MongoDB World 2018

I was at MongoDB World 2018 for the last couple of days. I’m a little giddy, I drank the koolaid.

They tripled their research budget last year, and I think it really paid off. I had a chance to hear their CEO, CFO, CTO, and various heads of departments, and had some one-on-one time with the CTO. I also had a chance to have beers with some leaders of their teams after the conference.

One caveat - this was primarily a technology conference so they only talked financials briefly during the keynote (revenue growth 70% yoy, customer growth 80% yoy). We spoke mostly about the company’s business vision, technology road map, and product achievements. Here are my big takeaways:

Version 4.0 was released at the keynote, and it contains multi-document ACID transactions. The transactions are declared in the same way they are in SQL databases - no weird workarounds or special cases.

This is a game changer - ACID Transactions provides data integrity guarantees, while maintaining the speed and flexibility of Mongo’s document model. Working with Json schemas, which were released in version 3.6, this enables data designers to make Mongo collections as flexible or rigid as they want, enabling rules to ensure data integrity in certain fields, while continuing to allow flexibility in other fields. Note: ACID transactions on sharded collections are not currently available, but are scheduled for version 4.2

They had huge emphasis on Mongo Atlas - it was a big focus of their presentation. And they had numerous clients talk about it, including Coinbase (they handled the crazy growth in crypto only because they were on Mongo), Traveller’s Insurance transformed their entire company going from 2 databases to 2000 in one year. Braze does over a billion transactions a day on Mongo Atlas.

The best story was by Snag, the top hourly freelancer company in the US. They’ve been using Mongo as their sole database for 7 years - but the free community version, paying nothing for it. When Atlas came out, they did the cost benefit analysis, and have been on Atlas for the last year. They found out that they can save huge money using Mongo Atlas, rather than using the free version of Mongo and hosting it on their own servers. This is exactly the monetization story around Atlas I have been looking to see, and a number of companies had similar experiences.

Many new features on Mongo Atlas were also released at the keynote. The first was Global clusters, which gives you an amazing amount of control and granularity over where your data lives within Atlas clusters. It enables you to specify specific Mongo or other cloud titan (AWS, Azure, GC) data centres around the world to contain your nodes. You can then combine this with a document field that identifies a user’s location, to ensure that their data is always stored in specific data centres, both for efficiency and compliance purposes - GDPR. It also allows non-blocking nodes, which allow super fast reads, and hidden nodes which can be used for reads without affecting writes. It also allows you to be cloud independent with Mongo.

Mongo is making big steps into data analysis and visualization. They have really beefed up their Mongo Compass product (tied really well into Atlas), which basically allows data analysts to transform and load data into various front ends such as Tableau, or excel. They also have connectors that make the data in Mongo look exactly like SQL data and use standard SQL connectors. So now Mongo natively works with every data analysis tool on the market, whether you are using ETL, ELT, cubes, HDFS, MapReduce, Spark, or Talend. It works with tools that were built 20 years ago just as well as it works with tools built today.

A new exciting data visualization tool, Mongo Charts, was also was released at the keynote. It makes it very easy to create dashboards with charts and other data visualizations, through a point and click interface without needing any coding. The CFO demoed it, and created a couple of great dashboards in minutes just using point and click, with no code at all. This is very slick and easy to use, and sitting right in the database, it is super fast. It runs in a separate engine away from the database, and it can use special hidden nodes that stay current with your data cluster, so it doesn’t affect your database performance in any way - but still uses real-time data. There is no other data visualization tool that can do that.

Now there is a caveat about their data visualization - since it is based specifically in the Mongo database, it is only useful for data that is in Mongo. Most enterprise companies don’t have their data in Mongo yet. So it becomes a very attractive sales pitch to sell Mongo - by switching to Mongo you can not only get rid of your Oracle fees, but your Tableau and Alteryx fees also. But it is probably not going to affect sales of these companies significantly until Mongo covers other databases (extending the Compass tool) or more companies have their data on Mongo.

For me, the most exciting thing I saw, beside ACID Transactions, was Mongo Stitch. They describe this as backend as a service, and it is like adding a webserver to the database, so you can now access your database in a lot of powerful ways directly from the web.

Basically Stitch allows you to code 2/3 of an application right in the database. It is not like stored procedures, for the developers out there - those were always clunky and ugly and ran in the database, not always very quickly. Stitch runs outside the database in a totally secure web layer, allowing you to do amazing development and even integration with partners with minimal coding - very slick.

Mongo also released into beta a mobile version of their database which runs on all Android and iOS devices. This is a fully functional Mongo database. Stitch also has Mobile Sync, which allows you to sync, at all different levels of granularity, a mobile database on one device with another Mongo database - either mobile or regular.

On a personal note, I have mentioned in a post or two that I have a personal web application that uses Mongo, that is currently hosted on IBM’s Compose Mongo hosting service. Ever since IBM bought Compose, the service has become awful, and I’m getting ready to switch to new hosting. Now my website won an award from Microsoft, and I’m getting 3 yrs free hosting of pretty much anything I want, so I was going to port my database into Microsoft Cosmos, which has a Mongo emulator - it can look to my application like it is a Mongo database.

Even though I thought Mongo Atlas was very cool, I would have to pay for it, while Microsoft Cosmos would be free for me for 3 years. But after what I saw what Mongo is doing with Atlas at this conference, I’ve changed my mind. I’m going to pay for Mongo Atlas rather than take the Azure offering for free.

Like I said, I drank the Koolaid.

104 Likes

Steppin:

Nice writup…and yes the koolaid was fully consumed! :slight_smile:

One caveat - this was primarily a technology conference so they only talked financials briefly during the keynote (revenue growth 70% yoy, customer growth 80% yoy).

Since they just reported YoY revenue growth of just 49%…that 70% number would indeed be news! Are you sure you have that correct?

They found out that they can save huge money using Mongo Atlas, rather than using the free version of Mongo and hosting it on their own servers. This is exactly the monetization story around Atlas I have been looking to see, and a number of companies had similar experiences.

This freemium version conversion has been the main criticism of the business model for MDB yet you are noting that SNAG “saved” money with Atlas over a free version. Can you expand on that and why other companies would or wouldn’t also save? What were the determining factors that may be similar to other companies situations? Is this merely a hosting issue and not an expanded perfomance for the actual paid software version itself?

So it becomes a very attractive sales pitch to sell Mongo - by switching to Mongo you can not only get rid of your Oracle fees, but your Tableau and Alteryx fees also. But it is probably not going to affect sales of these companies significantly until Mongo covers other databases (extending the Compass tool) or more companies have their data on Mongo.

So you think this is a real threat to AYX? Or is this something that could become an issue 20 years from now? Also, see below on legacy migrations.

For me, the most exciting thing I saw, beside ACID Transactions, was Mongo Stitch. They describe this as backend as a service, and it is like adding a webserver to the database, so you can now access your database in a lot of powerful ways directly from the web.

Another major criticism of MDB from a business perspective is that the legacy databases will be VERY slow to transition away from these legacies because it is not in the database engineers personality to go through the labor to “upgrade” for what they may perceive as minimal gain or worse yet…risk. That transition even to 4.2 could be a long long sales cycles and yet they are the bulk of the business out there right now anyway if one parses out the TAM as we have done previously. Did you see anything that could make transitions from legacy to Mongo any less painless or risky?

20 Likes

https://finance.yahoo.com/news/mongodb-expands-leadership-mo…

BTW, more details in that article as well…wasn’t enough to stop the selling pressure on those days…so guess not everyone was drinking the same koolaid :frowning:

1 Like

@duma

Since they just reported YoY revenue growth of just 49%…that 70% number would indeed be news! Are you sure you have that correct?

I took a pic of the slide, so I went back to look at it - I think I mis-described it. It specifically shows 70+% CAGR, showing revenues in 2015,2017,2017,2018 so it’s CAGR, not yoy revenue.

It also shows 80+% customer growth between fq2018 and fq2019 (I guess they have completed their first quarter of 2019). Thanks for catching the error - hopefully it makes sense now?

9 Likes

I was at MongoDB World 2018 for the last couple of days. I’m a little giddy, I drank the koolaid.

Thanks so much Steppenwulf. You always write in plain language (as much as possible) so that even non-techies like me can understand it.

Best,

Saul

13 Likes

Coming back to this thread, did they mention anything about Fortnite at MongoDB World, Steppenwulf?

Here’s a thread I put up over on the NPI board speculating about whether there could be any substantial revenue associated specifically with Fortnite’s use of MongoDB databases.
http://discussion.fool.com/mongo-and-fortnite-33118032.aspx?sort…

After looking a bit more, it appears that Stifel called for a beat and raise based on Fortnite for Q1 which was reported on back in May, so maybe I am a quarter behind.
https://thefly.com/landingPageNews.php?id=2730402&headli…

Also some Fortnite mention in this Fool.com article from June 14th:
https://www.fool.com/investing/2018/06/14/heres-how-mongodb-…

Thanks,
volfan84

1 Like

Vol,

It is a WAG, but if you estimate you can service 1000 players per CPU (node) and you need capacity for 1 million players at a time, that will go up and down depending on volume (with 4 million total players) at $5,000 a node per year, you get $5 million dollars or so in annual revenue from Fortnite plus whatever service contracts or the like might go with this.

Now that sounds like a lot, but not given that I heard the game was taking in $30 million or $300 million or something like that per month.

Whatever the case, you can see the lock in for this game. Fortnite is not going to port their game to another database. Fortnite might trade out Informatica for Talend or vice versa (much easier to do) but it ain’t switching databases. Fortnite will be MongoDB heretofore ever. And most likely, unless the company saw some glaring issues with MongoDB, all their future games and iteratives will be as well as that is where there expertise is, and that is where they have learned to work out the kinks and create work product that can be re-used and documented to make each new iterative use of the database easier and more efficient.

That is again, unless Fortnite is punching itself for having gone MongoDB to begin with and knows they are stuck with Fortnite, but won’t make that mistake again!

We of course do not know, and it is doubtful this is the case. But we just do not know.

But as I said on NPI, this use case is a glaring beacon to the world as to what MongoDB can do, and a light that might start to convince the herd of executives and developers who don’t want to get fired that maybe then can go with MongoDB.

Tinker

7 Likes

For one more data point, here is a job posting for a Senior MongoDB DBA for Epic Games (company that put out Fortnite). With this job posting, I doubt they’ll be abandoning MongoDB.
https://www.linkedin.com/jobs/view/senior-mongodb-dba-at-epi…

The person in this role will be responsible for the following:
Becoming the subject matter expert on Mongo at Epic Games
Understanding performance and scaling of Mongo databases across multiple microservices
Designing and building operational infrastructure to support our databases, automating where possible
Providing troubleshooting and timely resolution of database issues
Participating in 24x7 on-call incident escalation rotations
Providing advice to development teams on data patterns and usage

The ideal candidate will have a mix of the qualifications below:
Proven experience with MongoDB
Proven experience with Linux, and cloud computing technologies such as AWS, or other cloud computing environment
History working directly with development teams or leading DBA teams
Experience with other database technologies such as Postgres, MySQL
Working at scale
Passion for gaming

Please submit your resume and we’ll be in touch soon.

This is going to be Epic!

19 Likes