 from Berlin, Germany. It's theCUBE, covering DataWorks Summit Europe 2018. Brought to you by Hortonworks. Well, hello, and welcome to theCUBE. I'm James Kobielus. I'm lead analyst at Wikibon for Big Data Analytics. Wikibon, of course, is the analyst team inside of SiliconANGLE Media, one of our core offerings, is theCUBE. And I'm here with Joe Morrissey. Joe is the VP for International at Hortonworks, and Hortonworks is the host of DataWorks Summit. We happen to be at DataWorks Summit 2018 in Berlin, Berlin, Germany. And so, Joe, it's great to have you. Great to be here. We've had a number of conversations today with Scott Now and others from Hortonworks, and also from your customers and partners. Now, you're international, you're VP for International. We've had a partner of yours from South Africa on theCUBE today. We've had a customer of yours from Uruguay. So, there's been a fair amount of international presence. We had Munich Reed from Munich, Germany on. So, clearly, Hortonworks, you've been in business as a company for seven years now, I think it is. And you've established quite a presence worldwide. I'm looking at your financials in terms of your customer acquisition. It just keeps going up and up. So, you're clearly doing a great job of bringing the business in throughout the world. Now, you've told me before the camera went live that you focus on both Europe and Asia packs. I'd like to open it up to you, Joe. Tell us how Hortonworks is doing worldwide and the kinds of opportunities you're selling into. Absolutely. So, 2017 was a record year for us. We grew revenues by over 40% globally. I joined to lead the internationalization of the business. And, you know, not a lot of people know that Hortonworks is actually one of the fastest growing software companies in history. We were the fastest to get to $100 million. Also, not the fastest to get to $200 million. But the majority of that revenue contribution was coming from the United States. I think when I joined it, it was about 15% of international contribution. By the end of 2017, we'd grown that to 31%. So, that's a significant improvement in contribution overall from our international customer base, even though the company was growing globally at a very fast rate. And, that's also not only a fast by any stretch of the imagination in terms of growth. Some have said, oh, well, maybe Hortonworks, just like Caldera, maybe they're going to plateau off because the bloom is off the rows of Hadoop. But, really, Hadoop is just getting going as a market segment or as a platform. But you guys have diversified well beyond that. So, give us a sense for going forward. What are your customers? What kind of projects are you positioning and selling Hortonworks solutions into now? Are they different, is it different, well, you've only been there 18 months. But is it shifting towards more things to do with streaming, NIFI and so forth? Is it shifting to more data science-related projects? Give us a worldwide... That's a great question. This company was founded on the premise that data volumes and diversity of data is continuing to explode. And, we believe that it was necessary for us to come and bring enterprise-grade security and management and governance to the core Hadoop platform to make it really ready for the enterprise. And that's what the first evolution of our journey was really all about. You know, number of years ago, we acquired a company called Anyara. And the logic behind that acquisition was, we believe companies now wanted to go out to the point of origin of creation of data and manage data throughout its entire life cycle and derive pre-event as well as post-event analytical insight into their data. So, what we've seen is that customers are moving beyond just unifying data in the data lake and deriving post-transaction inside of their data. They're now going all the way out to the edge, right? They're deriving insight from their data in real-time, all the way from the point of creation and getting pre-transaction insight into data as well. So, pre-transaction data, can you define what you mean by pre-transaction data? I think if you look at it, it's really the difference between data in motion and data at rest, right? It's a specific example would be if a customer walks into a store and they've interacted in the store maybe on social before they come in or in some other fashion before they've actually made the purchase. Engagement data, interaction data, yes. Exactly, right, so that's one example. But that also extends out to use cases in IoT as well. So, data in motion and streaming data, as you mentioned earlier, is becoming a very, very significant use case that we're seeing a lot of adoption for. Data science, I think companies are really coming to the realization that that's an essential role in the organization. If we really believe that data is the most important asset, that it's the crucial asset in the new economy, then data science becomes a really essential role for any company. How do your Asian customers' requirements differ or do they differ from your European customers? European customers clearly have their backs against the wall. We have five weeks until GDPR goes into effect. Do many of your Asian customers, I'm sure a fair number sell into Europe, are they putting a full court, as we say in the U.S., a full court press on complying with GDPR? Or do they have equivalent privacy mandates in various countries in Asia? Or a bit of both, I mean. Well, I think that one of the primary drivers I see in Asia is that a lot of companies there don't have the years of legacy architecture that European companies need to contend with. So in some cases that means that they can move towards next generation data orientated architectures much quicker than European companies have. They don't have layers of legacy tech that they need to sunset. You know, a great example of that is reliance. Reliance is one of the largest companies in India. They've got a subsidiary called Geo, which is the fastest growing telco in the world. They've implemented our technology to build a next generation OSS system to improve their service delivery on their network. Operational support system. Exactly. Yeah, they were able to do that from the ground up because they formed their telco division around being a data only company and giving away voice for free. So they can, in some extent, move quicker and innovate a little faster in that regards. I do see much more emphasis on regulatory compliance in Europe than I see in Asia. I do think that GDPR, amongst other regulations, is a big driver of that. The other factor, though, I think that's influencing that is cloud, cloud strategy in general. What we've found is that, you know, customers are drawn to the cloud for a number of reasons. The economics sometimes can be attractive. The ability to be able to leverage the cloud vendors' skills in terms of implementing complex technology is attractive. But most importantly, the elasticity and scalability that the cloud provides is hugely important. Now, the key concern for customers as they move to the cloud, though, is how do they leverage that as a platform in the context of an overall data strategy, right? And when you think about what a data strategy is all about, it all comes down to understanding what your data assets are and ensuring that you can leverage them for competitive advantage, but do so in a regulatory-compliant manner, whether that's data in motion or data at rest, whether it's on-prem or in the cloud or, indeed, across multiple clouds. So that's very much a top-of-mind concern for European companies. For your customers around the globe, but specifically, of course, in your area of Europe and Asia, what percentage of your customers are deploying Hortonworks into a purely public cloud environment like HDInside and Microsoft Azure or, you know, HDP inside of AWS? In a public cloud versus in a private on-premises deployment versus in a hybrid public private multi-cloud. Is it mostly on-prem? Most of our business is still on-prem, to be very candid. I think almost all of our customers are looking at migrating some workloads to the cloud, even those that had intended to have a cloud for a strategy have now realized that not all workloads belong in the cloud. Some are actually more economically viable to be on-prem and some just won't ever be able to move to the cloud because of regulation. In addition to that, most of our customers are telling us that they actually want cloud optionality. They don't want to be locked into a single vendor. So we very much view the future as hybrid cloud, as multi-cloud, and we hear our customers telling us that, you know, rather than just have a cloud strategy, they need a data strategy. They need a strategy to be able to manage data no matter where it lives, on which tier, to ensure that they're regulatory compliant with that data, but then to be able to understand that they can secure, govern, and manage those data assets at any tier. What percentage of your deals involve a partner, like IBM is a major partner, do you do a fair amount of co-marketing and joint sales and joint deals with IBM and other partners, or are they mostly Hortonworks-led? No, partners are absolutely critical to our success in the international sphere. You know, our partner revenue contribution across Amia in the past year grew, every region grew by over 150% in terms of channel contribution. Our total channel business was 28% of our total, right? So that's a very significant contribution. The growth rate is very high. IBM are a big part of that. As are many other partners, we've got the very significant reseller channel, we've got IHV and ISV partners that are critical to our success also. Where we're seeing the most impact with IBM is where we go to some of these markets where we haven't had a presence previously, right? And they've got deep and long-standing relationships and that helps us accelerate time to value with our customers. Yeah, it's been a very good and solid partnership going back several years. Well, Joe, this is great. We have to wrap it up. We're at the end of our time slot. This has been Joe Morrissey, who is the VP for International at Hortonworks. We're on theCUBE here at DataWorks Summit 2018 in Berlin. And I want to thank you all for watching this segment and tune in tomorrow. We'll have a full slate of further discussions with Hortonworks and with IBM and others tomorrow on theCUBE. Have a good one.