 Live from San Jose, in the heart of Silicon Valley. It's theCUBE, covering AWS Summit 2016. Welcome back everyone. We are here live. This is theCUBE in Silicon Valley for AWS Summit, Amazon Web Services Summit. This is SiliconANGLE Media's flagship program theCUBE where we go out to the events and extract the signal from the noise. I'm John Furrier with my co-host, Lisa Martin. Our next guest is John Gray, Senior Vice President of Business Development at New Relic and Lee Atchison, cloud architect at New Relic. Guys, welcome to theCUBE. Thank you. Thank you. You guys have a very flamboyant founder. Okay. He was a super awesome guy. He programs, goes on sabbaticals. I think he's got GitHub on the about section where he showcases his GitHub handle, which I was impressive. So New Relic is not a stranger to cloud native. They're not a stranger to big data. You guys have been providing great value. I want to get your take on New Relic vis-a-vis Amazon Web Services, how it all fits. Take a minute to talk about New Relic today. What you guys are all about, certainly public company, great success story, entrepreneurially. But now as you grow, what's your innovation strategy? How are you positioned? Take a minute to explain New Relic. Absolutely. So New Relic is really positioned today to take advantage of those customers that are looking for the best in performance monitoring, but really want to leverage analytics. So what we do is we help anybody looking at an AWS as a company do what I call before, during, and after, and acceleration. So imagine you've got your applications on-premise, you're looking to benchmark those. You want to know that that journey over to an AWS is a safe, transparent journey. And once you've done that, you want to know that you can accelerate safely. New Relic provides you with that transparency to be monitoring those applications, the data in those applications, and that you have a safe, transparent journey. From an AWS perspective, what you're looking for is to migrate your customers as fast and as safely as possible. So this is just a great, perfect relationship in doing that. That was the start of the journey. And then the rest of the journey is taking that data and giving those customers near real-time analytics in terms of driving the KPIs out of that data. So John, just to summarize if I put this together, in the old days, monitoring software is really easy. You had proprietary stacks inside the data center to do some work, but I mean, I won't say trivial, but one dimensional. As you go cross-platform or domain or environment, it's more challenging. So what you guys are doing is providing that, we're app monitoring in different environments with one single pane of glass. Is that, did I get that right? Absolutely, the real power of New Relic is the number of languages that we deliver. So it doesn't matter whether it's PHP, Ruby on Rails, Drupal, you name it, we're out on those languages, and we are cross-platform as well. So it doesn't matter what cloud platform, we can deliver the data for you across each of those platforms. And I'd like to throw in there too, one of the nice things about New Relic is we are a SaaS offering. And that means that whether or not, right, we're nimble, but whether or not you are monitoring your own data center or a new data center or your cloud offering, all of the data is collected in the one source available in one location. You don't have to redeploy your analytic solution every time you move to a new data center or move to a new cloud environment. One of the things that interests me is if, for those who saw the keynote or even those who missed it, one of the things that Dr. Matt would talk about from a trend perspective, from a future of big data is the ability to have a 360 degree view across all the information that's there, across your customer base and to be able to share that analytics power across multiple functions within an organization. Talk to us about how what AWS is doing in that space from a big data standpoint. Is complimentary to what New Relic is providing and delivering? What did you think of first hand and I'll go from there? Well, I think if, just to repeat your question, was related to big data and what is AWS doing with us around big data, is that? It's really about complimentary services for analytics and really getting that customer to be able to have that 360 degree view. How do your services complement AWS? So if you think about the fact that we are, we have an agent deployed within the application and the agent, let's say in this example, is running on AWS, right? So the coupling, if you like, is that we are monitoring for performance of that application so that AWS is running in a premium fashion. On top of that then, you've got the companies who want to run their KPIs, they're running their business. Maybe it's an e-commerce platform and they want to make sure that that e-commerce platform is delivering the KPIs. So as we sit in the data with the agent, we're then able through our analytics platform running on AWS, able to provide those KPIs to those customers who can then get a better insight, better view, better customer experience, better digital experience for their customers. Lee, is there anything? So yeah, now I understand your question. And absolutely, with AWS provides really good capabilities for monitoring the lower level aspects of your applications. You know, the infrastructure, the virtual environment, the virtual servers, provides really good environment for monitoring that. What we do is we go up the value stack. We go into the application and above the application with the business logic. And that's where we provide a value. There's a lot of synergy there in complementary fashions where you're playing together. A lot of synergy in terms of what you're doing from an analytics. And I think it's incredibly important because if you look at the raging storm that is going on, I think Accenture did a report just recently that said that roughly 72% of enterprises today are in some form of hybrid cloud migration. Critically important to that is that as those customers are, you know, let's think about a customer today. He can walk into his data center. He can stroke his server and he has total control. Servers aren't pets anymore. They're cattle as someone tweeted. And then in a service world, they're roaches. Did you see that? I don't know if you saw that awesome tweet, but... That's a good one. That's a good one. I've heard. I don't know if that came from Werner, but it definitely was from the guy from iRobot. So cattle is a great example. So now we're herding that cattle over the bridge and those applications are going and the farmer no longer has the kind of control that they used to have. So now in a service world, they become roaches, which become pests. And Leah, I want to get your thoughts on this because you have an interesting background. You were at Amazon back in the glory days, only five years old when you joined the company, from what it looks like. Now 10 years old, certainly a lot's changed from those basic building blocks. That is Amazon. Absolutely. Yeah, when I started with Amazon, you know, we were still in the monolithic application stage. Amazon had a monolithic application that had all of their traffic or all of their start-up activity. I mean, you guys were challenged too on the monitoring. I remember I was spinning up EC2 at the time and it was evolving in real time. But again, this was the building block approach. Now from then to today, certainly you've expanded some core monitoring, I'm sure. But now you're enabling partners. I'd like to get your take on vis-a-vis the New Relic opportunity you guys are talking about and ultimately the customer's outcome. Their only objective that I hear from them is working workloads. They want to move workloads around and that's not a language dictated policy. This is a workload specific. Workload is driving policy, not the other way around, infrastructure to workload. So where New Relic can help there is we can help you monitor what your workload is doing in your old environment before you migrated, help you with that migration process and use the exact same tools, the exact same integrations and the exact same instrumentation tell you how it's performing in the cloud. So you can see whether the cloud's made it slower, faster, what adjustments you need to make, et cetera. And you actually saw at the keynote today, they actually showed a New Relic chart showing that for one of their customers. And we're very good at being able to show that migration from what it was before the cloud until after the cloud. It worked very well. Along those lines and being able to demonstrate the success, talk to us about some of the differentiators between New Relic and some of your competitors. You want us, do you want me to take that? I'll let you take that. I think absolutely the biggest one is the SaaS environment and that is because we're able to have the single solution that works with all of your offerings. You don't need a separate solution for your on-prem versus your cloud, which is what some of our- That's the seamless nature of it. That's the value. Seamless nature, right, right. The breadth of the offering, as well as the scaling capability. As your application scales, not only is your application doing more, it's generating more analytic data. And if you have an on-prem analytics solution, you have to scale that system as well. That's more for you to worry about. But with New Relic, we handle all that for you and you have no concerns whatsoever. Just like serverless computing within Amazon allows you to scale any amount you want to. Serverless analytics, if you will. With New Relic allows you to scale any amount of analytics and we can make that work. So to grow up scale, I want to bring this up that we talked about before we came on camera was this notion of scaling in the enterprise and cloud native and all the web scalers early days, Netflix, the Facebooks, you know the list goes on and now we know those guys. They could scale, they didn't have a lot of baggage, not a lot of legacy. Right, right. Inherently in the enterprise, the stove pipes or silos or whatever you want to call it, really slow down the horizontal integration which is a premise of your business model and what customers want to go to. So how do you guys advise architects that are sitting in their battle rooms right now, there is no Gartner magic quadrant on how to scale. There is no solution on how to scale. This is a horizontally DevOps equation and they're looking for best practices. So your advice lead to architects out there who are looking at the big picture saying, I got IoT right around the corner. I have it on-prem, single pane of glass and maybe one throat to choke or more but I need seamless migration, workloads moving. How do you talk, what's your advice to architects? The biggest thing I say is the technical hurdles are big but that's not your biggest problem. Your biggest problem is cultural and getting the culture of the company in line with what it takes to work in a skilled environment. That's DevOps, that's cloud computing, that's processes and integration procedures that are different than the way you thought of things in the past. That to have a different mindset as a company for how to work in order to move forward. That's the agile, there's books out there that can go read, there's plenty of manuals on the mindset, certainly CUBE interviews as well. What best practices, what playbook can they implement right now? You get started. Yes, once they do that, then they can start looking systematically at their applications and saying finding the places where they can easily separate things out and split their application up horizontally and as they do that, they'll find they can scale individual pieces earlier and they'll find workloads that can move easily to the cloud, move those pieces a little bit. Lift the apps first, the ones that have tendencies to be horizontal and then pick the low-hanging fruit. And move them to the cloud first and then keep going as you, and sooner or later you'll find, absolutely, you monitor the whole process. Sooner or later you'll run to a place where you have to start considering the point of diminishing returns, right? Is it worth moving these pieces over or not? And that's where your company has to figure out where the right stopping point is. When we actually find a lot of companies move a significant amount of the workload to the cloud, but not all of it. They've seen some presence. Lee, we got to get you on our crowd chat roster as a panelist. We want to bring in a lot of the ex-Amazon former and or early days from, you know, 01, 02, 05, early days. There's some great stories there. John, I got to ask you on the business question for New Relic. Given the ecosystem play that everyone's, the ecosystem play is big. It's for everyone's strategy now. An open source is part of that. I'll say your CEO lose, big on that. What is kind of business deals are you guys doing right now? What is the business model for New Relic? So you have to play in the open source ecosystems. You have an ecosystem play going on, business term for doing ecosystem partnering. Yeah, so I'm excited to be the guy that's leading that effort for New Relic. I have to say I've been there about 12, 18 months and just an outstanding company and great leadership from people like Lou and Hillary. In terms of the ecosystem strategy, what we have done is we've broadened that strategy for the company. So as we, New Relic, have pushed into the enterprise kind of on a similar motion alongside AWS, we've broadened that to include people like the leading MSPs. So there's certainly some leading MSPs in the room here today that use New Relic for that very workload example that we were talking about, taking down apps, putting up apps, moving them around, and they use New Relic for that end to end. So we've put in place new relationships with some of the leading MSPs. We're working very closely with AWS on some of the new leading SI relationships. We may remember it re-invent last year. We had Accenture announced with a dedicated AWS business unit. So we're driving those kinds of relationships. We've got some of the leading digital agencies like Digitas, Sapient Nitro and a few others who are also now partnering up with us. And of course, the relationship with AWS. We're a leading partner with AWS. We've just been nominated into their migrations category of which they pick a handful of leading partners to essentially work with them because one of the big challenges with enterprises is that journey. How do I migrate? I need these other services. I need these other SaaS providers to help me on that journey. Things like security, things like monitoring and those kinds of things. So we're really excited about the AWS relationship. So you guys obviously will be at re-invent this year in a big way, big presence there. So I guess the point in question on that front is, what is the key business driver for you right now? New Relic, is it SLAs? Is it application speed from new application development? Maintaining SLAs? What's the new Relic business driver that's powering your deals? Well, I would say that what drives our deals is the power of our platform. We were just monitoring and as I know that Hillary shed with you last time she met, the power of new Relic is now software analytics. It is taking that data that sits within the application and it is providing value, whether it be customer experience, digital, et cetera. And the problem it solves is what? Just speed, uptime, what's the customer problem? Better intelligence about your business, whether that be a dev ops, I need to know on the workloads, I'm taking these down and I've safely carried them over and I'm standing them up over here. If I look at an MSP, they're looking for value around new Relic of, I need to see that end to end process of workloads up and down. It's multi-fold efficiency. Really you're giving data back in from the app. If it's an e-commerce customer though, their value proposition is very different. The value proposition is I need to see what customers are coming through the front door. I need to see where they are in my e-commerce platform. I need to see how many things have been left in the shopping basket. It's all of those kind of KPIs. So it's really per app. It's given by the app. Absolutely. Your core value is intelligence from the data. Absolutely, absolutely. So Lee, final. I'm going to infrastructure if I could just throw in, one of the things that's happening in AWS now is, your resources are becoming much more dynamic. Rather than building servers and having servers lasting for months, you build your resources that are lasting for minutes or seconds even. And those resources are under the control of your application. And your application is what's central to all of that. So monitoring your application is essential to make sure you can manage your infrastructure. So final question, Lee, I'll give you the final word since you're the Amazon alumni here, AWS alumni, which has now gone into its own big business. We're the first ones to predict the $10 billion thing. And it's very clear to us from the data, we were connecting the dots on, although Jassy was mum, mum was the word with him. He did not reveal any, well, we had to pick it out of him. I want you to take a minute to explain to the folks. Number one question I get, and I'm sure a lot of folks are asking is, explain the phenom that is AWS. Why is it so awesome? Why are people just blown away and scared by it at the same time? Obviously the incumbents are scared of Amazon. The developers have been loving it for a good 10 years, let's say mainstream five years. It really is disrupting the landscape in a huge way. Why? What is it all about? What's the hubbub about? Flexibility. It has allowed you to build applications in such an easy and flexible way to be able to change things quickly and easily. And that gives developers more flexibility than they've ever had before. It gives operations to use more capabilities than they've ever had before, which also scares them as well, by the way. It gives so much flexibility and enables businesses to build things faster and easier. Nothing's ever done that before. Comfort zone, if you want to be successful. So that's the mindset. What's the under the hood secret sauce to AWS? Can you share what the secret sauce is? An absolute scale. The fact that any given customer is such a small fraction of the total environment is what allows them to really absorb any amount of traffic that you bring out and that's really what allows them to be so successful. That's the secret sauce. They couldn't do this at a smaller scale. That's why you have to be somewhere like Amazon to make this work. It's all about scale, mindset, pushing out some, breaking down the silos. John, Lee, thanks so much. Thank you very much. You're inside. We got all the data. We're monitoring AWS Summit here with theCUBE, with New Relic. I'm John Furrier, Lisa Martin. You're watching SiliconANGLE Media's theCUBE. We'll be right back.