 Live from San Francisco, extracting the signal from the noise, it's theCUBE, covering Oracle OpenWorld 2015, brought to you by Oracle. Now, your host, John Furrier. Okay, welcome back, everyone. We are here live in San Francisco on Howard Street for Oracle OpenWorld's special presentation of theCUBE, SiliconANGLE's flagship program. We go out to the events and extract the signal and noise. I'm John Furrier, founder of SiliconANGLE. Joining me by next to gas, Prakash Ramamurthy, Senior Vice President Systems and Cloud Management, basically Management Cloud at Oracle, and Mary Johnson, Turner Research, Vice President and Enterprise Systems Manager at IDC. Welcome to theCUBE. Thank you. So I had to take my glasses off to read the intro there, but I want to just get your take on it because we just had to admit on, slavery, talking about the cloud. And one question I didn't get to ask him was the success. Mark Curry was talking about the pipeline of customers already in motion on the cloud. So the question I wanted to ask him, which is great timing for you guys, is how do they integrate it, which he talked about, but then how do they manage it? This is a big issue. And he easily uses something that he was generally throwing around there. So what is the status of the management cloud? Because that will be a differentiator, like security end to end is a differentiator. Management certainly will be, to me, not just table stakes, truly differentiated. Absolutely. I think we are here because we are launching it today, actually, the management cloud. And the interesting thing is this, which is today, if you look at it, whether it's on our cloud or on premise, the rate of innovation is very, very robust, right? I mean, you have a mobile phone, you're seeing your apps getting refreshed twice a week or even faster than that. So what it means is you need the next generation monitoring solution that can monitor all of that. So our goal with Oracle Management Cloud is to help you manage and monitor your solutions independent of where they're deployed. If you deploy it on Oracle Cloud, it'll come baked with it to be able to monitor it right from the get go. Or if you still have it on premise, we will allow you to monitor it and break down those data silos so it's very effective. So like you said, it's very, very critical that people look at what their challenges are today in terms of proactive monitoring and troubleshooting to get to the next generation solutions we're providing. Mary, I want to ask you a question on the trends, but before that, I want to just say that one of the things I love about doing the Oracle Shows are six years at the cube here is that for an old timer like me, who's seen the client server, lived the client server revolution, which is now kind of almost a point in time now. It's almost, it's over. Now we're into the cloud, modern era. It's interesting to see because the same things keep coming up again. It's like the platforms, the tooling. So I got to ask you the question on what is the key trends that are driving this new application space? Because if you look at the client server, one of the big things that really was huge was the application market. I mean, now, granted, it was siloed up by vendors, but now with open source, there's a huge application boom right now. That's going to impact IT operations. Sure, I mean, I think that if you look at it, there's been, like you said, a couple of generations of technology. We had mainframes, things changed really slow, right? Then we had client server, which was to give business units and developers more control, and things started to speed up and change a little more quickly. But now in our current cloud-native, cloud-based development, real-time, microservice, open source-based kind of world, the rate and pace of change is almost constant. You're seeing so many organizations that are moving to continuous delivery modes, much of it hosted on public cloud or hybrid private public cloud, and they're changing features and functions every day, and that creates huge management challenges in terms of just trying to understand is the end-to-end application performing effectively? Are the end-users getting what they need? Are the business decision-makers really understanding the impact of those outages or upgrades? And so it's very complex, and I think it's raising the set of requirements for particularly application performance monitoring and IT operations and log analytics. I was Oracle addressing these trends because one of the things that people liked in IT like to put things into two camps, rip and replace, okay, or evolutionary development, and we're clearly on the cloud evolutionary because Oracle has, it's not going to go away, right? So you can say Oracle-native is the cloud strategy for all the Oracle customers, but yet now with open source, there's net new applications that do, you got Java, obviously 20 years to anniversary, so there's new stuff going on. IoT is a huge application market right now. I can run an IoT thing in the cloud somewhere else or maybe on Amazon or somewhere else, but at the end of the day, I got to run it through my operational systems, my systems of engagement, systems of record, which is Oracle, right? So is it an Oracle-native cloud? Is it a cloud-native? How do you see Oracle addressing that dynamic? Are they well positioned? Well, I think Oracle has a pretty broad portfolio. They've had, again, from a management perspective, they've had Oracle Enterprise Manager on prem for many, many years. I think that the new offerings that are being announced today really are interesting and that they extend Oracle's monitoring and analytics to a whole range of cloud-based solutions, many of which may not necessarily have been born on the Oracle platforms. So I think it's a good recognition of the need for heterogeneity and the need to recognize that it is gonna be a very hybrid world for many, many years. So I think that those are all real positive factors and then the new releases here. And I mean, we're talking about the integrated past, performance of service and challenge to connect those environments. But on the management side, what are you guys delivering because that's going to be the challenge. Prakash, talk about the specific things that you guys are announcing and delivering to customers today. So specifically, we are delivering three services. First one is around application performance monitoring that allows our customers to stay ahead of their customers and their problems and give them the best user experience and monitor that and troubleshoot that. And then a second service is around managing your logs and extracting IT operational data and business data out of it. Today, if you look at it, the most common thing people do with the logs is to archive them and put it away because they don't want that to interrupt their production systems, but that has a ton of good information. So we have the second service... Data exhaust becomes gold. Exactly. So today, what happens is they just get put away. They get archive and that has real nuggets of business information and IT information, being able to collect all of that and use it for your rapid troubleshooting as well. So that's the second service. The third one is around IT analytics. I call those first two services kind of like the Fitbit for your applications. You're constantly getting vitals out of it and why throw that away if you don't have an issue. You still use it to run some interesting capacity trends and forecasting and all of that. So use your real data to forecast your IT health as opposed to using a spreadsheet with some random data that you've collected in a point in time. So that's what we are announcing. Three services, application performance monitoring, log analytics and long-term trending and forecasting with IT analytics. Well, IT Splunk's been doing some log files. That's how they were born. People splunked their data. Exactly. How do you guys compare to things like Splunk and other tools? I know Tableau is a new relationship that was announced with the data visualization. Larry kind of talked about that yesterday. Talk about that. How people are using that data exhaust? Give me some examples. So the most fundamental difference in what we are doing is this, which is we do not differentiate the sources of data and the classes of data when we bring it to the cloud. So it could be metric data but that you can collect based on your, monitoring your health of your applications which Splunk doesn't do, for example, and then log data but collect all of that and correlate it together so that in essence, what we want to do is this, which is the enterprises today don't have a really a data problem. They have an insight problem, which is they want to be able to just see the right amount of data when they have a problem, not all the data when they have a problem. It depends how you look at the data problem. They don't have a data problem. If you define that as they got all this data. There's plenty of data. That's true. There's no problem, right? No, there's the data problem. That's what I meant to say. No, I know I was just kind of making this fun. It was a good comment because I like that because that is really not an issue. The data is coming and that's a whole nother problem. You guys have scale now with that but the analytics is a big thing. I want to talk about that because it can be problematic. I may talk to some customers all the time and they say, if someone comes in here and sells me another dashboard, I'm going to shoot myself. Exactly. So it's like because, and I said, what do you mean by that? He goes, well, there's so many alarms going off. I don't know what to pay attention to. That's where we're starting to see machine learning from these tools. Can you share any color and what you're doing in that area? Great point. It's exactly right, which is one of the underpinnings for us is to be able to automatically generate baseline and detect anomalies. The last thing, I mean, our products support our own public cloud and I hear from the guys who run that cloud saying, don't just give me another alert. Tell me what I need to do with an alert because I need to be able to dispossession the alert. So what we want to do is to understand the normal behavior of your application and only alert you when there's an anomaly. Okay? So that's part of our machine learning. Kind of prioritization, learning, some learning algorithms involved, understand some pattern recognition. That's right. And only tell you what the outlier is and us determine what the outlier is. As opposed to you setting thresholds for us to know it because sometimes things change. If you are an e-commerce application the day before Thanksgiving, you would have a different pattern than the third week of January, right? I mean, just the way the world works. I want to talk to you about Larry made a comment yesterday in the keynote. He likes to take a dig at Workday. But in a way, he likes Workday because it's competition and also highlights some of the features that Oracle has. But what Workday is actually losing some share to ServiceNow, a company here in Silicon Valley that is an IT SM, IT service management company and they have been very successful with their developer program which actually is starting to nibble away at Workshare's market share because they're building, these developers are building these really focused HR apps that is not platforms, it's a tool. And like an expense report, for example, and works really, really well. But Workday has a plethora of features and they don't always have the best in class features. So that brings up the whole developer angle. And you guys have a story there for developers, APIs, how do you talk to the developers? Absolutely. Can you share? Yeah, absolutely. We have a REST API that the developers can use to collect the data from there into their own dashboards if they want to. And also, for example, you can automatically deploy our agents when you're using our Java cloud service so that monitoring gets baked into it. So we have APIs for both inputting data into our cloud and extracting data back from the cloud. We'll have APIs for you to take the events that we generate into your own event dashboard that you have. So I'm a developer, I have a team, I can do some stuff, build my own kind of visualization UI, and just have JSON endpoints come right into the application. Absolutely. Mira, I know she smirks when I said service now, do you want to share some insight into this dynamic? Because this is kind of what's happening on the cloud. These tools are popping up. Yeah, I think, well, yeah, and again, I think what we're talking about today is to be able to monitor and analyze and optimize a lot of those different tools and deliver them via cloud platform. And I think that we are finding that DevOps organizations are very interested in cloud-based solutions that help them do this better, cheaper, or faster. So I think that, you know, I think it's an opportunity. Service Now has clearly been a pioneer in the delivery of system management as a cloud-based model. And I think it's interesting that Oracle's actually choosing to enter that market in a different place. I mean, they're actually not- Oh, it's just in strength. And it got the systems of record and they own the data. Right, right. And really folks are seeing on. And really, you know, to Perkash's point, really focusing on data. Because managing, effectively managing the performance and operation of applications and complex environments, it is a huge data problem. And you've got data coming from so many sources, so many formats. And being able to take that in rapidly to transform it, normalize it, and make it digestible for humans is something that is really important in these complex environments. And, you know, so I think it's gonna be interesting to see. I think it's a great strategy. I think it's a great strategy. By focusing on the data, you have a lot of range. And I wrote a blog post in 2007 now, I'm going way back. Data is the new developer kit. And now that's actually happening. You look at data, people are playing with the data like a developer plays with function calls, if you will. So what you're seeing now is a data-rich environment, hence the not a problem of having enough data laying around. The problem is how do you use the data to get actual insight? Insight is the problem. Insight is a huge problem. And that's only gonna be accelerated by faster performance machines in easy to use environment. And better analytics. Because you want, if the user knows what the problem is that they're looking for, there are a lot of tools that will help you find it. But if you do not know what the problem is, and to guide them to where the problem is, is where there's real opportunity. And there's real pain point in these enterprises. Especially now that you and I don't tolerate a downtime. You never cut anybody's slack saying, oh, the website is slow, but they've been innovating. I'm gonna give them some slack. Nobody does that. Yeah, yeah. And because now everything's measurable. Now for the first time in the history of business, everything's measurable. That's right. And that's like just mind blowing to me. I mean, but I think it's a huge app. I wanna get your thoughts on the application market because I just see a massive tsunami coming of third-party developers. And I'm not sure Oracle can handle that. I just, that's my personal opinion, counter that. I mean, people want to know, can Oracle handle an ecosystem of third-party developers? Absolutely. We have shown that before with Java. And I think you see every one of our services having open APIs, we are quoting third-party developers. We will be continuing to support them. And I think we'll be able to handle it and we need to do that as a part of this ecosystem. Yeah, I mean, it's a platform. Yeah. So you have to enable. Absolutely. And that's the open message. Exactly. All right, so what's your advice for the people at Oracle Open World here and the people watching? Let's start with the people here on site if they catch this video. We're gonna be putting up some snippets before you even get off the set here. So one, what sessions should they attend? Where should I get more information? What sessions and breakouts and presentations they go to? So I have a keynote tomorrow at 11 a.m. that I would love for them to attend. And outside of that, there are some hands-on labs here that they should go and look at the products. And people who are remote, they should go to cloud.oracle.com slash management where we have all the services listed. And take a look at it. And we are really, really going to be putting out a very differentiated solution than what is available in the marketplace. And I would love for them to check it out and give us feedback. For the folks watching online and customers in general, when they squint through all the activities, a lot of bombs dropping here at Oracle. I mean, a lot of announcements. This is pretty unprecedented. What should they look for? What are the, if you had to point to someone to one data point within your world, that's gonna get their attention and have them dive in deep. What should they look at? If they're having issues with their applications today, if they're hearing about their application issues first from their customers and not by themselves, they should be looking at our solutions to see how they can get ahead of the customers. And that's one precise message they can take back.