 Live from the Sands Convention Center in Las Vegas, Nevada it's the Cube at AWS re-invent 2014 Brought to you by headline sponsors Amazon and Trend Micro Okay, welcome back everyone we're here live in Las Vegas It's the Cube our flagship program where we go out to the events and expect to see the noise I'm John Furrier with Jeff Kelly our next guest is Mark Oleson senior vice president general manager of the cloud business at Splunk one of the most successful Companies has come out of this kind of new generation. Welcome to the Cube. Thanks, John So we're very much as he plugged in with Splunk. We do the dot-conference our audience knows the slew of embedded Content we've done Tableau as well service now a bunch of other what I call modern era companies just taking names kicking ass So you guys are here so Amazon is a cloud company you run the cloud business What are you guys doing here? What's the big announcement? What's your what's going on for you guys Splunk here at Amazon? Why what are you guys talking about? Yeah, I think the major thing in God for you mentioned this in his keynote this morning John that Customers are now moving their production workloads to the cloud You know it's been Devon tests for a few years, but now it's production and customers want to do that in a safe secure way and Splunk helps them do that right Splunk is in the confidence to move their production workloads to the cloud We do service assurance. So basically giving them the visibility the confidence the security around that so Splunk Conference issue the theme was security obviously you guys moving away from the original positioning total market expansion is really good Good business. We had informatica on yesterday and their pricing model is like pennies per hour And their sales guys are kind of like wait a minute. We want to sell big licenses So what is your business model in with the cloud? Also, you guys are native you seeing a lot of use cases certainly from in from business analytics to security all that greatness We covered but here what's the role in Amazon you guys in the marketplace and you guys doing strategic relationship What's the connection with Amazon? Yeah, there's a few actually so we're running our own Splunk in the cloud Splunk cloud On AWS and for that, you know, we are taking all of the operations off of the hands of our customers So we're running it for them. They get to use the solution We have a few other options though. Customers can still license Splunk and put it in their own AWS stat They run and operate it on their own We also have Splunk for AWS. So this is really around the service assurance Right and giving the customers the confidence to move those production workloads to the cloud So you bolt on Splunk either however they want to consume it and win side natively with AWS service Or if they have their own kind of infrastructure within Amazon, they could bolt it in there You know to me it's all about customer choice customer flexibility. We want to be where our customers are We want to be where our customers data is. It's in the cloud. It's on-prem We're going to be there for them Share the folks out there your impression of Amazon this year. What's your take on the vibe the positioning of the enterprise the Docker News today, you know standing ovation then contain us clap. I mean everyone's clapping, but yeah, I mean, you know That's a hot thing. So you had Aurora yesterday. What is your view on Amazon? It's great business opportunity. What's the vibe here? I think it's all about innovation You know people ask me well, why are we all in on AWS? Why have we standardized Splunk cloud on AWS? It's really about their innovation I think they continue to drive innovation around the tech stack gives us great efficiencies to operate our own business And we can pass those efficiencies on to our customers Do you see developers kind of nervous about Amazon getting locked in or do you think they're just happy with the overall performance? Yeah, my team is thrilled with the overall performance and again when you look at the other options out there It's really a no-brainer You mentioned you're seeing some of your customers move to production workloads into the cloud Talk about what that means what that really looks like from a Splunk perspective What kind of workloads are they moving and why do you think that's happening now? Yeah You know if you go back and you look at the evolution there was a lot of debate ten years ago around well What are the benefits of the cloud? I think that debates over now, right? There are clear clearly defined benefits of the cloud I think the debate now more is around security and control So don't want to move to the cloud and am I willing to address the you know The control and security concerns that I may have around that and again I think that one's being flattened now right that was kind of being wrestled to the ground And that's why the production workloads are moving is because security is something that I'm comfortable with I see that I don't lose control when I move it to the cloud and I think that's the that's really driving the inflection point And specifically in this one perspective, what are some of those workloads? Is it I mean your core business of course is machine data data flowing off logs that off log data off of servers and the other equipment What are some of those workloads that you're seeing that are moving in the cloud? Yeah, well, that's the great thing about Splunk is there's so many different use cases for it So no matter what is moving to the cloud. It's producing machine data again, whether it's servers whether it's databases You know websites, etc. All of that is still producing data that we can help analyze It would seem to me your the cloud business at Splunk is going to follow very closely to the cloud business overall because as you've got more applications being put in the cloud They're creating data. You want to analyze that data? You don't data is heavy You don't want to move that necessarily back to your internal infrastructure And so right going using a cloud based solution for that analysis like Splunk makes a lot of sense It's you know being where our customers are being where the data is but also if there if there is data and customers have data that they don't want out in the cloud That's great for us. You know we offer a hybrid search capability So to the user doing the search and analyzing data. They don't have to know where the data is Data could be on-prem or in the cloud. We can search across both of those So talk about security obviously at dot-com for big use case for you guys How are people using Amazon to take the Splunk value proposition around really looking at the perimeter IT environment? We had and that's a big noisy market right now security is hot and you know the CIA is using Amazon So the intelligence community is kind of endorsed it so Maybe they're smarter than we are but certainly there's your security conscious Okay, that being said you still got threat protection. You got incidents and breach potentials Are people using Amazon for specific use cases? For cloud is it for either spinning up compute or doing stuff? Were you seeing anything there? Can you share some color there? Absolutely. I think there's two things there John. The first is again the customer having the confidence to move a production workload to the cloud So will it address the security needs and hit aws is at the top of their game on that In fact when we have security discussions with our customers When we tell them we're running an aws that that often you know flattens that discussion And you see a lot of activity there specifically using cloud resources to do either vector analysis or going in on threat protection Then that's the separate piece. So one is just the security of the data being in the cloud Then well, how can we take advantage of the cloud to drive and prove security? And the clouding gives us the opportunity to correlate different data sources. All right, so you can really Answer better questions Mark know what's prioritized. I got to ask you you're an industry veteran. You had mercury You were at McAfee now. You're at Splunk. So what is the cloud business now? You're the general manager which means you have a p&l which means you got to deliver some some business Which means value go to customers and get paid for it all that good stuff But you've got a historical perspective and a lot of the web apps on board in gen one I was a pretty pretty straightforward compared to today with mobile cloud data Talk about the comparison between kind of like that old web app development in the enterprise and native web apps To where it's going on today And what is the and what does your business look like? What are you products you selling? How does it all weave together? Right? Well again The notion of going to the cloud and being in the cloud and having an offering is because that's what customers are looking for They again, you know customers like FINRA customers like Nike that that we talked about this morning in the keynote Don't want to run the solution. So we're just taking that operations off the hands of our customers so they can so they can use it Separately, I mean you think get back. Well, what is the machine data that we are analyzing? And what are the use cases around it ops around application delivery around security around compliance and It's being where the data is It's being able to to ingest it. All right. So I got to ask you the hard question What can we do now with dev ops and cloud that people was a reach in 10 years ago What are what are the new things available now because now you got compute you got spinning up stuff standing up so fast What what's available now? You would you know time machine from 10 years ago to now What's available for for businesses? I think the big difference is back then You had to really design your structure beforehand You had to know what what data was coming in you who had to know where to put it now you don't right now You can just create indexes on the fly You can search that data and you don't have to do all of that heavy lifting up front We just couldn't do that 10 years ago So more more application productivity than all that good to be able to ingest any type of data no matter what the format All right, so you guys I know you got to run to a press conference Really appreciate you coming on swinging by give us an update. What's going on the show here? What are you guys announcing? What's going on for you here at the show? What means you have who you met with tell us everything? customers partners Press analysts, so we're we're covering all of that but you know four big things for us splunk cloud is is running on aws We've got splunk enterprise the customers to license to run on on aws. We've got our splunk for aws Which is our service assurance to give customers the confidence to move those workloads into the cloud And we have hunk available by the hour right on elastic map reduce running at aws, so we are all in All right, so what is your business objectives issue? You get the cloud business at the gm you run the show there What's your what's your metrics for this year? So when we talk to you next year at uh at dot comf and and amazon What are your key objectives key objectives is it's all about customer choice I want to make sure that when our customers are looking at on prem or cloud That we've got a phenomenal cloud option and offering for them to choose And just milestones in terms of market share to market expansion hiring All the above all of the above again, you know given the market demand given the customer demand They're they're looking for cloud and you know clouds have very rapidly growing business for us All right, great last question comment. I want to leave you the last word What's the bumper sticker on this show you had to put in a bumper sticker on this show this year? What's it all about innovation as aws continues to innovate and give Partners like us the opportunity to more efficiently operate our own business and pass that along to our customers All right, margolis an svp general manager a Splunk cloud off to his next press conference big press conference Thanks for stopping by the cube really appreciate it. We'll be right back after this short break