 Live from San Francisco, extracting the signal from the noise, it's theCUBE, covering Oracle OpenWorld 2015. Brought to you by Oracle. Now your hosts, John Furrier and Jeff Frick. Hello everyone, welcome to Silicon Angles theCUBE. It's our flagship program where we go out to the events and extract the signal and noise, and we are live here at Oracle OpenWorld on Howard Street in the middle of all the action, all the cloud action, all the integrated systems action, all the engineered systems action. We're going to be here for three and a half days of live coverage through Wednesday. So we're kicking it off here. I'm John Furrier, the founder of Silicon Angles, Joe McCos, Jeff Frick. We'll have Wikibon analysts, Stu Miniman and Brian Grayson to join us shortly, and we have a slew of interviews lined up for all day. But Jeff, exciting to be here. We've been at all the different events over the past year. We had 70 events last year, and we're coming down to the tail end of 2015. We go to the shows, we ask all the tough questions, we extract the signal from the noise, and it's a cloudy world. And it's going to be partly cloudy here in San Francisco, but it's really exciting because Oracle is really flexed their muscle. We've covered their engineered storage and server event. We went to the cloud event with Larry Ellison and Oracle headquarters. Now we're here on the street, and it's super exciting. So great to see you. We're going to have a great day. What do you think? What's the vibe here? I mean, look around. Yeah, they've renamed Howard Street the Oracle Cloud Plaza for the next three days, John. So yeah, it's all about cloud. Here you call last year when we were at Oracle, when we were all, Larry kind of blessed the cloud, right? We were joking about it. Larry's in on the cloud. Well, he's all in. He's pushed all the chips in as evidenced by what's going on here. Really the emphasis on cloud. So we've been at a lot of great shows. Cloud is the theme. It's transforming the business. So what do you expect that we're going to get here, John? I expect a lot of haymakers being thrown by Larry Ellison. Certainly he's going to have the keynote here tonight. We're going to be covering that live on pre-game, post-game coverage. But I expect really one of the most epic Oracle open worlds. Now, this is our sixth year at Oracle open world. Now we've on the street, CNBC will be here, a lot of media coverage, mainly because it is the battle of the heavy waste. Larry Ellison has built a formal management team. They've transformed their company. It's a total database transformation. What we're going to see here today, in my opinion, is going to see Oracle in a full-on transition mode. He used a sailing analogy. The gear is set. The boat is going to be turning about. They are heading clearly into a integrated systems, engineered systems, plus a fully cloud world. I interviewed Dave Donatelli at a last cloud event, and I then posted on Forbes where I have a column, and I wrote what he said, which is, any company that does not have a public cloud is doomed, and he's referring to HP, IBM, Dell, et cetera. So that's one thing. The second thing is, in context of the overall industry, you're going to hear a lot of posturing because the EMC Dell acquisition really puts at the forefront the management team, the talent of these now mega conglomerates. Oracle is a big company with a lot of management team, a lot of talent. Mark Hurd, Dave Donatelli, to name a few, John Fowler, obviously Larry Ellison as the CTO. So I'm expecting to see a lot of product actions. Thomas Kurian is going to be giving a keynote on Tuesday, probably heavily product-focused. But this is all about Amazon Web Services. Amazon Web Services has shown the way for an enterprise-type approach. They won the public cloud, but that's not the only game in town. Now it's about the enterprise. So I'm expecting to see Oracle really put a lot of stakes in the ground to counter the Amazon Web Services. I'm expecting to see Larry Ellison's slides and use the word Amazon Web Services, not IBM. It used to be IBM was the target, now you're going to see Amazon. And Amazon has thrown the gauntlet down there, putting out there that the Aurora service is luring in all the Oracle customers. So I expect a huge counterpoint, counter punch from Oracle on that front to differentiate and show the Oracle customer base that Amazon enterprise cloud is not going to be as viable as, say, Oracle. Then there's the context between the Dell EMC merger, Jeff. That is going to be a big subtext to the entire event. And it's all going to come down to power and ultimately management team and execution. So it's going to be really interesting to see the jockeying. The boats are on the water, the race is on, it's, you know, Microsoft, Amazon, Dell EMC, I wouldn't even put any HP into the mix at this point. I think they're like way in the last place relative to Oracle. So that's what I'm expecting to see a lot of action. I'm super excited to break it down. And again, we're going to do 48 segments. So we're going to be extracting that signal from the noise. And then of course you got Google who's there kind of waiting in the wings. And of course Microsoft Azure is also one of the big cloud platforms. But John, it's a really interesting point because AWS from a competitive standpoint is a completely different animal than now the combined Dell EMC. So what are the different strategies to kind of look down those two paths? Well, we said on theCUBE that basically this is what inning are we in to use the baseball metaphor is that game one of the double header was public cloud. Amazon clearly has results there. And the profitability that they're throwing off is pretty significant. Larry Ellison also highlighted some significant financial performance at the cloud launch in Redwood Shores just a few months ago. So what I'm expecting to see is Oracle differentiating their offerings because it's a hard game in the enterprise. The sales motions, the pricing, the database role in the enterprise, the on-prem, the role of the engineered systems is going to be a real asset for Oracle. That investment is going to be pretty critical. And obviously they have the fusion stuff and a lot of big data stuff. So I expect Oracle to highly differentiate the enterprise sales motion and deployment with cloud specifically. And that's going to be really counter punching Amazon's quote self-service, low touch sales approach. So did Amazon poke the bear? Is that kind of what happened in terms of really moving these enterprise companies and applications, sales forces into a hybrid or a hybrid cloud world? Yeah, I mean, there's no doubt. We talked to Andy Jassy on theCUBE at Amazon re-invent but Amazon clearly has poked the bear with Oracle because, and Oracle's expecting this by the way, I don't think this is new news for Oracle. Oracle's ready for this and I'm excited to see what they come out. But specifically what Amazon has done is gone after the Oracle's install base by saying we're going to give you free tools to migrate the database. Again, the theme that we're watching here, Oracle is in a database transition they've never seen before and they're doing it. It's not like they woke up yesterday and said, hey, we should start preparing as Amazon. We saw this two years ago, last year, some tell from Larry and then obviously the announcements are all about cloud. They got a public cloud, they got a private cloud, they got a hybrid cloud. I'm expecting to see private, public and private, hybrid and public be the theme but also clearly the engineer's system. So horizontally, the customers can buy whatever they want and then on top of that, you're going to see a lot of vertical, real product excellence. So I think that's what Oracle will do and also they've got the high-tech sales motion. They have really, really good, strong base. And then you've got other kind of locusts of competition. You've got the microprocessor. So I see that we've got, CEO of Intel is going to come on on the keynote later today. What do you expect there? Obviously we've got some spark history, lot going on even on the microprocessor side. Well the microprocessor with the Intel highlights to me with the biggest trend in the business right now and that is, is that the software on silicon, you're going to hear some news there. That's going to be something to watch. But more importantly, the internet of things really points to a paradigm of high performance computing combined with a software analytics market. That essentially is middleware in my opinion. So what you will see in my opinion is the Intel Oracle kind of relationship combined with the spark stuff to lay out a fully comprehensive internet of things offering that will be highly differentiated and high performance. At the end of the day, what Intel showed in the computer revolution was if you can harden down that top, customers really don't care. That's why Oracle's having a lot of success with engineered systems because customers just want a working high performance solution that can scale. So that's not about lock-in, that's just about fact. I want to deploy an IoT solution with big data. I don't want to have to launch a Hadoop cluster, do all this leg work, hire all these DevOps guys. Enterprise wants turnkey, scalable solutions and IoT is going to be a huge opportunity. I'm expecting to hear Larry essentially own IoT. I'd be surprised if he doesn't come out with the IoT message that they've invented IoT. But again, it's in their wheelhouse. IoT is heavily database driven and cloud. So with engineered systems, the intake, the ingest, all these things are database driven. So IoT, I expect to be huge. So begs the question, the whole nother looks at competition is the database, right? That is no longer just the exclusive purvey where obviously built their business back in the day. There are a lot more than that now, but it's a lot going on in the database space. Yeah, I mean, the database space is going through another sickle goal. It's always doing the same thing, you know? It's evolution, the database always pops down and it's new innovation. But the big issue right now is the hidden costs and cost of ownership. At the end of the day, people want outcomes and that means I got to re-architect my enterprise to handle big data IoT and cloud without disruption, right? And they don't want to hire guys to write age base or Hadoop programs. And that's going to be kind of a different cost of ownership. So one of the things that Oracle I think will do is change their pricing models. And that's something that we haven't heard from them yet. We'll see how that rolls out, but certainly their sales tactics and their customer presence will have to be tweaked a bit, but I'm expecting essentially that kind of that discussion. Like, okay, what do we do with customers? How do we price the internet of things? How do we roll this thing out? And with open source and all this good stuff, there's a deployment cost of ownership. That's going to be something that I should expect some data on. Yeah, and clearly Oracle's got a huge installed base. All the posters all around Oracle Open World are customers, customers, customers, this customer doing that, this customer doing that. So clearly they're a trusted party for a lot of their customers that are going to help them grab these transformational things that are going on with cloud and internet of things. These are huge disruptions and opportunities to the incumbents as well as the startups. Yeah, we've heard that. We've heard that the startup landscape is ultimately going to have to look at what the big guys are doing. We call them whales, right? The big whales are Oracle, Microsoft, now EMC and Dell, obviously will be a big part of that. And to find some white space is going to be all about finding about which ecosystem you want to play in. The Oracle ecosystem is pretty large. You go down the show floor, you'll see a lot of companies down there that have been here for many, many years. Oracle does some pretty big business with a lot of big companies. They're not a startup. However, their ecosystem is an opportunity. So the interesting thing we'll try to squint through is, what is a startup opportunity? Every VC I talked to in Sand Hill Road and Palo Alto, Menlo Park are all scratching their heads right now. Where do I invest? Look at OpenStack. Look at the transformation, just in OpenStack alone. The cloud business is radically changing. It's happening really, really fast. And if you don't have a big boat, okay, you cannot win, right? And that's something that Larry Ellison knows a lot about. He's got the big boat right down at the end of the street. He's got the big boat right down the street, you know, the ultimate. We need a bigger boat. Obviously this great white is jumping into the harbor here. We know that from on YouTube. But really, the serious thing is that customers want a partner. At the end of the day, this transformation, call it digital transformation, whatever you want to call it, is totally happening, IOT. At the end of the day, they don't want science projects in the enterprise. Enterprises want a reliable partner and ecosystem to support it with entrepreneurial activity, by the way. But they want performance. End of the day, they'll take a box over some open source. So as always, John, we go out to the events, we extract a signal from the noise. We've got a huge guest lineup set up. We're going to be covering the keynotes as well. We're here through Wednesday. But of all the lists that we've got of great people coming on, who are some of the ones you're looking forward to the most? I'm looking forward to John Fowler today because he is going to be a guest worth talking to because he has the sun background. Spark is rearing its head. People are forgetting about UNIX, right? So UNIX has been around. UNIX is, if you look at what Larry Ellison is doing, he's essentially bringing the best of UNIX into the engineering system. Steve Jobs did this with Next. The reason why Max don't have viruses because it took basically the UNIX operating system and put on the desktop. Larry Ellison is taking the best of UNIX and putting it into his engineered systems and then integrating it into a modern architecture with software. So to me, that is going to be a thing. I want to hear what Fowler's working on. And obviously we're going to have the keynotes, Larry's key note today. I'm really interested in hearing that. Mark heard, I want to hear the product update from Mark on the go-to-market, some of the sales motions, some of the customer activities. And Thomas Currie, I want to hear about the product stuff. So, you know, those are the big things. I'll see Dave Donatelli, he will be a big guest on Wednesday. I'm looking forward to that as well. Awesome. So again, wall-to-wall coverage today, through the end of the day Wednesday, go to siliconangle.tv slash o-o-w dash 2015. Also keep an eye on our Twitter handle at theCube. We'll be giving you lots of updates, pictures, behind the scenes, all the fun activity. Well, John, are about ready to go? Yeah, ready to go. Go to crowdshot.net slash o-o-w-15 and join the conversation. We're going to kick this off right away, right now. Thanks for watching. We'll be right back with more, live on Howard Street is theCUBE at the Oracle Cloud Plaza. On the middle of the street here, we'll be right back with more after this short break.