 Ladies and gentlemen, please welcome Larry Ellison. Can we turn that up, that moniker? Thank you for joining us here this lovely Wednesday afternoon in San Francisco. All right, six years of engineering. You know, my first version of that slide was four years of engineering. Then I changed it, so it took a little longer than we had planned. But it was a huge, huge engineering project to build a complete and integrated suite. ERP, human capital management, CRM, all the different pieces built on top of modern technology, rebuilt on top of modern technology. Complete, integrated, and finally here, next slide. And it is a gigantic, it was a gigantic effort, accounting what used to be called human resources, human capital management, supply chain, projects, procurement, CRM, governance risk compliance. Next slide, over a hundred separate computer programs, over a hundred separate products, all rewritten, all rewritten on top of modern technology. It was, it took us six years, but I think it was worth the wait. Next slide. We didn't do this alone. From the very beginning, we started working with our customers during the early design phases, our PeopleSoft customers, our Siebel customers, our Oracle customers, our Hyperion customers. We talked to all of them and asked them what they wanted in the next generation of technology. And then we designed it and built it and showed it to them and they criticized it. And we worked again and reworked until we finished this six-year journey of rewriting all of our applications on top of modern technology to meet the needs of our most demanding customers. And we had 200 design partners, 200 testers, and now we have 200 live customers on top of Fusion applications during its controlled release period. Next slide. But that controlled release period is now officially over. All of these 100 plus modules, these 100 plus new products are generally available to all of our customers all over the world. And we have tens of thousands. I'd like to thank all of our application teams for designing a great product, building a great product, and sticking with it until you're finished. Of course, you're never really finished. There's going to be another version, another version, another version, but now we're delivering it to our customers. Human Capital Management, ERP, CRM, all those pieces are here today. Next slide. I'd like to go back six years to the very beginning of the project and review for all of us some of the design goals we had for Fusion. Why did we rewrite PeopleSoft and Siebel and Hyperion and the Oracle e-business suite on top of modern technology? It was a huge effort. It took a lot of engineers a very long time to do this. Why did we do it? Why did we do it? What was wrong with Oracle e-business suite or PeopleSoft? I mean, they're a good product. They are market-leading products. They are market-leading products. And we continue to invest in them today and we'll continue to invest in them tomorrow. But we felt we had to move to a new generation, the next generation of technology for very specific reasons. First, we needed applications that were designed not to run just on-premise in your data center, but we needed design applications that also ran in the cloud. Now, six years ago, it wasn't called the cloud. The term cloud was actually popularized by Amazon.com's EC2. It's the Amazon.com's elastic compute cloud. They kind of invented and popularized the term. But before there was the cloud, there was SAS, NetSuite, Salesforce.com, those guys. So what we really said with the original slide, really looked like it was designed to run as a service on the internet, SAS, and on-premise. But the new popular term today is cloud. So designed to run in the cloud and on-premise. That meant we had to rebuild, redesign, and rebuild our applications. Next, we wanted to build our applications on top of industry-standard middleware using industry-standard languages. No one had ever done this before. SAP, to this day, uses ABAP. A more modern system, Salesforce.com, uses Apex. We thought that was a huge mistake. People used people tools. We used an e-business suite, something called Oracle Forms. Everyone used proprietary languages, worked as his proprietary language, sales, where everyone had proprietary languages. We thought it was a very bad idea. So first thing we had to do was re-engineer our middleware so it could provide a foundation for our applications. And we did that as a two-step process. First, fusion middleware. And then after we built the foundation, fusion applications built on top of industry-standard fusion middleware and the most popular programming language in the world, Java. So when you extend the applications, when you add to the applications, you write in Java. When you link up your application, this application to one of the applications you built, you use BPEL, another standard way of interconnecting the pieces. Because we have a service-oriented architecture, a modern service-oriented architecture. Nobody else does. SAP R3 sure doesn't. Salesforce sure doesn't. Workday sure doesn't. We didn't. E-Business Suite, PeopleSoft, Siebel, we didn't have it either. These are relatively new concepts. So we had to re-architect our applications to move them to industry-based standards and a modern service-oriented architecture. That's why we had to rebuild. That's why we took this six-year journey. Next thing, security, if we're going to run this thing in the cloud, across the public internet, this thing has got to be much more secure than it ever was when it was running in your data center behind your firewalls. It's got to be much more secure. Now, everyone up until now had built their security into the applications. By the way, the E-Business Suite security built into the E-Business Suite. Siebel security built into Siebel. Salesforce.com security built into their application. SAP security built into the SAP application. We did not want to use application-level security. We did not want to rely on each and every person writing application code to guarantee that your data and data center and applications were secure. We wanted security to be a part of the underlying infrastructure. So when you built the application, it was guaranteed to be secure because the infrastructure was secure. So we didn't put security into fusion applications. We upgraded the infrastructure so that the security is built into the virtual machine and the operating system and the middleware and the database and anything built on top of that infrastructure is secure. Whether we build the application, our application development teams build it or you make extensions, it's secure because the underlying technology is secure, especially important in the world of the cloud and the public internet. And finally, we wanted to give this new suite of applications a whole different look and feel. It shouldn't just be a dumb page with a bunch of icons in it like a Windows blue screen with a bunch of icons, do this, do that, do this. Instead, we wanted, when you logged on and you walked into your office and you hit your home page, your welcome screen, whatever you want to call it, that first page would tell you the latest news about your business, give you real information on the very first screen and it will tell you, let's say you're a first level sales manager, it will tell you what happened in the last 24 hours to the forecast. What deals got closed? What deals fell out of the forecast? If you're a first-line sales manager, how are all your direct reports doing? How are they doing? How much did they sold versus what is their quota in the quarter? You get that information right on your first page. Plus, that's what you need to know. What do you need to know right on your first page? Also on your first page is a list of tasks. What do you need to do? So-and-so needs to get an unusually large discount approved. Do you want to approve it or not? One of your managers wants to hire this sales consultant. Please sign their offer letter. So-and-so is requested to go on vacation for this two-week period. So, two weeks before the end of the quarter, do you want to approve it or not? Mark's shaking his head, no. So, right away, your first page tells you the latest business, what do you need to know, latest news about your job, and what do you need to do? A complete task list. A very different UI than we had in e-business suite or Siebel or for that much what SAP has or what Salesforce has. Okay, so if we have a suite of applications designed to run in the cloud, I guess we need a cloud. Next slide. So, my first announcement today is announcing the Oracle Public Cloud. Next slide. When you need a cloud, you just need a cloud. Everyone's got a cloud. We need a cloud. Okay. So, our cloud's a little bit different. Our cloud's a little bit different. On the lowest level, it's both a platform. It's both platform as a service and applications as a service. It is both. And the key difference, the key difference I keep coming back to this theme is our cloud is based on industry standards and supports full interoperability with other clouds and with your data center on premise because we all share the same standards. Just because you go to the cloud doesn't mean you forget everything you learned about information technology over the last 20 years. You don't say, we don't need standards. We don't need interoperability. We're in the cloud. What good is that? Well, we think if anything, standards and interoperability are even more important when you're in the cloud. Security is more important when you're in the cloud. So, we have two levels. You'll see the Oracle Public Cloud at the lowest level has got a series of platform services, a database service, a Java service, a data service, information, not database, but the actual data itself. A data service and a security service all built into the cloud infrastructure. And then on top of that foundation we put our fusion applications or you put your custom applications or your extensions to our fusion applications all built using the underlying platform services. The underlying standards-based platform services. Next slide. All right. The database service. You can take any existing Oracle database that you have and move it to our cloud because the database service in the cloud is like the database service in your data center. You can just move the data across and it runs unchanged. Oh, by the way, you can move it back if you want to. Or you can move it to the Amazon cloud if you want to. You can move your data between our cloud, someone else's cloud, your data center back and forth and back and forth again. You can do your development test on our cloud and go production in your data center, move the production system in your data center to Amazon and then back to your premise all everything is portable. Your data is portable because everything we do is standards-based. Everything we have that runs in our cloud runs in Amazon's cloud and other clouds that are standards-based. And in your data center. Next slide. The Java service. When you want to extend our applications or build a custom application, you write it in Java. Your Java Double E. You have an existing Java program in your data center right now. You can move it to our cloud. You can build a Java application in our cloud, move it back to your data center or the Amazon cloud or the IBM cloud or any other cloud or any other data center that supports industry standards. Oh, by the way, don't try to move that Java Double E application to the Salesforce cloud. It won't run. And don't... Oh, we have Heroku. We just bought Heroku. Heroku, we just bought Heroku. It runs Java. Well, no. It doesn't run Java Double E. It has part of the Java application. It's kind of a Salesforce version of Java that only runs in Heroku. So if you try to take a Heroku application and move it to your data center, it won't work unless you buy Heroku. It's not standards-based. Our cloud is standards-based. Next slide, please. Okay, famous quote. I'm not sure where I heard it. I'm not sure where I heard this, but, you know, it's bringing in my mind someone very famous in the cloud business said beware of false clouds. That is such good advice. I could not have said it better myself, but I'm going to say it again. Beware of false clouds. There is a huge difference between clouds and false clouds. Our cloud is based on industry standards. Java, BPEL for integration, XML, Groovy, web services, easy to interconnect applications in our cloud, the Amazon cloud to applications in your data center all using standards. At Salesforce, well, if you want Apex, the only place you can get it is Salesforce. It is unique to Salesforce. There's only one set of computers in the world that run Apex, and that would be Salesforce. You want to build your applications in Apex, you better run them in Salesforce forever, because that's the only place you can run them. Heroku is not industry-centered Java. If you build something in Heroku, you can't move it. It's not a Java double E compliant application. It's a derivative of Java. Forrest.com, you're right in Apex. Again, all of this stuff is non-standard. All of this stuff is unique to Salesforce.com. It only exists in one place in Salesforce.com. Now, if you don't care, fine. But understand you're committing yourself to life to run that application at Salesforce.com because it doesn't run any place else. You can't move it any place else. You can abandon it. You can write it and say, oops, you know, I just give up, but you can't run it any place else ever. And you can't build things in your data center and move them to Salesforce.com. That doesn't work either. If you're not happy with Salesforce.com, you can't move to Amazon. You can't do anything. You know, Salesforce.com cloud is kind of, you know, kind of sticky. You know, it's kind of the ultimate vendor lock-in. You can check in, but you can't check out. I like to think of it as the Roche motel of clouds. Now, that is a false cloud. It's like an airplane. You're flying into the cloud and you never get out. It's not a good thing. With Fusion applications, with Fusion databases, they run in our cloud. They run in your data center. You can move them back and forth, no problem. With Salesforce.com it is a false cloud. It's good for Salesforce, not necessarily good for you. Next slide, please. Okay. I said we have a database service based on standards. We have a Java service based on standards. We also subscribe to lots of data. As I said in the first thing, you can load your data into our cloud. Move it from your data center here. But we also subscribe to a lot of useful data that you might want to use in our cloud, like the Dunham Bradstreet data or census data. Data extracted from a number of social networks. Lead information. We're going to populate our cloud with a lot of useful data for our customers. So you don't have to go out and make lots and lots of separate deals and subscribe to this data. You'll be able to repurchase this data from us. We'll resubscribe to this database right on our public cloud and feed that data into your applications. Whether they're Oracle Fusion applications or applications you wrote yourself. The data service on the public cloud. It's a monthly subscription. You go to the Oracle store. You sign up. You can use your credit card. Within minutes of signing up it's instantly provisioned. Instantly provisioned and you're up and running with a database with the ability to write Java programs with the ability to run Fusion applications. Very important aspect about our public cloud. It's elastic. Amazon thought elastic was so important. Such an important characteristic of the cloud. They put it into their name. It's called the elastic compute cloud. All elastic means is if you're running a long running report or it's the end of the quarter and you need more compute capacity or more storage. You get the additional compute capacity. You get the additional storage automatically. It's elastic. When you're through using that capacity it shrinks back down. You only pay for what you need. That's how the Oracle public cloud works. It's fully elastic. You can expand it instantly for a couple of days at the end of the quarter and then shrink it back down. You only pay for what you use. It's very different than a cloud that's rate limited, that's capacity constrained where they cancel your long running reports because it's using too much CPU power like over at salesforce.com. They actually cancel your reports. They monitor your reports and if they're taking up too much compute power, they cancel them. We don't do that. It's elastic. They have no choice. They can't add capacity. They can't let one runaway reports slow down their whole system so they have to cancel it. Ours is very different. It's elastic. We don't have that problem. And of course you use Java to develop the fusion apps etc. Next slide. Okay. The fusion suite is very unusual. It's a complete and integrated suite of applications and it runs both cloud and on premise. If you go SAP, our biggest application competitor, has the large suite of applications called R3. It's had several names but it's still basically R3. And it really is designed only for people like Siebel or some of Siebel stuff and more like eBusiness Suite and PeopleSoft. Now there are a bunch of new cloud companies that do route. You can buy softwares of service over the internet like salesforce.com and Workday for Human Resources or Human Capital Management to lay over talent management. But these are siloed separate applications. Fusion apps are the first complete and integrated suite to run cloud. First one. Took us a while, six years, a big job and of course the same exact code. The same exact code runs on premise. So if you're doing an implementation, you can do your test, your development test in our cloud and then when you're ready to go production you can move it back to your data center if you want to or leave it in our cloud. Your choice. You have a choice. The key thing is you have a choice and I'm pro-choice. Next slide. The guys at Salesforce, they're not pro-choice. They think you should run everything at Salesforce. Okay. Service-oriented architecture. So when you connect the fusion applications, you can have some of the fusion applications. You can have CRM or your Asian AsiaPak CRM or pieces of stuff in the cloud. You can have other stuff on premise. It's all linked together using industry standards like BPEL. Everything's web service. Everything is a web service. Very easy to connect these things with each other. Cloud on premise. Fusion applications to your custom applications. Very easy to interconnect all this stuff using standards. Salesforce doesn't have any of that stuff. Everything they have for linkage is proprietary. Forced.com. Write a custom program in Apex and we're rock and roll. Let's go. Everything's write a custom program in Apex. Next slide, please. Amazon.com again is when you sign up to Amazon.com and you get resources, you get some number of virtual machines. That's how we allocate capacity. Certain amount of disk space, virtual machines. And you your applications and your data run in your personal or your company's personal isolated, in the best sense of the word isolated virtual machine. Salesforce has a different idea. They say, why don't we put everyone's data and put it in the same database? We wrote the database. We think that's a really bad idea. Unless it's actually good if you want to look at your competitor's leads or something like that. That's a very bad security model to put everyone's data in the same database. It's called multi tenancy and it was this data of the art 15 years ago when they started. I mean it really was the best we could do 15 years ago. I have no problem with them starting with multi tenancy. It was a good idea 15 years ago. This is 2011. All the compute clouds, all the modern compute clouds are virtualized. These virtualization is part of their security model. We give you a separate virtual machine. Your data is in a separate database. Your data is secure. You get capacity on demand because you're virtualized. They don't have any of that. They put your data at risk by commingling it with your competitor's data. And God knows whose data. Next slide, please. All right. True clouds versus false clouds. Some key questions to ask. If you really want to figure out, okay, so what should I ask someone who's a cloud sales person? Say use my cloud. Say no use my cloud. Use my cloud. Simple question. If I write an application in your cloud, can I move it to another cloud? If I write an application in the Salesforce cloud, can I move it to Amazon? If you write an oracle, you can move it to Amazon, move it on-premise and back. You write it in Salesforce, Roach, Motel of clouds. Virtualization. Is my data just kind of mixed up, smushed together with everyone else's data in the same, in one or a big oracle database with everybody, including my competitors? Yep. Is that a problem? Works for us. We like it because we have to buy less database. It's a really bad idea. We keep your data secure, your applications separate in your own virtual machine. So is your data safely stored in a secure, separate database and a separate virtual machine? Oracle, yes. Salesforce, uh-uh. And finally, if I need additional capacity, do I just get it automatically? Or do you cancel my work? With Oracle, with the Oracle Public Cloud, you get elastic capacity on demand. Whatever you need, you get automatically. When you're through using it, it shrinks. You only pay for what you use. In Salesforce, you use too much capacity, we're going to kick you off the machine. True cloud, false cloud, you decide. Next slide. Okay, back to our original design goals, specifically the last design goal. Remember, these design goals are six years old. And we said we want to build a modern user interface with business intelligence and analytics, business intelligence and analytics built in, not added on. So again, if you're a sales manager on the very first screen, you see the current state of the forecast, what's been sold, how your direct reports are doing, how the pipeline looks. You get all of that data right on your screen and a list of tasks. What do you need to know? What do you need to do? We still think that's right. It was six years ago. But things have changed. Next slide, please. Over the last six years, social networking has been a critical new technology in redefining on the way people interact with computers and interact with each other. And we think this has huge implication on how we build modern applications. Next slide. So we built a social network. My second announcement of the day, the Oracle public cloud, we're announcing the Oracle social network. Because we realized over the last six years the biggest thing that had changed, the biggest thing that had changed in computing was social networking. And we would build the applications differently. We realized this a while ago fortunately, not just last week, that we would build the applications differently in light of social network technology. And that we had to build our own social network, and we did. And we had to integrate it with all of our applications. CRM, ERP, HCM, governance, everything. And I'm going to demonstrate how that social network works. With built-in web conferencing, document sharing, building network amongst people. So we changed our user interface goals. By the way, this is the only goal that we really changed over the past six years. So it's not merely what do I need to know? What do I need to do? It's who do I need to work with? And then we've got to enable you to work together as a team. And we do that with the Oracle social network built-in to each and every one of those 100-plus fusion applications. Next slide. I'm going to go through this very quickly because I've been up for 26 minutes. Is that right? Thank you. Just checking. See how I'm doing. I've got a demo. I'm going to do my own demo. It's going to be very exciting. A little nervous about this. So, but I wanted to give you a look. I'm going to show you some HCM application screens. Again, I'm not going to spend a lot of time explaining them because I'm going to explain the social network and the user interface in the demonstration. But I want you to just look at how different this looks. This is our person gallery. It's Maria Williams. You can see her social network, the people she works with over on the right-hand side of the screen. There's you can see that, you know, currently, she's in system support. The name of her manager, she's currently away at a conference. So, a very familiar, the user interface is very different than most applications that you'll see. Next slide. Again, another HCM application. Here I want you to look kind of on the right-hand side. It's something called My Tasks. So, you get a task list, a list of things to do. I said, you know, what do I need to know, what do I need to do? You get a task list with the things to do. You click on those, and that's why you go to the application. You know, should I sign this offer letter? Click. And you can approve the offer. Can I approve the vacation? So on. Next slide, please. So, it's not only what do I need to know, it's also how you navigate when you decide to do it. How do you make the approval? So, the information is actually the menu and how you navigate through the system. Okay, because we have a HCM system throughout, you use in the social network, you use among other things, that's how you navigate through your organization. But you can create additional networks of people you work with. Next slide, please. And this is another HCM talent management slide. Again, I'm going to start the demo in a couple of seconds. I just wanted to give you a feeling for how different this is from what we produced before and the competition. Next slide. And, of course, of course, all of the Fusion applications, and I mean all of the Fusion applications run not only on desktop computers, they also run on mobile devices like iPads and iPhones and Android and such. Next slide. Oh, hold it. Stop for the applause. Back up one slide. Okay, please. Mobile devices mobile devices like iPad and iPhone. Thank you very much. Next slide, please. Just so you remember, please.