 that's ever been involved in. And I bring that energy to theCUBE because theCUBE is where all the ideas are and where the experts are, where the people are. And I think what's most exciting about theCUBE is that we get to talk to people who are making. From San Francisco, it's theCUBE. Covering Oracle Open World 2016. Brought to you by Oracle. Now, here's your host, John Furrier and Peter Burris. Welcome back, everyone. We're here live in San Francisco for Oracle Open World 2016. This is SiliconANGLE Media's theCUBE, our flagship program. We go out to the events, we extract the signal noise, three days of coverage, wall-to-wall, ending up day one right now, wrapping up amazing day. I'm John Furrier, my co-host, Peter Burris. Our next guest is Senior Vice President of Oracle called Steve Tahib. Cube alumni, great to see you again. I have four-time, four-time alum. You've been at Oracle, so sure. I think you get the MBV award for most times on theCUBE. You've been there only for a couple years now. Yeah, congratulations. You're holding them. Yeah, less than two years, it's exciting. So, you are working hard. Last time I saw you, like, you have to be running harder. You're running harder. Yeah, we're gonna see you together. You've been running really hard, so congratulations. Southern numbers, 70% growth, percentage, not numbers. I don't... Yeah, it's exciting. Four billion. Numbers are getting bigger, percentages are still going up, so it's good. Percentages are double digits, but the real big thing is that you guys now are putting a dent into the awareness of Oracle being a viable and competing opportunity against Amazon Web Service. Larry Ellison said, quote, Amazon, your lead is no more. Yeah. Okay, which was a headline on SiliconANGLE. So, question. How are you guys continuing to differentiate yourself against AWS and Microsoft? Yeah, I think there's three things. One is we differentiate when we look holistically in cloud, because you talk about cloud and people define it in multiple different ways. Some sales, Salesforce is cloud, or Amazon is cloud, and we define it as really requiring all three layers of the stack. So, software is a service, which we can talk about. Platform is a service, which is that core database, middleware, application development, and then the infrastructure is a service. And we're seeing at some points, you know, all these things are interrelated. When does past stop and IS begin? What's a discrete IS motion, and then how does that move to sort of production databases and different things? And so, we first and foremost differentiate by looking holistically at what we're offering and ensuring that we have a complete portfolio that's also open and provides choice to customers to find a product. Holistic end to end? Holistic or holistic breadth? I think it's both. So, we look at where we go deep and tall layers of the cloud, and then we'll look holistically around a hybrid solution that allows people to deploy in cloud. And on-prem and that's where we can differentiate with Amazon. So, you know, at a technology perspective, Larry announced some incredible things in terms of, you know, we have the benefit of coming in and redefining what an IS architecture looks like and provides scale and performance as well as cost. We provide choice in terms of, look, if I deploy something on Amazon, I can't actually move that back to what's on-prem. You know, you can't actually have isolated, you know, orphan, you know, sort of instances on public cloud without tying that back to what's on-prem. And then you just look at some of the database examples. You know, it's sort of, it's a fork of an old code. I mean, it's not compatible with anything. So, I mean, I can run Oracle database on Amazon. I can run Oracle database on Oracle. I can run Oracle database, you know, in Microsoft. I can run Amazon on Amazon. I can interoperate with DB2, with SQL, with Oracle, with Teradata. So, I think we're just sort of trying to demystify a little bit of what's going on out there. Well, one of the ways we're talking about workloads moving between on-prem, that's going to get that right 100% across the board. Absolutely. It's interesting, but I got to ask you, Larry Ellison said on the earnings call last Thursday after Safra and then Mark Hurd made their announcements and sounded like things were going amazing. The earnings call was like, whoo-hoo, my God, the Kool-Aid injection. Then Larry got on. But he teased out a really cool thing that I wanted to just drill down on. He said, we're not even getting started yet. We are playing the long games, what he's obviously saying. But he made a comment about Microsoft. He said, Microsoft is already well into moving their install base and apps onto Azure. And Oracle hasn't even begun getting started. Now, I'm sure you started, but implying significantly that a lot of the database customers haven't really moved there yet. Is that true? How would you say? It's actually interesting. Four on five research just actually published a study and they said only 6% of workloads are actually running in public cloud infrastructure today. And IDC just actually put out a note that said only 6% around database and analytics. So I think we're actually showing up with the right solution at the right time. And we have like 400,000 database customers where we're in a great position to move them to cloud. So it's Larry, right? The large portion haven't moved yet and Microsoft large share haven't moved? I think the majority hasn't. I think the analogy he was drawing is, think about Microsoft that can move their office suite. Take 365 and move that to cloud or things like SharePoint to move that to cloud. I think what we're saying is look at that analogy in terms of who's in the best position to migrate these database customers to cloud. And we believe Oracle is. And again, it is early days overall. There's a lot of noise about what the cool kids are out there doing. But when you think about it, 90% of these people. The cool kids are making money. Cool kids are making money. Oracle is making money too. Of course. That's why I brought in context. You had a question? Well, yeah, no, really quickly. So in many respects, it sounds like what you're saying is that you can do what Amazon can do but Amazon still can't do what you can do. Yeah, I think that's right. I mean, I think we're coming out and saying, look, if you look at it, the application layer, they don't have anything, right? And so again, we have like core ERP, HCM, supply, sales, service, all these things that we've shifted to cloud. We actually do 45 billion transactions a day and support 30 million unique users weekly on our cloud. I mean, we're a viable cloud. I mean, these are core financial systems that companies used to run their business. We've been running in cloud for a while. We have a PAS layer, I mean, our database, our middleware, the analytics, the security, things like IoT. I mean, that's core to Oracle's DNA. And then yeah, you have this commodity compute infrastructure. I mean, if you look at Amazon, 86% of their business is still about commodity compute, you know? So we can offer that for customers as part of the overall solution. And I know they've been talking about getting it to the database. And I would say stay tuned to what Larry has to say tomorrow on that. But when you believe holistically, when you look at all the pieces, we provide that solution that those 95% of workloads that haven't moved to cloud yet, actually really need. So that brings up a good point. At Cloud World, you mentioned DC, where we had your special event, the Cube was broadcasting live in DC. They're all up on YouTube.com, slash SiliconANGLE. Shameless plug. Of course, get that last minute in there. But I want to ask you, do you announce the cloud at customer? Yeah. So what's the status of that? Cause we get lost in the slew of announcements here at Oracle Open World. What's the update? Doing well, reaction from customers? It's doing really well. You know, it actually solves a big, you know, again, that problem we talked about. I want to consume public cloud services, but I might have regulatory data sovereignty, you know, sort of industry, might just be my own internal governance. That's not going to allow me to deploy that. Consume, you know, public cloud services on somebody else's cloud, but I can consume it with, you know, cloud at customer. Is it a transition point because when they feel good about this, they get some stability with the cloud on customer? Is it a transition point? Is it a fixture? Is it a blankie? Is it their binky? I mean, what is it? I think it could be both. I mean, I think, you know, it could be a transition point. I think for some customers, again, depending on where they are, where they live, what type of industry, what type of data we're talking about, you know, that might be the way they're going to consume it, you know? Whereas I have data sovereignty laws. I can't actually move anything to cloud unless those change. But it still allows me to consume cloud in a cloud-like fashion, subscription basis, same identical services that we have in our public cloud, but just have it behind their firewall. So today's announcements featured partners pretty strong and Oracle's always had a pretty big ecosystem. It's one of the key reasons for your success. And a lot of the partners out there would like themselves to start getting into the cloud by offering services to their customers, using a lot of what you're doing from a standpoint of moving your enterprise customers forward. As Oracle looks out at the landscape, you see Oracle, AWS, you're going to compete aggressively for that. But also your partners are going to step up and they're going to offer their own cloud services. What about your customers? Do you anticipate seeing branded cloud services from your customers as they engage their competitors, their customers differently through digital means? Yeah, that's actually a great question. I mean, I do think a lot of our customers actually have their own services that they provide to users. And I'd say first to back up, I mean, I think again, it's about providing choice to our customers so they can engage with an Oracle. They can engage with our partners on not only our technology, but maybe how do I migrate to cloud? How do I consume it in different ways? Also take a more solutions-based approach. So if I'm looking at, oh, we just got hit with that, are they shutting this thing down in a few minutes? We get the sound good. That 16 ton thing's going to drop by the time it's happening here. A bunch of Python foot is going to come down on us. I thought that was like a cube announcement sort of coming up. The cube is on the cube. We should be announcing that. So I think, again, enabling the ecosystem to provide solutions. And I think as customers provide their own branded solutions, hopefully that's based on Oracle Cloud services. And it's something that they can just sort of rebrand, maybe augment, customize, and deploy for their own customers. So giving us the bell here, but I want to get one last word in this, got a little noise factor going on here, but we'll get good. The infrastructure as a service really is the third leg of the stool here for you guys, big push here. You have the SaaS business on the press release. Second year in a row, Oracle has sold more SaaS and past than any other cloud service provider. I think, Larry, you used the word combined. Not sure I agree with that, but I haven't looked at the numbers. So have in fact checked that. But then the next one comes down here is the second generation infrastructure that goes twice the compute, twice the memory, four times the storage, 10 times more IO, 20% price, lower than Amazon web services. It's a new opportunity for Oracle to layer on top of our rapidly growing SaaS and past. How are you going to layer on top of, how are you going to layer infrastructures on top of past and SaaS? Is it the other way around? Yeah, I mean, I think it's sort of how do you look at it? I mean, they're tightly integrated. I mean, there's different sorts of entry points for IaaS. I mean, there could be discrete compute, but we think ultimately we see a lot of pull through from past. So I might be deploying Oracle database, but I'm doing it on a non-Oracle sort of application tier. So I move the database to cloud and I pull compute to support that. And then from a software perspective, as you know, Mark would say and Larry would say, you know, we actually, when we sell SaaS, you know, software as a service, we're selling that full stack to go along with it. Well, put it this way, that a database buyer looks at IaaS and sees infrastructure and application seller looks at the database and sees infrastructure. And so as you said, it's really what your perspective is. Containers is going to make it even more complex. Yeah, I agree, but it's interesting because I think ultimately that's the more strategic way that this is going to be consumed. I don't think you walk into somebody say, hey, you want some compute, we got some compute. I mean, maybe more on the storage archive because it's when you look at the application development, when you look at applications, when you look at migrating databases, I think that's where you're going to pull through the infrastructure. And so that's why we're focused on offering all three layers of the cloud. There's definitely a trend towards enterprise grade cloud. We've seen that here at Oracle and at VMworld, we were just at the cube there. You're seeing the shift, they're getting out of the cloud game. So they're just a different strategy. But Pat Gelsinger, when I asked, press him on Amazon web service saying, did Amazon web service kind of force your hand? He kind of called it the developer cloud. That's how he called Amazon web services. But they have developers. So my question to you is, what's the strategy for developers? Because at the end of the day, we're seeing, talking to the VC, certainly they were just on, there was going to be a mobile explosion of enterprise developers for mobile cloud, a lot of white space. You guys have an ecosystem you have past that's developer friendly. It is very developed. What are you doing with developers? Give us the update. What specifically are you guys doing? Big mark focus, you're going to see it with respect to developers. I mean, we've had Java developers that have been an incredible community for years and we've been serving them for years. I think Judy, before Larry took the stage, announced Oracle code, which is going to be a multi city road show where we can get together. We're going to provide them access to Oracle cloud, allow them to develop in multiple type tools, which I think was an important part of the announcement as well. You know, Larry's saying, it's not just about Java, it's about Ruby, it's about, you know, Python. It's about Node.js. It's about having an open platform that supports all developers, tools like application containers, and some of the other things. How would you grade you guys now? Not well suited for developers? Certainly Java, you have developer community, but in market, when you bring it to customers, is there a developer program? You guys have things in motion. What's in market? We do have things in motion. I mean, there's a developer program today and we continue to expand that community. So we move away from just, you know, maybe traditionally Oracle developers to a broader set of, you know, developers. I think given them a robust enterprise-grade platform, that gives them choice. As you can see a lot, you know, hopefully maybe we'll see you guys on the road at some of these events, but we're going to go out. There's a huge demand for developers, a great opportunity in the ecosystem. I know you got to go, better wrap up. Thanks for spending the time. Oh, thanks, a great way to wrap up today. Congratulations, I know you're running hard. You look great. Nice watch again. All right, man, yeah. Clash the watch. I just missed the pocket square that you guys had in DC. You got to get that right next time. That's just man and Oracle. We are here live at theCUBE in San Francisco. I'm John Furrier, Peter Burr's day one of coverage. Three days wall to wall here, live theCUBE. Thanks for watching.