Goutham Veeramachaneni discusses the process of automating the building of Grafana images on DigitalOcean using Packer, a tool he had previously used for AMI building and deployment. He highlights the manual process of setting up Grafana images, which involves installing and configuring the application, followed by cleaning the droplet of logs and keys. To automate this, Packer is utilized with its builders and provisioners, allowing the creation of images on platforms like AWS EC2 and DigitalOcean. Veeramachaneni details the challenges faced, particularly with updating the apt package database and resolving security update issues, which were eventually overcome by setting the DEBIAN_FRONTEND environment variable to noninteractive. Although the automation simplifies updating Grafana on the marketplace, it still requires manual execution on his laptop, with hopes to integrate it into Grafana's release process using CircleCI in the future.