 Live from Washington DC. It's theCUBE, covering Oracle Cloud World. Brought to you by Oracle. Now your hosts, John Furrier and Dave Vellante. Okay, welcome back everyone. We are here live in Washington DC for special presentation of theCUBE, our flagship program from SiliconANGLE. We go out to the events and extract the signal from noise. Oracle Cloud World here in DC, right in the center of all the action. Certainly government and also their existing customers. I'm John Furrier with my co-host Dave Vellante. Our next guest is Avery. Senior Vice President of Oracle Cloud Platform. Welcome to theCUBE. Good to see you again. Always lovely to be here. I love getting access to all the minds at Oracle because you're on the product side. So you're in the boiler room of the development and the transformation of fusion, middleware. Now, obviously the software is a service business. That's the software industry being absolutely disrupted by the cloud. You guys have put everything together. And before we get to the announcement, give us an update on the cloud strategy that you guys laid out over the years and specifically Oracle Local World. Where are we? What's the strategy? Sure, sure. So if you look at where we are, we have been working in the cloud space for many, many years, right? And we started with software as a service, providing application in the cloud. Then we have been willing over the last six, seven years our platform and infrastructure as a service. So it's pretty much the way we will be looking at is to provide a full end-to-end cloud offering where customers can start with the application, extend those applications using a platform and run any non-Oracle workload on infrastructure or use Oracle workload on infrastructure as well. So that way the customers don't have to go and find different, different vendors for different pieces of it and bring them together and integrate them, which can be very, very challenging and very difficult. But today we are pretty much complete. We have a very broad set of functionality, very deep in terms of each of the services we provide and best in class in each and every area. And that's always been our goal and that's where we are delivering today. Thousands of customers adopting it today. You saw the Q3 results, very, very exciting times and we're seeing a great, great update. So Mark, hurry when I interview you to our crowds. Are you guys cloud ready? We're 100% cloud ready. You know, a lot of bravado. But that's the case, right? So I want you to talk about the concept you introduce at Oracle OpenWorld around having the cloud on premise because this is a service and it's now called Oracle Cloud at Customer, which means at the Customer Data Center. It's not software that they're buying packaged software. It's as a service. This is the big deal. Why is this important? What is the ramifications of impact to customers? What is the announcement? Why is it important to impact the customers? So as I said, we have had thousands of customers who are using a public cloud today. They use it for various reasons, either development tests, production workloads, or doing their own high availability or X6 capacity they need. But there are a class of customers who have a lot of regulatory requirements who are having data privacy issues or data residency requirements. They might want control. They don't want to put the key information in the public cloud. But they love the benefit of the public cloud. They love the agility, quick ROI, low TCO, subscription-based pricing, pay for what you use. So how do you now provide that kind of capabilities to customers but bring it to their own data center so they can have the full control and have the ability to save their content behind the firewall and have all the regulatory requirements met? So that's really what we thought over the last few years talking to our customers. We want to bring the public cloud to them if they can't come to the public cloud in many cases. So this opens up opportunity for classes of customers where they can get all the public cloud benefits and be able to use that very, very quickly. And we manage it, we run it, and customers don't have to do anything themselves in terms of operational. And we keep the two things in sync. It's exactly 100% compatible. Same software, so you don't have to worry about moving workloads back and forth and you don't have to do any retesting. So it's a very unique concept and very differentiated and lets our customers really benefit from the advantages we have created in the public cloud onto their own premise now. Is it fair to say, I mean you guys, your marketing of cloud has been relatively recent but you've been in cloud for a while with your SaaS products. Is it fair to say that the typical customer engagement model was through SaaS and then how do you see that changing as you start to coalesce a strategy around infrastructure as a service and platform as a service and of course SaaS through integration. Talk about that a little bit. Sure, sure. So we definitely started with SaaS but we've been in the background working because SaaS also uses our platform and infrastructure pieces we've been building. So a lot of these things were tested as part of SaaS anyway. And as you know, we have a very large portfolio and a platform with database, a middleware portfolio with Java integration products onto VI products. So all those things we've been working on and bringing it to the cloud for the last five, six years. Now with the SaaS customers who want to extend their application and be able to add other non-oracle applications to their ecosystem, they can do that very quickly, easily with the platform and infrastructure. So that's what we're bringing into the cloud and making it very easy for customers to access that and use it in the same cloud environment as we do in the SaaS as well. And that's what's really, correctly wrong but that's really what's different about your model and what you're announcing with Oracle Cloud Machine is we've seen attempts to create homogeneity both on-prem and off-prem, but either they didn't affect the operations model or very importantly, they didn't affect the application development piece. Talk about that piece of it, that application development, the whole DevOps narrative. So I think the big advantage and the efficiencies which we have built in the public cloud is to be able to automate a lot of the things. So when we add a new data center, for example, in the public cloud, we add more machines. There's no extra cost associated with that other than the hardware because the automation, the work we did, the manual part is taken out. The margin of cost is zero. Zero pretty much, right? So now if you now extend that same model and I bring the same software, same capability to a customer site of the data center of the choice, I can still get the same efficiencies where customers themselves, they have to run it. It costs them a lot more money because the DevOps, they were to build out, they were to do the whole end-to-end integration. We have done that already. So we treat this new service we have at an extension of a public cloud. For us, it's much lower incremental cost, but customer benefits are tremendous because they are getting all the DevOps automation, they're getting all the services, we have built a public cloud automatically available to them and they pay only for things they use. So they're getting the benefit of this pricing model as well and in latest innovation at their own data center. We were talking off camera, I shared with you, I mean, when we just released a study on Wikibon that showed that about $200 billion in spending on operational costs is going to go away into vendor R&D. Where's that money going to go? Are companies going to drop it to their bottom line? Are they going to shift it to other areas of value? I think that money, one is definitely the good saving so they can give it back to the shareholders as one. Second thing, of course, they will probably invest in areas which are going to differentiate them versus the IT services they were probably investing in earlier. So maybe new applications or maybe automating a lot of the different things where they had siloed applications, now they can invest time in bringing them together to improve their business efficiencies, which they couldn't do before. They were still trying to solve the underlying infrastructure problem in many cases. So the money will be used in a lot more valuable investments for the company versus a lot of the low end stuff which they can take out and automate through our public cloud offerings. Your logo slides are impressive. There's like hundreds and hundreds and hundreds. Now, of course, they said a lot of that is, of course, SaaS, but you show infrastructure as service which is relatively new. You show hundreds of examples there as well. Some of that I'm sure came through acquisition. So what are some of your favorite examples? Well, if you look at our customers, I mean, there's been various sets of customers in the platform infrastructure. I'll give you an example of Kalex, for example. You wouldn't heard of them because they are like the backend provider of all the broadband networks. All the chips you see at Comcast cable modems or you see it from AT&T, Kalex provides them. They're the number one leader in their space. And what they had a problem was they had a lot of siloed applications. They needed to kind of bring them together and automate the whole business processes so they can be much more efficient. And what they were looking for is a system where the platform, they can run their application very quickly and integrate them very quickly. So they chose our platform as a service offering, integration, a Java database, and now they're using that as the underlying technology for all their applications. They replace a lot of other point vendors, including Dell Boomi, for example, with the Oracle platform. Now they're expanding out to our infrastructure services, all the different things we have in the platform for BI. So the use cases just gets bigger and bigger once they start picking up some of these things. So that example on a scale of one to 10, how much of a heavy lift is that for customers? 10 being a very heavy lift. Not much, I mean, for them it's all compatible to the most of the standard. We can support Oracle workloads, non-Oracle workloads. We provide adapters to a lot of Oracle and third-party applications. They're using Oracle apps, they're using Salesforce.com, they're using Adobe, and we can integrate them out of the box today. So we provide those adapters and connectivity. It's not just Oracle ecosystem at all. Very low heavy lift. I mean, talk about the dynamics. One of the things that's coming up is that you guys certainly have a great message for the CXO, people who are budgeting, integration costs, being more agile. This is a huge initiative for anyone at the C-level suite or the builders, the architects. But the new role of the developer's changing. Also, the developers are key. So developers and the people who fund the project. Sure. Because agile is the preferred method. What's the role of the developer? It's changed a lot. Full stack is the table stakes. How do you see that evolving and what's Oracle doing for the developers? Yeah, I think the developers are becoming kind of the spear at the top of the spear now, right? So I think a few years ago, a lot of things were driven from top down where the IT groups or ICOs would decide, this is the stack I want you to use. Now go figure out how to use it. More and more now with the ability to get all of the services available to them in real time without having to provision or wait for IT, developers are getting much more proactive and quick access to build applications. So as a vendor like Oracle, we've been of course very close to developers for years. That's our DNA. And we are now able to provide them the full stack they need to build any application with the choices of they might make. So you don't have to be the programming language we like, but they can choose theirs, right? They can choose Java, they can use Node, they can use Python, they can use Ruby. It's really up to them. They use different frameworks so that it becomes very straightforward for them as a developer to choose what is more important to them for their application development and build their application very, very quickly. So we address them very aggressively. What's their role in this new on-premise cloud play with the cloud because they have to build the apps that are on the front lines? Yes. So they all want to now start building application in the cloud. They might decide that deployment can be a different decision versus development. See in many cases with a lot of the vendors, the development and deployment has become very synonymous together. You need to decouple that because you don't want to be tying the developer or your customers to the point where I build this, I have to run it here. I should be able to make my change in my mind or make my decision based on my business needs. So what we have done with our offering for developers is to really make sure we have a stack where you build the application and you get to choose on-premise, hybrid, cloud deployment and change your mind whenever it's used to. And that's what our developers have been loving that concept. And they're the drivers for Agile, right? Basically the developers drive the speed of the boat if you will, in this case. Great, so final question for you. The show here for the folks watching, I'll say a lot of customers, you guys do a lot of customers on stage. We had a Viya on earlier. What's the vibe of the show here for Oracle Cloud World this year? Well, it's amazing. I mean, I came in in the morning today and I was amazed at the amount of people out here. The keynote room was packed. The standing room barely. As well as if you look at it around us, I mean, this is just like another mini open world. And it's always exciting to see a customer show up and want to hear what we are doing and work with them together. Final, final question. What is the, what can people expect from Oracle in the cloud game as you guys go forward with the products? Just some quick, quick sound bite on what to expect from Oracle. I think you will see a lot of these services getting more and more functionality as we keep on going based on the requirements we see from our customers. The adoption has been amazing. So I think the use cases are evolving as we speak. A lot of the customers are running production workload. They want this hybrid model. So I think more and more use cases like that you should expect. And more and more services to bring our whole platform to the cloud. It's early days. Congratulations. Ms. Avery, he's the SVP of the cloud Oracle Cloud Platform. Again, he's on the product side. He's in the boiler room, engine room, making it all happen. Thanks for sharing your insights here on theCUBE. Back more live coverage here on the ground, live in DC for theCUBE. We'll be right back at Oracle Cloud World after the short break.