E9: Tristan & dbt (or, Becoming the Industry Standard for Data Transformation)

Data Stack

The concept of the 'modern data stack' has become integral to understanding the role of dbt in data transformation. Timothy Chen notes that dbt is consistently mentioned in discussions about the modern data stack, alongside major platforms like Snowflake 1. Tristan Handy reflects on the evolution of this term, acknowledging that its origins are somewhat obscure, but it has become a central part of dbt's narrative 2. He emphasizes the importance of open-source projects in shaping this landscape, stating,

It's really a superpower if you can both like have a vision of the future and find ways of communicating it to the world.

--- Tristan Handy

This ability to communicate and engage with the community has been pivotal in dbt's integration into the modern data stack.

   

Momentum

Recognizing early momentum was crucial for dbt's transition from a project to a standalone company. Amanda Robson and Tristan discuss the moment they realized dbt's potential, marked by consistent growth and adoption 3. Tristan recalls a pivotal conversation with co-founder Drew in Washington Square Park, where they decided to treat dbt as a real product after seeing its adoption by companies like Casper. This decision led to the implementation of tracking tools to measure usage and growth, revealing a steady 10% month-over-month increase in open-source adoption.

We really didn't look at that line that much at the beginning, because as anybody knows who's looked at an exponential line before, at the beginning, it doesn't look exponential.

--- Tristan Handy

This realization prompted them to consider forming a company around dbt.

   

Open Source

The dynamics of open-source projects like dbt highlight the importance of timing and community engagement. Tristan explains that early momentum and community involvement create a flywheel effect, making it difficult for competitors to unseat established standards 4. He emphasizes that dbt's success was partly due to its early adoption and the consolidation of mind share within the community.

It's really a flywheel in the same way that like, you know, Amazon folks talk about like their, their business being a flywheel.

--- Tristan Handy

Additionally, Tristan discusses the strategic decision to eventually seek external funding to support dbt's growth, particularly as interest from Fortune 500 companies increased 5.