>> Voiceover: Live from San Francisco, it's theCUBE!
Covering Oracle OpenWorld 2016, brought to you by Oracle.
Now here's your hosts, John Furrier and Peter Burris.
>> Welcome back everyone, we're here live
in San Francisco for Oracle OpenWorld 2016.
This is SiliconANGLE Media's theCUBE, our flagship program
We go out to events and extract the signal noise.
Three days of coverage, wall to wall,
ending up day one right now.
Wrapping up amazing day.
I'm John Furrier with my co-host Peter Burris.
Our next guest is Senior Vice President
of Oracle Cloud, Steve Daheb.
CUBE alumni, great to see you again!
>> I have four times, four time alum.
>> (Mumbles) the MVP award for most times on theCUBE.
You've been there almost for a couple years now.
>> Yeah.
>> Peter: Yeah, you and Alec Baldwin.
(laughter)
>> Yeah, less than two years, it's exciting.
>> So you are working hard.
Last time I saw you like, you have to be running harder.
You're running harder.
>> Yeah, we were in DC together.
>> You've been running really hard, so congratulations.
Saw the numbers, 70% growth percentage.
Not numbers, I don't remember the eh, four billion.
>> Numbers are getting bigger,
percentages are still going up, so it's good.
>> Percentages are double digits,
but the real big thing is that you guys
now are putting a dent into the awareness
of Oracle being a viable and competing
opportunity against Amazon Web Service.
Larry Ellison said "Amazon, your lead is no more."
Which was a headline in SiliconANGLE.
So question, how are you guys continuing
to differentiate yourself against AWS and Microsoft?
>> I think there's three things.
One is we differentiate when we look holistically in cloud.
'Cause you know you talk about cloud,
and people define it in multiple different ways.
Some say oh, Salesforce is cloud, or Amazon is cloud.
And we define it as really requiring
all three layers of the stack.
So Software as a Service, which we can talk about.
Platform as a Service, which is that
core database middleware application development.
And then the Infrastructure as a Service.
And we're seeing at some points
all these things are interrelated.
When does past-op and IS begin?
What's a discrete IaaS motion and how does that move
to sort of production databases and different things?
And so we first and foremost differentiate
by looking holistically at what we're offering,
and then sharing that we have a complete portfolio
that's also open and provides choice
to customers in terms of how to deploy it.
>> Holistic, end to end holistic or holistic breadth?
>> I think it's both.
So we look at where we go deep into all layers of the cloud,
and then we'll look holistically around a hybrid solution
that allows people to deploy in cloud and on prem.
And that's where we can differentiate with Amazon.
So you know, at a technology perspective,
Larry announced some incredible things in terms of
we have the benefit of coming in and re-defining
what an IaaS architecture looks like
and provide scale and performance as well as cost.
We provide choice in terms of, look,
if I deploy something on Amazon,
I can't actually move that back to what's on prem.
You can't actually have isolated orphaned sort of instances
on public cloud without tying that back to what's on prem.
And then you just look at some of the database examples.
It's a fork of an old code.
I mean, it's not compatible with anything
so I can run Oracle database on Amazon,
I can run Oracle database on Oracle,
I can run Oracle database in Microsoft.
I can run Amazon on Amazon.
I can't inter-operate with DV2,
with SQL, with Oracle, with Teradata,
so I think we're just sort of trying to demystify
a little bit of what's going on out there.
>> But one of the ways was talk about
work loads moving between on prem,
that's going to get that right 100% across the board.
>> Absolutely.
>> It's interesting, but I got to ask you.
Larry Ellison said on the earnings call last Thursday
after Safra and then Mark Hurd made their announcements
and man, sounded like things were going amazing.
The earnings call was like woohoo,
oh my God, the Kool-Aid injection!
Then Larry got on, but he said a really cool thing
I wanted to just drill down on.
He said we're not even getting started yet.
We are playing the long game is what he's obviously saying.
But he made a comment about Microsoft.
He said Microsoft is already well into
moving their install base and apps onto Azure.
>> Yeah.
>> And Oracle hasn't even begun getting started.
Now, I'm sure you started, but implying significantly
that a lot of the database customers
and customers haven't really moved there yet.
Is that true? How would you (mumbles).
>> It's actually interesting, 415 Research just actually
published a study and they said only 6% of workloads
are actually running in public cloud infrastructure today.
And IDC just actually put out a note
that said only 6% around database and analytics.
So I think we're actually showing up
with the right solution at the right time.
And we have 4,000 database customers,
we're in a great position to move them to cloud.
>> So is Larry right, that a large portion haven't moved yet,
and Microsoft, larger have moved?
>> Yeah, I think that the majority hasn't.
I think that the analogy he was drawing is think
about Microsoft that can move their office suite.
Take 365 and move that to cloud,
or things like SharePoint and move that to cloud.
I think what he's saying is look at that analogy in terms
of who's in the best position to migrate these
database customers to cloud, and we believe Oracle is.
And again, it is early days overall.
There's a lot of noise about what the cool kids are out
there doing, but when you think about it, 90% of these.
>> The cool kids are making money.
>> The cool kids are making money,
Oracle is making money too.
>> Of course, that's what I brought a (mumbles).
You had a question, sorry to interrupt.
>> Well yeah, no, really quickly.
So in many respects, it sounds like what you're saying
is that you can do what Amazon can do,
but Amazon still can't do what you can do.
>> Yeah, I think that's right.
I mean, I think we're coming out and saying look,
if you look at it, the application layer,
they don't have anything.
And so again, we have core ERP, HCM, supply, sales,
service, all these things that we've shipped it to cloud.
We actually do 45 billion transactions a day
and support 30 million unique users weekly on our cloud.
We're a viable cloud.
These are core financial systems
that companies use to run their business.
We've been running in cloud for a while.
We have the PaaS layer, our database, our middleware,
the analytics, the security, things like IOT,
that's core to Oracle's DNA.
And then yeah, you have this
commodity compute infrastructure.
If you look at Amazon, 86% of their business
is still about commodity compute.
So we can offer that for customers
as part of the overall solution.
And I know they've been talking about
getting it to the database so I would say
stay tuned to what Larry has to say tomorrow on that.
But we believe holistically when you look at all the pieces,
we provide that solution that those 95% of workloads
that haven't moved to cloud yet actually really need.
>> So that brings up a good point.
Cloud world, you mentioned DC
where we had your special event,
theCUBE was broadcasting live in DC.
There all up on youtube.com/siliconangle.
>> Shameless plug, shameless plug.
>> Of course, get that last minute in there.
But I want to ask you (mumbles)
you announced the Cloud at Customer
>> Yeah.
>> So what's the status of that,
'cause we get lost in the slew
of announcements here at Oracle OpenWorld.
What's the update?
Doing well?
Reaction from customers?
>> It's doing really well.
It actually solves a big, again,
that problem we talked about.
I want to consume public cloud services,
but I might have regulatory data sovereignty sort
of industry or it might just be my own internal governance
that's not going to allow me to deploy that,
consume public cloud services on somebody else's cloud,
but I can consume it with Cloud at Customer.
>> Is it a transition point, because they feel good about
this, they get some stability with the Cloud on Customer?
Is it a transition point, is it a fixture, is it a blanky?
Is it their binky?
>> I think it could be both.
I think it could be a transition point.
I think for some customers again,
depending on where they are, where they live,
what type of industry, what type of data
we're talking about, that might be
the way they're going to consume it.
Whereas I have data sovereignty laws,
I can't actually move anything to cloud unless those change,
but it still allows me to consume cloud
in a cloud-like fashion subscription basis.
Same identical services that we have in our public cloud,
but just have it behind their firewall.
>> So today's announcements featured partners pretty strong,
and Oracle's always had a pretty big ecosystem.
It's one of the key reasons for your success.
And a lot of the partners out there would like themselves
to start getting into the cloud,
by offering services to their customers using
a lot of what you're doing from a standpoint
of moving your enterprise customers forward.
As Oracle looks out at the landscape, you see Oracle,
AWS, you're going to compete aggressively for that.
But also your partners are going to step up,
and they're going to offer their own cloud services.
What about your customers?
Do you anticipate seeing branded cloud services
from your customers as they engage
their customers differently through digital means?
>> Yeah, that's actually a great question.
I do think, yeah, a lot of our customers actually
have their own services that they provide to end users.
And I would say first, to back up,
I think again it's about providing choice
to our customers so they can engage within Oracle.
They can engage with our partners
on not only our technology, but maybe
how do I migrate to cloud?
How do I consume it in different ways?
Also take a more solutions-based approach.
(intercom blares)
So if I'm looking at.
Aw, we just got hit with that.
Are they shutting this thing down in a few minutes?
>> No no, we're good.
>> A 16 ton thing's going to drop on the table.
>> What is happening here?
>> The Monty Python foot is going to come down on us.
>> That's right.
>> I thought that was a CUBE announcement sort of coming up.
>> CUBE, Steve Daheb is on theCUBE!
>> We should be announcing that.
So I think that again, enabling
the ecosystem to provide solutions.
And I think as customers provide
their own branded solutions, hopefully that's based
on Oracle Cloud services and it's something that they can
just re-brand, maybe augment, customize,
and deploy for their own customers.
>> They're giving us the bell here,
but I want to get one last word in,
we've got a little noise factor going on here.
>> This is alright, man.
>> The Infrastructure as a Service really
is the third leg of the stool here for you guys.
Big push here, you have the SaaS
business on the press release.
Second year in a row, Oracle has sold more
SaaS and PaaS than any other cloud service provider.
I think Larry used the word combined.
Not sure I agree with that, but I haven't looked up
the numbers, so I haven't fact-checked that.
But then the next one comes down here as
the second generation infrastructure
that does twice the compute, twice the memory,
four times the storage, 10 times more IO,
20% in price lower than Amazon Web Services.
It's a new opportunity for Oracle to layer
on top of our rapidly growing SaaS and PaaS.
How are you going to layer infrastructures
on top of PaaS and Saas?
Isn't it the other way around?
>> Yeah, I think it, yeah, sort of how do you look at it.
They're tightly integrated.
There's different sorts of entry points for IaaS.
There could be discrete compute, but we think ultimately
we see a lot of pull through from PaaS.
So I might be deploying Oracle database but I'm doing it
on a non-Oracle sort of application here.
So I move the database to cloud
and I pull compute to support that.
And then from a software perspective, as Mark would say
and Larry would say, we actually when we sell SaaS,
you know, Software as a Service, we're selling
that full stack to go along with it.
>> Well, put it this way, that a database buyer
looks at IaaS and sees infrastructure.
An applications seller looks at the
database and sees infrastructure.
And so as you said, it's really what your perspective is.
Containers is going to make it even more complex.
>> Yeah, I agree.
But it's interesting, 'cause I think ultimately that's
the more strategic way that this is going to be consumed.
I don't think you walk into somewhere,
you say hey, you want some compute?
We got some compute.
Maybe more on the storage archive position,
but when you look at the application development, when you
look at applications, when you look at migrating databases,
I think that's where you're going to pull
through the infrastructure, and so that's why
we're focused on offering all three layers of the cloud.
>> There's definitely a trend towards enterprise-grade cloud,
I was seeing that here at Oracle and at VMworld.
We were just at theCUBE there.
You're seeing this shift, they're getting out
of the cloud game, so they're a different strategy.
But Pat Gelsinger when I asked,
pressed him on Amazon Web Service,
saying did Amazon Web Service kind of force your hand?
He kind of called it the developer cloud.
That's how he called the Amazon Web Services.
But they have developers.
So my question to you is what's the strategy for developers?
'Cause at the end of the day we're seeing,
talking to the VC certainly that was just on,
there's going to be a mobile explosion of
enterprise developers for mobile, cloud, lot of white space.
You guys have an ecosystem,
you have PaaS that's developer friendly.
>> It is very developer friendly.
>> What do you do with developers?
Give us the update.
What specifically are you guys doing in market.
>> We have a big focus you're going to
see with respect to developers.
We've had Java developers that
have been an incredible community for years
and we've been serving them for years.
I think Judy, before Larry took the stage,
announced Oracle Code, which is going to be a
multi-city road show where can get together.
We're going to provide them access to Oracle Cloud,
allow them to develop in multiple type tools,
which I think was an important part
of the announcement as well.
Larry's saying look, it's not just about Java.
It's about Ruby, it's about Python,
it's about Node.js, it's about having
an open platform that supports all developers.
Tools like application containers
and some of the other things.
>> How would you grade you guys now?
Not well suited for developers?
Certainly Java you have developer community.
But in market when you bring it to customers,
is there a developer program that you guys have in motion?
What's in the market?
>> We do have things in motion.
There's a developer program today
and we continue to expand in that community.
So we move away from just maybe traditionally
Oracle developers to a broader set of developers.
I think giving them a robust
enterprise-grade platform, that gives them choice.
So you're going to see a lot, hopefully we'll see
you guys on the road at some of these events.
But we're going to go out.
>> There's a huge demand for developers
to create opportunity in the ecosystem.
I know you got to go, better wrap up.
Thanks for spending the time.
>> No thanks, a great way to wrap up the day.
>> Congratulations, I know you're running hard.
You look great, nice watch again.
Yeah, flash the watch.
>> I just miss the pocket square that you guys had in DC,
I got to get that right next time.
>> Best dressed man at Oracle.
We are here live at theCUBE in San Francisco.
I'm John Furrier, Peter Burris.
Day one of coverage, three days wall-to-wall here live.
TheCUBE, Thanks for watching.