 Live from San Francisco, extracting the signal from the noise, it's theCUBE, covering Oracle Open World 2015, brought to you by Oracle. Now your hosts, John Furrier and Brian Grace Lee. Hello everyone, welcome back to theCUBE live here on Howard Street in San Francisco. We're shutting down everything in San Francisco for 60,000 attendees and people all around the world watching the keynotes from Larry Ellison and Vishal Sikha who kicked it off as the CEO of Infosys. I'm John Furrier with SiliconANGLE. This is theCUBE, our flagship program that's powered by SiliconANGLE Media, SiliconANGLE.com, wikibond.com, research at SiliconANGLE.tv. I'm the founder and I'm joined with my co-host, Brian Grace Lee, research analyst at wikibond.com, with the cloud, Brian Kino from Larry Ellison, kicked off by Mark Hurd who introduced Vishal as their number one partner Infosys. And obviously Larry will get to Larry in a second, if you saw, is a legend in the tech community. He was doing web services, talking about the API economy going back to the early decade of 2000, 2001 timeframe. And that really is the genesis of service-oriented architectures that led into APIs, that led into the cloud. So great to see him on stage. I thought that was a fantastic addition. Super great guy, talking about human intelligence. I thought I'd love that angle. But the show is all about Larry Ellison. And Larry Ellison brought the meat on the bone and he went deep. He kind of was philosophical Larry. And my takeaway from Larry Kino was, hey, let's step back and understand reality, security. It's all about security. So real big message on the security and the M7s and the hardware, all the sun investments and really pushing security down the stack. That was his primary message, really highlighting the silicon software. Silicon security is better than operational security in the US. Got a little long-winded, blew through his slides, knocked down some other stuff, multiple private clouds, management cloud announcement, but really silicon secured memory, the stolen credit cards, fear and gloom and doom. What's your take? What's your assessment? You kind of roll in your eyes a few times. He said Splunk's not in the cloud. That's a factual mistake. They are in the cloud with Amazon web services. Other than that, he's only one. I saw one mistake. That was a Splunk mistake. Other than that, he was pretty on point, very philosophical. Yeah, no, I mean, he was trying to make the point. Security, security, security, a lot of trying to put some fear into people's eyes. I want to say there's a certain amount of fud, but a certain amount of it's just reality. Security is very hard to do. He was basically trying to push, you need security down at the hardware level, and you know who has security at the hardware level? Oracle does. That's been a huge push this week. Yeah, and the other notion that you've been talking about is always on security. And he was saying there shouldn't be an on-off switch on security, so that's ridiculous. Now he's kind of makes sense on that, but you know, go back in the historical computer industry, you know, when you wanted to add on bolt-on security at an encryption level, you had to pay a huge penalty in performance. I'm glad he brought up the overhead comment, because that was the reality. No one really had security on because- Well, we heard it earlier this week. It cost you 80 to 100 times the performance. People just weren't doing it because it killed your performance. So, you know, he said there's zero penalty. That's yet to be seen. People are going to have to start doing some benchmark testing. Would have loved to see a live demonstration of something in the security space, but you know, very bold vision, absolutely. Also, we learned some new information about Larry Ellison. He makes his own slides, which is good to know. I mean, he's the kind of guy he's hands on, but really to me, I saw Larry Ellison up there saying, look it, I've been in this industry a long time. Security is broken. I don't know what's going on with it. It's got to be fixed. And his answer is to use the engineered systems, the horsepower of Spark, the horsepower of the Sun acquisitions, the horsepower of all the innovation around engineered systems and get the software and the silicon. Silicon security in memory, silicon security secured. That is a key message. Now, this is a time where we can actually pull it off. More cores, you heard from Intel. So this might be a shift in the security model. You and I were talking off camera saying, well, you know, come on, it's a story, but does it pan out? So your thoughts? Well, I think what this is going to do, this is going to, you know, we just heard the fire engines going off. This is going to light a fire in the security industry because they've been saying for a long time, you can't keep up with the zero days. You've got to be more predictive. You've got to be doing things, you know, pushing a story that is hard, you know, silicon based security is tough because it's hard to change silicon. You can't change it fast enough. So it's going to be fascinating to see how the security industry responds to this. It's going to be fascinating to see the proof points because the security professionals are trust, but validate they're going to want to see how this really works. We had a great crowd chat. We had some folks in the crowd chat filled on a particular highlighted the big time system sales, 15,267 engineered systems shipped to customers since October 2014. It was like 10,000 since then, 7,000 exadata sold. So like obviously the hardware is working. So the hardware software combination is working. That was a big theme. Also he brought up the security kind of philosophical conversation which should spur a lot of consultants kicking their slides and refreshing their narrative. But he talked about stealing data versus changing data. This is really, really a big deal in my opinion because data in motion is all about real time and getting access to data and changing data whether it's systems configuration data or other data is actually now the new threat. Right, right. Now it's a huge thing. I mean like going back to your point about engineered systems, we're seeing this across the industry. Customers are buying into the notion they want to reduce friction. They want to reduce complexity. Whether it's, you know, the exadata systems whether we're seeing with V blocks, we're seeing it with Flexpod with a bunch of the other. Everybody likes the idea of engineered systems and quite honestly they like the idea of that simplicity that cloud's providing whether it's private or it's public. They also talked, again highlighted the price performance issue again kind of hinting at the earlier comment in Sunday about they will never lose on price to Amazon. So that's a big challenge for the Oracle employees. Again, Larry said stuff on stage and kind of trills down to the employee base don't lose on price. Do you think that's a reality? He made a bold statement today. He said they're going to be, they're dedicated systems meaning nobody else is on that system. Those systems are running maybe 10, 15, 20% utilizations are going to be half the price of what Amazon does for their shared systems. Off the top of my head that mask is hard to figure out but I really want to see it, I want to see it but it's a bold statement. It's a bold statement. They're also talking about multi-tenant cloud as well. That does, how does that jive? Right, now it's, you know, look, Larry's trying to make some very bold statements that like this is don't let price be a barrier. Don't let security be a barrier. Don't let movement of data be a barrier. We're going to help you take care of those things. My favorite sound bites from the keynote here from Larry was let's get rid of the on off switch from security. The always on security message really is a good one. I love the story and I think the consultants, we were talking, the consultants business is going to boom right now. Well, really what it's going to come down to is how much do applications have to change to do this? Because if, as Larry said on Sunday, most people don't turn on their security, if you're going to just move your application, is it still going to work? That's the question I've got. If I move it to a place that has security on when I had security off, does my application still work? They got to hope it does. Yeah, the encryption's always been a tough nut to crack. Obviously, there's always one vulnerability. That's the keys. And as long as the keys are taken care of, the end to end security play flies in my mind. And I think anything pushing down the stack that frees up the application developer will be a winning formula. Application developers right now do have to wrap security around it. What does that mean from your standpoint? Does that take a burden off the application? Do you think it's going to take more time? No, I think the application developers don't want to think about hardware. So if this is there and it can be provided to them as an API, great. This isn't going to all of a sudden make them start thinking about hardware. They haven't wanted to think about hardware. What really was interesting to me was he made a bold statement. He said most of the cloud providers are looking at your data. I don't believe that. I've worked at cloud providers. Those cloud providers will be out of business if they're doing that. That's a bold statement. I don't know that I completely believe it. They have to be letting you keep your keys. They can't see your data. They can't have those kind of breaches. They'll be out of business overnight. That's a philosophical one. Technically, if they can't look at the data, we've heard of Uber people looking at the God, the God switch, looking at the data. So technically, if it's possible, they might look at it data. So is anything possible? Anything's possible. I mean, they talked about an audit service where Oracle can look at your data. They can look at the transactions going on. So again, it gets into semantics. But again, it's trying to push that idea that we're more secure than anybody else. As we're in the middle innings of Oracle Open World, we're getting the meat of the story here. It's an Oracle Cloud on-premise software as the same as the public cloud software. That's their mission and everything in between that's hybrid, all powered by engineered systems. It's a platform play. It's a platform war market. Oracle has a cloud business. They got numbers, they're performing, they're doing well. Again, Larry Ellison's going deep, the deep dive on security. That was the main story from Larry Ellison. Obviously, if you shall stick up, they're standing up there saying, this is the new order, this is the new application market. It's going to be a really interesting story to see this unfold, Brian. Great stuff. We are here live in San Francisco for Oracle Open World's exclusive coverage from Silicon Angles theCUBE. And for more information, go to crowdpages.co slash 0015. That's for putting all the videos. That's for putting all the conversations. That's where the crowd chats are. Go there and get all the information. Go to wikibond.com for research and go to siliconangle.tv for the videos. Thanks for watching. That is the post game wrap up, post keynote conversation here in theCUBE live on Howard Street in San Francisco. Thanks for watching. Stay tuned for more interviews here live on theCUBE. We'll be right back after this short break.