>> Narrator: Live from Las Vegas, Nevada, it's theCUBE covering AWS re:Invent 2016. Brought to you by AWS and its ecosystem partners. Now here is your host, John Furrier. >> Hey, welcome back everyone. We are here live in Las Vegas for AWS Amazon Web Services re:Invent 2016, their annual industry conference. The center of the universe in the tech world, 32,000 attendees, broke all records. It grew from 16,000 last year, almost double. I'm John Furrier with theCUBE. We are here getting all of the signal from the noise. Three days of wall-to-wall coverage. Our next guest Ramin Sayar, who's the President and CEO of Sumo Logic. Welcome to theCube, welcome back. >> Very well, thank you much. Nice to be here. >> So, when did you move over to Sumo Logic? >> So interestingly enough, it's two years this Friday. >> Okay so give us a quick update and then I want to dive into the relationship with Amazon. You guys clearly doing big data early. In the wave of the Hadoop is big data, but those other methodologies. Quick history of what you guys are doing now and status of the company. >> Sure. So the company is about seven years old. We were founded, born, actually bred on AWS. We don't have a single server in our place and interesting enough, the premise of founding Sumo, seven and a half years ago, actually was to build a multi-tenant SAAS-based machine data analytics platform to start to address a lot of the security, but also the operational issues that customers were facing. Our founders actually came from a security background and realized that rear-view mirror technologies and looking at historical aspects wasn't good enough. So low and behold, they made a big bet at that time, six years, almost seven years ago, to build exclusively on AWS and today, on an average day, we're ingesting about 70 terabytes of data, we're analyzing over 100 petabytes of data on AWS. >> So talk about the specific implementations. Obviously using all of the services, is there any particular ones, obviously storage, Glacier, you must be using some Glacier, but is it mostly S3, is it ElasticBox Storage? >> S3, C2, we use, obviously, some of the other services, but more importantly, we enable all of the services that AWS provides for their customers to be seamlessly supported by Sumo. So when you log into Sumo or you create a brand new account you give us your credentials, everything from Kinesis to Lambda, to EC2, to ElasticBox Storage, all of those are out-of-the-box that are supported. >> And you guys had a great booth last year. This huge booth, right in the front, with sumo wrestlers. I mean that stole the show in the age of Twitter and Instagram. The share of voice on that was pretty significant. >> Yeah I think there's an underpinning tone there, which is we want to wrangle your data, right. And no one knows big data more than a sumo. And we have earned the right now, after seven years in with 100 petabytes of data that we're analyzing every single day, to be a lot more prescriptive for customers in terms of how to approach the way they build, run, and secure these modern apps. >> We've been following you guys in context of the big data space. I don't think we've had a lot of briefings on the analysis side. I think we should get you guys certainly plugged-in with George Gilbert, our analyst, but what's interesting is the predictive marketing and then a lot of certain verticals were really in early on big data and you guys were there. What's evolved since then? Because now you're seeing, with AWS certainly, you've got streaming, you got redshift doing very well, the services that they've added on over the past few years has been pretty significantly and kind of right in your wheelhouse. >> Yeah. >> John: So what new use-cases are popping up now? What are you guys doing for business? What's some of the profile customers? How are they using Sumo and what's the value for them? >> Great question. So a few things we're seeing. One is with the availability of all these services that Amazon is providing, the cycle time for releasing new code and overall applications is becoming much less. And as a result there's not just a need to move to continuous integration or continuous deployment, it's about continuous updates. So the challenge that brings for a lot of our customers they need real-time visibility. We refer to that as continuous intelligence. So our platform is predicated on the fact that we have near real-time analytics streaming engine that as data is coming in, you can get visibility for your developers, you can get visibility for your operations teams, and you can get visibility for your security compliance teams. So let me give you a couple of examples. You asked for customers, Huddle is one of the customers they spoke about today. >> John: Jeff Frick and I love Huddle. >> Football videos, but you know they support Premier League, they support Aussie rule football, I mean there's a lot of sports right? And so they're uploading video and there's a great service not for just college or high school athletes, but professional athletes to understand their game and analyze their games. So underpinning that, actually Huddle's using Sumo to run their service, to manage their service. Not too distinct from Domo or Qualtrics or other customers like SalesForce, Adobe. We have customers like Land-O-Lakes. We do a lot in media and entertainment, gaming, online retailers. So what do they all have in common? They're either migrating to the cloud, one. Two, they're doing digital transformation or some sort of digital application initiative. Three, they need some way to get visibility real-time into their applications and services from a security perspective, but also an operational perspective. >> What's the driver for customers right now? Because one of the things we hear all the time is people are trying to account for their data. So analytics is kind of like this, well data warehouse was this old mentality, but now smart people started putting into mainstream, but now there's more of a data accountability aspect. The metadata, really valuable. How are customers doing that with you guys? 'Cause I can see them getting their toes wet with Sumo and then getting up and saying "Wow I can use some prescriptive analytics, predictive marketing", whatever the use-case could be, but now you gotta start thinking where's the data coming from and where's it accounted for. Is there a data economy? >> So what's interesting about that, you mentioned metadata, and that's what it's about. Our system, we ingest any type of structured or unstructured data. And we actually analyze a lot of the metadata. In fact, like I mentioned earlier, we're analyzing over 100 petabytes every single day on AWS. And so what we're able to actually help our customers do now is be much more prescriptive and provide insights as to the 1300 customers that are on Sumo, the 74% of them that run on AWS, about a quarter of them are using things like Lambda. Another two-thirds are using EC2, but how? And what types of queries are they doing? And what types of services are they building with Docker containers, or Mesosphere, or others of that type of services? So now we've actually entered a position where we're actually the trusted advisor for a lot of these companies in moving to the cloud, building new, modern apps because we've been doing it for seven and a half years. >> Yeah. >> Ramin: And so the metadata starts to become important because we actually put out a recent survey we called "The state of the modern app". And that whole report was premised on the 100 plus petabytes every single day over a six month period, how are customers using AWS, what services are they using and not using, and what should you consider? The number one thing we found in that report was only half of the customers, of which 74% of the 1300 run on AWS, were actually doing anything with CloudTrail with respect to security. That means the other half are potentially vulnerable to breach. >> John: Yeah. >> John: What percentage? >> 50%. >> So half were exposed. >> Half are exposed >> John: No audit at all. >> Ramin: No audit at all. So now we're actually proactively notifying them saying, "Hey listen for your type of deployment you're using these types of common services. Others similar to you should use the following." >> That brings up a good point. So let's unpack that because what that brings up is a lot of people get into data and they hear all this stuff in the news. Oh big data driven and you know they can drink the Kool-Aid and go "Okay I buy that vision." But there's some pretty urgent issues on the table that people got to deal with in the enterprise and or if they're cloud native and that is security. You mentioned it. I mean that has become such the low-hanging fruit for data analytics. So Splunk being very successful with that. Cyber, we talked to Teresa Carlson earlier. Their public-sector business is exploding, certainly with the CIA and others. I'm sure you guys got some of those clients. But that highlights that yeah that's all fine and dandy to do some nice stuff over here to figure out recommendation engine for this or that, when you got security holes out there. Are you seeing that on your end too? >> Well interestingly enough, that's how we started. We started with the goal of providing analytics and more importantly we wanted to democratize analytics initially for security in the cloud. And so, we actually before Amazon Web Services really built things like PKI or public key encryption or things around encrypting data transfer, we had built that into our system and service. So what we actually are able to do now is not only show how we can encrypt the data and do all this services, but show them how they should actually start to use CloudTrail and how they should architect these modern apps, and what things they should be concerned about from a vulnerability and risk point of view. One of the newest products that we just announced is in early-access around threat vulnerability and threat intelligence because now we're getting a 360 degree view for a lot of our customers because you saw today the hybrid announcement right? That's going to be there for a while. What Sumo allows a lot of our customers to do is from their on-premise data center to their CDNs to all their SAAS applications like SalesForce, or WorkDay, or DropBox, or Box to all those things running on ASH or Amazon and the like, we provide a whole 360 view. And we can actually now >> John: So you get real-time >> John: as well on that? >> Real-time. >> Ramin: So our system and service is predicated on a real-time data streaming engine. >> Yeah so you guys can coexist in multi-cloud world. >> Absolutely. >> John: That's your premise. >> Ramin: No pun intended right? (laughing) >> All right, let's talk about contextual data and what companies should do and why they should get you guys involved in the use-cases of going forward, planning. A lot of conversation here at re:Invent is AWS 2.0. They go on to the next level, Enterprise, a little bit more complicated than say Cloud Native greefield apps. How should they be thinking about their data? You've been doing this for seven years in AWS and you probably have clients that aren't on AWS some are, some aren't, that's the makeup. But generally what's the architecture? What should be holistic concept for CIO, CXO, or down to the practitioner level, what's the guiding principles? >> It starts with a fundamental principle of form follows function. And you know this is a sports analogy, but if you're not formed right, you're not going to function right. So a lot has to do with a conscious decision customers need to make in terms of how they're going to structure their teams and whether they're going to move to a true dev-ops model where they're pushing hourly, daily, weekly, and whether they need to or not for certain applications versus others. And then it goes into function in terms of how they start to architect their applications. What services they need to use. And we've actually learned that over seven and a half, eight years ourselves, seven which years were running on AWS. And so the advice often times we give to a lot of our customers is understand where the mission critical workloads that you need to migrate, categorize those. Second is, which of the greenfield apps you're building and why. And what type of retention and security policies do you need and these are the common services you should probably consider with AWS. And then third is, the other set of applications you don't really care about, leave them for now. Focus on your expertise here. >> It's really triaging the sequence or order of app rollout, basically. Well thanks for coming on theCube. Really appreciate Ramin. I want you to take a minute to close us out and talk about for the folks watching, what's new with Sumo Logic? Why should they be working with you? What's the pitch? What's new? What's relevant for you guys? >> Great, so obviously we're a big data company, but more specifically our service and our strategy was predicated on democratizing analytics. And so we refer to that as continuous intelligence. And so as this digital transformation is taking place, and we're seeing it here, we're seeing it across every part of the businesses, we are well suited for every company that's got either a migration effort or an active, new project going on AWS. And so we can provide a simple, secure, highly scalable machine data analytics platform as a service and that's what Sumo is all about. >> And your business plan for the next year is what? Knock down more customers? Do more product development? All of the above? Channel? What's the strategy? >> So good question. So on one hand we're introducing a new product. We've kind of hinted to some of that today with some threat intelligence. Second is, we just introduced a new product about a month ago that we're starting to monetize. It's about semi-structured data. And third is, we're gonna start to really expand our routes to market and channels. One of the things that we participated in recently with Amazon is the new Amazon SAAS marketplace program. We're in with a handful of companies that participate in design and development there. And so that allows very seamlessly for customers to come try, buy, and decide whether they go month-to-month, semi-annually, or year. >> Well that will accelerate the operational nature of your product. >> Absolutely, but that's the way we sell today. In fact, our whole business model is predicated on land and expand. You're probably familiar with this whole notion of cohorts. >> Yup. >> And that dollar retention. Well the median, if you look at PACCrest and Morgan Stanely and the other firms, tend to be 103 to 105. Best in class tends to be 110 to 115. We've been well north of 160 for 19 straight quarters. >> Well Jassie said that on his keynote today. The bombastic days of handwaving are over. If you don't see it right there, the value, in front of you, don't buy it. >> Don't buy it. >> It's really the marketplace's vision. >> That's marketplace vision and that's what we're all about at Sumo Logic. >> Ramir Sayar, President and CEO of Sumo Logic. Congratulations on your success. Continued success. This is theCube bringing you all the action live in Las Vegas for re:Invent 2016, I'm John Furrier. Be right back with more after this short break. You're watching theCube.