 Live from Las Vegas, Nevada, it's theCUBE. Covering EMC World 2015. Brought to you by EMC, Brocade and VCE. Okay, welcome back everyone. You are watching theCUBE live at EMC World 2015. This is theCUBE, our flagship program we're out for the event. And I'm John Vermeckos, Dave Vellante. This is our sixth year doing theCUBE and we're excited when we started in 2010. We started in the offices of Cloudera when they had like 17 employees and are excited to have our guest here. Founder of Cloudera, one of the co-founders of Cloudera, Mike Olson, who's now running strategy on the board. Mike, welcome back to theCUBE. Great to see you. Long way since 2010. Always a pleasure gentlemen. You've come a long way yourselves but it's great to see you at EMC World this year. Look at the sport and the tie which is great, business crowd here at EMC. In the middle, a little dressed down, John. We're not going to hold that against you. My policy is no tie in California. Being from the East Coast, don't like to wear the ties. But Mike, give us the update. World win, I mean, total transformation, Cloudera, great billion dollar value over billions of dollars of value in the company you created with the team. I mean, completely transformed. Relationship with Intel's booming. Give us the update. I mean, where are you guys now? What's stratosphere? Are you in? Well, as you say, we get to know you guys very early. We hosted you as one of the Cloudera Labs teams at Cloudera in the early days in Palo Alto. You knew then that we believed then that big data's going to be a big deal, right? That story has absolutely come true. As you note, significant strategic partnership with Intel. It's just about a year ago right now. That valued the business at four billion billion dollars. We are the second open source company in history to crack 100 million in revenues. We announced that in February this year. Growth is absolutely fantastic. Look, I'll say, I'm very pleased. I'm very confident in our strategy and our execution. And then in addition, big data is genuinely transforming the industry and it's creating an enormous opportunity for everyone, us, our tremendous partner, EMC, and the rest of the industry. Yeah, and you know, when we were there in your Cloudera Labs, you know, we met Danny Ryan and we founded CrowdChat and we were struggling at SiliconANGLE with this whole media. We tracked the data, schemas. It was a real crossover early adopter database transformation where non-SQL database or unstructured data was at the beginning of that point. Now, certainly a lot of innovation. Now it's going mainstream. So what's the disruptive enabler now with the unstructured data? Obviously, Internet of Things, Internet of Everything, from a Cisco perspective. Where is it now? Because certainly us and all the folks that were riding that Cloudera Hadoop train transformed and are creating value. What's the mainstream enterprise going through right now? Well, you know, a couple things. As you know, the ability to ingest, store, process, analyze, absolutely any kind of data was transformative. We never had a chance before to look at video, documents, audio, social media data, and then, by the way, traditional transactions and user data in one place. An enterprise data hub built on Apache Hadoop absolutely lets you do that. The ability to scale traditional data to much larger volumes than ever before, to hundreds of terabytes, to keep not just a quarter's worth of transactional data, but a decade's worth online and available for analysis. Big, big deal. The biggest transform, I think, that we've seen in the last couple of years is the emergence of interactive and real-time analytics. You guys were with us when we announced our embrace of Apache Spark. The rest of the industry has absolutely followed our lead on that. We're seeing super interesting new ingest technologies. We've had our open source project, Scoop and Flume for a while, Kafka, out of LinkedIn, now backed by Confluent, is a major new addition there. So what we're seeing is not just the old batch mode, you know, original Yahoo Facebook Google-style workloads, but interactive speed, real-time analytics, running over data, doing fraud, machine learning, recognizing money laundering and financial transactions, building good security infrastructure for digital enterprise. I don't think you can overstate the importance of real-time. In fact, EMC's got this survey on information generation and they're asking, I think, a lot of old-line companies what's important. Real-time's up there, but it's not the most important. Real-time is, the real information generation that wants real-time. I wanted to ask you a question about the marketplace. We've sized the market, as you know, we look at it every year, and it's notable to us that services is such a predominant piece of the market, you know, 40-plus percent. And we're looking at that, you talk about scale, and we came to the conclusion that something's got to give. There's cognitive dissonance here that services cannot dominate the business. So we just put out a new forecast this past week, saying software is ultimately going to eat the world, you know, as Andreessen says, we expect that software and services maybe not flip, but software as a percentage of the opportunity pie is going to catch up to services over the next, let's say by the end of the decade, maybe into the early 2020s. Do you buy that? I mean, I'm sure you do, software company. Why haven't we seen it so far? Maybe because it's all out of open source, but do you think we're nuts with that scenario? No, I think you're absolutely right. And look, I mean, I'm on record already. I think that pure play open source businesses that dominate their revenue streams with services are long-term doomed, right? The issue is that very big vendors can step in and use their proprietary software and their scale at delivering services and push prices down so that if you don't have a defensible strategy around software, you're in trouble. Already, our services mix is much better than the industry average that you described. Now, we didn't disclose exact numbers, but we did disclose right around two thirds of our revenue stream was software subscriptions when we announced that $100 million number. The balance that one third is a mix of consulting and training. We are seeing an increasing fraction of our services delivery handled by partners, Accenture, Capgemini, and then a bunch of smaller specialists. Those guys are absolutely great at what they do. This platform is taking off now for real though, because it's not just consultants that come in and build on it. You can go buy apps. In the three o'clock session I'm doing with Doug Cutting and Ryan Peterson here, we're going to be talking to Cerner and to Capital One and to Digital Globe about what they're doing. We'll have VAE systems demonstrate the application you can buy from them that does mobile data analytics running on a big data platform. That's what's really going to accelerate adoption. You can just go get apps and solutions to solve a business problem. You don't need to customize it. So I got to ask you, obviously, it makes sense. What you're basically saying, which is entrepreneurial talk of use services to prime the pump, get them platform out there and then let people take over, right? That's a good software business model. So, but I got to ask you, back in, I think 2011 at New York, you guys talked about big data apps were coming. And it kind of took a little slower and transformed. Talk about where you saw that evolution. Did you see it take slower? What was the shift? Was there technology adoption? Was it services driving it? Was there some priming the pump? Because we thought in 2011, there'll be a tsunami of apps. And did it just wait? Was there more meturization? What's your take on that? You know, I would say what happened in 2011, 2012, 2013 was we really did see a suite of tools companies emerge, right? So, data mirror's been in the industry for a very long time. I would think Paxata, TriFacta, NowTamer, take a look at Zoom data. A bunch of people, oh, and by the way, Tableau, a fantastic visualization interactivity tool. A bunch of tools aimed at business users to let them explore their data. That application layer absolutely happened and absolutely eased adoption. Clicks, another one, I mean it started to explode. As well, yeah. What we hadn't seen happen so far and what we really are seeing happen now is full stack analytic solutions built on the platform. And I think that's a perfectly natural maturation of the market. Think about how long from the middle 80s until we saw the emergence of ERP and financial applications running on relational database systems, right? That took a good decade to happen. So, I would say Hadoop is running a bit faster. Me personally, yeah. I would love to see that go even more quickly. But we really are seeing those solutions that would drive adoption. Again, I brought the question because I wanted to get your take on it because I think I agree, that's a platform evolution, everything. You get the tooling layer and then now more apps will flow on top of it. I want to get your take on the next level of platforms. There's a lot of companies out there that are siloing out their data. You look at the social networks, Facebook, LinkedIn, Twitter. Twitter's struggling to monetize right now. And I'm bullish on Twitter, I'm on the record on that. But as data becomes so instrumental, do you see a fragmentation and do you see the platform wars in the bigger picture impacting the enterprise and the market, or is that just an evolutionary evolution of their platforms? Well, we don't see large swaths of traditional systems getting powered down as a result of the emergence of this new enterprise data hub capability. People are running data warehouses, document management systems to solve particular business problems and they're really good at it. Our customers are standing up this new platform in order to ingest and share data from many different sources, including those existing legacy systems. They're doing new analytics and new processing at much larger scale and more cheaply. But they're integrating with their existing systems. And that's why we talk about an enterprise data hub. It connects to the systems that are running today. I absolutely think that trend continues for several years yet. Those systems are very valuable, right? But again, if you have a chance to come to the three o'clock session today, you'll get to hear how in practice, this new complimentary capability is delivering data value that wasn't available before. We don't delete data nearly as much as we used to because we can simply score. And the practitioners we talk to say, well, we need the data warehouse and we need ETL. But we're not going to keep pouring money down there when we have this new thing, when we can invest it and grow. You see that? So look, there's some overlap among traditional platforms and what the new platform does. But we're not monetizing the, we're not after the opportunity to drive cost out of the data center, right? That's absolutely happening. We could do way more than before. We don't take on the high-end analytic workloads, the OLAP workloads, for example, that your traditional data warehouse runs. We don't see people migrating their transactional applications to this platform. So they're still running traditional databases for that. Where there's overlap in the middle, customers are choosing for business or for organizational reasons, which platform they'll use. But they're bringing us in to do analyses, to run applications that couldn't have been run before, to monetize the data drive top line. Now, I got to ask you what you're doing here. So we live in a really crazy world, right? You're here at EMC, EMC world, obviously. You got Pivotal launching ODP. You've been very outspoken about ODP and the lack of a need for that. So what's the relationship with EMC? And maybe you can help clarify your stance on ODP. We've had a fantastic relationship with EMC for quite some time now. The EMC Isilon Data Lake is now a full-fledged alternative for native HDFS storage of data in a Cloudera Enterprise data hub. So enterprises that have made a big bet on Isilon for manageability, simplicity, for cost or organizational reasons, can suddenly process, analyze that data at scale using Cloudera infrastructure. We're super bullish long-term on this relationship and we see it expanding into other parts of the storage ecosystem. EMC is a very large business and they've got relationships with other players in the market. As, by the way, do we. So no harm, no foul. You have to be agnostic there as a software company, right? Well, I would tell you though that we're not agnostic, right? We're deeply committed to this relationship. We've got overlapping relationships with other companies, but we're absolutely investing in expanding opportunity for both of us. And what about Isilon just real quick? Is it the scale out nature of the platform? Yeah, and the outstanding job that the EMC engineering team did in basically building a wire protocol identical to HDFS, it made it very, very simple to drop in. So there are huge data lakes out there already with an enormous amount of data on Isilon that was available, but that you couldn't use, for example, next generation streaming analytics that you couldn't run, map producer, processing, transform jobs on. And now you can do that because we've done the integration with EMC. All right, we're getting the hook here, but I got to ask you one final question. How do you feel when you hear people say we're entering the cloud era? I think we're entering the cloud era. Cloud era is the cloud era. Good name. I'll see you guys at Great Vision. Great to know you, great to be friends. You guys are amazing. Been a great run. Congratulations on all your success. And again, disrupting the world. You guys have done a great job and continue to the next level. John, Dave, thank you for the opportunity. Good to see you both again. Okay, thanks for watching. Remember, go to SiliconANGLE.tv. There are two channels of live cube coverage right now. So choose your channel, double barrel shotgun of signal from the noise. We'll be right back after this short break.