 from Washington D.C., it's theCUBE, covering Oracle Cloud World, brought to you by Oracle. We are here live in Washington D.C. for Oracle Cloud World. The hashtag is Cloud World. This is Silicon Angles theCUBE, our flagship program. We go out to the events and extract the signal from noise. I'm John Furrier, my co-host Dave Vellante, we're pleased to have Karen Sigmund, Vice President of the Platform Business Group at Oracle. Welcome back to theCUBE. Thank you. Great to see you again. Obviously at Oracle Open World, we talk a lot about the stuff that's going on now. It's all coming, the fruit is bearing off the tree. Give us the update. What's the update from your perspective? I saw the cloud machine, the infrastructure's going very well. Oh yeah. Donatelle's got the reins, is driving a lot of good business. What's the update? I think the big difference is that if you look at our portfolio, it's changing. And we're expanding it, and we're getting, we're being much more customer focused. So if you look at the overall portfolio, the Oracle Cloud Machine is a natural extension of what we do today. And the business portfolio, how is it evolved specifically? And what's the big trending item in the portfolio? Well, I think it's all about being cloud ready, right? So if you look at our portfolio, you go back, we build everything from the best of breed components, right? So starting with the tape, to the storage, to the networking layer, to the compute layer, to the operating system, to the database, to the applications. Every one of those, we build cloud ready. And so what's happened now is we've just evolved that, and we've taken that same capability, so if a customer's ready for it today, cloud today, or cloud tomorrow, they get that capability when they go with our infrastructure portfolio. So big announcement today, the Oracle Cloud Machine. We heard it in Oracle Overworld, it's the private cloud machine, but you changed it to the Oracle Cloud Machine. Talk about the thinking behind that. It's really a lot of momentum at this event behind the Oracle Cloud Machine. What's changed? What's new? What's different? Well, I think, you know, name's a name, right? I mean, names are, but really, this is a whole kind of new category. Customer at cloud, if you think about that, when you look at everything we're talking about today, the Wall Street Journal said it best this morning, I think, when they said that we basically turned cloud computing inside out. And why did we do that? The name is part of that, because when you think about it, pride that a lot of people think of private cloud as being an on-premise solution, and they think of public cloud as being something that sits in the public cloud data center. The Oracle Cloud Machine is what we're calling it now, is the capability to take that and book the public cloud services and put it with the machine behind the customer's firewall. Okay, let's get into it, because it is on-prem. Yes. But the services that I'm layering on top aren't on-prem, they're in the public cloud. So what is this thing? This is a new category, or how do you guys think about it? Well, what we've done is we've taken the software stack and the operational model, and instead of delivering those services from the public cloud, we're actually delivering it on your premises. So it's not that you're not connecting to our public cloud, we're actually putting it behind your firewall and actually creating your own public cloud that's managed by Oracle. But you guys are managing it, right? Correct. So from my standpoint as a customer, it actually is public cloud, except I got some lights blinking here in the corner. That we look at, you don't look at. Are you able to replicate in Oracle's view? Are you able to replicate substantially the public cloud experience with this new product? Yes, I think that absolutely. That is the number one thing that we can do, is that you're taking exactly the same services, the similar price structure, everything's the same. The only thing that's different is that we're allowing you to put it behind your firewall, we manage it for you, but the architecture is all designed by Oracle, managed by Oracle, implemented by Oracle. You don't make the architectural decisions we do, just like in a public cloud. So if a customer says, all right, Karen, how is that different from what other companies, vendors are doing? How do you respond? Well, I mean, it really is a matter of what your capabilities are. Because we have this broad portfolio that starts with cloud-ready, cloud-ready best of read components, right? So everything we build in the stack, then we can then combine it with appliances and purpose-built fast engineered systems. That's kind of a legacy, I mean, a lot of our competitors that are legacy vendors would say that they can compete in that area. So if a customer is trying to make a decision, they'll say, look, I have to talk to my cloud vendors or my cloud native apps, I have to talk to my legacy vendors for my on-premise architecture. What the cloud machine does is that what Oracle can do now is give you the capability to combine those two and be consultative and put the customer in the driver's seat. Customers don't have to make a choice. Okay, but there's a nuance here. So it's not, people are going to say, oh, this is just managed services, but it's not just managed services. No, no, managed services is totally different. Okay, so managed services is where you, the customer, decide on a private cloud architecture. You decide what you want in that infrastructure. You decide who you want to manage it. You decide where you want it to be run. And then it becomes that architecture now has to be managed by you. All the changes in it, all the service catalogs, anything you want to change in it, you decide when and how and manage that architecture. You might hire someone to do it for you, but ultimately it's an architecture that you design and deploy and manage. With an Oracle Cloud Machine architecture, we do the architecture design, we do the deployment model. You get all the agility of public cloud services changing and being modified in your environment. So you get that benefit of public cloud change that happens in a public cloud environment. And the business impact of that relative to managed services, how would you describe that? That's eliminating labor costs? Yeah, I mean, the couple things. The first thing is is that the client doesn't have to manage the architecture. They don't have to manage what goes into it. They can take their labor costs and move it to working on application development, which is where their real business benefit is. But also they get the flexibility of the future. They get that capability that you don't get with the private cloud architecture that you have to build and manage yourself. Karen, talk about the Wall Street Journal article you mentioned, Inside Out was the headline. The headline says, Oracle's new service turns cloud computing inside out. What does that mean? I mean, why it's in quotes inside out obviously, but what does that mean for the customer? I mean, what are they referring to with the word inside out? Well, I mean, because people have historically thought of cloud computing as one of two things. You're either public cloud and the public cloud vendor provides everything and you have to connect to them or it's private cloud and you build your own architecture and you deliver your cloud services for your client yourself or with a managed provider. This is Inside Out because we're now saying you can take that public cloud provider and bring them right behind your firewall. They're now in-house. We can bring public cloud computing in-house. As a service, I want to buy a lot of gear, no rack and stack and Oracle does the heavy lifting. That's correct. You don't own the gear, you pay just like you do a cloud service. All right, so the next question, obvious question is because you are out in front of customers. We talk about this at Oracle Open World. You're doing the product teams, you're also dealing with the channel, dealing with customers. So I got to ask you, since Oracle Open World took today and even through today, what have you found to be the most confusing or misconception by customers around Oracle Cloud? I think that it's only, that it's just for Oracle. If you look at the Oracle Cloud machine, it's basically offers an infrastructure as a service offering, as a baseline offer that you can deploy to use, to run all of your workloads. It's not limited. So not just Oracle customers. That's correct. So cloud native. That's correct. People who want cloud native, aka DevOps. I think that's the big difference, yes. Karen, you have a lot of stuff in the portfolio and to a lot of customers, it's a complicated situation. It's like you've got a very specialized focus on solving problems with different types of products. Can you talk about that a little bit? Yeah, I mean, I think that when you look at it, as I mentioned, we have the best of breed portfolio where we build the stack and that's all cloud ready. Because we also have a public cloud, then what we do is we can now combine those things into different things that make sense for customers. So we can take, we can make appliances, for instance, that are the easy button. So for a customer who wants to deploy a private cloud and they want to own the architecture, we can give them an Oracle database appliance or a private cloud appliance, which allows them to combine that with other architectures, combine it together and build their own private cloud infrastructure and deliver those services. Secondly, then we have engineered systems, which gives you the ability to do things that are fast. So if you want to have high performance, middleware applications, or you want to run high performance database at a low cost, we can do that with our Exis series or Super Cluster. And then we have the capability now with Oracle Cloud Machine to really, to bring that all around. And now you can take that same capability and bring the public cloud services behind the firewall. And Oracle Cloud Machine is new. It's different. It's not been seen before. So there's new hybrid, if you will. It's very cloud-like. It's almost identical to cloud. The pricing model is, if I understand it, a subscription model for the infrastructure as a service. You've got to make a commitment for, I think, three years earlier this morning. And then the PAS layer is basically... As you use it. By the drink. Did I get that right? That's correct. Okay. Yeah, and I think the other thing we didn't mention when we talked about this is this idea that you said hybrid. So Oracle Cloud Machine is kind of the ultimate next generation hybrid. But it's also, with all these other layers that we have, we also have the same ability for a client to have that hybrid capability and have exactly the same architecture on-prem as in the cloud. So we offer those as cloud, public cloud services in Oracle's cloud. And you can also deploy the same architecture on-prem. It's another differentiation for... Karen, I got to ask the hard question. So, put you on the spot. We have a new coverage on silkenangle.com around data loss. And we've been documenting and publishing everything about breaches and security. And one of the things that's kind of embedded since Oracle Open World is, security's always on. You got to turn it off and that's with the Larry Ellison message. But there's a lot of breaches going on. We're obviously in DC where security's paramount. Think of the government. Security, data loss, breaches. And these are a lot of regulatory things that admit, Xavier was talking about why this is so popular for customers. They can bring the cloud in inside out because there's some issues. You got to make sure the boxes are checked. So you got zero data loss, opportunity, ZDLRA. We always talk about that in the last show. So that, you got recovery, you got data management, security, encryption on-chip. That's all in the portfolio. That's hard to implement. What's the update on that? Is that working well? Can you add some color to that? Cause that's on everyone's mind. Security rolling it out in the enterprise. No, I think we're seeing, I mean, I think we've seen a tremendous uptick in our ability for customers to want to take advantage of things like our ZDLRA product. Because that gives you that continuous availability of your database workloads from your Exadata platform or from any platform for that matter. So ZDLRA is a great example of where we've taken continuous availability beyond security to your point. Absolutely, this is the ultimate in security. The Oracle Cloud Machine gives, I mean, while we have a very secure platform in everything we deploy, this gives you the ability to feel that absolute confidence that you can take public cloud services and put it behind your firewall. So no breaches on Oracle? No. No breaches, no security breaches you've seen. Not that I'm aware of, no. No, don't, I mean, don't bug me on that, but no. Well, you're live, you just were quoted. Yeah, no, no, no, honestly, there's absolutely no- But this is what customers are really scared about. Not just network security or encryption, and to end, you got insider threats and surface areas are huge. Well, but there's a key point is that in the early days of cloud people were so, yeah, you always use security as the number one concern, but I feel, I've always felt like Oracle security, throw in Amazon, IBM, whatever. Your security is going to be better than my security for most companies. Now, maybe there's some large financial institutions, maybe the government, but for the vast majority of customers, the security behind Oracle is going to be superior in terms of the investments that you make, the skill sets that you have, the practices. I mean, the difference is we have security at every layer. So when you think about it, we have it in our public cloud, we have it in the application, we have it in the database, we have it in the chip, we have it in the heart, we have it in every element, every layer of our stack. So when you're building an information, you know, Fortress, for example, you've got to think about how you do that. You've got to consolidate and... Okay, final question. What's the most exciting things that you've seen? Obviously, Dave Donnelly's in charge, a lot of exciting things happening since Oracle Open World, you know, a lot of action going on on the portfolio. What's surprised you? What's exciting things popped out? I mean, you guys have been working really hard. What's out there? What popped out that you're really excited about or has surprised you? Well, I think the thing that is most rewarding, I'll say, and I don't want to call it surprised, but I think what I'm most excited about is this Oracle Cloud Machine is the ultimate. It's kind of like having the apex and it's changing the industry in terms of how they think about cloud computing. I mean, to be at Oracle and have all these elements and to combine it together, it's absolutely the apex. We used to call it the God Box back in the box days, now it's the God Service, right? The cloud up in the cloud up in heaven. Okay, Karen, thanks so much for coming on theCUBE. Really appreciate great insight. Karen Sigmund, vice president, cloud platform, business platform. This is theCUBE, we'll be right back with more live coverage here in Washington DC at Oracle Cloud World after this short break.