 Live from San Jose, in the heart of Silicon Valley. It's theCUBE, covering DataWorks Summit 2018. Brought to you by Hortonworks. Welcome back to day two of theCUBE's live coverage of DataWorks here in San Jose, California. I'm your host, Rebecca Knight, along with my co-host, James Kobielus. James, it's great to be here with you, host in the hosting seats again. Day two, yes. Exactly. So, here we are, this conference, 2,100 attendees from 32 countries, 23 industries. It's a relatively big show. They do three of them during the year. One of the things that I really- It's a well-established show, too. I think this was like the 11th year since Yahoo started up the first Hadoop Summit in 2008. So, it's an established event. Exactly, exactly. But I really want to talk about Hortonworks, the company. Something that you had brought up in an analyst report before the show started. And that was talking about Hortonworks' cashflow positivity for the first time. Which is good. Which is good, which is a positive sign. And yet, what are the prospects for this company's financial health? We're still not seeing really clear signs of robust financial growth. I think the signs are good for the simple reason they're making significant investments now to prepare for the future that's almost inevitable. And the future that's almost inevitable, when I say the future, the 2020s, the decade that's coming, most of their customers will shift more of their workloads, maybe not entirely yet, to public cloud environments for everything they're doing. AI, machine learning, deep learning. And clearly, the beneficiaries of that trend will be the public cloud providers, all of whom are Hortonworks' partners and established partners. AWS, Microsoft with Azure, Google Cloud Platform, IBM with IBM Cloud. Hortonworks, their partnerships with these cloud providers go back several years, so it's not a new initiative for them. They've seen the writing on the wall practically from the start of, Hortonworks was founding in 2011 and they need to go deeper towards making their solution portfolio capable of being deployable on-prem in public clouds and in various sundry, funky combinations called hybrid multi-clouds. Okay, so they've been making those investments in those partnerships and in public cloud enabling the Hortonworks data platform. Here at this show, DataWorks 2018, here in San Jose, they've released the latest major version, HDP 3.0 of their core platform with a lot of significant enhancements related to things that their customers are increasingly doing. Well, I want to ask you about those announcements. But also, they have partnership announcements that deep ones of integration and lift and shift of the Hortonworks portfolio of HDP with Hortonworks data flow and data plain services so that those solutions can operate transparently on those public cloud environments and as and when the customers choose to shift their workloads. Because Hortonworks really, like Scott now yesterday, I mean, he just laid it on the line, they know that the more of the public cloud workloads will predominate now in this space, they're just making these speculative investments that they absolutely have to now to prepare the way. So I think this cost that they're incurring now to prepare their entire portfolio for that inevitable future is the right thing to do and that's probably why they still have not attained massive rock and roll and positive clash flow yet. But I think they're preparing the way for them to do so in the coming decade. So their financial future is looking brighter and they're doing the right things. So now let's talk tech and this is really where you want to be, Jim. I know you. Oh, I get sleep now and I don't think about tech constantly. So as you've said, they're really doing a lot of emphasis now on their public cloud partnerships. But they've also launched several new products and upgrades to existing products. What are you seeing that excites you and that you think really will be potential game changers? You know, this is geeky, but this is important because it's at the very heart of Hortonworks data platform 3.0. 3.0, containerization of more of what, when you're a data scientist and you're building a machine learning model using data that's maintained and persisted and processed within Hortonworks data platform or any other big data platform, you want the ability increasingly if you're developing machine learning, deep learning, AI in general, to take that application you might build like using TensorFlow models that you build on HDP to be able to containerize it in Docker and orchestrate it all through Kubernetes and all that wonderful stuff and deploy it out those AI out to increasingly edge computing, mobile computing, embedded computing environments where the real venture capital mania is happening and things like autonomous vehicles and drones and you name it. So the fact is that Hortonworks has made that in many ways the premier new feature of HDP 3.0 announced here this week at the show. That very much harmonizes with what their partners, where their partners are going with containerization of AI. IBM, one of their premier partners very recently like last month, I think it was, announced the latest version of IBM, what do you call it? IBM Cloud Private, which has embedded as a core feature containerization within that environment which is a prem-based environment of AI and so forth. The fact that Hortonworks continues to maintain close alignment with the capabilities that its public cloud partners are building to their respective portfolios is important but also Hortonworks with its, they call it a single pane of glass, the data plane services for metadata and monitoring and governance and compliance across this sprawling hybrid multi-cloud scenarios. The fact that they're continuing to make, in fact really focusing on deep investments in that portfolio so that when an IBM introduces or AWS or whoever introduces some new feature in their respective platforms, Hortonworks has the ability to, as it were, abstract above and beyond all of that so that the customer, the developer, and the data administrator, all they need to do, if they're a Hortonworks customer, is stay within the data plane services environment to be able to deploy with harmonized metadata and harmonized policies and harmonized schemas and so forth and so on, and query optimization across these sprawling environments. So Hortonworks, I think, knows where their bread is buttered and it needs to stay on the DPS, data plane services side, which is why a couple of months ago in Berlin, Hortonworks made it, I think, the most significant announcement of the year for them and really for the industry, was that they announced the data steward studio. In Berlin, tactically clearly it was who addressed the GDPR, mandate that was coming up, but really data stewardship as an end to end workflow for lots of core enterprise applications. Absolutely essential, data steward studio is a data plane service that can operate across multi-cloud environments. Hortonworks doesn't even keep on, they didn't have a DPS data plane services announcements here in San Jose this week, but you can best believe that next year at this time at this show, and in the interim they'll probably have a number of significant announcements to deepen that portfolio. Once again, it's to grease the wheels towards a more purely public cloud future in which there will be Hortonworks DNA inside most of their customers' environments going forward. I want to ask you about themes of this year's conference. So the thing is, is that you were in Berlin at the last big Hortonworks data work summit. Yeah, octoliber, yes. So really GDPR dominated the conversations because the new rules and regulations hadn't yet taken effect and companies were sort of bracing for what life was going to be like under GDPR. Now the rules are here, they're here to stay and companies are really grappling with it, trying to understand the changes and how they can exist in this new regime. What would you say are the biggest themes, and we're still talking about GDPR of course, but what would you say are the bigger themes that are this week's conference? Is it scalability? Is it, I mean, what would you say we're going? What do you think has dominated the conversations here? Well, scalability is not the big theme this week, though there are significant scalability announcements this week in the context of HDP 3.0, the ability to persist in a scale-out fashion across multiple billions of files. Storage efficiency is an important piece of the overall announcement with support for erasure coding, blah, blah, blah. That's not, it's already Hortonworks, like all of their cloud providers and other big data providers, provide very scalable environments for storage, workload management, that was not the hugest, buzzy theme in terms of the announcements this week. The buzz, of course, was HDP 3.0. Containerization, that's important, but we just came out of the day to keynote. AI is not a huge focus yet for a lot of the Hortonworks customers who are here, the developers. They're, most of their customers are not yet that far along in their deep learning journeys or whatever, but they're definitely going there. There's plenty of really cool keynote discussions, including the guy with the autonomous vehicles, or whatever that thing we just came out of. That was not the predominant theme this week here in terms of the HDP 3.0. I think what it comes down to is that with HDP 3.0, Hive, though you tend to take it for granted, it's been in Hadoop from the very start practically, Hive is now a full enterprise database, and that's the core, one of the cores of HDP 3.0. Hive itself, Hive 3.0 now is its version, is asset compliant, and that may be totally geeky to most of the world, but that enables it to support transactional applications. So more big data in every environment is supporting more traditional enterprise application, transactional applications that require like two-phase commit and all that goodness. The fact is, Hortonworks from what I can see is the first of the big data vendors to incorporate those enhancements to Hive 3.0, because they're so completely tuned into the Hive environment in terms of a committer. I think in many ways that is the predominant theme in terms of the new stuff that will actually resonate with the developers, their customers here at the show. And with enterprises in general, they can put more of their traditional enterprise application workloads on big data environments, and specifically Hortonworks hopes it's HDP 3.0. So. Well, I'm excited to learn more here on theCUBE with you today. We've got a lot of great interviews lined up and a lot of interesting content. We've got a great crew too, so this is a fun show to do. Sure is. We will have more from day two of the...