 Live from San Francisco, extracting the signal from the noise. It's theCUBE, covering Oracle Open World 2015. Brought to you by Oracle. Now your hosts, John Furrier and Stu Miniman. Okay, welcome back everyone. We are here live on Howard Street. This is Silicon Angles theCUBE. It's our flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier, the founder of Silicon Angle. I'm showing my co-host Stu Miniman with wikibond.com. He is the Cloud Infrastructure Analyst for our research team at wikibond. Our next guest is Andy Mendelssohn, who's the Executive Vice President of the Database Server Technologies Group at Oracle. Welcome to theCUBE. Glad to be here. So database been around for a while. For Oracle core product. Obviously building on that here. Congratulations, that was fun. It is the core product. And the transformation of the database has been pretty spectacular. Six years we've been covering Oracle Open World. It's been interesting to see. So I want to get your take on that before we get into some of the questions that we want to get into is, what has been that transformation in the database group? Because now with cloud, everything's data driven, right? Everything's got a piece of data. How are you taking that core database transformation? And what does that mean for customers? Share your insight there. Yeah, the big thing we've been doing, like you said, database has been around at Oracle for 30 years now. It worked, right? And over that period of time, the computing, you know, we've gone from one computing era to the next, you know, mainframes and mini computers and TCs, and now cloud, you know, cloud and big data is the next big thing. And so we've been navigating these transitions for years. And the key thing we do is, we look at the technology landscape, you know, now cloud, now, you know, in-memory database things, we sort of, you know, convert the database, re-architect the database for the next generation, and we take advantage of what's going on. We meet the requirements of cloud, things like in-memory, technology, big data analytics, and we do it in a way that doesn't require customers to change a line of code. All those applications that worked in the previous generation, they're going to be moved forward to the cloud. It's the big thing Larry talked about, right? Hybrid compatible cloud, right? Not a bad strategy, leverage code. That's right. Every generation builds on the code we'd built for the last generation, right? Well, let's get into that conversation before we get into some more of the philosophical database migrations because it's an interesting market with cloud. There's a lot of opportunities for customers. I want to get into some of the news that you covered in your session. Give us the highlights. Yeah, so the big news is around cloud and big data analytics. So for cloud, we've introduced a number of major new database cloud services. What we think we have the broadest portfolio of database cloud services on the internet, there is out there. Today, you can go up to Amazon or Microsoft Azure, and you can get a nice departmental database, MySQL, SQL Server, whatever, and run on commodity infrastructure. We've got that. What we've added just now is we now have announced our Exadata service. Exadata, as you guys know, I think is the biggest, baddest infrastructure for running database, optimized for database, high performance, high availability, high security. We've got that up on our cloud now. And this means the enterprise customers can run everything, right? It's not just the departmental stuff. They can run the mission critical OTP systems, biggest data warehouses, petabytes of data, everything they want to do on-prem, they can now run on our cloud. What is the driver for that? Because that's really compelling. You talk about Exadata in the cloud, you're moving the same code base into the cloud. I mean, that's pretty compelling. We talked with the SEM guys. It's like, okay, that is a hard thing to do. Larry mentioned that piece up on the keynote on Sunday. It's kind of a big deal. I mean, it's really hard to do. But what does that mean for customers? And what's the driver for that? Is it technology? Is it just the CAPEX, OPEX equation? Or is it both? And share some color on that. Well, yeah. Well, cloud is, of course, all about lowering costs in two ways. There's CAPEX in the sense that they can, we can deliver on the cloud a little lower hardware cost than you can on-prem. But OPEX is the big thing, right? Now, we're taking over running your infrastructure, we're running your storage, running your networking. And as you move up into database service, we are first automating. We provide two classes of service. One where the customer manages the database. He still can provide the DBAs on the cloud. And then we have a fully managed capability where we're managing everything for you. And so as you're, look at who's adopting the cloud. The smaller guys, small to medium business customers, they don't have sophisticated IT, they don't want DBAs. They're the first guys going to the cloud because they want us to just take over all the IT operations for them. And they're happy about that, by the way. They're like, hey, run it for me. Yeah, and I think the big thing that everybody's trying to do on the cloud now is trying to get the enterprise customers up there. The enterprise customers, they've invested for years and years in their data centers and their IT staff. They're not moving as fast as people might think, right? Larry talked last Sunday about how it's going to take a decade or two to get these enterprises to transition fully over to the cloud. And that's why we're doing this exited to service because this really takes away a lot of the blockers for why the enterprise guys don't want to go to the cloud. We can now say, if you're running a database application on prem, every one of them can run on our cloud. That's not true today on the other clouds, right? So Andy, one of the things we look at, one of the opportunities of the cloud is once I'm there, there's other services, there's other things I can do with my data. It's not a static thing and I'm just curious what opportunities you see and how does Oracle compete against some of these big clouds that are adding lots and lots of new services pretty regularly. Yeah, well we are, I mean, if you saw Thomas' keynote this morning, Thomas announced a whole boatload of new services. The development group at Oracle is completely focused on delivering new services on the cloud. We're also, of course, innovating in the core technology, like core database technology as well. But my group has added the Exadata service is the latest thing. We also announced production availability of our big data cloud service, where we're delivering a Hadoop and Spark on the cloud. And on top of those services, we're going to layer other capabilities, like big data. What's missing there is the tools for analytics, solutions around analytics on top of the big data, they're just not there out there in the market. We have brought something called big data discovery, which runs on our big data cloud service and gives people a nice solution for exploring data, doing some analytics on that data. And we have also delivering something called big data SQL on our cloud. This lets all the existing tools that have been written for BI and analytics over the years, Tableau, BusinessObjects, Oracle, BIE, they all can now work on top of big data on our cloud or on-prem as well. So that's really a big deal in my mind. I think that's one of the things in between the details that people are, I don't think they're seeing how massive that is, because when you can connect your big data cloud with a database cloud, that is a big f-ing deal. And I want to ask you, is that available today? Can I connect the big data cloud and the database cloud together, or is it just waiting for the apps to do it, or is it the market forces, is it Oracle? Can you guys do, can I connect the big data cloud and the database cloud today? Yeah, so in the Oracle cloud, we have our standard cloud services, we have the new Exadata service, and for big data, we talk about a big data management system that consists of two pieces. There's the data lake, which is running on the Hadoop Spark infrastructure, which is our big data cloud service. We got the massively barrel relational database for doing high-performance interactive SQL against petabytes of data. Those two services integrate together, and you can run this big data SQL capability, I mentioned on top of it, and you can look across data that's stored in Hadoop, data that's stored in Exadata in this case, and run parallel queries that didn't join together data in both sources. So that's working today. That's available today. And then we will soon, we've announced it, but we're shipping probably a little later this year, early next year, this big data discovery capability that's going to give you data discovery and analysis against about all this Hadoop data that's in Hadoop. That's going to be a killer app right there, I'll tell you why, the app market is now starting to develop on Hadoop. We're starting to see the POC now go into production, but we still haven't found the apps out there. The tooling and the apps need to come faster. So, can you share some color on that? Is that more of a, you guys just need more requirements? You have a good idea on how it's going to look like, I was just going to ship later in the year. What are the pacing items for that piece? Because that's really going to have the data lake or data swamp, however we want to call it. There's a lot of stuff just being stored on Hadoop. And that's kind of just, if you don't know what to do with it, throw it into Hadoop. But now I want to get value out of that data. Yeah, I think the platform part of Hadoop is pretty well established now. HDFS has become a pretty well accepted technology in IT on Brem and now in the cloud. I think the layers on top are still in flux. Originally they said we're going to do this map reduce thing, it's going to be great, and it turned out only PhD computer scientists knew how to program that stuff. And then they sort of said SQL, SQL is the answer. And we agree with that, you know, SQL has been the answer for relational databases for 30 years now. And so what we're doing is we're saying, yes, SQL is the answer, but you don't need just SQL on Hadoop. You want SQL across all your big data that's stored in Hadoop, no SQL databases, Oracle relational database. And you want to leave that big data in place where it is, you can't move it, it's petabytes of data. And you want a massively parallel capability like big data SQL that lets you integrate across all that data. So Andy, when we talk to our user community and we talk about the cloud, security is obviously one of the top issues that they look at. What we really found is people that hadn't dove into the cloud, they're like, oh, I don't know if it's going to be secure. And a lot of times it's also kind of the governance and compliance issue. But once they've used the cloud, they're relatively happy with security. They kind of understand, wait, I haven't done a great job in-house. You know, when you look at security in the cloud, where does it sit in your mind and how does that tie together for us? Yeah, no, I think you're exactly right. Today, if you talk to, especially the enterprises, and you ask them, why aren't you doing more in the cloud? It's like security, compliance regulations, it's just not ready for us. And I think that's largely true, that it's a maturity of these cloud technologies. Larry talked about a lot of stuff we're doing on our cloud now with encrypting all the data. That's something new on the database side. We're going to make it possible so that the keys for the encryption are not available to the Oracle administrators. We're going to let you keep them on-prem where it's nice and safe. And you can always turn it off if you... That's the vault, right? Yeah, the key vault capability Larry talked about today. And the audit vault also will let the audit trails can be pumped off the cloud onto your-prem so you feel safe that those guys on-prem can't cover their tracks on the audit trail. So we're sort of putting all that stuff in place. And I think in a couple of years, the tide's going to turn. And it's going to be the completely reversed. The reason you go to the cloud is going to be because it has better security than I can do on-prem. And we're in that transition now. Well, that's where encryption could be really a handy factor, it doesn't matter where the workload is. You know, it really doesn't matter. But I do want to ask you about one thing and bring this up, because we were talking about that on the post game or post keynote coverage. We just had was security has always been a big deal, but the overhead involved to deploy this kind of security, just go back like just five years, 10 years, go back 15, share some color on the difference between now and then, just from a pure overhead standpoint, because I said the application layer and at the database layer, there was huge trade-offs. It was academically possible to do security, huge cost and penalty. Larry mentioned that on stage. Elaborate on that point. Yeah, so I think you're referring to encryption costs. Of course, you know. Yeah, encryption. You know, vanilla security, access control, that's cheap, no problem there. Encryption, you know, this is either these mathematically secure algorithms that are very CPU intensive. They have been a big barrier to people encrypting their databases for years. And, you know, that's why, you know, Larry was talking about well, security encryption to be mandatory. Well, it wasn't mandatory because it was so expensive. But now that we've, you know, Intel Oracle, we put encryption right on the chips. We can encrypt and decrypt data at, you know, in real time. Encryptions no longer needs to be optional. It should just be mandatory, right? I got a comment on our crowd chat. I want to get your take on this because it's kind of cool, you know, we've seen the cycles of computer industry. One of the comments was when he was actually showing some of the demos up there and then seeing the systems, my inner geek is coming out. And that was one of the comments. Talk about the culture within Oracle. Are people kind of pinching themselves, kind of like geeking out on the fact that all this awesome hardware that you inherited with the Sun acquisition is actually now full bloom? And it's like, it's like a hot rod. It's like, are people jazzed? Like, man, we've got the new toys, the performances there. Because if you look at the performance, I mean, it's just pretty intense. Now, the software on Silicon is now ready for prime time. Are people kind of geeking out internally on this, software and hardware, or not? Or are no one like rolling with the... My group is the core database software group. And so when this concept of engineered systems came around, it was actually before we bought Sun. And if you remember, the original partner for that was HP. I do remember. Mark Curd was running HP then and Larry and Mark were buddies and it was great. There was some special processor that was being built. For that too, I remember that one. Yeah, my guys really enjoyed getting into this engineered system business because we're like SIs and now we're designing these very complex combinations of hardware and software. And it was something new for us and exciting. And so it has been exciting for us, especially in the database group. You know, we're software guys and now we get to do more than just software. We get to build these integrated systems for engineers. Kind of helps also on the retention, also hiring new people. You can throw good challenges at folks to say, hey, look, this is what we're trying to do. It's a hard problem to scale this up. Yeah, but in the database space, I can tell you there is no shortage of hard problems. I mean, we've been solving hard problems for 30 years and there'll be another 30 years. Look, 30 years ago, it wasn't as cool as now to be in the data business. Data is the central and that's really the theme we've been hearing. So my philosophical question for you is, as data is at the center of the value proposition, in all aspects of Oracle Cloud, from marketing cloud all the way into the value chain, the modern supply chain side of things, the database is the core. Back down to the database. It's the data and the federation of the data, opening up the data really creates some opportunities but also some technical challenges. Can you share some insight into that trend and what it means for customers? Because now data is at the center of the value proposition. It has to work with a lot of different systems. You got to have identity. How do you make all this stuff happen? It's been challenging. Can you share some insight into that? What do you mean for customers? Yeah, there's the core database technology that we're working on and we sort of go with the flow of the computing generations. We have to make sure we work well on clouds and so we've done this thing we call the multi-tenant architecture for Oracle Database which is explicitly designed to make it possible to manage and operate, potentially millions of databases on a cloud like with a small limited amount of staff. It's a huge challenge. The other big area of space is this whole analytics space. People call it big data but it's all about analytics and the big news there is we're taking advantage of this trend that memory is becoming cheap. People are building these servers with terabytes of memory now. You can put the entire database in memory and you can run it memory speed. And so 12C, we added this in-memory column store capability to make it possible to do real-time analytics against your live transactional data and there's a whole stream of new in-memory technologies that are gonna be coming out over the next few years. Is that the 12.2 beta? Well, that shipped in 12C release one. Okay, the column store. Yeah, the column store and yes, we just announced 12C release two going into beta and that release is gonna be a bigger and better version of multi-tenant capabilities in memory database capabilities. Those are the two main thrusts of that release. So the big data is a big deal. I want to get more drill down and to get your thoughts on the management system there. What does it mean? Can you just lay that out one more time? This big data management system because I think that's going to have a huge adoption. Yeah, yeah. So the interesting thing about big data is it's become a consumer word. People on the street think they know what it means and it just means data, right? There's lots of data. Now like you said, we're in the information age. There is data being produced a thousand fold faster every year than the year before. And it's like, there are sensors, oh, everybody's got their little phones and... And another thing, people on machines. Yeah. Machines, yeah, cars with computers in them that are driving themselves, right? And so the big opportunity is can enterprises leverage that data, learn more about their customers or more about what's going on in the world with the cars on the highways or whatever and use that data to make more money. Upsell various things. Know more about what you, John, want to buy and send you targeted ads, which I'm sure you're getting all the time. And that's what it's all about. It's use all this data that's coming in and use it if you're a business or a government organization to be a more efficient, effective... That means the data's got to be open, not hoarded. That silo model is going to make that happen to know that the persona-based interaction engagements requires a kind of a horizontal data plane, if you will, or some sort of data modeling. I mean, how do you see that? Yeah, well, you know, there's a lot of data out there. You know, all these companies like Facebook, you know, they want to start have a business model around selling that data. And I don't think that's all been worked out yet. You know, Oracle's actually in this data business. I don't know if you've talked to anybody in our data as a service group. We have. But there's, you know, they're monitoring basically everything going on in the internet, watching your every clicky stroke on the browser and they're helping people target advertisements, you know, at you, based on what you're doing on the internet. It's like a scary little bit, you know? And thanks for coming on theCUBE and sharing your insight. I know you're super busy, senior executive at Oracle and taking the time really means a lot to us. I'll give you the final word. Share with the folks out there that are watching who aren't here, aren't part of the 60,000 people on San Francisco. What's it like this year at Oracle, looking back at just five years ago when we saw that major pivot or that shift from Larry now the company is moving more and more and just in the cloud hard right now. What is the big takeaway that you would like to share with the folks? Well, I think the big takeaway from, you know, I'm the database guy. So I'll give you the database view of the world is, you know, a year ago, and Larry mentioned this in his keynote, on our database cloud service, we had 87 customers. You know, it's sort of embarrassing, but it's true. We've gone from, you know, 87 this year. Now we've got thousands on our database cloud service and we expect, you know, a year from now we'll probably have 10, 20,000. So this whole movement to cloud is really exploding. We think we have a great service now that's the broadest in the industry and we're expecting huge, huge growth over the next few years. And just one more thing, final, final question. You know, prior to Oracle, I was telling all the other analysts and folks in the press, how come you don't have Oracle in the top three of the cloud players they had? You know, AWS, Azure and Google. Yeah. Google was kind of like, you know, in the, you know, other tier and so what do you say to those folks? Well, I think they're in the top three and you've got, you know, in size. Yeah, well, if you look at the SaaS business, we're already in the top, you know, two, three there, whatever, and Larry talks about these three layers, you know, moving down from SaaS, we go into past. It's true. I think, you know, like I just said, our past business is just maturing now. We've got a really broad offering. I think we're going to explode. We're going to, you know, if we weren't three before, we'll be next year, we'll definitely be in the top three, maybe top two, right? Andy Mendelsohn, executive vice president of the database server technologies group. He's the man behind the core jewels, the kingdom. He's to the kingdom. You got all the jewels in the factory. Congratulations to your success. And thanks for coming on theCUBE, really appreciate it. Go to silkenangle.tv. We have podcasting now. The guests of the week, chosen by the crowd and our editors gets their own podcast. 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