 Back at Oracle Open World, I'm John Furrier with SiliconANGLE.com and SiliconANGLE.tv and I'm here with my co-host. I'm Dave Vellante at wikibond.org and John, we are waiting for the big man, Larry Ellison. We're waiting for the volley, the return of serve. Yeah, so we're going to be doing something very meta as they say. We're going to be tweeting live on the air on the cube of the Larry Ellison keynote. So Larry Ellison expected to come on in 30 minutes. They're going to get through the normal show horses at Oracle, the normal guys on there that are ahead of Larry. They're the warm-up band, if you will, for Larry. We already had a nice warm-up this morning with Mark Benioff, who was ousted out of Oracle, literally kicked on the curb by Larry Ellison last night. He had a tweet storm flash mob at the St. Regis Hotel. We broke the story on SiliconANGLE.com and then picked up by the press corps and he had a huge guerrilla marketing activity at the St. Regis and Benioff put his best stand, made a big stand at the Regis and Dave, that's exactly what happened. And now Larry Ellison, who is not going to give up the microphone, as we say, he's going to have the final word over Benioff and everyone else here at Oracle Open Word, which historically Ellison gets the last word in and usually his keynotes are very dynamic, very cool and not as dry as the opening keynotes. So we're going to expect that. Obviously we're going to be running off the Wi-Fi and live tweeting. And we just had a great guest on prior to Oracle and that was Pauline Nist of Intel and she was talking about the future and she talked about the present and she talked about the past and her experience at Tandem and Jack. She said the horrible storage stack and then she said something else that I didn't write down but it was incredibly insightful and I have to go back and watch the tape. Optical coming to microprocessor design. But pay attention to the developers was really what one of our big messages was. That's where all the innovation is. And the Xeon obviously is a very hot product for them. You're watching right now the Oracle Open World keynote that's going on right now. The final closing keynote for Oracle Open World. This is SiliconANGLE.tv's flagship product, the Cube, where we go out to the ground and talk to the smartest people and extract the signal from the noise. We go in-depth coverage, we go to the most important tech events, talk to the smartest people we can find and provide commentary, opinion and analysis and insight into the trends, into the stories of these big events. And Oracle Open World is obviously huge, shutting down the streets of San Francisco with all these tech geeks in town, doing biz dev, doing business. Oracle is a monster of a company, 800 pound gorilla, Larry Ellison, has done an amazing job over the past few years. Turn this company into an old database company into a series of acquisitions, lining up against the competition, IBM, SAP, and all the startups. And Oracle just continues, Dave, to perform. And Larry Ellison, I think, looks at this as a boat race. He lines up the hardware now in that he's got Sun. And that's going to be a killer opportunity for him. Yeah, it's interesting. I mean, as you know, John, in the old days of the computer industry, the IT business, hardware and software were together, IBM's mainframe, and then Intel and Microsoft changed that, and now we're seeing it come back together, aren't we? Yeah, and what Benioff's really afraid of and why he's going crazy is Oracle has a software stack now that has IBM looking over their shoulders. If you look at what Oracle's done, they've literally transformed this old, boring database company into a monster of a machine where IBM literally is looking over their shoulder. Oracle's coming down the tracks, Dave, pretty fast, and they can keep this going and pound on the analytics and get a mobile story for next year. They're going to have really something to talk about. Yeah, I mean, I think undoubtedly Oracle is IBM's biggest competitor. Sam Palmasano said it. We worry about Oracle more than we worry about any other competitor. We said we don't worry about HP, they don't invest in R&D. This is when Mark Hurd was running the company and Oracle does, and it's true. They spend over $4 billion a year. And we heard Mark Benioff today say that Oracle is essentially, Oracle Open World is all about the next generation mainframe. And he said, that's not what we're about. You've seen this, I'm sure, by now, but for those of you who might not have, too innovative for Oracle Open World. Question mark. Mark Benioff, basically keynote canceled. By Ellison, by Oracle, Larry kicked me off the keynote, basically is what he said. He moved it across the street. We were there. And his message was good. I mean, it was given that John that he had basically about eight hours, 12 hours to plan for this. I mean, he was planning on doing a keynote in front of 10,000 people. Next thing you know, he's doing an intimate 100 person round table here. I'm sure his team pulled an all nighter yesterday, getting everything ready at the St. Regis and that was huge for them. It was like a protest rally. It was really fun to watch, fun to be part of, fun to go in there and see the line of people around the corner. Benioff, I mean, he's punching to Larry because he knows that he's under threat and obviously the difference in culture is Benioff's a pioneer and Larry's not even a fast follower but they have the muscle and obviously market power to destroy a market if he wanted to. So, interesting fight there amongst egos. Yeah, so let's check out what's happening in the market today. We're seeing a rebound from yesterday's sell-off. Oracle is up nicely. We're waiting for Larry Ellison, Salesforce, Symbol serum, Salesforce is down. Salesforce is down. Salesforce.com not set for pricing change so evidently there was a pricing change in the works not ready to happen so on a big tech day, Salesforce is down so a couple of punches in the stomach for Benioff last night and today. But good company, innovated, created essentially the software as a service market. Some people would debate that but I think it's true and at least as we know it today and migrating or transforming into more of a social enterprise player is really what we heard today, isn't it John? The social analytics is going to be big but not big this year. It's going to take some time to develop. Salesforce knows that, hence the marketing strategies to create noise and buzz. There's not a lot of people buying social. They're giving chatter away for free hoping that it gets adoption. Ultimately not a lot of licensed revenue coming in off chatter from the people we're talking to but good strategy, seed the market with chatter, get those tools out there but Salesforce really has done a good job in reconstructing their platform. That's the key takeaway from Dreamforce. Why, what are the adoption barriers, John? What do you think needs to be done before that vision can become a reality? Well I was talking to Jim Lundy from Akron and Research and he's been ex-gardener analyst and really he and I both agree and I pointed out that the app side is key so the application side Dave is really withholding it back but what Salesforce has done with Heruku is establish a platform. Their developer story is probably the most important part of their story and something that they're really not putting a lot of emphasis on in my opinion. They're putting a little bit more to it in the buzz trying to play to the crowd, play to the press. I think they got to really drive that home big time. So Oracle CMO is up on stage. Paul Gossingen, he's out here. We're waiting for Ellison. ETA is what, 330, local time, 320. About 20 minutes we're gonna see Larry. You know this is last year what Ellison did is he basically used this platform to essentially throw the competition under the bus is what he did. He basically talked about his yacht, that's right, and the pride around that yacht and basically took it as an opportunity to put forth the Oracle Sun message and then give a lot of hyped up statistics around how they're faster, better, et cetera and took some potshots at the competition. One of the things I wrote John at the time was with friends like Oracle who needs enemies and you see that in the partner ecosystem here. Everybody loves being here cause there's a lot of business being done but at the same time they're kind of always looking over their shoulder. I mean look at Oracle as a machine they got a lot of business to be done there. In all the top accounts clients deal with Oracle and they're checking off the checklist against the competition and also with sales inhibitors. So I don't think there's anything that can't be gotten by Oracle in a big way and in Cluster, Clusterics for example is talking about, you know, so little dribs and drabs to them is, or big dribs, big deals to them is like a rounding error to Oracle. So that's a situation where people are gonna get a position but ultimately will be rolled over. John you didn't have an opportunity to hear the keynote this morning from John Chambers because you were getting ready and elbowing your way into the Salesforce event but Chambers gave a keynote this morning that was okay but frankly I think that a lot of the discussion that we're hearing is moving past that sort of network centricity that he talks about and certainly gave good nods to the cloud and mobile but generally speaking it was just okay. It was not vintage Chambers. What soundbites do you think are highlights for us to talk about? Let's talk about the Twitter stream. We're gonna pump some tweets on the Twitter stream so what we should be looking at is, as a pre-warmup and we've got the speakers here no one's really listening to, what can we pump up on Twitter right now? Let's get some soundbites from our guests. Let's review who we talk to and let's take some of those soundbites and let's put them on the Twitter feed. Well, I think that, let me start with Benioff this morning. He started off, he went right for the jugular. He said Oracle Open World is about the next generation mainframe computer. That's what Benioff said. He said Oracle Open World is all about the next generation mainframe computer and he said in his opinion that's not the next great thing and so what does he mean by that? Essentially, Oracle is touting very large systems, integrated hardware and software, very mainframe like, extremely reliable. Want to run your business on it, the payroll, the accounting, the finances, the HR, very solid. A lot of the world's transactions are running on Oracle but Benioff was talking about getting away from proprietary hardware and software and moving to the cloud. So he said, quote, I'm not here to sell more computers and we know what Salesforce is all about. No software, no hardware. Well, they get the SaaS marker but again, the platform is the key to Salesforce. What they've done that has been incredible is transform. They were cloud before it was cloud. Mark Benioff's got a squagger, smart guy. They've got a platform and that's what I'm looking at right now and again, my message to Salesforce is, don't play up to the buzz so much. You got to sell some product, give away chatter. I think that's a good move. Give away these tools, seed the market but really amp up and double down, triple down, ride the developer community, get Heruku moving in the right direction and they are, they're moving into new languages, new frameworks and the key to Heruku is going to get the automation component down. Look at Puppet, look at Chef, look at these companies. Force 10, these kinds of automation of the hardware network convergence level will be key. They do that, they'll win the day. Salesforce can crush it and go big on that horse. Yeah, you were talking about Heruku. You really liked the messaging there as did I. Why don't you explain Heruku, John, for the people who might not be familiar with it? I mean, Heruku is basically a big power cloud and thinking of it like a utility cloud that allows software developers to get up and running with applications. So let's have an example. Let's just say you and I think, hey, you know what Dave, let's build an application. And you say, you know, it's some sort of social analytics, cool thing that we can do. You know, we're working on things like that but let's just say we have an idea in the garage and we want to build that out. We write some code and then we start pumping it together. We start writing the code and we put it up. We need to put it on some servers. So normally you go to amazon.com, you go to these places and you provision web servers, load balancers, do the hardware and all that stuff. With Heruku, I can go to Heruku and basically get all the framework, all the software right there, program, and provision the code to cloud really, really fast and allow it to scale. And as the cluster CTO pointed out, ex-ISILAN guy is people can be successful doing that. What happens is they become a victim of their success. What Heruku can do is allow that to scale and that is where Salesforce can bring that app into an ecosystem in a marketplace a la Salesforce.com. So what Salesforce.com becomes is a distribution platform for those apps in a way kind of like the iTunes app store, Apple app store, but for the enterprise specific applications. If they do that properly, the marketplace will define the hot products. They don't have to get this prefabricated to software models down. That's why I'm really not thinking Jive and Yammer will be that successful because they got old outdated software models trying to vector into a market that's changing every day. So having the developer community tied into your platform, you get real market intelligence around what the demand side of the equation is and you can match supply of feature sets to that demand. So I mean that metaphor of the app store for the enterprise is obviously very powerful. We heard it from customers at Sapphire. We certainly heard it from customers at Citrix and Citrix Synergy. We really haven't heard that from Oracle. We tested it at VMworld, but really none of those companies are really doing it. Heroku you're saying is in maybe in the best position to deliver something like that from a platform standpoint with Salesforce. Yeah, I'm getting some tweets here. People are saying I kind of just tweeted mobile. Oracle has no mobile message here. This guy just sent me a message. Check out this app. I'm going to pull it up right now. Where is it? Yeah, so we talked a little bit earlier about Oracle's mobile strategy. Oracle basically has a mobile pavilion here. Six companies participating, very small participation. Jabba, the company that does the earpieces and Verizon is here, the carrier. Not a lot of innovative software. Now of course across the street of Java one, there's all kinds of mobile action going on but it's really disassociated from this core Oracle open world crowd, isn't it? So let's see, who's up on stage now? This is somebody from Oracle or? This is still the Infosys segment. So Infosys like Salesforce plunked down a big pile of dough. I guess it's going for a million bucks a pop, the keynote. That's at least the urban legend. So a pretty profitable show, I'd say, Oracle open world. And this is a good one. This is a good spot to be in because it's right before Ellison. So, you know, what better spot to have and you certainly wouldn't want to go right after them. And you certainly wouldn't want to go Thursday morning at 8 a.m., which is basically what the offer was to Mark Benioff and salesforce.com that Oracle put forth. And of course, Benioff and company chose to decline that and do their own thing. Okay, we're here live, Oracle open world, 2011. We're wrapping up three days of coverage. I mean, it's just been amazing here. We've got a great audience. Thanks everybody for watching. We're going to hang right here. By the way, I love how Oracle has the subtitles on the videos. I think that's awesome. I think they've done a good job. It's really helpful in the user experience. Yeah, it would be... I'm not seeing it on YouTube though. It's not on YouTube and you don't really know who's speaking. Mark, where'd you get those subtitles from on that Bright Cove player? Okay, got it. Yeah, so as I say, we're waiting for Larry Ellison. We're going to be live streaming that. And as always, John Furrier and I would be doing commentary. So, we are live at theCUBE. This is our flagship telecast of Oracle Open World 2011. The Cube is the place where we bring in guests. We share knowledge with our community. So thank you very much. I mean, a lot of this is new to you folks out there. Many of you who might not be familiar with Oracle and the Oracle community, check out siliconangle.com, which is our site, SiliconANGLE TV, servicesanglewikibon.org, which is where we do the research, sign up, and ask questions. We'll try to get answers. Dave, just some news that we're going to highlight. Justin.tv has, Justin.tv has two million downloads of social cam. That's big news. Xbox News, where Xbox has, have rights for TV shows all over it. AT&T, Verizon, Cisco, Samsung, big players are here at the mobile live pavilion. A lot of UCC enterprise related stuff here at Oracle on that mobile. Okay, so we are live here at Open World, and John, the prediction is that Larry's going to basically slam Benny off in his own way. Not going to mention him directly, but do you think there's any chance he's not going to somehow, some way do that? There's, I think there's some definitely slams going on. And one of the things that Mark Hoppers is pointing out to me is that there's some new hashtags that have sprung up on the Twitter feed. Some gorilla hashes. Next slide is one. And one is O-W-W, not O-O-W, ow. And then exodump. That was, I think, Ray Wang come up with that one. Love the Twitter feed, it's looking good right now. A lot of slamming going on. Great commentary coming in off the Twitter feed. Where's this comments about fusion? Yeah, no, I was not talking about fusion. Alex Williams saying, I feel like we're waiting for the next round of a heavyweight fight. Ladies and gentlemen, Larry Ellison. Ladies and gentlemen, boys and girls. Are you ready to rumble? Are you ready to rumble? Yeah, the suspense is building, people want to see what happens. Do you think there's any chance he's just going to ignore it? Yeah, they got to throw the boring guy up there because Larry's got to be compared. It's like the just classic warmup band. Get someone out there who's going to be like boring, barely, blah, blah, blah, blah, blah. Larry comes in, yeah, boom. Home run. Like you said, John, he's going to be rested. He came in Sunday night from a son's wedding, is that right? Yeah. He was a little tired. And he'll be rested in good shape, no doubt. Well-dressed, as always. Larry Ellison, born in New York City, moved to Chicago, grew up in Chicago. Married, divorced four times. Wife, I don't know what the story is there. Is the YouTube feed lagging, Mark, versus your feed? Which feed do you have up there? Yeah, so a lot of what we expected here, John, a lot of exomega marketing, Exolytics is new, Oracle's response to SAP's HANA. I think I'm going to move to the Oracle site for the keynote. So, what's that? I'm going to move to the Oracle site for the keynote. Yeah, okay, so just kind of recapping the event here. And a lot of partners here, we saw, I think a bigger presence from many of the partners. I mean, I think I heard somebody from EMC said they hadn't done a keynote here in 15 years. NetApp, Big Booth, had Billy Bean come in, great marketing, all the service providers. I mean, this is a huge show for the Accentures, KPMGs, Deloitte's of the world. They do a lot of business with Oracle, particularly with the vertical segments of Oracle, the financial services and the healthcare and the like. And so, big, big show for these guys. It's like they're Super Bowl. And a lot of activity going at night, a lot of parties, a lot of suits, many, many CIO events. Despite all the speed and feed focus, it's interesting. There are a lot of senior executives here and you always hear that companies should focus less on speeds and feeds, talk about the business value. That's not what we've heard from Oracle. It's mostly been a bigger, better, faster type of discussion with certainly some proof points from customers on business value. But generally speaking, a lot of very hard core specsmanship, rinksmanship, benchmarking. Very unlike SAP Sapphire, John, at Sapphire, we heard a lot more about business value, enabling new types of applications, enabling mobility, certainly some technology, some speeds and feeds around HANA and what the benefits of there are, but not nearly as much here. And that's, I think, as you pointed out, Sun's influence on Oracle. Larry's happy to have hardware as part of his portfolio. It's like a trophy. Okay, so... This is good information that they're giving this demo, but it's product demo after product demo and this is exactly what the negative reactions were to the Larry Ellison keynote, where he didn't produce the vision. So his opening keynote was not really a visionary keynote. It was clearly the Sun machines and the speeds and feeds. That was all about what they wanted to do and Larry got slammed for that and the teleprompter failed. And you think Infosys would have taken some learnings from that? Well, I would say that, I mean, this is part of what they do. I mean, if I'm the organizer, you want to make the star look good. Maybe, you know... Yeah, yes, you're saying they're happy about it. Like when the Rolling Stones come on stage, Dave, you know, they don't put, you know, better music in front of them. They don't put the who in front of them, right? Yeah.