My notes on the MDB Conf Call

My initial thoughts were that they are growing the business very fast, but not shrinking the losses. But I felt better after reading the conference call.

Conference Call

Two of our largest Atlas deals closed through the AWS marketplace. The ability for customers to buy Atlas through their preferred cloud partner makes it easy to do business with us, reduce the sales cycle times and accelerates the growth of our business.

Furthermore, we signed an exciting new relationship with IBM as part of its private cloud initiative. IBM will activate thousands of global sales reps who will be incentivized to resell MongoDB as part of IBM’s private and analytics cloud platforms for enterprises. This will greatly expand our reach into new markets and opportunities where IBM has an influential presence.

Innovation is the core of our DNA and our success. We’re continuing to invest in our platform and have a robust product roadmap that will make it even easier for customers to work with data. In three weeks, we’ll be hosting our annual user conference, MongoDB World. The highlight will be the formal introduction of MongoDB 4.0, including multi-document asset transactions.

Net dollar based expansion rate again over 120%

We now have 394 customers with over $100,000 in annual recurring revenue, which is up from 354 a quarter ago, and 268 a year ago. That’s up 11% sequentially and up 47% from a year ago.

Q. On the IBM collaboration, can you give us a little bit more insight. historically, we have seen smaller software companies do deals with these large vendors and on paper they look good, but often there’s not that much in reality coming through. What’s the incentive structure? Why is it exciting for the two of you? Thanks

A. What I think IBM has seen, and the other ones that actually first approached us, was that MongoDB is being adopted everywhere in their customer base and they’re seeing specific demand from their customers for MongoDB and they wanted to use MongoDB for their private cloud initiative. Their sales people actually are incentivized through quota relief to sell MongoDB. So this is not just one of those barney announcements.

There’s real motivation by IBM to activate its 7000 plus sales people around the world to resell MongoDB and they see a big opportunity in front of them. Why it’s attractive to us is that even though we’re a fast growing company, we only have a certain amount of reach and we’re very attracted by the opportunity to expand our reach through their presence in these markets and accounts and where they have a lot of influence, where they can embed MongoDB more quickly than, say, we would try to do ourselves. So we’re very excited about this relationship and we think it will pay dividends in the future.

Q. How should we think about the IBM relationship ramping in fiscal ’19? And IBM has their own cloud, so I am wondering if you’re going to have a partnership with their cloud as well, and will they be selling Atlas?

A. We are quite optimistic about the IBM relationship. We feel like it’s a real relationship. And as I said and the way it’s real is that their sales people are now incentivized to sell Atlas to their customers. We’re already seeing interest, in the field and there are already engagements happening in a bunch of different regions, but it will take time. It won’t be an immediate impact and it will take time for them to ramp the global sales force, but we should see the benefit of it over time.

Q - 5G commercial networks are starting to come online this year and so I’m wondering what does 5G mean to MongoDB.

A. One of the trends that we see very clearly is the rise of mobile applications, and MongoDB has been well suited for a long time for people to build mobile apps. Mobile apps tend to have a very high rate of change because people are constantly adding new features, fixing bugs and so they need a platform that can enable them to have high developer productivity.

Obviously, with certain apps, you can have thousands, if not millions of users and so you want a platform that can scale and with a distributed capability, you also want to have fast or low latency read/write access and so MongoDB is well designed for those kind of use cases. 5G only plays to our strength because it will encourage people to build higher performance, more content rich, more streaming content, video and so forth that requires more bandwidth and that plays well to MongoDB.

Q. The two big deals you talked about being sold on the AWS marketplace. Were those sold by the AWS sales force, or by you guys, or by self-service?

A. They definitely sold by us, Brad, but I would tell you that the AWS sales team really worked with us to make sure those transactions happened. Obviously it’s early days, but it was a really great sign of partnering in the field, and we’re really excited about what the future may hold there.

Q. Could you comment about the competitive environment, and in particular about Microsoft’s Cosmos?

A. Sure. We feel very comfortable about our competitive positioning. We customers who have tried Cosmos and frankly the feedback we’ve heard has not been that positive. They’ve tried to make Cosmos work because they were already in Azure, and have realized that Cosmos just couldn’t meet their needs. They came to MongoDB.

We’ve had some large relationships who have strategic partnerships with Microsoft who had every incentive to try and make Cosmos work and it didn’t work for them. Now, there’s no question, being a cloud provider that they’re definite getting business. But when it comes to head to head, we’re feeling very comfortable of our positioning and we feel very excited about the future.

Q. What is aggregation framework?

A. What an aggregation framework is, in layman’s terms, is the ability to process and analyze data inside the database.

Most NSQ databases do not have this capability. It’s one of the things that really distinguishes MongoDB from other more modern databases.

Relational databases have this capability, but relational databases suffer from the problem of being an architecture that was built 40 years ago and so they have trouble scaling and having resiliency in their platform.

So what MongoDB does is gives you the benefits of a relational database with the power to scale and the flexibility of a modern database, which is why it’s such an attractive platform for developers. And so that’s essentially what the aggregation framework does and it’s a very attractive part of our value proposition.

Q. You said that people are in the evaluation process of MongoDB 4.0 right now. Could you discuss the level of interest you’re seeing and how optimistic are you of a potential uplift from this product.

A. The interest has been extremely high. This has probably been the most requested feature for a number of years. So when we announced it in February, there was a huge amount of receptivity. It’s also generated a bunch of new engagement with customers and prospects and frankly it’s allowing us to be more strategic. The beta version of the software is available for people to use and test. The feedback has been very positive and we expect to make it generally available it in the near future.

My thoughts, revised: They are growing the business very fast, but not shrinking the losses. The conference call reassured me that there is an enormous amount of stuff going on and I feel much more positive after reading it.

Best,

Saul

For Knowledgebase for this board,
please go to Post #17774, 17775 and 17776.
We had to post it in three parts this time.

A link to the Knowledgebase is also at the top of the Announcements column
that is on the right side of every page on this board

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I thought biggest tskeaway:

Atlas was 15% of revenue yet growing 400%. That will become material and significant extremely fast. This is also prior to the 4.0 ACID release, which will further increase Atlas growth.
May be a bumpy ride with recent upswing, but this looks like a potentially huge long term winner.

Dreamer

“MongoDB Atlas, the company’s managed cloud database-as-a-service offering, continues to see significant momentum in both our self-service and direct sales channels, driven by the popularity of MongoDB and major secular trends around cloud adoption and database modernization. Less than two years since its launch, Atlas comprised 14% of total revenue for the first quarter of fiscal year 2019, representing over 400% year-over-year growth. Atlas added approximately 1,000 customers in the quarter, representing a wide range of businesses and workloads across industries, geographies and use cases.”
MongoDB, Inc. Announces First Quarter Fiscal 2019 Financial Results https://seekingalpha.com/pr/17185354?source=ansh $MDB

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Atlas at 15% is approx $6m. And at 400% increase means it was at $1.5m a yr ago.

This is micro business for the future of a co valued at 2.5 billion.

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Rizz,

15% of $200 million is $30 million. Next quarter Atlas will be an even higher percentage of business. Thus Atlas annual revenue will be greater than 15% for 2018. Let’s just call it 18%. $200 million x 18% is $36 million for the year.

For 2019, this could easily double or triple given that it was up 400% YoY. So $72 to $108 million for 2019 if growth continues at slower but still fierious pace.

I do not call $36 million n for this year a micro business. Certainly not a $72 million to $108 million business for next year.

You need to annualized your number.

Tinker

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With all that talk about the IBM partnerships, I wonder if Mongo might be a ripe buyout candidate. If IBM decided to buy them, that might be quite sad other than a short-term quick gain for any MDB shareholders.

volfan84
long MDB Aug 2018 $55 call options

@Saul - Your highlight of the IBM relationship was something that I also thought was very important in my review of the call. Even though IBM has sort of lost its way in the cloud, they still have an enormous clientèle of exactly the stodgy “heartland of America” non-first-mover businesses that Mongo needs to penetrate. IBM salespeople are always under quite a bit of pressure to make their quotas, so having this count against their quotas is helpful.

In addition to helping Mongo penetrate 2nd or 3rd or last movers, this is also really helpful for Mongo in building out its enterprise sales force. As I wrote in another post, “they are spending a ton of money on sales and marketing, but until about a couple of years ago, there was no significant enterprise sales force at Mongo and their sales were by word-of-mouth. Expect lots of expenses as they spin up an enterprise sales force. They will spend lots on senior consultants, architects and developers who can provide pre-sales and after-the-sale support to enterprise customers. They are building an infrastructure that will enable them to sell to enterprises for decades.”

IBM has exactly the enterprise sales force with management consultants, architects, and developers that Mongo needs to build up. Mongo will both be able to use the IBM team in some engagements (ideal for both as Mongo gets the deal and penetration into a client, and IBM gets the service revenue), and will also be able to leverage IBM processes in building up its own team. Over all, I think this is enormously positive over the mid-term. The biggest impact of the IBM deal won’t be in next quarter’s revenue, but in revenue acceleration in a year or two as they get into hard to penetrate clients who aren’t even thinking of Mongo or NoSql yet.

@Dreamer,Rizzz,Tinker
I think the Atlas number and its growth rate is enormously important. Mongo started as an offline database and came to cloud hosting really late. Cloud hosting is how they are going to monetize a very significant, and ever-increasing, part of their growth moving forward. It may not be a significant part of their revenue yet, but it is key - if their cloud-hosted growth slows significantly, the investment could be in trouble.

Over all I think they had excellent results this quarter - this is a growing company transitioning from developer sales to enterprise sales. They have their eye on the ball and are focusedly executing in just the areas they need to:

  1. Enterprise sales

  2. Cloud sales

  3. R&D (ACID transactions with 4.0)

For Fools worried about their sales and marketing spend - I would say to set your expectations. Expect very large spend on their enterprise sales force for at least a year, after which it should level off and eventually reduce substantially. It takes time to build out an enterprise sales and service group that can hand-hold enterprise clients. This group can eventually turn profitable, but it will only be able to charge for part of post-sales support, and not at all for pre-sales support, so it is not meant to be a big services money maker - it enables huge enterprise subscription and Atlas sales.

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Saul - Your highlight of the IBM relationship was something that I also thought was very important in my review of the call. Even though IBM has sort of lost its way in the cloud, they still have an enormous clientèle of exactly the stodgy “heartland of America” non-first-mover businesses that Mongo needs to penetrate. IBM salespeople are always under quite a bit of pressure to make their quotas, so having this count against their quotas is helpful.

Hi SteppenWulf,
Bert just came out with a long Mongo write-up for his subscribers, which I assume will be available in 48 hours or so on Seeking Alpha. I won’t steal his thunder, but he did point out that he doesn’t have a lot of confidence in IBM’s salesforce, but that this deal will be seen as a strong endorsement of Mongo’s technology, especially since IBM is a founder of SQL, which Mongo is competing against.

Saul

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Hi SteppenWulf,
Bert just came out with a long Mongo write-up for his subscribers, which I assume will be available in 48 hours or so on Seeking Alpha. I won’t steal his thunder, but he did point out that he doesn’t have a lot of confidence in IBM’s salesforce, but that this deal will be seen as a strong endorsement of Mongo’s technology, especially since IBM is a founder of SQL, which Mongo is competing against.

Saul

–

I had same reaction to the IBM salesforce thought.
However, there is no downside to it…I just wouldn’t put a ton of stock into it.
What will accelerate growth further is the number of other vendor partners and channel partners that are actively selling MongoDB. I don’t see them in my world much, but I am not in business of selling DB software solutions, so my anecdotal experience isn’t worth much there. I can try and dig in and better understand their channel strategy and report back. Net is that the bigger a company and their market share gets, the more channel partners get on board with selling it. NVIDIA is a classic example, as they were previously more of a enhancement only to notebooks and desktops in the PC/gaming world. Now it is all the rage for GPU-enhanced servers and cloud-based GPUs, etc… So as NVIDIA grew their data center business, the more and more I receive training webinars that include NVIDIA GPUs as part of the solution, etc…

The other point is IBM is more focused on cloud/software now. So while their hardware biz has declined and/or been sold off largely to Lenovo, I believe it is probably the software sales team that would carry a MongoDB number, and not the hardware sales team selling the AIX/Power system products. But I am not sure. Assuming the sales guys that focus on security, cloud, and software at IBM are getting paid on MongoDB, that is not a bad thing at all.

https://www.ibm.com/investor/att/pdf/IBM-1Q18-Earnings-Chart…

I would be more excited if the DellEMC, HPE, or Cisco sales teams had this arrangement. When Nutanix announced their DB-in-cloud offering: https://www.nutanix.com/products/era/ I asked around if it would support MongoDB. Given that Oracle is the big boy in DB market, they first focused on that, and then likely will have support for SQL and eventually MongoDB too. Would be cool to think Nutanix sales force may be directly/indirectly helping fuel MDB sales down the road.

Dreamer

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Hi SteppenWulf,
Bert just came out with a long Mongo write-up for his subscribers, which I assume will be available in 48 hours or so on Seeking Alpha. I won’t steal his thunder, but he did point out that he doesn’t have a lot of confidence in IBM’s salesforce, but that this deal will be seen as a strong endorsement of Mongo’s technology, especially since IBM is a founder of SQL, which Mongo is competing against.

Saul


I wonder how much of an impact Bert’s note might have had so far in relation to Mongo’s 6+% rise on the day today.

-volfan84
long MDB Aug 17 2018 $55 calls (up about 68% on the day as of now)

[Bert] doesn’t have a lot of confidence in IBM’s salesforce, but that this deal will be seen as a strong endorsement of Mongo’s technology, especially since IBM is a founder of SQL, which Mongo is competing against

I totally agree that the IBM endorsement is huge - especially on IBM’s clientele which is not your tech first-mover.

It’s also hard as an IBM partner to get IBM to sell your products, but it is helpful that it is included in the salespeople’s quota, as was revealed in the Mongo call. I had an IBM partner consulting company in the past, and I did get significant help from them on some engagements, but that was because I had built up personal relationships with the sales leaders in the geography and because our sales included IBM middleware or data products that satisfied their quota. Mongo won’t need to worry about the IBM content part of the equation (since Mongo already counts against their quota), but they will need their enterprise sales team to create relationships with the IBM salesforce in their areas (geographic or industry) in order to be effective. This takes time to build, and most startups don’t put in the effort, which is why they don’t find it effective.

The more important thing is that in order to sell into the enterprise, Mongo needs to build up technology expertise in solving enterprise problems. They can no longer just be database experts, they need data architects and solution architects who can make Mongo a part of solving a company’s enterprise problem, in order to close the sale. They are hiring these people now - but they are high paid, not easy to get, often have expertise in different target industries, and it takes time to build up all the collateral they need to work effectively.

IBM has all these people already embedded sales teams and in clients, and if they are motivated to use Mongo, they can bridge the gap and greatly speed up enterprise sales closings until Mongo has its own experts. Presuming Mongo players are part of this sales team, they’ll also get access to relevant collateral from IBM that they can tweak to create their own collateral.

So over all, I’d respectfully disagree about the lack of confidence in the IBM relationship. Depending on IBM to sell Mongo is not likely to turn out well, which is why it is unlikely to have a big effect on the next 2 quarters. But using IBM expertise and endorsement to greatly accelerate enterprise sales in slower moving industries is a great strategy that could have material effect on results after a few quarters.

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Most NSQ databases do not have this capability. It’s one of the things that really distinguishes MongoDB from other more modern databases.

Relational databases have this capability, but relational databases suffer from the problem of being an architecture that was built 40 years ago and so they have trouble scaling and having resiliency in their platform.

So what MongoDB does is gives you the benefits of a relational database with the power to scale and the flexibility of a modern database, which is why it’s such an attractive platform for developers. And so that’s essentially what the aggregation framework does and it’s a very attractive part of our value proposition.

Q. You said that people are in the evaluation process of MongoDB 4.0 right now. Could you discuss the level of interest you’re seeing and how optimistic are you of a potential uplift from this product.

These are two features that MongoDB has that no other material NoSQL database has, and MongoDB continues to move forward at greater pace and focus than its competitors.

Steppenwulf explained this when he explained that since MongoDB owns this open source database, the code is available immediately for improvements, and not after the fact, and this gives MongoDB a year or two time to market advantage over other opensource competitors.

I am sure that MySQL has similar advantages as Oracle owns them, but that is an SQL database.

Before I hear it, SQL databases will remain the dominant database structure in the world for years and perhaps decades to come. That is irrelevant to Mongo.

NoSQL has less than 1% marketshare of all enterprise ready databases in the world (the $65 billion and growing market of all such databases). But NoSQL as a category is growing much faster than the SQL database category, with Mongo the clear leader by a wide margin (at least from every proxy data point we can find) in the NoSQL category. Thus, similar to Arista, Mongo is focused on the fastest growing segment of an otherwise slow growth market, while the product category consumes marketshare into the overall growing pie, and MongoDB will have the leading share of this marketshare gain in the category of NoSQL enterprise ready general databases.

The category of PaaS (which Mongo is part of) is also expected to be the fastest growing segment in cloud service businesses. Pivotal is also a PaaS.

I do not recall other elements that Mongo has that no other NoSQL database has (I am sure there are more), and there are things that a database like Cassandra might do better (there always is something someone else does better), but that does not matter.

What matters is that historically, and most likely this will continue, this is not a winner take all business, but a winner take most. It is economically efficient for developers to have a technology that becomes the standard for development. This should produce maybe up to 3 or 4 viable surviving general purpose NoSQL databases. Certainly CosmoDB will be one would think.

There will certainly be other specific purpose databases that hold unstructured data. Pivotal has their own, the Hadoop companies have their own, Snowflake is a big one out there, etc.

Nevertheless, the general purpose database is the big volume database where all general purpose applications are built upon, whether structured or unstructured database.

Tinker

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Q. On the IBM collaboration, can you give us a little bit more insight. historically, we have seen smaller software companies do deals with these large vendors and on paper they look good, but often there’s not that much in reality coming through. What’s the incentive structure? Why is it exciting for the two of you? Thanks

A. What I think IBM has seen, and the other ones that actually first approached us, was that MongoDB is being adopted everywhere in their customer base and they’re seeing specific demand from their customers for MongoDB and they wanted to use MongoDB for their private cloud initiative. Their sales people actually are incentivized through quota relief to sell MongoDB. So this is not just one of those barney announcements.

There’s real motivation by IBM to activate its 7000 plus sales people around the world to resell MongoDB and they see a big opportunity in front of them.

Ugh. The query is dead on. Before I even start, let me say that I’m not trying to build a contrary case here. I’ve used MongoDB. I like MongoDB. I don’t know much about the financials of MDB, and have no bull or bear position on the stock. But, if anyone is thinking that this IBM deal is going to have a material impact, I’m fairly skeptical. There’s a bunch of reasons for this, and the question above is only the tip of the iceberg.

  1. IBM is very siloed. It sounds like this deal is inked with the hybrid cloud team. The hybrid cloud team isn’t focused on selling databases, and the IBM hybrid cloud team would have to fight an internal political battle to sell MongoDB over an IBM branded product.

  2. The IBM sales team is indeed large, but they also have a huge number of products and partnerships. Things may have changed a bit, because IBM is always trying to simplify, but I think there are several million product codes in IBM’s “Passport Advantage” catalog. Actually I think there are over a million in the highest tier “D part” (where IBM can offer support and will somewhat stand by the product). I’m not sure even sure MongoDB is in the highest tier. The point being, just because the IBM sales team can sell something doesn’t mean that they are actively selling it. Or have even heard of it. I was literally talking to several dozen people on the IBM sales team about databases last week and not one of them mentioned MongoDB.

  3. IBM still has competing products. They have at least one NoSQL database that I’m aware of (IBM Db2 Event Store), and it wouldn’t surprise me if they have others. Just because they can sell something, doesn’t mean that they won’t promote their own product line instead.

  4. So let’s imagine a big bank. The bank wants to use MongoDB for a new application. So the bank goes to MongoDB to buy $250,000 worth of MongoDB . But before they do, they realize they can buy MongoDB through IBM. They go to their IBM sales team, and convince IBM that they really do want to buy MongoDB and won’t buy IBM Db2 Event Store or any other IBM branded. So the IBM team agrees to give them a quote for that $250,000 of MongoDB. Since they are a big bank they have a pre-negotiated discount for all IBM software. For example, one bank I know has a pre-negotiated 93% discount on all software IBM sells. So the customer pays $17,500 rather than $250,000. And then IBM takes it’s cut. Let’s say that’s a 30% commission. So MongoDB would get $12,250 rather than $250,000. This isn’t exaggeration, I’ve seen these exact numbers. (Not for MongoDB, but for a different software company.)

In other words, for a company like MongoDB, the IBM sales team isn’t likely to move the needle significantly on awareness/usage. As Dev pointed out, those customers are already probably aware of MongoDB and their developers may already be using it. In reality, I don’t think that a lot of sales will happen through IBM that wouldn’t have happened directly with MongoDB anyway.

And I’m not even saying this relationship is a bad idea. In many ways, deals like this are a peace treaty with IBM. The agreement gives IBM a profit incentive to not fight as hard against MongoDB. It also gives MongoDB’s engineering team a channel of communication to talk with people in IBM’s cloud group, improving compatibility with IBM’s complimentary management and monitoring products. It might even open some marketing opportunities.

This has been a long ramble that I don’t the time to go back and clean up. But hopefully I’ve made the point that these IBM relationships are huge complicated affairs. And when I hear software CEO’s make these statements about how huge the IBM sales team is, and how much more market presence these IBM partnerships can provide, I know that they are either just trying to raise hype or they are very naive.

–CH

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I am going to weigh in here with some caution about the importance of the IBM reps getting quota credit. My husband is in tech sales, currently at NetApp, previously at StorageTek/Sun/Oracle and a handful of startups. Quota credit is hugely important, but not the same thing as having a quota to sell it. One year my husband had a quota of $90 million dollars, but in order to “make” quota he had to sell at least one unit of products: A, B, C, and 3 units of X which got triple quota credit and got you in a drawing for a spectacular vacation for each unit sold. After making quota you got 4X credit of revenue for each dollar over quota. Quota can change mid year, and do change a lot every year.

If you want sales to happen typically on a new product every rep with have to sell some amount of product X. Everyone carrying a quota is hunting for a way to get that new product into their accounts, (even if it it never installed, it happens). If you want future sales you need accounts to install, test, and put it into production. Lots of hurdles. Then it has to work, be better than the other guy, not break anything, and then find new use cases.

Just because the IBM guys get quota credit does not mean too much, it may be true today but it could end. So while it is a positive development, successful selling and use remain to be seen.

Flygal,
Long Mongo DB

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My husband is in tech sales, currently at NetApp, previously at StorageTek/Sun/Oracle and a handful of startups.

Flygal, have you taken any looks at Pure Storage? Any thoughts there, if there aren’t too many conflicts of interest for you to share.

Thanks in advance,
volfan84
long PSTG as my #2 position behind NVDA, a roughly 9-10% position with call options included

I am going to weigh in here with some caution about the importance of the IBM reps getting quota credit.

So I don’t want to keep beating this horse, but I think it is valuable to understand that there are different ways to take advantage of an opportunity.

Let’s all agree that in general, getting on the IBM sale partner list isn’t necessarily going to be enormously valuable by itself. You have to work it to get value out of that, getting relationships with individual IBM reps, and that depends on you having an enterprise sales force of your own that develops those relationships.

Next, can we agree that getting the sale of your product to help cover the quota of an IBM sales agent is better than A (above)? IBM salespeople are extremely interested in covering their quota, and if they find/believe your product will help them get there, they will be motivated. This is still no guarantee, and there are the complexities that Flygal mentions.

Now let’s look at Mongo’s situation. This is a company that currently has a nascent enterprise sales force. Until 2 years ago, all their sales occurred directly to developers, or by developer-led initiatives. They barely had a Java practice (which is in 80% of the enterprise IT stack). Their examples were all in hot new languages that solo developers and startups used, but that were not used in any large enterprise. They had no solutions architects, no strategists. This is a company that had no way to approach an enterprise - they got into some because developers were so passionate about their solution, not through their own effort.

Mongo has started developing an enterprise sales force in the last couple of years. The hardest part of this is not enterprise sales people - you can hire these. The hard part is the technology services side.

Most enterprises of all sizes will want and expect hand-holding if they decide to move to Mongo. They’ll want sample solutions for their particular problems. They’ll want senior strategy and solutions architects to show them how it fits in their architecture and how it will solve their problems. It’s the same Mongo database, but if you want to sell to Sprint, you better not be using a GM or a Bank of America example, and you are dead in the water if you are using a startup example. And your developers, architects, strategists have to talk their specific dialect.

This is not easy to spin up from scratch. But guess what - IBM has this force probably better than any other company in the world. And these 2nd and 3rd movers who are Mongo’s targets are IBM’s most common customers.

So MongoDB doesn’t care if they don’t get direct sales from IBM - the key issue is that when they have a lead on a company with an IBM presence, they can get a referral from the IBM sales rep to the IBM services team. The architect they talk to can give them the type of help and background they need to close the sale.

This is why I think the IBM connection is worth a lot more than people are giving it credit for, and why the CEO was so hot on it on the conference call - it is filling in a critical hole they currently have in their enterprise sales team.

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Hi Volfan,

I am aware of Pure but I have not looked into them. It can be complex for me to invest in storage companies. If you look at my profile you can see my best investment was EMC, I invested in them, without my husbands knowledge. Why? Because he came home every day talking about the difficulties in competing with them. But he is loyal and would not want to bet against his employer.

One trend that is happening in Silicon Valley are clauses that forbid employees from owning share in competing companies. This is buried in codes of conduct, I know for example Workday has one but it is buried in a long document, I don’t remember exactly but guess 50 pages. They did not give a list of forbidden companies which would make the process clearer.

We do discuss tech companies, a lot. I have not convinced him to get involved in discussions of tech on the boards.

Flygal

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We do discuss tech companies, a lot. I have not convinced him to get involved in discussions of tech on the boards.

Flygal

Maybe SteppenWulf’s successfully-awesome pitch of Pivotal could help convince him :slight_smile:

My 600-ish% call options gain is certainly grateful and sees tons of value in this board and the NPI board.

volfan84
Long PVTL Sept. $22.50 call options
Long PSTG

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