 Hey, welcome back everybody. Jeff Frick here with theCUBE. We are live in downtown San Jose at the historic Pagoda Lounge. Part of Big Data SV, which is part of Stratocadoop Conference, which is part of Big Data week, because everything Big Data is pretty much in San Jose this week. So we're excited to be here. We're here with George Gilbert, our Big Data analyst from Wikibon, and a great guest, Garav Dhillon, Chairman and CEO of SnapLogic. Garav, great to see you. Pleasure to be here, Jeff. Thank you for having me. George, good to see you. You guys have been very busy since we last saw you about a year ago. Pretty epic here. Yeah, give us an update. Funding and customers and you guys have a little momentum. So, it's a good thing. It's a good thing, you know. A friend and a real mentor to us, Dan Wormenholm, and the founder and CEO of NetApp for a very long time, longtime CEO of NetApp. He always likes to joke that growth cures all startup problems. You know what, that's the truth. Yes. So we had a scorching year. You know, 2016 was a year of continuing to strengthen our products, getting a bunch more customers, we got about 300 new customers. 300 new customers. And as you know, we don't sell to small business, we sell to the enterprise. So this is the who's who of pharmaceuticals, continued strength and high-tech, continued strength and retail, you know, all the way from subway sandwich to folks like AstraZeneca and Amgen and Bristol-Marx Square. So some phenomenal growth for the company. But you know, we look at it very simply, we want to double our company every year. We want to do it in a responsible way. In other words, we are growing our business in such a way that we can sail over to cash flow rate even at any time. So responsibly doubling our business is a wonderful thing. So when you look at it, obviously you guys are executing, you've got good products, people are buying, but what are some of the macro trends that you're seeing talking to all these customers that are really helping, you know, push you guys along. Right, right. So what we see is, and it used to be the majority of our business, it's now getting to be 50-50, but still I would say historically the primary driver for 2016 of our business was a digital transformation at a boardroom level causing a rethinking of the app scape and people putting in cloud applications like Workday. So one of the big drivers of our growth is helping it fit Workday into the fabric, into the new fabric in many enterprises, Vastra College into Capital One into finance in various other sectors where people bring in Workday, they want to make that work with what they have and what they're going to buy in the future, whether it's more applications or new types of data strategies and that is the primary driver for growth. In the past, it was probably a secondary driver, this new world of data warehousing. We like to think of it as a post-modern era in the use of data, in the use of analytics, but this year it's trending to be probably 50-50 between apps and data and that is a shift towards people deploying in the same way that they moved from on-premise apps to SaaS apps, a move towards looking at data platforms in the cloud for all the benefits of racking and stacking and having a capability rather than being in the air-conditioning HVAC and power consumption business and that has been phenomenal. We've seen great growth with some of the work from Microsoft Azure at the Insights products. AWS's Redshift is a fantastic growth area for us and these sorts of technologies we think are going to be of significant impact to the everyday, the work-clothing types of analytics. Maybe the more exotic stuff will stay on-prem but a lot of the regular business-like stuff, stuff in suits and ties, is moving into the cloud at rapid pace. And we just came off the Google Next show last week, and Google really is helping continue to push ML and AI out front and so maybe it's not the blue suit. Indeed, yes. The analytics, but it does drive expectations and the expectations of what we can get, what we should get, what we should move towards is rapidly changing. Rapidly changing. For example, we saw at the New York Times, which as many of Google's flagship media enterprise customers, many of Google's flagship enterprise customers are media related. No accident, they're so proficient themselves being in the consumer internet space. So as we encountered in places like the New York Times, there's a shift away from a legacy data warehouse which people like me and others in the last century back at my time in Informatica might have sold them towards a cloud-first strategy of using, in their case, Google products, Bigtable, et cetera. And also they're doing that because they aspirationally want to get at consumer prices without having to have a campus and the expense of Google's big brain. They want to benefit from some of those things like TensorFlow, et cetera, through the machine learning and other developer capabilities that are now coming along with that in the cloud. And by the way, Microsoft has amazing machine learning capability in its Azure for Microsoft research as well. So Gaurav, it's interesting to hear sort of the two drivers. And we know like PeopleSoft took off starting with HR first and then would add on financials and stumbled a little bit with manufacturing. So when someone wants to bring in Workday, is it purely an efficiency value prop and then how are they, how are you helping them tie into the existing fabric of applications? Look, I think you have to ask Dave or Anil or ask them together more about that dynamic. What I know as a friend of the firm and as somebody we collaborate with and this is an interesting statistic. 20% of Workday's financial customers are using SnapLogic, 20%. Now it's a nascent business for them and you and I were around in the last century of ERP. We saw the evolution of functional winners do some made it into suites and some didn't. Siebel never did. PeopleSoft at least made a significant impact on a variety of other things. Yes, there was Bond and other things that prevented their domination of manufacturing and of course the small company in Waldorf did a very good job on it too. But that said, what we find is it's very typical to in a sense how people using Tipco and Informatica in the last century are looking at SnapLogic and it's no accident because we saw Workday's go-to-market motion and a sensor following, trying to do the same thing Dave and Anil have done of we're trying to do the same thing, being a bunch of ex-informatica guys. So here's what it is. When you look at your legacy installation and you want to modernize it, what are your choices? You can do a big old upgrade because it's on-premise software or you can say, you know what? For 20% more, I could just get the new thing. And guess what? A lot of people want to get the new thing and that's what you're going to see all the time and that's what's happening with companies like SnapLogic and Workday is, you know, someone right here locally, Adobe, it's an icon in technology and certainly in San Jose, that logo is very big. A few years ago they decided to make the jump from legacy middleware, Tipco, Informatica, web methods and they've replaced everything globally with SnapLogic. So in that same way, instead of trying to upgrade this version and that version and what about what are we doing in Japan? What are we doing in Sweden? Why don't you just find a platform as a service that lets you elevate your success and go towards a better product, more of a self-service, better UX, millennial-friendly type of product. So that's what's happening. Even that little three-letter company from Waldorf was on stage last week and can now get SAP on the Google Cloud platform, which I thought was pretty amazing and the other piece I just love, there's still a few doubters out there on the SaaS platform is now there's a really visual representation of dominance of that style going up a downtown San Francisco, 60 stories high and it's taken over the landscape. So if there's ever any a doubt of enterprise adaptation of SaaS and if anything, I wonder if the proliferation of apps now within the SaaS environment inside the enterprise, it starts to become a problem in and of its own self because now you have so many different apps that you're working on at work. That helped the internet goes down, right? It's true and how do you make a Pluribus Unum out of many one, right? So it's hilarious. It is almost that proliferation at this point. You know, it's our CFO tapped me the other day, he said, you got to check this out. They're using a SaaS application which they got from a law firm to track stock options inside the company. I'm like, wow, that is a job title and a vertical. So only high growth, private venture-backed companies need this and typically it's high tech. And you have very capable SaaS even in those small grid squares in the enterprise. So I think that's probably another way to think about the work that we do with SnapLogic and others, people in the marketplace like us. What we do essentially is we give you the ERP of one because if you could choose things that make sense for you and they could work together in a very good way to give you very good fabric for your purposes, you've essentially bought a bespoke suit at rack prices, without that nine times multiplier of the last century of having to have just consultants without end, darken the sky with consultants to make that happen. So that, yes, SaaS proliferation is happening. That is the opportunity, also the problem. For us, it's an opportunity where that glass is half full, we come in with SnapLogic and knit it together for you to give you a fabric back. And people love that because they can, the businesses can buy what they want and the enterprise gets a comprehensive solution. Right, right. Well, it's at the risk of taking a very short tangent that come in about darkening the skies. If I recall, it was the battle, the Persians threatening the 300 Greeks at the Battle of Thermopylai and they said, you know, yeah, we'll darken the skies with our arrows. And so the Greek. Come and get him. No, no, no. The famous line was, he said give us your weapons and the guy says come and get him. No, no, no. You got to that point, the Greek general says, well, we'll fight in the shade. But I wanted to ask you. This was the movie 300 as well, right? The famous line is, give us your weapons, he said come and get him. But I'm thinking also of, you know, the use case where you bring in, a customer brings in workday, you know, and you help essentially instrument it so it can be a good citizen. So what does that make, you know, or connect it so it can be a good citizen? How much easier does that mean or does that make fitting in other SaaS apps or any other app into the fabric, application fabric? Right, right. Look, George, as you and I know, we both had some wonderful runs in the last century and here we are building, you know, version 2.0 in many ways. Again, very similar to the workday management. The enterprise is hip to the fact that there is a Switzerland nature to making things work together. So they want amazing products like workday, they want amazing products like the SAP Cloud Suite now with Concur success factors in there, some very cool things happening in the analytics world, which you'll see at Sapphire and so on. So some very, very capable products coming from, I mean, Oracle's bought 80 SaaS companies or 87 SaaS companies. And so what you're seeing is the enterprise understands that there's going to be a red versus blue and a couple other stripes and colors and that they want their business people to buy whatever works for them, but they want to make them work together, right? So there is a natural sort of geographic or structural nature to this business where there's a need for Switzerland and there's need for amazing technology, some of which can only come from large companies with big balance sheets and vertical understanding and a legacy of success. But if a customer like an AstraZeneca where you have a CIO like Dave Smully who transformed Flextronics, is now doing the same thing at AstraZeneca, bringing Cloud apps, is able to use companies like SnapLogic and then deploy Workday appropriately, SAP appropriately, have his own custom development, some domestic, some overseas all over the world, then you've got the ability, again, to get something very custom and you can do that at a fraction of the cost of over consulting or darkening the skies in the way things were done in the last century. So then tell us about maybe the convergence of the New Age data warehousing, the data science pipeline, and then this bespoke collection of applications, not bespoke the way Oracle tried it 20 years ago where you had to upgrade every app on every, tied into every other app on-prem, but perhaps the integration more wanted from many to one because they're in the cloud. There's only one version of each. How do you tie those two worlds together? You know, it's like that old bromide, no when to hold them, no when to fold them, right? There is a tendency when programming becomes more approachable, you have more millennials who are able to pick up technology in a way, I mean, it's astounding what my children can do. So what you want to do is as a enterprise, you want to very carefully build those things that you want to build, make sure you don't overbuild, or say if you have a development capability, then every problem looks like a development nail and you have a hammer called development. Let's hire more Java programmers, that's not the answer. Conversely, you don't want to lose sight of the fact that to really be successful in this millennium, you have to have a core competence around technology. So you want to carefully assemble and build your capability. Nobody should ever outsource management, that's a bad idea. But what you want to do is you want to think about those things that you want to buy as a package. Is that a core competence? So there are excellent products for finance, for human capital management, for travel expense management. Koopa just announced today there for managing your spend. Some of the work at Ariba, now the Ariba Cloud at SAP are excellent products to help you do certain job titles really well. So you really shouldn't be building those things. But what you should be doing is doing the right element to build and buy. So now what does that mean for the world of analytics? In my view, people building data platforms or using a lot of open source and a lot of DevOps, labor and virtualization and engineering and all that stuff may be less valuable over time because where the puck is going is where a lot of people should skate to is there is a nature of developing certain machine language and certain kind of AI capabilities that I think are going to be transformational for almost every industry. It is hard to imagine anything in a more mechanized back office, moving paper, manufacturing that cannot go through a quantum of improvement through AI. There are obviously moral and certain humanity, dystopia issues around that to be dealt with but what people should be doing is I think building out the AI capabilities because those are very custom to that business. Those have to do with the business's core competence. It's milieu of markets and competitors but there should be in a sense stroking a purchase order in the direction of a SaaS provider, a cloud data provider like Microsoft Azure or Redshift and shrinking down their lift and shift bill and their data center bill by doing that. It's fascinating how long it took enterprises to figure out that just like they've been leveraging ADP for God knows how many years, there's a lot of other SaaS applications you can use to do your non-differentiated heavy lifting but they're clearly all in now. So, Garopp, we're running low on time. I just want to say when we get you here next year, what's top of your plate, what's top of priorities for 2017 because obviously you guys are knocking down things left and right. Thank you, Jeff. Look, priority for us is growth. We're a growth company and we grow responsibly. We've seen a return to quality on the part of investors, on the part of public and private investors and you'll see us continue to go at that growth opportunity in a manner consistent with our core values of building product with incredible success. 99% of our customers renewed our products last quarter. 99%? Yes, sir. It says it all. And in the world of enterprise software where there's a lot of snake oil, I'm proud to say that we are building new product with old fashioned values and that's what you see from us. Well, 99 customer retention, you can't beat that. I mean, someone just on around. Hard to beat. There's no way but down from there, right? Exactly. All right, Garopp. Well, thanks for taking us a few minutes out of your busy day. Thank you, Jeff. And really appreciate the time. Thank you, Jeff. Thank you, George. Good to be here. All right, I'm George Gilbert. I'm Jeff Frick. You're watching theCUBE from The Historic, but go to lounge in downtown San Jose. Thanks for watching.