(bright music) >> Hello, everyone, and welcome to this CUBE video exclusive. This is Dave Vellante, and as I've said many times what people sometimes forget is Oracle's chairman is also its CTO, and he understands and appreciates the importance of engineering. It's the lifeblood of tech innovation, and Oracle continues to spend money on R and D. Over the past decade, the company has evolved its Exadata platform by investing in core infrastructure technology. For example, Oracle initially used InfiniBand, which in and of itself was a technical challenge to exploit for higher performance. That was an engineering innovation, and now it's moving to RoCE to try and deliver best of breed performance by today's standards. We've seen Oracle invest in machine intelligence for analytics. It's converged OLTB and mixed workloads. It's driving automation functions into its Exadata platform for things like indexing. The point is we've seen a consistent cadence of improvements with each generation of Exadata, and it's no secret that Oracle likes to brag about the results of its investments. At its heart, Oracle develops database software and databases have to run fast and be rock solid. So Oracle loves to throw around impressive numbers, like 27 million AKI ops, more than a terabyte per second for analytics scans, running it more than a terabyte per second. Look, Oracle's objective is to build the best database platform and convince its customers to run on Oracle, instead of doing it themselves or in some other cloud. And because the company owns the full stack, Oracle has a high degree of control over how to optimize the stack for its database. So this is how Oracle intends to compete with Exadata, Exadata Cloud@Customer and other products, like ZDLRA against AWS Outposts, Azure Arc and do it yourself solutions. And with me, to talk about Oracle's latest innovation with its Exadata X9M announcement is Juan Loaiza, who's the Executive Vice President of Mission Critical Database Technologies at Oracle. Juan, thanks for coming on theCUBE, always good to see you, man. >> Thanks for having me, Dave. It's great to be here. >> All right, let's get right into it and start with the news. Can you give us a quick overview of the X9M announcement today? >> Yeah, glad to. So, we've had Exadata on the market for a little over a dozen years, and every year, as you mentioned, we make it better and better. And so this year we're introducing our X9M family of products, and as usual, we're making it better. We're making it better across all the different dimensions for OLTP, for analytics, lower costs, higher IOPs, higher throughputs, more capacity, so it's better all around, and we're introducing a lot of new software features as well that make it easier to use, more manageable, more highly available, more options for customers, more isolation, more workload consolidation, so it's our usual better and better every year. We're already way ahead of the competition in pretty much every metric you can name, but we're not sitting back. We have the pedal to the metal and we're keeping it there. >> Okay, so as always, you announced some big numbers. You're referencing them. I did in my upfront narrative. You've claimed double to triple digit performance improvements. Tell us, what's the secret sauce that allows you to achieve that magnitude of performance gain? >> Yeah, there's a lot of secret sauce in Exadata. First of all, we have custom designed hardware, so we design the systems from the top down, so it's not a generic system. It's designed to run database with a specific and sole focus of running database, and so we have a lot of technologies in there. Persistent memory is a really big one that we've introduced that enables super low response times for OLTP. The RoCE, the remote RDMA over convergency ethernet with a hundred gigabit network is a big thing, offload to storage servers is a big thing. The columnar processing of the storage is a huge thing, so there's a lot of secret sauce, most of it is software and hardware related and interesting about it, it's very unique. So we've been introducing more and more technologies and actually advancing our lead by introducing very unique, very effective technologies, like the ones I mentioned, and we're continuing that with our X9 generation. >> So that persistent memory allows you to do a right directly, atomic right directly to memory, and then what, you update asynchronously to the backend at some point? Can you double click on that a little bit? >> Yeah, so we use persistent memory as kind of the first tier of storage. And the thing about persistent memory is persistent. Unlike normal memory, it doesn't lose its contents when you lose power, so it's just as good as flash or traditional spinning disks in terms of storing data. And the integration that we do is we do what's called remote direct memory access, that means the hardware sends the new data directly into persistent memory and storage with no software, getting rid of all the software layers in between, and that's what enables us to achieve this extremely low latency. Once it's in persistent memory, it's stored. It's as good as being in flash or disc. So there's nothing else that we need to do. We do age things out of persistent memory to keep only hot data in there. That's one of the tricks that we do to make sure, because persistent memory is more expensive than flash or disc, so we tier it. So we age data in and out as it becomes hot, age it out as it becomes cold, but once it's in persistent memory, it's as good as being stored. It is stored. >> I love it. Flash is a slow tier now. So, (laughs) let's talk about what this-- >> Right, I mean persistent memory is about an order of magnitude faster. Flash is more than an order of magnitude faster than disk drive, so it is a new technology that provides big benefits, particularly for latency on OLTP. >> Great, thank you for that, okay, we'll get out of the plumbing. Let's talk about what this announcement means to customers. How does all this performance, and you got a lot of scale here, how does it translate into tangible results say, for a bank? >> Yeah, so there's a lot of ways. So, I mentioned performance is a big thing, always with Exadata. We're increasing the performance significantly for OLTP, analytics, so OLTP, 50, 60% performance improvements, analytics, 80% performance improvements in terms of costs, effectiveness, 30 to 60% improvement, so all of these things are big benefits. You know, one of the differences between a server product like Exadata and a consumer product is performance translates in the cost also. If I get a new smartphone that's faster, it doesn't actually reduce my costs, it just makes my experience a little better. But with a server product like Exadata, if I have 50% faster, I can translate that into I can serve 50% more users, 50% more workload, 50% more data, or I can buy a 50% smaller system to run the same workload. So, when we talk about performance, it also means lower costs, so if big customers of ours, like banks, telecoms, retailers, et cetera, they can take that performance and turn it into better response times. They can also take that performance and turn it into lower costs, and everybody loves both of those things, so both of those are big benefits for our customers. >> Got it, thank you. Now in a move that was maybe a little bit controversial, you stated flat out that you're not going to bother to compare Exadata cloud and customer performance against AWS Outposts and Azure Stack, rather you chose to compare to RDS, Redshift, Azure SQL. Why, why was that? >> Yeah, so our Exadata runs in the public cloud. We have Exadata that runs in Cloud@Customer, and we have Exadata that runs on Prem. And Azure and Azure Stack, they have something a little more similar to Cloud@Customer. They have where they take their cloud solutions and put them in the customer data center. So when we came out with our new X8, 9M Cloud@Customer, we looked at those technologies and honestly, we couldn't even come up with a good comparison with their equivalent, for example, AWS Outpost, because those products really just don't really run. For example, the two database products that Outposts promote or that Amazon promotes is Aurora for OLTP and Redshift for analytics. Well, those two can't even run at all on their Outposts product. So, it's kind of like beating up on a child or something. (laughs) It doesn't make sense. They're out of our weight class, so we're not even going to compare against them. So we compared what we run, both in public cloud and Cloud@Customer against their best product, which is the Redshifts and the Auroras in their public cloud, which is their most scalable available products. With their equivalent Cloud@Customer, not only does it not perform, it doesn't run at all. Their Premiere products don't run at all on those platforms. >> Okay, but RDS does, right? I think, and Redshift and Azure SQL, right, will run a their version, so you compare it against those. What were the results of the benchmarks when you did made those comparisons? >> Yeah, so compared against their public cloud or Cloud@Customer, we generally get results that are something like 50 times lower latency and close to a hundred times higher analytic throughput, so it's orders of magnitude. We're not talking 50%, we're talking 50 times, so compared to those products, there really is kind of, we're in a different league. It's kind of like they're the middle school little league and we're the professional team, so it's really dramatically different. It's not even in the same league. >> All right, now you also chose to compare the X9M performance against on-premises storage systems. Why and what were those results? >> Yeah, so with the on-premises, traditionally customers bought conventional storage and that kind of stuff, and those products have advanced quite a bit. And again, those aren't optimized. Those aren't designed to run database, but some customers have traditionally deployed those, you know, there's less and less these days, but we do get many times faster both on OLTP and analytic performance there, I mean, with analytics that can be up to 80 times faster, so again, dramatically better, but yeah, there's still a lot of on-premise systems, so we didn't want to ignore that fact and compare only to cloud products. >> So these are like to like in the sense that they're running the same level of database. You're not playing games in terms of the versioning, obviously, right? >> Actually, we're giving them a lot of the benefit. So we're taking their published numbers that aren't even running a database, and they use these low-level benchmarking tools to generate these numbers. So, we're comparing our full end-to-end database to storage numbers against their low-level IO tool that they've published in their data sheets, so again, we're trying to give them the benefit of the doubt, but we're still orders of magnitude better. >> Okay, now another claim that caught our attention was you said that 87% of the Fortune 100 organizations run Exadata, and you're claiming many thousands of other organizations globally. Can you paint a picture of the ICP, the Ideal Customer Profile for Exadata? What's a typical customer look like, and why do they use Exadata, Juan? >> Yeah, so the ideal customer is pretty straightforward, customers that care about data. That's pretty much it. (Dave laughs) If you care about data, if you care about performance of data, if you care about availability of data, if you care about manageability, if you care about security, those are the customers that should be looking strongly at Exadata, and those are the customers that are adopting Exadata. That's why you mentioned 87% of the global Fortune 100 have already adopted Exadata. If you look at a lot of industries, for example, pretty much every major bank almost in the entire world is running Exadata, and they're running it for their mission critical workloads, things like financial trading, regulatory compliance, user interfaces, the stuff that really matters. But in addition to the biggest companies, we also have thousands of smaller companies that run it for the same reason, because their data matters to them, and it's frankly the best platform, which is why we get chosen by these very, very sophisticated customers over and over again, and why this product has grown to encompass most of the major corporations in the world and governments also. >> Now, I know Deutsche bank is a customer, and I guess now an engineering partner from the announcement that I saw earlier this summer. They're using Cloud@Customer, and they're collaborating on things like security, blockchain, machine intelligence, and my inference is Deutsch Bank is looking to build new products and services that are powered by your platforms. What can you tell us about that? Can you share any insights? Are they going to be using X9M, for example? >> Yes, Deutsche Bank is a partnership that we announced a few months ago. It's a major partnership. Deutsche Bank is one of the biggest banks in the world. They traditionally are an on-premises customer, and what they've announced is they're going to move almost the entire database estate to our Exadata Cloud@Customer platform, so they want to go with a cloud platform, but they're big enough that they want to run it in their own data center for certain regulatory reasons. And so, the announcement that we made with them is they're moving the vast bulk of their data estate to this platform, including their core banking, regulatory applications, so their most critical applications. So, obviously they've done a lot of testing. They've done a lot of trials and they have the confidence to make this major transition to a cloud model with the Exadata Cloud@Customer solution, and we're also working with them to enhance that product and to work in various other fields, like you mentioned, machine learning, blockchain, that kind of project also. So it's a big deal when one of the biggest, most conservative, best respected financial institution in the world says, "We're going all in on this product," that's a big deal. >> Now outside of banking, I know a number of years ago, I stumbled upon an installation or a series of installations that Samsung found out about them as a customer. I believe it's now public, but they've something like 300 Exadatas. So help us understand, is it common that customers are building these kinds of Exadata farms? Is this an outlier? >> Yeah, so we have many large customers that have dozens to hundreds of Exadatas, and it's pretty simple, they start with one or two, and then they see the benefits, themselves, and then it grows. And Samsung is probably the biggest, most successful and most respected electronics company in the world. They are a giant company. They have a lot of different sub units. They do their own manufacturing, so manufacturing's one of their most critical applications, but they have lots of other things they run their Exadata for. So we're very happy to have them as one of our major customers that run Exadata, and by the way, Exadata again, very huge in electronics, in manufacturing. It's not just banking and that kind of stuff. I mean, manufacturing is incredibly critical. If you're a company like Samsung, that's your bread and butter. If your factory stops working, you have huge problems. You can't produce products, and you will want to improve the quality. You want to improve the tracking. You want to improve the customer service, all that requires a huge amount of data. Customers like Samsung are generating terabytes and terabytes of data per day from their manufacturing system. They track every single piece, everything that happens, so again, big deal, they care about data. They care deeply about data. They're a huge Exadata customer. That's kind of the way it works. And they've used it for many years, and their use is growing and growing and growing, and now they're moving to the cloud model as well. >> All right, so we talked about some big customers and Juan, as you know, we've covered Exadata since its inception. We were there at the announcement. We've always stressed the fit in our research with mission critical workloads, which especially resonates with these big customers. My question is how does Exadata resonate with the smaller customer base? >> Yeah, so we talk a lot about the biggest customers, because honestly they have the most critical requirements. But, at some level they have worldwide requirements, so if one of the major financial institutions goes down, it's not just them that's affected, that reverberates through the entire world. There's many other customers that use Exadata. Maybe their application doesn't stop the world, but it stops them, so it's very important to them. And so one of the things that we've introduced in our Cloud@Customer and public cloud Exadata platforms is the ability for Oracle to manage all the infrastructure, which enables smaller customers that don't have as much IT sophistication to adopt these very mission critical technology, so that's one of the big advancements. Now, we've always had smaller customers, but now we're getting more and more. We're getting universities, governments, smaller businesses adopting Exadata, because the cloud model for adopting is dramatically simpler. Oracle does all the administration, all the low-level stuff. They don't have to get involved in it at all. They can just use the data. And, on top of that comes our autonomous database, which makes it even easier for smaller customers to adapt. So Exadata, which some people think of as a very high-end platform in this cloud model, and particularly with autonomous databases is very accessible and very useful for any size customer really. >> Yeah, by all accounts, I wouldn't debate Exadata has been a tremendous success. But you know, a lot of customers, they still prefer to roll their own, do it themselves, and when I talk to them and ask them, "Okay, why is that?" They feel it limits their reliance on a single vendor, and it gives them better ability to build what I call a horizontal infrastructure that can support say non-Oracle workloads, so what do you tell those customers? Why should those customers run Oracle database on Exadata instead of a DIY infrastructure? >> Yeah, so that debate has gone on for a lot of years. And actually, what I see, there's less and less of that debate these days. You know, initially customers, many customers, they were used to building their own. That's kind of what they did. They were pretty good at it. What we have shown customers, and when we talk about these major banks, those are the kinds of people that are really good at it. They have giant IT departments. If you look at a major bank in the world, they have tens of thousands of people in their IT departments. These are gigantic multi-billion dollar organizations, so they were pretty good at this kind of stuff. And what we've shown them is you can't build this yourself. There's so much software that we've written to integrate with the database that you just can't build yourself, it's not possible. It's kind of like trying to build your own smartphone. You really can't do it, the scale, the complexity of the problem. And now as the cloud model comes in, customers are realizing, hey, all this attention to building my own infrastructure, it's kind of last decade, last century. We need to move on to more of an as a service model, so we can focus on our business. Let enterprises that are specialized in infrastructure, like Oracle that are really, really good at it, take care of the low-level details, and let me focus on things that differentiate me as a business. It's not going to differentiate them to establish their own storage for database. That's not a differentiator, and they can't do it nearly as well as we can, and a lot of that is because we write a lot of special technology and software that they just can't do themselves, it's not possible. It's just like you can't build your own smartphone. It's just really not possible. >> Now, another area that we've covered extensively, we were there at the unveiling, as well is ZDLRA, Zero Data Loss Recovery Appliance. We've always liked this product, especially for mission critical workloads, we're near zero data loss, where you can justify that. But while we always saw it as somewhat of a niche market, first of all, is that fair, and what's new with ZDLRA? >> Yeah ZDLRA has been in the market for a number of years. We have some of the biggest corporations in the world running on that, and one of the big benefits has been zero data loss, so again, if you care about data, you can't lose data. You can't restore to last night's backup if something happens. So if you're a bank, you can't restore everybody's data to last night. Suppose you made a deposit during the day. They're like, "Hey, sorry, Mr. Customer, your deposit, "well, we don't have any record of it anymore, "'cause we had to restore to last night's backup," you know, that doesn't work. It doesn't work for airlines. It doesn't work for manufacturing. That whole model is obsolete, so you need zero data loss, and that's why we introduced Zero Data Loss Recovery Appliance, and it's been very successful in the market. In addition to zero data loss, it actually provides much faster restore, much more reliable restores. It's more scalable, so it has a lot of advantages. With our X9M generation, we're introducing several new capabilities. First of all, it has higher capacity, so we can store more backups, keep data for longer. Another thing is we're actually dropping the price of the entry-level configuration of ZDLRA, so it makes it more affordable and more usable by smaller businesses, so that's a big deal. And then the other thing that we're hearing a lot about, and if you read the news at all, you hear a lot about ransomware. This is a major problem for the world, cyber criminals breaking into your network and taking the data ransom. And so we've introduced some, we call cyber vault capabilities in ZDLRA. They help address this ransomware issue that's kind of rampant throughout the world, so everybody's worried about that. There's now regulatory compliance for ransomware that particularly financial institutions have to conform to, and so we're introducing new capabilities in that area as well, which is a big deal. In addition, we now have the ability to have multiple ZDLRAs in a large enterprise, and if something happens to one, we automatically fail over backups to another. We can replicate across them, so it makes it, again, much more resilient with replication across different recovery appliances, so a lot of new improvements there as well. >> Now, is an air gap part of that solution for ransomware? >> No, air gap, you really can't have your back, if you're continuously streaming changes to it, you really can't have an air gap there, but you can protect the data. There's a number of technologies to protect the data. For example, one of the things that a cyber criminal wants to do is they want to take control of your data and then get rid of your backup, so you can't restore them. So as a simple example of one thing we're doing is we're saying, "Hey, once we have the data, "you can't delete it for a certain amount of days." So you might say, "For the 30 days, "I don't care who you are. "I don't care what privileges you have. "I don't care anything, I'm holding onto that data "for at least 30 days," so for example, a cyber criminal can't come in and say, "Hey, I'm going to get into the system "and delete that stuff or encrypt it," or something like that. So that's a simple example of one of the things that the cyber vault does. >> So, even as an administrator, I can't change that policy? >> That's right, that's one of the goals is doesn't matter what privileges you have, you can't change that policy. >> Does that eliminate the need for an air gap or would you not necessarily recommend, would you just have another layer of protection? What's your recommendation on that to customers? >> We always recommend multiple layers of protection, so for example, in our ZDLRA, we support, we offload tape backups directly from the appliance, so a great way to protect the data from any kind of thing is you put it on a tape, and guess what, once that tape drive is filed away, I don't care what cyber criminal you are, if you're remote, you can't access that data. So, we always promote multiple layers, multiple technologies to protect the data, and tape is a great way to do that. We can also now archive. In addition to tape, we can now archive to the public cloud, to our object storage servers. We can archive to what we call our ZFS appliance, which is a very low cost storage appliance, so there's a number of secondary archive copies that we offload and implement for customers. We make it very easy to do that. So, yeah, you want multiple layers of protection. >> Got it, okay, your tape is your ultimate air gap. ZDLRA is your low RPO device. You've got cloud kind of in the middle, maybe that's your cheap and deep solution, so you have some options. >> Juan: Yes. >> Okay, last question. Summarize the announcement, if you had to mention two or three takeaways from the X9M announcement for our audience today, what would you choose to share? >> I mean, it's pretty straightforward. It's the new generation. It's significantly faster for OLTP, for analytics, significantly better consolidation, more cost-effective. That's the big picture. Also there's a lot of software enhancements to make it better, improve the management, make it more usable, make it better disaster recovery. I talked about some of these cyber vault capabilities, so it's improved across all the dimensions and not in small ways, in big ways. We're talking 50% improvement, 80% improvements. That's a big change, and also we're keeping the price the same, so when you get a 50 or 80% improvement, we're not increasing the price to match that, so you're getting much better value as well. And that's pretty much what it is. It's the same product, even better. >> Well, I love this cadence that we're on. We love having you on these video exclusives. We have a lot of Oracle customers in our community, so we appreciate you giving us the inside scope on these announcements. Always a pleasure having you on theCUBE. >> Thanks for having me. It's always fun to be with you, Dave. >> All right, and thank you for watching. This is Dave Vellante for theCUBE, and we'll see you next time. (bright music)

(music) >> Hello and welcome to theCUBE, here in our studio in Palo Alto, California. This is a CUBEConversation; I'm John Furrier, the co-founder and co-CEO of SiliconANGLE Media, and co-host of theCUBE. Our next guest here is Surya Varanasi, who's the co-founder and CTO of Vexata, a hot startup here in Silicon Valley, also exhibiting this week at Oracle Open World in San Francisco. It's our 8th year of coverage at Oracle Open World, we will not be there on the ground with theCUBE; not a lot of room as they're doing a lot of reconstruction up there, among other events happening. Great, great conversations happening around the world of cloud, and certainly Big Data, now called 'data' generally because it's so hot. Sorry, welcome to the CUBEConversation. >> Thank you. >> So, first of all you guys are a hot new startup, really coming out of stealth, but not really stealth I mean stealth technically, not with general availability. You've been in business for a few years, building up great comprehensive storage-slash-data solution, I call it, with this "data fabric" concept. Congratulations. >> Thank you. >> Well-funded team, super technical. Tell us about the company, tell us about the launch, you guys are out public at Oracle Open World this week. What is Vexata? >> Vexata, we started in 2014, as you mentioned, a few years in development. We've been in trials for over a year and a half, shipping actually for a good eight or nine months. And what we're about is, we really wanted to design against three basic pillars. The first one being, there's digital businesses, they're all under pressure. "How do we survive, and how do we handle the transactions that are coming in?" And we wanted to build the highest performance storage system that we could build that really accelerates your apps, makes them super fast. The second thing we want to do is, the demanding enterprises, these are the ones that have the requirements, we wanted to be super enterprise-resilient. How do we deploy seamlessly? That was the third pillar we stood on, meaning no changes to your application or your, how do we plugin and just simply work? So we simply work, we're enterprise-resilient, and we have the highest-performance system that accelerates your apps with no changes. We built around Flash, and Intel's latest 3D Optane, and that's a big deal. >> Well you guys are well-funded, looking at the management team of the company, it's a start-up that began a couple years now, but you're now out in the wild, now launching. Just a couple of stats here, over 50 million dollars in funding, well-funded, great with a lot of work on the front end with the product, but the venture capitalists are interesting. Lightspeed has been very, very successful in the enterprise, just look at the list of successful day value, even if they have Snapchat too, so they know a little bit about data. Mayfield, Intel Capital, and Redline, and International One. Really really good pedigree there, and they know storage too, they see you telling us, they know what it looks like, they understand converge investors they now get the data play. I have to ask you, in the market everyone's kind of scratching their heads right now because real time data is super important. What problem are you guys solving because certainly the performance >> Yeah >> Is looking good. What's the problem you solve for customers? >> So, the specific problem is when you have digital businesses, what happens is that you don't have a little bit of data that's hot and the rest that's cold, everything is hot, so how do you serve all your data in real time? That's what we're about, and that's what we've built a transformative solution for. >> Well the thing that's coming out, some of the feedback we've been getting and seeing online is, besides the new logo, looks great by the way >> Thank you >> Is you guys are winning on the speeds and feeds. Now the market's going beyond speeds and feeds, which we'll get to in a second, so one: talk about the performance goals, you guys are saying exponential performance, but you're saying you're 10x the performance of anything else. But two, the challenge with data is these silos, right, and you're seeing a confluence of injection of open-source coding, real-time performance data in the application level as app developers start to come on board with open source. At the same time, data traditionally has not been open and free, democratized, if you will, that it's stuck in silos. So it's been a big challenge for architects and CXOs to say, "How do we deploy a solution that gets us to value quickly, not do these science projects." So talk about the performance and then the market model around "How do you free the data?". >> Yeah, so I think for us the simplest of value props is when you plug into your existing infrastructure, we show up to any OS just like a disc. We show up very simply like a disc, so any application that runs with Vexata powering the disc, the virtual disc, if you will, runs enormously fast. That's the very simple value prop, we've done something very basic. >> So on the integration site, like deploying it's easy. >> Not only is it easy, there's no change to the OS. So you talk about democratization, what are you looking for? Can I simply plug and play, will this just work? So that's the biggest thing of all, it just works. The second piece, and the most important thing is, it's not just out here our numbers that really work well, when you plug in Oracle and run OLTP or OLAP, you see this dramatic performance that if you didn't know better, you'd think this was an engineered system from Oracle, you know it's really just amazing performance. We maximize the utilization of your server, so any app that just plugs into an OS and looks at it as a disc will run great. >> Well when you say that, not to trivialize this, because I know it's probably complicated, I'm going to dig into the tech in a second, but when I plug in a thumb drive or an external hard drive into my Mac, it's just "Boom there it is!" >> Yeah. >> Similar, is that the kind of concept you guys are thinking? >> Pretty much, that's what we, really if you build a very complicated product that's complicated to use, nobody'd use it. So we want it really simple to consume. Complicated to build maybe, but really simple to consume. >> Alright so I'm going to play the naysayer, I don't believe you guys, it's smoke and mirrors in there, Cause no one can do that, you're going to give me 10x performance? Okay, that's marketing, I'm skeptical, but I have a problem. I have I/O bottlenecks, at the end of the day I have all these bottlenecks, how do you do it? >> You know, I think a few core principles, the first of them being we use solid state media. How we read and write to that solid state media is actually under patent, it's very specific to keep the performance very high all the time. The second piece of course is our system itself is designed to avoid, to separate control and data paths, so we keep them isolated, and we've invested a lot in our software to keep it and use the space and so on, a lot of jargon for we keep our latencies extremely low on the system, so your applications don't have to worry about anything and change anything. >> So are you lower in the stack in terms of, well a stack isn't perfectly speaking but, I start thinking about free data moving around, which by the way, people want, they want their data available at any given time, at any moment, cause you don't know what's going on in real time. All the data has got to be ready. But then it brings up the governance thing. Are you below the governance or is that a separate challenge on top, how do you deal with that dynamic? >> I'd say we're in the governance of it, so you know for example we provide the full standard based encryption so should anybody say, "Hey are you secure?" Yes, absolutely we are. It's a big deal, it's data, it's your active data, and so we protect it as well. >> One of the things that's coming out of Oracle Open World we're seeing obviously is they're comparing themselves to Amazon. And I was commenting last night on Twitter, I've been covering Oracle since 1994, watching and comparing them against SAP back then, the ERP days, and all the software mini computer days. But now they're comparing themselves not to SAP or IBM anymore, it's Amazon. What does that tell you, because that's also translating into the customer conversations because cloud has become mainstage, Oracle says "We have the cloud, it's Oracle on Oracle." They're not really winning the Cloud Native battles, they kind of own IT, Oracle does, so there's really no debate that IT, information technology CIOs know all about Oracle, but people who are doing Cloud-Native or DevOps might not be interested in Oracle, so how do you balance those two markets that, Oracle's trying to be more Cloud-Native and we're still evaluating their progress there, but you guys, are you impacted by those trends at all? >> You know, as you mentioned, everybody talks about the cloud, a lot of apps do go to the Native Cloud, if you will, the data that's very critical to your business, be it your intensive transaction processing, your OLAP, your machine learning, those seem to remain on premise. That's what our experience has been, and that's where we want to play first. Now, Oracle for Oracle Cloud, Oracle Cloud for Oracle may be a great thing, but-- >> Oracle on Oracle runs well, but I mean they're still playing catch up to Amazon, clearly number one. Okay let's get, you bring up the on-prem thing, this is important, business model. So you guys are out there, share the business model for you guys. What's on premise, is it hardware, software, both? Is there license, how do people engage with you, what's your business? >> So today we sell an appliance, that's the product we have today, and so we sell the appliance all included, software and hardware, and we offer the services to plug it in, and show you the transformative results on your applications. We don't stop at "Hey we plugged it in and you got your hero numbers," we show you. >> So I'm, I just want to buy it, how do I engage? I buy a license? A box? >> You buy the system. >> System, so it's hardware. >> Yeah >> And all the software and the intellectual property that you have >> All in. >> Is inside the box. And how do I, just connect to the network? >> Pretty much. >> Like, all interfaces? >> Pretty much; so today we have fiber channel, and we have NVMe over Fabric, so both ethernet and fabric channel, this is typically where you're on your highest performance of your data. So for us, very simple, it's very seamless to plug it in, and it'll be recognized in your servers, and off you go. >> Okay, so I'm an architect at a large enterprise, take me through the conversation you'd have with those geeks because they're going to want to (Surya laughs) have the conversation be, I want it, I need dashboarding, we're going to be moving high value applications so I need analytics, I want to kill the memory bottlenecks, but I also want the future, I don't want to foreclose anything so, you know, you guys are a startup so you've got my attention, I like what your story is. How do we move forward in the future, how do you talk through the, we've got your back covered, you've got the head room available, how does an IT or tech guy say, "You guys are solid."? >> Yeah. So here's how I start the conversation: I typically start the conversation by telling them, "Hey, you've got the highest performance servers, the latest servers, the Broadwells, the Prolines, what have you. The fastest networks are the 100 GigE, 50 GigE, you know whatever your ethernet network looks like, and then typically you have a SAN and it's really fast- 1630 to a gig. And you run your application, let's pretend it's Oracle RAC, you run that application. And when you run it, what you notice in your servers is eventually you see I/O wait times that slow down your application, and your servers, your really fast servers are under utilized because they're just not moving. >> Because you have bottlenecks. >> That's right. Well we say, it's very simple, if you plug us into your network and run your application on us, we will eliminate your I/O bottlenecks on your server, so your server is maximally utilized. So with no changes for you, you get 10x, and that's how easy we want to make it. That's really our value. >> So you guys are coming in and basically saying 10x performance right out of the gate. >> Yeah. >> Okay so what are some of the challenges on the dynamics, because you got my attention again, now I say, "How do I know I need you? Is there certain things, smoke before the thing blows up?" What are some of the tell signs for the customers to call you guys, cause they just started hearing about you guys as you start marketing. Why should customers work with you, what's the indicators on their side where they go, "I got to call them." >> The classic indicator is, for us, for one is, you're running an Oracle RAC. You're running an Oracle RAC for resiliency and for performance and you need both, right? The moment we see that we say, okay, we have a clean in. The second tell-tale sign, is when you have in-memory databases running. When you're in-memory, what you're trying to do is not write to your storage because that's your bottleneck, so you keep throwing memory at it, it's really expensive. And we know that's a classic sign. >> Okay, talk about Oracle Open World, you're going to be here this week, up in the city. What are you guys showing, what's the pitch, obviously you've got the new logo. >> Oh yeah. >> @VexataCorp is the Twitter handle so people can watch and can check out your updates on Twitter, but what's the value proposition, what are people in the booth talking about, what's the demos, what's the thing? >> You know, it's Oracle Open World, so we're going to do a whole lot of Oracle demos, so we have a RAC demo set up, and we show, with a four node, dual socket server, our system seamlessly plug in, and you get, the last I looked, it was 4,000,000+ OLTP transactions. It's phenomenal for a four socket, dual socket server. We're going to show our optane base array, the first of its kind in the industry, and show the same kind of results we have with optane. So it's all about Oracle and accelerating those apps. >> Alright so for Oracle customers out there, you know who you are, they're always evaluating stuff but it's always hard to kind of get out on the branch and be exposed if you try to go off Oracle, so people might be a little bit nervous. What's your conversation to the Oracle customers that's saying there's no risk in looking at Vexata. They're like, hey why not just buy a lot more Exadata, or the ZDLRA stuff, or other things that they have. >> And all those are entirely possible, I think that's the easiest way to get comfort. It's those trials, even in your research and development, and get used to us, because you'll be shocked at the performance you get. And eventually yeah, you can go to Exadata, but we're just so much more cost-effective than any solution out there. Try us, get comfortable with us, and then deploy when you're ready. >> And what's the price point? What's the price, or is it different by deployment? >> You know, honestly, it does differ by deployment, but really we use standard NVMe flash, and that's driven by the HyperScale guys, so we ride the curve of flash, we don't make our own. >> Yeah, you're not a sales guy, you're a CTO, co-founder, >> Thank you. >> So I don't want to put you on the spot there. Affordability relative to Oracle, let's talk about the customer conversation, so I don't want to put you on the spot on the pricing, we'll hit the CEO and some of your other guys on that. So, I'm a customer, I'll roleplay. Hey, I love this opportunity, but what's wrong with Oracle storage, why not just go with those guys? >> You can use us, not just for Oracle, but all your application workloads that are demanding, like your machine learning, like your SQL server, if you're running SAS analytics, so you have a general purpose platform, you're not silo'd. That's the biggest deal with us. >> So you give them scope outside of Oracle. >> That's right. Any app, really, I mean, just the simplest of all. >> Alright so I got to ask you the secret sauce question. You've got some patents, so your friend says, "Hey, what's going on, you guys are awesome, how did you get the 10x?" What's the bottom line, how did you guys do it? How do you get all that performance? >> I think the really, the investment in the software, to reduce the storage stack latencies, to the absolute minimum, that's what really gives us the biggest bang for the buck. >> So a lot of low-level engineering. >> Pretty much. >> Alright, so benefits to customers? What are the benefits, how do you guys see the benefits unfolding, take us through some of the anecdotal data you've seen in the trials you've done with customers, what are some of the benefits they've told you they've seen? >> You know, the simplest of them all, it's a very simple one, when we do a PoC with a customer, the customer usually says, "Hey this PoC's going to take two months." And afterward we find out it's two months because it takes three weeks to tune the system, and then the remainder of the weeks to do the PoC. For us, those first three weeks collapsed to one day. There's no tuning, you just plug it in and you all of a sudden get the performance and your PoC has just shrunken massively. That's really our value. Don't try hard, just right to your data, embrace it and it'll run for you. >> So you guys are a potential bridge to the future with the data. >> Yeah. >> You have this thing called Active Data Fabric, is that it? >> Yes. >> What is that about? >> It's really about how you actually scale your data over a very large amount. Today, yes we have an appliance, and it scales on size, ours scales to 150 terabytes and so on, but as data keeps growing and everything becomes hot, you really need to get into the many hundreds of terabytes, petabytes of active data. So how do we actually design that using external, open hardware, that's really what the principle is about. So this is the first realization and then we continue going with other implementation. >> Surya, great to have you on theCUBE, you guys have done a great job, so I got to ask the bigger question outside of Vexata, you know, data's been a challenge, and as an industry participant and a technologist, what's been the big thing, if you could summarize it down from your perspective, data obviously needs to be free, because applications never know when a piece of data will be needed in context to other things. You see things like metadata, active data's clearly the benefit there, but everyone's got these data lakes out there. We just came back from our Big Data NYC event, and the whole Hadoop thing has been very batch. >> Yeah. >> Store everything in a data lake, but you never know, at any given time, if a piece of data is going to be valuable, until you put it to work. So you really can't put a valuation on data. What has been an inhibitor, the bottlenecks. Has it been the silos, has it been data architecture, has it been the software, or now that the cloud's got compute power, all of the above, what's your thoughts? >> I think you netted out, really data, you look at it as hot data or cold data, and you decide data lake or active data, and I hold it in memory. The biggest problem I see is how do you call something hot or cold, it's hard to tell, and I think the biggest challenge for us is how do you make it all at least warm, so you can get to it when you need to. And that's the hardest challenge for the industry, I think. >> Yeah and I think that people look at self-driving cars to bring up that, because Larry Ellison said onstage, "Autonomous database", which I kind of roll my eyes cause Larry's so good at taking trends and making it look like Oracle has it. Autonomous cars being self-driving, it's the concept. >> Yeah. >> The data's really critical, cause if car's going to have telemetry data, real time is real time, it's not milliseconds, it's nanoseconds. You can't say one week, ten days, and a lot of time people say realtime queries can come back, but the data's a week old, so there's huge issues in what real time means. >> Yeah, and the second issue, you bring up self-driving cars, so the way self-driving cars, the test drives happen today, you plug in a lot of drives into the car, send it out for two weeks, and when it comes back to base you have 200 terabytes in the car that you want to learn with. How long does it take to transfer 200 terabytes? In a regular system? A few days? >> Yeah. >> So until that data's off, this car doesn't move. With us, it takes a few hours, so you can get your car back on the road. So we actually, we not only do great on the transactions, we do great with this, your basic data mobility problems, and we fix it. >> Yeah, you guys are fixing the data mobility problems. Okay, great connotation, one last final point I want to get your thoughts and color on, the internet of things. Cause now you're seeing industrial really being the low hanging fruit right now on IOT, and IOT certainly is hot, it will always be hot, but it also increases the surface area for cyber attacks. So people are kind of taking baby steps there, first one is industrial: plant equipment, could be manufacturing, it could be edge of the network sensor, something along those lines, hacking into the IP network. That's certainly going to create the need for active data. >> Absolutely. >> Your thoughts on that? >> Very much so. You know, IOT is really the classic future growth model, look at the amount of data you're trying to ingest and process. Everything is active, and you have to act on it in real time. >> Does IOT help you guys? >> You know, it does, it quite doesn't show up as IOT, it shows up as machine learning, you get another signature off it, you get all this data, you're trying to learn and figure out anomalies, and you need to process your data and that's us. >> You know I always said that a good business model is reducing steps it takes to do something, making it easy to use, and being high performance. You guys seem to do all three, congratulations. >> We do, thank you. >> Surya Varanasi, CTO and co-founder of Vexata, hot new startup, check them out, @VexataCorp is the Twitter handle, check out their updates, they're at Oracle Open World this week. I'm John Furrier, you're watching CUBEConversation here live in our Palo Alto Studios, thanks for watching. (music)

(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.

>> 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)