 Hey everyone, this is theCUBE's live coverage from Los Angeles of KubeCon and CloudNativeCon North America, 21, Lisa Martin with Dave Nicholson. We're going to be talking with the founder and CEO next of CloudNATIX, Rohit Seth, Rohit, welcome to the program. Thank you very much Lisa, pleasure to meet you. Good to meet you too. Thanks Dave, pleasure to meet you, welcome. So tell the audience about CloudNATIX, what you guys do when you were founded and what was the gap in the market that you saw that said, we need a solution. So, just to start, CloudNATIX was started in 2019 by me. And the reason for starting CloudNATIX was as I was starting to look at the cloud adoption and how enterprises are kind of almost blindly jumping on this cloud bandwagon. I started reading what are the key challenges the market is facing. And it started resonating with what I saw in Google 15 years before. When I joined Google, the first thing I noticed was of course the scale would just overwhelm anyone. But at the same time, how could they are utilized at that scale was the key that I was starting to look for. And over the next couple of months, I did all the scripting and such with my teams and found out that lower teams is the utilization of their computers, servers. And lower utilization means if you're spending a billion dollars, you're basically wasting the major portion of that. And a tech savvy company like Google, that's a state of affair, you can imagine what would be happening in other companies. So in any case, we actually now started, at that time, started working on our technology so that more groups, more business units could share the same machine in an efficient fashion. And that's what led to the invention of containers. Over the next six years, we rolled out containers across the whole Google fleet. The utilization went up at least three times, right? Fast forward 15 years and you start reading $125 billion that's spent on a cloud and $60 billion is a waste. Someone would say $90 billion is a waste. You know what, I don't care whether 60 or 90 billion is a very large number. And if tech savvy company Google couldn't fix it on its own, I bet you it's not easy problem for enterprises to fix it. So I started talking to several executives in the valley about is this problem for real or not? The worst thing that I found was not only they didn't know how bad the problem was, they actually didn't have any means to find out how bad the problem could be, right? One CFO just ran like headless chicken for about two months to figure out, okay, I know I'm spending this much but where is the spend going? So I started kind of treading those waters and I started saying, okay, visibility is the first thing that we need to provide to the end customers saying that listen, it doesn't need to be rocket science for you to figure out how much is your marketing spending, how much of your different business units. So the first line of action is basically give them the visibility that they need to make the educated business decisions about how good or how bad they are doing their operations. Once they have the visibility, the next thing is what to do if there is a waste. There are a thousand different type of VMs on AWS alone. People talk about complexity on multicloud, hybrid cloud and that's all right, but even on a single cloud you have thousand VMs, the heterogeneity of the VMs with dynamic pricing that changes every so often is a killer. And so Rohit, when you talk about driving levels of efficiency, you're not just talking about abstraction versus bare metal utilization. You're talking about even in environments that have used sort of traditional virtualization. Yes, okay, absolutely. I think all clouds run in VMs, but within VMs, sometimes you have containers, sometimes you don't have containers. If you don't have containers there is no way for you to securely have a protagonist and antagonist job running on the same machines. So containers basically came to the world just so that different applications could share the same resources in a meaningful fashion. We are basically extending that landscape to the enterprises so that that utilization benefit exists for everyone. So first sort of business for cloud analytics is basically provide them the visibility on how well or bad they are doing. The second is to give them the recommendation if you are not doing well, what to do about it, to do well. And we can actually slice and dice the data based on what is important for you. Okay, we don't tell you that these are the dimensions that you should be looking at. Of course, we have our recommendations, but we actually want you to figure out, basically do you want to look at your marketing organization or your engineering organization or your product organization to see where they are spending money and you can slice and dice that data accordingly. And we'll give you recommendations for those organizations. But now you have the visibility, now you have the recommendations, but then what, right? If you ask a Kubernetes administrator to go and apply those recommendations, I bet you the moment you have more than five clusters, which is a kind of a very ordinary thing, it'll take at least two hours just to figure out how to go from where you are to be able to log in and to be able to apply those recommendations and then changing back the CI CD pipeline and asking your developers to be cognizant about your resources next time is a month long ordeal. No one follows it. That's why those recommendations falls on deaf ears most of the time. What we do is we give you the choice. You want to apply those recommendations manually, or you can put the whole system on autopilot. In which case, once you have enough confidence in cloud analytics platform, we will actually apply those recommendations for you dynamically on the fly as your workloads are increasing or decreasing in utilization. And where are your customer conversations happening? You mentioned the CFL. You mentioned the billions in cloud waste. Where do you start having these conversations within an organization? Because clearly you mentioned marketing, ops, services. You can give them that visibility across the organization. Who are you talking to within these customers? So we start with mostly the CIOs, CTOs, VP of engineering, but it's very interesting. We say it's a waste, and I think the waste is more of an effect than a cause. The real cause is the complexity. And who is having the complexity is the DevOps and the developers. So in 99% of our customer interactions, we basically start from CIOs and CTOs, but very soon we have these conversations over a week with developers and DevOps leads also sitting in the room saying that, but this is the challenge on why I cannot do this. So what we have done is to address the real cause and waste aspect of cloud computing. We have what we call the management console through which we reduce the complexity of Kubernetes operations themselves. So think about how you can log in to a crashing pod within two minutes rather than two hours. And this is where cloud analytics start differentiating from rest of the competition out there because we provide you not only do this recommendation, do this right sizing of VM here or there, but this is how you structurally fix the issue going forward, right? I'm not going to tell you that your containers are not going to crash loop. Their failures are regular part of distributed systems. How you deal with them, how you debug them and how you get it back up and running is a core integral part of how businesses get run. That's what we provide in cloud analytics platform. A lot of this learning that we have is actually coming from our experience in hyperscalers. We have a chief architect who is also from Google. He was a T.L. of a technology called Borg. And then we have Sonic who was the head of products at Metal Sphere before. So we understand what it takes for an enterprise who's primarily coming from on-prem or even the companies that are starting from cloud to scale in cloud. Often you hear this trillion dollar paradoxes that, hey, you're stupid if you don't start from cloud and you're stupid if you scale at cloud. We are saying that if you're really careful about how you function on cloud, it has a value prop that can actually take you to the web-scaler heights without even blinking twice. Can you share an example of one of your favorite customer stories? Absolutely. Even by industry-only where you've really shown them tremendous value in savings? Absolutely. So a couple of discussions that happened that led like, oh, but we have already spent a team of four people trying to optimize our operations over the last year. And we said, that's fine. You know what? Our onboarding exercise takes only 20 minutes. Right? Let's do the onboarding. In about a week, we will tell you if we could save you any money or not. Put your best devops on this POV, proof of value exercise to see if it actually helped their daily life in terms of operations or not. This particular customer only has 30 clusters. So it's not very small, but it's not very big in terms of what we are seeing in the market. First thing, the maximum benefit or the cost optimization that they could do over the past year using some of the tools and using their own top-class engineering shots were about 7% to 10%. Within a week, we told them 38% without even having those engineers spend more than two hours in that week. We gave them the recommendations. Right? Another two weeks because they did not want to put it on autopilot just because it's a new platform in production. Within the next two hours, they were able to apply, I think at least close to 16 recommendations to their platform to get that 37% improvement in cost. What are some examples of recommendations? Obviously you don't want to reveal too much of the secret sauce behind the scene. But what are some classic recommendations that are made? So some of them could be as low-hanging fluid as, oh, you have not right-sized your VX, right? This is what I call, a lot of companies you would find out, oh, you have not right-sized, but for us, that's the lowest-hanging fluid. You go in and you can tell them that, whether you have right-sized that thing or not. But in Kubernetes, in particular, if you really look at how auto-scaling up and how auto-scaling down happen, and particularly when you get a global federated view of the number of clusters, that's where our secret sources start coming in. That's where we know how to load balance and how to scale vertically or how to scale horizontally within the cluster, right? Those kind of optimization we have not seen anywhere in the market so far. And that's where most of the value prop that our customers are seeing comes out. And it doesn't take too much time. I think within a week we have enough data to say that this service that has thousands of containers could benefit by about this much. And just to kind of give you, I wouldn't be able to go into the specific dollar numbers here, but we are talking in at least a $5 million-ish kind of a range of a spend for this cluster. And think about it, 37% of that, if we could save, that kind of money is a real money. That not only helps you save your bottom line, but at that level, you are actually impacting your top line of the business as well. Sure. That's our value prop that we are going to go in and completely automate. You are not going to look for DevOps that don't exist anymore to hire. One of the key challenges, I'm pretty sure that you must have already heard, 86% of businesses are not able to hire the DevOps that they want to hire. 86%. What happens when you don't have the DevOps that you want to hire? Your existing DevOps want to move as fast, cutting corners sometimes. Not because they don't know anywhere, but just because there's so much pressure to do so much more, they don't scale. When things become brittle, that's when the fragility of the system comes up. And when the demand goes up, that's when the system's break. But you're not prepared for that break just because you have not really done all the things that you would have done if you had all the time that you needed to do the right thing. It sounds like some of the microservices that are in containers that run the convention center here have just crashed. I think so. It's gone. Hopefully the background noise didn't get picked up too much. Yeah. So the time to value the ROI that you're able to deliver to customers is significant. Yes. You talked about that great customer use case. Are there any kind of news or announcements, anything that you want to kind of share here that folks can be like looking forward to? Absolutely. So two things. Even though this is KubeCon and everyone is focused on Kubernetes, Kubernetes is still only about 3% to 5% of enterprise market. We differentiate ourselves by saying that it doesn't matter whether you're running Kubernetes or you're running legacy VMs. We will come on board in your environment without you making a single line of change in less than 20 minutes. And either we give you the value prop in one week or we don't. Right? That's number one. Number two, we have a webinar coming on November 3rd. Please go to cloudnetics.com and subscribe or sign up for that webinar. Sommick and I will be presenting that webinar giving you the value proposition, going through some use cases that we have seen with our customers so far so that we can actually educate the broader audience and let them know about this beautiful platform. I think that my team has built up here. All right, cloudnetics.com Rohit, thank you for joining us, sharing with us what you're doing at CloudNetics, why you founded the company and the tremendous impact and ROI that you're able to give to your customers. We appreciate learning more about the technology. Thank you so much and I really believe that cloud is here for a long, long time. It's a trillion dollar market out there. And if we do it right, I do believe we will accelerate that option of cloud even further than what we have seen so far. Thanks a lot, Lisa. It's been a pleasure to talk to you. Nice to meet you. Thanks a lot, Dave. It's a pleasure. We want to thank you for watching for Dave Nicholson, Lisa Martin. Coming to you live from Los Angeles, we're at KubeCon CloudNativeCon North America 21. Dave and I will be right back with our next guest. Thank you.