 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. We are here live at Oracle Open World in San Francisco on the show floor. This is theCUBE, SiliconANGLE's flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier, co-CEO of SiliconANGLE with Peter Burris, head of reaches at SiliconANGLE, also the GM of Wikibon.com, our research arm. Our next guest is Reggie Breff, who's the senior vice president of product development for Oracle Cloud, appointed to Tom's Korean, who could not make the keynote last night, but he did send in the tape during the Diane Bryant thing, so it was really good. Hope everything's going well with this family. Welcome to theCUBE. Thank you, glad to be here. Okay, so you're a product guy, which is great, because you're now on the product roadmap. You get to look at the holistic picture, not so much the go-to market, which Oracle has that separation. The Cloud is really a conversion environment when you think about it. The stack has to be set up in a way that enables innovation, at the same time, preserves the value of what's moving to the Cloud, or what gets started in the Cloud, Cloud Native. Take a minute to describe what Oracle is doing in this regard, because you do have a huge install base. And Larry pointed out on the earnings call, they're not yet moving all over yet, so Microsoft started their progression. You guys got a huge tsunami coming. Yeah, well, I think it's an evolution. It's not a revolution, first of all. So we have 420,000 customers worldwide, as you mentioned, a substantial install base. As Larry has mentioned before, with Thomas and that, we've been working on the Cloud applications for over 10 years. We started with the SaaS layer, now the Pass layer, and the infrastructure layer. I think that if I was to use a sports analogy, we're in the first inning of a nine inning game, so we're just getting started. We love sports, I had a top of the second, but okay, we'll give early innings. But Fusion 10 years ago was kind of pre-Cloud, although Larry had the famous Churchill Club video, I think about 10 years ago, with the Sun guy saying, you know, the Cloud is just a data center with an address that nobody knows. It's essentially that kind of concept. So I can see the progression of the 10 year run, but something happened four years ago, we could feel when we were covering the show here. You saw Larry kind of like on stage, almost like knowing what's coming. They had not yet released the Fusion base. What's changed in your mind internally? And share with the folks, what's the internal pulse? Because some say you're late to the game, which you guys refute, you're in, it's on top of the second, how late could you be? But how much more work needs to get done? Do you share kind of the internal Mojo mindset, vibe, and what work needs to get done? Well, I think, you know, let's start with, it's a 135,000 person company. Not that there's corporate inertia, but it's a very large company with a lot of customers that have an existing installed base. I think that we're, I definitely don't think we're late to the Cloud. I think if you look at the, you know, workloads that have been done to date, something like 6% of inter-replies workloads have been done in the Cloud. But I think that, I can't speak for the past, I've been here for four years, my company was acquired. I agree with you, the energy and momentum, the acceleration, the sense of urgency is palpable, and it continues to accelerate. I think there's just this recognition that we feel like, you know, we've got a very strong position and a strong hand and we're going to play that. One of the things Larry mentioned on his keynote yesterday and what came up today is that Amazon is an environment you can go to and you got to do all this work. Oracle, you can just move stuff to Oracle and it moves to the Cloud instantly. But it still brings up the integration game because there's still a lot more kind of point solutions out there. You can call, you know, start up doing something in the ecosystem as a feature, not a company that would might want to plug into that. So how do you bring frictionless integration with a sweet mindset? Because essentially, Oracle has that gravity. But at the same time, you don't want to get stuck in that as a, you know, Oracle-only solution. So how do you integrate well with others? Well, first of all, I'd say it starts with a mentality that when I was running my startup in 2011, if you think about just the marketing cloud alone, Scott Brinker has this, the landscape of startups in the cloud, there was a hundred, I think, back then, and I think there's almost 4,000 now, just in marketing cloud alone. So the cloud has opened up a huge era of new startups and innovation and credit card swiping and companies can get into that. The challenge with that is, as Larry said last night, you know, nobody wants to integrate, you know, 50 different applications from 50 different companies. I think that we come in with this, you know, we've got all the layers of the stack, but we also, we've got to have a mindset and a mentality of being able to be open to best of breed, to bringing in solutions from startups, you know, via APIs and making it easy for them to work with us and want to partner with us. I think that's the future for Oracle. Do you see Oracle inside, or do you see Oracle facilitating other brains? So as a more, going back to what John's point was, is a customer to sit down with an Oracle screen and access stuff? Or is a customer going to sit down with an Oracle framework and know what they're accessing with the partners? Well, I think it depends on the product and the customer. I'd say we're going to be both. I mean, I think we've got the breadth and depth and capability to, you know, to be an inside platform type approach or infrastructure, but also if you look at like an HCM or ERP or marketing cloud, you know, we're going to be on the front end. Do you anticipate that you're going to go more horizontal as opposed to vertical? So you're going to go from the raw infrastructure to the horizontal and let other folks verticalize? Is that kind of how the thinking is? I don't know that we see, you know, necessarily a distinction at this point. We obviously have a big industry, you know, you guys have probably talked to them before, go to market group and entire business unit, but I think we're going to continue to take the market, you know, what the market gives us and continue to push out our solutions. So Reggie, I talked to a lot of your customers all the time on theCUBE and other, you know, channel partners at Oracle. And one of the things that keeps on coming up is that the swim lanes of the database, as you carry in, it's all over this, is a big part of the business. And you're starting to see now with the cloud being more of an integrated IaaS past, IaaS, the role of the database is certainly changing. But it still makes up a big bulk of the business. However you kind of consolidate the numbers, however they fall, the database is 70% roughly the business, might be my analysis. Okay, so I wrote a tweet last night kind of being snarky, but kind of on the whole Tom Brady thing, bringing up supposed analysis. Free Tom Brady, I said free the database. Meaning that one of the thesis that the Wikibon research have come up with is that with free data, you have more data exposed for potential use. And by having locked in data, you can still manage the systems of record and then start getting at a whole new set of engagement data that could then spawn another set of innovation on top of it. This is clearly where the market's going in memory and whatnot. So question, what's going on with the database? How do you talk to customers and saying, okay, the database can be fine. You can use some other databases, they'll still work with Oracle. How do you have that conversation? And are you breaking down that swim lane, broadening the swim lane for the database team? Yeah, I think from a business model standpoint to use your Tom Brady analogy, or your tweet. The database is suspended for foregame? Yeah. I don't want to make any declarations on the future business models, but I think the fundamental underpinnings of a lot of these new capabilities that are enabled with data, whether it's AI, machine learning, internet of things, I think that those are gonna be best leveraged when you've got the broadest and deepest swath of internal and external third party data. And I feel like we feel like we've been in that business from day one 40 years ago, and now we have the broadest suite or capability and data and integrating that data and making it easy to consume and use. It just seems that the old move that Oracle made, which I thought was brilliant, they had the database business, and web logic was a nice sticky component to that, allowed the extensibility. So we're seeing that same dynamic in the cloud where we want some reliability, it wants some high quality. As Larry said yesterday, it's hard to do what you do. I get that, but at the same time, there's a growth opportunity, there's an innovation strategy for Oracle and your partners in developing ecosystem or potentially channel partner. So we need to see that thing. So you guys talk about that in the product group and what specifically does that translate to in terms of new features, new focus? Yeah, I mean, we've got, again, we've had a very robust data cloud strategy, which is leading in the internal and external third party, marrying those data sets together and integrating those into our product suite on the application side, specifically around the database, opening that up to third parties and how that evolves. I think there's going to be more to come on that. What's the biggest thing that people are missing when they try to understand and squint through the Oracle, just breath of massive size? When you look at the cloud strategy, the numbers aren't really killing it. I mean, it's four billion for Oracle. I mean, it's still small relative to the big piece of the pie, a lot more growth to go. That should be comforting to Wall Street at least, but from a market perspective, what does the cloud mean? I mean, how do you have that conversation? I think that what's missing is that if this was a standalone company, it'd be an incredibly viable IPO-able company with a growth rate faster than anybody at scale in the cloud, growing double the growth rate. I think another unknown is that we sell a lot of product to companies under 500 million in revenue. 75% of the customer base is under 500 million revenue. So we call that small to mid-sized business. So everybody thinks Oracle is only an enterprise class company. We are enterprise class, but we also scale down. And I think that's part of the announcement that you've seen today. And the net new customers are higher than they were. Exactly. And the growth thing, I'm like, okay, 77%, from where you were, I doubled my market share from one to 2%. I mean, percentage is a good benchmark. I get that, but like, isn't it the numbers or the numbers, right? So the cloud native is attractive. But it's hard, as we were talking about in our intro, is that it's hard for companies to get there. They have their own inertia. So we're really trying to understand, what's the path for the customer? When you talk to a customer and think about the customer from a product, when you roll out products, they want that bridge. Is that the past layer? How do you guys? Well, we try not to define it. I think it is, it can be challenging because we do have so much product. And we cover so much ground, but that's what makes us so successful and that's why companies rely on us. I think the good news is we have the most flexible platform. If you want to move some of your workloads, you want to move some of your applications to the cloud, you want to do a hybrid, you want to transition over time. We've said 100% of our customers are going to move to the cloud and 100% of our applications are going to run in the cloud. We haven't set a timetable on that. I want to spend the rest of the time on this segment to talk about your entrepreneurial background. You sold the coming to Oracle four years ago, so you've been in the system for four years. But prior to that, you had to be nimble and you also did some acquisitions. I don't know if they were AccuHires, but ultimately you were putting together a lot of stuff, so dealing with different product roadmaps. So two questions. One is, how does that go on today? Is there any agile to that in terms of doing that? Is it hard? Is it easier today than it was before? And two, for startups out there, there's a lot of startups out there that aren't going to make it. They're not going to be the unicorn. They're not going to be that big company, but they might be a nice $10 million business. But I was looking for an ecosystem. So the second part, which I like to take first, is I'm a startup. I'm not going to make it to the IPO. Maybe it's a lifestyle business, cash flow business, whatever the word. I need a home. I need an ecosystem. It would appear that you guys would be a good fit for those kinds of companies. Can you share your thoughts on what those entrepreneurs should be thinking, actions they could take? Yeah, I mean, I think first of all, this is Reggie speaking, not a Oracle, but as a startup, find a big addressable market opportunity that nobody has. I know it's easier said than done. Surround yourself with great people and focus. I think the biggest challenge that startups face is they try to do too many things or be all things to all people. If you can find that niche, yes, I've been part of, we've acquired, personally speaking, we've acquired many, many, many companies that fill up to commit niche. It's easier for us to acquire and integrate than it is for us to go build it ourselves. So I think that's the mantra. So the first part of the question, now that you have that answer, how's that translated inside Oracle? Because if you think about it, Oracle also does a lot of M&A, a lot of organic growth as well with R&D, but you have to kind of pull this together. Does the data cloud, is there's new fabric that gets developed so it's not like some startups go, you'd be by yourself for a while and then some get integrated in quickly? Is there a way for an environment to be ad-jail in the sense that you can just plug these new opportunities in? Well, I would say, again, having gone through three acquisitions, and this is the God's honest truth, Oracle knows how to acquire companies better than, certainly it's been the best experience that I've had over the other two. We can always improve. A lot of times you read about or follow the big tapes, deals, net suites of the world and that, but there's a lot of smaller companies to get acquired and I think that there's a very solid methodology and approach that we take that enables us to capture the value of these startups and make them feel like they're part of a broader company. You know, more than half the employees at Oracle come through acquisitions. Reggie, final question for the folks watching, what's the one thing they may not know about Oracle Cloud that they should know about it? Again, I think that what they probably don't know is we are working with companies that have as few as one or two employees that are using our cloud right now. So we're not just a company that's only available to enterprise. We are contemporizing our offering for companies of all sizes that want to deliver better quality and at a lower cost. Cloud for all. Cloud for all. Exactly, democratizing the cloud. I wish we had more time. I'd love to dig into the developer conversation, how you guys work with developers. Any quick comment on the developer angle? How's the young job? Yeah, we've always sought developers and I think that if anything, you're going to see us push further towards that community. It's so vital and important for us to develop new products to integrate and create more capability. We're looking forward to following up on that. Thanks for coming on and sharing your insight inside theCUBE. Really appreciate it. Thanks for having me. Reggie Bradford here inside theCUBE at Oracle Open World Live in San Francisco. More coverage. Three days of wall-to-wall live coverage, 35 segments. I just saw CNBC packing it up. They mailing it in only a few interviews and they go. So it looks like we won first round. Day one of the bake off between Bloomberg and CNBC. You're watching theCUBE. We'll be right back with more of this short break.