Buddy Brewer, New Relic | AWS re:Invent 2021
(upbeat music) >> Welcome back to theCUBE's continuous coverage of AWS re:Invent 2021 I'm Lisa Martin. This is our third day here on set We've got two live sets, two remote studios, over a hundred guests on the program and a lot going on with AWS and its ecosystem of partners am pleased to welcome back one of our Cube alumni, Buddy Brewer, the GVP & GM of product partnerships at New Relic. Welcome back, Buddy. Good to have you. >> Thanks it's great to be here >> Great to be in an in-person event isn't? >> No kidding it's really amazing to see everybody out here and after spending so much time on zoom calls, we had a lot of really great moments among the team and the booth playing the game of seeing if people's height matched up with >> (laughs) >> What your expectation was because so many of the people we work with >> Never mind. >> We've only known over zoom. >> Yes ,and zoom has been a savior for all of us we've been doing so much recording on zoom at the same time it's great to be here in person and seeing what a safe job AWS has done with getting I from hearing upwards of 30,000 people in here that are here in person. So talk to me about you lead the technology partnerships at New Relic. Talk to me about your role, and then we'll get into the partnership with AWS. >> Yeah, absolutely. Well, you know, the point about zoom, it's fascinating. Like you said, that just having the ability to communicate with people has been such a key enabler of being able to make progress and to continue to lead our personal and our professional lives despite the pandemic I mean, imagine what it would have been like if this had happened 10 years ago, even, but certainly 50 years ago >> Right. or something like that, right? Like everything would have ground to a halt and technology took on such an amazing, you know, critical role in allowing us to do all of these things and so at New Relic, we're all about helping people make sure that all of this software works correctly. And so observability helps people understand the detail level about everything from the front end, the end user experience to every single piece that happens along the path of delivering that experience all the way down to the infrastructure into the network. But my role at New Relic is also to help all of the other tools that software developers use every day to create those experiences that they connect into their observability platform so that they can understand all of those details and make sure that people are able to continue doing things that have become really so basic to life like ordering groceries or getting food, or, you know, communicating with a loved one over something like zoom. >> Yeah the things that to your point, if this had happened, you know, five, 10 years ago, it would have been a completely different story. We've been able to function really well and one of the things too, that, you know, I noticed yesterday and today, you probably did as well with the plethora, typical AWS the plethora of announcements, the amount of innovation that's going on, the customer flywheel that we've just seen this acceleration of technology and what it's enabling, but the observability portion is really key you talk about, you know, the developers need to the whole SDLC they need to be able to understand exactly what's going on because at the end of the day, whether it's a consumer or an enterprise of the other end of the spectrum, we need to know exactly what's going on because people's patience is far thinner these days the pandemic showed is that there is really no having access to real-time data. Isn't a luxury anymore it's really a necessity. >> Right, yeah, absolutely. >> Talk to me about some of these so a lot of announcements coming up from AWS, you guys talk to me about the partnership, what you guys are doing there. And some of the things that are exciting on that front. >> Yeah, AWS is a really key partner for us. We're big users of AWS ourselves for our observability platform and all of our infrastructure and, you know, we've had our own journey as a 13 year old business that started out pre cloud and moving our own infrastructure to the cloud. And then along that journey, we've worked closely with AWS and we've built a lot of joint solutions to help people who are moving to the cloud themselves or who are cloud native to understand all of the details about what's happening in that software so we have over 60 different integrations to all of the different tools with Amazon that you can use on the cloud from data storage, to EKS on Fargate and all of that stuff. And then we recently announced a five-year strategic agreement with Amazon to make it even easier for customers to adopt New Relic if they're building in Amazon AWS and so you know, we're in their marketplace, we have an offering for startups, for people who are just getting started that, you know, provides really simple and fast on-ramps with discounts and things like that. That's all designed to help people, software developers in particular, focus on what matters most to them, which is building great experiences for their customers. You know, you mentioned that the SDLC and this is one of the things that, you know, our mission at New Relic is to make observability a daily data-driven habit for developers across all phases of the software delivery life cycle. The problem with observability and how it's used today is that it's only used in the run phase by most people they use it when the software is on fire to put the fire out we believe that, that telemetry has tremendous strategic value in the plan, build and deploy phases of software development as well. And so partnerships like AWS allow us to unlock the accessibility of that data across all of those different phases for people who software developers are as a result in many ways that the things that we were talking about earlier with the expectations that the pandemic has placed on how software has to work, it's not an option they're busier, they're under more pressure than they've ever been before and so we want to help them relieve that pressure with tools that help them do their jobs better. >> Relieving that pressure is key there is so much pressure on developers I mean, these days from observability to security and that sort of thing, but it sounds like one of the things that you're also fundamentally doing is really shifting that observability left and helping them from a cultural perspective, it seems like almost a shift, but you're trying to make things easier for them giving them more tools and to unlock what they're not seeing right now. >> That's right and you know, the interesting thing about it is everyone realizes that observability is critical to, you know, successful software businesses so for example, we did a survey recently of 1300 software developers and IT decision makers and executives, and found that among the C-level executives that were surveyed 80% of them expected to increase their observability budget and 20% of those expected to increase it significantly. However, that same survey found that a very small percentage of those who we actually surveyed feel that they have a mature observability practice today. And when we unpack the reasons why in the survey, we found that most of them reduce down to basically this issue of they just don't have enough time to instrument all of the software, especially in a world where the shift to the cloud has driven a change in architecture where monoliths have been torn down and replaced by hundreds, or may be even thousands of microservices. >> Right. >> And we're in an era now where if observability isn't really, really easy and incredibly fast and simple to execute on then software developers can no longer instrument fast enough to keep up with the pace of the software that they're delivering and so what that leads to is visibility gaps, visibility gaps lead to poor customer experiences. And so what we're trying to do, and we've been on this massive simplification of our own platform to make it, you know, incredibly cost-effective at just 25 cents a gigabyte for ingestion and really simple licensing seat based licensing, where you get access to all of our tools to make it really simple and to take simply minutes to get observability on all those different pieces. >> If simplicity is a word that we throw around a lot, but it's really critical element and it's interesting to understand how do you actually facilitate that? You talked about, you know, kind of the 80 20 rule there. >> Yeah. >> A lot of the organization's not on that maturity curve with observability, how does New Relic and its ecosystem of partners like AWS how do you help have those conversations within organizations in any industry tell them, understand how you can actually simplify that and unlock that visibility, knowing that it's not only a matter of software development, but it's a competitive differentiator. It's also something that can damage a brand if they're not top of it. >> Yeah, we launched a re-imagined version of our partner ecosystem really our entire integration ecosystem about six weeks ago on October 13th called New Relic Instant Observability. And one of the central goals of New Relic IO, which we call it for short is to make it take just like five minutes for people to instrument something. So in the old way, what people had to do is if they wanted observability, they had to go learn about an observability vendor then they had to go install it, figure out how all that works and then they could get to solving their problem, which might've just been simply instrumenting a Kafka you know and so what we want to do is just keep people in that mode if all you wanted to do is instrument Kafka, then go find the Kafka instrumentation tile on New Relic and observability and then there's a guided install process that takes you through that and at the end you've instrumented Kafka and if you want to add something else like EKS Fargate from Amazon, or if you want to add something else like a Java service, you can simply click more of those guidance installs and add within minutes in an incremental way without having to stop and do a whole vendor evaluation to do so in fact, one of the other things that we launched recently is a free tier that's free forever. So there's no trial process or anything you don't have to put in a credit card if all you want to do is instrument this one thing right now, you can go through this process provision a free account you get access to all of our functionality for one user and ingest up to a hundred gigabytes of telemetry data for free within minutes. And so what we're trying to do is take all of that adoption friction out so that people aren't fighting with their instrumentation so much, and again, they can get back to doing what they really want to do in the first place, which has built great experiences for their end users. >> Great experiences for the end users but that translates to employee experience that translates to an end user customer experience, which translates back to brand reputation. I'm just wondering, you know, you're focused on the developers and we've been hearing a lot about the last two and a half days, a big focus on developers has observability kind of escalated up and its evolution up the stack within organizations is this a C-suite concern? Is this a board level concern? where does this fit now? and what's the vision of New Relic to deliver on that? >> With observability? >> Yes. >> Yeah, 90% of those in the survey that I was talking about felt that observability was not just a tool that they needed to use, but strategically critical to their business and, you know, this goes back to, as we know, and especially as a result of the intensity on the importance of software coming out of the pandemic, your digital business is your business these days. And so if you don't understand what's happening in that software and you can't move quickly, then you know you're really in trouble in terms of trying to succeed in a highly competitive environment and that goes back to again, one of our core beliefs is that all of this telemetry data that people have been collecting about how their software operates is so useful in contexts outside of just when there's a problem in production. Imagine if you could take that information and you could actually put it inside the IDE, which is something that we did with a recent acquisition of a company called CodeStream. We can take this telemetry data and put it inside the IDE so that as developers are writing the software, they know where those issues are. You can click straight from a stack frame, for example, inside of our, where we show all of our errors in a capability called Error's inbox and shoot right into your IDE and go see where the line of code is that caused that error, shortening that feedback loop and unlocking this really big investment that a lot of companies make in telemetry data earlier in the software life cycle, we believe is the future of observability and we want to help people get there. >> Well, the observability is really key for organizations these days because we've been hearing every company these days has to be a data company. >> Yeah. >> And it's one thing to say that it's a whole other thing to be able to implement it and observability is absolutely critical to that as being able to take that data and apply it in different contexts to really enable that business to be digital which is absolutely table-stakes these days to be successful and to deliver that customer experience ultimately. >> Yeah. >> That's what it all do. >> Yeah, absolutely. And you know, the other thing is really hard about this problem when I talk with our customers and we found this in the survey as well, is that, you know, software developers, don't just use one tool to create software they use a lot of tools in fact, 13% of those that we surveyed use 10 or more tools. >> Whoa. >> Just for the observability piece. And so, you know, obviously we're always trying to expand organically what we do inside of our platform to cover more and more use cases, but an equally important part of our strategy, if we really want to make observability a data-driven daily habit for people is to find all of those other, you know, really well-built amazing tools that those developers use and find valuable ways to integrate with them. And so that's the other part of our ecosystem that we've built out is this ability to take all of the other tools that you use and wire them into New Relic so that, for example, if you're using, let's say Lacework for security then you can, you know, if someone's installed a Bitcoin miner on your infrastructure somewhere, you can quickly navigate because of that integration from a poor customer experience through the infrastructure that's suffering may be with, you know, a lot of memory pressure, and a lot of CPU being used for this Bitcoin miner and then find out that, you know, through the integration where the miner was installed, how it got installed so that you can remediate those types of issues and connecting those pieces together, making software truly interoperable is another thing that's really critical to our mission at New Relic. >> It is critical to not only to the developers, but to the organizations and their success as businesses these days Buddy thank you for joining me, talking about what's going on at New Relic What's new, how you're really empowering those developers and all of the downstream positive effects that, that leads to we appreciate your time. >> Thank you ,thanks for having me. >> All right, you are Buddy Brewer I'm Lisa Martin you're watching theCUBE, the global leader in live tech coverage. 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Jay Snyder, New Relic | AWS re:Invent 2020
>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. >>Hello and welcome to the Cube virtual here with coverage of aws reinvent 2020. I'm your host, Justin Warren. And today I'm joined by J. Snyder, who is the chief chief customer officer at New Relic J. Welcome to the Cube. >>It is fantastic. Me back with the Cube. One of my favorite things to do has been for years. So I appreciate you having me. >>Yes, a bit of a cube veteran. Been on many times. So it's great to have you with us here again. Eso you've got some news about new relic and and Amazon away W s strategic collaboration agreement. I believe so. Maybe tell us a bit more about what that actually is and what it means. >>Yes. So we've been partners with AWS for years, but most recently in the last two weeks, we've just announced a five year strategic partnership that really expands on the relationship that we already had. We had a number of integrations and competencies already in place, but this is a big deal to us. and and we believe a big deal. Teoh A W s Aziz Well, so really takes all the work we've done to what I'll call the next level. It's joint technology development where were initially gonna be embedding new relic one right into the AWS management console for ease of use and really agility for anyone who's developing and implementing Ah cloud strategy, uh, big news as well from an adoption relative to purchase power so you can purchase straight through the AWS marketplace and leverage your existing AWS spend. And then we're gonna really be able to tap into the AWS premier partner ecosystem. So we get more skills, more scale as we look to drive consulting and skills development in any implementation for faster value realization and overall success in the cloud. So that's the high level. Happy to get into a more detailed level if you're interested around what I think it means to companies but just setting the stage, we're really excited about it as a company. In fact, I just left a call with a W S to join this call as we start to build out the execution plan for the next five years look like >>fantastic. So for those who might be new to new relic and aren't particularly across the sort of field of observe ability, could you just give us a quick overview of what new relic does? And and then maybe talk about what the strategic partnership means for for the nature of new relics business? >>Yes, so when I think about observe ability and what it means to us as opposed to the market at large, I would say our vision around observe ability is around one word, and that word is simplification. So, you know, I talked to a lot of customers. That's what I do all the time. And every time I do, I would say that there's three themes that come up over and over. It's the need to deliver a customer experience with improved up time and ever improving importance. It's the need to move more quickly to public cloud to embrace the scale and efficiency public cloud services have to offer. And then it's the need to improve the efficiency and speed of their own engineering teams so they can deliver innovation through software more quickly. And if you think about all those challenges And what observe ability is it's the one common thread that cuts across all those right. It's taking all of the operational data that your system admits it helps you measure improve the customer, experience your ability to move to public cloud and compare that experience before you start to after you get there. The effectiveness of your team before you deploy toe after you get there. And it's all the processes around that right, it helps you be almost able to be there before your there there. I mean, if that makes sense right, you'll be able to troubleshoot before the event actually happens or occurs. So our vision for this is like I talked about earlier is all about simply simplification. And we've broken this down into literally three piece parts, right? Three products. That's all we are. The first is about having a much data as you possibly can. I talked about admitting that transactional telemetry data, so we've created a telemetry data platform which rides on the world's most powerful database, and we believe that if we can take all of that data, all that infrastructure and application data and bring it into that database, including open source data and allow you to query it, analyze it and take action against it. Um, that's incredibly powerful, but that's only part one. Further, we have a really strong point of view that anybody who has the ability to break production should have the ability to fix production. And for us, that's giving them full stack observe ability. So it's the ability to action against all of that data that sits in the data platform. And then finally, we believe that you need to have applied intelligence because there's so many things that are happening in these complex environments. You wanna be able to cut through the noise and reduce it to find those insights and take action in a way that leverages machine learning. And that, for us, is a i ops. So really for us. Observe ability. When I talked about simplification, we've simplified what is a pretty large market with a whole bunch of products, just down to three simple things. A data platform, the ability to operationalize in action against that data and then layer on top in the third layer, that cake machine learning so it could be smarter than you can be so it sees problems before they occur. And that And that's what that's what I would say observe, ability is to us, and it's the ability to do that horizontally and vertically across your entire infrastructure in your entire stack. I hope that makes sense. >>Yeah, there's a lot of dig into there, So let's let's start with some of that operational side of things because I've long been a big believer in the idea of cloud is being a state of mind rather than a particular location on. A lot of people have been embracing Cloud Way Know that for we're about 10 or so years. And the and the size of reinvent is proven out how popular cloud could be. Eso some of those operational aspects that you were talking about there about the ability to react are particularly like that. You you were saying that anyone who could break production should be able to fix production. That's a very different way of working than what many organizations would be used to. So how is new relic helping customers to understand what they need to change about how they operate their business as they adopt some of these methods. >>Well, it's a great question. There's a couple of things we do. So we have an observe ability, maturity framework by which we employ deploy and that, and I don't want to bore the audience here. But needless to say, it's been built over the last year, year and a half by using hundreds of customers as a test case to determine effectively that there is a process that most companies go through to get to benefits realization. And we break those benefit categories into two different areas, one around operational efficiency and agility. The other is around innovation and digital experience. So you were talking about operational efficiency, and in there we have effectively three or four different ways and what I call boxes on how we would double, click and triple click into a set of actions that would lead you to an operational outcome. So we have learned over time and apply to methodology and approach to measure that. So depending on what you're trying to do, whether it's meantime to recover or meantime, to detect, or if you've got hundreds of developers and you're finding that they're ineffective or inefficient and you want to figure out how to deploy those resource is to different parts of the environment so you can get them to better use their time. It all depends on what your business outcome and business objective is. We have a way to measure that current state your effectiveness ply rigor to it and the design a process by using new relic one to fill in those gaps. And it can take on the burden of a lot of those people. E hate to say it because I'm not looking to replace any individual. It's really about freeing up their time to allow them to go do something in a more effective and more effective, efficient manner. So I don't know if that's answering the question perfectly, but >>e don't think there is a perfect answer to its. Every customer is a bit different. >>S So this is exactly why we developed the methodology because every customer is a little different. The rationale, though, is yeah, So the rationale there's a lot of common I was gonna say there's a lot of common themes, So what we've been able to develop over time with this framework is that we've built a catalog of use cases and experiences that we can apply against you. So depending on what your business objectives are and what you're trying to achieve, were able to determine and really auger in there and assess you. What is your maturity level of being able to deliver against these? Are you even using the platform to the level of maturity that would allow you to gain this benefit realization? And that's where we're adding a massive amount of value. And we see that every single day with our customers who are actually quite surprised by the power of the platform. I mean, if you think traditionally back not too far, two or even three years. People thought of new relic as an a P M. Company. And I think with the launch this summer, this past July with new relic one, we've really pivoted to a platform company. So while a lot of companies love new relic for a PM, they're now starting to see the power of the platform and what we can do for them by operationally operationalize ing. Those use cases around agility and effectiveness to drive cost and make people b'more useful and purposeful with their time so they can create better software. >>Yeah, I think that's something that people are realizing a lot more lately than they were previously. I think that there was a lot of TC analysis that was done on a replacement of FTE basis, but I think many organizations have realized that well, actually, that doesn't mean that those people go away. They get re tasked to do new things. So any of these efficiency, you start with efficiency. And it turns out actually being about business agility about doing new things with the same sort with the same people that you have who now don't have to do some of these more manual and fairly boring tasks. >>Yeah, just e Justin. If this if this cube interview thing doesn't work out for you were hiring some value engineers Right now it sounds like you've got the talk track down perfectly, because that's exactly what we're seeing in the market place. So I agree. >>So give us some examples, if you can, of maybe one or two off things that you've seen that customers have have used new relic where they've stripped out some of that make work or the things that they don't really need to be doing. And then they're turning that into new agility and have created something new, something more individual. Have you got an example you could share with us? >>You know, it's it's funny way were just I just finished doing our global customer advisory boards, which is, you know, rough and tough about 100 customers around the world. So we break it into the three theaters, and we just we were just talking with a particular customer. I don't want to give their name, but the session was called way broke the sessions into two different buckets, and I think every customer buys products like New Relic for two reasons. One is to either help them save money or to help them make money. So we actually split the sessions into those two areas and e think you're talking about how do we help them? How do we help them save money? And this particular company that was in the media industry talked at great length about the fact that they are a massive news conglomerate. They have a whole bunch of individual business units. They were decentralized and non standardized as it related to understanding how their software was getting created, how they were defining and, um, determining meantime to recover performance metrics. All these things were happening around them in a highly complex environment, just like we see with a lot of our customers, right? The complexity of the environments today are really driving the need for observe ability. So one of the things we did with them is we came in and we apply the same type of approach that we just discussed. We did a maturity assessment for them, and we find a found a variety of areas where they were very immature and using capabilities that existed within the platform. So we're able to light up a variety of things around. Insights were able to take more data in from a logging perspective. And again, I'm probably getting a little bit into the weeds for this particular session. But needless to say, way looked at the full gamut of metrics, events, logs and traces which was wasn't really being done in observe, ability, strategy, manner, and deploy that across the entire enterprise so created a standard platform for all the data in this particular environment. Across 5th, 14 different business units and as a byproduct, they were able to do a variety of things. One, the up time for a lot of their customer facing media applications improved greatly. We actually started to pivot from actually driving cost to showing how they could quote unquote make money, because the digital experience they were creating for a lot of their customers reduced the time to glass, if you will, for clicking the button and how quickly they could see the next page, the next page or whatever online app they were looking to get dramatically. So as a byproduct of this, they were about the repurpose to the point you made Justin. Dozens of resource is off of what was traditionally maintenance mode and fighting fires in a reactive capability towards building new code and driving new innovation in the marketplace. And they gave a couple of examples of new applications that they were able to bring to market without actually having to hire any net New resource is so again, I don't want to give away the name, the company, it maybe it was a little too high level, but it actually plays perfectly into exactly what what you're describing, Um, >>that is a good example of one of those that one of the it's always nice to have a specific concrete customer doing one of these kinds of things that you you describe in generic terms. Okay. No, this is this is being applied very specifically to one customer. So we're seeing those sorts of things more and more. >>Yeah, and I was gonna give you, you know, I thought about in advance of this session. You know, what is a really good example of what's happening in the world around us today? And I thought of particular company that we just recently worked with, which is check. I don't know if you're familiar with keg, if you've heard of them. But their education technology company based in California and they do digital and physical textbook rentals. They do online tutoring an online customer services. So, Justin, if you're like me or the rest of the world and you have kids who are learning at home right now, think about the amount of pressure and strain that's now being put on this poor company Check to keep their platform operational 24 77 days a week. So that students can learn at pace and keep up right. And it's an unbelievable success story for us and one that I love, because it touches me personally because I have three kids all doing online, learning in a variety of different manners right now. And, you know, we talked about it earlier. The complexity of some of the environments today, this is a company that you would never gas, but they run 500 micro services and highly complex, uh, technical architectural right. So we had to come in and help these folks, and we're able to produce their meantime to recover because they were having a lot of issues with their ability to provide a seamless performance experience. Because you could imagine the volume of folks hitting them these days on. Reduce that meantime to recover by five X. So it's just another example we're able to say, you know, it's a real world example. Were you able to actually reduce the time to recover, to provide a better experience and whether or not you want to say that saving money or making money? What I know for sure is is giving an incredible experience so that folks in the next generation of great minds aren't focused on learning instead of waiting to learn right, So very cool. >>That is very cool. And yes, and I have gone through the whole teaching kids >>about on >>which is, uh, which it was. It was disruptive, not necessarily in a good way, but we all we adapted and learned how to do it in a new way, which is, uh, it was a lot easier towards the end than it was at the beginning. >>I'd say we're still getting there at the Snyder household. Justin, we're still getting >>was practice makes perfect eso for organizations like check that who might be looking at JAG and thinking that that sounds like a bit of a success story. I want to learn more about how new relic might be able to help me. How should they start? >>Well, there's a lot of ways they can start. I mean, one of the most exciting things about our launch in July was that we have a new free tier. So for anybody who's interested in understanding the power of observe ability, you could go right to our website and you can sign up for free and you can start to play with new relic one. I think once you start playing for, we're gonna find the same thing that happens to most of the folks to do that. They're gonna play more and more and more, and they're gonna start Thio really embrace the power. And there's an incredible new relic university that has fantastic training online. So as you start to dabble in that free tier, start to see with the power and the potential is you'll probably sign up for some classes. Next thing you know, you're often running, so that is one of the easiest ways to get exposed to it. So certainly check us out at our website and you can find out all about that free tier. And what observe ability could potentially mean to you or your business. >>And as part of the AWS reinvent experience, are they able to engage with you in some way? >>It could definitely come by our booth, check us out, virtually see what we have to say. We'd love to talk to them, and we'd be happy to talk to you about all the powerful things we're doing with A. W. S. in the marketplace to help meet you wherever you are in your cloud journey, whether it's pre migration during migration, post migration or even optimization. We've got some incredible statistics on how we can help you maximize and leverage your investment in AWS. And we're really excited to be a strategic partner with them. And, you know, it's funny. It's, uh, for me to see how observe ability this platform can really touch every single facet of that cloud migration journey. And, you know, I was thinking originally, as I got exposed to this, it would be really useful for identity Met entity relationship management at the pre migration phase and then possibly at the post migration flays is you try to baseline and measure results. But what I've come to learn through our own process, of moving our own business to the AWS cloud, that there's tremendous value everywhere along that journey. That's incredibly exciting. So not only are we a great partner, but I'm excited that we will be what I call first and best customer of AWS ourselves new relic as we make our own journey to the cloud >>or fantastic and I'm I encourage any customers who might be interested in new relic Thio definitely gone and check you out as part of the show. Thank you. J. J. Snyder from New Relic. You've been watching the Cube virtual and our coverage of AWS reinvent 2020. Make sure that you check out all the rest of the cube coverage of AWS reinvent on your desktop laptop your phone wherever you are. I've been your host, Justin Warren, and I look forward to seeing you again soon.
SUMMARY :
It's the Cube with digital coverage Welcome to the Cube. So I appreciate you having me. So it's great to have you with us here again. so you can purchase straight through the AWS marketplace and leverage your existing AWS spend. across the sort of field of observe ability, could you just give us a quick overview of what new relic So it's the ability to action So how is new relic helping customers to understand what they need to change about of actions that would lead you to an operational outcome. e don't think there is a perfect answer to its. to the level of maturity that would allow you to gain this benefit realization? new things with the same sort with the same people that you have who now don't have to do some of these more If this if this cube interview thing doesn't work out for you were hiring some So give us some examples, if you can, of maybe one or two off things that you've seen that customers So one of the things we did with them is we came in and we apply the same type of approach doing one of these kinds of things that you you describe in generic terms. X. So it's just another example we're able to say, you know, And yes, and I have gone through the whole teaching kids but we all we adapted and learned how to do it in a new way, which is, I'd say we're still getting there at the Snyder household. I want to learn more about how new relic might be able to help me. mean to you or your business. W. S. in the marketplace to help meet you wherever you are in your cloud journey, whether it's pre migration during Make sure that you check out all the rest of
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Todd Osborne, New Relic & Josh Hofmann, AWS | AWS re:Invent 2019
>>LA from Las Vegas. It's the cube covering AWS reinvent 2019 brought to you by Amazon web services and along with its ecosystem partners. >>Hey, welcome back everyone. Live cube covers here at reinvent 2019 in Las Vegas. I'm John, your host extracting the signal from the noise with Stu Miniman analysts at Silicon angle, the cube and Wiki bond. We've got two great guests talking about the ecosystem and the future of software and how customers are consuming it in the cloud. Todd Osborne G VP of alliances and channels at new Relic and Josh Hoffman, GM and global lead of ISB partner ecosystem of AWS. Guys, welcome to the cube. Thanks so much for having us. So guys, we're the top story to me at this show. So far as I'll see infrastructure at scale. The software development life cycle is continuing to evolve. We are more automation, more as Andy says, heavy lifting's being done, which means that application developers are going to get more and more goodness. Dev ops created infrastructure as code check. Now we've got data, tons of data everywhere. So we're, we're seeing an ISB Renaissance more software. You guys are out there writing software. So what you guys take so far of the impact of the ISV here, Josh, to talk about that because this is a big story, does >>massive, I mean if you walk around the floor, you'll see folks that are automating new ways of doing dev ops. You're looking at new ways of securing serverless functions. Um, you're looking at new types of storage. So you could go across every category of technology in this room and you will see an incredible amount of batim innovation. Our partners are really driving that. >>Talk about the relationship with AWS, new Relic, longstanding partnership. Where is it now? Where's it going? It's, I mean, it's off the charts. So even just the last year, the amount of momentum we've built together as has been fantastic. So we participated in a whole bunch of different programs. We've got dozens, hundreds of joint customers that were doing things together. I mean, just look at this event. It's just a, it's just astonishing. We operate in a lot of different partner models, um, from, from reselling, uh, with, with various partners to building technology programs to participating, uh, with Josh and team and our friends. Uh, our friend Dave McCann and team on a eight of us marketplace. Just a whole host of different things that just continue to, to, uh, expand the partnership at scale. And the consumer is ation of the software, the procurement process she's had Teresa crossing off from public sector, whether you're in the public sector or commercial procurement still stuck in 1995 it feels like, right? >>I mean, like, are they modernizing? They've got a lot more ways to get software with the marketplace. What are you guys seeing with customers? Is it really that bad? Am I over over it? It's not that bad, but you know what I'm saying? I mean, so from my perspective, one of the cool we're seeing is, um, AWS in the cloud. Providers are driving a consolidation of budget of modern stuff, of cloud, of, of all the new things that companies want to do. That's all getting consolidated either in a new groups or new budget cycles and AWS is making it really easy to participate in those. So through programs like the marketplace, through various other other initiatives that we're doing, we can combine what we want to achieve with, with what the customer wants to achieve, which is speed to market with, which is with what AWS wants to achieve, which is faster adoption of all the different services and bringing the right ecosystem along with it. >>So the modernization of the procurement cycles along with the monetization of the technology is really cool to watch. Well, I wanted to ask that before. I want to get to the question that I'm that interested Andy Jassy his point on this keynote, Hey, this is the first time I heard him talk like this. We see two types of developers and two types of customers. People want the low level building blocks, the builders and then a new set of customers who want solutions. Yup. This is, this is your wheelhouse. This is where the solution network kind of ecosystem is evolving very quickly. Can you guys share your observations on what that, what he means by that and what does it mean for customers? >>I'll share it in the context of what we're doing with new Relic. Um, when you think of the concept of a solution, a lot of our customers, hundreds of our enterprise customers are going through our migration programs. They need help making sure that what they're doing on prem is translating to what's happening in the cloud, what the applications are doing on prem, and how they're performing in the cloud. So we've collaborated with NewRelic over the last year and a half on a number of new, not just migration programs, but windows or views into how the applications are performing. And we've designed those specifically for customers who are going through those migrations. So you just take that one little category. Um, and it's an area where we're collaborating together to bring something that is a full solution to the customer for those who are going through that migration journey. >>Your take on the whole solution thing. Yeah. So we, uh, last year at reinvent, we announced really the first solution that new Relic had ever launched trying to meet that market need and we, we announced the cloud adoption solution. So everybody knows we've got this great platform with all these cool features. We had never really gone to market and said, not only do we just address application monitoring or infrastructure mining, we actually address the business outcome of migrating to the cloud and all the benefits of doing that. So we announced that as a methodology last year. We added to that over this, this past year because we've enhanced our platform to, uh, have this new capability that we call programmability, which is the ability to write applications on top of the new Relic platform. So we've built, and we launched today a cloud adoption solution application. Kind of a mouthful. >>But what it is, is it is, it's the ability to use our technology and our platform to very easily drop that into a customer and help them very quickly get time to value of delivering on a solution and ultimately achieving the business outcome they're looking for. Yeah, I taught actually. So as you know, I was at your conference earlier this year in New York city where you really defined what a platform should be. And just like Amazon, what you want is you want builders and you want them putting solutions on Dabo. It gives a little bit of the momentum of what you've seen since new Relic one, and then the rollouts. So I don't know the formal count, but I know we're way past the dozen applications that we launched since then. Uh, we also added several different features including logging and some other technologies. We've closed a bunch of different deals with these new technologies since then. >>Um, and then a couple of the cool things from the partner ecosystem that we've done is with the platform capabilities we have, uh, firstly we're now, uh, getting ready to embark on building our first technology partner program. So we were talking to dozens of different partners in this room about how they can build with us on new Relic to make the platform even stickier, uh, for our customers that can now integrate NewRelic with various other technologies. And then the second, uh, thing we were proud to announce today is we've, we've actually just signed a three new managed service providers. So kind of another partner motion that we're driving in this ecosystem. And the new, all the new features of the neurotic platform helped enable us, uh, to do some really cool things with the platform and also evolving business model, uh, to close. Uh, so we were excited to to close three, top 80 best partners, which is best been global, uh, uh, blaze clan and out of California mission cloud as three new partners that we, uh, just, uh, signed agreements with. >>So we're happy to do that. Yeah. When we talk about the transformation, you know, one of the biggest challenges for customers is their application portfolio. I noticed new Relic has two boosts here. There's one specifically just focused on serverless, which I think is awesome. It's got some cool things. They're very focused on that developer app dev deployment there. Um, but you know, your customers, they've got a broad spectrum of applications and that journey to transformation in a modern nation is going to take time. How do you deal with the spectrum of what they're dealing with? But Todd, maybe start with you and then Josh would love your viewpoints too. I mean the spectrum. Massive. So our biggest challenge is keeping up with everything and continuing to innovate with all the things that are happening. But again, the benefits of the platform that we have enables us to do that in the enhancements. >>We wait and we made this year, this year. Um, now that our platform is, is more open, we can connect data, collect data from multiple entities, not just the new Relic, uh, agents that we've, that we were built on. So, uh, the concept of observability and being able to observe the entire application environment, um, is built on the fact that data's gotta come from all these different places. Then we need to turn that around and curate it, uh, into the right experience and the right use case that the customer's looking for. So, uh, all I can say is that, uh, our, our company is built on innovation. We try and stay on the cutting edge of all that. Try and stay current with that and meet the customer's needs as, as everyone here is innovating like S easy at scale. Todd, talk about what's going on in New York. >>What's the coolest thing going out with new Relic right now? Cause Lou always comes on the Q lose to CEO and he's cool. We love him, but he's always got his hands in something. Yes, he got the observability down. Cloud operations becoming standard. That's a tailwind for you guys as a company. But what cool things are you guys working on right now? Um, I certainly can't do Lou any justice. So the customer stories and things and he comes up with are amazing, but you know, from an industry's perspective, like gaming is hot. Um, and it's just like media and entertainment is hot. So we're just doing some really cool things with some really cool customers. Um, maybe not as cool as Lou would be, but you know, customers like, uh, are really adopting our migration story and we're really driving some significant business together. So customers like world fuel services and fleet complete, uh, we've recently come out and announced the stories of how we're helping these companies migrate. >>And frankly that's what's, that's what's cool about it is like everyone wants to get on the cloud faster, do more faster, and we're, we're enabling that, uh, in some really cool customers. So I'll to get your both reactions just to memes that we're developing on the cube this week. One is called, one is cloud native. If you take the T out, it's cloud naive. Okay. So, and the other one is something that I use on my post when my Andy story I did was you got born in the cloud, which is clear benefits. There's no, there's no discussion there. Check winning builder, but reborn in the cloud as companies are becoming reborn, this isn't the Mike, not just migration. There's a fundamental mind shift shift. Yeah. This is a reborn enterprise. And if you're not be born in the cloud and you're probably not going to be around longer, that seems to be the message. What's your reaction to cloud native without the T and reborn in the cloud? >>Well, I think it's, I think it's an accurate statement. It's funny. It's the first I've heard it. I may steal it. If I can use it, please pass it on. I will. Um, I would say that from an APM perspective, many of our partners are in different phases of their journey. Um, and so everything that we do is around three anchor points, which is helping those companies build great software if they haven't already, or if they're making that transition. Once they've made that transition, how do we help them market the software? And then the third piece is really how do we help them sell it? So in the case of new Relic, um, we've got a number of folks around the world that are helping with that co-sale process based on the solutions that we've jointly defined. Um, and then we also help build out the channel because as AWS, we've got tens of thousands of consulting partners. So the idea when you talk about that journey of becoming cloud native is how do you help a partner through that? You've got to hit on all three of those pillars to do it right. The leadership's got to be there for the top. Totally. You've got to have board alignment. You've got to have executive sponsorship, you've got to have technical buying, all of it. >>You guys have a very savvy customer base, Bray cloud native observability. What is the naivety uh, um, issue? What are people mostly naive about? Cause if you don't do it right with instrumentation observability if you're naive about that, you're going to get bitten in the, you know what? Well being, being naive there is not having your observability platform in place. So, but, but you really can't anymore. The old world of if you had a monolithic application running on servers monitoring, sometimes it was optional or a nice to have something today. You couldn't, you could only afford on your most mission critical applications as soon as you flipped a dev ops, a bunch of cloud native technologies, um, modern applications, but on the most modern frameworks with entities that are, that have all these dependencies to make sure that application works. Monitoring is a must, must have an observability is a must have. >>So that's now even in day one, out of the box, out of the one and two, the in to the reborn comment. As soon as you cross that path, you report, you rebirth yourself every day. Like it's constant. You're releasing code daily or multiple times a day, and so there's no like reborn statement anymore. It's a completely agile process. System changeover. This is not just saying it. You got to really believe what you're doing. You have to measure improvement, which is what new Relic is great at because if you take what's happening now on premise and you go to that transformation, you've got to show that you've actually achieved not just savings, but you're helping developers be more efficient and so you, you can't prove that story without the before and after. Yeah, yeah. Love talking to the cloud native gurus that you guys are, congratulations on your marketplace and ISV success. It's only getting the beginning of that run. It's kicking butt. Congratulations. Hundreds of thousands of customers are buying and hundreds of thousands more talk congratulates a new rule. Always great to have you guys on X. Great, impressive company, great results. Always great team, great product cloud, native ashore. Props to that. Thanks for coming on. Appreciate shit. Thanks so much. I'm John here in the cube, extracting the signal in the noise day. Two of three days of wall-to-wall coverage. Two sets here on the ground. Thanks for watching. We'll be right back.
SUMMARY :
AWS reinvent 2019 brought to you by Amazon web services the impact of the ISV here, Josh, to talk about that because this is a big story, So you could go across every category of technology So even just the last year, I mean, so from my perspective, one of the cool we're seeing is, So the modernization of the procurement cycles along with the monetization of the technology is really cool to I'll share it in the context of what we're doing with new Relic. So everybody knows we've got this great platform with all these cool features. So as you know, I was at your conference earlier this year Um, and then a couple of the cool things from the partner ecosystem that we've done is with the platform But again, the benefits of the platform that we have enables us to do that in the enhancements. into the right experience and the right use case that the customer's looking for. So the customer stories and things and he comes up with are amazing, So, and the other one is something that I use on my post when my Andy story I did was you got born in the cloud, So the idea when you talk about that journey of becoming cloud native is how do you help a What is the naivety uh, You have to measure improvement, which is what new Relic is great at because if you take what's happening now on premise
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Lew Cirne, New Relic | New Relic FutureStack 2019
>> Narrator: From New York City, it's theCUBE, covering New Relic FutureStack 2019, brought to you by New Relic. >> Hi, I'm Stu Miniman and this is theCUBE at New Relic FutureStack 2019 here in New York City. It's our first year of the event, but the event itself has been around for seven years and to help us end our coverage, no better person than the founder and CEO of New Relic, and the one who the name of the company came from, Lew Cirne. Of course, Lew Cirne is an anagram for New Relic. >> Indeed it is. >> Lew, thank you so much for having theCUBE at the event here and thanks for hosting us. >> I'm a huge fan of theCUBE. I've been watching it for a long time and it's such a pleasure to have you guys here. Thank you for coming. >> All right, so Lew, you're known as the coding CEO >> Lew: I am. >> And you come out with a vision of making software better. It's a great goal. Give us a little bit about the state of the industry. You know the internet challenge these days. It's going to fragment into a bunch of pieces and Open Source isn't what it used to be. There's so many changes going in the industry. Just kind of macro view before we get into New Relic. >> Yeah, from a macro view at New Relic we do this for the love of software. It's not just me, it's the whole company. We believe in software. We think it unquestionably is changing the world, transforming every industry. It's not enough just to build software that's great. You have to deliver more perfect software. That's now become almost obvious whereas when we first started out that was actually a bit of an evangelical sale where we had to convince people that they needed to observe their software. Now it's become a must-do thing, and that's why observability has become a household term. Everybody recognizes that anything that runs in production in internet scale needs to be observed, needs to be measured in real time. And so, that's been going on and has become a must-do thing for our customers. What we're so excited about is that we're delivering the first observability platform. What do we mean by that? Well, we see with this proliferation of tools, you might have metrics going to one place and logs going to another place and traces going to Zipkin or logs going to Elasticsearch. You want it all in one place, and more important, you want it to be connected so that you can see the relationship between the application and its server or infrastructure and the user experience all in one connected platform. That's what we're delivering with New Relic One today that's so exciting. >> Yeah. So, Lew, the IT industry in general is known for its fragmentation. >> Lew: Yeah, it is. >> When I want to build my application in the old days, I talk to the CIO. He's like, "Give me a million dollars and 18 months "and I will build you the Taj Mahal of my application." And we've got it beautifully designed and pull it out. Well, today things are moving much faster, but I've got everything from that Taj Mahal to the Kubernetes and Serverless, Microservice Architectures-- >> Lew: All that compartment-based stuff, yeah. >> There's usually a lot of different teams, and a lot of different tools in there. How does New Relic fit across that landscape and how are you helping to pull things together? >> Well, certainly the industry's moving from the monolithic application to the component-based application, often running in smaller and smaller services, usually running in something like Kubernetes or a containerized environment and with that comes a proliferation of things to monitor, and often a proliferation of tools. We have enterprise customers that have 20, 30 different monitoring and telemetry tools. It's not because they want it, it's because there might be one particular feature that one tool does that gives them the visibility they need. And what they want is a single platform. What people have historically used New Relic for is dropping our agents into their application or their infrastructure. Then our agents automatically put visibility in and then they report on the health of that system. We do that really well, but what we're announcing today is that we're opening up our platform to consume telemetry from Open Source, agentless sources. So that, if you've got something like Prometheus that's gathering data from Kubernetes, that can go straight into New Relic and be treated as first class data, so that you don't have to switch between a bunch of tools. None of our customers want that. They want it all in one place, but they need an open platform that's connected and most importantly programmable so that they can actually have one tool to see it all. And that's New Relic. >> A lot of the logging and tracing information out there isn't agent-led. What do you see as the future of agents, and what are some of the challenges of pulling all of these various data types together? >> Well, the most important thing for the future is that our customers have complete control in a choice. What we see particularly in large enterprises is they want both. They have a portfolio of more than a thousand applications. They want to observe them all. Most of them they'll want to drop an agent in because they don't have time to reinstrument them, but they still need to see them. Some of them they may want to manually instrument because they want a higher level of control or they want to adopt an Open Source API like OpenTelemetry. But then, if they're adopting that for some of their portfolio, when a transaction reaches across these different services, you don't want to lose visibility. We're delivering best of both worlds. You can manually instrument what you want. You can use OpenTelemetry in parts of your environment. And then you can also use our automatic instrumentation that comes from our agents. Our customers get to decide, and that's the future. >> So, Lew, you've laid out the case in a strong way as to why New Relic One should be the platform for the monitoring observability. I think you undersold a little bit the NRDB piece. When I look inside my business or I talk to customers, being able to see my data and act on my data can be challenging. You showed a demo of 10 terabytes and being able to change it in a snap. >> You know, NRDB is pretty magical. At some risk, let's see if this will show up on my phone right now. Just give you a sense of how fast NRDB is performing right now. Okay. One more time. So we've got-- >> Hold it up a little bit and show the camera this way. >> NRDB right at this moment is inserting 18 million events every second. Every second, 17.89 million pieces of data coming into NRDB in real time. And our customers are querying that in real time. Right now, in this moment, they're reading 24 billion pieces of data per second. Those pieces of data could be log messages. They could be someone pressing something on their app, could be a request going through a server. It's all in the same database. And the last one is a hundred millisecond response time on those queries, which is mind-blowing for these analytics queries. >> You actually showed the press an analyst this at lunch and it was over 20 million-- >> I think it was at 40 billion at that moment. >> 40 billion coming out and the same response time. A hundred milliseconds is Google good as to how fast I get a response. >> For this kind of data processing, it's mind-blowing. Now, the thing that our customers need to know is that all your metrics, all your events, all your logs, all your traces going into the same database with one query language. That's so much better than going to Elasticsearch and using its query language for logs, then using a totally different query language for getting at your metrics, and then trying to stitch it all together. We put it all not only in one cloud but in one database. That is the most powerful telemetry database in the world, which is NRDB. >> Lew, give us a little bit of the journey to the announcement today. Observability's been talked about in the industry for a while. VC money has been pouring into startups. There's been some acquisitions in this space already. Give us a little bit as to how we got to today. >> So how we got to today was when we started off as a company, we were championing the whole idea of observability, putting visibility into application code. As I said, that was a bit evangelical in the early days. People were wondering if they needed it. Now there's no question they need it. In fact, some people need it so badly they want complete control, and so they're manually instrumenting. OK, I've talked about that. Now where we see people going is now that all of this telemetry data is coming ideally into one place like New Relic, our customers are saying, "I need to go beyond dashboards. "Dashboards are good, but often dashboards are incomplete "to get the most out of the data we're collecting." That's why we're claiming we have the first and only platform for observability, with a capital P. What do I mean by that? It's only a platform if you can build software on it, and New Relic One is the first software development platform for observability applications. Our customers can take all this data and build real-time applications that leverage all the value out of it. When a customer buys something online, New Relic's database could be the first piece of, certainly, analytics database that sees that data. So you could a navigation that shows real-time sales for your business people all based on New Relic One. We can also solve all sorts of IT operations problems by building applications on this platform. And to prove it out, we're offering 12 free Open Source applications to anyone. They can download, they can clone them off of GitHub and push them into their New Relic account and they can use that as inspiration to build their own applications on top of our platform. >> Right. This is, if I understand, the first twelve, and you expect both New Relic and your customers will build many more. >> Yes, and actually it's thirteen already. We just added another one today. Some of those have been built by our customers already, and we're already seeing customers deploying these applications into their New Relic One accounts in production today. >> It really goes back to the promise of SaaS is that when customers need something and make a change or build on it, it's not just that customer that gets to be able to leverage that, but everybody else that is on the platform-- >> They can share and benefit. The way to think of it is, you're absolutely right, and without Force.com, Salesforce is just a CRM system. But with Force.com, companies could really leverage all the data inside Salesforce. Without programmability, ServiceNow is just a ticketing system, right? But how does ServiceNow become strategic? By allowing people to build applications tailored to their business. We believe the world needs an observability platform and the only one of its kind is New Relic One. >> All right. So, Lew, it sounds like this should be something that should accelerate growth for the company going forward. I read through your last earnings report. You're growing at 30, 35%, which is reasonable but less than the overall cloud marketplace itself is growing. So, how come the AWS, Azure, GCP tailwind isn't pushing New Relic faster? >> Well, it is a good tailwind for us, and I can't go into too much detail. We're a public company in a quiet period so I can't speak to specifics. What I can tell you is history has shown that people tend to adopt platforms at a certain rate and then, a few years later, they adopt the management technologies for those platforms. So we tend to be a little bit behind the adoption of cloud but then when people standardize and they go all in on it, then they really increase their investment in New Relic. I believe that things like our platform capabilities take our customers that might be spending... We have 850 plus customers that spend more than 100,000 a year with New Relic, and I believe when they start to adopt our platform and go strategic with us, many of them will be million-dollar customers, and that ought to be the basis of durable growth for the company. >> All right. So, Lew, there was some news leading up to the event. Some management changes. Let you speak a little bit of that, and you've got some history with, of course, Mike was already on the board, but-- >> We're so thrilled about Mike Christenson joining the company as President and COO. I've known Mike since 2006, when he acquired my last company, Wily Technology, which was really the very first APM company. Mike was the President and COO of CA, and so he had a similar role there to what he has here. Mike is, I think, one of the most brilliant operational minds I've ever met. He's been involved with New Relic for nine years. He's been one of the first investors in the company. He's been on our board of directors, and he's always had a keen mind for how to think about growing our business. I've been thinking for a long time on how to get him more involved as a member of the team and finally I convinced him to come join. Mike joined us as our President and COO. He's going to be my partner in growing the business. I think those that know me know that I love technology and products and thinking about where we are five years from now. Mike will be my partner to help make sure we're operating the company and growing the business on a day-to-day basis. >> Lew, you and your team helped create and democratize this wave of APM, Application Performance Management. As you look at it today, we talked about microservices. You talk about the dispersed nature of everything going on. How would you reframe the market today and New Relic, where it needs to be today and going forward? >> Phase 0 was people-monitored servers, back in the Stone Ages. Monitoring was just "Is the server up or down "and does it have enough CPU?" >>Blinking lights. >> Right. Then came APM. APM really was the precursor to observability. It was the notion that these are complex systems. They need to be observed at high granularity. APM gave birth to observability, so when New Relic first came along, we're "Let's democratize APM." And as observability came along, we saw this as an opportunity to open up the platform. Now where we are, if you look at our track record, first of all, my first company created the category of APM. New Relic then democratized APM, and now we're delivering the first observability platform. I believe that the future is programmable, and that New Relic is the future. >> Lew, you've always been enthusiastic when it comes to the vision that you put out, but it's been noted by some of my peers that your energy level and enthusiasm is even higher today than usual. So many things that you talked about, some of the things that you highlight, maybe behind the scenes, or things that might get missed beyond the headlines that you want to share. >> The idea for New Relic One was born two years ago. I took some of the brightest people in New Relic offsite and we fleshed out the thinking and the early prototype of what's become this. This is my life's work. This company's my life's work. I believe so much in this platform. I believe in its capabilities. I'm seeing our customers ripping it out of our hands, saying, "This is going to enable us "to fully achieve our goal of complete visibility "and completely tailored to the needs of our business." Why I'm so fired up and passionate is when you put your heart and soul into something that's new, that no one else has done before... There's been a handful of times I've done that in my life. The first time became APM. The second time became New Relic. The third was when I created NRDB. And now the fourth is New Relic One. And we're just getting started. >> Well, Lew, I want to let you have the final word as to what you want your customers taking away here from FutureStack 2019. >> My belief is that the future of observability is you need a platform. That platform needs to be open, connected, and programmable. We have such a beautiful, easy... It's a Heroku-like developer experience. So within seconds, you can be building an application that takes the telemetry data in New Relic and turns it into actionable business insights for your company. And if you want inspiration, there's 13 applications now up on GitHub that you can install right into your New Relic account, and maybe modify and tailor to your needs and republish to share with our other customers. >> I know you and your team are making sure that New Relic doesn't become a relic of the past. Thank you so much for having us here-- >> We're always in the future. >> And congratulations. I look forward to watching the progress going forward. >> Thank you, I enjoyed it. Thank you. All right, bye-bye. >> Thank you so much. And that's a wrap theCUBE's coverage of New Relic FutureStack 2019. I'm Stu Miniman, of course. Go to theCUBE.net for all of the coverage. A big thanks to the team here and everyone supporting and as always, thank you for watching theCUBE. (Electronic Music)
SUMMARY :
brought to you by New Relic. and to help us end our coverage, at the event here and thanks for hosting us. and it's such a pleasure to have you guys here. There's so many changes going in the industry. that they needed to observe their software. is known for its fragmentation. I talk to the CIO. and how are you helping to pull things together? so that you don't have to switch between a bunch of tools. A lot of the logging and tracing information but they still need to see them. and being able to change it in a snap. Just give you a sense of how fast And the last one is a hundred millisecond response time 40 billion coming out and the same response time. Now, the thing that our customers need to know to the announcement today. and New Relic One is the first software development platform and you expect both New Relic and your customers and we're already seeing customers and the only one of its kind is New Relic One. but less than the overall cloud marketplace and that ought to be the basis of durable growth and you've got some history with, and so he had a similar role there to what he has here. and democratize this wave of APM, back in the Stone Ages. and that New Relic is the future. some of the things that you highlight, and the early prototype of what's become this. as to what you want your customers taking away and maybe modify and tailor to your needs that New Relic doesn't become a relic of the past. I look forward to watching the progress going forward. Thank you, I enjoyed it. and as always, thank you for watching theCUBE.
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Nadya Duke Boone, New Relic | New Relic FutureStack 2019
(electronic music) >> From New York City, it's theCUBE. Covering, New Relic Futurestack 2019. Brought to you by New Relic. >> Hi, I'm Stu Minamin and we're here at New Relic's Futurestack 2019 in the middle of Manhattan. Right next door to Grand Central Station at the Grand Hyatt. Right next door to Grand Central Station at the Grand Hyatt. Happy to welcome to the program, first time guest, Nadya Duke Boone, who's the vice president and general manager of application monitoring here at New Relic. Thanks so much for joining us. >> You're welcome, it's great to be here. >> All right, so, a lot of announcements this morning. Of course, observability front and center Lou talking about how that fits into this space. You have handled really kind of the APM product inside New Relic, so I'm hoping you can help us understand kind of the journey that New Relic's going on. And I've heard in the marketplace, you know, there's AI ops, and there's observability in all of these things. And, you know, APM was the old world for the monolith. So, you know, how does New Relic help live across all of these environments that customers are living in today, and you know, undergoing so much change and new things? >> So as Lou talked about this morning, we think to be an observability platform like New Relic 1, you've got to be open, connected and programmable. That is, we think about that within the application monitoring space, um, we really think it comes down to the matter and issue of like, what are the questions you need to ask. And that really depends on like what stacks you need to see and what are the questions you need to ask. And so, I think it's a false dichotomy to say you need to like, pick a side in observability or monitoring. I think it's really a yes/and. You don't have to pick a side. And with New Relic, what we're able to do whether using our agents and all the rich data they give you or they're using our open platform, the important thing is that we're able to bring it all together in one place. So you can get all your questions answered. >> Yeah, I spent lots of time in my career trying to help break down silos. You know, the traditional infrastructure world, the networking and storage and compute teams. >> Sure >> You know, virtualization helped pull some things together. Software tends to be a unifying factor, but when I look at, you know, the people that own application and the developers. I mean, you've got monoliths, you've got this containerization in microservices coming. You've got the new serverless environments here. You've got a lot of fragmentation inside the customers. How does that impact your business today and are we going to see those, you know, pulled together over time? >> Yeah, what we hear from customers is that, you know, they're going to be running heterogenius environments for a long time. If you're over a year old company, you're not running a single tech stack. You've made choices for your business needs and you need to be able to see across your whole estate. And where New Relic's adding value for our customers, is by bringing this all together and connecting it. So, you can actually see, let's say from a lambda function and our lambda agents, all the way back through your Java monolith and down to the server whether it's running containers or on bare metal, you can see all the way down. And then you can connect it out to you front end as well. And I think it's that ability to see across, is where we're playing. >> All right, uh, can you bring us inside your customers? What are some of the challenges they're facing? And how do you help them along those transformations that they're undergoing? Cause, as you've said, they're going to have this heterogenius environment for quite a long time. >> Yeah, well I think one of the thing they're saying is that they're trying to move faster. And one of the ways they're moving faster is by changing the process by which they build software. So, you know, we've been talking about DevOps for years. We've been talking about Agile for much longer than years. Um, but those changes bring about new needs also, for observability. Cause now, you've got a team that maybe wants to see very deeply with, um, the things they're on call for. But software refuses to break neatly at team boundaries. It just won't, it's going to break wherever it wants to break. So you need to be able to quickly assess, across your whole enterprise what's going on and help those teams talk to you. So, that's definitely a problem we're solving for our customers now. And if I were to pick one more, that I'm hearing, um, well, I'll pick one from this morning and that's cost management, right. As people move to the Cloud, um, its so powerful and easy to be able to start up new services in the Cloud but then, do you know what you have, do you know what is costs, do you know how to optimize? Um, we announced 12 new applications this morning. One of them is addressing exactly that point. >> Yeah, um, okay, what are some of the challenges customers have really monitoring across these different environments? I think cost, it's, well, the promise of Cloud is to help me understand and control my cost quite a bit. But, you know, I understand my data center cost and, in general, much more than I do what I have in the Cloud. >> So, you mean, trying to understand in their software? >> So, I guess, just, if they have these different environments that need to span from a monitoring standpoint what are some of the challenges that customers have and the differences and how does New Relic pull those together for them? >> Well, I think some of it is bringing their teams together. If you've got folks that have a Dev accent and an Ops accent, they may have different points of view about monitoring right? And so, a Dev team might be saying lets go all in on this method or this tool. But an Ops team might be saying something else. And then as you introduce new technologies and maybe now people don't always want to run an agent. They want to have complete visibility over their software. And so, with New Relic, we're giving them those choices. We're giving them, like, hey, you can run an agent, you can, if you've already got stuff at Zipkin, cause maybe, internally, you've got like a great Zipkin champion. Like, great, we're going to be there with you on that too. So, we want to be able to help these teams come together. Um, rather than forcing them to sort of live in silos. >> All right, uh, Lou put a real emphasis talking about platform. And he said platform with a capital 'P'. >> Yeah >> Help us understand a little bit about that and the impact that's going to have for your customers. >> Yeah, absolutely, I think, you know, anyone can say I've got more than one product, therefore I have a platform I think. When we talk about a Platform, we think of software engineers, a Platform is something I can build on. So, I think a capital 'p' Platform is the ability to build apps, to be able to extend it, to be able to add data because you're open. Um, and then the power that we bring, you know, I got to put in my plug, is by connecting it all together. Um, but I think the power of the Platform, um, has been really showing off in the work that we've been doing with our customers to build these new applications. >> All right, um, you mentioned open, which was one of the three features of the Platform itself. Uh, there's open and with API'S and then there's open source can you help us tease through a little bit because there's the openness and then there's some open source pieces. How do those go together and um, I guess, more importantly, what does it mean for the customers? >> Mhmm, thanks for asking, cause I do think those words kind of got tumbled up. So, let's first, let me like tease it apart a little bit. So, first part of open, you sort of already mentioned this, is like, we're open to all data. So, metrics, vents, logs, traces, you can send that data. That's, that's the first thing. You don't have to be running a New Relic agent to use New Relic. The second part though, uh, is that we are actually building and contributing to the open source community software development kits and exporters to make it easy for our customers. And so, we've shipped, we're shipping Open Census and Drop Wizard and Micrometer and exporters and Prometheus scrapers so that these are open source tools that our customers can get, can extend if they need to, to get that data in. So, we're making it easy to get the open data in by providing these open source tools. Um, and we're in there with the communities contributing to the communities as well. And then, finally, you know, the last one is with our new programmable Platform, we are also all in on open source on that. So, we're contributing to open source for folks building on New Relic and our customers are telling us that they're excited to also be able to do that and to share and exchange with each other. >> There's value to the customer and I guess the question is, your relationship with your customer is going to change though. As they're building applications not just, you know, more than just a tool. And I've heard from many of the customers that use New Relic, is, they talk about the partnership. And it really is taking that partnership to the next level. What I say is, New Relic is not coming out and saying oh, we're an open source company and we're building our company around open source. So, you know, it seems that somewhat a maturation of the model but not open source being the be all and end all of New Relic's mission. >> Our mission is to help customers build more perfect software. I mean, that's why we come to work. Is to help them do that and we think this is the right step. Um, to be able to do that and our community around New Relic, as you said, is excited and dynamic. It's great to be here at Futurestack and hear them talking to each other and hear the buzz. I was at our customer advisory board meeting yesterday which is 11 execs from some of our biggest customers and they were talking about how excited they are to see how this is going to help them with their business cause they can connect, now their telemetry data to sort of higher order business problems. Um, and they're also excited to share. So, I think it's the right step for New Relic and our customers. >> There's a lot of startups out there that attack pieces of what New Relic's trying to deliver. Um, you know, how does New Relic look at the landscape out there and the challenge when you're trying to be a platform is, are you providing good enough solutions? Or, you know, are you providing, you know, best solutions across all of these environments? >> Yeah, I think any of our point solutions could go head to head with anything on the market. Um, you know, and the fact that the market is so dynamic is because it's a real problem space for people who are building software. So, folks are going to keep innovating and coming up with new ideas and my mission is to make sure that everyone writing software, is instrumenting it and able to observe it. So I think, I love that more and more folks are joining this conversation. I think it's a great time to be working on monitoring observability. >> Okay, uh, let's start at the top talking a little bit about observability, what should customers be looking at, should they be thinking about that? What feedback are you getting from some of your key customers? Uh, in the space in general and how New Relic's looking to address it? >> Yep, well I think comes down to, a little bit of what we talked about earlier, visibility and answerability and if I were talking to an exec or if I was talking to an engineer, and I was looking at their tools, you know, whatever level you're at and saying, what do you need to monitor how can you get that data in and can you answer the questions? Do you have the tools, the ability to query, to connect the data. Um, to see, hey there's an event that happened and how did my systems change? So I think a lot of it comes down to, is it visible, can I ask the questions? And then for every stack, and no matter what job I'm doing. >> All right, um, when we look at this broad term which gets overused some, but, digital transformation Um, the comment I've made is the long pole in the tent of going through that transformation, really is the application portfolio. You know, I can modernize my platform, I can go to Cloud, but, you know, changing my applications, especially the ones that run my business, is really tough you know. If I'm a company that's been around 15-20 years, you know, I probably have applications that are as old as the company, if not longer. >> Yep. >> Uh, just broadly, how are your customers doing, uh, are they being able to kind of, you know, move along that modernization journey of the application uh, better today than they might have a couple of years ago, or just kind of macro level? >> I think so, I think, you know, between what the Cloud vendors are doing and what we're doing, folks are getting both tools and they're also getting support. I think, you know, the community, the software engineering community is really leaning into this moment. And talking about how to do these types of trasnformations. So I think there's a lot of just, knowledge sharing going on, there's a lot of advice and consulting that you can get. And then I think the tools are lending themselves to being able to do, you know, some people move to the Cloud or lift and shift. Some people use it as an excuse to re-architect. A lot of folks pick and choose. Because not every apps work the same and some apps are, you know, are, um. For some given app, it might be a more relevant time to change it, a more relevant time to let it stay put and you can make those choices. And I think people are approaching it with a certain rational sense. >> Yeah, uh, one last question for you, New Relic's a leader in, according to, the analyst firms that look at the APM market. New Relic's doing a lot of the things that I hear from, you know, the startups getting lots of money thrown at them, so, how should customers think of New Relic today? >> I think, we're the best leading APM product on the market for a reason. And we can never rest our laurel. So I think customers should at us as a trusted partner. Who's going to continue to grow and meet them wherever they are. Our customers are going to Cloud, we want to be there first to meet them there and welcome them in the door. And that comes back to how do we help customers through digital transformation? We're a big software company. We get it, like, we are going through the same, we go through these same questions ourselves. Um, and we talk to our customers all the time. So I think for our customers, it's like, we're the platform and the right partner. Because we're never going to stop. >> Nadya, thank you so much for sharing the updates. Congratulations on the launch today and, uh, best of luck going forward. >> Thanks a bunch. >> All right, lots more here at New Relic Futurestack 2019, I'm Stu Minamin, thanks for watching theCUBE. (electronic music)
SUMMARY :
Brought to you by New Relic. Right next door to Grand Central Station at the Grand Hyatt. And I've heard in the marketplace, you know, And so, I think it's a false dichotomy to say you need to help break down silos. and are we going to see those, you know, and you need to be able to see across your whole estate. All right, uh, can you bring us inside your customers? and easy to be able to start up new services in the Cloud But, you know, I understand my data center cost Like, great, we're going to be there with you on that too. And he said platform with a capital 'P'. and the impact that's going to have for your customers. Um, and then the power that we bring, you know, All right, um, you mentioned open, which was one of And then, finally, you know, the last one And it really is taking that partnership to the next level. Um, and they're also excited to share. Um, you know, how does New Relic look at Um, you know, and the fact that the market and saying, what do you need to monitor I can go to Cloud, but, you know, to being able to do, you know, I hear from, you know, the startups getting And that comes back to how do we help customers Nadya, thank you so much for sharing the updates. All right, lots more here at New Relic Futurestack 2019,
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Roger Scott, New Relic | New Relic FutureStack 2019
>> Narrator: From New York City It's theCUBE covering New Relic FutureStack 2019. Brought to you by New Relic. >> Hi, I'm Stu Minimen and we're here at New Relic's FutureStack 2019 at the Grand Hyatt, next to Grand Central Station, here in New York City. Happy to welcome to the program a first time guest, Roger Scott who's the Chief Customer Officer at New Relic. Roger, thanks so much for joining us. >> Thanks, Stu. Thanks for having me on. Good to be here. >> Alright so, I love this morning actually in addition to hearing all of the announcements, my first hand full of guests on theCUBE were customers. So I got to hear from them and we know your team is always excited about the announcements, but definitely enthusiasm from the customers, things in the keynote that got people. >> Fired up! Yeah. >> Clapping, and fired up. >> Great to see. >> Things like, oh wait! 10 terabytes of data, pressure thing, refresh for like a second, and >>oh my gosh! There's results. Yeah >> Pretty impressive so maybe give us a little bit of insight into customer engagement and how it's let to the bevy of announcements here at the show. >> Oh it's a great question actually and I think in my capacity as Chief Customer Officer and the functions I'm responsible for, we're continually engaging with customers as you can imagine. And one of the things we take a lot of pride in is being a proxy for the voice of the customer back into the organization. So we have a pretty rigid process. Not rigid, a pretty discipline process, I would argue, that allows us to get feedback from the field, listen to our customers, understand what's important to them, and reflect that in our product roadmap. And I'll let you know that's on a weekly cadence we do that. Now we're not doing that in a reactive fashion such that our roadmap diverts every single week in there, but we hear that constant feedback from the field as to what our customers are lacking. So lot of what you hear today, in terms of those six great announcements that we have were a combination of feedback that we've had over the last couple of years, I would argue. Because it's a dramatic shift to go from what we were previously, which was essentially six individual products that work really well together. But through the release of New Relic 1 in May earlier this year and what we announced today has truly developed us in to a observability platform. So monitoring with six different products to a true observably platform that's open, connected and programmable is a dramatic shift. And that's a combination of a bunch of feedback from our customers over the years. >> Yeah. I'm sure it's pretty much feedback from all customers. They're not asking for more tools and more interfaces and more things that they need to learn. >> Roger: Not at all, right. >> In many ways software can be a unifying feature especially that term platform who spend a bunch of time emphasizing what's needed from platform. >> Maybe, what were your costumers struggling with that kind of New Relic 1 in general is looking to solve as well as the observability piece? What went into that launch that was costumer pinpoints and things that they'd been asking for. >> Yeah maybe to stand back a little bit and understand some of the challenges that costumers had and then why they were asking for different solutions or evolution of our solution. If you think about today's world, there's this rapid development an deployment of software, so it's almost got to the point of continuous software deployment. And so your speed of needing to be able to react to problems in your environment, your costumer experience are degrading, ect. Being able to respond to that really quickly is essential, understanding the costumer experience is essential. You talked about operational efficiency of reducing the number of tooling sets or data sets that I'm looking at continually. So anything that we could provide to our costumers that allowed them to get to answers quicker, understand the why, and then be able to remediate that really easily so that the costumers have a greater experience. And at the same time reduces this friction that's unnecessarily introduced when you're going from one product to another, one tool to another and you're spending too much time rationalizing data sets across those tool sets. So consolidation is a big theme, ability to get to your answers really quickly is a big theme and that's really been the genesis of being able to create a platform. But not just a platform for consolidation, for better visibility, and observability but we believe it's not truly a platform until you can develop on it. If you think back in technology history of all the different peradams we've had throughout the history of technology, those who've won the platform wars over the years have been really good at being able to provide tools and ease of adoption of the platform by virtue of being able to build things on top of it. The ability to give people tools that allow them to build technology is really a therasense of the platform as well. >> You know, Roger, there's a certain trust level that costumers have to have if they're going to be building on top of your platform. >> When I've talked to costumers in New Relic they do talk about a partnership >> and the good back and forth but there's definitely a certain amount of stickiness once they've built something on your platform. >> Roger: Right, yeah. >> Any concerns from them as to, you know there's that term lock in out there as to the how do I know that this is going to work for me, and that I'm not going to have my pricing kind of crank up over time and be like oh my gosh, a year or two later, what did I get myself into? >> Right. It's a really important point that I'd like to start off by actually reemphasizing the point you made. I think we pride ourselves on the relationship we have with our costumers. It truly is the heart of everything at my organization does. We have this saying that we are because they are. In the realization that if we don't serve our costumers really well they have choices frequently, we're a saas vendor, the contracts come up for renewal frequently. And if you're unable to deliver on the promises that you made in the sales process, once they implement your solutions and try to use those in production, environments and everyday work if you can't deliver on those promises then you're going to breakdown that level of trust. And trust is at the center of all relationships as you know. Whether it's a personal relationship, you're playing on a sports team, whether you're working with your costumers. And so we want to make sure that we can deliver on those promises once we've sold them the product. So I haven't heard any specific concerns about lock in or anything, I think what they regularly come to us though with is they want us to have a really strong point of view, want us to be opinionated, tell them how this should work effectively together, what does best practice look like, what's the gold standard, what are some of the artifacts, tools, frameworks, reusable templates that we can share with them that accelerates their time to value. So I think the value significantly outweighs the concerns around lock in or reduction of the number of vendors that they're working with. >> If I look at really the enterprise space, you've got costumers working through their application modernization. They've got their modelist their going after micro services. I heard a stat that only about five to ten percent of apps are monitored at the app level today. >> Yeah, pretty scary, isn't it? >> Yeah, how many of your costumers are dealing with the installed state versus new deployments and what are some of the challenges you're hearing from costumers there? >> Yeah and I think it's important to pause that number because I think it's five to ten percent or growing to twenty percent as I think got indicated. If you look at those organizations Born In The Cloud or Born Digital it's significantly higher percentage of that which is possibly an indictment of the low level of instrumentation we see in a lot of legacy software technology stacks. And so I think in today's world we're tryna get that level of instrumentation observability up as much as possible. But maybe to link back to your previous question as well I think there's an important aspect here of when we move to a platform. When you're a product company your differentiation comes through product, comes through the capability of that product features and functions and we've certainly found ourselves in a significant number of those battles against competition where it's feature and function based. That's not a great comfort for the costumer. I think when you move to a platform it's very much around the networks differentiation. When I say network differentiation I think it's about getting the users of your service access to third party applications to third party data sources be they open source data emitters, opentelementry, open sensors, Zipkin any of those data sets that we are now in support for today. Giving them access to those data sets and being able to enrich the experience that we provide them that network effects and that's really where we see the opportunity to deliver significantly more value to our costumers with the ability to then build your own applications on top of the platform. That's second to none in the industry in my opinion. >> Roger, what's New Relic's role in helping costumers as really they're modernizing their work force? When I talk to so many companies it's like they need to retrain and they have to have new skill sets they need to make sure as certain cloud in automation changes where they focus on things and embrace devops and new ways of doing things. There are a lot of challenges there. Where does New Relic play in that modernization for costumers? >> You know what I think it's in a couple ways. The ways that we, my organization, can help the costumer in terms of just sheer understanding of the capability of the platform, what are best practices, how we can drive better accountability as you move to these new technology stacks and new ways of working much more agile environments. And so I think we can do a combination of that just sheer skills development, working really tightly with the likes of AWS you would've heard Dave McCann this morning talking about how when costumers migrate the application work goes to the AWS cloud environment. Hopefully they're not just doing that by way of compute lift and shift but they were actually looking at modernizing and refactoring those applications and when they do that, you heard Dave talk through a number of assets and frameworks and models and reusable best practices that we're trying to work with them on that we can give to our costumers that accelerate their journey 'cause it's not easy. We were talking to Chris Dillon this morning from Cox Automotive and when you think of an organization like that that's forty, fifty years old and has had to transform itself in terms of digital experience for it's costumer base, it's a significant cultural adjustment quite often to get teams to work in fundamentally different ways. So it's not an insignificant challenge but that's partly why we've invested so heavily in costumer success. Taking the costumers on the journey, thinking about their maturity over time, and constantly look for them to get better value from the platform. >> Roger, there are a number of things that have jumped out at me. Things like oh hey, we can save you potentially millions of dollars on your AWS cloud bill. You've already got costumers building on top of the platform, you had the future Haka event just a couple of weeks ago. Any other kind of interesting or exemplary costumer outcomes that you might be able to share? Either doesn't have to be about the new stuff but just that you've recently with your costumers. >> You know, one of the things that's most gratifying for me when talking to costumers is when we've been able to see when you work with older, more traditional companies that are undergoing some form of digital transformation and they're trying to shift a lot of the applications into a more modern stack and environment, become more agile, etc. they frequently sort of peel off part of the business and will have a digital division that will build some innovative, typically mobile based, apps. We've seen a number of different retailers that we've worked with. Number of different travel organizations where we've started out intrumenting the mobile application because they've built a new application to give their consumers or costumers access through to their services, and at some point that application is going to merge into the backend and have to connect back into older technology. And it's been the beauty of being able to connect those two different environments together. Not starting off at what we would've got as slightly easier place to start which was the more modern application environment where we are really well suited to. But then seeing the full value of being able to instrument the front end all the way through to the backend, link that back to the costumer's experience and to the impact on the business in terms of funnel analysis from number of people using the mobile application to actually ordering something to once they've ordered it, feeling satisfied in actually receiving the goods that they ordered. Being able to instrument all of that and understand the impact of performance and availability on the overall business arcam, that's when it's been truly transformational in working with costumers and that's certainly where we'd love to help more of our costumers in that fashion. >> Alright, Roger, want to give you the final word. Of course you bring together a number of costumers here at FutureStack in the U.S as well there's a few of those run in other geographical areas but throughout the year, any other key things you want to highlight as to how costumers can get engaged even more. >> Yeah, I mean, we've got a sort of what I would argue is a tiered approach to costumer success. At the very high end of our engagement model we have a significant number of resources. Solution architects, costumer success managers that we can deploy directly with our costumers. We typically do that in conjunction with them, build out success plans, etc. What we looking at investing Heavily at the moment is also having a good understanding of what the ideal costumer journey is like. Realizing that a costumer can come to an event like this and learn about our product but the best way for them to experience that is in the course of using the product. So heavy focus on product lead growth and how we actually deliver better value through the product itself, remove friction and adoption and getting to better value. We want to automate some of that costumer journey so that we know that if you've just signed up and, for instance, you've configured you're agent and you've done your learning policy but you haven't yet configured a custom apdex on that application or you haven't understood what your key transactions are, we've got all that data in the backend. So we're working really hard to understand how we get that information back out to costumers and go hey we know you haven't necessarily done this yet, here's some access to great assets. A short video clip, a self paced learn guide that somebody can get on demand from an LMS system. So trying to use a combination of direct resource investment, events like this where it's great to make announcements like we did about the six grade innovations and then increasingly using digital through the products but also through just the general costumer journey to say hey this is really important content and information, you should look at this now 'cause it's going to add value in what you're doing today. >> Alright, well Roger Scott, Chief Customer Officer at New Relic, thanks so much for joining us. >> Thanks so much, it's been great talking to you. >> All right. I'm Stu Minimen back with lots more here at New Relic FutureStack 2019 in New York City. Thanks for watching theCUBE. (outro music)
SUMMARY :
Brought to you by New Relic. at the Grand Hyatt, next to Grand Central Station, Good to be here. in addition to hearing all of the announcements, Yeah. oh my gosh! and how it's let to the bevy of announcements Because it's a dramatic shift to go from what that they need to learn. of time emphasizing what's needed that kind of New Relic 1 in general is looking to solve that allowed them to get to answers quicker, that costumers have to have if they're going and the good back and forth that I'd like to start off I heard a stat that only about five to ten percent of apps and being able to enrich the experience that we provide them to retrain and they have to have new skill sets and constantly look for them to get better value of the platform, you had the future Haka event just a couple that application is going to merge into the backend of costumers here at FutureStack in the U.S as well Realizing that a costumer can come to an event like this Chief Customer Officer at New Relic, in New York City.
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Buddy Brewer, New Relic | New Relic FutureStack 2019
>> From New York City It's theCUBE covering, New Relic FutureStack 2019 brought to you by New Relic. >> Hi I'm Stu Miniman and this is theCUBE's coverage of FutureStack 2019. Happy to welcome to the program, first time guest, Buddy Brewer, who's the GVP and GM of client side monitoring with New Relic, going to talk about customer experience and especially the digital customer experience. Buddy, maybe explain for audience who may not know client side monitoring tell us as to where that fits in to the entire picture of new relic. >> Yeah for sure great to chat with you Stu. You know client side monitoring for us, is the part of our observability platform that extends all the way out to where the user actually is. So people think of New Relic as this really great platform for understanding everything that is going on in the application logic, and the servers, but our client side monitoring does is extend it all the way out to the phone that is in the consumers hand or the laptop that's right in front of them. >> Stu Miniman: All right so obviously there is a direct connection between that and that digital customer experience. Maybe explain some of the challenges there and how new relic is helping to work on solving those. >> Yeah you know, digital customer experience is all about collecting and understanding the relationship between two different types of data. There are the technical metrics, all of that information about how long people are waiting, latencies and pieces of the software everything from how long it takes to connect to the server, how long it takes to build the response to the web page, Deliver it, render it, all that stuff. There's lots and lots to collect on the technical side. But the other half of DCX is the personal side, the human side. The person who is on the receiving end of all that stuff, how's it affecting their behavior? How long are they spending on the site? Are they buying? Are they clicking on a second webpage? Are they engaging in the game? Are they booking that travel reservation? And so collecting all of those business metrics, and then collecting right next to them all of the technical metrics and bring that back in a way that you can understand the relationship between those two things is what DCX, digital customer experience is all about. >> Yeah it is fascinating the expectation that we have today in 2019 is so different then the past. It used to be like "Okay, I know if a website doesn't load in this long, they are going to leave me" But you know what are those expectations, what is that ultimate end user. What is a good customer experience for them? >> Buddy Brewer: Yeah it's changing all the time, and it changes depending on what part of the world people are in, it changes depending on the type of device and this is why it is important for customers to actually collect the information and understand their relationship with their customers. It's really hard to put a single number on it. Because what's true for a commerce site, might not be true for a media site. What's true for a site in Australia, might not be true for a site in The Americas, or in the UK. There are certain patterns that certain people have seen, Google had a statistic out awhile ago that said that over half of people will leave a mobile site that takes longer than three seconds to load. And so there are some patterns out there, but a big belief, for us, is that one of the most important relationships our customers have, is the relationship with their customers. That is why it is so important for them to collect their own metrics around how long people are waiting, and how that waiting is affecting their behavior. >> Stu Miniman: Yeah, so it seems obvious that you know having data to back up what's going on is important. Bring us inside a little bit the importance of monitoring in this space though. >> Yeah, absolutely and this is why it's so important. We are so excited to be talking about our observability platform that we have here today at FutureStack. The fact that it's open, you can bring all of this information in. We've got all of this agent technology that collects things about what's happening in the servers what's happening in the info structure, information that's happening on the client side. As well as this ability to absorb information from third parties, then connecting it all together to give you that context. So there is the context that is being solving problems from the front end to the back end of the application stack. There is also the context like we were talking earlier, the digital customer experience. The connection between the technical metrics and the human metrics, and how they are actually experiencing the application. And then making all of that stuff, the connected stuff, programmable. So then our customers were the first observability platform that you can actually build applications on top of. And so we've released twelve of those today that folks can use. It's going to continue to expand, and it's something that our community can contribute to, our customers can actually take our visualizations, and our analytics and customize them to do exactly the things that they need to do. >> Stu Miniman: All right, Buddy observability is still a relatively new term for a lot of people. Help us dig down, you actually did a blog post even, about, you know, the principals of observability and modern applications. What, how should customers be looking at observability and how do they sort between you know, what is a good solution versus, you know, an okay solution? >> Buddy Brewer: Yeah, well there are some really important pieces that we think people need if they want observability about what's happening in their application. It starts with getting all of that information in one place. You know we have this really fast database, in our DB that store all of the telemetry that we collect on behalf of our customers. And it's getting larger and larger as we continue to open that up to things like these third party data sources. Then there is context that is really important to layer on top of that. Bringing the information together in ways that start to make sense out of those little individual pieces. One of the things that we found though, is that our customers are running applications that are so complicated, there is so much going on in these applications today, that even with the context there is still forty or fifty things that are happening at the same time when a customer has an issue. That's where our applied intelligence, which is another piece of what we are launching today at FutureStack, comes into play so that you can take those things and condense them down into smaller more manageable related chunk of information that folks can act on and fix their applications. >> Stu Miniman: Yeah, it was actually really impressive to see, you know, in the demo this morning, being able to poke through and get meaningful results off of tens of terabytes of data. In, I would say, much faster than I can run a report on the industries leading CRM tool where all of our customer data lives today. So you know, pretty interesting stuff is to how you can enable customers and it kind of almost will change the expectations as to what a good experience is like. >> Yeah that's right and you think about how there's that use case of things where normal and then they got bad, and so you logged in and diagnosed to get things back to normal. And having that speed, that ability to get that information quickly is really key there. There's also a whole other use case, this is the digital customer experience user case, where things are normal, but we want our customers to be able to play offense with software. To be able to take what's normal for them today, and to get better and better and better in ways that drive better business outcomes for them and allow them to compete and win in a space where, consumer expectations are just getting tougher everyday. >> Yeah, you know always look at there. How can, how can you just, you know, exceed what customers expecting and give them so that they will, you know, love your solution even more because you gave them more than expecting? How's New Relic helping customers, you know, move along that journey. >> Yeah, you know nobody likes to be kept waiting. At the end of the day the customer always has a unified view. So we want to give our customers, the consumer always have a unified view, we want to give our customers the unified view with all of the details. So that they can deliver a better experience for their customers. And it has to do with, again like I was saying collecting the technical information, also collecting the information about how that's affecting customer behavior and then looking at those two things next to each other in context. So that they can see how one affects the other. >> Stu Miniman: All right so, Buddy give us some of the outcomes that customers will see based on the announcements, today at the show. >> Buddy Brewer: Yeah so for the customer experience, one of those programmable pieces that we launched is this really simple application that you can just drop in to New Relic and it shows you right away the difference between engagement when people are getting good experiences, versus when customers they are getting bad experiences. And when we show this to people often times they are shocked. For example take a metric like bounce rate. What's the likelihood that someone who comes to your site is going to stay on your site? When people think about it, usually they are thinking about it in aggregate, across the entire site. But when you separate it out into the good experiences, and the bad experiences, maybe you've got an overall bounce rate of forty-percent, but when you give those really fast experiences to your users they are only bouncing at twenty-percent, so they are twice as engaged. Then conversely the folks who are getting the bad experiences, because let's be honest on any given day, websites are, you know delivering good and bad experiences to different groups of users, that bounce rate might be seventy-percent. And when you see the disparity between these two things it's a motivator to action. Now what's really important after that is that you've got the data underneath so that you can actually do something about it. And that's where this end to end observability platform that collects all of the information from the front end to the back end is so useful. >> Stu Miniman: Yeah, I have to think that it's pretty powerful not just for the customer experience, but I can get accountability from my partners, so where it be my ISP or my cloud provider, I can be like "Hey, uh, you promised me this response, this bandwidth and here's the data, we need to make sure that I'm actually getting what I'm paying for" >> Yeah that's right and at the end of the day what the customer saw, what our customers customers, the consumer at the end of that connection sees, is the truth. And so collecting that data, whether they are on a mobile device using an application or they are using a browser. Any of that stuff. Having that information is not only useful for internal accountability, and things that are in peoples direct control, but also absolutely, there's so many, so many third parties that people are using, to make their application's go today. >> Stu Miniman: Yeah, we know the visibility of actual data to help us not only make decisions but, inform everything that we doing is so critically important today. All right Buddy, why don't you give the final word, digital customer experience. What do you want people coming out of FutureStack 2019 here in New York City, really understanding? >> Yeah, I think that when it comes to New Relic, it's that we providing folks the ability to have exactly the view that they need of all of the data that's relevant to the performance of their application. So that they can solve technical problems, so that they can solve business problems. Because at the end of the day, your digital business is your business increasingly. The digital experience is what defines peoples brands. And so we want our customers to have complete control and visibility over all of that. >> Stu Miniman: All right, Well Buddy Brewer thanks so much for joining and sharing what's going on with New Relic and that digital customer experience >> Thanks so much Stu. >> All right, little bit more left here at FutureStack 2019, I'm Stu Miniman and thanks for watching theCUBE. [Outro Music]
SUMMARY :
brought to you by New Relic. experience and especially the digital customer experience. observability platform that extends all the way out to where Maybe explain some of the challenges there and But the other half of DCX is the personal side, Yeah it is fascinating the expectation that we have today Buddy Brewer: Yeah it's changing all the time, Stu Miniman: Yeah, so it seems obvious that you know from the front end to the back end of the application about, you know, the principals of observability and modern that store all of the telemetry that we collect to see, you know, in the demo this morning, being able to speed, that ability to get that information quickly and give them so that they will, you know, love your the consumer always have a unified view, we want the outcomes that customers will see based on platform that collects all of the information from the Yeah that's right and at the end of the day what the everything that we doing is so critically important Because at the end of the day, your digital business FutureStack 2019, I'm Stu Miniman and thanks for watching
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Todd Osborne, New Relic & David McCann, AWS | New Relic FutureStack 2019
>> From New York City, it's theCube covering New Relic Feature Stack 2019. Brought to you by New Relic. >> Stu: Hi, I'm Stu Miniman and this is theCube's first year of coverage at the seventh year of New Relic's Futurestack 2019 here in New York City and happy to welcome back to the program two Cube alumni. So, Todd Osborne is the GVP of Alliances and Channel with New Relic and Dave McCann is the Vice President of Migration Services, Marketplace and Control Services with AWS. Gentlemen, thanks so much for joining us. >> Dave: Great seeing you again, Stu. >> Todd: Thanks for having us. >> Allright, um, Todd, let's start with you uh, you know, quite a bit of a relationship with, between New Relic and AWS. I know we've had Lou on our program at the AWS shows a couple of times. So, set us up with the, the partnership and how it's been evolving. >> Todd: Yeah, it's been a, uh an unbelievable partnership, um, for many, many years we've worked together starting with technology integrations, we've got dozens of them that, that natively monitor a bunch of different AWS services but the most exciting thing of late ah, really came to life middle of last year when we started working with, uh, a bunch of different folks at AWS. Our, basically, our biggest thing that we need help with is migrations. We know we have this massive opportunity, uh, to, for more and more applications more and more workloads to move to the cloud. There's lots of different ways in which customers, partners and Amazon needed help in doing that. They brought us several different challenges related to that and we responded by, ah, at Reinvent Launch last year, launching what we call the Cloud Adoption Solution. That really was how, um, a process that linked up with the Amazon Migration Acceleration Program and used New Relic as the platform to help with migrations from beginning to end. So, starting with the planning, uh, phase of the process, getting the information you need to have a successful migration and design a successful migration, troubleshooting that may, of anything tat may occur during the migration and then post migration, really helping to optimize the performance and cost of how that migration, uh, or that post migration, ah, optimization and run phase. So, it started with that. It's really evolved. What's been really amazing, just since we launced last November December at Reinvent, the whole, we've seen a massive shift already, just the last nine months, where it's not about just simple lift and shift anymore, almost all customers that are migrating now, are also thinking about modernizing their software stack, running on containers, using kubernetes, running micro services, which is New Relic's sweet spot, really, at the application space. So, as we've evolved, starting with migration, evolving into modernization, it's been an amazing partnership working with AWS. >> Stu: So, Dave, migration services, obviously something we hear a lot about from AWS. Every time I go on one of these shows, it's one of the key steps that gets thrown out. Uh, you have a very broad ecosystem, the marketplace, uh, you know is, is the closest I call to the kind of the enterprise app store, uh, of today. Tell us what's, you know, special and, really, you know the effort that goes together between AWS and New Relic here. >> Dave: So, I think, from a migration point of view, um, you know we've spent a lot of time in AWS designing a migration methodology. Our professional services team, let by Tom Weatherby is really delivering a playbook directly to our customers on how to migrate. And, also, we've certified over fifty consultant partners who are certified to do the migration. But all the migrations hinge on a customer knowing what they have and whether they want to migrate it. And, so, to necessarily know what you have, you have to go through application discovery. So, if you've got a larger server fleet, you've got four or five thousand instances, you have a thousand apps, you've actually got to discover and analyze what you have. And, clearly New Relic's tool is widely installed. So they actually have the visibility to a lot of the installed apps. So, last year, at the end of last year, we bought a Canadian company called TSO Logic. And TSO Logic is a business case tool from building the business case on whether to move an application running on PRIM. What would it look like on The Cloud? So, we need to have that data in the tool. And, so, New Relic's been a great partner, integrating New Relic into TSO Logic, so we cal actually take the instrument in visibility that New Relic brings to the table and pop it right into the tool. And, so, the New Relic, TSO tool integration is a great new mechanism that we have. And we just acquired TSO in Q1 of 2019. So that we're now giving the TSO tool to all of our solution architects and all of our consulting partners and New Relic feeds the data right into the TSO tool. So that's a huge, um, uh, mechanism for accelerating migration. >> Okay, uh, can, can you speak to, you know, how, are you, who and what customers and how are you targeting them, uh, for, for this solution? >> So, first of all, customer are moving to AWS. You know, thousand of enterprises are moving applications. I think you have to assume that most enterprises are moving to The Cloud. And the question is, "At what speed?" So, as our sales teams engage with the customer, the sales team have a notion to discuss migration we run migration methodology. And so, as we engage with the teams, the solution architect brings TSO to the tool, to the discussion. And that's happening all around the world. And we've trained our solution architects on TSO. And as we've done that, the second thing we've done is, you know, New Relic engineered engine marketplace over two years ago. But we've launched a new capability called Private Offers. And Private Offers is where the customer, while they're planning the migration, may also need to license more New Relic and New New Relic. And, so, how do we make licensing really easy? And, so, New Relic worked with us on, the, what we call the Private Offers Workflow. And that Private Offer Workflow allows a New Relic sales executive to generate the quote right in the marketplace portal. And you, an AWS customer, and you receive that private quotation right in your AWS account. So not only are we business casing on TSO, but New Relic is quoting through marketplace. So that's happening into lots of large customers. >> Stu: Yeah, uh, you know, what if you talk about the adoption of Cloud we need to make it simpler for customers to move those. And the financial piece has always been one of the promises of Cloud, but things like this Private Offer, it sounds like it helps accelerate, uh, that simplicity, and, and you know, reduces any, you know, perceived barriers there are between some of the software vendors and what you're offering. >> Dave: Well, it flows the New Relic software supply right through marketplace and more and more large companies are using marketplace for software supply. And, so, New Relic's in there. It means that our sales teams are working together So, we talked this morning at the conference with the VP of Cloud architecture who was in the conversation. And so, Chris has been working with the AWS team and with the New Relic team and we're joined at the hip as they expand their use of New Relic. And they announced this morning that they've now moved over thirty percent of all of the Cox application onto the AWS Cloud. And New Relic's been the center of that visibility. >> Stu: All right, so, Todd, a lot of announcements at the show, especially uh, you know, the capital p platform as Lou talked about in the keynote this morning. Well, you know, AWS is one of the largest platforms out there today. Help us understand how these fit together, both platforms as well as just, just the announcements in general as to how they work with AWS. >> Yeah, what every single thing we announced today had some sort of AWS tie to it. So, I mean first of all with New Relic, one, being a platform, it's open, connected, and, um, and, and programmable. And, so, the open part of that means that not only can we just inject data with New Relic agents, now we, we now are an observability platform that will take date from all kinds of sources, so think of what that opens up in working with AWS and AWS's other partners and getting data from a bunch of different sources, to then make the observability even better. We announce a log in solution. We're already connected with AWS, uh, cloud watch logs and, and, uh, working on some other new feature solutions in the log in space. And then from a programmability perspective, um, we can now take what we have, we can write all kinds of applications on top of the New Relic platform. And some of the initial couple of, of the dozen application that have already been opensource, one is a cost optimization play which looks at Amazon data, uh, both utilization performance data, some other sources of data that New Relic has, and then pulls in the Amazon cost data, can actually look at, in the New Relic platform, as a free opensource application, how do I optimize my cost in the AWS environment? And the second one, which we didn't talk about too much this morning but it's out there, but we can take some of VienMore data and some of the on PRIM data that we have visibility to today and help design that landing zone to help migrations do better, So, it's just two really quick examples of how we can take data from all these different sources and program it, write new applications on top of it, create an awesome customer use case and work with Amazon and, uh, help migrations and optimization along the way. >> Stu: All right, Dave, I'm wondering if you have any customer examples that might highlight some of the joint work that's being worked on between New Relic and AWS. >> Dave: Also, You Know, obviously I've just made some Cox We stood on stage this morning with the press where Cox has said that they've now got nine thousand work loads under New Relic visibility. And so that nine thousand work loads is across hundreds of development teams and, I think, Cox is just an illustration of many customers that we have in common. Um, you know, we're, AWS has got thousands of enterprises, so does New Relic. I think you've said you have over one hundred thousand five hundred enterprises using you. So, some large number. So there's a high overlap in many customers at this conference. And as we sat in the room this morning, um, I would say more than half the room held up their hands when I said, "Who in this room is using AWS?" Half of the audience here are AWS customers and New Relic customers. >> Todd: If I could maybe just add on the Cox story a little bit, because I've been very involved with that one. The beauty of the partnership we have there was multiple, on multiple phases. First, Cox has been a customer of ours for a number of years. Both on PRIM and in the cloud as they have accelerated their cloud, we've helped a lot with that. What was great about that partnership was that our field teams got together and, and actually really sat down and, and mapped out the migration, multiple migration scenarios. We had data on a bunch of on PRIM stuff that was valuable to AWS. AWS was the standard on a couple of divisions on cloud that we weren't monitoring all the applications there. So the teams really worked really well together and then at the end of the day, we came together and said, um, there's a bunch of benefits for the customer, for AWS and us, if the, if uh, if a transaction, the last transaction we did there, went though the marketplace, which was a significant transaction that we did with, ah, on the marketplace. So it was just such a win, win, win that tied together the, uh, all the aspects of the strategic nature-natureship, nature of our partnership. >> Stu: All right, so, you know, it's clear you're teams have been working close tother, iterating and adding a lot of the last kind of year, year or two or so. Give us a little bit look forward. What more should we expect of, a, from, from this partnership? >> Dave: So the area I think I would talk about next, that I think all customers are paying attention to, is spam management. So, you migrate your application to the cloud, you establish a could operating modem, um, we license out software through marketplace, you're now running it, at last week we have another product that I run called Service Catalog. And last week what we launched in Service Catalog was a new ability, and Service Catalog is a library of templates, so those templates are launched as Jason Templates using something called cloud formation and we've versioned the templates and what we launched last week was an integration between Service Catalog and another tool our customers have called AWS Budgets. So now what you actually want to do is you want to grant the team access to a resource and on the tag of the template, you actually want to give that resource template a budget. So that is actually under an API, so there's an AWS Budget API, there's a Service Catalog API, Lou's team today announced a whole raft of New Relic tools. But one of the things that they announced was the ability to essentially build these new widgets, using a React widget, and pull data from other sources. So that's the area some of the customers are looking at as far as taking your spam widget and connecting it into both AWS Budgets and Service Catalog. I don't know if you want to give us your thoughts on that. >> Todd: I, I already talked a little bit about it but it's, it's, it's where we can go. Like the future if almost, almost, uh, infinity right now. What we can go do together. We are trying to align to several of the programs Dave mentioned around Service Catalog, Migration Hub, focus on a couple different use cases of what, um, ever migration has a bunch of nuances and every optimization story has a bunch of nuances. But how can we create the right application, which are a starting point, opensource, put, put the repository up on get up and then allow customers and partners to go and fork that, do what they want to match, kind of of standard use case and maybe eighty percent of the way there. But then it needs a little but of tweak, a little bit of customization basesd on whatever that customer's situation is. We've enabled the entire, uh, community of millions apps that are going to migrate to the AWS cloud over the next couple of years. We've enabled that with what we've launched today. So, the, uh, the future is, is infinity and beyond. >> Stu: All right, well, Todd and Dave, thank you so much for the update. We look forward to seeing what gets announced at AWS Reinvent, which, of course, it'll be our seventh year of having theCube there. Big presence, uh, please reach out if you want to talk to us ahead of time. And check out theCube.net, of course, where you can see, uh, where we will be, including, of course, AWS Reinvent, uh, in December, uh, in Las Vegas. So, This is theCube at Future Stack 2019. I'm Stu Miniman. Thanks for watching theCube.
SUMMARY :
Brought to you by New Relic. and Dave McCann is the Vice President at the AWS shows a couple of times. and cost of how that migration, uh, the marketplace, uh, you know is, and New Relic feeds the data right into the TSO tool. And the question is, "At what speed?" And the financial piece has always been of all of the Cox application onto the AWS Cloud. of announcements at the show, especially and some of the on PRIM data that some of the joint work that's being of many customers that we have in common. The beauty of the partnership we have there iterating and adding a lot of the last and on the tag of the template, and maybe eighty percent of the way there. Big presence, uh, please reach out if you
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Guy Fighel, New Relic | New Relic FutureStack 2019
>> Reporter: From New York City, it's theCUBE, covering New Relic FutureStack 2019, brought to you by New Relic. >> I'm Stu Miniman, we're here in New York City right next door to Grand Central Station, at the Grand Hyatt. This first year of theCUBE, attending New Relic's Futurestack, the seventh year of the show, and happy to welcome to the program, Guy Fighel, who's the vice president and general manager of New Relic AI of course, CEO was up on stage this morning announcing New Relic AI, it's in beta, Lew said expect early 2020 for to come out, so thank you so much for joining us. >> Thank you for being here. >> All right, so Guy, you came to New Relic by way of the acquisition of signifAI. And that ends in AI of course, even though we pronounce it signify, so help us understand is this a repackaging, rebranding you know, New Relic-izing the product that was through the acquisition, tell us how we've gotten here. >> Yes, sure, so New Relic AI is a whole new set of capabilities, it's a suite of capabilities that we are launching today in beta that pretty much augments the site reliability engineers with AI and ML capabilities. It runs on top of the New Relic One platform, which is the first observability platform that is connected, open, and programmable so you have all of the existing information and data that you already have inside New Relic. And we've incorporated a lot of the technologies and the techniques that we have developed as part of signifAI with existing capabilities that New Relic already had, and pretty much integrated all of that into single user experience and single type of capabilities across the stack. >> All right so, Guy, AI is a really broad category you know, you got your AI and ML and cognitive and you know all these things, what was kind of the core IP of SignifAI when they came in. >> Sure, so we really focused on correlating and reducing the noise of all of your different alerts and incidents but not just that, we've actually built a recommendation engine on top of that, to provide you much faster context to get into potential root cause of all of your different information focused on events. And now we're combining that with all the time series data that New Relic as a platform has to offer, so you're getting a much broader capabilities for understanding. >> Yeah, you know, definitely there's that promise of AI as we know that humans alone or my traditional tooling just can't keep up, you know, talk about all the different sources of data, the volume of data. I just saw Lew talking about the amount of the millions of items being ingested into the New Relic database, and the billions of items that are being read basically per second. So, help us understand. You say we love, we talk about our videos or extracting the signal from the noise, so, did I hear it was like 80, 85% your early customers are helping to reduce that noise Bring us in a little bit more. >> True, yes, so definitely early results shows us over 80% noise reduction for some of the customers and it is important to understand this is automatic relations, so this is truly based on the engines with no human interaction. Now, we actually have even greater results when some user input is driven into the system and that raises the capabilities as well. In terms of the number of events, yes, we are dealing with huge amount of events and information in the platform and I think it's, all around, not replacing the humans, but actually augmenting the site reliability engineers, so you talked about how systems, you know, there is a great promise for those capabilities. We believe that applied intelligence is a much better term, because it gives really enabling the augmentation for the site reliability engineers. We don't believe that site reliability engineers needs to go away or can even be replaced anytime soon. We definitely think that we can help them understand better and faster, what is the type of problems that they see in their production environments, and then help them resolve that much faster and better. >> Yeah, absolutely, we're huge supporters of really, the best solutions are when you have the people plus machines, there are certain things the machines are going to do on their own, but it's the marrying, so help us understand who's going to be using New Relic AI how is it going to change their day-to-day life and maybe even kind of organizationally, what the impact will be. >> Sure, so if you're a site reliability engineer, or a DevOps themed depending on, how you want to call yourself and, you know, there's a big debate in the industry, whether it's DevOps or site reliability engineers. Pretty much anyone who is responsible for Op time in the digital production environments you're a relevant user, If you carry the pager, if you're on call, you're a relevant user, so you're going to be interacting with the system to be able to actually see what are the problems with potential recommendations and then, you can infuse the system with your own logic. Whether it's based on the logic, we also provide very easy user experience we'd like thumbs up, thumbs down, different types of feedbacks as part of the workflow and I think the most important piece is that we're connecting to users where they are. Meaning, we don't believe we need to change the workflows so, if you're a user and you're already using with a specific internet management providers and you've already connected some of the additional monitoring tools to those providers, we now offer you a streamline of syncing to those instant management platforms and then, in reaching them with all of the information that we already have on the platform. >> So Guy, we've talked about AI but, let's talk a little bit about AI Ops. So, you know I've talked to the number of the vendors I actually went to an AI ops conference earlier this year and some of the talk track was, APM is the old way, AI ops is going to replace what you were doing before Let's take all your scattered tools and consolidate them down. some of the messaging reminds me of what I heard this morning, the New Relic One platform is going to replace a number of tools, pull everything together. Help us kind of, you know, square that circle of APM and AI ops and where you see New Relic compared to some of those competitors out there today. >> Sure, so APM is application performance monitoring. it's all about monitor and have that visibility to your application layer, it has nothing to do with AI ops it has nothing to do with replacing the tools. We believe that everyone should have visibility into their application, and that's, a lot of that messaging came through Lew's key note this morning, and opening it up to any type of open source instrumentation so we can bring it to the platform whether you want to drop an agent, whether you want to use any other open source SDK, we allow you to do that. Pretty much opening up the platform and giving you the option. AI ops is a term coined by Gardner actually, and it is pretty much applying some automation, AI capabilities, ML capabilities, statistical analysis capabilities on huge amount of data that you have in a centralized place. It has nothing to do with the monitoring, per se, so, I definitely think that the industry's going into a new space, where there is a consolidation obviously with different vendors. I believe that New Relic is giving customers the choice to make, whether they want to go and continue using their old tools, and that's okay, and we are an open platform so we will sync up with their data as part of New Relic AI we'll be able to bring in the new data whether by, again inter-connecting with their incident management platform or through a rest API or native integrations or if customer choose to do that, they can just send us all of the data directly and then, we apply the AI ops capabilities on top of the existing platforms. So, it's really opening up for the choice of the customer. >> All right it's been less than a year since the acquisition of SignifAI we know that some of the things when you do an acquisition it's an area of investment, you're going to get more resources, more people but, you've mentioned customers a couple of times, maybe give us a little bit of insight as to how the customer conversations have changed now working for New Relic, as opposed to being a customer understanding that piece of the New Relic ecosystem. >> Oh absolutely, I think, you know, as you transition from a small start up into a company like New Relic you get much more exposure to enterprise customer, your scaling capabilities are much better so we're in serious conversations with a lot of the enterprises customers that have a lot of interest in what we do. A lot of it is part of the branding recognition and all of the great capabilities that New Relic has already, and then marinade that with all of the capabilities that we're bringing or that we brought into New Relic as a young start-up with all of the latest technologies and a lot of the AI capabilities which are truly innovative ones, so definitely see a lot of traction from the enterprise customers, the more sophisticated ones as well. >> All right, so the solution announced today is in beta give us a little bit of a look forward as to what we should expect to see and what feedback you're hoping to get from customers along the way and how they might get engaged if they want to. >> Yeah so definitely we are in beta today. We've engaged with customers prior to the beta, so, we already got a lot of feedback and great feedback and we make some tweaks to the product based on that. We're actually announcing AGI of a small feature today which is enhanced incident context, which provides you active detection for time series data all the way to your slack channels but the overall solution is currently in beta and as we are progressing, within every month we're going to get more and more customers engaging with the platform, and then we're going to release a much more advanced capabilities even than what we have today in GA coming early next year. >> All right great, last thing, big mention and push about observability this morning, help us understand where AI fits into the broader discussion of observability. >> So again, as I mentioned before the observability will allow you to see all of your data in a centralized place. So, it's combining matrix, events, logs and traces in a specific place that now algorithms and different techniques such as AI and ML based algorithms really, really be successful in gathering, understanding, because you have all of that different information for the human brain, it's very hard to actually go and crawl and kind of ingest all of that vast amount of different data points for machines, they're very good at that. They're starving for broad amount of data and so having that capability, building on top of a true observability platform is what makes the AI and ML so successful and drive value to customers in really understanding what the data means. >> All right well, Guy thank you so much for sharing best of luck on the journey towards GA for the the full New Relic AI in the future. We look forward to, launching it. >> Thank you so much. >> All right and once more here, walking through at the New Relic Futurestack 2019, here in New York City. I'm Stu Miniman and thanks for watching theCUBE. (upbeat music)
SUMMARY :
brought to you by New Relic. of the show, and happy to welcome to the program, of the acquisition of signifAI. a lot of the technologies and the techniques and you know all these things, the noise of all of your different alerts and incidents of the millions of items being ingested and that raises the capabilities as well. the best solutions are when you have and then, you can infuse the system with your own logic. is going to replace what you were doing before the choice to make, whether we know that some of the things when you do an acquisition and a lot of the AI capabilities which are truly All right, so the solution announced today is in beta and as we are progressing, within every month into the broader discussion of observability. the observability will allow you best of luck on the journey towards GA at the New Relic Futurestack 2019, here in New York City.
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Glenn Nethercutt, Genesys | New Relic FutureStack 2019
>> from New York City. It's Theo Cube covering new relic Future Stack 2019. Brought to you by new relic. >> Welcome back on stupid a minute. This is the cubes coverage here of future stack 2019 new relics. 70 year they're doing the show is the U. S. Show. They actually bring these few locations around the globe, right next door to Grand Central Station and about 600 in attendance. And been really excited to kick off with the number of the users here at the show and happened. Welcome program. First time guests. Another cut. Who is the technical fellow in chief? Architect with Genesis. You been at the event a number of times. You're speaking at the event today, but let's start with Genesis. Customer experience is something that I think a lot of people been hearing about on. That is the product. The Genesis has tell us a little bit about the company itself. Sure. >> Yeah. So, Genesis, uh, brain that Maybe not. Everybody knows, but they certainly transitive Lee know us. We're a customer experience platform. We like to say that we're a technology company, but we power. The experience is about 25 billion customer experiences every year for 11,000 plus customers. About 1000 different countries around the world s So we are all about having a connection between brands and their customers, and we enable that >> s o not only some of the cloud shows. I was an enterprise connect earlier this year and definitely was, you know, something I heard a lot about see Exit really important Not only how customers interact with the brand, but internally how you know we treat the employees and that interaction is something that that is raised up. People are kind of important inside, but we're going to talk too much about the people here. We're gonna talk about the technology as the chief architect of this gives a little bit about what you have your arms around in a responsible for >> sure s o for for me, of the project. Your cloud was the name for for a long time, Genesis Cloud as of yesterday. So we are a public cloud offering as a CX platform and I say platform because we made the transition from just being a product to a platform. In my opinion last year, more than half of our FBI work is actually code we didn't right? So I think people using you as a programmable thing is when you become a platform. So I'm responsible for things like cloud architecture for understanding. Let's say industry trends. What technologies? We're gonna use a lot of eight of us service designed technical vetting, general cat hurting that sort of thing, >> Right? So you said your public cloud, but you said it sits on top of AWS. But it's a platform that your customers can then build on top. >> That's right. That's right. So we like to think of ourselves as C X. As a service. We've had some that use us still like a product all shrink wrapped, ready to go, others that want to extend us either writing their own. You guys writing their own back ends their own integration points. We make all of that possible. >> All right, so I'm expecting you have a bit of an opinion when it comes to that platform, As Lou said with a capital P A, and it's gotta be programmable, it's gonna be open. Tell us what your thoughts about new relic kind of entering, you know, new relic one being they said today the first, and only if their claim of observe ability platform s o give us your thoughts around. >> Absolutely. Yeah. S O. I like to think that we have been using the relic as a platform for awhile, whether they knew it or wanted it or not way have a fairly rigorous continuous delivery pipeline. And we are very big believers in infrastructure is code and develops principles. So for us, the engineering teams don't just own the code that they write, but they own the infrastructure definitions. They even own alert definitions, dashboard configurations. And we push that information directly into the relic as our deployments happen. Live hundreds of times a week around the globe. >> All right, so how do these modern architecture's enable you to run a team? >> I can't imagine trying to manage 350 plus Micro service is in production, which is roughly what we have today over 1000 Lambda Functions way can't improve what we don't measure. Everyone likes to say that, but it's true. I have a little bit of an a p m background from from places past. So I was a firm believer that you need to invest early and observe ability and metrics. So we've been a day one kind of new relic subscriber in the cloud space. Everything from understanding how the infrastructure parts work now to serve earless. It's all been about moving up the value stack like commodity metrics of servers is great and still needed. But transactional information and now trace information is absolutely essential. >> Okay, in the Kino this morning, they walk through their metrics events, logs and traces. Where are you with, you know, these various sources of data and harnessing the value of that. >> So I would say, with fairly early towards the tracing part before new relic headed as a managed thing they had cross at tracing. I'm sure you're familiar with that sort of the prior incarnation of distributed tracing on. We leverage that pretty pretty heavily, but it obviously doesn't have quite the same utility a cz what the new open tracing standards provide s so we do things like having correlation i d. S. That let us tag and follow things around. Now we just get to off load that from our team's being as responsible for it. And now the platform gives it to us. >> Yeah. Glen is open source important to your organization? >> Absolutely. We try Thio, give back some ourselves. In fact, one of the one of the nerd lets the nerd packs that Lou mentioned on stage was one that our team wrote s Oh, yeah, way believe not only that, we need a p i's and programmatic access to do our jobs, but we like toe enable and help other people with the same >> Eric Spence got a shout out on the Maquis note was that the thing that you were talking about it is >> I expect to see us probably released two or three more nerd packs before the end of the year Way, way are eager to do that rather than just investing in all of our own. You I that we had glass over the top of the relic. Now we actually just get to put those components deeper inside of new relic proper. >> Okay, eyes there. Anything else from the announcements this morning that you're looking forward to leveraging? >> So I think there's there's definite changes in the A p M space. You'll hear a little bit more, probably in the deep dives one of the talks I'm having later with not even she will be talking about. Some of those things were definitely interested in that. Open telemetry has some value. Greater Genesis definitely has investments around things like Prometheus and other sorts of monitoring. So if I'm not talking about just the public cloud side of it and other aspects there definitely things we can leverage. >> All right, Glenn gives us share a little bit, if you can. About what? What you're talking about here at the show. So one of >> the big mitts is entity centric. Observe, ability. The idea again that we're not just looking at servers and static infrastructure. We're looking at things that are very ephemeral. We have a lot of dynamics scale on our platform on. We need ways to actually frame what we're looking at at the level of Micro Service's but often level like business applications. So even when we're creating some of these extension points like the one you just mentioned way framed that within the context of a service that does a particular vertical slice on dhe, that's that's kind of where we like to invest. So we like to live. >> Okay, um, you know what's what's on your road map of? You know where you're going with your journey and is there anything that you're looking for? Beyond what was announced today from new relic ER from the ecosystem at large, >> I think there's lots of refinements of what was announced today that will help us theeighty I ops side, I think not just for noise reduction, but also for like, early early signal detection. It's a pretty fascinating space. Will likely invest some of our own dollars in times trying to help that along. Definitely Ah, lot of distributed tracing and Maur investment. There is a big piece for us. I think the A PM space. There are areas that I'd like to see a peon vendors invest in that goes beyond what now, I guess, is becoming more, more traditional, like transaction information. We have a lot of a i machine learning ourselves, and I think monitoring those types of workloads is going to be very different. As big of a paradigm shift as it was to go from classic monitoring Transactional. I think we're about to see that happen again in the >> industry. Yeah. What can you share some of the kind of the A I journey that you're going through a genesis where you are, You know what the maturity level is of solutions that you're using and >> sure way have a fairly robust aye aye team on products range from in the W m space back to the people that you mentioned at the first part of the talk way have workforce optimization, workforce management, and we brought a I algorithms to that a lot of time. Siri's forecasting that used certain machine learning techniques. We've invested a fair amount in until you and Opie any are so everything from sentiment detection to live transcription that we built in house to our own body engines that d'oh the new dialogue management. So we have a fairly robust bit there and some on the management side on the operational back in that we used to try to improve our quality of service on reduced any sort of incidents on the platform. >> All right, it's your third year. Third time coming to this show was what brings you back? What you excited about? I kind of dig in and take away from the event this year. >> I think the relics always been a partner in my stance, not just a vendor we believe so deeply in the observe ability message that one I want to be part of shaping that narrative. Eso coming to future sack actually talking to a lot of other executives, seeing where they're going and kind of sharing that use case, but also trying to be a little bit of a lighthouse. Thio, the new relic team as well, is what brings me back every year. >> Observe ability is something that it hurt. A number of startups talking about in the last couple of years were, in your opinion, does new Rolex it compared to the marketplace overall, obviously, they just kind of announced the observe ability, you know, full suite with new relic one. But you know what your viewpoint is? Toe have their wealth, their position? >> Where did I think their position? I think they are best of breed for what we're currently seeing. Owners of ability. There are other things, I think, where we could cobble together bits from multiple vendors but frankly, having application performance monitoring along with infrastructure, along with data being cold from the cloud platforms that we're all in, like, eight of us. They've got a unique place. I think the power of their agent technology has proven itself over time as well. My guidance to most other other companies that I speak with about this subject is don't just trust that it's all magic invest on. And I think they make themselves easy to invest in on. I think this platform play is a good one for them. >> All right. Well, another cut. Thank you so much for joining us. Sharing your journey, What we're doing in the best of luck on your presentation today. Thank you, sir. All right. Be back with lots more coverage here from a new relic. Future stack 2019. I'm still Minutemen. And thank you for watching the Cube.
SUMMARY :
Brought to you by new relic. the globe, right next door to Grand Central Station and about 600 in attendance. About 1000 different countries around the world s So we are all about having of this gives a little bit about what you have your arms around in a responsible for So I think people using you as a programmable thing is when you become a platform. So you said your public cloud, but you said it sits on top of AWS. So we like to think of ourselves as C X. As a service. of observe ability platform s o give us your thoughts around. And we push that information directly into the relic as our deployments happen. So I was a firm believer that you need to invest early and observe Okay, in the Kino this morning, they walk through their metrics events, logs and traces. of the prior incarnation of distributed tracing on. and programmatic access to do our jobs, but we like toe enable and help other people with the same You I that we had glass over Anything else from the announcements this morning that you're looking forward to leveraging? So if I'm not talking about just the public cloud side of it and other aspects there definitely things we can leverage. All right, Glenn gives us share a little bit, if you can. So even when we're creating some of these extension points like the one you just mentioned way I think there's lots of refinements of what was announced today that will help us theeighty I ops side, through a genesis where you are, You know what the maturity level is of in the W m space back to the people that you mentioned at the first part of the talk way I kind of dig in and take away from the event this year. Thio, the new relic team as well, A number of startups talking about in the last couple of years I think they are best of breed for what we're currently seeing. And thank you for watching the Cube.
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Josh Biggley, Cardinal Health | New Relic FutureStack 2019
(upbeat techno music) >> Announcer: From New York City, it's theCUBE, covering New Relic FutureStack 2019, brought to you by the New Relic. >> Hi, I'm Stu Miniman and this is theCUBE's exclusive coverage of New Relic's Futurestack 2019 here in New York City, seventh year of the show. Our first year here, about 600 or so in attendance, and real excited, because we've had some of the users here to help kick off our coverage. And joining us, first time guest on the program, Josh Biggely is a senior engineer of Enterprise Monitoring, with Cardinal Health coming to us from a little bit further north and east than I do, Prince Edward Island, thank you so much for coming here to New York City and joining me on the program. >> Yeah, thanks for having me Stu, I'm excited to be here. I haven't been in New York, it's probably been more two decades. So it's nice to be back in a big city, I live in a very small place. >> Yeah, so if you go to Times Square, it's now Disneyland, is what we call it. It's not the 42nd street that it might've been a couple of decades ago. I grew up about 45 minutes from here, so it's gone through a lot, love the city, especially gorgeous weather we're having here in the fall. >> I'm excited for it. >> All right, so Josh, Cardinal Health, health is in the name so we think we understand a little bit about it, but tell us a little bit about the organization itself and how it's going through changes these days. >> Sure, so Cardinal Health is a global healthcare solutions provider. We are essential to care, which means we deliver the products and solutions that your healthcare providers need to literally cure disease, keep people healthy. So we're in 85% of the hospitals in the United States, 26,000 pharmacies, about 3,000,000 different home healthcare users receive products from us. Again we're global, so we're based in Dublin, Ohio, just outside of Columbus. But obviously, I live in Canada so I work for the Cardinal Health Canada Division. We've got acquisitions around the world. So yeah, it's an exciting company. We've recently gone through a transformation not only as a company, but from a technology side where we've shifted one of our data centers entirely into the cloud. >> All right, and Josh, your role inside the company, tell us a little bit about, you said it's global, what's under your purview? >> So my team is responsible for Enterprise Monitoring, and that means that we develop, deploy, support and integrate solutions for monitoring both infrastructure applications and digital experience for our customers. We have a number of tools, including New Relic, that we use. But it's a broad scope for a small team. >> Stu: Okay, and you've talked about that transformation. Walk us through a little bit about that, what led to, as you said, some big moves into public cloud? >> Yeah, our team is part of an overall effort to allow Cardinal Health to be more adaptive, to be more agile. The move to cloud allows teams that are developing applications and platforms to make a decision how to respond to the needs of their customers more rapidly. Gone are the days of, "I need a new server, "I need to predict six months from now "that I'm going to need a new server, "put the order in, get it delivered, "get it racked, get it wired." We watch a lot of people, the provision on demand. I mean, our senior vice president, or my senior vice president, likes to say, "I want you to fail fast, fail cheap." He does not say fail often. Although sometimes I do that, but that's okay. As long as you recognize that you're failing and can roll that back, redeploy, It's been really transformative for my team in particular, who was very infrastructure focused when I started with the company five years ago. >> Stu: All right, and can you bring us inside from your application portfolio, was it a set of applications, was it an entire data center? What moved over, how long did it take, and can you share what cloud you're using? >> Sure, so it's been about a two year journey. We're actually a multicloud company. We've got a small footprint in Azure, small footprint in AWS, but we're primarily in Google Cloud. We are shutting down one data center, we are minimizing another data center, and we've moved everything. We've moved everything from small bespoke applications that are targeted on team to entire ecommerce platforms and we've done everything from lift and shift, which I know you don't like to hear. But we've done lift and shift, we've done rehosting, we've done refactoring and we have re-architected entire platforms. >> Yeah, so if you could expand a little bit when we say lift and shift, I'm fine with lift and shift as long as there's another word or plan after that which I'm expecting you do have. >> Josh: Yeah, absolutely. So the lift and shift was, "Hey, let's move from our data centers into GCP. "Let's give teams the visibility, the observability "that they need so that they can make the decisions on "what they need to do best." In a lot of cases, or in fact, in 15% of the 6,500 severs that we touch, we actually full out decommed the instance. Teams had them, they were running at our data centers but they weren't actually providing any value to the company. >> So you said your team before was mostly concerned about infrastructure and a lot of what you did is now on GCP so you fired the entire team and you hired a bunch of PhDs to be able to manage Google environments? >> Absolutely not. (laughter) The principals of enterprise monitoring as a practice still apply in a cloud. We are, at heart, data geeks. And I would fair say that we're actually data story tellers. Our job is to give tools and methodologies to application teams who know what the data means in context, but we give the tools to provide that data to them. >> Stu: All right, love that. I believe I've actually seen data geek shirts at the the New Relic shows itself. But data story tellers, that was kind of thing that you heard, "I have a data scientist "that's going to help us to do this." Is that data scientist in New York or are you actually enabling who is able to tell those data stories today? >> So that is the unique part. Data story telling is not a data science. I wish that I could be a data scientist, I like math, but I'm not nearly that good at it. A data story teller takes the data and the narrative of the business, and weaves them together. When you tell someone, "Here's some data." They will look at it and they will develop their own narrative around it. But as a story teller you help craft that narrative for them. They're going to look at that data and they're going to feel it, They're going to understand it and it's going to motivate them to act in a way that is aligned with what the business objectives are. So data story tellers come in all forms. They come as monitoring engineers, they're app engineers, but they're also people who are facing the customer, they're business leaders, they're people in our distribution centers who are trying to understand the impacts of orders in their order flow, in their personnel that they have. It is a discipline that anyone can engage in if we're willing to give them the right tools. >> All right, so Josh, you got rid of a data center, you're minimizing a data center, you're shifting to cloud, you're making a lot of changes and now being able to tell data stories. Can you tell us organizationally everything goes smoothly or are their anythings that you learned along the way that maybe you could share with your peers to help them along that journey? And any rough spots, with hindsight being what it is, that you might be able to learn from? >> Yeah, so hindsight definitely 20/20. The one thing that I would say to folks is get your data right. Metadata, trusting your data is key, it's absolutely vital. We talk a lot about automation and automation is one of those things that the cloud enables very nicely. If you automate on garbage data, you are going to automate garbage generation. That was one of our struggles but I think that every organization struggles with data fidelity. But teams need to spend more time in making sure that their data, specifically their metadata, around, "Hey is this prod, is it non-prod, "what stack is this running, who built it?" Those things definitely need to be sorted out. >> Okay, talk about the observability and the monitoring that you do, how long have you been using New Relic and what products? And tell us a little about that journey. >> Sure, so we've been using New Relic for about two years. It was a bit of a slow run up to its adoption. We are a multi-tool company so we have a number of tools. Some of them are focused primarily on our network infrastructure, our on-prem storage. Although Cardinal had moved predominantly to the cloud, we have distribution centers, nuclear pharmacies all around the world. And those facilities have not gone into the cloud. So you've got network connectivity. New Relic for us has filled our cloud niche and observability, as Lou announced, is going to give us context to things that we're after. You hear the term dark data, we call them obs logs. It's data that we want to have, we only need it for a very short period of time to help us do post-op or RCAs as well as to look at, overall in our organization, the performance of the applications. For us, New Relic is going to give us an option to put data for observability. Observability is really about high fidelity data. In its world of cloud, everyone wants everything right now. And they also want it down to the millisecond. A platform that can pull that off, that's a remarkable thing. >> Yeah, Veruca Salt had it right, "I want it now." So are you using New Relic One yet? >> We have been using New Relic One for at least a couple of months going back into March this year. It's exciting, we're one of those companies that Lou talked about in his key note, we have hundreds of sub accounts. And we did so very intentfully, but it was a bit of a nightmare before we got to New Relic One. That ability for a platform team to see across multiple sub accounts, really powerful. >> Okay, so you saw a lot of announcements this morning. Anything particular that jumped out, you were excited? Because Lou kept saying over and over, and if you're using New Relic One, "This is free, this is free, this is free." That platform where it's all available for you now. >> I think the programmability is one of the things that really got me excited. One of the engineers on my team had a chance to go and sit with Lou and team, two weeks ago, and was part of that initial Hackathon. Made some really interesting things. That's exciting so shout out to Zack and the work he did. Logging, for me, is something that is huge. I know we've got data that we should have in context. So that Lou announced five terabytes of ingestion for free, all I could do was tap my fingers together and think, "Oh, okay. You're asking for it, Lou. Challenge accepted." (laughter) >> Stu: That's exciting, right. So you feel that you're going to be building apps, it sounds like already, at the FutureHack. That you're starting to move down that path. >> Definitely, and I'm really excited. Not to necessarily give it to my team. We build the patterns for teams that needs patterns, but there are so many talented individuals at Cardinal Health who, if we give them the patterns to follow, they're just going to go execute. Open sourcing that is a brilliant idea and really crowd sourcing development is the way to go. >> Yeah, I think you bring up a really interesting point. So even though your team might be the one that provides the platform, you're giving that programmability, sensibility to a broader audience inside the team and democratizing the data that you have in there. >> Yes, you keyed in on one of the things I love to talk about which is democratized access to data. Over and over again you'll hear me preach that, "I know what I know but I also know what I don't know "and more particular I don't know what I don't know. "I need other people to help me recognize that." >> We've really talked about that buzzword out there about digital transformation. When it is actually being happened, it goes from, "Oh, somebody had an opinion," to, "Wait, I actually now can actually get to the data, "and show you the data and leverage the data "to be able to take good actions on that." >> That's right, data driven decision making is not just just an idiom. It's not something that is a buzzword, it is a practice that we all need to follow. >> Stu: All right, so Josh, you're speaking here at the show. Give our audience just a quick taste, if you will, about what you're going to be sharing with your peers here at the show. >> We've actually talked about a lot of it already so I hope that people are not going to watch this session before my session later. But it really is around the power of additional transformation, the power of observability, what happens when you do things right, and the way the cloud makes teams more nimble. I won't give you it all because then people won't watch my session on Replay but, yeah, it'll be good. >> Well, definitely they should check that out. I'm hoping New Relic has that available on Replay. Give the final word here, what you're really hoping to come out of this week. Sounds like your team's deeply engaged, you've done the Hackathon, you're working with the executive teams. So FutureStack 2019, what are you hoping to walk away with? >> For me, it's about developing patterns. My team, in addition to our enterprise architecture team, is responsible for mapping out what we're going to do and how we're going to do it. Teams want to go fast and if we're not going to lay down the foundation for them to move quickly, especially in the realm of enterprise monitoring, they're going to try do it themselves. Which may or may not work. We don't want to turn teams away from using specific tools if it fits, but if there's a platform that will allow them to execute and to keep all that data centralized, that is really the key to observability. Having that high fidelity data, but then being able to ask questions, not just of the data you put in, but the data that put in maybe by a platform team or by a team that supported Kubernetes or PCF. >> All right, well, Josh Biggely, thank you so much for sharing all that you've been going through in Cardinal Health's transformation. Great to talk to you. >> Thanks so much, Stu. >> All right, lots more here at New Relic's FutureStack 2019. I'm Stu Miniman and as always, thank you for watching theCUBE. (light techno music)
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brought to you by the New Relic. and joining me on the program. So it's nice to be back in a big city, Yeah, so if you go to Times Square, health is in the name so we think We are essential to care, and that means that we develop, deploy, support what led to, as you said, some big moves into public cloud? and platforms to make a decision to entire ecommerce platforms Yeah, so if you could expand a little bit in 15% of the 6,500 severs that we touch, to application teams who that was kind of thing that you heard, and it's going to motivate them that maybe you could share with your peers that the cloud enables very nicely. that you do, how long have you been is going to give us context to things that we're after. So are you using New Relic One yet? to see across multiple sub accounts, really powerful. Anything particular that jumped out, you were excited? That's exciting so shout out to Zack and the work he did. So you feel that you're going to be building apps, and really crowd sourcing development is the way to go. and democratizing the data that you have in there. "I need other people to help me recognize that." "Wait, I actually now can actually get to the data, it is a practice that we all need to follow. Give our audience just a quick taste, if you will, so I hope that people are not going to watch this session So FutureStack 2019, what are you hoping to walk away with? that is really the key to observability. Great to talk to you. thank you for watching theCUBE.
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Dirkie Gertenbach, AB InBev | New Relic FutureStack 2019
(upbeat music) [Narrator] - From New York City, it's theCUBE. Covering New Relic Futurestack 2019. Brought to you by New Relic. >> Hi, I'm Stu Miniman and the theCUBE's exclusive coverage of New Relic Futurestack 2019. We're here at the Grand Hyatt which is right next to Grand Central Station in beautiful Manhattan, New York City. We're going to be speaking to a number of customers as well as the executives. It's the seventh year of the show, our first year here and helping me kick off the event, always happy to have a customer on. Dirkie Gertenbach, who's the global B2B engineering lead at AB InBev, a local customer here. Dirkie, thank you so much for joining us. >> Thanks, nice to be here. >> Alright, so, nothing better than getting together with a bunch of your peers you know, downtown New York City, talk about, you know, some cool technology. Before we get into the tech though, I think most people understand AB InBev you know, global beverage brand, really well-known, I know I saw beer trucks when I was making my way through New York City. But tell us a little bit about, kind of, the company and your role inside it. >> Yeah, sure. So, yeah, we're a global beer company, we sell beer. My main focus is the engineering lead at InBev and we look specifically at the e-commerce side of it. So, the digital sales. We've been going through a large transformation these last couple of years, where we flew from more traditional sales to like, digital sales, and we've been implementing our e-commerce platform in a couple of countries the last couple of years. >> So, transformation, it's not just that AB InBev goes from a couple of the largest known brands, you know, in the beverage to "oh boy, now there's so many different micro beers and and different things, I know I can't keep up with all the locals", but even a large brewery like your company - has all little brands, a similar thing I guess is happening on the technology side. >> Yeah. >> Yeah, maybe, tell us a little bit about you know, what that transformation, you know, what's causing that transformation and what is happening inside your or, to support this transformation? >> Yeah sure. So when we started off the digital transformation obviously, it was much simpler. We had a couple of applications in only one or two countries. And in these last two years we've been expanding and we've been implementing it in other countries and we've started moving from a monolithic to a more micro service central so obviously it's like not only one application now, it's like, it's hundreds of applications. In the beginning, it was quite tough because we were moving, we were developing stuff much more quicker than what we could support and that's when we started talking to New Relic. And we looked at their product and looking at a couple of ways of streamlining this operational and having more of a a stability on our products overall. Like, there's still have a lot, we are still immature in a lot of spaces. >> Yeah, so bring us in. You talked about you applications. You know, so many customers are going from their monolist to their micro services but they usually have, you know, that transition is not something that's done overnight, and they need to be able to manage all of that environment. Give us a little bit of view into, you know, what you can about your application portfolio, where you are on that journey and then, you know, what tool sets are you using to be able to manage, monitor and you know, the word of the day of course is observability, so you know, what that means to you and your-- >> Yeah sure, so like I said we've (mumbles) into micro services which is (mumbles) There's a lot of different applications that's running and the main thing that it showed is just having visibility on infrastructure as well as application performance. And application where it's optimal or not. So those are the most basic. We got New Relic involved and that's one of the main tools that we use for observability today. We were using a couple more but we are, like, putting everything into one bucket now. So, it's interesting, the new stuff. What they announced today, that's one of the stuff that we've been missing that's really going to help us. Especially the data base monitoring and the network monitoring. That's something to all our stuff is on Azure so we rely a lot on Azure monitoring. But it doesn't always give you that granularity of like, observability. One of the other things that we are excited about is the, what's the other thing? Sorry, I forgot, I'll come back to you. >> That's all right. So first of all, you know, are you using New Relic One from New Relic? >> We're starting to use it now, so we still use-- >> So walk us through a little bit the journey with New Relic. What products were you using? And tell us where you are with the platform and what you think of the vision of, as Lou said, it's a capital P platform in certain characteristics, that New Relic built when they had in mind? >> Okay, yeah, sure. So in the beginning we were using the browser and Sonetics just like a normal looking whether that website is up or down, and then we started looking so we've got ABM running on every single server we've got now, that gives us like a lot of visibility and we use the insights a lot, so just dashboards. What we found in the new One platform is the dashboard so we can create the linear of data and the visibility that we can give to our stakeholders. It's much better. Just the visibility on the different. I can give you a couple of used cases that we've gone through in these last couple of weeks. So for example, on one of our applications we're having like, login failure, a lot of login failures. And we are really struggling to look at locks and stuff and just pinpointing with that. So on all the data that's coming into New Relic, we started creating dashboards where we can actually see what's the different causes of these login failures and we can actually pinpoint where do we need to put our focus? So it was a good example. And then the other nice thing that I like about the one that we are using actively is the Kubernetes monitoring. It gives you visibility of your entire cluster every single product that's on there and you can just quickly see if there's a part that's struggling or not. >> All right. If you can, I was wondering if you could bring us inside your Kubernetes? How long have you been using it? Do you build your own or using one of the cloud or some other solutions? Tell us a little bit about your stack. What that solution, and where New Relic fits into it? >> Yeah, we started off the Kubernetes just over a year ago. We're using Azure AKAs. So all our stuff is in Azure. And so yeah, in the beginning, we built all of the applications and everything ourselves, so it's all out set. And again, just coming back to monitoring within Kubernetes, it's all controlled. Like (murmurs) It's difficult to have clear visibility so yeah, when they brought out the Kubernetes like monitoring that was like a life changer for us. It's just operations, we're being much more productive now in terms of if we need to scale up and whether our reports are healthy or not that definitely helps a lot. And I think that we've been working (mumbles) It's just the DevOps, we're very new in DevOps, and just the visibility that New Relic gives us helps us a lot in like, pinpointing where we need to focus our DevOps effort. So that's also a good help. >> Stu: Okay. You'd mentioned that there was some things announced that had you excited, things that you'd been looking for. Maybe you can explain, you know, which items jumped off the board at you this morning. >> Yeah, so again, just the database monitoring and the network traffic. That's very important. And then the one thing that's, we were just busy investigating a lock analyser. And the lock ingestion that they announced today that's very exciting. So I mean, we're already in New Relic so I think we're definitely going to look at that. That's going to be a big help. And then it just brings all our data together. And after you've used different tools for locks and monitoring, that's something that makes me very excited. And the other thing is, we're also use SAP in (murmers) and the partnership that New Relic is staring with SAP now, that's also very exciting. Something I'm seeing forward to. >> Stu: Okay. Was there anything you were hoping for that you haven't seen yet? Or anything on your wishlist that you want from either New Relic or from Azure, or from the industry as a whole? >> Nothing yet. I mean, like I said, we're still at early stages. I think maybe in the next year or so we're probably going to start saying, "Hey guys, maybe you need to build this as well" but for now it's just like they keep delivering stuff that before we can even think about it. So that's great. >> Uh, Dirkie, it's your first year coming to Futurestack. What specifically bought you hear? What are you hoping to get our of the day? >> Yeah, it's my first time here. Hopefully I'll come, like I said, I've only got a couple of hours today but I think just in terms of seeing the new stuff that can help us in our operations, our business operations and as well as Stave Apps, it's exciting to see how this can transform our business going forward. In terms of what else I want to see, I don't have high expectations at this stage. Like I said again, they keep delivering before we can actually say what we want so that's just great. >> You mentioned that you're early in your DevOps journey inside the company. Any other color you want to share about, just kind of organizationally what's changing in your business? You know, there's so many new things coming on. You know, you've watched Kubernete's a year ago, you're getting into logging, so the roles and responsibilities that your team members have, and keeping up with all of these various technologies, how's that impacting the work force and the jobs that they do? >> Yeah that's great. So again on our services that we've got we've got a lot of new teams as well, and we've been in a kind of a hyper growth stage, and we're building a lot of micro servers and stuff. We struggle to know whether the performance of that micro service is good enough or not. So that's one thing that our developers struggle with and that's something that New Relics has helped us with. Every single service that we've built, we put it on New Relic, and we've got a, like, you can see three days ago what has been average performance of this API. And that helps us also to type back to (murmurs). So we've got this arranged with each of our services, for our API inpoints , and this gives us a easy way to see whether we're on track or not, and it then translates back to the developer on whether they need to do something to increase that. Another great thing that we've been doing with New Relic with the VP of engineering is they've been helping us a lot in setting up our sites reliability teams. So we've had a couple of discussions with them these last couple of weeks and they've helped us a lot in just identifying what's the different teams that we need to bring to our organization to keep operating in this way and the growth that we are. Also something that's great that we've been looking at, and New Relic has also helped us a lot there, we had a lot of monitoring, we're monitoring everything, but the data doesn't, we don't make a lot of use with the data. So what we've started doing now is to say, "Okay, what's the most (murmurs) path on our application?" "What is it the customer needs to do?" "What's the journey he needs to go to get his (murmurs)" And that's our most critical. So then we went and we worked with New Relic to say that, "Okay guys." "so help us map this to what's the infrastructure." "What's the application that needs to be up to support this journey?" and we created thresholds on that, and alerting. We're almost at a place now where we've got all the stuff mapped and alerted, and proper actions on that, which is also great. It's helping us to be more pro-active and we rely less and less on our customers to tell us, "Hey, there's a problem on the application." >> Stu: Alright. Lou was talking about all the applications that can be built on top of this platform. I saw the network flows, do we think we're going to see the beer flows by the time we come back a year from now? >> The network flows is great. So I need to do a little bit more deep dive onto the application build, but I can start thinking of a couple of examples where we can really use that to deep a little bit deeper into what the data that we've got day to day. So yeah, that's also exciting in the future. >> Well Dirkie Gertenbach, thank you so much for sharing what your groups going through at InBev. Thanks so much for joining us. >> Great. Thank you Stu. >> Alright, and lot's more coverage here at New Relic, Futurestack, in New York city. I'm Stu Miniman and thanks for watching theCUBE.
SUMMARY :
Brought to you by New Relic. and the theCUBE's exclusive coverage I think most people understand AB InBev you know, and we look specifically at the e-commerce side of it. goes from a couple of the largest known brands, and we've been implementing it in other countries and then, you know, what tool sets One of the other things that we are excited about So first of all, you know, are you using New Relic One and what you think of the vision of, as Lou said, and the visibility that we can give to our stakeholders. I was wondering if you could bring us inside and just the visibility that New Relic gives us things announced that had you excited, and the partnership that New Relic is staring with SAP now, that you haven't seen yet? that before we can even think about it. What are you hoping to get our of the day? before we can actually say what we want and the jobs that they do? "What's the application that needs to be up by the time we come back a year from now? So I need to do a little bit more deep dive thank you so much for sharing Thank you Stu. Alright, and lot's more coverage here
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Lew Cirne, New Relic | AWS re:Invent 2018
Oh from Las Vegas it's the cube covering AWS reinvents 2018 brought to you by Amazon Web Services Intel and their ecosystem partners well good morning welcome back to AWS reinvent this is day three of our coverage here on the cube we made it we have survived the show here that been a great show and still a lot of energy out here on the show floor Justin Morin John wall's we're with loose Ernie who is the CEO and founder of New Relic and and Luffy look just over your left shoulder there's that really impressive New Relic Pavillion you've got there we've been admiring it all week so that's a great show for us and you know our our theme this yours is billed fast and break nothing because that's really the objective of moving to the cloud is building software that customers value as rapidly as possible when you're building stuff fast there's risk and so how do you build fast with breaking nothing it's measuring everything in real time everything in that environment seeing exactly what's going on so you can make sure the stuff you're building works for your customers and that's what we do for so many people were adopting the Amazon Cloud kind of reminds me of John Wooden yield UCLA basketball coach had said be quick but don't hurry that's all right so that's right so it was all about pace and I understand putting that culture in the team so how do you put that culture and into with your well I you know it's it's one of the great truths how can you manage what you can't measure so we're a company that makes it trivially easy to measure software infrastructure digital customer experience our customers come to us every day and say what I love about New Relic is within seconds of setting up my account and and deploying the agent all of a sudden production is lit up I can see what's going on that measurement helps our customers have more confidence moving to the cloud faster deploying more frequently delivering customer value more rapidly now one of the themes that we've had over the last couple of days and John and I were talking just before we came on this morning that complexity yeah we've been hearing that time and time the amount of change it's happening so quickly and we've got all of these different systems we got micro services we've got containers we've got serverless it's a really complicated environment yeah how do you help the humans understand how how do you get them to understand what's going on in this really complex environment that's moving so fast you're you're absolutely hitting on the key challenge and what we're great at what our customers tell us they love about us is we simplify that complexity and and there's how do we simplify it well we have a deep understanding of how these systems work and we've fought very hard about how do you surface the interesting information that's most relevant to understanding the health and application and really in that moment when there's a problem how do you make it as easy as possible to understand the cause that problem as rapidly as possible this is like our customers they're right in the you know right in the pit of the most high pressure situations when there's a production issue every second counts every second counts you got to find that issue as rapidly as possible and what our customers tell us is they're sick of having to juggle around between three four five many of our customers have dozens of tools that are intended to watch production they turned a new rally platform cause it's all in one platform and when seconds matter you don't want to be switching between tools and context to understand what the nature the problem is and that's that's super important it's kind of like we all become pack rats in a way right yeah we save things we just keep putting them in this room and this room in this room and it comes time to kind of clean up or yeah get our act together and that's what you're doing for people is helping them get their act together absolutely and once you've got an understanding of how the system provides you go from overly cautious and timid to confident and with that confidence you can start playing offense with software we talk about all the time 15 20 years ago IT leaders thought of software as a defensive mechanism when I say defense I mean it's a way to reduce costs how do I reduce the cost of billing how do I reduce the cost of handling a support call now it's offense it's the growth engine for these companies right the digital customer experience is driving top-line growth and so when you're confident your ability to move fast with your software you're actually participating to growth your company that's why it's so strategic that's why the cloud is growing so rapidly so if you've got a customer who's not with you really clearly you want them to they should be going with you what if what does it feel like to go from not having New Relic in there and dealing with this complexity and having those struggles and then as you've put in New Relic for the first time what's what's that onboarding experience feel like I once was blind and now I see John Newton America it's truly that our customers tell us that before I discovered new relic I had no idea was going on production and it was opinions that we're telling us what was going on and when you've got a bunch of teams working on a complex system and there's a problem and it's like the loudest opinions gonna determine how you go forward that results in chaos and it results in organizational misalignment and with data all of a sudden people are lying on how you move forward yeah so with all that data that's there I mean that that can actually be complex itself if I'm trying to see everything all at once that that can be overwhelming so how do you help customers dial in on what's actually important within this this sea of information that they can now now look at well you know we have a variety of ways in which we approach that problem um the first is an opinionated user interface okay we have more experience in the realm you know my first company I founded in 1998 created the category of application performance management and so I've been thinking about this problem might ease the think about this problem for a long time we come to our customers with an opinion on what matters in the application environment but even then beyond that we're layering on well AI but we call it applied intelligence because artificial intelligence people overuse the term and honestly our customers don't care whether we're using a collaborative filter or good old-fashioned algorithms but they want to split more smarts in our platform to tell them what's anomalous tell them what's abnormal tell them what to pay attention to in this sea of data you really collects about 15 million data points every second off of our customers applications and infrastructure and digital customer experiences 15 million data points every second coming to the New Relic Cloud and we analyze all of it in real time to service to our customers what's important what's anomalous and what's interesting yeah so let's get into that let's go about what's anomalous and what's interesting yeah how do you differentiate that because as you said out of 15 million data points every second yeah I mean you're gonna develop trends but but it's by the time you evaluate it seems like one set of data you're off to a completely different set of data and you're right this is a very dynamic environment well the combination of an understanding of how applications work in general but then the flexibility to recognize you know how an e-commerce application might be very different from a Content application like USA Today networks is a big New Relic customer and so we need to provide enough of a platform that our customers can give New Relic some guidance on the nature of their application and and and we can discover its architecture and we can discover things about it but we we really can't discover its business purpose and so there's a combination of what we do out of the box with the customizability that that get our customers the point where the software's doing the work for them you're on so having been in the show now for three four days what have you seen around here what a customer's looking at that they're gonna bring it bring it on to their environment next what are some of the things I think you know lambda is coming mainstream right right and so when we think about where where the world is going you know micro services are going to be here for a while just like all the other technologies you said like the packrat analogy is true but future in the future when someone starts a brand new project they won't even think about infrastructure they'll just think about their code and new relics philosophy on visibility is you start with the software because the software is that the whole the business logic the whole point of all this infrastructure is to run software and so our most important starting point for visibility is the software itself we just made an announcement this week about delivering the first product that automatically instrument lambda to tell you if your lambda function is misbehaving exactly how is it doing that and so as the world continually moves from the old IT used to obsess on infrastructure and and and and new ideas is obsesses on how do we deliver more software faster and that that aligns very well with what we're great what our philosophy is on delivering his ability it starts and ends with the software and it feels like people are going into lambda really quite quickly because absolutely moving with some meetings this morning that they were saying that there's enterprises in particular may not have actually jumped onto the container bandwagon yet but they've looking at laminate is going you know what we're just gonna skip leapfrog to that yeah I'm seeing quite a bit of that containers still have an awful lot of value there they're wonderful lightweight ways to host what used to be on you know in a virtualized environment and get that isolation all that benefit kubernetes is also a big deal we made an acquisition of a company called coast scale that we announced last quarter that accelerates our capability to do work in kubernetes environments we're always inspired by what our customers are doing to accelerate how they build their software and that inspires us to make sure our platforms continually their tool a choice to make sure they can see the entire environment so you're getting as much for them as they're getting from you absolutely it's a great partnership we have with our customers we learn from them and then we provide them with thought leadership on how do you think about making sure you're seeing the entire environment so you can spend more time delivering great software and less time debugging it excellent well let's get back to that great booth of your awesome great for being with us we're sharing our a relic story and success on the the last day of the show all right well mate ok all right excellent right loser T joining us you from New Relic back with more here with AWS reinvent you're watching the cube from Las Vegas
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Todd Osborne, New Relic & Scott Drossos, Infiniti | AWS Public Sector Summit 2018
>> Live, from Washington, D.C., it's theCUBE, covering AWS Public Sector Summit 2018, brought to you by Amazon Web Services and it's ecosystem partners. >> Welcome back to the District, everybody. This is theCUBE, the leader in live tech coverage. My name is Dave Vellante, and I'm here with my cohost, Stu Miniman. Day two of the AWS Public Sector Summit. We saw Teresa Carlson yesterday, a lot of keynotes, we saw the CIA. Todd Osbourne is here, he's the Vice President of Alliances of New Relic, a company that's been smokin' hot, six billion dollar market cap, and really is takin' the world by storm. He's joined by Scott Drossos, who's the president of Infiniti, who is a public sector consultancy. Gentleman, welcome to theCUBE, good to see you. >> Thanks, good to be here. >> Thank you. >> So Todd, you heard me, I mean really, everybody's talkin' about New Relic, stocks been smoking, I read an article recently, "it's got to cool off, it's too hot." So why so hot, what's goin' on, why the appeal of New Relic? >> Well as our CEO Lew Cirne has been on a couple of times talking to you about, every business is becoming a software business in the public sector, which we're here representing at the Amazon public sector event. It's the same thing with agencies and all the digital experiences that are happening across all the government and whether it's education, higher ed, healthcare, any of the DOD or other agencies, there's always some sort of digital experience that folks are having with the citizens that all the agencies and organizations are tryin' to support, and New Relic's right there, right there at the forefront of every one of those digital experiences. Everyone's running software that's modern software, or shifting to that with modern software running microservices, running containers, shifting to the cloud, and anyone deploying that type of software needs to have New Relic as part of their engagement to monitor what's happening at the citizen or the customer level, what's going on in the back end, on through the infrastructure. And New Relic, whether it's a large enterprise that we're out there, like Dunkin' Donuts or Dominos, monitoring their applications and their eCommerce sites, or it's an agency in the public sector space, you got to have New Relic as part of those engagements. >> So Scott, when AWS services first came out, 2006 timeframe, we looked at it, we said okay, this is the future, but as much as it potentially simplifies lives, it brings a lot of new complexities. So you know, Stu and I used to talk about, look, the AWS is awesome, we're big fans, but the ecosystem has to grow. Consultancies have to come out of the woodworks, and help customers really, adopt. So that's really exactly what's happened. I presume that's how Infiniti got started, maybe you could tell us a little bit about the company, and what your value is. >> Sure, thanks Dave, so Infiniti is a 15 year old company. We're originally founded in public sector IT consulting, and we realized several years ago that the world was changing and that we needed to make the shift from IT consulting to cloud services. And so we dove in headfirst with AWS, and we really tried to move to the top of the curve very quickly, and so we were a little bit ahead of our market in public sector, being a public sector focused organization, but we felt it was important to get ahead of the market because now the market really is smokin' hot. But we thought it was important that if we're going to move into the cloud, we wanted to move to the top of the curve, and deal with things like DevOps, migrations, even machine learning, predictive analytics, so we kind of pride ourselves on having some of the largest public sector contracts in the US, even though we're, right now, predominantly California based, California focused. >> And what's your head count? >> We're about a hundred people. >> I mean this is the thing, we're seeing this trend toward a lot of, you know, smaller specialists, are really doing super. Why is that, or how are you able to differentiate from these big global SIs that have tens of thousands, hundreds of thousands of employees, vertical expertise, why are you guys winning? >> Well, first of all, I think we're able to be nimble and shift our focus pretty quickly to serve our market, to serve our customers, I think more successfully. But one of the thing's that's changed when the cloud arrived, is the cloud really let smaller organizations like us, act like big organizations, so we didn't need to go deploy millions of dollars of capital to go set up a massive data center, we can build an environment on the fly, as you know, in the cloud, and we can have access to world-class platform tools like New Relic, and we can help a customer, a large customer, perform just as well as if we were a large multi-billion dollar services organization. >> Todd, one of the interesting things to talk to customers about is their journey, and where are they, and the cloud migration and how do they do this, reinvent? A year ago or two I heard there were like seven or nine ARS to get there, anything from the full refactoring and building cool new stuff with server lists and things like that, to just the re-platforming. Lift and shift, is that a good thing, isn't that? Walk us through how New Relic with Infiniti, how are you involved in some of those migrations? There's no typical customer, but give us some examples. >> Yeah absolutely, so Infiniti, just like many of the integrators that we work with are all delivering services generally in a couple different areas. One is typically a cloud adoption, or cloud migration practice. So working with Amazon, how do we get more and more of customer's workloads shifted to the cloud? Usually those projects are also going on with something in the refactoring world or application space. Usually they're also developing or shifting to some sort of DevOps practice, and that's also part of our sweet spot, what's happening in the application there, whether it's on the cloud yet or not, we're going to provide that visibility to that. And then the third piece is, there's usually something else happening with that, as I was mentioning before, the customer experience or the citizen experience, so what's the browser impact, what's the user experience on that, what's the, if it's on a mobile app, what's the user experience on there? So while Infiniti's delivering all those services for the clients, New Relic's part of all those services, so our whole model that we're tryin' to do with all of our partners is embed ourselves into all of those services, such that we can help Infiniti be more successful, deliver those projects on time, and really resolve any issues that may come up during those migration issues. >> Scott, I'd love to hear especially, I know I hear DevOps talked about a lot in New Relic's customers, is it pervasive around the agencies that you work with and please do add some color there too. >> So in the public sector, it's a range of readiness, but we're seeing a real wave building, we believe. We worked with New Relic on a very large DevOps, SysOps, very complex cloud services engagement, largest higher education cloud services engagement in the US, and in that case, just like Todd was referencing, when we implemented the migration of the legacy platform to the cloud, first of all we had to do, make choices around refactory, host, rearchitect and so forth, but then when we're managing that environment, and there's millions of users hitting that environment, we need to be able to make sure that we can monitor the application to make sure the application's performing well, and if there's an issue, we want to see the line of code that's causing the problem as quickly as possible so we can keep the environment up all the time. Even though public sector may not be driven by the same financials as say, commercial, they still expect to be up all the time. They still want to take advantage of the benefits of the cloud and so New Relic allows us to do that, but then, as we're looking at the users interface with the application environment, New Relic's browser and mobile, they let us monitor how that experience is going, and we can proactively get at the performance issues there that the application may not tell us, if there's an issue there. And then, we can do things like test middleware with synthetics and make sure that the whole environment's working, and then obviously on the infrastructure side, it lets us make sure that we're optimizing the environment for our clients. One of the cool thing is, when you in the past, you'd set up an EC2 instance, you may not see that you don't need as much CPU as you're using, and so you can size that appropriately, and allow your environment to still run at a high performance, 100% up time, but give them the cost efficiencies at the same time. So we use New Relic across board to help support the entire environment. >> I wonder if we could talk about the marketplace a little bit, generally and then specifically, the public sector? So Scott, I presume you're obviously public sector focused, but are you exclusive to AWS, no, you probably do some other stuff, is that right, is that fair? >> Well we are both AWS and Azure Gold, in terms of partner, but we do more of our work in AWS for sure. >> Okay, so we'll come back to that. And New Relic, of course you're a software company, so you want everybody to love your software, so if there's a cloud that a customer wants to use, you want your software to be on that cloud, fair enough? >> Sure, and also on PRIM, I mean a lot of our... >> On PRIM too. >> A lot of our applications we monitor are still on PRIM, and there's a tremendous amount of value there regardless of... >> I would just add, Infiniti is a trusted advisor, we like to see ourselves as a trusted advisor, so we do feel like we have to be multi-cloud and have an objective perspective. >> And New Relic is presumably the same way, I mean let the customers decide, so, and it's a hybrid world, folks, despite what Amazon wants, it's a hybrid world, and they even recognize that. My question is, there's a lot of discussion in the industry about Amazon as an infrastructure service provider and their lead or relative lead on the competition. It's our sense that there's still a lead there, what's your sense? >> Well AWS is still the leading cloud services provider in the marketplace. They lead in innovation, they lead in disruption, they lead in market share, they lead in so many metrics, and because they have that lead, and that's where we started, we've benefited from that, and we've invested heavily, and in the same way, we see New Relic, when we made a choice around who we were going to pick as a platform to support our customers, we wanted something that was cloud-born, didn't come out of on-premise and get sort of bootstrapped into the cloud, and we wanted something that was a complete platform. So New Relic was really a clear choice for us. It was not a, we looked at the entire market when we made that choice. >> So the narrative in the market used to be, oh, security in the cloud, now we hear the CIA say hey, security on the worst day in Amazon's cloud is way better than I ever saw with client server. It was a pretty powerful statement, so let's assume security, people are relatively comfortable with security these days, even though I'm sure there's still some issues with regard to corporate edicts, and flexibility, and audits, let's put that aside. SLAs is another big one. People often criticize the public cloud SLAs, and cost, oh it's so expensive, I can do it cheaper on PRIM. Are those myths, are those realities, is it a it depends? What's your sense? >> I mean they're all, they're all factors that all of our customers are looking into. I would say what we're hearing a lot about right now, is how do we help provide more visibility to everything that's happening, so if you've got a developer now that has the ability to write code, put it on any cloud they want, spin up containers, spin down containers, go try out server-less base of architectures, they've got a lot of flexibility to do what they want. Government agencies, as well as customers, one of the things they're looking for is what's actually happening? Who's doing what? The governance piece is a big piece and I think New Relic plays right into that in terms of helping control all that. One of the things that we're, is one of our sweet spots, is as you move to DevOps and a truly microservices architecture, one of the whole values of that is speed, keeping up with how fast the whole market is moving, and customers and agencies, what they want out of that, is to deploy applications where they're releasing multiple times a day. You have to have visibility into everything you're doing across the stack to be successful in that, and that's really New Relic's sweet spot in terms of doing that. So providing that visibility, instrumenting the applications in the infrastructure before, and then helping provide visibility to things like governance, things that other, not necessarily our sweet spot, but other companies in the industry are doing things throughout the DevOps life cycle in the governance realm, things like that. So we're part of that ecosystem that's helping Amazon and the other cloud providers be very successful, helping customers and agencies be very successful deploying modern applications. >> It's all about that visibility. >> Scott, one of the things, when we look at any rollout of new technology or migration, once it's up and running, then what, so wondering how your firm's involved in, you know, is there re-training, is there things go on, once this is in place, now what? >> Well Infiniti, what we found in public sector is that everybody wants to take advantage of the cost efficiencies and the benefits, and most public sector isn't going to reduce cost, they're just going to want to re-use cost more wisely. So some of the confusion around cost savings is that they're getting way more for their dollar in the future state, and the choices you have to make around how fast you want to get to the cloud, and what you want to get out of the cloud when you're there, those all effect the equation in terms of what you're actually outcomes are immediately and in the long term. So we often see that in public sector, some of the legacy applications, they may not naturally or easily move all at once, and so you have to make a choice, are you going to do some refactory and architecting before you get it there, are you going to get in the cloud now, and then do it afterwards. Either way, there's benefits, but you have to make choices about what, how you want to approach it. >> Yeah, when you talk about, after I've rolled this in, I've heard from some customers, they're like, after I've gotten a cloud, I love it, but I had to dedicate an engineer for financial architecting because there's all of these things we need to do. Are we still in that state? And once again, do you help with some of the training as to, okay, or is it plugging them into the Amazon ecosystem and how do they get certified and ready to use all of this. >> So Infiniti works with clients differently, we work with some in a more episodic, lighter capacity, and we work with some in a wholistic capacity where we are that engine for them, where we provide them the complete cloud services team to do everything from migrations, architecture, DevOps, SysOps, SecOps, machine learning and all the way through. And so when we're providing those services, we're doing those kind of things, we're making sure that the next improvement is worked into the architecture. Last year, the customer I was referencing earlier, we did just under a hundred releases, so that's a hundred releases that we're using the New Relic platform and our architectural solution, our solution architects, rather, to make sure that it's faultless, that the process is efficient, it's effective, it's secure, and that we're driving efficiencies wherever possible. So it really depends on what the customer wants. If the customer wants to hone the environment, they may have to go a little slower to account for their learning, their learning curve, and we'll help them, if that's what they want, but if they want to go faster, and they want to take advantage of our expertise, we make that available, and we're happy to do that. >> We had the former CTO of the NSA on yesterday, who now works for Accenture, and we were asking about sort of, federal versus commercial, are we sort of still taking, learning lessons from commercial and bringing it to federal, or is it because federal has so much interesting technology around analytics, does it go the other way, and he said, "it's funny, when you're on the inside, you think all the innovation is goin' on outside, now that I'm on the outside I say wow, there's a lot of interesting stuff going on in federal." We heard Teresa yesterday talk about Aurora, she talked about the VM wear partnership, so things that were announced a while ago and actually being adopted in commercial coming in to federal. So how does it work? Is it more of a two-way than it used to be 20 years ago and I wonder if you could comment? >> Yeah, from Infiniti's perspective, absolutely. We work with clients to understand the problems and where they want to get to, and then we innovate with them. You're pretty dependent on the subject matter expertise of the organization. I think our customers like that, they like that they're part of the solution, but then they need the expertise that we bring to create the next generation solution. We just created something in the higher ed space called, a college called Architecture Builder, and it was after teaming with a specific college, and working in that space for a long time, but we wanted to create a way for colleges to rapidly implement a complete architecture integrated with all the different things, including New Relic, quickly and successfully, and that was done in partnership with them, so we did the work, but we couldn't have done it without them. >> Todd, New Relic obviously, you're a believer, you drink the Koolaid every day. Why New Relic relative to the competition? How do you guys differentiate? Pitch me. >> So it's really all about being successful in that modern software space, again, as I've mentioned, and so New Relic is the only SAS only platform, so we're not going to put anything on PRIM. We've got ourselves one of the biggest and best DevOps team that develops our software, we roll code everyday, and our customers get the benefit of us being a pure SAS platform. Part of that is scalability. What we can do at scale is unbelievable. There was a customer that was just talked about on the news today that I can't mention, but they just went from basically zero to $100 million on an application just in the past 90 days. It's one of our customers and we've scaled, we have no problem scaling with customers that are doing things like that, and again, the full platform value that we have now, looking at everything from the front end on the browser and mobile applications, through the application, which is core to us, it's where we provide that code-level visibility, the ability to trace across all the different microservices that are happening, connected back to that infrastructure. That full platform now provides such tremendous value up and down the stack, but not only to the technology leaders but also to those folks that are business leaders, chief marketing officers, heads of practices at the consultants we work with, all these folks are all getting value out of New Relic. >> What would that customer who should not be named say about the value contribution of New Relic to that scale? >> The value's unbelievable. That's a commercial customer, but their business is taking off like so many of our customer's businesses are at an unbelievable scale. They can't be hamstrung by having to do a server upgrade, or having to go back, working with a release of code from a couple weeks ago, they have to be as fast as possible 'cause their business is moving so fast, their agencies are moving so fast, they need a provider that's going to provide that visibility to that at the speed with which they're moving. >> Awesome so, you got one more? >> No, we've got to run. >> Yeah, we've got to go. So this is the last question, so impressions of AWS Public Sector Summit? I presume you guys, like we did, had to register yesterday. There were some logistic issues, but other than that, maybe you could give us your last word on the summit? >> Well Infiniti is very committed to public sector, so we really enjoy coming to the Public Sector Summit. It's great to connect with our partners, like New Relic and others, and it's great to see the latest innovations coming out from AWS. >> Yeah and I've been to, I don't know, 10 or so summits around the world so far this year. It is unbelievable the excitement and the amount of people that are now excited about what's happening in the clouded option world, and Amazon's piece in that, and what's happening here in D.C. this week is no exception. >> I would second that. It's been a while since I've been at summits. Stu, you go all the time, and they are just exploding and growing, and this is one of the best that's out there. So thanks guys, for comin' on theCUBE, we really appreciate it. >> Thanks very much. >> Thank you for the opportunity. >> You're welcome. Alright, keep it right there everybody, Stu and I will be back with our next guest after this short break. John Furrier's here, you're watchin' theCUBE live, from AWS Public Sector Summit. We'll be right back. (upbeat music)
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brought to you by Amazon Web Services Todd Osbourne is here, he's the Vice President of Alliances So Todd, you heard me, I mean really, everybody's talkin' or it's an agency in the public sector space, you got to have So you know, Stu and I used to talk about, look, the AWS into the cloud, we wanted to move to the top of the curve, Why is that, or how are you able to differentiate on the fly, as you know, in the cloud, and we can have Todd, one of the interesting things to talk to customers of the integrators that we work with are all delivering around the agencies that you work with and please do add One of the cool thing is, when you in the past, of partner, but we do more of our work in AWS for sure. so you want everybody to love your software, Sure, and also on PRIM, I mean A lot of our applications we monitor are still on PRIM, Infiniti is a trusted advisor, we like to see ourselves And New Relic is presumably the same way, I mean let heavily, and in the same way, we see New Relic, security in the cloud, now we hear the CIA say hey, that has the ability to write code, put it on any cloud in the future state, and the choices you have to make and ready to use all of this. the complete cloud services team to do everything now that I'm on the outside I say wow, there's a lot and then we innovate with them. Why New Relic relative to the competition? and so New Relic is the only SAS only platform, at the speed with which they're moving. I presume you guys, like we did, had to register yesterday. and others, and it's great to see the latest innovations around the world so far this year. and growing, and this is one of the best that's out there. will be back with our next guest after this short break.
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Robson Grieve, New Relic Inc. | CUBE Conversations Jan 2018
(fast-paced instrumental music) >> Hello everyone, welcome to the special CUBE conversation, here at theCUBE Studio in Palo Alto. I'm John Furrier, Co-founder of SiliconANGLE Media and host of theCUBE for our special CMO signal series we're launching. Really talkin' to the top thought leaders in marketing, in the industry, really pushing the envelope on a lot of experimentation. And Robson Grieve, Chief Marketing Officer of New Relic, is here. Welcome to this CUBE conversation. >> Thank you, excited to be with you. >> So, New Relic is a very progressive company. You have a founder who's very dynamic, writes code, takes sabbaticals, creates product, he's a musician, is prolific. That kind of sets the tone for your company, and you guys are also state of the art DevOps company. >> Robson: Yes. >> So, pressure's on to be a progressive marketer, you guys are doing that. >> Yeah, I think some of the great things about that DevOps culture are process wise it allows us to experiment with different ways of working. And we've obviously talked a little bit about Agile and the way a different way of thinking about how you actually do the work can change the way you output the kind of things you're willing to make, the way the teams work together. And the degree to which you can integrate marketing and sales, really, around shorter time frames, faster cycle times. And so, we have a great culture around that. We also have a really great culture around experimentation. I think that's one of the biggest things that Lou talks a lot about is, let's try things, let's look for experiments, let's see where we can find something unexpected that could be a big success, and let's not be afraid for something to go wrong. If you can do that, then you have way higher odds of finding the Geo TenX. >> And you guys are also in the analytics, you also look at the signal, so you're very data driven, and I'll give you a prop for that, give you a plug. (Robson laughing) New Relic, a very data driven company. But today we're seeing a Seed Changer, a revolution in the tech industry. Seeing signals like cryptocurrency, blockchain, everyone's goin' crazy for this. They see disruption in that. You've got AI and a bunch of other things, so, and you got the Cloud computing revolution, so all of this is causing a lot of horizontally, scalable change, which is breaking down the silos of existing systems. >> Yeah. >> But, you can't just throw systems away. You have systems in marketing. So, how are you dealing with that dynamic, because we're seeing people going, hey, I just can't throw away my systems, but I got to really be innovative and agile to the real-time nature of the internet now, while having all those analytics available. >> Yeah. >> How do you tackle that, that issue? >> Yeah, there's a couple ways to think about analytics. Number one is, what do you need to know in real-time to make sure things are working and that your systems are up and running and operating effectively? And that runs through everything from upfront in web experiences and trial experiences, that kind of thing. Through to how our leads and customers progressing through a funnel, as they get passed around the various parts of a company. But then the second approach we take to data is, after all that's happened, how can we look backwards on it and what patterns emerge when you look at it over the scale of longer period of time. And so, that's the approach today. You're right, you can't just everything and throw it out and start over again, 'cause some startups stop by with a really cool idea. But, you have to be aggressive about experimentation. I think that's the, back to that big idea that we talked about experimentation. We are trying out a lot of different things all the time. Looking for things that could be really successful. Of course, Intercom is one that we started to experiment with a little bit for in product communications and we've expanded over time as we found it more and more useful. And, so that's not, we haven't taken and just ripped something else out of it, made some giant bet on something brand new. We've tried it, we've gotten to know it, and then we found ways to apply that. We're doing that with a number of different technologies right now. >> Yeah, you're in a very powerful position, you're Chief Marketing Officer, which has to look over a lot of things now, and certainly with IT and Cloud. You're essentially in the middle of the fabric of the organization. Plus, people are knockin' on your door to sell you stuff. >> Yeah. (laughing) >> So, what is-- >> That's happened. (laughing) >> It happens all the time, he's got the big budget. >> What are they saying to you? Who's knockin' on your door, right now? Who's peppering you. Who's tryin' to get on your calendar? Who's bombarding you? Where are you saying, Hey, I'm done with that, or Hey, I'm lookin' for more of that. How do you deal with that tension, 'cause I'm sure it must be heavy. >> Yeah, I think there is definitely a lot of optionality in the market, for sure. I think there's a new wave of martech vendors. Many of whom are sitting right in between sales ops and marketing ops. That's a layer we're really interested in. Systems that can help us better understand the behavior of sale's reps, and how they're using things that we're making, and then systems that you can better understand, indications of prospect intent. >> So, funnel and pipeline, or those kinds of things? >> Yeah, we think about it more from the context of authentic engagement. And so, we don't want to apply too much of a-- >> Structure to it. >> Structure, a sales structure to it. We want to try to follow the customer's intent through the process, 'cause the best prospect is someone who is authentically engaged in trying to find a solution to their problem. And so, if we can avail ourselves to people in a thoughtful, and creative, and authentic way, when they need us, when they're trying to solve that problem, then I think that they can become much more successful prospects. >> I love your angle on agile marketing. I think that's table steaks, not that you got to behave that way, and I'd love to get your thoughts, I'll get your thoughts later on the management style and how you make that happen. But, you mentioned engagement, this is now the new Holy Grail. There's a lot of data behind it, and it could be hidden data, it could be data decentralized all over the place. This is the hottest topic. How do you view engagement as a CMO, and the impact to the organization? What are you lookin' for, what's the key premise for your thesis of getting engagement? >> It's really the number one, two, and three topic we're talking about right now, and we think about it on the content side. How do we get ourselves really producing a constant stream of content that has value to people? That either helps them solve a problem right now, or helps them think about an architectural issue in a different way. We're trying to invest more and more technical resources in people who can produce things that are relevant to all the different kinds of users that we have. DevOps people, SREs, our traditional developer customers. We want to go deep and be super relevant at a content level for them. But then once they start to spend time with us, we want to then have a progressive way to pull them deeper and deeper into our community. And so, the things that we can do, something's in digital for that, but then often there's a pop off line, and we do a lot of workshops, a lot of education. >> Face-to-face? >> Face-to-face, where we're in communities, we look at a map at the start of the year and say, where do we have big user communities, and then we drop events into those places where we take our educators and our product experts and get customers to share with each other. And that becomes a really great platform to put them together and have them help each other, as well as learn more about what our product does. >> So, it sounds like you're blending digital with face-to-face? >> Robson: Yeah, absolutely. >> That's a key part of your strategy? >> Key part is to make sure that we're getting time and attention from the people who are making decisions, and what technologies they're going to buy, but also that we're really investing time in the people who are using it in their everyday lives to do their job better. That's a really-- >> Give some examples of outcomes that you've seen successful from that force. That's a really unique, well unique is pretty obvious if you think about it, but some people think digital is the Holy Grail, let's go digital, let's lower cost. But, face-to-face can be expensive, but you're blending it. What's the formula and what are some of the successes that you've seen as a result. >> Yeah, we tend to try to create events that are good for a very specific audience. So, if you think about a targeting formula that you would use in digital that will make digital really efficient, that same idea works really well for an event. So, if you got a user community that's really good at doing one thing with your product and you feel like if they knew a few more things that they could get better. Then we help them really advance to the next level, and so we run certification programs, where we'll pull together a group of confident users and help them get to the next level. And things like that allow us to make a really targeted event that allows us to reach out to a group and move them to a higher level of competency. To have competency focus is a big deal. Can we help you get better at your job? But then communities, is the other big one. Can we help you connect with people who are doing the same things? Solving the same kinds of problems and are interested in the same topics as you are. >> It sounds like the discovery path of the user, the journey, your potential. >> Yeah, it's important to us for sure. >> And content sounds like it's important too. >> It helps with your engagement. How you dealing with the content? Is that all on your properties? How about off property measurement? How do you get engagement for off property? >> Yeah, we're experimenting a lot in that area, of off property. I think we've had tons of success inside our own website and our blogs, and those kinds of-- >> You guys do pop out a lot of content, so it's content rich. >> Yes, we definitely have a lot, we hopefully, our attitude is, we want to turn our company inside out, so we want to take all of our experts-- >> Explain that, that's important topic, so, you guys are opening up what? >> We have got customer support people, we have technical sales, and technical support engineers, we've got marketing people who are thought leaders in Cloud and other architecture topics. We really want to take all the expertise that they've got and we want to share it with our community. >> John: How do you do that, through forums, through their Twitter handles? >> Through all of the above, really. Through their Twitter handles, through content that they write and produce through videos, through a podcast series that we run. We're really trying to expand as much as possible, but then inside our user help community, anytime somebody solves a problem for one customer, we want to add it to that-- >> Sounds like open-source, software. (laughing) >> From a knowledge perspective, that's really an important idea for us. >> Yeah, that's awesome. You worry about the risk. I like the idea of just opening it up. You're creating building blocks of knowledge, like code. It's almost like an open-source software, but no, it's open knowledge. >> We think if we can help people get really successful at the work they're trying to do, that it's going to do great things for us as a brand. >> What's the rules of the road, because obviously you might have some hay makers out there. Some employee goes rogue, or you guys just trusting everyone, just go out and just do it. >> Well, it's constant effort to distribute publishing rights and allow people to take more and more ownership of it, and to maintain some editorial controls, because I think quality is a big thing. It's probably a bigger concern for us then somebody going rogue. At some level, if that happens to you, you can't stop it. >> So, is this a new initiative or is it progression? >> It's been ongoing for awhile. It's progression of an effort we started probably 18 months ago, and it's a wonderful way for an engineering team, and a product management team, and a marketing team to get together around a really unified mission as well. So our content project is just one of those things that I think really pulls us together inside the company in a really fun way as well. >> It's interesting, you seeing more and more what social peers want to talk to each other and not the marketing guy, and say, Hey, get the Kool-Aid, I like the product, I want to talk to someone to solve my problem. >> Want to have a real conversation about it, and I think that's our job, is to not think of it as marketing, but to think of it as just facilitating a real conversation about how our product works for somebody. >> I'd love to talk about leadership as the Chief Marketer for New Relic in the culture that you're in, which is very cool to be in on the front-end, in the front lines doing cool things. What do you do? How do you manage yourself, how do you manage your time? What do you do, how do you organize the troops, how do you motivate them? What's your management style for this marketing in the modern era? >> I think, number one, we're trying to create an organization that is full of opportunities for people, so it's something that we've done. I've been there for about two and a half years, and we've really looked hard for people who have tons of potential and finding great things to work on. On new projects, and then let them try out ideas that they've got. So, if they can own an idea, give it a shot, and even if it doesn't work, they'll learn a bunch from the process of trying. >> What are the craziest ideas you've heard from some of your staff? (laughing) >> Oh boy, you know a lot of them involve video. There's always a great idea for a video that's risky. And we've made-- >> So the Burger King one with Net Neutrality going around the web is the funniest video I've seen all week. >> Robson: Yeah, yeah. >> Could be risky, could be also a double-edged sword, right? >> Yeah, video is one of those places where you have to check yourself a little bit, 'cause it could be a great idea, and so sometimes you have to actually make it and look at it, and say, would we publish this or not? And, yeah, so that's definitely the place to be. >> So common sense is kind of like your. >> Yeah, you start with common sense, for sure. And, I think we want to be a part of it being culturally responsible in Silicon Valley right now, is really making sure that we're attentive to making sure that we're putting in the right kind of workplace environment for people. And so, our content and the way we go to market has to reflect that as well, so there's a bunch of filters that you put on it, but you have to take risks and try to make things, and if they work great, and if they don't then the cost of that is less than. The cost of failure is so low in some of these things, so you just have to try. >> Well, you know, we're into video here at theCUBE. I have to ask you, do you see video more and more in the marketing mix and if so, how does that compare to old methods? We've seen the media business change and journalism, certainly on the analyst community. Who reads white papers? Maybe the do, maybe they don't. Or, how do they engage? What content formally do you see as state of the art engagement? Is is video, is it a mix, how do you view that? >> It's a mix, really. I think video's really powerful. And it can be great to tree topics and short form in a really powerful way. I think we can stretch it out a little bit in terms of how to and teaching and education also. But, there are times when other things like a white paper are still relevant. >> Yeah, they got to do their homework and get ready for the big test. >> Yes. >> How to install. (laughing) >> Exactly, yeah. >> Okay, big surprises for you in the industry, if you could look back and talk to yourself a few years ago and say, Wow, I didn't know that was going to happen, or I kind of knew this was going to be a trend we would be on. Where is the tailwinds, where's the headwinds in the industry as a marketer to be innovated, to be on the cutting edge, to deliver the value you need to do for your customers and for the company? >> Yeah, I think there's a bunch of great tailwinds organizationally and in the approach to work. And you talked about Agile. I think it's been a great thing to see people jump in and try to work in a different way. That's created tons of scale for a department like ours, where we're tryin' to go to more countries, and more places constantly. Having a better way to work, where we waste less effort, where we find problems and fix things way faster, has given us the chance to build leverage. And I think that's just that integration of engineering, attitudes, with marketing processes has been a, is an awesome thing. Everybody in our marketing department, or at least a lot of people have read the DevOps handbook, and we've got a lot of readers, so the devotes of that thought process that don't suit an engineering jobs. >> DevOps, Ethos, I think is going to be looked at as one of those things, that's a moment in history that has changed so much. I was just at Sundance Film Festival, and DevOps, Ethos is going to filmmaking. >> Robson: Yeah. >> And artistry with a craft and how that waterfall for the Elite Studios is opening up an amateur market in the Indy, so their Agile filmmakers and artists now doing cool stuff. So, it's going to happen. And of course, we love the infrastructures code. We'll talk about that all day long We love DevOps. (Robson laughing) So I got to ask you the marketing question. It will be a theme of my program of the CMO is, if I say marketing is code, infrastructure is code, enabled a lot of automation, some abstracted a way horizontally scaled, and new opportunities, created a lot of leverage, a lot of value, infrastructures code, created the Cloud. Is there a marketing as code Ethos, and what would that look like? If I would say, apply DevOps to marketing. If you could look at that, and you could say, magic wand. Give me some DevOps marketing, marketing as code. What would you have automated in a way that would be available to you? What would the APIs look like? What's your vision for that? >> What about the APIs, that's a good question. >> John: I don't think they exist yet, but we're fantasizing about it. (laughing) >> Yeah, I think the things that tend to slow marketing departments down really are old school, things like approvals. And how hard it is to get humans to agree on things that should be really easy. So, if the first thing you-- >> Provisioning an order. (laughing) >> The first thing you could do is just automate that system of agreeing that something's ready to go and send it out that I think you'd create so much efficiency in side marketing departments all over the world. Now that involves having a really great, and API's a great thought in that, because the expectations have to get matched up of what's being communicated on both sides, so we can have a channel on which to agree on something. That to me is-- >> Analytics are probably huge too. You want to have instant analytics. I don't care which database it came from. >> Yes, exactly. And that's the sense of DevOps and can use. But then you got some feedback on, did it work, was it the right thing to do, should we do more of it, should we fix it in some specific way? Yeah, I think that's-- >> I think that's an interesting angle, and the face-to-face thing that I find really interesting, because what you're doing is creating that face-to-face resource, that value is so intimate, and it's the best engagement data you can get is face-to-face. >> Yeah, I think it also allows us to build relationships to the point where we are getting invited into slack channels to help companies in real-time sometimes. I think there's a real-- >> So humanizing the company and the employees is critical. >> Yeah. >> You can't just be digital. >> Yes, it's a big deal. >> Awesome. Robson, thank so much for coming on theCUBE. The special CMO series. Is there a DevOps, can we automate away, what's going to automate, where's the value going to be in marketing? Super exciting, again, martech. Some are sayin' it's changing rapidly with the Cloud, AI, and all these awesome new technologies. What's going to change, that's what we're going to be exploring here on the CMO CUBE conversation. I'm John Furrier, thanks for watching. (upbeat instrumental music)
SUMMARY :
and host of theCUBE for our special CMO signal series and you guys are also state of the art DevOps company. So, pressure's on to be a progressive marketer, And the degree to which you can integrate marketing and you got the Cloud computing revolution, and agile to the real-time nature of the internet now, and what patterns emerge when you look of the organization. (laughing) How do you deal with that tension, that you can better understand, And so, we don't want to apply too much of a-- And so, if we can avail ourselves to people in a thoughtful, and the impact to the organization? And so, the things that we can do, and get customers to share with each other. Key part is to make sure that we're getting What's the formula and what are some of the successes and are interested in the same topics as you are. the journey, your potential. How do you get engagement for off property? and our blogs, and those kinds of-- so it's content rich. and we want to share it with our community. Through all of the above, really. (laughing) From a knowledge perspective, I like the idea of just opening it up. that it's going to do great things for us as a brand. or you guys just trusting everyone, and to maintain some editorial controls, and a marketing team to get together and not the marketing guy, and say, Hey, get the Kool-Aid, and I think that's our job, What do you do, how do you organize the troops, and finding great things to work on. Oh boy, you know a lot of them involve video. So the Burger King one with Net Neutrality going and so sometimes you have to actually make it And so, our content and the way we go to market and more in the marketing mix and if so, I think we can stretch it out a little bit in terms and get ready for the big test. How to install. in the industry as a marketer to be innovated, organizationally and in the approach to work. DevOps, Ethos, I think is going to be looked at as So I got to ask you the marketing question. John: I don't think they exist yet, Yeah, I think the things that tend to (laughing) because the expectations have to get matched up of I don't care which database it came from. And that's the sense of DevOps and can use. and it's the best engagement data to the point where we are getting invited into here on the CMO CUBE conversation.
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Lew Cirne, New Relic | AWS re:Invent 2017
(upbeat instrumental music) >> Narrator: Live from Las Vegas, it's the Cube. Covering AWS re:Invent 2017, presented by AWS, Intel, and our ecosystem of partners. >> Hey, welcome back everyone. This is the Cube, live here in Las Vegas for AWS re:Invent 2017. I'm John Furrier, the cohost of the cube. My cohost, Keith Townsend, here for our fifth year in a row, covering the thunderous growth of Amazon Web Services as they continue to not only nail the developers and the start ups, but continue to win the enterprise. Our next guest, Lew Cirne, who's the founder and CEO of publicly held New Relic, a very successful startup, one of the most admired places to work in the Bay area, and in tech. Lew, great to have you on the Cube, welcome. >> Hi. >> John: Hi, first time. >> I know, so great to be here. I can't believe it's the firs time. I've been such a fan for a long time. >> Now you're an alumni, the benefits. >> Here I am. >> All the benefits of being an alumni, all those season tickets to all of our games. I gotta, I want to just share something with the audience out there. You're the only public CEO that I know that's been on the Cube that writes software, has a GitHub account, and manages a publicly held company. So that's a unique thing and I want to just say it's awesome. >> It's a full plate, that's for sure, but I'm the luckiest guy in the world because I've always loved building software since my first computer I got in the Christmas of 82, what's that, 35 years ago now, and, and so, what an exciting time to be someone who's passionate about software and technology. Look what's going on in the cloud, and so I've been fortunate enough to start this company that's participating in this revolution in technology, so it's great. >> You guys are always in the cutting edge. I noticed, you guys get your hands dirty, you get in there, you're coding away, but you guys are very successful in a very important area right now, which is instrumentation of data. >> Lew: Absolutely. >> In applications, so I really want to get your, kind of your thoughts on the landscape. We were talking about on our intro analysis, that we're seeing a renaissance in software development, where with open source growing exponentially, a new software methodology's coming out, where there's just so much going on. Multiple databases within one app, IOT, so a new kind of thinking is evolving. What's your take on that? >> Well I think it's really important to understand why all of this is happening. So why are there 40,000 people here in Las Vegas for re:Invent? Why are people consuming the cloud at just a dizzying pace? It's not just for the sake of cloud computing, it's because there's this business imperative to compete on software, so if you look at where software was 15, 20 years ago, software was a tool to reduce costs and automate things in the back end. Now your software's your business. If you are a large global bank, your app has more to do with your customers' experience and satisfaction than the branch because nobody walks through a branch anymore, so now the best software developing bank is going to be the winner, so if you think about that's what's going on and that's why they're adopting new technologies to move faster, so where do we fit in? If you're going to compete on your software, and by competing you have to build the best stuff, the fastest as possible, so you have to get to market quickly, and that means you've got to change a lot. Anytime you're changing something rapidly, that introduces risk. New Relic de-risks all of that rapid movement by instrumentation, by measuring everything in the software. Those measurements help you move faster with confidence. >> And also I would say that you, not only does that create risks, but new software creates risks, so I'm doing server-less, I want to try the new service because it could A, add value, AKA Lamda or whatever, so a new, maybe time out is needed, so all kinds of new things or elements are going on inside the software stacks. >> Yes, and more complex than ever before, right, so you introduce things like Lambda server-less function computing, call it what you will, and you integrate it with, you know, microservice architecture, and so instead of one monolith, you might have hundreds, or even some of our customers have thousands of independent services, all supposed to be working in flawless concert in order to deliver a great customer experience. How on earth do you make sense of whether that's all working? Well it involves collecting an enormous amount of data about everything that's going on in real time, and then applying intelligence to that data using what we call at New Relic applied intelligence to tell our customers in real time, here's what's working well, and more importantly, here's what's going to be a problem if you don't take immediate action. And that's, you know, that's a hard problem to solve. We think we're the best at doing it. >> And that's critical too, because like you said, if it crashes, or there's some sort of breach hold that comes out there, all the stuff is at risk. >> And like, customers have just incredibly high expectations that only get higher and higher every day. Like, you know, one of our customers is Domino's and it's an amazing thing where you pre-order your pizza and you can see, second by second, how your order is doing, right? They put your pizza in the oven, then they took the pizza out of the oven, and I see that in phone, and that gives, that's that feedback that's valuable to me, right? So long as it's working, right? >> John: I'm hungry now. >> So we, we've ravished this word digital transformation all the time. >> Oh yeah, it's a little overused, but. >> It is a little overused. But melding that physical world with cold. I love it that you're a developer. First off, what's your favorite language? >> Oh geez, it really depends on the project. I'm really getting into, I love React right now on the front end. I'll still do Java when it needs some heavy lifting, Ruby for rapid prototyping. It really depends on the task at hand. >> So the value of reducing friction from a developer seeing a problem, needing to solve that problem, and getting the resources needed to solve a problem, AWS does a wonderful job of saying, you know what, developer, give me your credit card, we'll give you all the tools you need. Where is the first stumbling block because this is new capability, net new over the past few years? Where's the first set of stumbling blocks when developers reduce friction, get to that first level contact with the branch manager of the pizza store, where does it fall apart and New Relic comes in to help? >> Look, how many times have you ever had a developer or a tech or someone that works on my machine, right? >> Exactly, worked on my laptop. I don't know why it didn't deploy well in production, it worked perfectly fine on my laptop. >> I really, I started thinking about and solving this problem 20 years ago now. The notion of less instrument Java code because I was frustrated with the stuff that worked on my laptop. I couldn't understand why it didn't work when a customer used it, and everything prior to the customer using the software is nothing but sunk cost. There is no value in the software you're building until it runs in production. How well it runs in production is what determines the fate of the application. And that's where New Relic comes in, is we feel like alright, let me take you back to the ancient days of like turn of the century, 2000, nothing went to production without QA. Now nothing goes to production without instrumentation. >> Yeah, but now Agile's there, so the old days was a crab. You built a software product, but you didn't know if it was going to work until it went into production with QA. Now you're shipping stuff fast, so it's still. You've got that dev off mindset, but it's in QA. >> One of our customers, Airbnb, deploys more than a thousand times a day. And this is not a small, low load site. I mean like every deploy has to work, otherwise millions of people are impacted and it's the whole business, and it's a big business, so you're talking about a pace of innovation and change that cannot be managed with a traditional QA cycle. I've, of course testing's important, but instrumentation's more important than that. >> Lew, I want to ask you an important question because I asked Andy Jassie this last Monday when I had a one on one with him. A lot of people that are entering ecosystem for Amazon is new, that are new, or considerably, Amazon's the big, they're fearful, it's always going to be that way. He highlighted your company, New Relic, and said they're an amazing part, they do extremely well, even though they introduced Cloud Watch, which because some customers just wanted it, they have monitoring, but you guys are so much better. I said that, but if he implied it, obviously you're doing well. So the successful participation of the ecosystem is there. You can be successful in the Amazon ecosystem. >> Absolutely, it's a great partnership. >> So what's this formula for a new entry coming in or someone who's here that needs to find some white space? How do you read the tea leaves to know where not to play and where to play? >> You know, it just comes down to the fundamental good thought process you use when you're thinking about approaching your customer too. Don't think about what's in it for me, the Amazon partner. What's in it for Amazon? How do you make them more successful? And so when I imagine myself as Andy, who is like, what an incredible job he's done, but what Andy, what's top mind of Andy is how do I get more customers consuming more of Amazon faster, right? All of Amazon, all of Amazon's web services, and so we solve a problem for Andy and his team. We help our customers consume Amazon faster because we give them the confidence to consume more and move faster, and there's data to prove it. When Amazon asks their customers that aren't yet New Relic customers how much they're consuming and how fast, they get a slower rate of adoption than they do for the cohort that uses New Relic, and so it's in our mutual interest to go to market together because we help them consume more, and so I. >> John: Build a good product. >> Build a good product. >> John: Customer value. >> Think about how you help your partner be successful. Talk in that language, don't talk in language. >> Alright, so personal question. So you and I, pretend we're sitting here, having a beer, you're playing the guitar. >> A little light. >> I'm singing some tunes and Keith's our friend. He says I'm in trouble, I'm a CIO. I've got a transformation project. I don't know what to do. Which cloud do I use? How do I become data driven? Guys, help me out. Lew, what do you say? >> I say first of all, you have an instrumentation strategy. Everything, if you're a CIO in a large organization, you don't have one, two, three, or four projects. You have dozens, if not hundreds, sometimes thousands of applications and services that are all running, and you've got, I haven't met a CIO that doesn't say they've got too many monitoring tools. So you need an instrumentation strategy. Nothing should run in production without instrumentation. That's not just the service light stuff that runs on EC2, it's also every click that runs. You know, when Dunkin Donuts, which has been a longtime customer of ours, and they run in the Amazon Cloud, you know when you pre-order that doughnut, we track the tap, how long it takes from the phone all the way through the cloud services, all that's fully instrumented, so if you're a CIO, you say I can't be tactical with instrumentation. If I'm going to move fast and compete at my software, nothing should run in production without education. >> John: That's native. >> That's right. >> Foundational. >> Foundational. It's a core requirement to run in production if you're going to move at any level of speed, so establish that strategy, and then we think, we offer the best instrumentation, certainly the best value, the most ubiquitous, the easiest to use, the most comprehensive, and then we make the most sense of it, but you could pick another, you know you could pick another strategy. Some people do the heavy lifting of manually instrumenting all their code. We just don't think that's a good use of your developer time, so we automatically do that for you, but have a strategy and then execute to it. >> Awesome. Lew, congratulations on a blowout quarter. I won't even get you to comment on it, just say that you guys had a great quarter, stocks at an all time high, all because you guys are doing a great product. Congratulations and great to have you on the Cube. >> We're delighted to be here. I've honestly, I've been a longtime fan. It means a lot that you could have me on, and we really enjoy partnering with Amazon, and what a great show. >> Yeah, super successful ecosystem partner, one of the best, New Relic, based out of San Francisco, here with the founder and CEO, also musician, writes code, gets down and dirty, runs a publicly held company. He's Superman. Lew, thanks for coming on the Cube. More live data and action here on the Cube after this short break, stay with us. (upbeat instrumental music)
SUMMARY :
Narrator: Live from Las Vegas, it's the Cube. Lew, great to have you on the Cube, welcome. I know, so great to be here. that's been on the Cube that writes software, but I'm the luckiest guy in the world I noticed, you guys get your hands dirty, In applications, so I really want to get your, and by competing you have to build the best stuff, inside the software stacks. and you integrate it with, you know, because like you said, if it crashes, and it's an amazing thing where you pre-order your pizza all the time. I love it that you're a developer. Oh geez, it really depends on the project. and getting the resources needed to solve a problem, I don't know why it didn't deploy well in production, and everything prior to the customer using so the old days was a crab. and it's the whole business, and it's a big business, Lew, I want to ask you an important question and there's data to prove it. Think about how you help your partner be successful. So you and I, pretend we're sitting here, Lew, what do you say? I say first of all, you have an instrumentation strategy. the easiest to use, the most comprehensive, Congratulations and great to have you on the Cube. It means a lot that you could have me on, Lew, thanks for coming on the Cube.
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Yvonne Wassenaar, New Relic | Catalyst Conference 2016
(energetic electronic music) >> From Phoenix, Arizona, the Cube, at Catalyst Conference. Here's your host, Jeff Frick. >> Hey, welcome back everybody, Jeff Frick here, with the Cube. We are on the ground in Phoenix Arizona at the Girls In Tech Catalyst Conference. We're really excited to return to Phoenix, ironically, it was two years ago, about this same time, we went to our first Grace Hopper conference that was here in Phoenix, and I don't know what it is with Phoenix, but it seems to be a great place for women in tech conferences. So, we're back, and we wanted to come down and talk to some of the people here that are giving keynotes, presentations, give you a flavor for what's going on, so if you got an opportunity to go next year, it'll be back in the Bay Area. You certainly want to sign up for that. So we're really excited, our first guest Yvonne Wassenaar, the CIO of New Relic, welcome. >> Thank you so much, it's great to be here, I love the Cube. >> Oh, thank you very much, that's right, you were at VMworld, or VMware, I always say world not ware, for years. And we've been doing, I think, the VMworld show for something like six years, or seven years. >> Yeah, super long time, and I watch you guys at reinvents, and a lot of other places. >> Oh great, well thank you for watching. So now you're at New Relic, so for the people that aren't familiar with New Relic, why don't you give them the quick 411. >> Yeah, so New Relic is is a software analytics company, and in the simplest terms, you don't bank in your retail branch, you bank on your phone. What matters is how your software's performing. Both from an application perspective, and a business perspective. So we help you understand what's going on. We're the best, first place to look to understand your digital business. >> It's really interesting, because we've got a premise that we're, at Wikibon, that it's all about, really, your digital engagement model. And you think about banking, how many times do you go into the bank, and actually interact with a teller? It's really moved to this electronic interface, in terms of your relationship. >> Exactly, it's not how warm the coffee is, or how long the teller line is, it's how performant is your application, and do you have the right feature functionality? >> Okay, so you're here, you had a keynote earlier in the week. >> This is the third day of the conference. So first of all, give us kind of what's the vibe been here for the last three days? >> It's phenomenal, and what I love about the Girl In Tech Conference, is that it brings together women of all types. I was speaking yesterday to a student at Stanford, who's here, who has her own non-profit, who's getting her degree to go out and change the world as an enterpreneur, to very, very seasoned executives who sit on boards. And everybody's here to understand what's the change going on, and how do I drive relevancy. And it's just phenomenal. >> Excellent, so your keynote was on how to stay relevant, and how to avoid extinction. >> Yeah. >> So why don't you give us some of the, I'm sure that was a well received one. >> Yeah, well, what's interesting is, change is the new constant. And it's actually riskier to not do something, than do something, today, but what do you do? And everybody says, "Oh, go out and be bold." and being bold's great, but fundamentally, it's hard. And it's easy to say, it's hard to do in practice. And so what my talk was really on, is, how do you address the unconscious fears? How do you say "Yeah, those bad things could happen, but you know what, if nothing bad happened, here's how I could change the world." And then just go after that vision. Free yourself from those kind of unconscious constraints, and really go after it wholeheartedly. >> And so is it more of a willingness to fail? Is it more of a willingness to, you know, look silly, if you feel? I mean, what are some of these unconscious fears, that if you consciously just address them, that will help you kind of overcome them, and be more proactive in your experimentation? >> Yeah, so for me it was very personal. It was some challenges that I had in my childhood, that really made me risk-averse, in ways that I didn't understand. And it's one of the things that they say, "Hey, women should lean in more." And I actually believe the reason that women don't lean in, is that they're trying to aim for a level of perfection, and don't realize it's a numbers game. Failure is not a reflection on you personally, failure is step towards your future successes. And so really it's a mindset change. >> Right, right, and I fundamentally feel too, as we try to innovate on the Cube, and do things different, if we're not failing sometimes, we're not really pushing the envelope enough, right? Everything shouldn't be successful. It's like the old economics newsboy model, right? If you come home with no newspapers, that means you could have sold a couple more probably, so it's not about perfection, it's about trying, and not being afraid to, "Mm, that didn't work out." >> You're spot on, and I led a workshop yesterday as well, on increasing your return on investment. And I literally told the women, I said, "If you are not failing, if everybody on your team's performing perfectly, you're a failed leader. You have to stumble, it's like skiing, if you don't fall, when you're skiing, you're not pushing yourself hard enough, you're not really doing it, so you need to let your team members fall, you have to fall yourself, and that's how you you're pushing the boundaries. >> So how is the reception then, of that message that you're trying to convey? Is it "You know, I know it, I just can't do it", is it, just, "Oh, there's just so many hurdles in the way"? How do you get over the, you know, here's this unconscious thing that you need to be thinking about, okay, now it's conscious, but to actually start to change behavior? What are some of the little behavioral changes and tips and tricks you give people? Because at the end of the day, a lot of times, it's do the behavior, not think about it too much. >> Exactly, I'd say it's a couple things, first off, you need role models, that can help prove to you and your subconcious, that, "My gosh, if those five amazingly successful people did this, and they're telling me, very specifically, the failures they had, and they're still that successful, maybe they're not lying."(laughs) The other thing is, I try to give really specific tips, so one of my favorites is, I'm an ex-consultant, so two by two, what's the business impact? What's your unique value? Throw all the things you're working on in there, you should have one to two that are high impact that you're uniquely skilled to do, hit those balls out of the park. You can get 20 guys to third base, doesn't matter. You got to get one person home. >> Got to get him home, that's great. I'm just curious, because you spent a long time at Accenture, before you jumped into the tech company world, so you probably saw a lot of different companies. What's your perspective at a macro view, of how this environment has changed over the years? I mean, do you see positive change? I know we have a long way to go, but what's your perspective from some of those early Accenture days? >> You know, it's never been a more exciting time. I mean, in some regards, I wish I was that Stanford student, just starting my career, because technology is changing how we do everything, in absolutely amazing ways. But, we need to bring the right level of social consciousness to how we apply it. And we need to figure out new engagement models. And I think those engagement models actually play to the strength of a lot of women we have in the room. You have to figure out how to fuse across different industries. So, the Apple Watch, it's designer, it's technology, like how do you bring those competencies together? You get better stuff done with partners than all internally. VCs are the new R&D innovation engines, so I think the change is really exciting. But you have to be open to new operating models, and new engagement styles, to take advantage of it. >> Right, okay I want to shift gears a little bit, because our audience might not know, but you're actually a very rare breed. >> (laughs) >> You're a woman on boards, and we hear over and over, I'm teasing you, because we hear over and over, there's just not near enough representation of women on corporate boards. You're on a couple of boards. So I'd like to get your perspective on, how did you get on the boards, how do we get more women on the boards? There's always a conversation, is it a pipeline problem? Are there just not enough, are they dropping out mid-career? What are some of the things you can see from your seat on a couple of boards? >> Yeah, so I'm on three boards, I'm on the board of Harvey Mudd, I'm on the board of Idiom, which is the series B start-up, and I'm on the board of the Athena Alliance. And the Athena Alliance is actually an organization, a non-profit focused on getting more women on boards, because I fundamentally believe it is not a pipeline problem, and I say that because there's many senior executive level women like myself, who just are waiting to check off the ten things on the list they think they need to be on a board. And it's studied time and time again, women set really high bars for themselves. So I don't think enough women are putting themselves forward. and I don't think that they're known well enough. We're not unicorns, we're really not. Like there are valleys where we all congregate, (laughs) and so what we need to do, is really help the men, who I think have amazing intention, and want to have greater diversity on their boards, understand how to make the connections, and find the right women with the right profiles to round out the organizations. >> So you think it's really more of a matching issue, the desire is there, but really just making the match when the timing is right, and it's a good fit. >> Yeah, exactly. >> All right, so I'm going to shift gears on you one more time, and talk about education, and specifically Harvey Mudd, because as I'd mentioned, two years ago, we were here interviewing Maria Klawe, still one of my all-time favorite interviews. She's got such phenomenal energy, she's the President at Harvey Mudd College, who are the Athenas, I don't know if you knew the Harvey Mudd gals' teams are the Athenas, boys are the Stags, but talk about education, and what Maria has done, I mean her thing in our interview, is she wants the intro CS, to be the best class you've ever taken. >> Yeah. >> Bar none, not the best computer science class, not the best science class, the best class ever, and I can tell you, my son's at Claremont, it's a really hard class to get into. Your perspective on education, and what somebody like Maria, with her kind of energy, point of view, enthusiasm, does to expanding computer science breadth in women specifically. >> Oh, it's phenomenal, I actually had the opportunity to sit in the intro CS class. And there's a couple really key things they've done. First off, is they've expanded and energized the CS team with new amazing talent, many women, but not just women, other diversity, to just round out perspective, so keeping it fresh. The second thing they've done, is they've realized that CS theory is interesting to some, but not to all, and a lot of women tend to be more purpose driven, so they've created classes like CS biology. Same core concepts, but now solving the problems in a field where they have questions. So they learn the same thing, but in a way that's more interesting. And the final thing is, they've restructured how they run the class. So they don't say, "Hey, here's a question," everybody goes, "Oh, I'll get that!" They say, "Here's a question I want you to think about. And talk to your partner, scribble some notes, and in a minute, let's discuss what you've come up with." and that allows people of all types to be more thoughtful and to get better, well-rounded answers coming out. So they've changed it on all dimensions, and it's just, it's an amazing place to go and be, and see the energy, and really see transformation in work in our education system, because that's where it all starts. >> That's really interesting, the way you say it, to phrase the question so people are forced to think a minute, because I have two daughters, they went to all-girls middle schools, and that's one of the classic plugs for going to all-girls, because the boys, they don't wait, right? >> (laughs) "Okay if I have the right answer, I'm going to get picked! >> "Pick me, I love the teacher, pick me, pick me!" >> You picked me, I win!" >> Right, "and then I'll figure it out," versus people that want to think about it a little bit, and contemplate, and noodle, and maybe try to get the right answer before they raise their hand, so great strategy. So before we let you go, unfortunately we're out of time, how do people get involved with the Athena Foundation, what are you up to, in terms of priorities for the next six months? >> Yeah, so it's the Athenaalliance.org, we're on the web, we're just starting, DLA Piper is one of our sponsors, getting our 501c3 status, there's information there in terms of membership, who we're working to connect with. If any of you listening have board seats and you want women, come to us. If you're a qualified woman, and you're looking to get on a board, reach out, we'd love to hear you, we know you're there, and we know that men want to put you on boards, so let's make it happen. >> What a great service really, doing that matching game, because it's always about the matching game. Well, Yvonne, thanks for taking a few minutes out of your busy day, and we look forward to seeing you again sometime in the Bay Area. >> Great, thank you so much, great stuff. >> Jeff Frick here at the Girls In Tech Catalyst Conference in Phoenix Arizona, we'll be back after this short break. Thanks for watching. (energetic electronic music)
SUMMARY :
the Cube, at Catalyst Conference. and talk to some of the people here Thank you so much, it's great Oh, thank you very much, that's right, and I watch you guys Relic, so for the people and in the simplest terms, you don't bank And you think about banking, earlier in the week. day of the conference. and change the world as an enterpreneur, how to stay relevant, and So why don't you give us And it's easy to say, it's And it's one of the things that they say, that means you could have and that's how you you're So how is the reception you and your subconcious, so you probably saw a lot VCs are the new R&D innovation engines, but you're actually a very rare breed. What are some of the things you can see and find the right women really just making the match to shift gears on you not the best computer science class, and energized the CS team So before we let you go, to put you on boards, to seeing you again Jeff Frick here at the Girls
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Chris Grusz, AWS | AWS Marketplace Seller Conference 2022
>>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.
SUMMARY :
If you work with AWS and are a partner and, or sell with them, And I think it's just gonna get even better Can you share what you talked about on the keynote stage here, And so if you take a look at marketplace where And, and so to remedy that we launched private offers, you know, four years ago. And you got all kinds of like business logic, compensation, integration, 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 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 And what are you doing to make that better? And then you have a build step at the end. I'm kind of just, you know, saying no offense sake. of their high, you know, value functions, whether it's listing soy, private offers. you know, the parachute will open when they jump outta the plane. Market marketplace has become much more of an accepted way to buy, you know, And, and, you know, we think that they're only of partners and you know, the next startup could be the next Figma could be in that batch startups. have a sales force, go compete, you know, kind of hand to hand with these largest ISVs When it goes through marketplace, you know, it's gonna feed into a number of our APN programs And what's your promise to them and what you're gonna work on. And one are the concepts he points to is the concept of selection. And I want, wanna give you props too. And, you know, while we have a number of our first party services, And the buyer experience future what's those two things. And, you know, we are now selling billions of dollars to our marketplace and that's with an S so you can assume, And you know, we look at this, the experience that we I mean, oh yeah, you have infrastructure nailed down. Which, you know, when we first designed our marketplace, we weren't sure if that would ever happen. I know we went a little extra long. It's the cue here in Seattle with more coverage here at Davis marketplace sellers conference.
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Larry Lancaster & Rod Bagg, Zebrium | Zebrium Root Cause as a Service
(upbeat music) >> Full stack observability is all the rage today. As businesses lean into digital, customer experience becomes ever more important. Why? Well, it's obvious, fickle consumers can switch brands in the blink of an eye or the click of a mouse. Technology companies have sprung into action and the observability space is getting pretty crowded in an effort to simplify the process of figuring out the root cause of application performance problems without an army of PhDs and lab coats, also known as endlessly digging through logs, for example. We see decades old software companies that have traditionally done monitoring or log analytics and or application performance management stepping up their game. These established players, you know, they typically have deep feature sets and sometimes purpose-built tools that attack one particular segment of the marketplace. And now they're pivoting through M&A and some organic development trying to fill gaps in their portfolio. And then, you got all these new entrants coming to the market, claiming end to end visibility across the so-called modern cloud and now edge native stacks. Meanwhile, cloud players are gaining traction and participating through a combination of native tooling combined with strong ecosystems to address this problem. But, you know, recent survey research from ETR confirms our thesis that no one company has it all. Here's the thing. Customers just want to figure out the root cause as quickly and as efficiently as possible. It's one thing to observe the stack end to end, but the question is who is automating the observers? And that's why we're here today. Hello, my name is Dave Vellante and welcome to this special Cube presentation where we dig into root cause analysis, and specifically, how one company, Zebrium, is using unsupervised machine learning to detect anomalies and pinpoint root causes and delivering it as an automated service. And in this session, we have two deep dives. First, we're going to dig into this exciting new field of RCaaS, Root Cause As A Service with two of the founders and technical experts behind Zebrium. And then we bring in two technical experts from Cisco, an early Zebrium customer who ran a POC with Zebrium's service, automating and identifying root cause problems within four very well established and well known Cisco product lines, including WebEx Client and UCS. I was pretty amazed at the results and I think you'll be impressed as well. So thanks for being here. Let's get started. With me right now is Larry Lancaster, who's a founder and CTO of Zebrium. And he's joined by Rod Bagg, who's the founder and vice president of engineering at the company. Gents, welcome. Thanks for coming on. >> Thanks. >> Okay. >> It's good to be here. >> It's good to be here >> All right Rod, talk to me. Talk to me about software downtime, what root cause means, all the buzzwords in your domain, MTTR and SLO. What do we need to know? >> Yeah, I mean, it's like you said. I mean, it's extremely important to our customers and to most businesses out there to drive uptime and avoid as much downtime as possible. So, you know, when you think about it, all of these businesses, most companies nowadays, either their product is software and it's running, you know, running on the web and that's how you get a point click. Or the business depends on, you know, internal systems to drive their business and to run it. When that is down, that is hugely impacting to them. So if you take a look, you know, way back, you know, 20, 30 years ago, software was simple. You know, there wasn't much to it. It was pretty monolithic and maybe it took a couple of people to maintain it and keep it running. There wasn't really anything complicated about it. It was a single tenant piece of software. Today's software is so complicated, often running, you know, maybe hundreds of services to keep that or to actually implement what that software is doing. So as you point out, you know, enter the sort of observability space and the tools that are now in use to help monitor that software and make sure when something goes wrong, they know about it But there's kind of an interesting stat around the observability space. So when you look at observability in the context or through the lens of the cost of downtime, it's really interesting. So observability tools are about a $20 billion market, okay? But the cost of downtime, even with that in place, is still hundreds of billions of dollars. So you're not taking much of a bite out of what the real problem is. You have to solve root cause and get to that fast. So it's all great to know that something went wrong but you got to know why. And it's our contention here that, you know, really, when you take a look at the observability space, you have metrics, that's a great tool. I mean, there's lots of great tools out there, you know, around metrics monitoring that's going to tell you when something went wrong. It's very rarely it's going to tell you why. Similarly for tracing, it's going to point you to where the issue is. It's going to take you through that stack and probably pinpoint where you're being, you know where it's happening or where something is running slow, potentially. So that's great. But again, the root cause of why it's happening is going to be buried in log files. And I can expand on that a little bit more but you know, when you're a software developer and you're writing your software, those log files are a wealth of information. It's just a set of breadcrumbs that are littered with facts about how the software is behaving and why it's doing what it's doing, or why it went wrong. And it's that that really gets you to the root cause very fast. And that's our contention, is that these software systems are so complex nowadays and that the root cause is lying in those logs. So how do you get there fast? You know, we would contend that you better automate that or you are just doomed for failure. And that's where we come in. >> Great. >> Getting to that root cause. >> Thank you, Rod. You know, it's interesting you talk about the $20 billion market. There's an analogy with security, right? We spend 80, $100 billion a year on securing our infrastructure, and yet we lose probably closer to a trillion dollars a year in breaches. And there's a similar analogy here. 20 billion could be 5X in downtime impacts or more. Okay, let's go to Larry. Tell us a little bit more about Zebrium. I'm interested always to ask a founder why you started the company. Rod touched on that a little bit. You guys have invented this concept of RCaaS. What does it mean? What problems does it solve, and how does it solve the problem? Let's get into it. >> Yeah. Hey, thanks, Dave. So I think when you said, you know, who's automating the observer, that that's a great way to think about it because what observability really means is it's a property of a system that means you can see into it. You can observe the internal state and that makes it easier to troubleshoot, right? But the problem is if it's too complicated, you just push the bottleneck up to your eyeball. There's only so much a person can filter through manually, right? And I love the way you put that. So that's a great way to think about it is automating the observer. Now, of course, it means that, you know, you reduce your MTTR, you meet your service level objectives, all that stuff, you improve customer experience. That's all true, but it's important to step back and realize like we have cracked a real nut here. People have been trying to figure out how to automate this part of sort of the troubleshooting experience, this human part of finding the root cause indicators for a long time. And until Zebrium came along, I would argue, no one's really done it right. So, you know, I think it's also important you know, as we step back, we can probably look forward five to 10 years and say, everyone's going to look back and say how did we do all this manually? You're going to see this sort of last mile of observability and troubleshooting is going to be automated everywhere because otherwise, you know, people are just... They're not going to be able to scale their business. So, you know, I think one more thing that's important to point out is, you know, I think Zebrium, you know, it's one thing to have the technology but we've learned we need to deliver it right where people are today. You can't just expect people to dive into a new tool. So, you know, we're looking at, you know, if you look at Zebrium, you'll put us on your dashboard and we don't care what kind of a dashboard it is. It could be, you know Datadog, New Relic, Elastic, Dynatrace, Grafana AppDynamics, ScienceLogic, we don't care. You know, they're all our friends. So we're more interested in getting to that root cause than trying to fight, you know, these incumbents and all that stuff. Yep. >> Yeah. So, interesting. Again, another analogy I think about. You know, you talked about automation. If we're to look back and say this is what... We're never going to do this again, it's like provisioning loans. Nobody provisions loans anymore, it's all automated. >> Larry: (chuckling) That's right. >> So Larry, I'll stay with you, then the skeptic in me says, this sounds amazing, but if I, you know... It might be too good to be true. Tell us how it works. >> Larry: (chuckling) Yeah. So that's interesting. So Cisco came along and they were equally skeptical. So what they did was they took a couple of months and they did a very detailed study. And they got together 192 incidents across four product lines, where they knew that the root cause was in the logs. And they knew what that root cause was because they had had their best engineers, you know work on those cases and take detailed notes of the incidents that had taken place. And so they ran that data through the Zebrium software. And what they found was that in more than 95% of those incidents, Zebrium reflected the correct root cause indicators at the correct time. Like that blew us away. When we saw that kind of evidence, Dave, I have to tell you, everyone was just jumping up and down. It was like, you know, it was like the Apollo command center, you know when they finally, you know, touchdown on the moon kind of thing. So, you know, it's really an exciting point in time to be at the company, like just seeing everything finally being proven out according to this vision. I'm going to tell you one more story which is actually one of my favorites, because we got a chance to work with Seagate Lyve Cloud. So they're, you know, a hyper modern, you know, SaaS business, they're an S3 competitor. Zoom has their files stored on Lyve Cloud, you know, to let you know who they are. So essentially, what happened was they were in alpha, their early access, and they had an outage, and it was pretty bad. I mean, it went on for longer than a day, actually, before they were completely restored. And it was, you know, fortunately for them, it was early access. So no one was expecting, you know, uptime, you know, service level objectives and so on. But they were scared, because they realized, if something like this happens in production, you know, they're screwed. So what they did was they saw Zebrium. They went and did some research, they saw Zebrium. They went in a staging environment, recreated the exact (indistinct) that they had had. And what they saw was immediately, Zebrium pops up a root cause report that tells them exactly the root cause that they took over a day to find. These are the kind of stories that let us know we're onto something transformational. >> Dave: Yeah. That's great. I mean, you guys are jumping up and down, I'm sure. We're going to hear from Cisco later. I bet you, they were jumping up and down too because they didn't have to do all that heavy lifting anymore. So Rod, Larry's just sort of implying that, or actually, you guys both talked about that your tool is agnostic. So how does one actually use the service? How do I deploy it? >> Yeah. So let me step back. So when we talk about logs right? Like, you know, all these bread crumbs being in logs and everything else? So, you know, they are a great wealth of you know, information, but people hate dealing with them. I mean, they hate having to go in and figure out what log to look at. In fact, you know, we had one of our... Or we've heard from several of our customers now prior to using Zebrium, when they, you know, have some issue, and they know there's something wrong, something on their dashboard has told them that something's wrong, maybe a metric has, you know, taken a blip or something's happened that they know there's a problem. We've heard from them that it can take like a number of hours just to get to the right set of logs, like figuring out over these hundreds of services where the logs are, to get to them, maybe searching in a log manager. Just to get into the right context, even, can take hours. So, you know, that's obviously the problem we solve but, you know, we don't want them just looking at logs. I mean, you know, we don't want to put them back in the thing they don't like doing because people don't do that. They don't like doing it. So we put it up on the dashboard. So if something is going wrong with your metrics and that's the indicator, or maybe it's something with tracing that you're sort of digging through that you know something's wrong, we will be right on that same dashboard. So we're deployed as a SaaS service. You send us your logs, you click on one of our integrations and we integrate with all these tools that Larry's talked about. And when we detect anything that is a root cause report, it will show up on your dashboard in the same timeline as those blips in your metrics. So when you see something going wrong and you know there's an issue, take a look at the portion of your dashboard that is us, and we're going to tell you why. We're going to get you to the why that went wrong. No other work could be... You can, you know, also click down and click through to us so that you land up in our portal, if you want to do some more digging around, if you need to or whatever, maybe to get some context what have you, but it's fair that if you ever need to do that, the answer should be right there on your dashboard. And that that's how we expect people to use it. We don't want them digging in logs and going through things, we want it to be right in their workflow. >> Great. Thank you, Larry. So Rod, we talked about Cisco. We're going to hear more from them in a moment in Seagate. I would think this is like a perfect solution for a SaaS provider, anybody doing AI ops. Do you have some examples of those types of firms leaning into this? >> Rod: Yeah, a couple of great ones. Well, I mean, we've got many of them, but a couple that I'll touch on. We have an actual AI ops company that was looking for, you know, sort of some complimentary technology and so on. And so they decided to just put us through our paces by having one of their own SREs sign up for our service in our SaaS environment, and send the logs from their system to us, you know, and just see how we did. So it turned out we ended up talking back to this SRE like a week after he had installed the product, you know signed up and then, you know, started sending us logs. And, you know, he was hewing and hawing, saying that he was busy, like every SRE is, and that he didn't have a chance to really do much with us yet. And, you know, we were just, you know, having this conversation on the phone, and he comes to tell us that, yeah I've been busy because we had this, you know, terrible outage, like, you know, five days ago. And we said like, "Okay did you actually look on the Zebrium dashboard?" (chuckles) And he goes, "You know what? I didn't even think to do it yet. I mean, I'd just been so busy and frazzled." So we have an integration with that company, he hadn't put that integration in, so it wasn't in his dashboard yet, but it was certainly on ours. So he went there, and he looks and he looks on the day, you know, on the time range of when he had had this incident. And right at the very top of the page on our portal was that incident with that root cause. And he was flabbergasted. It literally would've saved him hours and hours and hours. They had this issue going on for over 24 hours. And we had the answer right there in five minutes, and it was crazy. And we get that kind of stories. It's just like the Seagate one. If you use us and you have a problem, we're going to detect it. And you're going to hear from Cisco how successful we are at detecting things. I mean, it'll be there when you have a problem. In SaaS companies, you know, one of our customers is Alchera. They do cost optimizations for cloud properties, you know, for AWS optimization, Google, Google cloud, and so on. But they use our software, and they have a lot of interaction, obviously with these cloud vendors and the APIs of those cloud vendors. So, you know, in order to figure out your costing at AWS, they're using all those APIs. So it turned out, you know, they had some issue where their services were breaking. And we had that root cause report right on the screen, again within five minutes, that was pointing to an API problem with Google. And they had changed one of their APIs and Alchera was not aware of it. So their stuff was breaking because of a change downstream that we had caught. And I'll just tell you one last one because it's somewhat related to one of these cloud vendors. You know, it was a big cloud vendor who had an outage a couple of months ago. And it's interesting because, you know, a lot of our customers will set up shared Slack channels with us, where we're monitoring or seeing their incidents as well as they are. So we get a little Slack representation of the incident that we detected for them or the root cause that we detected for them, and that's in a shared community channel. So we could see this happening when that AWS outage happened. We could see our customers getting impacted by that AWS outage, and the root cause of what was going on there in AWS that was impacting our customers that was showing up in our incidents. Now we didn't obviously, you know, have the very root cause of what was going on in AWS, per se but we were getting to the root cause of why our customer's applications were failing. And that was because of issues going on at AWS. >> Very interesting. I mean, I think one of your biggest challenges is going to be getting people's attention because these SREs are so busy, their hair's on fire. >> Rod: That's it. Right. (chuckling). You know, when you say, hey, (indistinct). >> I tell you, if you get their attention, they love it. I mean, this AI ops company, I didn't even tell you the punchline there, but, you know, they had this incident that occurred that we found. And quite literally, the next week, they ended up signing up as a paid customer. So... >> Dave: that's great. And Larry, to give you the last word. I mean, you know, Rod was talking about, you know, changes in APIs and you know, there's still a lot of scripts out there. You guys, if I understand it correctly, run both as a service in the cloud and you can run on-prem, which is important because there's a lot of sensitive information in logs that people are trying not to leave. >> Larry: That's right. Absolutely. >> Dave: But close it out here. >> Yeah. I mean, that's right, you can run it on-prem. Just like we run it in our cloud, you can run it in your cloud or on your own infrastructure. Now that's all true. You know, I think the one hurdle now that we have left as a company is getting the word out and getting people to believe that this is actually possible and try it for themselves. You don't believe it, do a POC, try it yourself. And you know, people have become so jaded by the lack of, you know, real, sort of, innovation in the software industry for the last 10 years that it's hard to get people to... But guys, you got to give it a shot, I'm telling you. I'm telling you right now, it works. And you'll hear more about that from one of our customers in a minute. >> All right guys, thanks so much. Great story. Really appreciate you sharing. >> Thank you. >> Yeah. Thanks Dave. Appreciate the time. >> Okay. In a moment, we're going to hear from Cisco who is the customer in this case example and a company that has... Look, they have quite an impressive suite of observability tooling, and they've done a pretty compelling proof of concept with Zebrium using real data on some Cisco products that you've heard of, like WebEx. So stay tuned and learn about how you can really take advantage of this new technology called Root Cause As A Service. You're watching theCube, the leader in enterprise and emerging tech coverage. (upbeat music)
SUMMARY :
you know, they typically All right Rod, talk to me. Or the business depends on, you know, and how does it solve the problem? And I love the way you put that. You know, you talked about automation. this sounds amazing, but if I, you know... So no one was expecting, you know, uptime, I mean, you guys are jumping up and down, We're going to get you to Do you have some examples and he looks on the day, you know, is going to be getting people's attention you say, hey, (indistinct). but, you know, they had And Larry, to give you the last word. Larry: That's right. by the lack of, you know, appreciate you sharing. you can really take advantage
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Larry Lancaster & Rod Bagg
(bright intro music) >> Full stack observability is all the rage today. As businesses lean in to digital, customer experience becomes ever more important, why? Well, it's obvious. Fickle consumers can switch brands in the blink of an eye or the click of a mouse. Technology companies have sprung into action, and the observability space is getting pretty crowded in an effort to simplify the process of figuring out the root cause of application performance problems without an army of PhDs and lab coats, also known as endlessly digging through logs, for example. We see decades-old software companies that have traditionally done monitoring or log analytics and/or application performance management stepping up their game. These established players, you know, they typically have deep feature sets and sometimes purpose built tools that attack one particular segment of the marketplace, and now, they're pivoting through M&A and some organic development trying to fill gaps in their portfolio, and then you got all these new entrants coming to the market claiming end to end visibility across the so-called modern cloud and now edge-native stacks. Meanwhile, cloud players are gaining traction and participating through a combination of native tooling combined with strong ecosystems to address this problem, but, you know, recent survey research from ETR confirms our thesis that no one company has at all. Here's the thing. Customers just want to figure out the root cause as quickly and efficiently as possible. It's one thing to observe the stack end to end, but the question is who is automating the observers? And that's why we're here today. Hello, my name is Dave Vellante, and welcome to this special "CUBE" presentation where we dig into root cause analysis and, specifically, how one company, Zebrium, is using unsupervised machine learning to detect anomalies and pinpoint root causes and delivering it as an automated service. In this session, we have two deep dives. First, we're going to dig into this exciting new field of RCA, root cause as a service, with two of the founders and technical experts behind Zebrium, and then we bring in two technical experts from Cisco, an early Zebrium customer who ran a POC with Zebrium's service, automating and identifying root cause problems within four very well established and well-known Cisco product lines including Webex client and UCS. I was pretty amazed at the results, and I think you'll be impressed as well. So thanks for being here. Let's get started with me right now is Larry Lancaster who's a founder and CTO of Zebrium, and he's joined by Rod Bagg who's a founder and Vice-President of Engineering at the company. Gents, welcome, thanks for coming on. >> Thanks. >> (indistinct). >> To be here. >> Great to be here. >> All right, Rod, talk to me. Talk to me about software downtime, what root cause means, all the buzzwords in your domain, MTTR and SLO, what do we need to know? >> Yeah, I mean, it's like you said. I mean, it's extremely important to our customers and to most businesses out there to drive up time and avoid as much downtime as possible. So, you know, when you think about it, all of these businesses, most companies nowadays, either their product is software and it's running, you know, running on the web, and that that's how you get a point click or their business depends on it and, you know, internal systems to drive their business and to run it. Now, when that is down, that is hugely impacting to them. So if you take a look, you know, way back, you know, 20, 30 years ago, software was simple. You know, there wasn't much to it. It was pretty monolithic, and maybe it took a couple of people to maintain it and keep it running. It wasn't really anything complicated about it. It was a single tenant piece of software. Today's software is so complicated, often running, you know, maybe hundreds of services to keep that or to actually implement what that software is doing. So as you point out, you know, enter the sort of observability space and the tools that are now in use to help monitor that software and make sure when something goes wrong, they know about it, but there's kind of an interesting stat around the observability space. So when you look at observability in the context or through the lens of the cost of downtime, it's really interesting. So observability tools are about a $20 billion market, okay? But the cost of downtime, even with that in place, is still hundreds of billions of dollars. So you're not taking much of a bite out of what the real problem is. You have to solve root cause and get to that fast. So it's all great to know that something went wrong, but you got to know why, and it it's our contention here that, you know, really, when you take a look at the observability space, you have metrics. That's a great tool. I mean, there's lots of great tools out there, you know, around metrics monitoring that's going to tell you when something went wrong. It's very rarely it's going to tell you why. Similarly for tracing, it's going to point you to where the issue is. It's going to take you through that stack and probably pinpoint where you're being, you know, where it's happening or where something is running slow potentially. So that's great, but again, the root cause of why it's happening is going to be buried in log files, and I can expand on that a little bit more, but, you know, when you're a software developer, and you're writing your software, those log files are a wealth of information. It's just a set of breadcrumbs that are littered with facts about how the software is behaving and why it's doing what it's doing or why it went wrong, and it's that that really gets you to the root cause very fast, and that's, our contention is that these software systems are so complex nowadays, and that the root cause is lying in those logs. So how do you get there fast? You know, we would contend that you better automate that or you're just doomed for failure, and that's where we come in. >> Great. >> Getting to that request. >> Thank you, Rod. You know, it's interesting. You talk about the $20 billion market. There's an analogy with security, right? We spend 80, $100 billion a year on securing our infrastructure, and yet we lose, probably, closer to a trillion dollars a year in breaches, and there's a similar analogy here. 20 billion could be 5x in downtime impacts or more. Okay, let's go to Larry. Tell us a little bit more about Zebrium. I'm interested always to ask a founder why you started the company. Rod touched on that a little bit. You guys have invented this concept of RCAs. What does it mean? What problems does it solve? And how does it solve the problem? Let's get into it. >> Yeah, hey, thanks, Dave. So I think when you said, you know, who's automating the observer? That's a great way to think about it because what observability really means is it's a property of a system that means you can see into it. You can observe the internal state, and that makes it easier to troubleshoot, right? But the problem is if it's too complicated, you just push the bottleneck up to your eyeball. There's only so much a person can filter through manually, right? And I love the way you put that. So that's a great way to think about it is automating the observer. Now, of course, it means that, you know, you reduce your MTTR, you meet your service level objectives, all that stuff, you improve customer experience, that's all true, but it's important to step back and realize like we have cracked a real nut here. People have been trying to figure out how to automate this part of sort of the troubleshooting experience, this human part of finding the root cause indicators for a long time, and until Zebrium came along, I would argue no one's really done it right. So, you know, I think it's also important, you know, as we step back, we can probably look forward five to 10 years and say, "Everyone's going to look back and say, 'How did we do all this manually?'" You're going to see this sort of last mile of observability and troubleshooting is going to be automated everywhere because otherwise, you know, people are just, they're not going to be able to scale their business. So, you know, I think one more thing that's important to point out is, you know, I think Zebrium, you know, it's one thing to have the technology, but we've learned we need to deliver it right where people are today. You can't just expect people to dive into a new tool. So, you know, we're looking at, you know, if you look at Zebrium, you'll put us on your dashboard, and we don't care what kind of a dashboard it is. It could be, you know, Datadog, New Relic, Elastic, Dynatrace, Grafana, AppDynamics, ScienceLogic, we don't care. You know, they're all our friends. So we're more interested in getting to that root cause than trying to fight, you know, these incumbents and all that stuff, yeah. >> Yeah, so interesting. Again, another analogy I think about, you know, you talked about automation, where to look back, and say, "This is what- We're never going to do this again." It's like provisioning LANs. Nobody provisioned LANs anymore. It's all automated. >> That's correct. >> So, Larry, stay with you. The skeptic in me says, "This sounds amazing," but if, you know, it probably too good to be true. Tell us how it works. >> Yeah, so that's interesting. So Cisco came along and they were equally skeptical. So what they did was they took a couple of months, and they did a very detailed study, and they got together 192 incidents across four product lines where they knew that the root cause was in the logs, and they knew what that root cause was because they'd had their best engineers, you know, work on those cases and take detailed notes of the incidents that had taken place, and so they ran that data through the Zebrium software, and what they found was that in more than 95% of those incidents, Zebrium reflected the correct root cause indicators at the correct time. Like that blew us away. When we saw that kind of evidence, Dave, I have to tell you, everyone was just jumping up and down. It was like, you know, it was like the Apollo Command Center, you know, when they finally, (Dave laughs) you know, touchdown on the moon kind of thing. So, you know, it's really exciting at a point in time to be at the company, like just seeing everything finally being proven out according to this vision. I'm going to tell you one more story, which is actually one of my favorites, because we got a chance to work with Seagate Lyve Cloud. So they're, you know, a hyper modern, you know, SaaS business. They're an S3 competitor. Zoom has their files stored on Lyve Cloud to give, you know, to let you know who they are. So, essentially, what happened was they were in alpha, in their early access, and they had an outage, and it was pretty bad. I mean, it went on for longer than a day, actually, before they were completely restored, and it was, you know, fortunately, for them, it was early access. So no one was expecting, you know, uptime, you know, service level objectives and so on, but they were scared because they realized if something like this happens in production, you know, they're screwed. So what they did was they saw Zebrium, they did some research, they saw Zebrium. They went in a staging environment, recreated the exact (indistinct) that they'd had, and what they saw was, immediately, Zebrium pops up a root cause report that tells them exactly the root cause that they took over a day to find. These are the kind of stories that let us know we're onto something transformational. >> Yeah, that's great. I mean, you guys are jumping up and down. I'm sure, we're going to hear from Cisco later. I bet you, they were jumping up and down, too, 'cause they didn't have to do all that heavy lifting anymore. So Rod, Larry's just sort of implying that or, actually, you guys both talked about that your tool's agnostic. So how does one actually use the service? How do I deploy it? >> Yeah, so let me step back. So when we talk about logs, right? Like, you know, all these red crumbs being in logs and everything else. So, you know, they are a great wealth of, you know, information, but people hate dealing with them. I mean, they hate having to go in and figure out what log to look at. In fact, you know, we had one of our, or we've heard from several of our customers now prior to using Zebrium, but when they're, you know, have some issue, and they know there's something wrong, something on their dashboard has told them that something's wrong, maybe a metrics is, you know, taken a blip or something's happened that they know there's a problem, we've heard from them that it can take like a number of hours just to get to the right set of logs, like figuring out over these hundreds of services where the logs are to get to them, maybe searching in a log manager, just to get into the right context even can take hours. So, you know, that's obviously the problem we solve, but, you know, we don't want them just looking at logs. I mean, you know, we don't want to put 'em back in the thing they don't like doing 'cause people don't do what they don't like doing. So we put it up on the dashboard. So if something is going wrong with your metrics, and that's the indicator or maybe it's something with tracing that you're sort of digging through now that you know something's wrong, we will be right on that same dashboard. So we're deployed as a SaaS service. You send us your logs. You click on one of our integrations, and we integrate with all these tools that Larry's talked about, and when we detect anything that is a root cause report, it will show up on your dashboard in the same timeline as those blips in your metrics. So when you see something going wrong, and you know there's an issue, take a look at the portion of your dashboard that is us, and we're going to tell you why. We're going to get you to the why that went wrong. Not no other work could be- You can, you know, also click down and click through to us so that you land up in our portal if you want to do some more digging around if you need to or whatever, maybe to get some context, what have you, but it's fair that you ever need to do that. The answer should be right there on your dashboard, and that's how we expect people to use it. We don't want them digging in logs and going through things. We want it to be right in their workflow. >> Great, thank you, Larry. So Rod, we talked about Cisco. We're going to hear more from them in a moment and Seagate. I would think this is like a perfect solution for a SaaS provider, anybody doing AIOps, do you have some examples of those types of firms leaning into this? >> Yeah, a couple of great, well, I mean, we got many of them, but couple that I'll touch on. We have an actual AIOps company that was looking for, you know, sort of some complimentary technology and so on, and so they decided to just put us through our paces by having one of their own SREs sign up for our service in our SaaS environment and send the logs from their system to us, you know, and just see how we did. So it turned out we ended up talking back to this SRE like a week after he had installed the product, you know, signed up, and then, you know, started sending us logs, and, you know, he was hemming and hawing saying that he was busy like, you know, like every SRE is, and that he didn't have a chance to really do much with us yet, and, you know, we just, you know, having this conversation on the phone, and he comes to tell us that, "Yeah, I've been busy because we had this, you know, terrible outage like, you know, five days ago," and we said like, "Okay, did you actually look on the Zebrium dashboard?" (laughs) And he goes, "You know what? I didn't even think to do it yet. I mean, I'd just been so busy and frazzled." So we have an integration with that company. He hadn't put that integration in so it wasn't in his dashboard yet, but it was certainly on ours. So he went there and he looks on the day like, you know, on the time range of when he had this incident, and right at the very top of the page on our portal was the incident with the root cause, and he was flabbergasted. It literally would've saved him hours and hours and hours. They had this issue going on for over 24 hours, and we had the answer right there in five minutes, and it was crazy, and we get that kind of story. It's just like the Seagate one. If you use us and you have a problem, we're going to detect it, and you're going to hear from Cisco how successful we are at detecting things. I mean, it'll be there when you have a problem. In SaaS companies, you know, one of our customers is Archera. They do cost optimizations for cloud properties, you know, for AWS optimization, Google cloud, and so on, but they use our software, and they have a lot of interaction, obviously, with these cloud vendors and the APIs of those cloud vendors. So, you know, in order to figure out you're costing at AWS, they're using all those APIs. So it turned out, you know, they had some issue where their services were breaking and we had that root cause report right on the screen, again, within five minutes that was pointing to an API problem with Google, and they had changed one of their APIs, and Archera was not aware of it. So their stuff was breaking because of a change downstream that we had caught, and I'll just tell you one last one because it's somewhat related to one of these cloud vendors of, you know, big cloud vendor who had an outage couple of months ago, and it's interesting because, you know, lot of our customers will set up shared Slack channels with us where we're monitoring or seeing their incidents as well as they are. So we get a little Slack representation of the incident that we detected for them or the root cause that we've detected for them, and that's in a shared community channel. So we could see this happening when that AWS outage happened. We could see our customers getting impacted by that AWS outage and the root cause of what was going on there in AWS that was impacting our customers, that was showing up in our incidents. Now, we didn't obviously, you know, have the very root cause of what was going on in AWS per se, but we were getting to the root cause of why our customer's applications were failing, and that was because of issues going on at AWS. >> Very interesting. I mean, I think one of your biggest challenge is going to be getting people's attention because these SREs is so busy, their hair's on fire. (all laughs) You know, he's like, "Hey, chap, I'm going to show you, look at this." >> I tell you. You get their attention, they love it. I mean, this AIOps company, I didn't even tell you the punchline there, but, you know, they had this incident that occurred that we found and, quite literally, the next week, they ended up signing up as a paid customer, so. >> That's great, and Larry, give you the last word. I mean, you know, Rod was talking about, you know, changes in APIs, and, you know, there's still a lot of scripts out there. You guys, if I understand it correctly, run both as a service in the cloud and you can run on-prem, which is important because there's a lot of sensitive information in logs and people don't want to leave. >> That's right, absolutely. >> But, yeah, close it out here. >> Yeah, I mean, you can, that's right, you can run it on-prem, just like we run it in our cloud. You can run it in your cloud or on your own infrastructure. Now, that's all true. You know, I think the one hurdle now that we have left as a company is getting the word out and getting people to believe that this is actually possible and try it for themselves. You don't believe it? Do a POC, try it yourself. And, you know, people have become so jaded by the lack of, you know, real sort of innovation in the software industry for the last 10 years that it's hard to get people to... But guys, you got to give it a shot. I'm telling you. I'm telling you right now, it works, and you'll hear more about that from one of our customers in a minute. >> Alright guys, thanks so much. Great story, really appreciate you sharing. >> Thank you. >> Yeah, thanks, Dave. Appreciate the time. >> Okay, in a moment, we're going to hear from Cisco who is the customer in this case example, and a company that is... Look, they have quite an impressive suite of observability tooling, and they've done a pretty compelling proof of concept with Zebrium using real data on some Cisco products that you've heard of like Webex. So stay tuned and learn about how you can really take advantage of this new technology called root cause as a service. You're watching "theCUBE", the leader in enterprise and emerging tech coverage. (bright outro music)
SUMMARY :
and then you got all these new entrants all the buzzwords in your and that that's how you get a point click why you started the company. Now, of course, it means that, you know, about, you know, you but if, you know, it and it was, you know, I mean, you guys are jumping up and down. I mean, you know, we do you have some examples saying that he was busy like, you know, is going to be getting people's attention but, you know, they had I mean, you know, Rod was talking by the lack of, you know, appreciate you sharing. Appreciate the time. So stay tuned and learn about how you can
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Justin Copie, Innovative Solutions | AWS Summit SF 22
>>Everyone. Welcome to the cube here. Live in San Francisco, California for AWS summit, 2022. We're live we're back with events. Also we're a virtual, we got hybrid all kinds of events this year, of course, summit in New York city happening this summer. We'll be there with the cube as well. I'm John, again, John host of the queue. Got a great guest here, Justin Colby, owner and CEO of innovative solutions. Their booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, uh, off camera about some of the work you're doing the owner of and CEO. Yeah. Of innovative. Yeah. So tell us the story. What do you guys do? What's the elevator pitch. Yeah. >><laugh> so elevator pitch is we are, are, uh, a hundred percent focused on small to mid-size businesses that are moving to the cloud or have already moved to the cloud and really trying to understand how to best control, cost, security, compliance, all the good stuff, uh, that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is. Now. We have offices down in Austin, Texas, up in Toronto, uh, Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago. And yeah, it's been a great ride. >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by AWS. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demand coming from cloud migrations and application modernization and obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? >>Yeah. It's a great question. Every CEO I talk to, it's a small to midsize business. They're all trying to understand how to leverage technology better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech is really at the, at the forefront and the center of that. So most cut customers are coming to us and they're like, listen, we gotta move to the cloud or we move some things to the cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then, uh, progressively working through a modernization strategy is always the better approach. And so we spent a lot of time with small to mid-size businesses who don't have the technology talent on staff to be able to do >>That. Yeah. And they want to get set up. But the, the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off it's happening around everywhere. It is. And it's not, it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more, I O T devices, what's that like right now from a channel engine problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem you guys solve >>In the SMB space? The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and are hardened solutions. And so, um, what we try to do with technology staff that has traditional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether that's, we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I tell, yeah, they're like, listen, at the end of the day, I'm gonna be spending money in one place or another, whether that's OnPrem or in the cloud. I just want to know that I'm doing that in a way that helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is no. No. Good. >>How about factoring in the, the agility and speed equation? Does that come up a lot? >>It does. I think, um, I think there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time in the cloud. If you start down your journey in one way and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's a, gives you a much higher density for making decisions and failing forward. >>Well actually shutting down the abandoning, the projects that early, not worrying about it, you got it. I mean, most people don't abandon stuff cuz they're like, oh, I own >>It. Exactly. And >>They get, they get used to it. Like, and then they wait too long. >>That's exactly. Yeah. >>Frog and boiling water, as we used to say, oh, it's a great analogy. So I mean, this, this is a dynamic that's interesting. I wanna get more thoughts on it because like I'm, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you guys come. I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talk to at reinvent, that's a customer. Well, how many announcements did Andy Jessey announce or Adam, you know, the 5,000 announcement or whatever. They did huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just product. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are what's >>What's the values. >>Our mission is, is very simple. We want to help every small to mid-size business, leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we, the market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a tech company in the process of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the out, how are you gonna ask a team of one or two people in your it department to make all of those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our manage services. Meaning they know that we have their back and we're the safety net. So when a customer is saying, right, I'm gonna spend a couple thousand dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going in alone. Who's there to help protect that. Number two, if you have a security posture and let's just say your high profile and you're gonna potentially be more vulnerable to security attacks. If you have a partner that's offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products, uh, that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own, it would cost them a fortune. If >>The training alone would be insane, a risk factor not mean the cost. Yes, absolutely. Opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 28 team. When, uh, when we made the decision to go all in on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious decision. It wasn't requirement. It still isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front desk >>And she could be running the Kubernetes clusters. I >>Love it. >>It's amazing. But I'll tell >>You what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get the right >>People involved. And that's a cultural factor that you guys have. So, so again, this is back to my whole point about SMBs and businesses in general, small and large, it staffs are turning over the gen Z and millennials are in the workforce. They were a provisioning top of rack switches. Right? First of all. And so if you're a business is also the, I call the buildout, um, uh, return factor, ROI piece. At what point in time as an owner or SMB, do I get the ROI? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cyber security issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one and the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are like >>Critical issues. This is >>Just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about this. So >>That's, that's what at least a million in loading, if not three or more Just to get that going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side though. No. And then remind AI and ML. That's >>Right. That's right. So to try to it alone, to me, it's hard. It it's incredibly difficult. And the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll do all that. Exactly. An it department. >>Exactly. >>Like, can we just call up, uh, you know, our old vendor that's right, >>Right. Our old vendor. I like it. >><laugh> but that's so true. I mean, when I think about how, if I was a business owner starting a business today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around the, at is, is very important. And it's something that we talk about every, with every one of our small to mid-size >>Business. So just, I wanna get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative yeah. Award winning guys doing great. Uh, great bet on a good call. Yeah. Things a good tell your, your story. What's your journey. >>It's real simple. I was, uh, I was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportu with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduce other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. And I came in, I did an internship for six months and I loved it. I learned more in those six months than I probably did in my first couple of years at, uh, at RT long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2010 and I was like, Hey, I'm growing the value of this business. And who knows where you guys are gonna be another five years? What do you think about making me an owner? And they were like, listen, you got a long ways before you're gonna be an owner, but if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that were gonna also buy into the business with me. >>And they were the owners, no outside capital, >>None zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons. They all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like if we're owners, we're gonna have to like cover that stuff. <laugh> well, so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015, and, uh, we made the decision that I was gonna buy the three partners out, um, go through an earn out process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the business, cuz they cared very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be had built this company to this point? Yeah. And, uh, and by 2018 we knew that pivoting all going all in on the cloud was important for us and we haven't looked back. >>And at that time, the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly the, uh, and those kinds of big enterprises. The GA I don't wanna say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to midsize business, to migrate completely to the cloud as, as infrastructure was considered. That just didn't happen as often. Um, what we were seeing where a lot of our small to mid-size business customers, they wanted to leverage cloud based backup, or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration, the, the Microsoft suite to the cloud and that a lot of 'em dipped their toe in the water. But by 2017 we knew interest structure was around the corner. Yeah. Yeah. And so, uh, we only had two customers on AWS at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is it the app? Modernization is the data. What's the hot product and then put a plugin for the company. Awesome. >>So, uh, there's no question. Every customer is looking to migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migration. So any SMB that's thinking about migrating to the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customers not to be cash strapped and gives them an opportunity to move forward in a controlled, contained way so that they can modernize. >>So like insurance, basically for them not insurance classic in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers and being empathetic to where they are in their >>Journey. And that's the cloud upside is all about doubling down on the variable wind. That's right. Seeing the value and doubling down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate it. >>Thank you very much for having me. Okay. >>This is the cube coverage here live in San Francisco, California for AWS summit tour 22. I'm John for your host. Thanks for watching. We're back with more great coverage for two days after this short break.
SUMMARY :
I'm John, again, John host of the queue. Thank you for having me. What's the elevator pitch. cost, security, compliance, all the good stuff, uh, that comes along with it. How is this factoring into what you guys do and your growth cuz you guys are the number one And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. it's manufacturing, it's the physical plant or location And the reality is not everything that's And the reality is the faster you move with anything cloud based, Well actually shutting down the abandoning, the projects that early, not worrying about it, you got it. And Like, and then they wait too long. Yeah. I can get that like values as companies, cuz they're betting on you and your people. a customer can buy in the out, how are you gonna ask a team of one or two people in your dollars a month in the cloud. The training alone would be insane, a risk factor not mean the cost. sure everybody in the company has the opportunity to become certified. And she could be running the Kubernetes clusters. But I'll tell And that's a cultural factor that you guys have. This is So There's no modernization on the app side though. And the other thing is, is there's not a lot of partners, An it department. I like it. And so how you build your culture around the, at is, is very important. You said you bought the company and We didn't call it at that time innovative solutions to come in and, And they were like, listen, you got a long ways before you're gonna be an owner, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons. The company still had the opportunity to keep going. The capital ones of the world. And so, uh, we only had two customers on AWS at the time. Uh, tell me the hottest product that you have. So any SMB that's thinking about migrating to the cloud, they should be talking innovative solutions. So like insurance, basically for them not insurance classic in the classic sense, but you help them out on the, We are known for that and we're known for being creative with those customers and being empathetic And that's the cloud upside is all about doubling down on the variable wind. Thank you very much for having me. This is the cube coverage here live in San Francisco, California for AWS summit tour 22.
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AWS Summit San Francisco 2022
More bottoms up and have more technical early adopters. And generally speaking, they're free to use. They're free to try. They're very commonly community source or open source companies where you have a large technical community that's supporting them. So there's a, there's kind of a new normal now I think in great enterprise software and it starts with great technical founders with great products and great bottoms of emotions. And I think there's no better place to, uh, service those people than in the cloud and uh, in, in your community. >>Well, first of all, congratulations, and by the way, you got a great pedigree and great background, super smart, but Myer of your work and your, and, and your founding, but let's face it. Enterprise is hot because digital transformation is all companies there's no, I mean, consumer is enterprise now, everything is what was once a niche. No, I won't say niche category, but you know, not for the faint of heart, you know, investors, >>You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. <laugh> but remember, like right now there's also a tech and VC conference in Miami <laugh> and it's covering cryptocurrencies and FCS and web three. So I think beauty is definitely in the eye of the beholder <laugh> but no, I, I will tell you, >>Ts is one big enterprise, cuz you gotta have imutability you got performance issues. You have, I IOPS issues. >>Well, and, and I think all of us here that are, uh, may maybe students of history and have been involved in open source in the cloud would say that we're, you know, much of what we're doing is, uh, the predecessors of the web web three movement. And many of us I think are contributors to the web three >>Movement. The hype is definitely one web three. Yeah. >>But, >>But you know, >>For sure. Yeah, no, but now you're taking us further east of Miami. So, uh, you know, look, I think, I, I think, um, what is unquestioned with the case now? And maybe it's, it's more obvious the more time you spend in this world is this is the fastest growing part of enterprise software. And if you include cloud infrastructure and cloud infrastructure spend, you know, it is by many measures over, uh, $500 billion in growing, you know, 20 to 30% a year. So it it's a, it's a just incredibly fast, well, >>Let's get, let's get into some of the cultural and the, the shifts that are happening, cuz again, you, you have the luxury of being in enterprise when it was hard, it's getting easier and more cooler. I get it and more relevant <laugh> but there's also the hype of like the web three, for instance, but you know, for, uh, um, um, the CEO snowflake, okay. Has wrote a book and Dave Valenti and I were talking about it and uh, Frank Luman has says, there's no playbooks. We always ask the CEOs, what's your playbook. And he's like, there's no playbook, situational awareness, always Trump's playbooks. So in the enterprise playbook, oh, higher, a direct sales force and SAS kind of crushed that now SAS is being redefined, right. So what is SAS is snowflake assassin or is that a platform? So again, new unit economics are emerging, whole new situation, you got web three. So to me there's a cultural shift, the young entrepreneurs, the, uh, user experience, they look at Facebook and say, ah, you know, they own all my data and you know, we know that that cliche, um, they, you know, the product. So as this next gen, the gen Z and the millennials come in and our customers and the founders, they're looking at things a little bit differently and the tech better. >>Yeah. I mean, I mean, I think we can, we can see a lot of common across all successful startups and the overall adoption of technology. Um, and, and I would tell you, this is all one big giant revolution. I call it the user driven revolution. Right. It's the rise of the user. Yeah. And you might say product like growth is currently the hottest trend in enterprise software. It's actually like growth, right. They're one and the same. So sometimes people think the product, uh, is what is driving growth. >>You just pull the product >>Through. Exactly, exactly. And so that's that I, that I think is really this revolution that you see, and, and it does extend into things like cryptocurrencies and web three and, you know, sort of like the control that is taken back by the user. Um, but you know, many would say that, that the origins of this, but maybe started with open source where users were contributors, you know, contributors were users and looking back decades and seeing how it, how it fast forward to today. I think that's really the trend that we're all writing. It's enabling these end users. And these end users in our world are developers, data engineers, cybersecurity practitioners, right. They're really the, and they're really the, the beneficiaries and the most, you know, kind of valued people in >>This. I wanna come back to the data engineers in a second, but I wanna make a comment and get your reaction to, I have a, I'm a gen Xer technically. So for not a boomer, but I have some boomer friends who are a little bit older than me who have, you know, experienced the sixties. And I have what been saying on the cube for probably about eight years now that we are gonna hit digital hippie revolution, meaning a rebellion against in the sixties was rebellion against the fifties and the man and, you know, summer of love. That was a cultural differentiation from the other one other group, the predecessors. So we're kind of having that digital moment now where it's like, Hey boomers, Hey people, we're not gonna do that anymore. You, we hate how you organize shit. >>Right. But isn't this just technology. I mean, isn't it, isn't it like there used to be the old adage, like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would get fired if you bought IBM. And I mean, it's just like the, the, I think, I think >>During the mainframe days, those renegades were breaking into Stanford, starting the home group. So what I'm trying to get at is that, do you see the young cultural revolution also, culturally, just, this is my identity NFTs to me speak volumes about my, I wanna associate with NFTs, not single sign on. Well, >>Absolutely. And, and I think like, I think you're hitting on something, which is like this convergence of, of, you know, societal it'll trends with technology trends and how that manifests in our world is yes. I think like there is unquestionably almost a religion yeah. Around the way in which a product is built. Right. And we can use open source, one example of that religion. Some people will say, look, I'll just never try a product in the cloud if it's not open source. Yeah. I think cloud, native's another example of that, right? It's either it's, you know, it either is cloud native or it's not. And I think a lot of people will look at a product and say, look, you know, you were not designed in the cloud era. Therefore I just won't try you. And sometimes, um, like it or not, it's a religious decision, right? Yeah. It's so it's something that people just believe to be true almost without, uh, necessarily caring >>About data. Data drives all decision making. Let me ask you this next question. As a VC. Now you look at pitch, well, you've been a VC for many years, but you also have the founder entrepreneurial mindset, but you can get empathize with the founders. You know, hustle is a big part of the, that first founder check, right? You gotta convince someone to part with their ch their money and the first money in which you do a lot of it's about believing in the person. So faking it till you make it is hard. Now you, the data's there, you either have it cloud native, you either have the adaption or traction. So honesty is a big part of that pitch. You can't fake it. >>Oh, AB absolutely. You know, there used to be this concept of like the persona of an entrepreneur. Right. And the persona of the entrepreneur would be, you know, so somebody who was a great salesperson or somebody who tell a great story, and I still think that that's important, right. It still is a human need for people to believe in narratives and stories. Yeah. But having said that you're right. The proof is in the pudding, right. At some point you click download and you try the product and it does what it says it gonna it's gonna do, or it doesn't, or it either stands up to the load test or it doesn't. And so I, I feel like in the new economy that we live in, really, it's a shift from maybe the storytellers and the creators to, to the builders, right. The people that know how to build great product. And in some ways the people that can build great product yeah. Stand out from the crowd. And they're the ones that can build communities around their products. And, you know, in some ways can, um, you know, kind of own more of the narrative of because their product begins exactly >>The volume you back to the user led growth. >>Exactly. And it's the religion of, I just love your product. Right. And I, I, I, um, Doug song is the founder of du security used to say, Hey, like, you know, the, the really like in today's world of like consumption based software, like the user is only gonna give you 90 seconds to figure out whether or not you're a company that's easy to do business with. Right. And so you can say, and do all the things that you want about how easy you are to work with. But if the product isn't easy to install, if it's not easy to try, if it's not, if, if the it's gotta speak to the, >>Speak to the user, but let me ask a question now that for the people watching, who are maybe entrepreneurial entre, preneurs, um, masterclass here in session. So I have to ask you, do you prefer, um, an entrepreneur come in and say, look at John. Here's where I'm at. Okay. First of all, storytelling's fine with you an extrovert or introvert, have your style, sell the story in a way that's authentic, but do you, what do you prefer to say? Here's where I'm at? Look, I have an idea. Here's my traction. I think here's my MVP prototype. I need help. Or do, do you wanna just see more stats? What's the, what's the preferred way that you like to see entrepreneurs come in and engage? >>There's tons of different styles, man. I think the single most important thing that every founder should know is that we, we don't invest in what things are today. We invest in what we think something will become. Right. And I think that's why we all get up in the morning and try to build something different, right? It's that we see the world a different way. We want it to be a different way. And we wanna work every single moment of the day to try to make that vision a reality. So I think the more that you can show people where you want to be the, of more likely somebody is gonna align with your vision and, and wanna invest in you and wanna be along for the ride. So I, I wholeheartedly believe in showing off what you got today, because eventually we all get down to like, where are we and what are we gonna do together? But, um, no, I, you gotta >>Show the >>Path. I think the single most important thing for any founder and VC relationship is that they have the same vision. Uh, if you have the same vision, you can, you can get through bumps in the road, you can get through short term spills. You can all sorts of things in the middle. The journey can happen. Yeah. But it doesn't matter as much if you share the same long term vision, >>Don't flake out and, and be fashionable with the latest trends because it's over before you can get there. >>Exactly. I think many people that, that do what we do for a living, we'll say, you know, ultimately the future is relatively easy to predict, but it's the timing that's impossible to predict. <laugh> so you, you know, you sort of have to balance the, you know, we, we know that the world is going in this way and therefore we're gonna invest a lot of money to try to make this a reality. Uh, but some times it happens in six months. Sometimes it takes six years. Sometimes it takes 16 years. Uh, >>What's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at right now with Bel partners, Tebel dot your site. What's the big wave. What's your big >>Wave. There's three big trends that we invest in. And the they're the only things we do day in, day out one is the explosion and open source software. So I think many people think that all software is unquestionably moving to an open source model in some form or another yeah. Tons of reasons to debate whether or not that is gonna happen, an alwa timeline >>Happening forever. >>But, uh, it is, it is accelerating faster than we've ever seen. So I, I think it's, it's one big, massive wave that we continue to ride. Um, second is the rise of data engineering. Uh, I think data engineering is in and of itself now, a category of software. It's not just that we store data. It's now we move data and we develop applications on data. And, uh, I think data is in and of itself as big of a market as any of the other markets that we invest in. Uh, and finally, it's the gift that keeps on giving. I've spent my entire career in it. We still feel that security is a market that is underinvested. It is, it continues to be the place where people need to continue to invest and spend more money. Yeah. Uh, and those are the three major trends that we run >>And security, you think we all need a dessert do over, right? I mean, do we need you do over in security or is what's the core problem? I, >>I, I keep using this word underinvested because I think it's the right way to think about the problem. I think if you, I think people generally speaking, look at cybersecurity as an add-on. Yeah. But if you think about it, the whole economy is moving online. And so in, in some ways like security is core to protecting the digital economy. And so it's, it shouldn't be an afterthought, right? It should be core to what everyone is doing. And that's why I think relative to the trillions of dollars that are at stake, uh, I believe the market size for cybersecurity is run $150 billion. And it still is a fraction of what we're, >>What we're and national security even boom is booming now. So you get the convergence of national security, geopolitics, internet digital that's >>Right. You mean arguably, right? I mean, arguably again, it's the area of the world that people should be spending more time and more money given what to stake. >>I love your thesis. I gotta, I gotta say, you gotta love your firm. Love. You're doing we're big supporters, your mission. Congratulations on your entrepreneurial venture. And, uh, we'll be, we'll be talking and maybe see a Cuban. Uh, absolutely not. Certainly EU maybe even north Americans in Detroit this year. >>Huge fan of what you guys are doing here. Thank you so much for helping me on the show. >>Guess be VC Johnson here on the cube. Check him out. Founder for founders here on the cube, more coverage from San Francisco, California. After this short break, stay with us. Everyone. Welcome to the cue here. Live in San Francisco. K warn you for AWS summit 2022 we're live we're back with events. Also we're virtual. We got hybrid all kinds of events. This year, of course, summit in New York city is happening this summer. We'll be there with the cube as well. I'm John. Again, John host of the cube. Got a great guest here, Justin Kobe owner, and CEO of innovative solutions. Their booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, uh, off camera about some of the work you're doing. You're the owner of and CEO. Yeah. Of innovative. Yeah. So tell us the story. What do you guys do? What's the elevator pitch. >>Yeah. <laugh> so the elevator pitch is we are, uh, a hundred percent focused on small to mid-size businesses that are moving to the cloud, or have already moved to the cloud and really trying to understand how to best control security, compliance, all the good stuff that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is, but now we have offices down in Austin, Texas, up in Toronto, uh, Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago. And it's been a great ride. >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by a of us. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demands coming from cloud migrations and application modernization, but obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? >>Yeah. It's a great question. Every CEO I talk to, that's a small mids to size business. They're all trying to understand how to leverage technology better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech is really at the, at the forefront and the center of that. So most customers are coming to us and they're of like, listen, we gotta move to the cloud or we move some things to the cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then so, uh, progressively working through a modernization strategy is always the better approach. And so we spend a lot of time with small to mid-size businesses who don't have the technology talent on staff to be able to do >>That. Yeah. And they want to get set up. But the, the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off happening around everywhere. It is not it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more IOT devices. What's that like right now from a challenge and problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem. And you guys solve >>In the SMB space. The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and our hardened solutions. And so, um, what we try to do with, to technology staff that has traditional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether that's, we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I talk to yeah. Feel like, listen, at the end of the day, I'm gonna be spending money in one place or another, whether that's on primer in the cloud, I just want know that I'm doing that way. That helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is, is no. No. Good. >>How about factoring in the, the agility and speed equation? Does that come up a lot? It >>Does. I think, um, I think there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time. Yeah. In the cloud, if you start down your journey in one way and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's a, gives you a much higher density for making decisions and failing >>Forward. Well actually shutting down the abandoning, the projects that early, not worrying about it, you got it mean most people don't abandon stuff cuz they're like, oh, I own it. >>Exactly. >>And they get, they get used to it. Like, and then they wait too long. >>That's exactly. >>Yeah. Frog and boiling water, as we used to say, oh, it's a great analogy. So I mean, this, this is a dynamic. That's interesting. I wanna get more thoughts on it because like I'm a, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you guys come in. I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talked to at reinvent, that's a customer. Well, how many announcements did Andy jazzy announcer Adam? You know, the 5,000 announcement or whatever. They did huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just processes. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are >>Values. >>Our mission is, is very simple. We want to help every small to midsize business leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we go to market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a 10 a company in the process of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your it department to make all those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our managed services. Meaning they know that we have their back and we're the safety net. So when a customer is saying, right, I'm gonna spend a couple thousand and dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going in alone. Who's there to help protect that. Number two, if you have a security posture and let's just say your high profile and you're gonna potentially be more vulnerable to security attacks. If you have a partner that's offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products, uh, that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own. It, it would cost 'em a four, >>The training alone would be insane. A risk factor. I mean the cost. Yes, absolutely opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 2018. When, uh, when we, he made the decision to go all in on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious, it wasn't requirement. It still isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front >>Desk and she could be running the Kubernetes clusters. I >>Love it. It's >>Amazing. >>But I'll tell you what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get >>The right people with. And that's a cultural factor that you guys have. So, so again, this is back to my whole point out SMBs and businesses in general, small and large it staffs are turning over the gen Z and millennials are in the workforce. They were provisioning top of rack switches. Right. First of all. And so if you're a business, there's also the, I call the buildout, um, uh, return factor, ROI piece. At what point in time as an owner, SMB, do I get to ROI? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cyber security issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one in the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are >>Like critical issues. >>This is just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about this, >>That's, that's what, at least a million in loading, if not three or more Just to get that app going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side. No. And they remind AI and ML. >>That's right. That's right. So to try to go it alone, to me, it's hard. It it's incredibly difficult. And the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll do all that exactly. In the it department. >>Exactly. >>So like, can we just call up, uh, you know, our old vendor that's >>Right. <laugh> right. Our old vendor. I like it, >>But that's so true. I mean, when I think about how, if I was a business owner starting a business today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around that is, is very important. It's something that we talk about every, with every one of our small to mid-size >>Businesses. So just, I want get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative yeah. Award winning guys doing great. Uh, great bet on a good call. Yeah. Things are good. Tell your story. What's your journey? >>It's real simple. I was, uh, I was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportunity with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduced other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. Yeah. I came in, I did an internship for six months and I loved it. I learned more in those six months than I probably did in my first couple of years at, uh, at RT long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, sales process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2000 and I was like, Hey, I'm growing the value of this business. And who knows where you guys are gonna be another five years? What do you think about making me an owner? And they were like, listen, you got long ways before you're gonna be an owner. But if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that were gonna also buy the business with me. >>And they were the owners, no outside capital, >>None zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons. They all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like, if we're own, we're gonna have to like cover that stuff. <laugh> so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015 and, uh, we made the decision that I was gonna buy the three partners out, um, go through an earn out process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the BI cuz they cared very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be? We had built this company to this point. Yeah. And, uh, and by 2018 we knew that pivoting all going all in on the cloud was important for us. And we haven't looked back. >>And at that time, the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly the, uh, and those kinds of big enterprises. The GA I don't wanna say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to midsize business to migrate completely to the cloud is as infrastructure was considered, that just didn't happen as often. Um, what we were seeing where the, a lot of our small to midsize business customers, they wanted to leverage cloud based backup, or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration. The, the Microsoft suite to the cloud. And a lot of 'em dipped their toe in the water. But by 2017 we knew infrastructure was around the corner. Yeah. And so, uh, we only had two customers on AWS at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is the app modernization? Is it data? What's the hot product and then put a plugin for the company. Awesome. >>So, uh, there's no question. Every customer is looking migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. So any SMB that's thinking about migrating into the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customer is not to be cash strapped and gives them an opportunity to move forward in a controlled, contained way so they can modernize. So >>Like insurance, basically for them not insurance class in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers and being empathetic to where they are in their journey. >>And that's the cloud upside is all about doubling down on the variable win that's right. Seeing the value and ING down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate >>It. Thank you very much for having me. >>Okay. This is the cube coverage here live in San Francisco, California for AWS summit, 2022. I'm John for your host. Thanks for watching. We're back with more great coverage for two days after this short break >>Live on the floor in San Francisco for Aus summit. I'm John for host of the cube here for the next two days, getting all the actual back in person we're at AWS reinvent a few months ago. Now we're back events are coming back and we're happy to be here with the cube. Bring all the action. Also virtual. We have a hybrid cube, check out the cube.net, Silicon angle.com for all the coverage. After the event. We've got a great guest ticking off here. Matthew Park, director of solutions, architecture with innovation solutions. The booth is right here. Matthew, welcome to the cube. >>Thank you very much. I'm glad to be here. >>So we're back in person. You're from Tennessee. We were chatting before you came on camera. Um, it's great to be back through events. It's >>Amazing. This is the first, uh, summit I've been to, to in what two, three >>Years. That's awesome. We'll be at the, uh, a AWS summit in New York as well. A lot of developers and the big story this year is as developers look at cloud going distributed computing, you got on premises, you got public cloud, you got the edge. Essentially the cloud operations is running everything devs sec ops, everyone kind of sees that you got containers, you got Benet, he's got cloud native. So the, the game is pretty much laid out. Mm-hmm <affirmative> and the edge is with the actions you guys are number one, premier partner at SMB for edge. >>That's >>Right. Tell us about what you guys doing at innovative and, uh, what you do. >>That's right. Uh, so I'm the director of solutions architecture. Uh, me and my team are responsible for building out the solutions. The at our around, especially the edge public cloud for us edge is anything outside of an AWS availability zone. Uh, we are deploying that in countries that don't have AWS infrastructure in region. They don't have it. Uh, give >>An example, >>Uh, example would be Panama. We have a customer there that, uh, needs to deploy some financial tech data and compute is legally required to be in Panama, but they love AWS and they want to deploy AWS services in region. Uh, so they've taken E EKS anywhere. We've put storage gateway and, uh, snowball, uh, in region inside the country and they're running or FinTech on top of AWS services inside Panama. >>You know, what's interesting, Matthew is that we've been covering Aw since 2013 with the cube about their events. And we watched the progression and jazzy was, uh, was in charge and became the CEO. Now Adam slaps in charge, but the edge has always been that thing they've been trying to avoid. I don't wanna say trying to avoid, of course, Amazon would listens to the customer. They work backwards from the customer. We all know that. Uh, but the real issue was they were they're bread and butters EC two and S three. And then now they got tons of services and the cloud is obviously successful and seeing that, but the edge brings up a whole nother level. >>It does >>Computing. >>It >>Does. That's not centralized in the public cloud now they got regions. So what is the issue with the edge what's driving? The behavior. Outpost came out as a reaction to competitive threats and also customer momentum around OT, uh, operational technologies. And it merging. We see with the data at the edge, you got five GM having. So it's pretty obvious, but there was a slow transition. What was the driver for the edge? What's the driver now for edge action for AWS >>Data in is the driver for the edge. Data has gravity, right? And it's pulling compute back to where the customer's generating that data and that's happening over and over again. You said it best outpost was a reaction to a competitive situation. Whereas today we have over 15 AWS edge services and those are all reactions to things that customers need inside their data centers on location or in the field like with media companies. >>Outpost is interesting. We always use the riff on the cube, uh, cause it's basically Amazon in a box, pushed in the data center, running native, all this stuff, but now cloud native operations are kind of becoming standard. You're starting to see some standard. Deepak syncs group is doing some amazing work with opensource Raul's team on the AI side, obviously, uh, you got SW who's giving the keynote tomorrow. You got the big AI machine learning big part of that edge. Now you can say, okay, outpost, is it relevant today? In other words, did outpost do its job? Cause EKS anywhere seems to be getting a lot of momentum. You see local zones, the regions are kicking ass for Amazon. This edge piece is evolving. What's your take on EKS anywhere versus say outpost? >>Yeah, I think outpost did its job. It made customers that were looking at outpost really consider, do I wanna invest in this hardware? Do I, do I wanna have, um, this outpost in my datas center, do I want to manage this over the long term? A lot of those customers just transitioned to the public cloud. They went into AWS proper. Some of those customers stayed on prem because they did have use cases that were, uh, not a good fit for outpost. They weren't a good fit. Uh, in the customer's mind for the public AWS cloud inside an availability zone now happening is as AWS is pushing these services out and saying, we're gonna meet you where you are with 5g. We're gonna meet you where you are with wavelength. We're gonna meet you where you are with EKS anywhere. Uh, I think it has really reduced the amount of times that we have conversations about outposts and it's really increased. We can deploy fast. We don't have to spin up outpost hardware can go deploy EKS anywhere in your VMware environment. And it's increasing the speed of adoption >>For sure. Right? So you guys are making a lot of good business decisions around managed cloud service. That's right. Innovative. Does that get the cloud advisory, the classic professional services for the specific edge piece and, and doing that outside of the availability zones and regions for AWS, um, customers in these new areas that you're helping out are they want cloud, like they want to have modernization a modern applications. Obviously they got data machine learning and AI, all part of that. What's the main product or, or, or gap that you're filling for AWS, uh, outside of their availability zones or their regions that you guys are delivering. What's the key is that they don't have a footprint. Is it that it's not big enough for them? What's the real gap. What's why, why are you so successful? >>So what customers want when they look towards the cloud is they want to focus on what's making them money as a business. They wanna focus on their applications. They wanna focus on their customers. So they look towards AWS cloud and a AWS. You take the infrastructure, you take, uh, some of the higher layers and we'll focus on our revenue generating business, but there's a gap there between infrastructure and revenue generating business that innovative slides into, uh, we help manage the AWS environment. Uh, we help build out these things in local data centers for 32 plus year old company. We have traditional on-premises people that know about deploying hardware that know about deploying VMware to host EKS anywhere. But we also have most of our company totally focused on the AWS cloud. So we're that gap in helping deploy these AWS services, manage them over the long term. So our customers can go to just primarily and totally focusing on their revenue generating business. So >>Basically you guys are basically building AWS edges, >>Correct? >>For correct companies, correct? Mainly because the, the needs are there, you got data, you got certain products, whether it's, you know, low latency type requirements, right. And then they still work with the regions, right. It's all tied together, right. Is that how it >>Works? Right. And, and our customers, even the ones in the edge, they also want us to build out the AWS environment inside the availability zone, because we're always gonna have a failback scenario. If we're gonna deploy fin in the Caribbean, we're gonna talk about hurricanes. And we're gonna talk about failing back into the AWS availability zones. So innovative is filling that gap across the board, whether it be inside the AWS cloud or on the AWS edge. >>All right. So I gotta ask you on the, since you're at the edge in these areas, I won't say underserved, but developing areas where now have data and you have applications that are tapping into that, that requirement. It makes total sense. We're seeing that across the board. So it's not like it's a, it's an outlier it's actually growing. Yeah. There's also the crypto angle. You got the blockchain. Are you seeing any traction at the edge with blockchain? Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech. And in, in the islands there a lot of, lot of, lot of web three happening. What's your, what your view on the web three world right now, relative >>To we, we have some customers actually deploying crypto, especially, um, especially in the Caribbean. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers that are deploying crypto. A lot of, uh, countries are choosing crypto to underlie parts of their central banks. Yeah. Um, so it's, it's up and coming. Uh, I, I have some, you know, personal views that, that crypto is still searching for a use case. Yeah. And, uh, I think it's searching a lot and, and we're there to help customers search for that use case. Uh, but, but crypto, as a, as a, uh, technology, um, lives really well on the AWS edge. Yeah. Uh, and, and we're having more and more people talk to us about that. Yeah. And ask for assistance in the infrastructure, because they're developing new cryptocurrencies every day. Yeah. It's not like they're deploying Ethereum or anything specific. They're actually developing new currencies and, and putting them out there on >>It's interesting. I mean, first of all, we've been doing crypto for many, many years. We have our own little, um, you know, project going on. But if you look talk to all the crypto people that say, look, we do a smart contract, we use the blockchain. It's kind of over a lot of overhead and it's not really their technical already, but it's a cultural shift, but there's underserved use cases around use of money, but they're all using the blockchain just for like smart contracts, for instance, or certain transactions. And they go to Amazon for the database. Yeah. <laugh> they all don't tell anyone we're using a centralized service. Well, what happened to decentralized? >>Yeah. And that's, and that's the conversation performance issue. Yeah. And, and it's a cost issue. Yeah. And it's a development issue. Um, so I think more and more as, as some of these, uh, currencies maybe come up, some of the smart contracts get into, uh, they find their use cases. I think we'll start talking about how does that really live on, on AWS and, and what does it look like to build decentralized applications, but with AWS hardware and services. >>Right. So take me through, uh, a use case of a customer Matthew around the edge. Okay. So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. I want to modernize my business. And I got my developers that are totally peaked up on cloud, but we've identified that it's just a lot of overhead latency issues. I need to have a local edge and serve my a, I also want all the benefit of the cloud. So I want the modern, and I wanna migrate to the cloud for all those cloud benefits and the goodness of the cloud. What's the answer. >>Yeah. Uh, big thing is, uh, industrial manufacturing, right? That's, that's one of the best use cases, uh, inside industrial manufacturing, we can pull in many of the AWS edge services we can bring in, uh, private 5g, uh, so that all the, uh, equipment that, that manufacturing plant can be hooked up, they don't have to pay huge overheads to deploy 5g it's, uh, better than wifi for the industrial space. Um, when we take computing down to that industrial area, uh, because we wanna do pre-procesing on the data. Yeah. We want to gather some analytics. We deploy that with a regular commercially available hardware running VMware, and we deploy EKS anywhere on that. Inside of that manufacturing plant, we can do pre-procesing on things coming out of the robotics, depending on what we're manufacturing. Right. And then we can take those refined analytics and for very low cost with maybe a little bit longer latency transmit those back, um, to the AWS availability zone, the, the standard >>For data, data lake, or whatever, >>To the data lake. Yeah. Data lake house, whatever it might be. Um, and we can do additional data science on that once it gets to the AWS cloud. Uh, but a lot of that, uh, just in time business decisions, just time manufacturing decisions can all take place on an AWS service or services inside that manufacturing plant. And that's, that's one of the best use cases that we're >>Seeing. And I think, I mean, we've been seeing this on the queue for many, many years, moving data around is very expensive. Yeah. But also compute going to the data that saves that cost yeah. On the data transfer also on the benefits of the latency. So I have to ask you, by the way, that's standard best practice now for the folks watching don't move the data unless you have to. Um, but those new things are developing. So I wanna ask you what new patterns are you seeing emerging once this new architecture's in place? Love that idea, localize everything right at the edge, manufacturing, industrial, whatever, the use case, retail, whatever it is. Right. But now what does that change in the, in the core cloud? There's a, there's a system element here. Yeah. What's the new pattern. There's >>Actually an organizational element as well, because once you have to start making the decision, do I put this compute at the point of use or do I put this compute in the cloud? Uh, now you start thinking about where business decisions should be taking place. Uh, so not only are you changing your architecture, you're actually changing your organization because you're thinking, you're thinking about a dichotomy you didn't have before. Uh, so now you say, okay, this can take place here. Uh, and maybe, maybe this decision can wait. Right. And then how do I visualize that? By >>The way, it could be a bot tube doing the work for management. Yeah. <laugh> exactly. You got observability going, right. But you gotta change the database architecture on the back. So there's new things developing. You've got more benefit. There >>Are, there are, and we have more and more people that, that want to talk less about databases and want to talk about data lakes because of this. They want to talk more about customers are starting to talk about throwing away data. Uh, you know, for the past maybe decade. Yeah. It's been store everything. And one day we will have a data science team that we hire in our organization to do analytics on this decade of data. And well, >>I mean, that's, that's a great point. We don't have time to drill into, maybe we do another session this, but the one pattern we're seeing come of the past year is that throwing away data's bad. Even data lakes that so-called turn into data swamps, actually, it's not the case. You look at data, brick, snowflake, and other successes out there. And even time series data, which may seem irrelevant efforts over actually matters when people start retrain their machine learning algorithms. Yep. So as data becomes co as we call it in our last showcase, we did a whole whole an event on this. The data's good in real time and in the lake. Yeah. Because the iteration of the data feeds the machine learning training. Things are getting better with the old data. So it's not throw away. It's not just business benefits. Yeah. There's all kinds of new scale. There >>Are. And, and we have, uh, many customers that are running petabyte level. Um, they're, they're essentially data factories on, on, on premises, right? They're, they're creating so much data and they're starting to say, okay, we could analyze this, uh, in the cloud, we could transition it. We could move petabytes of data to AWS cloud, or we can run, uh, computational workloads on premises. We can really do some analytics on this data transition, uh, those high level and sort of raw analytics back to AWS run 'em through machine learning. Um, and we don't have to transition 10, 12 petabytes of data into AWS. >>So I gotta end the segment on a, on a, kind of a, um, fun, I was told to ask you about your personal background on premise architect, Aus cloud, and skydiving instructor. How does that all work together? What tell, what does this mean? >>Yeah. Uh, I, >>You jumped out a plane and got a job. You got a customer to jump >>Out kind of. So I was, you jumped out. I was teaching Scott eing, uh, before I, before I started in the cloud space, this was 13, 14 years ago. I was a, I still am a Scott I instructor. Uh, I was teaching Scott eing and I heard out of the corner of my ear, uh, a guy that owned an MSP that was lamenting about, um, you know, storing data and how his customers are working. And he can't find enough people to operate all these workloads. So I walked over and said, Hey, this is, this is what I went to school for. Like, I'd love to, you know, I was living in a tent in the woods, teaching skydiving. I was like, I'd love to not live in a tent in the woods. So, uh, I started in the first day there, we had a, and, uh, EC two had just come out <laugh> um, and, uh, like, >>This is amazing. >>Yeah. And so we had this discussion, we should start moving customers here. And, uh, and that totally revolutionized that business, um, that, that led to, uh, that that guy actually still owns a skydiving airport. But, um, but through all of that, and through being in on premises, migrated me and myself, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, now let's take what we learned in the cloud and, and apply those lessons and those services to premises. >>So it's such a great story. You know, I was gonna, you know, you know, the, the, the, the whole, you know, growth mindset pack your own parachute, you know, uh, exactly. You know, the cloud in the early days was pretty much will the shoot open. Yeah. It was pretty much, you had to roll your own cloud at that time. And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. >>And so was Kubernetes by the way, 2015 or so when, uh, when that was coming out, it was, I mean, it was, it was still, and I, maybe it does still feel like that to some people, right. Yeah. But, uh, it was, it was the same kind of feeling that we had in the early days of AWS, the same feeling we have when we >>It's much now with you guys, it's more like a tandem jump. Yeah. You know, but, but it's a lot of, lot of this cutting stuff like jumping out of an airplane. Yeah. You guys, the right equipment, you gotta do the right things. Exactly. >>Right. >>Matthew, thanks for coming on the cube. Really appreciate it. Absolutely great conversation. Thanks for having me. Okay. The cubes here, lot in San Francisco for AWS summit, I'm John for your host of the cube. Uh, we'll be at a summit in New York coming up in the summer as well. Look up for that. Look at this calendar for all the cube, actually@thecube.net. We'll right back with our next segment after this break. >>Okay. Welcome back everyone to San Francisco live coverage here, we're at the cube, a summit 2022. We're back in person. I'm John furry host of the cube. We'll be at the, a us summit in New York city this summer, check us out then. But right now, two days in San Francisco getting all coverage, what's going on in the cloud, we got a cube alumni and friend of the cube, my dos car CEO, investor, a Sierra, and also an investor and a bunch of startups, angel investor. Gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see you, Pam. Cool. How are you? Good. >>How are you? >>So congratulations on all your investments. Uh, you've made a lot of great successes, uh, over the past couple years, uh, and your company raising, uh, some good cash as Sarah so give us the update. How much cash have you guys raised? What's the status of the company product what's going on? First >>Of all, thank you for having me. We're back to be business with you never while after. Great to see you. Um, so is a company started around four years back. I invested with a few of the investors and now I'm the CEO there. Um, we have raised close to a hundred million there. Uh, the investors are people like nor west Menlo, true ventures, coast, lo ventures, Ram Shera, and all those people, all known guys that Antibe chime Paul Mayard web. So a whole bunch of operating people and, uh, Silicon valley vs are involved. >>And has it gone? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISR is going after is what I call the applying AI for customer service. It operations, it help desk the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and ServiceNow to take it to the next stage? Well, >>I love having you on the cube, Dave and I, and Dave Valenti as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a, you're like a guest analyst. <laugh>, >>You know, >>You >>Get, the comment is fun to talk to you though. >>You get the commentary, you, your, your finger on the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase it. Isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud out scale. You predicted that we talked about in the cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing Docker just raised a hundred million on our $2 billion valuation back from the dead after they pivoted from an enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control, plane emerging, AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded observability there's 10 million observability companies. Data is the key. This is what's your angle on this. What's your take. Yeah, >>No, look, I think I'll give you the view that I see, right? I, from my side, obviously data is very clear. So the things that room system of record that you and me talked about, the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud native, it'll be called AI. NA NA is a new buzzword and using the AI for customer service, it operations. You talk about observability. I call it AI ops, applying AOPs for good old it operation management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events insurance. So I see a lot of work clicking for AIOps and AI service desk. What needs to be helped desk with ServiceNow BMC <inaudible> you see a new ALA emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflows, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with AI workflows. So you'll see AI going >>Off is RPA a company is AI, is RPA a feature of something bigger? Or can someone have a company on RPA UI S one will be at their event this summer? Um, or is it a product company? I mean, I mean, RPA is almost, should be embedded in everything. >>It's a feature. It is very good point. Very, very good thinking. So one is, it's a category for sure. Like, as we thought, it's a category, it's an area where RPA may change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company also, but that automation should be a, in every area. Yeah. Like we call cloud NA and AI NATO it'll become automation. NA yeah. And that's your thinking. >>It's almost interesting me. I think about the, what you're talking about what's coming to mind is I'm kind having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it was middleware. It sat between two things and then the middle and it was software was action. Now you have all kinds of workflows abstractions everywhere. Right? So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed or they integrated. I mean, these are the challenges. This is crazy. What's the, >>So don't about the databases become all polyglot databases. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area, like, as you were talking about, it should be part of ServiceNow. It should be part of ISRA, like every company, every Salesforce. So that's why you see MuleSoft and Salesforce buying RPA companies. So you'll see all the SaaS companies could cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also will have an automation as a layer <inaudible> inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind us, you got the expo hall. You got, um, we're back to vents, but you got, you know, am Clume Ove, uh, Dynatrace data dog, innovative all the companies out here that we know, we interview them all. They're trying to be suppliers to this growing enterprise market. Right. Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Deibel later today. He's a former NEA guy and we always talk to Jerry, Jen, we know all the, the VCs. What does the startups look like? What does the state of the, in your mind, cause you, I know you invest the entrepreneurial founder situation. Cloud's bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's. Yes. Basically. Data's everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to, uh, two things that I'm seeing out there. Remember leaders, how Amazon created the startups 15 years back, everybody built on Amazon now, Azure and GCP. The next layer would be is people don't just build on Amazon. They're gonna build it on top of snowflake. Companies are snowflake becomes a data platform, right? People will build on snowflake. Right? So I see my old boss flagman try to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer. Right? So I think that's the next level of <inaudible> trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis of a couple months ago called castles in the cloud where your Mo is what you do in the cloud. Not necessarily in, in the, in the IP. Um, Dave LAN and I had last reinvent, coined the term super cloud, right? He's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldman S Sachs is doing. You starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage, and guys, Charles Fitzgerald out there who we like was kind of shitting on us saying, Hey, you guys terrible, they didn't get it. Like, yeah, I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. <laugh> cause he's cool. Um, but snowflake is on Amazon. Now. They say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist. And, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. It >>Is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to build everything on Amazon where possible whatever is, I cannot build. I'll make the pass layer. Remember the middle layer pass will be snowflake so I can build it on snowflake. I can use them for data layer if I really need to size build it on force.com Salesforce. Yeah. Right. So I think that's where you'll see. So >>Basically the, if you're an entrepreneur, the, the north star in terms of the, the outcome is be a super cloud. >>It is, >>That's the application on another big CapEx ride, the CapEx of AWS or cloud, >>And that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. Yeah. >>Yeah. How are, how is Amazon and the clouds dealing with these big whales, the snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think they had Redshift. Amazon has got Redshift. Um, but Snowflake's a big customer in the, they're probably paying AWS, I think big bills too. So >>Joe on very good. Cause it's like how Netflix is and Amazon prime, right. Netflix runs on Amazon, but Amazon has Amazon prime that co-optation will be there. So Amazon will have Redshift, but Amazon is also partnering with, uh, snowflake to have native snowflake data warehouses or data layer. So I think depending on the application use case, you have to use each of the above. I think snowflake is here for a long term. Yeah. Yeah. So if I'm building an application, I want to use snowflake then writing from stats. >>Well, I think that it comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, you know, foreclose, your, you that's right with some sort of internal hack. Uh, but I think, I think the general question that I have is that I, I think it's okay to have a super cloud like that because the rising tide is still happening at some point, when does the rising tide stop and do the people shopping up their knives, it gets more competitive or is it just an infinite growth? So >>I think it's growth. You call it cloud scale, you invented the word cloud scale. So I think look, cloud will continually agree, increase. I think there's as long as there more movement from on, uh, OnPrem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations. It helpless, even the customer service service now and, uh, ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So cloud ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go >>Made. I wanna get your thoughts for the folks watching that are, uh, enterprise buyers are practitioners, not suppliers to the more market, feel free to text me or DMing. The next question's really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products, cuz you know, the big enterprises now and you know, small, medium, large and large enterprise are all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between the startup selling to, or growing startup selling to an enterprise? Um, have you seen changes there? I mean I'm seeing some stuff, but why don't get your thoughts on that? What, >>No, it is. If I growing by or 2007 or eight, when I used to talk to you back then and Amazon started very small, right? We are an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or 1% today. Most companies are already spending 20, 30% with startups. Like if I look at a CIO or line of business, it's gone. Yeah. Can it go more? I think it can in the next four, five years. Yeah. Spending on the startups. >>Yeah. And check out, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want to get your reaction because I reference the URL cause it's like, there's like a bunch of companies we've been promoting because the solutions that startups have actually are new stuff. Yes. It's bending, it's shifting for security or using data differently or um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there. Um, and goes back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona, you mentioned AIOps, we've been seeing AIOps IOPS booming and that's creating a new developer paradigm that's right. Which we call coin data as code data as code is like infrastructure is code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this data engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same thing? Do you agree? Um, do you disagree or can you share >>Yourself a lot of first is I see the AIOP solutions in the future should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone there yet. Like I spend a lot of time with data dog, Cisco app Dyna, right? Dynatrace, all this solution. We will go future towards predict to proactive solution with AOPs. But what you bring up a very good point on the data side. I think like we have a Amazon marketplace and Amazon for startup, there should be data exchange where you want to create for AOPs and AI service desk. Customers are give the data, share the data because we thought the data algorithms are useless. I can them, but I gotta train them, modify them, tweak them, make them >>Better, >>Make them better. Yeah. And I think their whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that area is very important. >>You've always been on, um, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to big data days back in 2009, you know, >>Look at, look how much data Rick has grown. >>It is. They doubled the >>Key cloud air kinda went private. So good stuff, man. What are you working on right now? Give a, give a, um, plug for what you're working on. You'll still investing. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. So right. ISRA is my number one baby right now. So I'm looking at that growing customers and my customers are some of them, you like it's zoom auto desk McAfee, uh, grand to so all the top customers, um, mainly for it help desk customer service. AIOps those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What's what's their need? What category is it? >>I think they look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on predict is one area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value problem. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service. >>Great stuff, man. Great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the cube. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of Aish summit 2022. And we're gonna be at Aus summit in San, uh, in New York in the summer. So look for that on this calendar, of course go to eight of us, startups.com. I mentioned that it's decipher all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break. >>Okay. Welcome back everyone. This the cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back, little bit smaller footprint, a lot of hybrid events going on, but this is actually a physical event, a summit in new York's coming in the summer. We'll be there too with the cube on the set. We're getting back in the groove psych to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're can see a lot of virtual cube outta hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economists with bill group. He's the founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank >>You. Thanks. Coming on. Sure is a lot of words to describe is shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at mark, Andrew's been doing a lot of shit posting lately. All a billionaires are shit hosting, but they don't know how to do it. Like they're not >>Doing it right? So there's something opportunity there. It's like here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a midsize island, do begin doing this from, oh, then we're having fun. >>This shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on this side I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what is shit posting? >>It's more or less talking about the world of enter prize technology, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream. But it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a jackass or more prosaically are worried about getting fired for better or worse. I don't don't have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, coupons coming up in Spain, which they're having a physical event, you see the growth of cloud native Amazon's of all the Adams, especially new CEO. Andy's move on to be the chief of all Amazon. Just so I'm the cover of was it time met magazine? Um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything. These folks do. They're they're effectively in a fishbowl, but I have trouble imagining the logistics. It takes to wind up handling the catering for a relatively downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. And it's, it's sprawling immense that dominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. >>Well, there's a lot of force for good conversations. Seeing a lot of that going on, Amazon's trying to port eight of us is trying to portray themselves as you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that and I think that's a good angle as cloud goes mainstream. There's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now same kind of thing. As you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby races, a as a semi-pro race car driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. <laugh> either way, sounds like more exciting. Like I better >>Have a replacement ready <laugh> I, in case something goes wrong on the track, highly >>Available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula one is they have these new rigs out. Yeah. Where you can actually race in east sports with other people in pure simulation of the race car. You gotta get the latest and videographic card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. >>Oh, it's great too. And I can see the appeal of these tech companies getting into it because these things are basically rocket shifts. When those cars go, like they're sitting there, we can instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going on in your world. I know you have a lot of great success. We've been following you in the queue for many, many years. Got a great newsletter, check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's the blowback, any blowback late? Has there been uptick? What was, what are some of the things you're hearing from your audience, more Corey, more Corey. And then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's high. I'm emailing an awful lot of people at last week in AWS every week and okay. They must not have heard me it. That is not actually true. People just generally don't respond to email because who responds to email newsletters. That sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do >>That. We should do that. Actually. I think you're people would call in, oh, >>I, I think >>I guarantee we had that right now. People would call in and say, Corey, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised about anything by how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the >>Customer. You know, I always joke with Dave Alane about how John Fort's always at, uh, um, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of goof on that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0, 0 5, or we can't call, we >>Have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And then there you go. Yeah. >>It's and the old joke at HP was if they, if they invented SU sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish. That's what it is. And so the joke was cold. Dead fish is a better name than sushi. So you know is fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their >>Producting. So they're going in different directions. When they named Amazon Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonused on number of words, they can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, session manager is a great one. I love the service ridiculous name. They have a systems manager, parameter store, which is great. They have secrets manager, which does the same thing. It's two words less, but that one costs money in a way that systems manage your parameter store does not. It's fun. >>What's your, what's your favorite combination of acronyms >>Combination >>Of gots. You got EMR, you got EC two, you got S3 SQS. Well, RedShift's not an acronym you >>Gets is one of my personal favorites because it's either elastic block store or elastic bean stock, depending entirely on the context of the conversation, they >>Shook up bean stock or is that still around? Oh, >>They never turn anything off. They're like the anti Google, Google turns things off while they're still building it. Whereas Amazon is like, well, we built this thing in 2005 and everyone hates it, but while we certainly can't change it, now it has three customers on it. John three <laugh>. Okay. Simple BV still haunts our dreams. >>I, I actually got an email on, I saw one of my, uh, servers, all these C twos were being deprecated and I got an email I'm I couldn't figure out. Why can you just like roll it over? Why, why are you telling me? Just like, give me something else. All right. Okay. So let me talk about, uh, the other things I want to ask you, is that like, okay. So as Amazon better in some areas where do they need more work in your opinion? Because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database Snowflake's got out database service. So Redshift, snowflake data breach is out there. So you got this co-op petition. Yes. How's that going? And what do you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with, and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want. And they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multicloud. Cause obviously the other cloud shows are coming up. Amazon hated that word multicloud. Um, a lot of people though saying, you know, it's not a real good marketing word. Like multicloud sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multicloud? >>Multiple single >>Cloudant loves that term. Yeah. >>You know, you're building in multiple single points of failure, do it for the right reasons or don't do it as a default. I believe not doing it is probably the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about my multi-cloud either as the industry leader, let's talk about other clouds, bad direction to go in from a market cap perspective. It doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of forms. Some brilliant, some brain dead. It depends a lot on, but my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing because it solves problems. That's when I shut up and listen. >>Yeah, course. Awesome. Corey, I gotta ask you a question cause I know you we've been, you know, fellow journeyman and the, and the cloud journey going to all the events and then the pandemic hit. We now in the third year, who knows what it's gonna gonna end. Certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations. Community's gonna emerge. You've got a pretty big community growing and it's growing like crazy. What's the weirdest or coolest thing or just big changes you've seen with the pandemic, uh, from your perspective, cuz you've been in the you're in the middle of the whitewater rafting. You've seen the events you circle offline. You saw the online piece, come in, you're commentating, you're calling balls and strikes in the industry. You got a great team developing over there. Duck build group. What's the big aha moment that you saw with the pandemic. Weird, funny, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who can pony up two grand and a week in Las Vegas and get to Las Vegas from wherever they happen to be by moving virtually suddenly it, it embraces the reality that talent is evenly. Distributed. Opportunity is not. And that means that suddenly these things are accessible to a wide swath of audience and potential customer base and the rest that hadn't been invited to the table previously, it's imperative that we not lose that. It's nice to go out and talk to people and have people come up and try and smell my hair from time to time, I smelled delightful. Let me assure you. But it was, but it's also nice to be. >>I have a product for you if you want, you know? Oh, >>Oh excellent. I look forward to it. What is it? Pudding? Why not? <laugh> >>What else have you seen? So when accessibility for talent. Yes. Which by the way is totally home run. What weird things have happened that you've seen? Um, that's >>Uh, it's, it's weird, but it's good that an awful lot of people giving presentation have learned to tighten their message and get to the damn point because most people are not gonna get up from a front row seat in a conference hall, midway through your Aing talk and go somewhere else. But they will change a browser tab and you won't get them back. You've gotta be on point. You've gotta be compelling if it's going to be a virtual discussion. Yeah. >>And you turn off your iMessage too. >>Oh yes. It's always fun in the, in the meetings when you're ho to someone and their colleague is messaging them about, should we tell 'em about this? And I'm sitting there reading it and it's >>This guy is really weird. Like, >>Yes I am and I bring it into the conversation and then everyone's uncomfortable. It goes, wow. Why >>Not? I love when my wife yells at me over I message. When I'm on a business call, like, do you wanna take that about no, I'm good. >>No, no. It's better off. I don't the only entire sure. It's >>Fine. My kids text. Yeah, it's fine. Again, that's another weird thing. And, and then group behavior is weird. Now people are looking at, um, communities differently. Yes. Very much so, because if you're fatigued on content, people are looking for the personal aspect. You're starting to see much more of like yeah. Another virtual event. They gotta get better. One and two who's there. >>Yeah. >>The person >>That's a big part of it too is the human stories are what are being more and more interesting. Don't get up here and tell me about your product and how brilliant you are and how you built it. That's great. If I'm you, or if I wanna work with you or I want to compete with you or I want to put on my engineering hat and build it myself. Cause why would I buy anything? That's more than $8. But instead, tell me about the problem. Tell me about the painful spot that you specialize in. Yeah. Tell me a story there. >>I, I think >>That gets a glimpse in a hook and makes >>More, more, I think you nailed it. Scaling storytelling. Yes. And access to better people because they don't have to be there in person. I just did a thing. I never, we never would've done the queue. We did. Uh, Amazon stepped up in sponsors. Thank you, Amazon for sponsoring international women's day, we did 30 interviews, APAC. We did five regions and I interviewed this, these women in Asia, Pacific eight, PJ, they call for in this world. And they're amazing. I never would've done those interviews cuz I never, would've seen 'em at an event. I never would've been in pan or Singapore, uh, to access them. And now they're in the index, they're in the network. They're collaborating on LinkedIn. So a threads are developing around connections that I've never seen before. Yes. Around the content. >>Absolutely >>Content value plus and >>Effecting. And that is the next big revelation of this industry is going to realize you have different companies. And, and I Amazon's case different service teams all competing with each other, but you have the container group and you have the database group and you have the message cuing group. But customers don't really want to build things from spare parts. They want a solution to a problem. I want to build an app that does Twitter for pets or whatever it is I'm trying to do. I don't wanna basically have to pick and choose and fill my shopping cart with all these different things. I want something that's gonna basically give me what I'm trying to get as close to turnkey as possible. Moving up the stack. That is the future. And just how it gets here is gonna be >>Well we're here at Corey Quinn, the master of the master of content here in the a ecosystem. Of course we we've been following up from the beginning. His great guy, check out his blog, his site, his newsletter screaming podcast. Corey, final question for, uh, what are you here doing? What's on your agenda this week in San Francisco and give a plug for the duck build group. What are you guys doing? I know you're hiring some people what's on the table for the company. What's your focus this week and put a plug in for the group. >>I'm here as a customer and basically getting outta my cage cuz I do live here. It's nice to actually get out and talk to folks who are doing interesting things at the duck bill group. We solved one problem. We fixed the horrifying AWS bill, both from engineering and architecture, advising as well as negotiating AWS contracts because it turns out those things are big and complicated. And of course my side media projects last week in aws.com, we are, it it's more or less a content operation where I in my continual and ongoing love affair with the sound of my own voice. >><laugh> and you're good. It's good content it's on, on point fun, Starky and relevant. So thanks for coming to the cube and sharing with us. Appreciate it. No >>Thank you button. >>You. Okay. This the cube covers here in San Francisco, California, the cube is back going to events. These are the summits, Amazon web services summits. They happen all over the world. We'll be in New York and obviously we're here in San Francisco this week. I'm John fur. Keep, keep it right here. We'll be back with more coverage after this short break. Okay. Welcome back everyone. This's the cubes covers here in San Francisco, California, we're live on the show floor of AWS summit, 2022. I'm John for host of the cube and remember AWS summit in New York city coming up this summer, we'll be there as well. And of course reinvent the end of the year for all the cube coverage on cloud computing and AWS two great guests here from the APN global APN Sege chef Jenko and Jeff Grimes partner lead Jeff and Sege is doing partnerships global APN >>AWS global startup program. Yeah. >>Okay. Say that again. >>AWS. We'll start >>Program. That's the official name. >>I love >>It too long, too long for me. Thanks for coming on. Yeah, >>Of course. >>Appreciate it. Tell us about what's going on with you guys. What's the, how was you guys organized? You guys we're obviously we're in San Francisco bay area, Silicon valley, zillions of startups here, New York. It's got another one we're gonna be at tons of startups. A lot of 'em getting funded, big growth and cloud big growth and data secure hot in all sectors. >>Absolutely. >>So maybe, maybe we could just start with the global startup program. Um, it's essentially a white glove service that we provide to startups that are built on AWS. And the intention there is to help identify use cases that are being built on top of AWS. And for these startups, we want to pro vibe white glove support in co building products together. Right. Um, co-marketing and co-selling essentially, um, you know, the use cases that our customers need solved, um, that either they don't want to build themselves or are perhaps more innovative. Um, so the, a AWS global startup program provides white glove support. Dedicat at headcount for each one of those pillars. Um, and within our program, we've also provided incentives, programs go to market activities like the AWS startup showcase that we've built for these startups. >>Yeah. By the way, AWS startup, AWS startups.com is the URL, check it out. Okay. So partnerships are key. Jeff, what's your role? >>Yeah. So I'm responsible for leading the overall effort for the AWS global startup program. Um, so I've got a team of partner managers that are located throughout the us, uh, managing a few hundred startup ISVs right now. <laugh> >>Yeah, you got a >>Lot. We've got a lot. >>There's a lot. I gotta, I gotta ask a tough question. Okay. I'm I'm a startup founder. I got a team. I just got my series a we're grown. I'm trying to hire people. I'm super busy. What's in it for me. Yeah. What do you guys bring to the table? I love the white glove service, but translate that what's in it for what do I get out of it? What's >>A story. Good question. I focus, I think. Yeah, because we get, we get to see a lot of partners building their businesses on AWS. So, you know, from our perspective, helping these partners focus on what, what do we truly need to build by working backwards from customer feedback, right? How do we effectively go to market? Because we've seen startups do various things, um, through trial and error, um, and also just messaging, right? Because oftentimes partners or rather startups, um, try to boil the ocean with many different use cases. So we really help them, um, sort of laser focus on what are you really good at and how can we bring that to the customer as quickly as possible? >>Yeah. I mean, it's truly about helping that founder accelerate the growth of their company, right. And there's a lot that you can do with AWS, but focus is truly the key word there because they're gonna be able to find their little piece of real estate and absolutely deliver incredible outcomes for our customers. And then they can start their growth curve there. >>What are some of the coolest things you've seen with the APN that you can share publicly? I know you got a lot going on there, a lot of confidentiality. Um, but you know, we're here a lot of great partners on the floor here. I'm glad we're back at events. Uh, a lot of stuff going on digitally with virtual stuff and, and hybrid. What are some of the cool things you guys have seen in the APN that you can point to? >>Yeah, absolutely. I mean, I can point to few, you can take them. So, um, I think what's been fun over the years for me personally, I came from a startup brand sales at an early stage startup and, and I went through the whole thing. So I have a deep appreciation for what these guys are going through. And what's been interesting to see for me is taking some of these early stage guys, watching them progress, go public, get acquired and see that big day mm-hmm <affirmative>, uh, and being able to point to very specific items that we help them to get to that point. Uh, and it's just a really fun journey to watch. >>Yeah. I, and part of the reason why I really, um, love working at the AWS, uh, global startup program is working with passionate founders. Um, I just met with a founder today that it's gonna, he's gonna build a very big business one day, um, and watching them grow through these stages and supporting that growth. Um, I like to think of our program as a catalyst for enterprise is sort of scale. Yeah. Um, and through that we provide visibility, credibility and growth opportunities. >>Yeah. A lot, a lot of partners too. What I found talking to staff founders is when they have that milestone, they work so hard for it. Whether it's a B round C round Republic or get bought. Yeah. Um, then they take a deep breath and they look back at wow, what a journey it's been. So it's kind of emotional for sure. But still it's a grind. Right? You gotta, I mean, when you get funding, it's still day one. You don't stop. It's no celebrate, you got a big round or valuation. You still gotta execute >>And look it's hypercompetitive and it's brutally difficult. And our job is to try to make that a little less difficult and navigate those waters. Right. Where ever everyone's going after similar things. >>Yeah. And I think as a group element too, I observe that startups that I, I meet through the APN has been interesting because they feel part of AWS. Yeah, totally. As a group of community, as a vibe there. Um, I know they're hustling, they're trying to make things happen. But at the same time, Amazon throws a huge halo effect. I mean, that's a huge factor. I mean, you guys are the number one cloud in the business, the growth in every sector is booming. Yeah. And if you're a startup, you don't have that luxury yet. And look at companies like snowflake that built on top of AWS. I mean, people are winning by building on AWS. >>Yeah. And our, our, our program really validates their technology first. So we have, what's all the foundation's technical review that we put all of our startups through before we go to market. So that when enterprise customers are looking at startup technology, they know that it's already been vetted. And, um, to take that a step further and help these partners differentiate, we use programs like the competency programs, the DevOps competencies, the security competency, which continues to help, um, provide sort of a platform for these startups, help them differentiate. And also there's go to market benefits that are associated with that. >>Okay. So let me ask the, the question that's probably on everyone's mind, who's watching, certainly I asked this a lot. There's a lot of companies startups out there who makes the cut, is there a criteria cut? It's not like it's sports team or anything, but like sure. Like there's activate program, which is like, there's hundreds of thousands of startups out there. Not everyone is at the APN. Right? Correct. So ISVs again, that's a whole nother, that's a more mature partner that might have, you know, huge market cap or growth. How, how do you guys focus? How do you guys focus? I mean, you got a good question, you know, thousand flowers blooming all the time. Is there a new way you guys are looking at it? I know there's been some talk about restructure or, or new focus. What's the focus. >>Yeah. It's definitely not an easy task by any means. Um, but you know, I recently took over this role and we're really trying to establish focus areas, right. So obviously a lot of the ISVs that we look after are infrastructure ISVs. That's what we do. Uh, and so we have very specific pods that look after different type of partners. So we've got a security pod, we've got a DevOps pod, we've got core infrastructure, et cetera. And really, we're trying to find these ISVs that can solve, uh, really interesting AWS customer. >>You guys have a deliberate, uh, focus on these pillars. So what infrastructure, >>Security, DevOps, and data and analytics, and then line of business >>Line, business line business, like web >>Marketing, business apps, >>Owner type thing. Exactly. >>Yeah, exactly. >>So solutions there. Yeah. More solutions and the other ones are like hardcore. So infrastructure as well, like storage back up ransomware kind of stuff, or, >>Uh, storage, networking. >>Okay. Yeah. The classic >>Database, et cetera. Right. >>And so there's teams on each pillar. >>Yep. So I think what's, what's fascinating for the startups that we cover is that they've got, they truly have support from a build market sell perspective, right. So you've got someone who's technical to really help them get the technology, figured out someone to help them get the marketing message dialed and spread, and then someone to actually do the co-sell, uh, day to day activities to help them get in front of customers. >>Probably the number one request that we always ask for Amazon is can wish that sock report, oh, download it on the console, which we use all the time. <laugh> exactly. But security's a big deal. I mean, you know, ask the res are evolving, that role of DevOps is taking on dev SecOps. Um, I, I can see a lot of customers having that need for a relationship to move things faster. Do you guys provide like escalation or is that a part of a service or that not part of, uh, uh, >>Yeah, >>So the partner development manager can be an escalation for absolutely. Think of that. 'em as an extension of your business inside of AWS. >>Great. And you guys, how is that partner managers, uh, measure >>On those three pillars? Right. Got it. Are we billing, building valuable use cases? So product development go to market, so go to market activities, think blog, posts, webinars, case studies, so on and so forth. And then co-sell not only are we helping these partners win their current opportunities that they are sourcing, but can we also help them source net new deals? Yeah. Right. That's very, >>I mean, top asked from the partners is get me in front of customers. Right. Um, not an easy task, but that's a huge goal of ours to help them grow their top line. >>Right. Yeah. In fact, we had some interviews here on the cube earlier talking about that dynamic of how enterprise customers are buying. And it's interesting, a lot more POCs. I have one partner here that you guys work with, um, on observability, they got a huge POC with capital one mm-hmm <affirmative> and the enterprises are engaging the star ups and bringing them in. So the combination of open source software enterprises are leaning into that hard and bringing young growing startups in mm-hmm <affirmative>. Yep. So I could see that as a huge service that you guys can bring people in. >>Right. And they're bringing massively differentiated technology to the table. The challenge is they just might not have the brand recognition. The, at the big guys have mm-hmm <affirmative>. And so that's, our job is how do you get that great tech in front of the right situations? >>Okay. So my next question is about the show here, and then we'll talk globally. So here in San Francisco sure. You know, Silicon valley bay area, San Francisco bay area, a lot of startups, a lot of VCs, a lot of action. Mm-hmm <affirmative> so probably a big market for you guys. Yeah. So what's exciting here in SF. And then outside of SF, you guys have a global pro, have you see any trends that are geography based or is it sure areas more mature? There's certain regions that are better. I mean, I just interviewed a company here. That's doing, uh, a AWS edge really well in these cases. It's interesting that these, the partners are filling a lot of holes and gaps in the opportunities with a AWS. So what's exciting here. And then what's the global perspective. >>Yeah, totally. So obviously see a ton of partners from the bay area that we support. Um, but we're seeing a lot of really interesting technology come out of AMEA specifically. Yeah. Uh, and making a lot of noise here in the United States, which is great. Um, and so, you know, we definitely have that global presence and, and starting to see super differentiated technology come out of those regions. >>Yeah. Especially Tel Aviv. Yeah. >>Amy and real quick before you get into surge. It's interesting. The VC market in, in Europe is hot. They've got a lot of unicorns coming in. We've seen a lot of companies coming in. They're kind of rattling their own, you know, cage right now. Hey, look at us. Let's see if they crash, you know, but we don't see that happening. I mean, people have been predicting a crash now in, in the startup ecosystem for least a year. It's not crashing. In fact, funding's up. >>Yeah. The pandemic was hard on a lot of startups for sure. Yeah. Um, but what we've seen is many of these startups, they, as quickly as they can grow, they can also pivot as, as, as well. Um, and so I've actually seen many of our startups grow through the demo because their use cases are helping customers either save money, become more operationally efficient and provide value to leadership teams that need more visibility into their infrastructure during a pandemic. >>It's an interesting point. I talked to Andy jazzy and Adam Celski both say the same thing during the pandemic. Necessity's the mother of all invention. Yep. And startups can move fast. So with that, you guys are there to assist if I'm a startup and I gotta pivot cuz remember iterate and pivot, iterate and pivot. So you get your economics, that's the playbook of the ventures and the models. >>Exactly. How >>Do you guys help me do that? Give me an example of what me through. Pretend me, I'm a start up. Hey, I'm on the cloud. Oh my God. Pandemic. They need video conferencing. Hey cube. Yeah. What do I need? Search? What, what do >>I do? That's a good question. First thing is just listen. Yeah. I think what we have to do is a really good job of listening to the partner. Um, what are their needs? What is their problem statement? Where do they want to go at the end of the day? Um, and oftentimes because we've worked with, so how many successful startups that have come out of our program, we have, um, either through intuition or a playbook determined what is gonna be the best path forward and how do we get these partners to stop focusing on things that will eventually, um, just be a waste of time. Yeah. And, or not provide, or, you know, bring any fruit to the table, which, you know, essentially revenue. >>Well, we love startups here in the cube because one, um, they have good stories, they're oil and cutting edge, always pushing the envelope and they're kind of disrupting someone else. Yeah. And so they, they have an opinion. They don't mind sharing on camera. So love talking to startups. We love working with you guys on our startups. Showcases startups.com. Check out AWS startups.com and she got the showcase. So is, uh, final word. I'll give you guys the last word. What's the bottom line bumper sticker for AP globe. The global APN program summarize the opportunity for startups, what you guys bring to the table and we'll close it out. Totally. We'll start >>With you. Yeah. I think the AWS global startup programs here to help companies truly accelerate their business full stop. Right. And that's what we're here for. Love it. >>It's a good way to, it's a good way to put it. Dato yeah. >>All right. Thanks for coming out. Thanks John. Great to see you love working with you guys. Hey, startups need help. And the growing and huge market opportunities, the shift cloud scale data engineering, security infrastructure, all the markets are exploding in growth because of the digital transformation of realities here, open source and cloud. I'll making it happen here in the cube in San Francisco, California. I'm John furrier, your host. Thanks for >>Watching Cisco, John. >>Hello and welcome back to the Cube's live coverage here in San Francisco, California for AWS summit, 2022. I'm John for host of the cube. Uh, two days of coverage, AWS summit, 2022 in New York city coming up this summer will be there as well. Events are back. The cube is back of course, with the cube virtual cube hybrid, the cube.net. Check it out a lot of content this year more than ever a lot more cloud data cloud native, modern applic is all happening. Got a great guest here. Jeremy Burton, Cub alumni, uh, CEO of observe Inc in the middle of all the cloud scale, big data observability, Jeremy. Great to see you. Thanks. >>Coming on. Always great to come and talk to you on the queue, man. It's been been a few years, so, >>Um, well you, you got your hands. You're in the trenches with great startup, uh, good funding, great board, great people involved in the observability Smith hot area, but also you've been a senior executive president of Dell EMC. Um, 11 years ago you had a vision and you actually had an event called cloud meets big data. Um, yeah. And it's here, you predicted it 11 years ago. Um, look around it's cloud meets big data. >>Yeah. I mean the, the cloud thing I think, you know, was, was probably already a thing, but the big data thing I do claim credit for, for sort of catching that bus early, um, you know, we, we were on the, the, the bus early and, and I think it was only inevitable. Like, you know, if you could bring the economics and the compute of cloud to big data, you, you could find out things you could never possibly imagine. >>So you're close to a lot of companies that we've been covering deeply snowflake, obviously you involved, uh, at the board level, the other found, you know, the people there, uh, cloud, you know, Amazon, you know, what's going on here? Yeah. You're doing a startup as the CEO at the helm, uh, chief of observ, Inc, which is an observability, which is to me in the center of this confluence of data engineering, large scale integrations, um, data as code integrating into applications. I mean, it's a whole nother world developing, like you see with snowflake, it means snowflakes is super cloud as we call it. So a whole nother wave is here. What's your, what's this wave we're on what's how would you describe the wave? >>Well, a couple of things, I mean, people are, I think right in more software than, than ever before are why? Because they've realized that if, if you don't take your business online and offer a service, then you become largely irrelevant. And so you you've got a whole set of new applications. I think, I think more applications now than any point. Um, not, not just ever, but the mid nineties, I always looked at as the golden age of application development. Now, back then people were building for windows. Well, well now they're building for things like AWS is now the platform. Um, so you've got all of that going on. And then at the same time, the, the side effect of these applications is they generate data and lots of data. And the, you know, there's sort of the transactions, you know, what you bought today are something like that. But then there's what we do, which is all the telemetry, all the exhaust fumes. And I think people really are realizing that their differentiation is not so much their application. It's their understanding of the data. Can, can I understand who my best customers are, what I sell today. If people came to my website and didn't buy, then why not? Where did they drop off all of that? They wanna analyze. And, and the answers are all in the data. The question is, can you understand it >>In our last startup showcase, we featured data as code one of the insights that we got out of that, and I wanna get your opinion on our reaction to is, is that data used to be put into a data lake and turns into a data swamp or throw into the data warehouse. And then we'll do some queries, maybe a report once in a while. And so data, once it was done, unless it was real time, even real time was not good anymore after real time. That was the old way. Now you're seeing more and more, uh, effort to say, let's go look at the data, cuz now machine learning is getting better. Not just train once mm-hmm <affirmative> they're iterating. Yeah. This notion of iterating and then pivoting, iterating and pivoting. Yeah, that's a Silicon valley story. That's like how startups work, but now you're seeing data being treated the same way. So now you have another, this data concept that's now yeah. Part of a new way to create more value for the apps. So this whole, this whole new cycle of >>Yeah. >>Data being reused and repurposed and figured out and yeah, >>Yeah. I'm a big fan of, um, years ago. Uh, uh, just an amazing guy, Andy McAfee at the MIT C cell labs I spent time with and he, he had this line, which still sticks to me this day, which is look I'm I'm. He said I'm part of a body, which believes that everything is a matter of data. Like if you have enough data, you can answer any question. And, and this is going back 10 years when he was saying these kind of things and, and certainly, you know, research is on the forefront. But I think, you know, starting to see that mindset of the, the sort of MIT research be mainstream, you know, in enterprises, they they're realizing that. Yeah, it is about the data. You know, if I can better understand my data better than my competitor, then I've got an advantage. And so the question is is, is how, what, what technologies and what skills do I need in my organization to, to allow me to do that. >>So let's talk about observing you the CEO of, okay. Given you've seen the ways before you're in the front lines of observability, which again is in the center of all this action what's going on with the company. Give a quick minute to explain, observe for the folks who don't know what you guys do. What's the company doing? What's the funding status, what's the product status and what's the customer status. Yeah. >>So, um, we realized, you know, a handful of years ago, let's say five years ago that, um, look, the way people are building applications is different. They they're way more functional. They change every day. Uh, but in some respects they're a lot more complicated. They're distributed. They, you know, microservices architectures and when something goes wrong, um, the old way of troubleshooting and solving problems was not gonna fly because you had SA so much change going into production on a daily basis. It was hard to tell like where the problem was. And so we thought, okay, it's about time. Somebody looks at the exhaust fumes from this application and all the telemetry data and helps people troubleshoot and make sense of the problems that they're seeing. So, I mean, that's observability, it's actually a term that goes back to the 1960s. It was a guy called, uh, Rudolph like, like everything in tech, you know, it's, it's a reinvention of something from years gone by. >>Um, there's a guy called, um, Rudy Coleman in 1960s coiner term and, and, and the term was being able to determine the state of a system by looking at its external outputs. And so we've been going on this for, uh, the best part of four years now. Um, it took us three years just to build the product. I think, I think what people don't appreciate these days often is the barrier to entry in a lot of these markets is quite high. You, you need a lot of functionality to have something that's credible with a customer. Um, so yeah, this last year we, we, we did our first year selling, uh, we've got about 40 customers now. Um, we just we've got great investors for the hill ventures. Uh, I mean, Mike SP who was, you know, the, the guy who was the, really, the first guy in it snowflake and the, the initial investor were fortunate enough to, to have Mike and our board. And, um, you know, part of the observed story is closely knit with snowflake all of that time with your data, you know, we, we store in there. >>So I want to get, uh, yeah. Pivot to that. Mike SP snowflake, Jeremy Burton, the cube kind of, kind of same thinking this idea of a super cloud or what snowflake became. Yeah. Snowflake is massively successful on top of AWS. Mm-hmm <affirmative> and now you're seeing startups and companies build on top of snowflake. Yeah. So that's become an entrepreneurial story that we think that to go big in the cloud, you can have a cloud on a cloud, uh, like as Jerry, Jerry Chan and Greylock calls it, castles in the cloud where there are moats in the cloud. So you're close to it. I know you, you're doing some stuff with snowflake. So as a startup, what's your view on building on top of say a snowflake or an AWS, because again, you gotta go where the data is. You need all the data. >>Yeah. So >>What's your take on that? I mean, >>Having enough gray hair now, um, you know, again, in tech, I think if you wanna predict the future, look at the past. And, uh, you know, 20 years ago, 25 years ago, I was at a, a smaller company called Oracle and an Oracle was the database company. And, uh, their, their ambition was to manage all of the world's transactional data. And they built on a platform or a couple of platforms, one, one windows, and the other main one was Solaris. And so at that time, the operating system was the platform. And, and then that was the, you know, ecosystem that you would compete on top of. And then there were companies like SAP that built applications on top of Oracle. So then wind the clock forward 25 years gray hairs. <laugh> the platform, isn't the operating system anymore. The platform is AWS, you know, Google cloud. I gotta probably look around if I say that in. Yeah, >>It's okay. Columbia, but hyperscale. Yeah. CapX built out >>That is the new platform. And then snowflake comes along. Well, their aspiration is to manage all of the, not just human generated data, but machine generated data in the world of cloud. And I think they they've done an amazing job are doing for the, I'd say, say the, the big data world, what Oracle did for the relational data world, you know, way back 25 years ago. And then there are folks like us come along and, and of course my ambition would be, look, if, if we can be as successful as an SAP building on top of snowflake, uh, as, as they were on top of Oracle, then, then we'd probably be quite happy, >>Happy. So you're building on top of snowflake, >>We're building on top of snowflake a hundred percent. And, um, you know, I've had folks say to me, well, aren't you worried about that? Isn't that a risk? It's like, well, that that's a risk. You're >>Still on the board. >>Yeah. I'm still on the board. Yeah. That's a risk I'm prepared to take. I am more on snowing. >>It sounds well, you're in a good spot. Stay on the board, then you'll know what's going on. Okay. No, yeah. Serious one. But the, this is a real dynamic. It is. It's not a one off its >>Well, and I do believe as well that the platform that you see now with AWS, if you look at the revenues of AWS is in order of magnitude, more than Microsoft was 25 years ago with windows mm-hmm <affirmative>. And so I've believe the opportunity for folks like snowflake and, and folks like observe it. It's an order of magnitude more than it was for the Oracle and the SAPs of the old world. >>Yeah. And I think this is really, I think this is something that this next generation of entrepreneurship is the go big scenario is you gotta be on a platform. Yeah. >>It's quite easy >>Or be the platform, but it's hard. There's only like how seats were at that table left >>Well value migrates up over time. So, you know, when the cloud thing got going, there were probably 10, 20, 30, you know, rack space and there's 1,000,001 infrastructure, a service platform as a service. My, my old, uh, um, employee EMC, we had pivotal, you know, pivotal was a platform as a service. Don't hear so much about it these days, but initially there's a lot of players and then it consolidates. And then to, to like extract, uh, a real business, you gotta move up, you gotta add value, you gotta build databases, then you gotta build applications. So >>It's interesting. Moving from the data center of the cloud was a dream for starters within if the provision, the CapEx. Yeah. Now the CapEx is in the cloud. Then you build on, on top of that, you got snowflake. Now you got on top of that. >>The assumption is almost that compute and storage is free. I know it's not quite free. Yeah. It's almost free, but you can, you know, as an application vendor, you think, well, what can I do if I assume compute and storage is free, that's the mindset you've gotta get >>Into. And I think the platform enablement to value. So if I'm an entrepreneur, I'm gonna get a series us multiple of value in what I'm paying. Yeah. Most people don't even blanket their Avis pills unless they're like massively huge. Yeah. Then it's a repatriation question or whatever discount question, but for most startups or any growing company, the Amazon bill should be a small factor. >>Yeah. I mean, a lot of people, um, ask me, uh, like, look you build in on snowflake. Um, you, you know, you, you, you're gonna be, you're gonna be paying their money. How, how, how, how does that work with your business model? If you're paying their money, you know, do, do you have a viable business? And it's like, well, okay. I, we could build a database as well and observe, but then I've got half the development team working on something that will never be as good as snowflake. And so we made the call early on that. No, no, we, we want a eight above the database. Yeah. Right. Snowflake are doing a great job of innovating on the database and, and the same is true of something like Amazon, like, like snowflake could have built their own cloud and their own platform, but they didn't. >>Yeah. And what's interesting is that Dave <inaudible> and I have been pointing this out and he's obviously a more on snowflake. I've been looking at data bricks, um, and the same dynamics happening, the proof is the ecosystem. Yeah. I mean, if you look at Snowflake's ecosystem right now and data bricks it's exploding. Right. I mean, the shows are selling out the floor. Space's book. That's the old days at VMware. Yeah. The old days at AWS. >>Well, and for snowflake and, and any platform from VI, it's a beautiful thing because, you know, we build on snowflake and we pay them money. They don't have to sell to us. Right. And we do a lot of the support. And so the, the economics work out really, really well. If you're a platform provider and you've got a lot of >>Ecosystems. Yeah. And then also you get, you get a, um, a trajectory of, uh, economies of scale with the institutional knowledge of snowflake integrations, right. New product, you're scaling a step function with them. >>Yeah. I mean, we manage 10 petabytes of data right now. Right. When I, when I, when I arrived at EMC in 2010, we had, we had one petabyte customer. And, and so at observe, we've been only selling the product for a year. We have 10 petabytes of data under management. And so been able to rely on a platform that can manage that is inve >>You know, well, Jeremy great conversation. Thanks for sharing your insights on the industry. Uh, we got a couple minutes left, um, put a plug in for observe. What do you guys know? You got some good funding, great partners. I don't know if you can talk about your, your, your POC customers, but you got a lot of high ends folks that are working with you. You getting in traction. >>Yeah. Yeah. Scales >>Around the corner. Sounds like, are you, is that where you are scale? >>We've got a big that that's when coming up in two or three weeks, we've got, we've got new funding, um, which is always great. Um, the product is, uh, really, really close. I think, as a startup, you always strive for market fit, you know, which is at which point can you just start hiring salespeople? And the revenue keeps going. We're getting pretty close to that right now. Um, we've got about 40 SaaS companies that run on the platform. They're almost all AWS Kubernetes, uh, which is our sweet spot to begin with, but we're starting to get some really interesting, um, enterprise type customers. We're, we're, you know, F five networks we're POC in right now with capital one, we got some interest in news around capital one coming up. I, I can't share too much, but it's gonna be exciting. And, and like I said, so hill continue to, to, >>I think capital one's a big snowflake customer as well. Right. >>They were early in one of the things that attracted me to capital one was they were very, very good with snowflake early on. And, and they put snowflake in a position in the bank where they thought that snowflake could be successful. And, and today that, that is one of Snowflake's biggest accounts, >>Capital, one, very innovative cloud, obviously Atos customer, and very innovative, certainly in the CISO and CIO, um, on another point on where you're at. So you're, Prescale meaning you're about to scale, >>Right? >>So you got POCs, what's that trajectory look like? Can you see around the corner? What's, what's going on? What's on, around the corner. That you're, that you're gonna hit this straight and narrow and, and gas it fast. >>Yeah. I mean, the, the, the, the key thing for us is we gotta get the product. Right. Um, the nice thing about having a guy like Mike Pfizer on the board is he doesn't obsess about revenue at this stage. His questions that the board are always about, like is the product, right? Is the product right? Is the product right? Have you got the product right? And cuz we know when the product's right, we can then scale the sales team and, and the revenue will take care of itself. Yeah. So right now all the attention is on the product. Um, the, this year, the exciting thing is we we're, we're adding all the tracing visualizations. So people will be able to the kind of things that by in the day you could do with the new relics and AppDynamics, the last generation of, of APM tools, you're gonna be able to do that within observe. And we've already got the logs and the metrics capability in there. So for us this year is a big one, cuz we sort of complete the trifecta, you know, the, the >>Logs, what's the secret sauce observe. What if you had the, put it into a, a, a sentence what's the secret sauce? >>I, I, I think, you know, an amazing founding engineering team, uh, number one, I mean, at the end of the day, you have to build an amazing product and you have to solve a problem in a different way. And we've got great long term investors and, and the biggest thing our investors give is it actually, it's not just money. It gives us time to get the product, right. Because if we get the product right, then we can get the growth. >>Got it. Final question. While I got you here, you've been on the enterprise business for a long time. What's the buyer landscape out there. You got people doing POCs on capital one scale. So we know that goes on. What's the appetite at the buyer side for startups and what are their requirements that you're seeing? Uh, obviously we're seeing people go in and dip into the startup pool because new ways to refactor their, this restructure. So, so a lot of happening in cloud, what's the criteria. How are enterprises engaging in with startups? >>Yeah. I mean, enterprises, they know they've gotta spend money transforming the business. I mean, this was, I almost feel like my old Dell or EMC self there, but, um, what, what we were saying five years ago is happening. Um, everybody needs to figure out a way to take their business to this digital world. Everybody has to do it. So the nice thing from a startup standpoint is they know at times they need to risk or, or take a bet on new technology in order to, to help them do that. So I think you've got buyers that a have money, uh, B it prepared to take risks and it's, it's a race against time to you'll get their, their offerings in this, a new digital footprint. >>Final, final question. What's the state of AWS. Where do you see them going next? Obviously they're continuing to be successful. How does cloud 3.0, or they always say it's day one, but it's more like day 10, but what's next for Aw. Where do they go from here? Obviously they're doing well. They're getting bigger and bigger. Yeah, >>Better. It's an amazing story. I mean, you know, we're, we're on AWS as well. And so I, I think if they keep nurturing the builders and the ecosystem, then that is their superpower. They, they have an early leads. And if you look at where, you know, maybe the likes of Microsoft lost the plot in the, in the late nineties, it was, they stopped, uh, really caring about developers in the folks who were building on top of their ecosystem. In fact, they started buying up their ecosystem and competing with people in their ecosystem. And I see with AWS, they, they have an amazing headstart and if they did more, you know, if they do more than that, that's, what's gonna keep this juggernaut rolling for many years to come. >>Yeah. They got the Silicon and got the stack. They're developing Jeremy Burton inside the cube, great resource for commentary, but also founding with the CEO of a company called observing in the middle of all the action on the board of snowflake as well. Um, great startup. Thanks for coming on the cube. Always a pleasure. Okay. Live from San Francisco. It's to cube. I'm John for your host. Stay with us more coverage from San Francisco, California after the short break. >>Hello. Welcome back to the cubes coverage here live in San Francisco, California. I'm John furrier, host of the cubes cube coverage of AWS summit 2022 here in San Francisco. We're all the developers are the bay air at Silicon valley. And of course, AWS summit in New York city is coming up in the summer. We'll be there as well. SF and NYC cube coverage. Look for us. Of course, reinforcing Boston and re Mars with the whole robotics, AI. They all coming together. Lots of coverage stay with us today. We've got a great guest from Bel VC. John founding partner, entrepreneurial venture is a venture firm. Your next act, welcome to the cube. Good to see you. >>Good to see you, man. I feel like it's been forever since we've been able to do something in person. Well, >>I'm glad you're here because we run into each other all the time. We've known each other for over decade. Um, >>It's been at least 10 years, >>At least 10 years more. And we don't wanna actually go back as bring back the old school web 1.0 days. But anyway, we're in web three now. So we'll get to that in a second. We, >>We are, it's a little bit of a throwback to the path though, in my opinion, >>It's all the same. It's all distributed computing and software. We ran each other in cube con. You're investing in a lot of tech startup founders. Okay. This next level, next gen entrepreneurs have a new makeup and it's software. It's hardcore tech in some cases, not hardcore tech, but using software to take an old something old and make it better new, faster. So tell us about Bel what's the firm. I know you're the founder, uh, which is cool. What's going on. Explain >>What you, I mean, you remember I'm a recovering entrepreneur, right? So of course I, I, >>No, you're never recovering. You're always entrepreneur >>Always, but we are also always recovering. So I, um, started my first company when I was 24. If you remember, before there was Facebook and friends, there was instant messaging. People were using that product at work every day, they were creating a security vulnerability between their network and the outside world. So I plugged that hole and built an instant messaging firewall. It was my first company. The company was called IM logic and we were required by Symantec. Uh, then spent 12 years investing in the next generation of software companies, uh, early investor in open source companies and cloud companies and spent a really wonderful years, uh, at a firm called NEA. So I, I feel like my whole life I've been either starting enterprise software companies or helping founders start enterprise software companies. And I'll tell you, there's never been a better time than right now to start an enterprise software company. >>So, uh, the passion for starting a new firm was really a recognition that founders today that are starting an enterprise software company, they, they tend to be, as you said, a more technical founder, right? Usually it's a software engineer or a builder mm-hmm <affirmative>, uh, they are building that are serving a slightly different market than what we've traditionally seen in enterprise software. Right? I think traditionally we've seen it buyers or CIOs that have agendas and strategies, which, you know, purchase software that is traditionally bought and sold tops down. But you know, today I think the most successful enterprise software companies are the ones that are built more bottoms up and have more technical early adopters. And generally speaking, they're free to use. They're free to try. They're very commonly community source or open source companies where you have a large technical community that's supporting them. So there's a, there's kind of a new normal now I think in great enterprise software. And it starts with great technical founders with great products and great bottoms of motions. And I think there's no better place to, uh, service those people than in the cloud and uh, in, in your community. >>Well, first of all, congratulations, and by the way, you got a great pedigree and great background. You're super smart admire of your work and your, and, and your founding, but let's face it. Enterprise is hot because digital transformation is, is all companies there's no, I mean, consumer is enterprise now. Everything is what was once a niche, not, I won't say niche category, but you know, not for the faint of heart, you know, investors, >>You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. But remember, like right now, there's also a giant tech in VC conference in Miami <laugh> and it's covering cryptocurrencies and FCS and web three. So I think beauty is definitely in the eye of the beholder <laugh> but no, I, I will tell you, well, >>MFTs is one big enterprise, cuz you gotta have imutability you got performance issues. You have, I IOPS issues. >>Well, and, and I think all of us here that are of may, maybe students of his stream have been involved in open source in the cloud would say that we're, you know, much of what we're doing is, uh, the predecessors of the web web three movement. And many of us I think are contributors to the web three >>Movement. The hype is definitely web >>Three. Yeah. But, >>But you know, >>For sure. Yeah, no, but now you're taking us further east to Miami. So, uh, you know, look, I think, I, I think, um, what is unquestioned with the case and maybe it's, it's more obvious the more time you spend in this world is this is the fastest growing part of enterprise software. And if you include cloud infrastructure and cloud infrastructure spend, you know, it is by many measures over, uh, $500 billion in growing, you know, 20 to 30 a year. So it it's a, it's a just incredibly fast >>Let's getting, let's get into some of the cultural and the, the shifts that are happening, cuz again, you, you have the luxury of being in enterprise when it was hard, it's getting easier and more cooler. I get it and more relevant <laugh> but there's also the hype of like the web three, for instance, but you know, for, uh, um, um, the CEO snowflake, okay. Has wrote a book and Dave Valenti and I were talking about it and uh, Frank Lutman has says, there's no playbooks. We always ask the CEOs, what's your playbook. And he's like, there's no playbook, situational awareness, always Trump's playbooks. So in the enterprise playbook, oh, hire a direct sales force and sass kind of crushed that now SAS is being redefined, right. So what is SAS? Is snowflake a SAS or is that a platform? So again, new unit economics are emerging, whole new situation, you got web three. So to me there's a cultural shift, the young entrepreneurs, the, uh, user experience, they look at Facebook and say, ah, you know, and they own all my data. And you know, we know that that cliche, um, they, you know, the product. So as this next gen, the gen Z and the millennials come in and our customers and the founders, they're looking at things a little bit differently and the tech better. >>Yeah. I mean, I mean, I think we can, we can see a lot of commonalities across all six of startups and the overall adoption of technology. Uh, and, and I would tell you, this is all one big giant revolution. I call it the user driven revolution. Right. It's the rise of the user. Yeah. And you might say product like growth is currently the hottest trend in enterprise software. It's actually user like growth, right. They're one in the same. So sometimes people think the product, uh, is what is driving. >>You just pull the product >>Through. Exactly, exactly. And so that's that I, that I think is really this revolution that you see, and, and it does extend into things like cryptocurrencies and web three and, you know, sort of like the control that is taken back by the user. Um, but you know, many would say that, that the origins of this movement may be started with open source where users were contributors, you know, contributors were users and looking back decades and seeing how it, how it fast forward to today. I think that's really the trend that we're all writing and it's enabling these end users. And these end users in our world are developers, data engineers, cybersecurity practitioners, right. They're really the users. And they're really the, the offic and the most, you know, kind of valued people in >>This. I wanna come back to the data engineers in a second, but I wanna make a comment and get your reaction to, I have a, I'm a gen Xer technically. So for not a boomer, but I have some boomer friends who are a little bit older than me who have, you know, experienced the sixties. And I've, I've been saying on the cube for probably about eight years now that we are gonna hit a digital hippie Revolut, meaning a rebellion against in the sixties was rebellion against the fifties and the man and, you know, summer of love. That was a cultural differentiation from the other one of group, the predecessors. So we're kind of having that digital moment now where it's like, Hey boomers, Hey people, we're not gonna do that anymore. We hate how you organize shit. >>Right. But isn't this just technology. I mean, isn't it, isn't it like there used to be the old adage, like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would get fired if you bought IBM. And I mean, it's just like the, the, I think, I think >>During the mainframe days, those renegades were breaking into Stanford, starting the home brew club. So what I'm trying to get at is that, do you see the young cultural revolution also, culturally, just, this is my identity NFTs to me speak volumes about my, I wanna associate with NFTs, not single sign on like, well, >>Absolutely. And, and I think like, I think you're hitting on something, which is like this convergence of, of, you know, societal trends with technology trends and how that manifests in our world is yes. I think like there is unquestionably almost a religion around the way in which a product is built. Right. And we can use open source. One example of that religion. Some people say, look, I'll just never try a product in the cloud if it's not open source. Yeah. I think cloud, native's another example of that, right? It's either it's, you know, it either is cloud native or it's not. And I think a lot of people will look at a product and say, look, you know, you were not designed in the cloud era. Therefore I just won't try you. And sometimes, um, like it or not, it's a religious decision, right? It's, it's something that people just believe to be true almost without, uh, necessarily. I mean, >>The data drives all decision making. Let me ask you this next question. As a VC. Now you look at pitch, well, you've been a VC for many years, but you also have the founder entrepreneurial mindset, but you can empathize with the founders. You know, hustle is a big part of the, that first founder check, right? You gotta convince someone to part with their ch their money and the first money in which you do a lot of is about believing in the first. So faking it till you make it is hard. Now you, the data's there, you either have it cloud native, you either have the adaption or traction. So honesty is a big part of that pitch. You can't fake it. Oh, >>AB absolutely. You know, there used to be this concept of like the persona of an entrepreneur, right. And the persona of the entrepreneur would be, you know, somebody who was a great salesperson or somebody who tell a great story. And I still think that that's important, right. It still is a human need for people to believe in narratives and stories. Yeah. But having said that you're right. The proof is in the pudding, right. At some point you click download and you try the product and it does what it says it's gonna, it's gonna do, or it doesn't, or it either stands up to the load test or it doesn't. And so I, I feel like in this new economy, that're, we live in really, it's a shift from maybe the storytellers and the creators to, to the builders, right. The people that know how to build great product. And in some ways the people that can build great product yeah. Stand out from the crowd. And they're the ones that can build communities around their products. And, you know, in some ways can, um, you know, kind of own more of the narrative because their product begin for exactly >>The volume you back to the user led growth. >>Exactly. And it's the religion of, I just love your product. Right. And I, I, I, um, Doug song is the founder of du security used to say, Hey, like, you know, the, the really like in today's world of like consumption based software, like the user is only gonna give you 90 seconds to figure out whether or not you're a company that's easy to do business with for right. And so you can say, and do all the things that you want about how easy you are to work with. But if the product isn't easy to install, if it's not easy to try, if it's not, if, if the it's gotta speak to the, >>Exactly. Speak to the user. But let me ask a question now that for the people watching, who are maybe entrepreneurial entre entrepreneurs, um, masterclass here is in session. So I have to ask you, do you prefer, um, an entrepreneur to come in and say, look at John. Here's where I'm at. Okay. First of all, storytelling's fine. Whether you're an extrovert or introvert, have your style, sell the story in a way that's authentic, but do you, what do you prefer to say? Here's where I'm at? Look, I have an idea. Here's my traction. I think here's my MVP prototype. I need help. Or do you wanna just see more stats? What's the, what's the preferred way that you like to see entrepreneurs come in and engage? >>There's tons of different styles, man. I think the single most important thing that every founder should know is that we, we don't invest in what things are today. We invest in what we think will become, right. And I think that's why we all get up in the morning and try to build something different, right? It's that we see the world a different way. We want it to be a different way, and we wanna work every single moment of the day to try to make that vision a reality. So I think the more that you can show people where you want to be, the more likely somebody is gonna to align with your vision and, and want to invest in you and wanna be along for the ride. So I, I wholeheartedly believe in showing off what you got today, because eventually we all get down to like, where are we and what are we gonna do together? But, um, no, I, you gotta show the path. I think the single most important thing for any founder and VC relationship is that they have the same vision. Uh, if you have the same vision, you can, you can get through bumps in the road, you can get through short term spills. You can all sorts of things in the middle of the journey can happen. Yeah. But it doesn't matter as much if you share the same long term vision, >>Don't flake out and, and be fashionable with the, the latest trends because it's over before you even get there. >>Exactly. I think many people that, that do what we do for a living will say, you know, ultimately the future is relatively easy to predict, but it's the timing that's impossible to predict. So you, you know, you sort of have to balance the, you know, we, we know that the world is going this way and therefore we're gonna invest a lot of money to try to make this a reality. Uh, but sometimes it happens ins six months. Sometimes it takes six years. Sometimes it takes 16 years. Uh, >>What's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at right now with Tebel partners, Tebel dot your site. What's the big wave. What's your big >>Wave. There there's three big trends that we invest in. And then the, the only things we do day in day out one is the explosion at open source software. So I think many people think that all software is unquestionably moving to an open source model in some form or another yeah. Tons of reasons to debate whether or not that is gonna happen an alwa timeline happening forever, but it is, it is accelerating faster than we've ever seen. So I, I think it's its one big mass of wave that we continue to ride. Um, second is the rise of data engineering. Uh, I think data engineering is in and of itself now a category of software. It's not just that we store data. It's now we move data and we develop applications on data. And, uh, I think data is in and of itself as big of a market as any of the other markets that we invest in. Uh, and finally it's the gift that keeps on giving. I've spent my entire career in it. We still feel that security is a market that is underinvested. It is, it continues to be the place where people need to continue to invest and spend more money. Yeah. Uh, and those are the three major trends that we run >>And security, you think we all need a do over, right? I mean, do we need a do over in security or is what's the core problem? I, >>I, I keep using this word underinvested because I think it's the right way to think about the problem. I think if you, I think people generally speaking, look at cyber security as an add-on. Yeah. But if you think about it, the whole like economy is moving online. And so in, in some ways like security is core to protecting the digital economy. And so it's, it shouldn't be an afterthought, right? It should be core to what everyone is doing. And that's why I think relative to the trillions of dollars that are at stake, uh, I believe the market size for cybersecurity is around 150 billion and it still is a fraction of what >>We're, what we're and even boom is booming now. So you get the convergence of national security, geopolitics, internet digital >>That's right. You mean arguably, right. Arguably again, it's the area of the world that people should be spending more time and more money given what to stake. >>I love your thesis. I gotta, I gotta say you gotta love your firm. Love who you're doing. We're big supporters of your mission. Congrat is on your entrepreneurial venture. And uh, we'll be, we'll be talking and maybe see a Cuban. Uh, >>Absolutely >>Not. Certainly EU maybe even north America's in Detroit this year. >>Huge fan of what you guys are doing here. Thank you so much for helping me on the show. >>Des bell VC Johnson here on the cube. Check him out. Founder for founders here on the cube, more coverage from San Francisco, California, after the short break, stay with us. Hey everyone. Welcome to the cue here. Live in San Francisco, California for AWS summit, 2022 we're live we're back with events. Also we're virtual. We got hybrid all kinds of events. This year, of course, 80% summit in New York city is happening this summer. We'll be there with the cube as well. I'm John. Again, John host of the cube. Got a great guest here. Justin Colby, owner and CEO of innovative solutions they booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, off camera about some of the work you're doing. You're the owner of and CEO. Yeah. Of innovative. Yeah. So tell us the story. What do you guys do? What's the elevator pitch. Yeah. >><laugh> so the elevator pitch is we are, uh, a hundred percent focused on small to midsize businesses that are moving to the cloud or have already moved to the cloud and really trying to understand how to best control, cost, security, compliance, all the good stuff, uh, that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is. But now we have offices down in Austin, Texas up in Toronto, uh, Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago. And it's been a great ride. >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by AWS. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demands coming from cloud migrations and application modernization and obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? Yeah. >>It's a great question. Every CEO I talk to, that's a small to mid-size business. I'll try and understand how to leverage technology better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech is really at the, at the forefront and the center of that. So most customers are coming to us and they're like, listen, we gotta move to the out or we move some things to the cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then, uh, progressively working through a modernization strategy is always the better approach. And so we spend a lot of time with small to midsize businesses who don't have the technology talent on staff to be able to do >>That. Yeah. They want to get set up. But the, the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off happening around everywhere. It is. And it's not, it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more IOT devices. What's that like right now from a challenge and problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem you guys solve >>The SMB space. The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and are hardened solutions. And so, um, what we try to do with technology staff that has additional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether that's, we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I talk to, yeah, they're like, listen, the end of the day, I'm gonna be spending money in one place or another, whether that's OnPrem or in the cloud. I just want to know that I'm doing that in a way that helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is, is no. No. Good. >>How about factoring in the, the agility and speed equation? Does that come up a lot? It >>Does. I think, um, I think there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time. Yeah. In the cloud, if you start the, on your journey in one way, and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's a, gives you a much higher density for making decisions and failing >>Forward. Well actually shutting down the abandoning, the projects that early and not worrying about it, you got it. I mean, most people don't abandon stuff cuz they're like, oh, I own it. >>Exactly. >>And they get, they get used to it. Like, and then they wait too long. >>That's exactly. Yeah. >>Frog and boiling water as we used to say so, oh, it's a great analogy. So I mean this, this is a dynamic that's interesting. I wanna get more thoughts on it because like I'm a, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you guys come in. I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talk to at reinvent, that's a customer. Well, how many announcements did Andy jazzy announcer Adam, you know, five, a thousand announcement or whatever they did with huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just product. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are >>The values. >>Our mission is, is very simple. We want to help every small to mid-size business, leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we go to market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a tech company in the pro of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your it department to make all those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our managed services. Meaning know that we have their back and we're the safety net. So when a customer is saying, all right, I'm gonna spend a couple thousand dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going on loan. Who's there to help protect that. Number two, if you have a security posture and let's just say you're high profile and you're gonna potentially be more vulnerable to security attack. If you have a partner that's offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own, it would cost 'em a fortune. If >>It's training alone would be insane. A risk factor not mean the cost. Yes, absolutely. Opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. Yeah. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 2018, when, uh, when we made the decision to go all on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious decision. It wasn't requirement isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front desk >>And she could be running the Kubernetes clusters. I >>Love it. It's amazing. So I'll tell you what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get the right >>People involved. And that's a cultural factor that you guys have. So, so again, this is back to my whole point about SMBs and BIS is in general, small and large. It staffs are turning over the gen Z and millennials are in the workforce. They were provisioning top of rack switches. Right. First of all. And so if you're a business, there's also the, I call the build out, um, uh, return factor, ROI piece. At what point in time as an owner or SMB, do I get the why? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cyber security issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one in the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are >>Like critical issues. This >>Is just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about this, that's, >>That's what, at least a million in bloating, if not three or more Just to get that going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side now. Yeah. No. And nevermind AI and ML. That's >>Right. That's right. So to try to go it alone, to me, it's hard. It's incredibly difficult. And the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll do all that exactly. In the it department. >>Exactly. >>Like, can we just call up, uh, you know, our old vendor that's >>Right. <laugh> right. Our old vendor. I like >>It, >>But that's so true. I mean, when I think about how, if I were a business owner starting a business today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around that is, is very important. And it's something that we tell, talk about every, with every one of our small to mid-size >>Businesses. So just, I wanna get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative yeah. Award winning guys doing great. Uh, great bet on a good call. Yeah. Things are good. Tell your story. What's your journey? >>It's real simple. I was, uh, I was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportunity with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduce other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. And I came in, I did an internship for six months and I loved it. I learned more in those six months that I probably did in my first couple of years at, uh, at RT long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, sales process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2010 and I was like, Hey, on the value of this business and who knows where you guys are gonna be another five years, what do you think about making me an owner? And they were like, listen, you got long ways before you're gonna be an owner, but if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that were gonna also buy into the business with me. >>And they were the owners, no outside capital, none >>Zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons, they all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like if we're owners, we're gonna have to like cover that stuff. <laugh> so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015, and, uh, we made the decision that I was gonna buy the three partners out, um, go through an early now process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the business, cuz they cared very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be? We had built this company to this point. Yeah. And, uh, and by 2018 we knew that pivoting going all in on the cloud was important for us and we haven't looked back. >>And at that time the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly. And those kinds of big enterprises, the GA I don't wanna say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to mid-size business, to migrate completely to the cloud as, as infrastructure was considered. That just didn't happen as often. Um, what we were seeing where a lot of our small to mid-size as customers, they wanted to leverage cloud-based backup or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration, the Microsoft suite to the cloud. And a lot of 'em dipped their toe in the water. But by 2017 we knew infrastructure was around the corner. Yeah. And so, uh, we only had two customers on AWS at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is it the app modernization? Is it data? What's the hot product and then put a plug in for the company. Awesome. >>So, uh, there's no question. Every customer is looking to migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. So any SMB that's thinking about migrating to the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customers not to be cash strap and gives them an opportunity to move forward in a controlled, contained way so that they can modernize. >>So like insurance, basically for them not insurance class in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers and being empathetic to where they are in their journey. >>And that's the cloud upside is all about doubling down on the variable wind. That's right. Seeing the value and Ling down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate it. >>Thank you very much for having me. >>Okay. This is the cube coverage here live in San Francisco, California for AWS summit, 2022. I'm John for your host. Thanks for watching. We're back with more great coverage for two days after this short break, >>Live on the floor and see San Francisco for a AWS summit. I'm John ferry, host of the cube here for the next two days, getting all the action we're back in person. We're at a AWS reinvent a few months ago. Now we're back. Events are coming back and we're happy to be here with the cube. Bring all the action. Also virtual. We have a hybrid cube. Check out the cube.net, Silicon angle.com for all the coverage. After the event. We've got a great guest ticking off here. Matthew Park, director of solutions, architecture with innovation solutions. The booth is right here. Matthew, welcome to the cube. >>Thank you very much. I'm glad to be >>Here. So we're back in person. You're from Tennessee. We were chatting before you came on camera. Um, it's great to have to be back through events. >>It's amazing. This is the first, uh, summit I've been to and what two, three years. >>It's awesome. We'll be at the UHS summit in New York as well. A lot of developers and a big story this year is as developers look at cloud going distributed computing, you got on premises, you got public cloud, you got the edge. Essentially the cloud operations is running everything dev sec ops, everyone kind of sees that you got containers, you got Kubernetes, you got cloud native. So the game is pretty much laid out mm-hmm <affirmative> and the edge is with the actions you guys are number one, premier partner at SMB for edge. >>That's right. >>Tell us about what you guys doing at innovative and, uh, what you do. >>That's right. Uh, so I'm the director of solutions architecture. Uh, me and my team are responsible for building out the solutions that are around, especially the edge public cloud for us edge is anything outside of an AWS availability zone. Uh, we are deploying that in countries that don't have AWS infrastructure in region. They don't have it. Uh, give an example, uh, example would be Panama. We have a customer there that, uh, needs to deploy some financial tech and compute is legally required to be in Panama, but they love AWS and they want to deploy AWS services in region. Uh, so they've taken E EKS anywhere. We've put storage gateway and, uh, snowball, uh, in region inside the country and they're running their FinTech on top of AWS services inside Panama. >>You know, it's interesting, Matthew is that we've been covering a, since 2013 with the cube about their events. And we watched the progression and jazzy was, uh, was in charge and became the CEO. Now Adam's in charge, but the edge has always been that thing they've been trying to avoid. I don't wanna say trying to avoid, of course, Amazon would listen to the customers. They work backwards from the customer. We all know that. Uh, but the real issue was they were they're bread and butters EC two and S three. And then now they got tons of services and the cloud is obviously successful and seeing that, but the edge brings up a whole nother level. >>It does computing. It >>Does. That's not centralized in the public cloud now they got regions. So what is the issue at the edge what's driving the behavior. Outpost came out as a reaction to competitive threats and also customer momentum around OT, uh, operational technologies. And it merging. We see that the data at the edge, you got 5g having. So it's pretty obvious, but there's a slow transition. What was the driver for the edge? What's the driver now for edge action for AWS >>Data is the driver for the edge. Data has gravity, right? And it's pulling compute back to where the customer's generating that data and that's happening over and over again. You said it best outpost was a reaction to a competitive situation where today we have over 15 AWS edge services and those are all reactions to things that customers need inside their data centers on location or in the field like with media companies. >>Outpost is interesting. We always used to riff on the cube cause it's basically Amazon and a box pushed in the data center, running native, all the stuff, but now cloud native operations are kind of becoming standard. You're starting to see some standard Deepak syncs. Group's doing some amazing work with open source Rauls team on the AI side, obviously, uh, you got SW, he was giving the keynote tomorrow. You got the big AI machine learning big part of that edge. Now you can say, okay, outpost, is it relevant today? In other words, did outpost do its job? Cause EKS anywhere seems to be getting a lot of momentum. You see local zones, the regions are kicking ass for Amazon. This edge piece is evolving. What's your take on EKS anywhere versus say outpost? >>Yeah, I think outpost did its job. It made customers that were looking at outpost really consider, do I wanna invest in this hardware? Do I, do I wanna have, um, this outpost in my data center, do I want to manage this over the long term? A lot of those customers just transitioned to the public cloud. They went into AWS proper. Some of those customers stayed on prem because they did have use cases that were, uh, not a good fit for outposts. They weren't a good fit. Uh, in the customer's mind for the public AWS cloud inside an availability zone. Now what's happening is as AWS is pushing these services out and saying, we're gonna meet you where you are with 5g. We're gonna meet you where you are with wavelength. We're gonna meet you where you are with EKS anywhere. Uh, I think it has really reduced the amount of times that we have conversations about outposts and it's really increased. We can deploy fast. We don't have to spin up outpost hardware. We can go deploy EKS anywhere or in your VMware environment. And it's increasing the speed of adoption >>For sure. Right? So you guys are making a lot of good business decisions around managed cloud service. That's right. Innovative as that you get the cloud advisory, the classic professional services for the specific edge piece and, and doing that outside of the availability zones and regions for AWS, um, customers in, in these new areas that you're helping out are, they want cloud, like they want to have modernization a modern applications. Obviously they got data machine learning and AI, all part of that. What's the main product or, or, or gap that you're filling for AWS, uh, outside of their availability zones or their regions that you guys are delivering. What's the key is it. They don't have a footprint. Is it that it's not big enough for them? What's the real gap. What's why, why are you so successful? >>So what customers want when they look towards the cloud is they want to focus on, what's making them money as a business. They want on their applications. They want to focus on their customers. So they look towards AWS cloud and say, AWS, you take the infrastructure. You take, uh, some of the higher layers and we'll focus on our revenue generating business, but there's a gap there between infrastructure and revenue generating business that innovative slides into, uh, we help manage the AWS environment. Uh, we help build out these things in local data centers for 32 plus year old company. We have traditional on-premises people that know about deploying hardware that know about deploying VMware to host EKS anywhere. But we also have most of our company totally focused on the AWS cloud. So we're filling that gap in helping of these AWS services, manage them over the long term. So our customers can go to just primarily and totally focusing on their revenue generating business. So >>Basically you guys are basically building AWS edges, >>Correct? >>For correct companies, correct? Mainly because the, the needs are there, you got data, you got certain products, whether it's, you know, low latency type requirements, right. And then they still work with the regions, right. It's all tied together, right. Is that how it works? Right. >>And, and our customers, even the ones in the edge, they also want us to build out the AWS environment inside the availability zone, because we're always gonna have a failback scenario. If we're gonna deploy FinTech in the Caribbean, we talk about hurricanes and we're gonna talk about failing back into the AWS availability zones. So innovative is filling that gap across the board, whether it be inside the AWS cloud or on the AWS edge. >>All right. So I gotta ask you on the, since you're at the edge in these areas, I won't say underserved, but developing areas where you now have data and you have applications that are tapping into that, that required. It makes total sense. We're seeing that across the board. So it's not like it's, it's an outlier it's actually growing. Yeah. There's also the crypto angle. You got the blockchain. Are you seeing any traction at the edge with blockchain? Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech. And in, in the islands there a lot of, lot of, lot of web three happening. What's your, what's your view on the web three world right now, relative >>To we, we have some customers actually deploying crypto, especially, um, especially in the Caribbean. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers that are deploying crypto. A lot of, uh, countries are choosing crypto to underlie parts of their central banks. Yeah. Um, so it's, it's up and coming a, uh, I, I have some, you know, personal views that, that crypto is still searching for a use case. Yeah. And, uh, I think it's searching a lot and, and we're there to help customers search for that use case. Uh, but, but crypto, as a, as a, uh, technology, um, lives really well on the AWS edge. Yeah. Uh, and, and we're having more and more people talk to us about that. Yeah. And ask for assistance in the infrastructure, because they're developing new cryptocurrencies every day. Yeah. It's not like they're deploying Ethereum or anything specific. They're actually developing new currencies and, and putting them out there on it's >>Interesting. I mean, first of all, we've been doing crypto for many, many years. We have our own little, um, you know, projects going on. But if you look talk to all the crypto people that say, look, we do a smart concept. We use the blockchain. It's kind of over a lot of overhead and it's not really their technical already, but it's a cultural shift, but there's underserved use cases around use of money, but they're all using the blockchain, just for this like smart contracts for instance, or certain transactions. And they go into Amazon for the database. Yeah. <laugh> they all don't tell anyone we're using a centralized service, but what happened to decentralized. >>Yeah. And that's, and that's the conversation performance issue. Yeah. And, and it's a cost issue. Yeah. And it's a development issue. Um, so I think more and more as, as some of these, uh, currencies maybe come up, some of the smart contracts get into, uh, they find their use cases. I think we'll start talking about how does that really live on, on AWS and, and what does it look like to build decentralized applications, but with AWS hardware and services. >>Right. So take me through, uh, a use case of a customer, um, Matthew around the edge. Okay. So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. I want to modernize my business. And I got my developers that are totally peaked up on cloud. Um, but we've identified that it's just a lot of overhead latency issues. I need to have a local edge and serve my ad. And I also want all the benefit of the cloud. So I want the modernization and I wanna migrate to the cloud for all those cloud benefits and the goodness of the cloud. What's the answer. Yeah. >>Uh, big thing is, uh, industrial manufacturing, right? That's, that's one of the best use cases, uh, inside industrial manufacturing, we can pull in many of the AWS edge services we can bring in, uh, private 5g, uh, so that all the, uh, equipment inside that, that manufacturing plant can be hooked up. They don't have to pay huge overheads to deploy 5g it's, uh, better than wifi for the industrial space. Um, when we take computing down to that industrial area, uh, because we wanna do pre-procesing on the data. Yeah. We want to gather some analytics. We deploy that with, uh, regular commercial available hardware running VMware, and we deploy EKS anywhere on that. Uh, inside of that manufacturing plant, uh, we can do pre-procesing on things coming out of the, uh, the robotics that depending on what we're manufacturing, right. Uh, and then we can take those refined analytics and for very low cost with maybe a little bit longer latency transmit those back, um, to the AWS availability zone, the, the standard for >>Data, data lake, or whatever, to >>The data lake. Yeah. Data lake house, whatever it might be. Um, and we can do additional data science on that once it gets to the AWS cloud. Uh, but a lot of that, uh, just in time business decisions, just in time, manufacturing decisions can all take place on an AWS service or services inside that manufacturing plant. And that's, that's one of the best use cases that we're >>Seeing. And I think, I mean, we've been seeing this on the queue for many, many years, moving data around is very expensive. Yeah. But also compute going to the data that saves that cost yep. On the data transfer also on the benefits of the latency. So I have to ask you, by the way, that's standard best practice now for the folks watching don't move the data, unless you have to, um, those new things are developing. So I wanna ask you what new patterns are you seeing emerging once this new architecture's in place? Love that idea, localize everything right at the edge, manufacturing, industrial, whatever, the use case, retail, whatever it is. Right. But now what does that change in the, in the core cloud? This is a, there's a system element here. Yeah. What's the new pattern. There's >>Actually an organizational element as well, because once you have to start making the decision, do I put this compute at the point of use or do I put this compute in the cloud out? Uh, now you start thinking about where business decisions should be taking place. Uh, so not only are you changing your architecture, you're actually changing your organization because you're thinking, you're thinking about a dichotomy you didn't have before. Uh, so now you say, okay, this can take place here. Uh, and maybe maybe decision can wait. Right? Yeah. Uh, and then how do I visualize that? By >>The way, it could be a bot too, doing the work for management. Yeah. <laugh> exactly. You got observability going, right. But you gotta change the database architecture on the back. So there's new things developing. You've got more benefit. There >>Are, there are. And, and we have more and more people that, that want to talk less about databases and want to talk more about data lakes because of this. They want to talk more about customers are starting to talk about throwing away data, uh, you know, for the past maybe decade. Yeah. It's been store everything. And one day we will have a data science team that we hire in our organization to do analytics on this decade of data. And >>Well, I mean, that's, that's a great point. We don't have time to drill into, maybe we do another session on this, but the one pattern was income of the past year is that throwing away data's bad. Even data lakes that so-called turn into data swamps, actually, it's not the case. You look at data, brick, snowflake, and other successes out there. And even time series data, which may seem irrelevant efforts over actually matters when people start retrain their machine learning algorithms. Yep. So as data becomes code, as we call it our lab showcase, we did a whole, whole, that event on this. The data's good in real time and in the lake. Yeah. Because the iteration of the data feeds the machine learning training. Things are getting better with the old data. So it's not throw away. It's not just business benefits. Yeah. There's all kinds of new scale. There >>Are. And, and we have, uh, many customers that are run petabyte level. Um, they're, they're essentially data factories on, on, uh, on premises, right? They're, they're creating so much data and they're starting to say, okay, we could analyze this, uh, in the cloud, we could transition it. We could move petabytes of data to the AWS cloud, or we can run, uh, computational workloads on premises. We can really do some analytics on this data transition, uh, those high level and sort of raw analytics back to AWS run 'em through machine learning. Um, and we don't have to transition 10, 12 petabytes of data into AWS. >>So I gotta end the segment on a, on a kind of a, um, fun note. I was told to ask you about your personal background on premise architect, a cloud and skydiving instructor. <laugh> how does that all work together? What tell, what does this mean? Yeah. >>Uh, you >>Jumped out a plane and got a job. You, you got a customer to jump out >>Kind of. So I was jump, I was teaching Scott eing, uh, before I, before I started in the cloud space, this was 13, 14 years ago. I was a, I still am a Scott I instructor. Yeah. Uh, I was teaching Scott eing and I heard out of the corner of my ear, uh, a guy that owned an MSP that was lamenting about, um, you know, storing data and, and how his cus customers are working. And he can't find enough people to operate all these workloads. So I walked over and said, Hey, this is, this is what I went to school for. Like, I'd love to, you know, uh, I was living in a tent in the woods teaching scout. I think I was like, I'd love to not live in a tent in the woods. So, uh, uh, I started in the first day there, uh, we had a, a discussion, uh, EC two, just come out <laugh> um, and, uh, like, >>This is amazing. >>Yeah. And so we had this discussion, we should start moving customers here. And, uh, and that totally revolutionized that business, um, that, that led to, uh, that that guy actually still owns a skydiving airport. But, um, but through all of that and through being an on premises migrated me and myself, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, now let's take what we learned in the cloud and, and apply those lessons and those services to >>It's. So it's such a great story, you know, I was gonna, you know, you know, the, the, the, the whole, you know, growth mindset pack your own parachute, you know, uh, exactly. You know, the cloud in the early day was pretty much will the shoot open. Yeah. It was pretty much, you had to roll your own cloud at that time. And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. >>And so was Kubernetes by the way, 2015 or so when, um, when that was coming out, it was, I mean, it was, it was still, and I, maybe it does still feel like that to some people. Right. But, uh, it was, it was the same kind of feeling that we had in the early days, AWS, the same feeling we have when we >>It's pretty much now with you guys, it's more like a tandem jump. Yeah. You know, but, but it's a lot of, lot of this cutting edge stuff, like jumping out of an airplane. Yeah. You guys, the right equipment, you gotta do the right things. Exactly. >>Right. >>Matthew, thanks for coming on the cube. Really appreciate it. Absolutely great conversation. Thanks for having me. Okay. The cubes here live and San Francisco for summit. I'm John Forry host of the cube. Uh, we'll be at a summit in New York coming up in the summer as well. Look up for that. look@thiscalendarforallthecubeactionatthecube.net. We'll be right back with our next segment after this break. >>Okay. Welcome back everyone to San Francisco live coverage here, we're at the cube a be summit 2022. We're back in person. I'm John fury host to the cube. We'll be at the eight of his summit in New York city. This summer, check us out then. But right now, two days in San Francisco, getting all the coverage what's going on in the cloud, we got a cube alumni and friend of the cube, my dudes, car CEO, investor, a Sierra, and also an investor and a bunch of startups, angel investor. Gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see you, sir. Chris. Cool. How are, are you >>Good? How are you? >>So congratulations on all your investments. Uh, you've made a lot of great successes, uh, over the past couple years, uh, and your company raising, uh, some good cash as Sarah. So give us the update. How much cash have you guys raised? What's the status of the company product what's going on? First >>Of all, thank you for having me back to be business with you. Never great to see you. Um, so is a company started around four years back. I invested with a few of the investors and now I'm the CEO there. Um, we have raised close to a hundred million there. Uh, the investors are people like Norwes Menlo, Tru ventures, coast, lo ventures, Ram Sheam and all those people, all well known guys. The Andy Beckel chime, Paul Mo uh, main web. So a whole bunch of operating people and, uh, Silicon valley VCs are involved >>And has it come? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISR is going after is what I call the applying AI for customer service. It operations, it help desk, uh, the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and ServiceNow to take it to the next stage? >>Well, I love having you on the cube, Dave and I, Dave Valenti as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a GE, you're like a guest analyst. <laugh> >>You know who you >>Get to call this fun to talk. You though, >>You got the commentary, you, your, your finger on the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase it. Isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud scale. You predicted that we talked about on cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing DACA just raised a hundred million on a 2 billion valuation back from the dead after they pivoted from an enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control, plane emerging, AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded, observability there's 10 million observability companies. Data is the key. What's your angle on this? What's your take. Yeah, >>No, look, I think I'll give you the view that I see right from my side. Obviously data is very clear. So the things that remember system of recorded you and me talked about the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud NA it'll be called AI, NA AI native is a new buzzword and using the AI customer service it operations. You talk about observability. I call it, AIOps applying AOPs for good old it operation management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events insurance. So I see a lot of work clicking for AIOps and service desk. What needs to be helped us with ServiceNow BMC G you see a new ELA emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflow, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with a AI workflows. So you'll see AI going >>Off is RPA a company is AI, is RPA a feature of something bigger? Or can someone have a company on RPA UI pass? One will be at their event this summer? Um, is it a product company? I mean, I mean, RPA is almost, should be embedded in everything. It's >>A feature. It is very good point. Very, very good thinking. So one is, it's a category for sure. Like, as we thought, it's a category, it's an area where RPA may change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company, or, but that automation should be embedded in every area. Yeah. Like we call cloud NA and AI NATO it'll become automation. NA yeah. And that's your thinking. >>It's almost interesting me. I think about the, what you're talking about what's coming to mind is I'm kinda having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it. It was middleware. It sat between two things and then the middle, and it was software abstraction. Now you have all, all kinds of workflows, abstractions everywhere. So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed or they integrated. I mean, these are the challenges. This is crazy. What's the, >>So don't about the databases become called poly databases. Yeah. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area like you were talking about. It should be part of service. Now it should be part of ISRA, like every company, every Salesforce. So that's why you see MuleSoft and Salesforce buying RPA companies. So you'll see all the SaaS companies, cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also have an automation as a layer <inaudible> inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind us, you've got the expo hall. We got, um, we're back to vents, but you got, you know, AMD, Clum, Ove, uh, Dynatrace data, dog, innovative, all the companies out here that we know, we interview them all. They're trying to be suppliers to this growing enterprise market. Right. Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Bel later today. He's a former NEA guy and we always talk to Jerry, Jen. We know all the, the VCs. What does the startups look like? What does the state of the, in your mind, cause you, I know you invest the entrepreneurial founder situation, clouds bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's code. Yes. Basically data is everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to, uh, two things that I'm seeing out there. Remember leaders of Amazon created the startups 15 years back. Everybody built on Amazon now, Azure and GCP. The next layer would be is people don't just build on Amazon. They're going to build it on top of snowflake. Companies are snowflake becomes a data platform, right? People will build on snowflake. Right? So I see my old boss flagman try to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer. Right? So I think that's in the of, <inaudible> trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis a couple months ago called castles in the cloud where your moat is, what you do in the cloud. Not necessarily in the, in the IP. Um, Dave LAN and I had last reinvent, coined the term super cloud, right? He's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldman S Sachs is doing. You starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage. And guys like Charles Fitzgeral out there, who we like was kind of shit on us saying, Hey, you guys terrible, they didn't get it. Like, yeah. I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. <laugh> if he's cool. Um, but snowflake is on Amazon. Yes. Now they say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist. And, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. >>It is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to build everything on Amazon where possible whatever is, I cannot build. I'll make the pass layer. Remember the middle layer pass will be snowflake. So can build it on snowflake. I can use them for data layer. If I really need to size, I'll build it on four.com Salesforce. So I think that's where you'll see. So >>Basically if you're an entrepreneur, the north star in terms of the outcome is be a super cloud. >>It is, >>That's the application on another big CapEx ride, the CapEx of AWS or cloud, >>And that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. >>Yeah. Yeah. How are, how is Amazon and the clouds dealing with these big whales? The snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think got Redshift. Amazon has got red, um, but Snowflake's a big customer. They're probably paying AWS think big bills too. >>So John, very good. Cause it's like how Netflix is and Amazon prime, right. Netflix runs on Amazon, but Amazon has Amazon prime that co-option will be there. So Amazon will have Redshift, but Amazon is also partnering with, uh, snowflake to have native snowflake data warehouse as a data layer. So I think depending on the application use case, you have to use each of the above. I think snowflake is here for a long term. Yeah. Yeah. So if I'm building an application, I want to use snowflake then writing from stats. >>Well, I think that comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, You know, foreclose your value that's right. But some sort of internal hack, but I think, I think the general question that I have is that I think it's okay to have a super cloud like that because the rising tide is still happening at some point. When does the rising tide stop >>And >>Do the people shopping up their knives, it gets more competitive or is it just an infinite growth cycle? I >>Think it's growth. You call it cloud scale. You invented the word cloud scale. So I think look, cloud will continually agree, increase. I think there's, as long as there are more movement from on, uh, OnPrem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations. It helpless, even the customer service service now and, uh, ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So cloud ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go made. >>I wanna get your thoughts for the folks watching that are, uh, enterprise buyers or practitioners, not suppliers to the market, feel free to, to XME or DMing. Next question's really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products. Cause you know, the big enterprises now and, you know, small, medium, large, and large enterprise are all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between the startup selling to, or a growing startup selling to an enterprise? Um, have you seen changes there? I mean I'm seeing some stuff, but why don't we get your thoughts on that? What, no, it is. >>If I remember going back to our 2007 or eight, it, when I used to talk to you back then when Amazon started very small, right? We are an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or 1% today. Most companies are already spending 20, 30% with startups. Like if I look at a CIO line business, it's gone. Yeah. Can it go more? I think it can double in the next four, five years. Yeah. Spending on the startups. >>Yeah. And check out, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want to get your reaction because I reference the URL cause it's like, there's like a bunch of companies we've been promoting because the solutions that startups have actually are new stuff. Yes. It's bending, it's shifting left for security or using data differently or um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there, um, and gives back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona, you mentioned AIOps, we've been seeing AIOps IOPS booming and that's creating a new developer paradigm that's right. Which we call coin data as code data as code is like infrastructure as code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this data engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same thing? Do you agree? Um, do you disagree or can you share >>Yourself? No, I have a lot of thoughts that plus I see AIOP solutions in the future should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone there yet. Like I spend a lot of time with data dog, Cisco app Dyna, right? Dynatrace, all this solution will go future towards to proactive solution with AOPs. But what you bring up a very good point on the data side. I think like we have a Amazon marketplace and Amazon for startup, there should be data exchange where you want to create for AOPs and AI service that customers are give the data, share the data because we thought the data algorithms are useless. I can come the best algorithm, but I gotta train them, modify them, tweak them, make them better, make them better. Yeah. And I think their whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that area is very important. >>You've always been on, um, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to our big data days back in 2009, you know, >>Look at, look how much data bricks has grown. >>It is uh, double, the key >>Cloud kinda went private, so good stuff. What are you working on right now? Give a, give a, um, plug for what you're working on. You'll still investing. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. So right. ISRA is my number one baby right now. So I'm looking at that growing customers and my customers are some of them, you like it's zoom auto desk, Mac of fee, uh, grandchildren, all the top customers. Um, mainly for it help desk customer service. AIOps those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What's what's their need? What category is it? >>I think they look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on predict S one area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value problem. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service, >>Great stuff, man. Doing great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the cube. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of 80 summit, 2022. And we're gonna be at 80 summit in San, uh, in New York and the summer. So look for that on this calendar, of course go to eight of us, startups.com. I mentioned that it's a site for all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break. >>Okay. Welcome back everyone. This to cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back a little bit smaller footprint, a lot of hybrid events going on, but this is actually a physical event, a summit new York's coming in the summer. We'll be there too with the cube on the set. We're getting back in the groove, psyched to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're gonna see a lot of virtual cube, a lot of hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economists with duck, bill groove, he founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank you. >>Thanks. Coming on. Sure is a lot of words to describe as shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at Mark's been doing a lot of shit posting lately, all a billionaires are shit posting, but they don't know how to do it. Like they're not >>Doing it right. Something opportunity there. It's like, here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a mid-size island to begin doing this from, oh, then we're having fun. This >>Shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on the other side, I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what is shit posting? >>It's more or less talking about the world of enterprise tech, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream. But it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a jackass or more prosaically are worried about getting fired for better or worse. I don't have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, coupons coming up in Spain, which they're having a physical event, you can see the growth of cloud native Amazons, all, all the Adams let see new CEO, Andy move on to be the chief of all. Amazon just saw him. The cover of was it time magazine. Um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything these folks do. They they're effectively in a fishbowl, but I have trouble imagining the logistics. It takes to wind up handling the catering for a relatively downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. It's, it's sprawling, immense that dominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. Well, >>There's a lot of force for good conversations, seeing a lot of that going on, Amazon's trying to port and he was trying to portray themselves as you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that and I think that's a good angle as cloud goes mainstream. There's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now it same kind of thing. As you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby races, a as a semi-pro race car driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. Either way, sounds like more exciting >>Replacement ready <laugh> in case something goes wrong. I, the track highly >>Available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula one is they have these new rigs out. Yeah. Where you can actually race in e-sports with other, in pure simulation of the race car. You gotta get the latest and video graphics card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. >>Oh, it's great too. And I can see the appeal of these tech companies getting into it because these things are basically rocket shifts. When those cars go, like they're sitting there, we can instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going in your world. I know you have a lot of great success. We've been following you in the queue for many, many years. Got a great newsletter. Check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's back any blow back late there been uptick. What was, what are some of the things you're hearing from your audience, more Corey, more Corey. And then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's high. I'm emailing an awful lot of people at last week in AWS every week and okay. They must not have heard me it. That is not actually true. People just generally don't respond to email because who responds to email newsletters. That sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do that. >>We should do that. Actually. I think sure would call in. Oh, I, >>I think >>Chief, we had that right now. People would call in and say, Corey, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised anything by how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the customer. >>You know, I always joke with Dave ante about how John Fort's always at, uh, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of goof on that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0 5, or we can't, >>We have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And there you go. Yeah. >>It's and the old joke at HP was if they, if they invented sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish. That's what it is. And so the joke was cold. Dead fish is a better name than sushi. So you know is fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their >>Producting, they're going in different directions. When they named Amazon Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonused on a number of words. They can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, session manager is a great one. I love the service, ridiculous name. They have systems manager, parameter store, which is great. They have secrets manager, which does the same thing. It's two words less, but that one costs money in a way that systems manage your parameter store does not. It's >>Fun. What's your, what's your favorite combination of acronyms >>Combination of you >>Got Ks. You got EMR, you got EC two. You got S three SQS. Well, Redshift the on an acronym, you >>Gots is one of my personal favorites because it's either elastic block store or elastic bean stock, depending entirely on the context of the conversation. >>They still up bean stalk. Or is that still around? Oh, >>They never turn anything off. They're like the anti Google, Google turns things off while they're still building it. Whereas Amazon is like, wow, we built this thing in 2005 and everyone hates it. But while we certainly can't change it, now it has three customers on it. John three <laugh>. >>Okay. >>Simple BV still haunts our dreams. >>I, I actually got an email. I saw one of my, uh, servers, all these C two S were being deprecated and I got an email I'm like, I couldn't figure out. Why can you just like roll it over? Why, why are you telling me just like, give me something else. Right. Okay. So let me talk about, uh, the other things I want to ask you is that like, okay. So as Amazon gets better in some areas, where do they need more work in your opinion? Because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database, Snowflake's got a database service. So Redshift, snowflake database is, so you got this co-op petition. Yes. How's that going? And what are you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with Amazon and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want and they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multi-cloud cause obviously the other cloud shows are coming up. Amazon hated that word. Multi-cloud um, a lot of people are saying, you know, it's not a real good marketing word, like multi sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multi-cloud >>Multiple single points? >>Dave loves that term. Yeah. >>Yeah. You're building in multiple single points of failure. Do it for the right reasons or don't do it as a default. I believe not doing it is probably the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about multi-cloud either as the industry leader, talk about other clouds, bad direction to go in from a market cap perspective, it doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of forms. Some brilliant, some brain dead. It depends a lot on context. But my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing, because it solves problems. That's when I shut up and listen. Yeah. >>Cool. Awesome. Corey, I gotta ask you a question, cause I know you, we you've been, you know, fellow journeymen and the, and the cloud journey going to all the events and then the pandemic hit where now in the third year, who knows what it's gonna gonna end. Certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations. Community's gonna emerge. You got a pretty big community growing and it's throwing like crazy. What's the weirdest or coolest thing, or just big chain angels. You've seen with the pandemic, uh, from your perspective, cuz you've been in the you're in the middle of the whitewater rafting. You've seen the events you circle offline. You saw the online piece, come in, you're commentating. You're calling balls and strikes in the industry. You got a great team developing over there. Duck bill group. What's the big aha moment that you saw with the pandemic. Weird, fun, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who can pony up two grand and a week in Las Vegas and get to Las Vegas from wherever they happen to be by moving virtually suddenly it, it embraces the reality that talent is even distributed. Opportunity is not. And that means that suddenly these things are accessible to a wide swath of audience and potential customer base and the rest that hadn't been invited to the table previously, it's imperative that we not lose that. It's nice to go out and talk to people and have people come up and try and smell my hair from time to time, I smell delightful. Let make assure you, but it was, but it's also nice to be. >>I have a product for you if you want, you know. >>Oh, excellent. I look forward to it. What is it putting? Why not? <laugh> >>What else have you seen? So when accessibility for talent, which by the way is totally home run. What weird things have happened that you've seen? Um, that's >>Uh, it's, it's weird, but it's good that an awful lot of people giving presentations have learned to tighten their message and get to the damn point because most people are not gonna get up from a front row seat in a conference hall, midway through your Aing talk and go somewhere else. But they will change a browser tab and you won't get them back. You've gotta be on point. You've gotta be compelling if it's going to be a virtual discussion. >>Yeah. And also turn off your IMEs too. >>Oh yes. It's always fun in the, in the meetings when you're talking to someone and their co is messaging them about, should we tell 'em about this? And I'm sitting there reading it and it's >>This guy is really weird. Like, >>Yes I am and I bring it into the conversation and then everyone's uncomfortable. It goes, wow. >>Why not? I love when my wife yells at me over I message. When I'm on a business call, like, do you wanna take that about no, I'm good. >>No, no. It's better off. I don't. No, the only encourager it's fine. >>My kids. Excellent. Yeah. That's fun again. That's another weird thing. And, and then group behavior is weird. Now people are looking at, um, communities differently. Yes. Very much so, because if you're fatigued on content, people are looking for the personal aspect. You're starting to see much more of like yeah. Another virtual event. They gotta get better. One and two who's there. >>Yeah. >>The person >>That's a big part of it too is the human stories are what are being more and more interesting. Don't get up here and tell me about your product and how brilliant you are and how you built it. That's great. If I'm you, or if I wanna work with you or I want to compete with you, or I wanna put on my engineering hat and build it myself. Cause why would I buy anything? That's more than $8. But instead, tell me about the problem. Tell me about the painful spot that you specialize in. Tell me a story there. >>I, I >>Think that gets a glimpse in a hook and >>Makes more, more, I think you nailed it. Scaling storytelling. Yes. And access to better people because they don't have to be there in person. I just did it thing. I never, we never would've done the queue. We did. Uh, Amazon stepped up in sponsors. Thank you, Amazon for sponsoring international women's day, we did 30 interviews, APAC. We did five regions and I interviewed this, these women in Asia, Pacific eight, PJ, they called for in this world. And they're amazing. I never would've done those interviews cuz I never, would've seen 'em at an event. I never would've been in Japan or Singapore to access them. And now they're in the index. They're in the network. They're collaborating on LinkedIn. So a threads are developing around connections that I've never seen before. Yes. Around the content, >>Absolutely >>Content value plus >>The networking. And that is the next big revelation of this industry is going to realize you have different companies. And in Amazon's case, different service teams, all, all competing with each other, but you have the container group and you have the database group and you have the message cuing group. But customers don't really want to build things from spare parts. They want a solution to a problem. I want to build an app that does Twitter for pets or whatever it is I'm trying to do. I don't wanna basically have to pick and choose and fill my shopping cart with all these different things. I want something that's gonna give me what I'm trying to get as close to turnkey as possible. Moving up the stack. That is the future. And just how it gets here is gonna be >>Well we're here with Corey Quinn, the master of the master of content here in the a ecosystem. Of course we we've been following up in the beginnings. Great guy. Check out his blog, his site, his newsletter screaming podcast. Cory, final question for you. Uh, what do you hear doing what's on your agenda this week in San Francisco and give a plug for the duck build group. What are you guys doing? I know you're hiring some people what's on the table for the company. What's your focus this week and put a plug in for the group. >>I'm here as a customer and basically getting outta my cage cuz I do live here. It's nice to actually get out and talk to folks who are doing interesting things at the duck build group. We solve one problem. We fixed the horrifying AWS bill, both from engineering and architecture, advising as well as negotiating AWS contracts because it turns out those things are big and complicated. And of course my side media projects last week in aws.com, we are, it it's more or less a content operation where I indulge my continual and ongoing law of affair with the sound of my own voice. >><laugh> and you good. It's good content. It's on, on point fun, Starky and relevant. So thanks for coming to the cube and sharing with us. Appreciate it. No, thank you. Fun. You. Okay. This the cube covers here in San Francisco, California, the cube is back at to events. These are the summits, Amazon web services summits. They happen all over the world. We'll be in New York and obviously we're here in San Francisco this week. I'm John furry. Keep, keep it right here. We'll be back with more coverage after this short break. Okay. Welcome back everyone. This's the cubes covers here in San Francisco, California, we're live on the show floor of AWS summit, 2022. I'm John for host of the cube and remember AWS summit in New York city coming up this summer, we'll be there as well. And of course reinvent the end of the year for all the cube coverage on cloud computing and AWS. The two great guests here from the APN global APN se Jenko and Jeff Grimes partner leader, Jeff and se is doing partnerships global APN >>AWS global startup program. Yeah. >>Okay. Say that again. >>AWS global startup program. >>That's the official name. >>I love >>It too long, too long for me. Thanks for coming on. Yeah, of course. Appreciate it. Tell us about what's going on with you guys. What's the, how was you guys organized? You guys we're obviously were in San Francisco bay area, Silicon valley, zillions of startups here, New York. It's got another one we're gonna be at tons of startups. Lot of 'em getting funded, big growth and cloud big growth and data security, hot and sectors. >>Absolutely. >>So maybe, maybe we could just start with the global startup program. Um, it's essentially a white glove service that we provide to startups that are built on AWS. And the intention there is to help identify use cases that are being built on top of AWS. And for these startups, we want to provide white glove support in co building products together. Right. Um, co-marketing and co-selling essentially, um, you know, the use cases that our customers need solved, um, that either they don't want to build themselves or are perhaps more innovative. Um, so the, a AWS global startup program provides white glove support, dedicated headcount for each one of those pillars. Um, and within our program, we've also provided incentives, programs go to market activities like the AWS startup showcase that we've built for these startups. >>Yeah. By the way, start AWS startups.com is the URL, check it out. Okay. So partnerships are key. Jeff, what's your role? >>Yeah. So I'm responsible for leading the overall F for, for the AWS global startup program. Um, so I've got a team of partner managers that are located throughout the us, uh, managing a few hundred startup ISVs right now. <laugh> >>Yeah, I got >>A lot. We've got a lot. >>There's a lot. I gotta, I gotta ask the tough question. Okay. I'm I'm a startup founder. I got a team. I just got my series a we're grown. I'm trying to hire people. I'm super busy. What's in it for me. Yeah. What do you guys bring to the table? I love the white glove service, but translate that what's in it. What do I get out of it? What's >>A good story. Good question. I focus, I think. Yeah, because we get, we get to see a lot of partners building their businesses on AWS. So, you know, from our perspective, helping these partners focus on what, what do we truly need to build by working backwards from customer feedback, right? How do we effectively go to market? Because we've seen startups do various things, um, through trial and error, um, and also just messaging, right? Because oftentimes partners or rather startups, um, try to boil the ocean with many different use cases. So we really help them, um, sort of laser focus on what are you really good at and how can we bring that to the customer as quickly as possible? >>Yeah. I mean, it's truly about helping that founder accelerate the growth of their company. Yeah. Right. And there's a lot that you can do with AWS, but focus is truly the key word there because they're gonna be able to find their little piece of real estate and absolutely deliver incredible outcomes for our customers. And then they can start their growth curve there. >>What are some of the coolest things you've seen with the APN that you can share publicly? I know you got a lot going on there, a lot of confidentiality. Um, but you know, we're here lot of great partners on the floor here. I'm glad we're back at events. Uh, a lot of stuff going on digitally with virtual stuff and, and hybrid. What are some of the cool things you guys have seen in the APN that you can point to? >>Yeah, absolutely. I mean, I can point to few, you can take them. Sure. So, um, I think what's been fun over the years for me personally, I came from a startup, ran sales at an early stage startup and, and I went through the whole thing. So I have a deep appreciation for what these guys are going through. And what's been interesting to see for me is taking some of these early stage guys, watching them progress, go public, get acquired, and see that big day mm-hmm <affirmative>, uh, and being able to point to very specific items that we help them to get to that point. Uh, and it's just a really fun journey to watch. >>Yeah. I, and part of the reason why I really, um, love working at the AWS, uh, global startup program is working with passionate founders. Um, I just met with a founder today that it's gonna, he's gonna build a very big business one day, um, and watching them grow through these stages and supporting that growth. Um, I like to think of our program as a catalyst for enterprise sort of scale. Yeah. Um, and through that we provide visibility, credibility and growth opportunities. >>Yeah. A lot, a lot of partners too. What I found talking to staff founders is when they have that milestone, they work so hard for it. Whether it's a B round C round Republic or get bought. Yeah. Um, then they take a deep breath and they look back at wow, what a journey it's been. So it's kind of emotional for sure. Yeah. Still it's a grind. Right? You gotta, I mean, when you get funding, it's still day one. You don't stop. It's no celebrate, you got a big round or valuation. You still gotta execute >>And look it's hypercompetitive and it's brutally difficult. And our job is to try to make that a little less difficult and navigate those waters right. Where everyone's going after similar things. >>Yeah. I think as a group element too, I observe that startups that I, I meet through the APN has been interesting because they feel part of AWS. Yeah, totally. As a group of community, as a vibe there. Um, I know they're hustling, they're trying to make things happen. But at the same time, Amazon throws a huge halo effect. I mean, that's a huge factor. I mean, yeah. You guys are the number one cloud in the business, the growth in every sector is booming. Yeah. And if you're a startup, you don't have that luxury yet. And look at companies like snowflake, they're built on top of AWS. Yeah. I mean, people are winning by building on AWS. >>Yeah. And our, our, our program really validates their technology first. So we have, what's called a foundation's technical review that we put all of our startups through before we go to market. So that when enterprise customers are looking at startup technology, they know that it's already been vetted. And, um, to take that a step further and help these partners differentiate, we use programs like the competency programs, the DevOps compet, the, the security competency, which continues to help, um, provide sort of a platform for these startups, help them differentiate. And also there's go to market benefits that are associated with that. >>Okay. So let me ask the, the question that's probably on everyone's mind, who's watching. Certainly I asked this a lot. There's a lot of companies startups out there who makes the, is there a criteria? Oh God, it's not like his sports team or anything, but like sure. Like there's activate program, which is like, there's hundreds of thousands of startups out there. Not everyone is at the APN. Right? Correct. So ISVs again, that's a whole nother, that's a more mature partner that might have, you know, huge market cap or growth. How do you guys focus? How do you guys focus? I mean, you got a good question, you know, a thousand flowers blooming all the time. Is there a new way you guys are looking at it? I know there's been some talk about restructure or, or new focus. What's the focus. >>Yeah. It's definitely not an easy task by any means. Um, but you know, I recently took over this role and we're really trying to establish focus areas, right. So obviously a lot of the fees that we look after our infrastructure ISVs, that's what we do. Uh, and so we have very specific pods that look after different type of partners. So we've got a security pod, we've got a DevOps pod, we've got core infrastructure, et cetera. And really we're trying to find these ISVs that can solve, uh, really interesting AWS customer challenges. >>So you guys have a deliberate, uh, focus on these pillars. So what infrastructure, >>Security, DevOps, and data and analytics, and then line of business >>Line of business line, like web marketing >>Solutions, business apps, >>Business, this owner type thing. Exactly. >>Yeah, exactly. >>So solutions there. Yeah. More solutions and the other ones are like hardcore. So infrastructure as well, like storage, backup, ransomware of stuff, or, >>Uh, storage, networking. >>Okay. Yeah. The classic >>Database, et cetera. Right. >>And so there's teams on each pillar. >>Yep. So I think what's, what's fascinating for the startup that we cover is that they've got, they truly have support from a build market sell perspective. Right. So you've got someone who's technical to really help them get the technology, figured out someone to help them get the marketing message dialed and spread, and then someone to actually do the co-sell, uh, day to day activities to help them get in front of customers. >>Probably the number one request that we always ask for Amazon is can we waste that sock report? Oh, download it, the console, which we use all the time. Exactly. But security's a big deal. I mean, you know, SREs are evolving, that role of DevOps is taking on dev SecOps. Um, I, I could see a lot of customers having that need for a relationship to move things faster. Do you guys provide like escalation or is that a part of a service or not, not part of a, uh, >>Yeah, >>So the partner development manager can be an escalation point. Absolutely. Think of them as an extension of your business inside of AWS. >>Great. And you guys how's that partner managers, uh, measure >>On those three pillars. Right. Got it. Are we billing, building valuable use cases? So product development go to market, so go to market activities, think blog, posts, webinars, case studies, so on and so forth. And then co-sell not only are we helping these partners win their current opportunities that they are sourcing, but can we also help them source net new deals? Yeah. Right. That's >>Very important. I mean, top asked from the partners is get me in front of customers. Right. Um, not an easy task, but that's a huge goal of ours to help them grow their top >>Line. Right. Yeah. In fact, we had some interviews here on the cube earlier talking about that dynamic of how enterprise customers are buying. And it's interesting, a lot more POCs. I have one partner here that you guys work with, um, on observability, they got a huge POC with capital one mm-hmm <affirmative> and the enterprises are engaging the startups and bringing them in. So the combination of open source software enterprises are leaning into that hard and bringing young growing startups in mm-hmm <affirmative>. Yep. So I could see that as a huge service that you guys can bring people in. >>Right. And they're bringing massively differentiated technology to the table. Mm-hmm <affirmative> the challenge is they just might not have the brand recognition that the big guys have. And so that it's our job is how do you get that great tech in front of the right situations? >>Okay. So my next question is about the show here, and then we'll talk globally. So here in San Francisco sure. You know, Silicon valley bay area, San Francisco bay area, a lot of startups, a lot of VCs, a lot of action. Mm-hmm <affirmative> so probably a big market for you guys. Yeah. So what's exciting here in SF and then outside SF, you guys have a global program, you see any trends that are geography based or is it sure areas more mature? There's certain regions that are better. I mean, I just interviewed a company here that's doing, uh, AWS edge really well in these cases. It's interesting that these, the partners are filling a lot of holes and gaps in the opportunities with AWS. So what's exciting here. And then what's the global perspective. >>Yeah, totally. So obviously a ton of partners, I, from the bay area that we support. Um, but we're seeing a lot of really interesting technology coming out of AMEA specifically. Yeah. Uh, and making a lot of noise here in the United States, which is great. Um, and so, you know, we definitely have that global presence and, and starting to see super differentiated technology come out of those regions. >>Yeah. Especially Tel Aviv. Yeah. >>Amy real quick, before you get in the surge. It's interesting. The VC market in, in Europe is hot. Yeah. They've got a lot of unicorns coming in. We've seen a lot of companies coming in. They're kind of rattling their own, you know, cage right now. Hey, look at us. We'll see if they crash, you know, but we don't see that happening. I mean, people have been projecting a crash now in, in the startup ecosystem for at least a year. It's not crashing. In fact, funding's up. >>Yeah. The pandemic was hard on a lot of startups for sure. Yeah. Um, but what we've seen is many of these startups, they, as quickly as they can grow, they can also pivot as, as, as well. Um, and so I've actually seen many of our startups grow through the pandemic because their use cases are helping customers either save money, become more operationally efficient and provide value to leadership teams that need more visibility into their infrastructure during a pandemic. >>It's an interesting point. I talked to Andy jazzy and Adam Leski both say the same thing during the pandemic necessity, the mother of all invention. Yep. And startups can move fast. So with that, you guys are there to assist if I'm a startup and I gotta pivot cuz remember iterate and pivot, iterate and pivot. So you get your economics, that's the playbook of the ventures and the models. >>Exactly. How >>Do you guys help me do that? Give me an example of walk me through, pretend me I'm a startup. Hey, I am on the cloud. Oh my God. Pandemic. They need video conferencing. Hey cube. Yeah. What do I need? Surge? What, what do I do? >>That's a good question. First thing is just listen. Yeah. I think what we have to do is a really good job of listening to the partner. Um, what are their needs? What is their problem statement and where do they want to go at the end of the day? Um, and oftentimes because we've worked with so many successful startups, they have come out of our program. We have, um, either through intuition or a playbook, determined what is gonna be the best path forward and how do we get these partners to stop focusing on things that will eventually, um, just be a waste of time yeah. And, or not provide, or, you know, bring any fruit to the table, which, you know, essentially revenue. >>Well, we love star rights here in the cube because one, um, they have good stories. They're oil and cutting edge, always pushing the envelope and they're kind of disrupting someone else. Yeah. And so they have an opinion. They don't mind sharing on camera. So love talking to startups. We love working with you guys on our startup showcases startups.com. Check out AWS startups.com and you got the showcases, uh, final. We I'll give you guys the last word. What's the bottom line bumper sticker for AP the global APN program. Summarize the opportunity for startups, what you guys bring to the table and we'll close it out. Totally start >>With you. Yeah. I think the AWS global startup program's here to help companies truly accelerate their business full stop. Right. And that's what we're here for. I love it. >>It's a good way to, it's a good way to put it Dito. >>Yeah. All right, sir. Thanks for coming on. Thanks John. Great to see you love working with you guys. Hey, startups need help. And the growing and huge market opportunities, the shift cloud scale data engineering, security infrastructure, all the markets are exploding in growth because of the digital transformation of the realities here. Open source and cloud all making it happen here in the cube in San Francisco, California. I'm John furrier, your host. Thanks for watching >>John. >>Hello and welcome back to the cubes live coverage here in San Francisco, California for AWS summit, 2022. I'm John for host of the cube. Uh, two days of coverage, AWS summit, 2022 in New York city. Coming up this summer, we'll be there as well at events are back. The cube is back of course, with the cube virtual cube hybrid, the cube.net, check it out a lot of content this year, more than ever, a lot more cloud data cloud native, modern applic is all happening. Got a great guest here. Jeremy Burton, Cub alumni, uh, CEO of observe Inc in the middle of all the cloud scale, big data observability Jeremy. Great to see you. Thanks >>Always great to come and talk to you on the queue, man. It's been been a few years, so, >>Um, well you, you got your hands. You're in the trenches with great startup, uh, good funding, great board, great people involved in the observability hot area, but also you've been a senior executive president of Dell, uh, EMC, uh, 11 years ago you had a, a vision and you actually had an event called cloud meets big data. Um, yeah. And it's here. You predicted it 11 years ago. Um, look around it's cloud meets big data. >>Yeah. I mean the, the cloud thing I think, you know, was, was probably already a thing, but the big data thing I do claim credit for, for, for sort of catching that bus out, um, you know, we, we were on the, the, the bus early and, and I think it was only inevitable. Like, you know, if you could bring the economics and the compute of cloud to big data, you, you could find out things you could never possibly imagine. >>So you're close to a lot of companies that we've been covering deeply. Snowflake obviously are involved, uh, the board level, you know, the founders, you know, the people there cloud, you know, Amazon, you know, what's going on here? Yeah. You're doing a startup as the CEO at the helm, uh, chief of observ, Inc, which is an observability, which is to me in the center of this confluence of data engineering, large scale integrations, um, data as code integrating into applic. I mean, it's a whole nother world developing, like you see with snowflake, it means snowflake is super cloud as we call it. So a whole nother wave is here. What's your, what's this wave we're on what's how would you describe the wave? >>Well, a couple of things, I mean, people are, I think riding more software than, than ever fall. Why? Because they've realized that if, if you don't take your business online and offer a service, then you become largely irrelevant. And so you you've got a whole set of new applications. I think, I think more applications now than any point. Um, not, not just ever, but the mid nineties, I always looked at as the golden age of application development. Now back then people were building for windows. Well, well now they're building for things like AWS is now the platform. Um, so you've got all of that going on. And then at the same time, the, the side effect of these applications is they generate data and lots of data and the, you know, the sort of the transactions, you know, what you bought today or something like that. But then there's what we do, which is all the telemetry data, all the exhaust fumes. And I think people really are realizing that their differentiation is not so much their application. It's their understanding of the data. Can, can I understand who my best customers are, what I sell today. If people came to my website and didn't buy, then I not, where did they drop off all of that they wanna analyze. And, and the answers are all in the data. The question is, can you understand it >>In our last startup showcase, we featured data as code. One of the insights that we got out of that I wanna get your opinion on our reaction to is, is that data used to be put into a data lake and turns into a data swamp or throw into the data warehouse. And then we'll do some query, maybe a report once in a while. And so data, once it was done, unless it was real time, even real time was not good anymore after real time. That was the old way. Now you're seeing more and more, uh, effort to say, let's go look at the data cuz now machine learning is getting better. Not just train once mm-hmm <affirmative> they're iterating. Yeah. This notion of iterating and then pivoting, iterating and pivoting. Yeah, that's a Silicon valley story. That's like how startups work, but now you're seeing data being treated the same way. So now you have another, this data concept that's now yeah. Part of a new way to create more value for the apps. So this whole, this whole new cycle of >>Yeah. >>Data being reused and repurposed and figured out and >>Yeah, yeah. I'm a big fan of, um, years ago. Uh, uh, just an amazing guy, Andy McAfee at the MIT C cell labs I spent time with and he, he had this line, which still sticks to me this day, which is look I'm I'm. He said I'm part of a body, which believes that everything is a matter of data. Like if you, of enough data, you can answer any question. And, and this is going back 10 years when he was saying these kind of things and, and certainly, you know, research is on the forefront. But I, I think, you know, starting to see that mindset of the, the sort of MIT research be mainstream, you know, in enterprises, they they're realizing that yeah, it is about the data. You know, if I can better understand my data better than my competitor than I've got an advantage. And so the question is is, is how, what, what technologies and what skills do I need in my organization to, to allow me to do that. So >>Let's talk about observing you the CEO of, okay. Given you've seen the wave before you're in the front lines of observability, which again is in the center of all this action what's going on with the company. Give a quick minute to explain, observe for the folks who don't know what you guys do. What's the company doing? What's the funding status, what's the product status and what's the customer status. Yeah. >>So, um, we realized, you know, a handful of years ago, let's say five years ago that, um, look, the way people are building applications is different. They they're way more functional. They change every day. Uh, but in some respects they're a lot more complicated. They're distributed. They, you know, microservices architectures and when something goes wrong, um, the old way of troubleshooting and solving problems was not gonna fly because you had SA so much change going into production on a daily basis. It was hard to tell like where the problem was. And so we thought, okay, it's about time. Somebody looks at the exhaust fumes from this application and all the telemetry data and helps people troubleshoot and make sense of the problems that they're seeing. So, I mean, that's observability, it's actually a term that goes back to the 1960s. It was a guy called, uh, Rudolph like, like everything in tech, you know, it's, it's a reinvention of, of something from years gone by. >>But, um, there's a guy called, um, Rudy Coleman in 1960s, kinder term. And, and, and the term was been able to determine the state of a system by looking at its external outputs. And so we've been going on this for, uh, the best part of the all years now. Um, it took us three years just to build the product. I think, I think what people don't appreciate these days often is the barrier to entry in a lot of these markets is quite high. You, you need a lot of functionality to have something that's credible with a customer. Um, so yeah, this last year we, we, we did our first year selling, uh, we've got about 40 customers now. <affirmative> um, we just we've got great investors for the hill ventures. Uh, I mean, Mike SP who was, you know, the, the guy who was the, really, the first guy in it snowflake and the, the initial investor were fortunate enough to, to have Mike on our board. And, um, you know, part of the observed story yeah. Is closely knit with snowflake because all of that time data know we, we still are in there. >>So I want to get, uh, >>Yeah. >>Pivot to that. Mike Pfizer, snowflake, Jeremy Burton, the cube kind of, kind of same thinking this idea of a super cloud or what snowflake became snowflake is massively successful on top of AWS. Mm-hmm <affirmative> and now you're seeing startups and companies build on top of snowflake. Yeah. So that's become an entrepreneurial story that we think that to go big in the cloud, you can have a cloud on a cloud, uh, like as Jerry, Jerry Chan and Greylock calls it castles in the cloud where there are moats in the cloud. So you're close to it. I know you're doing some stuff with snowflake. So a startup, what's your view on building on top of say a snowflake or an AWS, because again, you gotta go where the data is. You need all the data. >>Yeah. So >>What's your take on that? >>I mean, having enough gray hair now, um, you know, again, in tech, I think if you wanna predict the future, look at the past. And, uh, you know, to many years ago, 25 years ago, I was at a, a smaller company called Oracle and an Oracle was the database company. And, uh, their, their ambition was to manage all of the world's transactional data. And they built on a platform or a couple of platforms, one, one windows, and the other main one was Solaris. And so at that time, the operator and system was the platform. And, and then that was the, you know, ecosystem that you would compete on top of. And then there were companies like SAP that built applications on top of Oracle. So then wind the clock forward 25 years gray hairs. <laugh> the platform, isn't the operating system anymore. The platform is AWS, you know, Google cloud. I gotta probably look around if I say that in. Yeah. It's >>Okay. But hyperscale, yeah. CapX built out >>That is the new platform. And then snowflake comes along. Well, their aspiration is to manage all of the, not just human generator data, but machine generated data in the world of cloud. And I think they they've done an amazing job doing for the, I'd say, say the, the big data world, what Oracle did for the relational data world, you know, way back 25 years ago. And then there are folks like us come along and, and of course my ambition would be, look, if, if we can be as successful as an SAP building on top of snow snowflake, uh, as, as they were on top of Oracle, then, then we'd probably be quite happy. >>So you're building on top of snowflake. >>We're building on top of snowflake a hundred percent. And, um, you know, I've had folks say to me, well, aren't you worried about that? Isn't that a risk? It's like, well, that that's a risk. You >>Still on the board. >>Yeah. I'm still on the board. Yeah. That that's a risk I'm prepared to take <laugh> I am long on snowflake you, >>Well, you're in a good spot. Stay on the board, then you'll know what's going on. Okay. No know just doing, but the, this is a real dynamic. It is. It's not a one off it's. >>Well, and I do believe as well that the platform that you see now with AWS, if you look at the revenues of AWS is an order of magnitude more than Microsoft was 25 years ago with windows mm-hmm <affirmative>. And so I believe the opportunity for folks like snowflake and folks like observe it's an order of magnitude more than it was for the Oracle and the SAPs of the old >>World. Yeah. And I think this is really, I think this is something that this next generation of entrepreneurship is the go big scenario is you gotta be on a platform. Yeah. >>It's quite >>Easy or be the platform, but it's hard. There's only like how many seats are at that table left. >>Well, value migrates up over time. So, you know, when the cloud thing got going, there were probably 10, 20, 30, you know, Rackspace and there's 1,000,001 infrastructure, a service platform as a service, my, my old, uh, um, employee EMC, we had pivotal, you know, pivotal was a platform as a service. You don't hear so much about it, these, but initially there's a lot of players and then it consolidates. And then to, to like extract, uh, a real business, you gotta move up, you gotta add value, you gotta build databases, then you gotta build applications. So >>It's interesting. Moving from the data center of the cloud was a dream for starters. Cause then if the provision, the CapEx, now the CapEx is in the cloud. Then you build on top of that, you got snowflake you on top of that, the >>Assumption is almost that compute and storage is free. I know it's not quite free. Yeah. It's >>Almost free, >>But, but you can, you know, as an application vendor, you think, well, what can I do if I assume compute and storage is free, that's the mindset you've gotta get into. >>And I think the platform enablement to value. So if I'm an entrepreneur, I'm gonna get a serious, multiple of value in what I'm paying. Yeah. Most people don't even blanket their Avis pills unless they're like massively huge. Yeah. Then it's a repatriation question or whatever discount question, but for most startups or any growing company, the Amazon bill should be a small factor. >>Yeah. I mean, a lot of people, um, ask me like, look, you're building on snowflake. Um, you, you know, you are, you are, you're gonna be, you're gonna be paying their money. How, how, how, how does that work with your business model? If you're paying them money, you know, do, do you have a viable business? And it's like, well, okay. I, we could build a database as well in observe, but then I've got half the development team working on in that will never be as good as snowflake. And so we made the call early on that. No, no, we, we wanna innovate above the database. Yeah. Right. Snowflake are doing a great job of innovating on the database and, and the same is true of something like Amazon, like, like snowflake could have built their own cloud and their own platform, but they didn't. >>Yeah. And what's interesting is that Dave <inaudible> and I have been pointing this out and he's actually more on snowflake. I I've been looking at data bricks, um, and the same dynamics happening, the proof is the ecosystem. Yeah. I mean, if you look at Snowflake's ecosystem right now and data bricks it's exploding. Right. I mean, the shows are selling out the floor. Space's book. That's the old days at VMware. Yeah. The old days at AWS >>One and for snowflake and, and any platform provider, it's a beautiful thing. You know, we build on snowflake and we pay them money. They don't have to sell to us. Right. And we do a lot of the support. And so the, the economics work out really, really well. If you're a platform provider and you've got a lot of ecosystems. >>Yeah. And then also you get, you get a, um, a trajectory of, uh, economies of scale with the institutional knowledge of snowflake integrations, right. New products. You're scaling that function with the, >>Yeah. I mean, we manage 10 petabytes of data right now. Right. When I, when I, when I arrived at EMC in 2010, we had, we had one petabyte customer. And, and so at observe, we've been only selling the product for a year. We have 10 petabytes of data under management. And so been able to rely on a platform that can manage that is invaluable, >>You know, but Jeremy Greek conversation, thanks for sharing your insights on the industry. Uh, we got a couple minutes left. Um, put a plug in for observe. What do you guys, I know you got some good funding, great partners. I don't know if you can talk about your, your, your POC customers, but you got a lot of high ends folks that are working with you. You getting traction. Yeah. >>Yeah. >>Scales around the corner. Sounds like, are you, is that where you are scale? >>Got, we've got a big announcement coming up in two or weeks. We've got, we've got new funding, um, which is always great. Um, the product is, uh, really, really close. I think, as a startup, you always strive for market fit, you know, which is at which point can you just start hiring salespeople? And the revenue keeps going. We're getting pretty close to that right now. Um, we've got about 40 SaaS companies run on the platform. They're almost all AWS Kubernetes, uh, which is our sweet spot to begin with, but we're starting to get some really interesting, um, enterprise type customers. We're, we're, you know, F five networks we're POC in right now with capital one, we got some interest in news around capital one coming up. I, I can't share too much, uh, but it's gonna be exciting. And, and like I saids hill continued to, to, to stick, >>I think capital one's a big snowflake customer as well. Right. They, >>They were early in one of the things that attracted me to capital one was they were very, very good with snowflake early on. And, and they put snowflake in a position in the bank where they thought that snowflake could be successful. Yeah. And, and today that, that is one of Snowflake's biggest accounts. >>So capital one, very innovative cloud, obviously AIOS customer and very innovative, certainly in the CISO and CIO, um, on another point on where you're at. So you're, Prescale meaning you're about to scale, right? So you got POCs, what's that trick GE look like, can you see around the corner? What's, what's going on? What's on, around the corner. That you're, that you're gonna hit the straight and narrow and, and gas it >>Fast. Yeah. I mean, the, the, the, the key thing for us is we gotta get the product. Right. Um, the nice thing about having a guy like Mike Pfizer on the board is he doesn't obsess about revenue at this stage is questions that the board are always about, like, is the product, right? Is the product right? Is the product right? If you got the product right. And cuz we know when the product's right, we can then scale the sales team and, and the revenue will take care of itself. Yeah. So right now all the attention is on the product. Um, the, this year, the exciting thing is we were, we're adding all the tracing visualizations. So people will be able to the kind of things that back in the day you could do with the new lakes and, and AppDynamics, the last generation of, of APM tools, you're gonna be able to do that within observe. And we've already got the logs and the metrics capability in there. So for us, this year's a big one, cuz we sort of complete the trifecta, you know, the, the logs, >>What's the secret sauce observe. What if you had the, put it into a, a sentence what's the secret sauce? I, >>I, I think, you know, an amazing founding engineering team, uh, number one, I mean, at the end of the day, you have to build an amazing product and you have to solve a problem in a different way. And we've got great long term investors. And, and the biggest thing our investors give is actually it's not just money. It gives us time to get the product, right. Because if we get the product right, then we can get the growth. >>Got it. Final question. Why I got you here? You've been on the enterprise business for a long time. What's the buyer landscape out there. You got people doing POCs on capital one scale. So we know that goes on. What's the appetite at the buyer side for startups and what are their requirements that you're seeing? Uh, obviously we're seeing people go in and dip into the startup pool because new ways to refactor their business restructure. So a lot happening in cloud. What's the criteria. How are enterprises engaging in with startups? >>Yeah. I mean, enterprises, they know they've gotta spend money transforming the business. I mean, this was, I almost feel like my old Dell or EMC self there, but, um, what, what we were saying five years ago is happening. Um, everybody needs to figure out out a way to take their, this to this digital world. Everybody has to do it. So the nice thing from a startup standpoint is they know at times they need to risk or, or take a bet on new technology in order to, to help them do that. So I think you've got buyers that a have money, uh, B prepared to take risks and it's, it's a race against time to, you know, get their, their offerings in this. So a new digital footprint, >>Final, final question. What's the state of AWS. Where do you see them going next? Obviously they're continuing to be successful. How does cloud 3.0, or they always say it's day one, but it's more like day 10. Uh, but what's next for Aw. Where do they go from here? Obviously they're doing well. They're getting bigger and bigger. >>Yeah. They're, they're, it's an amazing story. I mean, you know, we we're, we're on AWS as well. And so I, I think if they keep nurturing the builders in the ecosystem, then that is their superpower. They, they have an early leads. And if you look at where, you know, maybe the likes of Microsoft lost the plot in the, in the late it was, they stopped, uh, really caring about developers and the folks who were building on top of their ecosystem. In fact, they started buying up their ecosystem and competing with people in their ecosystem. And I see with AWS, they, they have an amazing head start and if they did more, you know, if they do more than that, that's, what's gonna keep the jut rolling for many years to come. Yeah, >>They got the silicone and they got the staff act, developing Jeremy Burton inside the cube, great resource for commentary, but also founding with the CEO of a company called observing in the middle of all the action on the board of snowflake as well. Um, great start. Thanks for coming on the cube. >>Always a pleasure. >>Okay. Live from San Francisco to cube. I'm John for your host. Stay with us more coverage from San Francisco, California after the short break. >>Hello. Welcome back to the cubes coverage here live in San Francisco, California. I'm John furrier, host of the cubes cube coverage of AWS summit 2022 here in San Francisco. We're all the developers of the bay area at Silicon valley. And of course, AWS summit in New York city is coming up in the summer. We'll be there as well. SF and NYC cube coverage. Look for us. Of course, reinforcing Boston and re Mars with the whole robotics AI thing, all coming together. Lots of coverage stay with us today. We've got a great guest from Deibel VC. John Skoda, founding partner, entrepreneurial venture is a venture firm. Your next act, welcome to the cube. Good to see you. >>Good to see you, Matt. I feel like it's been forever since we've been able to do something in person. Well, >>I'm glad you're here because we run into each other all the time. We've known each other for over a decade. Um, >><affirmative>, it's been at least 10 years now, >>At least 10 years more. And we don't wanna actually go back as frees back, uh, the old school web 1.0 days. But anyway, we're in web three now. So we'll get to that in >>Second. We, we are, it's a little bit of a throwback to the path though, in my opinion, >><laugh>, it's all the same. It's all distributed computing and software. We ran each other in cube con you're investing in a lot of tech startup founders. Okay. This next level, next gen entrepreneurs have a new makeup and it's software. It's hardcore tech in some cases, not hardcore tech, but using software is take old something old and make it better, new, faster. <laugh>. So tell us about Deibel what's the firm. I know you're the founder, uh, which is cool. What's going on. Explain >>What you're doing. I mean, you remember I'm a recovering entrepreneur, right? So of course I, I, I, >>No, you're never recovering. You're always entrepreneur >>Always, but we are also always recovering. So I, um, started my first company when I was 24. If you remember, before there was Facebook and friends, there was instant messaging. People were using that product at work every day, they were creating a security vulnerability between their network and the outside world. So I plugged that hole and built an instant messaging firewall. It was my first company. The company was called, I am logic and we were required by Symantec. Uh, then spent 12 years investing in the next generation of our companies, uh, early investor in open source companies and cloud companies and spent a really wonderful 12 years, uh, at a firm called NEA. So I, I feel like my whole life I've been either starting enterprise software companies or helping founders start enterprise software companies. And I'll tell you, there's never been a better time than right now to start enter price software company. >>So, uh, the passion for starting a new firm was really a recognition that founders today that are starting in an enterprise software company, they, they tend to be, as you said, a more technical founder, right? Usually it's a software engineer or a builder mm-hmm <affirmative>, uh, they are building products that are serving a slightly different market than what we've traditionally seen in enterprise software. Right? I think traditionally we've seen it buyers or CIOs that have agendas and strategies, which, you know, purchased software that has traditionally bought and sold tops down. But, you know, today I think the most successful enterprise software companies are the ones that are built more bottoms up and have more technical early opts. And generally speaking, they're free to use. They're free to try. They're very commonly community source or open source companies where you have a large technical community that's supporting them. So there's a, there's kind of a new normal now I think in great enterprise software. And it starts with great technical founders with great products and great and emotions. And I think there's no better place to, uh, service those people than in the cloud and uh, in, in your community. >>Well, first of all, congratulations, and by the way, you got a great pedigree and great background, super smart admire of your work and your, and, and your founding, but let's face it. Enterprise is hot because digital transformation is all companies. The is no, I mean, consumer is enterprise. Now everything is what was once a niche. No, I won't say niche category, but you know, not for the faint of heart, you know, investors, >>You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. But remember, like right now, there's also a giant tech in VC conference in Miami <laugh> it's covering cryptocurrencies and FCS and web three. So I think beauty is definitely in the eye of the beholder <laugh> but no, I, I will tell you, >>Ts is one big enterprise, cuz you gotta have imutability you got performance issues. You have, I IOPS issues. Well, and, >>And I think all of us here that are, uh, maybe students of history and have been involved in, open in the cloud would say that we're, you know, much of what we're doing is, uh, the predecessors of the web web three movement. And many of us I think are contributors to the web three movement. >>The hype is definitely that three. >>Yeah. But, but >>You know, for >>Sure. Yeah, no, but now you're taking us further east to Miami. So, uh, you know, look, I think, I, I think, um, what is unquestioned with the case now? And maybe it's, it's more obvious the more time you spend in this world is this is the fastest growing part of enterprise software. And if you include cloud infrastructure and cloud infrastructure spend, you know, it is by many men over, uh, 500 billion in growing, you know, 20 to 30% a year. So it it's a, it's a just incredibly fast, >>Let's getting, let's get into some of the cultural and the, the shifts that are happening, cuz again, you, you have the luxury of being in enterprise when it was hard, it's getting easier and more cooler. I get it and more relevant, but it's also the hype of like the web three, for instance. But you know, uh, um, um, the CEO snowflake, okay. Has wrote a book and Dave Valenti and I were talking about it and uh, Frank Luman has says, there's no playbooks. We always ask the CEOs, what's your playbook. And he's like, there's no playbook, situational awareness, always Trump's playbooks. So in the enterprise playbook, oh, higher direct sales force and SAS kind of crushed the, at now SAS is being redefined, right. So what is SAS? Is snowflake a SAS or is that a platform? So again, new unit economics are emerging, whole new situation, you got web three. So to me there's a cultural shift, the young entrepreneurs, the, uh, user experience, they look at Facebook and say, ah, you know, they own all my data. You know, we know that that cliche, um, they, you know, the product. So as this next gen, the gen Z and the millennials come in and our customers and the founders, they're looking at things a little bit differently and the tech better. >>Yeah. I mean, I mean, I think we can, we can see a lot of commonalities across all successful startups and the overall adoption of technology. Uh, and, and I would tell you, this is all one big giant revolution. I call it the user driven revolution. Right. It's the rise of the user. Yeah. And you might say product like growth is currently the hottest trend in enterprise software. It's actually user like growth, right. They're one in the same. So sometimes people think the product, uh, is what is driving. You >>Just pull the >>Product through. Exactly, exactly. And so that's that I, that I think is really this revolution that you see, and, and it does extend into things like cryptocurrencies and web three and, you know, sort of like the control that is taken back by the user. Um, but you know, many would say that, that the origins of this movement maybe started with open source where users were, are contributors, you know, contributors, we're users and looking back decades and seeing how it, how it fast forward to today. I think that's really the trend that we're all writing and it's enabling these end users. And these end users in our world are developers, data engineers, cybersecurity practitioners, right. They're really the users. And they're really the, the beneficiaries and the most, you know, kind of valued people in >>This. I wanna come back to the data engineers in a second, but I wanna make a comment and get your reaction to, I have a, I'm a GenXer technically, so for not a boomer, but I have some boomer friends who are a little bit older than me who have, you know, experienced the sixties. And I've, I've been staying on the cube for probably about eight years now that we are gonna hit a digital hippie revolution, meaning a rebellion against in the sixties was rebellion against the fifties and the man and, you know, summer of love. That was a cultural differentiation from the other one other group, the predecessors. So we're kind of having that digital moment now where it's like, Hey boomers, Hey people, we're not gonna do that anymore. We hate how you organize shit. >>Right. But isn't this just technology. I mean, isn't it, isn't it like there used to be the old adage, like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would get fired if you bought IBM. And I mean, it's just like the, the, I think, I think >>It's the main for days, those renegades were breaking into Stanford, starting the home brew club. So what I'm trying to get at is that, do you see the young cultural revolution also, culturally, just, this is my identity NFTs to me speak volumes about my, I wanna associate with NFTs, not single sign on. Well, >>Absolutely. And, and I think like, I think you're hitting on something, which is like this convergence of, of, you know, societal trends with technology trends and how that manifests in our world is yes. I think like there is unquestionably almost a religion around the way in which a product is built. Right. And we can use open source, one example of that religion. Some people will say, look, I'll just never try a product in the cloud if it's not open source. Yeah. I think cloud, native's another example of that, right? It's either it's, you know, it either is cloud native or it's not. And I think a lot of people will look at a product and say, look, you know, you were not designed in the cloud era. Therefore I just won't try you. And sometimes, um, like it or not, it's a religious decision, right? It's, it's something that people just believe to be true almost without, uh, necessarily. I mean >>The decision making, let me ask you this next question. As a VC. Now you look at pitch, well, you've made a VC for many years, but you also have the founder, uh, entrepreneurial mindset, but you can get empathize with the founders. You know, hustle is a big part of the, that first founder check, right? You gotta convince someone to part with their ch their money and the first money in which you do a lot of is about believing in the person. So fing, so you make, it is hard. Now you, the data's there, you either have it cloud native, you either have the adaption or traction. So honesty is a big part of that pitch. You can't fake it. Oh, >>AB absolutely. You know, there used to be this concept of like the persona of an entrepreneur, right. And the persona of the entrepreneur would be, you know, somebody who was a great salesperson or somebody who tell a great story. You, I still think that that's important, right? It still is a human need for people to believe in narratives and stories. But having said that you're right, the proof is in the pudding, right? At some point you click download and you try the product and it does what it says it it's gonna do, or it doesn't, or it either stands up to the load test or it doesn't. And so I, I feel like in this new economy that we live in, it's a shift from maybe the storytellers and the creators to, to the builders, right. The people that know how to build great product. And in some ways the people that can build great product yeah. Stand out from the crowd. And they're the ones that can build communities around their products. And, you know, in some ways can, um, you know, kind of own more of the narrative because their products exactly >>The volume back to the user led growth. >>Exactly. And it's the religion of, I just love your product. Right. And I, I, I, um, Doug song was the founder of du security used to say, Hey, like, you know, the, the really like in today's world of like consumption based software, the user is only gonna give you 90 seconds to figure out whether or not you're a company that's easy to do business with. Right. And so you can say, and do all the things that you want about how easy you are to work with. But if the product isn't easy to install, if it's not easy to try, if it's not, if, if the, you know, it's gotta speak to >>The, speak to the user, but let me ask a question now that the people watching who are maybe entrepreneurial entrepreneur, um, masterclass here is in session. So I have to ask you, do you prefer, um, an entrepreneur to come in and say, look at John. Here's where I'm at. Okay. First of all, storytelling's fine. Whether you're an extrovert or introvert, have your style, sell the story in a way that's authentic, but do you, what do you prefer to say? Here's where I'm at? Look, I have an idea. Here's my traction. I think here's my MVP prototype. I need help. Or do you wanna just see more stats? What's the, what's the preferred way that you like to see entrepreneurs come in and engage, engage? >>There's tons of different styles, man. I think the single most important thing that every founder should know is that we, we don't invest in what things are today. We invest in what we think something will become. Right. And I think that's why we all get up in the morning and try to build something different, right? It's that we see the world a different way. We want it to be a different way, and we wanna work every single moment of the day to try to make that vision a reality. So I think the more that you can show people where you want to be, the more likely somebody is gonna align with your vision and, and want to invest in you and wanna be along for the ride. So I, I wholeheartedly believe in showing off what you got today, because eventually we all get down to like, where are we and what are we gonna do together? But, um, no, I >>Show >>The path. I think the single most important thing for any founder and VC relationship is that they have the same vision, uh, have the same vision. You can, you can get through bumps in the road, you can get through short term spills. You can all sorts of things in the middle of the journey can happen. Yeah. But it doesn't matter as much if you share the same long term vision, >>Don't flake out and, and be fashionable with the latest trends because it's over before you can get there. >>Exactly. I think many people that, that do what we do for a living will say, you know, ultimately the future is relatively easy to predict, but it's the timing that's impossible to predict. So you, you know, you sort of have to balance the, you know, we, we know that the world is going this way and therefore we're gonna invest a lot of money to try to make this a reality. Uh, but sometimes it happens in six months. Sometimes it takes six years is sometimes like 16 years. >>Uh, what's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at right now with Desel partners, Tebel dot your site. What's the big wave. What's your big >>Wave. There, there's three big trends that we invest in. And they're the, they're the only things we do day in, day out. One is the explosion and open source software. So I think many people think that all software is unquestionably moving to an open source model in some form or another yeah. Tons of reasons to debate whether or not that is gonna happen and on what timeline happening >>Forever. >>But it is, it is accelerating faster than we've ever seen. So I, I think it's, it's one big, massive wave that we continue to ride. Um, second is the rise of data engineering. Uh, I think data engineering is in and of itself now, a category of software. It's not just that we store data. It's now we move data and we develop applications on data. And, uh, I think data is in and of itself as big of a, a market as any of the other markets that we invest in. Uh, and finally, it's the gift that keeps on giving. I've spent my entire career in it. We still feel that security is a market that is under invested. It is, it continues to be the place where people need to continue to invest and spend more money. Yeah. Uh, and those are the three major trends that we run >>And security, you think we all need a dessert do over, right? I mean, do we need a do over in security or is what's the core problem? I, >>I, I keep using this word underinvested because I think it's the right way to think about the problem. I think if you, I think people generally speaking, look at cyber security as an add-on. Yeah. But if you think about it, the whole economy is moving online. And so in, in some ways like security is core to protecting the digital economy. And so it's, it shouldn't be an afterthought, right? It should be core to what everyone is doing. And that's why I think relative to the trillions of dollars that are at stake, uh, I believe the market size for cybersecurity is around 150 billion. And it still is a fraction of what we're, what >>We're and security even boom is booming now. So you get the convergence of national security, geopolitics, internet digital >>That's right. You mean arguably, right? I mean, arguably again, it's the area of the world that people should be spending more time and more money given what to stake. >>I love your thesis. I gotta, I gotta say, you gotta love your firm. Love. You're doing we're big supporters of your mission. Congratulations on your entrepreneurial venture. And, uh, we'll be, we'll be talking and maybe see a Cub gone. Uh, >>Absolutely. >>Certainly EU maybe even north America's in Detroit this year. >>Huge fan of what you guys are doing here. Thank you so much for having me on >>The show. Guess bell VC Johnson here on the cube. Check him out. Founder for founders here on the cube, more coverage from San Francisco, California. After the short break, stay with us. Everyone. Welcome to the queue here. Live in San Francisco, California for AWS summit, 2022 we're live we're back with the events. Also we're virtual. We got hybrid all kinds of events. This year, of course, 80% summit in New York city is happening this summer. We'll be there with the cube as well. I'm John. Again, John host of the cube got a great guest here. Justin Coby owner and CEO of innovative solutions. Their booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, uh, off camera about some of the work you're doing. You're the owner of and CEO. Yeah. Of innovative. Yeah. So tell us a story. What do you guys do? What's the elevator pitch. >>Yeah. <laugh> so the elevator pitch is we are, uh, a hundred percent focused on small to midsize businesses that are moving into the cloud or have already moved to the cloud and really trying to understand how to best control, cost, security, compliance, all the good stuff, uh, that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is, but now we have offices down in Austin, Texas up in Toronto, uh, key Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago and it's been a great ride. It >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by AWS. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demands coming from cloud migrations and application modernization and obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? >>Yeah. It's a great question. Every CEO I talk to, that's a small to midsize business. They're trying to understand how to leverage technology. It better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech ISNT really at the, at the forefront and the center of that. So most customers are coming to us and they're like, listen, we gotta move to the cloud or we move some things to cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then, uh, progressively working through a modernization strateg, always the better approach. And so we spend a lot of time with small to midsize businesses who don't have the technology talent on staff to be able to do >>That. Yeah. They want get set up. But then the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off happening around everywhere. It is. And it's not, it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more IOT devices. What's that like right now from a challenge and problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem you guys solve >>In the SMB space? The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and are hardened solutions. And so, um, what we try to do with technology staff that has traditional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I talk to, yeah, they're like, listen, the end of the day, I'm gonna be spending money in one place or another, whether that's OnPrem or in the cloud. I just want to know that I'm doing that in a way that helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is, is no. No. >>Good. How about factoring in the, the agility and speed equation? Does that come up a lot? It >>Does. I think, um, I, there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time. Yeah. In the cloud, if you start down your journey in one way and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's gives you a much higher density for making decisions and failing >>Forward. Well actually shutting down the abandoning the projects that early and not worrying about it, you got it. I mean, most people don't abandon cause like, oh, I own it. >>Exactly. And >>They get, they get used to it. Like, and then they wait too long. >>That's exactly. Yeah. >>Frog and boiling water as we used to say. So, oh, it's a great analogy. So I mean, this is a dynamic that's interesting. I wanna get more thoughts on it because like I'm a, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you, I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talked to at reinvent, that's a customer. Well, how many announcements did am jazzy announce or Adam, you know, the 5,000 announcement or whatever. They do huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just processes. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are, >>What's the values. >>Our mission is, is very simple. We want to help every small to midsize business leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we go to market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a tech company in the process of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your, or it department to make all those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our managed services. Meaning they know that we have their back Andre or the safety net. So when a customer is saying, all right, I'm gonna spend a couple thousand dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going in alone. Who's there to help protect that. Number two, if you have a security posture and let's just say you're high profile and you're gonna potentially be more vulnerable to security attack. If you have a partner, that's all offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products, uh, that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own. It, it would cost 'em a fortune. If >>Training alone would be insane, a factor and the cost. Yes, absolutely. Opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. Yeah. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 2018, when, uh, when we made the decision to go all in on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious decision. It wasn't requirement and still isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front desk >>And she could be running the Kubernetes clusters. I love it. It's amazing. >>But I'll tell you what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get >>The right people involved. And that's a cultural factor that you guys have. So, so again, this is back to my whole point about SMBs and businesses in general, small en large, it staffs are turning over the gen Z and millennials are in the workforce. They were provisioning top of rack switches. Right. First of all. And so if you're a business, there's also the, I call the build out, um, uh, return factor, ROI piece. At what point in time as an owner or SMB, do I get the ROI? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cybersecurity issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one and the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are >>Critical issues. This >>Is just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about. So that's, >>That's what, at least a million in bloating, if not three or more Just to get that going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side though. Yeah. No. And nevermind AI and ML. That's >>Right. That's right. So to try to go it alone, to me, it's hard. It it's incredibly difficult. And, and the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll >>Do all that >>Exactly. In it department. >>Exactly. >>Like, can we just call up, uh, you know, <laugh> our old vendor. That's >>Right. <laugh> right. Our old vendor. I like it, but that's so true. I mean, when I think about how, if I was a business owner, starting a business to today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around that is, is very important. And it's something that we talk about every, with every one of our small to midsize business. >>So just, I want to get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative award winning guys doing great. Uh, great bet on a good call. Yeah. Things are good. Tell your story. What's your journey? >>It's real simple. I was, uh, was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportunity with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduce other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. And I came in, I did an internship for six months and I loved it. I learned more in those six months that I probably did in my first couple of years at, uh, at R I T long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, sales process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2010 and I was like, Hey, I'm growing the value of this business. And who knows where you guys are gonna be another five years? What do you think about making me an owner? And they were like, listen, you got long ways before you're gonna be an owner, but if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that we're gonna also buy the business with >>Me. And they were the owners, no outside capital, >>None zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons. They all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like if we're owners, we're gonna have to like cover that stuff. <laugh> so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015, and, uh, we made the decision that I was gonna buy the three partners out, um, go through an earn out process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the business, cuz they care very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be? We had built this company to this point. Yeah. And, uh, and by 2018 we knew that pivoting all going all in on the cloud was important for us and we haven't looked back. >>And at that time, the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly the, uh, and those kinds of big enterprises. The game don't, won't say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to midsize business, to migrate completely to the cloud as, as infrastructure was considered. That just didn't happen as often. Um, what we were seeing were a lot of our small to midsize business customers, they wanted to leverage cloud based backup, or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration. The, the Microsoft suite to the cloud and a lot of 'em dipped their toe in the water. But by 2017 we knew infrastructure was around the corner. Yeah. And so, uh, we only had two customers on eight at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is the app modernization? Is it data? What's the hot product and then put a plug in for the company. Awesome. >>So, uh, there's no question. Every customer is looking to migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. So any SMB that's thinking about migrating to the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customers not to be cash strapped and gives them an opportunity to move forward in a controlled, contained way so that they can modernize. >>So like insurance, basically for them not insurance class in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers, empathetic to where they are in their journey. And >>That's the cloud upside is all about doubling down on the variable wind. That's right. Seeing the value and doubling down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate it. Thank >>You very much for having >>Me. Okay. This is the cube coverage here live in San Francisco, California for AWS summit, 2022. I'm John for your host. Thanks for watching with back with more great coverage for two days after this short break >>Live on the floor in San Francisco for 80 west summit, I'm John ferry, host of the cube here for the next two days, getting all the action we're back in person. We're at AWS reinvent a few months ago. Now we're back events are coming back and we're happy to be here with the cube, bringing all the action. Also virtual, we have a hybrid cube, check out the cube.net, Silicon angle.com for all the coverage. After the event. We've got a great guest ticketing off here. Matthew Park, director of solutions, architecture with innovation solutions. The booth is right here. Matthew, welcome to the cube. >>Thank you very much. I'm glad >>To be here. So we're back in person. You're from Tennessee. We were chatting before you came on camera. Um, it's great to have to be back through events. >>It's amazing. This is the first, uh, summit I've been to and what two, three years. >>It's awesome. We'll be at the, uh, New York as well. A lot of developers and a big story this year is as developers look at cloud going distributed computing, you got on premises, you got public cloud, you got the edge. Essentially the cloud operations is running everything dev sec ops, everyone kind of sees that you got containers, you got Kubernetes, you got cloud native. So the, the game is pretty much laid out. Mm. And the edge is with the actions you guys are number one, premier partner at SMB for edge. >>That's right. >>Tell us about what you guys doing at innovative and, uh, what you do. >>That's right. Uh, so I'm the director of solutions architecture. Uh, me and my team are responsible for building out the solutions that are around, especially the edge public cloud out for us edge is anything outside of an AWS availability zone. Uh, we are deploying that in countries that don't have AWS infrastructure in region. They don't have it. Uh, give >>An example, >>Uh, example would be Panama. We have a customer there that, uh, needs to deploy some financial tech data and compute is legally required to be in Panama, but they love AWS and they want to deploy AWS services in region. Uh, so they've taken E EKS anywhere. We've put storage gateway and, uh, snowball, uh, in region inside the country and they're running their FinTech on top of AWS services inside Panama. >>You know, what's interesting, Matthew is that we've been covering Aw since 2013 with the cube about their events. And we watched the progression and jazzy was, uh, was in charge and then became the CEO. Now Adam Slosky is in charge, but the edge has always been that thing they've been trying to, I don't wanna say, trying to avoid, of course, Amazon would listen to customers. They work backwards from the customers. We all know that. Uh, but the real issue was they were they're bread and butters EC two and S three. And then now they got tons of services and the cloud is obviously successful and seeing that, but the edge brings up a whole nother level. >>It does >>Computing. It >>Does. >>That's not central lies in the public cloud. Now they got regions. So what is the issue with the edge what's driving? The behavior. Outpost came out as a reaction to competitive threats and also customer momentum around OT, uh, operational technologies. And it merging. We see with the data at the edge, you got five GM having. So it's pretty obvious, but there was a slow transition. What was the driver for the <affirmative> what's the driver now for edge action for AWS >>Data is the driver for the edge. Data has gravity, right? And it's pulling compute back to where the customer's generating that data and that's happening over and over again. You said it best outpost was a reaction to a competitive situation. Whereas today we have over fit 15 AWS edge services, and those are all reactions to things that customers need inside their data centers on location or in the field like with media companies. >>Outpost is interesting. We always used to riff on the cube, uh, cuz it's basically Amazon in a box, pushed in the data center, uh, running native, all the stuff, but now cloud native operations are kind of become standard. You're starting to see some standard Deepak sings group is doing some amazing work with open source Rauls team on the AI side, obviously, uh, you got SW who's giving the keynote tomorrow. You got the big AI machine learning big part of that edge. Now you can say, okay, outpost, is it relevant today? In other words, did outpost do its job? Cause EKS anywhere seems to be getting a lot of momentum. You see low the zones, the regions are kicking ass for Amazon. This edge piece is evolving. What's your take on EKS anywhere versus say outpost? >>Yeah, I think outpost did its job. It made customers that were looking at outpost really consider, do I wanna invest in this hardware? Do I, do I wanna have, um, this outpost in my data center, do I wanna manage this over the long term? A lot of those customers just transitioned to the public cloud. They went into AWS proper. Some of those customers stayed on prem because they did have use cases that were, uh, not a good fit for outpost. They weren't a good fit. Uh, in the customer's mind for the public AWS cloud inside an availability zone. Now what's happening is as AWS is pushing these services out and saying, we're gonna meet you where you are with 5g. We're gonna meet you where you are with wavelength. We're gonna meet you where you are with EKS anywhere. Uh, I think it has really reduced the amount of times that we have conversations about outposts and it's really increased. We can deploy fast. We don't have to spin up outpost hardware. We can go deploy EKS anywhere in your VMware environment and it's increasing the speed of adoption >>For sure. So you guys are making a lot of good business decisions around managed cloud service. Innovative does that. You have the cloud advisory, the classic professional services for the specific edge piece and, and doing that outside of the availability zones and regions for AWS, um, customers in, in these new areas that you're helping out are they want cloud, like they want to have modernization a modern applications. Obviously they got data machine learning and AI, all part of that. What's the main product or, or, or gap that you're filling for AWS, uh, outside of their available ability zones or their regions that you guys are delivering. What's the key is it. They don't have a footprint. Is it that it's not big enough for them? What's the real gap. What's why, why are you so successful? >>So what customers want when they look towards the cloud is they want to focus on, what's making them money as a business. They wanna focus on their applications. They want focus on their customers. So they look towards AWS cloud and say, AWS, you take the infrastructure. You take, uh, some of the higher layers and we'll focus on our revenue generating business, but there's a gap there between infrastructure and revenue generating business that innovative slides into, uh, we help manage the AWS environment. We help build out these things in local data centers for 32 plus year old company, we have traditional on-premises people that know about deploying hardware that know about deploying VMware to host EKS anywhere. But we also have most of our company totally focused on the AWS cloud. So we're filling that gap in helping deploy these AWS services, manage them over the long term. So our customers can go to just primarily and totally focusing on their revenue generating business. >>So basically you guys are basically building AWS edges, >>Correct? >>For correct companies, correct? Mainly because the, the needs are there, you got data, you got certain products, whether it's, you know, low latency type requirements, right. And then they still work with the regions, right. It's all tied together, right. Is that how it works? Right. >>And, and our customers, even the ones in the edge, they also want us to build out the AWS environment inside the availability zone, because we're always gonna have a failback scenario. If we're gonna deploy FinTech in the Caribbean, we're gonna talk about hurricanes and gonna talk about failing back into the AWS availability zones. So innovative is filling that gap across the board, whether it be inside the AWS cloud or on the AWS edge. >>All right. So I gotta ask you on the, since you're at the edge in these areas, I won't say underserved, but developing areas where now have data, you have applications that are tapping into that, that requirement. It makes total sense. We're seeing across the board. So it's not like it's, it's an outlier it's actually growing. Yeah. There's also the crypto angle. You got the blockchain. Are you seeing any traction at the edge with blockchain? Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech in, in the islands. There are a lot of, lot of, lot of web three happening. What's your, what's your view on the web three world right now, relative >>To we, we have some customers actually deploying crypto, especially, um, especially in the Caribbean. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers that are deploying crypto. A lot of, uh, countries are choosing crypto underly parts of their central banks. Yeah. Um, so it's, it's up and coming. Uh, I, I have some, you know, personal views that, that crypto is still searching for a use case. Yeah. And, uh, I think it's searching a lot and, and we're there to help customers search for that use case. Uh, but, but crypto, as a, as a tech technology, um, lives really well on the AWS edge. Yeah. Uh, and, and we're having more and more people talk to us about that. Yeah. And ask for assistance in the infrastructure because they're developing new cryptocurrencies every day. Yeah. It's not like they're deploying Ethereum or anything specific. They're actually developing new currencies and, and putting them out there on it's >>Interesting. And I mean, first of all, we've been doing crypto for many, many years. We have our own little, um, you know, projects going on. But if you look talk to all the crypto people that say, look, we do a smart contract, we use the blockchain. It's kind of over a lot of overhead. It's not really their technical already, but it's a cultural shift, but there's underserved use cases around use of money, but they're all using the blockchain, just for this like smart contracts for instance, or certain transactions. And they go into Amazon for the database. Yeah. <laugh> they all don't tell anyone we're using a centralized service, but what happened to decent centralized. >>Yeah. And that's, and that's the conversation performance. >>Yeah. >>And, and it's a cost issue. Yeah. And it's a development issue. Um, so I think more and more as, as some of these, uh, currencies maybe come up, some of the smart contracts get into, uh, they find their use cases. I think we'll start talking about how does that really live on, on AWS and, and what does it look like to build decentralized applications, but with AWS hardware and services. >>Right. So take me through a, a use case of a customer, um, Matthew around the edge. Okay. So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. I want to modernize my business. And I got my developers that are totally peaked up on cloud. Um, but we've identified that it's just a lot of overhead latency issues. I need to have a local edge and serve my a and I also want all the benefits of the cloud. So I want the modernization and I wanna migrate to the cloud for all those cloud benefits and the good this of the cloud. What's the answer. Yeah. >>Uh, big thing is, uh, industrial manufacturing, right? That's, that's one of the best use cases, uh, inside industrial manufacturing, we can pull in many of the AWS edge services we can bring in, uh, private 5g, uh, so that all the, uh, equipment inside that, that manufacturing plant can be hooked up. They don't have to pay huge overheads to deploy 5g it's, uh, better than wifi for the industrial space. Um, when we take computing down to that industrial area, uh, because we wanna do pre-procesing on the data. Yeah. We want to gather some analytics. We deploy that with, uh, regular commercially available hardware running VMware, and we deploy EKS anywhere on that. Uh, inside of that manufacturing plant, uh, we can do pre-processing on things coming out of the, uh, the robotics that depending on what we're manufacturing, right. Uh, and then we can take the, those refined analytics and for very low cost with maybe a little bit longer latency transmit those back, um, to the AWS availability zone, the, the standard >>For data lake or whatever, >>To the data lake. Yeah. Data Lakehouse, whatever it might be. Um, and we can do additional data science on that once it gets to the AWS cloud. Uh, but I'll lot of that, uh, just in time business decisions, just in time, manufacturing decisions can all take place on an AWS service or services inside that manufacturing plant. And that's, that's one of the best use cases that we're >>Seeing. And I think, I mean, we've been seeing this on the queue for many, many years, moving data around is very expensive. Yeah. But also compute going of the data that saves that cost yep. On the data transfer also on the benefits of the latency. So I have to ask you, by the way, that's standard best practice now for the folks watching don't move the data unless you have to. Um, but those new things are developing. So I wanna ask you, what new patterns are you seeing emerging once this new architecture's in place? Love that idea, localize everything right at the edge, manufacture, industrial, whatever the use case, retail, whatever it is. Right. But now what does that change in the, in the core cloud? There's a, there's a system element here. Yeah. What's the new pattern. There's >>Actually an organizational element as well, because once you have to start making the decision, do I put this compute at the point of use or do I put this compute in the cloud? Uh, now you start thinking about where business decisions should be taking place. Uh, so not only are you changing your architecture, you're actually changing your organization because you're thinking, you're thinking about a dichotomy you didn't have before. Uh, so now you say, okay, this can take place here. Uh, and maybe, maybe this decision can wait. Yeah. Uh, and then how do I visualize that? By >>The way, it could be a bot tube doing the work for management. Yeah. <laugh> exactly. You got observability going, right. But you gotta change the database architecture in the back. So there's new things developing. You've got more benefit. There >>Are, there are. And, and we have more and more people that, that want to talk less about databases and want to talk more about data lakes because of this. They want to talk more about out. Customers are starting to talk about throwing away data, uh, you know, for the past maybe decade. Yeah. It's been store everything. And one day we will have a data science team that we hire in our organization to do analytics on this decade of data. And well, >>I mean, that's, that's a great point. We don't have time to drill into, maybe we do another session on this, but the one pattern we're seeing of the past year is that throwing away data's bad, even data lakes that so-called turn into data swamps, actually, it's not the case. You look at data, brick, snowflake, and other successes out there. And even time series data, which may seem irrelevant efforts over actually matters when people start retraining their machine learning algorithms. Yep. So as data becomes code, as we call it in our last showcase, we did a whole whole event on this. The data's good in real time and in the lake. Yeah. Because the iteration of the data feeds the machine learning training. Things are getting better with the old data. So it's not throw it away. It's not just business better. Yeah. There's all kinds of new scale. >>There are. And, and we have, uh, many customers that are running pay Toby level. Um, they're, they're essentially data factories on, on, uh, on premises, right? They're, they're creating so much data and they're starting to say, okay, we could analyze this, uh, in the cloud, we could transition it. We could move Aytes of data to the AWS cloud, or we can run, uh, computational workloads on premises. We can really do some analytics on this data transition, uh, those high level and sort of raw analytics back to AWS run 'em through machine learning. Um, and we don't have to transition 10, 12 petabytes of data into AWS. >>So I gotta end the segment on a, on a kind of a, um, fun note. I was told to ask you about your personal background, OnPrem architect, Aus cloud, and skydiving instructor. <laugh> how does that all work together? What tell, what does this mean? Yeah. >>Uh, you >>Jumped out a plane and got a job. You got a customer to jump out >>Kind of. So I was, you jumped out. I was teaching having, uh, before I, before I started in the cloud space, this was 13, 14 years ago. I was a, I still am a sky. I instructor, uh, I was teaching skydiving and I heard out of the corner of my ear, uh, a guy that owned an MSP that was lamenting about, um, you know, storing data and, and how his customers are working. And he can't find an enough people to operate all these workloads. So I walked over and said, Hey, this is, this is what I went to school for. Like, I'd love to, you know, uh, I was living in a tent in the woods, teaching skydiving. I was like, I'd love to not live in a tent in the woods. So, uh, uh, I started and the first day there, uh, we had a, a discussion, uh, EC two had just come out <laugh> and, uh, like, >>This is amazing. >>Yeah. And so we had this discussion, we should start moving customers here. And, uh, and that totally revolutionized that business, um, that, that led to, uh, that that guy actually still owns a skydiving airport. But, um, but through all of that, and through being in on premises, migrated me and myself, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, now let's take what we learned in the cloud and, and apply those lessons and those services tore >>It's. So it's such a great story, you know, was gonna, you know, you know, the whole, you know, growth mindset pack your own parachute, you know, uh, exactly. You know, the cloud in the early days was pretty much will the shoot open. Yeah. It was pretty much, you had to roll your own cloud at that time. And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. >>And so was Kubernetes by the way, 2015 or so when, uh, when that was coming out, it was, I mean, it was, it was still, and maybe it does still feel like that to some people. Right. But, uh, it was, it was the same kind of feeling that we had in the early days of AWS, the same feeling we have when we >>It's now with you guys, it's more like a tandem jump. Yeah. You know, but, but it's a lot of, lot of this cutting edge stuff, like jumping out of an airplane. Yeah. You got the right equipment. You gotta do the right things. Exactly. >>Right. >>Yeah. Thanks for coming. You really appreciate it. Absolutely great conversation. Thanks for having me. Okay. The cubes here live in San Francisco for eight of us summit. I'm John for host of the cube. Uh, we'll be at a summit in New York coming up in the summer as well. Look up for that. Look up this calendar for all the cube, actually@thecube.net. We'll right back with our next segment after this break. >>Okay. Welcome back everyone to San Francisco live coverage here, we're at the cube a be summit 2022. We're back in person. I'm John fury host of the cube. We'll be at the eighties summit in New York city this summer, check us out then. But right now, two days in San Francisco, getting all the coverage what's going on in the cloud, we got a cube alumni and friend of the cube, my dos car CEO, investor, a Sierra, and also an investor in a bunch of startups, angel investor. Gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see you. Cool. How are you? Good. >>How hello you. >>So congratulations on all your investments. Uh, you've made a lot of great successes, uh, over the past couple years, uh, and your company raising, uh, some good cash as Sarah. So give us the update. How much cash have you guys raised? What's the status of the company product what's going on? >>First of all, thank you for having me. We're back to be business with you, never after to see you. Uh, so is a company started around four years back. I invested with a few of the investors and now I'm the CEO there. We have raised close to a hundred million there. The investors are people like Norwes Menlo ventures, coastal ventures, Ram Shera, and all those people, all well known guys. And Beckel chime Paul me Mayard web. So whole bunch of operating people and, uh, Silicon valley VCs are involved >>And has it gone? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISRA is going after is what I call the applying AI for customer service. It operations, it help desk, uh, the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and service now to take you to the next stage? Well, >>I love having you on the cube, Dave and I, Dave LAN as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a, you're like a guest analyst. <laugh> >>You know, who does >>You, >>You >>Get the call fund to talk to you though. You >>Get the commentary, your, your finger in the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase it. Isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud scale. You predicted that we talked about in the cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing Docker just raised a hundred million on a $2 billion valuation back from the dead after they pivoted from enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control plan? Emerging AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded, observability there's 10 billion observability companies. Data is the key. This is what's your end on this. What's your take. >>Yeah, look, I think I'll give you the few that I see right from my side. Obviously data is very clear. So the things that rumor system of recorded you and me talked about the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud native, it'll be called AI. NA AI enable is a new buzzword and using the AI for customer service. It, you talk about observability. I call it, AIOps applying AOPs for good old it operation management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events insurance. So I see a lot of work clicking for AIOps and AI services. What used to be desk with ServiceNow BMC GLA you see a new ALA emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflows, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with AI workflows. So you, you see AI going >>Off is RPA. A company is AI, is RPA a feature of something bigger? Or can someone have a company on RPA UI S one will be at their event this summer? Um, is it a product company? I mean, or I mean, RPA is, should be embedded in everything. It's a >>Feature. It is very good point. Very, very good thinking. So one is, it's a category for sure. Like, as we thought, it's a category, it's an area where RPA may change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company also, but that automation should be embedded in every area. Yeah. Like we call cloud NATO and AI. They it'll become automation data. Yeah. And that's your, thinking's >>Interesting me. I think about the, what you're talking about what's coming to mind is I'm kinda having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it was middleware. It sat between two things and then the middle, and it was software abstraction. Now you have all kinds of workflows, abstractions everywhere. So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed. Are they integrated? I mean, these are the challenges. This is crazy. What's the, >>So remember the databases became called polyglot databases. Yeah. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area like you, you were talking about, it should be part of service. Now it should be part of ISRA. Like every company, every Salesforce. So that's why you see it MuleSoft and sales buying RPA companies. So you'll see all the SaaS companies, cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also have an automation as a layer embedded inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind, as you got the XPO hall got, um, we're back to vis, but you got, you know, AMD, Clum, Dynatrace data, dog, innovative, all the companies out here that we know, we interview them all. They're trying to be suppliers to this growing enterprise market. Right? Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Deibel later. He's a former NEA guy and we always talk to Jerry, Jen, we know all the, the VCs, what does the startups look like? What does the state of the, in your mind, cause you, I know you invest the entrepreneurial founder situation. Cloud's bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's code. Yes. Basically. Data's everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to, uh, two things that I'm seeing out there. Remember leaders of Amazon created the startups 15 years back. Everybody built on Amazon now, Azure and GCP. The next layer would be people don't just build on Amazon. They're going to build it on top of snow. Flake companies are snowflake becomes a data platform, right? People will build on snowflake, right? So I see my old boss playing ment, try to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer, right? So I think that's the next level of companies trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis a couple months ago called castles in the cloud where your moat is, what you do in the cloud. Not necessarily in the, in the IP. Um, Dave LAN and I had last re invent, coined the term super cloud, right? It's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldman S Sachs is doing. You're starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage. And guys like Charles Fitzgeral out there, who we like was kind of hitting on us saying, Hey, you guys terrible, they didn't get him. Like, yeah, I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. <laugh> cause he's cool. Um, but snowflake is on Amazon. Yes. Now they say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist and, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. >>It is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to build everything on Amazon where possible whatever is, I cannot build. I'll make the pass layer room. The middle layer pass will be snowflake. So I cannot build it on snowflake. I can use them for data layer if I really need to size, I'll build it on force.com Salesforce. Yeah. Right. So I think that's where you'll >>See. So basically the, the, if you're an entrepreneur, the, the north star in terms of the, the outcome is be a super cloud. It >>Is, >>That's the application on another big CapEx ride, the CapEx of AWS or cloud, >>And that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. Yeah. >>Yeah. How are, how is Amazon and the clouds dealing with these big whales, the snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think got Redshift. Amazon has got Redshift. Um, but snowflake big customer. The they're probably paying AWS big, >>I >>Think big bills too. >>So John, very good. Cause it's like how Netflix is and Amazon prime, right. Netflix runs on Amazon, but Amazon has Amazon prime that co-option will be there. So Amazon will have Redshift, but Amazon is also partnering with the snowflake to have native snowflake data warehouse as a data layer. So I think depending on the use case you have to use each of the above, I think snowflake is here for a long term. Yeah. Yeah. So if I'm building an application, I want to use snowflake then writing from stats. >>Well, I think that comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, you know, foreclose your value. That's right. With some sort of internal hack, but I've think, I think the general question that I have is that I think it's okay to have a super cloud like that because the rising tide is still happening at some point, when does the rising tide stop and the people shopping up their knives, it gets more competitive or is it just an infinite growth cycle? I >>Think it's growth. You call it closed skill you the word cloud scale. So I think look, cloud will continually agree, increase. I think there's as long as there more movement from on, uh, on-prem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations, it helpless. Even the customer service service. Now the ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So cloud ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go made. >>I wanna get your thoughts for the folks watching that are, uh, enterprise buyers are practitioners, not suppliers to the market. Feel free to text me or DMing. Next question is really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products. Cause you know, the big enterprises now and you know, small, medium, large, and large enterprise, they're all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between the startup selling to, or growing startup selling to an enterprise? Um, have you seen changes there? I mean seeing some stuff, but why don't we get your thoughts on that? What it >>Is you, if I remember going back to our 2007 or eight, when I used to talk to you back then when Amazon started very small, right? We are an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or one person today. Most companies are already spending 20, 30% with startups. Like if I look at a C I will line our business, it's gone. Yeah. Can it go more? I think it can double in the next four, five years. Yeah. Spending on the startups. Yeah. >>And check out, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want to get your reaction because I, I reference the URL causes like there's like a bunch of companies we've been promoting because the solution that startups have actually are new stuff. Yes. It's bending, it's shifting left for security or using data differently or um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there. Um, and goes back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona, you mentioned AIOps, we've been seeing AIOps IOPS booming and that's creating a new developer paradigm that's right. Which we call coin data as code data as code is like infrastructure as code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this data engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same thing? Do you agree? Um, do you disagree or can you share? >>I, a lot of thoughts that Fu I see the AI op solutions in the futures should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone there yet. Like I spend a lot of time with data dog, Cisco app dynamic, right? Dynatrace, all this solution will go future towards predict to pro so solution with AOPs. But what you bring up a very good point on the data side. I think like we have a Amazon marketplace and Amazon for startup, there should be data exchange where you want to create for AOPs and AI service that customers give the data, share the data because we thought the data algorithms are useless. I can give the best algorithm, but I gotta train them, modify them, make them better, make them better. Yeah. And I think their whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that area is very important. >>You've always been on, um, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to big data days back in 2009, you know that >>Look at, look how much data bricks has grown. >>It is doubled. The key cloud >>Air kinda went private, so good stuff. What are you working on right now? Give a, give a, um, plug for what you're working on. You'll still investing. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. So right. ISRA is my number one baby right now. So I'm looking year that growing customers and my customers, or some of them, you like it's zoom auto desk, McAfee, uh, grand <inaudible>. So all the top customers, um, mainly for it help desk customer service. AIOps those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What's what's their need? What category is it? >>I think they look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on, predict ours. One area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value problem. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service, >>Great stuff, man. Doing great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the cube. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of a us summit 2022. And we're gonna be at Aus summit in San, uh, in New York in the summer. So look for that on the calendar, of course, go to a us startups.com. That's a site for all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break. >>Okay. Welcome back everyone. This the cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back, little bit smaller footprint, a lot of hybrid events going on, but this is actually a physical event, a summit in new York's coming in the summer. We'll be two with the cube on the set. We're getting back in the Groove's psych to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're gonna see a lot of virtual cube outta hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economist with duck bill groove, he's the founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank you. >>Thanks. Coming on. Sure is a lot of words to describe is shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at mark, Andrew's been doing a lot of shit posting lately. All a billionaires are shit posting, but they don't know how to do it. They're >>Doing it right. There's something opportunity there. It's like, here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a mid-size island to begin doing this from, oh, then we're having fun. >>This shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on this side I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what, what is shitposting >>It's more or less talking about the world of enterprise technology, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream, but it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a Jack ass or more prosaically are worried about getting fired for better or worse. I don't have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, Cuban coming up in Spain, which they're having a physical event, you see the growth of cloud native Amazon's evolving Atos, especially new CEO. Andy move on to be the chief of all. Amazon just saw him the cover of was it time magazine. Um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything. These folks do. They're they're effectively in a fishbowl, but I have trouble. Imagine the logistics, it takes to wind up handling the catering for a relatively downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. And it's, it's sprawling immense, the nominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. >>Well, there's a lot of force for good conversations. Seeing a lot of that going on, Amazon's trying to a, is trying to portray themselves, you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that and I think that's a good angle as cloud goes mainstream. There's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now it's same kind of thing. As you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby races, a as a semi-pro race car, our driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. Either way, it sounds like more exciting. Like they >>Better have a replacement ready in case something goes wrong on the track, highly >>Available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula, the one is they have these new rigs out. Yeah. Where you can actually race in e-sports with other people in pure simulation of the race car. You gotta get the latest and video graphics card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. Oh, >>It's great too. And I can see the appeal of these tech companies getting it into it because these things are basically rocket shifts. When those cars go, like they're sitting there, we can instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going on in your world. I know you have a lot of great SA we've been following you in the queue for many, many years. Got a great newsletter. Check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's the blowback, any blowback late leads there been tick? What was, what are some of the things you're hearing from your audience, more Corey, more Corey. And then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's hi, I'm emailing an awful lot of people at last week in AWS every week and okay. They not have heard me. It. That is not actually true. People just generally don't respond to email because who responds to email newsletters. That sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do that. >>We should do that. Actually. I think sure would call in. Oh, I, I >>Think >>I guarantee if we had that right now, people would call in and Corey, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised anything by how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the customer. >>You know, I always joke with Dave Avante about how John Fort's always at, uh, um, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of goof on that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0, 0 5, or we can't, we >>Have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And then there you go. Yeah. >>It's and the old joke at HP was if they, if they invented sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish, but that's what it is. And so the joke was cold. Dead fish is a better name than sushi. So you know is fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their product >>They're going in different directions. When they named Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonus on number of words, they can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, a session manager is a great one. I love the service ridiculous name. They have a systems manager, parameter store with is great. They have secrets manager, which does the same thing. It's two words less, but that one costs money in a way that systems manage through parameter store does not. It's fun. >>What's your, what's your favorite combination of acronyms >>Combination of you >>Got Ks. You got EMR, you got EC two. You got S three SQS. Well, RedShift's not an acronym. You got >>Gas is one of my personal favorites because it's either elastic block store or elastic bean stock, depending entirely on the context of the conversation, >>They still got bean stock or is that still >>Around? Oh, they never turn anything off. They're like the anti Google, Google turns things off while they're still building it. Whereas Amazon is like, wow, we built this thing in 2005 and everyone hates it. But while we certainly can't change it, now it has three customers on it, John. >>Okay. >>Simple BV still haunts our >>Dreams. I, I actually got an email on, I saw one of my, uh, servers, all these C twos were being deprecated and I got an email I'm like, I couldn't figure out. Why can you just like roll it over? Why, why are you telling me just like, gimme something else. Right. Okay. So let me talk about, uh, the other things I want to ask you is that like, okay, so as Amazon gets better in some areas where do they need more work? And you, your opinion, because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database Snowflake's got out database service. So, you know, Redshift, snowflake database is out there. So you've got this optician. Yes. How's that going? And what are you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with Amazon and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want. And they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multi-cloud cause obviously the other cloud shows are coming up. Amazon hated that word. Multi-cloud um, a lot of people are saying, you know, it's not a real good marketing word. Like multicloud sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multicloud? >>Multiple single >>Loves that term. Yeah. >>You're building in multiple single points of failure. Do it for the right reasons or don't do it as a default. I believe not doing it is probably the, the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about multi-cloud either as the industry leader, let's talk about other clouds, bad direction to go in from a market cap perspective. It doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of some brilliant, some brain dead. It depends a lot on context. But my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing because it solves problems. That's when I shut up and listen. >>Yeah. Cool. Awesome. Corey, I gotta ask you a question cause I know you we've been, you know, fellow journey mean in the, in the cloud journey, going to all the events and then the pandemic hit where now in the third year, who knows what it's gonna end, certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations community's gonna emerge. You've got a pretty big community growing and it's growing like crazy. What's the weirdest or coolest thing, or just big changes you've seen with the pan endemic, uh, from your perspective, cuz you've been in the you're in the middle of the whitewater rafting. You've seen the events you circle offline. You saw the online piece come in, you're commentating, you're calling balls and strikes in the industry. You got a great team developing over there. Duck bill group. What's the big aha moment that you saw with the pandemic. Weird, funny, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who >>Can pony. >>Hello and welcome back to the live cube coverage here in San Francisco, California, the cube live coverage. Two days, day two of a summit, 2022 Aish summit, New York city coming up in summer. We'll be there as well. Events are back. I'm the host, John fur, the Cub got great guest here. Johnny Dallas with Ze. Um, here is on the queue. We're gonna talk about his background. Uh, little trivia here. He was the youngest engineer ever worked at Amazon at the age. 17 had to get escorted into reinvent in Vegas cause he was underage <laugh> with security, all good stories. Now the CEO of company called Z know DevOps kind of focus, managed service, a lot of cool stuff, Johnny, welcome to the cube. >>Thanks John. Great. >>So tell a story. You were the youngest engineer at AWS. >>I was, yes. So I used to work at a company called Bebo. I got started very young. I started working when I was about 14, um, kind of as a software engineer. And when I, uh, it was about 16. I graduated out of high school early, um, working at this company Bebo, still running all of the DevOps at that company. Um, I went to reinvent in about 2018 to give a talk about some of the DevOps software I wrote at that company. Um, but you know, as many of those things were probably familiar with reinvent happens in a casino and I was 16. So was not able to actually go into the, a casino on my own. Um, so I'd have <inaudible> security as well as casino security escort me in to give my talk. >>Did Andy jazzy, was he aware of >>This? Um, you know, that's a great question. I don't know. <laugh> >>I'll ask him great story. So obviously you started a young age. I mean, it's so cool to see you jump right in. I mean, I mean you never grew up with the old school that I used to grew up in and loading package software, loading it onto the server, deploying it, plugging the cables in, I mean you just rocking and rolling with DevOps as you look back now what's the big generational shift because now you got the Z generation coming in, millennials on the workforce. It's changing like no one's putting and software on servers. Yeah, >>No. I mean the tools keep getting better, right? We, we keep creating more abstractions that make it easier and easier. When I, when I started doing DevOps, I could go straight into E two APIs. I had APIs from the get go and you know, my background was, I was a software engineer. I never went through like the CIS admin stack. I, I never had to, like you said, rack servers, myself. I was immediately able to scale. I was managing, I think 2,500 concurrent servers across every Ables region through software. It was a fundamental shift. >>Did you know what an SRE was at that time? >>Uh, >>You were kind of an SRE on >>Yeah, I was basically our first SRE, um, was familiar with the, with the phrasing, but really thought of myself as a software engineer who knows cloud APIs, not a SRE. All >>Right. So let's talk about what's what's going on now as you look at the landscape today, what's the coolest thing that's going on in your mind in cloud? >>Yeah, I think the, I think the coolest thing is, you know, we're seeing the next layer of those abstraction tools exist and that's what we're doing with Z is we've basically gone and we've, we're building an app platform that deploys onto your cloud. So if you're familiar with something like Carku, um, where you just click a GitHub repo, uh, we actually make it that easy. You click a GI hub repo and it will deploy on ALS using a AWS tools. So, >>Right. So this is Z. This is the company. Yes. How old's the company about >>A year and a half old now. >>All right. So explain what it does. >>Yeah. So we make it really easy for any software engineer to deploy on a AWS. It's not SREs. These are the actual application engineers doing the business logic. They don't really want to think about Yamo. They don't really want to configure everything super deeply. They want to say, run this API on S in the best way possible. We've encoded all the best practices into software and we set it up for you. Yeah. >>So I think the problem you're solving is that there's a lot of want be DevOps engineers. And then they realize, oh shit, I don't wanna do this. Yeah. And some people want to do it. They loved under the hood. Right. People love to have infrastructure, but the average developer needs to actually be as agile on scale. So that seems to be the problem you solve. Right? >>Yeah. We, we, we give way more productivity to each individual engineer, you know? >>All right. So let me ask you a question. So let me just say, I'm a developer. Cool. I build this new app. It's a streaming app or whatever. I'm making it up cube here, but let's just say I deploy it. I need your service. But what happens about when my customers say, Hey, what's your SLA? The CDN went down from this it's flaky. Does Amazon have, so how do you handle all that SLA reporting that Amazon provides? Cuz they do a good job with sock reports all through the console. But as you start getting into DevOps <affirmative> and sell your app, mm-hmm <affirmative> you have customer issues. How do you, how do you view that? Yeah, >>Well, I, I think you make a great point of AWS has all this stuff already. AWS has SLAs. AWS has contract. Aw has a lot of the tools that are expected. Um, so we don't have to reinvent the wheel here. What we do is we help people get to those SLAs more easily. So Hey, this is AWS SLA as a default. Um, Hey, we'll fix you your services. This is what you can expect here. Um, but we can really leverage S's reliability of you. Don't have to trust us. You have to trust ALS and trust that the setup is good there. >>Do you handle all the recovery or mitigation between, uh, identification say downtime for instance? Oh, the server's not 99% downtime. Uh, went down for an hour, say something's going on? And is there a service dashboard? How does it get what's the remedy? Do you have a, how does all that work? >>Yeah, so we have some built in remediation. You know, we, we basically say we're gonna do as much as we can to keep your endpoint up 24 7 mm-hmm <affirmative>. If it's something in our control, we'll do it. If it's a disc failure, that's on us. If you push bad code, we won't put out that new version until it's working. Um, so we do a lot to make sure that your endpoint stay is up, um, and then alert you if there's a problem that we can't fix. So cool. Hey S has some downtime, this thing's going on. You need to do this action. Um, we'll let you know. >>All right. So what do you do for fun? >>Yeah, so, uh, for, for fun, um, a lot of side projects. <laugh> uh, >>What's your side hustle right now. You got going on >>The, uh, it's >>A lot of tools playing tools, serverless. >>Yeah, painless. A lot of serverless stuff. Um, I think there's a lot of really cool WAM stuff as well. Going on right now. Um, I love tools is, is the truest answer is I love building something that I can give to somebody else. And they're suddenly twice as productive because of it. Um, >>It's a good feeling, isn't it? >>Oh yeah. There's >>Nothing like tools were platforms. Mm-hmm <affirmative>, you know, the expression, too many tools in the tool. She becomes, you know, tools for all. And then ultimately tools become platforms. What's your view on that? Because if a good tool works and starts to get traction, you need to either add more tools or start building a platform platform versus tool. What's your, what's your view on a reaction to that kind of concept debate? >>Yeah, it's a good question. Uh, we we've basically started as like a, a platform. First of we've really focused on these, uh, developers who don't wanna get deep into the DevOps. And so we've done all of the pieces of the stacks. We do C I C D management. Uh, we do container orchestration, we do monitoring. Um, and now we're, spliting those up into individual tools so they can be used. Awesome in conjunction more. >>All right. So what are some of the use cases that you see for your service? It's DevOps basically nano service DevOps. So people who want a DevOps team, do clients have a DevOps person and then one person, two people what's the requirements to run >>Z. Yeah. So we we've got teams, um, from no DevOps is kind of when they start and then we've had teams grow up to about, uh, five, 10 men DevOps teams. Um, so, you know, as is more infrastructure people come in because we're in your cloud, you're able to go in and configure it on top you're we can't block you. Uh, you wanna use some new AWS service. You're welcome to use that alongside the stack that we deploy >>For you. How many customers do you have now? >>So we've got about 40 companies that are using us for all of their infrastructure, um, kind of across the board, um, as well as >>What's the pricing model. >>Uh, so our pricing model is we, we charge basically similar to an engineering salary. So we charge a monthly rate. We have plans at 300 bucks a month, a thousand bucks a month, and then enterprise plan for >>The requirement scale. Yeah. So back into the people cost, you must have her discounts, not a fully loaded thing, is it? >>Yeah, there's a discounts kind of asking >>Then you pass the Amazon bill. >>Yeah. So our customers actually pay for the Amazon bill themselves. So >>Have their own >>Account. There's no margin on top. You're linking your, a analyst account in, um, got it. Which is huge because we can, we are now able to help our customers get better deals with Amazon. Um, got it. We're incentivized on their team to drive your costs down. >>And what's your unit main unit of economics software scale. >>Yeah. Um, yeah, so we, we think of things as projects. How many services do you have to deploy as that scales up? Um, awesome. >>All right. You're 20 years old now you not even can't even drink legally. <laugh> what are you gonna do when you're 30? We're gonna be there. >>Well, we're, uh, we're making it better, better, >>Better the old guy on the queue here. <laugh> >>I think, uh, I think we're seeing a big shift of, um, you know, we've got these major clouds. ALS is obviously the biggest cloud and it's constantly coming out with new services, but we're starting to see other clouds have built many of the common services. So Kubernetes is a great example. It exists across all the clouds and we're starting to see new platforms come up on top that allow you to leverage tools for multiple times. At the same time. Many of our customers actually have AWS as their primary cloud and they'll have secondary clouds or they'll pull features from other clouds into AWS, um, through our software. I think that's, I'm very excited by that. And I, uh, expect to be working on that when I'm 30. <laugh> awesome. >>Well, you gonna have a good future. I gotta ask you this question cuz uh, you know, I always, I was a computer science undergrad in the, in the, and um, computer science back then was hardcore, mostly systems OS stuff, uh, database compiler. Um, now there's so much compi, right? Mm-hmm <affirmative> how do you look at the high school college curriculum experience slash folks who are nerding out on computer science? It's not one or two things. You've got a lot of, lot of things. I mean, look at Python, data engineering and emerging as a huge skill. What's it, what's it like for college kids now and high school kids? What, what do you think they should be doing if you had to give advice to your 16 year old self back a few years ago now in college? Um, I mean Python's not a great language, but it's super effective for coding and the datas were really relevant, but it's, you've got other language opportunities you've got tools to build. So you got a whole culture of young builders out there. What should, what should people gravitate to in your opinion and stay away from or >>Stay away from? That's a good question. I, I think that first of all, you're very right of the, the amount of developers is increasing so quickly. Um, and so we see more specialization. That's why we also see, you know, these SREs that are different than typical application engineering. You know, you get more specialization in job roles. Um, I think if, what I'd say to my 16 year old self is do projects, um, the, I learned most of my, what I've learned just on the job or online trying things, playing with different technologies, actually getting stuff out into the world, um, way more useful than what you'll learn in kind of a college classroom. I think classroom's great to, uh, get a basis, but you need to go out and experiment actually try things. >>You know? I think that's great advice. In fact, I would just say from my experience of doing all the hard stuff and cloud is so great for just saying, okay, I'm done, I'm banning the project. Move on. Yeah. Cause you know, it's not gonna work in the old days. You have to build this data center. I bought all this, you know, people hang on to the old, you know, project and try to force it out there. Now you >>Can launch a project now, >>Instant gratification, it ain't working <laugh> or this is shut it down and then move on to something new. >>Yeah, exactly. Instantly you should be able to do that much more quickly. Right. So >>You're saying get those projects and don't be afraid to shut it down. Mm-hmm <affirmative> that? Do you agree with that? >>Yeah. I think it's ex experiment. Uh, you're probably not gonna hit it rich on the first one. It's probably not gonna be that idea is the genius idea. So don't be afraid to get rid of things and just try over and over again. It's it's number of reps >>That'll win. I was commenting online. Elon Musk was gonna buy Twitter, that whole Twitter thing. And someone said, Hey, you know, what's the, I go look at the product group at Twitter's been so messed up because they actually did get it right on the first time. And we can just a great product. They could never change it because people would freak out and the utility of Twitter. I mean, they gotta add some things, the added button and we all know what they need to add, but the product, it was just like this internal dysfunction, the product team, what are we gonna work on? Don't change the product so that you kind of have there's opportunities out there where you might get the lucky strike right outta the gate. Yeah. Right. You don't know. >>It's almost a curse too. It's you're not gonna hit curse Twitter. You're not gonna hit a rich the second time too. So yeah. >><laugh> Johnny Dallas. Thanks for coming on the cube. Really appreciate it. Give a plug for your company. Um, take a minute to explain what you're working on. What you're look looking for. You hiring funding. Customers. Just give a plug, uh, last minute and kind the last word. >>Yeah. So, um, John Dallas from Ze, if you, uh, need any help with your DevOps, if you're a early startup, you don't have DevOps team, um, or you're trying to deploy across clouds, check us out z.com. Um, we are actively hiring. So if you are a software engineer excited about tools and cloud, or you're interested in helping getting this message out there, hit me up. Um, find us on z.co. >>Yeah. LinkedIn Twitter handle GitHub handle. >>Yeah. I'm the only Johnny on a LinkedIn and GitHub and underscore Johnny Dallas underscore on Twitter. All right. Um, >>Johnny Dallas, the youngest engineer working at Amazon, um, now 20 we're on great new project here in the cube. Builders are all young. They're growing into the business. They got cloud at their, at their back it's tailwind. I wish I was 20. Again, this is a I'm John for your host. Thanks for watching. Thanks. >>Welcome >>Back to the cubes. Live coverage of a AWS summit in San Francisco, California events are back, uh, ADAS summit in New York cities. This summer, the cube will be there as well. Check us out there lot. I'm glad we have events back. It's great to have everyone here. I'm John furry host of the cube. Dr. Matt wood is with me cube alumni now VP of business analytics division of AWS. Matt. Great to see you. Thank >>You, John. Great to be here. >>Appreciate it. I always call you Dr. Matt wood, because Andy jazzy always says Dr. Matt, we >>Would introduce you on the he's the one and only the one and >>Only Dr. Matt wood >>In joke. I love it. >>Andy style. And I think you had walkup music too on, you know, >>Too. Yes. We all have our own personalized walk. >>So talk about your new role. I not new role, but you're running up, um, analytics, business or AWS. What does that consist of right now? >>Sure. So I work, I've got what I consider to be the one of the best jobs in the world. Uh, I get to work with our customers and, uh, the teams at AWS, uh, to build the analytics services that millions of our customers use to, um, uh, slice dice, pivot, uh, better understand their day data, um, look at how they can use that data for, um, reporting, looking backwards and also look at how they can use that data looking forward. So predictive analytics and machine learning. So whether it is, you know, slicing and dicing in the lower level of, uh Hado and the big data engines, or whether you're doing ETR with glue or whether you're visualizing the data in quick side or building models in SageMaker. I got my, uh, fingers in a lot of pies. >>You know, one of the benefits of, uh, having cube coverage with AWS since 2013 is watching the progression. You were on the cube that first year we were at reinvent 2013 and look at how machine learning just exploded onto the scene. You were involved in that from day one is still day one, as you guys say mm-hmm <affirmative>, what's the big thing now. I mean, look at, look at just what happened. Machine learning comes in and then a slew of services come in and got SageMaker became a hot seller, right outta the gate. Mm-hmm <affirmative> the database stuff was kicking butt. So all this is now booming. Mm-hmm <affirmative> that was the real generational changeover for <inaudible> what's the perspective. What's your perspective on, yeah, >>I think how that's evolved. No, I think it's a really good point. I, I totally agree. I think for machine machine learning, um, there was sort of a Renaissance in machine learning and the application of machine learning machine learning as a technology has been around for 50 years, let's say, but, uh, to do machine learning, right? You need like a lot of data, the data needs to be high quality. You need a lot of compute to be able to train those models and you have to be able to evaluate what those mean as you apply them to real world problems. And so the cloud really removed a lot of the constraints. Finally, customers had all of the data that they needed. We gave them services to be able to label that data in a high quality way. There's all the compute. You need to be able to train the models <laugh> and so where you go. >>And so the cloud really enabled this Renaissance with machine learning, and we're seeing honestly, a similar Renaissance with, uh, with data, uh, and analytics. You know, if you look back, you know, five, 10 years, um, analytics was something you did in batch, like your data warehouse ran a analysis to do, uh, reconciliation at the end of the month. And then was it? Yeah. And so that's when you needed it, but today, if your Redshift cluster isn't available, uh, Uber drivers don't turn up door dash deliveries, don't get made. It's analytics is now central to virtually every business and it is central to every virtually every business is digital transformation. Yeah. And be able to take that data from a variety of sources here, or to query it with high performance mm-hmm <affirmative> to be able to actually then start to augment that data with real information, which usually comes from technical experts and domain experts to form, you know, wisdom and information from raw data. That's kind of, uh, what most organizations are trying to do when they kind of go through this analytics journey. It's >>Interesting, you know, Dave LAN and I always talk on the cube, but out, you know, the future and, and you look back, the things we were talking about six years ago are actually happening now. Yeah. And it's not a, a, a, you know, hyped up statement to say digital transformation. It actually's happening now. And there's also times where we bang our fist on the table, say, I really think this is so important. And Dave says, John, you're gonna die on that hill <laugh>. >>And >>So I I'm excited that this year, for the first time I didn't die on that hill. I've been saying data you're right. Data as code is the next infrastructure as code mm-hmm <affirmative>. And Dave's like, what do you mean by that? We're talking about like how data gets and it's happening. So we just had an event on our 80 bus startups.com site mm-hmm <affirmative>, um, a showcase with startups and the theme was data as code and interesting new trends emerging really clearly the role of a data engineer, right? Like an SRE, what an SRE did for cloud. You have a new data engineering role because of the developer on, uh, onboarding is massively increasing exponentially, new developers, data science, scientists are growing mm-hmm <affirmative> and the, but the pipelining and managing and engineering as a system. Yeah. Almost like an operating system >>And as a discipline. >>So what's your reaction to that about this data engineer data as code, because if you have horizontally scalable data, you've gotta be open that's hard. <laugh> mm-hmm <affirmative> and you gotta silo the data that needs to be siloed for compliance and reasons. So that's got a very policy around that. So what's your reaction to data as code and data engineering and >>Phenomenon? Yeah, I think it's, it's a really good point. I think, you know, like with any, with any technology, uh, project inside an organization, you know, success with analytics or machine learning is it's kind of 50% technology and then 50% cultural. And, uh, you have often domain experts. Those are, could be physicians or drug experts, or they could be financial experts or whoever they might be got deep domain expertise. And then you've got technical implementation teams and it's kind of a natural often repulsive force. I don't mean that rudely, but they, they just, they don't talk the same language. And so the more complex the domain and the more complex the technology, the stronger that repulsive force, and it can become very difficult for, um, domain experts to work closely with the technical experts, to be able to actually get business decisions made. And so what data engineering does and data engineering is in some cases team, or it can be a role that you play. >>Uh, it's really allowing those two disciplines to speak the same language it provides. You can think of it as plumbing, but I think of it as like a bridge, it's a bridge between like the technical implementation and the domain experts. And that requires like a very disparate range of skills. You've gotta understand about statistics. You've gotta understand about the implementation. You've gotta understand about the, it, you've gotta understand and understand about the domain. And if you could pull all of that together, that data engineering discipline can be incredibly transformative for an organization, cuz it builds the bridge between those two >>Groups. You know, I was advising some, uh, young computer science students at the sophomore junior level, uh, just a couple weeks ago. And I told 'em, I would ask someone at Amazon, this questions I'll ask you since you're, you've been in the middle of of it for years, they were asking me and I was trying to mentor them on. What, how do you become a data engineer from a practical standpoint, uh, courseware projects to work on how to think, um, not just coding Python cause everyone's coding in Python mm-hmm <affirmative> but what else can they do? So I was trying to help them and I didn't really know the answer myself. I was just trying to like kind of help figure it out with them. So what is the answer in your opinion or the thoughts around advice to young students who want to be data engineers? Cuz data scientists is pretty clear in what that is. Yeah. You use tools, you make visualizations, you manage data, you get answers and insights and apply that to the business. That's an application mm-hmm <affirmative>, that's not the, you know, sta standing up a stack or managing the infrastructure. What, so what does that coding look like? What would your advice be to >>Yeah, I think >>Folks getting into a data engineering role. >>Yeah. I think if you, if you believe this, what I said earlier about like 50% technology, 50% culture, like the, the number one technology to learn as a data engineer is the tools in the cloud, which allow you to aggregate data from virtually any source into something which is incrementally more valuable for the organization. That's really what data engineering is all about. It's about taking from multiple sources. Some people call them silos, but silos indicates that the, the storage is kind of fungible or UND differentiated. That that's really not the case. Success requires you to really purpose built well crafted high performance, low cost engines for all of your data. So understanding those tools and understanding how to use 'em, that's probably the most important technical piece. Um, and yeah, Python and programming and statistics goes along with that, I think. And then the most important cultural part, I think is it's just curiosity. >>Like you want to be able to, as a data engineer, you want to have a natural curiosity that drives you to seek the truth inside an organization, seek the truth of a particular problem and to be able to engage, cuz you're probably, you're gonna have some choice as you go through your career about which domain you end up in, like maybe you're really passionate about healthcare. Maybe you're really just passionate about your transportation or media, whatever it might be. And you can allow that to drive a certain amount of curiosity, but within those roles, like the domains are so broad, you kind of gotta allow your curiosity to develop and lead, to ask the right questions and engage in the right way with your teams. So because you can have all the technical skills in the world, but if you're not able to help the team's truths seek through that curiosity, you simply won't be successful. >>We just had a guest on 20 year old, um, engineer, founder, Johnny Dallas, who was 16 when he worked at Amazon youngest engineer at >>Johnny Dallas is a great name by the that's fantastic. It's his real name? >>It sounds like a football player. Rockstar. I should call Johnny. I have Johnny Johnny cube. Uh it's me. Um, so, but he's young and, and he, he was saying, you know, his advice was just do projects. >>Yeah. That's get hands on. >>Yeah. And I was saying, Hey, I came from the old days though, you get to stand stuff up and you hugged onto the assets. Cause you didn't wanna kill the cause you spent all this money and, and he's like, yeah, with cloud, you can shut it down. If you do a project that's not working and you get bad data, no one's adopting it or you don't want like it anymore. You shut it down. Just something >>Else. Totally >>Instantly abandoned it. Move onto something new. >>Yeah. With progression. Totally. And it, the, the blast radius of, um, decisions is just way reduced, gone. Like we talk a lot about like trying to, you know, in the old world trying to find the resources and get the funding. And it's like, right. I wanna try out this kind of random idea that could be a big deal for the organization. I need 50 million in a new data center. Like you're not gonna get anywhere. You, >>You do a proposal working backwards, document >>Kinds, all that, that sort of stuff got hoops. So, so all of that is gone, but we sometimes forget that a big part of that is just the, the prototyping and the experimentation and the limited blast radius in terms of cost. And honestly, the most important thing is time just being able to jump in there, get fingers on keyboards, just try this stuff out. And that's why at AWS, we have part of the reason we have so many services because we want, when you get into AWS, we want the whole toolbox to be available to every developer. And so, as your ideas developed, you may want to jump from, you know, data that you have, that's already in a database to doing realtime data. Yeah. And then you can just, you have the tools there. And when you want to get into real time data, you don't just have kineses, but you have real time analytics and you can run SQL again, that data is like the, the capabilities and the breadth, like really matter when it comes to prototyping and, and >>That's culture too. That's the culture piece, because what was once a dysfunctional behavior, I'm gonna go off the reservation and try something behind my boss's back or cause now as a side hustle or fun project. Yeah. So for fun, you can just code something. Yeah, >>Totally. I remember my first Haddo project, I found almost literally a decommissioned set of servers in the data center that no one was using. They were super old. They're about to be literally turned off. And I managed to convince the team to leave them on for me for like another month. And I installed her DUP on them and like, got them going. It's like, that just seems crazy to me now that I, I had to go and convince anybody not to turn these service off, but what >>It was like for that, when you came up with elastic map produce, because you said this is too hard, we gotta make it >>Easier. Basically. Yes. <laugh> I was installing Haddo version, you know, beta nor 0.9 or whatever it was. It's like, this is really hard. This is really hard. >>We simpler. All right. Good stuff. I love the, the walk down memory lane and also your advice. Great stuff. I think culture's huge. I think. And that's why I like Adam's keynote to reinvent Adam. Lesky talk about path minds and trail blazers because that's a blast radius impact. Mm-hmm <affirmative> when you can actually have innovation organically just come from anywhere. Yeah, that's totally cool. Totally. Let's get into the products. Serverless has been hot mm-hmm <affirmative> uh, we hear a lot about EKS is hot. Uh, containers are booming. Kubernetes is getting adopted. There's still a lot of work to do there. Lambda cloud native developers are booming, serverless Lambda. How does that impact the analytics piece? Can you share the hot, um, products around how that translates? Sure, absolutely. Yeah, the SageMaker >>Yeah, I think it's a, if you look at kind of the evolution and what customers are asking for, they're not, you know, they don't just want low cost. They don't just want this broad set of services. They don't just want, you know, those services to have deep capabilities. They want those services to have as lower operating cost over time as possible. So we kind of really got it down. We got built a lot of muscle, lot of services about getting up and running and experimenting and prototyping and turning things off and turn turning them on and turning them off. And like, that's all great. But actually the, you really only most projects start something once and then stop something once. And maybe there's an hour in between, or maybe there's a year, but the real expense in terms of time and, and complexity is sometimes in that running cost. Yeah. And so, um, we've heard very loudly and clearly from customers that they want, that, that running cost is just undifferentiated to them and they wanna spend more time on their work and in analytics that is, you know, slicing the data, pivoting the data, combining the data, labeling the data, training their models, uh, you know, running inference against their models, uh, and less time doing the operational pieces. >>So is that why the servers focus is there? >>Yeah, absolutely. It, it dramatically reduces the skill required to run these, uh, workloads of any scale. And it dramatically reduces the UND differentiated, heavy lifting, cuz you get to focus more of the time that you would've spent on the operation on the actual work that you wanna get done. And so if you look at something just like Redshift serverless that we launched a reinvent, you know, there's a kind of a, we have a lot of customers that want to run like a, uh, the cluster and they want to get into the, the weeds where there is benefit. We have a lot of customers that say, you know, I there's no benefit for me though. I just wanna do the analytics. So you run the operational piece, you're the experts we've run. You know, we run 60 million instant startups every single day. Like we do this a lot. Exactly. We understand the operation. I >>Want the answers come on. So >>Just give the answers or just let, give me the notebook or just give the inference prediction. So today for example, we announced, um, you know, serverless inference. So now once you've trained your machine learning model, just, uh, run a few, uh, lines of code or you just click a few buttons and then yeah, you got an inference endpoint that you do not have to manage. And whether you're doing one query against that endpoint, you know, per hour or you're doing, you know, 10 million, but we'll just scale it on the back end. You >>Know, I know we got not a lot of time left, but I want, wanna get your reaction to this. One of the things about the data lakes, not being data swamps has been from what I've been reporting and hearing from customers is that they want to retrain their machine learning algorithm. They want, they need that data. They need the, the, the realtime data and they need the time series data, even though the time has passed, they gotta store in the data lake mm-hmm <affirmative>. So now the data lakes main function is being reusing the data to actually retrain. Yeah, >>That's >>Right. It worked properly. So a lot of, lot of postmortems turn into actually business improvements to make the machine learning smarter, faster. You see that same way. Do you see it the same way? Yeah, >>I think it's, I think it's really interesting. No, I think it's really interesting because you know, we talk it's, it's convenient to kind of think of analytics as a very clear progression from like point a point B, but really it's, you are navigating terrain for which you do not have a map and you need a lot of help to navigate that terrain. Yeah. And so, you know, being, having these services in place, not having to run the operations of those services, being able to have those services be secure and well governed, and we added PII detection today, you know, something you can do automatically, uh, to be able to use their, uh, any unstructured data run queries against that unstructured data. So today we added, you know, um, text extract queries. So you can just say, well, uh, you can scan a badge for example, and say, well, what's the name on this badge? And you don't have to identify where it is. We'll do all of that work for you. So there's a often a, it's more like a branch than it is just a, a normal, uh, a to B path, a linear path. Uh, and that includes loops backwards. And sometimes you gotta get the results and use those to make improvements further upstream. And sometimes you've gotta use those. And when you're downstream, you'll be like, ah, I remember that. And you come back and bring it all together. So awesome. It's um, it's, uh, uh, it's a wonderful >>Work for sure. Dr. Matt wood here in the queue. Got just take the last word and give the update. Why you're here. What's the big news happening that you're announcing here at summit in San Francisco, California, and update on the, the business analytics >>Group? Yeah, I think, you know, one of the, we did a lot of announcements in the keynote, uh, encouraged everyone to take a look at that. Uh, this morning was Swami. Uh, one of the ones I'm most excited about, uh, is the opportunity to be able to take, uh, dashboards, visualizations. We're all used to using these things. We see them in our business intelligence tools, uh, all over the place. However, what we've heard from customers is like, yes, I want those analytics. I want their visualization. I want it to be up to date, but you know, I don't actually want to have to go my tools where I'm actually doing my work to another separate tool to be able to look at that information. And so today we announced, uh, one click public embedding for quick side dashboards. So today you can literally, as easily as embedding a YouTube video, you can take a dashboard that you've built inside, quick site cut and paste the HTML, paste it into your application and that's it. That's all you have to do. It takes seconds and >>It gets updated in real time. >>Updated in real time, it's interactive. You can do everything that you would normally do. You can brand it like this is there's no power by quick site button or anything like that. You can change the colors, make it fit in perfectly with your, with your applications. So that's sitting incredibly powerful way of being able to take a, uh, an analytics capability that today sits inside its own little fiefdom and put it just everywhere. It's, uh, very transformative. >>Awesome. And the, the business is going well. You got the serverless and your tailwind for you there. Good stuff, Dr. Matt with thank you. Coming on the cube >>Anytime. Thank >>You. Okay. This is the cubes cover of eight summit, 2022 in San Francisco, California. I'm John host cube. Stay with us with more coverage of day two after this short break.
SUMMARY :
And I think there's no better place to, uh, service those people than in the cloud and uh, Well, first of all, congratulations, and by the way, you got a great pedigree and great background, super smart, You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. Ts is one big enterprise, cuz you gotta have imutability you got performance issues. of history and have been involved in open source in the cloud would say that we're, you know, much of what we're doing is, Yeah. the more time you spend in this world is this is the fastest growing part I get it and more relevant <laugh> but there's also the hype of like the web three, for instance, but you know, I call it the user driven revolution. And so that's that I, that I think is really this revolution that you see, the sixties was rebellion against the fifties and the man and, you know, summer of love. like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would So what I'm trying to get at is that, do you see the young cultural revolution look, you know, you were not designed in the cloud era. You gotta convince someone to part with their ch their money and the first money in which you do a lot of it's And the persona of the entrepreneur would be, you know, so somebody who was a great salesperson or somebody who tell a great story, software, like the user is only gonna give you 90 seconds to figure out whether or not you're storytelling's fine with you an extrovert or introvert, have your style, sell the story in a way that's So I think the more that you can show in the road, you can get through short term spills. I think many people that, that do what we do for a living, we'll say, you know, What's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at And the they're the only things we do day in, Uh, and finally, it's the gift that keeps on giving. But if you think about it, the whole economy is moving online. So you get the convergence of national security, I mean, arguably again, it's the area of the world that people should be I gotta, I gotta say, you gotta love your firm. Huge fan of what you guys are doing here. Again, John host of the cube. Thank you for having me. What do you guys do? and obviously in New York, uh, you know, the business was never like this, How is this factoring into what you guys do and your growth cuz you moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. manufacturing, it's the physical plant or location And you guys solve And the reality is not everything that's And the reality is the faster you move with anything cloud based, Well actually shutting down the abandoning, the projects that early, not worrying about it, And they get, they get used to it. I can get that like values as companies, cuz they're betting on you and your people. that a customer can buy in the cloud, how are you gonna ask a team of one or two people in If you have a partner that's offering you some managed services. I mean the cost. sure everybody in the company has the opportunity to become certified. Desk and she could be running the Kubernetes clusters. It's And that's a cultural factor that you guys have. There's no modernization on the app side. And the other thing is, is there's not a lot of partners, In the it department. I like it, And so how you build your culture around that is, is very important. You said you bought the company and We didn't call it at that time innovative solutions to come in and, And they were like, listen, you got long ways before you're gonna be an owner. Um, the other had a real big problem with having to write a check. So in 2016 I bought the business, um, became the sole owner. The capital ones of the world. The, the Microsoft suite to the cloud. Uh, tell me the hottest product that you have. funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. on the cash exposure. We are known for that and we're known for being creative with those customers and being empathetic And that's the cloud upside is all about doubling down on the variable win that's right. I'm John for your host. I'm John for host of the cube here for the next Thank you very much. We were chatting before you came on camera. This is the first, uh, summit I've been to, to in what two, three is running everything devs sec ops, everyone kind of sees that you got containers, you got Benet, Tell us about what you guys doing at innovative and, uh, what you do. Uh, so I'm the director of solutions architecture. We have a customer there that, uh, needs to deploy but the real issue was they were they're bread and butters EC two and S three. the data at the edge, you got five GM having. Data in is the driver for the edge. side, obviously, uh, you got SW who's giving the keynote tomorrow. And it's increasing the speed of adoption So you guys are making a lot of good business decisions around managed cloud service. You take the infrastructure, you got certain products, whether it's, you know, low latency type requirements, So innovative is filling that gap across the Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers We have our own little, um, you know, I think we'll start talking about how does that really live on, So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. That's, that's one of the best use cases, And that's, that's one of the best use cases that we're move the data unless you have to. Uh, so not only are you changing your architecture, you're actually changing your organization because you're But you gotta change the database architecture on the back. Uh, you know, for the past maybe decade. We don't have time to drill into, maybe we do another session this, but the one pattern we're seeing come of the past of data to AWS cloud, or we can run, uh, computational workloads So I gotta end the segment on a, on a, kind of a, um, fun, I was told to ask you You got a customer to jump I started in the first day there, we had a, and, uh, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. the same feeling we have when we It's much now with you guys, it's more like a tandem jump. Matthew, thanks for coming on the cube. I'm John furry host of the cube. What's the status of the company product what's going on? We're back to be business with you never while after. It operations, it help desk the same place I used to work at ServiceNow. I love having you on the cube, Dave and I, and Dave Valenti as well loves having you on too, because you not only bring the entrepreneurial So the cloud scale has hit. So the things that room system of record that you and me talked about, the next layer is called system of intelligence. I mean, I mean, RPA is almost, should be embedded in everything. And that's your thinking. So as you break that down, is this So it's like how you have a database and compute and sales and networking. uh, behind us, you got the expo hall. So you don't build it just on Amazon. kind of shitting on us saying, Hey, you guys terrible, they didn't get it. Remember the middle layer pass will be snowflake so I Basically the, if you're an entrepreneur, the, the north star in terms of the, the outcome is be And that reduce your product development, your go to market and you get use the snowflake marketplace to I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. So I think depending on the application use case, you have to use each of the above. I have is that I, I think it's okay to have a super cloud like that because the rising tide is still happening I see people lift and shifting from the it operations. the big enterprises now and you know, small, medium, large and large enterprise are all buying new companies If I growing by or 2007 or eight, when I used to talk to you back then and Amazon started So you know, a lot of good resources there. Yourself a lot of first is I see the AIOP solutions in the future should be not looking back. I think the whole, that area is very important. Yeah. They doubled the What are you working on right now? I'm the CEO there. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service. I mentioned that it's decipher all the hot startups and of course the cube.net and Silicon angle.com. We're getting back in the groove psych to be back. Sure is a lot of words to describe is shit posting, which is how I describe what I tend to do. And if you look at mark, Andrew's been doing a lot of shit posting lately. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, So for the audience that doesn't know what shit posting is, what is shit posting? A lot of the audience is thinking, in the industry right now, obviously, uh, coupons coming up in Spain, which they're having a physical event, And you can't win once you're there. of us is trying to portray themselves as you know, the Pathfinder, you know, you're the pioneer, Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, And I can see the appeal of these tech companies getting into it because these things are basically So I gotta ask you about, uh, what's going on in your world. People just generally don't respond to email because who responds I think you're people would call in, oh, People would call in and say, Corey, what do you think about X? Honestly, I am surprised about anything by how little I have gotten over the last five years of doing this, Um, one of the rituals I like about your, um, And then there you go. And so the joke was cold. I love the service ridiculous name. You got EMR, you got EC two, They're like the anti Google, Google turns things off while they're still building it. So let me talk about, uh, the other things I want to ask you, is that like, okay. Depends on who you ask. Um, a lot of people though saying, you know, it's not a real good marketing Yeah. I believe not doing it is probably the right answer. What's the big aha moment that you saw with the pandemic. When in the before times it's open to anyone I look forward to it. What else have you seen? But they will change a browser tab and you won't get them back. It's always fun in the, in the meetings when you're ho to someone and their colleague is messaging them about, This guy is really weird. Yes I am and I bring it into the conversation and then everyone's uncomfortable. do you wanna take that about no, I'm good. I don't the only entire sure. You're starting to see much more of like yeah. Tell me about the painful spot that you More, more, I think you nailed it. And that is the next big revelation of this industry is going to realize you have different companies. Corey, final question for, uh, what are you here doing? We fixed the horrifying AWS bill, both from engineering and architecture, So thanks for coming to the cube and And of course reinvent the end of the year for all the cube Yeah. We'll start That's the official name. Yeah, What's the, how was you guys organized? And the intention there is to So partnerships are key. Um, so I've got a team of partner managers that are located throughout the us, I love the white glove service, but translate that what's in it for what um, sort of laser focus on what are you really good at and how can we bring that to the customer as And there's a lot that you can do with AWS, but focus is truly the key word there because What are some of the cool things you guys have seen in the APN that you can point to? I mean, I can point to few, you can take them. Um, and through that we provide You gotta, I mean, when you get funding, it's still day one. And our job is to try to make I mean, you guys are the number one cloud in the business, the growth in every sector is booming. competency programs, the DevOps competencies, the security competency, which continues to help, I mean, you got a good question, you know, thousand flowers blooming all the time. lot of the ISVs that we look after are infrastructure ISVs. So what infrastructure, Exactly. So infrastructure as well, like storage back up ransomware Right. spread, and then someone to actually do the co-sell, uh, day to day activities to help them get in I mean, you know, ask the res are evolving, that role of DevOps is taking on dev SecOps. So the partner development manager can be an escalation for absolutely. And you guys, how is that partner managers, uh, measure And then co-sell not only are we helping these partners win their current opportunities but that's a huge goal of ours to help them grow their top line. I have one partner here that you guys work And so that's, our job is how do you get that great tech in lot of holes and gaps in the opportunities with a AWS. Uh, and making a lot of noise here in the United States, which is great. Let's see if they crash, you know, Um, and so I've actually seen many of our startups grow So you get your economics, that's the playbook of the ventures and the models. How I'm on the cloud. And, or not provide, or, you know, bring any fruit to the table, for startups, what you guys bring to the table and we'll close it out. And that's what we're here for. It's a good way to, it's a good way to put it. Great to see you love working with you guys. I'm John for host of the cube. Always great to come and talk to you on the queue, man. And it's here, you predicted it 11 years ago. do claim credit for, for sort of catching that bus early, um, you know, at the board level, the other found, you know, the people there, uh, cloud, you know, Amazon, And the, you know, there's sort of the transactions, you know, what you bought today are something like that. So now you have another, the sort of MIT research be mainstream, you know, observe for the folks who don't know what you guys do. So, um, we realized, you know, a handful of years ago, let's say five years ago that, And, um, you know, part of the observed story is we think that to go big in the cloud, you can have a cloud on a cloud, And, and then that was the, you know, Yeah. say the, the big data world, what Oracle did for the relational data world, you know, way back 25 years ago. So you're building on top of snowflake, And, um, you know, I've had folks say to me, I am more on snowing. Stay on the board, then you'll know what's going on. And so I've believe the opportunity for folks like snowflake and, and folks like observe it. the go big scenario is you gotta be on a platform. Or be the platform, but it's hard. to like extract, uh, a real business, you gotta move up, you gotta add value, Moving from the data center of the cloud was a dream for starters within if the provision, It's almost free, but you can, you know, as an application vendor, you think, growing company, the Amazon bill should be a small factor. Snowflake are doing a great job of innovating on the database and, and the same is true of something I mean, the shows are selling out the floor. Well, and for snowflake and, and any platform from VI, it's a beautiful thing because, you know, institutional knowledge of snowflake integrations, right. And so been able to rely on a platform that can manage that is inve I don't know if you can talk about your, Around the corner. I think, as a startup, you always strive for market fit, you know, which is at which point can you just I think capital one's a big snowflake customer as well. And, and they put snowflake in a position in the bank where they thought that snowflake So you're, Prescale meaning you're about to So you got POCs, what's that trajectory look like? So people will be able to the kind of things that by in the day you could do with the new relics and AppDynamics, What if you had the, put it into a, a, a sentence what's the I mean, at the end of the day, you have to build an amazing product and you have to solve a problem in a different way. What's the appetite at the buyer side for startups and what So the nice thing from a startup standpoint is they know at times What's the state of AWS. I mean, you know, we're, we're on AWS as well. Thanks for coming on the cube. host of the cubes cube coverage of AWS summit 2022 here in San Francisco. I feel like it's been forever since we've been able to do something in person. I'm glad you're here because we run into each other all the time. And we don't wanna actually go back as bring back the old school web It's all the same. No, you're never recovering. the next generation of software companies, uh, early investor in open source companies and cloud that have agendas and strategies, which, you know, purchase software that is traditionally bought and sold tops Well, first of all, congratulations, and by the way, you got a great pedigree and great background. You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. MFTs is one big enterprise, cuz you gotta have imutability you got performance issues. you know, much of what we're doing is, uh, the predecessors of the web web three movement. The hype is definitely web the more time you spend in this world is this is the fastest growing part I get it and more relevant <laugh> but there's also the hype of like the web three, for instance, but you know, I call it the user driven revolution. the offic and the most, you know, kind of valued people in in the sixties was rebellion against the fifties and the man and, you know, summer of love. like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would So what I'm trying to get at is that, do you see the young cultural revolution look, you know, you were not designed in the cloud era. You gotta convince someone to part with their ch their money and the first money in which you do a lot of is about And the persona of the entrepreneur would be, you know, somebody who was a great salesperson or somebody who tell a great story. software, like the user is only gonna give you 90 seconds to figure out whether or not you're But let me ask a question now that for the people watching, who are maybe entrepreneurial entre entrepreneurs, So I think the more that you can show I think many people that, that do what we do for a living will say, you know, What's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at itself as big of a market as any of the other markets that we invest in. But if you think about it, the whole like economy is moving online. So you get the convergence of national security, Arguably again, it's the area of the world that I gotta, I gotta say you gotta love your firm. Huge fan of what you guys are doing here. Again, John host of the cube. Thank you for having me. What do you guys do? made the decision in 2018 to pivot and go all in on the cloud. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. it's manufacturing, it's the physical plant or location What's the core problem you guys solve And the reality is not everything that's And the reality is the faster you move with anything cloud based, Well actually shutting down the abandoning, the projects that early and not worrying about it, And they get, they get used to it. Yeah. So this is where you guys come in. that a customer can buy in the cloud, how are you gonna ask a team of one or two people in of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go A risk factor not mean the cost. sure everybody in the company has the opportunity to become certified. And she could be running the Kubernetes clusters. So I'll tell you what, when that customer calls and they have a real Kubernetes issue, And that's a cultural factor that you guys have. This There's no modernization on the app side now. And the other thing is, is there's not a lot of partners, so the partner, In the it department. I like And so how you build your culture around that is, is very important. You said you bought the company and We didn't call it at that time innovative solutions to come in and, on the value of this business and who knows where you guys are gonna be another five years, what do you think about making me an Um, the other had a real big problem with having to write a check. going all in on the cloud was important for us and we haven't looked back. The capital ones of the world. And so, uh, we only had two customers on AWS at the time. Uh, tell me the hottest product that you have. So any SMB that's thinking about migrating to the cloud, they should be talking innovative solutions. So like insurance, basically for them not insurance class in the classic sense, but you help them out on the, We are known for that and we're known for being creative with those customers and being empathetic to And that's the cloud upside is all about doubling down on the variable wind. I'm John for your host. I'm John ferry, host of the cube here for the Thank you very much. We were chatting before you came on camera. This is the first, uh, summit I've been to and what two, three years. So the game is pretty much laid out mm-hmm <affirmative> and the edge is with the Uh, so I'm the director of solutions architecture. but the real issue was they were they're bread and butters EC two and S three. It does computing. the data at the edge, you got 5g having. in the field like with media companies. uh, you got SW, he was giving the keynote tomorrow. And it's increasing the speed of adoption So you guys are making a lot of good business decisions around managed cloud service. So they look towards AWS cloud and say, AWS, you take the infrastructure. Mainly because the, the needs are there, you got data, you got certain products, And, and our customers, even the ones in the edge, they also want us to build out the AWS Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers We have our own little, um, you know, projects going on. I think we'll start talking about how does that really live on, So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. That's, that's one of the best use cases, And that's, that's one of the best use cases that we're for the folks watching don't move the data, unless you have to, um, those new things are developing. Uh, so not only are you changing your architecture, you're actually changing your organization because But you gotta change the database architecture on the back. away data, uh, you know, for the past maybe decade. actually, it's not the case. of data to the AWS cloud, or we can run, uh, computational workloads So I gotta end the segment on a, on a kind of a, um, fun note. You, you got a customer to jump out um, you know, storing data and, and how his cus customers are working. my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. the same feeling we have when we It's pretty much now with you guys, it's more like a tandem jump. I'm John Forry host of the cube. Thanks for coming on the cube. What's the status of the company product what's going on? Of all, thank you for having me back to be business with you. Salesforce, and ServiceNow to take it to the next stage? Well, I love having you on the cube, Dave and I, Dave Valenti as well loves having you on too, because you not only bring Get to call this fun to talk. So the cloud scale has hit. So the things that remember system of recorded you and me talked about the next layer is called system of intelligence. I mean, I mean, RPA is almost, should be embedded in everything. And that's your thinking. So as you break that down, is this So it's like how you have a database and compute and sales and networking. innovative, all the companies out here that we know, we interview them all. So you don't build it just on Amazon. is, what you do in the cloud. Remember the middle layer pass will be snowflake. Basically if you're an entrepreneur, the north star in terms of the outcome is be And that reduce your product development, your go to market and you get use the snowflake marketplace to of the world? So I think depending on the application use case, you have to use each of the above. I think the general question that I have is that I think it's okay to have a super cloud like that because the rising I see people lift and shifting from the it operations. Cause you know, the big enterprises now and, If I remember going back to our 2007 or eight, it, when I used to talk to you back then when Amazon started very small, So you know, a lot of good resources there, um, and gives back now to the data question. service that customers are give the data, share the data because we thought the data algorithms are Yeah. What are you working on right now? I'm the CEO there. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service, I mentioned that it's a site for all the hot startups and of course the cube.net and Silicon angle.com. We're getting back in the groove, psyched to be back. Sure is a lot of words to describe as shit posting, which is how I describe what I tend to do. And if you look at Mark's been doing a lot of shit posting lately, all a billionaires It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, So for the audience that doesn't know what shit posting is, what is shit posting? A lot of the audience is thinking, in the industry right now, obviously, uh, coupons coming up in Spain, which they're having a physical event, you can see the growth And you can't win once you're there. to portray themselves as you know, the Pathfinder, you know, you're the pioneer, Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon I, the track highly card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're And I can see the appeal of these tech companies getting into it because these things are basically So I gotta ask you about, uh, what's going in your world. People just generally don't respond to email because who responds I think sure would call in. People would call in and say, Corey, what do you think about X? Honestly, I am surprised anything by how little I have gotten over the last five years of doing this, reinvent getting the interview with jazzy now, Andy we're there, you're there. And there you go. And so the joke was cold. I love the service, ridiculous name. Well, Redshift the on an acronym, you the context of the conversation. Or is that still around? They're like the anti Google, Google turns things off while they're still building it. So let me talk about, uh, the other things I want to ask you is that like, okay. Depends on who you ask. So I gotta ask about multi-cloud cause obviously the other cloud shows are coming up. Yeah. I believe not doing it is probably the right answer. What's the big aha moment that you saw with When in the before times it's open to anyone I look forward to it. What else have you seen? But they will change a browser tab and you won't get them back. It's always fun in the, in the meetings when you're talking to someone and their co is messaging them about, This guy is really weird. Yes I am and I bring it into the conversation and then everyone's uncomfortable. do you wanna take that about no, I'm good. No, the only encourager it's fine. You're starting to see much more of like yeah. Tell me about the painful spot that you Makes more, more, I think you nailed it. And that is the next big revelation of this industry is going to realize you have different companies. Uh, what do you hear doing what's on your agenda this We fixed the horrifying AWS bill, both from engineering and architecture, And of course reinvent the end of the year for all the cube coverage Yeah. What's the, how was you guys organized? And the intention there is to So partnerships are key. Um, so I've got a team of partner managers that are located throughout the us, We've got a lot. I love the white glove service, but translate that what's in it. um, sort of laser focus on what are you really good at and how can we bring that to the customer as And there's a lot that you can do with AWS, but focus is truly the key word there What are some of the cool things you guys have seen in the APN that you can point to? I mean, I can point to few, you can take them. Um, and through that we provide You gotta, I mean, when you get funding, it's still day one. And our job is to try to You guys are the number one cloud in the business, the growth in every sector is booming. competency programs, the DevOps compet, the, the security competency, which continues to help, I mean, you got a good question, you know, a thousand flowers blooming all the time. lot of the fees that we look after our infrastructure ISVs, that's what we do. So you guys have a deliberate, uh, focus on these pillars. Business, this owner type thing. So infrastructure as well, like storage, Right. and spread, and then someone to actually do the co-sell, uh, day to day activities to help them get I mean, you know, SREs are evolving, that role of DevOps is taking on dev SecOps. So the partner development manager can be an escalation point. And you guys how's that partner managers, uh, measure And then co-sell not only are we helping these partners win their current opportunities I mean, top asked from the partners is get me in front of customers. I have one partner here that you guys And so that it's our job is how do you get that great tech in of holes and gaps in the opportunities with AWS. Uh, and making a lot of noise here in the United States, which is great. We'll see if they crash, you know, Um, and so I've actually seen many of our startups grow So with that, you guys are there to How I am on the cloud. And, or not provide, or, you know, bring any fruit to the table, what you guys bring to the table and we'll close it out. And that's what we're here for. Great to see you love working with you guys. I'm John for host of the cube. Always great to come and talk to you on the queue, man. You're in the trenches with great startup, uh, do claim credit for, for, for sort of catching that bus out, um, you know, the board level, you know, the founders, you know, the people there cloud, you know, Amazon, And so you you've One of the insights that we got out of that I wanna get your the sort of MIT research be mainstream, you know, what you guys do. So, um, we realized, you know, a handful of years ago, let's say five years ago that, And, um, you know, part of the observed story yeah. that to go big in the cloud, you can have a cloud on a cloud, I mean, having enough gray hair now, um, you know, again, CapX built out the big data world, what Oracle did for the relational data world, you know, way back 25 years ago. And, um, you know, I've had folks say to me, That that's a risk I'm prepared to take <laugh> I am long on snowflake you, Stay on the board, then you'll know what's going on. And so I believe the opportunity for folks like snowflake and folks like observe it's the go big scenario is you gotta be on a platform. Easy or be the platform, but it's hard. And then to, to like extract, uh, a real business, you gotta move up, Moving from the data center of the cloud was a dream for starters. I know it's not quite free. and storage is free, that's the mindset you've gotta get into. And I think the platform enablement to value. Snowflake are doing a great job of innovating on the database and, and the same is true of something I mean, the shows are selling out the floor. And we do a lot of the support. You're scaling that function with the, And so been able to rely on a platform that can manage that is invaluable, I don't know if you can talk about your, Scales around the corner. I think, as a startup, you always strive for market fit, you know, which is at which point can you just I think capital one's a big snowflake customer as well. They were early in one of the things that attracted me to capital one was they were very, very good with snowflake early So you got POCs, what's that trick GE look like, So right now all the attention is on the What if you had the, put it into a, a sentence what's the I mean, at the end of the day, you have to build an amazing product and you have to solve a problem in a different way. What's the appetite at the buyer side for startups and what So the nice thing from a startup standpoint is they know at times they need to risk or, What's the state of AWS. I mean, you know, we we're, we're on AWS as They got the silicone and they got the staff act, developing Jeremy Burton inside the cube, great resource for California after the short break. host of the cubes cube coverage of AWS summit 2022 here in San Francisco. I feel like it's been forever since we've been able to do something in person. I'm glad you're here because we run into each other all the time. the old school web 1.0 days. We, we are, it's a little bit of a throwback to the path though, in my opinion, <laugh>, it's all the same. I mean, you remember I'm a recovering entrepreneur, right? No, you're never recovering. in the next generation of our companies, uh, early investor in open source companies that have agendas and strategies, which, you know, purchased software that has traditionally bought and sold tops Well, first of all, congratulations, and by the way, you got a great pedigree and great background, super smart admire of your work You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. Ts is one big enterprise, cuz you gotta have imutability you got performance issues. history and have been involved in, open in the cloud would say that we're, you know, much of what we're doing is, the more time you spend in this world is this is the fastest growing part I get it and more relevant, but it's also the hype of like the web three, for instance. I call it the user driven revolution. the beneficiaries and the most, you know, kind of valued people in the sixties was rebellion against the fifties and the man and, you know, summer of love. like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would So what I'm trying to get at is that, do you see the young cultural revolution look, you know, you were not designed in the cloud era. You gotta convince someone to part with their ch their money and the first money in which you do a lot of is And the persona of the entrepreneur would be, you know, somebody who was a great salesperson or somebody who tell a great story. software, the user is only gonna give you 90 seconds to figure out whether or not you're What's the, what's the preferred way that you like to see entrepreneurs come in and engage, So I think the more that you can in the road, you can get through short term spills. I think many people that, that do what we do for a living will say, you know, Uh, what's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're One is the explosion and open source software. Uh, and finally, it's the gift that keeps on giving. But if you think about it, the whole economy is moving online. So you get the convergence of national security, I mean, arguably again, it's the area of the world that I gotta, I gotta say, you gotta love your firm. Huge fan of what you guys are doing here. Again, John host of the cube got a great guest here. Thank you for having me. What do you guys do? that are moving into the cloud or have already moved to the cloud and really trying to understand how to best control, How is this factoring into what you guys do and your growth cuz you guys are the number one partner on moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. it's manufacturing, it's the physical plant or location What's the core problem you guys solve And the reality is not everything that's Does that come up a lot? And the reality is the faster you move with anything cloud based, Well actually shutting down the abandoning the projects that early and not worrying about it, And Like, and then they wait too long. Yeah. I can get that like values as companies, cuz they're betting on you and your people. that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your, If you have a partner, that's all offering you some managed services. Opportunity cost is huge, in the company has the opportunity to become certified. And she could be running the Kubernetes clusters. And that's a cultural factor that you guys have. This So that's, There's no modernization on the app side though. And, and the other thing is, is there's not a lot of partners, No one's raising their hand boss. In it department. Like, can we just call up, uh, you know, <laugh> our old vendor. And so how you build your culture around that is, You said you bought the company and We didn't call it at that time innovative solutions to come in and, And they were like, listen, you got long ways before you're gonna be an owner, but if you stick it out in your patient, Um, the other had a real big problem with having to write a check. all going all in on the cloud was important for us and we haven't looked back. The capital ones of the world. The, the Microsoft suite to the cloud and Uh, tell me the hottest product that you have. So any SMB that's thinking about migrating to the cloud, they should be talking innovative solutions. So like insurance, basically for them not insurance class in the classic sense, but you help them out on the, We are known for that and we're known for being creative with those customers, That's the cloud upside is all about doubling down on the variable wind. I'm John for your host. Live on the floor in San Francisco for 80 west summit, I'm John ferry, host of the cube here for the Thank you very much. We were chatting before you came on camera. This is the first, uh, summit I've been to and what two, three years. is running everything dev sec ops, everyone kind of sees that you got containers, you got Kubernetes, Uh, so I'm the director of solutions architecture. to be in Panama, but they love AWS and they want to deploy AWS services but the real issue was they were they're bread and butters EC two and S three. It the data at the edge, you got five GM having. in the field like with media companies. side, obviously, uh, you got SW who's giving the keynote tomorrow. Uh, in the customer's mind for the public AWS cloud inside an availability zone. So you guys are making a lot of good business decisions around managed cloud service. So they look towards AWS cloud and say, AWS, you take the infrastructure. Mainly because the, the needs are there, you got data, you got certain products, And, and our customers, even the ones in the edge, they also want us to build out the AWS Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech in, I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers We have our own little, um, you know, projects going on. I think we'll start talking about how does that really live So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. That's, that's one of the best use cases, And that's, that's one of the best use cases that we're the folks watching don't move the data unless you have to. Uh, so not only are you changing your architecture, you're actually changing your organization because But you gotta change the database architecture in the back. away data, uh, you know, for the past maybe decade. We don't have time to drill into, maybe we do another session on this, but the one pattern we're seeing of the past year of data to the AWS cloud, or we can run, uh, computational workloads So I gotta end the segment on a, on a kind of a, um, fun note. You got a customer to jump out So I was, you jumped out. my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. But, uh, it was, it was the same kind of feeling that we had in the early days of AWS, the same feeling we have when we It's now with you guys, it's more like a tandem jump. I'm John for host of the cube. I'm John fury host of the cube. What's the status of the company product what's going on? First of all, thank you for having me. Salesforce, and service now to take you to the next stage? I love having you on the cube, Dave and I, Dave LAN as well loves having you on too, because you not only bring the entrepreneurial Get the call fund to talk to you though. So the cloud scale has hit. So the things that rumor system of recorded you and me talked about the next layer is called system of intelligence. I mean, or I mean, RPA is, should be embedded in everything. I call it much more about automation, workflow automation, but RPA and automation is a category. So as you break that down, is this the new modern middleware? So it's like how you have a database and compute and sales and networking. uh, behind, as you got the XPO hall got, um, we're back to vis, but you got, So you don't build it just on Amazon. is, what you do in the cloud. I'll make the pass layer room. It And that reduce your product development, your go to market and you get use the snowflake marketplace I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. So I think depending on the use case you have to use each of the above, I think the general question that I have is that I think it's okay to have a super cloud like that because the rising I see people lift and shifting from the it operations, it helpless. Cause you know, the big enterprises now and you Spending on the startups. So you know, a lot of good resources there. And I think their whole data exchange is the industry has not thought through something you and me talk Yeah. It is doubled. What are you working on right now? So all the top customers, um, mainly for it help desk customer service. Some of the areas where you want to scale your company, So look for that on the calendar, of course, go to a us startups.com. We're getting back in the Groove's psych to be back. Sure is a lot of words to describe is shit posting, which is how I describe what I tend to do. And if you look at mark, Andrew's been doing a lot of shit posting lately. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, So for the audience that doesn't know what shit posting is, what, what is shitposting A lot of the audience is thinking, in the industry right now, obviously, uh, Cuban coming up in Spain, which they're having a physical event, And you can't win once you're there. is trying to portray themselves, you know, the Pathfinder, you know, you're the pioneer, Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're And I can see the appeal of these tech companies getting it into it because these things are basically So I gotta ask you about, uh, what's going on in your world. People just generally don't respond to email because who responds I think sure would call in. Honestly, I am surprised anything by how little I have gotten over the last five years of doing this, reinvent getting the interview with jazzy now, Andy we're there, you're there. And then there you go. And so the joke was cold. I love the service ridiculous name. You got S three SQS. They're like the anti Google, Google turns things off while they're still building So let me talk about, uh, the other things I want to ask you is that like, okay, so as Amazon gets better in Depends on who you ask. So I gotta ask about multi-cloud cause obviously the other cloud shows are coming up. Yeah. And I look at what customers are doing and What's the big aha moment that you saw with the pandemic. When in the before times it's open to anyone here is on the queue. So tell a story. Um, but you know, Um, you know, that's a great question. I mean, it's so cool to see you jump right in. I had APIs from the Yeah, I was basically our first SRE, um, was familiar with the, with the phrasing, but really thought of myself as a software engineer So let's talk about what's what's going on now as you look at the landscape today, what's the coolest thing Yeah, I think the, I think the coolest thing is, you know, we're seeing the next layer of those abstraction tools exist How old's the company about So explain what it does. We've encoded all the best practices into software and we So that seems to be the problem you solve. So let me ask you a question. This is what you can expect here. Do you handle all the recovery or mitigation between, uh, identification say Um, we'll let you know. So what do you do for fun? Yeah, so, uh, for, for fun, um, a lot of side projects. You got going on And they're suddenly twice as productive because of it. There's Mm-hmm <affirmative>, you know, the expression, too many tools in the tool. And so we've done all of the pieces of the stacks. So what are some of the use cases that you see for your service? Um, so, you know, as is more infrastructure people come in because we're How many customers do you have now? So we charge a monthly rate. The requirement scale. So team to drive your costs down. How many services do you have to deploy as that scales <laugh> what are you gonna do when you're Better the old guy on the queue here. It exists across all the clouds and we're starting to see new platforms come up on top that allow you to leverage I gotta ask you this question cuz uh, you know, I always, I was a computer science undergrad in the, I think classroom's great to, uh, get a basis, but you need to go out and experiment actually try things. people hang on to the old, you know, project and try to force it out there. then move on to something new. Instantly you should be able to do that much more quickly. Do you agree with that? It's probably not gonna be that idea is the genius idea. Don't change the product so that you kind of have there's opportunities out there where you might get the lucky strike You're not gonna hit a rich the second time too. Thanks for coming on the cube. So if you are a software engineer excited about tools and cloud, Um, Johnny Dallas, the youngest engineer working at Amazon, um, I'm John furry host of the cube. I always call you Dr. Matt wood, because Andy jazzy always says Dr. Matt, we I love it. And I think you had walkup music too on, you know, So talk about your new role. So whether it is, you know, slicing and dicing You know, one of the benefits of, uh, having cube coverage with AWS since 2013 is watching You need a lot of compute to be able to train those models and you have to be able to evaluate what those mean And so the cloud really enabled this Renaissance with machine learning, and we're seeing honestly, And it's not a, a, a, you know, hyped up statement to And Dave's like, what do you mean by that? you gotta silo the data that needs to be siloed for compliance and reasons. I think, you know, like with any, with any technology, And if you could pull all of that together, that data engineering discipline can be incredibly transformative And I told 'em, I would ask someone at Amazon, this questions I'll ask you since you're, the tools in the cloud, which allow you to aggregate data from virtually like the domains are so broad, you kind of gotta allow your curiosity to develop and lead, Johnny Dallas is a great name by the that's fantastic. I have Johnny Johnny cube. If you do a project that's not working and you get bad data, Instantly abandoned it. trying to, you know, in the old world trying to find the resources and get the funding. And honestly, the most important thing is time just being able to jump in there, So for fun, you can just code something. And I managed to convince the team to leave them on for It's like, this is really hard. How does that impact the analytics piece? combining the data, labeling the data, training their models, uh, you know, running inference against their And so if you look at something just like Redshift serverless that we launched a reinvent, Want the answers come on. we announced, um, you know, serverless inference. is being reusing the data to actually retrain. Do you see it the same way? So today we added, you know, um, text extract queries. What's the big news happening that you're announcing here at summit in San Francisco, California, I want it to be up to date, but you know, I don't actually want to have to go my tools where I'm actually You can do everything that you would normally do. You got the serverless and your tailwind for you there. Thank Stay with us with more coverage of day two after this short break.
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AWS Heroes Panel | Open Cloud Innovations
(upbeat music) >> Hello, and welcome back to AWS Startup Showcase, I'm John Furrier, your host. This is the Hero panel, the AWS Heroes. These are folks that have a lot of experience in Open Source, having fun building great projects and commercializing the value and best practices of Open Source innovation. We've got some great guests here. Liz Rice, Chief Open Source Officer, Isovalent. CUBE alumni, great to see you. Brian LeRoux, who is the Co-founder and CTO of begin.com. Erica Windisch who's an Architect for Developer Experience. AWS Hero, also CUBE alumni. Casey Lee, CTO Gaggle. Doing some great stuff in ed tech. Great collection of experts and experienced folks doing some fun stuff, welcome to this conversation this CUBE panel. >> Hi. >> Thanks for having us. >> Hello. >> Let's go down the line. >> I don't normally do this, but since we're remote and we have such great guests, go down the line and talk about why Open Source is important to you guys. What projects are you currently working on? And what's the coolest thing going on there? Liz we'll start with you. >> Okay, so I am very involved in the world of Cloud Native. I'm the chair of the technical oversight committee for the Cloud Native Computing Foundation. So that means I get to see a lot of what's going on across a very broad range of Cloud Native projects. More specifically, Isovalent. I focus on Cilium, which is it's based on a technology called EBPF. That is to me, probably the most exciting technology right now. And then finally, I'm also involved in an organization called OpenUK, which is really pushing for more use of open technologies here in the United Kingdom. So spread around lots of different projects. And I'm in a really fortunate position, I think, to see what's happening with lots of projects and also the commercialization of lots of projects. >> Awesome, Brian what project are you working on? >> Working project these days called Architect. It's a Open Source project built on top of AWSM. It adds a lot of sugar and terseness to the SM experience and just makes it a lot easier to work with and get started. AWS can be a little bit intimidating to people at times. And the Open Source community is stepping up to make some of that bond ramp a little bit easier. And I'm also an Apache member. And so I keep a hairy eyeball on what's going on in that reality all the time. And I've been doing this open-source thing for quite a while, and yeah, I love it. It's a great thing. It's real science. We get to verify each other's work and we get to expand and build on human knowledge. So that's a huge honor to just even be able to do that and I feel stoked to be here so thanks for having me. >> Awesome, yeah, and totally great. Erica, what's your current situation going on here? What's happening? >> Sure, so I am currently working on developer experience of a number of Open Source STKS and CLI components from my current employer. And previously, recently I left New Relic where I was working on integrating with OpenTelemetry, as well as a number of other things. Before that I was a maintainer of Docker and of OpenStack. So I've been in this game for a while as well. And I tend to just put my fingers in a lot of little pies anywhere from DVD players 20 years ago to a lot of this open telemetry and monitoring and various STKs and developer tools is where like Docker and OpenStack and the STKs that I work on now, all very much focusing on developer as the user. >> Yeah, you're always on the wave, Erica great stuff. Casey, what's going on? Do you got some great ed techs happening? What's happening with you? >> Yeah, sure. The primary Open Source project that I'm contributing to right now is ACT. This is a tool I created a couple of years back when GitHub Actions first came out, and my motivation there was I'm just impatient. And that whole commit, push, wait time where you're testing out your pipelines is painful. And so I wanted to build a tool that allowed developers to test out their GitHub Actions workflows locally. And so this tool uses Docker containers to emulate, to get up action environment and gives you fast feedback on those workflows that you're building. Lot of innovation happening at GitHub. And so we're just trying to keep up and continue to replicate those new features functionalities in the local runner. And the biggest challenge I've had with this project is just keeping up with the community. We just passed 20,000 stars, and it'd be it's a normal week to get like 10 PRs. So super excited to announce just yesterday, actually I invited four of the most active contributors to help me with maintaining the project. And so this is like a big deal for me, letting the project go and bringing other people in to help lead it. So, yeah, huge shout out to those folks that have been helping with driving that project. So looking forward to what's next for it. >> Great, we'll make sure the SiliconANGLE riders catch that quote there. Great call out. Let's start, Brian, you made me realize when you mentioned Apache and then you've been watching all the stuff going on, it brings up the question of the evolution of Open Source, and the commercialization trends have been very interesting these days. You're seeing CloudScale really impact also with the growth of code. And Liz, if you remember, the Linux Foundation keeps making projections and they keep blowing past them every year on more and more code and more and more entrance coming in, not just individuals, corporations. So you starting to see Netflix donates something, you got Lyft donate some stuff, becomes a project company forms around it. There's a lot of entrepreneurial activity that's creating this new abstraction layers, new platforms, not just tools. So you start to see a new kickup trajectory with Open Source. You guys want to comment on this because this is going to impact how fast the enterprise will see value here. >> I think a really great example of that is a project called Backstage that's just come out of Spotify. And it's going through the incubation process at the CNCF. And that's why it's front of mind for me right now, 'cause I've been working on the due diligence for that. And the reason why I thought it was interesting in relation to your question is it's spun out of Spotify. It's fully Open Source. They have a ton of different enterprises using it as this developer portal, but they're starting to see some startups emerging offering like a hosted managed version of Backstage or offering services around Backstage or offering commercial plugins into Backstage. And I think it's really fascinating to see those ecosystems building up around a project and different ways that people can. I'm a big believer. You cannot sell the Open Source code, but you can sell other things that create value around Open Source projects. So that's really exciting to see. >> Great point. Anyone else want to weigh in and react to that? Because it's the new model. It's not the old way. I mean, I remember when I was in college, we had the Pirate software. Open Source wasn't around. So you had to deal under the table. Now it's free. But I mean the old way was you had to convince the enterprise, like you've got a hard knit, it builds the community and the community manage the quality of the code. And then you had to build the company to make sure they could support it. Now the companies are actually involved in it, right? And then new startups are forming faster. And the proof points are shorter and highly accelerated for that. I mean, it's a whole new- >> It's a Cambrian explosion, and it's great. It's one of those things that it's challenging for the new developers because they come in and they're like, "Whoa, what is all this stuff that I'm supposed to figure out?" And there's no right answer and there's no wrong answer. There's just tons of it. And I think that there's a desire for us to have one sort of well-known trot and happy path, that audience we're a lot better with a more diverse community, with lots of options, with lots of ways to approach these problems. And I think it's just great. A challenge that we have with all these options and all these Cambrian explosion of projects and all these competing ideas, right now, the sustainability, it's a bit of a tricky question to answer. We know that there's a commercialization aspect that helps us fund these projects, but how we compose the open versus the commercial source is still a bit of a tricky question and a tough one for a lot of folks. >> Erica, would you chime in on that for a second. I want to get your angle on that, this experience and all this code, and I'm a new person, I'm an existing person. Do I get like a blue check mark and verify? I mean, these are questions like, well, how do you navigate? >> Yeah, I think this has been something happening for a while. I mean, back in the early OpenStack days, 2010, for instance, Rackspace Open Sourcing, OpenStack and ANSU Labs and so forth, and then trying, having all these companies forming in creating startups around this. I started at a company called Cloudccaling back in late 2010, and we had some competitors such as Piston and so forth where a lot of the ANSUL Labs people went. But then, the real winners, I think from OpenStack ended up being the enterprises that jumped in. We had Red Hat in particular, as well as HP and IBM jumping in and investing in OpenStack, and really proving out a lot of... not that it was the first time, but this is when we started seeing billions of dollars pouring into Open Source projects and Open Source Foundations, such as the OpenStack Foundation, which proceeded a lot of the things that we now see with the Linux Foundation, which was then created a little bit later. And at the same time, I'm also reflecting a little bit what Brian said because there are projects that don't get funded, that don't get the same attention, but they're also getting used quite significantly. Things like Log4j really bringing this to the spotlight in terms of projects that are used everywhere by everything with significant outsized impacts on the industry that are not getting funded, that aren't flashy enough, that aren't exciting enough because it's just logging, but a vulnerability in it brings every everything and everybody down and has possibly billions of dollars of impact to our industry because nobody wanted to fund this project. >> I think that brings up the commercialization point about maybe bringing a venture capital model in saying, "Hey, that boring little logging thing could be a key ingredient for say solving some observability problems so I think let's put some cash." Again then we'd never seen that before. Now you're starting to see that kind of a real smart investment thesis going into Open Source projects. I mean, Promethease, Crafter, these are projects that turned off companies. This is turning up companies. >> A decade ago, there was no money in Dev tools that I think that's been fully debunked now. They used to be a concept that the venture community believed, but there's just too much evidence to the contrary, the companies like Cash Court, Datadog, the list goes on and on. I think the challenge for the Open Source (indistinct) comes back to foundations and working (indistinct) these developers make this code safe and secure. >> Casey, what's your reaction to all of this? You've got, so a project has gained some traction, got some momentum. There's a lot of mission critical. I won't say white spaces, but the opportunities in the big cloud game happening. And there's a lot of, I won't say too many entrepreneurial, but there's a lot of community action happening that's precommercialization that's getting traction. How does this all develop naturally and then vector in quickly when it hits? >> Yeah, I want to go back to the Log4j topic real quick. I think that it's a great example of an area that we need to do better at. And there was a cool article that Rob Pike wrote describing how to quantify the criticality. I think that's sort of quantifying criticality was the article he wrote on how to use metrics, to determine how valuable, how important a piece of Open Source is to the community. And we really need to highlight that more. We need a way to make it more clear how important this software is, how many people depend on it and how many people are contributing to it. And because right now we all do that. Like if I'm going to evaluate an Open Source software, sure, I'll look at how many stars it has and how many contributors it has. But I got to go through and do all that work myself and come up with. It would be really great if we had an agreed upon method for ranking the criticality of software, but then also the risk, hey, that this is used by a ton of people, but nobody's contributing to it anymore. That's a concern. And that would be great to potential users of that to signal whether or not it makes sense. The Open Source Security Foundation, just getting off the ground, they're doing some work in this space, and I'm really excited to see where they go with that looking at ways to stop score critically. >> Well, this brings up a good point while we've got everyone here, let's take a plug and plug a project you think that's not getting the visibility it needs. Let's go through each of you, point out a project that you think people should be looking at and talking about that might get some free visibility here. Anyone want to highlight projects they think should be focused more on, or that needs a little bit of love? >> I think, I mean, particularly if we're talking about these sort of vulnerability issues, there's a ton of work going on, like in the Secure Software Foundation, other foundations, I think there's work going on in Apache somewhere as well around the bill of material, the software bill of materials, the Secure Software supply chain security, even enumerating your dependencies is not trivial today. So I think there's going to be a ton of people doing really good work on that, as well as the criticality aspect. It's all like that. There's a really great xkcd cartoon with your software project and some really big monolithic lumps. And then, this tiny little piece in a very important point that's maintained by somebody in his bedroom in Montana or something and if you called it out. >> Yeah, you just opened where the next lightening and a bottle comes from. And this is I think the beauty of Open Source is that you get a little collaboration, you get three feet in a cloud of dust going and you get some momentum, and if it's relevant, it rises to the top. I think that's the collective intelligence of Open Source. The question I want to ask that the panel here is when you go into an enterprise, and now that the game is changing with a much more collaborative and involved, what's the story if they say, hey, what's in it for me, how do I manage the Open Source? What's the current best practice? Because there's no doubt I can't ignore it. It's in everything we do. How do I organize around it? How do I build around it to be more efficient and more productive and reduce the risk on vulnerabilities to managing staff, making sure the right teams in place, the right agility and all those things? >> You called it, they got to get skin in the game. They need to be active and involved and donating to a sustainable Open Source project is a great way to start. But if you really want to be active, then you should be committing. You should have a goal for your organization to be contributing back to that project. Maybe not committing code, it could be committing resources into the darks or in the tests, or even tweeting about an Open Source project is contributing to it. And I think a lot of these enterprises could benefit a lot from getting more active with the Open Source Foundations that are out there. >> Liz, you've been actively involved. I know we've talked personally when the CNCF started, which had a great commercial uptake from companies. What do you think the current state-of-the-art kind of equation is has it changed a little bit? Or is it the game still the same? >> Yeah, and in the early days of the CNCF, it was very much dominated by vendors behind the project. And now we're seeing more and more membership from end-user companies, the kind of enterprises that are building their businesses on Cloud Native, but their business is not in itself. That's not there. The infrastructure is not their business. And I think seeing those companies, putting money in, putting time in, as Brian says contributing resources quite often, there's enough money, but finding the talent to do the work and finding people who are prepared to actually chop the wood and carry the water, >> Exactly. >> that it's hard. >> And if enterprises can find peoples to spend time on Open Source projects, help with those chores, it's hugely valuable. And it's one of those the rising tide floats all the boats. We can raise security, we can reduce the amount of dependency on maintain projects collectively. >> I think the business models there, I think one of the things I'll react to and then get your guys' comments is remember which CubeCon it was, it was one of the early ones. And I remember seeing Apple having a booth, but nobody was manning. It was just an Apple booth. They weren't doing anything, but they were recruiting. And I think you saw the transition of a business model where the worry about a big vendor taking over a project and having undue influence over it goes away because I think this idea of participation is also talent, but also committing that talent back into the communities as a model, as a business model, like, okay, hire some great people, but listen, don't screw up the Open Source piece of it 'cause that's a critical. >> Also hire a channel, right? They can use those contributions to source that talent and build the reputation in the communities that they depend on. And so there's really a lot of benefit to the larger organizations that can do this. They'll have a huge pipeline of really qualified engineers right out the gate without having to resort to cheesy whiteboard interviews, which is pretty great. >> Yeah, I agree with a lot of this. One of my concerns is that a lot of these corporations tend to focus very narrowly on certain projects, which they feel that they depend greatly, they'll invest in OpenStack, they'll invest in Docker, they'll invest in some of the CNCF projects. And then these other projects get ignored. Something that I've been a proponent of for a little bit for a while is observability of your dependencies. And I don't think there's quite enough projects and solutions to this. And it sounds maybe from lists, there are some projects that I don't know about, but I also know that there's some startups like Snyk and so forth that help with a little bit of this problem, but I think we need more focus on some of these edges. And I think companies need to do better, both in providing, having some sort of solution for observability of the dependencies, as well as understanding those dependencies and managing them. I've seen companies for instance, depending on software that they actively don't want to use based on a certain criteria that they already set projects, like they'll set a requirement that any project that they use has a code of conduct, but they'll then use projects that don't have codes of conduct. And if they don't have a code of conduct, then employees are prohibited from working on those projects. So you've locked yourself into a place where you're depending on software that you have instructed, your employees are not allowed to contribute to, for certain legal and other reasons. So you need to draw a line in the sand and then recognize that those projects are ones that you don't want to consume, and then not use them, and have observability around these things. >> That's a great point. I think we have 10 minutes left. I want to just shift to a topic that I think is relevant. And that is as Open Source software, software, people develop software, you see under the hood kind of software, SREs developing very quickly in the CloudScale, but also you've got your classic software developers who were writing code. So you have supply chain, software supply chain challenges. You mentioned developer experience around how to code. You have now automation in place. So you've got the development of all these things that are happening. Like I just want to write software. Some people want to get and do infrastructure as code so DevSecOps is here. So how does that look like going forward? How has the future of Open Source going to make the developers just want to code quickly? And the folks who want to tweak the infrastructure a bit more efficient, any views on that? >> At Gaggle, we're using AWS' CDK, exclusively for our infrastructure as code. And it's a great transition for developers instead of writing Yammel or Jason, or even HCL for their infrastructure code, now they're writing code in the language that they're used to Python or JavaScript, and what that's providing is an easier transition for developers into that Infrastructure as code at Gaggle here, but it's also providing an opportunity to provide reusable constructs that some Devs can build on. So if we've got a very opinionated way to deploy a serverless app in a database and do auto-scaling behind and all stuff, we can present that to a developer as a library, and they can just consume it as it is. Maybe that's as deep as they want to go and they're happy with that. But then they want to go deeper into it, they can either use some of the lower level constructs or create PRs to the platform team to have those constructs changed to fit their needs. So it provides a nice on-ramp developers to use the tools and languages they're used to, and then also go deeper as they need. >> That's awesome. Does that mean they're not full stack developers anymore that they're half stack developers they're taking care of for them? >> I don't know either. >> We'll in. >> No, only kidding. Anyway, any other reactions to this whole? I just want to code, make it easy for me, and some people want to get down and dirty under the hood. >> So I think that for me, Docker was always a key part of this. I don't know when DevSecOps was coined exactly, but I was talking with people about it back in 2012. And when I joined Docker, it was a part of that vision for me, was that Docker was applying these security principles by default for your application. It wasn't, I mean, yes, everybody adopted because of the portability and the acceleration of development, but it was for me, the fact that it was limiting what you could do from a security angle by default, and then giving you these tuna balls that you can control it further. You asked about a project that may not get enough recognition is something called DockerSlim, which is designed to optimize your containers and will make them smaller, but it also constraints the security footprint, and we'll remove capabilities from the container. It will help you build security profiles for app armor and the Red Hat one. SELinux. >> SELinux. >> Yeah, and this is something that I think a lot of developers, it's kind of outside of the realm of things that they're really thinking about. So the more that we can automate those processes and make it easier out of the box for users or for... when I say users, I mean, developers, so that it's straightforward and automatic and also giving them the capability of refining it and tuning it as needed, or simply choosing platforms like serverless offerings, which have these security constraints built in out of the box and sometimes maybe less tuneable, but very strong by default. And I think that's a good place for us to be is where we just enforced these things and make you do things in a secure way. >> Yeah, I'm a huge fan of Kubernetes, but it's not the right hammer for every nail. And there are absolutely tons of applications that are better served by something like Lambda where a lot more of that security surface is taken care of for the developer. And I think we will see better tooling around security profiling and making it easier to shrink wrap your applications that there are plenty of products out there that can help you with this in a cloud native environment. But I think for the smaller developer let's say, or an earlier stage company, yeah, it needs to be so much more straightforward. Really does. >> Really an interesting time, 10 years ago, when I was working at Adobe, we used to requisition all these analysts to tell us how many developers there were for the market. And we thought there was about 20 million developers. If GitHub's to be believed, we think there is now around 80 million developers. So both these groups are probably wrong in their numbers, but the takeaway here for me is that we've got a lot of new developers and a lot of these new developers are really struck by a paradox of choice. And they're typically starting on the front end. And so there's a lot of movement in the stack moved towards the front end. We saw that at re:Invent when Amazon was really pushing Amplify 'cause they're seeing this too. It's interesting because this is where folks start. And so a lot of the obstructions are moving in that direction, but maybe not always necessarily totally appropriate. And so finding the right balance for folks is still a work in progress. Like Lambda is a great example. It lets me focus totally on just business logic. I don't have to think about infrastructure pretty much at all. And if I'm newer to the industry, that makes a lot of sense to me. As use cases expand, all of a sudden, reality intervenes, and it might not be appropriate for everything. And so figuring out what those edges are, is still the challenge, I think. >> All right, thank you very much for coming on the CUBE here panel. AWS Heroes, thanks everyone for coming. I really appreciate it, thank you. >> Thank you. >> Thank you. >> Okay. >> Thanks for having me. >> Okay, that's a wrap here back to the program and the awesome startups. Thanks for watching. (upbeat music)
SUMMARY :
and commercializing the value is important to you guys. and also the commercialization that reality all the time. Erica, what's your current and the STKs that I work on now, the wave, Erica great stuff. and continue to replicate those and the commercialization trends And the reason why I and the community manage that I'm supposed to figure out?" in on that for a second. that don't get the same attention, the commercialization point that the venture community believed, but the opportunities in the of that to signal whether and plug a project you think So I think there's going to be and now that the game is changing and donating to a sustainable Or is it the game still the same? but finding the talent to do the work the rising tide floats all the boats. And I think you saw the and build the reputation And I think companies need to do better, And the folks who want to in the language that they're Does that mean they're not and some people want to get and the acceleration of development, of the realm of things and making it easier to And so finding the right balance for folks for coming on the CUBE here panel. the awesome startups.
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Breaking Analysis: Enterprise Technology Predictions 2022
>> From theCUBE Studios in Palo Alto and Boston, bringing you data-driven insights from theCUBE and ETR, this is Breaking Analysis with Dave Vellante. >> The pandemic has changed the way we think about and predict the future. As we enter the third year of a global pandemic, we see the significant impact that it's had on technology strategy, spending patterns, and company fortunes Much has changed. And while many of these changes were forced reactions to a new abnormal, the trends that we've seen over the past 24 months have become more entrenched, and point to the way that's coming ahead in the technology business. Hello and welcome to this week's Wikibon CUBE Insights powered by ETR. In this Breaking Analysis, we welcome our partner and colleague and business friend, Erik Porter Bradley, as we deliver what's becoming an annual tradition for Erik and me, our predictions for Enterprise Technology in 2022 and beyond Erik, welcome. Thanks for taking some time out. >> Thank you, Dave. Luckily we did pretty well last year, so we were able to do this again. So hopefully we can keep that momentum going. >> Yeah, you know, I want to mention that, you know, we get a lot of inbound predictions from companies and PR firms that help shape our thinking. But one of the main objectives that we have is we try to make predictions that can be measured. That's why we use a lot of data. Now not all will necessarily fit that parameter, but if you've seen the grading of our 2021 predictions that Erik and I did, you'll see we do a pretty good job of trying to put forth prognostications that can be declared correct or not, you know, as black and white as possible. Now let's get right into it. Our first prediction, we're going to go run into spending, something that ETR surveys for quarterly. And we've reported extensively on this. We're calling for tech spending to increase somewhere around 8% in 2022, we can see there on the slide, Erik, we predicted spending last year would increase by 4% IDC. Last check was came in at five and a half percent. Gardner was somewhat higher, but in general, you know, not too bad, but looking ahead, we're seeing an acceleration from the ETR September surveys, as you can see in the yellow versus the blue bar in this chart, many of the SMBs that were hard hit by the pandemic are picking up spending again. And the ETR data is showing acceleration above the mean for industries like energy, utilities, retail, and services, and also, notably, in the Forbes largest 225 private companies. These are companies like Mars or Koch industries. They're predicting well above average spending for 2022. So Erik, please weigh in here. >> Yeah, a lot to bring up on this one, I'm going to be quick. So 1200 respondents on this, over a third of which were at the C-suite level. So really good data that we brought in, the usual bucket of, you know, fortune 500, global 2000 make up the meat of that median, but it's 8.3% and rising with momentum as we see. What's really interesting right now is that energy and utilities. This is usually like, you know, an orphan stock dividend type of play. You don't see them at the highest point of tech spending. And the reason why right now is really because this state of tech infrastructure in our energy infrastructure needs help. And it's obvious, remember the Florida municipality break reach last year? When they took over the water systems or they had the ability to? And this is a real issue, you know, there's bad nation state actors out there, and I'm no alarmist, but the energy and utility has to spend this money to keep up. It's really important. And then you also hit on the retail consumer. Obviously what's happened, the work from home shift created a shop from home shift, and the trends that are happening right now in retail. If you don't spend and keep up, you're not going to be around much longer. So I think the really two interesting things here to call out are energy utilities, usually a laggard in IT spend and it's leading, and also retail consumer, a lot of changes happening. >> Yeah. Great stuff. I mean, I recall when we entered the pandemic, really ETR was the first to emphasize the impact that work from home was going to have, so I really put a lot of weight on this data. Okay. Our next prediction is we're going to get into security, it's one of our favorite topics. And that is that the number one priority that needs to be addressed by organizations in 2022 is security and you can see, in this slide, the degree to which security is top of mind, relative to some other pretty important areas like cloud, productivity, data, and automation, and some others. Now people may say, "Oh, this is obvious." But I'm going to add some context here, Erik, and then bring you in. First, organizations, they don't have unlimited budgets. And there are a lot of competing priorities for dollars, especially with the digital transformation mandate. And depending on the size of the company, this data will vary. For example, while security is still number one at the largest public companies, and those are of course of the biggest spenders, it's not nearly as pronounced as it is on average, or in, for example, mid-sized companies and government agencies. And this is because midsized companies or smaller companies, they don't have the resources that larger companies do. Larger companies have done a better job of securing their infrastructure. So these mid-size firms are playing catch up and the data suggests cyber is even a bigger priority there, gaps that they have to fill, you know, going forward. And that's why we think there's going to be more demand for MSSPs, managed security service providers. And we may even see some IPO action there. And then of course, Erik, you and I have talked about events like the SolarWinds Hack, there's more ransomware attacks, other vulnerabilities. Just recently, like Log4j in December. All of this has heightened concerns. Now I want to talk a little bit more about how we measure this, you know, relatively, okay, it's an obvious prediction, but let's stick our necks out a little bit. And so in addition to the rise of managed security services, we're calling for M&A and/or IPOs, we've specified some names here on this chart, and we're also pointing to the digital supply chain as an area of emphasis. Again, Log4j really shone that under a light. And this is going to help the likes of Auth0, which is now Okta, SailPoint, which is called out on this chart, and some others. We're calling some winners in end point security. Erik, you're going to talk about sort of that lifecycle, that transformation that we're seeing, that migration to new endpoint technologies that are going to benefit from this reset refresh cycle. So Erik, weigh in here, let's talk about some of the elements of this prediction and some of the names on that chart. >> Yeah, certainly. I'm going to start right with Log4j top of mind. And the reason why is because we're seeing a real paradigm shift here where things are no longer being attacked at the network layer, they're being attacked at the application layer, and in the application stack itself. And that is a huge shift left. And that's taking in DevSecOps now as a real priority in 2022. That's a real paradigm shift over the last 20 years. That's not where attacks used to come from. And this is going to have a lot of changes. You called out a bunch of names in there that are, they're either going to work. I would add to that list Wiz. I would add Orca Security. Two names in our emerging technology study, in addition to the ones you added that are involved in cloud security and container security. These names are either going to get gobbled up. So the traditional legacy names are going to have to start writing checks and, you know, legacy is not fair, but they're in the data center, right? They're, on-prem, they're not cloud native. So these are the names that money is going to be flowing to. So they're either going to get gobbled up, or we're going to see some IPO's. And on the other thing I want to talk about too, is what you mentioned. We have CrowdStrike on that list, We have SentinalOne on the list. Everyone knows them. Our data was so strong on Tanium that we actually went positive for the first time just today, just this morning, where that was released. The trifecta of these are so important because of what you mentioned, under resourcing. We can't have security just tell us when something happens, it has to automate, and it has to respond. So in this next generation of EDR and XDR, an automated response has to happen because people are under-resourced, salaries are really high, there's a skill shortage out there. Security has to become responsive. It can't just monitor anymore. >> Yeah. Great. And we should call out too. So we named some names, Snyk, Aqua, Arctic Wolf, Lacework, Netskope, Illumio. These are all sort of IPO, or possibly even M&A candidates. All right. Our next prediction goes right to the way we work. Again, something that ETR has been on for awhile. We're calling for a major rethink in remote work for 2022. We had predicted last year that by the end of 2021, there'd be a larger return to the office with the norm being around a third of workers permanently remote. And of course the variants changed that equation and, you know, gave more time for people to think about this idea of hybrid work and that's really come in to focus. So we're predicting that is going to overtake fully remote as the dominant work model with only about a third of the workers back in the office full-time. And Erik, we expect a somewhat lower percentage to be fully remote. It's now sort of dipped under 30%, at around 29%, but it's still significantly higher than the historical average of around 15 to 16%. So still a major change, but this idea of hybrid and getting hybrid right, has really come into focus. Hasn't it? >> Yeah. It's here to stay. There's no doubt about it. We started this in March of 2020, as soon as the virus hit. This is the 10th iteration of the survey. No one, no one ever thought we'd see a number where only 34% of people were going to be in office permanently. That's a permanent number. They're expecting only a third of the workers to ever come back fully in office. And against that, there's 63% that are saying their permanent workforce is going to be either fully remote or hybrid. And this, I can't really explain how big of a paradigm shift this is. Since the start of the industrial revolution, people leave their house and go to work. Now they're saying that's not going to happen. The economic impact here is so broad, on so many different areas And, you know, the reason is like, why not? Right? The productivity increase is real. We're seeing the productivity increase. Enterprises are spending on collaboration tools, productivity tools, We're seeing an increased perception in productivity of their workforce. And the CFOs can cut down an expense item. I just don't see a reason why this would end, you know, I think it's going to continue. And I also want to point out these results, as high as they are, were before the Omicron wave hit us. I can only imagine what these results would have been if we had sent the survey out just two or three weeks later. >> Yeah. That's a great point. Okay. Next prediction, we're going to look at the supply chain, specifically in how it's affecting some of the hardware spending and cloud strategies in the future. So in this chart, ETRS buyers, have you experienced problems procuring hardware as a result of supply chain issues? And, you know, despite the fact that some companies are, you know, I would call out Dell, for example, doing really well in terms of delivering, you can see that in the numbers, it's pretty clear, there's been an impact. And that's not not an across the board, you know, thing where vendors are able to deliver, especially acute in PCs, but also pronounced in networking, also in firewall servers and storage. And what's interesting is how companies are responding and reacting. So first, you know, I'm going to call the laptop and PC demand staying well above pre-COVID norms. It had peaked in 2012. Pre-pandemic it kept dropping and dropping and dropping, in terms of, you know, unit volume, where the market was contracting. And we think can continue to grow this year in double digits in 2022. But what's interesting, Erik, is when you survey customers, is despite the difficulty they're having in procuring network hardware, there's as much of a migration away from existing networks to the cloud. You could probably comment on that. Their networks are more fossilized, but when it comes to firewalls and servers and storage, there's a much higher propensity to move to the cloud. 30% of customers that ETR surveyed will replace security appliances with cloud services and 41% and 34% respectively will move to cloud compute and storage in 2022. So cloud's relentless march on traditional on-prem models continues. Erik, what do you make of this data? Please weigh in on this prediction. >> As if we needed another reason to go to the cloud. Right here, here it is yet again. So this was added to the survey by client demand. They were asking about the procurement difficulties, the supply chain issues, and how it was impacting our community. So this is the first time we ran it. And it really was interesting to see, you know, the move there. And storage particularly I found interesting because it correlated with a huge jump that we saw on one of our vendor names, which was Rubrik, had the highest net score that it's ever had. So clearly we're seeing some correlation with some of these names that are there, you know, really well positioned to take storage, to take data into the cloud. So again, you didn't need another reason to, you know, hasten this digital transformation, but here we are, we have it yet again, and I don't see it slowing down anytime soon. >> You know, that's a really good point. I mean, it's not necessarily bad news for the... I mean, obviously you wish that it had no change, would be great, but things, you know, always going to change. So we'll talk about this a little bit later when we get into the Supercloud conversation, but this is an opportunity for people who embrace the cloud. So we'll come back to that. And I want to hang on cloud a bit and share some recent projections that we've made. The next prediction is the big four cloud players are going to surpass 167 billion, an IaaS and PaaS revenue in 2022. We track this. Observers of this program know that we try to create an apples to apples comparison between AWS, Azure, GCP and Alibaba in IaaS and PaaS. So we're calling for 38% revenue growth in 2022, which is astounding for such a massive market. You know, AWS is probably not going to hit a hundred billion dollar run rate, but they're going to be close this year. And we're going to get there by 2023, you know they're going to surpass that. Azure continues to close the gap. Now they're about two thirds of the size of AWS and Google, we think is going to surpass Alibaba and take the number three spot. Erik, anything you'd like to add here? >> Yeah, first of all, just on a sector level, we saw our sector, new survey net score on cloud jumped another 10%. It was already really high at 48. Went up to 53. This train is not slowing down anytime soon. And we even added an edge compute type of player, like CloudFlare into our cloud bucket this year. And it debuted with a net score of almost 60. So this is really an area that's expanding, not just the big three, but everywhere. We even saw Oracle and IBM jump up. So even they're having success, taking some of their on-prem customers and then selling them to their cloud services. This is a massive opportunity and it's not changing anytime soon, it's going to continue. >> And I think the operative word there is opportunity. So, you know, the next prediction is something that we've been having fun with and that's this Supercloud becomes a thing. Now, the reason I say we've been having fun is we put this concept of Supercloud out and it's become a bit of a controversy. First, you know, what the heck's the Supercloud right? It's sort of a buzz-wordy term, but there really is, we believe, a thing here. We think there needs to be a rethinking or at least an evolution of the term multi-cloud. And what we mean is that in our view, you know, multicloud from a vendor perspective was really cloud compatibility. It wasn't marketed that way, but that's what it was. Either a vendor would containerize its legacy stack, shove it into the cloud, or a company, you know, they'd do the work, they'd build a cloud native service on one of the big clouds and they did do it for AWS, and then Azure, and then Google. But there really wasn't much, if any, leverage across clouds. Now from a buyer perspective, we've always said multicloud was a symptom of multi-vendor, meaning I got different workloads, running in different clouds, or I bought a company and they run on Azure, and I do a lot of work on AWS, but generally it wasn't necessarily a prescribed strategy to build value on top of hyperscale infrastructure. There certainly was somewhat of a, you know, reducing lock-in and hedging the risk. But we're talking about something more here. We're talking about building value on top of the hyperscale gift of hundreds of billions of dollars in CapEx. So in addition, we're not just talking about transforming IT, which is what the last 10 years of cloud have been like. And, you know, doing work in the cloud because it's cheaper or simpler or more agile, all of those things. So that's beginning to change. And this chart shows some of the technology vendors that are leaning toward this Supercloud vision, in our view, building on top of the hyperscalers that are highlighted in red. Now, Jerry Chan at Greylock, they wrote a piece called Castles in the Cloud. It got our thinking going, and he and the team at Greylock, they're building out a database of all the cloud services and all the sub-markets in cloud. And that got us thinking that there's a higher level of abstraction coalescing in the market, where there's tight integration of services across clouds, but the underlying complexity is hidden, and there's an identical experience across clouds, and even, in my dreams, on-prem for some platforms, so what's new or new-ish and evolving are things like location independence, you've got to include the edge on that, metadata services to optimize locality of reference and data source awareness, governance, privacy, you know, application independent and dependent, actually, recovery across clouds. So we're seeing this evolve. And in our view, the two biggest things that are new are the technology is evolving, where you're seeing services truly integrate cross-cloud. And the other big change is digital transformation, where there's this new innovation curve developing, and it's not just about making your IT better. It's about SaaS-ifying and automating your entire company workflows. So Supercloud, it's not just a vendor thing to us. It's the evolution of, you know, the, the Marc Andreessen quote, "Every company will be a SaaS company." Every company will deliver capabilities that can be consumed as cloud services. So Erik, the chart shows spending momentum on the y-axis and net score, or presence in the ETR data center, or market share on the x-axis. We've talked about snowflake as the poster child for this concept where the vision is you're in their cloud and sharing data in that safe place. Maybe you could make some comments, you know, what do you think of this Supercloud concept and this change that we're sensing in the market? >> Well, I think you did a great job describing the concept. So maybe I'll support it a little bit on the vendor level and then kind of give examples of the ones that are doing it. You stole the lead there with Snowflake, right? There is no better example than what we've seen with what Snowflake can do. Cross-portability in the cloud, the ability to be able to be, you know, completely agnostic, but then build those services on top. They're better than anything they could offer. And it's not just there. I mean, you mentioned edge compute, that's a whole nother layer where this is coming in. And CloudFlare, the momentum there is out of control. I mean, this is a company that started off just doing CDN and trying to compete with Okta Mite. And now they're giving you a full soup to nuts with security and actual edge compute layer, but it's a fantastic company. What they're doing, it's another great example of what you're seeing here. I'm going to call out HashiCorp as well. They're more of an infrastructure services, a little bit more of an open-source freemium model, but what they're doing as well is completely cloud agnostic. It's dynamic. It doesn't care if you're in a container, it doesn't matter where you are. They recently IPO'd and they're down 25%, but their data looks so good across both of our emerging technology and TISA survey. It's certainly another name that's playing on this. And another one that we mentioned as well is Rubrik. If you need storage, compute, and in the cloud layer and you need to be agnostic to it, they're another one that's really playing in this space. So I think it's a great concept you're bringing up. I think it's one that's here to stay and there's certainly a lot of vendors that fit into what you're describing. >> Excellent. Thank you. All right, let's shift to data. The next prediction, it might be a little tough to measure. Before I said we're trying to be a little black and white here, but it relates to Data Mesh, which is, the ideas behind that term were created by Zhamak Dehghani of ThoughtWorks. And we see Data Mesh is really gaining momentum in 2022, but it's largely going to be, we think, confined to a more narrow scope. Now, the impetus for change in data architecture in many companies really stems from the fact that their Hadoop infrastructure really didn't solve their data problems and they struggle to get more value out of their data investments. Data Mesh prescribes a shift to a decentralized architecture in domain ownership of data and a shift to data product thinking, beyond data for analytics, but data products and services that can be monetized. Now this a very powerful in our view, but they're difficult for organizations to get their heads around and further decentralization creates the need for a self-service platform and federated data governance that can be automated. And not a lot of standards around this. So it's going to take some time. At our power panel a couple of weeks ago on data management, Tony Baer predicted a backlash on Data Mesh. And I don't think it's going to be so much of a backlash, but rather the adoption will be more limited. Most implementations we think are going to use a starting point of AWS and they'll enable domains to access and control their own data lakes. And while that is a very small slice of the Data Mesh vision, I think it's going to be a starting point. And the last thing I'll say is, this is going to take a decade to evolve, but I think it's the right direction. And whether it's a data lake or a data warehouse or a data hub or an S3 bucket, these are really, the concept is, they'll eventually just become nodes on the data mesh that are discoverable and access is governed. And so the idea is that the stranglehold that the data pipeline and process and hyper-specialized roles that they have on data agility is going to evolve. And decentralized architectures and the democratization of data will eventually become a norm for a lot of different use cases. And Erik, I wonder if you'd add anything to this. >> Yeah. There's a lot to add there. The first thing that jumped out to me was that that mention of the word backlash you said, and you said it's not really a backlash, but what it could be is these are new words trying to solve an old problem. And I do think sometimes the industry will notice that right away and maybe that'll be a little pushback. And the problems are what you already mentioned, right? We're trying to get to an area where we can have more assets in our data site, more deliverable, and more usable and relevant to the business. And you mentioned that as self-service with governance laid on top. And that's really what we're trying to get to. Now, there's a lot of ways you can get there. Data fabric is really the technical aspect and data mesh is really more about the people, the process, and the governance, but the two of those need to meet, in order to make that happen. And as far as tools, you know, there's even cataloging names like Informatica that play in this, right? Istio plays in this, Snowflake plays in this. So there's a lot of different tools that will support it. But I think you're right in calling out AWS, right? They have AWS Lake, they have AWS Glue. They have so much that's trying to drive this. But I think the really important thing to keep here is what you said. It's going to be a decade long journey. And by the way, we're on the shoulders of giants a decade ago that have even gotten us to this point to talk about these new words because this has been an ongoing type of issue, but ultimately, no matter which vendors you use, this is going to come down to your data governance plan and the data literacy in your business. This is really about workflows and people as much as it is tools. So, you know, the new term of data mesh is wonderful, but you still have to have the people and the governance and the processes in place to get there. >> Great, thank you for that, Erik. Some great points. All right, for the next prediction, we're going to shine the spotlight on two of our favorite topics, Snowflake and Databricks, and the prediction here is that, of course, Databricks is going to IPO this year, as expected. Everybody sort of expects that. And while, but the prediction really is, well, while these two companies are facing off already in the market, they're also going to compete with each other for M&A, especially as Databricks, you know, after the IPO, you're going to have, you know, more prominence and a war chest. So first, these companies, they're both looking pretty good, the same XY graph with spending velocity and presence and market share on the horizontal axis. And both Snowflake and Databricks are well above that magic 40% red dotted line, the elevated line, to us. And for context, we've included a few other firms. So you can see kind of what a good position these two companies are really in, especially, I mean, Snowflake, wow, it just keeps moving to the right on this horizontal picture, but maintaining the next net score in the Y axis. Amazing. So, but here's the thing, Databricks is using the term Lakehouse implying that it has the best of data lakes and data warehouses. And Snowflake has the vision of the data cloud and data sharing. And Snowflake, they've nailed analytics, and now they're moving into data science in the domain of Databricks. Databricks, on the other hand, has nailed data science and is moving into the domain of Snowflake, in the data warehouse and analytics space. But to really make this seamless, there has to be a semantic layer between these two worlds and they're either going to build it or buy it or both. And there are other areas like data clean rooms and privacy and data prep and governance and machine learning tooling and AI, all that stuff. So the prediction is they'll not only compete in the market, but they'll step up and in their competition for M&A, especially after the Databricks IPO. We've listed some target names here, like Atscale, you know, Iguazio, Infosum, Habu, Immuta, and I'm sure there are many, many others. Erik, you care to comment? >> Yeah. I remember a year ago when we were talking Snowflake when they first came out and you, and I said, "I'm shocked if they don't use this war chest of money" "and start going after more" "because we know Slootman, we have so much respect for him." "We've seen his playbook." And I'm actually a little bit surprised that here we are, at 12 months later, and he hasn't spent that money yet. So I think this prediction's just spot on. To talk a little bit about the data side, Snowflake is in rarefied air. It's all by itself. It is the number one net score in our entire TISA universe. It is absolutely incredible. There's almost no negative intentions. Global 2000 organizations are increasing their spend on it. We maintain our positive outlook. It's really just, you know, stands alone. Databricks, however, also has one of the highest overall net sentiments in the entire universe, not just its area. And this is the first time we're coming up positive on this name as well. It looks like it's not slowing down. Really interesting comment you made though that we normally hear from our end-user commentary in our panels and our interviews. Databricks is really more used for the data science side. The MLAI is where it's best positioned in our survey. So it might still have some catching up to do to really have that caliber of usability that you know Snowflake is seeing right now. That's snowflake having its own marketplace. There's just a lot more to Snowflake right now than there is Databricks. But I do think you're right. These two massive vendors are sort of heading towards a collision course, and it'll be very interesting to see how they deploy their cash. I think Snowflake, with their incredible management and leadership, probably will make the first move. >> Well, I think you're right on that. And by the way, I'll just add, you know, Databricks has basically said, hey, it's going to be easier for us to come from data lakes into data warehouse. I'm not sure I buy that. I think, again, that semantic layer is a missing ingredient. So it's going to be really interesting to see how this plays out. And to your point, you know, Snowflake's got the war chest, they got the momentum, they've got the public presence now since November, 2020. And so, you know, they're probably going to start making some aggressive moves. Anyway, next prediction is something, Erik, that you and I have talked about many, many times, and that is observability. I know it's one of your favorite topics. And we see this world screaming for more consolidation it's going all in on cloud native. These legacy stacks, they're fighting to stay relevant, but the direction is pretty clear. And the same XY graph lays out the players in the field, with some of the new entrants that we've also highlighted, like Observe and Honeycomb and ChaosSearch that we've talked about. Erik, we put a big red target around Splunk because everyone wants their gold. So please give us your thoughts. >> Oh man, I feel like I've been saying negative things about Splunk for too long. I've got a bad rap on this name. The Splunk shareholders come after me all the time. Listen, it really comes down to this. They're a fantastic company that was designed to do logging and monitoring and had some great tool sets around what you could do with it. But they were designed for the data center. They were designed for prem. The world we're in now is so dynamic. Everything I hear from our end user community is that all net new workloads will be going to cloud native players. It's that simple. So Splunk has entrenched. It's going to continue doing what it's doing and it does it really, really well. But if you're doing something new, the new workloads are going to be in a dynamic environment and that's going to go to the cloud native players. And in our data, it is extremely clear that that means Datadog and Elastic. They are by far number one and two in net score, increase rates, adoption rates. It's not even close. Even New Relic actually is starting to, you know, entrench itself really well. We saw New Relic's adoption's going up, which is super important because they went to that freemium model, you know, to try to get their little bit of an entrenched customer base and that's working as well. And then you made a great list here, of all the new entrants, but it goes beyond this. There's so many more. In our emerging technology survey, we're seeing Century, Catchpoint, Securonix, Lucid Works. There are so many options in this space. And let's not forget, the biggest data that we're seeing is with Grafana. And Grafana labs as yet to turn on their enterprise. Elastic did it, why can't Grafana labs do it? They have an enterprise stack. So when you look at how crowded this space is, there has to be consolidation. I recently hosted a panel and every single guy on that panel said, "Please give me a consolidation." Because they're the end users trying to actually deploy these and it's getting a little bit confusing. >> Great. Thank you for that. Okay. Last prediction. Erik, might be a little out of your wheelhouse, but you know, you might have some thoughts on it. And that's a hybrid events become the new digital model and a new category in 2022. You got these pure play digital or virtual events. They're going to take a back seat to in-person hybrids. The virtual experience will eventually give way to metaverse experiences and that's going to take some time, but the physical hybrid is going to drive it. And metaverse is ultimately going to define the virtual experience because the virtual experience today is not great. Nobody likes virtual. And hybrid is going to become the business model. Today's pure virtual experience has to evolve, you know, theCUBE first delivered hybrid mid last decade, but nobody really wanted it. We did Mobile World Congress last summer in Barcelona in an amazing hybrid model, which we're showing in some of the pictures here. Alex, if you don't mind bringing that back up. And every physical event that we're we're doing now has a hybrid and virtual component, including the pre-records. You can see in our studios, you see that the green screen. I don't know. Erik, what do you think about, you know, the Zoom fatigue and all this. I know you host regular events with your round tables, but what are your thoughts? >> Well, first of all, I think you and your company here have just done an amazing job on this. So that's really your expertise. I spent 20 years of my career hosting intimate wall street idea dinners. So I'm better at navigating a wine list than I am navigating a conference floor. But I will say that, you know, the trend just goes along with what we saw. If 35% are going to be fully remote. If 70% are going to be hybrid, then our events are going to be as well. I used to host round table dinners on, you know, one or two nights a week. Now those have gone virtual. They're now panels. They're now one-on-one interviews. You know, we do chats. We do submitted questions. We do what we can, but there's no reason that this is going to change anytime soon. I think you're spot on here. >> Yeah. Great. All right. So there you have it, Erik and I, Listen, we always love the feedback. Love to know what you think. Thank you, Erik, for your partnership, your collaboration, and love doing these predictions with you. >> Yeah. I always enjoy them too. And I'm actually happy. Last year you made us do a baker's dozen, so thanks for keeping it to 10 this year. >> (laughs) We've got a lot to say. I know, you know, we cut out. We didn't do much on crypto. We didn't really talk about SaaS. I mean, I got some thoughts there. We didn't really do much on containers and AI. >> You want to keep going? I've got another 10 for you. >> RPA...All right, we'll have you back and then let's do that. All right. All right. Don't forget, these episodes are all available as podcasts, wherever you listen, all you can do is search Breaking Analysis podcast. Check out ETR's website at etr.plus, they've got a new website out. It's the best data in the industry, and we publish a full report every week on wikibon.com and siliconangle.com. You can always reach out on email, David.Vellante@siliconangle.com I'm @DVellante on Twitter. Comment on our LinkedIn posts. This is Dave Vellante for the Cube Insights powered by ETR. Have a great week, stay safe, be well. And we'll see you next time. (mellow music)
SUMMARY :
bringing you data-driven and predict the future. So hopefully we can keep to mention that, you know, And this is a real issue, you know, And that is that the number one priority and in the application stack itself. And of course the variants And the CFOs can cut down an expense item. the board, you know, thing interesting to see, you know, and take the number three spot. not just the big three, but everywhere. It's the evolution of, you know, the, the ability to be able to be, and the democratization of data and the processes in place to get there. and is moving into the It is the number one net score And by the way, I'll just add, you know, and that's going to go to has to evolve, you know, that this is going to change anytime soon. Love to know what you think. so thanks for keeping it to 10 this year. I know, you know, we cut out. You want to keep going? This is Dave Vellante for the
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Alexis Richardson, Weaveworks | CUBE Conversation
(bright upbeat music) >> Hey everyone, welcome to theCUBE's AWS startup showcase. This is season two of the startup showcase, episode one. I'm your host, Lisa Martin. Pleased to be welcoming back one of our alumni, Alexis Richardson, the founder >> Hey. >> and CEO of Weaveworks. Alexis, welcome back to the program. >> Thank you so much, Lisa, I'm really happy to be here. Good to see you again. >> Likewise. So it's been a while since we've had Weaveworks on the program. Give the audience an overview of Weaveworks. You were founded in 2014, pioneering getopts, automating Kubernetes across all industries, but help us understand, unpack that a bit. >> Well, so my previous role was at Pivotal, where I was head of application platform and I was responsible for Spring and Vfabric, and some pieces of Cloud Foundry. And you may remember back in those days, everybody wanted to build like a Heroku, but for the enterprise. And so they were asking, how can we build more cloud services? And my team was involved in building out cloud services, but we were running into trouble with the technology that we had. And then when containers appeared, we thought this is the technology for us to roll out cloud services. So with some of my team, we decided to start a new company, Weaveworks, really intending to focus on developers. Because these new containers were pretty cool, but they were really complex operational centric tools, and enterprise developers need simplicity. That's what we'd learned from things like Spring. They want simplicity, productivity, velocity, all of that stuff, they don't want operational complexity. So Weaveworks' mission is to make applications easy for developers with containers. >> Talk to me about how you've accomplished that over the last seven years, and some of the things that you're doing to facilitate a DevOps practice within organizations across any industry? >> Yeah, well, our story is pretty interesting because of course in 2014, all of this was incredibly new. You couldn't even take two containers and put them together into a single application. So forget about enterprise. What we did was we built a network, which gave the company its name, Weave. But then we spent several years building out more and more pieces of the stack. We decided that we should go to market commercially because we're an open source company with a commercial SaaS. And we thought we would be like new Relic, that there'll be lots of customers in the cloud. And, therefore, they would need monitoring and management. And Weave started writing a SaaS based on Kubernetes, which was what we chose as our platform, back in the day, very, very, very early. We were one of the very first companies to start running Kubernetes in production other than Google. And so what we learned was customers didn't want to have management and monitoring for applications in the cloud, based on Kubernetes. Because they were all still struggling to get Docker working, to get basic Kubernetes clusters set up. And they kept saying to us "this is great, we love your tool, but we really need simpler things right now." So what we had done was we'd learned how to operate Kubernetes. And we discovered that we were doing it in this specific way, a way that meant that we could be reliable, we could set things up remotely, we could move things between zones. And so we called this approach getopts. So we've named the practice of getopts, which is really DevOps for Kubernetes. We decided that it was exciting after we had an outage and made a very quick recovery. Told people about it and they said, "well, we can't even Kubernetes started, let alone recover it from a crash." So we started evangelizing getopts and saying to people that we knew how to set up and run Kubernetes as operators for developers of apps, based on this experience. And people said, "well, why don't you help us do that?" So we pivoted the company away from a SaaS business, doing management, and straight back into enterprise software, providing a solution for people to run Kubernetes stacks, deploy applications, detect drifts, and operate them at scale. And we've never looked back. And since then we've built, very successfully, a big business out of telco customers, banks, car companies, really global two thousands. Starting from that open source base, continuing to respect that, but always keeping in mind helping developers build applications at scale. >> So in terms of that pivot that you've made, it sounds like you made that in conjunction with developers across industries to really understand what the right direction is here. What's the approach, what's their appetite? Talk to me about a customer example or two that really you think articulate the value and the right decision that that pivot was and how you're helping customers to really further their DevOps practice. >> Well, one of our first customers was actually Fidelity in this new world. Fidelity has a very advanced technology organization, a very forward thinking CTO, who I seem to recall is, or CEO, who I think is female. Really is into technology as a source of, you know, velocity and business strength. And we were brought to Fidelity by our partner, Amazon. And they said, "look, Fidelity have been using your open source tools, they want to run on Kubernetes, the early EKS service on AWS, but they need help, because what they want is a shared application platform that people can use across Fidelity to deploy and manage apps." So the idea Fidelity had was they're going to split their IT into a platform team, that was going to provide this platform, and a bunch of app teams that were going to write business apps like risk management, other financial processing. Paths, basically. And we came in to help Fidelity. And what we did was help Fidelity rollout, using getopts, a Amazon wide application platform. We also helped them to build, this was very early days for us post pivot, we really helped them to build an add on layer. So you could take any Kubernetes cluster and add other components to it, and then you'd have your platform right there. And the whole stack would be managed by getopts, which nobody had done before. Nobody who'd come up with a way of managing the whole stack, so you could start and stop stacks wherever you wanted, at will, correctly. I mean, if you talk to people about what's hard in IT, they'll tell you shutting down Kubernetes is hard, 'cause I know I'm never going to know how to start it again. So being able to start and stop things, move them around is really crucial. What Fidelity also wanted, which made I think the whole thing even more exciting, was to duplicate this environment on Azure and actually also on-premise later on. So where Fidelity are today is the whole Fidelity platform runs on Microsoft and on Amazon and on-premise, using three different implementations of Kubernetes. But using this platform technology and getopts that we helped Fidelity rollout. And if you want to know a bit about the story, type FIDEKS, F I D E K S into Google and you'll find a video of me three or four years ago on stage at Cube Con talking with a Fidelity chief architect about this story. It's pretty exciting and these are early days for these new Kubernetes platforms. >> Early days, but so transformative. And I can't imagine the events of the last few years without having this capability and this technology to facilitate such pivots and transformation where we would all be. I want to kind of dig into some use cases, 'cause one of the things that you just mentioned with the Fidelity example got me thinking use case of hybrid, multi-cloud, but also continuous app development. Talk to me about some of the key use cases that you work with customers on. >> Well you just named two. So hybrid and multi-cloud is absolutely critical, and also sovereign, which is when you're actually offline and you only update your cloud periodically. That's one of the major use cases for us. And what customers want there is they want consistency. They want a single operating model, across all of these different locations, so that all of their teams can get trained on one set of technologies and then move from place to place. They're not looking for magic, where apps move with the sun or any of that stuff. They just want to know they can base everything on a single, homogeneous skillset and have scale across their teams. Maybe tens of thousands of developers, all who know how to do the same thing. That's a really important use case. You also mentioned continuous delivery. That's probably the second really critical use case for us. People say, "I've got Kubernetes set up now, and I have Jenkins." At JP Morgan once told me they had 40,000 Jenkins servers, or something like that, you know, Jenkins at scale. And they're like, "okay, how do I push changes from Jenkins into the cloud?" So getopts provides a bridge between the world of CI and the runtime of Kubernetes. So one group of our customers is help me to put that middle piece of CD that gets you CI, CD, to Kubernetes, that's a classic. And then what they're looking for is an increase in velocity. And what we typically see is people go from deploying once every six months to deploying once a week, to deploying once a day, to deploying several times a day. And then they split things up into teams and suddenly, wow, that vision of microservices has come and everybody's excited 'cause IT velocity has gone up by two X. Another really >> So, >> Sorry, carry on. >> Go ahead, I was just going to say in terms of IT velocity it sounds like that's a major business outcome that you're enabling for, whether it's teleco, financial services, or whatnot. That velocity is, as you just described, is rapidly accelerating. >> Yeah, if you go to our website, you'll find a bunch of these use cases. And one that I really like is NatWest mettle, which is another financial example. They're not all financial by the way. But there's some metrics in there. We're getting people up to two X productivity, which at scale is huge, really makes a difference. Also, meantime to recovery. If you know the metric space, you'll know these are all DORA metrics. And DORA, which was acquired by Google a couple of years ago, is a really fantastic analyst in the space that came up with a bunch of ways of thinking about how to measure your performance as a business and IT organization. Recovery time and things like this that you really need to focus on if you're in this world. >> Well, from an IT velocity perspective, if I translate that to business outcomes, especially given the dynamics in the market over the last two years, this is transformative and probably helped a lot of organizations to pivot multiple times during the last couple of years. To get to that survival mode and into that thriving mode, enabling organizations to meet customer demand that was changing faster, et cetera. That's a really big imperative that this technology can deliver to the business. >> Yeah, I mean, that's been huge for us. So when the pandemic first began, obviously, we had some road bumps and there were some challenges, but what we found out very quickly was that people were moving into digital much faster. And we've been mostly enabling them, not just in finance, as I said, but also, car companies, utilities, et cetera. The other one, of course, is modern operations. So, everyone's excited about the potential for automation. If I have thousands and thousands of developers and thousands of applications, do I need thousands of operations staff? And the answer is, with Kubernetes in this new era, you can reduce your operational loads. So that actually very few people are needed to keep systems up, to do basic monitoring, to do redeployments and so on, which are all boring infrastructure tasks that no developer wants to do. If we can automate all of that, we can modernize the whole IT space. And that's what I think the promise of Kubernetes that we're also seeing as well. So applications speed first and then operational competence second. >> So you guys had a launch, here we are in early calendar year 2022, you guys had a launch just about six or eight weeks ago in November of 2021, where you were launching announcing the GA of Weave getopts enterprise, which is a licensed product building on the free open source Weave getopts core. Talk to me about that and what the significance of that is. >> Well, this is an enterprise solution that helps customers build these critical use cases, like shared service platform or secure DevOps or multi-cloud, using getopts, which gives them higher security, lower costs of management, and better operations, and higher velocity. And all of it is taking all the best practices that we've learned starting from those days of running our own Kubernetes stack and then through those early customers like Fidelity into the modern era where we have an at-scale platform for these people. And the crucial properties are it provides you with a platform, it provides you with trusted delivery, and it provides you with what we call release orchestration, which is when you deploy things at scale into production, using tools like canaries and other modern practices. So, all of it is enabling what we call the cloud native enterprise, application delivery, modern operations. >> So what's the upgrade path for customers that are using the free open-source tier to the enterprise package, what does that look like? >> The good news is it's an add on. So, I have been in the industry a while and I strongly believe it's really important that if you have an open source product, you shouldn't ask people to delete it or uninstall it to install your enterprise product, unless you really, really, really have to. And I'm not trying to be picky here. Maybe there are cases where it's important, but actually in our case, it's very simple. If you're already using one of our upstream tools, like Flux, for example, then going from Flux to Weave getopts enterprise is an add-on installation. So you don't have to change or take out what you're doing. You might be using Flux without knowing it. You may not be aware of this, but it's also insight as your AKS and ARC, it's inside the Amazon EKS anywhere bundle. It's available on Alibaba, VMware have used it in cartographer and Tanzu application platform. And even Red Hat use it too in some cases. So you may be using it already, from one of the big vendors who are partners of ours, as a precursor to buying Weave getopts enterprise. So, you know, don't be scared. Get in touch is what I would say to people. >> Get in touch. And of course, folks can go to weave.works to learn more about that. And, also we want to watch the Weave.works space, 'cause you have some news coming out relatively soon that sounds pretty exciting, Alexis. >> Well, I mentioned trusted delivery. And I think one of the things with that is no CIO wants to go faster, unless they also have the safety wheels on, let's face it. And the big question we get asked is "I love this getopts stuff, but how can I bring my team with me? How can I introduce change?" I have all of these approvals mechanisms in place, can I move into the world of getopts? And the answer is yes, yes you can because we now support policy engines as baked into our enterprise product. Now, if you don't know what policy is, it's really a way of applying rules to what you're seeing in IT. And you can detect whether something passes or fails conditions, which means that we can detect if something bad is about to happen in a deployment and stop it from happening, this is really critical. It also goes hand in hand with things like supply chain and security, which I'm sure we read about in the news far too much. >> Yeah, pretty much daily supply chain and security >> Pretty much daily. >> is one of those things that we're all in every generation concerned about. Well, Alexis, it's been a pleasure having you back on the program, talking to us about what's new at Weaveworks, the direction that you're going, how you're helping organizations across industries really advance their DevOps practice. And we will check weave.works in the next couple of weeks for more on that news that you started to break a little bit with us today. We appreciate your time, Alexis. >> Thank you very much, indeed, take care. >> Likewise. For Alexis Richardson, I'm Lisa Martin. Keep it right here on theCUBE, your leader in hybrid tech event coverage. (bright music) (music fades)
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the founder and CEO of Weaveworks. Good to see you again. Weaveworks on the program. And you may remember back in those days, and saying to people that we knew and the right decision that that pivot was and getopts that we And I can't imagine the and then move from place to place. That velocity is, as you just described, And one that I really and into that thriving mode, And the answer is, with Talk to me about that and what And the crucial properties are So, I have been in the industry a while And of course, folks can go to And the answer is yes, yes you can for more on that news that you started your leader in hybrid tech event coverage.
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