>> Presenter: Live from San Francisco, it's theCUBE, covering Oracle OpenWorld 2016. Brought to you by Oracle. Now, here's your hosts, John Furrier and Peter Burris. >> Welcome back, everyone. We are here live in San Francisco, for three days of wall-to-wall coverage of Oracle OpenWorld 2016. The big story, Oracle moving through the cloud. I'm John Furrier with SiliconANGLE. My cohost this week, Peter Burris, head of Research at SiliconANGLE Media, General Manager of Wikibon Research. Our next guest is Ashish Mohindroo, who is the Vice President of Oracle Cloud on the good old market side. Welcome to theCUBE, good to see you. >> Thanks John, same here. >> John: We have a mutual friend from Prasada. (laughter) Say hello. >> Hi Prakash! >> John: Prakash! He's good. Okay, entrepreneurs are all moving to the cloud, obviously it's a green field for them. But Oracle is a big company, this is clearly the mandate, this isn't cloud washing. People are saying oh they're cloud washing, but not really, Oracle is putting the effort in, we've been watching and documenting it. Obviously some critical analysis that's due here and there but for the most part, the progression is good, they're moving to the cloud. Can you give us an update because SaaS business, everyone sees that, knows that, the Platform as a Service, last year, was the big push, a lot of progress, so give us a quick one minute overview of what's the update on PaaS, Platform as a Service, and what's different this year about Infrastructure as a Service. >> Definitely, well thanks John, I think you hit the nail on the head with the fact that Oracle is the biggest secret in the industry, being the biggest cloud company, right, the most exciting cloud company in the valley. What we've really done is if you look at our numbers, we just announced our Q1 earnings, our business SaaS and PaaS business grew about 77%. It's the fastest growing SaaS and PaaS growth rate in the industry, compared to any other vendor, including Amazon, including Microsoft, and if you compare that to the Q4 numbers, where we grew at 66%, that was again faster than Amazon and Microsoft. So the market is expanding and Oracle is the fastest growing business in there. In addition to that-- >> John: By revenue or by percentage growth? >> By percentage growth. So we're close to about a $4 billion run rate on SaaS and PaaS as of Q1 FY17. >> That's across all the different, as a service? >> It's primarily SaaS, PaaS infrastructure and overall cloud revenue for us. >> John: Okay, got it. >> A big chunk of that is attributed to SaaS and PaaS. Now I want to give you some other statistics in terms of the size of our cloud business. You know there are about 98 million plus daily active users on a cloud. In addition, we do about 50 billion plus transactions a day on Oracle Cloud, right, so the massive scale, but we are operating across 195 different countries and growing, we have 19 plus regional data centers, I mean expanding more into China and Middle East, so the growth and the pace and the expansion of the business is massive and we believe that this market is growing at such an unprecedented rate that Oracle is well positioned to take advantage of that and really provide and end-to-end offerings to our customers. >> Larry Ellison in his key note last night and Rob Hope, our Editor in Chief at SiliconANGLE, who runs our editorial, grabbed the head line, his quote was Amazon, talking to Amazon, Amazon, your lead is over. Okay, what does that mean? What does that mean? Saying that your lead is over in the sense that we're closing the gap or enjoy it while you have it, we're coming after you? >> A number of things. One is that we're really making new exciting announcements into the infrastructure of the service play market. So you're going to hear within the next couple of days in terms of new offerings. We today announced the fact that we expanded our infrastructure's service capabilities from virtualized environments to also bare metal, which is something that Amazon doesn't offer. And the advantage of that is that companies can now run more high performance applications on bare metal service, versus being bothered by having to share that capacity to compute space with other applications and other customers. The other big thing what Oracle is doing is providing an end-to-end offering. So if you think about it, right, Amazon started out being with a compute layer. They said look, if you want to spin up a server, and just have to compute capacity, storage capacity, great, you don't need to invest in that, you don't need to buy it on premise, you can go to us. What customers are really looking for is yes, you can spin up a server, then what do you do next? You got to be able to build an application, you got to be able to scale that application, monitor that application, integrate that application, run analytics on that, and then at some point, do an end-of-life. So you want to have a complete application life cycle and management so you need an integrated capabilities. Today if you look at the public cloud offerings, you got to piece that together for multiple vendors. Even in Amazon, they provide you the basic services, but then you have to go to their partners to kind of fill in those pieces, manage multiple contracts, worry about integration, Oracle is providing an end-to-end capability. So today we also announced 19 plus additional services on our PaaS layer, from databases to integration, to IOT, so we are really providing you everything you need to not only get your data center moving towards the cloud but also your application development, integration, and management capabilities, that have not been available in the market today from a single vendor. So Oracle, with Larry, what he was really claiming was the market is up for grabs, we are the only vendor providing everything from end-to-end and we are going to be aggressively competing in the core infrastructure space with our new expanded offerings. >> What do you think Oracle's biggest advantage is? >> Sorry? >> What do you think Oracle's biggest advantage in the cloud is? I mean, you talked about the size of it, what do you think, fundamentally, is going to set Oracle apart from everybody else in the cloud? >> So part of that is the comprehensive nature of our offerings. From IAS to PaaS to SaaS. There's no other vendor that has that breadth. Customers are looking for a single throat to choke, in some ways, or a single vendor to deal with for a majority of the services, so we have a big advantage there. The second is our application ecosystem. If you look at the number of customers we have, the size of our offerings from ERP to CRM, to ACM, you can see that we provide everything, there's an economy around that, so customers want to build extensions, they want to integrate through these applications, and they really want to drive their business to one primary vendor, so Oracle has that advantage. The other stuff as we look at the cloud environment today, only 6% of all workloads are running on public infrastructure. That's growing at about 50% year over year. Now, 90% plus of workloads are still relying on on-premise environments, where do you think those are running on? Those are primarily running on Oracle infrastructures, whether it's Oracle databases, Oracle metalware, or also on-premise Oracle applications. So we believe customers want to have the same enterprise-grade capabilities on the cloud, which we've been working on for 40 years, now we learn from that experience, we learned from what our competitors have done over the last ten years, we bring that together to our new cloud infrastructure, PaaS and SaaS offerings. So from a technology perspective, the breadth perspective, and the customer experience perspective, we believe Oracle has a tremendous advantage, which is kind of hard to close a gap for it in terms of other competitors. >> The declining revenue on licenses, and the earnings call was pointed out, some color was given by Mark Heard on that but the growth in cloud was higher than the decline in on-prem licenses. And then Larry came over the top and said well, Microsoft has been moving all their customers to the cloud, we really haven't moved our people over. And then Mark Heard said we're in the long game, I'm kind of playing at that I want to get to a question, which is interesting, the database is very sticky. You guys have an in to all of your applications so it seems to me that the core of the show here is talking about infrastructure as a service, seem to be table stays low cost, high performance, comodotize the IaaS, and then move your customers over. Is that the strategy, is that just the timing? Am I over-reading into this thing, is it a conspiracy theory? >> What it is actually is that customers want high-quality, high-performance capabilities in the cloud, right? They've been used to building their own data centers. There's a reason for that. They could choose the infrastructure that they wanted, the servers that they wanted, the stories they wanted, the compute capacity they really needed, and they want the same experience on the public cloud. But cost was a big factor. So if you look at Amazon, it's very easy to get started but as your application scales, the cost starts to ramp, accelerate really fast, and customers are very wary of that fact that is this really a cost benefit for me in the long run to move to Amazon. One example is a company like Dropbox. That was in the news that brought back the infrastructure from Amazon to in-house, right? Couple of things for that, one was they wanted a better infrastructure and secondly they wanted to lower the costs. With Oracle, what we are saying is cost is a big factor for you to move to the cloud. We're going to take that away. We're going to make sure that you're getting the best performance, the best infrastructure, at the lowest cost possible in the industry, then we're going to give you capabilities to brace moving to the cloud, to migrate to the cloud. You're not going to say only build cloud-native applications in the cloud, but how do you take all these critical business applications, the core infrastructure that you're running today, and be able to transition that to the cloud, so we have new capabilities that we're introducing and infrastructures to servers, called Ravello Cloud Service, for example, that can literally do a lift and shift of all your V-Ems, of virtualized environment workloads, to the cloud. You don't have to rewrite them, you don't have to reconfigure them, all it does is simply point and click and you got them moving there. Nobody in the industry has that native cability coming with us. So we understand the challenges that other companies are going through, and we're giving them the capabilities and a path to move there. On top of that, Oracle went through a similar transition, so we learned a lot from our own internal transition. We went from on-premise systems to actually moving our internal systems to the Oracle Cloud. So we understood the pain, the challenges, and the opportunities that provided us to get that and we bring that same experience back to our customers. >> And as my final question for you, if you could take a minute and explain kind of what you do at Oracle but mainly, what going on in the field. As you guys take this to the customers, what are some of the things you're working on, do you have any events coming up, what's your road map for activities, and how are customers are engaging with Oracle? >> Very good questions, so my responsibility is go to market for Oracle Cloud, so especially for IaaS and PaaS. What we're noticing with our customers is every single conversation that we engage in, any size customer, whether it's a Fortune 500 customer, mid-size, or even a small company, they're all interested in either building out new applications in the cloud, migrating to the cloud, or really retiring their entire data center, and then moving all the workloads into the cloud. So we are noticing the tremendous amount of interest. They're all figuring out strategies of how do you get there. A lot of interest in hybrid clouds. So customers are going to start with new applications, up their applications in the cloud, but they'll still want to retain, because of regulatory compliance, security purposes, some applications in-house, so they want to know how do you kind of built out these hybrid cloud capabilities where you can have the same business model of subscription, metered offerings, within their own data center, and at the same time have the same flexibility to move to the cloud. So for that, we got to introduce our Oracle Cloud machine, or cloud customer capabilities that gives them that option, the flexibility to decide and move at their own pace. >> John: So a lot of education. >> Sorry? >> So you're doing a lot of education. >> Tremendous amount of education, we're actually going to be doing about a 50 plus city roadshow with our Cloud Days and Cloud World, close to OpenWorld. We're doing a lot of virtual-- >> So Cloud World is going to continue, we did the Cloud World in DC with theCUBE there, that was great. You going to do more of those regionally? >> We're going to do a global tour starting in October. We're actually going to be covering AMIA, APAC, North America, and even Latin America and South America so we're going across the world, going to different countries, I think we're covering about 50 plus countries in those events and basically spreading the word out and engaging with every kind of customer to educate them on Oracle and also give them a-- >> So big tent events in regions and then city events, satellite events to hub and spoke off those kinds of activities. >> Absolutely, yes. And doing a lot on the virtual as well, online. >> Yeah. Any virtual reality, walk into an Oracle database with my headset, look at this scheme, it's all screwed up! >> Ashish: That will be the next time around, we aren't there yet for that one. >> Thanks so much for sharing your insight and good luck with your activities, great to see you, thanks for coming on. >> Thanks John, thanks man. >> Alright, we are here live at Oracle OpenWorld and if you want to join the conversation, go to Twitter and check out the hashtag #thecube, go to siliconangle.com and check out the research at wikibon.com and of course, go to siliconangle.tv, I'm John Furrier, Peter Burris live here in San Francisco for Oracle OpenWorld 2016. In fact, there's more after this short break. (techno music)