 Live from Las Vegas, it's theCUBE! Covering AWS re-invent 2019. Brought to you by Amazon Web Services and Intel, along with its ecosystem partners. Okay, welcome back everyone live. CUBE coverage here at re-invent 2019 in Las Vegas. I'm John Furrier, your host, extracting the signal from the noise with Stu Miniman, analyst at SiliconANGLE theCUBE and Wikibon. 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 Osborn, GVP of Alliances and Channels at New Relic and Josh Hoffman, GM and Global Lead of ISP, Partner Ecosystem of AWS. Guys, welcome to theCUBE. Thanks for having us. Look guys, the top story to me at this show so far is obviously infrastructure at scale. The software development lifecycle is continuing to evolve. We are more automation, more, as Andy says, heavy lift things being done, which means that application developers are going to get more and more goodness. DevOps created infrastructure as code, check. Now we got data, tons of data everywhere. So we're seeing an ISV renaissance, more software. You guys are out there writing software. So what's you guys take so far of the impact of the ISVs here? Josh, talk about that because this is a big story. The impact is massive. I mean, if you walk around the floor, you'll see folks that are automating new ways of doing DevOps. You're looking at new ways of securing serverless functions. 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 innovation. Our partners are really driving that. Talk about the relationship with AWS, New Relic, AWS, long standing partnership. Where is it now? Where is 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 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 astonishing. We operate in a lot of different partner models from reselling with various partners to building technology programs, to participating with Josh and team and our friend Dave McCann and team on AWS Marketplace. Just a whole host of different things just continue to expand the partnership at scale. And the consumerization of the software, the procurement process, we've had Teresa Carlson on from Public Sector, whether you're in the public sector or commercial, procurement is still stuck in 1995, it feels like, right? I mean, like, are they modernizing? You'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, it's not that bad, but you know what I'm saying? I mean. So from my perspective, one of the cool things we're seeing is AWS and the cloud providers are driving a consolidation of budget, of modern stuff, of cloud, of all the new things that companies want to do. That's all getting consolidated either into 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 initiatives we're doing, we can combine what we want to achieve with what the customer wants to achieve, which is speed to market 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 modernization of the technology is really cool to watch. Well, I wanted to ask that before I want to get to the question that addresses Andy Jassy's point on this keynote. This is the first time I heard him talk like this. We see two types of developers and two types of customers. People who want the low level building blocks, the builders, and then a new set of customers who want solutions. 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 he means by that and what does it mean for customers? Sure, I'll share it in the context of what we're doing with New Relic. 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 New Relic 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 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 last year at Reinvent, we announced really the first solution that New Relic had ever launched, trying to meet that market need and 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 monitoring, 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 past year because we've enhanced our platform to have this new capability that we call programability, 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'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, Todd, actually, so as you know, I was at your conference earlier this year in New York City where you really define what a platform should be. And just like Amazon, what you want is you want builders and you want them putting solutions on top of it. Give us a little bit of the momentum of what you've seen since New Relic won and 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. 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. And then a couple of the cool things from the partner ecosystem we've done is with the platform capabilities we have, firstly, we're now 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 for our customers that can now integrate New Relic with various other technologies. And then the second thing we were proud to announce today is we've actually just signed three new managed service providers. So kind of another partner motion that we're driving in this ecosystem. And the new features of the New Relic platform helped enable us to do some really cool things with the platform and also evolving business model to close. So we're excited to close three top AWS partners, which is Bespin Global, Blaze Clan, and out of California Mission Cloud as three new partners that we just 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 booths here. There's one specifically just focused on serverless, which I think is awesome. It's got some cool things there, very focused on that developer app dev deployment there. But you know, your customers, they've got a broad spectrum of applications and that journey to transformation and modernization is going to take time. How do you deal with the spectrum of what they're dealing with? Todd, maybe start with you and then Josh would love your viewpoints too. Yeah, I mean the spectrum is 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 made this year. Now that our platform is more open, we can collect data from multiple entities, not just the New Relic agents that we were built on. So the concept of observability and being able to observe the entire application environment is built on the fact that data's got to come from all these different places. Then we need to turn that around and curate it into the right experience and the right use case that the customer is looking for. So all I can say is that our company's 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 everyone here is innovating crazy at scale. Todd, talk about what's going on in New Relic. What's the coolest thing going on in New Relic right now? Cause Lou always comes on the queue. Lou's the CEO and he's cool, we love him. But he's always got his hands in something. You obviously got the observability thing 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? You know, I certainly can't do Lou any justice. So the customer stories and things that he comes up with are amazing, but you know, from an industry's perspective, like gaming is hot and it's just, like media and entertainment is hot. So we're just doing some really cool things with some really cool customers. Maybe not as cool as Lou would be, but you know, customers like are really adopting our migration story and we're really driving some significant business together. So customers like World Fuel Services and Fleet Complete, we've recently come out and announced the stories of how we're helping these companies migrate. And frankly, that's what's cool about it. It's like everyone wants to get on the cloud faster, do more faster and we're enabling that in some really cool customers. So I want to get your both reactions just two memes that we're developing on theCUBE 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 introduced on my post, one of my Andy's story I did was you got born in the cloud, which is clear benefits. There's no discussion there, check, winning, builder, but reborn in the cloud. As companies are becoming reborn, this is not just migration, this is a fundamental mind chef shift. This is a reborn enterprise. And if you're not reborn in the cloud, 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? 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. Freeze, pass it on. I will. I would say that from an APM perspective, many of our partners are in different phases of their journey. 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, we've got a number of folks around the world that are helping with that co-sell process based on the solutions that we've jointly defined. 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. And the leadership's got to be there from the top. Totally. You got to have board alignment, you've got to have executive sponsorship, you've got to have technical buy-in, all of it. Todd, you guys have a very savvy customer base, great cloud native observability. What is the naivety issue? What are people mostly naive about? Because if you don't do it right with instrumentation and observability, if you're naive about that, you're going to get bitten in the, you know what? Well, being naive there is not having your observability platform in place. But you really can't anymore. The old world of, if you had a monolithic application running on servers, monitoring sometimes was optional or nice to have something that you could only afford on your most mission critical applications. As soon as you flip the DevOps, bunch of cloud native technologies, modern applications built on the most modern frameworks with entities that have all these dependencies to make sure that application works, monitoring is a must-have and observability is a must-have. So that's naivety. From day one, out of the box, out of the box. And to the reborn comment, as soon as you cross that path, you rebirth yourself every day. 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. When you're at that point. It's a belief system changeover. It is. This is not just saying it. You got to really believe what you're doing. You have to measure and prove it. Which is what New Relic is great at. Because if you take what's happening now on premise and you go through 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 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. Yep. It's kicking butt. Congratulations. Hundreds of thousands of customers are buying and hundreds of thousands more. Todd, congratulations on New Relic. Always great to have you guys on. Thanks a lot. Great impressive company. Great results always. Great team. Great product. Cloud native for sure. Props to that. Thanks for coming on. Appreciate it. Thanks so much. I'm John Furrier, Stu Miniman here in theCUBE. Extracting the signal from 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.