 Live from Midtown Manhattan, the Cube's live coverage of Big Data NYC, a silicon-angled Wikibon production, made possible by Hortonworks, we do Hadoop and WAN Disco, Hadoop made Invincible. And now your co-hosts, John Furrier and Dave Vellante. Okay, we're back here live from New York City for Big Data NYC. This is the Cube, our flagship program, where all of these events are stricken similar from the north. Since it's created our own events, this is Big Data NYC, we're covering Big Data a week here in New York City. We're just a Duke World, a Stratoconference right across the street, next to the Delfton. We want to put a shout out to Hortonworks and WAN Disco for their incredible support and direct independent coverage. And I'm going to join with Dave Vellante and Dave Ritch. To see you at WAN Disco, thank you very much for coming on the Cube and for your support for the Cube. The community is very appreciative, we were very appreciative and wanted to say thank you for supporting the Cube. Always a pleasure, you guys are doing a fantastic job by the way. Thank you. So, get this right into it, this is the fourth year of the Cube here at Duke World. And Dave and I always joke about how the evolution would watch these waves over the years in the business. But this more hyper-growth than anything else a duke 40 years ago was an Apache project that was just kind of nascent. Outfit needs now to be extreme. New York City puts an exclamation point on the business value. And one of the things that people are talking about here is people are starting to settle into their positions. They're starting to see a matureization of who's gotten what, who's what's working. And at the end of the day people really want to move this into production, into a comprehensive enterprise of the solution. With financial services, healthcare, oil and gas, all of the above. So, I want to get your take first question on WAN Disco. What are you guys seeing? How do you fit into the landscape and share with the folks out there? One, the positioning of the company. And two, where is the meat in the bone right now? What is taking hold? What landscape is solid? What are people building on in terms of the technology and the business solutions? Okay, so I'll sort of set that from the top. So, WAN Disco is in continuous availability of Hadoop space. We've got some unique technology that enables active, active replication of data that we've been, for a number of years, replicating source code management systems like Subversion Kit. And we recently ported that technology over into the Hadoop space. And as you mentioned earlier, we've got a partnership in industries that are important works, where we support their distribution. And we have others potentially as well. So, what are we actually seeing in the marketplace? Well, we placed, let me say that, but the notion was that Hadoop 1 was sort of batch processing. Hadoop 2 is more about real-time transaction processing, which has massive implications in the enterprise. So, we're beginning to see now, because we're in the continuous availability space of course, is companies looking to implement Hadoop 2, all that great stuff, YARL, that was recently announced by Hadoop Works. And we think that that has a massive impact on enterprise usage patterns, where we're going to see some pretty large Hadoop clusters in major banks, telecommunications companies, healthcare companies. We're seeing a lot of movement. I think we've got five or six POCs about to start underway right now, with major financial and major telecommunications companies. And these are not companies that just adopt the latest and greatest technology. These are companies that are very careful about which technologies they're adopting. And Hadoop is the number one thing on their agenda. So, David, a lot of practitioners, like hardcore dogmatic guys, early Hadoop guys, will say, Hadoop should be batch, it was designed for batch, shouldn't go into OLTP. What gives you confidence that the ecosystem is emerging and evolving to support those types of transactional systems? We had a discussion earlier today off camera, where you were saying that the average age of enterprise applications is 19 years. It is. What's happening now, this is a paradigm shift, and I hate that phrase, but it's true. This is a paradigm shift, and we're asking enterprise to redevelop those applications. They're 19 years old on average, and they're going to be redeveloped in this new operating system called Hadoop. That's where we're seeing the entire shift in the market going to. That's why we've got thousands of people there today. That's why I've never seen a trade share like this. It reminds me of the early days of ERP. We were talking about that as well. I had made the statement, if you had to pick the ERP winner in 1990, you never would have picked SAP, would you? So it's very hard to predict winners now. You guys are obviously in the mix. You're a unique company because you're a publicly traded company on the London Stock Exchange. You're a high-growth company in technology. It's not that prototypical company. You see it all the time in the US. What's that like, describe the environment over there? I would say that we're in a pretty small list of companies that are doing cutting-edge technologies to be quite frank on the market. I think we're about the only company that have got dual headquarters in Silicon Valley that are in the very, very core of the dupes. A dupes really has been per bay of Silicon Valley. There's a lot of interest in New York here, but the fundamental company, Hortonworks, Cloudera, et cetera, Pivotal are all really based in Silicon Valley. So just being outside of Silicon Valley alone sets us apart, but being on the London stock market really does. I remember a year ago, a year and a half ago, going around the fund managers talking about big data. They didn't know what big data was 18 months ago. Now, everybody's talking about it. There's a lot of excitement in London about the potentials of big data, and even Hadoop is now becoming widely known outside of the US. So what's the appetite for a technology growth stock? People who have invested your stock must be very happy. I mean, it's a tremendous performance, and it appears to be there's more upside. You mentioned that you just did another offering secondary. You raised, what, $34 million, you said? Yeah. And you said the stock price went up when you announced that. Normally, that doesn't happen, but the appetite for growth stocks must be huge. Well, I think there's something to be said for coming to market. Coming to market very specifically to raise growth capital. So what we were looking for were a couple of key moments, key milestones for us, one of which was a very strategic arrangement that we announced with Hortonworks. SAP were also quoted in that press release a month or two ago. So that was a key moment. And I think the market said, you know what, this company are going places. There's a lot of pence of demand in big data and Apache Hadoop. Obviously, the next strain of Hadoop, the 2.0 release, the 2.2 release as it is now that came out recently, is real-time processing. It's recognized that continuous availabilities are nice. It must have in those kind of enterprise environments. And I think the market likes growth. We are rated for growth. I mean, there are so few growth stocks out there right now on the London market that we are in a very short list. Hey, I got to ask you. David, I was talking about in the data center, one of the hottest trends outside of big data is software-defined data centers. Software-defined data centers, building on data personalization and so on and so forth. So with that new trend, that's kind of the engine of driving innovation. Big data sits on top of that. That's where the apps are on the killer app. As I just tweeted, the internet created e-mail to killer app. Now big data is creating analytics to killer app. That's all going to run on the data center. Software-defined data center is still the data center. So the role of the data center is important. So, talk about your recent announcement and your role in the workforce and your partnership around making the data center be a secure part for that high availability for continuous operations. Well, it's interesting, isn't it? Because what actually created this thing called big data? Really, we should just call it data, because that's what it will be in three years anyway. The thing that created it was economics. It was the point at which it became more cost-efficient to store rather than throw away data. Because we've always been creating this stuff. It just used to be too expensive to store it. So trends in the marketplace, like disk, like solid-state drives, like software-defined data centers, all of those things are driving adoption of big data news. I think we're right in the eye of the storm now. All of these technologies came together at exactly the same time, and thus we have big data now. We like Hortonworks, we like Fiberu, we like Pivoting. The reason we like Hortonworks so much is because they are very near as damn it open source, pure open source. The business model is we're going to deliver a pure open source product, we're going to install that in your data center, and of course you're going to have to buy a support contract for it. That's as simple as that business model is there. They don't even hide it, and we like that. So we think that adoption of Hadoop, we don't actually have to be involved in the creation of a distribution itself. We like the fact that Hortonworks are doing a great job of selling Hadoop into the enterprise, and we want to trail on behind that and become the de facto HA layer on the stack. You think the data centers are ready right now, so we were talking before you came on. Many data centers have raised the POCs of Hadoop now. Things are in Hadoop, they're on Hadoop, the whole data engine around that data platform. So give us a taste of on scale 1, 10, being completely vague, scaling. We're in the data centers relative to Hadoop, and the end of engines around the after end. I don't know if I could accurately enumerate it. It's somewhere between 5 and 10. It's always tough. All my friends in the data center business would shoot me if I said anything else. Okay, I'll say that to you. I think we're part of this. We make the data center not be the single point of failure. Even the event of an outage of flood of hurricane and earthquake. We're part of that fabric that's creating this new protocol. Or even if the hurricane Sandy got to this industry here today, blows through New York and takes primary and secondary out in New Jersey, that no longer becomes a problem because you've got a data center somewhere else in the globe, one scope, active, active replication. That's precisely what we're doing. So I think we're part of this enablement of Hadoop to the enterprise class and enterprise ready. Well, as well, it means that customers will start putting more and more data and applications into this new style of data manipulation analysis and insight that they wouldn't before. So it's chicken or egg, but you're providing that infrastructure to give people confidence. Precisely. And one mustn't forget all the major driving forces for big data isn't just to do with technologies, economics. So the cross-point, the points at which it became cost-efficient to store rather than throw data away. So you've got great subscription growth, right? That's picking up. So then you build up that annuity over time. So you've got some tailwinds that are really good. It looks like you've got a lot of infrastructure in this space that's free. It's open source. And you're monetizing services. A lot of people don't like services models. We love services here because it's where a lot of the work gets done. And then the hard to do stuff, whether it's, like I said, the continuous availability layer, the applications, is that where the money is going to get made here? I think a lot of companies are going to do very well out of the big data space. Undoubtedly, and your analysis from Wikibon tells us that a lot of the early markets, the hardware guys and the service guys, so companies like Intel, IBM, HP, are all going to do very well out of big data. I think the next wave, however, is going to be intensely software-focused. I think you're going to see the likes of where a whole more extendable ourselves do very, very well from the next wave in the marketplace, which becomes a lot more focused around the actual software and applications themselves. That's a great point. I'm getting pushed on time here. We've got the last question. I was going to ask you what's that next vision for you guys, but I'll just kind of reframe it. That's our focus and so on seeing as well. That's the value creation side of the building on the scale and the platform. What's up for you guys? What's happening for you guys around the show? What's coming out of this? What do you expect to happen for your company and then tease that out a little further, a little more detail on what's happening around this software? What key areas do you see developing faster? Which ones are going to be maturing and scaling? Where are the white spaces? Feel free to elaborate. Yeah, so we're seeing, certainly, people are asking, you know, we've got potential customers asking for active-active replication at the one area, you know, it's not a random thing, but one just asks, wakes up one morning and says, I need active-active replication. No, that's actually happening. So that's pleasing, right? So we've seen that trend, certainly on the booth here and also with customers in some of our channels as well, we're beginning to see that trend. We're also seeing requirements for selective replication. So replicating maybe customer data over here, product data over here. So we're seeing, you know, some really interesting use cases come out of this. And, you know, a lot of the early adopters for this I think are going to be financial institutions. Maybe I'm a bit biased because we're in New York on all three of course. So we're certainly seeing financial institutions, telecommunications companies, but there are some common threats like that selective replication, keeping data segregated into different data centres completely. But certainly enterprise and agreement of big data, of Hadoop, is a common trend. And if we are going to get this second way from batch processing to transactional system, there are certain things, I think the top two, I don't remember his mind, but it's high availability and security to serve in the top two things, focus for the answer problems. And what's really exciting is that we're watching the success of your company as you guys continue to grow and value it. It's one of those things where, you know, just in two years ago, as the market matures, a lot of complexity starts to become apparent as the engine is built and the proverbial cars are hitting the street, people are seeing the business value and it's nice to see you guys get some of that success. Congratulations on all your success. We appreciate the support to the community I underwrite in the queue. I'm the CEO of Wendisco. Thanks for coming on the queue. We really appreciate it.