 Live from Washington D.C., it's theCUBE, covering Oracle Cloud World, brought to you by Oracle. Now your hosts, John Furrier and Dave Vellante. Okay, welcome back everyone. We are live here in Washington D.C. for a special presentation of theCUBE. Here for Oracle Cloud World, hashtag Cloud World. This is theCUBE, Silicon Angles flagship program. When we go out to the events and extract the signal from the noise, I'm John Furrier, my co-host Dave Vellante, special guest, CUBE alumni, Sean Price, and your vice president of Oracle Cloud. Welcome back to theCUBE. CUBE alumni? CUBE alumni, that's fantastic, thank you. Last time you were tech athlete, but now you've been on a race. Last time tech athlete, this time CUBE alumni. CUBE alumni, plus now CUBE alumni. Okay, I love it, great to see you. You've been running hard. You guys, we last spoke with Oracle Open World. You got your running shoes on, you've been busting hard. Give us the update. Obviously the keynote here, pretty smashing. You're delivering, Oracle's delivering, the meat on the bone. This is the cloud machine, cloud at customer, and bringing it inside out, bringing it to the data center. Real interesting, a different approach. Not follow the leader or follow someone else. What's the update? Give us a quick update. I think the net is, if you look, people thought we were late. I think they thought we were late against an old yardstick to be perfectly candid. If they described our business as a small best of breed or maybe as an infrastructure provider, or maybe as a platform provider, yeah, arguably you'd have pockets of functionality. I think what's becoming crystal clear in the market, both in terms of what Mark and Safra and Larry announced in our Q3 earnings, almost 740 million on a bookings basis growing 70% year over year, is that this strategy is resonating with the market. And what's different about it is that it's pre-contemplated applications connected through platform as a service, operated on infrastructure, and now extending that from the public cloud to the public cloud machine and into on-prem. I mean, really it's becoming apparent. It was interesting too. I asked Mark, heard this when I interviewed him about the new generation of millennials and workers, and he talked about that generational gap and that you guys are feeling, but I kind of want to bring that up in context to people who don't know Oracle. Don't know that there's only been really two major shifts in its history up until now, its third shift, where they had to essentially change and win, and all two times, they're two or no. So now I'm saying, I said to Dave, I predict Oracle will be in the top three easily because this shift is about winning. It's clear that Oracle wants to win and go three and O. What's your take? Do you agree with that? Top three? Okay, come on. Top three? Number one. Number one, man, number one. Come on, you're gonna give it to me. So to win. Yeah, I think that you're absolutely right. There has never been a greater transformation in Oracle's history with more upside and consequence if we don't get it right. And this is a transformation that's occurring across every function of our business. You look at our sales and what we're doing to incentivize performance in the cloud. If you look at our consulting organizations, you look at us culturally. I mean, what matters in the cloud? Go live, use the subscription, gain value. Or the economic model that is predicated on doesn't work. So across every function driven top down, we're shifting. I think we have an advantage too. I mean, we've been historically as a culture driven in many ways through Larry's vision, Mark, Safra, Thomas, and when they call go right, we go right. And so to make that transformation, there's not a lot of... They don't make that call very often. They stay with stuff. They don't say go left, right, they don't say exact. But when they make it, we make it, we go right. So Dave and I talk about this all the time. I want to give you thoughts on this because we look at the data, you know we're data driven. We're looking at how do you benchmark Oracle's progress far, okay? Some in the industry are saying, ah, Oracle's just playing games with the numbers and their product leadership really isn't there. Obviously there's always going to be naysayers. But the proof's always in the pudding, right? So I want to ask you the direct question. We know you do well on Oracle. Oracle on Oracle has great performance advantages. You got engineered systems. You got that game locked up in my opinion. Something that may think differently. I think you're solid there. The proof will be in new customers. So are you winning new Oracle customers? Ones that have never touched Oracle, the cloud natives. What's the deal there? Because that ultimately is the proof of product leadership. I'm happy to tell you that by all means we're winning new customers. And we're winning new customers from new segments. Think about this. ERP in the cloud is the most mission critical app in the world. You would be, that would probably be one of the last things you would think if you were conservative that you would move. In our most recent quarter we announced more than 150 plus net new customers out of 330 who did not have Oracle footprint. And I think it's never had any Oracle. No Oracle, brand new. Here's another one. I love this one. So you think about SMB, mid-size. They would never think of Oracle, the big transformational company on-prem as really the infrastructure. Companies like Stripe, I'm sure you know them. 2009, $25 million valuation. Today, $5 billion. E-commerce engine behind Apple Pay and Alibaba. And Grouchette. Exactly. They chose our cloud ERP in financials and HCM because they saw scalability from an embryonic state to post-public and the complexity was in the currency and the geo and the expansion. So not only is it new customers doing mission critical things in new segments, but they're also adding suites. They're adding, you know, Q2 a year ago. Growth customers. Growth customers. Yeah, beautiful. So we've had guests on theCUBE, Sean, even just a couple of years ago. Guests in the financial services industry say, that's a cloud bad word. We will never go to the cloud. Nobody in the financial services would go to the cloud. You just mentioned ERP. Never take ERP to the cloud. That's changing. Why is it changing? And what's the CXO's perspective on that? Particularly, I guess, the CFO when you're talking ERP. Yeah, it's amazing, you know. This is a market, first off, that's in hyper growth, that's extending its hand to change. And really it's driven off three things. The first is operating efficiency. For years, people bought ERP. They took years to implement. They customized it till it was unrecognizable. Then they pounded on our door for innovation and took more years to consume. And they said, you know what? The operating model shifted underneath. It's too expensive. And so the first real driver for change from the CFO is around operating efficiency and how do I put innovation back into the engine? And so upgrade avoidance, moving that investment to the cloud. But by far the biggest is an operating model change. If you think about the gaming industry, for example, three years ago, they were focused on in their ERP. How do I source raw material? How do I build cartridges? How do I get truck optimization and then sell through retail? Fast forward three short years, it's all direct to consumer digital. 77% of the largest gaming company in Earth and Q1 announced that number. What does that infrastructure and on-prem have to do with that? And you can go down the list by industry, by vertical and by operating model shift to see that change. And you gave an example in your talk about social data. You gave an example of a retailer using Pinterest. I know who that retailer is. You didn't use their name. I won't use their name either. But amazing results that we've seen. A whole DevOps culture of mind shift. So what is that cultural shift that you're seeing in your customer base and within Oracle? I think you'd be crazy not to harness the power of the consumer and the people that actually work and interact with your company and your brand, NetNet. And the company you were describing is a retailer that has effectively blended brick and mortar with mobile and internet retail. But what they've done is they've mined the data to say, you know, if you like something on Pinterest, shouldn't that inform my merchandising? And so they're taking it up a level beyond just infrastructure for compute storage and network or platform or even an app and reimagining that with real client data. I think data is the next frontier too. If you think about it, today I have 70 million subscribers that do 33 billion transactions a day. Shouldn't I have a point of view on what indexes correlate together to give me a KPI on what merchandising optimization looks like or millennial turnover in retail? You're talking about Oracle's visibility. Oracle's visibility, yeah. I mean, it's pretty cool. Imagine if you're a retailer and you opted in and you said, I'm going to anonymize my data and in return I want 2000 KPIs back. I mean, what we're doing across four tiers compared to the rest of the market that's so highly fragmented is remarkable. Data as a service. So you talked earlier about the operating model. The interesting thing about the announcement that you made today with the Oracle Cloud Machine is that it fundamentally brings an identical operating model for on-prem and off-prem. That's unique. I don't think we've ever seen that before. What does that mean to the customer? What's the business impact? I think there's two things. Portability and where you run it so I can move DevTest into the cloud, develop it and run it back behind the firewall seamlessly and because the architecture is the same as important. But the second thing people miss is that we've got an ecosystem of partners. I've got some partners with 50,000 certified Oracle consultants and 21,000 Java developers who are already on-prem. Looking for a way to bridge. People miss this ecosystem multiplier and it's happening. And so I think cost, I think similar skill sets, I think it allows the flexibility around regulatory compliance that may not allow me to go to the public cloud and implies portability across all. It's really the last mile to tie all of it together. You have mentioned Test Dev in your talk. Why would anybody do Test Dev not in the cloud? Yeah, Mark said in his last keynote, we believe by 2020, 100% of all App Dev tests in the cloud will be there. I mean, why would you? It's remarkable. Sean, I want to give you thoughts as we wrap up the segment on what I mentioned earlier about this generational gap. It really is a major shift. Obviously, when you talk about all the time, we love it. This is a historical revolutionary shift in technology business. Some of the biggest technology companies, we believe, won't even be technology companies. They'll be enabled by Oracle. You mentioned Stripe, others. That's the trend of the digital transformation where non-tech companies can be tech companies through their own innovation. But now the new generation of buyers, the millennials or whatever you want to call them, the cloud needs like my daughter, they're on Snapchat doing geo filters, all this stuff. It's a new consumption, how they consume digital assets, how they make buying decisions, how they run their businesses. What's your observation? Can you share your perspective on how you guys maintain the people who are older guys like guys like us and the new generation? What is that generation? And is Oracle generational company and how are they fixing this gap? Oracle's a multi-generational company and the transformation isn't just the domain of a millennial or a older generation. It's a fundamental response to the customer. I mean, think about how we start our buyer's journey. You bought anything that you haven't gone online or into your social network to say, anybody tried this? Think about what rates high and then where do you get the information? I don't call someone in to present it to me, I look online to get my data and then I start my buyer's journey. And so we have to reimagine a new buyer's journey. We have to reimagine what success constitutes in particular around advocacy. Because if you do it right, you get this beautiful flywheel effect where your customers are and affect your advocate who are at the beginning of the buyer's journey. And we're the customers in this progression, this journey. Where are they? Mid-stage, how deep are they? What's the progress? By industry and those that are dependent on consumer are very far along. They're very sophisticated in their marketing cloud, in how they're interpreting and mining the data and how they're interacting with service offerings, independent of channel, how they've moved from verbal to digital communication and how they've changed their processes to support that. Other industries are less further along but quite candidly in a bit of an urgent state because they're not immune. I can't think of an industry or business that's immune. So it's safe to say everyone's digitizing everything. Everyone has to digitize. That's our mojo, we love that. Digitize the cube, we're doing it now. Sean, thanks so much and congratulations. You made a lot of progress. If I'll give you the final word, what should customers and partners expect from Oracle in your department this coming year? I think the two things, we've got an incredible opportunity to sit down and leverage what it is that we know. I would ask our customers to sit down with us, look at the new Oracle. We've got vertical market offerings. We want to show you the 80% use cases, the best practices on how to adopt, how to implement it transparently and let us share with you the progress that we've made. It's been an incredible journey. Sean Price, the cloud leader at Oracle. This is the cube. We'll be right back with more live coverage from DC after this short break.