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Adding An Easy Mode For The Modern Data Stack With 5X

Adding An Easy Mode For The Modern Data Stack With 5X

Released Monday, 18th December 2023
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Adding An Easy Mode For The Modern Data Stack With 5X

Adding An Easy Mode For The Modern Data Stack With 5X

Adding An Easy Mode For The Modern Data Stack With 5X

Adding An Easy Mode For The Modern Data Stack With 5X

Monday, 18th December 2023
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try Starburst Galaxy today, the easiest and fastest

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way to get started using Trino. Your host

1:33

is Tobias Macy, and today I'm welcoming back

1:35

Tarush Agarwal to talk about what he and

1:37

his team at 5xData are building to improve

1:40

the user experience of the modern data stack.

1:42

So Tarush, can you start by introducing yourself

1:44

for folks who haven't heard any of your

1:46

past appearances? Of course.

1:48

Hey, Tobias. Good to be on the show again. I

1:51

think this is my third time. My background,

1:53

I'm the founder of 5x. My

1:56

backgrounds have been very focused in the data space, got

1:58

to be one of the first data engineers. at Salesforce,

2:00

one of the first data engineers in the world. Most

2:03

recently ran data for WeWork. We very,

2:05

very narrowly focused on

2:07

what used to be called the modern data stack

2:10

or data infrastructure. And

2:12

we sort of started 5X about two and

2:14

a half years ago, and

2:18

I'm sure we'll get all into that. And

2:20

again, for folks who haven't heard your past

2:23

appearances, do you remember how you first

2:25

got started working in data management, data

2:27

engineering, and what it is that's held your

2:29

attention this long? Yeah, absolutely.

2:31

Obviously, we've been through many,

2:33

many pivots. And when

2:36

we first started, we were actually building a

2:39

course or a program for

2:42

data, for sort of companies wanting to

2:44

invest in data. Post

2:46

WeWork, I would get a lot of

2:49

calls from CEOs looking to

2:51

bring in a head of data. And this was SMBs,

2:54

mid-sized enterprise, real estate, banks,

2:56

SaaS, e-commerce, across the entire

2:59

spectrum. And everyone was

3:01

talking about monetizing the data and

3:04

sort of data's the new oil. And

3:06

in reality, all of those conversations went like,

3:08

hey, I think you're sitting on a goldmine

3:10

of data, but the reality is, is you

3:13

have to go build this data platform, and

3:15

these are the vendors to speak to. And

3:17

it's not rocket science, but it's highly contextual.

3:19

And there's this thing called data modeling

3:22

and BI and self-service, which are really

3:24

the first steps. And

3:27

so out of that, we just

3:30

figured that many, many businesses

3:33

are trying to get started and

3:35

expertise in the space didn't quite

3:37

exist. So the first version

3:39

of 5X was really a course

3:42

to actually, this is kind

3:44

of what we've learned in the industry over the last 10

3:46

years, this is the playbook on how to go do it. And

3:49

that failed miserably. We barely

3:51

had anyone buy it. But yeah,

3:53

that was V1 of

3:56

back then, we will sort of 5X data

3:58

now just by this. In terms

4:00

of what you're building at 5X, you gave

4:02

a little bit of a backstory, how it came to be. And

4:06

the last time we spoke about your work

4:08

was in March of 2022. So we're at

4:10

about a year and a half

4:12

now, wondering what are some

4:15

of the notable changes in the

4:17

overall product focus, what you're building,

4:19

how you're pitching it, and just

4:21

the ways that the drastic shifts

4:23

in the data infrastructure ecosystem over

4:25

that time have influenced the ways

4:27

that you're thinking about that problem.

4:30

Yeah, I know. Great question. A

4:35

few years ago, pre-modern data stack,

4:37

we had everyone using

4:39

Informatica. And still today,

4:42

many, many, many enterprises are on

4:45

Informatica. And some big

4:47

advantages of Informatica was

4:49

it's an end-to-end platform. You can

4:51

do everything on it. You can

4:53

ingest and transform, and you

4:56

have all of your capabilities inside a

4:58

single platform. And that was really powerful.

5:00

Now, the users of

5:03

data teams hated the product because

5:06

it just isn't a very robust

5:08

product, very easy to use. And

5:11

on the banks of that, we had

5:13

all of these different vendors go

5:16

after individual pieces. So

5:18

we had the five strands of the snowflakes, and the

5:20

DBTs, and the BI's, and reverse

5:22

ETL, and 1520 other categories.

5:26

And fast forward a few years, and

5:28

we have 500 vendors in sort

5:30

of 30 different categories. And

5:33

today, what's happened,

5:35

especially in the last 18 months, is

5:37

that blank checks for

5:40

your data team, just because your

5:42

investors wanted you to invest in

5:44

data, are no longer a thing.

5:46

And CFOs are getting involved, and

5:48

data teams have been hit pretty

5:50

hard, and they need to show ROI. And

5:53

the analogy we use is what

5:55

happened from the one platform is

5:58

the analogy we use today is... to

8:00

their product, whether it makes sense or not. And

8:03

that also adds additional

8:05

strain and infrastructure

8:07

requirements around the data platform. And

8:09

I'm curious how you've seen that

8:12

influencing the ways that teams are

8:14

thinking about data, talking about data,

8:17

building around data, and whether the

8:19

outside view of, oh,

8:21

everybody's adding AI is realistic, or if it's

8:24

more just that maybe there are a couple

8:26

of toy projects that are maybe skunk works,

8:29

and the core of the business is still

8:31

just standard, let's get our business

8:33

and reporting and maybe a couple of ML models,

8:35

and we're focused on just this core capability

8:38

and AI is somewhere off in the wings,

8:40

maybe it'll become a thing later on. That's

8:43

a great question. And I think there are

8:45

a few different ways to look at it. I think for

8:48

sure we are seeing

8:50

data teams being pressured

8:54

to have an AI strategy.

8:57

So it's very real, it's data teams

8:59

that bring this up all the time.

9:02

We're obviously very much in

9:05

the infancy of AI inside the data

9:07

world. We have some text to

9:10

SQL. What I'm actually very, very

9:12

excited about is the conversational

9:14

BI in order to get there, things

9:16

like the data modeling layer, things like

9:18

the semantic layer become even more important

9:21

to essentially give AI context in

9:24

a business. Because things like

9:26

your sort of definition of what is MRR,

9:29

how many daily active users you have are

9:31

extremely nuanced, right? So we

9:33

think the semantic layer is really, is

9:36

sort of gonna be our best shot at sort of

9:38

getting into conversational AI. I've said

9:40

all of these things, if you just look at the

9:43

data life cycle in general, it's,

9:46

I think there are two different aspects to consider. What

9:48

is sort of data

9:50

practitioners and people in the industry sort

9:52

of really talk about, VC is what

9:54

they're investing in. And a lot of

9:56

that is like future sort

9:59

of state. of data. And

10:01

what I find really interesting is companies,

10:05

just the core data stack, the five

10:07

trans, the DBTs, the sort of snowflakes,

10:10

they're just getting into sort

10:12

of adoption at the

10:15

enterprise level. They're just now

10:17

getting, I think snowflake is a little

10:19

bit ahead, but all of the

10:21

other vendors, just the core vendors are finally

10:23

starting to be adopted

10:25

now. So there's

10:27

a big delay in what

10:29

practitioners and what's happening in

10:32

the industry versus really enterprise

10:34

adoption looks like. So I

10:36

think with that lens in mind,

10:39

from the enterprise standpoint, we

10:42

are quite far away from this.

10:44

I think from the SMB

10:46

standpoint, we're looking at something in

10:48

the next, I think end

10:50

of next year too, still quite early, but

10:52

I think 2025 is I think when sort of AI

10:55

and data will start to

10:57

get really interesting. And

11:00

in terms of the modern data stack, that

11:02

was a term that started getting thrown around,

11:04

I'd say probably in the 2020 timeframe

11:07

in particular. And that

11:10

was also around the time that

11:12

the venture investment in data infrastructure

11:14

and data startups was at an

11:16

all time high. They would throw

11:18

money at anybody that had the

11:20

word data somewhere in their pitch.

11:23

And now that has

11:25

dramatically shifted where data

11:28

infrastructure is the previous

11:30

generation of interest, there's still work

11:32

being done there, there's still successful businesses,

11:34

but it's not a situation where there

11:37

is room for everybody with an idea

11:39

to get funding and run a business.

11:41

And so we're starting to see a

11:43

cycle of consolidation and the ecosystem. And

11:47

I'm wondering how you're seeing that influence

11:49

the ways that people think about what

11:51

actually constitutes the modern data stack, what

11:53

are the capabilities that are actually necessary

11:55

and required, and which were the ones

11:58

that were perhaps frivolous or may maybe

12:00

just a feature of a larger product? Yeah,

12:03

I think having 15 different

12:06

categories is probably, it

12:08

was an overkill of

12:10

going from an end-to-end ecosystem to

12:12

a fragmented ecosystem. And we're

12:15

gonna see a lot of these categories

12:17

become features, which

12:19

can be adopted by sort of other categories. So

12:21

consolidation has to happen, right? Like the way the

12:23

world stands. We're also looking at, we're

12:26

looking at a lot of data companies today, which

12:28

will sort of struggle in

12:30

the next two or two, 18 months as our runway

12:32

dries up. So we

12:34

are gonna see consolidation. And

12:36

I think that's something which, with

12:38

sort of 5x, which has always been the sort

12:40

of consolidation of the data stack, is actually

12:42

very excited about. Because what

12:45

starts to happen when you start to

12:48

consolidate again is optionality

12:51

needs to exist. Like

12:53

one BI tool, you

12:55

know, it's very difficult for Snowflake to go acquire

12:58

one BI tool because they

13:00

then get locked into the

13:02

very specific use cases

13:04

which that BI tool is good at. And

13:07

sort of different companies have different use cases. So,

13:09

you know, I think it's very

13:11

healthy for the sort of 15 categories

13:14

to potentially come down to, you know, six,

13:16

seven, eight core categories. But

13:18

inside these categories, you're still gonna have

13:21

a bunch of dominant players, right? Even if you

13:23

just look at the data warehousing space, which is

13:25

very, very mature, you know, we

13:27

have Snowflake, we have Databricks, we have

13:29

BigQuery, you know, we still have companies

13:31

on Redshift. Sort

13:33

of DuckDB is a company

13:36

which, you know, has recently made huge headlines,

13:38

you know, to think of a

13:40

fifth warehouse right now getting funded in

13:42

a big, big way in an already

13:44

pretty sort of mature space is just

13:47

more confirmation that they're gonna be many,

13:50

many different use cases. And depending on what sort

13:52

of cloud you are and what type of use cases

13:54

you are, you're gonna have solutions which

13:56

make more sense than others. So

13:59

while consoling... helps decrease

14:01

the overall footprint even

14:04

in a world with eight different categories, you're going

14:06

to want to have optionality. 5x is the

14:08

answer to that. Especially

14:10

when you look at enterprise, it's

14:13

not data stack, it's data stacks. You

14:16

have different subsidies, acquisitions,

14:18

or even different departments

14:22

using different tools. What

14:24

you find in large enterprise

14:26

companies is not are they snowflake or

14:28

data breaks? Very often they're both. When

14:31

you look at again, how do you

14:33

take now an extremely

14:35

disjointed space? What

14:38

5x allows you to do is we

14:40

have this concept of workspaces. A

14:42

workspace can belong to a department or

14:44

a subsidy or the core data team.

14:47

You're just looking at what are the vendors which

14:49

make sense for you. I can go forecast my

14:51

cost of what does my spend on my particular

14:53

snowflake instance look like. You can have shared tools

14:55

across different workspaces. Some

15:05

might have their own. These

15:08

things at the enterprise level become

15:10

really difficult to manage. Even

15:13

digital identity access to

15:15

all of these different tools. These are

15:17

permissions. How do you do this across subsidies and

15:19

who has access to what? How do you audit

15:21

this from a central team perspective? These

15:23

are a whole suite of tools

15:27

which haven't been ever addressed

15:30

by the fragmentation of the

15:32

space. You would have to

15:34

go do this yourself and go back to building

15:36

your own car analogy. At

15:39

an SMB grade, there are many tutorials on how do

15:41

you go spin up the core three or four layers

15:44

in two or three hours. This starts

15:46

to balloon extremely quickly. For

15:49

all of these different types of use cases, even

15:52

inside a consolidated world, there's

15:54

going to be a huge need for this, especially

15:56

at the mid-market enterprise level. Otherwise

18:00

we have liability problems. Now

18:02

it's we only want to invest in the data

18:04

infrastructure and the data capabilities that we know are

18:06

going to be useful because otherwise we're going to

18:08

have money problems. And I'm

18:11

curious how you're seeing that calculus

18:13

start to influence the work

18:15

that data teams are doing, the ways that

18:17

they think about building their infrastructure, you know,

18:20

whether to say yes to

18:22

all of the data requests that are coming their

18:24

way, or maybe there is a little bit more

18:26

pushback about, well, why are you asking for this?

18:28

I'm just wondering how that is influencing

18:30

the way that the data teams are operating.

18:32

I think the two elements of that, right?

18:34

Like when you bring in sort of pinups

18:37

into the conversation, what everyone

18:39

obviously talks about is the cost of data

18:41

infrastructure, right? Like again, what is the cost

18:43

of all of these tools and they add

18:45

up pretty quickly. But it's sort of second

18:47

piece, which has been sort of spoken about

18:50

less is the people in data. And we

18:52

have a part from building a very fragmented

18:54

ecosystem. And we've also invented job

18:56

titles faster than, you know, then sort of

18:58

universities can even sort of keep up with

19:01

sort of actually training people in some of

19:03

these different professions. So there's consolidation

19:05

on the infrastructure, which we have been talking

19:07

about, which is happening. But I think we're

19:09

also entering the rise

19:11

of the sort of data generalist

19:14

and having, you know, do more

19:16

with less is a theme, which

19:18

is being sort of universally applied.

19:21

And we're seeing with consolidation,

19:23

there's more of a need

19:25

for, you know, people

19:27

working in the data realm to be

19:29

able to, you know, go manage the

19:31

platform, do ingestion, do modeling, do

19:34

BI. And, you know, we're going

19:36

back to, you know, sort of consolidation

19:38

across roles. And, you know, we're going to see

19:40

the rise of like much leaner teams. And again,

19:43

you know, in the sort of 2019,

19:45

sort of 2020, and I was guilty of

19:47

this myself for sure when I was

19:49

running data teams, you know, in some

19:51

ways, the sort of metric between sort

19:54

of data leaders was, you know, the size of

19:56

your data team and, you know, how big, you

19:58

know, you know, what teams do you have? have

20:00

and what different roles are you bringing

20:02

in, what are all these different use

20:04

cases and these people with very special

20:07

skill sets. I think that's reversing and

20:09

you're going to see the

20:11

rise of lean teams, which

20:14

are just way more efficient because

20:16

you're not paying the most

20:18

expensive tax in people, which is the communication

20:20

tax as you build larger and

20:22

larger teams and just being able to do more

20:25

because finely tooling is at a

20:27

point where it's more mature and

20:30

again with the

20:32

consolidation, just one person is just able to

20:34

do a lot, is to be way more

20:36

end to end. So I think

20:38

we're actually seeing it from both these different

20:40

perspectives in terms of there being layoffs and

20:42

I think data teams have been hit particularly

20:44

hard as well as more pressure

20:47

on bringing costs down across infrastructure as a

20:49

whole. Particularly as you start

20:51

talking about enterprise and coordination across

20:53

teams and across business units then

20:55

you start bringing in the conversations

20:57

around things like data fabric, data

20:59

mesh, these architectural principles, data as

21:01

a product. I'm wondering if you've

21:04

seen that start to come to

21:06

fruition and teams are actually building

21:08

that and they're realizing the value

21:10

that is promised by these approaches

21:12

or if it's largely been something

21:15

that is maybe interesting and not as

21:17

effective or harder to put into practice

21:19

and a lot of confusion. I'm just

21:21

wondering how these architectural ideas are also

21:23

influencing the ways that teams are thinking

21:25

about building their systems. I think at

21:27

the risk of being very controversial over

21:29

there, are these features, are these just

21:33

processes and thinking about how

21:35

to go structure your data teams

21:37

or are these actually entire categories

21:40

and just going into a few

21:42

of them, we don't have any

21:44

problem with your next catalog tool or

21:46

observatory tool or mesh or semantic layer. They

21:48

make sense as features but the idea is

21:50

introducing one more tool into the equation, one

21:53

more place where your team has to log

21:55

in, one more vendor you deal with,

21:57

one more platform where you have

21:59

to. go sort of do digital identity. The answer

22:01

of hey we want to go solve this problem and

22:03

we're going to build a new platform on top of

22:05

your existing platforms to go do it. That's

22:08

sort of not the answer and I

22:10

think a lot of these will potentially

22:12

be rolled into sort of bigger platforms

22:15

in sort of consolidation. But

22:17

again going back into the enterprise use cases

22:19

and again you know we get

22:21

to speak with some of the biggest data consultancies

22:24

in the world and what

22:26

they tell us is 80 90 percent and a lot of

22:30

these consultancies obviously do a lot of

22:32

referrals and do a lot of recenter

22:34

and sort of speaking to them with

22:36

it you know 80 90 percent of

22:39

their referrals are going into just core

22:41

four layers ingestion storage modeling reporting. So

22:43

you know sort of going back to

22:45

kind of what I said earlier you

22:47

know we some massive enterprise

22:49

companies which are implementing sort of these sort

22:51

of solutions. I think as we get into

22:53

this year and next year and the year

22:55

after that I think some of those renewal

22:58

conversations are going to be extremely difficult conversations

23:00

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23:02

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23:05

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24:00

to maybe the individual team scope

24:02

and building the infrastructure components. I'm

24:04

curious, what are the main points

24:06

of friction or the most difficult

24:09

decisions that they have to make

24:11

as far as how to implement

24:13

their data platform? Yeah. You

24:15

know, I think what's happening now is we're seeing

24:18

companies who have a platform, you know, they have,

24:20

they, they sort of built everything sort of actually

24:22

coming to us to go consolidate, right? Being like,

24:24

this is becoming really difficult to manage. And in

24:26

reality, we just want one neck to choke. So

24:28

can you actually go take over all of these

24:30

different vendors and really go consolidate this, right? And

24:33

so we're doing these exercises across, you know, mid-market

24:35

across enterprise. What we're seeing is, you know, the

24:37

first question earlier, are you, are you using the

24:39

right vendors? Because the reality of it is this

24:41

is not full-time job, right? Like we have, you

24:43

know, our entire team is sort of, is

24:45

sort of tracking the space. It's what we do on

24:47

a daily basis and we can barely keep up with

24:50

what's happening. So to think that,

24:52

you know, a data team at an

24:54

enterprise company is going to make necessarily

24:57

the best decisions on what vendors to use. And

24:59

number two is even after what vendors to use,

25:01

are you using them in the right way? You

25:04

know, how they're being set up, like

25:06

building your entire modeling layer inside LookML,

25:09

isn't probably the best thing as you think about

25:11

now reusing a lot of that modeling layer and,

25:14

you know, pushing it into data science or you're

25:16

sort of, you're sort of using reverse ETL. Again,

25:18

as some of these tools start to overlap, right?

25:20

Like something which we see in enterprise companies all

25:22

the time is, you know, a portion of the

25:25

jobs are built inside 5-Tran inside day modeling, you

25:27

know, inside the DBT integration and some ability

25:29

traditionally on DBT, some are built inside Looker's

25:31

semantic layer creates this sort of huge mess

25:33

all over the place. So the idea of

25:35

having sort of very consistent workflows, which you

25:37

can do inside a single UI is again,

25:39

becoming, it's really simplifying. It's sort of preventing

25:41

a big part of that mess in the

25:44

first place. And we think the solution to

25:46

this is, is not so much going to

25:48

be on a layer on top, but it's

25:50

really how do you, you know, set things

25:52

up in a way, which is, you know,

25:54

again, give you an end to end experience.

25:56

So You don't have a mess in the first

25:58

place. So A lot of. The data teams

26:00

again as they spend all this money building

26:02

this platform and now they're starting to question

26:05

the are way off it you know Unfortunately

26:07

we are gonna have many of them going

26:09

back to the drawing board and big like

26:11

which one of these decisions with right decisions

26:13

and I see the in the bigger question

26:15

to coming up his are we even the

26:18

right people to make a decision on what

26:20

to make sense of self self for us

26:22

so I think again he i think is

26:24

gonna be a i think we'll the direction

26:26

which were heading instead of going back to

26:28

the basics of what is. Fluff and

26:30

what is you know all of these solutions

26:33

was axes actually promised ethic and it people

26:35

are waking up and realizing that a layer

26:37

on top it isn't the answer We have

26:40

to. Gonna go back to the drawing board

26:42

and figure out how to do description of

26:44

Lulu and now digging into what you're building

26:46

and five acts ways that you are thinking

26:49

about how to beautify that experience, what are

26:51

the appropriate tools and vendors and how to

26:53

integrate them. Wondering if you can talk through

26:55

some of the learning for you've gone through

26:58

as you're building out your current aeration. Of

27:00

the platform and some of the choices

27:02

that you've made and how you have

27:04

approached that tool and vendor selection. Yeah.

27:07

You don't have the benefit action. We

27:09

are more like the apple of to

27:11

space in I said at the Android.

27:13

you know. I. Yearn half ago we

27:15

were looking at opening up legal system such

27:17

that any vendetta gonna go into bed with

27:20

us that really what we've decided to do

27:22

is is go partner with fifteen twenty or

27:24

so or vendors be will be soon be

27:26

closely with them. We integrate with them at

27:28

a deep level were integrated into the sea

27:31

as processed in a we had a be

27:33

at. We have access to be eyes which

27:35

are not obligate the eyes and roadie provide

27:37

You know a sort of much that a

27:39

beeper experience. And. Have

27:41

been. You know when we think of

27:43

the word detective abilities right? Like what

27:45

are the capabilities which your data didn't

27:47

need? Second to beating River Ctl as

27:49

a capability witting set of catalogue is

27:51

a capability. Be. I is a capability

27:54

Soon we look at negotiations in your use

27:56

case instead of capabilities managed. Looking at it

27:58

as an individual sort of. ben. Level.

28:00

But what are the set of vendors

28:02

which worked really well together and we're

28:04

sort of doubling down on existing members

28:06

who were different opinions on you know

28:08

which ones meeting we know what really

28:10

was a we have upshot audience inside

28:12

cat decreased so in a we don't

28:14

pick one vendor across a category but

28:16

you know depending on the needs of

28:18

our customers in obese be certified have

28:20

an open source offering. We tried to

28:22

have the are you know the sort

28:24

of the sort of commercial yes of

28:26

non open source or products and you

28:28

know we think about what are the

28:30

different types of use cases and what

28:32

for the use case what would be

28:34

the best vendor and the coming up

28:36

a decent good and bad. like the

28:38

this set of vendors work really well

28:40

together and increasingly more people are being

28:42

a spiral opinion on based on my

28:44

use cases what works really well together

28:46

instead of we just hired someone who

28:48

came from x y z vendor and

28:50

vividly use explains the vendor and and

28:52

I've no idea about the layer before

28:54

this in the layer after this and

28:56

we just figured out from the perspective

28:58

of that integration and unifying. The Experience:

29:00

What are the core elements of

29:02

making sure that there is a

29:04

cohesive platform feel, duties disparate tools,

29:06

and the engineering work that you

29:09

and your team of had to

29:11

do to be able to give

29:13

that a more contiguous flow? Yeah,

29:15

so you know we had this

29:17

Constable Id you know we call

29:19

it super Id or said he

29:21

said of unified Idea where you

29:23

can go operate all of these

29:25

different vendors inside a single product.

29:27

So. In. A you have an

29:29

Id on top the A warehouse you

29:31

can go in a ghost that of

29:34

said editor Dvd jobs you can in

29:36

have ingested our so we have each

29:38

set of product becomes an app and

29:40

said i experience and said some of

29:43

them get embedded know able to work

29:45

with the vendors and like on a

29:47

set of removing parts of their product

29:49

and said embedded experience that is see

29:52

a more focused embedded experienced the some

29:54

categories like you know the idea either

29:56

Core of Innocence equal I'd Eats. Which

29:58

will go build ourselves. And the idea

30:01

is you know for using a set

30:03

of a set of five drown are

30:05

you using hypothetically an airboat? The apps

30:07

will be slightly different because did on

30:09

Mac Apple's Lapis each other said if

30:11

I found her concept of Jobs and

30:13

Ethel might have a set of different

30:15

concepts. so the individual apps available inside

30:17

Id I sort of slightly different from

30:19

each other. but you have a single

30:21

place to go do this. And why

30:23

this is really powerful is that is

30:25

that you know sort of data teams

30:27

can now go figure out what are

30:29

the. Ideal workflows said of Going back to

30:31

that example of I recently the transformations inside

30:33

Five Transcendence Id B D and than some

30:36

inside said of look the mouth you know

30:38

in sort of love and you decide for

30:40

due to the concerning hard to police this

30:42

because sort of vendors on giving your feet

30:44

of linux did you put this with that

30:46

he put the sort of feature off like

30:48

that's why would they do that the one

30:50

more adoption it when more engagement across each

30:52

of their products whereas inside Five x you

30:55

know we could see log into your vendors

30:57

but again the goal is can be is

30:59

certainly gives us. A single Id experience.

31:01

So whatever your data team decides

31:03

the path you one do do

31:05

we can make those apps available

31:07

which school are widows Workflows to

31:09

this leads to a highly consistent

31:11

experience because you know eighty percent

31:14

of where someone is a lot

31:16

on a daily basis and doing

31:18

the work sort of becomes odd

31:20

of like you have to sort

31:22

of becomes deserve gold and will

31:24

flow of how things happen. So

31:26

in a from our perspective we

31:28

decided to you know initially. You

31:30

know we were a platform to a

31:33

provision we would handle the procurement billing.

31:35

he goes all of those things we

31:37

had to sing. Their digital identity literacy

31:39

could go manager users behind utilization to

31:41

go look at you spend four cars

31:43

and in a more tools and optimizing

31:45

spend. We had the security so ordered

31:48

lord small these two to going into

31:50

a single place and prayed for your

31:52

see i as to when you're to

31:54

compliance teams. So we always had dogs

31:56

are fundamentalists. Adding a big shift for

31:58

us is really com. in sort

32:00

of focusing on this unified IDE experience, sort

32:03

of such that, you know, the data teams

32:05

on a daily basis can go do all

32:07

of this from one tool. And along with

32:09

just making their life easier, because they're not

32:12

logging into five different tools, it promotes a

32:14

lot of hygiene in terms of best practices,

32:16

which can be more standardized. And, you know,

32:18

you can have more guard trails up as

32:21

to this is how we want to do

32:23

things, as opposed to a free for all

32:25

any vendor just go log in and do

32:27

it in that way. And then from that

32:30

unified ID perspective, there are a

32:32

couple of interesting elements to that. One

32:34

is engineers are very opinionated about the

32:36

tools that they want to use for

32:38

doing the work that they do. And

32:41

I'm wondering what are some of the

32:43

ways that you make that ID experience

32:45

customizable so that they can feel at

32:47

home doing the work in that context.

32:50

And also, maybe some of the

32:53

ways that you're thinking about how

32:55

do we extend that experience into

32:57

the tools that people are already

32:59

using? Yeah, that's a great question.

33:01

I think, you know, what we're going to

33:03

see is a lot more apps on sort

33:05

of five x ID, right? And apps are

33:08

experiences on how you want to basically

33:10

cooperate them. So, you know, we are

33:12

again going and building, you know, some

33:14

of the core experiences again, you know,

33:16

we see that in larger businesses, again,

33:18

there's a little bit less, you know,

33:21

inside enterprise, again, you know, I think,

33:23

again, at the SMB stage, you know,

33:25

there's a lot of flexibility, people are

33:27

free to kind of use their own

33:29

tools. And, you know, again, some, it's just

33:31

they're way faster to move and adapt. And, you

33:33

know, we see sort of circle and we see

33:35

hex and, you know, different people are kind of

33:38

using different things. And that's kind of all fine,

33:40

right? It's all very manageable, you can speak to

33:42

five different people, and you know, it again, at

33:44

enterprise, it's become sort of very different, right? Like,

33:46

so there is a certain level of flexibility and

33:48

sort of customization. And, you know, there's a lot

33:50

more stuff that we've planned in terms of the

33:53

ID experience to, you know, go make it sort

33:55

of more flexible. But I think, you know, what

33:57

we're really focusing on now is what are some

33:59

of the these core sort of use cases,

34:01

which teams are really focused on and how

34:03

do we provide a really solid sort of

34:05

unified way to go do this. So that's

34:07

really what the focus is now, but we're

34:09

going to see a lot more, you know,

34:11

app, a lot more experiences to

34:14

go sort of modify this in a way

34:16

which makes sense for you while still having

34:18

some guardrails, which the company wants to have

34:20

in order to have a consistent experience. And

34:23

from that consistent experience perspective to

34:26

what is the ideal flow that

34:30

users will experience when they say, I

34:33

have this data problem I need to

34:35

resolve either I need to onboard this

34:37

data, or I need to build this

34:39

report, or I need to ensure that

34:42

these transformations are running. I'm curious, what

34:44

are the different stages of that development

34:46

flow? Some of the ways that you're

34:48

thinking about how to manage versioning and

34:51

change management, the auditability streams that you're

34:53

integrating into that experience for managers or

34:55

administrators, and just some of the key

34:57

touch points in that overall experience and

35:00

the ways that you're thinking about building

35:02

this into a cohesive product. And you

35:04

know, it's a great question. I think

35:07

we don't want to go create the

35:09

underlying sort of tooling, right? Like the

35:12

reason we go partner with everyone in

35:14

the space is we think they are

35:17

very robust solutions out there, which do a sort

35:19

of phenomenal job in sort of what they're doing.

35:21

So we don't necessarily want to go reinvent the

35:23

wheel, right? So a lot of the versioning, a

35:26

lot of the branches, we think dbt does a

35:28

great job in

35:30

a lot of these different layers. And

35:32

again, you know, ID supports dbt natively,

35:34

we have our own version of dbt

35:36

core, which we've deployed more for

35:38

smaller customers, but we continue to

35:41

be partners with dbt at the

35:43

enterprise level. And you know, we

35:45

integrate into, we integrate into that.

35:47

So the whole premise is you

35:49

get to have the underlying component

35:52

are sort of powered by a

35:54

solution, which makes sense to your

35:56

business. And in the future, they

35:58

could be coalesced. They could be sort of. unified

38:00

experiences that you want to give people

38:02

this nice, easy flow. But you're also

38:04

working with companies who probably have already

38:06

made investments into their data platform that

38:09

maybe they don't want to get rid

38:11

of, or maybe there's going to be

38:13

a long deprecation path. I'm curious what

38:15

that overall integration and migration process looks

38:17

like where they say, we've already built

38:19

a bunch of stuff, but we also

38:22

want to be able to have this

38:24

unified experience. How do you

38:26

help to bridge that gap? Yeah, that's a great question.

38:29

This 5x platform doesn't care if you

38:31

already have a vendor or you want

38:33

us to go manage your

38:35

vendor relationship and go buy that vendor from

38:37

us. You can either buy vendors from us

38:39

in a simple five billing, or

38:41

you can go import your own vendors and

38:44

have you on vendor relationships. It

38:46

doesn't make a difference. We have a bunch

38:48

of hybrid where they might have a billing

38:50

relationship with a few vendors and reintroduce a

38:52

few others, and that works great too. What

38:54

we're seeing more is we are very deliberate

38:56

on the partners we choose to work with.

38:59

We want extremely adapted partners

39:01

on our ecosystem because again, we realize

39:03

we're not going to go integrate with

39:05

500 different vendors. We're going to have

39:07

some vendors which we think are extremely

39:09

widely adopted, that these vendors are going

39:12

to stand the test of time and

39:14

we bring them on. What

39:16

we see is that it's rare

39:18

unless they're not using

39:20

a warehouse and they're doing stuff on S3

39:22

and they have Spark jobs on top of

39:24

it. It's a completely different paradigm shift. In

39:26

general, people on the warehouse world, and we

39:29

support all four of the big warehouses,

39:31

we support Snowflake BigQuery Redshift

39:33

and next year integrating with Databricks

39:35

is a big focus of us. We

39:38

support all of the big players out of

39:40

the box. We support all of

39:42

the big players out of the box. Very

39:45

often when companies want to move to

39:47

us, it's not that they are that...

39:50

For the most part, we're able to support most

39:52

of the vendors which they are already working with.

39:55

That's one piece. But again, I think we're seeing

39:58

more and what we're going to see a lot. more

40:00

next year is sort of companies coming to

40:02

us and be like, this is our data

40:04

platform. Can you actually go consolidate all of

40:06

this, even the sort of, even the sort

40:09

of vendor relationships? And, you know, we want

40:11

to have one neck to choke. So you

40:13

handle all of that. And we can spend

40:15

100% of our time focused on actually delivering

40:17

data without having to manage the vendor relationships.

40:20

In terms of those vendor relationships,

40:22

and the onboarding work, the integration

40:24

work, you mentioned that you decided

40:27

fairly early on that it wasn't

40:29

just going to be an open

40:31

ecosystem. Anybody can come in and

40:33

be part of this experience. What

40:36

are your criteria for deciding which tools,

40:38

which vendors will be incorporated into that

40:41

platform, the work that you have to

40:43

do to be able to integrate

40:46

and expose that vendor and hook them

40:48

into the overall experience.

40:50

And I'm particularly interested in how that

40:53

factors in for those vendors that don't

40:55

fit cleanly into one category or another.

40:57

And there's overlap between them. Yeah, it's

40:59

a great question. We evaluate vendors in

41:01

like four different criteria. Obviously, number one

41:04

is the technology, you know, what they're

41:06

solving, what their product is. Number two

41:08

is their roadmap. So where are they

41:10

going in the future? What's becoming more

41:12

and more relevant for them? Number three

41:15

is the

41:18

sort of partnership. Do we have

41:20

alignment inside? Do we have a

41:23

deep partnership? Do we have the sales

41:25

level? Do we have other sales customer

41:27

support at the product

41:29

level? And number four is just there's some

41:31

sort of categories which we haven't entered, right?

41:33

We think they still might be relevant, but

41:35

we don't have a really good opinion on

41:37

one way that category is going and, you

41:40

know, how do we look at it? Sort

41:42

of fourth one is sort of how do they fit

41:44

in into the sort of general macroeconomic sort of climate.

41:47

We use this sort of criteria. Again, we

41:49

want to partner with some vendors which we think

41:51

are on the uprise. And we want to partner

41:53

and we want to build sort of deep

41:56

integrations into these vendors. And

41:59

so we can go. provide the best experience

42:02

for our customers on 5x. I

42:05

think for vendors

42:08

who are across multiple different

42:10

categories, we are starting

42:12

to see that. For example, we

42:15

are starting to partner

42:17

heavily with Ruddestack and

42:19

they do the CD pieces,

42:23

but they also have a reverse ETL offering.

42:26

I think all

42:29

of this is on the case-to-case

42:31

basis. We are partnering with an

42:33

end-to-end platform called Peak.ai, which is

42:35

an end-to-end experience across data science.

42:38

We mainly focus on the data

42:40

engineering and analyst

42:42

personas. Our partnership

42:44

with Peak is more

42:47

so that a lot of the customers who

42:49

want a new data science need a data

42:52

engineering persona and a lot of our customers

42:54

who have infrastructure from 5x

42:56

ask about a data science platform. It's

42:59

a little bit disjoint, but

43:01

again, we already started to

43:03

see multiple different categories overlap.

43:05

For example, workflow manager is

43:07

something which is consistent across both. Both

43:10

data science use cases as well as

43:12

data entering use cases need

43:15

workflow manager. As we

43:18

really now get into

43:20

going deeper into all of this, it's

43:23

not going to be as clean.

43:25

It never is. It's going to be

43:28

overlap. I think our product and engineering

43:30

teams are starting to think

43:32

about these things. In your

43:35

work of building the 5x data platform,

43:37

working with your customers, working with vendors,

43:39

what are some of the most interesting

43:41

or innovative or unexpected ways that you've

43:43

seen your product used? What

43:46

we very intentionally decided to do a

43:48

few months ago is double down on

43:50

our consultancy. We've always had

43:52

a small consultancy to sort of go

43:55

help customers. Again, as

43:57

we look at the enterprise

43:59

landscape, there's a lot of

44:01

fragmentation there too because a particular

44:03

vendor is going to go sell you their

44:06

product and when you ask for help on it they're going

44:08

to introduce you to an SI integrator

44:10

or a sort of consultancy. And

44:13

if we really want to make sure that people

44:16

are doing things correctly, you know, being

44:18

able to actually offer services and, you know,

44:20

help out with some of these implementations or

44:22

as needed to sort of bring in the

44:24

expertise, we just think is just part

44:28

of helping our customers go get value

44:30

from data. So we're partnering

44:32

with a bunch of our

44:35

vendors, again, a deep partnership where

44:37

we're also becoming

44:39

SI providers and can go do

44:41

the implementations. And

44:44

I think so we have a

44:46

subset of sort of customers where we're

44:48

doing end-to-end data as a service. We

44:52

sort of give you the platform and they're using

44:54

us to go build this

44:56

sort of reporting layer on top of it. And

44:59

we recently did something with this sort

45:01

of restaurant chain, you know, they have

45:03

50 to

45:06

100 different sort of locations. They're

45:08

inside the QSR category. They

45:12

for lack of expertise and, you know,

45:14

not having sort of data people in

45:16

there, they were used to, you

45:19

know, the analytics they got from Uber

45:21

Eats and restaurant 365 and, you

45:24

know, sort of Postmates and, you know, all

45:26

these different things. And, you know, their entire

45:28

marketing agencies, which just go focus on that

45:30

category and they do what they

45:32

do. And, you know, obviously it's a big business.

45:35

And what we were able to do with

45:37

them in just a few months is the sort of level

45:40

of sort of data and, you know, the

45:42

insights we could get in the analytics perspective.

45:45

It was something which they had

45:47

sort of never seen before. So much so

45:49

that sort of marketing agency, which,

45:52

you know, works with sort of 1,700 restaurants

45:56

was, you know, just completely sort of shocked

45:58

and blown away by. They now

46:00

want to sort of go do this across all

46:02

of these sort of different verticals. I

46:04

think we're getting exposed to, you know,

46:06

sort of use cases and sort of company types,

46:09

which are really interesting was, you know, sort of

46:11

very large, but again, haven't

46:13

had the

46:15

appetite or the

46:18

conviction or the expertise to actually

46:20

go make those investments in data.

46:23

Because as a data industry, we haven't made

46:25

it easy to go make those investments in

46:27

data. Sort of given

46:30

the fragmentation, but even just given like, you

46:32

know, the support and implementation needed to actually

46:34

go get value from your product. So

46:37

we're seeing a lot more of these use cases,

46:40

which we don't wear industries

46:42

which previously haven't entered the

46:44

ecosystem are now able to

46:47

be completely disrupted, because

46:49

what we're able to do is something

46:51

which is, for

46:53

lack of better words, no one else is able to do.

46:57

And another interesting aspect of what

46:59

you're building is that because you

47:01

have this unified experience, the incremental

47:03

cost of adoption for new tools

47:05

or new capabilities is much lower

47:07

for teams than it would be

47:09

if they had to go out

47:11

and do that evaluation process, do

47:13

the integration process themselves where it

47:15

turns from, oh, I

47:17

want to use dbt or some other

47:20

tool or vendor. Now I

47:22

just say, click a button, log in, start working with

47:24

it versus Oh, now I have to spend six months

47:26

going through that whole process. And then

47:29

maybe if you are in a larger

47:31

organization, you also have to do some

47:33

selection of source paperwork, get the funding,

47:35

etc, etc. And I'm wondering how that

47:37

influences the ways that teams are approaching

47:40

that process of saying, Oh, I want to add

47:42

this new capability. I want to start doing this

47:44

new thing. Yeah, that's a good

47:47

question. I want

47:49

to answer it in once you

47:51

get used to buying a car, it

47:53

becomes very difficult to go by car parts ever

47:55

again. So once

47:57

sort of customers see how. easy

48:00

it is to go on board a vendor and have

48:03

our expertise on making some of these

48:05

decisions and helping out with implementation, they

48:09

have a much lower barrier

48:12

to, hey, what about the next tool?

48:14

Because it's not as daunting of a process

48:16

every single time. So we

48:19

have sort of companies which sort

48:21

of start small and they add capabilities as they

48:23

need them with time and they're able to, I

48:25

like to use the word, do

48:28

it in a hilariously more efficient manner

48:31

as opposed to the

48:33

way companies do this today. And

48:36

again, for us what's very important is being

48:38

able to look at this very holistically,

48:40

not just from the sort of vendor

48:42

standpoint and the decision making standpoint, but

48:44

also the implementation and making sure they're

48:46

getting value from it. How do we

48:49

provide customers with the most amazing experience

48:51

to basically go do

48:53

this? And we're playing

48:55

a long game over here, right?

48:58

We want to make sure customers are getting value from data

49:00

because the way we look at

49:02

the world is we can go sell all of these

49:04

different tools and you can go do

49:06

that, but if customers are not getting value from data, at

49:09

some point it's going to

49:11

come back, right? Like either those tools are going to get

49:13

asked, either the data team is going to get asked. And

49:17

we're not looking to go make a short term buck

49:19

by sort of going and sort

49:21

of adding a new tool over there. We

49:23

want to make sure that we're looking

49:25

at this very sort of holistically and we're

49:28

just playing a sort of longer game and we

49:30

want to create the best experience for our customers

49:32

and data teams. And

49:34

in your experience of building this product,

49:37

building the company, working with customers, what

49:39

are some of the most interesting or

49:41

unexpected or challenging lessons that you've learned

49:44

in the process? You

49:47

know, people sort of

49:49

two years ago called us crazy because

49:51

we want building a new

49:53

category. We want building what

49:56

VCs call a product, which is

49:58

this is a category. And, you know,

50:00

this is where you go sell and you know, you have,

50:03

you know, you sell your product and this

50:05

is your ACV and we are something

50:07

completely different to how the entire industry

50:09

works. And everyone

50:11

called this idea of going and

50:13

consolidating the stack in like by building a layer on

50:16

top of it, all sorts of names and all sorts

50:18

of, all sorts of craziness. And I

50:21

think the last few months

50:23

have been truly exciting because a lot

50:26

of people are really seeing the value

50:28

in this now. So, yeah, I

50:30

mean, it was, it was sort of,

50:32

it was quite challenging to go get our first

50:34

integrations. It was sort of challenging to, you know,

50:37

explain data teams when you had unlimited

50:39

funding, why they don't want

50:41

to go and build

50:43

their own platform and manage this forever.

50:45

And, you know,

50:48

it's been really reassuring

50:50

and I don't even think

50:52

that's the right word, but it's been, it's

50:54

just very, just sort of very

50:56

grateful for people to see the

50:58

value in what we're doing now.

51:02

So, yeah, just makes a lot of the

51:05

sort of decisions we made to stay on

51:07

our path back then. Just,

51:10

you know, we see a new wave of people really excited to

51:12

show off to work every day. And

51:14

for people who are in the process

51:17

of tool evaluation, maybe they're doing their

51:19

own integration work across different vendors in

51:21

the modern data ecosystem, what are the

51:24

cases where 5x is the wrong choice?

51:27

Great question. 5x is not for you if you

51:30

are not using a warehouse or don't plan

51:32

to use a data warehouse. We

51:34

are built on a data warehouse first approach. Apart

51:37

from that, I think we're relevant

51:39

across the entire lifecycle of

51:42

your data team. And what I mean by that is for

51:45

SMB companies, we have a program

51:47

where we wave the cost of

51:49

the 5x platform, you

51:51

can still take advantage of provisioning

51:53

vendors from us at

51:55

less price or even cheaper and then

51:58

using 5x to go operate all your vendors. does so

52:00

in some ways it's a no-brainer for building

52:02

a platform from scratch today to build it

52:04

on 5x, for mid-market

52:07

and enterprise companies, other

52:10

advanced tools in our suite as

52:14

we spend discussing on this podcast becoming

52:16

extremely relevant. So

52:18

you know again a no-brainer to use us

52:20

to make your data teams more efficient. Overall

52:23

I think if you are using a warehouse

52:26

first approach using 5x

52:29

to really simplify the management and operation

52:31

of your platform is

52:33

something worth doing. And

52:36

as you continue to build and iterate on

52:38

your product and business what do you have

52:40

planned for the near to medium term or

52:43

any particular projects or problem areas you're excited

52:45

to explore? I think

52:48

you know we're just

52:50

focused on the basics right like sort of getting our

52:52

platform experience to be incredibly

52:55

powerful you know as we

52:57

get more daily active users to go use to

53:00

go operate inside our platform you know big

53:02

focus for us you know

53:04

sort of enterprise and you know enterprise

53:06

readiness you know sort of everything which

53:08

happens everything you need to

53:11

basically go after that segment. We

53:13

are not looking you know apart from

53:15

Databricks next year we're

53:17

not really looking to expand our

53:19

vendor footprint drastically. We want

53:22

to double down on our existing partnerships and

53:24

you know build the best experience all the

53:26

way from sort of SI work

53:28

to you know integration into you know

53:31

they sales teams into integration into their

53:33

product and engineering and at

53:36

a macro level we're super focused

53:38

on sort of profitability as

53:40

a business so you know we're playing a long

53:42

game and I came

53:45

from WeWork I came from a company which raised a

53:47

lot of money and you know some of my lessons

53:50

over there is you want

53:52

to go figure out what business you have

53:54

sooner rather than later so we want to

53:57

be around for a long time we're playing a long game. And

54:00

we want to get the business in a position which we can

54:02

go to that. Well

54:04

for anybody who wants to get in touch with

54:06

you, follow along the work that you and your

54:08

team are doing. I'll have you add your preferred

54:10

contact information to the show notes. And as the

54:13

final question, I'd like to get your perspective on

54:15

what you see as being the biggest gap in

54:17

the tooling or technology that's available for data management

54:19

today. I

54:21

think again, you know, we spoke about a lot

54:23

of those things about if you

54:25

look at AWS, AWS is a collection

54:27

of 50 different services, but they give

54:29

you a really cohesive experience to go

54:31

manage it, right? A single place to

54:34

provision, single digital identity, billing, migration, they

54:36

give you cost optimization and

54:39

they give you role-based access control. All

54:41

of these different things have just

54:43

been hilariously missing inside the data

54:45

ecosystem. So again, the glue which

54:47

actually connects all of this together, and I still

54:49

continue to think that that's one of

54:52

the biggest missing pieces in the space. Well,

54:54

thank you very much for taking the time

54:56

today to join me and share the work

54:58

that you're doing at 5xData. It's definitely a

55:01

very interesting problem area that you're

55:03

trying to address, interesting product that you're

55:05

building around it. So appreciate all the

55:07

time and energy that you and your

55:09

team are putting into making the modern

55:11

data ecosystem a more attractable and approachable

55:13

problem space. So thank you for the

55:15

work you're doing there for your time

55:17

and I hope you enjoy the rest

55:19

of your day. Thank you very much for having me.

55:22

Thank you for listening. Don't forget to check out our other shows, Podcast.init, which

55:25

covers the Python language, its

55:28

community, and the innovative ways

55:30

it is being used, and the Machine Learning

55:32

Podcast, which helps you go from idea to production of machine

55:34

learning. Visit

55:36

the site at dataengineeringpodcast.com to subscribe to the show,

55:39

sign up for the mailing

55:49

list, and read the show notes. And

55:51

if you've learned something or tried out a product from the show,

55:53

then tell us about it. Email

55:56

host at dataengineeringpodcast.com with

55:58

your stay. other

56:00

people who are in the show, please leave a review on

56:02

Apple Podcast.

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