 Live from Washington, DC, it's theCUBE covering Oracle Cloud World, brought to you by Oracle. Now your hosts, John Furrier and Dave Vellante. Welcome to theCUBE SiliconANGLES flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier, my co-host Dave Vellante. We are here pre-game at the Oracle Cloud World in DC, Washington DC. I'm John Furrier with Dave Vellante. Dave, getting ready to kick off. A lot of stuff going on, all the top executives. Thomas Curry is here, we've got Sean Price, all the top geeks and customers, Oracle Cloud World, really reimagining the business, really bringing the software model with the cloud. Oracle's end-to-end strategy is working, but they're not getting the props or the press. So we're seeing, just yesterday on CNBC commenting on Google's cloud show that's going on there, having their big user conference in San Francisco. Google's ahead of Oracle on the numbers. I interviewed Mark Hurd at their headquarters, and he's debating the numbers. So there's a lot of numbers games going on with the cloud. Oracle's not even in the top four, according to synergy research. Wikibon has different numbers. What is the take of the numbers in the cloud market share, and what is the battleground going on? Well, so first of all, this Oracle Cloud World is a series of events that Oracle's having, precisely for the reason that you mentioned, John, Oracle's not getting the props in cloud land. So Oracle, as you know, was relatively late to cloud, but is now going really heavily all in. Oracle's got about a 5% market share in the cloud world. It did about 730 million last year in cloud. It grew about 43%. In infrastructure as a service, Amazon is the big whale. It's got about a third of the market, maybe 30% of the market, followed by Microsoft and then IBM. But if you add up everything, actually Microsoft is the leader in all cloud when you include SaaS. And importantly, that's the fastest growing part of Oracle's business. Oracle now claims to be the largest SaaS vendor in terms of new business. They claim they've surpassed Salesforce in that regard, although Salesforce is still larger, but the new business that they're getting is quite large. So Oracle is going to surpass a billion dollars very soon here in cloud. The second point is the announcement today, Oracle basically re-announced what's called the Oracle Cloud Machine. You recall last year at Oracle Open World, you were there, they called it the private cloud machine for infrastructure as a service and platform as a service. They've shortened that name down to the Oracle Cloud Machine. What's important about that, John, is Oracle obviously is very strong on-prem. What Oracle is doing with the Oracle Cloud Machine is bringing cloud on-prem, but replicating a cloud-like experience. What do you call that? Is that cloud? Is that private cloud? Is that public cloud? Oracle's calling it cloud. So no doubt you're going to start to see Oracle count in its numbers. This machine and the services around that. So Oracle's going to continue to grow very rapidly in this space. Well, as I was speculating on my heard interview, also commenting publicly, Oracle's going to be in the top three, no doubt, in my mind. They are in it to win it. So let's talk about the dynamics of the Oracle strategy. That's going to be, that's a big statement you just made. Let's talk about the strategy. So they have fusion going on, going back to 2006, 2007, debate the numbers. That's a SAS software model. Larry comes out and says, let's bolt on pass and infrastructure as a service. They did that work. Now they come out full end to end strategy. So the question is, what will be the future for Oracle? Is this just the beginning? Because you got to look at the history of Oracle as a company. Every major inflection point where they had to actually change gears and shift, they've won. So this is not like a strategy du jour. Oracle, to me, at least from what I'm seeing, is in it to win it. They are all in, again, this is like a major shift for the company. And if you look at the other two major shifts in the computer business, Oracle came out pretty well. What's your take on that point? Well, so Amazon started the whole cloud thing. And Amazon's dominating cloud, $8 billion growing at 70% a year. That's massive. So how do you compete with that? You can only compete with Amazon in one of two ways. One is you got to have massive volume like Microsoft and Google. The second way to compete is what Oracle's doing. Leverage the value that you bring in SAS and database and platform as a service. Integrate end-to-end stack and go up the stack in value. Infrastructure as a service is a lost leader for Oracle. They're making their money on database and tools and applications. So from that standpoint, if you just focus in on the applications business, no doubt Oracle will be in the top three. If you broaden the market to include infrastructure as a service, I really don't think Oracle cares that much about infrastructure as a service other than it wants to provide an integrated experience. It really is driving revenue and profits from the SAS and the database part of the business. Okay, so Dave, what are you looking for at the show here? Obviously, I have my little pet peeve. I'm looking at one data points around the obvious, which is Oracle's performance on Oracle. I think they're going to do really well there. They continue to do well. The other point though is that I'm really kind of, I haven't seen much action on business. What is Oracle doing on net new business, cloud native? For people that don't have Oracle today, what is going to be the plan for them to come in and buy Oracle cloud if they don't have Oracle they're already in their business? So there's a couple things I'm looking for. One is Oracle's trying to redefine this notion of hybrid cloud, trying to create a cloud experience and give customers the choice and flexibility on-prem. I want to, one, understand what the customer's reaction to that is. What do they think? And the second is if this in fact is fourth generation of hybrid cloud, a key linchpin there, John, is attracting developers. So I want to understand, of course, Java, most popular programming language in the world, what's the angle for developers and DevOps? That's going to be a key factor in terms of cloud growth. What's your take on this? Well, Dave, you nailed it. First of all, we kind of talk about revenue in the cloud strategy. It's a C level conversation, CXO, business builder, leader, economics, licensing, all that stuff, value. And Oracle competes on value very well. The other area is developers, you mentioned. This is a huge deal. We are living in an era of a full stack developer model. User experience, I'll put it in a different bucket. User experience is paramount, obviously, mobile generation, et cetera. But we are living in an era of a full stack developer. No more silo developers, so Oracle has to open their arms to their platform and appeal to the, not just backend developer or front end developer, the Java guys, the Node.js guys, the DevOps guys, also the user experience JavaScript guys. So that full stack developer dynamic is a must have for Oracle. And I think that's going to be a key thing to look for. So the things we're going to be probing for today is what's the business problem that this solves, that Oracle's new cloud machine solves? And what are the revenue opportunities? And that's where the developers come in. And then a lot of nuance. What's the pricing structure? How does that fit with the competition? We'll lay out the horses on the track. We're going to be talking to all the executives, the customers, the partners, unpacking it for you here live. One minute left, Dave. I think the thing to look for for the folks who are watching Oracle live on the stream here is how are they going to integrate end to end cloud? That message will continue. You're going to hear about developers and you're going to hear about what the business value is. You're going to hear about what Oracle can do for your business, re-imagining it. At the end of the day, they're pushing the cloud end to end, same code base, front and center for a new generation. So it's going to be very, very interesting. The Cube will have all the coverage here, live in DC, this is the Cube. Look for the keynotes, all the executives coming on. We'll be back more live here in DC after this break.