 Live from San Francisco, extracting the signal from the noise, it's theCUBE, covering Oracle OpenWorld 2015, brought to you by Oracle. Now your hosts, John Furrier and Jeff Frick. We're gonna do 48 interviews. We are here. Okay, we're live here in San Francisco. This is theCUBE. We're excited to have an amazing, special, exclusive presentation at Oracle OpenWorld. We're on Howard Street. They closed down the streets. This is theCUBE, SiliconANGLE's flagship program. When we go out to the events, extract the signal noise, I'm John Furrier, founder of SiliconANGLE, joining my co-host Jeff Frick, the GM of our CUBE operation, Arnesca Amit-Zaveri, Senior Vice President of Cloud Platform, and the integration products. Welcome back to theCUBE. Great to see you. Thank you, thank you for having me. We spoke last at the Cloud kickoff in Redwood Shores. Larry gave the big speech. Now it's the coming out party, certainly of Cloud. Mark Hurd was interviewed this morning on CNBC and the question was, are you guys determined to be in the cloud business? Any women? Determined. Yeah. Determined, you know. It feels like we were in the cloud business for years now. We're in the cloud business. We're winning the cloud. No doubt, yes. So congratulations. Thank you. And the world's interesting now. You'll see Dell EMC merger acquisition. Gonna take about nine months to complete that. So once they get that done, they got to go to market to figure out. Amazon doing very well. Their performance is off the charts. Oracle positioned very well with the middleware positioning. End-to-end security with the M7 super clusters. But the cloud is all the conversation here. So Juan, you're excited, I can imagine. So you don't have to answer that question. I know you are. But what does it mean for you guys and the customers? Because now this is an interesting, you've got two fronts of competitive landscape that the customers are trying to squint through. Top down from the stack, the SaaS, and bottom up from the infrastructure with Amazon. And can everyone else kind of satilating around that? What's your take? For us, I think it's the full complete solution around the cloud, right? The way we look at it and the way we've been investing is to build the full end-to-end cloud offering. So the customers don't have to figure out how and what to use every time and how to bring all these things together and integrate them, right? So we, of course, have SaaS. We've been talking about it for many, many years and quite successful in there. Over the last few years, we've been talking a lot about platform as a service and infrastructure as a service. And both these areas have been a huge amount of investment at Oracle and a lot of these things are now coming out. And we've been talking to our customers. We have quite a few customers adopting a platform today in the cloud. And that's really the big, exciting things for me at least personally is to be able to provide the whole end-to-end cloud platform on which our SaaS properties run as well as customers' integration or their runtime would run on it. You guys are no strangers to what the dynamics are in the marketplace. I want to get your thoughts on the concept of hybrid cloud, but first some context. It's been years since you guys really been retooling the software stack at Oracle. And then public cloud has just emerged a success. But hybrid cloud is more of an engineered solution. So we use the term on theCUBE, engineered cloud. Not that you guys use that yet. But if you do, you can get some props and royalties for us. But that's what customers are looking at hybrid. There's no product for hybrid. It's not a SKU. You can't buy a hybrid cloud. You have to engineer it. And talk about what that means from a customer because with the on-prem and cloud, the hybrid is really the engineered outcome of connecting those two. Take us through that. And what does it mean from an interoperability standpoint? Yeah, I think that the way to look at this is if you look at the customers today, they have a lot of assets which are running on-prem. They're going to continue using, continue investing and to kind of keep the business running while they migrate and will move a lot of the new workloads to the cloud or some specific things they want to do in the cloud. So you want to have an architecture which can work in both ways, right? So you can support the existing investment while you give you the transition time and they'll be able to adopt a lot of the newer technologies in the cloud in a much seamless manner. So as you said, it's a solution, no doubt. But there are a lot of things you can do architecturally to make it very simple for customers, right? So you want to have an ability to understand what's working on-premise. How do you take the data of that? Move it to the cloud when you need to and do this seamlessly on a regular basis. So the stack needs to be very similar. The architecture needs to be the same. The way you use it needs to be the same. The experience needs to be the same, right? But the flexibility needs to be with it as well. So that's really how we are engineering a lot of the hybrid-based solutions, right? So if we have customers who have a lot of the data, a lot of the data running underneath the application on-prem, we have the ability to move that data very easily to the cloud. And then when you make some changes in the cloud, I want to do analysis on-prem, I can move it back as well. And then integrate the messages, integrate the flows without having to rewrite a lot of the things. Well, rewriting and also creating new software. A lot of the current problematic clouds is that you got to write software, integration software. What do you guys do in Oracle to make that easier? Because that seems to be the number one pain point is, hey, I already underwrite a lot of pressure to write software to begin with. New software, new workloads. I don't want to rewrite integration software. What are you guys doing to solve that problem? It's a very good question. One thing we've done is we have kept our cloud architecture very similar to what you would have been using before in terms of artifacts you used, the objects you build, the code you've written, including Java code, or you might have built some people workflows that work seamlessly and the cloud is one. Second thing, we also build out a lot of the tools for doing application development using Composer, right? So using a browser without having to write a lot of code. It's a drag and drop, which is based. So we have this thing called application builder cloud service, which makes it very easy for a line of business user or an architect or a business analyst to build those applications for the cloud without having to write Java code or any specific getting to the developer part of it. So that- A lot of re-leverage of the existing stuff, right? No doubt, yes. So I got to ask you the hard question because I'm floored that analysts and the press aren't picking up that Oracle is a major player in the crowd. I mean, it's not a zero-sum game. It's not a one-winner-take-all. It's a winner-take-most. It might be top three vendors. They say Amazon, Google, and those are the top three in obviously Azure. Oracle's really kind of not mentioning it. So, you know, he's like, hey, what are you talking about? So you guys will be in the top three, in my opinion. But what's interesting is that you hear about microservices. We start Docker on a slide with Larry. This opens up a whole nother conversation around what is the platform of the future. So for instance, IoT. Yes. Is that an app platform? Or is that an application market? Or are people going to build their own platforms? Because now it's like, okay, why should I build my own IoT platform? No doubt, yes, yes. So a whole dynamics of all the not just RedStack or Oracle specific ERP and database, there's a plethora of new markets. No, no, very- Are you guys aware of that going after that? No, 100%. I think one thing I want to be very clear about, right? I mean, people talk about Amazon and Google and all these vendors, but they're providing one part of the cloud solution, right? So infrastructure as a service, no doubt Amazon is one of the leaders there. But when you look at the broader market, they're not there. They don't provide you any SaaS capabilities. They're barely in the platform as a service. So when you talk about the cloud platform, people are moving away from just infrastructure to a lot more value add, high value services, which is where I think we can be a really big player and be already delivering services like you talk about IoT. You'll hear about it tomorrow, the IoT cloud service which we have launched, which allows customers to really start taking capabilities with sensors and devices and connecting them together, but it's not about connecting only. It's how do you collect the data real-time? How do you analyze it? And how do you have analytics on it? So it's an analytics platform more than the way I see it than just infrastructure for collecting data. So that's really how we are starting to see all these things. So IoT cloud service, for example, is a very solution-oriented offering. It's not an infrastructure only. And I think that's what the difference, I think, to the way we approach this thing. Similar with big data, right? Big data is a lot of people talk about it. You have Hadoop. Hadoop is an infrastructure you can get from anybody. What about the preparation around it? How do you do data wrangling? How do you cleanse the data? How do you bring it in from a different source to different targets? And how do you do analysis on it and prepackage analysis? So that's, I think the big thing from us our perspective is to move up and provide a full platform to do a lot of these things and embed it with apps. So you're looking at an enabling platform there. Yeah. So I mean, a lot of the inertia have to do things and you have a lot of things out of the box in there. So you're going past. Yes. Just Oracle-only apps. If people want to build their own IoT app, no problem, right? Yes. Because it sounds like, I mean, from the hybrid integration, what you're talking about is really being able to bring cloud benefits, right? Speed, flexibility, expandability into things that aren't necessarily cloud. So there's a benefit of bringing kind of cloudness, if you will, to your traditional IT infrastructure, which you guys obviously have a huge installed data. Yeah, I think there's a lot of benefits from the cloud which everybody can get advantages from, right? I mean, agility is one, the flexibility of usage, pricing model, subscription, pay as you go. So a lot of these capabilities are very valuable, as well as you have the ease of use and saving your time, resources, all that kind of stuff. So I think those benefits are needs to be applied to the existing investment as well as the things you're going forward with. And our view is that you should be able to take the same platform and make it available on-premise on the private cloud environment with the same kind of philosophy, as well as be able to take advantage of full-blown cloud offering which we have in a public cloud. So we want to make those things seamless as much as possible. In some cases it's not possible, in other cases it's possible and that's what we're trying to really make sure customers understand that. The messaging obviously all over Howard Street here is integrated cloud. Amazon has shown that integrated stacks do work for workload-specific development. So for the guys out there doing all that app development, that's a dream, right? Version control, all the coolness around scaling. So how do you guys look at the integrated platforms of service? What are you guys doing to make that more integrated? Because the guys who are developing the workloads, they're like, hey, I don't really want to get into the plumbing. I don't want to get into the anti-encryption business. Actually I don't even want to get into the past business. So I think it's very similar to what we did with our middleware before. If you look at the Oracle middleware platform which we built on-prem, it was a very well engineered integrated stack. Customers never had to worry about different install, different config, different security model, different development tools, not a fragmented thing. So once you start using one piece, you want to add more and more, you're very familiar with the same tooling, right? Very similar approach to the cloud. The user interface is the same across the board. The user experience is the same. The management console exactly the same across the different services we offer. The underlying stack, the infrastructure, everything is completely build ground up for that particular usage. So the customer's perspective, they can start with one or two things, but they can move very easily and add more and more capabilities without even having to understand that I need to get this or get that, right? So basically use this. This is the new way, right? Yes. So compare and just vis-a-vis the old way. What would a customer have to do to say, hey, you know, Oracle, I love you for the database. We got you in there, but you know what? I'm going to go build my own. I'm going to go over this cloud over here. I'm going to build that old stack. How do you compare old way versus the new way? What do you say to that customer? Okay, you know, see in six months when you come back to Oracle, or do you say, hey, here's some of the hurdles that they might have to see? Today, I mean, if you were trying to build, say an app, and then also integrate with the existing app, which might be running somewhere else, you will have to go to three, four different vendors to really make that architecture work, right? You can go to Amazon if you prefer for infrastructure, for compute and storage. If you want an integration service, you might go to some integration service provider, like Informatica, whatever it is, right? Then you want some development tools. You go to third party, somebody else, and then you build your own, like maybe download an Eclipse and start using it on cram for some other tools. It's a very, very fragmented, difficult experience, right? And developers, no productivity, pain, and then the stack keeps on changing every time, right? Costly and hard to keep up. And what we have done is we have given them, as a developer or an architect or anybody, a very, very clear view of how to use this without having to go to four different vendors and integrate all these pieces together. We have the infrastructure, we have the platform, we have the development tools, we have the runtime, and we have the apps. And we have third party apps hosted on our public cloud, which are running on the same infrastructure, so you can integrate them as well. So that's, I think, the ecosystem becomes much, much easier to deal with versus what you can do today in the industry. Let's shift gears to talk about kind of your personal perspective on the landscape of the marketplace, because, I mean, it's a moving train, the waters, or if you want to use a metaphor for sailings, we always love to do. The waves are crashing. There's a lot of dynamic, it's a dynamic environment. All theaters of innovation are exploding with greatness, infrastructure. You've got the software middleware and also the app, mobile, and other things. It's all happening. So customers want stability. So in the era of massive change, shape some color, one, describe in your opinion the kind of change we're going through and how that relates to the customers so that they can, they don't get swept away and become driftwood. Yeah. I think it's a good thing to think about, right? For customers, a lot of view is that, okay, it's open source or I get something free, must be easy because somebody else is managing it. It's not that straightforward once you start seeing the choices you have. And which tag to pick and which one to kind of make sure it will survive the next five years of innovation, right? So my view is that it's better to pick something which you know that it will keep up with the changes. And we are not biased toward one or the other, right? I mean, instead of like, we use a lot of open source technology in our cloud. We use a lot of our IP on that as well. And we let customers have the latest innovation irrespective of coming from us or coming from the industry to be compatible, interoperable, those kind of things. So we have been doing that for ages. I mean, Larry says that every time, right? We are a part of your journey with a database. We've evolved databases for years and keeps on adding a lot of newer technologies and features, we know SQL, big data, Hadoop, all that kind of stuff. Similarly, in memory, a lot of stuff we've been doing. Everything we do in the middle is the same thing. We keep on adding a lot of technologies to make sure customers are protected, the investment is protected, so they don't have to land up worrying about, do I have to rewrite all this stuff? Do I have to find something else again? Do I have to do this with a newer stack again? So that's the, I think, the comfort level they can get with us. If you were a consultant and you have brought it to see the CIO, the AIG's on stage, I love that one. They're going to have insurance for drones. I mean, we are living in a whole new era. What's your, and they say, I mean, what do I do? What would you say to that person? I think that the thing is the first, if you're new to the cloud and you want to kind of see what the value is, pick a project, pick a project, and pick an area which you want to kind of showcase the differences with it, right? We have seen a lot of customers say they start with DevTest, so the development test is not that critical for a customer, but it's important enough to show the differentiation with, right? So we see a lot of customers starting with that, and that's what I would tell our customer, like let's pick a project which you can start doing a development test in the cloud instead of doing it on-prem. So you don't have to worry about hardware, licensing, you don't have to worry about somebody installing, configuring, and waiting for six days before you can start building your code, right? And then make sure once you build that code in the cloud that you can run the production system there, or if you want to bring it on-prem, make sure the stack is compatible, right? And that, I think, is the biggest test, I think, because most of the vendors today don't give you that choice. I can do my DevTest on the cloud and I'm stuck there. If I ever want to run my production system, I have to buy another stack on-prem, another platform completed. There's no equivalent, easily developed. Amazon doesn't provide you that, Forge.com doesn't provide you that, Azure doesn't provide you that. We are the only one who gives you that. So I think that's the part they should think about before worrying about what to do. Let's talk about that a little deeper. I think you got a customer panel. We talked a little bit off air. So who are some of the customers? What are some of the success stories you can share where they're actually putting that into play? Good question. I think we have quite a lot of customers, of course, at Open World who are talking about some of the things they've been doing innovatively. So we have an innovation award event coming up tomorrow afternoon. We'll have close to 50 customers who are getting awards for adopting a cloud platform for a lot of the innovations they've done on the platform, right? We have a panel in pretty much every strategy presentation at Open World with two or three customers talking about a lot of the new things doing. So for example, Calix is one of the largest provider of broadband technology in the back end for companies like Comcast, AT&T, and all that stuff. Anytime you use broadband, you use Calix as the provider underneath the covers. And they do integration between Salesforce.com. They have applications like Salesforce.com, e-business suite, Adobe marketing products, and they need to connect them all together. And they used to do that a lot of manually. Luckily, they used companies like Dell Boomi's products. But over time, we've been talking to them and they started using our product called Integration Cloud Service. And the person who's here was telling me that they built 24 integrations in 14 days. He said it's six X faster than what he used to do before with even other cloud providers. 24 integrations? It's 14 days. I mean, it was just impressive. That's insane. He did a demo to the analyst here himself in his environment. Build an integration between Salesforce and Adobe products in five minutes. And be able to move data back and forth, be able to do a whole workflow and orchestration on it. So that just gives you an idea of the opportunity which they get out of using some of the solutions today. So we have a lot of these kind of examples. Avaya is another customer who's doing integration with a lot of on-prem hybrid kind of thing. They have on-prem applications. They have cloud-based sales applications. They want to connect them together. That kind of provisioning is interesting. That brings up the point that we've been hearing now for multiple weeks, certainly the Dell EMC news just a few weeks ago certainly opens up the kimono on this. But people are talking about the end of the client server era. And we are in now the cloud, integrated cloud, modern era. So what does it take to be successful? I'll say you highlight one big thing which is provisioning integration, like almost push button. It's almost a dream. You go back five, 10 years ago, someone said weeks for one, you'd be crazy. Never mind 24. Share your vision of the end of the client server as we step into the next wave of innovation. So this one, one is I think number one thing is ease of use. I mean, I think be able to make it as simple and intuitive as possible. People are used to very easy way of doing things in consumer world. Why not in the enterprise, right? Everybody's asking all the customers we speak to, they go, I do this so easily when I'm doing things at home for this kind of application. The workflow should be simple. Approval should be simple. My whole ability to do all other things, drag and drop should be simple. So the user experience, the elevated user experience is number one. Second thing, take away the complexity of doing all this back and stuff, right? So the vendor who's providing the cloud services should be doing your upgrade, your patches, your install, your config. So you, as a user and consumer of the services, you don't have to deal with it. Today, if you look at infrastructure as a service, you still have to do all that manual work. So your human element doesn't go away. All you've done is outsource your hardware. If you don't move higher on the platform, you are not taking that thing away. So today, what we do with the database cloud service, for example, right, is that we're automating the whole process of running the database. So our customers love our database, and to be fair, they don't enjoy the experience of managing it. I mean, this is reality, right? It's a lot of work to be done. But if you take that complexity of your managing and installing and configuring it. Accelerates things. This is great. I mean, they're getting the value of a great product without having to deal with a lot of the things which they don't need to. And the cost saving is immense because you have to. Acceleration is the key thing. They move faster. They get to what they want to do. Yes. They're saving the cost with it. Right? You get multiple benefits that way. And Mitch, thanks for sharing your data. Great to have your insights on theCUBE. Always great to see you. Final word, I'll let you share with the audience. What is your key message of Oracle Open World to the audience watching around cloud and the overall feeling this year? No, I think from my perspective, we have a cloud is the broadest platform we have built. Today, if you look at the industry, we have the broadest and the deepest features in the cloud, right? All the three layers available. And the big thing is that a lot of customers are live with it. They're running production systems on it. So please go and try it. Go to cloud.oracle.com, sign up for a trial account for the service you care about. Try one, try two things and let us know how they feel. And you see an application boom coming on top of all these awesome platforms. Yes. All right. You're watching SiliconANGLE.tv's theCUBE. We had great guests coming up. We got Dave Donatelli coming on Wednesday. Tomorrow we got the EVPs and the application group, a lot of customers to just talk to you and find out what's going on with them. That's a great, great insight here at Oracle Open World, the integrated cloud for applications and platform services. We have theCUBE live on Howard Street. We'll be right back after this short break.