 Live from the Oracle Conference Center in the heart of Silicon Valley. Extracting the signal from the noise. It's theCUBE covering the Oracle Cloud Launch. Brought to you by Oracle. Now your host, John Furrier and Dave Vellante. Okay, welcome back everyone. We are here live for the post game or post event coverage. This is theCUBE. We go out to the events and extract the students with noise. I'm John Furrier, the founder of SiliconANGLE. Join the founder of wikibon.com, Dave Vellante. Our next guest, Andrew G, is singing EVP of Fusion Middleware Development. They have a great demo up there. Tom's Curry and the announcements was pretty significant. Biggest cloud announcement, fastest growing, dollar growth in the industry and SaaS history. I mean, too much stuff to digest. We'll just jump in. Cloud platform, how does it compare versus the conference? Let's break it down. Get three tiers. Infrastructure service put pass and SaaS. Right, I think it's important to point out, first of all, the breadth of what we offer today. And I think it was a breathtaking announcement. I think it was great. Let's take a step back, specifically on the paths. The way we break down paths, in fact, is four different personas. One is to do with development. Second is to do with integration. Third is to do with line of business users for collaboration. And the fourth one will be business analysis, data analysis. And each one of them have specific differentiators. So for development, that would be application servers on the cloud, Node.js in the cloud, JRuby, for example. By far, the most comprehensive and standards-based approach for development of the cloud. If you take a competition, either it, these guys are, most of our competition, either it's infrastructure-based, where the platform there is very thin, okay? Or there would be proprietary platforms that are very tied to the SaaS application itself. What we offer is the best of both worlds, right? It is a polyglot environment, multiple programming environments. And the ability to be standards-based, with Java-based development as well. That's fundamentally the differentiator of the development line, okay? So one of the things Larry mentioned was the different use cases. Obviously, we were talking prior to the event, you know, things like BlueMix Cloud Foundry, and the Able's like BlueMix, kind of like competitors. And there's some, like low-end use cases, I don't know, you call it low-hanging fruit, but on the higher end, much more proven platforms or engineering platforms, like you guys have, it's complicated business cases. So that middleware and pass is interesting, because the pass is emerging technology. It's not really that old, and it's been around for a while. So what is it about this kind of new hard middleware that makes you guys confident that you guys can move back and forth and say it's complete? I mean, that's going to be the question. It's certainly complete on paper, but is it complete, and what is that new dynamic where you want proven professional grade middleware? Right, and the fact that it's complete, as I was describing, it's not just the developer. Most people associate pass with either data management with application server and the cloud. That's basically table stakes. What you see is over and above, that's where the completeness part comes in, right? Let's talk about the second persona I talked about, which is that fluid integration. This is net new innovation in the cloud, right? Integrating cloud to cloud, cloud to on-prem, on-prem to cloud applications, and you saw me doing a demo of this as well. It's really as simple as making it viral, okay? Making the integration so easy to use and easy to develop and deploy, entirely done in the cloud, without you downloading a single piece of software. That's where some of this innovation comes, and you would see a lot more behind this, by the way, right? The completeness of the cloud is to do with SOA, with data integration, with data movement in the cloud, and big data discovery, big data preparation. That's where the completeness factor of the integration line comes in, right? So the line of business dynamic, because the data we've been hearing shadow IT and it's been a cloud dynamic where lines of business have been going around IT because IT's been slow and unreliable. Now you have data silos all over the place. So now you guys are extending that out. You can move to and from the edge of the network or edge of the application. So the question I have for you is, where do you see the customers focusing their time on innovation and development from an investment standpoint? Also you guys are trying to extract away some of the stuff under the hood, if you will. And then on the app side, where's the hardened line, if you will, in-pass, if you could peg that. That's a great question. I think what we are seeing is customers are buying line of business applications. But in a lot of cases, they need to extend these line of business applications, the cloud applications, to satisfy the particular need. You heard from a customer of ours, Avaya, for example. In their specific case, they wanted a partner relationship management application. In fact, they bought one of our competitions, CRM application, to do that. But the need was to extend that in the specific use cases. And they found it was too hard to do and very proprietary to do with our competition. So the use case there is, you use our application server in the cloud to develop custom functionality to extend our software-to-service applications. And you integrate it with other line of business applications together as well. Together, that forms the value driver. And this is what our customers have found in a standards-based way, with commodity skill sets rather than proprietary skill sets, very expensive for them. That's where the value lies. Energy, can you talk about the development effort that went into this? Because a lot of people leading up to this announcement said, all Oracle's going to do is they're going to put a face on all this hosting stuff and call it the cloud. Talk about the development effort that went into this and what's the tech behind it? Oh, thank you for asking that. I think that's a very good point. This is by any stretch of the imagination, there's a lot of innovation behind this. ICS, for example, we've been very careful of how to innovate in this space. In certain cases, rewriting the user interface and the user experience on top of a proven engine makes a lot more sense. That's what we did with ICS. The core engine is the Oracle Integration Service Bus. And on top of that, we've completely reinvented the experience for that. And the reinvention of the experience is where the innovation lies. In other cases, it's entirely fresh new development. MCS, which I demoed as well, Mobile Cloud Service, is entirely done from scratch. We never had any of that before. API management, entire mobile development, the user interface scaffolding as well, complete net new development. For PCS, process cloud service, we've also taken the gut engine and kept it the same because there's no reason to mess with it. We completely re-engineered the experience around it. The overall effort for this has been years of effort inside Oracle to get these things out. We've been very, very concerted and focused about it, not just cloud-washing. This is not a cloud-washing. So you're done? You're complete? You're not done? Find not a stretch of the imagination at all. So show us a little leg on the road. Sure. I think a little bit of it would be every one of these develop, integrate, collaborate and analysis lines. For development, we're working a lot more on things like microservices. Something that we're working on in currently. In collaboration, you would see a lot more customer engagement, collaboration services, customer experience services that we're working on. In terms of integration, working on Golden Gate, for example, data movement. These things that are- Hard problem, yeah. We're working on data pipelines in the cloud, merging what is called lambda architectures and kappa architectures for real-time streaming and batch processing all on the same platform. These are things that we've been thinking about. In terms of business intelligence, there's a lot to do, a lot more to do in data visualization, data analysis. Make it far more easier for line of business users to consume. So. I just laid out- Not done by any stretch of the imagination. M&A roadmap right there. It's not complete. That's really a good point because microservices are hot. You've got this developer environment in the cloud, DevOps is matching into analytics. So that's a perfect fit that's going to power the analytics market. So I got to ask you, outside of the Oracle environment, so I love the messaging that's here, it's very clean, moving Oracle from on-prem to cloud, really awesome. Now for outside of Oracle environment, as developers are working on stuff like microservices containers, what is you guys, your view of the middleware vision in that regard? Obviously standards will be key there. I mean, that's clear. But what specifically do you guys see intersecting with your Oracle cloud for outside of Oracle's current scope? Sure. No, that's a very astute question. What we see is that the reason people, our developers use microservices, for example, are actually they want lighter weight containers. They want lighter weight functionality. They want very easy to use, easy to deploy. There's one side of it, we make our existing middleware and cloud technologies very easy to deploy in microservices, in containers. Docker, for example, is one example of container technology. There's others as well. We believe that the net trend there is to break down functionality into manageable chunks. We believe that the management of these microservices where the value is going to lie, where the actual microservices can provide a lot of value as well. There's going to be a lot of innovation in the entire ecosystem for this. In terms of the integration, we believe mobile and integration together, mobile cloud service and integration cloud service provide the glue for not only Oracle, but non-Oracle applications as well. Most of our customers might not. Some of our customers might not go with Oracle SaaS applications. They might have a competition as well. We want to be the paths that doesn't simply provide Oracle technology, but our competition's technology as well. You're the engine, you're the core piece of it. All right, so I got to ask you the philosophical questions. Larry is up on the stage and I love this part about, there's a new way. Thanks for telling us and we see it as well. But the competition slide highlights his thinking, right? IBM, the old competition was IBM. Now you got a bunch of new companies up there, quite frankly, that are looking good next to Oracle. It's nice to see these young companies, but they don't compete, but it shows the new way. So I got to ask you the software question. From a software development lifecycle standpoint, what's the biggest shift that you're seeing? Because now you're talking about the old days of waterfalling and now you have all kinds of agile. So what is the preferred method of software development in this new world? Cloud has got to be the table stakes that you mentioned passes table stakes. What is the philosophy of this new software development lifecycle? Oh, it's completely agile. In fact, in the cloud, we're releasing software to the cloud every six weeks. In fact, the entire development platform is development lifecycle, the development tooling is completely different. We've changed our entire ecosystem of how we release software to the cloud. Even the fact is this, it's actually made our development on-prem far more efficient as well. Think about that. I think what we've done is, we've provided the vehicle for deliver some of this engines to the cloud in the same way that we've done on-prem. It's your agile internally. Absolutely. 100%. Yes. Awesome. All right. Why aren't people moving to the cloud if they're not? Sometimes they are regulatory environments. Sometimes there may be some concerns with data privacy, for example. You know, sometimes they're data residency requirements. I might be in a country in which I don't have a data center with Oracle. Now, what we've done though, this is a very important point. We have engineered systems in which the cloud services, what we have plans for is we're taking these cloud services and making them available on the engineered systems. So the same way as the revision occurs for integration cloud service on or Java cloud service on the cloud, that revision will be available on the engineered system on-prem as well. This is what Larry was talking about. That makes the pitch to the customer that is not able to go with the public cloud, making it able to deploy the same innovation in the public cloud on-prem with the same interface as well. So internally, we got to wrap up. I want to get one more point if I can from you. It's that years ago, engineered system when it first came out was purpose-filled, kind of a dirty work in the industry. Turns out that was a good bet when you look at what happened with cloud, because at that point Larry was kind of poo-pooing the cloud. Oh, you know, was dismissing it in a way, calling false clouds out there. But it wasn't all in yet on clouding. This is like six years ago. That's paid off pretty good. What's the internal feeling around how engineered systems kind of, the world spun in that direction with cloud with engineered systems? Can you share any color on dynamic and internally and how that's rendered itself in the product in the middleware? We certainly believe that engineered systems are the vehicle for delivering this innovation on-prem. It's very simple. I think the, no, of course, look, there's one way to take a look at engineered systems. There's a very, it's a way to deliver our functionality in a far more performant way than it was done before. Great, okay? But there's an additional value and that is to do with delivering this cloud innovation on-prem as well, which is the new thing. Yeah, and that's good timing, that's good. Well, thank you very much for coming on theCUBE. We're breaking it down, we're going to get the boot here. We always go to the, to lay, pull the plug. This is theCUBE, more post-event coverage here, the Oracle Cloud Platform launch. We'll be right back.