 Live from Las Vegas, Nevada, it's theCUBE. Covering AWS re-invent 2016. Brought to you by AWS and its ecosystem partners. Now here's your host, John Furrier. Okay, welcome back everyone. We are here live in Las Vegas for AWS Amazon Web Services re-invent 2016, their annual industry conference. The center of the universe in the tech world, 32,000 attendees, broke all records, grew from 16,000 last year, almost double. I'm John Furrier with theCUBE. We're here getting all the signal from the noise, three days of wall-to-wall coverage. Our next guest is Rumi Sayer, who's the president, CEO of Sumo Logic. Welcome to theCUBE, welcome back. Very well, thank you much dear. When did you move over to Sumo Logic? So interesting enough, it's two years this Friday. Okay, so give us a quick update. Then I want to dive into the relationship with Amazon. You guys clearly doing big data early. Yep. And the wave of the Hadoop is big data, but there's other methodologies, quick history of what you guys are doing now and status of the company. So the company's about seven years old. We were founded, born and actually bred on AWS. We don't have a single server in our place. And interestingly enough, the premise of founding Sumo seven and a half years ago actually was to build a multi-tenant, SaaS-based machine data analytics platform to start to address a lot of the security, but also the operational issues that customers were facing. Our founders actually came from a security background and they realized that rear view mirror technologies and looking at historical aspects wasn't good enough. So lo and behold, they made a big bet at that time, six years, almost seven years ago, to build exclusively on AWS. And today we, on average day, we're ingesting about 70 terabytes of data. We're analyzing over 100 petabytes of data on AWS. So talk about the specific implementations. Obviously using all the services. Are there any particular ones? Obviously storage, glacier, you must be using some glacier, but is it mostly S3, is it elastic, block store? S3, EC2, we use obviously some of the other services, but more importantly, we enable all of the services that AWS provides for their customers to be seamlessly supported by Sumo. So when you log into Sumo, you create a brand new account, you give us your credentials, everything from Kinesis to Lambda to EC2 to elastic block storage, all those are out of the box that are supported. And you guys had a great booth last year. It's a huge booth right in the front with the Sumo wrestlers. I mean, that stole the show in the age of Twitter and Instagram. I mean, the share of voice on that was pretty significant. Yeah, I mean, I think there's an underpinning tone there, which is we want to wrangle your data, right? And no one knows big data more than a Sumo. And we have earned the right now, seven years in with 100 petabytes the data that we're analyzing every single day to be able to be a lot more prescriptive for customers in terms of how to approach the way they build, run and secure these modern apps. We've been following you guys in context of the big data space. I don't know, I don't think we've had a lot of briefings on the analyst side. I think we should get you guys certainly plugged in with George Gilbert, our analyst. But what's interesting is was the predictive marketing and then a lot of the financial service, a lot of certain verticals were really in early on big data and you guys are were there. What's evolved since then? Because now you're seeing with AWS, certainly you got streaming, you got Redshift doing very well. The services that they've added on over the past few years has been pretty significantly in kind of right in your wheelhouse. So what new use cases are popping up now? What are you guys doing for business? What's some of the profile customers? How are they using Sumo and what's the value for them? Great question. So a few things we're seeing. One is with the availability of all these services that Amazon's providing, the cycle time for releasing new code and overall applications have become much less, right? And as a result, there is not just a need to move to continuous integration or continuous deployment, it's about continuous updates. So the challenge that brings for a lot of our customers, they need real time visibility. We refer to that as continuous intelligence. So our platform is predicated on the fact that we have near real time an analytic streaming engine that as data's coming in, you can get visibility for your developers, you can get visibility for your operations teams, and you can't get visibility for your security compliance teams. So let me give you a couple of examples. You asked for customers. Huddle was one of the customers they spoke about today. I mean, Jeff Frick and I love Huddle. We do all the football videos. Football videos, but you know, they support Premier League, they support Aussie rule footballs. I mean, there's a lot of sports, right? And so they're uploading video. And so, you know, there's a great service for not just college or high school athletes, but professional athletes to understand, you know, their game and analyze their game. So underpinning that actually Huddle's using Sumo to run their service and manage their service. Not too distinct from DOMO or Qualtrics or other customers like Salesforce, Adobe. We have customers like Lando Lakes. We do a lot in media and entertainment, gaming, online retailers. So what do they all have in common? They're either migrating to the cloud, one, two, they're doing digital transformation or some sort of digital application initiative. Three, they need some way to get visibility real time into their applications and services from a security perspective, but also an operational perspective. What's a driver for customers right now? Because one of the things that we hear all the time is people are trying to account for their data. So analytics was kind of like this data warehouse with this old mentality, but now smart people started putting it into mainstream, but now there's more of a data accountability aspect, the metadata, really valuable. How are customers doing that with you guys? Because I can see them getting their Toast web with Sumo and then getting up and say, wow, I could just use some prescription analytics or marketing, whatever the use case could be, but now you've got to start thinking, where's the data coming from and where's it accounted for? Is there a data economy? Is there, you know? So what's interesting about that, you mentioned metadata and that's what it's about. I mean, our system, we ingest any type of structured or unstructured data and we actually analyze a lot of the metadata. And in fact, like I mentioned earlier, we're analyzing over 100 petabytes every single day on AWS. And so what we're able to actually help our customers do now is be much more prescriptive and provide insights as to the 1,300 customers that are on Sumo, the 74% of them that run on AWS, about a quarter of them are using things like Lambda, another two thirds are using EC2, but how and what types of queries are they doing and what types of services are they building with Docker containers or Mesosphere or other types of services. So now we've actually entered a position where we're actually the trusted advisor for a lot of these companies are moving to the cloud, building new modern apps because we've been doing it for seven and a half years. And so the metadata starts to become important because we actually put out a recent survey we call the state of the modern app. And that whole report was premised on the 100 plus petabytes every single day over a six month period. How are customers using AWS? What services are they using and not using and what should you consider? The number one thing we found in that report was only half of the 1,300, sorry, only half of the customers of which 74% of the 1,300 run on AWS were actually doing anything with CloudTrail with respect to security. That means the other half are potentially vulnerable to breach. Yeah. What was the percentage on CloudTrail? CloudTrail. What percentage? 50%. So half were exposed. Half were exposed. But no audit at all. No audit at all. So now we're actually proactively notifying them saying, hey listen, for your type of deployment you're using these common services, others similar to you should use the following. That brings up a good point. Let's unpack that because what that brings up is a lot of people get into data and they hear all this stuff in the news. Oh, be data-driven and they can drink the Kool-Aid and go okay, I buy that vision. But there's some pretty urgent issues on the table that people got to deal with in the enterprise and or if they're a cloud native and that is security, you mentioned it. I mean that has become such the low hanging fruit for data analytics. So Splunk being very successful with that. Cyber, Dr. Teresa Carlson earlier, their public sector business is exploding certainly with the CIA and others. I'm sure you guys got some of those clients. But that highlights that, yeah that's all fine and dandy to do some nice stuff over here to figure out recommendation engine for this or that when you got security holes out there. Are you seeing that in your end too? Well interesting enough, that's how we started, right? We started with the goal of providing analytics and more importantly we wanted to democratize analytics initially for security in the cloud. And so we actually before Amazon Web Services really built things like PKI or public key encryption or things around encrypting data transfer. We had built that into our system and service. So what we actually were able to do now is not only show how we can encrypt the data and do all the services but show them how they should actually start to use CloudTrail and how they should architect these modern apps and what things that they should be concerned about from a vulnerability and risk point of view. One of the newest products that we just announced is in early accesses around threat vulnerability and threat intelligence because now we're getting a 360 degree view for a lot of our customers because you saw today the hybrid announcement, right? That's going to be there for a while. What Sumo allows a lot of our customers to do is from their on-premise data center to their CDNs to all their SaaS applications like Salesforce or Workday or Dropbox or Box to all those things running on Azure, Amazon, the like we provide a whole 360 view. And we can actually now give you- So you get real-time as well on that? Real-time. So our system and service is predicated on a real-time data streaming engine. Yeah, so you guys can coexist in multi-Cloud world. Absolutely, we do that. That's your premise. No pun intended, right? All right, let's talk about contextual data and what companies should do and why they should get you guys involved in the use cases of going forward, planning. A lot of conversation here at Reinvent is this AWS 2.0, they go on the next level, enterprise with more complicated than say cloud-native green field apps. How should they be thinking about their data? You've been doing it for seven years in AWS and you probably have clients that aren't on AWS. Some are, some aren't, that's the makeup. But generally, what's the architecture? What should be the holistic concept for CIO, CXO or down to the practitioner level? What's the guiding principles of you guys? It starts with a fundamental principle of form follows function, right? And, you know, this is a sports analogy but if you're not formed right, you're not going to function right. So a lot has to do with a conscious decision customers need to make in terms of how they're going to structure their teams, right? And whether they're going to move to a true DevOps model where they're pushing hourly, daily, weekly and whether they need to adopt for certain applications versus others. And then it goes into function in terms of how they start to architect their applications, what services they need to use. And we've actually learned that over seven and a half, eight years ourselves, seven which years we're running on AWS, right? And so the advice oftentimes we give to a lot of our customers is, understand what are the mission critical workloads that you need to migrate, categorize those. Second is, which of the green field apps you're building and why? And what type of retention and security policies do you need? And these are the common services you should probably consider with AWS. And then third is, the other set of applications you don't really care about, leave them for now, focus on your expertise here. It's really triaging really the sequence of order of app rollout basically. Well, thanks for coming on theCUBE, really appreciate it. I mean, I want you to take a minute to close this out and talk about for the folks watching, what's new with Sumo Logic? Why should they be working with you? What's the pitch? What's new? What's relevant for you guys? Great, so obviously we're a big data company but more specifically, our service and our strategy was predicated on democratizing analytics. And so we refer to that as continuous intelligence. And so as this digital transformation is taking place and we're seeing it here, we're seeing it across every part of the businesses. You know, we are well suited for every company that's got either a migration effort or an active new project going on AWS. And so we can provide a simple, secure, highly scalable machine data analytics platform as a service. And that's what Sumo is all about. And your business plan for the next year is what, knock down more customers, do more product development, all the above channel, what's the strategy? So good question. So on one hand we're introducing a new product. We've kind of hinted to some of that today with some threat intelligence. Second is we just introduced a new product about a month ago that we're starting to monetize. It's about semi-structured data. And third is we're going to start to really expand our routes to market and channels. One of the things that we participated in recently with Amazon is the new Amazon SaaS Marketplace Program. We're with a handful of companies that participate in design and development there. And so that allows very seamlessly for customers to come try, buy, and decide whether they go month to month, semi-annual years. Well that'll accelerate the operational nature of your product. Absolutely, but that's the way we sell today. In fact, our whole business model is predicated on land and expand. You're probably familiar with this whole notion of cohorts and net dollar retention. Well, the median, if you look at Pat Gress and Morgan Stanley and other firms, tends to be like 103 to 105. Best-in-class tends to be 110 to 115. We've been well north of 160 for 19 straight quarters of what we're selling. Well, Jasper said that on his keynote today. The bombastic days of hand-waving are over. If you don't see it right there, the value in front of you, don't buy it. Don't buy it. And that's really the marketplace's vision. That's the marketplace vision and that's what we're all about. That's SumoLogic. I mean, sayers, president and CEO of SumoLogic, congratulations on your success. Continue your success. It's theCUBE bringing all the action live in Las Vegas for re-invent 2016. I'm John Furrier. Be right back with more after this short break here, watching theCUBE.