 From the Sands Convention Center, Las Vegas, Nevada, extracting the signal from the noise, it's theCUBE, covering AWS re-invent 2015. Now your host, Stu Miniman and Brian Graceley. Welcome back to theCUBE, SiliconANGLE TV's live wall-to-wall coverage of AWS re-invent 2015. Had about two and a half days' worth of coverage coming into the landing at the end. Voice is a little bit rough sometimes here because it is Las Vegas, of course. My co-host, cloud analyst, Brian Graceley. Been doing a lot of the interviews here. Great job, Brian. And really happy to have CEO and co-founder of cloud and showroom Wagner. First time on theCUBE, thank you so much for joining us. Thank you very much for having me here. All right, so we always love on theCUBE having, not just CEOs, but the founders. We've been talking at this conference about builders. So can you just give us to start a little bit about your background and why was CloudInfounded originally? So I came from the enterprise software space. When I worked at the enterprise software market, I figured out that there is a lot of cost and capacity management issues happening in the data centers. Later on, when there started transformation from the data centers back to the cloud, I figured out that there could be similar challenges in the cloud computing. So we've started the company back in 2011, actually. So all right, three years in the world. Great, so can you just give us, for audience, give us kind of what is cloud in, how many people you have, if there's any revenue numbers you can share, and what's kind of the scope of the company. So we are a cloud monitoring and optimization for hybrid cloud deployments. We help cloud customers to optimize the way they are using their cloud resources so they can make decisions what resources they have to select when they're running Amazon Web Services and other clouds, like Azure, Google, OpenStack, VMware, and so on. And they can improve performance and reduce the cost. So that's what the technology does. It's SaaS-based technology. We are 25 people. We are located in Israel, just around the corner, 10,000 kilometers away. And we are here in two and a half days of the show, very crowded, very great show from our perspective. Yeah, so Amazon very much talks about the ultimate destination is public cloud. We've been talking a lot about hybrid cloud, though, in the industry for a bunch of years. One of the services you offer is really trying to help customers understand that decision. So can you get us in the context of Amazon? I mean, the message, obviously, is a little bit of hybrid, but we play there and it's going to the public cloud. Where are we today? What have you seen the last couple of years in the trend and what's the conversation with customers go like? So when we started the company, it was me again, in 2011 and 2012, we went out to the market. We've seen a lot of the SMBs are taking off on the cloud computing technologies. But in mid-2013, we've started seeing a lot of traction coming from enterprises. And when enterprises are taking decisions on where they have to run the workload, they typically take informed decisions on running multi-clouds, public clouds with other public clouds or public and private. So the trends that we see today, and we've seen it in the show, with different enterprises, is taking a hybrid approach, Amazon and other clouds. Yeah, when you're a SaaS application, you guys have a ton of insight into what your clients are doing. Helps you shape the product, but also gives you insight in the client. What are you seeing? I mean, when you start providing them that much information, better monitoring, better cost understanding, how does their patterns change? Do you see them using it more? Do you see them changing what they do? What goes on when you give them that much insight? So, indeed, it's a SaaS solution. And the fact that it's a SaaS solution allows us to collect all the data from all the different customers and take informed conclusions on what kind of products we have to develop. So we see a lot of traction on compute. So we invest a lot of our algorithms and products to improve the way how they use compute instances. Obviously compute is the biggest chunk of the bill or the usage that customers are using, followed by storage and then network. And it's similar concepts, similar behavior for SMBs and enterprises as well. Yeah, and how much are you able to give back to your customers? You obviously see trends across different size markets, across different geographies. How much does that just go back into the product and how much are you giving direct guidance to clients to say, look, there's spot instances, you can buy different ways. So how does that relationship evolve? So we are starting the typical way or the best way to start optimizing cloud deployments is not necessarily going after the price module optimization, but also you have to take a look at the way how your application is running in the cloud and optimize its operational efficiency by selecting the right size of instances or databases or storage object that you're using. So select larger instances to support growth or performance. Once you optimize the operational of your cloud deployment, then move and take a look at the reserved instances. Capabilities in Amazon has a variety of options in reserved instances. The spot market and the new capabilities that has been announced two days ago on summer between the spot and the reserve businesses. So as you said, Amazon's matured, their pricing model, they're giving more options. One of the things that two years ago, the first time I came to the show, they came up with a trusted advisor. And what was shocking to me is customers were really excited because they're like, oh, now I understand what I'm doing and ha ha, I'm using 75% more stuff than I should be. I lived in the traditional infrastructure world. It's not like if you had 75% more gear that you bought, it's like somebody's in big trouble. So I'm curious, what are some of the key findings that you find, how do you help customers and those pricing trends, how are they changing? So first of all, with regards to trusted advisor, I think Amazon Web Services is currently the only provider that provides this kind of service to its customers. It shows the support and the confidence that Amazon Web Services is having in its infrastructure and ability to growth. The fact that they are providing saving capabilities to customers is great. Now, the most, the items that you see are some deficiencies are obviously around underutilization of resources. Similar to data centers, 60 to 65% of the instances are significantly underutilized. And it's not, I think it might sound surprising, but it's not because many of the enterprises, specifically the enterprises, when they are moving workload from the data centers back to the public cloud, they are treating virtual instances as a physical instance. And that's a mistake that they have to resolve or actually making sure that they are solving using technology like ours or trusted advisor. Yeah, you bring a great point. If it was in a data center and you said that, you know, we expect, if you're getting 15% utilization, you're doing a pretty good job compared to your peers. If you're 30%, you're doing awesome. But the expectation is when I'm in the cloud, I'm doing better. So it sounds like maybe not quite there. They are not quite there, but we have to remember that system administrators and people that run in cloud operations will typically take additional capacity in order to resolve any risk issues that they may have. So you can see high availability applications that are idle because most of the applications are up and running. It will be still considered an unutilized resource. Do you guys have a sense? I mean, we're seeing more and more of the roles change. When you start to use the cloud, we talk about DevOps. Who's your buyer? Who's, is it, I mean, is it the financial person on the account? Is it the application team? Who's the buyer? And then do you find that it shifts over time? So with the SMBs, it used to be the VP of engineering that typically used to take responsibility for the operational of the cloud. Obviously in larger enterprises, you see it coming from the CIO organization. Sometimes there is a role called VP operations that has the performance responsibility and the budget responsibility on the same side. And the fact that we are combining operational and financial metrics together into one single pan of glass for hybrid environments, that's the tool that VPOps will typically ask for. Yeah. One of the things that we hear from a lot of clients is they're now talking about migrations. And we talked a little bit before we were on air. Some customers have a sense of what an existing application cost, others not really, because they've never really broken it down as a service. Do you have a way to help them model what a cost looks like ahead of time and say, if you migrate this and it looks, can you help them get a sense for budgeting what it might look like? So we have a migration recommendation capabilities. The way how we do that is by hooking up to your private cloud infrastructure and collect the usage about the existing, compute database storage. The customer have to have an initial sense of what is the unit cost for a VM or for a storage object or a database, and then we will automatically provide the best choice that the customer can have based on three different parameters, SLA, which is performance, cost or location. What do you find your typical customer is using in Amazon these days? I mean, is there a price point, a size of IT that's a good fit for your customer base for what the services are? The average infrastructure size would be 250 virtual instances concurrent running. That would be a good fit for Amazon and hybrid cloud, obviously. I was actually looking at your website and I like some of the dashboard you give for kind of some of the different roles, CIO, CFO, developers on systems integrators. Are you finding all of those involved in your various customers? Like what's the mix that you see out there today and any trends between who's driving the purchasing decision? So DevOps will use the operational metrics dashboard. CIO, CFO will use the combined dashboard that shows the utilization and the cost of the entire cloud deployments that we have. It's a great UI challenge. You've got to be able to figure out how to make something for a financial person to look at charts and then you've got to give technologists that typical sort of line-listed CLIs and all those sort of things. So that's one of the best things on building SaaS solutions. We collected so much information from our customers. It's around 15% of the Amazon, Microsoft, and Google resources are monitored by clothing daily. So we look at the way how they are building their reports and each one of the reports have become popular. We create dashboard, template out of it. So it's been reused by different roles in the organization. Yeah, the show is growing so much. You guys have been here a couple of years. The show is growing so much energy. Like what's your take on the ecosystem as a whole? I mean, do you feel like it's becoming more competitive as you feel like customers understand what tools are available, the services are available? What's your take on what's going on here? So obviously there are additional competitors in the market because the market is getting mature. But I see a lot of growth from the different partners in the ecosystem and Amazon web services. They're all growing. They're growing together with Amazon web services. The fact that we see a lot of enterprises and system integrators, MSPs are coming to the show. You know, it gives us a lot of confidence that this market is rocketing right now. Yeah, what's next for you guys? I mean, there's a lot of new technologies coming out of me. Containers are coming out. We're seeing internet thing. What's next for you? What are the big focus areas you want to give your customers visibility to? So obviously we're spending a lot of resources and effort into the private cloud. It's an important area for us on which we invest. We believe it's obviously a big market, at least bigger as the public cloud. Containers is big for us because at the moment you can make containers transfer between cloud environments, makes our porting migration capabilities are more applicable for the clients. And obviously you support AWS, you support other clouds, you give customers that visibility across multiple clouds. Definitely, these are today we support Amazon Web Services which is the primary cloud, Microsoft, Azure, Google and OpenStack, the different distros for OpenStack. So beyond some of the pricing, you know, what are you generally hearing from customers? I guess at the show here, there's the general buzz that Amazon continues to add, continues to separate themselves from the pack. You know, what are you hearing from your users? So first of all, it's the second year. If you will take a look at the last year announcement in Amazon Web Services re-invent, it's the second year that Amazon is not announcing significant price reduction. And they are more focusing on agility and bringing new functionality to clients. Which probably shows something about the strength and the positioning of Amazon Web Services in market. And that's great. The more features, functions are added, the more, you know, agility that customers are being at Amazon Web Services. Yeah, and we're hearing that. We're hearing that more and more customers are telling us, yes, costs are important, but that's not the driving factor and so forth. How do you, if that happens more with customers, you've obviously got a cost element. Is there a way that you can put agility metrics into there? Is there a way you can help them understand how to go faster? So first of all, I agree. Cost is not the only factor in determining which cloud provider you have to select. And it's not definitely the most important criteria. That's why we announced two days ago, a product called Smart Sizing, which allow you to make informed decision on how resources should be looked like in terms you want to grow your cloud, and not necessarily optimize your cloud from a cost perspective. So that's something that's the first thing. You're giving them proactive tools, let them plan, let them think about it. It's a very sophisticated forecasting solution that predicts the growth of your business based on the historical metrics and tell you how much capacity you have to buy. So last thing, people want to find out more about cloud in, where can they find more information? Their free version we can try out. Definitely www.cloudin.com, cloudyn.com in French. It actually sounds much better. There is a free trial over there. So go ahead and try it. All right, Charon, thank you so much for joining us. Steve Travels back on the short trip back to Tel Aviv. Thank you very much. Thanks so much. And we'll be right back here, wrapping up our coverage of AWS reInvent 2015. Thanks for watching.