 We're on, this is theCUBE, SiliconANGLE's flagship program. We go out to the events extracted from the noise. I'm John Furrier, the founder of SiliconANGLE. This is theCUBE. We go out to the events where the action is and find out what's going on. And we are here at Percona Live, live in Silicon Valley in Santa Clara, California, where all the action is happening around big data, databases, an area that's not so much sexy on the mainstream press, but we believe it's important and the database wars are happening. You're seeing no SQL, SQL databases, really becoming the key fabric of this platform as a service in cloud mobile, big data, internet of things, and the real battleground for the future is really happening at the database layer. What's going to happen with developers? What's going to happen with services, the channels, all this new stuff enrolling out the next generation modern infrastructure of cloud computing using big data. And I'm here with Jeff Kelly, my co-host for this show for the next two days, we'll be broadcasting live, getting in the weeds around what the big cloud players are doing, what developers are doing, what enterprises are doing. More importantly, the people delivering the services. Jeff, Prokona Live, third year in the show, the show was abandoned by O'Reilly Media and now taken over by Prokona, a thousand people here. Really a show that's not mainstream in terms of the press, but really an important show around data, big data, and more importantly, what's going on at the databases. You got in memory, you got flash, you get a lot of convergence happening. What's your take? Well, it's interesting that in the press and among people in the know, so to speak, most of the attention gets placed on the new SQL space. And while there's a lot of interesting things happening there, and a lot of developments that are enabling new types of services to be delivered, clearly my SQL, the relational open source database is still a key ingredient in, even in web scale, we've seen with the web scale SQL announcement, the consortium between Google, Facebook, LinkedIn, and Twitter, banding together to kind of help scale my SQL, because they use that as their front end for a lot of different services. So I think it's clear that really when you talk about big data, there's a number of different technologies that are going to come into play. That's my SQL, that's no SQL, that's Hadoop, and other things. So it's interesting, a few years ago you wouldn't have thought the database would have been so exciting, but there's a lot happening now and it's really enabling some great innovation. Yeah, and we're here again live in Silicon Valley in Santa Clara, California going up to San Francisco later today at AT&T Park, having a special reception around big data and sports, and also what's going on in San Francisco is Microsoft's Windows community, the Build, Win conference building on top of Windows, where the thrust of that show is about the Windows phone. We don't really need to be there, Microsoft is not making room for us, mainly because one, they want to control the agenda, but more importantly, they got a lot of work to do and all the mainstream press is covering kind of the Windows phone, the Lumia phone, Nokia, all this new stuff, but mobile is a big part of this new generation, this modern era of infrastructure, where the cloud computing revolution is actually taking flight, you're seeing this at, I call it the next printing press, the next industrial revolution, and around the data is really the key part, and you talk to anyone right now who's doing anything progressive, it's what they're doing with the data that matters, and structured databases, you're seeing kind of the waves come back full circle, Jeff, you're going to notice no sequels all the rage, and of course, who doesn't want no sequel? No sequel makes a lot of sense, how you store the data, loose data, fast data, big data, whatever you want to call it, the data needs to be stored, internet of things, all these things are certainly relevant, however, when you want to actually get stuff done, you got to roll that up into some sort of semi-structure, some sort of schema, whether it's real-time analytics or whatever, the structured databases, SQL world is relevant, and you're seeing that being a front end to the cloud data models, and also for the analytics market, so a lot at stake here, so I want to get, you know, we're seeing some big news this week in the data space, ClearStory scored $30 million a Series B funding, they're an analytics company, prior to that, Platformer got some funding, and also the Intel, CloudEra, I won't say acquisitions, quasi-acquisition in my mind, a $700 million investment in CloudEra for their enterprise hub, which has a lot of unstructured, structured components to it, and that really is a tell-tale sign that we are moving very, very fast in this new era, this cloud era of data, so this is a big backdrop, so with that in mind, what are some of the things that you're seeing here and the things you expected here? Well, you know, as you mentioned, there's a lot of different aspects to big data, so it's interesting that in the Hadoop world, kind of all the rage now is bringing SQL to Hadoop. Who would have thought the future of Hadoop and NoSQL was SQL, but in fact it is, in a lot of ways, but also, you know, from my SQL perspective, clearly it's still an extremely valuable technology, there's a thousand people here at the show, you've got innovators like Facebook and Google and LinkedIn and Twitter working together to improve and scale the technology, so it's clearly an important part, and really when it comes to NoSQL versus SQL, it's about trade-offs and kind of the business value or the business goal that you're trying to achieve. If some level of data loss is acceptable for better performance, you might go with a NoSQL database, if it's a transaction where you can't afford to lose any data, you might look at a relational database. That's simplifying it a little bit, but essentially you've got to align the business decision with the technology you're going to use, they're intertwined. From the Hadoop perspective and what you mentioned, what we've seen this week with Intel and the Mammoth investment they've made in Cloudera, you know, from my perspective, there's still a lot of questions about that investment. We don't know, for instance, how much of that 740 million went to essentially buy out some existing shareholders, we don't know who the Intel board members are going to be. Right now, it just seems a little bit hazy. What do you think, John? Well, I mean, on the Cloudera news, it's pretty great. I mean, to me, I love Cloudera. It's one of those companies that is a darling of Silicon Valley from the beginning and you're seeing what Silicon Valley's all about with Cloudera, but there's a couple, I want to say scabs around Cloudera that's happened over the past years and that is, and this is no ding on Cloudera. Cloudera has established the market for a long time. Jeff, as you know, they had no competition in the big data space. They created the Hadoop industry. So, you know, to me, when I talked to Amara Wadala and congratulated him on the announcement, what you saw, what Cloudera did was really compelling. They created, they saw the future. They created an industry and now step three is the scale. And when you have large dynamic marketplace, like we're now highly competitive, where they went from no competition to mega competition, their vision never wavered. If you look at what Cloudera has done, what was most remarkable about the Cloudera story in its first generation now, I would say we're on our second generation, we'll get to that in a second, is they never wavered, Jeff. They never wavered from the leadership position of seeing the vision, seeing the future, inventing it and establishing the industry. However, one of the casualties or collateral damages of never wavering is the competition went in in the sandbox and our original broadcast around this was the big guys are going to come in and start throwing sand in the sandbox. Cloudera kind of made some shifts. They kind of got a little queasy, underfunded compared to the big boys, but they never wavered. But what they did do effectively was they put out Impala Enterprise Hub on top of their business model. This was a game changer. And at the bottom line of the Cloudera stories that they were underfunded to compete in that market. Mike Olson admitting at the recode story that was published yesterday, one that we had first, was that they're now in a new weight class. So this confirms our analysis that we've done and that people have been talking about which is Cloudera's vision, although grand and irrelevant, was really underfunded when they were out of their weight class. And ultimately, I bet when they go talk to customers they knock down some early adopters. When they go mainstream, that is ultimately a factor. Can you support the customers? Can you deliver the value? And can you play with the big boys? So what's happened here is Cloudera is moving to their second generation marketplace where they need to be in the weight class of the big boys. And with Intel they have the new gloves, the new roadmap, the data. So I see Intel's relationship as very strategic in the sense of adding value, shedding that monkey in their back around Oracle, which is kind of like had them kind of pigeonholed, but more importantly giving them the long-term mojo to compete at this next level. I call second generation a do. So to me, that is the big story about Cloudera. The second part of the story is Insider sold some shares, right? So that number we don't know, we're trying to confirm, but early investors and possibly early employees sold some shares, got some liquidity, which is really not a bad thing. You've seen it happen all around Silicon Valley in the startup world where these mega valuations over a billion dollars, in this case four billion, there's some liquidity. So it's kind of a private public market. And I wrote a post, I think 2009, where the new IPO market's private. And that's really what you're talking about here. But this puts Cloudera in a position not to get acquired, even though you could look at Intel's is kind of like an acquisition, but not more of a strategic relationship. And to me, that's the story. Now the question is, can Cloudera compete in the weight class that they are now positioned in? Well, I think you're right on, they needed this funding essentially to do two things. One, continue to build out the product because if you're going to try to deliver a complete data platform and compete with the likes of IBM and Pivotal, you've got to have the technology to back that up. So I think that's one thing they're going to need this funding for. The other of course is scaling. They've got, as we learned at their analyst event, about 300, a little over 300 paying customers, that's subscription customers. And as I pointed out in Silicon Angle last week, that's a bit smaller than I expected at this point in their history. If you look at Hortonworks, for example, they're over 300 as well and just, I think about six quarters of just having a product. So Hortonworks was hot on their heels in terms of the customer account. You could argue that Cloudera's average customer size, deal size is going to be larger because they're offering more of a comprehensive platform versus Hortonworks, which is focusing more on the, just on the Hadoop layer. But they need to scale that. They need to show that they can build significant revenue and ramp that up in a fairly quick fashion. You mentioned kind of swinging above their weight class. And I think when I look at some of the competitors in this market, you look at Hortonworks. To me, they've always kind of understood they've always had a very clear sense of who they were and what weight class they were in. It might not be the heavy weight. Maybe they're in the middleweight division, but they are executing. They're going right out and doing what they said they would do, focusing on Hadoop. They're clearly selling. I think from Cloudera's perspective, it's a huge ambition to say you're going to take on a company like IBM and Pivotal, not to mention SAP, to some extent Teradata, and now even maybe Oracle. So they've asked for this fight and now they've got it. They've got the backing of Intel, which is going to help them a lot to actually execute on that. It's going to be interesting next six to 12 months to see how they actually go forward and spend some of that money. Okay, we're here live. It's looking to value for Percona live. We're going to be covering more about the Cloudera news and all the big natives, also the cloud news, got the build conference, the new CEO Satya Nutella broadcasting live up in San Francisco for the build conference around Windows, Windows phone. He calls it the cloud first era, some call it the mobile first era. I call it the data first era. Okay, that's my phrase. And really, if you look at all the action here, it's around databases, not a sexy kind of mainstream discussion item, but certainly data first is the model. And that means architecting properly. That's where the action is all under the hood. Anyone in tech who's at the front end of this revolution is all playing with the engines of innovation. That's all under the hood. That'll render itself out in the cloud and also certainly mobile. But again, we're in a data first environment. This is theCUBE. We'll be right back with our next guest here, live in Silicon Valley at Percona live. Right back.