 From New York City, it's The Cube, covering New Relic Future Stack 2019, brought to you by New Relic. Hi, I'm Stu Miniman, and this is The Cube at New Relic Future Stack 2019 here in New York City. It's our first year of the event, but the event itself has been around for seven years, and to help us end our coverage, no better person than the founder and CEO of New Relic, and the one who's the name of the company came from Lou Cerny. Of course, Lou Cerny is an anagram for New Relic. Indeed it is. Lou, thank you so much for having The Cube at the event here, and thanks for hosting us. I'm a huge fan of The Cube, I've been watching it for a long time, and it's such a pleasure to have you guys here. Thank you for coming. All right, so Lou, you've been known, you're known as the coding CEO. I am. And you come out with the vision of making software better. It's a great goal. Give us a little bit about, as you think, kind of the state of the industry, the internet's challenged these days. It's got a fragment to do a bunch of pieces, and open source isn't what it used to be, and there's so many changes going on in the industry, just kind of macro view before we get into New Relic. Yeah, from a macro view, at New Relic, we do this for the love of software. It's not just me, it's the whole company we believe in software. We think it unquestionably is changing the world, transforming every industry. It's not enough just to build software, that's great. You have to deliver more perfect software. And that's now become almost obvious, whereas when we first started out, that was actually a bit of an evangelical sale, where we had to convince people that they needed to observe their software. Well, now it's become a must-do thing, and that's why observability has become a household term, right? Everybody recognizes that anything that runs in production in internet scale needs to be observed, needs to be measured in real time. And so that's been going on, and has become a must-do thing for our customers. And so what we're so excited about is that we're delivering the first observability platform. What do we mean by that? Well, we see with this proliferation of tools, where you might have metrics going to one place, and logs going to another place, and traces going to Zipkin, or logs going to Elasticsearch. You want it all in one place, and more important, you want it to be connected so that you can see the relationship between the application and its server infrastructure and the user experience all in one connected platform. And so that's what we're delivering with New Relic One today, that's so exciting. Yeah, so, Lou, the IT industry in general is known for its fragmentation. Yeah, it is. You know, when I want to build my application, in the old days, it was like, I talked to CIO, he's like, give me a million dollars in 18 months, and I will build you the Taj Mahal of my application, and we've got it beautifully designed and pull it out. Well, today, things are moving much faster, but I've got everything from that Taj Mahal to the Kubernetes and serverless, microservice architectures, and there's usually a lot of different teams, and a lot of different tools in there. So, how does New Relic fit across that landscape, and how are you helping to pull things together? Well, certainly the industry's moving from the monolithic application to the component-based application, often running in smaller and smaller services, usually running in something like Kubernetes or in containerized environment, and with that comes a proliferation of things to monitor, and often a proliferation of tools. We have enterprise customers that have 20, 30 different monitoring and telemetry tools, and it's not because they want it, it's because there might be one particular feature that one tool does that gives them the visibility they need, and what they want is a single platform, and what people have historically used New Relic for is dropping our agents into their application, their infrastructure, and then our agents automatically put visibility in, and then they report on the health of that system. We do that really well, but what we're announcing today is that we're opening up our platform to consume telemetry from open source agentless sources so that if you've got something like Prometheus gathering data from Kubernetes, that can go straight into New Relic and be treated as first class data so that you don't have to switch between a bunch of tools. None of our customers want that. They want it all in one place, but they need an open platform that's connected and most importantly programmable so that they can actually have one tool to see it all, and that's New Relic. You know, a lot of the logging and tracing information out there isn't agent-led, so what do you see as the future of agents and what are some of the challenges of pulling all these various data types together? Well, the most important thing for the future is that our customers have complete control in a choice. So what we see, particularly in large enterprises, is they want both. They have a portfolio of more than 1,000 applications. They want to observe them all. Most of them, they'll want to drop an agent in because they don't have time to re-instrument them. Okay, but they still need to see them. Some of them, they may want to manually instrument because they want a higher level of control or they want to adopt an open-source API like OpenTelemetry, but then if they're adopting that for some of the portfolio, when a transaction reaches across these different services, you don't want to lose visibility, so we're delivering best of both worlds. You can manually instrument what you want. You can use OpenTelemetry as parts of your environment and then you can also use our automatic instrumentation to come from our agents and our customers get to decide and that's the future. So, Lou, you laid out the case in a strong way as to why New Relic One should be the platform for the monitoring observability here. I think you undersold a little bit the NRDB piece here because when I look inside my business or I talk to customers, being able to see my data and act on my data can be challenging. You showed a demo of 10 terabytes and being able to change it in a snap. NRDB is pretty magical at some risk. Let's see if this will show up on my phone right now. Just to give you a sense of how fast NRDB is performing right now. Okay, one more time. So we've got- Hold it up a little bit and show the camera this way. So NRDB right at this moment is inserting 18 million events every second. So every second, 17.18 million piece of data coming into NRDB in real-time. And our customers are querying that in real-time. Right now at this moment, they're reading 24 billion pieces of data per second. Those pieces of data could be log messages, they could be someone pressing something on their app, could be a request going through a server. It's all in the same database. And the last one is 100 millisecond response time on those queries, which is mind-blowing for these analytics queries. Yeah, and essentially, you actually showed the press and analysts this at lunch and it was over 20 million- It was at 40 billion at that moment. And 40 billion coming out in the same response time. Absolutely. And so- 100 milliseconds is like Google good as to how fast I get a response. For this kind of data processing is mind-blowing. Now the thing that our customers need to know is that all your metrics, all your events, all your logs, all your traces going into the same database with one query language. That's so much better than going to elastic search and using its query language for logs and then using a totally different query language for getting at your metrics and then trying to stitch it all together. We put it all in not only in one cloud but in one database. That is the most powerful telemetry database in the world which is NRDB. All right, Luke, how much, give us a little bit of kind of the journey to the announcements today. Observability has been talked about in the industry for a while. VC money has been pouring into startups. There's been some acquisitions in this space already. So give us a little bit as to how we got to today. So how we got to today was when we started off as a company, we were championing the whole idea of observability, putting visibility into application code. As I said, that was a bit evangelical in the early days. People were wondering if they needed it. Now there's no question they need it. In fact, some people needed so badly they want complete control and so they're manually instrumenting. Okay, I've talked about that. Now where we see people going is now that all this telemetry data is coming ideally into one place like New Relic, our customers are saying, I need to go beyond dashboards. Dashboards are good, but often dashboards are incomplete to get the most out of the data we're collecting. And that's why we're claiming we have the first and only platform for observability with a capital P. What do I mean by that? It's only a platform if you can build software on it and New Relic One is the first software development platform for observability applications. Our customers can take all this data and build real-time applications that leverage all the value out of it. When a customer buys something online, New Relic's database could be the first piece of certainly analytics database that sees that data. So you could do an application that shows real-time sales for your business people all based on New Relic One. We can also solve all sorts of IT operations problems by building applications on this platform. And to prove it out, we're offering 12 free open source applications to anyone. They can download, they can clone them off a GitHub and push them into their New Relic account. And they can use that as inspiration to build their own applications on top of our platform. And this is the, if I understand, the first 12 and you expect both New Relic and your customers will build many more. Yes, and actually it's 13 already. So we just added another one today. Some of those have been built by our customers already. So, and we're already seeing customers deploy these applications into their New Relic One accounts in production today. It really goes back to the promise of SaaS is that when customers need something and make a change or build on it, it's not just that customer that gets, be able to leverage that, but everybody else that is on the platform can take advantage of that. And the way to think of it is, yeah, you're absolutely right. And without force.com, Salesforce is just a CRM system, right? But with force.com, companies could really build, leverage all of the data inside Salesforce. Without programmability, ServiceNow is just a ticketing system, right? But how does ServiceNow become strategic by allowing people to build applications tailored to their business? We believe the world needs an observability platform and the only one of its kind is New Relic One. All right, so Lou, sounds like this should be something that should accelerate growth for the company going forward. New Relic, I read through your last earnings report there. Sure. You're growing at 30, 35%, which is reasonable, but less than the overall cloud marketplace itself is growing. So, how come the AWS, Azure, GCP, Tailwind isn't pushing New Relic faster? Well, it is a good Tailwind for us and I can't go into too much detail. We're a public company in a quiet period, so I can't speak to specifics. What I can tell you is history has shown that people tend to adopt platforms at a certain rate. And then a few years later, they adopt the management technologies for those platforms. So, we tend to be a little bit behind the adoption of cloud and up, but then when people standardize and they go all in on it, then they really increase their investment in New Relic. And I believe things like our platform capabilities take our customers that might be spending, we have 850 plus customers that spend more than 100,000 a year with New Relic. And I believe when they start to adopt our platform and go strategic with us, many of them will be million-dollar customers and that ought to be the basis of durable growth for the company. All right, so Lou, there was some news leading up to the event, some management changes. Let you speak a little bit of that. And you've got some history with, of course, Mike was already on the board. We're so thrilled about Mike Christensen joining the company as president and COO. So, I've known Mike since 2006 when he acquired my last company, Wiley Technology, which was really the very first APM company. And Mike was the president and COO of CA, and so he had a similar role there to what he has here. And Mike is, I think, one of the most brilliant operational minds I've ever met. He's been involved with New Relic for nine years. He's been one of the first investors in the company. He's been on our board of directors. And he's always had an incredibly, a keen mind for how to think about growing our business. And I've been trying, I've been thinking for a long time on how to get him more involved as a member of the team and finally I convinced him to come join. So, Mike joined us as our president and COO. He's going to be my partner in growing the business. I think those who know me know that I love technology and products and thinking about where we are five years from now. And Mike will be my partner to help make sure we're operating the company and growing the business on a day-to-day basis. Well, Lou, you and your team helped create and democratize this wave of APM. Yes. You know, application performance management as you look at it. You know, with today we talked about microservices. You talk about the dispersed nature of everything going on. How would you reframe kind of the market today and New Relic, you know, where it needs to be today and going forward? Okay, phase one. All right, phase zero was people monitored servers back in the Stone Ages. That was like monitoring was just, does the server up or down? It doesn't have enough CPU. Yeah, like in lights. That's right. Then came APM. APM really was the precursor to observability. It was the notion that these are complex systems. They need to be observed at high granularity. So, APM kind of was, gave birth to observability. So, when New Relic first came along, we're like less democratized APM. And as observability came along, we saw this opportunity to open up the platform and now where we are, if you look at our track record, first of all, my first company created the category of APM. New Relic then democratized APM and now we're delivering the first observability platform. And I believe that the future is programmable and that New Relic is the future. All right, so, Lou, you've always been enthusiastic when it comes to the vision that you put out. But it's been noted by some of my peers that just your energy level and enthusiasm is even higher today than usual. So many things that you talked about. Some of the things that you highlight, maybe behind the scenes, or things that might get missed beyond the headlines that you'd want to share. Well, look, the idea for New Relic 1 was born two years ago. I took 12 of some of the brightest people in New Relic offsite and we fleshed out the thinking and the early prototype of what's become this. And this, I've put, this is my life's work. This company's my life's work. I believe so much in this platform. I believe in its capabilities. I'm seeing our customers ripping it out of our hands saying this is going to enable us to fully achieve our goal of complete visibility and completely tailored to the needs of our business. So why I'm so fired up and passionate is when you put your heart and soul into something that's new that no one else has done before, there's been a handful of times I've done that in my life. The first time was, became APM. The second time became New Relic. The third was when I created NRDB and now the fourth is New Relic 1. And we're just getting started. All right, well, Lou, want to let you have the final word as to what you want your customers taking away here from FutureStack 2019. You know, my belief is that the future of observability is you need a platform, that platform needs to be open, connected and programmable. We have such a beautiful, easy, it's like a Heroku-like developer experience. So within seconds you can be building an application that takes the data, the telemetry data in New Relic and turns it into actionable business insights for your company. And if you want inspiration, there's 13 applications now up on GitHub that you can install right into your New Relic account and maybe modify and tailor your needs and republish to share with our other customers. Well, Lou, I know you and your team are making sure that New Relic doesn't become a relic of the past, so thank you so much for having us here. We're always in the future. And congratulations. I look forward to watching the progress going forward. Thank you, I enjoyed it. Thank you. All right, bye-bye. And that's a wrap for theCUBE's coverage of New Relic FutureStack 2019. I'm Stu Minim. Of course, go to thecube.net for all of the coverage. Big thanks to the team here and everyone supporting and as always, thank you for watching theCUBE.