 Live from San Francisco, it's theCUBE covering Informatica World 2016. Brought to you by Informatica. Now, here are your hosts, John Furrier and Peter Burris. Okay, welcome back everyone. We are here live in San Francisco for SiliconANGLE Media's theCUBE, our flagship program. We go out to the events and extract the signal from the noise. We are here exclusive coverage for Informatica World 2016. I'm John Furrier with my co-host Peter Burris and I'm the head of research for SiliconANGLE Media General Manager of Wikibon Research, our next guest is Ronin Schwar, Senior Vice President and General Manager of Informatica Cloud for Informatica. Welcome to theCUBE. Thank you, I'm glad to be here. Very exciting week here. Welcome to being a CUBE alumni as well. Super exciting to have you because we love cloud. I see cloud big data infrastructures, our core pillars of our research that Peter oversees, but more importantly, it's mainstream. You guys have been at the forefront of data, but now in a multi-cloud world, it's even more exciting because that's where the processing power is. And that's where the data is everywhere. So give us a quick overview of the news because the summer, you guys are going to be releasing Informatica Cloud, which is not just cloud. There's a lot of integration stuff. Share with us for one minute. Share the news. So I think we have news on multiple levels. The first one is that we have our release 25 or as we call it, R25. One of the three yearly releases that we have in the cloud and this release is actually packed with new support for new patterns, with support for new users, and also with support for a lot of new connectivity and new applications. If I'm focusing for one minute on the new integration patterns, in this release, very significantly, we are introducing the Cloud Integration Hub. This is a public subscribe unique offering to move data between one application and many other subscribers. We're also in this release releasing the B2B Cloud Partner Gateway, really allowing you to very easily self-serve yourself as a partner, register, and so on, along with a lot of improvement into our data integration and data management capabilities. So a really very exciting release. So is this a new category? Because you guys, and you're pressurally saying, unveils the first enterprise class integration cloud. So two notable words. First, an integration cloud. You mentioned some of the things. And in the press release, you mentioned the words, you guys, Informatica, your group, the integration platform as a service, iPass. Right. Is it a new category? So iPass is a category that have been identified in the market for the last, I think, two years, not more than that. In Informatica, I've been calling cloud integration for probably about eight or nine years. But I would say that the majority of the market, and especially the enterprise adoption, have been really growing only in the last few years. So yes, this is actually a new category in a way. And I think even inside this category, there is a shift from, I would call it, like local minimal adoption into an organization-wide adoption where enterprise capabilities are required. It's interesting, our analysts that reports to Peter as Brian Grayson covers cloud. Obviously, the platform as a service, we see that out there. It's kind of the new middleware kind of battleground. And everyone has a different approach. So I got to ask you about this integration platform because what you're essentially saying, if you're taking a data focus, which is Informatica's core message. That's right. Data centric, laser-focused data. You really don't care which cloud the customers run on, right? I mean, I'm making an assumption, but I'm sure that's the case because data is flying everywhere. You want it to be free. That is exactly correct. And what's happening in the cloud is there is a real inflection point in the amount of cloud application that you're using. But also at the same time, what we're seeing from customers is adoption of multiple platform as a service and infrastructure as a service. It really is like you suggested in the beginning, a world of clouds. And in this world of clouds, it's becoming more strategic to be able to move the data, integrate the data so that the organization can get a single picture. We are seeing it happening and I think now happening in large scale across the environment. And choice becomes, we're hearing choice is a big deal. People talk about choice. Some lip service, some a real deal. But now you talk about cloud integration, you have to support Amazon. So what's your relationship with Amazon web services? We've been a partner with Amazon for over four years. Actually, in Informatica world this week, in the opening session of the cloud summit, Anuragupta was one of the innovators in this market. One of the people behind Redshift and some of the other innovation AWS did. He was actually a co-speaker with me in the beginning of the session. What we have, the journey that we've done with Amazon is supporting the new data sources and targets in the cloud. Specifically the scalable data stores that have been introduced there. All the way into running each and every part of the Informatica stack on the Amazon infrastructure. Meaning that today you can run your power center, you can run Informatica cloud, you can run data quality and MDM, all on EC2 or AWS. And even we introduce now the capability to run Informatica Big Data Edition on EMR specifically. So we are actually having a very, very robust support for all of the new services that AWS introduced, but also enabled customers to really lift and shift their investment in data management and run it in an optimized ways on AWS. So you provide some flexibility. Exactly, exactly. So the question I got to ask, I sat down with Andy Jassy at re-invent last year and he'll come on this year so the queue will be at Amazon re-invent this year so stay tuned for that show. I asked him specifically, what are some of the fastest growing services? Redshift and Kinesis have clearly shown a lot of movement and they had a big IoT message, they're talking to Oracle for instance on some of the big data is Lambda stuff. So the question to customers is, I'm confused. If I'm a customer, I'm like, look, I got a ton of data. I got it on-prem, I got some legacy data warehouse. I want to move to the modern era. I'm putting stuff in Amazon and it's working. They got some tools in there for data. I'm confused now, what do I do? Do I lift and shift? Do I land and expand? I mean, what is the customer orientation now from an informatica's perspective because you want to enable choice but at the same time you don't want to foreclose the future with getting use of the data. You don't want Amazon to be a roach motel. You can check in but you can't check out. You're raising a lot of good points and I think I would say that different customers depends on their journey to the cloud are facing this question and are answering in different ways. We're definitely seeing lift and shift. We are seeing even more than that expanding into new scenarios in the cloud. I've not- From the infrastructure or the workload? Actually on both, on both. I want to actually, you're touching also a very important point which is how am I avoiding data lock? And how am I avoiding, and data lock can come, not just data lock? Yes. Yeah, lock in. And this question is actually a very, very valid question because when you're moving the data out of your infrastructure to any third party, in general, you have less control on your data. What Informatica is trying to do is give you two things to help you in this process. The first one is very easy movement between clouds, really bridging the clouds and making sure that the data that you need is available for you. The second thing, even slightly more important than that is a live data map. It's a map that shows you where your data is, where did it come from, and actually help you in connecting these clouds and actually finding your data, finding the source of your data no matter where it is. So they don't lose the keys to the kingdom, the MDM piece is the key, right? So I've had an MDM plan. Cloud does not impact me either way, or does it impact me? That is correct. So you can master your data in the cloud, you can master your data on-premise, you can master data that is residing on-premise and in the cloud. Let me even expand on that slightly more. We assume that most of our customers will live in a hybrid world for a few years at least. Living in this hybrid world, the world that is between on-prem and cloud, and between multiple clouds, will require them to do all data management tasks. And doing them, whether they choose to master the data on-premise or in the cloud, they have the full flexibility to do that, regardless of where the MDM application resides and regardless of where the data itself resides. We're also announcing today the availability of Informatica, MDM in a cloud, in a managed basically and run by Informatica. So that's another very- So is it seamless or is it a single view? Because now when you mentioned MDM, do I have different siloed apps? Or is it one view into- It is a single view into your customer, into your product, et cetera. And basically we're shortening your process of going live by just putting it in the cloud and managing it for our customers. So what level are you actually doing the integration? Is it the data that the applications have access to or the data the applications running? Are you also integrating control data so that clouds can work better together? In other words, I can look at the characteristics of one cloud running and another cloud running and do job shifting from one to the other. At what level of data integration between clouds are you really working? So this is a very, it's a very, very good question because one of the things that cloud allow us to do is really leverage that flexibility to give you efficiency, better cost and other things. One of the cores of our cloud technology is the ability to run the data integration, data management processes inside agents. And these agents can reside on AWS, on Azure, on your private cloud, on premises. And we actually can allow you to balance the workload in the most efficient way. For example, why lift a huge amount of data that you don't need to another cloud? If you can actually subset the data, choose the right fields that are of interest and move only them to the right place and that's actually very, very efficient. If you can merge two data set in an efficient way and only then move them to the next step in the process, again, very, very efficient. If you need to do it in a batch mode so that you are less affecting the traffic or if you need it in real time, we actually, in a single solution inside the iPass, are supporting all of these scenarios. There's a lot of modeling work that has to go on there and that's a lot of conventions and approaches to doing the things that you're describing that aren't fully baked out. So are you also bringing tooling to help people think about some of these issues and optimize data movement? Because you're right, there is a very real cost of moving large amounts of data over distance even if we're moving them at the speed of light. That is correct and I think at this stage what we are giving you is an amazing visibility to the data and the data processing so that you can actually choose and optimize where to process what. And we're actually calling out inefficiencies that you have inside your processes. We have introduced about six months back a tool called Discovery IQ that really put the intelligence behind the discovery of your processes and give you the real visibility to is it more efficient to process the data here or there? Should I actually push down that specific process or should I actually execute it at the end? You have all of that flexibility. What we'll get even better is we'll allow you to define the governing rule to these decisions and then we'll be able to automatically dynamically based on real-time execution. Today we give you full visibility to the efficiency of your execution in different areas and give you good recommendation of what you should do in the very near future. We'll allow dynamic optimization. It is happening real-time based on how things are working. So when you start talking about doing footprint analysis or footprint management or where the data is, if I move data to a cloud, if I'm provisioning new resources to do a big job perhaps at the end of the month, does your tooling also, for example, might be doing a lot of other things, will it also then go back and strip that data out of that partition? If it's when I bring it back down, is it doing that kind of work? That's correct. So you're able to automate processes exactly like you described. So I think the flexibility that is needed is actually in two areas. The first one, can I get more processing power? Can I scale my processing power so that I'm processing the needed amount of data in a shorter time? Yes, we support the scalability. The second one is do I have to have the data reside in a place that I'm paying for it or can I actually optimize the data location to cost and to future needs? And the answer is yes, we support and help you optimize both. We also want to don't leave copies of my data lying all over the place when I don't know where they are. That is absolutely correct, yes. And you're raising a very, very good challenge that if you want to be able to process data in efficient places, you sometimes need to move the data to these areas. So I touched in details earlier the fact that you can subset the data and move only the data that you need for the next step of the processing, but now you're touching the second point, do I leave this footprint there after I fully process the data? And the answer is it's actually up to your configuration. We definitely allow you to optimize and remove this data immediately as you finish that. I do want to touch one more point around efficiency that I think is fascinating. Today many of the SaaS customers are paying more money for their sandboxes than they pay for the application itself. In general, if I want a development team to work on a project, I need to give them what used to be called a box, and now it's basically a virtual box to actually try and work with their stuff. You need a machine like that for development, for QA, for staging, so at least like three machines for every project. Each machine usually on average costs you about 25 of your production machine. And it's basically based on the fact that the SaaS vendor have to actually have like full machines with all of the data, otherwise you will not be able to test. Informatica have a very unique technology allowing you to replicate only the relevant data. And we call it test data management, and it's not enough to replicate 10% of the data and give it to the testing, you have to have the right 10%, the one that connects and give you the full picture. We do that and by that we minimize the amount of data that is replicated. We also in that process allow you to choose what do you want to mask. And whatever you're masking, you can actually have the development in QA done, offshore with less risk to your data. That's a really, really important point. I think that gets lost in some of the mainstream messaging is that that kind of rapid development trend, agile, whatever you want to call it, cloud native, they need those sandboxes, they need the environment to look exactly like the application. That is really, really important. That is right, and they don't want to pay a lot of money to do that. And if you, and what happens sometimes- Until they figure it out, and then they'll provision it, right? I mean- That's exactly correct. And if you actually enable these machines to be available cheaply or these environments to be available cheaply, then you're actually disconnecting the different development teams. They can each run on their own pace and be very effective. And you know what? That's going to spark more innovation. So I want to, on the innovation piece, that's really going to drive more testing, experimentation, prototyping, rapid development, essentially. So I've got to ask you on those threads. Two areas that are emerging, and it's a two-part question, and I want you to answer it kind of in two realities. In a fully big enterprise customer which has on-premise legacy, and then they want to move to the cloud, and then cloud native. And cloud native is someone who cleans sheet of piece of paper. Either way, cloud native is the top trend. Right, that's SaaS, rapid development. I need to have all these capabilities. Is that where the integration hub fits in? Because the rapid development around cloud native is one that certainly everyone's moving to. Whether they have legacy stuff or they're just a new company. How do you fit into that cloud native? In the second use case is by itself IoT and IoT in an enterprise. So start with cloud native first. How does that fit into the- So when you're describing cloud native, are you describing a customer that does not have any on-premise legacy and just starting from the cloud? Is that the case? Or they want to have a cloud native app meaning it's going to run most of my workload in the cloud. I might have to go on-prem for maybe an SAP ERP system or other data that might be related. But I'm going to put my development team mainly SaaS. So I'm a SaaS developer, right? I'm going to dev ops guy or whatever cloud ops, whatever you want to call it. I'm prototyping, I'm developing a SaaS app. Perfect. So what happened in the 30 years of the on-prem rise of application is that we have customers, IT, have done a lot of point-to-point integration. And if you're coming to an organization today, you're definitely finding the hairball and it doesn't matter how many technologies we threw at that through the years, it still remain a very complex task. There is a huge opportunity when organizations are moving to a cloud first and adopting heavy SaaS application not to repeat the mistakes of the past. And the biggest mistake of the past was doing point-to-point integration. Publishing the data once into a- Let me make sure the biggest mistake of the past was doing point-to-point. Point-to-point integration. It's one of the biggest. I don't know if it is the biggest, it's definitely- It's a large, it's a very big mistake. It's one you don't want to repeat. Yes. It's more leverage. If you want to get the cloud, you get more leverage out of it. Yes. And the risk there is even bigger because the proliferation of cloud application, the ability to really get the best application is tempting to get more and more application. So the answer for that is really in delivering a new data integration pattern. Have probably subscribed for data integration. And I think it's a very, very strategic opportunity because then you're able to move the data once and then subscribe to the data from many, many other applications. And as you're connecting the on-prem legacy to the cloud, if you can move the data once from the on-prem into the hub and then consume it in many places, the data to your previous question will disappear from the hub once used. That's a great opportunity. I want to just get the IoT. That same would apply for IoT as well, right? That is correct. And the only difference is that IoT also brings with it massive amount of data, right? And massive amounts of data are never good to just move around back and forth, back and forth. So the smartness of how to handle the data in what area is an added capability there and why a hub is even more strategic in that use case then. So a hub is good for IoT and cloud. That is correct. That is correct. Informatica has built a pretty decent business though, building point-to-point integration scenarios. Are you talking about virtualizing a client's point-to-point integration streams and putting them up in the cloud? Informatica supported the customer in doing integration in a variety of patterns, right? Some of them is point-to-point. Informatica have introduced the on-premise hub maybe five or six years ago, and as well as a lot of other patterns of integration. My recommendation, the difference is that a customer that have built their infrastructure over 10 or 20 years, they had a lot of legacy to handle. No, but specifically, are you talking about being able to virtualize all those workloads that are currently being managed by Informatica tools and putting them in the cloud or some subset of them? Virtualization is one of the options. It's actually depending on your choice from a topology perspective, whether you want to move the data physically so that you don't need to hit the original application multiple times, or whether you want to actually virtualize that and then hit the application any time you need the data. Okay. Ronan, thanks for coming on theCUBE. Really appreciate the insights. I want to ask one final question and give you the final word. What's the impact of the customer? Is it personalization? Is it faster apps? What are you, how would you tease out the top three impact benefit statements for the customer with Informatica Cloud? I think we're living in a very exciting time where our customers are really exposing data to more users. They're giving analytics to more users. They're exposing the ability to function inside an application to more users. Empowering more users is a huge change that is happening. The cloud is really empowering more users to get access to more data. Informatica is making it really possible. Great, Ronan, thanks so much. Senior vice president, general manager of the new information cloud integration, platform as a service. Thanks so much for sharing the cloud story here. It's all about the data. This is Informatica World 2016. I'm John Furrier with Peter Burris. You're watching theCUBE. We'll be right back with more. Live from San Francisco after the short break.