 from Washington DC, it's theCUBE. Okay, welcome back everyone. We are live here in Washington DC. This is theCUBE, SiliconANGLES flagship program. We go out to the events and expect the signal from the noise. I'm John Furrier, my coach Dave Vellante. Special presentation of Oracle Cloud World. Our next guest is Mirabh Mehta, Vice President of Product Management Oracle. On the development side around the Cloud Machine, the God Box or God Service we're calling it. We used to call it God Box. Welcome to theCUBE. Thank you, thank you. So in the old days, if you had a killer box it was called the God Box because it took care of everything and now you guys are doing it as a service which got some great press. Wall Street Journal this morning had a story called Turning Cloud Computing Inside Out. Bringing that cloud into the data center. Why is that important and how hard is it to do? I mean, how hard is it to build the product? That's a great opening there with God Box. Really, you know one of the things John, when we started to design this product, what we challenged ourselves with is at the end we would have succeeded if it is invisible. Because what we're trying to do is not make a box. Really bring the services that people already know and love in the cloud and bring them exactly like they exist behind the firewall. So what is hard about it? Number one, on the technical side is to have the same exact stack on-premises and in the cloud. As you know, when you build cloud-native infrastructure, there's a different operational model. So to offer the exact same stack on-premises takes a lot of work and behind that simplicity and elegance is a lot of sophistication. I'm very proud that the team delivered it. And this is important because if you have two different stacks, you have different code bases. It's like having different repos on GitHub if you're a developer, right? You've got to understand that you've got to roll code, do updates, things like data management. It gets really complicated, right? So to manage. Indeed. And think about this, John. When we take longer to build innovation for our customers, right? They don't quite see the speed, the agility of innovation. Now that we have the same code path, as soon as we innovate in the cloud, we can bring it to our on-premises customers. So Jay brought up a point earlier with Sean Price. He said that back in the day, go back five, six years ago, people said ERP would never go to the cloud. I mean, this was the dogma of the industry. I'm not going to put production workloads in the cloud. So we've seen some production workloads go in the cloud, not a lot of ERP, maybe some test cases, but now you're bringing ERP in the cloud on-premise with the cloud machine. Is that a market dynamic or is that more of a compliance issue or both? You know, the way I look at it, in terms of the journey of the production workload to the cloud, it starts with integration. And so you heard this morning in Thomas's keynote, the ease with which Oracle can enable you to extend your on-premises ERP and leverage the in-the-cloud assets. So you start integrating and then you start to migrate over. So that's one. And second, what's really constraining organizations is things like latency and the need for really high performance, right? So by having this guard box as you call it, right? We're taking away some of the challenges of traversing the internet and the latency challenge. All right, so I'm going to bring up a couple of things. First of all, latency and speed, totally performance right on the money. That's table stakes. You've got to meet that. The big buzzword and the big effort right now is orchestration. You're hearing about Kubernetes, Docker, real facilitating, a lot of orchestration of services while maintaining the high performance and low latency. So that's the real critical thing. So with that in mind, you would agree with that, right? So with that in mind, talk about the notion of integration because now integration becomes the complexity. So integration becomes harder. What is Oracle doing to make integration easier and how is that a competitive advantage? Yeah, and I think there's, let me talk to orchestration. It's an important point. Orchestration should be only done when it's necessary. Quite often what we see is vendors so far in the solutions they've delivered, they're using orchestration to plug the discrepancy between the two environments. And really, you want to orchestrate when you absolutely need to. But how nice would it be if test and production environments can be swapped very quickly, right? If the workload mobility simply happens without a ton of reconfiguration. So orchestration plays a pivotal role, but Oracle believes that it should not be abandoned. It should be there to make you faster, more agile. Yeah, yeah, yeah. Not a plug a hole. Yeah. It actually makes them go fast, Dave. Exactly. I wonder if you could talk about when you were designing the Oracle Cloud Machine, a lot of what you had to think about presumably was the tooling to manage that system. You're trying to create an environment or experience that's identical on-prem, off-prem, doesn't matter where it is. How much of that tooling was invention required versus just sort of pointing your cloud tooling toward the on-prem? That's great, Dave. You know, I think 80% of it is really us having learned from our experience operating a very large public cloud. So we brought a lot of the tooling, but also the processes for how to maintain availability, performance, and all that to the on-premises cloud. But as you know, there are unique considerations with Enterprise IT for security. By the way, I was a security product executive for 10 years prior to this. And a lot of the unique challenges that come out of bringing in an external operations layer into your data center, we had to tackle those. And we did that comprehensively in the way that Oracle does, Enterprise class with all the right security safeguards, the regulatory frameworks that need to be in place, et cetera. So I'm glad you brought up the point that you know security because every time I talk to a security expert, I learn a lot. So my understanding is when people talked about cloud security, it wasn't so much that the security in the cloud was bad. It's not like Amazon is bad security. It's just that it's one size fits all. And the Enterprise wants N different configurations and so forth. So how do you accommodate that need for customization, if you will, for that Enterprise and the need to scale? Right, that's a great, great point. And I have noticed in the public cloud, there is an element of transparency. There's an element of trust that goes along with security, but you don't have all the control that you seek as an Enterprise. So how we went about building our Oracle Cloud Machine is really building on the experience we had with Exadata, Exologic, and so many of our hardcore IT hardware that we've been delivering in these data centers for mission critical workloads and made sure, for example, that we harden our operating systems, that we ensure that our staff that accesses these infrastructure elements are using strong authentication, that there are solid audit trails. You can really see everything that they're doing. And we're very aware of what the IT security team really needs. And getting aligned with that was a key goal of the product managers. So I got to ask you about the inside out cloud machine behind the firewall question. So, does this mean the end of the DMZ? The DMZ Demand for our zone was a halfway house between intranets, extranets. That was the security safe zone. Does it go away now, right? I mean, how do you manage firewalls are complicated? Let me tell you, John, the DMZ was gone five years ago. So for the longest time, the perimeter has been around the data and no longer around a specific point in the network. I mean where the information is is where you want to form the perimeter. So now you take Oracle Cloud and you visually stretch its edge and bring it right to the enterprise data centers. The perimeter is wherever the data is. And what you heard today from Thomas, the way we are doing transparent data encryption, encryption in the silicon, all the operation security. You need that, you need security at every layer. I buy that 100%. The thing that you guys, I think are doing well on, I want to get your take on it but what others are struggling with is insider threat. That's a huge issue. I can encrypt it end to end. Okay, but I'm insider, I can see the database. So is that a big point of contention for you guys? Is you guys doing anything there? Yeah, absolutely. So we can get into details another time but if you really look at our processes for what drives our operations team and how we vet them, how we ensure that if they leave, we scrub all their access controls and all the strong authentication they need. Okay, we got to wrap up here. I want to follow up on that whole insider threat, security paradigms, really relevant and I agree there's no perimeter so I want to get and that's really what everyone wants. I'll give you the final word for the segment. What is the thing that you'd like to say to people watching potential customers or customers about why Oracle's cloud machine is relevant and important? Thank you. Yes, you know, I'll say this this way. So far, the IT industry has failed to deliver a solution for this problem, mainly because they've ignored the fact that the pricing has to be that simple exactly like the public cloud and Oracle has solved that. It's always a subscription. You don't buy hardware software from different vendors and second, that is the same stack on both sides which allows you to have seamless workload portability. No other vendor in the world has delivered this so look at us seriously. All right, we're going to wrap it in the CUBE segment right there. Thanks so much. This is the CUBE live in DC. Thanks for watching and see you next time.