 Welcome to theCUBE's special announcement here, exclusive coverage covering Oracle NetSuite Suite World with some special news. We're here with Jason Maynard, Senior Vice President of Marketing and Strategy at Oracle NetSuite and Jim McGeever, EVP, Second Vice President at Oracle NetSuite. Thanks for joining this special CUBE coverage. Thanks. Great to be here. So we got some exclusive news around Suite World going on. So let's get down and dirty. So you got four major announcements going on. Oracle NetSuite Global, Vertical Intelligence Suite and New Suite Commerce. Let's get into the hard news. What's the big story around the news? The big story is we're going global and in a big way. What's one of the big advantages of the Oracle acquisition. We could never afford it to go to as many countries as fast as we can. And now with Oracle, we're really being able to go really fast. And as a result, we're building a lot of new international features. So 2018, we've really turned the development ship to build out deep localizations from most of the major economies around the world. NetSuite's had a great track record. Obviously everyone has well-documented history. Obviously now with Oracle. What's the stride look like? What are you guys, you guys are hitting a stride. What's it look like? What's different about it? If anything, what's the big highlight here at Suite World? Well, we've really put the foot on the gas pedal. So we're actually growing much faster now than we were when we were independent. And a lot of it is due to the international growth. I mean, for example, in China, China, we didn't have a market of presence. It's now our fourth biggest market after only a year. And that's just starting. It's amazing how fast that is growing. Talk about the international global piece because global has become kind of like a whitewash term for some, but it's hard to do. Especially China, you mentioned that one. So you have China and then the rest of international. They're issues with cloud. You've got regions, you've got data privacy. I'll see GDPRs on the horizon. And it's got some teeth to it, I would argue relatively sharp in some areas, not in others, but it's a challenging dynamic. But the upside is it's very lucrative opportunity. What's different about international now than say just five, six years ago? Oh, there's two major differences. So one is the data privacy rules, GDPR. I mean, that's just amazing what an impact that has on businesses. And also the data residency rules. So we're having to build our data centers around the globe, which we never would have had to do before. Now this is, thankfully, we have a company that has data centers around the world. So it's becoming a lot cheaper and easier for us to do that. But that's really tough for business to be able to do that themselves. So, you know, the theme I want to get out there is that, you know, people want to do more with less. That's a classic consolidation message. And there's some consolidation going on when you look at cloud and how people are trying to figure out cloud on premise and then in cloud. But it's not a consolidation market. It's a massive growth market. Yes. Jason, what does more mean? I mean, people want more. They might have to do it less, but there's an upside growth component. How are you guys talking to that one challenge? Because there's challenges and there's opportunities at the same time. You know, it's an interesting time. I think a lot of folks say it's easier than ever to start a business. But the flip side is it's harder than ever to actually scale and grow. So when we are talking to our customers and we're getting into what they're trying to solve, the biggest issue they have is how do I overcome this issue of breaking these barriers of growth? So it could be going global. It could be doing more with less. How do I automate my business so I can reinvest into the things that are going to make me more successful, like acquiring new customers? Those are the type of challenges that we see out there. It's more with less, get me to where I need to be. And frankly, stop doing the things that are sort of counterproductive and inefficient and really drive top line. I think that's one nuance that's missed a lot in the analysis is that it's not so much more with less. It's more efficiency with cloud. You get more leverage and so forth. I mean, that's always been the case with software economics. How does that translate to the business strategy for you guys as you guys go global? Talk about some of the news around the verticals, vertical integration, because that's going to be a big part of it with either the developer community and or your partner ecosystems. Sure, so what we're seeing is if you look at our product and what people use, when we look to our customer base, customers who are international, customers who use vertical features grow much faster than customers who are single domestic. And so we looked across the board and so what we're really focused on is how we can help those companies grow even faster. So how do you go international quicker? But every business is not a generic business. So they all have these vertical features. Some have inventory, some have projects. And so what they really need is features that can help them execute their business better. So we go deep by vertical. In fact, our whole companies organize vertically our sales teams, our development teams. And so when we go to market, we go vertically. And so we're doing some really cool stuff, especially in the product-based area, a new supply tower control center, which really helps enable people to get product to their customers on time. Well, I'd like to get both of you to weigh in on the hard question. I'm going to bring the heat now. Everyone wants to know, okay, what's it like with Oracle? Is that helping you? Is it hurting you? Oracle has a reputation. They move into the cloud very quickly. But again, they're an incumbent, okay, in the old, in the cloud way. So, and the, you know, hards, herds, putting up some numbers. You can talk to folks at Amazon like, whoa, you know, they're Oracle. So there's a lot of uncertainty around who's going to be the modern player. So the question is, how are you guys working in that environment? I see Oracle's numbers are up. They're moving to the cloud model. They're satisfying at a pace that they're moving as fast as they can. But you guys have always had a different perspective. How is the NetSuite Oracle relationship working in? How do you talk to customers about that? Sure, so we're, they run us really independently. So we're a global business unit inside of Oracle. So all sales, development, marketing, product, all report up through me, Evan and Jason, and we report into the CEO of Oracle. So we really run pretty independently. The only other thing I'll add, so really not that much has changed other than we get to leverage a lot of their global scale. And as Mark Hood says, and try to avoid some of the negatives of the scale. But they are all in on cloud. This is when you're in a meeting with a senior leadership at Oracle, it's not a fake thing. It's not a marketing message. They truly believe at their core that in the cloud or that everything's moving to the cloud. So we get the same incentives to sell to an Oracle on-premise customer as we do to an SAP on-premise customer. Jason, add to that. I want to get your perspective. We were talking before we came on around the scale piece that Jim just mentioned. Talk about the profile of the kind of customers you guys have here at Sweet World. Is the profile of your customer changing? Take a minute to explain. Who is the NetSuite customer? Because the global thing is interesting. If you're a growing soon to be multinational or you're already a multinational company, this matters and then the scale matters as well. So what is the profile the customer and how does that help? How does that weave into the Oracle scale? So we have over 40,000 organizations globally running NetSuite. It's a pretty interesting mix. Obviously a lot of small mid-sized companies and we have a few good decent percentage of our base or multi-billion dollar companies. We see an interesting dynamic which is the most successful NetSuite customers are the ones that have gone global. They grow faster like Jim said than the domestic only. I think the one other hallmark that I would point out to the NetSuite customer base, you see sort of an innovative group of entrepreneurs. So we see all sorts of great stories with these customers in Jim's keynote, Cara Golden, the founder of Hint. She started off with the mission to stop folks from drinking soda water and drink actual water and started with 10 years ago and is now on an amazing trajectory. So we find- You guys get a lot of growth companies. Yeah, we get a lot of the growers. We get a lot of the entrepreneurs who start small with us and then scale with us all the way to becoming a multi-billion dollar company. And this is where the international piece matters, right? Yeah, yeah. So let's talk about that and then we'll move on to the next set of news. So if I'm a growing company and we're expanding crazy, I care about localization. I care about data in regions, certainly cloud. As you mentioned, Oracle's really serious about what they are. They care about regions. This is an issue. Talk about the benefits of me, a growing company. How do I take advantage of the localization? What do you guys offer? What's the playbook? We just make it easy. I mean, our whole focus is if you're a business, it's hard enough to go international and figure out your value proposition and what makes you unique and what makes you different, Shaylid. The last thing you need to be worried about are all your IT systems and spending your time on infrastructure and selling it all up. So our kind of job is we'll just take care of that. If you want to go to Germany, you will literally flip a switch inside the system and you have a German enabled application. And what's the alternative if I don't go with you guys? You have to go find someone in Germany to go buy an application, install it, then you implement it, then you integrate it. I mean, that's a multi-month, if not a year process. And expensive. Very expensive. You've got to find people and I know the nuance of the local issues. Right. And so you've got to learn all that. And we come fully localized and we don't do it just in a way that is, it's a starting point. We have all the German tax forms built into the system. When you log on to NetSuite and once you flip the switch, you go to the page, all of the German tax forms are there and we will automatically fill them out for you. Jason, I want to get your perspective because local marketing is a big deal. You guys are in hundreds of countries. I know that from doing the research and watching you guys grow. But where do you have actual presence and where does presence matter? Can you just highlight the NetSuite? Because I think this is going to where people are going to want to know, okay, there's hundreds of countries out there, but where are you? Where's the core going to be? No, so it's an interesting point because I think it's not just about product, right? It's not just about having a product that's localized for a specific country. It's about having everything else, right? It's having, making sure the support is in the local language. It's making sure that we have people who speak the language, making sure we have facilities, sales, service people, having a localized data center. You guys committed to that? We are 100% committed. This is, you know, you asked the question earlier about what has been the benefit of Oracle. I don't think as a standalone company we'd have been able to pull off what we're pulling off and announcing this week without the backing of the Oracle resources because they have the global reach that we can easily tap into. So when we do local now, we're doing it with everything that a customer needs to be successful. Okay, so the next set of news I want to dive into the hard news is the new suite commerce kind of vibe. The suite success for suite commerce. It's a new e-commerce solution that gives customers the freedom to grow and evolve their digital commerce business. So this is basically commerce. You're talking about like doing business. What is this news about? Give us the quick summary and let's discuss. So our previous commerce product was actually a very advanced. We actually started at the top first. We enabled you to touch every pixel on the page customizing any way, shape, or form you wanted. What we've done with suite commerce is now we've taken it and come out with an entirely pre-packaged pre-built websites. So you can be up and running with a very complex fully-featured website in 30 days or less. And it's point and click choose. And this is not going to a basic colors and theme choices. We have complex features that enable you to run your business. So you could come to us and we will have you up and running with commerce enabled, integrate with your back office with less in 30 days. Jason, I can see two use cases for this. One is I need turnkey. Guys, here's the keys to the kingdom. Build it for me. I'll give you all my raw materials. We're up and running classic turnkey. Then there's the more of the DevOps cloud model, which is, hey, I need access to APIs. I got my own development team. Okay, how do you talk to both those? And there's also in the hybrids in the intersection of both those. So there's just two modes of use cases. How do you guys interest the developer? It's interesting. I think the way we look at it is we can be the first system you buy and we can also be the last system you ever buy, right? And that's that freedom to grow and evolve. So you may want to start off with us because you're an emerging retailer and you're launching just in the U.S. But as you evolve to six more countries in a year and a half because you've got the hit product or that you're selling and you want to start to then expand your sophistication, then we can migrate you to some of the more advanced capabilities. But what we're delivering today is that ability to have a packaged out of the cloud, easier to use on ramp to get the value out of NetSuite. And the horizontally scalable cloud is obviously what developers like. What's the developer's story here? Can you guys share the developer perspective for your customer if I have a team as a customer? Sure, so we're using the exact same technology. So SweetCommerce and SweetCommerce Advanced, it's the exact same technology. One, we've been the developer and pre-packaged it and delivered to the customer. But if you start with that, you can instantly switch over and take over the development yourself. So either stay with us, we'll work with you, we'll develop it, or you can just take that as a starting point and develop it going forward. Literally, I think something at 75, 80% of our customers literally customize NetSuite in some shape or form. So you can imagine- So you're totally open to developers and developer mode? Yeah, developer mode. There's a platform as a service offering inside of NetSuite, which is something that as customers involve and grow, they tend to consume and use more of those platforming features. So one of the things I'm reading here in the news that I want to dive into, I like new things. So the latest additions you guys are doing have this concept called microverticles that span a variety of industries. So that means data potentially could fly around. Certainly in cybersecurity, we were covering it RSA. Just recently, the role of data sharing is huge. Obviously you got the other end on the policy side of data protection. So you got to have a combination of data sharing to make machine learning and make some of these new AI capabilities work. At the same time, you got to have policies around that. But these microverticles have to operate in a new way. So what does a microverticle mean? And how are you helping customers saying, I play in a little bit of media. I play a little bit in financial. You have a lot of different requirements that may cross verticals. How do you guys handle that? Well, we started off with industry. So we used to think of wholesale distribution as a whole series of vertical features. You need a warehouse, you need auto management. There's all these things that you needed in order to make that work. And now we're going into verticals within that, such as food and beverage or health and beauty. And then when you get down food and beverage, now you have cold storage. And so that's where we get to the microverticle level. And the requirements there are actually quite different than you may get from a generic health and beauty vertical. So what we build are those microverticle features to enable this business. So you guys drill down into the verticals and segment them down, and rather than some general purpose solution that's trying to hit, so these requirements change. And all the regulatory and compliance requirements that go with those microverticles, those are engineered as part of the process. And what's the impact of the customer? Talk about the customer impact. What's the benefit for them? They get a better product, they're happier, they get it quicker, and they get it cheaper. So it's kind of the more we do and the less you do, the happier the customer is going to be. All right, philosophical question now. This is really what customers want. They want to have, they want to feel like it's a personal experience, customized for their business. How do you make that work in this new cloud world? What's the secret sauce that you guys bring to the table to make customers get that flexibility, the agility, I'll say the scale of the Oracle helps on the foundational level. But as you guys roll out the next suites, next generation customer environment, what's the secret? Well, we've always had a platform, a deep platform. And so people have always customized our product. So we're using the exact same customization technologies to deliver these micro verticals that customers and developers have been able to do for years. So it's just leveraging what everyone can do to make it a better solution for those customers. Final question now, you know, I mentioned machine learning and AI before. Obviously the intelligence suite is news here. Let's get into that. If you're not doing AI, you're not relevant these days. Everyone's throwing AI around like it's like a, oh, we're AIing this, so it's machine learning. But this is real. I mean, software has to drive efficiencies. There's scale involved in software. Machine learning and artificial intelligence is a great path to operationalize and automate and create insights. So what is intelligence suite about? Can you share the news there? Sure, so we're not building a generic AI tool. Oracle's got a massive investment in that. And well, I'm sure at some point we'll leverage it. We're actually looking at very specific use cases with their application that customers can use right now. And so we're actually taking solutions such as what is the quickest way to get your inventory to your customer and using some machine learning to help actually route and pick the right inventory items on the right location to get the quickest delivery time to your customer. So we're taking very specific use cases and we're building that intelligence in around that. We're not coming out with a generic AI tool that will solve all potential questions, answer all potential questions, even if you don't know what the questions are. That will come a little bit later, but right now this is really... So you guys are taking the low hanging fruit, drilling down in known use cases for your customers and bringing those that kind of automation to the table. We basically take the attitude of machines and humans together are generally a better answer than either by themselves. So we'll give you all the choices and give you the recommendations and let you pick the way you want to go. Jason, how do you market that to a customer? Because this is really, I think, a big point. Humans and machines clearly are involved. You look at all the success of machine learning. This is now becoming known. You look at Facebook in front of the United States lawmakers. You don't even know how Facebook works. So you got an enterprise, they're learning about data. They want real answers and they need to have it baked out for them. I think AI and machine learning could perhaps be the new planking, the most overused, overhyped thing out there right now and every vendor has to come up with sort of a perceived AI strategy. So I think it's overwhelming for a lot of customers because at the end of the day, these customers are trying to figure out how do I solve really specific problems? They don't have AI problems. They have tangible business problems. And so we took this approach to build this from scratch inside of NetSuite. We didn't acquire some random startup and try and plug and graph that onto NetSuite. We built it with the same thought process around how do we solve that problem, make it more efficient. So our conversations with our customers are not about technology, they're about, hey, how do we get you better turns on your inventory? How do we solve a specific business problem? And that resonates. That makes it a lot easier. That's what they know. It's a shiny new toy kind of thing. Hey, look, we got some new tools. And there's a place for that kind of, if you're from a developer standpoint, I can see it being a great sandbox. You guys are taking a different approach. You're going at known customer problems that you can automate away and create insights. Is that right? Yeah, that's absolutely. To wrap up, I want to get the thoughts of suite role. What's going on here? What's the main conversations? What are you guys promoting? What's the message? What's some of the conversations? And what's next for NetSuite? Yeah, the biggest conversation is customers talking to each other about how they grow and scale their business. And so we try and create an environment at Suite World where these customers can learn from each other. They can talk to each other. Obviously, we share our insights and perspectives, but it's really about them and how they figure out and really learn from other experiences to solve what they're trying to accomplish. Jim, top level message to customers next 10 years. What's the NetSuite 20 mile stair look like for you guys? You know, the great thing about NetSuite is we've been around almost 20 years. We've been on the same mission, the same product, and we look at the confusion that's out there in the marketplace. I think people feel very grateful that we're on the path and they know where we're going and we're delivering them real value, real deliverables and we're not forcing them to change their business. They change, we change for them, not the other way around. And from a tech perspective, tech enablement and outcome perspective, what's the main themes of the show this year? It's mostly about international rollout, newcomers products, vertical features and micro vertical features and our intelligence assistance. Cloud, IoT, AI, software, all power in this. Guys, thanks so much for the insight. Exclusive news coverage here on Oracle NetSuite, Suite World, big announcements here. It's theCUBE exclusive coverage. Thanks for watching.