Episode Transcript
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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
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23:02
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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
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