 Live from the Sands Convention Center, Las Vegas, Nevada. Extracting the signal from the noise. It's theCUBE. Covering AWS re-invent 2015. Now your host, John Furrier. You're watching theCUBE here live in Las Vegas for Amazon re-invent, Amazon web servers. This is theCUBE, SiliconANGLES, Media's flagship program. We go out to the events and extract the signal and noise. I'm John Furrier, the founder of SiliconANGLES. I'm joined by co-host for this segment, Brian Grace Lee. Our big data, I mean, I'm a cloud analyst at wukibon.com, our research team on SiliconANGLES on Exxcus, Hillary Coppolo McAdams, president of New Relic. Welcome to theCUBE. Thank you. It's great to be here. First time on theCUBE. So we're going to go rapid fire. We love New Relic. The founder is a musician, which we love. Love his style. He still codes. Yes. Great story there. He sings. He's creative. He's grown a big business. You guys had great success. Yes. The DevOps movement, really at the beginning, now is mainstream. This show here puts an exclamation point on agility, DevOps. This was a cult six, seven years ago, now mainstream. Yes. How is that affecting your business? What are you guys doing? What's the growth strategy? Where do you guys go from here? Well, that's a great question. I mean, we're hearing it here at the conference. It's all about DevOps, agility, freedom. It's a word that people are using, which I really admire that word, and I think it's appropriate. We're in service to that. You know, Lou founded the company on this concept that we could help developers. What we're calling of the conference builders, what we call internally artisans. These renaissance men and women who are building the new applications of the future, these digital experiences, and we're going to help drive that process. What DevOps really means is simplicity, right? Making it so much simpler, and that's what New Relic stands for. That's why our offerings in the cloud. That's why we've coined this idea of software analytics. So there was a category called application performance monitoring. We think it's a much bigger question than is my software working? We think the bigger question is, is my software working and what does that customer experience actually look like? Yeah, and you guys pioneered that software analysis. I remember I was there at the events when New Relic was small, but back then that was kind of like, viewed as a marketing slogan. But the reality is you guys were actually doing the big data like analytics for developers. Really kind of a unique beach head. How has it grown from there? Because we've seen companies like Splunk for instance, go from doing log file analysis to moving up the stack at the high value, high yield analytics. How is that working for your business? You guys now are moving into that same territory of high yield analytics because the developers are writing the apps. Yes. So how does that translate? So let me, there are two aspects to how that translates. First of all, we're really helping customers of all sizes think about these digital experiences and the measurement and software analytics piece. So while we were known as a developer or SMB company, actually a lot of our growth is coming out of our enterprise segment. So some of the largest companies in the world, most of the media companies use New Relic to really look at those experiences. And the questions that they're asking are things like, who's coming to our website? What kind of content are they interested in? If they're in a SaaS application, what features are really helpful to the customer and what features do they completely ignore? And we're providing answers like that to product managers, to chief digital officers, to executives that frankly it's been a very black box experience prior to this, they haven't had those answers or they've worked really hard to get those answers. Or they see breakthroughs too, that gets their attention. Yes, yes. Okay, so we're going to ask the business question because you've been very successful. You've been the mastermind behind the revenue of New Relic. That's been, it was kind of told to me prior to interviewing you. I'm like, oh, she's going to be, she's been the revenue mastermind. How did you do that? Because it's very difficult to be a pioneer in something and nail the pricing and nail the growth behind it because you're always uncovering new value to customers. Right. And so it's always, if you overcharge, you could lose it. If you undercharge, you're not pricing the value, how did you balance that and how do you look at that in today's world? Yeah, so when we think about our offering, the first thing we think about is frictionless. That's kind of a core principle and it doesn't just apply to pricing, it also applies to the accessibility of the service. So we design the product so that in the first 60 seconds you actually get value out of it. That's really important. Before your wallet is even thinking about opening itself, you're seeing value from New Relic. In addition to that, we want to keep our pricing model as simple as possible so that customers can consume the offering as they need it and feel that they're getting value out of it. So we really think about frictionless, which equates to this idea of simplicity. And as we brought in our solution, so I don't know if you've kept up with New Relic, but two years ago, we were really known for server monitoring and application performance monitoring, but we've built out this platform where we have an analytic solution, we have synthetic solution, we have mobile solutions and browser performance monitoring so you can understand what's going on in the browser. As we've built that out, what we've said to the customer is we have a platform that you can make use of if you'd like to and most of them are opting in to do that. This is the first time that a single provider has given them that level of visibility across what is becoming increasingly a more complex architecture. We heard about it this morning, hybrid architectures. Yeah, and the data is critical on that because you provide value quickly, get a frictionless transaction, get a relationship, provide some value and then the data itself becomes a very key asset there. Mission critical and we give visibility to that data. Yeah, one of the things that's really interesting to me, so we've covered Amazon for a long time. Their insight into what their customers are doing is, it gives them that Andy talks about as a flywheel. Every enterprise we talk to is saying, look, I realize I've got to build new applications, I've got to differentiate on technology. You guys have an incredible amount of insight into not just helping an individual customer but kind of what the industry is doing. How much do you, are you seeing their business leaders come to you going, what are the trends? How can you guys help us beyond just an effort? I mean, are you becoming sort of a business level consultant in this transformation as well? We'd like to think of ourselves that way I don't know if we're always achieving that goal as yet but when I think about the core work we're doing, we're helping every company become a software company whether that was their origin or not. So we do get those questions about how do we think about this? You mentioned DevOps. DevOps is more than just a process, it's also a mindset shift and so we spend a lot of time talking about what that looks like and sharing best practices from other customers. We'll even match make customers to meet up together to share their journey. But at the end of the day, I think what we're trying to do is help customers understand what data can be revealed to them that can help them make better business decisions. You said something so fundamental. Every company is thinking about their brand as it relates to the digital experience and that is really kind of the core trend we see. It's the small ones and it's the largest companies in the world. So talk about the public offering, the IPO, because now you're a public company, you're trading on the higher end of your 52 week high. The market's kind of weird right now, but Pure Software just went public. Jerry Chen from Greylock who was one of the firm invested in Pure Storage and I were talking about a concept called Blitzscaling which is a course that Greylock's teaching at Stanford. How to scale up your organization. And we asked the question, I get the consumer thing. These are all kinds of things that are unique to consumer scaling up that. But the enterprise is harder. How do you go to the next level? And what's your plan at New Relic? Because that's going to be a big issue. You're now public so you have the trading volume, you have now a marketplace that's validating your value. So you got to get the revenues on the board so we see that. But what's your growth strategy? How are you going to take New Relic to the next level? What's your Blitzscaling strategy to scale up even further growth? Okay, well first of all going public was fabulous and I've always been associated with public companies so it feels very comfortable to be in a public company. So we have really two strategies. I should say three. We started globalizing about two years ago so we'll continue to globalize. We do serve markets all over the world which is really interesting and keeps us very attuned to trends. We also focus on three major segments. Developers, the builders, the artisans, small businesses and enterprises. And we actually have separate go to market motions for each of those segments so that we can deliver to them the way they want to be serviced. Yeah, a tailor to them. A tailor to them. Yeah, and they have very different experiences and needs although we will marry them. So separate teams are so separate motions and teams? Yeah, yes. Okay. So a developer really wants to self serve experience. They don't want to talk to a salesperson but they might want to talk to somebody in community or technical support. So we're not going to force a salesperson to talk to a developer. Organic, communal, that's the community. Right, let me make my own decisions which we really respect. And then the third piece is it's really about our product offering. You've seen us brought in our offering. Part of what we did in the year before we went public was we brought new offerings to market and designed this platform. And so as we go out to customers where we really typically start is around an application that's mission critical that there's some initiative in the company that says this is critical for this season or this launch or this reinvention of the company. And we drive to help them deliver that application successfully. And then we're brought back in for a much broader set of strategies. Many of which support the very work that this conference is all about which is moving workloads to the public cloud, embracing hybrid architectures which have become increasingly complex. So if they're spawning all these microservices to provide a personalized experience for customers we're going to support that. If they're launching a mobile application like we saw on stage today we're going to support that. And that's a big part of the growth strategy. Internet of things. Internet of things. Probably sometime in the future no stated direction on that. Maybe tomorrow. Maybe tomorrow. Well here we're hearing some rumors. No, but that's a big thing. So the developer mindset is also key. You guys won that hands down. Well you win that over and over again. You have to keep winning it. So IoT is that a new class of developers because we see high school kids making their own clocks going to school, getting thrown in handcuffs. But there's a whole maker culture out there. Yes, there is. And that's hardware kind of tinkerers. Yes. Who now are going to write software. Do you see that as a new class of developers or a same model? I can't say I've thought about it that much. I mean it's been interesting to talk to people about and certainly we partner with a lot of companies where Internet of Things is a new strategy but I think we're going to watch it evolve. I think the here and now is around the digital, kind of the classic software digital experience and that's keeping us plenty busy. So go ahead. Yeah, we hear all the time, microservices, these new applications, you're going to build them faster, they're going to help your business faster. Do people grasp the concept, whether it's a developer or a line of business that the partners they work with have to be moving at that same time? I mean you guys deliver so much information in real time. Do people grasp that whole ecosystem around them and needs to be really in real time to stay in sync? I think, I mean they're learning that and I think the market will demand that. I think the winners will be the people who deliver their real time experience, cloud scale, cloud speed, I like to call it. Everyone has. What's the aha moment when they realize like this is going to change the business. I mean give us an example of somebody who's just been like we saw some applications, some examples today in the keynote but like what are the examples you use all the time that somebody goes, this application just changed the business. So one example that you stimulated was healthcare.gov. When that application started working, that was the aha moment for New Relic but you're really talking about a company when they have an aha moment. Try to think, most of these are what I would call burst applications. There's some sort of bursting event. They're going out, they might be a media company that has a one time event that has a huge spike and it works just like that. It performs beautifully and it's typically dealing with millions of consumers and it works and that's an aha moment for them. Super Bowl ads and all sorts of things like that. Super Bowl ads, exactly, high risk, high stakes, very branded experience. Those are the big ones. Some of the application experiences specific to what New Relic offers aren't as sexy because it's really about they had up time or there was mitigation of a potential issue. People don't talk about that as much. They don't get as excited publicly about it but they're very excited in themselves. Well they're certainly not excited if it doesn't work because now you have the downside consequence that can be quantified, you're fired, loss of sales. I mean that's going to be the downside of bad operational planning. Yeah, yeah, they don't like to talk about that. The successful launch people will talk about. So anything related to a company launch or a seasonal launch or some, the World Cup or something like that. People get super excited when those applications work. We've been talking all week. I mean there's this constant challenge. Every year we come out here and Andy announces new things and people start to go okay, which companies that affect? We've been saying all week the companies that are focused on the application space are going to do the best here. There's so much less chance of them kind of getting commoditized down at the undifferentiated heavy lifting. You guys are in a great position for that. I mean that's got to feel good that you're that much farther ahead and then you've got this global footprint with Amazon and with everything else to build on top of. Yeah, I agree with you. We feel like at the core of any digital experience is the application and we're poised to help the application developer and the companies deliver amazing experiences. I don't think it's a, I think the analytics piece will get very interesting. I guess what I look at is if I envision this conference in two years will software analytics be the story that people are telling? Real-time, cloud, what kind of data can you get out? That could be very interesting. So the customer environment, let's talk about your customers and there's this notion of any application on any device on any cloud. That certainly sounds like VM where that's Pat Gelsinger's pitch but also that's what customers kind of look at that. I want to see, they don't want to get locked into one cloud, they might want to do Azure, they want to do AWS. You guys have some news here about AWS. We do. There's also other clouds out there. Is there like a stopgap for you guys in terms of how many cloud you support or criteria for levels of cloud you support or is it customer-driven? It's really customer-driven. My feeling is we should just be open to all the public cloud and private cloud providers. And when we think about our whole ecosystem strategy it is based on this idea of open API so that people can connect their data in and New Relic can help visualize that data as it relates to Amazon. We did make a really exciting announcement this week about giving deeper visibility to an EC2 environment and bringing that data into New Relic. And if you're open then you can bring the best solutions to the application developers and to these companies that are trying to deliver them. And I think that'll be the core principle that we will continue to drive forward and forward and forward. So obviously on that note I'll just ask you what do you think about open data? Because this is a concept that people now are, well the pioneers have certainly been involved in open data. You know you guys love open source but the data hoarding mentality of the old world was like I don't want to share my data. Is should data be open? Obviously security can wrap around sensitive data. What's this, what should it take on open data? Do you have a philosophy or opinion on that? I'm not, I don't have a philosophy yet. I mean I believe customer data should be secure. What they open up, I think that's a company brand decision. Yeah, and our platform. And our platform decision. A final question for you. What do you think of the show? For the people who are watching here live and on demand, couldn't make it. Yeah, I think it's fantastic. What's the vibe of the show? What's the big thing here, what's happening? I think it's fantastic. I mean if you look at Amazon they're amazing. What they delivered this morning in terms of what they're doing, who the customers are and where they're going. It's just incredible. If you're not here, I wish you were here. But watch the keynotes and enjoy it. I mean it's a whole brave new world. Okay, so what's next for you guys? Do you have an event coming up? Yeah, we do. What is that event? We'll get a plug for the event. Okay, thank you. So we have our own re-invent. We call it Future Stack. It's about that modern stack. It's in San Francisco November 9th through the 11th. We're going to have every data nerd from around the world there and we're really excited. We have a very similar speaker lineup. In fact, a lot of the speakers that were here at AWS on stage today will be speaking at Future Stack. Wow, that's great company, big names. Big names and Amazon and New Relic have a lot of, AWS and New Relic have a lot of common customers. So you'll see some of the great speakers from today. Any sneak previews you can share on the show? Well Joe today did an awesome job and I think if you look at the Future Stack lineup you'll see that he'll be there. Okay. From MLBAM, I don't know if you remember. I love the MLB demos. Yeah, he's an amazing guy. Totally geeking out on that. All right, great. And the dates again are? November 9th through 11th, San Francisco, California. Last year it was sold out. I remember hearing a good packed house. Standing room only. Yeah, we're expecting the same. Fire Marshalls everywhere like crazy. We're expecting the same this year. Soon, Moscone West, but they got that under construction. Right, Fairmont. Hillary Coplow, McAdams. Thank you for joining us on the Hume Share and your insight. We really appreciate it. Now congratulations on your success and good luck with your growth strategy. We'll be watching you guys and certainly look forward to hearing about Future Stack. This is theCUBE. You're watching SiliconANGLE.tv. It's theCUBE. Go to SiliconANGLE.tv where you'll see our guests of the week every week highlighted in a podcast and we will be at the Grace Hopper celebrations of women in computing in Houston. Big stage there at Dell World, at Oracle Open World. You'll see theCUBE everywhere. Keep watching. Of course, we're live in Amazon, reinvent in Las Vegas. We'll be right back after this short break.