>> 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

>> 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)