 Live from San Francisco, extracting the signal from the noise. It's theCUBE, covering Oracle OpenWorld 2015. Brought to you by Oracle. Okay, welcome back everyone. We are live here for day three of exclusive Oracle OpenWorld coverage here on Howard Street in San Francisco. This is theCUBE's SiliconANGLE's flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier, the founder of SiliconANGLE. My name is Brian Grace Lee, our cloud analyst at Wikibon.com, part of our research team with theCUBE. Our next guest is Juan Loez, Senior Vice President of the Systems Technology Group at Oracle. Welcome back to theCUBE. Great to see you. Nice to be here. So in January, we talked about the engineered systems. And we had a great, great showing at Redwood Shores, but here at Oracle OpenWorld, it's at the center stage. Cloud is obviously the key message, but under the hood of Cloud is Exa. Exa this, Exa data, high performance systems, the super cluster, all these engineered systems is the engine of innovation. Kind of abstracted away, but still high performance. What's the news from your standpoint this week? There's a lot of news this week, so it's hard to really summarize it all. What's your favorite? Let's rank them up. There's a number of things. We've talked about our new Exa systems that we've shipped. We have our new M7 Spark chip that we're shipping. We're talking about our 12-2 database, which is shipping next year our next generation Oracle database. So there's a lot of different topics that we're covering this week. In-memory database, another really huge topic. And security, security is a very big deal. It's becoming a bigger deal. It's a very big topic. So I think the security is on the gem of the story in my mind here at the show, but also what's getting a lot of the headlines is taking the power away from IBM, the Exa power with Intel on stage. Very interesting play there. What's the update with that program and that initiative? Well, we have an initiative for customers that are still running power systems from IBM to move them over to our Exa systems. So we're working with Intel. We have very compelling message and we decided to put together a program to kind of get over the inertia of moving and make it easy for customers to move also and provide some services and help them move to a more modern platform. You know, while we talked in January, one of the things that Dave Vellante and I and the folks that we keep on always talk about when we do the Cube is because we love the sports metaphor. We saw the Warriors on the keynote this morning is the sports metaphors. They're going to grow share, protect share. You know, it's kind of offense or defense. It's obvious Oracle's playing offense. They're taking an aggressive approach. How are you guys going to grow your share on the database piece? How is the role of engineered systems as part of that because obviously clouds the main message. But the real plutonium behind it is the engine of innovation, which is the engineer systems. How are you guys growing that share and how is it going? Give us the vision, the tactics, the strategy and then some results. Yeah, so it's very simple. We're just providing a better product, innovating across all the different dimensions. So we've long had the best database in the world and we keep enhancing it. So I mentioned we have our 12-2 database. We had our 12-1 database. We've added multi-tenant capabilities to the database. We've added in-memory computing into our database. Those are very big features. We've done it in a very effective fashion. It makes it easy for customers to adopt. We have our engineer systems. We're building a huge amount of intelligence into the database platform that makes it much more effective, much more cost-effective, much higher performance, better availability, better security. And it's very unique in the industry. There's other people that could do it but no one else is doing it. So the integration of hardware and software to produce a much more effective platform is very unique to Oracle. And then you mentioned cloud. Cloud is a big deal. So we've launched our database in the cloud and just recently we went production with Exadata in the cloud, which is a very big milestone in the world of cloud. Exadata in the cloud, for the first time, we have a first-class mission-critical database system, both software and hardware, that runs on the cloud, that can run any workload, whether it's OOTP, analytics, in-memory, consolidation, any workload. It's a very proven platform. It's way beyond anything else that people have. And a lot of cores, a lot of more everything. More cores, more in-memory, all that stuff. Every year we have more powerful platform, more powerful processors, much faster flash, much more flash, faster networking, and a huge amount of software innovations also. We talk with Wikibon team and we geek out all the time, and I'm going to use this term loosely so I want you to not go too deep on it, but I want to use it as a way to compare this modern era of computing. The mainframe was great, right? We saw the mainframe. But now the cloud is one big mainframe. Look at the cloud. It's a distributed mainframe, all this power. But there's not just single-throated apps. You have a lot of other things going on. You have open source on top of it. A lot of things moving on. But the in-memory is a huge deal, right? And security, which we'll get to in a second. But I want to talk about in-memory. When you start to see the in-memory expanding, you're talking about a developer that's looking at essentially a distributed mainframe. So there's a lot of power with the cloud. Talk about the role of the in-memory. How does that affect the dynamics of this powerful cloud opportunity? And how do you talk to customers about that? So part of our offerings on the cloud are brand new. I mean, we've had it for about a year in-memory database technology. So it's cutting-edge technology. It uses the latest vector processing, columnar formats. We have a whole bunch of special algorithms in there. And really what it provides is dramatic performance improvements and very simple to use also. So it makes things, you have to tune a lot less. You have to tweak a lot less. Because the power of the platform just makes everything run fast no matter what. And that's all included in all our database offerings now on the cloud. So we get cutting-edge in-memory technology as well as multi-tenant technology as well as everything that we've had for the last 30 years. So one of the interesting things about our Exadata platform in the cloud is it includes everything that Oracle's developed for the last three decades. So all the features, all the functionality, availability, security, everything, it's all there. So on premise we sometimes factor it and we say, well, you can get a basic Oracle and you can get a little bit better Oracle and we have another option you can add to have another option you can add. For Exadata in the cloud, what we decided to do is put all our technology in there. So every single feature, management, security, performance, scaling, in-memory, multi-tenant, it's all there. It's all available for customers. It's all included in the cloud database platform. Well, the counterargument to that would be and I want to drill down on this because Exadata is really a success story in our mind. We talk to customers all the time and they're doing stuff with Exadata that, quite frankly, is pretty amazing. And they're kind of hiding us. They have other vendors pitching best-of-breed. Best-of-breed, we have the best-of-breed storage. We have the best-of-breed recovery. We have the best-of-breed categorical product. That's their story. But there's not so much about best-of-breed anymore. When you start looking at integrated stacks and integrated workloads, you need that horsepower. So talk about the dynamics of Exadata and where have you guys been successful? Because it really is a huge success story with your Oracle Exadata. Where is it being successful? And then highlight that example on premise and then talk specifically about where that moves to the cloud. Okay, sure. So we asked a number of different questions there. So first of all, in terms of integration and best-of-breed, what's important to understand is Exadata is best-of-breed at every level. So we have the best processors, the fastest Intel and Spark processors. We have the fastest flash, the PCIe flash in the industry. We have the fastest network, Infiniband network. So it actually is best-of-breed across every layer. So there's really nothing you're giving up in return for integrators. It's not like you have to say, well, I got to choose either best-of-breed or an integrated system. We really are best-of-breed at every layer. In fact, beyond what other people that claim are best-of-breed. We hear that too. And then we put it all together and there's kind of two aspects of it. One is integration. So people talk about, well, we integrate all the components and that's important and we do a lot of that. But we go well beyond integration. What we do is we bring intelligence, basically database intelligence to all layers of the stack. So it's not just saying, well, this component, we're going to integrate it with that component. We're crossing the components. We're writing tons of specialized software to take advantage of being able to cross all the boundaries to give very dramatic benefits to customers. You mean all that to the cloud? Yes. And in terms of where it's been successful, that's an interesting question because a lot of other products are specialized. Like they'll say, okay, we're a specialty analytics product. We're a specialty OLDP product. We're a specialty streaming product. We're special this product, that product. Because our database has been around for over 30 years, we don't have specialty products. We've built all these algorithms. So what's important to have is special algorithms for all these different models. So we have special analytics algorithms, special OLDP algorithms, special in-memory algorithms, multi-tenant algorithms, but they're all in the same product. So you get the benefit of having all of these things put together. So you don't have sort of a car that goes fast but only carries one person or a car that's big but slow or a car that's very inefficient. You get all of it in one package. In the next data, we've been very successful across the board. So we have giant OLTP sites running, e-commerce sites, financial trading sites. So the most mission-critical sites, we have giant data warehouses running on Exadata. We have huge consolidated systems on Exadata. We have giant SaaS clouds running on Exadata. For example, in the Oracle SaaS cloud, it's totally working. So we're not specialized. So it's one thing when you ask about where we've been successful, we've been successful across the board in all the information management and customers benefit from having mixed workloads. So most people have a mix of workloads. They're not pure OLTP, pure analytics, and they all want security, availability, management. All that comes in the package. So you don't have to have the trade-offs. You don't have to specialize. You don't have to say, well, I got this pen but it only writes this one thing. It's a general-purpose system that handles everything in a best-of-breed fashion. It's a big deal. It's hard to do. We can only do this because we have thousands of engineers working on it and we've been working for decades. So on the application side, we've seen this trend, they call it DevOps. It's the operations team, the developers, being much more tight. Thomas talked about this idea of DevOps deploying faster and faster. Hardware and software has sometimes been fairly separated. The ops teams and the development teams, applications, how did you guys get those teams to get over the hump to say, I want to integrate a hardware and software system because in a lot of cases, they were siloed before. What was the driving force that you find? It's always been siloed. Really, even in companies that have both software and hardware, it's really been very siloed. And I think what really brought us together was a shared vision of, hey, we're going to do this thing together. And we started about five years ago. So a good example of that is the new Spark M7 chip that's just come out. We've been working very closely with the hardware team for over five years to get the database functionality built into that chip. And it's very unique. There's never been an enterprise software company that's driven the design of a computer chip before. It's never happened. We get excited about that. This is like, protect geeks that love to look under the hood. This is a big deal. Talk about that end-to-end security play because when John Fowler was on, he was like, man, we had this in 2005 at Sun. It's always been kind of hanging around, but the fact that perimeter-based security is pretty much everyone is acknowledging that's an flawed strategy. You want to have security everywhere, but now you have encryption on the chip end-to-end. That's a huge deal. How would you describe that? It's really kind of not getting the level of play that we're seeing out there in the past couple of days. So share your opinion and insight into the magnitude of that opportunity. That's a big deal. There's more and more hacks going on all over the world. Nobody's safe. The bottom line today is nobody's safe. And there's bad news, which is we've talked about in-memory database. As we move databases into memory, we get terabytes of data in memory. The security gets worse. It's more vulnerable. It's a lot more vulnerable. So data in memory is actually a lot more vulnerable than data on disk. So we're actually moving in terms of the data in memory world, but that's actually going to hurt security. And that's why when we initiated our in-memory database project, we also initiated a parallel project to secure that data in memory and to do it in a very fine-grained fashion with very little overhead. And that's the project that we started with the Spark CPU team. We said once we move all this data into memory, it's going to be enormously vulnerable. We're going to take a giant step backward in terms of security, to make it more secure once it's in memory. And so that's what we've done. We've integrated the security checks at the fine-grained memory level into the chip. So when someone allocates memory, it's automatically secured for just that user. No one else can touch that memory. It must be super exciting for you guys because with the market, the way it is, you're like, oh, yeah, we did all this great stuff. You just put the big rock off your back. You can solve a big problem with security. And then data in motion comes in. You don't want to lose any data, so I want it secure end-to-end with encryption and I don't want to lose anything. And by the way, we want real-time, everything's in motion. So that's another challenge. Talk about that because you guys have that zero-loss product. How does that connect in? So you've got to serve a lot of masters here, again, back to your specialty comment. Yeah, so we have a lot of different efforts going on. What you mentioned there is zero data-lash recovery appliance. It's the only smart backup and recovery appliance in the market. We've built, again, the database. We put the database smarts in the platform and two of the big benefits of it are you don't lose data. So as databases generate data, it automatically synchronizes all the new data to the recovery appliance. So if the primary database dies for whatever reason, the site dies, you will not lose any data. It's the only product in the market that can say that. And how does that appliance evolve over the past year? Since we last talked, what's the update on terms of traction? Can you give any anecdotal? The fastest growing products ever. There's been a very large amount of interest. I mean, the prospect of not losing data is actually a big deal to customers, believe it or not. Financial customers, retail customers, kind of not losing data is a big deal. So there's been a lot of interest, a lot of traction. We've had very good success with that product. Awesome. Earlier, we were talking about how quickly the spark chip is refreshing. I think six new ones in five years, new exadata systems are coming out every year, you know, here. How do you keep up between, you know, lots of talk this week about, you know, the Oracle public cloud and what you run on premise exactly the same hardware. You've got that system compatibility. How do you help customers make sure that what you're going to put in your cloud, which is going to go as fast as you can, can be in sync with something, an asset that they typically keep longer than that. Are there programs to help them refresh the on-prem hardware to keep up with the cloud hardware? Or how do you just make sure that it's there? Yeah, so, you know, the reason why, you know, one of the things that Oracle's always done is we have one code base. So we don't have a separate code base for cloud and on-premise. It's the exact same product that runs in both places. And that's key to keeping complete compatibility. Not everybody does that. Sometimes people go off and write something different for the cloud. What we've done is we've expanded, we've enhanced our database. Just like we've done for in-memory, so for example, for the cloud, the security requirements are even higher in a public cloud than in a private cloud. So we've implemented a lot of security technology and all that's moved back into on-premises also. So we want to keep these platforms synchronized so there's no gap. There's nothing you can do on-premise that you can't move to the cloud or vice versa. Talk about the offense strategy. I want to get back to that because this is really fundamental here for me at Oracle over the world. I think, yeah, five years ago when we were here, you saw Larry up on stage. I'm going, hmm, we read the world's change. It's kind of a lull, the eye of the hurricane. It's kind of like the ego says, it's like, what's going on? And then that shit was happening five years ago. So now you're five years in, things are really, really moving fast at Oracle. The offensive strategy is to, okay, let's move to the cloud. And you'd say you're disrupting yourselves. I mean, Oracle is disrupting itself to get the new territory, the new modern era because client-server, you know, it's had its time. We're now in the cloud. When you meet with your team, share the guiding philosophy that you, you know, say to the troops internally, hey, this is how we're going to disrupt ourselves. We're going to take the Oracle stuff. I'll see you mention that. But there's new stuff out in the horizon. I mentioned DevOps. It's open source. I saw Thomas Curry on stage talking about open technologies. So now you have a blend of new systems, opportunities that will stand into the marketplace with open. So what is that speech that you give the troops? How do you talk to your teams? What's the guiding principles internally when you talk to your folks? Well, it's really very simple. You know, we live in an industry that's in constant change. So if you look at the history of Oracle, Oracle's been the leader in enterprise software for decades. And there's very few companies that can say that a lot of companies kind of have a little spike and then kind of fade away. Oracle's been the leader for all these years because we embrace change. So every year we look at it, we say, okay, here's our next challenge. And that's what's fun about it. That's what's fun about being in this industry. We never get to sit still. We never get to basically keep doing the same thing. There's always a new challenge. You talk about in-memory, multi-tenant, cloud, engineered system, software and silicon, all these things. So the change is coming rapidly at us. And that's the fun of it. The people that are in my team love that. We learn to love change. I asked some of your peers the same question. It's a really interesting response because it seems to me, at least from an outsider looking at Oracle, it really elevates when the competition is hot. Because if you're kind of standing around, the competition also is active. That brings more change requirements to the product teams. So one comment was, I said, so are you guys bringing your A game now that there's a lot of competition? No, we always had our A game. I'm like, okay, do you elevate your A game, A plus game? Is that the culture in Oracle? Is that kind of the vibe internally? Is that, hey, people embrace the competition? Yeah, I mean, that's part of it. And the other part of it is learning how to manage a scale. For example, having a hardware team, if you just have a hardware team sitting in some other building somewhere and you never talk to them, it actually doesn't help a whole lot. They may as well be in another company. What really separates us is bringing that scale, bringing these groups together and making a brand new breakthrough products. That's what it's really all about. The M&A's been great, too. You guys have done a great job with the acquisition. It's a large scale. To wrap up, I want to ask you, what should people expect from Exadata in the coming year? What people should expect is more innovation in Exadata. Every year, we're going to refresh the hardware platform to take advantage of the latest CPUs, flash, memory, everything, but also, we're constantly adding new software capabilities. For example, we're moving a lot of our in-memory technology into flash. There's always new software capabilities that we're adding to Exadata, and so the platform will continue to differentiate, will continue to separate from generic platforms. So it's going to get better and better. Customers at Exadata will be able to take advantage of all that new software capability in their existing platform. Final question. The vibe of the show, for the folks watching, what's your take on Oracle OpenWorld this year? What's the sentiment? What's the vibe? What's the main story? Obviously, Cloud is everywhere, but from your perspective, share some color on what's happening here at Oracle OpenWorld. One of the great things about OpenWorld is it's a highly technical conference. So the vibe here is great. I love being with our technical customers. They want to hear about the new technology. They're very excited. Actually, our customer base is extremely excited about the cloud innovation, software in Silicon, our new engineered systems, new database releases. The world is constantly getting better and customers are loving it. Juan Luisa here, senior vice president of the engineered systems group here at Oracle. We're on Howard Street, the closing down San Francisco for 60,000 people here at Oracle OpenWorld. Go to siliconangle.tv to check out all the new videos. And go to crowdpages.co slash O-O-W-15. All the content we're pushing out live is on that site. Trending stories, what's going on in the conversation space. Go there and check out the conversation. SiliconANGLE's exclusive coverage of Oracle Open. We'll be right back with more after this short break.