 From San Mateo, California. It's theCUBE, covering SnapLogic Innovation Day 2018. Brought to you by SnapLogic. Hey, welcome back everybody. Jeff Frick here with theCUBE. We're in San Mateo, California, right at the crossroads. It's, the building's called the Crossroads, but it's right at the Crossroads of 92 and 101. It's a really interesting intersection over the years as you watch these buildings that are on the corner continue to change names. I always think of Siebel. His first building came up on this corner and we're here to see a good friend, a SnapLogic and their brand new building at Garob Dylan, chairman and CEO, great to see you. Pleasure to be here. So how long have you been in this space? Gosh, it's been about a year, although it feels longer. You know, it's a high growth company. So these are dog years. That's right. And usually you outgrow it before you all move in. The years are short, but the days are long. And it's right next to Rakatan, I have to mention it. We all see it on the world. There's Jersey, so now we know who they are and where they are, exactly. Yeah, no, they're a good outfit, no. So we had an interesting time putting a sign up and then the people who made their sign tools all kind of backstories. Oh, good, good. All right, so give us an update on SnapLogic. You guys are in a great space at a really, really good time. You know, things have been on the roll. As you know, the mission we set out to engage with was to bring together applications and data in the enterprise. We have some of the largest customers in high technology, folks like Qualcomm, Workday, some of the largest customers in pharmaceuticals, folks like AstraZeneca, Bristol-Marsquad, in retail, Denny's, Wendy's, et cetera. And these folks are basically bringing in new cloud applications and moving data into the cloud. And it's really fun to wire that all up for them. And there's more of it every day and now that we have this very strong install base of customers, we're able to get more customers faster. Right, it's a good time. Indeed, it's a great time. And the data is moving into the cloud and the public cloud guys are really making big, bigger plays into the enterprise, Microsoft and Amazon and Google and of course there's IBM and lots of other clubs. But you know, integration's always been such a pain. And you know, I finally figured out what the snap and snap logic means after interviewing you a couple of times, right? But this whole idea of non-developer development and you're taking that into integration which is a really interesting concept enabled by cloud where you can now think of snapping things together versus coding, coding, coding. Cloud and AI, right? So we feel that this problem has grown because of the change in the platform. The compute platform's gone to the cloud, data's going to the cloud. There was a bunch of news the other day about more and more companies moving the analytics into the cloud. And as that's happening, we feel that this approach and the question we ask ourselves when we started this company, we got into building, the born in the cloud platform was, what would Apple do if they were to build an integration product? And the answer was they would make it like the iPhone which is easy to use but very powerful at the same time. And if you can do that, you can bring in a massive population of users who wouldn't have been able to do things like video chat. Like my mom was not able to do video chat and believe me, we tried this in every other thing possible till FaceTime came along. And now she can talk to my daughter and she can do it without help, any assistance from teenage grandchildren on that side. So what we've done with SnapLogic is by bringing in a beautiful, powerful, sleek interface with a lot of capability in how it connects. Snaps together apps and data, we've brought in a whole genre of people who need data in the enterprise so they can serve themselves data. So if your title has analyst in it, you don't have to be programmer analyst. You could be any analyst. You could be a compensation analyst, a commissions analyst, a finance analyst, an HR analyst. All those people can self-serve information, knock down silos and integrate things themselves. It's so interesting because we talk a lot about innovation and digital transformation and then doing thousands of these interviews. I think the answer to innovation is actually pretty simple. You give more people access to the data. You give them more access to the tools to work with the data and then you give them the power to actually do something once they figure something out. And you guys are really right in the middle of that. So before it's kind of democratization of the data, democratization of the tools to work with the data, but in the API economy, you got to be able to stitch the stuff together because it's not just one application. It's not just one data source. You're bringing from lots and lots of different things. And that's really what you guys are taking advantage of this cloud infrastructure, which has everything available. So it's there to connect versus Silo and company one and Silo and company two. So are you seeing it though in terms of people enabling, kind of citizen integrators, if you will, versus citizen developers, yeah? So I'll give you an example. One of our large customers, Adobe Systems right here in San Jose has been amazingly successful flagship account for us. About 800 people at Adobe come to www.snaplogic.com every week to self-serve data. We replaced legacy products like the Go Informatica web methods about four years ago. They first became a customer in 2014. And the usage of those products was limited to Java programmers and SQL programmers. And that was less than 50 people. And imagine that you have about 800 people doing self-service, getting information to do their jobs. Now, Adobe is unique in that it has moved the cloud in a fantastic way or it was unique in 2014. Now everybody's emulating them and the great success that they've had with the cloud economic model, with the cloud IT model. And so this is working in spades. I mean, we have customers who've come on board in Q4. We're just rounded out Q1. And in less than 60, 90 days, every time I look, 50, 100, 200 people from each large company, whether it's a cosmetics company or from a shuttles company, retailers, a food merchandise are coming in and using data. And it's proliferating because the more successful they are, the better they are able to do in their jobs, tell their friends about it sort of thing or next cubicle over if somebody wants to use that too. Right. It's so interesting. Adobe is such a great example because they did transform their business. You used to be a really expensive license. You would try to find your one friend that worked there around Christmas because they think they got two licenses a year they could buy for a grand, like what do you got next or what I could get from you? But they moved to a subscription model and made a big bet. And they bet on the cloud. So now if you're a subscriber, which I am, I can work in my home machine, my work machine, go to machine machine. So it's a really great transformation story. The other piece of it though is just this cloud application space. I mean, there's so many cloud applications that we all work with every day, whether it's Basecamp, Salesforce, Hootsuite. I mean, there's a proliferation of these things. And so they're there, they've got data. So the integration opportunities is unlike anything that was ever there before because there isn't just one cloud. There isn't just one cloud app. There's a lot of them. How do I bring those together to be more productive? So here's stat. The average enterprise has most cloud services or SaaS applications in marketing. On the average, they have 91 marketing applications or SaaS applications. 91. 91 average. 96% of them are not connected together. Right, okay. So that's just one example. Now you go to HR, stock administration, you go into sales, CRM and all the ancillary systems around CRM. And there's this sort of massive to us opportunity of knocking down these silos and making things work together. And you know, you mentioned the API economy and whilst that's true, that all the SaaS applications of APIs, the problem is most companies don't have programmers to hook up those APIs. Right, to connect them. You know, yes, in Silicon Valley we do and maybe in Manhattan they do. But in everywhere else in the world, the self-service model, the model of being able to do it through something that is simple yet powerful. Enterprise grade and simple, beautiful is absolutely the winning formal in our perspective. So the answer is to let these hundred applications bloom but to keep them well-behaved and orchestrated in kind of a federated model where security, having one view of the world, et cetera, is managed by SnapLogic and then various people in departments can bring in a blessed SaaS applications and then snap them in and the input and the way they connect is done through snaps. And we found that to be a real winning model for our customers. So I don't have to have like 18 screens open all with different browsers and different apps. Swivel chair integration is gone. Swivel chair integration is gone. Step and sneaker net, but still not. Step above, but still not. And again, it may make sense and very, very specific, you know, super high speed like Wall Street, high frequency trading and hedge funds, but it is a miniscule minority of the overall problem set that needs to be solved. So it's just a huge opportunity because you just are cleaning it up behind the momentum in the SaaS applications, the momentum of the cloud and the data. Cloud apps, cloud data. And in general, if a customer is not going to the cloud, they're probably not the best for us, right? We, our customers are almost always going towards the cloud, have lots of data and applications on premise. And in that hybrid spot, we have the capability to straddle that kind of architecture in a way that nobody else does because we have a born in the cloud platform that was designed to work in the real world, which is hybrid. So another interesting thing, right? A lot of talk about big data over the years. It's kind of, no, it's just kind of there. But AI and machine learning are artificial intelligence, which should be augmented intelligence and machine learning. And really there's kind of the generics, find an old dead guy and give it a name. But where we're really seeing the values is starting to bubble up in applications. It's not AI generically. It's how are you enabling a more efficient application, a more efficient workflow, more efficient, get your job done using AI. And you guys are starting to incorporate that in your integration frameworks. So we took the approach, Dr. Heal thyself. We're gonna help our customers do better job of having AI be a game changer for them. How do we apply that to ourselves? We heard one of our CIOs, CIO of AstraZeneca, Dave Smolley was handing out as the Amazon Alexa Echo Boxes one Christmas about three years ago. And I'm like, my gosh, that's right. That was the Walt Mossberg sadness farewell column. IT is going to be everywhere and invisible at the same time, right? It'll be in the wall, so to speak. So we applied AI starting about two years ago, actually now three, because we shipped IRIS a year ago. The artificial intelligence capability inside SnapLogic has been shipping for over 12 months. Fantastic usage. But we applied to ourselves the challenge about three years ago to use AI based on our born in the cloud platform on the metadata that we have about what people are doing and in a sense, apply Google autocomplete into enterprise connectivity problems. And it's been amazing. The AI, as you start to snap things together, as you put one or two snaps and you start to look for the third, it starts to get 98.7% accurate in predicting how to connect SaaS applications together. That's like, it's not quite autonomous integration yet, but you can see where we're going with this. So it's starting to do so much value add that most of our customers leave it on. Even the seasoned professionals who are proficient and running a center of excellence using SnapLogic, even those people choose to have some of this AI on all the time helping them. And that engagement comes from the value that they're getting as they do these things, they make less mistakes, all the choices are readily at hand, and that's happening. So that's one piece of it. Sorry, let me illustrate one other thing. Napoleon famously said, an army marches on the stomach. AI marches on data. So what we've found is the more data we've had and more customers that we've had, we move about a trillion documents for our customers worldwide in the past 30 days. That is up from 10 million documents in 30 days, two years ago. That's more customers and more usage. So in other words, they're succeeding. What we've found as we've enriched our AI with data has gotten better and better. Now we're getting involved with customers projects where they need to support data scientists, data engineering work for machine learning and that self-service iterative model is letting someone who's trying to solve a problem of when is my Uber gonna show up, so to speak, in industry X. These kinds of hard AI problems that are predictive, that are forward-changing in a sense, those kind of problems are being solved by Richard Data and many of them, the projects that we're now involved in are moving data into the cloud for Data Lake to then support AI machine learning efforts for our customers. So you jumped a little bit. I wanna pop on your first point. Which is that you're in the very fortunate position because you have all the data flow. You have the trillion documents that are changing hands every month. Born in the cloud platform. So you got it, right? You got the data. It's a virtuous cycle. It's a virtuous cycle. Some people call it data capitalism. I quibble with that. We're not sort of mining and selling people's personal data to anybody. But this is where our enterprise customers are so pleased to work with us because if we can increase productivity, if we can take the time to solution, the time to integration forward by 10 times, we can improve the speed. They buy SaaS application and it gets into production 10 times faster. That is such a good trade for them and for everyone else. Right, right, yeah. And it feeds on itself. It's a virtuous cycle. And in a Marketo to Salesforce integration, it's not that unique from company A to company B. I bet just somebody in this building is doing it on a different floor right now. Exactly. Right, so I think that's such an interesting thing. And the other piece that I like is how, again, I like your kind of Apple now, is the Snap Packs, right? So because we live in a world with, even though there's 91 on average, there's a number of really dominant SaaS applications that most people use. You can really build a group of Snaps, I'm going to snap the right, is that the right word? That's the right word, yeah. Snaps. In a Snap Pack, around the specific applications, then have your AI powered by these trillion dollars or trillion transactions that you have going through the machines really puts you in a unique position, I think. It does, you know, and we're very fortunate to have the kind of customer support we've had and the sort of customer advisory board, big usages of our products in which we've added so much value to our customers that they've started collaborating with us in a sense and are passing to us wonderful ideas about how to apply this, including AI. Right. And we're not done yet. You know, we have a vision, right, in the future towards an autonomous integration. You should be able to say to Snap Logic, Iris, connect my company. And it should. Right. And you should know what the SaaS apps are by looking at your firewall. And if your people are doing things, building pipelines, connecting your on-premise legacy applications, kind of knows what they are. So that day, when you should be able to, in a sense, have a bot of some type powered by all this technology in a thoughtful manner, is not that far. It's closer at hand than people might realize. Which is crazy science fiction compared to. I mean, integration is always the nightmare right back in the day. It is. Like the integration, integration. On the other hand, it is started to have contours that are well-defined. To your point, there are certain snaps that are used more. There are certain problems that are solved quite often. The quote-to-cash problem is as old as enterprise software. Right. You do a quote in the CRM system. Your cash is in the financial system. How does that all work together? Right. So these sort of problems, in a sense, are what McKinsey and others are starting to call robotic process automations. Right. You know, in the industrial age, people stopped with the industrial age and the hand-crafted widget, nuts and bolts and fasteners, started being made on machines. You could stamp them out. You could have power-driven turbines and et cetera, et cetera, to make things in an industrial manner. And our feeling is some of the knowledge tasks that feel like widget manufacture, like you're doing them over and over again, or robotics, so to speak, should be automated. And integration, I think, is ripe as one of those things. And using the value of integration, our customers can automate a bunch of other repeatable tasks like quote-to-cash. It's interesting, just when you say autonomous, I can't help but think of autonomous vehicles, which are all the rage, and also in the news. And people will say, well, I like to drive. Well, of course, we all like to drive on Sunday down to the beach, but we don't like to sit in traffic on the way to work. That's not driving. That's sitting in traffic on the way to work. So getting down the 101 to your exit and off again is really not that complicated in terms of what you're trying to accomplish to set yourself up. And there are times you don't want to. I mean, one of the most pleasant headlines, most of the news is just full of bad stuff. So-and-so, and such-and-such. But one of the very pleasing headlines I saw the other day in the newspaper was, you know what's down a lot? Not barrier housing prices, but you know what's down a lot? DUI arrests have plummeted because of the benefits of Lyft and Uber. More and more people are saying, you know, I don't have to call a black cab. I don't need to spend a couple hundred bucks to get home. I'm just gonna go Lyft or a Uber. So the benefits of some of these are starting to appear as in plummeting DUIs, plummeting fatalities from people driving while inebriated, plunging into, you know, the car or sidewalk. Right, right. So, yes. Amara's Law, who never gets enough credit. I did, I did every interview, right? We overestimate in the short-term and we underestimate in the long-term the effects of these technologies because we get them up, the Gartner stole it, it's the hype cycle, but really Amara nailed it. And then over time, really significant changes start to take place. Indeed, and we're seeing them now. All right, well, Grav, great to get an update from you in a beautiful facility here. Thanks for coming to us. Thank you, thank you. A pleasure to be here. All right. Great to see you as well. Please, Grav, I'm Jeff. You're watching theCUBE from SnapLogix headquarters. Thanks for watching.