>> From the SiliconANGLE Media Office, in Boston, Massachusetts, it's theCUBE. Now, here's your host, Stu Miniman. >> Welcome to theCUBE, the worldwide leader in live tech coverage. We go out to the shows to help extract the signal from the noise, and we are really excited. Oracle OpenWorld's coming up and we have an exclusive here on theCUBE, first time, welcoming Larry to the program. Wait. This is not the Larry I was expecting. Who do we have here? I know, sitting over there, Brian Reagan, CMO of Actifio. Brian, great to see you, >> Stu. >> I feel like I have a differently Larry than I was expecting. >> Stu, it's always a pleasure to be here, and I mean this is a big day. Obviously we take, you know, databases very seriously. We take Oracle OpenWorld very seriously. It's an important show for us, and we're excited to bring Larry the Bear back for the second year in a row at Oracle OpenWorld. Many might know him as the Database Beast, and so, he's excited to be here. What other Larry were you expecting, just out of curiosity? >> Well, we're talking about Oracle and database at the center. There's a certain Larry that most people expect. I was in Oracle OpenWorld once and Larry didn't show up because he was at the boat show. The boat race. But- - >> Larry the Bear is a big boat fan, too, but that's actually one of the reasons why we're excited to be out there. The other Larry I think that you might be referring to, the other Larry is how they refer to him out there too, is really Larry the Bear's hero, and if you think about a database beast, someone who's really dedicated their lives to databases, they really wanna meet the one and only King of Databases. And so, you know, he wants to live his dream next week, and meet the one and only Larry, his namesake, and really bond. >> Well, he, you know, having been to that show a few times, they are ecstatic to talk about databases. You've just got, you know, non-stop DBAs geeking out, digging into the weeds, and, you know, database, we've said many times on theCUBE, is the stickiest of applications in the environment, but, you know, there's a lot of money spent on this and a lot of manpower, so, you know, taming that environment is definitely a huge challenge for enterprises. >> Absolutely. We think the same, and in fact, Larry believes that databases- - The only thing stickier is probably like a big vat of honey. So, this is a bear who was- - Have you seen The Revenant, Stu? >> I'm familiar with it, and it has me a little bit worried. >> Yeah, that really was Larry a couple years ago. I mean, it was just, you know, he was untamed. He was going out of control like many databases in a lot of enterprises, until he discovered Actifio, and really discovered what could become of giving him back time in the day to hunt for salmon or pick berries, or whatever it is that bears do in their free time when they're not dealing with large databases. I mean, that's what Actifio brought to him, and he really wants to share that next week out at Oracle OpenWorld. >> Okay, and tell me, you said Larry got to know Actifio, where did Larry come from? >> So, Larry's originally from Chicago. >> Big Bears fan. >> And Cubs, go Cubs. >> He's relocated to Boston now that he's joined Actifio, and he's really taken with the Bruins. I think he's excited for this season, but Larry has been really in the enterprise for his entire life, and has probably grappled with some of the biggest databases you've seen. Again, this is the database beast. Yeah, it used to be bad. >> Alright, Larry, anything else we should know about your background and what has you so excited about the show? >> Yeah, no, that's a good point. So, among the many things that Larry is eager to do next week, is to find out from others, you know, just what type of database beast they have in their data center. And in fact, he invites people to our booth number 3105, to come and share their experiences. In fact, for those who mention theCUBE and his appearance on the cube, we've got a special giveaway for them. But we're eager to- - We and Larry are eager to hear what people are dealing with out there in the database community and understand how Actifio can really help them solve their biggest Oracle challenges. >> Great. Any final things we should know about, Larry, before we send it? >> Obviously, I mean this is a- - You know, Larry is smarter than the average bear, Stu, and that's one of the reasons why he joined Actifio. He comes from a long line of IT centric bears. I mean, obviously, his cousin Smokey in the D.R. Arena. Yoga- - Yogi, rather. So it's, you know, very long bear history. He's excited about Oracle OpenWorld. He couldn't be more excited about being on theCUBE. He's been talking about it for weeks, and we're just excited that you were able to fit him in. >> Alright, well Larry, I hope your dream comes true and that you get to meet the other Larry at the show. Brian, always a pleasure to catch up with you. >> You too, Stu. >> Once again, thank you for joining us here on theCUBE. Be sure to check out theCUBE.net for all of our coverage and see us, and some of the interesting guests we get on throughout the industry. Thanks for watching theCUBE. (electronic music)

>> Announcer: Live, from San Francisco. It's The Cube, covering Oracle Open World 2016. Brought to you by Oracle. Now, here's your host, John Furrier and Peter Burris. >> Hey, welcome back everyone, we are live here in San Francisco. This is SiliconANGLE Media's The Cube. It's our flagship program, we go out to the events and extract the signal from the noise. I'm John Furrier, the CEO of SiliconANGLE Media, joined by co-host Peter Burris all week. Three days of wall-walk of day three. He's the head of research at SiliconeANGLE Media Inc., as well as the general manager of Wikibon research. Our next guest is Roddy Martin, VP of SC Supply Chain Cloud Product Marketing at Oracle. Welcome to The Cube. >> Thank you very much for the opportunity. I look forward to the discussion. >> Thanks for coming on. Really want to hear your thought leadership around the supply chain transformation, because it might be a little bit bumpy depending upon your perspective. But is a huge opportunity going on in every single theater of where software used to be a point solution. The cloud is now an opportunity for customers to think differently, and is a catalyst for essentially a business model change as well as a fundamental data-driven change. Your thoughts on this? What do you see going on? What are the key inflection points? >> So a very interesting part of my background is I came out of the brewing industry in South Africa. and then I led the supply chain practice at AMR Research, which today is Gartner. And we did a lot of studies on, what are companies doing to lead this transformation? Because it's a transformation of the interim business operating model of a company. This is not stitching data together in the traditional supply chain system sense. So one of the very first foundations that is really fundamental, and Gartner has done a great job of carrying the search forward, is the idea that every company progresses to an interim operating model in five stages of capability, and every one of those builds on the other. So they're either reacting in stage one's problem and never saw the shortage coming and ran out of product. Stage two is I performance improve around projects. Stage three is I drive functional excellence. And stage four I start working as an engine outside an operating model. In other words, I'm driving the business from what's happening in the market and I'm making sure that supply is matching demand. So it's very interesting and it's very important to consider that as the base foundation for this whole discussion. >> So that outside is interesting, we've heard this before, a lot of people are going that way, but there's no shortcuts. Can you talk about, cause you talk about the endpoint is then outside-in. >> Right, when you're operating as a demand-driven interim supply channel operating model, you can't run out of supply, right? So if you saw a change happening in the marketplace but there's nothing to supply, you've really just messed up the business. And so, each of these stages builds on every other stage. So functional excellence is: Am I good at planning? Am I good at product management? Am I good at logistics? Because those are the foundations for operating in the interim business model. This is why the Oracle's blanching in the cloud, in fact all of Oracle's developments in the cloud are so important because you're effectively building a new process oriented operating model that spins the entire business. If I started off with ERP systems and then I put logistics in place and tied it together, there's all sorts of disconnects in the business. When you pick it up in cycle times, you pick it in disconnect sometimes, they don't see changes to the marketplace for weeks. So, this overarching end to end supply chain operating model in the cloud is a fundamental enabler. >> So how do you gauge a customer? First of all, I buy everything that you said, but I want to bring up a point, because it seems to me that the theme of Oracle OpenWorld that traditional applications and I won't say, I'll just say the word Silo just to use it as a point, has been a specific domain specific thing. But to be end to end and be outside-in, which is the end game, you have to know how to talk and integrate with other systems which might have been a problem if you built the most badass end to end system. >> That is a part of the challenge and in fact, a lot of companies that I've worked with over the 15 years I've been researching this, they get stuck for that very reason. In other words, this is a re-engineering of the whole IT infrastructure versus having a thousand consultants come in and tie all my data together over a question of four years and move 15 instances of whatever system you want to one. >> So, if I question on the journey thing, you mentioned thousands of consultants, which customers are now seeing. They want faster mile posts, they want to see faster agility but a lot of the customers actually outline the journey for the customer. So they're saying, here's your journey and they shorten the mile posts for the deliverables. But they're the one getting paid for it so is that the right model, should they be outlining the journey for the customer? >> And they are. It's been very interesting because I was a partner with a major global consulting company for four years and I've been mixing with them here, they suddenly recognizing that this path to the cloud is something they've better get on the bandwagon because they're not going to have a thousand consultants deploying whatever ERP system you talk about as the future of IT. So, what's happening is the business is having much more of a say in this fast deployment, fast time to value, putting these new-- >> So they're driving the journey for parameters? >> They are gearing up for this new journey, the consultants are. >> So, let's get to the fundamentals behind all this and ask a question about it. At the end of the day, digital technologies give customers an option to do their journeys very differently whether in a B2B sense or a consumer sense. And as they use digital technologies, they're also giving data up and so we have now a combination where customers are getting something out of digital, they are demanding it as part of the engagement model. They are giving up data along the way, and the technologies for sensing and doing something with that data in business are now, we're not figuring out how that impacts business design, process design, and offering design. >> So, that's stage 4S, what we talk about is people, process, and technology versus, in the past, when you had stage one, two, and three. People as one set of projects, process as another set of projects, and technology as another set of projects. >> Yeah, I may or may not take some middlings with the model you put out, but it does matter. At the end of the day, what is driving this increasingly is that it used to be that the dominant consideration in, I think, and I'm testing you, the dominant consideration was assets. Where is the physical asset, where are the materials, where is the machine, and we'll focus our returns on this things and then presume that there's a demand for it and now we're getting all this data about demand and that is having an impact on how we talk about arranging the assets. >> That is the inside-out to outside-in. So, let me give you an example without mentioning companies. A major retailer and a major pharmaceutical company. They share pollen data, they share weather data, they mine Facebook to find out what are people saying about allergies, let's say in New England. And the ragweed's busting and they say, do we have the right levels of inventory, and they're moving inventory to make sure that people who aren't on Facebook are saying we can't buy this particular product. They're moving inventory, that's the difference. >> So, they're sharing data amongst themselves. >> Yes, and they're collaborating between retailers. >> Arguably a similar example, and a retailer that's actually not moving inventory but moving pointers and offering new channel options so that someone decides may not, that they know somebody's going to come into the store, the size may not be there but they can still get it to them that day. >> So, it's very interesting, Procter and Gamble, who I did a lot of work with, and this is public domain information, the CEO drove two fundamental transformation messages in the business. And they called it the two moments of truth. He said, we will always have our product when we say we've got a product. So, if we promote a new product, the consumer goes to the shelf, it will be there. Moment of truth number two, we understand why consumers choose and use our products. And you don't fix number two until you fix number one because if I wanted a small tube of toothpaste and I went in and there were only big ones, it's the wrong buying signal. So, what you're seeing is that whole flip to measuring what the market's looking for and shaping their demand and then making sure that the assets and the supply system is geared to deliver. >> Right, I want to ask you a question. First of all, I love that point, I love your point about the data, but here's the question: cause supply chain has been very instrumentation drive, okay, and that certainly is transforming but now you mention Procter and Gamble. We are living in an era where, in the history of business, you can actually now potentially measure everything. So how does that impacting the reconfiguration of the business model? I mean, Procter and Gamble has those moments of truth, every company will have a moment of truth which is, everything is now measurable so, advertising to employee things and everything. >> So let's take the asset story versus the on shelf thing, right, so when I have assets and I'm getting all the data out of my assets, what am I doing with all of that data, right? Because it's not connected to demand. What I got to know is what demand data do I really want to be able to move my assets to the right place. >> Peter: By the way, the shelf is an asset. >> Of course it is, yes. It's a sensing point and it's an asset. They own it, they replenish that shelf. So the point is, data is everywhere and now these, the consulting and the BPM organizations supporting and companies doing their own business process manner, they got to know what data is really important and what data from the outside-in is going to allow me to leverage a new operating model for my business and become digital. >> So, this is really awesome, I was talking with an Oracle executive last night at one of their customer parties and we had a conversation around this data sharing. This is a new, different behavior. This is a theme of the show that no one's really talking about but it's in plain sight which is there is a data sharing aspect of systems and vendors and companies. >> Roddy: That's why the cloud is so important. >> John: This is now impacting everything. >> Everything. >> How do companies go forward and do this? What are you seeing, is there a best practice, is there a starting point? Is there a five step process on that? >> Well, first of all, these transformations are being lead by the C level executive team in a business. This is now longer somebody who decides to buy a new IT system and plug it in to the business. So, the business is saying, how do we change the operating model of the way we work, right? So, and then, what are the capabilities, and this is where that five stage model comes in, what capabilities do we need to look at building over the next three years so that we can operate in this intent way because you can't wake up tomorrow and go from an inside-out asset driven business to an outside-in demand driven business in two weeks. It ain't going to happen. >> So what's the progression? What's the progress bar look like when you have that moment of an epiphany and say, you know, I'm the CEO-- >> What's the earning point of the business? If it's Procter and Gamble, I want X number of one billion dollars brands. If you're a pharmaceutical company, you want to launch brand new drugs and you want to do it at half the price and half the speed that you're used to. It's the business articulating, this is why the leadership teams are so fundamental, articulating what's the burning platform and then translating that back into the capabilities-- >> So you get a reverse engineer. >> Outside-In. >> Outside-In, I love it. >> The way our research says it, and it's very similar but I want to test this because it's, we say start with context. >> Yes. >> What are you going to do with your customer that you have to do better than everybody else? And then identify the community that you're going to do it with and identify the capabilities that are going to delight that community. So it's context, community, and capabilities. >> Now here's the context, further piece to context. If context changes, how quickly do I sense that change and how fast can I respond to that change? Because if I've got all my asset capabilities and my supply capabilities locked into one set of context and that changes and I now have to re-engineer my whole business, I may lose the whole show in the process. I got to see those changes as they are happening, literally in real time. This is where the internet of things, this is where demand shaping, demand sensing, retailers collaborating, supplies connected into supply chain, everybody sharing that information and the fact that not many people, they don't know how to do it. The culture of business is not yet at the points-- >> That's why the measurement thing I brought up, I mean Procter and Gamble, they used to say to their agencies, we know that 50% of our advertising is good, we don't know which half. So now they can measure it all just like in every other aspect so this is where the business model-- >> You also have to be careful about whether or not, again going back to context changes, measurements change, data can blow you away. You have to be very smart about how you do it so a lot of these intelligent things, machine learning, how the models get built, how the insides get delivered, all become very very important. Very quickly, I have two quick questions for you. One is really approximate to the conversation, one less so but the approximate one: IOT. IOT is, has many many applications. Certainly turning analogue data into digital data so you can build models is a crucial piece of it. But it also has another implication in how you enact the output of that model back into the real word. How does supply chain and IOT come together? >> So if you look at the studies that are being done by Oracle and Gartner et cetera on what's important to the supply chain, two things come up. One is visibility and the other is analytics. Right, so there's tons of data available, to your point just now. That data could cause massive noise to the business unless you know what you're looking at. I know companies that will say, 95% visibility of changes on their demand side is good enough but I'm good enough on the supply side to be able to adjust. But you got to know which data to look at. So I'm looking at on shelf. I'm looking at what consumers are choosing and using, I'm looking to see what of my contract manufacturers-- >> Peter: Analyze key constraints. >> Bingo, so it's not about, I think what we're all going to have to learn in the internet of things is we need, again, a cloud based internet of things platform that does the analytics. >> Because we can rewire things faster. >> Exactly, you can adjust the business to new scenarios based on what you're reading from the demand side and what you're reading from the supply side. >> So you're a great foil for my second question. My second question is you look back at the history, or the recent history let's call it, of strategy, very asset based, Porter said pick the industry that has the best returns, pick your position in that industry, then choose your games based on the five factor analysis that you want to play to get to that position. Very asset oriented, we're in control, that's going to dictate how things change. What you just suggested was a very very different way of thinking about strategy. >> Same fundamentals. It's the same fundamentals but it's allowing yourself to adjust those fundamentals based on what's happening in the market place. >> Peter: But you're not going to base it on just the assets. >> No, we're not going to base it on the assets unless you've focused on, like if you're an engineering company and that's all you make is machines, you can't suddenly start producing toothpaste, for example. There are, that's why I say it's a reconfiguration of those same principles but flexible enough to meet demand. >> So how does, how does the world of design and the world of strategy start to come together in C suite? >> Fundamentally, because it's the voice of the customer that starts to count. It's the voice of the customer that dictates the strategy. So if my customers don't want green Guinness for Saint Patrick's Day, don't make any, because it's going to hang around and get thrown away, right? So, the voice of the customer determines what's happening on the demand side and the supply side has to be agile enough to meet that need. >> So, I would suggest keep Guinness the way it is because it's damn good the way it is, so personally I would agree on the Guinness comment. No green Guinness. >> So, what's the South Africa beer? >> Castle Lager. Well, SAB, South African Brewery, has been bought by Anheuser-Busch InBrev, a massive big giant. >> We love beer and if there's any beer sponsors out there, we're happy looking for our Budweiser. We want a, maybe an IPA in there. Roddy, thanks for spending the time, coming in with you, appreciate it. Some thought leadership here on Reconfiguration and looking at some of the nuances that are really going to impact the buyers here on The Cube. Oracle Open will be back with more live coverage from SiliconANGLE's The Cube after this short break.

>> Narrator: 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. >> Okay welcome back everyone, we are here live in San Francisco for Oracle OpenWorld 2016. This is SiliconANGLE Media's TheCUBE. It's our flagship program, we go out to the events and extract the signals and noise. I'm John Furrier, the co-CEO of SiliconANGLE Media. My co-host, Peter Burris, head of research for SiliconANGLE Media and also the General Manager of Wikibon Research. Our next guest, CUBE alumni Amit Zavery, Senior Vice President and General Manager of Oracle' Cloud Platform, heavily involved in the platform as a service, where all the action is, as well as the cloud platform. Amit, great to see you, welcome back. >> Yeah, thank you. It's always a pleasure to be here. >> A lot of buzz, we're on day three of wall-to-wall live coverage, we got you at the end, so we have the luxury of one, getting your opinion, but also to look at the shows. So first, as day three kicks in, the big party today with Sting and the concert, but then the workshops tomorrow, pretty much ends tonight for the most part. What's your takeaway from the show? What's your vibe this year, what are you seeing, what's popped up at you at the show this year? >> A lot of things, I think one thing is there's a lot of maturity into adoption of the cloud, right, so we're seeing a lot of customers I speak to nowadays are talking about next, broader implementations, adding more and more capabilities into their services, no more just trying to try out things, a lot of production workloads been moving to the cloud. So very, very interesting conversations. And also I'm seeing a lot of different kinds of customers, typically, of course Oracle being in the very large enterprise software player, used to have large companies as the couple of folks I used to meet on a regular basis. Over the last couple of years, I'm noticing a lot of smaller companies who are probably, a lot of times I have to look up who they are, but they are doing very interesting projects, and they are coming here and talking to us. So I'm also seeing a very different audience I'm speaking to than I used to before. >> We had Dave Donatelli on earlier, Executive Vice President one of the main leaders now on the go-to market for cloud and all the converged infrastructure, and it's very clear to his standpoint, he's overtly saying it, putting the stake in the ground that if you run Oracle on Oracle hardware, it will be unequivocally the fastest, and it's an unfair advantage, and they've got to lap the field is what he said. Okay. Same for Platform as a Service, you guys have some success now under your belt this year from last. >> Yes. >> But it's not clear that Oracle has won the developers' hearts and minds in the enterprise, and winning the developers in general, Amazon has had that up their sleeve right now, but yet, you guys have a ton of open source stuff. So Platform as a Service is really going to come down to integration and developers. >> Yes. >> What's you guys' strategy there, and how do you see that playing out, because you need to fortify that middleware, that integration, that's APIs, that's a developer-centric DevOps way. What's your strategy? >> A lot of things. The one thing which you see from our Platform as a Service, we have been from the day one building it on an Open Standards technology, which is again end-to-end very broad and deep functionality. And we had a lot of history building out a platform, and we have thousands and thousands of customers who successfully deployed that. So our strategy going forward and what you see some of the announcements recently, as well as some of the use cases you might have heard from our customers, are customers who are really trying to install a broader platform requirement, not just trying to build an application, but be able to integrate them, be able to make sure they have ability to kind of take the data from it and be able to do analysis with it in real time as well as batch, and be able to publish that information whenever they choose to, and then work that in conjunction with any infrastructure as well as with any services, Software as a Service, systems applications. So this plays very well with our Software as a Service customers, they need a platform extension, so that's the developers we go after, we go to developers who are really also building brand new applications and need a platform which is Open Standard-based, and which is broad and deep and well-integrated. So that's really what we are seeing a lot of success from. So Amazon no doubt has success on the infrastructure side, but we have customers in just one cloud source to move the hardware, of course then allowing them to move up in the platform space as well, but they have very limited set of things which they still offer. We've been doing this space for many, many years, and now we may be able to provide the similar kind of breadth, which is to have on prem in the cloud, cloud natively built, with the right kind of APIs, right kind of interfaces, but a little higher-level services, so it's not very granular where you have to go and compose 15 different services together and build your application. I provide you as a customer, to a customer a very ease of use, and much more solution-centric platform. And that's really the differentiation we have there. >> So less moving parts on the composability, if you will. >> No we can do as granular as you want, but we also have composed in a way which is like okay, if we are looking at integration, for example, right, what are different kind of patterns you need in integration? You might want to be able to it to a file, you might be able to do it B2B, EDI basic integration, you might be able to do it through a process, you might do it through a messaging, might do a data integration. So we provide you integration cloud, versus saying that 20 services go at it, and then tomorrow you might not still understand what to use, what not to use. Customers can consume what they like in the integration cloud, and pay as they go in terms of what functionality they pick up. But as a developer, I don't have to go waste my time to figure out and learn the different tools, different stuff, and figure out how to make all these things work together. >> So the palette is becoming more enterprise-friendly. >> Sure. >> And on top of that, you're also providing a set of capabilities in the past platform that kind of replicates the experience developers have enjoyed certainly in the open source and the other world by making it easier to find stuff, to discover stuff, and then exploit and use stuff through the variety of different services. So as you look forward, how are developers going to change the way they spend their time? Moving from code, moving from composition. As we move forward, where will developers be spending more of their time? >> I think that over time, they should be spending time just writing either the code, or kind of extending the application they have. They shouldn't have to worry about DevOps, they shouldn't have to worry about all the underlying technologies required to build an application. They shouldn't have to worry about all the testing and the QA, which should be all part of the development life cycle, which we provide automated in the functionality. So developers, they should worry about what language they want to use, or what platform they want, what kind of framework I like, and who I'm trying to cater to, and what my user interface should be. And beyond that, all other things should be provided from the platform in terms of automation, in terms of simplicity, backup recovery, patching, upgrade, all that stuff should be automated as part of the platform provider. And that's a service we provide as part of our platform as well so that developers can focus on writing that application. And we make sure that we give you the choice, where you can pick languages you want, you can pick the standards you want. Open source and all the different things you might want to pick from, or something we have provided as well. But we give you that choice, it's not one or the other, and tomorrow if you want to move somewhere else, we'll make sure you can do that, because we are not locked into one way of doing things. >> So I know Oracle is historically very focused on professional development, but business people, well development is starting to happen elsewhere in the organization, >> Amit: Yes. >> not just in the professional developer community. So what used to be like building a spreadsheet, now has implications for some of the core digital assets that the business might run. How do you anticipate the definition of the developer evolving? The role of the developer, being able to provide these services to folks who historically might not have been developer, have them also be relevant, and at the same time collaborate with those pros. >> No, that's a very interesting point you raise, because I think more and more this idea of citizen developer, no code developers, a low code developer, whatever you want to use in industry. Many, many of them who want to be able to do quick and easy web building, their functional requirements and deliver that without having having to call an IT somebody to code it for you, or having to learn anything to code. And we have really made sure in a Platform as a Service we offer, there's lot of ease of use and quick drag-and-drop kind of tooling, we recently announced a visual code project, which is based on our application builder, composer kind of a service where you can drag and drop and create a very simple, easy to use application without having to write any code. Similarly, the integration side we do the same thing. We provide recipe-based integration, where if an event happens in one application I want to move that information to another application. As a developer I don't have a right to any single line of code. We provide the recipe or you can build your own recipe. I've shown it to my 13-year-old daughter. She was impressed, she did something from Instagram to Twitter by just using this application on a mobile phone. So similar, that's the kind of people we're going after from the line of business and business analyst, who don't want to write code but they have a business requirement and how can I make it easy and simple to use. So we're doing a lot of that work as well, and that's a very important part of our development community. >> Amit, talk about the competition, I mean obviously Amazon web services is clearly up there. We're kind of like thinking that it's more of a red herring the way it's talked about, because you have certainly the fundamentals with stall base, and you guys haven't really started moving your stall base over yet. When that comes, I'm sure that Wall Street's going to love that, but you have some time, some building blocks are being built out, but how do you guys have that conversation with customers, with AWS and Microsoft specifically, or even Google. How do you guys differentiate and where will you differentiate in the pass layer going forward? >> I think many things. One thing is of course our customers want to make sure they can preserve their investment while they move to the cloud. So we want to provide a platform which is hybrid in a way that they can take some of the information, they can run some of the things on premise, while they transition some of their workloads or move their applications to the cloud very easily without having to rewrite many of the step or retest anything. So that's something. Services we provide, we've created a lot of tooling around that to make it easy for them to do it. And the differentiation we provide to them is that, one, we will protect your investment. Second, the tools that are easy to use are out of the box. And third thing we do is to really make it compatible. We have commercial terms as well, which makes it easy for them take their work loads and move that without having to keep on reinvesting lot of the cost they put in place. >> One of the things that's not being hyped up at the show that's certainly popping out at us is integration and data sharing. We talked to the marketing cloud folks, we talked to the financial cloud folks, we talked to the retail, hospitality folks. Those once-traditional vertical apps still need big data to be differentiated at the domain level, machine learning and AI, and whether it's an IOT impact or not, same thing, but they also need to have access to other databases from other databases. >> Sure, sure. >> Retail, I didn't know if someone bought something over here, so how do you balance the horizontal play with still maintaining the integrity of the app level. >> Amit: Yeah. >> Seems like the past is the battleground for this architecturally. >> Yes, yes. No, I think you're right. I mean, if you look at typically every application customers we talk to nowadays, they have many data sources and data targets, systems underneath the covers, very very heterogeneous. And when we build our platform, we wanted to make sure that it is a heterogeneous support. Alright, so I can write from any database. >> John: That's built into the design. >> Into the design and it's already supported today. I can write from Oracle, DB2, Sequel Server, Hadoop, No Sequel, into again similar kind of back ends. Again Oracle or non-Oracle, we don't care really. We want to be able to support your infrastructure, the way you have invested in, and be able to move the data. So when the application should be gnostic of in terms of what you're using underneath the covers. And the platform extracts that out for you. So we have products and services. Today we have offering in the cloud something we call big data preparation, right, which allows you to take data sources from any kind of sensors, spreadsheets, databases, process that, do the data wrangling, prepare that information and write it into a big data lake, could be running Hadoop, could be running Oracle database or the data warehouse, could be running Amazon if they want to, and we don't really care then. >> So you're strategies offer services, >> Yes. >> On top of the core functional building blocks. At the same time, differentiating on extracting away component-level complexity. >> Yes. No doubt. Yes. And then we want to make it as simple as possible. There are things which we want to expose, we want to provide APIs for anybody who wants to really play around with things. We want to provide them also low-level capabilities if they want to get into that level, but we do also extract it out for, as you were talking about developers, we don't want to have to learn everything every time new capabilities and we provide that abstraction. >> Do you see tooling drives a lot of innovation. Do you see certain toolings becoming standard, not being abstracted away? Could you comment on that and share some color on what tooling will always be around. >> I think the tooling, what I've noticed over time and I think it's probably good to remain the same, every developer has a favorite tool, and we want to give them the choice to pick their favorite tool. I don't think that they should be, from the tooling perspective we have to make sure we can support every kind of program or developer in terms of how they want to write their code. As long as I can provide the interface to it, an API, or some kind of abstraction, and then the developer can go at it. I was a developer and I had my favorite tool, and I still use VI. >> Some will say I'm a VI guy, EMAX, world will go crazy. >> It's okay! >> John: Did you see that VI got an upgrade after how many years, 35 years. >> Amit: It's still amazing, right, I mean people use it and that's fine. (laughs) >> We may get into the VI EMAX war. Amit, final question, just we've got to wrap up here. Thanks so much fitting the time to share the insights. We'd be able to do a whole segment on VI versus editors. >> Peter: Please. >> The plans going forward, can you share any insight in the priorities, what you're looking at from a product and P and L perspective, obviously the revenue growth, you want to drive more of that, but what are some of the fundamental priorities for you, any adventure doing, where you investing your development and marketing dollars? >> A few things, right, so I think one is you probably heard some of the things we're doing for helping developers learn how to use a platform, right, so we're doing a lot of training and code samples, as well as developer-centric content globally. So that is one. Second thing you'll hear about us, the ability to kind of run our platform both on premise and in the cloud, so we have the customers can choose where they want to run it, be able to run it on their data center of choice, as well as they can get the benefit of running in the public cloud. Depending on regulation requirements, whatever it is. So you see evolution of that, but all of the platform we have in the public cloud also, we let the customer to choose. The flexibility's the big, big important part for a lot of enterprise customers, so they're getting to choose. >> John: You're going to continue to do that. >> 100 percent. I think it's very very important that they should not be tied into one, and they should be able to move away if they choose to, not be locked into one way of doing things. And third thing we're doing is we're really bringing together lot of infrastructure, platform, and Software as a Service offerings. Very close and close together as an integrated platform cloud, right, which makes it very easy for customers to consume what they want, but don't have to keep on making it all work together themselves. >> So integrate at will, however they want to compose. >> Yes, so that way at least we'll see lot of functionality, you heard a lot of this this week, we can't keep up with the amount of announcements we've made, and you'll see >> I'll rephrase the question, so first of all great answer but I was looking for something else. How about next year when we interview you, looking back, what would you view as a successful year for your group? >> I think the success for us and the way I measure it is continue customer adoption and use cases evolution right. So today we have around 10,000 plus customers. I would expect by next year we are growing at a very very rapid rate and that another four or five thousand customers more who are doing interesting use cases and going live with it. >> John: Great. >> That a big success. >> Customers ultimately. >> Keeping them happy and as long as I deliver the right things, they will be happy. >> I always say look at the scoreboard in sports, and that's ultimately the differentiation, so that's going to be the benchmark. The KPI is the number of customers, happy customers. >> Yes. >> I'm sure Mark Hurdle will have that on his next earnings report. This is TheCUBE bringing you Amit Zavery's commentary, also analysis of Oracle OpenWorld. With more after this short break, we're going to wrap up. Live, here at Oracle OpenWorld 2016. I'm John Furrier with Peter Burris, you're watching TheCUBE. (light music)

>> Announcer: Live from San Francisco it's The Cube covering Oracle OpenWorld 2016 brought to you by Oracle. Now here's your host, John Furrier and Peter Burris. >> Hey welcome back everyone. We are live in San Francisco at Oracle OpenWorld 2016. This is SiliconANGLE, the key of our flagship program. We go out to the events, extract a signal from the noise. I'm John Furrier, Co-CEO of SiliconANGLE with Peter Burris, head of Research at SiliconANGLE as well as the General Manager of Wikibon Research, our next guest is Siddhartha Agarwal, Vice-President of Product Management and Strategy of Oracle Cloud Platform. Welcome back to the Cube, good to see you. >> Yes, hi John. Great to be here. >> So I've seen a lot of great stuff. The core messaging from the corporate headquarters Cloud Cloud Cloud, but there's so much stuff going on in Oracle on all the applications. We've had many great conversations around the different, kind of, how the price are all fitting into the cloud model. But Peter and I were talking yesterday in our wrap-up about, we're the developers. >> Siddhartha: Yeah. >> Now and someone made a joke, oh they're at JavaOne, which is great. A lot of them are at JavaOne, but there's a huge developer opportunity within the Oracle core ecosystem because Cloud is very developer friendly. Devops, agile, cloud-native environments really cater to, really, software developers. >> Yeah, absolutely and that's a big focus area for us because we want to get developers excited about the ability to build the next generation of applications on the Oracle Cloud. Cloud-native applications, microservices-based applications and having that environment be open with choice of programming languages, open in terms of choice of which databases they want, not just Oracle database. NoSQL, MySQL, other databases and then choice of the computeship that you're using. Containers, bare metal, virtual environments and an open standard. So it's giving a very open, modern easy platform for developers so that they'll build on our platform. >> You know, one of the things that we always talk about at events is when we talk to companies really trying to win the hearts and minds of developers. You always hear, we're going to win the developers. They're like an object, like you don't really win developers. Developers are very fickle but very loyal if you can align with what they're trying to do. >> Siddartha: Yeah. >> And they'll reject hardcore tactics of selling and lock-in so that's a concern. It's a psychology of the developers. They want cool but they want relevance and they want to align with their goals. How do you see that 'cause I think Oracle is a great ecosystem for a developer. How do you manage that psychology 'cause Oracle has traditionally been an enterprise software company, so software's great but... Amazon has a good lead on the developers right now. You know, look at the end of the day you have to get developers realizing that they can build excellent, fun creative applications to create differentiation for their organizations, right, and do it fast with cool technologies. So we're giving them, for example, not just the ability to build with Java EE but now they can build in Java SE with Tomcat, they can build with Node, they can build with PHP and soon they'll be able to do it with Ruby and Daikon. And we're giving that in a container-based platform where they don't necessarily have to manage the container. They get automatic scalability, they get back up batching, all of that stuff taken care of for them. Also, you know, being able to build rich, mobile applications, that's really important for them. So how they can build mobile applications using Ionic, Angular, whatever JavaScript framework they want, but on the back end they have to be able to connect these mobile apps to the enterprise. They have to get location-based inside and to where the person is who's using the mobile app. They need to be able to get inside and tell how the mobile app's been used, and you've heard Larry talk about the Chatbot platform, right? How do you engage with customers in a different way through Facebook Messenger? So those are some of the new technologies that we're making very easily available and then at the end of the day we're giving them choice of databases so it's not just Oracle database that you get up and running in the Cloud and it's provision managed, automated for you. But now you can ask for NoSQL databases. You can have Cassandra, MongoDB run on our IaaS and MySQL. We just announced MySQL enterprise edition available as a service in the Public Cloud. >> Yeah one of the things that developers love, you know, being an ex-developer myself in the old days, is, and we've talked to them... They're very loyal but they're very pragmatic and they're engineers, basically they're software engineers. They love tools, great tools that work, they want support, but they want distribution of their product that they create, they're creators, so distribution ultimately means modernization but developers don't harp too much on money-making although they'd want to make money. They don't want to be abandoned on those three areas. They don't want to be disloyal. They want to be loyal, they want support and they want to have distribution. What does Oracle bring to the table to address those three things? >> Yeah, they're a few ways in which we're thinking of helping developers with distributions. For example, one is, developers are building applications that they exposing their APIs and they want to be able to monetize those APIs because they are exposing business process and a logic from their organization as APIs so we're giving them the ability to have portals where they can expose their APIs and monetize the APIs. The other thing is we've also got the Oracle Cloud Marketplace where developers can put their stuff on Oracle Cloud Marketplace so others can be leveraging that content and they're getting paid for that. >> How does that work? Do they plug it into the pass layer? How does the marketplace fit in if I'm a developer? >> Sure, the marketplace is a catalog, right, and you can put your stuff on the catalog. Then when you want to drag and drop something, you drop it onto Oracle PaaS or onto Oracle IaaS. So you're taking the application that you've built and then you got it to have something that-- >> John: So composing a solution on the fly of your customer? >> Well, yeah exactly, just pulling a pre-composed solution that a developer had built and being able to drop it onto the Oracle PaaS and IaaS platform. >> So the developer gets a customer and they get paid for that through the catalog? >> Yes, yes, yes and it's also better for customers, right? They're getting all sorts of capability pre-built for them, available for them, ready for them. >> So one of the things that's come up, and we've heard it, it was really amplified too much but we saw it and it got some play. In developer communities, the messaging on the containers and microservers as you mentioned earlier. Huge deal right now. They love that ability to have the containerization. We even heard containers driving down into the IaaS area, so with the network virtualization stuff going on, so how is that going to help developers? What confidence will you share to developers that you guys are backing the container standards-- >> Siddhartha: Absolutely. >> Driving that, participating in that. >> Well I think there are a couple of things. First of all, containers are not that easy in terms of when you have to orchestrate under the containers, you have to register these containers. Today the technology is for containers to be managed, the orchestration technology which is things like Swarm, Kubernetes, MISO, et cetera. They're changing very rapidly and then in order to use these technologies, you have to have a scheduler and things like that. So there's a stack of three or four, relatively recent technologies, changing at a relatively fast pace and that creates a very unstable stack for someone who create production level stuff for them, right? The docker container that they built actually run from this slightly shaky stack. >> Like Kubernetes or what not. >> Yeah yeah and so what we've done is we're saying, look, we're giving you container as a service so if you've already created docker containers, you can now bring those containers as is to the Oracle Public Cloud. You can take this application, these 20 containers and then from that point on we've taken care of putting the containers out, scaling the containers up, registering the containers, managing the containers for you, so you're just being able to use that environment as a developer. And if you want to use the PaaS, that's that IaaS. If you want to use the PaaS, then the PhP node, JavaSE capability that I told you was also containerized. You're just not exposed to docker there. Actually, I know he's got a question, but I want to just point out Juan Loaiza, who was on Monday, he pointed out the JSON aspect of the database was I thought was pretty compelling. From a developer's standpoing, JSON's very really popular with managing APIs. So having that in the database is really kind of a good thing so people should check out that interview. >> Very quickly, one of the historical norm for developers is you start with a data model and then you take various types of tools and you build code that operates against that development for that basic data model. And Oracle obviously has, that's a big part of what your business has historically been. As you move forward, as we start looking at big data and the enormous investment that businesses are making in trying to understand how to utilize that technology, it's not going as well as a lot folks might've thought it would in part because the developer community hasn't fully engaged how to generate value out of those basic stacks of technology. How is Oracle, who has obviously a leadership position in database and is now re-committing itself to some of these new big data technologies, how're you going to differentially, or do you anticipate differentially presenting that to developers so they can do more with big data-like technologies? >> They're a few things that we've done, wonderful question. First of all, just creating the Hadoop cluster, managing the Hadoop cluster, scaling out the Hadoop cluster requires a lot of effort. So we're giving you big data as a service where you don't have to worry about that underlying infrastructure. The next problem is how do you get data into the data lake, and the data has been generated at tremendous volume. You think about internet of things, you think about devices, et cetera. They're generating data at tremendous volume. We're giving you the ability to actually be able to use a streaming, Kafka, Sparc-based serviced to be able to bring data in or to use Oracle data intergration to be able to stream data in from, let's say, something happening on the Oracle database into your big data hub. So it's giving you very easy ways to get your data into the data hub and being able to do that with HDFS, with Hive, whichever target system you want to use. Then on top of that data, the next challenge is what do you visualize, right? I mean, you've got all this data together but a very small percentage is actually giving you insight. So how do you look at this and find that needle in the haystack? So for that we've given you the ability to do analytics with the BI Cloud service to get inside into the data where we're actually doing machine learning. And we're getting inside from the data and presenting those data sets to the most relevant to the most insightful by giving you some smart insights upfront and by giving you visualizations. So for example, you search for, in all these forms, what are the users says as they entered in the data. The best way to present that is by a tag cloud. So giving you visualization that makes sense, so you can do rich discovery and get rich insight from BI Cloud service and the data visualization cloud service. Lastly, if you have, let's say, five years of data on an air conditioner and the product manager's trying to get inside into that data saying, hey what should I fix so that that doesn't happen next time around. We're giving you the big data discovery cloud service where you don't have to set up that data lab, you don't have to set up the models, et cetera. You could just say replicate two billing rows, we'll replicate it in the cloud for you within our data store and you can start getting insight from it. >> So how are developers going to start using these tools 'cause it's clear that data scientists can use it, it's clear that people that have more of analytic's background can use it. How're developers going to start grabbing a lot of these capabilities, especially with machine learning and AI and some of the other things on the horizon? And how do you guys anticipate you're going to present this stuff to a developer community so that they can, again, start creating more value for the business? Is that something that's on the horizon? >> You know it's here, it's not on the horizon, it's here. We're helping developers, for example, build a microservice that wants to get data from a treadmill that one of the customers is running on, right? We're trying to get data from one of the customers on the treadmills. Well the developer now creates a microservice where the data from the treadmill has been ingested into a data lake. We've made it very easy for them to ingest into the data lake and then that microservice will be able to very easily access the data, expose only the portion of the data that's interesting. For example, the developer wants to create a very rich mobile app that presents the customer running with all the insight into the average daily calorie burn and what they're doing, et cetera. Now they can take that data, do analytics on it and very easily be able to present it in the mobile platform without having to work through all the plumbing of the data lake, of the ingestion, of the visualization, of the mobile piece, of the integration of the backend system. All of that is being provided so developers can really plug and play and have fun. >> Yeah, they want that fun. Building is the fun part, they want to have fun-- >> They want relevance, great tools and not have to worry about the infrastructure. >> John: They want distribution. They want their work to be showcased. >> Peter: That's what I mean about relevance, that's really about relevance. >> They want to work on the cool stuff and again-- >> And be relevant. >> Developers are starting to have what I call the nightclub effect. Coding is so much fun now, there's new stuff that comes out. They want to hack with the new codes. They want to play with some that fit the form factor with either a device or whatnot. >> Yeah and one other thing that we've done is, we've made the... All developers today are doing containers delivery because they need to release code really fast, right. It's no longer about months, it's about days or hours that they have to release. So we're giving a complete continuous delivery framework where people can leverage Git for their code depository, they can use Maven for continuous integration, they can use Puppet and Chef for stripping. The can manage the backlog of their task. They can do code reviews, et cetera, all done in the cloud for them. >> So lifestyles, hospitality. Taking care of developers, that's what you got to do. >> Exactly, that's a great analogy. You know all these things, they have to have these tools that they put together and what we're doing is we're saying, you don't have to worry about putting together those tools, just use them. But if you have some, you can plug in. >> Well we think, Wikibon and SiliconeANGLE, believe that there's going to be a tsunami of enterprise developers with the consumerization of IT, now meaning the Cloud, that you're going to see enterprise development, just a boom in development. You're going to see a lot more activity. Now I know it's different in development by it's not just pure Cloud need, it's some Legacy, but it's going to be a boom so we think you guys are very set up for that. Certainly with the products, so my final question for you Siddhartha is, what's your plans? I mean, sounds great. What're you going to do about it? Is there a venture happening? How're you guys going to develop this opportunity? What're you guys going to do? >> So the product sets are already there but we're evolving those products sets to a significant pace. So first of all, you can go to cloud.oracle.com/tryit and try these cloud services and build the applications on it, that's there. We've got a portal called developer.oracle.com where you can get resources on, for example, I'm a JavaScript developer. What's everything that Oracle's doing to help JavaScript developers? I'm a MySQL developer. what's everyone doing to help with that? So they've got that. Then starting at the beginning of next year, we're going to roll out a set of workshops that happen in many cities around the world where we go work with developers, hands on, and getting them inside an experience of how to build these rich, cloud-native, microservices-based applications. So those are some of the things and then our advocacy program. We already have the ACE Program, the ACE Directive Program. Working with that program to really make it a very vibrant, energetic ecosystem that is helping, building a sort of sample codes and building expert knowledge around how the Oracle environment can be used to build really cool microservices-based, cloud-native-- >> So you're investing, you're investing. >> Siddhartha: Oh absolutely. >> Any big events, you're just more little events, any big events, any developer events you guys going to do? >> So we'll be doing these workshops and we'll be sponsoring a bunch non-Oracle developer events and then we'll be launching a big developer event of our own. >> Great, so final question. What's in it for the developer? If I'm a developer, what's in it for me? Hey I love Oracle, thanks for spending the money and investing in this. What's in it for me? Why, why should I give you a look? >> Because you can do it faster with higher quality. So that microservices application that I was talking about, if you went to any other cloud and tried to build that microservices-based application that got data from the treadmill into a data lake using IoT and the analytics integration with backend applications, it would've taken you a lot longer. You can get going in the language of your choice using the database of your choice, using standards of your choice and have no lock-in. You can take your data out, you can take your code out whenever you want. So do it faster with openness. >> Siddhartha, thanks for sharing that developer update. We were talking about it yesterday. Our prayers were answered. (laughing) You came on The Cube. We were like, where is the developer action? I mean we see that JavaOne, we love Java, certainly JavaScript is awesome and a lot of good stuff going on. Thanks for sharing and congratulations on the investments and to continuing bringing developer goodness out there. >> Thank you, John. >> This The Cube, we're sharing that data with you and we're going to bring more signal from the noise here after this short break. You're watching The Cube. (electronic beat)

(electronic dance music) >> Host: 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. >> Hey, welcome back everyone. We are here live in San Francisco for Oracle OpenWorld 2016. This is theCUBE. SiliconANGLE Media's flaghship program. We got out to the events and extract the signal from the noise. I'm John Furrier the co-CEO of SiliconANGLE Media with Peter Burris, my co-host, who's the head of research for SiliconANGLE Media as well as the general manager of Wikibon Research. Our next guest is Dave Donatelli, Executive Vice President of Cloud and Converged Systems and Infrastructure at Oracle. Cube alumni always coming on. Great to see you. Thanks for spending really valuable time to come and share your insights with us. >> Great to see you guys again. It's always a pleasure. >> So you did the keynote today, obviously the forces in the industry around Cloud, Oracle's got the whole story now. They got the IaaS V2, they're calling it. And now you have up and down the stack PasS and Saas, and under the covers, under the hood is the power hardware. >> Dave: Of the infrastructure, yeah. >> Very disruptive and we chatted and we wrote a story at SiliconANGLE, also on Forbes, about the destruction of the existing incumbents. So with that in mind, how did the keynote go from your perspective? What was your key themes and how does that relate to some of the disruption in the landscape of the industry? >> Okay, well, as a self-writer, I'd say the keynote went very well, but what I really talked about was Oracle offers people three deployment models. And I gave 'em kind of five journey to take to the Cloud. The three models are public Cloud, broad-based public Cloud. Second thing is traditional enterprise, which business we've been in for so long. And then a new category is what we call Cloud a customer. Taking our public Cloud and making that available to customers. And then the second thing I did in the keynote is talk about five journeys people could take to our public Cloud and it's everything from optimizing what they currently have in their legacy environment, to running hybrid Cloud, to running this Cloud a customer, to running private Cloud, and the fifth one is just, end what you're doing in the current way and move all public Cloud. So in the five journeys, just to drill down on that. It's five different paths the customer could take. >> Dave: Correct, all from a customer's perspective. >> From their current position to a Cloud endgame, if you will. >> Dave: Yes. >> And which one you think is the most dominant right now in terms of your view because obviously we'll go though those, but of the ones, beyond on-prem, which ones has the most relevance today in terms of customers that you hear from. Why I'd say two things, what I see and what I've seen the last year is the acceleration of movement to the public Cloud in literally since the start of the year has been massive. And what's really changed about a lot of it's coming top down. So you see CEOs, board of directors, CFOs saying we're going to go to the Cloud, even some companies are giving their IT departments specific requirements. You'll have 40% of our applications in the Cloud by 2000. So big acceleration there and in saying that what most customers are doing is something in the middle. They have their legacy that they've always been running. we look at it app by app by app. What's the most likely to transform to the Cloud? Which ones are probably just going to go away? Which one should we just redesigned and build net new in the Cloud. And so that means to me that hybrid is really, you know, the one that we see most often. People are running on-premise, they're running in the Cloud. They'll have a mix for some time until the on-premise continues to go away. >> What's the concept we heard from Chuck Hollis yesterday around this notion of Cloud quotas. He's seeing customers being kind of mandated to get to the Cloud, almost like a quota. Hey, where are you with your with your Cloud migration? So there's pressure certainly coming in but you introduced Cloud insurance. Is that not actually insurance, but as a concept, just explain what you meant by that. >> Sure. So what we mean by that is this, is that, as I, as we just talked about most enterprises, if you look at most of data out there says only 5% of applications have moved to the Cloud, so far. So that means a lot are still running in their data centers. But now you're going to go to your boss and you're going to say, "Hey you know I need to buy some new infrastructure.". And if you're a regular company, that's going to take three to five years to depreciate. So you go to your boss and say, "Hey, give me $10 million, I got this great idea. I'm going to put this new infrastructure in.". Well, what if two years from now your boss comes in and says, "Guess what? We now we need to move to the public Cloud.". With traditional infrastructure or with infrastructure designed by companies who don't have a public Cloud, you now have a boat anchor, right? I run big businesses myself and the last thing you want is equipment on your books depreciating that has no technical value. What we mean by Cloud insurance, is that everything we sell customers on-premise also has a public Cloud equivalency. Think of Exadata. You can use Exadata on-premise. We have an Exadata Cloud service you can subscribe to in the Cloud. So if you buy an Exadata on-premise today and they say we want to start moving to Cloud. You can say, "Great, I'll do things like test EV in the Cloud with my equivalent Exadata service.". They're fully compatible. It's got the same management. It's one push button to move data from on-premise to the public Cloud. No one else can do that. >> Peter: So you're really selling them a Cloud option. Whatever you buy you are also buying a Cloud option. >> What I say is I'm giving them assurance and insurance. The assurance is you're buying something today that you know will have a useful life going forward in the go forward architecture. >> Peter: And if you want to exercise hat option today, you can do so, if you want exercising three years you can do so. >> Exactly. >> No financial penalty to you. >> Exactly. And what most competitors are saying is hey, by the way you always did it and guess what? You don't have that option. >> Peter: It's your asset. So one of the things, I love the idea of the five paths, but paths are going to be influenced by workloads. So as you think about the characteristics of workloads, not big companies, small company, regional, those are always going to be important. Sophistication, maturity of the shop. But, as you think about workloads, going back to John's question, what types of workloads do you see coming in first? So for example, we're seeing a lot of on-premise, big data happening, but not as fast as it might because of complexity. We're starting to see more of that move into options that are more simply packaged, easier to use like in the Cloud. What kind of workloads do you think are going to pull customers forward first? >> Dave: Sure. Well, first remember we play in Saas, PasS, and infrastructure. And what we've seen if you look at our financials, is huge growth in SaaS and that's where people are saying, I am taking, you know, with GE here, as an example, Ge is taking their ERP, big global company, they're putting that in the public Cloud. HSBC was here, same story, big financial institution. They're putting that in the Cloud first. And the reason why they're doing it, is they think it gives you more flexibility, makes them more efficient, saves them money. Then, which really changed, and what we've evolved to, is with our new infrastructure Cloud now we can do anything. This is to your question. Anything that runs on an x86 server or spark based server, whether it's an Oracle application or not, you can either migrate it and run it in our Cloud. You can, you know, reimagine it using using our PaaS to redesign it, move it to the Cloud, it's everything. And we're seeing increasing rates of people walking through by app by app in their environment and doing just what we've said. What stays, what moves, what do we transform in the process? >> You seen a lot of the the movie at EMC, certainly your history, your career at EMC and then HP. Lot of industry had changed while you're, you know, in those shops, now here at Oracle. So I got to ask you now with the Oracle advantage and you guys are pushing from the silicon to the app, however, I forget how they word it, but it's silicon to the app, the end-to-end kind of thing. What's different from a design standpoint, from a technical, as the product development teams build it, what's the unique thing that's changed? And how's that render itself to impacting the customer? >> Dave: Okay, that's a great question. So let me give you the customer benefit first and I'll tell you why it occurs. what I said today from stage is that to run our, I'll use an examples of our software. To run our software there's no better place on earth than our infrastructure, and compared to their most likely alternative which is their self build, them buying an x86 server, them buying their own networking, them buying storage. We give people better performance, better end-user experience, easier to manage and most importantly it costs them less money. >> John: So knocking down Oracle on Oracle, boom. That's a baseline. >> Less cost versus you going to buy a server online at Dell and trying to put it together yourself. >> I buy that. >> Dave: The way we do it, is the fact that we have insights which we have designed, all the way into our software as well as into our products. So depending which product you're talking about, for instance in Spark, we embedded a silicon itself. Accelerators for things like encryption, for deencryption, for the ability to compress, to decompress. All kinds of things that matter and speed. At the same time we make a lot of changes to our software itself to make that run better with our Hardware. It's RIP. It takes a lot of engineering to do that, but simply put if you don't have the software stack, you know if you're someone who just builds hardware, you can't see the software, you can't make those changes. >> John: Well, you have the advantage. Obviously, you have have software that Oracle writes, you have systems that are engineered for Oracle software. Clear advantage, so you're saying unequivocally-- >> Dave: From a technical-- >> You blow everyone away. >> Dave: From a pure technical perspective, it is an unfair fight. We will win every time. >> John: Okay, so i buy that, so that, you win those rounds. Curveball is multi-vendor. Now we're into a multi-vendor because a lot of people have that technical debt now on the books, if you will, I don't know if that's the right term, technical debt, but they have legacy. It might be Dell EMC, it might be HP and other stuff. How do how do those shops deal with this Oracle infrastructure Cloud and non Oracle software. >> Okay, so two ways. So if you look at an on-premise, we make products that run both Oracle software, engineered systems to run both Oracle software, non Oracle software in the same machine. So you get all the accrued benefits we talked about but you can also host your applications that might not necessarily be Oracle, with us. In the Cloud itself, i think you heard, you know I thought Larry gave an excellent presentation yesterday and very clearly walking through what we do that's different than alternatives. And as we said, >> John: He was very aggressive on Amazon. >> Dave: But I thought he was very, I thought he was very fair in how you did it, right. He walked through it just the facts. This is what they do, this is what we do, this is why it's technically different. He didn't just come out and say hey, we're better than amazon he gave specific reasons why. >> John: He did that and he did that, he did both. >> But if you look at it, so even just running a generic app, that's non-Oracle, on our infrastructure as a service, what we said very clearly is, we have an infrastructure by the way it is architected, that has less noise, meaning so you get less performance disruption, so it runs faster. It's built with the newer hardware and at the same time in doing so because of our architecture we can offer that to people at a lower price than they'd otherwise get. And again I think those are very straightforward, very well articulated points to show the value and you know that opens up the whole world to us. As you know the x86 market is almost a $40 billion market on-premise. What we're saying now at Oracle is, we can do a better job for you in the public Cloud running any of those workloads. >> That's right now. I think the other thing that came out, we've talked about it here, is that the stream of innovation that's going to unload itself on the industry over the next few years, someone still has to do the integration of all of these different piece parts. They're going to be improved upon and that integration cost is real, and so you can look at that from a CIOs perspective, they can look at and say do I want to put my time into the integration, do I want to put my time into the application that's going to have a differential effect on my business. So you guys seem to be coming pretty strongly on we've got the baseline we need to do the, we've got the stuff that we need to bring the innovation in an integrated way into our packaging. >> Dave: That's correct and I think very well said. I believe we are the easiest company to work with, in bringing people from, in essence, their old architecture to the new. And that is because we've already done that integration work. We offer those architectures on both sides of the equation, current on-premise into the public Cloud and give you one management software structure to manage both. Anybody else is only going to work with you on one extreme or another. It's either, hey only do Cloud or only do on-prem. How you work with the other one, you as a customer stuck with that burden to figure out. Dave, I know you got to go to another meeting, but I want to get the final question to you to elaborate on. What you're most proud of now in your tenure at Oracle. Some things that have worked for you in the organization product-wise, successes you've had. You want to highlight a few? And what's your priorities going forward? You're now running the Cloud group as well as Converged Infrastructure kind of coming together. What are you most proud of? what is, could be people not things, like ZDLRA, I know is doing really, Juan Loaiza was saying it's a smashing success and we're not hearing anything about that. We heard about it yesterday, but so what are you most proud of and then what's your priorities going forward? >> What I'm most proud of about being at Oracle is we're an organization investing for our customers' future. So we're spending $5.2 billion this year on R and D and it's all about bringing out these products that fit the future for our customers and protecting their investments along the way. I'm very proud to be part of a company, because as you know in these big transitions, companies don't make it. Think of Deck, right? They're a leader, didn't make it through to the new transition. And we're one of these companies that's leading the new transition even though we also participated in the prior architecture. I think from a product perspective, I would say ZDLRA is a great one you brought up. It stands for Zero Data Loss Recovery Appliance. It is designed by our database engineers to fully backup and recover, as it says, with zero data loss, our database. And we've had a number of customers here, we had customers of the keynote today, very major enterprises at the keynote today was General Electric, who talked about how it enables them now to sleep. They don't get woken up at three in the morning. It gives some certainty in terms of how they recover. And most importantly, it saves them money. >> And you're in the hardware business, but you're not in the box business. You're actually have the software, it's again software enabled. Congratulations, I know you're attracting a lot of good talent as well. They did a great job and it's been fun to watch your success at Oracle and we're proud to cover you guys. We have some points we would disagree with you. If we had more time we can go into little detail, but thanks for spending the time and sharing on theCUBE. >> All right, a pleasure. Always great to see you guys. Live in San Francisco for Oracle OpenWorld. This is theCUBE. I'm John Furrier, Peter Burris, we'll be back with more after this short break.

>> Announcer: Live from San Francisco. It's the CUBE, covering Oracle Open World 2016. Brought to you by Oracle. Now here is your host, John Furrier and Peter Burris. >> Okay welcome back everyone we are here live in San Francisco for The Cube. This Silocon Angle Media's flagship program, where we go out to the events and extract the signal from the noise. I'm John Furrier, the co-CEO of Silicon Angle Media with Peter Burris, head of research for Silicon Angle Media. He's also the general manager of Wikibon Research. Check out wikibon dot com for all the latest research and cloud, big data infrastructure. And we're at Oracle OpenWorld 2016. I'm excited to have our next guest, Don Johnson, VP of engineering for product development for the Infrastructures as a Service for Oracle Cloud. Welcome to The Cube. >> Thank you. >> John: Thanks for spending the time to come on. We really appreciate it. >> My pleasure. >> And obviously Oracle's cloud last year was obviously the announcement they're marching to the cloud. A big building block in this, was Infrastructure as a Service. They had the sass. They're taking names, kicking butt in there and they're transforming. Platform as a service developing nicely this year, showed some progress. But the upgrade if you will, or reboot or reset, however you want to call it, was fundamentally to introduce the new stuff with Infrastructures as a Service, to kind of round everything off. Give us the update. What's the key new news for Infrastructure as a Service and why is it important? >> Well a couple things. Let me start with the last part of your question, why is it important. So, very broadly, I would say, There's kind of two strata of cloud. There's cloud platform and there's everything that's up above, apps, sass, etc. Cloud platform I think is a big category. It's broad spectrum but it's IaaS and Paas and then there's lots of stuff that falls inside of there. Iaas is a fundamental and foundational building block and all of the characteristics, that everything up above, relies on or requires is basically enabled by infrastructure If you want to run at massive scale, if you want network connectivity between place A and place B if you want intrinsic security, that's all things that are foundational characteristics and you either have them or you don't based on whether infrastructure IaaS gives them to you. And so, for us, for Oracle, we're a cloud platform company. This is a foundational piece, and we're investing in this very aggressively and we're driving in a very innovative direction on this. So, >> You've been at Amazon since 2005, just recently joined Oracle on the engineering side and you know, infrastructure right now we're seeing is a cost and performance game. Drive the cost down as low as possible while preserving scale and performance, real critical. And almost hardening the top if you will, creating a hardened infrastructure so that you can enable dev-ops and some coolness around agility all that good stuff above, on top of the could. So what's the key things this year that you guys filled in terms of product? What was the key innovations and, on the development side, what was the key sprint for you guys? >> Well, so what we've been announcing at IaaS is really our next generation infrastructure, which is two-fold. It is the infrastructure itself, what are data centers and networks and virtual network looks like and then it's a new suite of products that we put on top of this, bare metal cloud services. And this is the fruit of a big kind of back to basics foundational exercise where we have gone and redesigned everything from the ground up. We've done it with a focus on a bunch of core, core criteria. Core things that we wanted to, that we wanted to capture and that we wanted to do better, better than have been done in the industry to date. And I would characterize those as two-fold. First, we are bringing along, all of the best characteristics of the cloud and why the cloud is compelling and what people, use it for, Self-service, pay for to use. It's elastic; it's easy to use. It's, there's low friction. It's high-scale, etc. But there's a number of things that for our core customer-base, actually are very challenging in moving to the cloud. And when I say our core customer-base, if you have a large existing, you know, if you're an enterprise and you have a large existing infrastructure and deployment, typically on premise, you have a lot of constraints and it's difficult to actually move into this new environment and take advantage of all that it has to offer. And there are, this applies to how your applications will run there, the assumptions that they make, your security and controls. And so we've identified a number of areas that we fundamentally wanted to do better than they've been done before. Security, reliability, governance, the ability to manage, if you're a large complex organization, you have a large complex footprint and deployment in the cloud, the ability to manage it. Performance, performance is a broad spectrum. Peak performance, raw performance, predictable performance in a particular price performance. You're talking about performance and cost. And sort of an adjunct to performance is the ability to harness modern technologies because if you look at where storage is going, non-volatile RAM and technologies like Intel Crosspoint. How can you actually enable customers to get access to that and use it and harness what it offers, very, very quickly. And most, most of all really, flexibility. Sort of the choice and what I mean by that is when you're a cloud provider you, you kind of pick a, you pick a certain level at which you implement and define and build your abstractions, and then, that has consequences in what choices you actually offer. So let me be a little bit more precise about this. A core thing that we did, sort of the keys, the special sauce in any cloud platform is the virtual network. And we made a fundamental choice that the way in which we're going to do virtual networks is to pull the virtualization into the network itself where we think it belongs. >> John: So no hypervisor? >> It's not in the hypervisor. And so, what that means is first it means we're able to like the, the requirement that we have of something that we can plug into our cloud, your cloud, your virtual network is, it has an ethernet port. This means that we put, we can put anything into a virtualized network. Our whole infrastructure, you know the presentation to the customers is everything runs in a virtual overlay. It's all virtual network. But we could put any class of resource in there. We could do bare metal. We could do an engineered system. We can, honestly, we can take an arbitrary middle box from you know, any third party vendor. This lets us give our customers bare metal. Giving our customers bare metal means we can, we can take, so we provide bare metal, compute with NVME drives. They are phenomenal. There is nothing, like we're literally giving you a server in the cloud with a, you know, provision in minutes paid by the hour. And you get, in our biggest shape, you get in excess of four million 4k read-high ops. Like this is phenomenal power. So really there is nothing that stands between us, between the technology and us giving it to you. >> So that was the key design criteria, then? >> That was the key design criteria and so this you know, in terms of sort of, flexibility and preserving choice, this means, you know, principle you can bring any OS. You can bring any hypervisor. If you have some old stuff that's difficult to move, you can't break up our hypervisor. >> So you let the performance, everyone kind of speak for themselves if you will. So, the customer can put anything on this thing >> Yeah. And these are phenomenally powerful boxes. >> Okay so now, how does that compare with Amazon and Azure because the number one question I get is, and let me see if you can put some color around this. Obviously Amazon had a different thing. You guys had a clean sheet of paper and you took smaller steps, computed storage and built services and scaled up there. Azure had, kind of backed into it with their existing business and there portals and all their services and then now are moving their customers on there. So, the number one question I get is, well what's different with the IaaS on Oracle vis-à-vis AWS and Microsoft Azure. How do you answer that question? Is there a distinct difference? Is there a design philosophy? Is it? >> Well, the design philosophy for Iaas is what I was just articulating. And in essence it, it looks and acts very, very similar from the perspective of the customer, the user experience at scale. As well as, it preserves choice and flexibility and is amenable. Basically it is it is much more friendly to the large enterprise or large business that is outside of the, often times and typically, outside of the sweet spot of what an infrastructure like say Amazon was originally designed for. So as a principle, we are trying to meet our customers where they're at. From, they want to migrate over some apps and do it cautiously and maybe not change too much about them. And not see that as a constraint or an obstacle to get to all of the, all of the promise and power of, running modern applications in high-scale, highly available. >> Look in many respects, in many respects, cloud is naturally a network-centric compute model. >> Don: Yes. >> By putting more, by not putting network virtualization above the network but putting it into the network, does that also at some point in time give you greater flexibility, the option to bring even more of, >> Don: Absolutely. >> core work that's gone down into the network? So that you can actually start liberating some of the power of a real network computing model. Others can't do that right now. So if you think about it, what kinds of applications might that make possible in the future? Thinking about IOT for example, the ability to use a network model to describe how work gets allocated within a cloud of services? >> Well, I think the, the network ultimately, what you need it to do, there's a few things you need it to do. You need to very reliably and quickly move bits from place a to place b. You need it to it to have the flexibility sort of, as a topology to be able to put things in. And you need it to preserve, privacy and plugability. So the fundamental thing that I see our virtual network supporting and enabling, is basically building up a fabric of services, and letting us say, so everyone runs in a private overlay. We want to make it easy for any provider, ourselves as well as any third party provider, to inject micro-services into your, into your private network. We want to make it easy to be able to bring over traditional security controls, where, you want to, set up bastions and set up taps and be able to introspect you know, do, you know traditional IDS, IPS. So, I see network virtualization really as an enabler of, you know it's providing a fabric that lets you, that gives you great flexibility in wiring things together. I hope that answered your questions. >> So final question for you, what's next? So what's on the, what's the priorities on the to-do list for you guys as you go down, a two point five, a two point one? As they say at Microsoft, never make it an odd, an even number, make it a, you know. Two point one or two point five or three point o. What's next? >> There's a ton of things. So we're building up data centers and new geographies. We're going big. We're going to add a ton of skews. We're going to make bigger things, smaller things, adding, a ton more features really all across the board. So I don't know that I see it as there's a two point five. There's going to a rapid pace. >> So more slew of announcement >> Very similar >> Don: Yes. >> to the cadence we've been seeing at Oracle and Amazon traditionally had started that trend. Larry couldn't even finish the keynote on Sunday because the announcement stream was so large >> No we have a, you'll see a constant string of releases on a, you know, a weekly, monthly, quarterly basis. There's just a ton of stuff coming. We have a ton of features to add. We have a ton of interesting new services to add. >> So the pace is fast. You're running hard? >> Don: The pace is very fast. >> Well, congratulations and looking forward to following you guys and your success. Love the agile mindset. Love to see that cadence of shipping stuff, moving really, really fast and appreciate, >> Alright. >> you spending the time. >> Don: Thank you very much. >> Sharing your insights. The Cube live here at OpenWorld. You're watching The Cube. Back with more live coverage here in San Francisco after this short break. (softly intense techno music)

(upbeat synth music) >> Narrator: Live from San Francisco, it's The Cube, covering Oracle OpenWorld 2016. Brought to you by Oracle. Now, here's your hosts John Furrier and Peter Burris. >> Hey, welcome back, everyone. We are here live in San Francisco for Oracle Open World 2016. This is SilconANGLE Media. It's The Cube, our flagship program, where we go out to the events and extract the signal from the noise. I'm John Furrier, the co-CEO of SiliconANGLE Media, joined by my co-host this week, Peter Burris, head of research at SiliconANGLE Media as well as the General Manager of Wikibon Research. Our next guest is Hari Sankar, who's the group Vice President of Enterprise Performance. Welcome to The Cube. >> Thank you. >> Thanks for joining us today. So, one of the things that you're in is performance management but in a different way, kind of a CFO perspective. >> Hari: That's right. >> Which this show is all about, ROI, total cost of ownership. But Oracle has a lot of software, finance software. First, take a step back and spend a minute to describe what is performance management and your role at Oracle. >> So traditionally, performance management is really about how finance sort of manages the overall business performance of a company. It's about things like forward-looking things like planning, forecasting, and budgeting. It's about, sort of, backward-looking things like okay, our quarter is done, how do we close the books and how do we report the numbers both internally, for management recording purposes, and externally, to the street and various stakeholders. So there is the compliance side to it. There is a strategy side to it, and these things have been traditionally what is performance management. What we are seeing now is that kind of discipline is now going beyond finance into operating lines of businesses, sales and marketing and manufacturing and so on. >> The, the-- >> One of the things, sorry, John, I think one of the things that is really interesting, especially in light of this show, is as we go through a process of digital transformation, where data becomes one of the most important assets in the business, that means that the asset specificity, to use a finance term, the degree to which an asset has only one use, starts to go down because you can program it. So marketing, sales, all the assets, intellectual property, data-oriented, that they've been developing over the years now can be bought under the umbrella of Enterprise Performance Management. >> That is absolutely true. That is absolutely-- >> So how is that happening? >> So part of how this is happening is let's say you are a marketing organization. You are spending $50 million on digital marketing. Now, there is a desire from the part of the marketing department to sort of manage that spend more diligently with more discipline and drither, just like finance manages any other line item in the budget. There's more desire to provide transparency to the business, in terms of here's where we are spending it and here's where we are getting returns, here's where we are perhaps not getting returns. So that is the planning part of it, and then there is also the reporting part of it, where we are seeing the emergence of the concept of narrative reporting, where you are saying hey, look, I'm not just going to distribute numbers and charts to my stakeholders, whether it's inside the company or outside, I'm going to give them context, I'm going to give them commentary on these numbers. If there is a variance, I'm going to tell them why is this there. Do I expect this variance to be there next quarter? What am I doing about it? So, it sort of brings those numbers to life and avoids that back and forth that typically happens. >> How much is the Performance Management moving out of the CFO function, and I want to get your take on how the costs in IT is becoming not just a functional shared resource but IT is now integrated across the whole company. Mark Hurd had tweeted yesterday on Twitter, "As more CEOs and CFOs understand "the potential of the cloud, "CIOs are going to get a lot more help," implying Oracle is going to help them. But it brings up the point that the CIO now is brought into the CFO conversation, they always have in facilities and what not, but now from a business perspective their contribution is significant and now co-mingled is it. Do you see that trend happening and what does that mean for the software side of it? >> We're definitely seeing that trend happening. For example, the most important new term to come out in finance in some time is the notion of digital finance. >> John: The notion of what? >> Digital finance, right? So this is really about whether you call it digitalization or not, digital finance, digital marketing, digital sales. So this digital business idea sort of elevates this role of the CIO because, as you said, data becomes a very, very important asset in terms of how you fundamentally drive innovation in your business, and so that digital notion is sort of elevating the role of the CIO. And in the context of Performance Management, as you see this spread beyond finance into other lines of businesses, other lines of businesses are starting to be more disciplined and rigorous in how they sort of measure their performance, how they manage their performance. There's also a need to connect the dots across. You know, if I'm doing a marketing plan, which is an important element of my overall spend, if there is a fluctuation or change, a big change in my marketing spend, that needs to be reflected back in the finance budget. So connecting the dots and aligning the plans across different functions is becoming a big priority as well. So you're seeing a lot of important changes happening. >> You just said a few things that's just gotten me standing up and getting all excited. Peter and I looked at each other, digital business, digital assets, digitizing your business, these are the mega-- >> Data value. >> Data value, this comes back down to what we've been talking about all week here on The Cube and for the past year. This is now what was once a come together, have a meeting, share, cross-pollinate, somewhat automated but in the end manual, to fully integrated. This is probably the biggest business problem in digital transformation right now. How come we're not hearing more? This is a-- >> Yeah, I think that's a great point, John. At the end of the day and what we've been talking about is that so this is is a little bit of SiliconANGLE Media, Wikibon, we believe that digital business, full-stop, is how you use data to differentially create sustained customers. >> Absolutely. >> That is digital business. You can say all kinds of new channels and all this other stuff, but it all boils down to are you using data as an asset better than your competitors? >> Yep. >> So that as a basis, two things. First off, interesting that Mark Hurd, we talked about it earlier, this is a quick aside, Mark Hurd talking about how CIOs are going to get more help. Remember when we talked about how Oracle's going to have to bring a lot of the IT group forward in its new transformation. >> This is it right here. >> Absolutely, but I'm going to throw you a little bit of a curve ball. I hope I'm not going to throw you a curve ball but its a very, very important point. As the IT organization, or as increasingly, the methods that we use to create digital assets, and increasingly also products, they're iterative, they're empirical, they're opportunistic, they're agile. That the traditional, year-long budget that says you have a certain money to spend, and you spend it or it goes away and you better not fail with this money, comes under attack by Agile, and I know a lot of CIOs that I talk to are trying to reconcile the impedance mismatch between Agile and Sprints, and being opportunistic and recognizing when something isn't working, and the CFO who's still talking about annualized releases of money. So I've always felt that you could not reconcile those. You could not bring those two points of view forward without EPM. Are you seeing that as well and how are you helping it? >> Yeah, we're definitely seeing this because this older, you're absolutely right. The old notion of let's make a budget once a year, get it right, and execute on it for the rest of the year, we are seeing that seeing that fading really fast. What people are saying is, look, plans are made only to be changed. Let's not fixate on getting the perfect plan in place. Let's start with a reasonable plan with the assumption that it's going to tweak and iterate and change many, many times over the year. So the focus is now on, less on getting it right the first time, more on how do we make dynamic changes to it in an agile fashion, just to your point. >> And reflect those changes throughout the entire cost-- >> And into finances-- >> Back into finance. >> It all comes back to finance. >> It comes back to finance because at the end of the day, let's say, take a simple example of a manufacturing company-- >> Paul: Finance is the language of business. It still is. >> End of the day, your business performance is measured in dollars and cents. I mean, period, right? So, let's say, your product mix changes because your customer demand is changing. That needs to be reflected back into finance, in terms of, okay, are we making more money or less money? Is it more revenue or less revenue? That needs to be reflected back, and so we're definitely seeing, in fact, the tagline for Enterprise Performance Management that we use these days is enabling business agility. So two parts to that, driving agile decisions, to your point, the second is, once you drive those agile decisions. Let's say I decided to expand into a new business and I did an acquisition. Fast forward six months, you need to reflect the results of that combined entity into your financial results, do it quickly, do it in a way that is correct and you're confident about the results and that's the job of finance. So it's agility of operations, agility in decision making, those two have to sort of come together. >> So here's my question then. I love this conversation because I think this speaks to the full-closed loop of Cloud and DevOps and the innovation around Agile. How much flexibility is built into the software, and I'm kind of going with the database route for a second, systems of records, schemas in database 'cause business plans can say it once a year and it's failing, I agree, I can see that failing. But, also, fixed schemas, can fail too. Well, I don't want to add the new data in 'cause the database can't handle it. I've heard that from developers before. Again, it slows the things down, so as you move from systems of record, which can be fixed and tweaked, the engagement data is the business engagement gestures. So how is that factoring into your software? You guys see that and is this AI Bot revolution and the machine learning, the smart software after engagement. Can you thread that through and explain how that fits? >> Let's start simple and sort of get a little more sophisticated quickly. The first things is we are seeing a lot more people come into the planning process than before. The old model was finance did the planning for other people. Now, people are doing their own plans, then sort of feeding it into the overall plan. People intentionally are pushing that because they want plans and decisions to be made closer to the point of action. Secondly, there is a greatest emphasis on driving fact-based decisions. For instance, we are working with some large consumer goods companies where they are saying, look, don't come here and tell me that I'm going to spend 10% less on this large line item compared to last year, Throw the last year's budget out and do a zero-based budget. I mean, zero-based budgeting is not a new concept. It's been around, but it's getting a new lease of life because in industries where profits are on the squeeze, they are saying "Look, I don't want "to do the traditional budgeting. "I want to go to a zero-based budget." >> Because they get facts that are surfacing faster. Is that kind of the premise? >> Facts, but more over to the performance of the business. >> That is definitely true. The facts that are surfacing faster, and, therefore, I want to give the tools to make use of those facts to the people who are closer to where they are surfacing. >> John: This is a digitized business in that scenario. >> Definitely true. >> Everything's instrumented. >> Good value. >> Hari: Yeah, definitely true. >> We always say on The Cube, I mean, this is the first time in the history of business in the world that you can actually measure everything. >> That is absolutely true. >> If you want to measure everything, you actually can do it. >> That is absolutely true. >> Now the CFO, which was once the measurement system, has to get integrated in. Am I getting this right? >> You are getting this right. You are getting this right. And the other part of your question is about okay, how is intelligence coming into, so some of these decisions over time, if you see a pattern, they can be perhaps automated. Plan adjustments can be, maybe some elements of plan adjustments can be automated, but I don't see finance going that far. That may be taken as an input. Maybe a recommendation comes from automated intelligence, and people will sort of take a look at it and say, "Hey, I want to go with this because it makes sense, "or I'm going to override it this way "because this doesn't take into account "what I'm planning for in the next quarter." >> Yeah, what scares me, though, in the whole bot thing, I mean, this is not a dis on Larik, I love the vision, it's got me all excited, is if they try to get too AI before they actually build the building blocks, they really can get ahead of themselves. So, you can see that head room, for sure, but a lot of companies are kind of in that planing mode. Is that true? What's this progress bar of customers right now who are into this, are in the software? I mean, track bots are great for certain things, but you can't really automate AI yet and everything. Or can you? >> I think there is probably a class of decisions that can be automated, but when it comes to finance, and finance tends to be conservative and for good reason, they definitely see the value of recommendations based on data, based on real-time data, but they still want to have the controls. >> [John} Got It. >> So that's kind of the mindset that we have seen. >> So real options valuations could really, really be helped by AI. But at the end of the day, you have to be able to close the books, and you don't need AI to help you close the books. >> This is a fascinating conversation. >> If I can add one quick conversation, just a quick point, as Enterprise Performance Management starts to weave its way into other parts of the business, institutionally, does that mean we're going to see controllers start to end up in different functions? >> Hari: (laughs) IOD of controllers? >> As a human interface that goes along with the system so that it works together. >> It's a definite possibility, right? Because if you're planning as rigorously in marketing as in finance and if you aremeasuring and reporting as rigorously in sales as you're doing in finance, maybe there's a sales controller function that becomes a legitimate need. But at the end of the day, today, you focus so much attention on reporting your numbers to the street. You focus attention on precision and accuracy and confidence in all of that. Why is that not a requirement for internal Reporting? >> It's the same argument when we talk about the technology of a structure. You move the computer to where the data is. You could move the controller where the action is, to your point earlier. It's a fascinating conversation, Hari. Thanks for sharing the insight. Love to do a follow-up on this because I think this really connects the language of business and kind of validates the digital fabric of digitization. But quick, I want to give you the last minute to give an update on the business, how you guys are doing. This is a pretty big deal. How's your business results, what's down the roadmap, what's the sales going to be like next month? I'm only kidding, I know. (all laugh) >> Sure, sure. I think the cloud has been a really game changer in this business. What the cloud has done has lowered the bar where we're seeing many mid-sized businesses start using Performance Management best practices, just like larger companies. We are seeing divisions or functions inside of larger businesses using Performance Management software for the first time. So there's a big market expansion, and we are seeing an expansion across other lines of businesses outside of finance. We are certainly seeing that. We are seeing that, you know, we introduced our first Cloud software in Enterprise Performance Management about two and a half years ago. At that time, we were not sure how the market update was going to be because we said finance tends to be conservative. Are they going to be comfortable doing their aggregated planning in the cloud, or are they going to be comfortable doing, reporting things in the cloud? We've been sort of pleasantly surprised by the willingness of finance, helped in part by the success the companies have had in deploying HR software in the cloud or CRM software in the cloud and so on. So the cloud has taken off. We have well north of 1,000 customers that have picked up EPM software in the cloud. We are very happy to see 100, 150 deployments go live every quarter, and we are seeing use cases in marketing, we are seeing use cases in HR of strategic workforce planning or marketing spend planning happened using EPM-style software. So, happy to see mid-sized businesses see real value from planning. >> John: Good integration capabilities? >> Good integration, I'm glad you mentioned it. Very good integration back into, for example, if you have financials in the cloud and EPM in the cloud, there are nice linkages between the two. So four teams are very important to us. We are seeing pervasive use of EPM software. We are seeing agile operations helped by EPM software in the cloud. We are seeing connected operations, whether it's the backbone systems or across functions. And we are seeing people take a sort of a comprehensive view of this, whether it's across functions or across processes. >> This is fascinating. We could go another hour. This is a really interesting topic because I think it really highlights a fact that, what we always say in The Cube is, you can provision technology faster and you get time to value certainly as the customers start to be creative and implement it. They get to actually put it to work and get the data around and behind. So thanks so much for spending the time on the insights on the EPM. We appreciate it, thank you so much. >> Thank you, I enjoyed the conversation. >> Okay, you're watching The Cube, live coverage here in San Francisco at Oracle OpenWorld 2016. I'm John Ferrier with Peter Burris. Thanks for watching. (upbeat synth music)

>> Announcer: Live from San Francisco, it's The Cube, covering Oracle OpenWorld 2016, brought to you by Oracle. Now, here's your hosts, John Furrier and Peter Burris. >> Welcome back, everyone. We're here live in San Francisco for SiliconAngle's theCUBE, our flagship program. We go out to the events and extract the signal through noise. We are here at Oracle OpenWorld 2016 on the ground floor in the exhibit hall, big booth, big studio, breaking down Oracle OpenWorld. Of course, Larry Ellison just gave his keynote. He does the opening keynote Sunday night before the event and then saves his best for the keynote right in the middle of the afternoon from 1:30 to 3:30 on Tuesday, second day. And so, we're going to break it down. I'm John Furrier, the co-CEO of Silicon Media here. Peter Burris, Chief of Research at SiliconANGLE Media, and also General Manager at Wikibon Research and Rob Hoth, Editor-in-Chief of SiliconANGLE and heading up the editorial publication we're going to be expanding on. Guys, let's get into it. So Larry Ellison, he must have been tired Sunday and he must have saw out tweets about upping his game a bit. He delivered an epic performance. He really came out, guns blaring, Amazon Web Services clearly in his sights, being aggressive. Peter, your thoughts on the tone. Is this the new Oracle or what's your take? >> Larry was pumping so much energy into his speech that he actually overflowed a bunch of buffers and as a consequence, it was very, very halting when it came in over the TVs here. I think in general, he went back to his playbook or he's going back to the Oracle playbook and the Oracle playbook historically has been we're more open, we are faster and when you combine those two factors, we will be cheaper. So he used, they ran some benchmarks. He showed how Oracle on Oracle is faster, how everything on Oracle's faster. How Oracle on Oracle and not everything else is faster and how ultimately that turned into longer term, cheaper operations. So it looks like Oracle remembers what got it to where it is 20 years ago, 25 years ago. In the last big transition, or one of the last big transitions, sounds like he's kind of going back to the playbook and running it again. >> The guns are blaring, Rob you were in the session, you've been out scouring for stories, your headline you just posted at siliconangle.com says, "you're locked in, baby, Oracle's Larry Ellison "redoubles attack on AWS." Your thoughts on the keynote, what was the vibe, what struck you? >> Well I mean obviously Larry was really on his game there. He, as you said Sunday, was a little off, but this time he really came out blazing, guns blazing as you say, and he really attacked Amazon on a number of fronts, performance, openness, which is kind of ironic, isn't it? For oracle? So, you know, he's obviously gunning after Amazon, or at least wanting to appear to. What I wonder, though, is what that means. I mean, is he really going after Amazon, or is he trying to set some sort of tone for the customer to say, "look, if you're even thinking of Amazon, "you got to look at us first, right?" >> And certainly as on Oracle on Oracle, I heard things like, "our stuff is faster." "Our stuff works." end to end, back to the drumbeat of "our code is identical on premise, identical on cloud, it's the easiest way to move to the cloud, obviously Oracle Cloud, not the cloud. De-positioning Amazon as being locked in and closed is interesting. I thought it ironic, too, Rob, that's the first thing I came to, it's like, a lot of people have accused Oracle on their run after they started getting escape velocity as a venture, and when they really ran the table on the market, a lot of people were looking at Oracle as a lock-in, Oracle's database was so important they are buying companies, people saw all that goes on on the history of their, customers felt locked in, so it's ironic now the shoe's on the other foot. >> And not only that, he even recused them, he said, "you're locked in, baby, and if they want to raise "their prices, you better get out your checkbook," and I thought, "isn't that Oracle's playbook?" (laughing) >> So Peter, that is the playbook on the licensing side, we've heard from customers that the licensing has always been a sticky issue, we know the VMware has had that challenge with the Hypervisor, which Oracle's now announcing there's no Hypervisor on their network virtualization, so how does these companies make money, because certainly it's a shift of the dollars, Mark Hurd said 80% of IT spending will be in the cloud by 2025, so is there a ratchet, is there a sticky factor for Oracle to actually maintain that revenue growth? >> Well, as we talked about yesterday, there is nothing stickier than the application. When a business reconfigures itself to run an application, it is extremely hard to take that application without dramatically disrupting the business. You can take out a database manager if you can move that data to some other structure, some other mechanism, and still run the application, you can certainly change hardware, and you will be able to change (mumbles) providers, it won't be fun, it won't be easy, it'll be expensive, but you can move data around and stand new instances of things up in other places. But the most sticky thing, good or bad, is the application. So as Oracle goes forward, there's no doubt that it's going to talk about how Amazon is trying to lock people into it's platform and some of the services that it's coming out with. But most of the businesses out there are mainly focused on whether or not the applications that they've either got from Oracle or have built on top of Oracle databases are working. And one point to make here, John, I have never met with a CIO or a senior IT person who has ever said to me, "I really hope Oracle bones it in this next transition, "because I'd like to be able to throw them out." Nobody is looking for Oracle to lose. Most of these companies have so much invested in Oracle that they don't want to go through the pain and suffering of Oracle not succeeding. They would certainly like to have alternatives, and they would certainly like Oracle to modernize its practices so that it appears and presents itself more as a cloud supplier, but this is overall a good thing for customers. >> I would agree with you, but I'd make a point, Cisco is one of those other companies in the early days had that stickiness with the routers, you couldn't just pull one out, it had a nice nestedness into the fabric of every business that they did business, Oracle's the same way. But it's interesting, I find the tone, Rob, that you were mentioning, that they're going after Amazon and to quote thing, your article, "Oracle's cloud runs "24 times faster for analysts than Oracle on AWS." Now you're talking about Oracle on AWS. To your point, he's trying to keep the customer saying, "don't move to Amazon." And then the other thing I was taken aback by Redshift comments, he's going after Redshift, you pointed that out-- >> And Aurora. >> And Aurora, but Redshift is interesting. Redshift is the fastest growing service on AWS. Andy Jassy's told me that directly, and so he kind of did a nice little trick, he de-positioned Redshift great for analytics, but horrible for online transaction processing, the core for-- >> Which it's probably really not made for, right? >> Yeah, I wouldn't say that was Redshift's position. >> However, but it comes back down to what Amazon's all about, we speculate at the Cube that we don't yet know what Amazon will become, and the behemoth that they might be given their success, so I see Oracle really trying to kind of deposition Amazon as getting more territory in their accounts. So yeah, I don't think Oracle looks at Amazon as a replacement, that they will die, but the disruption factor coming from Amazon certainly is being felt by Oracle, would you agree? >> Oh absolutely. And, well, the disruption, look, nobody, or very few people look back 12, 13 years ago and say that Amazon is going to become what it has become in a lot of different markets. Jeff Bezos has demonstrated that he can get his troops to focus in and get very, very complex things done and have an enormous impact in a lot of different industries. Right now we are all wondering, we're all wondering what those new industry structures are going to look like that are going to be the dominate institutional forces in the next 10, 15 years. And it's clear that Amazon has identified what one part of that institutional basis will look like, and Oracle needs to respond. And that's what they're doing. And they seem to be doing it well, but it's going to be a long, long, long haul. >> Well let's bookmark that, 'cause in this segment, I want to get into what's not being talked about here at Oracle OpenWorld, and we'll get to that in a second. later in the segment, but let's keep on the theme of what we're hearing. Rob, you're out with your notebook, you're talking to people, what's the general point of view, what's the general consensus of your findings as you interview folks just after the keynotes? Is there a tone, is there a certain thing you're hearing outside of their messaging, which is pretty clear, "Oracle Cloud all the time," what's some of the things that you're finding in your reporting? >> Well there is some sense out there that, you know, questions about Oracle's commitment to cloud, especially the infrastructure part, and whether they're trying to position themselves, but not necessarily being completely serious about really taking on Amazon, and so-- >> As a red herring, or more of a posture, or legit competitor? >> Well, I don't know, but the doubts are kind of interesting you know they're obviously not spending as much on R&D on production of data centers, and so people look at that and go, on the one hand, the investors say, "maybe I don't want 'em to spend so much 'cause they're "going up against an entrenched competitor in Amazon," but the customer is probably, you know, "I want more." So they're a little doubtful, I think, about how far Oracle's going to go. >> Any other findings from other Oracle executives? Is there anything that's jumping out at you in the hallway conversations? >> No, they're pretty consistent in their messaging. (laughing) Needless to say, that's one of their strengths, but there was a Q and A with Thomas Kurian, people were trying to lead him off on saying things, and he was not taking any bait, he was completely on message, and-- >> Well, the Oracle executives are very strong with holding the line, party line, we do get some nuggets on the Q, Juan Loaiza came on, again, he didn't really reveal anything confidential or out of bounds with (mumbles) messaging, but he brought the database piece, and was really seeing that the database piece is going to be much more of a broader perspective, that's my interpretation, and I was saying earlier that getting out of those swim lanes is a key message. But it's interesting, I mean I think the customers, what I'm hearing in the hallways, Peter, is "what's the impact to the customer?" Right? Like okay, the buyers. So there's no real, no one's running for the exits with respect to Oracle, so I agree with you there, but there's definitely an investment criteria going on with the customers around the future that they need in their architecture, whether that's a hybrid multi-cloud environment, and then ultimately, the fear of being forclosed for opportunity. So as customers think about the future, they just don't want a forclosure situation where there's no end room, so they have to go outside of Oracle, if they have to. So I think that choice option is interesting. So I kind of see the difference as more of a fun factor-- (crosstalk) >> This is clearly the most important thing on the table, is new workloads. The second mot important thing on the table is if the new workloads go to the cloud, which it appears that they are going to, and they end up more in Amazon, that's going to create a center of gravity, that's going to have an impact on existing workloads, and there are few companies that have more to loose if existing workloads move into Amazon's cloud than Oracle. And so by, Oracle needs to intercept this, they absolutely need to intercept this. But it's also the right thing to do for the customer base. My guess is that they're figuring out how to transition the business models, you know, revenue comes down here, goes up there, how do we do it so that everybody wins? That's a very, very complex management undertaking, especially given that there may be a CEO change on the horizon at some point in time. But the bottom line is get the new workloads, make sure the center of gravity doesn't move too much, and keep your customers. >> I was out last night at the press event, also there was an Accenture party, and I bumped into a few folks, and I had an interesting conversation with one, and it's something we've talked about in the Cube a little bit, but I'll bring it out here. They said, "John, what do you think about Oracle and Amazon, and all this stuff?" Which you take, you know, a little bit socially lubricated at the time, I said, "Hey, someone's going to be a Blackberry in this equation." They're like, "what do you mean?" I go, "well the Blackberry had all the features "of the phone, they had email, they had browser support, "they had huge adoption installed base phones. "When the iPhone came out, that was the game changing shift "for applications, so every net new mobile app, "now called mobile first, was really build for a computer, "AKA, iPhone and then the Samsung and Android, "so all new applications essentially "were written for the iPhone and Android." So they're like, "where are you going with this?" I'm like, "okay, if you're an enterprise, "every net new application or cloud native application "will be written for the cloud. "My belief is that why wouldn't you "build an application for this next gen architecture? "Why would you even do it on a prim unless it was "some specific requirement or outdated software--" >> Edge computing, there's some other things. >> There's some specific enterprise things that will always be there, but every net new application, or Greenfield application, (speaking indistinctly)-- >> Peter: Who's going to have-- >> Is going to be in the cloud, so if you believe that argument, that means there's going to be a tsunami of action in cloud, period. That means everything's going on the cloud. So if you believe that then it's a simple scale game, so that's going to be share taken by the cloud guys, so who are they? Oracle's kind of new to the cloud, and it's only really Oracle Cloud, so Amazon's been getting the lions' share of that, so Google's ramping up for that with Diane Greene, and you've got Microsoft. Your thoughts on that Blackberry that is, will someone be the Blackberry of cloud? >> It's an interesting analogy. I think that there's going to be some early, let's put it this way, if there's going to be a Blackberry of the cloud, it would be Amazon. And I don't think Amazon's going to be the Blackberry of the cloud. Right? >> Rob: Not anytime soon. >> No, because the Blackberry was the first one to come out that said, "look, we can add more functionality "than what you normally think about a phone," and along came Apple, and said, "you know what, "we're actually almost anticipating a treason. "We can turn the phone into a piece of software "that runs this handheld computer." So I don't think that Amazon is likely to be the Blackberry. Now the question is will Oracle be a Blackberry as a consequence of the cloud. And again, there is, businesses have invested so much in their core enterprise applications that they are configured around, that the cost to rip them out would be so great, and the benefits would be so modest unless Oracle does a faceplant of absolutely epic proportions, I don't think it's going to happen. >> It's not a clean analogy, but I do remember people having two phones, 'cause work had a phone that was a Blackberry, and the other one's iPhone, but it's a hard question, but here's-- >> But the cloud is the iPhone. In your analogy, the cloud is the iPhone. >> Yes, so it's a hard question, right, so we can pontificate, but here's the thing that I want to ask you guys both, 'cause it's a hard question, because it's early to provocatively bring this out, but what would be the tell signs for the Blackberry? One, it's large pre-existing condition. Right, install base. Clutching and holding on to the old way. And trying to be new. Blackberry tried to be cool, but never really realized, let's just go and complete iPhone clone-- >> So what was the centerpiece of Blackberry strategy? That core, fundamentally core, enterprise telecommunications app that handled email and phone metrics. The telltale thing that Oracle's doing something wrong, quite frankly, the first one would be that they start cutting people out of the ecosystem. That they start going toward what you were talking about, was that the suite becomes more important than the innovation. Again, I don't think that's going to happen. I'm encouraged by the fact that this very comprehensive announcement so strongly features ISVs and partners, which, John, that is a really, really important thing to be looking for. Does the suite become more important than the innovation? >> That's a great point, and the other thing that's interesting, too, is the whole workload conversation, because if you bring this kind of analogy together, is that the Blackberry ran workloads, it ran email, and so those workloads were highly efficient on their device. >> Well remember, actually Exchange ran the email, Blackberry ran the presentation, so the Blackberry application was simply taking something and went somewhere else, so it was easier to displace it when somebody came along with an alternative. >> There's a lot of holes in the analogy, but it does ring true, because we all know what happened to Blackberry, so the question that's on the table is, you got to transform or die, right? I mean this is clearly a lot of stakes are at risk here, so interesting conversation, so-- >> So the question is, Is Oracle kind of being proactive and aggressive enough, not just on the marketing front, but in innovation? Because they said a defensive, even Hurd yesterday, Mark Hurd yesterday said, was painting the, you know, we basically have a situation where IT is not growing, traditional IT, so we have to get into these new things, but are they? >> I think they're defensive, good point, and I think my observation, one from doing all the Cube interviews and covering Oracle deeply than we have been is that I think they're being defensive for reasons of not making enough progress, and that's not a function of Oracle's a function of their build out, and Ray Wang pointed out that the progression of building the data centers, and Larry's presentation, hangs together if you're an Oracle customer. If you're an Oracle customer, everything he said on stage actually makes a lot of sense, totally no problem with that. The other thing that Oracle's managing is the public perception on Wall Street around their growth prospects. I think they're holding the line, they're over-amplifying their CNBC interview, you watch the CNBC interviews, you watch Bloomberg, Mark Hurd is messaging like a politician, there's no real substance to any future indication of the strategy. Now we all know what the strategy is, they are not even close to being ready to get to the cloud, and that's hwy they're staying with their core base first, but they are going into a position to be set up for a siege where they bring their database customers to the cloud. That's where the game will get interesting, when Oracle starts really having those foundational building blocks of infrastructures of service, PaaS, and SaaS set up on Oracle first, then the net new application metric becomes, the net new customer metric becomes important, then you star to see the real war going on, where then it's a frontal attack on Amazon. >> John, you're absolutely right, but again, there is an overarching user issue here. They may not like Oracle's pricing, they may not like negotiating with Oracle, especially on the database side, although I've heard recently there's been some moderation, there's something of a d'etat going on right now. But again, there is not a user on the planet who wakes up and says, "I can't wait for the fun of ripping out "my Oracle applications and replacing them "with something new." That's just not something that anybody looks forward to >> I 100% agree, and here's my analogy on that. The marketing cloud comps that we had earlier, and some of the other new stuff around Oracle is pretty exciting because they're talking about design, user experience, they're talking about some of the real interaction, engaging components of their software towards the front end, near the consumer. On the existing Oracle, I've said this on the Cube, going back to 2010, Oracle's like plumbing and pipes, it runs the water, it feeds everything into the enterprise, why would you want to rip out, replace something that's already working? What are you adding onto the plumbing? So as a utility, Oracle has a utility effect on some of these core systems, whether it's CRM, ERP, CM or whatever, I get that, and I don't think that's at risk. I think if better plumbing comes along, (laughing) >> But here's-- >> It's another-- >> Well that's very true, but here's another way of looking at that exact point, John. In most businesses, your ERP application really is your infrastructure, it's not your servers, and your storage, and your middleware and your network. From your Board of Directors' standpoint, from your CFO's standpoint, for most of the business, the infrastructure is the ERP application. So when we all talk about infrastructure as a service, we're talking amongst ourselves about the role that Amazon's going to play, and it's important, they're having a major impact, new way of thinking about infrastructure at a technology end. But from a business standpoint, they're not looking at Amazon necessarily and saying, "oh wow, let's go there "because I can get a bunch of virtual machines." >> I mean, you said it earlier, the user's the center of the conversation, the customer, and here's my acid test for kind of the monkey business that goes on between the suppliers, and it comes down to this: whoever can enable value will do well. And customers don't mind paying for value, right, so the value equation is interesting. As a platform, if you're a platform as a service or whatever platform you are, you have infrastructure that's hard or whatever happens, if you are creating value and enabling value for the customer, in whatever form, ISVs, developers, other things, customers will pay for it. And what I'm hearing is customers are afraid that that enablement will be constrained somehow and boxed into a framework-- >> The suite verses innovation >> Bingo. >> Argument you made yesterday. And it's a really good point, and Rob, I'd like to hear what people are saying on the floor, 'cause you've been wandering around more than John or I have, about this point specifically. That tension between where I am today and where I want to go, and whether or not they see Oracle, you said earlier, investing enough to maintain that stream of innovation that's becoming so important to articulating the next generation of what technology looks like. >> Well like I said there's a lot of uncertainty out there. As you said, I think a lot of them don't want to move off of Oracle, they just want to be able to go to the next thing that they need to do, analytics, big data, that sort of thing, and you know if Oracle can provide that, they're going to go for it, right? I mean, why not? >> Peter: Right, and you're absolutely right. >> So my question is, not knowing the technical ins and outs of what they're doing on that front, is are they going far enough on that front. I don't know yet. >> Rob, let me ask you a question for the folks watching, I know you're out getting stories, people always trying to get us to look at their stuff, get attention. As someone who's doing the reporting out there and leading the editorial for its Silicon angle, what do you look for when you come into Oracle OpenWorld, you come in in objectively looking at the signals, what do you look for in stories, how do you take the size of the show, because now Amazon started this, these shows are so big now, there's a slew of announcements, I mean we were talking about the number of releases going out alone, okay, there you go, there's 12 releases, how do you vet, how do you make that decision editorially to where the stories are? >> Well it is overwhelming, I mean, I kind of drowned on Sunday night, and I think Larry did, too, you could tell he was sort of saying, "oh no, another slide." But, you know, in the end they were mostly announcing customer relationships, partner relationships, some new technology. I look for, one, the new technology, I want to know what's real here. You can't know from a press release, but you can get a sense of that. But, you know, a lot of it's a business aspect, this has to work for businesses, and so, I want to know is this going to move a needle on Oracle, on their growth, is it going to keep 'em in the mix, that's what I care about. >> Great, thanks for that. Peter, what's missing? What are we not hearing here on this show that you expected to hear more of, or you think is an area that Oracle will have to flesh out as they go forward? >> Well, so we heard this really nice comprehensive vision of Oracle moving into the cloud and moving their customers into the cloud, and very importantly, their partners into the cloud, so that's really positive. What we didn't hear as much of is two things. And one is really crucial to the strategy, and maybe you heard some of this, Rob, but I'll do the first one and then that one. The first one is we're only hinting at how developers are going to do things differently as a consequence of Oracle's moving into the cloud. We're hearing, "yes, we're going to support "all of the languages," and "yes, we're going to do all the, "the database is going to be there." But just hints. And the developer ecosystem is still something that everybody's making a play for, nobody has really put their stake in the ground and said this is how we're going to do it. Amazon's play is, "don't worry about IT, come to the cloud, "get what you need, build your application, "make your business happy." Oracle is, and this is segueing to the other point, Oracle is more of a traditionalist in that they've got developers, they want to give them the tools that they need, bring their tools along, I expected to hear more about that. But the number two is in many respects, as I just said, Amazon's play is "okay, IT, if you want to marginize, come work with us." With business, "if you don't want to wait for IT, "you have another option to come to us directly." Many years ago IBM tried to play the hand that they were going to bring the IT professional along with them as they went through a transition. And they did a pretty decent job of it. This time, it's pretty much up to Oracle, I would say, to bring IT, the traditional IT manager along with them. So they're not only modernizing Oracle, they're in many respects modernizing their traditional customers. That's not necessarily, that's not going to be a particularly easy job, but a lot will go along with it. And we'll see the degree to which Amazon starts to fight not just for the hearts and minds of business, but the hearts and minds of technology, and the IT people as well. It's an interesting dynamic to see-- (crosstalk) I'm sorry, to answer your question directly, I expected to see more about how they were going to bring along IT people. >> Yeah, and I agree with that developer thing, they have Java one, so when the people say, "hey we're all developers," the comment I heard was, "oh they're all at Java one." Here's what Oracle has to do in my opinion, they have to integrate the goodness of Java one into this show, because if they want to be successful in the cloud and take on Amazon and others at the platform as a service level, this is a new middleware, I've said this before, Thomas Kurian, he knows middleware, and I guarantee you the database guys know exactly where the action's going to be, they're going to beat the four to five the pass layer, with developers and their ISV, so that's existing ISVs and new developers, and I hear zero value proposition coming out of this show around that particular piece. I think it's a major area of improvement Oracle needs to do, and if they want to win the hearts and minds of the developer, that is key, because the cloud is about DevOps, you can automate away IT, and bring them along, but applications, the core bread and butter of Oracle, that takes advantage of the database is coming from developers. >> John, I think that's a great play, we heard in the Cube yesterday, so where is the line between IAAS and PaaS? It's kind of a blurring, and we say it's, well, which is it going to be, PaaS of IAAS? And when the Cube guys came back and said, "we're thinking it's going to be PaaS." Which it may very well be. But it's not what the interest is thinking right now. That's going to be up to Oracle to make that PaaS. >> I just (speaking indistinctly) to end the segment is that Ray was commenting, and I agree with him, and I think your point about the coherent message. Oracle doesn't want to over-rotate and get ahead of their skis on this one, becusae they're sequencing this play out very carefully, a lot's at stake, foundational build the building blocks, get their existing infrastructure of service built out, then you're going to start to see the game change, so I think Oracle's doing, I think, the right thing, and their progress I don't think has anything to do with Oracle, per se, they have build out issues, and it's still early, so I'm not going to judge 'em on that, I like what I'm hearing, and they're doing Oracle on Oracle first, and then attacking the competition with the fudd to try to set expectations, and again, Hurd is keeping Wall Street at bay, kind of keeping them down, while they tool up and build out, so yeah, great stuff. Rob, thanks for coming on and sharing your notes from the reporter notebook out in the field writing stories, he just wrote a post on the keynote just now, and the headline is my favorite headline of the week, "You're locked in, baby, Oracle's Larry Ellison "re-doubles attack on AWS." That really is the top story here at the keynote. Peter, thanks for the commentary. We're going to talk about more live coverage here in the Cube, live in San Francisco, live coverage of Oracle OpenWorld. Be right back, you're watching the cube. (upbeat music)

>> Announcer: Live from San Francisco, it's The Cube. Covering Oracle OpenWorld 2016. Brought to you by Oracle. Now here's your host, John Furrier and Peter Burris. >> Hey, welcome back everyone, day two of wall-to-wall coverage live broadcast on the internet, this is SiliconANGLE Media's The Cube. It's our flagship program, we go out to the events and extract the signal from the noise, I'm John Furrier co-CEO of SiliconANGLE Media, joined with Peter Burris head of research of SiliconANGLE Media, as well as the general manager of WikiBon research. Peter, we did twelve interviews yesterday, we got a line up today. And we've got a great range of content, great editorial commentary, great guests from Oracle Exec. We asked them the tough questions, we also have some great sponsored spots for our supporters. But really, it's about putting out that content I think. Yesterday, we're starting to see, and we're going to some guests today around philanthropy. Oracle is doing a lot of work in philanthropy and we're going to get some great women in tech content, something that Oracle has a great presence in. But, the big story, Day 2, is Thomas Kurian was on stage. He was not on stage for Sunday night's Larry Ellison keynote with, sorry, with Intel and so he had a personal issue and had to mail in the video. There was speculation on whether he would be here, but Kurian is the guy, he's the product guy he's running the engineering, running the product development. So we expected to hear huge announcements today. Kind of not much, I mean, as expected, infrastructure's a service, we heard about containus which was pre-announced by Larry, basically announces everything. But, not a lot of big game changing news, but a lot of the blocking and tackling a lot of the ground game for Oracle's march to the cloud. Really emphasizing on the speed of standing up a data center with the browser and API's, anyone can stand up to. All the capabilities of Oracle with standing up a virtual data center with all the isolation at the network level, giving that customer choice but bridge to the future. Again, this was expected. But this is a key part of Oracle's strategy. They need to lock down the infrastructure. To make PaaS work well and SaaS, they got to make it work well. So, not a lot of surprises, as expected, infrastructures of service. >> Well let's be honest about what Oracle's biggest threat is, what the biggest threat to Oracle. They've got this enormous presence in the applications business, we talked about yesterday, the apps business is sticky. When companies embed their applications, or embed an application into their business, they reconfigure the entire organization around it. It's hard to rip that out. They are clearly number one, and have been for a long time, in the database marketplace, and it's not hard to pop a database out. It is hard to pop a database out >> John: It's very sticky >> It's very very sticky, so hardware? It's getting a little bit easier, but the possibility that the infrastructure starts to become more public in nature, starts to move up into the database space and Oracle clearly wants to ensure that it doesn't encounter longer term problems with the bottom eroding. So it needs to sustain that presence and infrastructure and continue to give people an option, should they want to tie infrastructure directly, or continue to tie infrastructure directly to the database in the application. >> And we pressed Juan Loaiza yesterday, senior vice president on the development side, lead database guru, laid out his vision of how he sees the key elements of data center and he said it simply. Our number one priority at Oracle is to move workloads from on-prem to the cloud seamlessly back and forth... >> Peter: To our cloud. (laughing) >> So we'll say cloud for now but that's ultimately what the customers want. They want to be able to move to the cloud, ultimately have all that benefits of the operating model and the agility but moving it back and forth, again, to Oracle, it's the Oracle Cloud. So on Oracle and Oracle, job one is to make it really frickin' awesome. Fast, low-cost, and the infrastructure aside, put pressure on the Amazon choice but yet keep that there. So that's clear. But I want to ask you... >> Well let me pick up on that, maybe this is what you're going to ask me. Many years ago, I had a lot of experiences working with CIO's over the years. Many years ago I was in a staff meeting of a CIO, she was looking out across her team, and she had a way of starting the conversation with every single one of her direct reports. Head of development, head of security, head of infrastructure, and she routinely would start the question just to reinforce what she wanted folks to focus on. And every staff meeting she had, she started the conversation with the head of infrastructure with, so infrastructure's doing no harm this week. And in many respects, that's becoming the message of Oracle. Infrastructure's going to do no harm, we're going to make sure that on premise, you're covered. Cloud, you're covered. Hybrid, you're covered. We want to make sure that infrastructure's not a huge part of the conversation so you can stay focused on the upper levels. >> Yeah, that's a great point. Some people call it hardening the infrastructure, Paul Maritz in 2010 at VMWorld, talked about this hardened top and he talked about Intel processors, and saying hey, you know, Intel has a hard top and no one looks under the chip, it's totally hardened, it's proprietary code that makes stuff go fast. So I think Oracle has that same kind of mojo going on with the engineered systems and you're seeing that stuff kind of trying to harden the top so that the infrastructure doesn't do any damage. And that brings up the point though about what I'm seeing. And Oracle, I would love to get your comments here, and your take, I mean, look at the industry over the years, the competitive strategy is protect and fortify your core crown jewel. It's been the database. The database powers the application so the application certainly, a lot of revenue, but the database has been this sacred cow for Oracle. And you've been seeing it, and although they haven't been overt about it, protecting the database, keeping it in the swim lane, keeping it here, letting things develop on the side, and ultimately it was all about the database. This show, it's interesting, you're starting to see that swim lane expand. You're starting to see Oracle recognize the fact that hey it's okay to be the system of record, and it's actually quite sticky to be the systems of record in a high performance database environment, but yet yielding territory, or turf, to other databases. That's interesting because that takes the monolithic siloed mentality off the table. Question is, do you see it that way? And if so, does Oracle have to adjust its competitive strategy? >> John, I think, first off, most importantly you're absolutely right Oracle, the product that is named Oracle, is the Oracle RDBMS. When people twenty years ago talked about Oracle, that's what they were talking about. Oracle has been a database company, it's its roots. It's some of the great conversation we had yesterday were with the database people. I don't think that's going to change. I think that they're trying to extend it out and one of the ways they're looking at doing that is they're recognizing that as we look forward the next couple of years, this increasingly, it's going to be, and we talked about this a lot yesterday, how does, not only the data in the Oracle database manager become increasingly relevant to other applications and other use cases in the business. But also, how do the skills associated with that database manager become more relevant and more useful to the business, as new types of data, new types of applications, and new types of business models start to become even more relevant to the industry. So I think what Oracle... >> Like data value? >> Like data value, the value of data, how development, we talked yesterday about, maybe it was after one of the conversations, about we're now entering into this world of big data and we still don't know what I call, the body plans for business models are. We're in this notion where we don't know if it's going to look like a fish, or it's going to look like a mollusk, or it's going to look like something else. We know that it's not going to look like what the RDBMS world looks like. >> It's kind of like, what's your spirit animal in cloud. We don't know yet. >> We don't know yet, so Oracle has to be flexible as their customers have to be flexible, and not presume that it's going to look exactly like it did ten years ago. >> This game is not even started. >> There you go, and I think that's the key thing, John. I think that they're finally acknowledging that the new world is not going to look exactly like the old world. They have to be flexible, they have to facilitate their customers to be flexible so that they can rearrange things in response to new develops and innovation in the industry. >> You know I was talking to some of the people at Oracle yesterday, after the Century event folks, and what's coming down to is the industry is kind of spinning towards, we call the tech athlete, the smart people. So what's interesting is Oracle has always kind of kept their smartest brains behind the firewall. It's always been kind of competitive advantage to always serve customers on all that lock-in and competitive advantage drive revenue, they're highly profitable but now you're starting to see the battle between like Amazon web services and Oracle. Couple observations from my standpoint. One, they're putting their best technical people out front. Okay, clearly talent matters, organic growth matters, certainly the MNA thing is always going on. Amazon always puts their technical people out. So, observation, companies are putting their best technical people out there on the front lines. We're going to compete on our people. Two, the announcement volume, velocity, here at OpenWorld, probably is the most I've seen of all Oracle OpenWorld in seven years. Very similar to AWS re:Invent. There are so many announcements that are coming out of re:Invent this year, I think it's going to be more than last year, but even last year, it was raining, it was a tornado of announcements. It's hard to cover. In the tech press, talking to some of the folks yesterday, Wall Street Journal, New York Times, CNBC guys, it's like their heads are exploding. Because this is so much to cover. All the stuff's coming at the customer. And to me, that's an observation that you say, okay, what does it mean? >> Well, so let's talk about two great points tossed. Let's talk about the first one, or one of, on the Tube yesterday we talked, somebody said, you know, you mentioned who is someone at Oracle saying who is the industry's best CEO? Larry Ellison, okay, Larry Ellison's 70 years old. Larry Ellison is not going to be the CTO of Oracle forever. So number one, we're starting to see some of that talent start to emerge and start to become more out front because it has to. Number two, very importantly, John, talent creates and attracts talent. And I think the more that Oracle puts its talent out front in this period of significant disruption, that they are going to be more likely to attract other talent to Oracle. >> And that's what impacts the MNA game, too. >> You betcha. >> How to integrate in. >> We talked about what's happening amongst VCs in the Valley yesterday. And who are going to be the entrepreneurs? We're going to hear about Oracle. Is Oracle going to be more aggressive at developing some of those newly inventors and maybe not having them institutionally be part of Oracle? >> Reggie Bradford yesterday talked specifically about that MNA. Again, talent brings talent organically and inorganically. >> So putting those guys out in front is going to make Oracle a more attractive place as we go through this disruptive process. But I think the other thing that you mentioned is a really crucial point. At the end of the day, Oracle is introducing a lot of stuff, and as much as I've also ever seen. But it's coherent. One of the things that's really interesting about this conference or these sets of announcements is that they're covering everything, but it's one of the most coherent sets of announcements I've ever seen from Oracle. It's not a whole bunch of product piece parts. >> John: It's not fluffy. >> It's not fluffy and it's not piece parts. It's cloud. We are bringing all this stuff, and we're driving it into the cloud. 2017's going to be a huge year, because Oracle's, as you said yesterday, is putting everybody on alert. We're going to get really serious about this. >> And we have Oracle's keynote with Larry Ellison, you're going to watch it at three or one o'clock. And then we come back on the Cube for our analysis at 3:30. >> Peter: Pacific. >> Pacific time, we're going to go into great detail on the keynote, but one point we can't cover on here on the interest, we've got to go to our next segment is, and this is where you can expand on this, you mentioned business models. The developer is critical in the business model and the data. Data and developer, those two things we will really, really unpack at 3:30. Of course we'll analyze the heck out of Larry Ellison's keynote, because again, everyone's up front. Call to arms, this is not a false alarm for Oracle. It is battle stations. And we are going to see which company's got the best technical people out front. Where's the meat on the bone for the products? Of course, we've got it on the Cube. >> 2017 is going to be a year where leadership matters in the tech industry. >> Peter Buriss laying it down, I'm John Furrier. The Cube, all-day coverage, day two of three days. 12 videos yesterday, live broadcast again today. We'll keep pumping it out there, that's what we do. This is the Cube, we'll be right back, day two, Oracle OpenWorld live in San Francisco. We'll be right back. (upbeat instrumental music)

>> Voiceover: 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're here live in San Francisco for Oracle OpenWorld 2016. This is SiliconANGLE Media's theCUBE, our flagship program We go out to events and extract the signal noise. Three days of coverage, wall to wall, ending up day one right now. Wrapping up amazing day. I'm John Furrier with my co-host Peter Burris. Our next guest is Senior Vice President of Oracle Cloud, Steve Daheb. CUBE alumni, great to see you again! >> I have four times, four time alum. >> (Mumbles) the MVP award for most times on theCUBE. You've been there almost for a couple years now. >> Yeah. >> Peter: Yeah, you and Alec Baldwin. (laughter) >> Yeah, less than two years, it's exciting. >> So you are working hard. Last time I saw you like, you have to be running harder. You're running harder. >> Yeah, we were in DC together. >> You've been running really hard, so congratulations. Saw the numbers, 70% growth percentage. Not numbers, I don't remember the eh, four billion. >> Numbers are getting bigger, percentages are still going up, so it's good. >> Percentages are double digits, but the real big thing is that you guys now are putting a dent into the awareness of Oracle being a viable and competing opportunity against Amazon Web Service. Larry Ellison said "Amazon, your lead is no more." Which was a headline in SiliconANGLE. So question, how are you guys continuing to differentiate yourself against AWS and Microsoft? >> I think there's three things. One is we differentiate when we look holistically in cloud. 'Cause you know you talk about cloud, and people define it in multiple different ways. Some say oh, Salesforce is cloud, or Amazon is cloud. And we define it as really requiring all three layers of the stack. So Software as a Service, which we can talk about. Platform as a Service, which is that core database middleware application development. And then the Infrastructure as a Service. And we're seeing at some points all these things are interrelated. When does past-op and IS begin? What's a discrete IaaS motion and how does that move to sort of production databases and different things? And so we first and foremost differentiate by looking holistically at what we're offering, and then sharing that we have a complete portfolio that's also open and provides choice to customers in terms of how to deploy it. >> Holistic, end to end holistic or holistic breadth? >> I think it's both. So we look at where we go deep into all layers of the cloud, and then we'll look holistically around a hybrid solution that allows people to deploy in cloud and on prem. And that's where we can differentiate with Amazon. So you know, at a technology perspective, Larry announced some incredible things in terms of we have the benefit of coming in and re-defining what an IaaS architecture looks like and provide scale and performance as well as cost. We provide choice in terms of, look, if I deploy something on Amazon, I can't actually move that back to what's on prem. You can't actually have isolated orphaned sort of instances on public cloud without tying that back to what's on prem. And then you just look at some of the database examples. It's a fork of an old code. I mean, it's not compatible with anything so I can run Oracle database on Amazon, I can run Oracle database on Oracle, I can run Oracle database in Microsoft. I can run Amazon on Amazon. I can't inter-operate with DV2, with SQL, with Oracle, with Teradata, so I think we're just sort of trying to demystify a little bit of what's going on out there. >> But one of the ways was talk about work loads moving between on prem, that's going to get that right 100% across the board. >> Absolutely. >> It's interesting, but I got to ask you. Larry Ellison said on the earnings call last Thursday after Safra and then Mark Hurd made their announcements and man, sounded like things were going amazing. The earnings call was like woohoo, oh my God, the Kool-Aid injection! Then Larry got on, but he said a really cool thing I wanted to just drill down on. He said we're not even getting started yet. We are playing the long game is what he's obviously saying. But he made a comment about Microsoft. He said Microsoft is already well into moving their install base and apps onto Azure. >> Yeah. >> And Oracle hasn't even begun getting started. Now, I'm sure you started, but implying significantly that a lot of the database customers and customers haven't really moved there yet. Is that true? How would you (mumbles). >> It's actually interesting, 415 Research just actually published a study and they said only 6% of workloads are actually running in public cloud infrastructure today. And IDC just actually put out a note that said only 6% around database and analytics. So I think we're actually showing up with the right solution at the right time. And we have 4,000 database customers, we're in a great position to move them to cloud. >> So is Larry right, that a large portion haven't moved yet, and Microsoft, larger have moved? >> Yeah, I think that the majority hasn't. I think that the analogy he was drawing is think about Microsoft that can move their office suite. Take 365 and move that to cloud, or things like SharePoint and move that to cloud. I think what he's saying is look at that analogy in terms of who's in the best position to migrate these database customers to cloud, and we believe Oracle is. And again, it is early days overall. There's a lot of noise about what the cool kids are out there doing, but when you think about it, 90% of these. >> The cool kids are making money. >> The cool kids are making money, Oracle is making money too. >> Of course, that's what I brought a (mumbles). You had a question, sorry to interrupt. >> Well yeah, no, really quickly. So in many respects, it sounds like what you're saying is that you can do what Amazon can do, but Amazon still can't do what you can do. >> Yeah, I think that's right. I mean, I think we're coming out and saying look, if you look at it, the application layer, they don't have anything. And so again, we have core ERP, HCM, supply, sales, service, all these things that we've shipped it to cloud. We actually do 45 billion transactions a day and support 30 million unique users weekly on our cloud. We're a viable cloud. These are core financial systems that companies use to run their business. We've been running in cloud for a while. We have the PaaS layer, our database, our middleware, the analytics, the security, things like IOT, that's core to Oracle's DNA. And then yeah, you have this commodity compute infrastructure. If you look at Amazon, 86% of their business is still about commodity compute. So we can offer that for customers as part of the overall solution. And I know they've been talking about getting it to the database so I would say stay tuned to what Larry has to say tomorrow on that. But we believe holistically when you look at all the pieces, we provide that solution that those 95% of workloads that haven't moved to cloud yet actually really need. >> So that brings up a good point. Cloud world, you mentioned DC where we had your special event, theCUBE was broadcasting live in DC. There all up on youtube.com/siliconangle. >> Shameless plug, shameless plug. >> Of course, get that last minute in there. But I want to ask you (mumbles) you announced the Cloud at Customer >> Yeah. >> So what's the status of that, 'cause we get lost in the slew of announcements here at Oracle OpenWorld. What's the update? Doing well? Reaction from customers? >> It's doing really well. It actually solves a big, again, that problem we talked about. I want to consume public cloud services, but I might have regulatory data sovereignty sort of industry or it might just be my own internal governance that's not going to allow me to deploy that, consume public cloud services on somebody else's cloud, but I can consume it with Cloud at Customer. >> Is it a transition point, because they feel good about this, they get some stability with the Cloud on Customer? Is it a transition point, is it a fixture, is it a blanky? Is it their binky? >> I think it could be both. I think it could be a transition point. I think for some customers again, depending on where they are, where they live, what type of industry, what type of data we're talking about, that might be the way they're going to consume it. Whereas I have data sovereignty laws, I can't actually move anything to cloud unless those change, but it still allows me to consume cloud in a cloud-like fashion subscription basis. Same identical services that we have in our public cloud, but just have it behind their firewall. >> So today's announcements featured partners pretty strong, and Oracle's always had a pretty big ecosystem. It's one of the key reasons for your success. And a lot of the partners out there would like themselves to start getting into the cloud, by offering services to their customers using a lot of what you're doing from a standpoint of moving your enterprise customers forward. As Oracle looks out at the landscape, you see Oracle, AWS, you're going to compete aggressively for that. But also your partners are going to step up, and they're going to offer their own cloud services. What about your customers? Do you anticipate seeing branded cloud services from your customers as they engage their customers differently through digital means? >> Yeah, that's actually a great question. I do think, yeah, a lot of our customers actually have their own services that they provide to end users. And I would say first, to back up, I think again it's about providing choice to our customers so they can engage within Oracle. They can engage with our partners on not only our technology, but maybe how do I migrate to cloud? How do I consume it in different ways? Also take a more solutions-based approach. (intercom blares) So if I'm looking at. Aw, we just got hit with that. Are they shutting this thing down in a few minutes? >> No no, we're good. >> A 16 ton thing's going to drop on the table. >> What is happening here? >> The Monty Python foot is going to come down on us. >> That's right. >> I thought that was a CUBE announcement sort of coming up. >> CUBE, Steve Daheb is on theCUBE! >> We should be announcing that. So I think that again, enabling the ecosystem to provide solutions. And I think as customers provide their own branded solutions, hopefully that's based on Oracle Cloud services and it's something that they can just re-brand, maybe augment, customize, and deploy for their own customers. >> They're giving us the bell here, but I want to get one last word in, we've got a little noise factor going on here. >> This is alright, man. >> The Infrastructure as a Service really is the third leg of the stool here for you guys. Big push here, you have the SaaS business on the press release. Second year in a row, Oracle has sold more SaaS and PaaS than any other cloud service provider. I think Larry used the word combined. Not sure I agree with that, but I haven't looked up the numbers, so I haven't fact-checked that. But then the next one comes down here as the second generation infrastructure that does twice the compute, twice the memory, four times the storage, 10 times more IO, 20% in price lower than Amazon Web Services. It's a new opportunity for Oracle to layer on top of our rapidly growing SaaS and PaaS. How are you going to layer infrastructures on top of PaaS and Saas? Isn't it the other way around? >> Yeah, I think it, yeah, sort of how do you look at it. They're tightly integrated. There's different sorts of entry points for IaaS. There could be discrete compute, but we think ultimately we see a lot of pull through from PaaS. So I might be deploying Oracle database but I'm doing it on a non-Oracle sort of application here. So I move the database to cloud and I pull compute to support that. And then from a software perspective, as Mark would say and Larry would say, we actually when we sell SaaS, you know, Software as a Service, we're selling that full stack to go along with it. >> Well, put it this way, that a database buyer looks at IaaS and sees infrastructure. An applications seller looks at the database and sees infrastructure. And so as you said, it's really what your perspective is. Containers is going to make it even more complex. >> Yeah, I agree. But it's interesting, 'cause I think ultimately that's the more strategic way that this is going to be consumed. I don't think you walk into somewhere, you say hey, you want some compute? We got some compute. Maybe more on the storage archive position, but when you look at the application development, when you look at applications, when you look at migrating databases, I think that's where you're going to pull through the infrastructure, and so that's why we're focused on offering all three layers of the cloud. >> There's definitely a trend towards enterprise-grade cloud, I was seeing that here at Oracle and at VMworld. We were just at theCUBE there. You're seeing this shift, they're getting out of the cloud game, so they're a different strategy. But Pat Gelsinger when I asked, pressed him on Amazon Web Service, saying did Amazon Web Service kind of force your hand? He kind of called it the developer cloud. That's how he called the Amazon Web Services. But they have developers. So my question to you is what's the strategy for developers? 'Cause at the end of the day we're seeing, talking to the VC certainly that was just on, there's going to be a mobile explosion of enterprise developers for mobile, cloud, lot of white space. You guys have an ecosystem, you have PaaS that's developer friendly. >> It is very developer friendly. >> What do you do with developers? Give us the update. What specifically are you guys doing in market. >> We have a big focus you're going to see with respect to developers. We've had Java developers that have been an incredible community for years and we've been serving them for years. I think Judy, before Larry took the stage, announced Oracle Code, which is going to be a multi-city road show where can get together. We're going to provide them access to Oracle Cloud, allow them to develop in multiple type tools, which I think was an important part of the announcement as well. Larry's saying look, it's not just about Java. It's about Ruby, it's about Python, it's about Node.js, it's about having an open platform that supports all developers. Tools like application containers and some of the other things. >> How would you grade you guys now? Not well suited for developers? Certainly Java you have developer community. But in market when you bring it to customers, is there a developer program that you guys have in motion? What's in the market? >> We do have things in motion. There's a developer program today and we continue to expand in that community. So we move away from just maybe traditionally Oracle developers to a broader set of developers. I think giving them a robust enterprise-grade platform, that gives them choice. So you're going to see a lot, hopefully we'll see you guys on the road at some of these events. But we're going to go out. >> There's a huge demand for developers to create opportunity in the ecosystem. I know you got to go, better wrap up. Thanks for spending the time. >> No thanks, a great way to wrap up the day. >> Congratulations, I know you're running hard. You look great, nice watch again. Yeah, flash the watch. >> I just miss the pocket square that you guys had in DC, I got to get that right next time. >> Best dressed man at Oracle. We are here live at theCUBE in San Francisco. I'm John Furrier, Peter Burris. Day one of coverage, three days wall-to-wall here live. TheCUBE, Thanks for watching.

>> Narrator: Live, from San Francisco. It's the CUBE. Covering Oracle Open World 2016. Brought to you by Oracle. Now, here's your host: John Furrier and Peter Burris. (Music) (Background Noise) >> Okay, welcome back everyone. We are here, live at Oracle OpenWorld 2016. This is SiliconANGLE Media, it's The CUBE. Our flagship program, we go out to the events and extract the signal from the noise. I'm John Furrier, the co-CEO of SiliconANGLE, with Peter Burris, head of research for SiliconANGLE Media, as well as General Manager of Wikibon Research. Our next guest, I'm excited to have him back because he's a product guy and we love to go deep into the products. CUBE alumni, Juan Loaiza Senior Vice President of Database Technologies, veteran of Oracle, welcome back to The CUBE. Great to see you. >> Thanks, great to be here. >> Love talking to the product guys on the development side because we get to go deep into the road map. And we're going to try to get as much information out of you as possible. But you'll do your best to hold back, like you did last year. Only kidding. >> I know. (laughter) >> Okay no. >> You must have me confused with somebody else. (laughter) >> Maybe that was Larry Ellison, well he hasn't been on yet. Larry, we'll get you on. >> He's not so good at holding back either. (laughter) >> That's why we don't let him on. That's why they won't let him on, I think. That's, Larry would be too comfortable in The CUBE. No, in all seriousness, joking aside, the hottest areas right now is in your wheel house. Engineered systems, which is going to be a real enabler for Oracle on the performance side. And as you make your own chips, ZF SPARC and Exodeum All this other cool stuff is going to go faster, faster, faster, lower cost, higher performance. The database... >> Better security. Better availability. >> Security, I mean. Amazing stuff. But the database is where the crown jewel is for Oracle, always has been. Before you put Web Logic on it, make it sticky. But now you've got the cloud. The cloud is a environment for great opportunity for the database, business and other databases, some Oracle, some not Oracle. What's going on with the database and the Cloud? Can you take a minute to explain the current situation? >> Yeah, so that's a big question. (laughter) What's going on? So what do you want to start with database or do you want to start out with the Cloud? >> John: Let's start with the database. What's going on with the database? And what does that mean for customers as it moves to the cloud? >> Yeah. So, database we're in the process of releasing our next big database. We don't release databases very often. It only really happens every few years. It's a very big deal. So, what we're trying to do with our next generation database is modernize the whole infrastructure, adjust to a lot of the big transformations that are happening in the marketplace. So among those are things like big data. Where do we go with big data? So, with our new generation database we're making big database and database work seamlessly together. So we have something called big data SOQL, where we can query data regardless of whether it's in Hadoop, NoSQL, Oracle. It's completely transparent. So customers no longer have these silos of information. Another big thing in database is datatype search engine. So new generation wanted JSON, it's called JSON, which is a new data format, so it's used in javascripts. So web developers develop in javascript. They represent data in JSON. And then they say, hey. I don't want to take my JSON data and convert it to relational data. It's a big pain. >> John: True. So, one of the things we've done in our new generation 12-step database was say, hey. Take that JSON, we'll put that directly into the database. We'll allow it to be queried. We'll make it highly available >> John: Without a schema. Without any kind of a schema, >> Nothing. >> just throw it in there unstructured. >> Juan: Just throw it in there. That's right. So we've made it very simple for new-age developers to use JSON with databases. That's another really big thing that's happening. >> So tell us what, just let's double down on that for a second. JSON has been a big trend in API based systems, lot of abilities in JSON endpoints. For user experience, whether it's mobile or web, very prevalent now. Pretty much standard. >> Juan: Yes. >> How does that get rendered itself from a customer's perspective? Are you saying that Oracle will just onboard it into the database itself? Or is it a separate product? Or is it, I mean... >> - [Juan] Directly into the data. So we have native JSON directly into the data. We've essentially added JSON as a datatype. We've added the sequel, we have SOQL extensions. You can access JSON like an index... >> John: So, I can run in single queries on JSON? >> You can, exactly right. You can very simply run SOQL queries on JSON. >> And what's the impact to the customer? >> Juan: And all the stuff that comes with that. >> John: And what does that solve? What problem does that solve? >> It solves two problems. One is, people like that datatype. So new-age developers, they're writing in javascript. They have JSON and they just want to use it. So they don't have to convert it. >> John: Which by the way, everyone's running in javascripts. >> Right, that's right. That's the big programming language. And the other thing is unstructured data. So, data that's not structured initially, that every piece of data has its own structure. So it's a representation for saying, that dynamic, unstructured representation that's very standard in the industry. A little bit like XML used to be before. JSON is kind of the new XML, the new-age XML. >> John: Yeah, that's true. How about the data lay concept? Because Hadoop as a market, just didn't make it, right? I mean, it's out, Hadoop is out there >> Juan: Yes. SPARC is certainly relevant because you have, you know, that kind of use space and memory and faster processing. But the real power is that that a batch oriented data set. As things like Hadoop and SPARC evolve, how does that relate to Oracle's product road map? >> Juan: Yeah, so we have our own Hadoop big data plans, where we run a cloudera-based Hadoop product and what we're trying to do is make those work seamlessly with existing databases. So there's certain kinds of workload and applications that hadoop is really good for. You know, kind of a frivolous example is if you want to find cats in pictures, you're not going to do that with an Oracle database. So you know, here's a billion pictures. Find all the pictures that contain cats. Not a good application for Oracle, right? On the other hand, if you're running analytic queries against relational data that's perfect for Oracle. So we see that these technologies can coexist. So there's certain kinds of applications that are really good for that dual kind of work. Or that certain kind of applications are really good for relational. And what we need to do is make sure that these things run seamlessly. >> John: What's the glue between those two layers? >> Peter: Well that's just it, there's even more applications where they're going to want to use both. >> That's right. That's right. We can't, >> So, what's the glue? >> Eventually everyone goes to both, right? >> Peter: Yeah, so what's the glue? What is that glue? >> Well, there's a number of glues that we built. Which is, one is called big data SOQL. It lets you query seamlessly across them. We also have connectors that let you move data seamlessly between them. So, those are kind of the main glues between them. >> So one of the things that we've observed is that, to John's point, there's been a lot more downloads of hadoop than we've seen go into production. It's become a very, very complex ecosystem and it's got some limitations, batch-oriented, et cetera. The challenge that businesses have is that they try to run pilots around hadoop, because they find themselves piloting the hardware, hadoop, the clusters, all the way up to the use case. And a lot of times they end up failing. How does something like the big data pliers facilitate piloting? Because it looks like it should reduce the complexity of the infrastructure and give people the opportunity to spend more time on the use case. >> I mean, you've got it exactly right. Which is, you know, there's some people that are hobbyists. Right, like there's people that want to build their own log cabins. They want to cut their own trees, kind of build their own planks and put together their log cabin. And that's kind of how hadoop started. It was kind of a hobbyist model, right? And hadoop has kind of moved to the next level. Now, it's people that want to get stuff done. And it's like, I don't want to chop trees. You know, I want to be living in a, just give me a house. >> John: Well actually, I wouldn't say hobbyist. I mean Yahoo had a need, they needed log cabins. >> Right. >> So they built one. You know, but it was a use case. The web scaler guys needed an unstructured... >> Right. >> It has to be scalable. >> But a lot of people are very much, kind of thinking build your own. So now a lot of people want a solution. They're like, you know, I don't want to be building this. So that's where big data plans come in. Because it's a complete solution. It includes the hardware, it's been pre-tubed, pre-optimized. It includes the cloudera software. It includes all our connectors and it includes support for the whole thing. Because that's the other part. You know when you put together your own house, who are you going to call when it leaks? Right? You're on your own when it leaks. If Oracle puts it together, we can support the entire staff when you have any kind of issue, any kind of problem. And that's the kind of stuff enterprises want. It's not a hobby anymore once it becomes an enterprise >> Peter: So given that we're in a big data universe right now, where we've got use case that are proliferating very fast and we have limited experience about them. But the technologies underlying that we're deploying to build those use cases are also proliferating very fast. Is it going to be possible for the open source model that presumes downloads, try buy, not sales people, not a lot of learning, not a lot of hand-holding to make it possible to fix that whole thing or make it all come together? Or is a company like Oracle going to have to step in and take some responsibility for guiding how the market evolves? >> Yes, so open source and Oracle can work together. I mean, we have Lennox distributions. We own MYSOQL. So Oracle and Open Source is... >> Peter: You're not at odds. >> That's right. We, in fact, are one of the major Open Source companies in the world. But you know, like I said, real businesses are in it as a hobby. They want a solution. They're looking at this as a tool. And a lot of times they want somebody that can support it, that can physically assure that it's going to work for them. And they have someone they can call. It's not just hey, I'm going to post a message on a message board and hope that somebody responds. Right? I mean when you have, you know, airplanes in the air. when you have, you know, dollars flying across the network. You need a solution. You need somebody you can call and you can guarantee is going to solve the problem. And also that can ensure that the technology moves in the right direction, takes into account what users want. And that, you know, a certain level of quality and assurance is built into it. >> Peter: So let's build on that. When you look at the future of database, what do you see? >> Juan: Well, there's a lot of different, so database is in a very big change. There's some big changes happening in the database world right now. More than probably ever before. One that we've been kind of talking about is sort of this big data hadoop. Another thing is JSON. Another area is in-memory is a very big change that is happening in databases. The whole moving into in-memory, into these different kinds of formats. Along with that, Oracle is pioneering moving database algorithms directly into the chips. The chip technology, to make it run dramatically faster, to make it more available, make it more secure. That's another big thing. Building multitenancy directly into the database, that's another big area that Oracle is pioneering. Instead of having it, kind of cloudify the database directly, negatively inside the database. Another big area that we've been working on is putting native sharding of databases directly into the database. >> How about data protection? >> Well that's in the multitenancy, right? Take me through the multitenancy a little bit. How does multitenancy inside the database going to work? >> Well, okay. So that's what we call our multitenant database. It's a little bit like VM. So, Vms say, hey it looks like I have a physical machine. But in fact I have a fraction of a machine. It looks like, it looks to me like a physical machine. In fact, it's a virtual machine. >> Peter: Okay. >> We're doing the same kind of thing with the database. So it looks like I have a physical database to the application. But in fact, you're sharing a database among many users. So what is the advantage of that? The advantage of that is we don't have one database. Or thousands of databases anymore. So many of our customers have deployed thousands of databases. It becomes a huge maintenance headache to have thousands of databases. Especially in today's security world where you have to constantly patch and update these things. You can't just kind of leave them alone anymore. So if you have a small number of physical databases and lots of virtual databases it completely saves costs. It's more agile. Opex lower. Capex lower. That's the new world of multitenant cloud data. >> John: Also it's brand new with appliances. And I want to get your thoughts on last year the big range that I liked was this zero data loss >> Recovery plan, yes >> ZDLRA. >> Juan: That's right. You got it right. >> What's the, I mean very fascinating, basically zero data loss. >> Peter: It's cool technology. >> Juan: Yes. So what is, is that still on the, out there? What's going on with that? >> Zero data loss and recovery parts is our fastest growing appliance right now. >> John: It is? >> Yes. Easily. It's been very well received by the market. We have some of the biggest banks now, running it. Financial institutions, retailers. Why? Because its a very simple value proposition. Which is, hey I want to protect my data in a way that it's constantly protected that I don't lose any data. In a way that is scalable. In a way that offloads my production database. It's a very simple... >> That's a grace saving situation, right? So like the people that have these security breaches, is this where that fits? Where's the use case for ZDLRA? >> ZDLRA is not security, it's about availability. >> John: Okay, so if someone basically shuts the data center down. >> Right. If that database becomes corrupted... >> John: In one region. >> If there's some natural disaster. If there's a bomb. If there's a whatever. Is my data protected? Will I lose anything? Nobody can afford to lose data anymore. In the old days, when you did a backup, you did a nightly backup and then if something happened, then you'd restore it. Well guess what? That doesn't work anymore. We're too dependent. So, nobody wants to lose their airline records. Nobody wants to lose their bank records. Nobody wants to lose their retail records. We can't afford to lose data anymore. We need a solution that's zero data loss. >> I'm surprised aren't, there's not more fanfare at the show about that. I was really impressed last year I'm glad to hear it's doing well. Containers. Database containers. >> Juan: Yes. This is something that we talked about a little bit last time. >> Juan: That's the same as multitenants. >> Okay. That's multitenancy. >> Juan: It's different terminology for that. >> okay, now cloud based databases. Now we get to the cloud. Where does all this go to the cloud. >> Okay, so you know traditionally customers deployed on premeses. what we're doing now is we're taking the Oracle database that we've developed the last 40 years. It's the most sophisticated database in the world. And we're moving it onto the cloud. So what does the customer get? They get, they can provision it instantly. So you go onto our website and say I want a database. Here's the size. Here's the number of CPUs I want. Boom. They get it. They pay monthly instead of paying upfront. They don't pay for the licenses. They just pay us a monthly fee. And then Oracle operates the whole thing. It's like, I don't want manage it. I just want to use it. So that's the benefit of the cloud. I go somewhere. I need a database. I get it right away. I don't have to mess with it. And I pay monthly. >> John: So the Oracle, on your Oracle cloud you would then deploy all those other goodness, ZDLRA, all the other technology >> Juan: All that stuff, yes. (crosstalk) behind the curtain, so to speak. >> Juan: So we have a range of offerings in our cloud. So we have a regular database service. We have an enterprise service. And then we have a high end service, an exit data cloud service, right? >> That runs our exit data. Super fast, super available. And then we have something called exit data express, which is the lowest cost cloud database in the world. So we have kind of three things, depending on what the customer wants. They want a smaller database for really low cost. They want a super mission critical, high performance database or they kind of want something in the middle. So we span the whole range. And, by the way, our high end is higher than anybody else. Our low end is lower cost than anybody else. So we span a bigger range than anyone else. >> You know Juan, next year we need to get an hour with you. >> Juan: Yes. >> To cover all the... >> Juan: It's a lot of topics. >> No. You're a great guest. And you have a lot of experience and a lot of, and we appreciate the insight. I'll give you the final word, I want to get one more answer out of you because you're awesome. You're sharing great insight. For the folks watching, what's the one thing or one or two, three things they should know about Oracle, Cloud, the technology, the database? The things going on at Oracle that they may not be hearing about it could be the best selling things. Something that's not on the main stream press reporting. >> Well, you know our Oracle cloud is pretty simple. I mean, the main thing to understand is that it's 100% compatible with databases on premises. So it's very easy to move workloads back and forth. That's the main thing. And the other thing is, we are, we use the exact same infrastructure. So we've been developing, for example, our exit data product, which is kind of the precursor to cloud. It's a very specialized database system run on premises. And now we're running that in the cloud. So again, the customer can get the exact same thing. And our latest offering is cloud at customer. So we take those same cloud attributes and we can put them >> John: It's the cloud machine, right? >> inside the customer database. >> Juan: Yeah, so we have a cloud machine, an exelated cloud machine, and a big data cloud machine. >> John: So customers get all the choices of Oracle. >> That's right. So the customer has full choice, they can move to the cloud if and when they want at the speed they want. They can move back and forth. They can do disaster recovery in the cloud. They can do backup in the cloud. They can do development in the cloud. So all these range of offerings, all these range of choices are now the customers. >> So true or false? Larry Ellison is the master at the long game? >> Juan: Larry thinks long term, absolutely. >> John: Of course, true. >> Yes, absolutely. He's brilliant and he's shown it over and over again. >> I agree, big fan. Yesterday's key note, Larry could've done better. But he was too busy getting all those announcements out that he was mailing in at the end. It was so many announcements. >> Juan: It's hard these days because Oracle, there's so much happening at Oracle. There's so much happening at Oracle. Juan, Thanks so much for spending your valuable time with us at the CUBE, we really appreciate it. This is SiliconANGLE Media's The CUBE. We go out to the events I'm John Furrier, Juan Loaiza Senior Vice President Juan Laoiza, Senior Vice President of Database Platform Services. Live in San Francisco. We'll be right back. (Music)

>> Narrator: Congratulations, Reggie Jackson. >> Certainly in the moment, is about what are youth is and who we are today as a country, as a universe. You are CUBE alumni. Live from San Francisco, it's theCUBE covering Oracle OpenWorld 2016. Brought to you by Oracle now here's your host John Furrier and Peter Burris. >> Hey welcome back everyone we're live here in San Francisco at Oracle OpenWorld. This is SiliconANGLE Media's flagship program, theCUBE, where we go out to the events and extract the signal from noise. I'm John Furrier, co-CEO of SiliconANGLE Media, with Peter Burris, general manager at Wikibon research, and Head of Research at SiliconANGLE Media. Our next guest is CUBE alumni, Chuck Hollis, Senior Vice-President of Infrastructure at cloud and storage. Welcome back to theCUBE. >> It's always a pleasure. I always have a good time when I'm here. >> So the best part of having you on is you've seen the movie before, you've lived it on other teams, you're now at Oracle, what, two and a half years? >> Chuck: One year at Oracle. >> Almost two years, so -- >> Chuck: I'm not dead yet. >> I don't think you -- >> What's that mean? Let's explore that. When will you be dead? >> You're looking good right now. You actually look like you been working out. >> A little tan, like you, like you, you know? >> So is it the country club here at Oracle? >> No, no, no. >> Chairs spinning at five o' clock? >> I'm up early and to bed late and weekends included, right? >> Well, certainly, Dave Donatelli's here, and a team of people really ramping up, essentially engineered systems, AKA hardware engineered in with the software. >> Both, in the cloud, and on premises, right? >> In the cloud and on premises. Clear, end-to-end oracle solution, which will, one, be optimized to run on Oracle, or -- >> Among other things, yes. >> So give us the update; what's the new announcements today? >> So Larry from onstage was very proud to talk about our new gen-two infrastructures of service, and our belief is there's a gap in the market. We have people doing public cloud, right, which, basically, is Startover, Azure, AWS. No chance of an on-prem solution. We have the private cloud guys, basically a Vmware shop, infrastructure only, no pass no nothing, and certainly not a lot of choices if you want to go to public cloud. We think that Oracle's doing a good job of creating that third option. Here's a combined, integrated strategy, on-premises and in the cloud, same technology, same set of capabilities aimed at enterprise applications that basically works the way enterprise IT needs it to work. So this next-gen two infrastructures of service is kind of the first peak of this massive investment we'd be making making entirely new infrastructure cloud that meets the needs of enterprise IT. >> So is this a reboot, or is this an extension of where you guys were? Some were, analysts were saying, not us, but -- >> Chuck: Ah, you'd never say that. >> Well, they said, I was using their words. Holger at Constellation said it's a reboot of their other infrastructure service, so he didn't want to say it failed, implied a transition -- >> Well, I wouldn't say it failed, it's more like a leapfrog. >> John: Explain. >> Oracle got into this business software as service, rather than standalone Sass packages, they worked on integrating everything tightly together, unifying the company. That was followed by platform as a service, aimed at 9,000,000 Java developers around the planet and everything they do. Infrastructure as a service was just made separately about a year ago. We got into the market, we learned a lot of things, but we also realized that we could actually start over again. We look at the engineering team, it's up to about 400 people who are building this next-gen IS, are all ex-Amazon, all ex-Azure. This is not their first infrastructure cloud, and because they were handed a blank piece of paper and said, "you can start over again," it actually is pretty exciting what they've done architecturally. >> So there's got to be something Oracle's doing that's distinct, so just for any number of reasons. Oracle has a lot of existing customers that're running heavy-duty enterprise applications. >> Chuck: Yeah, the tough stuff. >> The tough stuff, so talk to us about how the tough stuff is going to end up in the cloud. >> I think you bring up a good point. One way of looking at it now is that the easy stuff is gone. Desktop has gone to Office 365, and those kids from college are playing with AWS, and maybe I've got some generic workload consolidation sitting in the back room with a private cloud. What about those hairy applications, the demanding databases, in-memory analytics, the big to-do workloads? Where are they going to go? Well, what you see with out infrastructure-to-service is that we're actually providing two capabilities. We can run all of those through our cloud using those exact same technologies that we're running on-premises. You're probably familiar with products like Exadata. Well, you can buy an Exadata. You can use the Exadata in the Oracle public cloud, or you can consume it as a cloud machine, something we call "cloud-to-customer" on premises. And I think that's an important differentiation. A lot of this market is focused on consolidating generic workloads. That's more moderately interesting to us. To your point, what we're really interested are the big, hairy ones. As I joke, these are the ones that have vice-presidents attached to them, right? Yeah, the ones that people really care about. >> Peter: And typically eight figures. >> Depends on the size of the company. Like, Mark was interviewing a lot of people, a lot of customers this morning, and some of them were not large shops. >> But even those partners that're serving those customers often have eight figures associated with their investment in Oracle as well, so it cascades out through the entire industry. But it's also, I want to ask you this, Chuck. It's also not always the applications that have to be brought forward, but we were talking about ageism and it's always better if it's new, but there's a lot of skills in the industry. It's not a question of we want to bring them along. That's still where a lot of the value's being created, so talk about how this third way is going to make not only existing customers and existing apps, but also existing skill sets more rapidly develop inside and experience the expertise with these new technologies. >> I think that's a very good important because any IT organization's only as good as their skill set portfolio. I think anybody who's worked with IT understands that. By the same token, look at the portfolio. Walk into an average IT shop. Here's the stuff that was built decades ago. Here's the stuff that's kind of modern client-server three-tier. Here's the new stuffs that were using containers and microservices. If you're going to be an enterprise cloud provider to that IT shop, you got to support the old stuff, you got to support the kind of current stuff, and you definitely got to give a little pathway to the new stuff, and give me the ability to evolve that portfolio, and peoples' skills forward at the same time. This is what my big arguments that most public cloud providers is public cloud is easy. Just blow everything up and start over in our cloud. Well, as attractive as that might sound, that may not just be a financial reality for the majority of IT organizations. >> Yeah, operationally, too, they can't run their business. So so much for the container stuff. Ravello was the new container cloud server. >> Two things. So we have Ravello and we have a new container cloud service. So we'll put that on Ravello. So we all know hypervisors virtualize hardware. Ravello virtualizes hypervisors. What it does is it comes in to a VC or KVM environment, lifts it up, strips off the hypervisor, encapsulates the network to storage and the compute, then you can actually choose your cloud. You want to run it on AWS, you want to run it on Google, or do you want to run on the Oracle cloud? And it'll show you the prices for each, and you can shop there, so the reason we think that's interesting is nobody really wants to get locked into anybody's cloud, and if we can give people workload portability through VMs, that's great. Well, that's for stuff that we wrapped with virtualization. What about the new containerization? Well, trick with containers is container management, and today, if you want to do container management, you got to graft some open-source stuff and basically build your own. What Oracle has done is created and end-to-end container management service that says, alright, if you really would like to build your own, have at it, but in the meantime, here's something that kind of works. We can do that on-premises, on our cloud machines. We can do this in public Oracle clouds. We have this fast-burning desire to do this on other people's clouds just as soon as we get our own stuff sorted out. But it's the same thing. If I'm developing an application, Oracle has to go compete for that infrastructure business. It can't just say, well, you're an Oracle customer, you have go on all our stuff. And it would be the rare IT leader that would accept lock-in at the cloud level. >> There's no reason to do it today. There's absolutely no reason to do that. >> They may choose to go with us. >> But even if they choose to go with you, they want to do so in a way that doesn't force the lock-in. >> We all flew here, did you pay attention to the flight attendant when she showed where the exit rows are and everything? You may not plan on using that, but it's nice to know they're there. >> And it's nice for you to know where they are, too. Because you guys have learned that to stay at the vanguard of the industry, you have to be always aware of who's about to eat your lunch. >> And I think the Oracle database did a good job back in the day, and still to this day of being affordable. You can invest in the database, it can go wherever you want. And we're trying to do the same thing for that application ecosystem. And we're trying to involve three categories. The old, legacy stuff, the somewhat contemporary stuff, and the emerging containers, microservices-based stuff. >> So talk about your partners, because I know that something that we've been talking about on theCUBE a fair amount is -- >> Partners, we got lots of them. Infrastructure partners in particular? >> John: Well, Centure has an announcement. >> There's a disco party going on behind us here. >> There sure is, unfortunately theCUBE sign's in the way. Otherwise I could participate in it. >> I can see. >> But come back to this notion of a lot of the value that has always been created in the Oracle ecosystems has been created in partners. I have this theory, we have this theory at Wikibon that ultimately there will be more examples of college suppliers being created by your customers and your partners than by individual like AWS and Oracle and Microsoft. >> So Oracle's always had a very rich partner ecosystem. Applications, development, to infrastructure. And the exciting thing that I'm seeing with out partners is like they're seeing opportunity. So let's say that you have this cool vertical application. Five years ago your were selling on-prem hardware with all that entailed. Now you can run the in the Oracle cloud and simply sell a subscription service to your customers. You've evolved your business model forward. Folks that we partner with do application development. They have a platform now for application integration where they have vastly more capablites as opposed to the old school, got to go build it, got to go assemble it, etc, etc. The people who're feeling a little threatened by all of this not surprisingly, are the box-shifters, right? They're guys who just move hardware from A to B. And we're working with them, it's like there's still opportunity there. You just have to look up the stack a little bit. Their skills are still valid, they're just not assembling hardware. >> And you got a Centure announced that the business groups taking the infrastructure-to-service products out, that press release went out today. We covered that. >> I didn't know if that went out yet, but thanks for confirming. >> Oh, maybe that was embargoed, oops. >> Roll back, roll back, roll back. >> Put that back in the model, live TV. >> Centure, all these guys, they want to provide more value to their clients, and 10 years ago, that was stitching together hardware. Now it's about teaching them how to intelligently consume cloud. And I think what these partners like about the Oracle offering is designed to work the way enterprise IT works. It's not this, hey, here's our model, take it or leave it. >> One more thought on this, that there's a difference between the traditional, as you said, three-tier infrastructure, client-server innovation center, and some of the new analytic stuff that's on the horizon. Talk about how you guys are specifically focusing on some of the new analytics applications that are on the horizon coming into the cloud and how you intend to make the two worlds work better together. >> So I think that's great. Old-school analytics we used to call data warehousing, and business intelligence. That hasn't gone away. If you look back five years, it was all about big data, and mining values. Now we're moving to a phase of real-time decision making. Welcome to in-memory analytics things as fast as they can be. And once you figure out how to monetize data, it's addictive, you just want to do it faster and faster and faster and faster. Also, we're talking about relatively exotic infrastructure, right? Multi-terabyte memory spaces, shared Numa architectures. Pretty hard to go down to Best Buy and find the hardware for that and go build that, so as people start pushing the envelope, they're looking more for on-prem engineered solutions or more often, what can you do for me in the cloud. Interestingly enough, we talked about this gen-2 infrastructure service. One of the things it's very good at is having enormous memory spaces and very fast to compute, this kind of bare-metal compute we're seeing in real-time analytics. I think the other factor on this is internet of things, forgive me for playing buzzword bingo, the easy part is gathering the data. The real-time decisioning and actioning on it, that's heavy computing. >> Peter: And delivery with control. >> Yeah, delivering with control. You've got 10 million gas meters. Okay, how do I reason over that in real time, right? That kind of thing. >> So I had to ask you, we've been hearing about this spark-based exadata, what it's all about. What's that all about, is it a new product? >> Another member in the family. So you guys probably know the headlines on the spark chip has a couple of unique talents. It's got 32 encryption processors, so it can encrypt in real time, no delay. Has this ability to take queries and run them in silicon. It also has the ability to compress and decompress memory for in-memory analytics. So the exadata is basically a purpose-built, engineered system for database, so by taking our processor technology and putting it in this purpose-built machine, it gets a whole bunch of new talents for no more money because again, that's part of our differentiation. Things I've learned since I've been a year at Oracle is it's nice to have your own chips. Sometimes they come in very very handy as you build differentiated solutions, so I think exadata customers will have a new option, and I'm sure in the fullness of time it'll be available in our public cloud, it'll be available as a cloud -- >> But this brings up a good point, though. Intel was on stage yesterday, gave the same old corporate pitch, didn't really learn anything new there. >> Chuck: They had nice slides, though. >> That Ian Bryant's awesome. But the thing is, and Larry said that I find compelling is now that I can get your thoughts on it because it kind of comes back to the hyperconversion trend, which is he said, "we are going to provide it faster and cheaper." So he's clearly looking at infrastructures, bring this thing down, cost down to zero if possible, while performance he wants to bring up to a whole other level. How are you guys going to do that, what's the strategy? >> I think Larry and Oracle have the ability to invest like crazy. Don't forget, we build our own hardware. We build our own servers. We build our own data center fabrics. We don't have to buy this stuff from anybody. We build it, so Larry and the team, a couple years ago set this team up with a mission to go compete. Now if you've looked at Amazon, AWS margins, you know there's a lot of fat there. They're also running on really old stuff, the basic architecture was designed 10, 11 years ago. I don't want to throw aspersions around, but you could call it legacy cloud, right? >> John: What do you call it? >> Legacy cloud, anything 10 years or older, it's got to be legacy. So there's a clear opportunity to go build something new. That being said, this is a big boy's game. This is not let's round up a couple million dollars of VC and build a new cloud. So to look at the aggregate spend Oracle's putting behind this infrastructure -- >> Well, you just said the big boys are public, like Rackspace, they couldn't make it, right? So you're starting to see, they were a little, kind of a big boy, I mean... >> They're reasonable out there. But look at it this way, Oracle's got a national software franchise. Much like Microsoft does bring people on. We build our own hardware. We build our own data centers. We actually can become a vertical supplier in this and the argument is efficiency is result. >> So we're going to see Dave Donatelli on Wednesday after his keynote. I know he's prepping up for that. How's it going with Dave, what's going on with Dave? >> Dave's having a good time. I mean, we all came to Oracle on the same premise, is that the industry was rotating, and I think we've seen that in some of the analyst numbers, less and less on-premise spend, more and more spent in the cloud. >> A lot of new hires coming in from an industry that we know on Oracle, pre-existing players. >> And if you asked 'em five years ago if they ever would end up working for Oracle, they might have not said so. >> John: You're being polite. They'd say, "no friggin' way." >> Go through your mind and think what are the traditional on-prem IT vendors that transition their customers to the cloud? It would be a very short list. >> So you buy the whole cloud-broker Dell technologies? >> They don't have a cloud. I think customers want to consume cloud. >> Bing cloud air network now has 4,000 cloud providers. >> All slightly different, all slightly different. >> All working together with hypervisor. >> It's like a big portfolio management company. >> Is that a chess game, or is that just hail Mary? >> Vshpere was designed for the data centers. EMC bombed 10 years ago. Our tech's designed for the data center, and it wasn't designed for a world where people don't want data centers anymore. So I think VM ware's very challenged because their technology and business model is standing up viable public cloud options. The last big one was, oh no, we can't do it. We'll go to IBM. What's your cloud strategy, VM ware? Call IBM? That's kind of a rough deal on a sales call. >> Well, if you put it in the context of a V-cloud air network, you could argue that they're giving up the cloud. Basically, VM world, they said, "we're done with the cloud." they yielded -- >> Peter: I don't think they said that, John. >> They yielded that they weren't going to have their own cloud. >> Absolutely they yielded. >> They yielded on not having their own cloud. >> Okay, they yielded on their own cloud, that's what I meant. >> Nothing more than kind of a boutique offering, and certainly there's a market for small regional service providers around the world. No argument there. And there's a natural tendency, but as I look at people going to cloud, the sticking point isn't the hypervisor, the sticking point is the database and the applications, the middleware. This is something Microsoft has done brilliantly with Azure. >> Larry pointed out that's Ernie's call. Microsoft's well ahead of Oracle on migrating their install base half into their cloud. >> And that's what you guys have to try to figure out how to do as well. >> We're well along the way. But the point is that without that franchise, that's a tough road to hoe, right? The infrastructure guys maybe, the applications guys are the ones you want to talk to. >> Peter said, I'd like to get your thoughts on a comment Peter made on our intro with Matt Eastwood from IDC, everything's on the table. Ecosystems, channel partners, >> Chuck: And we're shaking the table apart. >> So if you have the gravity, an Oracle face of the world that's a suite, which I think is a little bit orthogonal to where the cloud is, but I get the language of Oracle the suite. Is it gravity around the suite, not a winner-take-all? >> You got to be able to pick off pieces and they have to stand on their own. >> You could build a ecosystem around that, and open ecosystem, so that means a new lock-in spec is stickyness, or pure performance, or not, am I getting that right? >> I think Oracle's going to try to play on both sides. If you appreciate the value of the suite, the IAS working with a pass, working with a Sass, great, we have all those pieces; pick and choose. Larry made it pretty clear. He wanted to go head-to-head on iops, memory and core, and dollars per whatever. Oracle intends to feed on that as well, so it'll be interesting to see how this plays out. Nothing like a low price to get an IT buyer -- >> Well he said, and the word he called this is interesting, he was overselling in my opinion, I've heard Larry. >> Chuck: Larry? I can't imagine he'd do that. >> Larry was overselling on their earnings call, but I don't think the analysts understand, they don't see the long game. You look down the 20-mile stare, it just hasn't even started for Oracle. >> Larry is a master at the long game in ways that I'm just now starting to appreciate. >> Well, let's be honest. What is the most sticky thing in the industry? Your applications, that's the stickiest thing in the industry. After that, the developer ecosystem and then you get down to the hypervisor, and you get down to the first -- >> Chuck: And then you get to the wires that connect it together and all that kind of stuff. >> But the most sticky thing is the businesses are still run around some of these floor applications. >> Well, that's why I brought up the suite angle, because I think that the developer angle is sticky because agility has proven that not everyone can build a killer app, so for instance, with an HCM there's probably some feature of HCM that is sub-par relative to some genius entrepreneur that eats, breathes that one feature, has an app, that could be integrated into that feature. >> I think that's your point, and with the platform-as-a-service offering, oh, you want to add it, do something different, great. Yes, exactly. >> It's all a continuous development, continuous integration, but that continuity still is close to the application. >> Yeah, ecosystem to me is, I've heard talks about what the developers' market, go-to-market strategy is. If that's in place, Oracle could have a very robust -- >> We're seeing the both the same thing on the hardware and the software. So hardware, build-your-own, is starting to get out of bow, ya know? Less and less popular buying servers and storage and knitting them together. A lot of guys still buy into that, but that market's going down. I think you're going to see the same thing with software and applications. Rather than starting with a blank piece of paper, where are the big chunks of enterprise functionality that I can grab out of the box and build the thing -- >> Reused, preexisting applications. >> Yes, yes! >> Everybody's talking about business capabilities, right? And the idea is that this capability is the things that I have to do to perform the activities to fit my business needs. And those activities are people, and increasingly, software. And being able to grab those capabilites and pick parts of them from the industry and weave them together quickly, continuously sustained, the match with the marketplace, to your point -- >> Well, we're going to have Juan Luzon next, and we're going to go deep on this, but I think -- >> That was a great guy. >> The API economy, if anything, showed us one, security is FUBARed and needs to be fixed fast, and the encryption on a chip thing has been downplayed. I don't know why Fowler's not getting more airtime on that. That's a really huge thing, but the API economy has proven that this ability to pull stuff that someone else has already done, not assembling like a junkyard kind of situation, why build it if someone's got to get it though an API? >> You talk about giving capital management, right? And you know, there's 175 functions, I don't know, some large number of function there, they're fine. I need this one little thing, so I'm just going to extend it, and still do it in such a way that I'm not developing -- >> And a developer who does that becomes a feature in a bigger pie. I mean, he'll make more money, doesn't go out of business, doesn't try to go public. >> So I wanted to share, before we wrapped up, one interesting thought. We all talked about cloud is coming, cloud is coming. I actually got tangible evidence at the beginning of the year that it's here. So a new word was given to me, cloud quotas. Cloud quotas, and it was kind of funny. This is happening mostly in the larger banks. Senior management, executive management, you're a little slow on this cloud thing. Let me help you out. We'll set a strategic objective. Five years from now, how much did we cloud-spend? This year, your cloud quota is 15% between cloud and non-cloud spent. Next year, etc, and I think what we're seeing is that kind of like the gears are starting to rub, between the businesses says, guys, this can't be so hard. Let's get on with it. >> I'm sure your sales guys have cloud quotas, too. >> Different kind of cloud quota. Different kind of cloud quota. >> On that point, 20 years ago, when it became very popular to pay executives on the basis of RONA, return on net assets, it was right about that time that outsourcing got popular. >> Shocking, isn't that, your mess for less, right? >> Sounds like cloud. >> Okay, bottom line, for the folks at home, Oracle's infrastructure stuff that you're involved in is not new, but it's growing now because it didn't have a lot of nurturing. It was always kind of like that back office secret sauce. What's the update, give a quick update. >> We want to give people a strategy for their enterprise applications for cloud. If they want to consume on-prem, great. Engineered system's cloud equivalence. You want to consume off-prem, same set of capabilites and more in our public cloud. You want to consume the public cloud in your data center, that's a cloud machine, and it oughtta be the technology stack and the set of capabilities. Geographical location, the consumption model really doesn't matter, and when we put this in front of large IT shops, and even smaller ones, they're like, this is great. I can build my architecture, I can build my strategy. I don't have to make a cloud decision now, and if I do make one, then I can undo it later. That agility has become very very attractive to people. >> I could invest in options but have a future. >> Chuck Hollis, Senior Vice-President of infrastructure, congratulations, and then Larry Ellison got to the end of his keynote, didn't have a lot of time, but there's a lot of meat on the bone in the keynote, that he kind of, he couldn't hit. Welcome to the cloud, too many product announcements. Welcome to Amazon's world. >> Peter: Seems excited. >> There's a lot of stuff coming down. It was great talking to you guys, thanks for your time. >> Thanks for sharing your insight and the data and the bits here. Here at theCUBE, we're always sending out the packets of content out to the network, live, original content. I'm John for Peter Burris with SiliconANGLE theCUBE. We'll be right back with more live coverage after this short break. >> Hi, I'm John Furrier, the co-founder of

>> Narrator: Live from San Francisco, it's the Cube. Covering Oracle OpenWorld 2016. Brought to you by Oracle. Now here's your hosts, John Furrier and Peter Burris. >> Hey welcome back everyone, we are here live at Oracle OpenWorld in San Francisco on the show floor. This is the Cube, SiliconANGLE's flagship program. We go out to the events and extract the entrepreneurs I'm John Furrier. Co-seated with me is going to be Peter Burris Head of Research for SiliconANGLE. Also the GM of Wikibon.com our research arm. Our next guest is Reggie Bradford who is a Senior Vice President of Product Development for Oracle Cloud. Reporting for Thomas Kurian who could not make the keynote last night but he did send in the tape during the Diane Bryant thing so that was really good. So hope everything is going well with his family. Welcome to the Cube. >> Thank you, glad to be here. >> Okay so you're a product guy which is great 'cause you're now on the product road map. You get to look at the holistic picture, not so much the go to market which Oracle has that separation. >> Yeah. >> The Cloud is really a conversion of Ironman when you think about it. The stack has to be set up in a way that enables innovation, at the same time preserves the value of what's moving to the Cloud or what get's started >> Yeah. >> in the Cloud. Cloud-Native. Take a minute to describe what Oracle's doing in this regard because you do have a huge install base. >> Yeah. >> And Larry pointed out in the earnings call, they're not yet moving all over yet so Microsoft started their progression. >> Yeah. >> You guys got a huge tsunami coming. >> Yeah. Well I think it's an evolution. It's not a revolution, first of all. So we have 420,000 customers worldwide as you mentioned of substantials installed base. As Larry has mentioned before with Thomas, we've been working on the Cloud applications for over 10 years. We started with a SaaS layer. Now the PaaS layer and the infrastructure layer. I think that if I was to use a sports analogy, we're in the first inning of a nine inning game so we're just getting started. >> First of all we love sports metaphors. I had it at top of the second but okay we'll give early innings. But Fusion ten years ago was kind of pre-cloud although Larry had the famous Churchill Club video I think about ten years ago with the Sun guy saying the Cloud is just a data center with an address that nobody knows. It's essentially that kind of concept. So I can see the progression of the ten year run but something happened four years ago. We could feel it when we were covering it, the show here. You saw Larry on stage almost knowing what's coming. They had not yet released the Fusion base. What's changed in your mind internally? And share with the folks, what's the internal pulse? 'Cause some say you're late to the game. Which you guys refute. You're in top of the second, how late can you be? But how much more work needs to get done? Can you share >> Yeah. >> the internal mojo, mindset, vibe and what work needs to get done? >> Well, I think let's start with it's a 135,000 person company. Not that there's corporate inertia but it's a very large company with a lot of customers that have an existing installed base. I think that we're I definitely don't think that we're late to the Cloud. I think if you look at the work loads that have been done to date. Something like six percent of workloads had been done in the Cloud. But I think that I can't speak for the past. I've been here for four years. My company was acquired. I agree with you. The energy and momentum, the acceleration, the sense of urgency is palpable. And it continues to accelerate. I think there's just this recognition that we feel like we've got a very strong position and a strong hand and we're going to play that. >> One of the things Larry mentioned on his keynote yesterday and which came up today is that Amazon is an environment where you can go to and you've got to do all this work. Oracle, you can just move stuff to Oracle, and it moves to the Cloud instantly. But it still brings up the integration game because it's still a lot more kind of point solutions out there. >> Yeah. >> You can call a startup doing something. >> Yeah. >> An ecosystem as a feature, not a company that would might want to plug into that so how do you bring friction-less integration with a suite mindset? Because essentially Oracle has that gravity. >> Yeah. >> But at the same time you don't want to get stuck in that as an Oracle only solution. >> Absolutely. >> How do you integrate well with others? >> Well first of all I'd say it starts with a mentality that when I was running my startup in 2011, if you think about just the marketing cloud alone, Scott Brinker has the landscape of startups in the Cloud. There was 100 I think back then and I think there's almost 4,000 now. Just in Marketing Cloud alone so the Cloud has opened up a huge era of new startups and innovation and credit card swiping and companies can get into that. That challenge for that is, as Larry said last night, nobody wants to integrate 50 different applications from 50 different companies. I think that we come in with this, we've got all the layers of the stack but we've also got to have a mindset and a mentality being able to be open to best and be -- to bring in end solutions from startups via APIs and making it easy for them to work with us and want to partner with us. I think that's the future for Oracle. >> Do you see Oracle inside or do you see Oracle facilitating other brands? So is it more, going back to what John's point was, is it customary to sit down with an Oracle screen and access stuff? Or is a customer going to sit down with an Oracle framework and know what they're accessing through the partners? >> Well I think it depends on the product and the customer. I'd say we're going to be both. I mean I think we've got the breadth and depth and capability to be it an inside platform type approach or infrastructure but also if you look at an HCM or ERP or Marketing Cloud, we're going to be on the front end. >> Do you anticipate that you're going to go more horizontal as opposed to vertical? So you're going to go from the one infrastructure to the horizontal and then let other folks verticalize? Is that kind of how the thinking is? >> I don't know that we see necessarily a distinction at this point. We obviously have a big industry. You guys have probably talked to them before. Go to Market Group, our entire business unit, but I think we're going to continue to take the market, what the market gives us, and continue to push out our solutions. >> So Reggie, I've talked to a lot of your customers all the time on the Cube and channel partners at Oracle and one of the things that keeps on coming up is that the swim lanes of the database is a big part of the business and you start to see now with the Cloud being more of an integrated IaaS, PaaS and SaaS, the role of database is certainly changing. But it still makes up a big bulk of the business, however you kind of consolidate the numbers. However they fall, the database is 70% roughly the business. My opinion. My analysis. Okay so I wrote a tweet last night, kind of being snarky, but kind of on the whole Tom Brady thing, bringing up sports a analogy. "Free Tom Brady," I said, "Free Database." (laughing) Meaning that one of the thesis that the Wikibon research have come up with is that with free data, you have more data exposed for potential use and by having locked in data, you can still manage the systems of record and then start getting at a whole new set of engagement data that could then spawn another set of innovation on top of it. This is clearly where the market's going in memory and whatnot. So question: What's going on with the database? How do you talk the customers into saying okay the database is going to be fine, use some other databases, they'll still work with Oracle. How do you have that conversation? Are you breaking down that swim lane, broadening the swim lane for the database team? >> Yeah I think from a business model standpoint, to use your Tom Brady analogy tweet. >> The database is suspended for four games? (laughing) >> I don't want to make any declarations on the future business models but I think the fundamental underpinnings of a lot of these new capabilities that are enabled with data, whether it's AI, machine learning, internet of things, I think that those are going to be best leveraged when you've got the broadest and deepest swath of internal and external third party data. And we feel like we've been in that business from day one forty years ago and now we have the broadest suite or capability and data and integrating that data and making it easy to consume and use. >> It just seems that the old move that Oracle made, which I thought was brilliant, the database business, and web logic was a nice sticky component of that, allowed the extensibility. So we're seeing that same dynamic in the Cloud where we want some reliability, we want some high quality. As Larry said yesterday, it's hard to do what you do, I get that. But at the same time there's a growth opportunity, an innovation strategy for Oracle and your partners. Developing an ecosystem or potentially a channel partner. >> Yeah. >> We need to see that thing so do you guys talk about that in the product group and what specifically does that translate to in terms of new features, new focus? >> Yeah we've got a very robust data cloud strategy which is leading in the internal and external third party. Marrying those data sets together and integrating those into our product suite on the applications side. Specifically around the database, opening that up to third parties and how that evolves, I think there's going to be more to come on that. >> What's the biggest thing that people are missing when they try to understand and squint through the Oracle breadth of massive size? When you look at the Cloud strategy, the numbers aren't really killing it. It's four billionth for Oracle. I mean it's still small relative to the big piece of the pie with a lot more growth to go. If that should be comforting to Wall Street at least but from a market perspective, what does the Cloud mean? I mean how do you have that conversation? >> I think that what's missing is that if this was a stand alone company it would be an incredibly viable IPO-able company with a growth rate faster than anybody would scale on the Cloud. Growing double the growth rate. I think another unknown is that we sell a lot of product to companies under 500 million in revenue. 75% of the user base, of the customer base, is under 500 million in revenue so we call that small to mid-size business so everybody thinks Oracle is only an enterprise class company. We are enterprise class but we also scale down and I think that's part of the announcement you've seen today. >> And the new net, new customers are higher than they were. >> Exactly. >> And the growth thing I'm like, okay you know 77% from where you were, I doubled my market share from one to two percent. I mean, percentage is a good benchmark, I get that, but at the end of the day the numbers are the numbers so Cloud-Native is attractive But it's hard. We were talking about it in our intro. It's hard for companies to get there. >> Yeah. >> They have their own inertia. So we're really trying to understand, what's the path for the customer? When you talk to a customer, and think about the customer from a product that you just roll out products, they want that bridge. Is that the past layer? How do you guys -- >> Well we try not to define it. I think it can be challenging because we do have so much product. >> Yeah. >> And we cover so much ground but that's what makes us so successful and that's why companies rely on us. I think the good new is, we have the most flexible platform. If you want to move some of your workloads, you want to move some of your applications to the Cloud, you want to do a hybrid, you want to transition over time, we've said a 100% of our customers are going to move to the Cloud and a 100% of our applications are going to run in the Cloud. But we haven't set a time table on that. >> I want to spend the rest of the time of the segment, to talk about your entrepreneurial background. You sold the company to Oracle four years ago, so you've been in the system for four years but prior to that, you had to be nimble and you also did some acquisitions. I don't know if they were hires but ultimately you're putting together a lot of stuff. So dealing with different product road maps. So two questions: One is how does that go on today? Is there any agile to that in terms of doing that? Is it hard? Is it easier today than it was before? And two: For startups out there, there are a lot of startups that aren't going to make it. They're not going to be the unicorn. They're not going to be that big company but they might be a nice 10 million dollar business. But it's looking for an ecosystem. >> Yeah. So the second part, which I'm going to take first is I'm a startup, I'm not going to make it to the IPO. Maybe it's a lifestyle business, cash small business whatever the word, I need a home. I need an ecosystem. It would appear that you guys would be a good fit for those kinds of companies. Can you share your thoughts on what those entrepreneurs should be thinking? Actions they can take? >> Yeah I mean I think first of all this is Reggie speaking and not Oracle but as a startup, find a big addressable market opportunity that nobody has. I know it's easier said than done. Surround yourself with great people and focus. I think the biggest challenge that startups face is they try to do too many things or be all things to all people. If you can find that niche, yes you know I've been part of -- We've acquired, personally speaking we've acquired many, many, many companies that fill a particular niche. It's easier for us to acquire and to integrate than it is for us to go build it ourselves. I think that's the mantra. >> So the first part of the question, now that you have that entrepreneurs, how's that translate inside Oracle? Because if you think about it, Oracle also does a lot of M&A. A lot of organic growth as well with R&D but you have to kind of pull those together. Does the data cloud, is there new fabric that gets developed so it's not like -- You know some startups go, you be by yourself for a little while and then some get integrated in quickly. Is there a way for an environment to be agile in the sense that you can just plug these new opportunities in. >> Well I would say again having gone through three acquisitions, and this is the God's honest truth, Oracle knows how to acquire companies better than -- certainly it's been the best experience that I've had over the other two. We can always improve. You know a lot of times you read about or follow the big tape deals. You know the NetSuites of the world and that but there's a lot of smaller companies that get acquired and I think that there's a very solid methodology and approach that we take that enables us to capture the value of these startups and make them feel like they're part of a broader company. More than half of the employees at Oracle have come through acquisitions. >> Yeah. Reggie, final question for the folks watching. What's the one thing they may not know about the Oracle Cloud that they should know about? >> Again, what I think that they probably don't know is we are working with companies that have as few as one or two employees that are using our cloud right now. So we're not just a company that's only available to enterprise. We are contemporizing our offering for companies of all sizes that want to deliver better quality and to lower cost. >> Cloud for all. >> Cloud for all. Exactly. (laughing) Democratizing the Cloud. (laughing) >> I wish we had more time. I'd love to dig into the developer conversation. How you guys were with developers. Any quick comment on the developer angle? >> We've always >> You own Java so it's like-- >> Yeah, we've always sought developers and I think if anything, you're going to see us push further towards that community. It's so vital and important for us to develop new products to integrate and create more capability. >> Looking forward to following up on that. Thanks for coming in and sharing your insight inside the Cube. Really appreciate it. >> Thanks for having me. >> Reggie Bradford here inside the Cube at Oracle OpenWorld live in San Francisco. More coverage. Three days of wall to wall live coverage. 35 segments. I just saw CNBC packing it up. They only had a few interviews and they go. So it looks like we won first round. Day one of the bake off between Bloomberg and CNBC. You're watching the Cube. Be right back with more after this short break. (upbeat electronic music) >> I remember

>> 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)

>>live from San Francisco, extracting the signal from the noise. It's the cues covering Oracle OpenWorld 2015. Brought to you by Oracle. How your hosts, John Courier and Jeff Rick Wait, >>We are here. Live in Howard's treated oracle. OpenWorld for Silicon Angles, The Cube Exclusive coverage Star flagship program. We go out to the events extract the cinnamon noise. I'm John Kerry, the founder of Silicon, and Brian gracefully lead analyst on all the cloud and all the infrastructure stuff going on here. Next guess is Jeffrey Davis, Principal Gore, Oracle, global leader for Deloitte and Touche. Legend in the industry. I've been covering Oracle for a long time. Good to see you, John Bryan allegedly knew she had to get that in there. Love that. You know you guys are. The service's angle has been something that the service's business is. It's been changing radically. Now more than ever with clouds. I really want to get your take because you are an executive looking at this transformation of cloud. But the Lloyd across all the Oracle customer base, your party with customers. So you're the front lines. I gotta ask you straight up. What is the number one thing customers are looking at right now that you partner with four Cloud to figure it out. Is it a migration? All the above, And what do you think about that? So when customers are evaluating the cloud or our clients are looking at the club, you really focus on three things. One is agility. Thea other one is time and the other one is valued. So how quickly can we adopt to the changing environment? How quickly can we leverage technologies like clouds in order to be able to respond to our customers, to adapt to the changing needs of our employees, to embrace our business strategy in a new and innovative way? So I said legend, you know, talk about the eighties for women on camera. That's important point I want to bring up. Is that Is that the old way? Big growth of client server was around software middleware right year BC around you name it that created huge consultancies like Lloyd, you participated in that create a lot of wealth creation for the customers, create value, right, but their cycles were long in the deal. That'll be about 12 13 years now, months and almost a year or two, there were all these big deployments. Now the cloud is accelerating when you compare and contrast time of then share. And now with the cloud Just how much the deployments change the software, the organizations, How you guys operate a new way to do that job well, and we're all responding to the market, right? While responding to customers needs Cloud didn't come about because of technology in it of itself. But we're really all in this ecosystem responding to our customers must customers a really demanding from us is there demanding agility and speed. As I said before, if you take a look at the way we used to do things, basically you had a a large capital investment on the part of the customers. They went, they bought the software, they bought the hardware, they had to hire the expertise of an advantage, mail the eggs, and you're looking at a transformation for them that could take anywhere from 12 to 24 months or longer before they would get time to value. And, you know, these projects didn't go as planned. No, that's this is Yeah, I know the change orders came in paid more cash on DSO. We all got a really bad reputation because of the high costs in a long time to value and even if value was ever realized in some cases, now we take a look at the environment and what the cloud enables us to do is move in a much faster pace. Way used to have what we call a waterfall approach to design and implementation went into a big room and you talked about the world and I never ran that way. And then you put it into the system and then people never really embraced it, because when it came out, it didn't look like anything they thought they were gonna get. This is completely different with cloud. Now you can take an agile approach. Now you can sit and listen to the customer demands very quickly respond to what they think they need, where they really generate value. And then you can focus on those things and very quickly there, in a design session with you And at the end of the day, >>changed management is much easier because they've been a part of the process and also, you know, looking at 90 days sprints. You're looking at things that are done. You know, in >>six months, six months, time to value that can give you compress a competitive advantage. You know, that could help you retain Maur employees or customers. So it's really some timetable. Met Lavery s V p of the Cloud Gru. Gru Integration was saying they were doing provisioning on in 24 minutes. Multiple deployments like like nobody's business. What has them in the timetable that you're seeing for some of these times of value, horizons means hurdles. These milestones said days, weeks, months, hours, minutes. I mean, when you go to a customer base where their expectations of what you guys deliver, there's some insight there. Some of it depends on the environment. So remember they're still clients. We have local customers that are in a highly regulated industry or have a very complex prisons process. Those are gonna take a longer there is they're gonna take in. Technology is not necessarily on the critical path. But when you look at those other areas that frankly, you don't differentiate yourself very much or speed with a solution concave you a competitive advantage. You know, you're looking at a client expectations of anywhere from 90 days, you know, to six months, you know, manager here, very manager, but aggressive. Visa VI the old way. Well, certainly, And the other piece that we're not really talking about is, you know, it's not enough for us to put the technology out there. It's also got to be used and adopted. You know, when you had those large transformations. It's very hard for an organization to absorb all of that change. Now we're looking at the fine entry point that you could get with clouds with that fine entry point. Now we can sub select areas with greatest impact, but we're not changing the entire organization. >>Mark Hurd has the C I. O. G. On this morning and one of the comments that he made. I've heard this a number of times over the last 12 18 months. He essentially said, I have a ton of undifferentiated applications now. They're things that that Oracle thinks are fantastic. HCM and C. R. M and Air P. But in essence, everybody has those. Every business has those very undifferentiated, but they're complicated. What? You Seymour, you see more people saying you know what take those. Help me migrate those into SAS applications, you know, save costs. Where do you see more saying, You know what? Give me the other 20%. The ones that drive business differentiation, ones that are new cloud native applications. What do you see in your mix? What's pushing your customers >>to push you? You know, it depends on the geography, and it depends on the industry and some other things. If you want to talk about North America, which tends to be one of the largest markets in the world, if not the largest market in the world, when you're looking in North America, really people have gone through a lot of the major ear piece. Remember the earlier conversation? You know, they have suffered through tens of millions, hundreds of millions of dollars, and their boards were not satisfied that they got the results of the expected. Now, when you take a look at what's happening, you know, people are now being much more strategic in their investments, much more prescriptive there. Look how they spent exactly, because now the boards have different expectations. They've already gone and spent all that money on technology. They can't go back to the board. Can't say we need to redo this. What they do are willing to fund is you want to get into a new business. If you want to spin something off, you need to stand it up right away. If a customer you know, provide you a new opportunity, you want to shift to that new opportunity. Really? Well, technology is the basis of a lot of this transformation. So Cloud provides that opportunity and it's modest investment with really quick, high value. It's a great point >>you look at I t In the past decades prior to this evolution, we're seeing the cloud consolidate, consolidate, consolidate, right? I don't know the well again. I just went to the well, apparently running, you know, whatever the model was there. But now they're under a lot of pressure to drive top line revenue. Absolute. Now, the top line revenue equations, a completely different mindset. You have to go out and oh, cut the market. You gotta use a shadow I t or your authorized go out. Do legitimate stand up new platforms are Can you give me an example of that? We're seeing more of that now. A clear Mandate. Cee Io's Go take a New Hill or let's consolidate these apt and reposition for this new use case, which is not. That's experiment, but it's certainly a new market opportunity, and they gotta do their due diligence, so it's almost unparalleled. Due diligence kills your waterfall. That's one doesn't talk about that dynamic. Where examples you give go. Take that new top line revenue driver. So you know that there are customers that are looking at new partnerships in the marketplace, and those new partnerships have dynamic new business models. You know, it's not like opening up another hamburger stand. You know, they're not necessarily expanding into our core business. They're really looking at ways to amplify growth. If you're gonna take that as a strategic position, then you know customer or client of ours would focus on, you know, let's take this innovation the market. We don't want to invest a lot in it, waste a lot of time and lose the competitive advantage. Let's >>get to market first. Let's provide a new product or service to the market where we can move very quickly, and then the >>net result is we can see the benefits right away. And if it isn't way, haven't sunk a lot of time and money and something that's not necessarily gonna have the same values. We just had Shawn Price on. And I'm gonna ask this because it's a lemon that you're in because you're part of the customer right here, the strategic partner of the customer. So that idea top line revenue growth could come from a partner. When I see How do you work in that? Quick, You're cool to work with my Aunt VI's. Bring that into the table. You're absolutely so this market is changing. You know, Cloud clearly changes everything and much more so than some of the things we've seen in the past. And so now we need to position ourselves differently now for the Deloitte Business Model way. We're really in a specialized business of focusing highly on value and value creation. We weren't necessarily in other areas and we have different partnerships now. Those partnerships are shifting. Oracle provides us a complete platform. You know, we don't >>have to really get involved in a lot of the aspects of the platform that, frankly, we're in our core competency and frankly, weren't our clients what >>you talked about that customer interaction? What do you have to do to change what we've seen? Different size, trying different approaches? We've seen some that are partnering with cloud Provider, but they want to be their own flat for acquiring them. What changes in terms of the skills you have to hire the way you expect that interaction toe happen between you and customer. Because to a certain extent, like for developers, developers love self service. They do. You know, they they are shadow I because they're driving What changes in your world for that? >>So this is really kind of an interesting question. Very early on, when Oracle made cloud product available >>in HCM, we saw an opportunity. Our clients had the demand because they wanted to create a more sticky environment from customers. What better >>way than providing them better products in the HCM space? We made major investments there. Now we're a leader in HCM, and if I look back over that experience, what do we do differently? First of all, we had to change our mindset. You know, it's not enough just to say the cloud, but you gotta live the cloud because it truly is more agile. It truly is faster. You can take your old methods and tools and approaches all the things that worked for you before. A lot of them don't work anymore. There's some but some really good winds here, especially in the change management side. Also, you know, we'd have clients that had to kind of do it yourself brain surgery that have to order their own hardware that have provisional themselves. You know, that became a real mess. Now we're looking at something that's a lot different. We're not in that business anymore. You know, we do support on Prem where our clients think it's important and strategic course. But now we've got a new, agile methodology. Now we've trained our workforce. We've got 14,500 professionals around the world. We've had to move that group, and Oracle really helped us do that. They've been very collaborative in sharing I p and sharing methods and tools with us so we can make that adjustment. Not only have we had to change that when you think about our other methodologies, all of our other methodology to create value to change management, they were all thoroughly integrated. We've had to rethink those, but it's been a great story because we could go to the client. We can say we can get you there faster because where technology was a barrier world, >>it was on the critical path. We're now changing that. And by the way, this technology is not your old technology. It's much better. It's much more robust. How >>do you you know, obviously we're here It at an oracle OpenWorld. It could be called Oracle Cloud >>World if we really wanted to. I mean, >>it's a lot of it is the red stack. A lot of it is one cloud. How do you manage that against customers saying, Well, look, there's other options as well. I wanna have the ability to leverage this cloud for something. Oracles cloud for certain things. How do you do? You find your customers want multiple clouds or one cloud is good enough? >>Well, we're all teaching right? We're all teaching the world about God because you know there's still people that look at it in a variety of different ways. I think it's an excellent question, so let's think about this. >>Do you want to be your own systems integrator for your smartphone. You want to go by an operating system? Do you want to go buy a separate peace of heart? Where do you >>want to decide what APS fit? What don't. And do you want to actually try to get those abs together? I don't think we want to do that anymore. And I try to use that as an example for my clients. Tell them. Look, let's not be your own systems integrator. You is a iittie executive. You could be an officer toe, help the organization get to their business goals. You know, you're not in another yourself a business objective, but you could be an agent for change. I try to educate them so they can help their colleagues explain cloud, take the fear out and then show the art of the possible. What about the security model? I mean, I wouldn't get your take on you little bit biased because your manager Oracle really? But what would be global, critical or complementary events? How you feel about it? But the intense security message is really a game changer in my mind. Follows on incredible theory. Incredible application. Certainly the product's gonna be ready soon. If it works, it's like a car that does the key turnover. It's like it's all good on paper. Certainly a game changer. Security outside number One thing you're hearing Get some color to that because, you know, if that plays out, if you believe that end N security on the chips and software Silicon plays out the way they say it would, that's gonna change the game. For sure. It is. So none of us and you can go through a week without hearing about a major security breach. When you think about this, you step back and think about the potential here. Our stuff is starting to talkto our stuff. But our stuff isn't unless it's based on. Oracle isn't all thoroughly integrated, so somebody can break into our stuff and they can get access to our lives and they can change our lives. That's hugely powerful. So we are very concerned about security, and Lloyd is one of the largest organizations. In fact, we have a cyber practice that looks at both Proactiv reactive aspects of security. Here's the big concern we have as all this stuff starts, get interconnected. The Internet of things, security becomes a major issue. We need more breakthroughs and security. And I think oracles on the vanguard certainly as we get into what we call a hyper hybrid cloud on Prem on Cloud. Some of that's gonna be a great emotion is no. Perimeter is nothing either. Protect is the Wild West total while and, you know, despite what you believe, boards and people are not reacting fast enough to security threats. And that's why you're seeing these breaches into my knowledge. I don't think anybody has been breached with Orgel security in place. But that said, you have to be really, But still, they probably would get out. There's not that they're hiding it, but the point is, you need to be united engine system. It's hard to do that in a open source world, right? So you have a horizontally scaled open source phenomenon, and it's growing our market and a vertically integrated product requirement. You believe I want Indian security, then you gonna go vertically integrated. You do purpose built. But if you want scale a 1,000,000,000 large scale a k a cloud, you want horizontally scalable. How do you reconcile that with your customers? Well, you know so again. It's difficult for them because unless you've had a security threat, it's very difficult to really get them to take the initiative. You know, the more that we can build security in, the more that it's covered in the Red Sea. More that we get a comprehensive end to end product. I think it allows us to help the client realize you know the risk and help them. The old Fowler said. In The Cube they had they had this done in 2005. Finally took a bunch of security breaches to get people's attention to your point. It's on everyone's agenda. Number one right it is. And yet you know how much is enough? Well, we find the people are too reactive and not not proactive enough. >>What's the What's the temperature of your customers right now? I mean, you know, Tesla's out, they're disrupting Uber's out. Their Airbnb are they? Are they sort of defensive and paranoid? You know that Andy Grove, always trying to be aggressive with a saying No, no, no, no. I'm not letting these little guys into my market. I'm gonna go be aggressive and try and push back what a general feeling. There's a lot of interesting startup disruption going on really changing industry. >>There is, and you know, there's so many sort of partnerships and alliances, mergers and new innovations. You know, right now, clients are very uncomfortable. Just the transition from on Prem to Cloud is a major change in our clients have been the expert for technology for decades for their organization. They are having trouble keeping up with all of it. It can be disruptive. They're looking at what's unique in their industry. You know what is regulation driving? You know what is innovation driving in their industry? But, you know, they're always on the learning curve. They're always trying to figure out if we want to get your final thought wrapping up here to get your take for the folks that are watching here on camera that couldn't make it here were beloved world. What is this show about it? We've been here six years. You've seen that transformation. About four years ago, Larry looked like a deer in the headlights, almost stuck in his tracks and smoke coming out of his ears like he felt that the scene felt like a pivotal moment couple years ago. And then since then, just been every year. Oracle just gets more and more energy, just like dominated that march of the crowd. Almost like four years ago. Like we're gonna win that. What's your vibe? You see that same thing here and shared some color on the take is over the years, and we've been doing this a lot in various forms Over the years. There's been the promise of riel innovation. There's been the promise, real change in the industry. We saw sort of incremental change. We really see increments. Exponential change now and now. The promises fulfilled. We have real product. We're taking the market. We're doing interesting product, right? Israel product. It's very riel, and we have work to be done. But yeah, really studies and customers? Well, it's an evolution. But this is really sort of an epiphany at the moment, because we've never had, >>you know, full sweets of product in the marketplace. Not right now. I don't know that there are any other large you know. Air Pia options in the clouds away there is for Oracle and look at the host of service is that have been announced over the last year. >>This this particular show for us, you know, really isn't accelerating. All these products and service is in the cloud that are now available. They give us a lot of different options that we never had. A great quote. Put that on a cube. Jim. Thanks for joining Us. Way are here live in San Francisco's Howard Street for the Cube Special. Exclusive coverage of Oracle OpenWorld Q. Be right back with more of this short break. Thanks for watching.

live from san francisco extracting the signal from the noise it's the cute covering oracle openworld 2015 brought to you by oracle now your host John furrier okay welcome back everyone we are here live in San Francisco on Howard Street for oracle openworld special presentation of the cube so looking ankles flagship program we go out to the events and extract the system noise i'm john furrier founder of SiliconANGLE join my next to gas prakash ramamurthy senior vice president systems and cloud management basically management cloud at oracle and mary johnson Turner research vice president enterprise systems management IDC welcome to the cube thank you so I think take my glasses off to read read the intro there but I want to just get your take on it because we just had to admit on Lavery talk about the plowed and one question I didn't get to ask him was a success mark hurry was talk about the pipeline of customers already in motion on the cloud so I wanted to ask him which is great timing for you guys is how do they integrate it which he talked about but then how do they manage if this is a big issue and he you know ease of use is something that he was generally throwing around there so what is the status of the management cloud because that will be a differentiator like security and to end as a differentiator management certainly will be to me not just table stakes it's really differentiated absolutely i think we're here because we're launching it today actually the management cloud and the interesting thing is this which is today if you look at it whether it's on our cloud or on-premise the rate of innovation is very very robust right i mean you have a mobile phone you're seeing your apps getting refresh twice a week or or even faster than that so what it means is you need the next generation monitoring solution that can monitor all of that so our goal with oracle management flower is to help you manage and monitor your solutions independent of where they are deployed if you deploy it on oracle cloud you little come bake with it to be able to monitor it right from the get-go or if you still have it on premise we will allow you to monitor it and break down those data I low so it is very effective so like you said is very very critical that people look at what their challenges are today in terms of proactive monitoring and troubleshooting to get to the next generation solutions we are providing theory I want to ask you a question on the trends but before that I want to just say that one of things i love about doing the oracle shells are six year the cube here is that for an old-timer like me seen the client-server live the client-server Revolution which is now kind of almost a point in time now it's almost it's over now we're into the cloud cloud modern error it's interesting to see because the same same things keep coming up again it's like the platform's the tool is so I got to ask you the question on what is the key trends that are driving this new application space because if you look at the client-server one of the big things that really was huge was the application market mean that would grant it was siloed up by you know by vendors but now with open source this is a huge application boom right now that's gonna impact IT operations sure yeah I think that if you look at it there's been like you said a couple of generations of technology we had mainframes things changed really slow right then we had client server which was to give business units and developers more control and things started to speed up and change a little more quickly but now in our current and cloud native cloud based development real-time microservice open source-based kind of world the rating pays the change is almost constant you're seeing so many organizations that are moving to continuous delivery modes much of it hosted on public cloud or hybrid private public cloud and they're changing features and functions every day and that creates huge management challenges in terms of just trying to understand is the end-to-end application performing effectively are the end-users getting what they need are the business decision-makers really understanding the impact of those outages or upgrades and it's so it's very complex and then I think it's raising the set of requirements for a particular application performance monitoring and IT operations and log analytics I was Oracle addressing these trends because one of the things that people like tonight I'd like to put things into two camps rip and replace okay or evolutionary development and we're clearly on the McCloud evolutionary because Oracle has it's not gonna be it's not gonna go away right so you can say Oracle native is the cloud strategy to all the Oracle customers but yet now with open source there's net new applications that do you got cha vows to 20 years anniversary so there's new stuff going on IOT is a huge application market right now now I can run an IOT thing in the cloud somewhere else or maybe on Amazon or somewhere else but the other day I have run through my operational assistance assistance of engagements this is a record which is Oracle right so is it an Oracle native cloud and the cloud data mean it how do you see oracle addressing that dynamic are they well positioned well i think oracle has a pretty broad portfolio you know they've had again from a management perspective they had Oracle Enterprise Manager on Prem for many many years i think that the new offerings that are being announced today really are interesting that they extend Oracles of monitoring and analytics to a whole range of cloud-based solutions many of which may not necessarily have been born on the Oracle platforms so I think it's a good recognition of the need for heterogeneity and the need to recognize that it is going to be a very hybrid world for many many years so I think that those are all real you know positive factors and then the new releases and it was talking about the integrated pass perform as a service Enchantix connect those environments but on the management side what are you guys delivering because that's going to be the challenge Prakash to talk about the specific things that you guys are announcing and delivering the customers today so specifically we are delivering three services first one is around application performance monitoring that allows our customers to stay ahead of their customers and their problems and give them the best user experience and monitor that and troubleshoot that and then the second service is around managing your logs and extracting IT operational data and business data out of it today if you look at it the most common thing people do with the log is to archive them and put it away because they don't want that to interrupt their production systems but that has a ton of good information so we have that second service eight exhaust becomes gold exactly so today what happens is they just get put away they get archived and that has real nuggets of business information and IT information being able to collect all of that and use it for your rapid troubleshooting as well so that's the second service the set third one is around IT analytics I call those first two services kind of like the Fitbit for your applications you're constantly getting vitals out of it and white throw that away if you don't have an issue still use it to run some interesting capacity friends and forecasting and all of that so use your real data to forecast your IT health as opposed to using a spreadsheet with some random data that you collected in a point in time so that's what we are announcing three services application performance monitoring log analytics and long term trending and forecasting with IT analytic Isis plunks been doing some log files how they were born people's blunt their data exactly they are trying to kind of get into that how do you guys compared to things like splunk and other tools I know tableau is a new relationship that was announced for the data visualization yeah Larry kind of talked about that yesterday talk about that how people are using that data exhaust give me some examples so the most fundamental difference in what we are doing is this which is we do not differentiate the sources of data and the classes of data when we bring it to the cloud so it could be metric data but with that you can collect based on your monitoring your health of your applications which splunk doesn't do for example and then log data but collect all of that and correlate it together so that in essence what we want to do is this which is the enterprise's today don't have a really a data problem they'd have an insight problem which is they want to be able to just see the right amount of data when they have a problem not all the data when they have a problem depends how you look at the data problem they'll have a Jerry problems you define that as they get all this data so you're plenty of data that's the problem there's no dearth of data problem yeah so that's what I'm i know i know i just kind of making this fun was good comment because i like that because that's that is really not an issue the data is coming yeah and that's you know Brandon whole know the problem you guys have scale now with that but the I don't Linux is a big thing I wanna talk about that because it can be problematic I'm a talk to some customers all the time and they say if someone comes in here and sells me another dashboard I'm gonna shoot myself exactly so it's like because and I said what do you mean by that he goes well there's so many alarms going off I don't know what to pay attention to that's where we start to see machine learning from these tools can you share any color what your great wine Larry I'm it's exactly right which is one of the underpinnings for us is to be able to automatically generate baseline and detect anomalies the last thing I mean our product support our own public cloud and I hear from the guys who run the cloud saying don't just give me another alert tell me what I need to do with an alert because I need to be able to disposition the alert so what we want to do is to understand the normal behavior of your application and only alerts you when there's an anomaly okay so that's part of our machine learning and prioritisation learning some learning algorithms in volved understand some pattern recognition that's right things and only tell you what the outlier is and when and and ask determine what the outlier is that suppose you setting thresholds for us to know it because sometimes things change if you are an e-commerce application or the day before Thanksgiving would have a different pattern than the third week of January right me just that the way the world works so what I want to talk to you about Larry made a comment yes in the key no I just like to take a dig at work day but you know in the way he likes work day because you know it's competition and also highlights from the features that Oracle has but what work days actually losing some share to service now a company in here in Silicon Valley that is an itsm IT service management company and they have been very successful their developer program which actually is starting to nibble away at work shares market share because they're building these developers are building these really focused age are apps that is not flat point it's a tool I know like an offense report for example and works really really well but work day has a plethora of features and they don't always have the best in class features uh-huh so that brings up the whole developer angle what do you and you guys have a story there for developers api's how do you talk to the absolutely share absolutely we have a rest api that the developers can use to collect the data from there into their own dashboards if they want to and also for example you can automatically deploy our agents when you're using our Java cloud service so that monitoring gets baked into it so we have api's for both inputting data and torque loud and extracting data back from the cloud will have api's for you to take the events that we generate into your own event dashboard that you have I'm a developer have a team like I could do some stuff filled my own kind of visualization UI and just have JSON endpoints come right into the absolution absolutely maybe I know she smirked when I said service now you will share some insight it's a this dynamic because this is kind of what's happening on the cloud these tools are popping up yeah well yeah and again I think what we're talking about today is to be able to monitor and analyze and optimize a lot of those different tools and deliver them via cloud platform and I think that we are finding that DevOps organizations are very interested in cloud-based solutions that help them do this better cheaper or faster so I think that you know I think it's an opportunity service now has currently been a pioneer in the delivery of system management as a cloud based model and I think it's interesting that Oracle is actually choosing to enter that market in in a different place yeah I mean actually I just a strength and you got the systems of record a on the right and and really talk from your really you know to Prakash this point really focusing on data because managing effectively managing the performance and operation of applications and complex environments it's all it is a huge data problem and you've got data coming from so many sources so many formats and being able to take that in rapidly to transform it normalize it and make it digestible for humans it's something that is really important in these complex environments and yes I think it's going to be interesting to see I think it's a great try or agree with you I think it's a great strategy by focusing on the data you have a lot of range and I wrote a blog post in 2007 now I'm going way back date is a new developer kit and now that's actually happening you look at data people are playing with the data like a developer place with function calls if you will so we're seeing now is a data rich environment hence the not not a problem of having enough data laying around the problem is how do you use the data you're getting all the products yeah inside is a huge problem and that's only an accelerated by faster performance machines in easy-to-use environment like I'd better analytics because you you want if the user knows what the problem is that they're looking for there are a lot of tools that will help you find it yeah but if you do not know what the problem is and to guide them towards the problem is is where where there's real opportunity and there's a real pain point in these enterprises especially now that you and I don't tolerate a downtime so you never cut anybody slack saying oh the website is slow but they've been innovating I'm gonna give them some slack nobody does that yeah yeah so and because now everything is measurable now for the first time in the history of business everything is measurable that's right and that's like just mind-blowing to me but i think is a huge app i only get your thoughts on the application market because I just see a massive tsunami coming of third-party developers and I'm not sure Oracle can handle that I didn't that's my personal opinion counter that I mean I people want to know can Oracle handle an ecosystem of third-party developers absolutely we have shown that before with with Java and I think you see every one of four services having open api's we are coating third-party developers we will be continuing to support them and I think we'll be able to handle it and we need to do that as a part of this ecosystem yeah I mean it's a platform yeah so you have to enable absolutely and that's the open message exactly all right so gosh what's your advice for the people at oracle openworld here and the people watching let's start with the people here on site if they catch this video when are we putting up some snippets before you even get off the set here so one what session should they attend what's where should I get more information what sessions and breakouts and then presentations they goes I have a keynote tomorrow at 11am that I would love for them to attend and outside of that there are some hands-on labs here that they should go look at the products and people who are remote they should go to cloud.oracle.com / management where we have all the services listed and take a look at it and we are really really going to be putting out a very differentiated solution than what is available in the marketplace and I would love for them to check it out and give us feedback for the folks watching online and customers in general when they squint through all the activities a lot of bombs dropping here at Oracle I mean a lot of announcements this is pretty pretty unprecedented what should they look for what are the if you at the point of someone to 11 point data point within your world that's going to get their attention and have them dive in deep what should they look at if they're having issues with their applications today if they're hearing about their application issues first from their customers and not by themselves they should be looking at our solutions to see how they can get ahead of the customers and that's what that's one precise message they can take back

bye okay welcome back everyone this is SiliconANGLE and Mookie bonds to cube our flagship program we got the advances reconsider from the noise I'm John foreach n with Dave vellante here for just a conversation Dave about what's going on oracle openworld day one of three days of live coverage here in San Francisco what's your take dick well first of all John miss you yes I had furrier withdrawals here so welcome back them first segment we've done together all day I was out at Santa Barbara last night in checking out the scene down there made it back not going to miss an Oracle OpenWorld for the world I love a work eloping world because it's like Isla Vista in Santa Barbara except it's tech people going crazy over the technology so mas coyote is draped in Red John well different in a few weeks ago at vmworld but I mean it's always great because you know Oracle has the muscle Dave as you know we always talk about every year Oracle's so you know transitioning from that telco role of extracting value from the ecosystem Oracle's making moves Larry Ellison really is a gamer he wants to make his mark on the industry he sees himself as the heir apparent to steve jobs in the end the end the historic hall fame of tech industry and he's here to win it's a game to him and I think you see oracle just in the past four years since we've been covering them being kind of a this is a throwaway game for them to like really being in the game they're making the announcements they're heavy and cloud they're making a faster more relevant timely announcements again they're a monster they're in there a huge accounts huge dollars and a rounding number on their sales spreadsheet would take a company public these days so you know those startups are doing well Oracle still has the muscle and they have huge clients and I'm going to watch and I think you know you ask me might take perform over here a consistent story from Oracle it's engineered software engineered heart with hardware it's vertical integration it's trying to develop best to breed its spending on R&D now they've basically co-op to the Big Data theme you know we hear a lot about their cloud so you know it's fun to criticize Oracle right they charge a lot a you know coops industry terms and act like they invented it on and on but here's the deal they spent a lot of money on R&D Allison's like a start-up CEO I mean he's that engage them I resisted this session talking to some executives and in the infrastructure business and they're telling me I Larry's call me every week wants to know the update on the new product and output when it's coming when it's ready you know herds the same way so you guys are intense focus on as you said winning that is all about winning it's a zero-sum game to Oracle it's the chest it's a chess board for Larry and I think you know one of the things we're seeing some news here we had our guys at the press conference mark hurd made an announcement about the human capital management software you know they're you know it's classic Oracle swiping at the competition work day has been booming of late and you know they're under pressure you know and you know workday asli the PeopleSoft guides have a huge chip on their shoulder they're winning they're doing well and Oracle's not happy about it so I mean obviously they're going to be moving very very aggressive against that and then just in all fronts the chessboard of conversion infrastructure the Sun acquisition really the ultimate cherry on top for Oracle relative to their future positioning they are betting the ranch on an apple-like strategy where containing the hardware focusing on the software and bundling in the hardware to the software as a fully enclosed system purpose-built hardening it out is ultimately their big bet David I'm telling you it will work for some companies and that lock in is a small price to pay for the functionality if they can deliver well and I think they I think Oracle can deliver you know the question is is as we're talking about with ray Wang can they deliver both on the promise of integrated systems I have no doubt Oracle can do that because they're spending a lot of money on it they got good technology people they've got good technology and and so eventually they're going to make that integration play work and they already are making Network the big question I have John is can they innovate and be best to breed at each layer of the stack that's something that's really hard to do guys like EMC and Cisco and VMware have chosen to partner to do that that's always been IBM's big challenge right i mean what's IBM number one at what product is IBM number one besides mainframes it's hard to come up with one okay then same question of Oracle what product is Oracle number one at besides database that's Oracle's challenge you know can they be best in storage can they be best in servers can they be best in applications they would argue their best in applications and I think big date is a big challenge here we heard inside the cube here day one that people don't want to pay licenses for data that's not being used and there's a big issue around the how data works how people using their computing environment it's not a monolithic environment anymore relative to the database there's new unstructured environments most of the data is not stored in relational databases why should I pay an Oracle lights of them I got virtualization I got scale-out open source these are new environments that are putting great pressure on Oracle and if you look at Mark Hurd and how he reports to the street all he talks about is our revenues licenses are up x percent barrel tins of the market well if demarcus declining and you're up what does that mean maybe this shifting to another area so Dave this is a concern that I have about Oracle is their core business metrics might not be on the right numbers yes software's growing relative to what I'm a declining market or shifting market those are the open questions we will find out this backdoor I think that well here's here's something I want to share with you so we did some wheat research and Wikibon fifty percent of the customers that we talked to in the Wikibon community said they're willing to risk lock-in to get integration and function so then and only fifteen percent said we're dogmatic about open source now over time that open source crowd as you well know is going to build up the capabilities but fifteen percent is the toehold for the start of startup crowd Oracle's working on that fat middle and that's really where they do let's talk about the dogmen the dogma for IT enterprises simply there's contract negotiations all posturing for contract negotiations almost every single CIO I talk to and we've talked to Dave have either told us publicly and privately hey at the end of the day I care about the cost structure the environment and to if there's a hardened top unlock in it doesn't it's irrelevant then and the example that we've always using the cube is you the Intel microprocessor do you really care about the proprietary software involved in an Intel processor no just gets the job done and it enables other things that's the key question that we're looking at right now in the computer industry is where is that hardened environment where being collapse elation of the complexity has been taken away to the point where it's absolutely functional that is ultimately to be the key and I think that's going to have to enable data fabric layer and then top of stack of applications I think that's a VMware strategy is a good one I think of Oracle can pull that off they could be the Intel of this cloud error well the other big battle is the organizational battle because Oracle obviously sells the dbas and application heads and everybody else in the hardware business sells to infrastructure people and let's face it the dba's and the application heads have all the juice in the marketplace so that's those guys are driving the buying decisions now as companies like VMware become more strategic they can maybe get some access to those individuals but still Oracle an essay p own that it all you do skoda you go to sa p sapphire you come to oracle openworld a lot of suits you go to emc world and you're seeing you know a lot of infrastructure people so that's a big battle that people taking on but i would if i'm a customer i would absolutely have some alternative infrastructure around wouldn't go just all red stack there might be some situations where i want to do that i guess the point I'm making is a lot of the application heads don't care if they spend more on infrastructure they don't care if they get locked in because they care about how fast the application runs how easy it is deploy how agile it is what their service experience is like that's what they care about I think ultimately it's going to come down at ability to be flexible have the application support so Oracle obviously will have the ability in most their companies to do that the question is do they have the right product mix and I think giving the customer's choice that's what we've seen with OpenStack in particular and you look at OpenStack what that's done is given this choice to the enterprise's to do whatever they want relative to having a private and public and hybrid cloud environment and that's ultimately going to help with the kind of the choice option so I mean that's kind of we've heard Oracle's portfolio or has got one of everything we heard you were in the cards so you didn't hear Thomas curing this morning but I mean you would have thought they were invent big data I mean it was a dupe connectors in-memory databases you're talking oh you know no sequel key value stores we got at all and they do actually have a lot of that hey so the portfolio is very robust they can tick the boxes they can they can play that functionality game with anybody and the real advantages they talk to the CIO now over here you've got the walk-off the marc andreessen crowd right none of my startups by Oracle hey stuff so it's those guys it's the open source crowd that ultimately is going to get leverage in the marketplace and you know John you and I have talked about this in the cube a lot ultimately long term open source wins Gary Blum was on the cube earlier CEO of now CEO president MarkLogic Dave he's been a I think 17 years of Oracle insane amount of years he's been there from the beginning he goes back to veritas as well you know he had an interesting point he said that in MarkLogic they have a half a DBA for ten dba's that are on staff for oracle that's a nine and a half labor pool reduction in cost and you're granted some of those guys might retire kind of like mainframe guys in the old days but like still you don't know about a massive amount of restricting of resources I want to get your take on the data economy type role I mean the data economy we're talking about new economics what's your take on I mean that ratio is really the kind of magnitude we're seeing relative the big data so here's my take on that is is I think that rightly so the startups are doing what Larry always does he compares his state of the art to somebody else's n minus 2 and that's what the startups are doing right there's a lot of legacy Oracle environments very easy to go in and say okay I can reduce your operating expense here's the challenge Oracle knows this and they see that threat so what Oracle's trying to do is is is cut that you know to whatever degree it can cut that and and close that gap and then you know have the cios bet on oracle because their quote unquote less risky right nobody ever get fired for bringing on IBM so the game that they have to play I heard Gary say we have a five-year lead on the competition so it's like fusion-io and EMC right EMC it lead on on emc we had packed LC on the QB said hey we're behind we're going to catch up how did they catch up they went out and they bought a company now I haven't caught up yet but they went out bought a company they started investing R&D but they're closing that gap and so that's the game that they play okay we're here inside the cube this is SiliconANGLE Yvonne's coverage of the cube stay with us we're going to be going to come back with Jeff Kelly Dave next we have any more guests coming in we're done this is a wrap for the day okay we'll be back tomorrow on Tuesday stay here SiliconANGLE guns the cue our flagship program day one wrap up here at Oracle OpenWorld yes my goal she's coming on we got a bunch of guys coming on from emc emc has 80,000 oracle customers oracle itself says it has 40,000 hardware customers so that's going to be an interesting we want having a special thanks out the qlogic for letting us stay in their booth again fourth consecutive year the legacy SiliconANGLE and CNBC are broadcasting live here at oracle openworld this is day one coverage with new Act tomorrow with the keynote in the middle of the afternoon all day coverage starting at nine at ten o'clock tomorrow morning here from the cube stay with us and see you tomorrow