 It's theCUBE, covering AWS Summit New York 2018. Brought to you by Amazon Web Services and its ecosystem partners. Hey, welcome back, everyone. This is theCUBE's live coverage here in New York City with Amazon Web Services, AWS Summit 2018. And we're here with Jeff Frick. I'm John Furrier, our next guest. It's here, I'm the Senior Vice President at MongoDB for the cloud products. Mongo has been very successful. Everyone knows it in the developer community. You've done anything building Agile. Mongo's been there. Great to have you on. Thanks for coming on. Thanks, guys. So Mongo's been one of those success stories where if you look at the LAMPstack days and you now look at Agile, it's been the database for everybody and it's been scaling up nicely. Some people were saying, oh, Mongo doesn't scale. Well, hello, cloud. You guys have done very, very well. Amazon's a big part of what you guys are doing. What's new with your business in the cloud? Yeah, I mean, it's been quite a story to be quite honest. We were launched as an open source technology just about 10 years ago, which was right around the time Amazon really came to market. So in many ways, we've always been well deployed, heavily used in the cloud. And if you look at the massive community phenomenon that is MongoDB, the majority of that actually sits in AWS. But the strategic sort of move that we made a couple of years ago based on customer input was to start delivering MongoDB as a service directly on Amazon Web Services. So now we're actually available in over 14 regions on AWS. And it's had a tremendous effect in our business. You know, when we launched it, obviously, it was 0% of our revenue. It's now two years later, 14% of our revenue, over 4,400 customers, and it's just a rocket ship. You guys just had a great trajectory, but I want you to take a minute to explain the dynamics in the database market because clearly Amazon's always taking shots at Oracle. You ain't any jazzy. It's always kind of making fun of Oracle. Because you have the big old school database. But with IoT and everything, databases are proliferating everywhere. And they're a really critical part of Agile. How is the database landscape looking like and how has cloud taken it up a notch? How has it changed it? Yeah, definitely. I think there's sort of two angles I think we see that are really interesting. One is, you know, I think the thing that always drove and still does drive the developer adoption of MongoDB is the fact that it's much more natural for a developer to work in a document model. You know, they're building an application. They're thinking about business objects, a user, an invoice, a product. And you can just map that so naturally as a developer in MongoDB. And that is just a much faster sort of business innovation cycle than a traditional relational database. And that will only grow as more and more organizations, even traditional organizations, start to build customer-facing applications where their engineering teams now need to ship in an agile manner, pushing out, you know, new versions of their application weekly or daily instead of annually. So I think that's sort of fundamental. And in many ways, the cloud accelerates that. Whether you look at sort of the DevOps movement and what's happening there, we're seeing this shift where no one wants to spend the skill set and time to learn how to manage and distribute a database system or any database system for that matter. They want to focus on writing compelling applications. So if we can deliver at a very economical price point an elastic service that then scales, you know, endlessly, it allows them to focus on their core business and us to focus on ours. And that's the end of the cloud. But talk about this Atlas product. Two years ago, there was no customers. Now you have over 4,000 growing. Correct, yes. That's just what? Just plug and play off the cloud, order on the marketplace. How are they, how are the customers onboarding? Yeah, so there's multiple ways. So we have certainly a very healthy self-service direct-to-developer type of business where they can go online. So if a credit card gets started on our free tier, you know, and start off with small development environments that are, you know, $10 a month all the way through giant globally distributed clusters that could scale an application a million. So that starts sort of developer first. However, we're interestingly seeing an uptick of that, especially this year, even an enterprise established highly regulated accounts as well, where, you know, they have a massive cloud migration happening in conjunction with Amazon and they want to use MongoDB because the richness of our database, but the ability to now buy through the marketplace and consume it as a service is really compelling. So you're curious about how your relationship with the customers changed when you went to as a service with the database. Was there significant, you know, kind of change in that relationship? How does it change when you, you know, you've got kind of this ongoing monthly billing activity? Definitely, great question. I think it changed, interestingly, like, obviously the financial model is different because it's a consumption based model, you know, based on pay for what you use. So that's obviously very cloud-centric cloud native. That's more of the math side of things, but what I think is more interesting is now, you know, we're obviously managing the customer's mission critical databases. So when they're, you know, buying into a technology like Atlas from us or Stitch from us, it's no longer just choosing Mongo because it's a great product. It's choosing Mongo because it's a company they trust to run a mission critical application and scale it as a partner. So it's elevated sort of the strategic nature of how we're used, like, you know, as a modern persistent store and database as an alternative to Oracle is sort of one angle, but now to look as a trusted partner because, frankly, there's a shared risk model that has to happen in a cloud services model. And that's been the biggest dynamic that's elevated our sort of standing in many of these accounts. And I presume you see increased trajectory. It's going to take an increasing share of your total business as we go forward. So I mean, it was 14% last quarter. Certainly it's a big focus of ours. It's growing over 400% per year from a scale point of view. So we're doubling down, no question. Take a minute to talk about MongoDB Stitch and the four components you guys have in there. What's relevant about that? Why is it important for MongoDB customers and AWS potential customers? Definitely. I mean, at the macro level, we're seeing the constant trend of developers wanting to be more productive and consume higher levels of abstraction so they have to write less code. That's the sort of macro reason why we built Stitch because it's always been our mission as a company to empower developers and build great amazing apps. But at a specific level, what's interesting is now that we're in the cloud, we can enable interesting functionality in a few ways. In one sense, many developers, many engineers have been used to things like triggers in the relational world, meaning you're watching for data changing and you want to execute some sort of action. So now we've brought triggers into the non-relational modern database world with Stitch triggers. So now any change in the database in Atlas can trigger an integration into Amazon's Kinesis service or dumping data into S3, a variety of different use cases to enable real-time sort of reactive applications. That's sort of fundamental, that's number one. The second is enabling client-side apps, mobile applications, rich web applications, to have more enabling faster technology because now the client app can interact with the database in a much richer way with a secure model. So the query anywhere service does exactly that. It brings a full power of Mongo all the way through the edge, all the way through the client-side application with Mongo Mobile. So we're really sort of extending our reach and architecture because fundamentally, what we're hearing from developers is we want to work with MongoDB because it's the best way to work with modern data, but help me do that everywhere. It's like stitching together all the data, Jeff. We were just talking about on the IoT portion of our intro package how if you stitch it all together, you can really kind of bring it everything beautifully together because the operators are spending a lot of time wasted on grunt work and tasks that they don't want to do. And with the cloud, I think this is one of the value propositions we're seeing this year become very clear. And so with the VMware relationship announcement a couple of years ago, you're going to hear about Google Next and some other cloud conferences, the developers are king, the operator's still going to be an elevated role. They're not going away. The storage administrator becomes the IT operations guy. So the operators and the developers are going to create a nice symbionic relationship. Yep, is this where Stitch kind of hits home? It hits home from a governance and security standpoint around that, as does Atlas, right? Because what we're seeing is the modern operators are saying, listen, it's not strategic for us to learn all the bits and bytes of infrastructure management anymore or database configuration management, whatever it might be. But it is strategic to say, what are the key services that we're going to partner with for the long term of this business while protecting governance and risk, thinking about security, abstracting away any particular provider. So we're definitely seeing an evolution in the traditional operations role. And then at the same time, developers influences consistently getting increasing in the market. So here, I want to get your thoughts on this. You've been an industry veteran for a while, going back to the old BMC days before that, looking at the early days, and when those tech stacks were pretty well understood. And certainly Mongo made their bones early days with LAMP stack, early days open source. Now it's certainly changed with cloud. Looking back now and seeing what's happening now, a lot of people are kind of reawakening to the cloud. I was just talking to an investor in Silicon Valley who was doing some work in China just five years and it's kind of been out of the enterprise IT space. He's like, Dan, the stack has changed significantly. What have you observed? How would you talk about the changes between just five, six years ago and today? From a stack standpoint, from a capability standpoint, from a critical architecture standpoint, what's your view? Yeah, I think first and foremost, that we're seeing a shift in application architecture. We're seeing the idea of microservices, decomposed applications, decoupled components and functionality, that's only rising. And we're seeing that interestingly not only for new applications, but also legacy modernization of existing applications. So now that's actually driving the change in our business. Instead of the shiny new IoT apps or mobile apps or web apps that Mongo has always been strong for, we're now seeing 30% of our business come from legacy application modernization to microservices. So 30% of your business is modernizing legacy apps. Correct. Wow. As they want to drive faster developer productivity, better economics obviously of running that application and building on a more modern platform. I mean, you put a container around with Kubernetes, you can now bring them into a modern architecture without sunset in them rapidly. You don't have to rip and replace. You could just let it take a natural life cycle. Right. And we basically play with that in two ways. And if you're in the public cloud, there's a nice fit between Kubernetes, wrapping all the different app components, making them abstracted, scalable, Atlas underneath, that's sort of this fluid data layer. Or if a customer is sort of their own data center trying to modernize their stack on it, you know, standardizing on Kubernetes, we now integrate our IP around automation and management directly into Kubernetes. And that was one of the big announcements we made a few weeks ago. That makes Mongo really more versatile than ever before. I think the database as a service proves that you can really see the value of how having not a one spot only in the stack, you can fit down with Atlas and then provide agility. Yeah. And that's really, is that kind of what's going on? The key driver is always agility for us, you know? And then there's like, oh wow, there's a huge cost savings to this as well, whether it be in terms of productivity, you know, infrastructure costs, just because of the native architecture. So, as we see more and more organizations become software companies effectively as the saying goes, that's just been a huge sort of tailwind to our business. So two things, two final questions for me, and I'll let Jeff ask his questions. One, what's the relationship with Amazon look like now? And the second question is, what should people know about Mongo? If they haven't been keeping in touch with Mongo lately, what's the new big kind of bumper sticker that they should know about for Mongo? Sure. So on the first point, the relationship with Amazon is very strong. You know, we obviously partnered with them originally when we built Atlas and continue to do so and just core architecture, building a database to the service that's best in class on their platform, right? And expanding initially from, I think, four or five regions to now global footprint and that was sort of the first phase. Now we're heavily focused on go to market. So whether it's our sales teams working together on accounts, working on migration opportunities or new application architectures, whether it's marketplace adoption that we're together trying to drive and increase, there's quite a bit of collaboration happening. Certainly they have databases and services, but we believe certainly functionality wise, there's a huge ecosystem around Mongo and they see that and want to empower them with Atlas. So that's been a huge advantage to driving growth into the market. The second point around what I would want people to know about Mongo is, you know, I think MongoDB today probably would surprise people from our original roots. You know, original roots were systems of engagement, you know, high scale web applications, new apps. We're fantastic at that. Obviously, Stitch is a way to double down on that value prop. But as I touched upon earlier now, we're really betting on a more general purpose strategy where we brought forth things like, you know, transactions and asset compliance for the first time to non-relational databases. So they really believe that there's no application today for which Mongo can't give the same level of developer benefit, even if it's a heavy transactional mission critical application. So I think that's probably not happening. So you're doubling down on the web app core business, giving them more range and functionality to go anywhere they want to go with those apps. Exactly. And saying, all right, there's this huge wave of billions of dollars built on legacy technology. How do we unlock, you know, those applications, get them on a modern platform that allows those apps to, you know, stick around for the next 20 years and deliver customer values. So it's both those things. It's not your dad's tangent. I guess that's the takeaway. That's right. That's an inside joke. Tengen, formerly MongoDB. Right, right. So here, thanks for coming on theCUBE. Great to see you. Congratulations on your role at Mongo. Great company, CMO, Megan Phenomals is on theCUBE recently. Great to see you. Success, thanks for coming on. Thank you for having me. I really enjoyed the conversation. Hey theCUBE here live in New York City. More coverage, stay with us. I'm John Furrier with Jeff Frick. We'll be right back. Thanks for watching. Stay with us.