 The Cube at Hadoop Summit 2014 is brought to you by Anchor Sponsor Hortonworks. We do Hadoop. And headline sponsor, WAN Disco. We make Hadoop invincible. Okay, we're back live here in Silicon Valley for Hortonworks. Hadoop Summit 2014, the CEO, Rob Beard is here. I'm John Furrier with Jeff Frick. The SiliconANGLE with Yvonne's The Cube. Rob Beard, and I know you're super busy and you got customer testimonies. You got the quick time to pop on The Cube. Thanks for coming. I really appreciate it. Thank you guys for being here. The number one question we get on The Cube and in and around the industry is, how is this market working? Obviously, it's about business. In this show here, you've had a huge success. Being the stewards of a community. You're not land grabbing the show. You guys have been a really good steward to the show. You're not branding it Hortonworks Summit. You're really making it about the industry. But you got Wales here, IBM, Disco. Then you got the big growing companies, Series C and above, Series C finance and growth companies, pre-IPO and startups all working together. So how is this market going to function? How does the open source community continue to operate at this level of pace, scale and pressure? Well, first of all, it's an incredibly important market. And it's an incredibly important technology. And what the technology and the platform does is it gives the enterprise the ability to actually re-platform and re-architect their entire data layer and data strategy. And what it does is it relieves the silos that they've had to put in for transaction systems or analytics platforms or X or Y or Z different applications. And now gives them the ability to evolve all of those different data sets into one platform. And the advancements architecturally of Hadoop have now allowed Hadoop to evolve from being a batch platform to batch interactive in real time, all on one data set, one cluster. And so that really generates a number of opportunities for the enterprise to achieve value in both architectural efficiencies as well as application strategies. And what's important is that the community evolved this together and I think it's misguided to think anyone company, anyone person can do this in its entirety. And to the extent you do, you begin to create fracture and you end up driving proprietary derivatives that begin to limit what the enterprise can actually accomplish. And so what we think is important is, as you point out, we want to bring the collective embodiment of the best people, the best tech, bring that into an open community and then bring that into an enterprise, consumable platform that's truly mission critical viable. Dave Vellante and I had a call last night with our top customers that worked with us want to know what's going on in the Hadoop ecosystem. And we were commenting like, you know, we were there from the beginning with theCUBE and we've seen all the stories and all the rhetoric when the guy, you know, it's not going to, they've also been worth their last day for platform when he had his initial pitch. Now he's got his series C building great company. And the comment that Dave and I said is that everyone's successful, right? So what's happening is interesting. We've heard all the different, is there going to be a red hat for Hadoop? This guy's going to be the only one person can win. Everyone's winning right now, right? I talked with MapR, you talked to all the folks out that you guys are doing well. Everyone is succeeding on the business metrics on their own. How do you reconcile that? Because you have a lot of open source experience. That's not necessarily something you can compare to some other generation. It's kind of unique in one level, but it's still open source. Why is everyone so successful and how do we continue that trend? It's at a top line, it's just, it's a very, very big market, right? And it's massive volumes of data. And the value proposition to the enterprise for getting that data under management efficiently and cost effectively is so significant that there's room for many, many players to be successful and some can have niche approaches and there are room for different models to exist in the market as fast as it's evolving. As I mentioned in my keynote, the volume of data is staggering and not our numbers, sort of consensus numbers from the analysts say that the volume of data in the enterprise is going to grow 50X a year between now and 2020. 85% of that data is coming from new data sources, right? And that generates a $50 billion market between now and 2020, just in Hadoop. And that's about a third of third of third. Well, if you add on the other infrastructure components on the build-out side, you talk about cloud and reconstructing and infrastructure, either Greenfield or legacy, still more numbers, massive numbers. It's another $50 billion, according to the consensus numbers for the analysts. Again, not our numbers. So it just, it's a massive number, but the value proposition that it returns back to the enterprise is staggering but re-architecting their data models and strategies. And Hadoop is the enabler to that. So I was going to say, Ruff, talk a little bit because really people talk about data as the new oil and what you guys are enabling is for them to extract value of something that was in the ground, maybe some of it was coming out, some now is new, you know, they're sinking new wells. We talk about just the incredible transformation of the value of that data that you guys are enabling with this type of a platform and approach, maybe some of your favorite examples. Sure, well, you know, there's clearly the infrastructure efficiencies that you can get from proprietary platforms and storage devices to open or commodity. But I think more importantly than that, and you're always going to get- It's saving money, right? Yeah, it's saving money. That's not that exciting. That's nice. And you get hard dollar ROI and that's sort of what fueled the initial movement in the market. More importantly, what this does is the traditional enterprise today and the traditional data architecture, they take analytics about a transaction, they take the information about the transaction two days to two weeks after that transaction's happened and drive analytics against it. That's the traditional enterprise. And therefore they're reacting to what happened in a transaction very much downstream. So they're post-transaction reactive and what they have an opportunity to do is to be interactive pre-transaction with both their customer and their supply chain. Now to do that, they need to understand the patterns of movement that are happening and that's coming from mobile, social, web-generated data, machine-generated data. And by having access to that, putting all that under management, they shift their business model from reactive post-transaction to interactive pre-transaction, completely changes the dynamic of how the products, their services, what their supply chain strategies are, what their relationships with their customers and their customer's customers are. So it completely transforms the business models of how the enterprise works today. And that's why the value is so high of the data. Now, Hadoop enables, yes, not just the infrastructure efficiency, but the model shift that it allows. And that's really where the power of managing this data in Hadoop actually is. Rob, my final question, I know you got a run, thanks for coming on theCUBE. Everyone wanted me to ask you, how are you managing the business with all the pressure that you guys are under? Capital markets are throwing money around like it's nobody's business right now. We've seen huge deals going on. You guys just had an acquisition on the security front, really led the market there, Cloud Air followed with their counter to that huge innovation bubble. I mean, I'm sure you have offers for significant cash, I mean, as others have had. How are you dealing with that? What's the management philosophy? What is Hortonworks doing to maintain the balance of continuing to get the rocket ship in orbit at the same time dealing with these frothy capital markets? First and foremost, we are very, very focused in our model and our strategy of making sure that we do the things that will make the market function very fast and at scale. And there's four fundamental principles that we founded the company on and that we operate and execute our model and strategy to. The first one being innovate the core of the tech. It starts with the tech. And that's where you saw yarn and teds and initiatives like Stinger to improve the performance of high. And so it's innovating the architecture of taking Hadoop from a batch platform to a batch interactive real-time platform, one data set, one cluster. So it really innovates the core architecture and advances and expands the use case. That's open source tech, that's not any. That's all attached. The second component to the strategy model to make the market function is to ensure that Hadoop is an enterprise viable data platform. So all the things that you see around governance, security, operations, architectural integrity, high availability, security, et cetera, et cetera. We're building that in a very, very premeditated disciplined roadmap that we share openly and transparently with the community, with the ecosystem, with our customers. So that we are ensuring that Hadoop becomes an enterprise viable platform. And the second dimension to enabling it beyond and enabling all the data services that the enterprise requires is we take it through an incredibly disciplined productization, packaging, QA, and release process that mirrors any other proprietary data platform that can ensure then Hadoop from an enterprise viable standpoint can manage petabytes of data in production enterprise-wide at scale. Bulletproof platform. Bulletproof. Very, very predictable, incredibly stable. The third component is that we believe it's incredibly important to enable the ecosystem to extend the amount of data under management they take to their customer. So we make it very clean and transparent for them to integrate and optimize that integration so that their customer can access, again, transparently through their platform or tool, the data sets that they're accessing, right? And that creates a pull market and it increases the amount of data under management that the enterprise provides value to their customers for. And again, and part of our modeling strategy as it pertains to the ecosystem, we're not moving up the stack to try to disintermediate our clients. You want to make them money? It's about a big challenge. And give them the ability to create value fast by getting bigger sets of data that they're providing. And the fourth part is we believe it's incredibly important to do this all 100% in open source. It creates transparency, it creates efficiency, both in terms of debt model, in terms of support model and velocity of getting world-class tech into the hands of the customer through the community. You know, there's, I think, silly notions that say you can't build a business that creates value or is profitable unless you have proprietary tech that you hold back. It's like saying social media will never emerge if you only give away access to a Facebook or a Twitter and Yelp for free, right? I think those paradigms will prove themselves over time. But those are the four parts to the model. And that, we believe, makes the model function very big, very faster to the market, excuse me, through that model. And we view this as when you make the market function and we're a core driver and a core participant through the community facilitating the innovation, the productization, the packaging, the enterprise- You get the reward on the back end of that. You're enabling success. You're part of that revenue stream. You take a small lick off the cone, as they say, but others make money too. It's not a land grab, right? You're in partnership with the guys making money together. It's a $50 billion market. And there will be a lot of companies, including ours, that become very successful in the public markets as a result of that. And that's what we're building it for. And you don't do things on the short term to try to maximize valuation because it actually will box you in into awkward situations, we believe. Well, you guys have been very transparent, Hortonworks, and very social. We appreciate that. The market is rewarding you guys for that. Certainly the core tech is there. The commitment to open source has been great. You guys have been a great steward. You're not taking over the conference. You're still open. We really appreciate that. And thanks for having us. We really appreciate it. See you at Hortonworks. Early days, as Merv Adrian said, it's still going to be early. Lots of money. Barriers to entry are low. Get in this market. Tons of beach head for everybody. So thank you. Thank you guys for being here. It's a great car. You actually exposed the transparency and broadened the view for the entire summit. So thank you for being here. Our pleasure. Thank you. We'll see you right back after the short break. See you guys. Appreciate it.