 Live from San Francisco, it's theCUBE. Covering Oracle Open World 2016. Brought to you by Oracle. Now, here's your host, John Furrier and Peter Burris. Hey, welcome back everyone. Day two of wall-to-wall coverage live broadcast on the internet. This is SiliconANGLE Media's theCUBE. It's our flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier, the co-CEO of SiliconANGLE Media. I'm joined with Peter Burris, head of research at SiliconANGLE Media as well as the general manager of Wikibon Research. Peter, we did 12 interviews yesterday. I got a lineup today and we've got a great range of content, great editorial commentary, great guests from Oracle. Exactly asking the tough questions. We also have some great sponsored spots from slots for our supporters, but really it's about putting out that content. I think yesterday we're starting to see, and we're gonna see some guests today around philanthropy. Oracle's doing a lot of work in philanthropy and we're gonna get some great women in tech content. Something that Oracle has a great presence in, but the big story day two is Thomas Kurian was on stage. He was not on stage for Sunday nights. Larry Ellison keynote or with, I'm sorry, with Intel. And so he had a personal issue, had to mail in the video with speculation on whether he would be here. But Kurian is the guy. He's the product guy. He's running the engineering, running the product development. So we expected to hear huge announcements today. Kind of not much. I mean, as expected, infrastructure as a service. We heard about containers which was pre-announced by Larry, basically announces everything. But not a lot of big game changing news, but a lot of the blocking and tackling, a lot of the ground game for Oracle's march to the cloud. Really emphasizing on the speed of standing up a data center with the browser and APIs. Anyone can stand up to all the capabilities of Oracle with standing up a virtual data center with all the isolation at the network level, giving that customer choice, but bridge to the future. So again, this was expected, but this is a key part of Oracle's strategy. They need for the lockdown the infrastructure to make pass work well and SAS, they got to make it work well. So not a lot of surprises as expected infrastructure as a service. Well, let's be honest about what Oracle's biggest threat is with the biggest threat to Oracle. They've got this enormous presence in the applications business. As we talked about yesterday, the apps business is sticky. When companies embed their applications or embed an application of their business, they reconfigure the entire organization around. It's hard to rip that out. They are clearly number one and have been for a long time in the database marketplace. And it's not hard to pop a database out or it's not hard, it is hard to pop a database out. It's very sticky. It's very, very sticky. So hardware, it's getting a little bit easier, but the possibility that the infrastructure starts to become more public in nature starts to move up into the database space and Oracle clearly wants to ensure that it doesn't encounter longer term problems with the bottom eroded. So it needs to sustain that presence in infrastructure, continue to give people an option should they want to tie infrastructure directly or continue to tie infrastructure directly to the database and the application. And we press Juan Luisa yesterday, Senior Vice President on the development side, certainly a database guru who laid out his vision of how he sees the key elements of data center. And he said it simply, our number one priority at Oracle is to move workloads from on-prem to the cloud, seamlessly back and forth to our cloud. So we'll say cloud for now, but that's ultimately what the customers want. They want to be able to move to the cloud, ultimately have all the benefits of the operating model and the agility, but moving it back and forth again to Oracle, it's the Oracle Cloud. So on Oracle, on Oracle, job one is to make it really fricking awesome, fast, low cost on the infrastructure side, put pressure on the Amazon choice, but yet keep that there. So that's clear. I want to ask you- Well, let me pick up on that. Maybe this is what you're going to ask me, but many years ago, I've had a lot of experiences working with CIOs over the years, and many years ago I was in a staff meeting of a CIO who she was looking out across her team. And she had a way of starting the conversation with every single one of her direct reports, head of development, head of security, head of infrastructure. And she routinely would start the question just to reinforce what she wanted folks to focus on. And every staff meeting she had, she started the conversation with the head of infrastructure with. So infrastructure's doing no harm this week. And in many respects, that's becoming the message of Oracle. Infrastructure's going to do no harm. We're going to make sure that on premise, you're covered, cloud, you're covered, hybrid, you're covered. We want to make sure that infrastructure is not a huge part of the conversation so you can stay focused on the upper levels. You know, that's a great point. You know, some people call it hardening the infrastructure. Paul Moritz in 2010 at VMworld talked about this hard and top, I mean, he talked about Intel processors and saying, hey, you know, Intel has a hard and top, but no one looks under the chip. It's totally hardened. It's proprietary code that makes stuff go fast. So I think Oracle has that same kind of mojo going on with the engineered systems and you're seeing all that stuff kind of trying to harden the top so that the infrastructure doesn't do any damage. And that brings up the point though about what I'm seeing. And Oracle, and we'll get your commentary on this in your take. I mean, look at the industry over the years. Competitive strategy is protect and fortify your core crown jewel. It's been the database. The database powers the application. So the application is certainly a lot of revenue, but the database has been the sacred cow for Oracle. And you've been seeing it, and although you haven't been overt about it, protecting the database, keeping it in the swim lane, keeping it here, letting things develop on the side, but ultimately it was all about the database. This show is interesting. You start to see that swim lane expand. You start to see Oracle recognize the fact that, hey, it's okay to be the system of record. And actually it's actually quite sticky to be the systems of record in a high performance database environment, but yet yielding territory or turf to other databases. And that's interesting because that takes the monolithic siloed mentality off the table. Question is, do you see it that way? And if so, does Oracle have to adjust its competitive strategy? So here's, you know, John, I think, first off, most importantly, you're absolutely right, Oracle, the product that is named Oracle is the Oracle RDBMS. That when people 20 years ago talked about Oracle, that's what they were talking about. Oracle has been a database company. It's its roots. It's some of the great conversations we had yesterday. We're with the database people. I don't think that's going to change. I think that they're trying to extend it out. One of the ways that they're looking at doing that is they're recognizing that as we look for the next couple of years, this increasingly it's going to be, and we talked about this a lot yesterday, how does not only the data in the Oracle Database Manager become increasingly relevant to other applications and other use cases in the business, but also how do the skills associated with that database manager become more relevant and more useful to the business as new types of data, new types of applications, and new types of business models start to become even more relevant to the industry. So I think what Oracle's- Like data value. Like data value, the value of data, how development, when we talked yesterday about maybe it was after one of the conversations about we're now entering into this world of big data and we still don't know what I call the body plans for business models are. We're in this notion where we don't know if it's going to look like a fish or it's going to look like a mollusk or it's going to look like something else. We know that it's not going to look like what the RDBMS world- It's kind of like what your spirit animal in the cloud. I mean, we don't know yet. We don't know yet. So Oracle has to be flexible as their customers have to be flexible and not presume that it's going to look exactly like it did 10 years ago. This game has not even started. There you go. And I think that's the key thing, John. I think that they're finally acknowledging that the new world is not going to look exactly like the old world. They have to be flexible. They have to facilitate their customers to be flexible so that they can rearrange things in response to new developments and innovation in the industry. You know, I was talking to some of the people at Oracle yesterday at the Accenture event, some Accenture folks. And what's coming down to is the industry's kind of spinning towards what we call the tech athlete, the smart people. So what's interesting is Oracle has always kind of kept their smartest brains behind the firewall. It's always been kind of competitive advantage to always serve customers and all that lock in and competitive advantage, drive revenue. They're highly profitable. But now you're starting to see the battle between like Amazon web services and Oracle. A couple of observations from my standpoint. One, they're putting their best technical people out front. Okay, clearly talent matters, organic growth matters. Certainly they have many things always going on. Amazon always puts their technical people out. So observation. Companies are putting their best technical people out there on the front lines. This is, we're going to compete on our people. One, two, the announcement volume, velocity here at Oracle Open World probably is the most I've seen of all Oracle Open Worlds in seven years. Very similar to AWS re-invent. There's so many announcements that are coming at re-invent this year. I think it's going to be more than last year, but even last year, it was raining. It was a tornado of announcements. It's hard to cover. In the tech press, talking to some of the folks yesterday, Wall Street Journal, New York Times, CNBC guys, this looks like their heads are exploding because there's just so much to cover. So all the stuff's coming at the customer. And to me, that's an observation that you say, okay, what does it mean? Well, so let's talk about two great points, John. So let's talk about the first one. One of the, on those tube yesterday, we talked, somebody said, you know, you mentioned who is, someone at Oracle saying, who is the industry's best CTO? Larry Ellison. Okay, Larry Ellison's 70 years old. Larry Ellison is not going to be the CTO of Oracle forever. So number one, we're starting to see some of that under, some of that talent start to emerge and start to become more out front because it has to. Number two, very importantly, John, talent creates and attracts talent. And I think the more that Oracle puts its talent out front in this period of significant disruption, that they are going to be more likely to attract other talent to Oracle. And that's what impacts the M&A game, too. You betcha. How to integrate in. And we talked about what's happening amongst VCs in the valley yesterday and who are going to be the entrepreneurs? We're going to hear about Oracle. You know, is Oracle going to be more aggressive at developing some of those new inventors and maybe not having them institutionally be part of Oracle? Reggie Bradford, yes, they talked specifically about that M&A. Again, talent brings talent, organically, inorganically. So putting those guys out in front is going to make Oracle a more attractive place as we go through this disruptive process. But I think the other thing that you mentioned is a really crucial point. At the end of the day, Oracle is introducing a lot of stuff. And as much as I also have ever seen, but it's coherent. I mean, one of the things that's really interesting about this conference or these sets of announcements is that they're covering everything, but it's one of the most coherent sets of announcements I've ever seen from Oracle. It's not a whole bunch of product piece parts. It's not fluffy. It's not fluffy and it's not piece parts. It's cloud. We are bringing all this stuff and we're driving into the cloud. And, you know, 2017 is going to be a huge year because Oracle's, as you said yesterday, is putting everybody on alert. We're going to get really serious about this. And we have Oracle's keynote with Larry Ellison. You're going to watch it at three or one o'clock. And then we come back on theCUBE for our analysis at 3.30. We want a specific time. We're going to go into great detail on the keynote, but at one point we can't cover on here on the entrance. We got to go to our next segment. And this is where we can expand on this. You mentioned business models. The developer is critical in the business model and the data. Data and developer, those two things we will really, really unpack at 3.30. Of course, we'll analyze the heck out of Larry Ellison's keynote because, again, everyone's up front, call to arms. This is not a false alarm for Oracle. It is battle stations. And we're going to see which companies got the best technical, you know, people up front. Where's the meat on the bone from the products? Of course, we got it on theCUBE. 2017 is going to be a year where leadership matters in the tech industry. Peter Burris laying it down. I'm John Furrier. theCUBE all day covered day two of three days, 12 videos yesterday live broadcast. Again today, we'll keep pumping it out there. That's what we do. This is theCUBE. Day two, Oracle up on live in San Francisco. We'll be right back.