 Live from Las Vegas, it's theCUBE, covering AWS re-invent 2017, presented by AWS, Intel, and our ecosystem of partners. Hey, welcome back, everyone. This is theCUBE live here in Las Vegas for AWS re-invent 2017. I'm John Furrier, the co-host of theCUBE. My co-host Keith Townsend here for our fifth year in a row covering the thunderous growth of Amazon web services as they continue to not only nail the developers and start us, but continue to win the enterprise. Our next guest is Lucerne, who's the founder and CEO of publicly held New Relic. Very successful startup, one of the most admired places to work in the Bay Area. And in tech, Lou, great to have you on theCUBE. Welcome, first time. It's so great to be here. I know, I can't believe it's the first time I've been such a fan for a long time. Now, you're an alumni. And now, here I am. You're going to get all the benefits of being an alumni. All those season tickets to all of our games. I want to just share something with the audience out there. You're the only public CEO that I know that's been on theCUBE that writes software, has a GitHub account, and manages a publicly held company. So that's a unique thing. And I want to just say it's awesome. It's a full plate, that's for sure. But I'm the luckiest guy in the world because I've always loved building software since my first computer. I got on the Christmas of 82. What's that? 35 years ago now. And so what an exciting time to be someone who's passionate about software and technology. Look what's going on in the cloud. And so I've been fortunate enough to start this company that's participating in this revolution in technology. So it's great. You guys are always in the cutting edge. I noticed you guys get your hands dirty. You get in there, you're coding away. But you guys are very successful in a very important area right now, which is instrumentation of data in application. So I really want to get your thoughts on the landscape. We were talking about on our intro analysis that we're seeing a renaissance in software development where with open source growing exponentially, a new software methodology is coming out where there's just so much going on. Multiple databases in one app, IoT. So a new kind of thinking is evolving. What's your take on that? Well I think it's really important to understand why all this is happening. So why are there 40,000 people here in Las Vegas for a reinvent? Why are people consuming the cloud at just a dizzying pace? It's not just for the sake of cloud computing. It's because there's this business imperative to compete on software. So if you look at where software was 15, 20 years ago, software was a tool to reduce cost and automate things in the back end. Now your software is your business. If you are a large global bank, your app has more to do with your customer's experience and satisfaction than the branch because nobody walks into a branch anymore. So now the best software developing bank is going to be the winner. So if you think about that's what's going on and that's why they're adopting new technologies to move faster. So where do we fit in? If you're going to compete on your software and by competing you have to build the best stuff the fastest is possible. So you got to get to market quickly and that means you got to change a lot. Anytime you're changing something rapidly that introduces risk. New Relic de-risks all of that rapid movement by instrumentation, by measuring everything in the software. Those measurements help you move faster with confidence. And also I would say that not only does that create risk, but new software creates risk. So Lambda, I'm doing serverless. I got to, I want to try the new service because it could add value, aka Lambda or whatever. So a new, maybe timeout is needed. So all kinds of new things or elements are going on inside the software stacks. Yes, and more complex than ever before. Right, so you introduce things like Lambda serverless function computing, call it what you will and you integrate it with microservice architecture. And so instead of one monolith you might have hundreds or even some of our customers have thousands of independent services all supposedly supposed to be working in flawless concert in order to deliver a great customer experience. How on earth do you make sense of whether that's all working? Well it involves collecting an enormous amount of data about everything that's going on in real time and then applying intelligence to that data using what we call a new Relic applied intelligence to tell our customers in real time, here's what's working well and more importantly here's what's going to be a problem if you don't take immediate action. And that's a hard problem to solve, we think we're the best at doing it. And that's mission critical too because like you said, if it crashes or there's some sort of breach hole that comes them out there, all this stuff is at risk. And like customers have just incredibly high expectations that only get higher and higher every day. Like you know, one of our customers is Domino's and it's an amazing thing where you pre-order your pizza and you can see second by second how your order is doing, right? They put the pizza in the oven, then they took the pizza out of the oven and I see that on my phone and that gives, that's that feedback that's valuable to me, right? So long as it's working, right? So we, we, we, we brandished this word digital transformation all the time. Oh yeah, it's a little overused. It's a little overused. But melding that physical world with the physical, with, with cold. I love it that you're a developer. First off, what's your favorite language? Oh geez, it really depends on, on the project. I'm really getting into, I love React right now on the front end. I'll still do Java when it needs some heavy lifting. Ruby for rapid prototyping. It really depends on the task at hand. So the value of reducing friction from a developer seeing a problem, needing to solve that problem and getting the resources needed to solve the problem. AWS does a wonderful job of saying, you know what developer, give me your credit card. We'll give you all the tools you need. Yeah. Where is the first thumbling block? Because this is new capability, net new over the past few years. Where's the first set of thumbling blocks when developers reduce friction, get to that first level contact with the, with the, the, the branch manager of the pizza store? Yeah. Where does it fall apart and new relic comes in to help? Look, how many times you ever had a developer or a technical worker say, well, it works on my machine. Right? Exactly. It worked on my laptop. I don't, I don't know why it didn't deploy well in production. It worked perfectly fine on my laptop. I really, I started thinking about and solving this problem 20 years ago now. The notion of less instrument Java bytecode because I was frustrated with the stuff that worked on my laptop. I couldn't understand why it didn't work when a customer used it. And everything prior to the customer using the software is nothing but sunk cost. There is no value in the software you're building until it runs in production. How well it runs in production is what determines the fate of the application. Yeah. And that's where new relic comes in is we feel like, all right, let me take you back to the, the ancient days of like, turn of the century, 2000. Nothing went to production without QA. Yeah. Now nothing goes production without instrumentation. Yeah, but now agile is there. So the old days was a craft. You built a software product, but you didn't know it was going to work until when in the production with QA. Now you're shipping stuff fast. So it's still, you've got that DevLabs mindset, but it's in QA. One of our customers Airbnb deploys more than a thousand times a day. And this is not a small low load site. I mean, like every deploy has to work, otherwise millions of people are impacted. And it's the whole business and it's a big business. So you're talking about a pace of innovation and change that cannot be managed with the traditional QA cycle. I've said, of course, testing is important, but instrumentation is more important than that. Lou, I want to ask you an important question because I asked Andy Jassy this last Monday when I had one on one of them. A lot of people that are entering ecosystem for Amazon is new, that are new or concerned. Like Amazon's the big, they're fearful. It's always going to be that way. He highlighted your company, New Relic, and said, they're an amazing partner that do extremely well, even though they introduced CloudWatch, which because some customers just wanted it, but they don't, they have monitoring, but you guys are so much better. I said that, but it key implied that. Obviously you're doing well. So the successful participation in the ecosystem is there. You can be successful in the Amazon ecosystem. So what's this formula for a new entry coming in or someone who's here that needs to find some white space? How do you read the tea leaves to know where not to play and where to play? You know, it just comes down to the fundamental good thought process you use when you're thinking about approaching your customer too. Don't think about what's in it for me, the Amazon partner. What's in it for Amazon? How do you make them more successful? And so when I imagine myself as Andy, who is like, what an incredible job he's done. But what top line of Andy is, how do I get more customers consuming more of Amazon faster? Right? All of Amazon's web services. And so we solve a problem for Andy and his team. We help our customers consume Amazon faster because we give them the confidence to consume more and move faster. And there's data to prove it. When Amazon asked their customers that aren't yet New Relic customers how much they're consuming and how fast, they get a slower rate of adoption than they do for the cohort that uses New Relic. And so it's in our mutual interest to go to market together because we help the consumer. And so- Build a good product. Build a good product. Build a customer value. Talk about how you help your partner be successful. Let's talk in that language. Don't talk in- All right, so a personal question. So you and I are pretending we're sitting here having a beer, you're playing the guitar, I'm singing some tunes. And Keith's our friend, he says, I'm in trouble, I'm a CIO. I got a transformation project. I don't know what to do. Which cloud do I use? How do I become data-driven? Guys, help me out, Lou, what do you say? I say, first of all, you have an instrumentation strategy. Everything, if you're a CIO in a large organization, you don't have one, two, three, or four projects. You have dozens, if not hundreds, sometimes thousands of applications and services that are all running. And you've got, I haven't met a CIO that doesn't say they've got too many monitoring tools. So you need an instrumentation strategy. Nothing should run in production without instrumentation. That's not just the server-side stuff that runs on EC2. It's also every click that runs, you know, when Dunkin' Donuts, which has been a long-time customer of ours, and they run on the Amazon Cloud, you know, when you pre-order that donut, we track the tap, how long it takes from the phone, all the way through the cloud services, all that's fully instrumented. So if you're a CIO, you say, I can't be tactical with instrumentation. If I'm going to move fast and compete with my software, nothing should run in production without instrumentation. That's right. Foundational. Foundational. It's a core requirement to run in production if you're going to move at any level of speed. So establish that strategy, and then we think we offer the best instrumentation, certainly the best value, the most ubiquitous, the easiest to use, the most comprehensive, and then we make the most sense of it. But you could pick another, you know, you could pick another strategy. Some people do the heavy lifting of manually instrumenting all their code. We just don't think that's a good use of your developer time. So we automatically do that for you, but have a strategy and then execute to it. Awesome. Lou, congratulations on a blowout quarter. I won't even get you to comment. I'll just say that you guys had a great quarter. Stocks on an all-time high. All because you guys doing a great product. Congratulations and great to have you on theCUBE. We're delighted to be here. I've honestly, I've been a long time fan. It means a lot that you could have me on. And we really enjoy partnering with Amazon and what a great show. Super successful ecosystem partner, one of the best New Relic based out of San Francisco here with the founder and CEO. Also musician, writes code, gets down and dirty, runs a publicly held company. He's Superman. Lou, thanks for coming on theCUBE. More live data and action here on theCUBE after this short break. Stay with us.