 from San Francisco, extracting the signal from the noise. It's theCUBE, covering Oracle OpenWorld 2015, brought to you by Oracle. Okay, welcome back everyone. You are watching Silicon Angles theCUBE, live in San Francisco for Oracle OpenWorld on Howard Street. This is theCUBE's Silicon Angles flagship program. We go out to the events and extract the signal and noise. This is our pregame leading up to Larry Ellison's keynote at five o'clock. We've got a few minutes here at wikibon.com analysts, Stu Miniman, for Systems and Infrastructure, and Brian Gracely for Big Data and Cloud. Again, guys, we are here. Larry Ellison's going to be going on a keynote at five o'clock. Stay with us. We're going to bring you all the way home there. And it should be exciting as always our six year covering Oracle OpenWorld theCUBE. And I got to say Larry Ellison's keynote is always my favorite part. A lot of speculations. What slides are you going to change the last minute? What's he going to say on stage? How many times are you going to say next slide, please? I mean, all kinds of drinking games are going to be on Twitter. So that's going to be fun to watch. Shouldn't we be watching it? But let's get down to the meat. We are going to see a lot of stuff out in cloud. So, Brian, I want to actually get your take on this. This is the end of the client server era, as we know. We're seeing Amazon's results are often charged. Targeting Oracle in their event at ReInvent just a few weeks ago. And you've got other competitors out there targeting Oracle's database from the SaaS down to their infrastructure up. What's your take on Oracle's cloud play? So in time, they're a little bit behind. We could argue Amazon's got seven or eight years, nine years of experience. Azure's doing very, very well. But the key to Oracle's cloud, and I think we're seeing this in some of the numbers they're reporting, it's let me take the complexity out of it for you, for Oracle applications, and let me integrate it for you. Integrate, integrate, integrate, and let me give you consistency on-prem and off-prem. And it's not just infrastructure, it's infrastructure, it's platform, it's SaaS. So that's the story they're going to tell customers. You know, we're going to see how well it plays. But for right now, if you're an Oracle customer, you can't do Oracle terribly well in an AWS cloud. You're not going to do it well in an Azure cloud. It's a great story for Oracle customers, especially database customers. I asked Intergeek Singh on theCUBE here just earlier about the challenges from the competition standpoint to try to replicate the Oracle trajectory which is translation years of experience. He pointed down the two perspectives. Driving from SaaS down and infrastructure up, basically Amazon and Salesforce. Let's take those as opposed to childs. How do companies compete in that area? And Oracle, if they're right on strategy here, they can be the center engine of innovation on both fronts and be the platform for all the apps workloads as well as all the changes in infrastructure. Do you think that makes sense? Does that hang together for you? Well, I mean, I think if you're Amazon or Salesforce, right now you're betting the farm that you're going after all new applications, net new applications, net new business models. And they're doing very well in that space. The hard part is can you get, can you crack into this market space that Oracle has very difficult to do? Oracle keeps building things into their hardware, into their software that says it's got to be really well engineered and really fast. So very difficult. So a lot of stuff, an application building, data visualization, we're expecting some announcements there. Stu, M7 expecting some announcements there. John Fowler, executive vice president of systems was on earlier, kind of teasing out this end to end security game. Can they pull it off? I'm expecting to hear some announcements. What are you expecting to hear? And two, are they positioned to take engineered systems to the engineered cloud, being an integrated cloud? Yeah, great question, John. And it was fascinating to talk to John Fowler and how they're bringing software in the silicon together. There's been so much discussion about commoditization over the years, but when you really dig into things, what we like to call it is more hyper-optimization. Amazon won't share a lot of what they do, but they're building specifically for the right applications, for their own data centers. When you dig into all the environments, they're building systems end to end. We see IBM with their power stack and what they're doing with Bluemix. You see Oracle with what they've got with Spark and claiming that they've got the highest performance when it comes to their applications. So owning that full stack, it's really the next generation of the stack wars that we've been talking about for years, and Oracle's got their position in that market. All right, I want to get both of your perspectives as analysts. I know Wikibon.com, there's a lot of research, and Brian, you did a recent report out on cloud market share. Azure's out there, you got competition out there with Azure, AWS in the cloud. Oracle's in the enterprise heavily. Amazon won the public cloud game, in my opinion. Pure play, public cloud. Enterprise is a whole different ball game. What do you guys think about their chances? Share your opinion on the competition and what do you think they're going to do here tonight? So I think for us, the biggest thing that we're looking at is, while they all think they compete with each other and they're going to kind of banter back and forth, they're all essentially competing with status quo IT. Does an IT organization want to move fast? Do they want to deal with migrations? Are they capable of doing mobile and IoT? That's really the game. How much simpler can you make it? Oracle's making a play that deep integration is going to be their play. Some of the other guys are looking for, you know, making complex services simpler. It's like everybody's been saying lately, we are in the first inning, a lot of game left to play. Yeah, and John, if I can add to that, one of the things that surprised me over the last couple of years is, people think of Oracle as kind of this proprietary stack, but there's a lot of open pieces in there. Obviously they're doing Linux. They've got, you know, we expect open stack to be discussed this week here, as well as of course in Tokyo at the show there. And look, you know, things like Docker, you know, absolutely containers are, you know, fitting into this Oracle ecosystem. So it's not only one environment, it's really that balance of, you know, how do we put everything together into a stack, but also build that ecosystem and allow, you know, APIs and platforms to play together. We're going to plug wikibon.com research in a second. I want to get back to that research, but I want to bring that point up and ask you guys the question. Oracle has always been about the red stack. That's been the big, you know, focus on there. Obviously it's red, it's their logo, but Dave Vellante and I were talking last year, and you guys were part of that, is that can Oracle go beyond the red stack? And I think what I'm seeing this year is the teasing out of beyond the red stack, meaning Oracle can actually win everything. You got Dell buying EMC, will that happen? Could Oracle come in and make a bid for that? Hold on to the conversation, but Oracle seems to be going beyond Oracle. SQL on Hadoop, not just on Oracle. So is it viable to say Oracle is going for the big play here to be an enabling platform for all apps? Stu? Yeah, so, you know, definitely expect to see Oracle pushing beyond the red stack, but they've got a lot of work to do there. I liked hearing, talking about big data, John, Spark, not just Spark the chipset, but Spark as to when the analytics space, we expect to see more there. So, absolutely, Oracle's looking out there. You know, it remains to be seen how far they push beyond because they know what their sweet spot is, they know what their customers are using, and that is sticky. David Floyer at Wikibon always talked about, you know, Oracle has one of the stickiest applications out there in the IT space, and therefore you don't want to go too far beyond, you know, your core strength. Brian, is cloud the new boat for Larry Ellison to take Oracle to the finished line and win it all in the enterprise? I think the boat is really going to end up being IoT. We talk about getting beyond the red stack. You know, cloud is cloud, but IoT is outside of their domain, right? But like we just talked about, it's a data thing, it's a data processing thing. You're either going to be in the apps game, which may or may not be done, but the data processing side of IoT is right in their wheelhouse. It's theirs to, it's theirs potentially take, and we know the enterprise and those service providers have the money to do this. You know, we've got, you know, bubbles potentially going on, you've got, you know, got uncertainty with Dell and EMC and they got to work that out over the next couple of years. It's a great opportunity for Oracle to make a big statement this week about what they're going to do with their cloud. All right, let's go around the horn and just kind of predict what Larry's going to say and identify first areas you think that Oracle can really dominate and change the game. Stu will start with you. We're going to Oracle start and change the game real fast right now. Well, so John, for my space, you start with the converged infrastructure. If you look at the full system space, obviously owning that full stack, Oracle's been there. How do they go beyond that site of this week? We're going to hear Dave Donatelli, what he's been doing. They've been adding to that team and, you know, very large opportunity in the enterprise space for Oracle to expand. Brian, where does Oracle move down the field? What area can they pivot hard and drive that arrow into the market? I'm really looking at two spaces. One, platform as a service. You know, how well do they articulate that story? You've got things like cloud foundry starting to make some noise. How well they do that? And then I want to see what they're going to do in SaaS. Are they going to give you the ability to customize SaaS applications that they can give you the ability to customize SaaS towards your business? They do those things. That's a big win for them. I think my opinion, Oracle could move the ball down the field big time by being the platform for all apps. And I think really nailing that middleware model that they've owned and not being the red stack by opening up areas they could dominate. I think that's an area I wouldn't look for. So that's super exciting. Guys, we're getting ready for the keynote. Go to Siliconangle.com. Go to Wikibon.com for all the research. Go to Siliconangle.tv. You'll see we're doing podcasts. We've got Women Wednesday featured guests. And of course our guests of the week on theCUBE is featured as a podcast. So guys, let's go around the horn. What are you expecting Larry to say? Entertaining, what color are you going to see? How many times are you going to say next slide, please? Brian, we'll start with you. What are you expecting to hear? Larry Ellison knock out of the park. This keynote is always a who was he going to take out? I think he's going to try and have an AWS killer. I think he's going to try and have a Salesforce killer. I think those two probably worry him the most in terms of the future of what's going on. And he's going to have a big IoT, mention a big IoT play. It's all going to wrap around cloud. Duke, yeah, I'm just happy. I believe Larry will actually show up this time for the keynote. There's no America stuff going on. And what everybody loves is, you know, let Larry bring something new. I don't think that he's going to announce a counter offer for the Dell, you know, EMC acquisition. So, you know, looking forward to it. And you know, what will be the Intel dynamic? As Brian said, he always takes down something. We've seen a number of times the person standing up there on the keynote, HP one year, Salesforce another, EMC another time. He's knocked them down a peg. So, you know, hopefully Intel's not next up. I think Larry always rides a horse into the keynote. And that horse is something that he can put a stake in the ground and use as just like a pinata, just banging hard. I think the pinata for Larry Ellison is going to be the Dell EMC merger and AWS in one shot. He gets to kill two pinatas with one stone because I think what's going to happen is he's going to highlight Amazon as his primary competitor in terms of trashing them given the fact that they've been going after Oracle. And two, I think he's going to look at the Dell EMC combination and really throw a lot of haymakers at that. So, I think it's going to be an interesting time. We'll see which way he goes. Guys, thoughts, final thoughts. We've got some few minutes left. Look, he's the only CEO that will do his keynote on Sunday night. Sunday night is for Super Bowls and Oscar awards. He's not the CEO anymore. Well, he's the lead, he's the founder. Sunday nights are for Super Bowls and Oscar awards and big productions. This is going to be a big production. We all love the big production. We love the back and forth on Twitter. It's going to be a great keynote. Yeah, I'm excited. I think it's going to be fun. And to see what this energy level is, that's going to be very telling. Hopefully it's going to be in a good mood. The Twitter stream is going to go crazy. Go to crowdchat.net slash oow15 and we're going to join the conversation. That's our engagement container. Go to our new software called crowdpages.co slash the Oracle open world 15, oow15. We'll be back more after the keynote tomorrow live on Howard Street. This is the queue.