 Live from San Francisco. It's theCUBE, covering Oracle Open World 2016. Brought to you by Oracle. Now, here's your host, John Furrier and Peter Burris. Hey, welcome back everyone. We are here live in San Francisco for three days of wall-to-wall coverage of Oracle Open World 2016. The big story of Oracle moving to the cloud. I'm John Furrier with SiliconANGLE. My co-host this week, Peter Burris, Head of Research at SiliconANGLE Media General Manager of Wikibon Research. Our next guest is Ashkish Mohindra, who's the Vice President of Oracle Cloud. I'm going to go to Marketside. Welcome to theCUBE. Good to see you. Thanks, John. Same here. We have a mutual friend from Prasada. So, you know, hey, say hello. Hi, Prakash. Prakash, he's good. Okay, entrepreneurs are all moving to the cloud. Obviously it's a green field for them, but Oracle is a big company. This is clearly demanding. This isn't cloud-washing. People are saying, oh, they're cloud-washing, but not really. Oracle is putting on the effort in. We've been watching and documenting it. Obviously there's some critical analysis that's due here and there, but for the most part, the progression is good. They're moving to the cloud. Can you give us an update? Because SaaS business, everyone sees that, knows that. The platform as a service last year was a big push. Lot of progress. So give us a quick one-minute overview of what's the update on PaaS, platform as a service, and what's different this year about infrastructure as a service? Definitely. Well, thanks, John. I think you hit it on the nail. I mean, the nail on the head, but the fact that Oracle is the biggest secret in the industry being the biggest cloud company, the most exciting cloud company in the valley. And what we've really done is, if you look at our numbers, we just announced our Q1 earnings, our business SaaS and PaaS business grew about 77%. It's the fastest growing SaaS and PaaS growth rate in the industry compared to any other vendor, including Amazon, including Microsoft. If you compare that to the Q4 numbers, where we grew at 66%, that was again faster than Amazon and Microsoft. So the market is expanding, and Oracle is the fastest growing business in there. In addition to that, let me give you- By revenue or percentage growth? By percentage growth, right. So we're close to about a $4 billion run rate in SaaS and PaaS as of Q1, FY17. That's across all the different as a service. It's primarily SaaS, PaaS, infrastructure, and overall cloud revenue for us. Okay, John, okay. A big chunk of that is attributed to SaaS and PaaS. Now, I want to give you some other statistics in terms of the size of our cloud business. You know, there are about 98 million plus daily active users on our cloud, okay. In addition, we do about 50 billion plus transactions a day on Oracle Cloud, right. So the massive scale, we are operating across 195 different countries, right, and growing. We have 19 plus regional data centers, right. I mean expanding more into China and Middle East. So the growth and the pace and the expansion of the business is massive, right. And we believe that this market is growing at such an unprecedented rate that Oracle's wealth position to take advantage of that and really provide an end to end offerings to our customers. Larry Ellison on his keynote last night in Rob Hofer, editor-in-chief SiliconANGLE runs a editorial, grabbed the headline lead as saying, his quote was, Amazon talking to Amazon, Amazon, your lead is over. Okay. What does that mean? What does that mean? I mean, you're saying that your lead is over in the sense of we're closing the gap or enjoy it while you have it, we're coming after you. Number of things. One is, we're really making new exciting announcements into the infrastructure as a service play market. So you're going to hear over the next couple of days in terms of our new offerings. We today announced the fact that we expanded our infrastructure service capabilities from virtualized environments to also bare metal, right. Which is something that Amazon doesn't offer. And the advantage of that is companies can now run more high-performance applications on bare metal servers versus being bothered by having to share that capacity, the compute space with other applications and other customers. The other big thing what Oracle is doing is, is providing an end to end offerings. If you think about it, right, Amazon started out being with the compute layer. So they said, look, if you want to spin up a server and just have some compute capacity, storage capacity, great. You don't need to invest in that. You don't have to buy it on premise. You can go to us. What customers are really looking for is, yes, so you can spin up a server, then what do you do next? You've got to be able to build an application. You've got to be able to scale that application, monitor that application, integrate that application, run analytics on that, and then at some point do an end of life. So you want to have a complete application lifecycle management. So you need an integrated capabilities. Today, if you look at the public cloud offerings, you've got to piece that together from multiple vendors, right. Even on Amazon, they provide you the basic services, but then you have to go to their partners and kind of fill in those pieces, manage multiple contracts, worry about the integration. Oracle is providing an end to end capability. So today we also announced 19 plus additional services on our pass list, right. From databases, to integration, to IoT. So we are really providing you everything you need to not only get your data center moving towards the cloud, but also your application development, integration and management capabilities that are not being available in the market today from a single vendor. So Oracle, but Larry, what he was really claiming was the market is up for grabs. We are the only vendor providing everything from end to end and we are going to be aggressively competing in the core infrastructure space with our new expanded offerings. What do you think Oracle's biggest advantage is? Sorry? What do you think Oracle's biggest advantage in the cloud is? When you talked about the size of it, what do you think fundamentally is going to set Oracle apart from everybody else in the cloud? So part of that is the comprehensive nature of our offerings, right. From IAS, to pass, to SAS. There's no other vendor that has that breadth. So customers are looking for a single throat to choke in some ways or a single vendor to deal with the majority of the services. So we have a big advantage there. The second is our applications ecosystem. If you look at the number of customers that we have, the size of our offerings from ERP to CRM to HCM, you can just see that we provide everything. There's an economy around that. So customers want to build extensions. They want to integrate to these applications. And they really want to drive the business to one primary vendor. So Oracle has that advantage. The other stuff is we look at the cloud environment today. Only 6% of all workloads are running on public infrastructure, right. That's growing at about 50% year over year. Now, 90 plus percent of workloads are still residing on on-premise environments. Where do you think those are running on? They're primarily running on Oracle infrastructure, whether it's Oracle databases, Oracle middleware, also on-premise Oracle applications. So we believe customers want to have the same enterprise-grade capabilities on the cloud. We've been working on it for 40 years. Now we learn from the experience. We learn from what our competitors have done over the last 10 years. We bring that together into a new cloud infrastructure has and SaaS offerings. So from a technology perspective, the breadth perspective, and the customer experience perspective, we believe Oracle has this tremendous advantage that's kind of hard to kind of close the gap with in terms of other competitors. The declining revenue on licenses was obviously in the earnings call was pointed out. Some color was given by Mark Hurd on that, but the growth in cloud was higher than the decline in on-prem licenses. Absolutely. And then Larry came over the top and said, well, we haven't even really moved, Microsoft has been moving all their customers to the cloud. We really haven't moved our people over. And then Mark Hurd said, we're in the long game. So I'm kind of playing it out if I want to get to a question, which is interesting. The database is very sticky. You guys have it into all your applications. So it seems to me that the core of the show here is talking about infrastructure as a service seems to be table stakes, low cost, high performance, commoditize the, I ask, and then move your customers over. Are you guys, is that the strategy? Is it just the timing? Am I overeating into this thing? Is it a conspiracy theory? No, I don't, what it is actually is that customers want high quality, high performance capabilities in the cloud, right? They've been used to building their own data centers. There's a reason for that. They could choose the infrastructure they wanted, the servers they wanted, the storage they wanted, the compute capacity they really needed, and they want the same experience on the public cloud, right? So what, but cost was a big factor. So if you look at Amazon, it's very easy to get started, but as your application scales, the cost starts to ramp pretty accelerate really fast. And customers are very, very of the fact that is it really a cost benefit for me in the long run to move to Amazon? So the one example is a company like Dropbox that was in the news that brought back the infrastructure from Amazon to in-house, right? Couple of things for that. One was they wanted a higher, better infrastructure, and secondly they wanted to lower the cost, right? With Oracle, what we are saying is cost is a big factor for you to move to the cloud. We're going to take that away. We're going to make sure that you're getting the best performance, the best infrastructure, at the lowest cost possible in the industry. Then we're going to give you capabilities to brace moving to the cloud, to migrate to the cloud. We're not going to say only build cloud native applications in the cloud, but how do you take all these critical business applications, the core infrastructure that you're running today, and be able to transition that to the cloud? So we have new capabilities that we're introducing an infrastructure service called Revello Cloud Service, for example, that can literally do a lift and shift of all your VMs, of virtualized environment workloads to the cloud. You don't have to rewrite them, you don't have to reconfigure them. All it does is simply point and click, and you got that moving there. Nobody in the industry has that native capability coming with us. So we understand the challenges that other companies are going through, and we're giving them the capabilities and a path to move there. On top of that, Oracle went through a similar transition, right? So we learned a lot from our own internal transition. We went from on-premise systems to actually moving our internal systems to the Oracle cloud. So we understood the pain, the challenges, and the opportunities that provided us to get there. And we bring that same experience back to our customers. I have my final question for you, if you could take a minute and explain kind of what you do at Oracle, but mainly what's going on in the field? As you guys take this to the customers, what are some of the things you're working on? You have any events coming up, what's your roadmap for activities, and how are customers engaging with Oracle? Very good questions. So my responsibility is go to market for Oracle cloud, so especially for IS and PAS. And what we're noticing with our customers is every single conversation that we engage in with any size customer, whether it's a 4,500 customer, mid-size, or even a small company, they're all interested in either building out new applications in the cloud, migrating to the cloud, or really retiring the entire data center and then moving all the workloads into the cloud. So we're noticing that the tremendous amount of interest, they're all figuring out strategies of how do you get there. A lot of interest in hybrid clouds. So customers are going to start with new applications, dev applications in the cloud, but they still want to retain because of regulatory compliance, security purposes, some applications in-house. So they want to know, how do you kind of build out these hybrid cloud capabilities where you can have the same model, business model of subscription, metered offerings within their own data center, and at the same time have the flexibility to move to the cloud. So with that, we've got to introduce our Oracle Cloud Machine or clouded customer capabilities that gives them that option, the flexibility to decide and move at their own pace. It's a lot of education. Sorry? So you're doing a lot of education. Tremendous amount of education. We're actually going to be going about a 50-plus city road show without cloud days and cloud world, our post-open world. We're doing a lot of virtual. Cloud world is going to continue. We did the cloud world in DC with theCUBE there. That was great. You're going to do more of those regionally or city-wise? Yeah, I'm going to do a global tour starting in October. We're actually going to be covering EMEA, APAC, North America, and even Latin America since South America. So we're going across the world, going to different countries. I think we're covering about 50-plus countries in those events, and basically spreading the word out and engaging with every kind of customers to educate them on Oracle and also give them a pat. So big tent events in regions and then city events, satellite events to kind of hub and spoke off those kinds of activities? Absolutely, yes. Awesome. We're doing a lot on the virtual as well, online. Any virtual reality? Welcome to an Oracle database with my headset. Look at the scheme, it's all screwed up. That'll be the next time around. We know there is, but that'll be the next time around. Thanks so much for sharing your insights, and good luck with your activities. Great to see you, and thanks for coming on. Thanks, John. All right, we are here live at Oracle Open World, and if you want to join the conversation, go to Twitter and check out the hashtag, TheCube. Go to silkenangle.com and check out the research at wikibon.com. And of course, go to silkenangle.tv. I'm John Furrier, Peter Burris live here in San Francisco for Oracle Open World 2016. We'll be back with more after this short break.