00:23:19 · Ron Gabrisko, Guillaume Moubeche
[00:23:19] S0: Yeah. Good good question. So, I mean, we partner with Anthropic, but we also partner with OpenAI and Gemini and GCP, and so, like, a lot of our customers want kind of model optionality or coding optionality, depending on, you know, what they're using. It's similar to how we partner with the clouds. Right? So we're a first party on Azure, which is unique, but, know, we obviously run on AWS, Azure, and GCP. They might have their own native technologies too, but a lot of customers, you know, one, they think Databricks is the best data and AI platform, and similar on AI, like, you know, again, I think, you know, the value of AI is how do you apply it to your proprietary data to make decisions and recommendations and predictions for your company, and, you know, Databricks is the data platform in most of those companies, and so for a lot of enterprises to get value out of AI, they need to connect, you know, some kind of AI system to Databricks, and so that's why we partner with all of them and, yeah, I mean, they're growing super super fast, obviously, but it's exciting times, like, you know, for sure. [00:24:37] S1: And and do you do you feel like the the AI wave we're seeing right now, do you think that it's helping accelerate Databricks business also?
00:24:37 · Guillaume Moubeche, Ron Gabrisko
[00:24:37] S1: And and do you do you feel like the the AI wave we're seeing right now, do you think that it's helping accelerate Databricks business also? [00:24:49] S0: Yeah. For sure. I mean, we've already... I think publicly we said we're... We've done 1,400,000,000 just in AI already. Right? So that's probably one of the fastest growing parts of our business, and I think it's just the beginning. Right? Like companies are just starting to adopt this technology. It's absolutely game changing, so, we're excited about it. I mean, Agent Bricks and Genie and a lot of the, products that we offer, you know, leverage, AI. Again, you know, we're focused on enterprise AI, not necessarily consumer based AI, but how does that AI with your data, how does that help you make decisions and predictions and really at a CEO, CIO level? That's that's the whole focus of Genie. [00:25:35] S1: So. And can you walk us through maybe, like, a a few use cases that you found, like, great, and you were like, oh, okay. Like, this this is next level of what we're gonna be able to do?
00:25:46 · Ron Gabrisko
[00:25:46] S0: Yeah. It's so it's so cool. And so... And we build out these, like, custom demos and then proof of concepts for our customers as well, but like, you know, looking at like a big retailer, you know, they were looking at, okay, how do they, you know, try to maximize revenue from their, you know, short stock. Right? So like, you know, if you're a grocer and you have certain things that are gonna expire, what kind of promotions? And literally, you can see which stores in the network have potential, you know, short life products, and then there's agents that will go look at that data in that store and recommend what promotions they should run for that particular store based on the demographics and all the buy... I mean, that's crazy. Right? Like, you're basically, it's a, you know, a retail knock, right? Gotcha. Network operating center, which is pretty cool. I mean, I gave some of the pharma examples, you know, in banking, they're doing all kinds of fraud detections. So obviously, you know, when you see, you know, an email on your phone, or a text on your phone that, hey, this might potentially be fraudulent, that's, you know, usually Databricks in the background running machine learning models that determine this is way outside your your normal, purchasing, patterns. But again, like, if you think about it, like, a CEO, if they're like, hey, what's happening with my business, you know, again, these retailer, what's happening with with my business? Why is, you know, the Southeast slowing down on sales? Like, normally, they'd go get an analyst. The analyst would put on a bunch of, you know, reports, send them back a report, they would look at it and say, okay, that makes sense, like change this, add this, and they go back and they come back and like the data now is stale, so update the data. Now they literally can just start typing English and say, hey, what's going on in the Southeast? You know, it might be like, hey, these are... The beverages aren't selling as well. You should try doing, you know, different shelf placement. I saw that increase in the Northwest Region. Right? Like, they're literally just interacting with the data and asking questions. It's it's absolutely game changing for CEOs, CFOs, CIOs. So it's it's incredible. So...
00:28:14 · Guillaume Moubeche
[00:28:14] S1: It's exciting exciting times ahead. And For sure. I'm I'm just wondering, do you sometimes have, like, you're focusing on enterprise and very large enterprise deal. So the data for some companies is equivalent to gold, I would say, and they don't wanna share it with with everyone around them. So is, you know, like, do do you sometimes struggle to close deals because of how the data is handled and this kind of thing? Because we've seen it a lot. Some companies typically don't want to use like Anthropic, don't want to use like OpenAI, etcetera, because they don't want to share kind of like their data with some some like AI companies. So how exactly do you navigate this from your perspective and and the enterprise clients you work with?
00:29:11 · Ron Gabrisko, Guillaume Moubeche
[00:29:11] S0: Yeah. I mean, we never... You never give your data to us. Like, that's the whole, you know, great part about Databricks is you store it in open storage, you own your data. Like, there's a lot of companies out there that are like, you know, you give your data to them, and then, you know, you have to make sure it's safe, all that kind of stuff. You never give your data to Databricks. It stays in open storage, in open data formats, Delta, Iceberg. Again, that's the key, right, to... And and, you know, that provides an even playing field too for the entire industry. Like, let the best engines and the less... The best products win that work on top of that data. And so that's a big thing about Databricks is don't don't give your data to us, don't give it to anyone because that's gonna be, like you said, your goal. That's your that's your secret sauce, right, is how you make new products and new predictions and make decisions on that data. So don't give it to us, don't give it to anybody. That's a that's a big key of the Lakehouse and how we built how we built out the data world. [00:30:19] S1: Nice. Can you walk us through, like, the process to close such a big deal? Like, what are the different stages? Who's involved? How do you handle, like, the the pressure on these kind Yeah. Of
00:30:34 · Ron Gabrisko
[00:30:34] S0: I mean, listen, like, you know, all of our customers started from, you know, one use case and, you know, decided to use us for, you know, for at least some kind of business use case or migration. And as you start to expand your presence inside of those accounts, like, our main thing is we're looking for more use cases. Right? We're looking for where we can add value either on the business side or, you know, retiring legacy technologies, so we, you know, we retire a lot of on prem technology Hadoop, old data warehouses, because you can consolidate all that, and when you consolidate all that, one, it saves you a bunch of cost, but now if you have all your data organized in the... In, under Databricks in our unique catalog, now I can do all these cool AI data science use cases. And so if you wanna take an enterprise or, you know, even, you know, some of the digital natives or any of the startups and transform your company and be able to use data to make decisions, you gotta get it all organized. Right? And so, you know, we'll start with going to each BU and starting to show the value of Databricks. We usually use those internal champions as references, and as companies start to use data, it's amazing product. It's the best product I've ever sold, and so they, you know, will continue to use it, and we'll kinda predict, okay, here are the other 30 projects you wanna use Databricks for. Right? Like, if we're inside of a large bank or a large insurance company, they might be using it for claims fraud and using it for how do I automate claims processing? How do I automate claims pre authorizations, like, etcetera, etcetera? And we're understanding kind of that... Those usage patterns. And, you know, for us, then we're gonna build out, okay, how do we make a strategic plan with that customer to make sure that they can, you know, grow with us and we can continue to add value? And so usually, we'll do a business case. It'll show them that they can save or make billions of dollars, and, you know, for the larger deals, we're usually connected to CEOs, CFOs, CIOs to make those decisions, and, you know, we have enough champions that they're like, yeah, Databricks is the best product and best partner in the industry to work with to to do these transformations. And so, you know, most of those are years of work. They don't happen overnight, but I assume.