite frankly, to be honest, AWS has been very accommodative. They're a great partner. They've invested a lot in Marketplace, Marketplace programs, to help customers do the right thing and do it more quickly as well as vendors like us to help our customers make the decisions they need to. >> Rising tide, a rising tide floats all boats and you guys are a great example of an independent company. Highly successful on your own. >> Yep. >> Certainly the numbers are clear. Wall Street loves Zscaler and economics are great. >> Our customer CSAT numbers are off the scale as well. >> Customers are great and now you've got the Marketplace. This is again, a new normal. A new kind of ecosystem is developing where it's not like the old monolithic ecosystems. The value creation and extraction is happening differently now. It's kind of interesting. >> Yes and I feel we have a long way to go, but what I can tell you is that Zscaler is in this for the long run. We are seeing some of the competitors erupt in the space as well, but they have a long way to go. What we have built requires years worth of R&D and features and thousands of customer's use cases which kind of lead to something what Zscaler has come up with today. What we have is very unique and is going to continuously be an innovation in the market in the years to come. In terms of being more cloud-savvy or more cloud-focused or more cloud-native than what the market has seen so far in the form of next-gen firewalls. >> I know you guys have got a lot of AI work. We've had many conversations with Howie over there. Great stuff and really appreciate you guys participating in our super cloud event we had and we'll see more of that where we're talking about the next generation clouds, really enabling that new disruptive, open-spanning capabilities across multiple environments to run cloud-native modern applications at scale and secure. Appreciate your time to come on "theCUBE". >> Thank you. >> Thank you very much. >> Thanks for having us. >> Thanks, I totally appreciate it. Zscaler, leading company here on "theCUBE" talking about their relationship with Marketplace as they continue to grow and succeed as technology goes to the next level in the cloud. Of course "theCUBE's" covering it here in Seattle. I'm John Furrier, your host. Thanks for watching. (peaceful electronic music)

>> From the ARIA Resort in Las Vegas, it's theCUBE. Covering AWS Marketplace. Brought to you by Amazon Web Services. >> Hey, welcome back here everybody Jeff Frick here with theCUBE. We are at AWS re:Invent 2018 wrapping up day one. We're going to do four days of coverage. We have four sets, three locations. But we're kicking things off here at the AWS Marketplace and Service Catalog event here at the ARIA. We're excited to be joined by our next guest, first time on theCUBE, but he's been working on the security stuff for a long time. He's Brandon Traffanstedt, he's the Global Director of System Engineering for CyberArk. Brandon, great to see you. >> Thank you very much. Glad to be here. >> Absolutely. So we started the conversation first off let's just give us the quick overview of CyberArk for people who are unfamiliar with the company. >> Definitely. So CyberArk does privilege access security, and that is the vaulting rotation in management of incredibly powerful accounts. Both traditional ones, the domain admin, to ones that exist in a more femoral, or cloud state. Access key, secret key pairs, route access into your console. So our goal is to take those out of the minds of users, out of those spreadsheets, out of hard coded code stacks. Place them in a secure location, rotate them, and then provide secure access to people as well as non people too. >> So you really segregate the privilege access as a very different category than just any regular user of kind of admin type of person. >> Absolutely. Though the focus is key. When we look the general spectrum of accounts in an organization, yes you've got the lower ones that are identity driven. Attackers might use those to get in, but really the creamy, nuggety center are those high value credentials. It's what brings down organizations. It's what we see involved in breaches every single day. So the focus there on those powerful ones is what gets us the most security posture increase with the least amount of effort. >> You know, it's interesting. 'Cause I always think of security as kind of like insurance. You can't absolutely be 100% positively. You can't spend every nickel you have on security, but you want to have a good ROI. So what you're saying, really, is this is a really good ROI investment from your security investment because these are really the crown jewels that you need to protect first. >> Absolutely. And like insurance, we often want to plan for the absolute worst to occur. There have been breaches in the past where yes, there were dollars that were spent on things like remediation, but if you have a huge customer base, even the postage alone to notify folks that you've had a compelling event tends to up into the seven figures. >> I never even thought of that. It's not a trivial expense. >> Absolutely. >> So, you said you've been doing this for 20 years, so a lot of change. There was no AWS re:Invent 20 years ago. There was not cloud computing as we know it today. So, you know we'll talk about kind of the current state but I'd love to get more kind of your historical perspective, you know being a security export, how your challenges have changed as this kind of continual escalation of war, accounting of strike counters strike. I'm thinking of MAD Magazine's Spy vs Spy, right, has continued to escalate over these 20 years. >> Definitely. So, years and years ago organizations were very monolithic from both the application side as well as their more kind of human focused infrastructure. Right, we had one or two domain controllers. Typically physical systems. But what happened is, the architecture broke down. So what, 10 years ago virtualization was the big thing, right. Same types of accounts, but more systems. More automation flows. So as we replaced humans with non humans, what happened was, more human users got over privileged, right? They were empowered to get their jobs done. But we had more and more robots that began doing their work. So one of the things that we saw, was the breaking down of the applications stacks to the point that we are now, you can spin up thousands of instances in a matter of clicks over a matter of seconds. Move that into a more micro services model, and you now have tens of thousands of nodes that can exist in the blink of an eye. All having the same type of access restrictions but just being far more distributed. >> Right. And so many more tax services with IOT, and all these things all over the place. And so, much more complex environment. >> Definitely. One of the things about all this beautiful automation and centralization that's occurring, is that now attackers don't have to go through that same type of flow they used to, right. Compromise an in user, escalate privilege on a laptop for instance, move laterally and continue to perform that dance. Now, all it takes is one compromise into your cloud management console for instance. And a lot of times that's game over. Our attacker is also changing a little bit. So I'm proud to say, but I'm a millennial and the thing about millennials is we tend to be very, some would say lazy, but I would say efficient in how we perform tasks. So for me, performing that lateral movement verses a one stop shop for a public effacing entity, I'm going to choose the one stop shop. >> Very true. So one of the hot topics in today's world is RPA, robotic process automation. We are at Automation Anywhere, we are at the UiPath Show this year, it's getting a lot of buzz. Both those companies have raised a ton of money. Hot, hot, hot space. It adds a whole new level of complexity and opportunity on the security side. So how should people be thinking about RPA and security? >> So when it comes to RPA, one of the things that is simply parr for the course, is that in order for robots to do their jobs, to build this automation that folks are looking for, they've got to authenticate this stuff. A lot of times we'll see that authentication happen as kind of an isolated secret that's stored, say inside of Automation Anywhere for instance. The goal there is, well we can rotate it, maybe, but now we have to update it here and there and a number of other spots. So one thing that we see as being a very prevalent theme is well let's find a centralized and secure source to manage them, and allow the robotic process automation to authenticate securely to that entity, pull the secrets as they need. Now, we can rotate that as many as what, ten, twelve times a day if we wanted to without our RPA missing a beat. At CyberArk we have what's called a C cubed alliance where we brought together a number of RPA vendors. All the ones that you mentioned. As well as other automation platforms, security vendors too. To where you don't have to do the work of integrating. It's already there and it's been built. And we're taking a huge direction from our customer base there to tell us what's hot, what's new for them. To let us proper those conversations. >> Because the robots are actually treated inside the system I believe, as like a person right? It's kind of like your own personal assistant. So in terms of the identity and the access, it's managed very much as if it was just a new hire. >> For sure. And if you look at it for instance using something like another automation platform like Jenkins. Jenkins is personified by a butler. Jenkins' task is to go out and perform all these tasks for you. But I'll submit to you if I were to offer you, hey Brandon, you can come to my house, vacuum my floor every Friday, that sounds like a pretty good deal. Especially if it's an open source. If I do it for you for free. But you encounter risk by giving me the keys to your house. The same is true for those automation platforms. A lot of times we divorce that robot from a human so we don't do the same level of due diligence to give the robot an identity to instantiate lease privilege. It's one of the things we've seen be a very huge theme in successful customer deployments. As well as automating their security too. >> Well at least they're not going to give away the security when someone calls up and says can you please give me the URL for the company picnic. I can't get in, you got to help me out. Hopefully they didn't train the robots to answer that question and let that social engineering enter. Is there social engineering for RPA? >> There is. When you look at RPA or even code that exists in public repositories, one of the quickest attacks you can do is to GitHub, search for your secret of choice. Maybe it's Postgres, maybe it's a vendor name underscore secret. If you sort that code by recent commits, you'll find people's hardcoded secrets that exist inside of public repositories. It's not because our developers are malicious. It's because it wasn't top of mind for them. They didn't have a more compelling solution. So that's one of the quickest attacks and I think that's social engineering. It could be as easy as compromising as say, one of your AWS administrators who happens to have a privileged key in a text file on his desktop. Same is also true there. >> Right Brandon, so we're here at the AWS Marketplace experience. Share with us a little bit about how you work with AWS Marketplace and what's that meant for your company. You've been around for 20 years. So you didn't need them to get started, but how are they helping you change your business? >> So one of the things that has been very top of mind for us over the past couple of years is supporting the community. In many cases folks will come to us with a project. Whether it be post breach mediation, audit compliance; whatever it may be, they have some indicator of moving forward. A lot of times when developers are building out processes, they may not be the driver from the business so the goal was we need to be able to support the community to provide open source secrets managements and do so very quickly. So there doesn't need to be a project or a red tape. AWS Marketplace has helped us provide our open source solution in a beautifully deployed package to as many folks as possible, so that at least they have some secure place to store those secrets without altering the way they do things. If they have to go outside of the Marketplace flows that they're used to, it's extra work. And we never want security to be a constraint to building good, quality automation development practices. >> Right. And how's Amazon been as a partner? There's a lot out there, be careful, they're going to see what you do and copy it and knock you out of business. How have they been working with as a partner? >> They've been fantastic. Highly supportive from both the programmatic secrets management perspective but also in providing best practices for how to deploy our core stack into AWS. How to handle things like auto scaling. As well as providing some APIs to extend our secrets management capability based on customer ASPs on both sides. >> Alright Brandon, well thank you for taking a few minutes. I'm sure we're both going to be dog tired in a couple of days. >> We can hope so, yeah. >> So we started while we were fresh. So I appreciate you taking a few minutes and stopping by. >> Always a pleasure. Thank you again for the invite. >> All right, he's Brandon, I'm Jeff. You're watching theCUBE. We're at AWS Marketplace and Service Catalog Experience here at the ARIA. Thanks for watching. See ya next time. (upbeat music)

>> From the Aria Resort in Las Vegas, it's theCUBE. Covering AWS Marketplace. Brought to you by Amazon Web Services. >> Hey welcome back everybody, Jeff Frick here with theCUBE, we're at AWS re:Invent in Las Vegas, I don't know, 50,000, 60,000. I can't wait 'til the number comes in, there's a lot of people at this event. Been coming for years, we actually have nine days of coverage here spread out over three sets in four different locations, but we're kickin' it off tonight, at the AWS Marketplace and Service Catalog event here at the Aria. Come on by there's no lines over here. I'm sure there's giant lines over at the Sands. We're excited to see an old friend and make a new friend, and talk about the service catalogs from some of the experts and Dave Wright, Chief Innovation Officer from ServiceNow, has been on many, many times. >> I have. >> Dave great to see you. >> No, good to be here. >> And our new friend MaSonya Scott, she's Senior Business Development Manager, at AWS Service Catalog. >> Hi, how are you? >> Welcome. >> Thank you. >> So there's a lot of talk about service catalog. We know about the ServiceNow Service Catalog. We got the AWS Service Catalog. But now you guys have brought these two things together. >> Yes. >> Why did you bring it together? How did it happen? How did we get here today? >> So, AWS, 95% of our features are based on what customer feedback. And so we were listening to our customers tell us that, hey it's your innovation in AWS Service Catalog, where you provide the governance, the guardrails, the launch constraints is great but we already have a service catalog with the ideas and tools such as ServiceNow and how can federate that ingest the details and information into ServiceNow so that we can do it in one place? So our developers don't have to swivel chair between two different systems. >> Right. >> So we listened to that feedback. Got requirements, started a proof of concept, and then we built on it and we're now on our third iteration. >> And Dave, what were you hearing your side of the chair? >> So we were getting, customers were coming to us saying they wanted a similar experience they were getting using regular service catalog. So they wanted a unified experience. They wanted the ability to have governance and control over what was happening. But most importantly they wanted us to integrate because they'd say, hey, you two are both strategic platforms for us. We don't want to go to the last mile after to aid the integration so you guys need to work together and sort it out. So, it was very much customer driven. It was customers that were saying, We want you guys to work together more closely. >> I love it. I just love the customer-centric nature because we hear it over and over again. >> Yes. >> And this is kind of a great example of a real instance. And you didn't really care, per se, whose was kind of on top. What are the logging into initially. >> Right. >> You just wanted to get the integration done. >> Yes. >> And it sounds like today, right now it's a ServiceNow log in and then it integrates with the AWS Service catalog-- >> Yes. >> Underneath. >> Right. So for the AWS Service Catalog we state the source of truth for all the resources, the products and the portfolios. And then we sync to ServiceNow Service Catalog through their scheduled job process and we expose products that the ServiceNow administrator wants their end-users to see. So they can order an iPhone and now they can order a web server. >> And where's the identity? Is that in the ServiceNow platform now in terms the rights and access that an individual person has inside of your catalog. >> So we have a scoped app in ServiceNow where you correlate the identities in AWS to a role in ServiceNow. >> Okay. >> So that's that. And then the best thing about the app is that the ServiceNow end users doesn't have direct access to the AWS console. >> Right. They just order what is a compliant, secure product product that they need to have. And then even in the AWS console, the connection only gives the end user role that's assumed access to the AWS Service Catalog. So not even direct resources to EC2 or S3. And so what that enables is that segregation of duty. >> Right. >> And so we put the permissions on the launch constraints and then they deplore products and then you can give the evidence in an audit to what you've provisioned. >> Okay. And then where is this in the life cycle? You said, I think we're kind of past POCs getting into production? >> Yeah our customers are starting to move to production, doing POCs, giving us feedback and as they give us more feedback, we're creating more releases. We've launched our third iteration of features last Monday, the 19th and what we did was we integrated not only just AWS Service Catalog but the ability through AWS Systems Manager to do SSM actions so if you provision a web server, now you can start, stop, reboot it. And so, then once you do that we create a change in ServiceNow's IT change management. So we're moving more from provisioning as well as into operational actions as well. >> So that's what was great for us was if you've got that point of initiation where you know something's happening, we can then update the CMDB in real time, we can start looking at software asset management so we can see what's deployed. And then we've also found this great use cases where we can look at how we actually map the service to then be able to use Amazon's cloud migration products to be able to speed up migrations as well. >> Yes. Yes, and so customers are not only just provisioning storage or EC2's but anything from a cloud formation template workspace, an Amazon workplace. >> Right. >> We can also send those requests through ServiceNow we got a lot of feedback on that. >> Right. >> We have sessions and builder projects today at re:Invent that are showing how that works. >> So it begs the question obviously down the road, you know will kind of the priority switch from the customer perspective? You know, will ServiceNow be integrated in through the marketplace of the service catalog and people access it through that way? >> I think there's no reason why it couldn't be at some point. The only challenge we have at the moment is obviously people using the service catalog to provision all kinds of things as well as AWS components >> Right, right. >> But if you're a core AWS shopper and that's what you're using everything for there's no reason why you couldn't flip that around. >> Right, I was just thinking you know what screen are you on all day, right? You know everybody wants your attention. They want that screen and if that's your work screen, that's your work screen so know you're opening this up, really adds a whole lot of power to the ServiceNow work screen that wasn't there before. >> We've always focused on can it change what the employee experience is like to just try and give them, ironically an Amazon-like experience. >> Yeah. (laughs) >> Before we said it's easy for me to order stuff in the real world for me to just get something from Amazon why couldn't I have exactly that same experience when I wanted to order any piece of IT equipment whether it be physical, virtual, peripherals, whatever. So that's why we're trying to change the experience but it's funny that it's come through that full circle of them going, oh, it would be good if it was like that, and then we end up working with these guys anyway. >> So did you get a cake? (laughing) >> Did I get a cake? I've seen many cakes in my career. But no, I think you need to send me a cake. >> We need to do it, get a go live cake. >> I know, I know >> Yeah you got to get a Go Live cake once you get that first one up and official and ready to roll. >> We ought to do that, take a picture. >> See your product manager. >> It's a huge tradition. It's one of the coolest things of the ServiceNow culture I have to say. >> Yes, yes, yes. >> All right. So any final words on this partnership beyond just continuing to make the improvements getting closer to production and build more functionality? Anything you want to highlight as you turn the calendar on 2018 and 2019's just around the corner? >> So we're looking to get feedback on not just provisioning but going through other management tool services and trying to see what the customers are looking for. So that's one of those key features is just building bigger not just AWS Service Catalog but a connector between the two platforms so that we can continue to create that synergy. >> Excellent. All right, well thanks for taking a few minutes of your day and we'll see you I think in May. (laughing) Is usually when we see you. And we see AWS, I think we had six shows this year. You guys just keep rolling. >> Yes. >> So thanks for taking a few minutes and have a terrific show. >> No great to be here. >> Thank you. >> All right, she's MaSonya, he's Dave and I'm Jeff, you're watching theCUBE. It's the AWS Marketplace Service Catalog Enterprise at the Aria, come on by. Thanks for watching. (upbeat music)

>> From the Aria resort in Las Vegas. It's the Cube! (upbeat music) Covering AWS Marketplace. Brought to you by Amazon Web Services. Hey, welcome back everybody. Jeff Frick here with the Cube. We're at AWS Reinvent 2018. I don't know how many people are here, 60 000, 70 000, your guess is as good as mine. I'm sure we'll get an official number shortly. We're kicking things of here. Three days of coverage. Monday, Tuesday, Wednesday, Thursday, that's four days. We're at the AWS Marketplace and Service Catalog Experience here at the Aria. We're excited to be kicking stuff of with Rajeev Dutt. He is making AI that makes AI. We're going to get into it. He is the CEO president and co-founder of DimensionalMechanics. Rajeev, great to see you. >> It's great to meet ya. >> How many Reinvents have you been to? >> This would actually be my second. >> You're second? >> My second. Yeah, it's like- it's- I always feel really energized after coming here. It's like- last year was like heavy AI centered. >> Right, right. >> It was just really all these sessions in AI was really exciting. >> Let's get in to it for the folks that aren't familiar with DimensionalMechanics. What are you guys all about? >> So DimensionalMechanics is about lowering the bar for entry like to most people. So that's kind of our first focus. Our second focus is to make sure that deployment strategies allow you to deploy across any end device. So it's basically intended to be a complete end-to-end capability. >> Around AI? >> Around AI. >> The Artificial Intelligence. >> The Artificial Intelligence. >> Yeah, yeah, yeah. >> Most important part. >> Okay. >> Yeah, so, it's about reducing the bar for entry for Artificial Intelligence so that anybody without even a machine learning background can build very sophisticated models on our platform. In sometimes as little as 14 lines of code. It's just incredibly easy. We've had high school students use us, we've had university professors, who have nothing to do with AI, use us without any problems. And, really the way we do that is that we have an AI that we call the Oracle. We are all Matrix fans. (Jeff laughs) And so what this- the Oracle does is it has a vast knowledge base, has a lot of additional machine learning components and things like that. That essentially allow it adapt and learn based on the kind of problem you're trying to solve. So, every time it solves the same problem, it gets better and better at what it's doing. >> So, so, um... Is it, is it libraries, is it pre-configured, are there specific type of application that it works better on? What's kind of your go to market? >> So basically, think about AI studio as a full server application. So it, what you essentially do- we created our own language called the NeoPulse Modeling language. And the NeoPulse Modeling language, think about it as sort of the SQL for Artificial Intelligence. It does a lot of very complicated things in just a couple of lines. So essentially what you do is you compile it on the machine so when you write the NML code, the NeoPulse Modeling language code. You compile it on the machine, it looks at your data which is sitting in a bucket. It starts training the model. Once the model is ready, you can export the model as a PIM object, so Portable Inference Model object which is one of our creations. And that allows you then to deploy it on to any end target as long as it's running on runtime. And on runtime can be basically sitting in the cloud or on a device. Sometimes we're also looking at right down to FPGA kind of device levels as well. So, extremely low power devices as well as cloud computing, but gives you that flexibility, but it also, which is really important, it makes AI accessible. So anybody without like any background in it- My wife is a radiologist and she's actually looking at using it for her own internal usage... >> And how much do you have to learn? You have to learn the NeoPulse language, right? >> The NML language is really easy to learn. So we had a high school student who spent about a week learning it and so a week later she was ready to start coding and she has built her first models using that. And the way it does that is that you actually, we have a keyword auto inside NML which is context aware, and so when the compiler sees auto it goes out to the Oracle and says hey, I've seen- this person needs help building an architecture or figuring out what function to use or what hyperparameters to use and so on and so on. And the Oracle will come back and say hey, use this architecture, use these hyperparameters, use these settings or functions or these optimizations in your model and... >> So is that doin' that when I'm setting up the model in the first place to give me directions or is looking at the model once I've spun it a couple times and saying wait, this looks like one of these, maybe you should do some of this. >> So what it will look at is your data. So it will actually look in to your data, the type of data, how much data you have, the kind of problem you're trying to solve, how many, for example, if it's a classification problem, how many classes you have, and all of that basically determines the kind of model that it will use. You can also specify the level of complexity that you're interested in, like, are you interested in a very simple model, a complex model, is over fitting a risk at all It will determine all these things behind the scenes >> Right, right. >> based on the kind of problem that you're trying to solve. And the first time it solves it, it will give you a pretty good answer. It's usually very good, but then the second time you solve it or a third time you solve it, it gets better and better and better, because it's able to learn from its mistakes. So, and eventually it gets really good at its job so. >> But it's still, but it's a still a model that I built for that application. You're not drawing kind of pre-configured models down from the Oracle. >> No no, you're basically training it from scratch. >> Right. >> It's entirely intended for custom models. So companies that are- have highly customized data, like radiology or for example, looking at wind stress patterns like in polarized light and stuff like that. So things that are not normally covered by the standard image recognition and so, using things like transfer learning or fine tuning doesn't help in this particular case because if you've trained a model in dogs and cats then like, training it to recognize stress patterns, is just not- >> It's not going to work. >> It's not going to work. >> So you got to prepare for your interviews, looking through your website. You list a really dramatic example of where using your guys technology was like, I don't know, a tenth of the price >> Yes, yeah. >> And I think one month versus six. >> Yeah. >> I wonder if you could share some couple examples that, you know, people are putting this to use. >> Okay, so, we have actually a few. So one of them is with a company. They're focused on kind of a resume matching, so we built them- they were initially quoted by another company at around 450 000 and they were warned that they would not be able to exceed 40% accuracy given the data that they had. We managed to get to about 83/84% accuracy for about under 10 000. So that was like a huge huge reduction. Then the second one was just recently, another company had been spending quite a bit of time and resources on building out a technology to measure heart rate. We were able to look at that and produce, instead of spending like their 20 000 a month or so, we could bring it down to 4000 in total. So these are the kind of sort dramatic reductions in cost that our platform can offer. Stanford University, another great example. These are physicians that we're working with. None of them have any engineering background like, for them, Linux is in itself- That was the hardest thing for them to do was to get used to Linux and so once they start building on our platform it was like they actually built a model that was good enough that they were able to publish at the RSNA, which is like one of the biggest radiology conferences in the world. In this case it was for Pet CT, which is a three-dimensional model because there's a three-dimensional image if you will >> Okay. >> of the human body and so was able to determine whether somebody had a tumor or not and I think they mananged to get, with a very limited data set, about 74/75% accuracy and this was actually at Stanford, so it's a pretty, pretty big name. >> Right. So, Rajeev we're here at AWS Marketplace Experience. You're still a relatively small company. I think you said you had a good size C round, gettin' ready to go out and get a decent A round. >> Right. >> What does it mean to work with a company like Amazon? I mean, as a small company, just to get, just to get an approved vendor set up at Stanford, probably not an easy thing, right. There's all kinds of legal Ts and Cs. >> Exactly. >> As a startup their always worried about whether you're going to be around tomorrow. >> Exactly. >> So your part doin' AWS, so how's that been workin' with AWS and the Marketplace . >> Well firstly, it's definitely given us the Amazon backing in a way, so when people see you're on AWS, they see that connected to you, that automatically gives them a little bit more confidence. >> They vetted you so you must be good. >> Exactly, exactly. And the second is that it gives access to a market that we otherwise wouldn't have had like, if I'm thinking about like producing software that you have to download on our website, that's a very very limited market. You have to attract people to your website and so on and so on. Now it's like we're on the Amazon- there's a machine learning hub on AWS. We're on that, so which means that when people search for machine learning, our name does come up. >> Right, right >> It means it's very easy to launch. You don't have to worry about setting up a machine, worrying about how to configure it. Everything is done automatically, makes life really easy. >> Right. >> On top of that, the AWS team has been- the Marketplace team has been really extremely helpful connecting us with end customers. So very often they will refer people to us. In fact, one of our largest customers came through an AWS referral, so for us it's been nothing but a win-win. >> Right. What about the potential downside? Not to rain on the parade but the old joke used to be if you're a start-up makin' widgets, you know, you just got your first order with Walmart the good news. Bad news is you just got your first order with Walmart. That's opening up a huge global distribution opportunity, I mean in theory, you know, say you got a 1000 customers tomorrow, that might be a little bit of a challenge. >> Yeah, so we actually are starting to hit that. So, we- so our version two was really our go to market version and- which came out earlier this year, and so we've been trying to like wrap up the sales on that side and literally in the last three months. It's like I have not been home for six weeks now because I've been in the far East and traveling and, it' like- because of this heavy customer interaction at this point. So we have a very good story to tell the investors now, like, this has also helped with the investments rounds that we're actually looking at. So we have a very good story to tell the investors that you know, our like invoice list and so on is huge at this point so we need help now. It's actually more about raising, like building up a team now than it is about can we get orders. >> Right. It's really delivering more than sales. >> Exactly. >> I see what you're saying. And so we need to build up a delivery team, we need to- I mean, it's fairly intuitive, but at the same time it's a new technology which means, as with any platform, you're building up a team of evangelist, support individuals and so on. And there's going to be a marketing component as well, so we haven't really driven marketing that much. AWS has been great in kind of doing some of that for us, but we need to of course very actively go out and market. We haven't had that capacity yet. >> All right. We look forward to watching the story unfold and thanks for spending a few minutes with us. >> My pleasure. Thanks, thank you very much. All right, he's Rajeev Dutt, I'm Jeff. Thank you for watching the Cube. We're at the AWS Marketplace and Service Catalog Experience at the Aria, come on by. Thanks for watching. (upbeat music)

(electronic music) >> From the Aria Resort in Las Vegas, it's theCUBE, covering AWS Marketplace. Brought to you by Amazon Web Services. >> Hey, welcome back everybody Jeff Frick here with theCUBE. We're at AWS re:Invent 2018. I can't wait to get the people count. It's crazy we're kicking off nine days of coverage over the next three days. We've got three sets at four, four sets in three locations. But today we're at the AWS MarketPlace and Service Catalog Experience Hub at the Aria. Come on by here's no wait for drinks over here. We're excited to jump in to really, you know, not necessarily the tech but a lot of the processes behind the tech. We've got first time CUBE guest Tolga Tarhan, he's the CTO of Onica. Welcome. >> Thank you. And with him, Jeremy Bendat, he's the Director of Business Development and Partnerships. Welcome. >> Thank you sir. >> So let's jump into it, what does Onica do before we kind of get into the details? >> Yeah go ahead. >> So Onica is what's called an Amazon Premier Consultancy Partner. So all we do is help customers embrace, become educated, and become empowered on top of AWS. So we work primarily with enterprise customers across North America. We have offices both in the United States and in Canada and we're really excited to be here today. >> And how big is the company? How long have you been around? We're about 300 people. We've been doing AWS for a proximately six years but collectively across our team, we've probably close to a 1000 years of experience. >> Probably. >> So there's so much you know, kind of thud out there about you know, rent versus buy and you know. Do Amazon use to be security? But I think we've heard, you know now security is actually more of a tailwind than a headwind for Amazon. >> Right. >> So you know, let's break it down. First off, clearly Amazon is doing well. You know there's a lot of companies built their business on this platform, you guys have as well. What are some of the things, when you first engage with a customer, just kind of AWS 101. How they need to think about this differently than what they've been buying and racking or stacking in their data center? >> So it's the model's different and it's important to not think of AWS as a data center. It's important to embrace the cloud for the cloud. And so there's a pretty, pretty common saying about pets versus cattle. And I want to break that down just a little bit. So you've got pets that you love and you care for them and you've got cattle that are for a purpose. You raise them and then you use them for milk or food. And in the cloud we want that latter model, we want to be able to spin up an instance, do something and have it go away when we're done. And then be responsive to our demand. You know this isn't, I'm not the first one saying this idea on camera but I think the interesting thing to consider is the evolution. So we went from physical hardware at our data centers to virtual machines at our data centers. And at that leap we got higher capacity, we could pack more VMs onto one physical server than we could in the physical world. And we also got some benefits about reliability and ease of configuration. Then we went to the cloud of those VMs and we got cost benefits, we got performance benefits, we got scale benefits. And now in the last couple of years we've gone from that to containers in the cloud and now we're getting even higher density, even more flexible deployments, even quicker scale up times. And then the last piece of this that's the newest is now we're going to serverless, were we're not even managing the operating system or any of the details behind it. It's just all event driven. So that evolution, you don't have to go to the end, right, it's a journey. But it's important to sort of buy in to that journey on your way to the cloud and not just think of it as a place to park. >> Right. >> Some VMs. >> So I would imagine for a lot of people it's really hard to change their behavior. Not to forward buy additional capacity and to actually turn things off. When their not being used. I mean that's not what they've been doing throughout their careers in kind of traditional IT. >> And that's what we want to talk about those types of things on day one. That security conversation, that optimization conversation, just overall automation of the environment. That conversation is happening the very first time we sit down with a customer typically. Because it's something that we want them to embrace and start off with good habits when it comes to not only how their going to use the cloud but how they should not use the cloud. >> Right, cause I think a lot of them, they just leave it one right they. I went to a great session it was a little application party because I like when people turn us off on the weekends and I'm not making revenue because they don't need us right. >> Right. So the high capacity kind of end of the month you know kind of run job, piece of software and it's so counter intuitive but it's really establishing a different type of relationship then you had before. >> That's right, it's that sort of, it's that friendly consumption model alright. Use what you need, pay for what you use, no long term log in. And that applies I think, not just to AWS but to the ecosystem they've built. So now you're seeing SAS vendors, you're seeing partner ecosystems folks adopt that same model. >> Right clearly 60000 plus, whatever a year it's a whole lot of Amazon people but a whole lot of ecosystems people. >> Right. >> So when you approach a customer and they're starting this journey. First of, how many of your customers are just kind of getting started and they're smart enough to know I need to go to a Pro versus how many who got started and unfortunately let the lights on and the Amazon bill is coming up. Wait, wait, wait, you know, this is not what I expected. I'm not been able to manage it. What's kind of the shift of the customers and then we'll get into the each one. >> We see a real healthy mix across the board. >> Yeah. >> We've had the opportunity to work with start ups that have been purchased for over a billion dollars. We've also had the opportunity to work with traditional enterprise shops were it's their very first cloud project and they want to make sure they're setting things up the right way. And what we find is that we'll actually do something that's incredibly advanced for them. Doing a serverless project, for example and that then becomes the referenceable architecture for all future innovative projects that they end up doing. So because of that spread, we see this incredibly wide spread of different projects, different types of customer challenges. And we're able to collectively take that experience and then help individual customers embrace their specific challenges and point them in the right direction and help accelerate that. >> Yeah on that note, it's cloud adoption isn't like a one, a one track journey. Not every company should adopt it the same way. I think the unique value the experience partners bring to the ecosystem, is helping customers find the right path for them. >> Right. >> Not shove them into the one path that we know. >> And how many of them, how many of them grasp this, do most of them come in really on the cost savings side? You know they see an opportunity to be more efficient in their spend on infrastructure? Or how many of them are coming in, saying I see really speed, speed, speed, speed, speed, speed and this is an innovation engine, oh by the way hopefully I'll save a few bucks versus you know running a 50% utilization on my data center. What kind of. >> I think it's all of the above. >> All the above? >> It's all the above. Everyone wants speed and they also want to do it cheaply. And that's why they come to us. And that's why the ecosystem for partners is actually so big. It's because they know there's a better way of doing things and through that collective experience that we bring or that companies on the Marketplace bring, they know they're going to jump start that initiative and end up doing it the right way. Yeah, another big thing I think, probably you guys are making good hay on this opportunity, but you know Andy is going to stand up on Thursday and he's going to speak for a couple of hours. And he's going to have some mega slides, right. He has those mega slides. He's going to have a mega slide on startups that are running on AWS. He's going to have a mega slide on about enterprises that are running on AWS and then he's going to have a mega, mega slide, lord knows how many new services are going to be introduced, with just this sea of services. And I always look for S3. >> (laughs) >> Like where is the little S3 logo on the site. From a consumption point of view. From a customer point of view, yes it's great to have options and yes there's probably a service that can satisfy my need but how am I supposed to know where to go? I mean imagine that's got to be a huge part of your guys value add to help people navigate what is really a giant, you know, selection process opportunity. >> I think most customers understand the basics now, like most customers understand how to do compute on AWS, at least at a starting point. But you're right there's a 100 other services that look and feel they can help you. And our job as partners is to help you identify the right ones for your requirements. The flexibility that AWS provides is part of the value but it also means you have to be responsible and educated about how to use it. Right, what's the biggest, just foil 101, like you know they're all going to, they're all going to step into it, they all do it when people are just kind of getting started on this journey? >> Don't leave your instances on and walk away. (laughs) The amounts of times we've seen that, just because you do pay for what you use. >> Right. >> And so we want to make sure that we're starting off with good habits. And we're building that automation to turn things off if they're not being used. Or that we have those guardrails built in for a customer that hey, is enabling access for a team of people that haven't had access to their own infrastructure previously. >> Right. >> Yeah, it's that whole Dev Ops mentality so go into your cloud journey with a Dev Ops mindset, I know that word has become complicated. But what I mean by that is think about how you're going to automate deployment, think about how you're going to deliver code from where ever it comes to production in a automated way early in the process. Because if you spin up a giant environment, kind of manually and haphazardly, that's when this kind of cost runaway stuff. >> Right. >> Starts to show it's ugly head. >> So we're here in the Marketplace and Service Catalog area here at the Aria so I'm just curious to get your take on working with Amazon as a partner. You guys are different than maybe some of the solution providers or some of the component software people I've been talking to earlier in the day. But as a services company how are they to work with? How do you guys play with the Marketplace and I imagine the Services Catalog is probably big way that you deliver your services to your clients is to teach them how to manage that thing. >> Absolutely, so we recently become one of the launch partners that's on the consulting side that's able to, not only recommend, but also resell products from the AWS Marketplace. And so what that means is we actually get early access or sometimes even private pricing access to Marketplace items and then can offer those to our customers to help accelerate their initiative. One of the cool things that we've done, is we've actually set up direct partnerships with some of the SAS providers that offer their services on Marketplace to help to strategically drop in or offer that within a Service Catalog to our end customers. So they win because of price, they also win because help to vet some of those products. And we're helping to, a lot of the times, accelerate that initiative. >> Yeah there's also the actual SAS providers themselves, so those are actually customers we work with a lot as well. They need to integrate their SAS products with the Marketplace API's but when they do that they get access to purchasing base of AWS. All of a sudden Amazon customers can buy from you with no contracts, no legal paperwork needed. >> Right, right. >> It's already covered by their Amazon agreement. >> So enabling that and taking your SAS product, offering it for sale on Marketplace is another big area that we help customers. >> And that's kind of the ugly backing stuff that you got to, they got to work on right? >> Right. >> All that kind of administration which is really what that Service Catalog is all about actually not just talking about it but deploying it at scale. >> Yeah. >> That's right. >> It fast tracks that procurement cycle they would otherwise have to go through all those legal docs. So if we can, at the click of a button, enable one of our customers to adopt a product or even you know, POC it in a very short period of time, and turn it off, again pay-as-you-go model, the Marketplace open up a ton of doors for these customers. >> Just pay-as-you-go, just pay for what you use, don't leave the lights on. Could be very expensive. (all laughs) >> Well Jeremy, Tolga thanks for a taking a few minutes of your day and have a great show. I'm sure, leave extra time to get to wherever your next appointment is. >> Thank you. >> We can't thank you enough for being here and we're so excited for re:Invent 2018. >> Yeah, thanks a lot. >> Thanks. >> Alright he's Tolga, he's Jeremy, I'm Jeff. You're watching theCUBE, we are at the AWS Marketplace and Services Catalog Experience here at the Aria. Thanks for watching. (electronic music)