 from Las Vegas. It's theCUBE, covering AWS re-invent 2018. Brought to you by Amazon Web Services, Intel. And their ecosystem partners. Well, good morning. Welcome back to AWS re-invent. This is day three of our coverage here on theCUBE. We made it. We have survived the show here. That's been a great show. And still a lot of energy out here on the show floor. Justin Warren, John Walls. We're with Lou Cerny, who is the CEO and founder of New Relic. And Lou, if you look just over your left shoulder, there's that really impressive New Relic pavilion you've got. We've been admiring it all week. So congratulations. That's been a great show for us. And our theme this year is build fast and break nothing because that's really the objective of moving to the cloud is building software that customers value as rapidly as possible. When you're building stuff fast, there's risk. And so how do you build fast with the breaking nothing? It's measuring everything in real time, everything in that environment, seeing exactly what's going on so you can make sure the stuff you're building works for your customers. And that's what we do for so many people who are adopting the Amazon cloud. Kind of reminds me of John Wood, the old UCLA basketball coach who'd said, be quick, but don't hurry. That's right. That's right. So it was all about pace and understanding and putting that culture in the team. So how do you put that culture and into with your clients? You know, it's one of the great truths. How can you manage what you can't measure? So we're a company that makes it trivially easy to measure software, infrastructure, digital customer experience. Our customers come to us every day and say, what I'm in love about New Relic is within seconds of setting up my account and deploying the agent. All of a sudden production is lit up. I can see what's going on. That measurement helps our customers have more confidence in moving to the cloud faster, deploying more frequently, delivering customer value more rapidly. Now, one of the themes that we've had over the last couple of days, and John and I were talking just before we came on this morning, that complexity. We've been hearing that time and time. The amount of change is happening so quickly and we've got all of these different systems. We've got microservices, we've got containers, we've got serverless. It's a really complex environment. How do you help the humans understand? How do you get them to understand what's going on in this really complex environment that's moving so fast? You're absolutely hitting on the key challenge and what we're great at, what our customers tell us they love about us is we simplify that complexity. And how do we simplify it? Well, one, we have a deep understanding of how these systems work and we've fought very hard about how do you surface the interesting information that's most relevant to understanding the health and application. And really in that moment where there's a problem, how do you make it as easy as possible to understand the cause of that problem as rapidly as possible? This is like, our customers, they're right in the pit of the most high-pressure situations when there's a production issue. Every second counts. Every second counts. You've got to find that issue as rapidly as possible. And what our customers tell us is they're sick of having to juggle around between three, four, five. Many of our customers have dozens of tools that are intended to watch production. They turn to New Relic platform because it's all in one platform. And when seconds matter, you don't want to be switching between tools and context to understand what the nature of the problem is. And that's super important. It's kind of like we all become pack rats in a way, right? We save things and we just keep putting them in this room, in this room, in this room and it comes time to kind of clean up or get our act together. And that's what you're doing for people is helping them get their act together. Absolutely. And once you've got an understanding about how the system provides you, go from overly cautious and timid to confident. And with that confidence, you can start playing offense with software. We talk about all the time. 15, 20 years ago, IT leaders thought of software as a defensive mechanism. When I say defense, I mean, it's a way to reduce costs. How do I reduce the cost of billing? How do I reduce the cost of handling a support call? Now it's offense. It's the growth engine for these companies, right? The digital customer experience is driving top line growth. And so when you're confident in your ability to move fast with your software, you're actually participating in the growth of your company. That's why it's so strategic. That's why the cloud is growing so rapidly. So if you've got a customer who's not with New Relic, clearly you want them to, they should be going with New Relic. Yeah, they're misguided, but they'll get there. What does it feel like to go from not having New Relic in there and dealing with this complexity and having those struggles, and then as you put in New Relic for the first time, what's that onboarding experience feel like? I once was blind and now I see. John Newton, amazing, great. Yeah, absolutely, exactly. No, it's truly that. Our customers tell us that before I discovered New Relic, I had no idea what was going on in production. And it was opinions that were telling us what was going on. And when you've got a bunch of teams working on a complex system and there's a problem and it's like the loudest opinions going to determine how you go forward, that results in chaos and it results in organizational misalignment. And with data, all of a sudden, people align on how you move forward. Yeah, so with all that data that's there, I mean, that can actually be complex itself if I'm trying to see everything all at once, that can be overwhelming. So how do you help customers dial in on what's actually important within this sea of information that they can now look at? Well, you know, we have a variety of ways in which we approach that problem. The first is an opinionated user interface. We have more experience in the realm, my first company I founded in 1998, created the category of application performance management. And so I've been thinking about this problem, my teams have been thinking about this problem for a long time. We come to our customers with an opinion on what matters in the application environment. But even then, beyond that, we're layering on AI, but we call it applied intelligence because artificial intelligence, people overuse the term. And honestly, our customers don't care whether we're using a collaborative filter or good old fashioned algorithms, but they want us to put more smarts in our platform to tell them what's anomalous, to tell them what's abnormal, to tell them what to pay attention to in this sea of data. New Relic collects about 15 million data points every second off of our customers' applications and infrastructure and digital customer experiences. 15 million data points every second coming to the New Relic cloud. And we analyze all of it in real time to surface to our customers what's important, what's anomalous and what's interesting. Yeah, so let's get into that discussion about what's anomalous and what's interesting. How do you differentiate that? Because as you said out of 15 million data points every second, I mean, you're going to develop trends, but by the time you evaluate it seems like one set of data, you're off to a completely different set of data because it's a very dynamic environment. Well, it's a combination of an understanding of how applications work in general, but then the flexibility to recognize how an e-commerce application might be very different from a content application like USA Today Networks is a big New Relic customer. And so we need to provide enough of a platform that our customers can give New Relic some guidance on the nature of their application. And we can discover its architecture and we can discover things about it, but we really can't discover its business purpose. And so there's a combination of what we do out of the box with the customized ability that get our customers the point where the software's doing the work for them. Right, so having been in the show now for three, four days, what have you seen around here? What are customers looking at that they're going to bring on to their environment next? What are some of the things that they're looking to do? Well, I think that Lambda is coming mainstream, right? And so when we think about where the world is going, microservices are going to be here for a while just like all the other technologies you said, like the pack rat analogy is true, but in the future when someone starts a brand new project, they won't even think about infrastructure. They'll just think about their code. And New Relic's philosophy on visibility is you start with the software because the software is the whole of the business logic. The whole point of all this infrastructure is to run software. And so our most important starting point for visibility is the software itself. We just made an announcement this week about delivering the first product that automatically instrument Lanza to tell you if your Lambda function is misbehaving, exactly how is it doing that? And so as the world continually moves from the old IT used to obsess on infrastructure and new IT obsesses on how do we deliver more software faster? And that aligns very well with what we're great at and what our philosophy is on delivering visibility. It starts and ends with the software. And it feels like people are going into Lambda really quite quickly, because I was talking with some meetings this morning that they were saying that enterprises in particular may not have actually jumped onto the container bandwagon yet, but they're looking at Lambda and just going, you know what? It's going to skip straight to that. Yeah, I'm seeing quite a bit of that. Containers still have an awful lot of value. They're wonderful light ways to host what used to be on a virtualized environment and get that isolation, all that benefit. Kubernetes is also a big deal. We made an acquisition of a company called CoastScale that we announced last quarter that accelerates our capability to do work in Kubernetes environments. We're always inspired by what our customers are doing to accelerate how they build their software. And that inspires us to make sure our platforms continually their tool of choice to make sure they can see the entire environment. So you're getting as much from them as they're getting from you? Absolutely, it's a great partnership we have with our customers, we learn from them, and then we provide them with thought leadership on how do you think about making sure you're seeing the entire environment so you can spend more time delivering great software and less time debugging it. Excellent. Well, let's get back to that great booth of yours. Awesome, great. But thanks for being with us. Yeah, thank you. We appreciate sharing the new relic story and success on the last day of the show. All right, well, thank you, all right. Excellent. All right, Lucerdi joining us. Thank you. From New Relic, back with more here with AWS re-invent. You're watching theCUBE from Las Vegas.