 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 here live in Washington D.C. for Oracle Cloud World, hashtag Cloud World. Join the conversation. This is Silicon Angles theCUBE. This is our flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier, my co-host Dave Vellante. Our next guest, CUBE alum, back on the stage, he is team Dave. Senior Vice President of Infrastructure as a Service and Platform as a Service, Oracle Business Group. Welcome back. Thanks man, three time alum, man, that's awesome. Well, you've had a busy year, so you joined Oracle and again, been in the SaaS business for a long time, bolt-on pass and infrastructure as a service. You had a hard run. You can boot and up the operations. You have a cloud business now, give us the tape. Yeah, it's been great. We first met in June where we talked about, we launched 40 new pass services and then I think our next meeting was October at Open World. So if you think about how we continue to extend the services we're offering to market and then, you know, now it's today. So I mean, if you think about, you know, less than 12 months, the investments we've made. I mean, it's been incredible. It's been an awesome ride. I mean, not only expanding out the pass layer that we offer, but then getting that foundational infrastructure as a service and play as well. And a lot of meat on the bone coming out right now. A lot of sizzle and the steak is now on the table. The steak's on the table. They've got the stuff there. So talk about that. You had a keynote here about this connected layers concept and the big announcement, the Wall Street Journal, you know, turning cloud computing inside out, which is on-prem, cloud to the premise, really kind of different, but game changing. What is so important about this inside out idea and what are these connected layers? What does that mean? I mean, the connected layers is when you look at different layers of cloud. I mean, okay, you have fundamental infrastructure as a service, right? But then ultimately you have to have that pass layer in the south layer. We need to really be able to offer customers all three layers of that stack in an integrated, engineered design way in order to really offer them the most value because at the end of the day I could have gone and swiped a credit card and maybe got compute off of vendor. But at the end of the day, what happens when I want to move mission critical workloads to the cloud? I want to move application development to the cloud. I want to do higher order services. And I think that's where, you know, that's where offering all layer of the stack really comes into play for us. So I had a chance to sit down with Mark Hurd for an exclusive interview, 58 minutes with Mark Hurd straight. He was on his game. It's like a baseline rally tennis match because he's done a big tennis player. But he was really awesome. He had talked about a couple of key things. You're in it to win it, okay? And that this is not a new business to you guys. You're a doing SaaS. But he talked about the customers. What it means to the customers. So I asked him a question. I'll ask you the same question. What should customers look at when they have to decide between Oracle Cloud and the competition? Because the competition, the numbers are all over the map. Obviously Amazon's got public cloud here, Oracle. And he got Microsoft. Oracle's not even in the top four on the CNBC story yesterday in cloud. Now they look at the wrong cloud. A lot of customer competitive fun. What do you say to those customers when they decide the competitive cloud choice? What decisions should they make? Yeah, I think what they're looking at it, I mean, you've got to look, cloud really is a journey. I mean, to be honest, it's like nobody starting fresh and it's sort of like cloud native tomorrow. You know, everybody sort of starts from where they stand today. So I have investments. I've had applications that have long tails. So ultimately, how do I migrate to cloud over time? It's not going to be a wholesale lift and shift. There might be certain workloads I might move. I might be doing things like application development. I might have started out with the SaaS app, but then as soon as I did that, I said, well, how do I actually connect that app back to what's on premise? Or if I have multiple SaaS apps, how do I actually connect those SaaS applications together? And so I think customers are starting to understand that a little bit more, understand that there's a progression in a journey and they need somebody that can take them through all layers of the stack. So we're finding that actually real interesting. Companies have come up to us saying, I mean, look at it, okay, you know, I got HR apps, I got CRM apps, I got marketing apps, I got Marketo, I got SAP, I got Adobe, you know, it's like, wasn't cloud supposed to be easy? So people are like, okay, like, how do I actually tie all these pieces together? How do I get analytics out of combining all these things? How do I move them forward in a way that actually makes sense? And so I think when people are getting serious about cloud and we're not talking commodity, compute or archival storage, but really thinking holistically about how I run my business on cloud, that's when we're starting to get a lot of attention. I think it's because we can come in and offer all layers of the stack. So Steve, I got to ask you. So you've been a CMO and a public company, a couple, a few public companies. You got CIO, DNA, right? Yeah, that's right. Started as an MIS manager, right? Yeah. You ever done shadow IT as a CMO and had that work out for you? And is what you're doing with Oracle Cloud going to swing the pendulum back? I want you to talk about that. I probably is one of the worst shadow IT offenders there is. You know, and actually when I just presented today and I said, look, I have a confession to make. And this was a room full of CIOs. Like, you know, I am a shadow IT, you know, person. But I think that's right. Like let's say in my previous role, I needed to get a 360 view of my customer. So, but we had different systems. I had a different marketing system, a different sales system, a different service system, a different finance system. So literally had a team take data dumps out of all these systems, you know, drop it into some open source, run some analytics on it, augment it with third party data to try to get something. But now if you think about what Oracle offers, you know, I have all the different set of services. I have an integration platform with Paz that can connect all that. I have a platform that'll give me analytics. So if the CIO came to me and said, Steve, this is something I can give you to help you as a marketer. I'd be all in. I mean, the last thing I want to do is actually have to build that myself. So I think it's a significant shift. I think IT can go in there and be that service broker and come up with package solutions to offer back to LOB. And then I can go focus on what I need to, which is not spending time aggregating the data, but understanding the data and taking action to drive innovation, better customer experience, what have you. So what's the board conversation that you want to catalyze from a CMO perspective? Is it, hey, I don't want to do this. I'm doing this because I had to do this? And here's what you need to do to take this away from me and give it to people who know what they're doing. Talk about that at school. I think that's absolutely right. I've been pulling it myself together, but if you could give me a single source of the truth that's aggregated, that's real time. You give me the set of tools that I can use to get the deep visual analytics. I'm all in. That is ultimately what I want. So I can manage my campaign performance. I can actually watch my customer buying behavior and trends and optimize the experience for them. So all those things sort of fit into it, rather than again spending time chasing down the data, aggregating the data and running the analytics myself if they can provide me a platform to do that. Then I'd go back to doing what I do best on the marketing side. So talk about the messaging that you've been working on for the last year or so around cloud. We see companies do before you saw Microsoft big shift to the internet back in the 90s. Oracle, late to cloud, certainly from a marketing standpoint, is it more than just messaging? Is it cultural? Can you talk about that a little bit? Yeah, I think there's a few things. I do think we have such an important story to tell. I think Oracle stories may have been more product centric, but when you sort of look at the solutions and what we enable out there, I mean, most of the world's information like runs on Oracle. So you think about humanitarian, you think about healthcare, you think about education. I mean, what we do has actual real impact on what people are doing out there. And we're trying to tell more of those stories, more solution oriented stories, more stories at a line of business fire, like a marketing story, I think would understand and then you can ultimately progress down to the particular products and services they want. But I think we're just sort of changing that dialogue. And the great thing is, is we have the credentials. I mean, Oracle's been around for 40 years. So this is just another one of those transitions that we've worked through our customers with. You have mainframe, client server, internet, mobile, cloud. And this is just another progression and you've had changing business dynamics, changing technology. And through each one of those, you've been able to be that trusted advisor. So I think people understand that. And with the lateness of cloud, we'll say it's interesting because we've showed up with one heck of a complete solution. So when you look at all layers of the stack and ultimately what we've been able to bring to the table, I mean, we have conversations nobody else can. Like that announcement today, AWS can't tell you that story, you know, around delivering public cloud at customer in that way. You know, Azure can't tell you that story. So we're doing things in a differentiated way that actually allow customers to migrate to cloud. You know, it gives them choice. So I want to ask you a question about the cloud at the customer, cloud at customer. Yeah. That sounds like, which customer, all customers. So you have to do the inside out thing. I want to get comments on that. And then I want to get a comment. But talk about this customer, cloud at customer. Yeah. What is that? Is it programs and software? Is it hardware? Is it a service? I mean, I think it's an umbrella term for being able to deliver public cloud services to a customer that sits behind their firewall. And ultimately when you get into what you need to go in and install, we sell something called a cloud machine, which is on the price list. But at the end of the day, it's much more about a suite of services that let's say a customer wants to actually use public cloud, but for issues around regulatory, data sovereignty, performance, other sort of compliance issues, they weren't actually allowed to adopt public cloud services. Now we've done it a way where we can actually take our public cloud, deliver it behind their firewall, it's to know they can adopt it and consume it and have that customer. So they have to buy a cloud machine to get that, right? That is what we would ultimately go in and install, but the pricing is actually based on a subscription basis. So databases as a service, Java cloud service, integration cloud service, it's actually the same subscription based pricing that they would pay on public cloud. I guess I want to get a comment from you. I was something going around, I've been wrote it down, it's also going on the hallways here in Oracle, it's been talking about it. It says not only do you guys have one, or have one platform for every use case, but you have one platform for every stakeholder. Comment, what does that mean? I mean, talk about that dynamic, because that means you've got not all the use cases covered, but all the stakeholders of the people. Is that for the buyers of the implementer, the decision maker? What does that mean? I think it spans both. So if you think about it from, we just talked about a CMO perspective, being able to actually engage with the line of business and say, what are those universal things you care about, secure file sharing, getting real time analytics, being able to foster collaboration and sharing amongst your teams, sales collaboration, marketing campaign performance management. So I can go with HR, I can go in with a story for line of business that's going to resonate. And then I can package up a service offering that's going to connect. Or I guess, you know, if you're a business analyst, I can go up and down the stack of having a full visual analytics and big data offering for them. Or if I'm an architect, you know, how do I architect across premise, across cloud, integrate IOT and mobile, manage across premise. So the people who are building stuff, digital builders. The people that are, yeah, exactly. Those would be the architects as well. And then you have your DVAs. So we can really go in with a message for traditional IT, for line of business, data scientist, data analyst. And so that's actually a big, you talked about sort of our push and what we've been doing the last year. So if I say that the driver of cloud in the Oracle equation, okay, hits all the use cases in personas and stakeholders, I get that. What's the biggest driver? Is it the line of business? Because they seem to be the ones doing the shadow IT first and you see them dipping their toes and kind of doing siloed clouds. Is the line of business the driver right now in the overall enterprise momentum or is it IT? I mean, I don't know if it's either or. It's going to depend on the size of the company. I mean, you know, particularly line of business, you know, the early activity you've seen around infrastructure as a service and just sort of getting rock compute to run things on. If I'm like a citizen developer, somebody in sales trying to create an app. So I think that's where you've seen the early success. But I think IT is involved in understanding that's going on and actually playing that role in terms of how can I aggregate across all these pieces and actually delivered as a service to line of business versus actually having a line of business need to do it themselves. But I think we need to approach both fires with the story because it's not going to be either or. It's not going to be one way or another. It's going to be different depending on companies. So we want to make sure that we've covered all potential paths. And whether it's line of business or not, there's a huge pile of money that is going to shift from IT labor. You know, Herd talked to you, John, about this on your interview. He said a big chunk of money is going to move from IT operations to vendor R&D. I thought it was an interesting way to put it. We think the number is 200 billion over the next 10 years. So because people realize it's just a waste of money to be provisioning compute and storage. So my question is, where's that money going to go? Are they putting it into apps? Are they putting it to the bottom line? What do you see? I think it's going to be mixed, but I think that's a brilliant statement. Because we actually think that when you look at migrating from on-prem to say Oracle database in the cloud, you can create up to 60% of the value cost there. We can free that up because the majority of the cost is on the ongoing operational management of something. Okay, I can save on the compute and I can save on the storage and the power and cooling and the software moving to, let's say, IaaS. But at the end of the day, if I'm still managing the databases, if I'm provisioning them, if I'm updating, packaging them, that's where the bulk of the cost is. And that's what you actually get if you still run on AWS. If I'm just moving workloads to the cloud. With Oracle, we take all that on for you. We automate for you. I mean, who better to manage Oracle database than Oracle? So we believe we can free up about 60% of those cost savings and then those go into things that matter the most to the company. Is it developing and innovating products? Is it creating a better customer experience? Is it operational efficiency and bottom line? So what are those things that are core to their business and how do they actually take this opportunity to move the cost savings they get coming with Oracle to actually those things that probably matter much more to them? So with the Oracle Cloud Machine, you've got a consistent operational model. What's new to us anyway about that product is it takes one step further and has offerings for the developer. So talk about that a little bit because you guys, I mean, obviously, you talk about developer, you talk about Java, but you're not desperate about reaching developers. You got a lot of people developing apps and extensions to apps using Java and other tools, Java and Python, et cetera. Talk about that lever in terms of the customer impact. Well, I think that lever is actually the same for public cloud as it is for the public cloud at customer or the public cloud machine. So it is your same Java cloud service, your integration cloud service, you know, and then we wrap it. I mean, we have app containers. We have all those things, those tools you need, Ruby, Python, JNode. You will support open source languages as well. So we do have a really strong, robust community obviously coming from our history of Java. And so this is actually the same tools that they could consume to public cloud if you had a set of developers that couldn't have access to that, given they couldn't consume public cloud. Now we're actually able to allow them to consume that cloud innovation on-prem or behind the firewall. And that's something we've never seen before in a hybrid solution. So how does that differ from your competitors? I mean, certainly IBM will talk about its offerings in that regard. And you see other vendors, EMC and VMware sort of trying to get there. Amazon's not, they're saying sweep everything into the public cloud. Yeah, exactly. That's a one-way street. How do you guys different? I think this particular announcement is very different. So first of all, those other vendors like the EMCs, the IBMs, the HPs, they've been sort of stuck trying to do, they gave up on public cloud and they're trying to do private cloud. I mean, this announcement isn't private cloud. This is being able to take public cloud and actually deliver it on customers' prem. So yeah, AWS does not have this offering. You know, Azure announced something similar. They called Azure Stack. But what that is is, okay, HP or Dell has to rack or stack it and insert it to my environment. And Microsoft actually doesn't manage it. It's a Dell or an HP that would actually have to manage it. But with us, it's actually the same sort of integrated cloud management you get using public cloud. So it's really seamless. So what's the benefit to the customer of that? Is it one throat to choke? It's one throat to choke. It's, I mean, you're not putting extra hops in the network in terms of who I need to work with to consume these services. It'd be no different than pointing, clicking on the web and downloading services, you know, from Oracle.com or consuming them that way. It just happens to be delivered behind your firewall. But the user experience is identical to consuming cloud, you know, through Oracle Public Cloud. Steve, great to see you. Congratulations on your success in the year that you had a grid run. You're still going hard. Final question for you is, what should your customers and partners look for this year? As you go this next year forward, you got to continue the momentum. Yeah. What should they expect? What will they see from Oracle? From your team? Yeah, I think they're going to see much higher level of engagement that's based on sort of the business needs we've talked about, engaging with different buyers and personas in sort of their languages. You know, we sort of look at the competitors, you go to Amazon, you go to AWS. It's very sort of horizontal positioning and of course we got that, but that's not exactly how the buyers sort of think of their problems, right? And so I think- Yeah, their business. Yeah, their business. And so like, how do I have a business level conversation with them, which ultimately leads to what the underlying services might be, but you got to start with that business level service. I think you're going to see a much different or I'd say augmented level of engagement, which actually just expands what we do because we've talked to the IT guys all the time. And by the way, we know these line of business peoples because we sell SaaS apps to them all the time. So these are customers that Oracle has and now we can take the full cloud portfolio to them. And you have the shadow IT cover because you've got developers, all the sandboxing that they need to play around. So the horizontal you've got covered, now it's line of business. Exactly, and we can work with central IT to be service brokers. So there could be less shadow IT and when those guys like have to do shadow IT I got a solution for them too. Shadow IT in a box, it's the God box. It's the God service. Cloud service. Yeah, yeah, for sure. He's Senior Vice President of the Infrastructure to Service, Platform as a Service Group at Oracle, Real Strategic Component, Grid-Growing Area, congratulations. theCUBE bringing all the action here live in DC. We'll be back after more lift and strip break. We'll be right back.