 From San Francisco, it's theCUBE, covering SumoLogic Illuminate 2018. Now, here's Jeff Frick. Hey, welcome back, everybody. Jeff Frick here with theCUBE. We are at SumoLogic Illuminate 2018. About 600 people, I think it's three times as big as it was last year here at the Hyatt San Francisco Airport in Berlin game. And one of the big topics of today is the release of this new report. It's called the State of Modern Applications in Dev Ops Security. And talk all about it and the results and kind of the process. We're excited to have Kalyan Ramanathan, excuse me, VP of Product Marketing at SumoLogic. Welcome. Thank you, Jeff. So you've been doing this report for a while, correct? Yeah, exactly. I think this is the third version of this report. And from what we know, the first and only report that looks at how, you know, leading edge customers actually build, run, manage and secure their applications in public cloud environments. Right. So just a little history for people that aren't familiar, Sumo launched in the cloud natively, right? And I think you guys launched on AWS. Absolutely. Way back when, I think one of our very first AWS shows we went to in 2013, some at San Francisco, I remember it well, we had you guys on. And so you guys have really grown along with AWS, but obviously have expanded well beyond just simply inside of AWS. That's right. So the company was founded in 2010 and we were one of the first big data services to run on AWS. I think our founders, you know, ran into one of the AWS architects who described this new thing called the cloud. And they were completely smitten by it. They thought that this is their next new way of how services are going to be delivered. So it just made a lot of sense to build this machine data analytics platform that we were building that we were planning to build on AWS. Right. The scalability, the agility, the, you know, the flexibility that AWS offered was exactly what our platform needed. And so this was a marriage made in heaven. But we can support applications that run just about anywhere. We obviously support applications running on AWS extremely well. That's our DNA. We get those applications because we build and run those applications ourselves. But we also support Azure, we support GCP, we support hybrid environments. Many of our customers, you know, are either, you know, built in the cloud and they know only cloud, but a few of them are also making the transition to the cloud. They are migrating their applications to the cloud. And, you know, we believe that we live in an age where flexibility is extremely important and we support our customers wherever their applications are. Right. All right, so let's look at some of the findings. So just from a process point of view, you interviewed your customer database, right? Yeah, I mean, I think, yeah. We looked at our 1600 customers. 1600 customers. An important point to make out here is that we don't interview our customers. What we do is to essentially collect data from our customers, which is what we do when we are doing machine data analytics. We anonymize this data and we represent as to what is happening in terms of these applications, how do our customers build these applications, you know, manage them and secure them. Right. So this is not a... It's the real data though. It's the real data. This is not what they think they, you know, and they're going to answer the survey. Absolutely, exactly. All the survey biases that can come up. Yeah, you're very right. I mean, you know, that's what makes this report unique, right? It's the first report where we are actually reflecting what customers actually do. It's not a survey. It's not an aggregation of, you know, data from 10 other sources. This is as close to truth as it can get in terms of running and building and securing applications in the cloud environment. So I was happy to see that the data supports a number of the hypotheses that we derive at a lot of the shows that we go through, you know, right off the top. Docker and the adoption of Kubernetes and orchestration is growing rapidly. Absolutely. I mean, you know, everywhere you go, you hear containers, containers, this container, that. So, you know, we see similar adoption. Docker has grown from 14% to about 28% in this, as we see in this report. But what's interesting is also the growth of Kubernetes and orchestration, right? If you were to ask anyone, even in this conference, you know, about orchestration, let's say two or three years ago and even the word Kubernetes, you know, I'm sure you would have gotten blank stares. Right, right. We are two years into Kubernetes becoming, you know, somewhat mainstream. And we are already starting to see 30% adoption of orchestration within AWS. And, you know, out of that 30%, we almost see 15% of those folks using Kubernetes as a native technology. AWS has just announced their own Kubernetes service. I am sure if, when we have this conversation next year, Kubernetes, you know, will become a household name. You will see 30% adoption of Kubernetes alone. Right. In the report of this. Well, it's funny and we were VMworld a couple of weeks ago and Kubernetes with both in Pats, Pats Gelsinger's keynote as well as Sanjay's, you know, so it's just, it really shows how fast in this type of a world, a new technology adoption can just be put into place. Yeah, I mean, if you bring the right capabilities, if you have the right support, which is what Kubernetes does. And obviously, if you have the right backing, you know, in the form of Google, obviously incubating this project and then, you know, promoting it as an open source standard and everybody is now falling behind it. You know, we supported, we hear it from our customers. And, you know, obviously the data also bears a start. So what about on the database side? What did you find in the database side? Yeah, I mean, the database results are always interesting for us, right? You know, I think the most important thing that we learned is that, you know, as customers are building apps in their public cloud environment, they really have a choice. If you were to build an on-prem application once upon a time, I mean, you are usually stuck with Oracle or MySQL or SQL Server or some of the standard database fairs that we've always heard about. But when you now go to the cloud, when you migrate to the cloud or when you're incubating your application in the cloud to begin with, you want to rethink your database layer. This is the core layer that powers your application. And there are lots more, you know, opportunities to and options out there. So what we're seeing is one, the growth of NoSQL databases. They are way more scalable. You know, they handle big data way better than, you know, traditional SQL databases. So we're definitely seeing a growth of that, of NoSQL databases. What's also interesting is that, you know, as customers have the choice, they're looking at other forms of databases. You know, I could look at Redis. I could look at MongoDB. I could look at Postgres. And I'm not stuck going back to, you know, our favorite Oracle or SQL Server anymore. Right. What strikes me is that the definition of the requirement has been flipped upside down. Before it was, what infrastructure do we have? What's available that IT can deliver to me? What do we have licenses for? And what can I build on top of? Now the application has taken center stage. So now this is what I want to do with my application. What is it that I need underneath the covers to deliver that capability? So it really flipped the whole thing on its head. This also goes back to the, you know, sort of the democratization of decisions where, you know, developers now can make these choices. You know, once upon a time, right? I mean, someone, a Muckety Muck in your organization says Oracle is the way to go and everybody follows suit. That's not the case anymore, right? I mean, the engineer, the developer who is building their application, especially in the microservices, well, they can make choices in terms of what is a data store that they may choose to build into that microservice. And that doesn't have to be Oracle every time. Doesn't have to be SQL server every time. You know, if Redis makes sense, if MongoDB makes sense, let's go build that into our platform. So another one, you know, serverless is all the hot buzz and clearly that is supported here with some of the data around Lambda. Yeah, I mean, Lambda growth continues to astound us. You know, we are seeing Lambda grow from 12% two years ago, which is when we did our first report to now, you know, almost 30%. You know, so imagine that, right? One in three enterprises today are using Lambda. And this is a technology that is very easy to use, but architecture-wise, you need to rethink how you are putting your applications together with Lambda. And you know, we are starting to see, you know, some widespread Lambda adoption, you know, within enterprises. Right, but isn't that the ultimate goal? I mean, as we get closer and closer to, you know, atomic versions of store, compute and networking, shouldn't it all ultimately get there? I mean, there's requirements and you know, there's reality, I don't deal, you know, luckily I don't have to go turn the stuff on and run it. But, you know, that is the vision, right? Atomic units of compute, atomic units of store, and atomic units of network. Yeah, I mean, look, serverless is the ultimate nirvana when it comes to the cloud, right? I mean, the notion of the cloud is that, you know, I have an application, it needs to run. I don't worry about the infrastructure. And to a certain extent, I don't even worry about the management. So serverless and Lambda is the manifestation of that, right? And what we're starting to see is that many customers are at least dabbling with Lambda. Now, I won't say that customers are building the core application with Lambda yet, because that requires a rethink of their application itself. But what we are starting to see is that Lambda is used in DevOps. Lambda is used in integrations. Lambda is a glueware that sort of ties all of these applications together. In fact, you know, this report that we put together, a lot of it has been actually put together on the back of Lambda. We use Lambda extensively to collect this kind of data and create a report of this kind. That's great. Another piece I wanted to make sure we talked about is really kind of the breakdown of the clouds. Obviously, you guys have a huge percentage of your business is AWS customers. You guys were born in AWS. That seems pretty logical. But what's interesting is a lot of multi-cloud. So, you know, I'm a few distinguished between multi-cloud, hybrid cloud, but at the end of the day, as I think Rumi talked about in the keynote, right? There's going to be different places for different workloads. Absolutely. You know, look, I mean, as you rightfully pointed out, we are born in AWS. So we have an affinity to AWS. And so AWS customers also have an affinity to Sumo Logic. So it's no wonder that a big swath of our customers are built in AWS. Now, having said that, what we are also seeing is actually an acceleration of our customers, you know, adopting more and more AWS. I mean, they are the leaders in this space. I mean, I think nobody can, you know, nobody can question that statistics. What is interesting though, is that we are starting to see increased adoption of multi-cloud. We saw about 5% of our customers. Dablin, multi-cloud last year, we are close to 10% this year. We're also seeing increased adoption of Azure. We had a, you know, about 5% of our customers use Azure last year. We are starting to see almost, I should say about 8% of our customers use Azure last year. We saw, we're seeing about 15% of our customers use Azure this year, right? So Azure is a, you know, has definitely become a very credible second cloud alternative for many of our customers. Now we do see interest in GCP. It's not translated into lots of GCP adoption in production environments yet, but we're definitely seeing that increase interest and I'm sure, you know, when we put this report together next year, you'll see some very credible and statistically relevant GCP data in this report. So Collin, there's a lot here and we could go on and on and on. So people can go to the website, they can download the report, but it's so great. But what I like most about this report is you lay out the facts, right? You lay out your findings. People can question your data source or this or that, right? But you lay out all your methodology, but then you have very specific instructions for the IT buyer about what they should consider. And I think that is so powerful because I think from the position of an IT purchaser today, they've got to just be getting creamed with, you know, like with things, we're talking about serverless and Lambda and security and DevOps and the pace of change for them keeps going faster. So where do they even begin when they're doing this kind of analysis? It's not just putting it up for an RP anymore, right? Yeah, I mean, that was the intent of this report, right? I mean, when we started out this report, our goal was to provide accurate, real-time information about where are these modern apps in the public cloud going? You know, our leading edge customers like Airbnb and the Twitterers and the Salesforce and the Adobe's know how to do this well. But there was a huge swath of our community that is in some sense perplexed, right? I mean, they see this cloud adoption happening. They see this cloud wave coming. They have cut their teeth on data centers and applications in the data center. How do I make that transition to the cloud? How do I follow these cloud-first companies and learn from these companies? And so what we wanted to do is to collect this data, anonymously surface this data and provide this insight to this community so that they can, in some sense, emulate these leading edge companies and learn how to architect, build, run, and secure their apps. Right, right. I love this little, you know, kind of the new stack, if you will, the architecture setup. Right. Cake chart that you've done in the past. All right, great. Well, so a lot of ton of information. I'll give you the last word as we're here at Illuminate triple last year's numbers. A little bit about where are you guys going next? What's kind of top of your mind? You know, look, you know, Sumo Logic as a company, you know, we're doing exceptionally well in this machine data analytics space. We are the only cloud native machine data analytics vendor. We are where the market is going, right? We understand cloud, the apps are going to the cloud. We know how to manage these apps exceptionally well. But more importantly, you know, we think that it's also important and it behooves us to make sure that we take our developer community, our apps community, our security community along with us. And that's the intent of this report. It's to not sell product, though we do want to sell it eventually. But it's to provide you guys, actually I should say, provide the community with the right kinds of information so that, you know, they can do their jobs better. That's the goal of Sumo Logic. It's all about, you know, empowering the people who power these modern apps, which is actually the theme of this event itself. Well, very good. Well, we'll leave it there and thanks for taking a few minutes to have your time. Thank you very much. All right, he's calling and I'm Jeff. You're watching theCUBE where Sumo Logic illuminate at San Francisco Hyatt Regency by the airport. See you next time.