 Live from San Francisco, it's theCUBE. Covering AWS Summit 2017, brought to you by Amazon Web Services. Hi, welcome back to theCUBE live in San Francisco at the AWS Summit here. I'm Lisa Martin joined by my co-host Jeff Frick. Our next guest is from Sumo Logic. We have the VP of product marketing, Colleen Ramanathan, welcome to theCUBE. Thank you very much. We're excited to be here. Very excited to have you here. So tell us a little bit about what Sumo Logic is doing with AWS and machine data. What services are you delivering? Who's your target audience? All that good stuff. Yeah, absolutely. We are a cloud native, IE SaaS based machine data analytics platform. And what we do is to help our customers manage the operations and security of their machine critical applications. Right, so we are an entirely AWS based customer. We've been using AWS since our inception. When what we do is to provide machine data and machine learning so that our customers can manage the performance of their applications. So what is machine data? You might ask. So machine data typically includes logs, metrics, events, anything that your application is generating when it is running, when it is serving, the enterprise's customers. And what Sumo Logic excels at is to ingest this data. We collect and ingest this data and then we apply a lot of analytics on that data. We have some patented machine learning technologies that helps us correlate this data, get insights from this data. And then using this data, our customers manage the applications that they're providing to their end customers. It is not just their applications that are co-located at AWS with your application. It's beyond that, I assume. Absolutely, I mean, we have customers from very different walks of life. We have customers who are on-prem, customers who are down the hybrid path and moving to AWS and customers who are born in AWS. You know, I can rattle off a few great names. Pinterest, Twitter, Airbnb are examples of customers who are born in the cloud. They are born on AWS from the very get-go and they use us today to manage the security and performance of their applications. We have other customers who have migrated to AWS, Scripps Network, the guys behind HDTV. It's a great example of a customer who was running applications in their on-prem data center and then one day decided that they are a content company and they don't want to be running their own data center. And so they wanted to move their applications to the cloud and they used Sumo Logic to help migrate their applications to AWS. What are some of the barriers that you help customers overcome when it comes to maybe that daunting task of migrating services? Yeah, I mean, it's a great question. You know, the first thing that someone has to do before they start to migrate their applications to the cloud is to understand what is it that they have within the data centers, right? If I don't know what I have, how do I even migrate that to the cloud? So the first task is obviously providing visibility into what is within their data center and that's where Sumo Logic comes in, right? If you deploy Sumo Logic and if you implement Sumo Logic as a SaaS service, the first thing that we do is to provide you complete visibility into your application. All the application components, the infrastructures that the application is deployed on, the services that the application may be using. The next thing that you want to do is start to migrate your workloads to the cloud. But you want to do this in a very thoughtful way and what that means is that you start to move your applications and your infrastructure to AWS, but then you do this cut-over to AWS only when you are convinced about the performance as well as the security of that application in this new environment. So the ability to baseline what you have in your current environment and then compare it to what it might look like in this new environment within AWS is extremely critical and what Sumo Logic help scripts network do is to essentially compare and contrast how they are performing in this new environment. And when they were extremely comfortable that their security and their performance was no less in this new environment compared to what they were doing in the data center, they were able to flip that switch and completely move over to AWS. You guys are an interesting position because you're born in AWS essentially, cloud native, and you have a lot of customers that are running in AWS. And so you guys did a survey, a report really kind of taking a look at what's actually happening with cloud native companies running their apps in AWS. I wonder if you can kind of give us what did you guys find in this thing? Yeah, absolutely Jeff. I mean, and this is the report that we put out towards the end of last year, I think is one of the first thought leadership reports that gives people in AWS a bird's eye view into how are their peers deploying, architecting and managing their applications within the AWS environment. So how did we put this report together? We Sumo Logic has over 1200 customers under management today and more than 80% of our customers are using AWS today or they are implementing their applications within AWS. So what we did was to anonymously mine data from our customers and publish a report that provides the set of best practices and the commonly used techniques and architectures that the leaders are doing and implementing today as they move to AWS. Now, there were some great learnings that we found out as we put this report together. First and foremost, we discovered that the stack that a customer typically typically deploys in AWS is very unlike the stack that they deploy within their on-premise data center. So how does that work out? I mean, so many of the AWS customers that we mined here happen to use Docker extensively within the AWS environment. In fact, 18% of our customers, this was last year, already are using Docker for the production application, which is pretty amazing given that Docker is just two or three years. Hopefully Solomon and Ben are watching. We actually have another crew with Docker calling. Absolutely, yeah, I mean. I'd love to report that back. Docker is all the rage, without a doubt. And we are seeing an increased adoption of Docker across the board amongst all of our AWS customers. The other thing that we found very interesting was that the applications that you may typically expect to see in your data center are not quite doing that well in the AWS world. I'll give you a good example. In the database world, you would expect to see Oracle and SQL Server ruling the rules within a typical data center today. You go to AWS, that's not the case at all. The no SQL databases are the leading vendors of databases within the AWS world. MongoDB, Redis, are well ahead of Oracle and SQL Server when it comes to AWS. When it comes to web server technologies, Nginx and Apache are well ahead of IIS, which happens to be the web server of choice within the data center world. Now we've also seen pretty amazing adoption of Lambda technologies within AWS. I mean, that's to be expected a certain bit because I know AWS is definitely pushing it. But again, 12% usage within a production environment, one year into Lambda GA in some sense is a pretty astonishing number. What was your takeaway? Was it because of the applications that are deployed? Is it because of the historical legacy of what Amazon offered for an on-prem versus an on-prem early business decisions? Not so much today, but years ago when there was a security in public cloud, it was a very different conversation three years ago. What were some of your takeaways as to the why? I mean, the takeaways that I think, there's a meta takeaway here, and let me start with that. The meta takeaway is that, as people are building applications in AWS, native AWS applications, or as they are migrating their applications from an on-prem data center to let's say AWS, this is giving IT architects the opportunity to rethink how their applications are constructed. You know, they are no longer bound by the old shackles of, if I have to use a database, it's Oracle or SQL Server. If I have to use a IIS, a web server, it's IIS or some other options. Once you're unchained from these shackles, you have the ability now to rethink and re-architect your application from scratch to target and to focus on this amazing new world that the cloud offers. So that's a big meta takeaway for us, and what we have learned is that once you're unbound, you can come up with new technologies and new ways of doing things that are better adopted and better suitable for this new space, so that's one. The second thing that we do see, obviously, is that the vendors of yesterday are not yet focused on the cloud technologies. It may be heresy to say this, but Oracle has not found the cloud religion until very recently, and that's why you see Oracle as not doing a lot or not making a dent in cloud places or in cloud technologies like AWS. It's just interesting the procurement angle because there's anyone who's ever been at a relatively small company trying to sell into a big company. One of the biggest hurdles is actually just getting on the procurement list, becoming an approved vendor. So it's interesting to think about that from the other side as a consumer that if now you are unshackled from the approved vendor list and you, because now the only approved vendor is Amazon, and now you have this whole breadth of things to choose from within that ecosystem, how that can really impact your behavior and what you actually buy, build, and deliver. Yeah, I mean, I think that's a great point too. I mean, there are economics involved here. There is the friction of adopting certain technologies like AWS, which also makes it a little harder to adopt some of your more traditional software applications in the AWS world. Now, that's why AWS obviously has come up with the notion of a marketplace and SumoLogic, we face the same challenges when we are signing up customers. We have some big name customers who, if we have to sell into those customers, we have to get into their procurement list. We have to go through a few rigmaroles to even get into that list. That's where getting into the AWS marketplace has really helped us a lot. Now you have one vendor, you have one relationship, you have one payment terms, and that vendor is already in your approved list and so hey, SumoLogic comes along with the right. So definitely a simplification there, which was one of the themes in the keynote this morning as well as this unshackling. What are your objectives for the report? Are you going to be either going back to some of your existing customers or to new customers to show them all of these best practices that you've developed? Yeah, I mean, I think our goal of this report, obviously, first and foremost, is to make this an annual report. We plan to do this every year right around re-invent. And what we want to do is to provide our community who are mostly AWS shops today. We do have a few Microsoft Azure customers and we are starting to see some Google Cloud platform customers too. But what we want to do is become the thought leader who not only serves these customers but also provides them a roadmap in terms of, how should they be adopting these cloud technologies? What are their leading edge peers like the Twitters and the Airbnb's and the Pinterest of the world starting to do, obviously in an animized way. We don't want to be calling out any of our customers by name, but here's how you need to think about architecting your applications in the cloud. There is an opportunity, as we said, to break open from the chains of the past, redo this. And we want to help our customers redo this well. So I'd love to get your perspective. One of the, I think we're past the security and some of those kind of historic impediments to you will to public cloud adoption. But one of the ones that still comes up all the time is the rent versus buy. And I think it goes back to the test dev roots of yes, it's great to rent for a while, but at some point in time when you hit some scale, the business model flips and now it's more economical to buy and operate your own. But what we see in the slide that Werner showed today, there's plenty of customers. Netflix, of course, always being the flagship that are giant and must have a giant AWS bill every month who have chosen to still leverage them as their IT platform and not flip the switch to a purchase. So kind of either from the survey or anecdotally with your own customers and you as a company, what impacts that decision? And do you have like this review every couple of years when those CFO, ah, we're paying these guys a lot of money, should we build our own stuff? But clearly you haven't gone that route. I mean, there are definitely enterprises who are still on-prem today. I think the last start that I heard from Gartner is that 20% of enterprises have flipped over to public cloud infrastructure. You know, 80% are still running things in the cloud, you know, within the data center, maybe a private cloud or maybe, you know, in the traditional old ways of running applications. But that tide is definitely turning. And what we see from many of our customers is is that there are many reasons for customers to, or enterprises to now start adopting public cloud. You know, economics is obviously one. I mean, there is a big advantage of going from CAPEX to OPEX. It obviously makes a lot of sense to do that. The second thing is that, what we see is that the, it's not just about moving the application to the cloud. It's also having the right tooling around the application that can now allow you to manage that application, manage the performance of that application, the security of that application, the deployment of that application in the public cloud environment. And that has taken a while to mature. And I think we are already there. I mean, in an event like this, you can see so many companies come up with new innovative ways of managing applications within the public cloud environment. And I think we are there now. I mean, that the pendulum has swung and we have enough technologies now to do this with a very high level of confidence. The third thing I would say, and you know, we keep this here and this from our customers again and again. And you know, I bought up Scripps as a great example. You know, we just did a public webinar with a company called Hootsuite. And they are a social media management platform company. And one of the comments from the Hootsuite VP of operations was very telling. He said, look, I can do this. I can run my own stuff. But do I really want to do it? I am a social media company. I want to provide the best application to my customers. I'm not in the business of running a management technology on-prem or, you know, even for that matter, you know, within the four walls of the company itself. What I want to do is focus on where I can deliver the best value to my customer. And that is by delivering a great social media application. And I want to let the infrastructure game, the management game, to the experts, right? So. Focusing on their core competencies to really drive our business. I mean, I think we're definitely starting to see that. There are certain verticals that have adopted this, you know, wholeheartedly. Retail is a good one. Media is a good one. There are also cost pressures in those verticals that are forcing them to adopt this at a much faster pace. Financial is kind of kicking and screaming, but they're also getting on board. Right. But definitely, from a thematic perspective, you talk about maturation, maturation of the services. Why? Maturation of the technologies and maturation of the user. So we want to thank you so much for stopping by theCUBE. Great to have you here. Thank you very much. This has been a great conversation with you guys and it's a great, great event. Excellent. Well, for my co-host, Jeff Frick, I'm Lisa Martin. You're watching us on theCUBE live in San Francisco at the AWS Summit. Stick around, we'll be right back.