 Live from Washington D.C., it's theCUBE. Covering Boomi World 19, brought to you by Boomi. Welcome to theCUBE, Lisa Martin at Boomi World 19 in Washington D.C., and with John Furrier and John and I are pleased to welcome to theCUBE Jason Maynard, the SPP of Global Field Operations from NetSuite. Jason, welcome. Thanks for having me. It's great to be in D.C. and on theCUBE. It is, we were just talking about baseball, so we'll have to park that for a second and talk about some other sexy stuff besides baseball, ERP. So NetSuite, I saw you on stage this morning. You guys have been a partner, the first Alliance partner with Boomi for about 12 years. Thousands of joint customers, candy.com is one of them. They're going to be on later today. So I'm excited to have my afternoon sugar rush. Make sure he brings a big bag of candy for you. Oh, you got it. So talk to us about, you guys were also, I noticed, Boomi's 2019 Alliance partner of the year. Lots of innovations going on. Give our audience a little bit of an overview of what NetSuite is doing with Boomi. Great. So Boomi has been one of our longest partners. I think I said, I think we first inked the partnership in 2007. So it goes back 12, 13 years. We, when we sell ERP, you always end up having to connect to a legacy on-prem system, right? Or you may have to connect to new marketplaces to sell. And so there's always need for integration. And so from day one, Boomi wanted to really kind of push the envelope, work with cloud players. You know, when we started NetSuite 20 years ago, it was kind of crazy to put business applications on the internet. And they've been there from day one with us really on this journey. And so they've been a great partner to sort of help all those customers migrate and move their business to the cloud. You guys had success with Boomi on the customer front. Could you unpack that a little bit because the customer equation around data is interesting. You guys have turned this into an opportunity with NetSuite. Talk about how that works. Yeah, I mean, like every customer needs to get more insight out of their data. And you know, the ERP system is one of the major hubs in any organization, right? You've got a handful of system of records, right? And core financials is one of the main systems record. And inevitably every customer will have probably 15, 20 legacy data sources, right? That are going to be necessary for an ERP. And so for us, working with Boomi across, not just the US, but across the globe with a lot of different international customers, it's a natural fit because we're not obviously going to be connecting with all the systems that they're touching today. It brings a lot more value of data into NetSuite, which obviously then helps our customer out. So you guys were, you said an early partner of Boomi back in 2007 when they were founded, we got to speak with Rick Nucci yesterday. So one of the interesting things that we talk about, and John even pointed this out yesterday is they took a big bet, Boomi did, way back then with building this architecture that's pretty unique to this day, this single instance, multi-tenant cloud application. Take us back to, because obviously NetSuite's been around longer, you have a lot of choice. There are more iPads vendors out there. What is it about the way that Boomi is architected that is enabling your customers to achieve so much success, but also really that you guys saw back in 07, I think this is something that's going to be a real big opportunity for NetSuite. You know, it's been an interesting ride because if you go back even to 07, and even maybe eight or nine years ago, it was not a foregone conclusion with a lot of technology vendors that the world was going to shift to the cloud. Right, there were a lot of server huggers out there. There still are. They still want to hug the machine, right? And so it's important, I think, that we work with partners who have the same true north in terms of where we think the technology is going. And I think that alignment, which is, you know, we're 100% in the cloud, always have been, always will be, Boomi shared that vision early on, so it was easier to make a bet then, right, with a vendor who was going to have that commitment. And so that's been, to their credit, the vision that they've had for obviously years now, and I think it's what's helped them grow so quickly. And one of the things that you observed, obviously, is that the customers have choices, but the world's software is changing, right? I mean, cloud has changed the software development, lifecycle, I mean, just in the past decade alone, the business has changed. You're still going to have the system of records, okay? But with containers and now Kubernetes and some of these cloud-native opportunities, there's more flexibility in how people are deploying legacy and or core apps. So they're not getting thrown away as everyone had predicted. So I mean, there was some pundits saying, well, everyone's going to move to the cloud and not really. Well, look, it's a good point because there's, you know, packaged applications are not the entirety of the application market, as you know, right? Custom application development will never go away. You will always have, you know, things that are custom. People build apps on NetSuite, right? Things that are very close to ERP you'll build on the NetSuite platform, but they're things that are not, you know, native to our platform that need to connect to NetSuite. And there are customers that we share who have legacy COBOL applications, for example, right? And they may need to put a wrapper around that and get certain forms into NetSuite. So it really does run the gamut. And so it'll never be one thing, right? We just sort of in the technology industry, we never go from, you know, 100 to zero in terms of what's deployed in the legacy. We sort of layer and compost technology. And I think that's what's happening. And so, you know, we'll replace certain systems. We go in and we pretty much always replace an on-prem system, but there are a lot of on-prem technologies that will never go away. I was digging around about Boomi and you guys, NetSuite, looking at some of the use cases. One of the things that caught my eye was, you know, the classic growth startup, for instance, might be born in the cloud, never have an IT department. They have kind of a hack together system of record, HR and ERP kind of things, but at some point they got to grow. And they hit a growth spurt and they just become rapid growth, eventually goes public. You guys have had good success with Boomi in these kinds of startups. It's pretty normal, you've seen this before. Can you talk about that, Daniel? Because at some point, people got to start establishing formal systems, applications. You're going to need payroll, you're going to need HR. I mean, this is blocking and tackling. You guys have been successful there. Well, you know, we like to think about, we can be the first system that you'll ever need and hopefully will be the last system that you'll ever need, right? And what ends up happening is we've architected NetSuite to let you start small and then add more functionalities as you grow. So you may start with just basic financials. You may add order management, move into full-fledged ERP. Maybe you're going to use our HR system down the road. And so we kind of stairway a customer through their journey. Boomi does the same thing. Maybe you start with two connectors, right? You're just connecting two basic applications into NetSuite and then you evolve into something more sophisticated, right, where as you saw today in some of the technology demos where they're tapping into all sorts of different systems that are not even ERP or CRM. It's, you know, IoT and just all sorts of different insights that they can bring from the different technologies. So a better together message is legit and this works. Yeah, you know, technology is all about co-opetition these days, right? Is every vendor, right, in some way we overlap, you know, Boomi's owned by Dell and NetSuite's owned by Oracle, right? We're all sort of interlocked in one way or another, but ultimately we have to work together because we share so many customers. And so customers don't have the patience and nor should they for any of the sort of the vendor warfare. And I think that's the cool thing that's evolved with technology standards. It's easy for us to work together and we have to do it and we want to do it because it's what's the right thing for the customer. Let's talk about NetSuite as a launching pad for a lot of tech IPOs in the last few years. Give us your perspectives on what you guys started to recognize as a lot of these tech companies have kind of, that's why it just seems to me like NetSuite has been this sort of launchpad for that. Talk to us about what you've achieved there. Yeah, no, we're really humbled by the fact that more tech companies go public on NetSuite than frankly any other ERP system. We helped invent the industry early on 20 years ago. Evan Goldberg and Larry had the famous four minute phone call to kind of crazily idea to put business apps on the web. And so we've been at the forefront of this, but it's not just technology. We were a subscription business from day one. We didn't sell a license with maintenance, we sold a subscription. So I think a lot of customers look at us and say, okay, they've been through the journey that we have. We went public 12 years ago. We scaled past a billion dollars in sales. We got acquired. So the journey that we've been on, most of our customers are going to be on that journey in one form or another. We've made acquisitions, our customers make acquisitions. So we tried, and this was sort of the genius of what Evan and the team built is a system that can handle any business model. So whether you're selling time as a service, whether you're selling time, you're selling a subscription, you're selling a widget, maybe you're going to sell a widget as a service in the future. We can kind of handle any of the business models. And most of the IPOs are innovative companies that innovate not just with what they sell, but in how they sell it. Talk about some stories from the field that you've seen out there. Anecdotally share some current situation. What are customers going through right now? Enterprises, as they go through their, quote, journeys, they realize Cloud's there, they got some stuff on premise they're going to keep there. There's obviously certain reasons you're going to run payroll in the Cloud. You're going to have to have multi-tenancies. There's a lot of news cases. So Cloud's not that straightforward when you start thinking about having an enterprise in a hybrid mode of operations. What are some of the customers feeling? What's the mindset? What's their architecture look like? What are some of the examples can you share? Yeah, you know, I would say three things come to mind. So first off, it's this business model innovation, right? The on-prem systems tend to lock you into a model, right? And there's nothing, when they were built, they were innovative 15, 20, 30 years ago. Most companies' business models have outgrown that legacy system. So they need to move off that to enable some new thing that they want to do. So that's a big driver. I think the other thing is globalization is here to stay. You know, whether you're in the United States, or you're in the UK, or you're in Asia, right? We're one interconnected global economy. And so you may source from Asia, you may design in California, you may do nearshore assembly in Mexico, and then you do omnichannel distribution. So you have to be global. And I would say the thing that's changed in the last 10 years is companies are being global from day one. It's not just something you add on five, seven, eight years down the road. You see companies designed for being global. And I think those two things, business model innovation global, are big catalysts right now. Okay, one more thing real quick. So we had a CUBE alumni said on the CUBE, data is the new software. So if you've got a global business, data is critical as the data needs to be acted upon. You got policy, you got regulations, regulatory issues, personal privacy stuff, company policy. As you have this global layer of data, making it available, addressable, across multiple systems is a huge task. What's your view on that? Well, it's an interesting question. Because we think of it in kind of three pillars. We give you visibility, we give you control, and then we give you the agility. So you've got to first off, you've got to have visibility into the data. You need to know what's happening. Like how much did we sell in the Australian subsidiary yesterday? You need to have controls. If you're a CFO, you need to have global financial controls. You may have sold a lot in Australia. You've got to make sure you're not spending too much. How do you manage that? And then ultimately the agility is how do you make a decision on that? And so that's those three things I think all play into it. And how does the consumerization affect, impact, visibility, control, agility? Because as consumers we have this expectation, whether you know in our personal lives we can get anything that we want within a couple of clicks. So when you're talking to a tech, whether it's a young tech company or even not a tech company like candy.com, which is seems like a mixture you and I were talking before of a number of different industries all in one. How has NetSuite evolved to enable that consumer to go from their personal life to being able to interact with ERP and extract the value from it in the ways that they want anywhere, anytime? Let's be honest for a second. ERP kind of got a dirty reputation in the 90s. Nobody loved their ERP implementations. Books have been written on this, right? ERP was like a bad trip to the dentist office in the 90s. And that was sort of the catalyst for our company. But that's not enough just to be in the cloud. You have to make your user experience consumer grade, right? We always talk about enterprise grade. It's all the illities, reliability, scalability, all that kind of stuff. That's sort of a given, like you have to do that. But I think you have to adopt the consumer grade. So we spend a lot of time and we're doing a lot more and we're going to be rolling out some new stuff around user interface and just how easy is it to have a dashboard on your phone so that you can run your business from, you know, your smartphone versus actually having to be tethered to the desktop because we're all mobile, we're all traveling, you're a business owner, you're a CFO, you're a CO, you need to be connected. Maybe you're too connected, maybe that's part of it. Maybe we have screen time problems with business. We definitely do. If we can give our customers screen time addiction to watch their business in real time, I guess that's a good thing, right? And so we want to be able to make sure that they can have all that insight at their fingertips, whether they're in the office or at the beach. And speaking of insight, talk to us about Brainyard, what that is, why you developed it and what it's enabling. Yeah, thank you. That's like my, I was hoping you were going to ask me. It's my secret, but not so secret anymore pet project. So one of the things, being in the cloud, we have 18,000 customers, right? We have a single instance of NetSuite. And so we've had the unique seat at the table to see all these different companies grow in all these different industries. We evolved into selling by industry. So we have a retail version, a software version, a manufacturing nonprofit, 12, 13 different industries. What we had in that is we had all these insights by industry. What is the right DSO number for a software company, right? What is the thing that a nonprofit needs to look at? And so we had trapped inside of NetSuite, all these brains sitting in all this information and PowerPoint and Word docs and just everywhere. And so we decided to crack the hood open and literally open source that information and put it on the website. And so there's a subtle message here, is that we have to do more than just sell bits. We're ultimately selling customer success or business outcome, whatever you want to call it. So we need to transfer that knowledge to our customers so they can run their business better. So it's our investment back into the customer saying, hey, you know what, if you're a software company and your DSO is at this level, best in class is actually five days lower on a day sale outstanding. How do you get your business to close that gap? And that's where we can really add value. It calms, people love comparables and best practices. You're essentially taking that heavy lifting work and just giving it up there. It's benchmarking, it's analysis. I was a former Wall Street analyst, so this one's near and dear to my heart, which is comparison. How is this company doing versus that company? And so we have lots of data that we've gleaned over the years, lots of insights. So we kind of know what those best practices are. This is just the first phase of what we're doing. We're working with a lot of partners across the industry to give us some of their industry data, so we kind of mash it up and come up with the insight. So we'll go ahead and talk. As an analyst, I'd love to get your thoughts real quick. And take the NetSuite hat off, put your industry participant hat on. A lot of Wall Street challenges around WeWork pulled their IPO, their Jeep gross profit was down, other SaaS businesses have huge margins, their successful zooms public. There's a new formula developing in this cloud 2.0 world, software world, where the dynamic between classic software and software economics in the cloud are changing. What's your thoughts on this? And for startups out there and growing companies that are really looking to crack the code, buy at all costs and then monetize, get the margins out. What's your analysis? You know, this is an area that I think a lot of companies raise too much capital, right? And we've been in this very unique environment over the last kind of eight or nine years where I'd argue a lot of startups have been overfunded. And when you have overfunding, you chase growth without any limit on terms of the cost. And what you see is you sort of distort the reality of what's happening in the business. And so I would argue that we've had zero and basically free money in terms of access to capital. And we've lost track of some of the basics that you need to build a profitable, sustainable business. So when I was working on Wall Street, you couldn't go public if you weren't within, say, four quarters of cashflow break-even, right? Those are some of the things that we used to have. You've seen, you know- Is this fundamentals? Yeah, I mean, so what's happening right now, it's just a little bit of, I think it's mean reversion, honestly. I think you're seeing the public markets, if you will, veto some of the frothiness that's been in the private markets. And so this is, I think companies- Some marketplaces do. That's what they, that's their- It's fantastic. It's a self-correcting mechanism, right? I mean, it's just because you marked up your last round when you were private to a good jillion dollars, doesn't mean that the buy side on the pension fund is going to want to pay that. We work, so you can't be high and run a business, you know, as we were saying, you know. People are trying now. God bless them, they're trying. But it's probably not the best practice. I would not recommend it. It's not a good look. Not a good look for Wall Street. It's not a good look. It's really not. It's really not. You get on the Joe Rogan show, they knock yourself out. If you're Elon, you could do it, but you know. He's the only one we're going to let, so. I don't know. I think it's a practice that probably shouldn't be publicly aired too much. Unless you want something to laugh at, and you know what? In this economy, I think we all need that. Jason, thank you for sharing with us what you're doing at NetSuite with Boomi. The insights that you guys are opening up with Brain Yard. So from Brain Yard, let's go back to the other yard that I promised, the baseball yard, your Dodger fan, Giants fan hats off. You guys are there, we are not. So I will say good luck to your team. We appreciate your time. I'm an LA guy. I'll give it to you. All right, it's been a pleasure talking to you. Thank you for your time. Appreciate it, thanks. For John Furrier, I'm Lisa Martin. You're watching theCUBE from Boomi World 19. Thanks for watching.