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.
00:33:04 · Ron Gabrisko, Guillaume Moubeche
Exciting times. [00:33:06] S1: You have, like... I mean, yeah, I'm just wondering, you know, like, how do you come up with with the pricing eventually? Because, of course, you have like usage based, but there is a difference from selling, as you mentioned, you know, when you got started, it was around like 20 k deal up to like 100 of millions. So how exactly when it comes to the the business case, you mentioned the, I guess, like value based pricing where you essentially try to identify how much value you're gonna bring to the company, whether it's the amount of money you're gonna help them save, how do you come up with the number, like, because in enterprise sales, obviously, like, the pricing is not on the website. Like, there is not... If I go on Databricks, there is not like, hey, here's yours.
00:33:53 · Ron Gabrisko, Guillaume Moubeche
[00:33:53] S0: Or is it? We we put all our... I mean, it's all We're usage not doing value based pricing. Mean, I think Palantir does that, but it's... All our pricing's on the website. It's super transparent. It's all usage based. So the the biggest part is we can see those usage patterns. Like, know for these 20 use cases, based on this this amount of data, we can kinda predict what kind of usage. You know, we already saw, like, we we might have three years of data of how your usage is going up, and then we layer on these new use cases so we know that that might accelerate the usage a little bit. And the reason we're doing value is like, you're not gonna spend, you know, even a million dollars or $10,000,000 unless you know you're getting, you know, 10 x that in value, and so, you know, we have a team that goes in and says, okay, well, here's how that's gonna impact your revenue, here's how you save costs to be able to justify that and make sure, you know, and we're doing quarterly reviews with that company to say, okay, we're on track, we wanna go back and measure that, but, you know, we're not doing value based pricing. I know some of the enterprise software like Palantir does, but, you know, we don't we don't do that. It's all usage based. It's all super transparent. Just go to the website and... [00:35:07] S1: Okay. So you're keeping like the the very like open source mentality and you know what you pay for and... Okay.
00:35:07 · Guillaume Moubeche, Ron Gabrisko
[00:35:07] S1: Okay. So you're keeping like the the very like open source mentality and you know what you pay for and... Okay. [00:35:15] S0: Totally. Okay. Totally. And I think... And that's that's, you know, been really good for us. Right? Because people wanna know, like, you know, transparency. And that... That's helpful too when you go in for renewals, because, like, when you go in for renewal, if we did a three year deal, they wanna know what kind of value did I get out of the last three years. You know, you'd... You need to be able to show them the actual value, And so I think the value based pricing starts to fall apart once you try to go for those renewals because you've already built it. Right? You have to go after new projects. So... [00:35:51] S1: Yeah. I agree. And I think in any case, like, usage based, to be honest, is is so obvious. Because if you look at... And I think that's also what happened recently, you know, like a lot of companies... Or even when when I think Elon Musk, you know, went to the the government and started looking at what people were paying, and they realized that, you know, they had... I don't know I don't know how many licenses of Adobe it was that were basically just unused. It was a seat based pricing, and Yeah. No one was using it. So, yeah, it makes a it makes a lot of sense.
00:35:51 · Guillaume Moubeche, Ron Gabrisko
[00:35:51] S1: Yeah. I agree. And I think in any case, like, usage based, to be honest, is is so obvious. Because if you look at... And I think that's also what happened recently, you know, like a lot of companies... Or even when when I think Elon Musk, you know, went to the the government and started looking at what people were paying, and they realized that, you know, they had... I don't know I don't know how many licenses of Adobe it was that were basically just unused. It was a seat based pricing, and Yeah. No one was using it. So, yeah, it makes a it makes a lot of sense. [00:36:27] S0: Yeah. Totally. Totally. I... Yeah. I think the... I mean, even the companies that were traditionally seat based pricing like Salesforce, they're trying to move to consumption based models. I mean, you have to just, you know, you run out of seats, especially in the, you know, in the new world. So... [00:36:46] S1: In what way do you think, like, or like, I'm gonna rephrase my question. In five years from now, because you've raised now at like a $134,000,000,000 valuation, like, five years from now, like, what do you think Databricks look like?
00:36:46 · Guillaume Moubeche, Ron Gabrisko
[00:36:46] S1: In what way do you think, like, or like, I'm gonna rephrase my question. In five years from now, because you've raised now at like a $134,000,000,000 valuation, like, five years from now, like, what do you think Databricks look like? [00:37:00] S0: I'm here to to help build. I think it'll be one of those generational kind of transformational companies. I don't think enterprise AI is valuable without your proprietary data, and I think Databricks is the most trusted, you know, product and company to, you know, manage your data and connect it to AI. So, I really like the space we're in, I think it's... I think it will, you know, touch every human and change every company, and that's our goal, you know. You know, with Genie, we can expand every single user in a company. We've released Databricks One and Databricks Mobile, so now you can get it on your phone and, you know, get all your... Ask all your questions to your data while you're, you know, traveling or whatever. So it's it's pretty cool. I think, again, I think Databricks will be an absolutely iconic company, so, you know, we're on it.