Good day, ladies and gentlemen, and welcome to the Oracle and Salesforce.com Press and Analyst Briefing. Today's conference is being recorded. For opening remarks and introductions, I will now turn the conference over to Mr. Ken Bond, Vice President of Oracle. Please go ahead, sir.
Thank you, Debbie, and thank you all for joining us today to hear more about salesforce.com and Oracle's new strategic partnership announced earlier this week. On the call today is Oracle's CEO, Larry Ellison and salesforce.com's Chairman and CEO, Marc Benioff. Each will provide some insights into the recent announcement and then we'll open up the call for your questions. As a reminder, the matters we'll be discussing today may include forward looking statements and as such are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC. Specifically the most recent reports on Forms 10 ks and 10 Q, which identify important risk factors that could cause actual results to differ materially from those contained in the forward looking statements made today.
We will discuss some important factors that relate to our respective businesses and which potentially may affect these forward looking statements. You are cautioned not to place undue reliance on these forward looking statements, which reflect our opinions only as of today, and please keep in mind that we're not obligating ourselves to revise or update these forward looking statements in light of new information or future events. Lastly, it's possible we may discuss unreleased products or services not yet available Because we cannot guarantee the future timing or availability of these products or services, we recommend that customers listening today make their purchase decisions based on products or services that are currently available. The development, release and timing of any unreleased products or services remains at the sole discretion of each company. With that, I'll turn the call over to Larry.
Okay. Mark Benioff, I think you're in the kickers off. Okay. Hey, thanks so much, Larry. We really appreciate that.
I just landed last night from Europe, as you know, Larry, around 6 o'clock. And I've been on a world tour and it's absolutely one of the most exciting things I've ever done in my life. I've been through Asia in Japan. I've been through Europe now. I was in the Middle East as well last week and I've been in every major city in the United States.
And I'll tell you, I've never been more excited about the changes and transformations and what is going on in our industry is just spectacular and to me just overwhelming. I mean, I don't think there's ever been a better time to be in our industry. And I think today's call and between me and you is just more evidence of that. Larry, the Oracle database has been a key part of Salesforce's infrastructure from the very beginning of our company 14 years ago. It was absolutely the best decision we ever made was to go to Oracle.
And now that Oracle has focused on the cloud, they've made a number of improvements to the database technology that are extremely important to us. And we are delighted now to commit through this incredible partnership to another 12 years of using the Oracle database. We think that the combination of Oracle's new 12c database, Oracle's new Linux, Oracle's Exadata allows us to improve our overall system security, reliability, performance and it cuts down our database server costs in half. That's great for our customers. It's great for us and I couldn't be more thrilled to make this announcement with you today, Larry.
Over and back to you, Larry. Thank you very much, Mark. Salesforce.com is the world's largest cloud company. Thousands of customers use their applications and their platform. We're committed to working very closely with salesforce.com to continuously improve our database and our Java middleware technology, so we can help salesforce.com deliver the highest level of security and reliability to their cloud customers.
Our 2 companies are going to work together to jointly develop out of the box integration between Salesforce's market leading CRM applications and Oracle's cloud applications. These productized integrations will enable customers to buy cloud applications from both Salesforce and Oracle. These pre integrated applications will automatically share data and work together. That means faster, lower cost implementations for all of our joint customers. Back to you, Mark.
Well, hey, thanks so much, Larry. To make sure that our multi vendor cloud application integrations work extremely well, Salesforce is going to be a user or I should say continuing to be a user because we've been using Oracle's applications from the very beginning of our company, but we'll be a user of Oracle's new Fusion HCM and Financial Applications And Oracle is going to be a user of Salesforce's CRM applications. We are absolutely thrilled with that. And by doing joint development and using each other's technology, we're going to ensure that our applications work perfectly together when first implemented, absolutely seamlessly, and continue to work when we upgrade to each and every release. This is going to minimize our customers' implementation times and costs, and that's exactly what customers expect when they move to the cloud.
Okay, back to you, Larry. Okay. Thanks, Mark. I guess both Mark and I are now ready for questions. So, operator, take it away.
Thank you. We'll take our first question from R. Wong with Constellation Research.
Hi, Mark. Hi, Larry. How are you? Congratulations.
Thank you.
So the question goes to Mark on one end. You've built a culture of being defiant, of being edgy, of taking the SaaS in that direction and SaaS asked in that direction. And the move to Oracle, what we are hearing from both customers and employees seems to feel like it's going in a legacy direction. And that's the appearance that it seems that we're getting from our customers. How do you address that versus the wonderful cost savings and the technology skill that you're getting on the Oracle side?
And then the question for Larry is really when you look at Oracle and the 12c and the cloud, is this really the ability to now say that Oracle powers the cloud and most of the successful companies given the string of partnerships that you've been announcing over the past week?
So two questions. Sure. And Larry, I'll start out if that's okay with you. Absolutely. I think that this is really important to understand that as I said, over 14 years ago, when we first designed salesforce.com, we had to choose a database that could handle the transaction capabilities, the reliability, the security, the availability, not just the RAS support, but also the transaction integrity, the concurrency, the backup, all the things that are absolutely key to building and delivering mission critical systems at scale.
And if you go to trust. Salesforce.com, as I mentioned, you'll see it delivering over 1,000,000,000 customer transactions each and every day. Well, that happens through a very sophisticated infrastructure that Oracle has built, I mean that salesforce.com has built over the last 14 years and a critical part of that infrastructure is Oracle. That's not new. That is something that has been there for 14 years and has been the heart of what we do each and every day.
And I'll tell you that as sales force has grown and scaled and hit these incredible levels, Oracle has been there with us when we've had problems, when we've had issues, when there has been challenges, which there always is in computing. Oracle and I also just want to thank Larry as well, always there for us whenever we need them. They are a true partner. They've always been a true partner. But now we're at a critical point at salesforce.com's history.
As you know, we're coming up to a year, we're going to be doing more than $4,000,000,000 in revenue. We've got 100 of thousands of customers. We have to make a decision. Is the infrastructure that we've built on Oracle over the last 14 years going to take us to the next 1 or 2 decades? And the answer to that is absolutely.
There's no better product in the world in the database area than Oracle. And with 12c, with Linux, Oracle Linux, with Oracle Exadata, gives us the ability to have the lowest cost, highest performance, highest security database in the world and I couldn't be more thrilled with the ability to bring that message to you today. Larry, back to you. Okay. Thank you very much, Mark.
Again, I think Oracle has always evolved. The Oracle database has been around for a very, very long time, and it's always evolved. When it used to be used to run on mainframes and mini computers and then we went to the client server era and then we went to the Internet era and now we're entering the cloud era. Every time the industry has changed, the Oracle database has changed with it. And now with the Oracle 12 gs database, we put in a bunch of features specifically for cloud companies.
And again, the biggest cloud company and the biggest test for Oracle 12c is salesforce.com. They've got all those customers, all of those transactions that have to run reliably and securely from very different clouds. And we have made, again, a bunch of improvements to our database over the years. And now 12c is aimed specifically at the cloud. So, we think, again, this will allow people using Oracle 12c to not only have the best reliability and security, but when you combine that with Oracle Linux and Exadata, you'll also have the lowest cost.
And that's a big deal. I mean, when we first launched Exadata, we talked about just how you get extreme performance out of Exadata, how it's incredibly fast for your most demanding applications. Well, what's more demanding than salesforce.comcloud? But it's not enough to deliver that extreme high performance. We have to deliver it at an extremely low cost.
That's what cloud customers expect. They expect rapid implementations and economic benefits. And Exadata is designed to be the lowest cost cloud infrastructure in the world and deliver the highest performance. You don't have to get one to get the other. I think that's what makes the Exadata, Oracle Linux, Oracle Database combination attractive to cloud providers like Salesforce.
No, thank you. I get the faster, better, cheaper message and we see why. Thank you.
We'll take our next question from Jason Maynard with Wells Fargo.
Hi, guys. Good afternoon and congratulations on coming together. I have to say though, I think both of you guys on a call together would be more fitting for a big stage with some lasers and some smoke and something to give you guys a little more oomph to it than a conference call. But anyway, I have two questions for you guys. So first, coopetition is prevalent in the software industry.
But can you walk us through a little bit on how this relationship between Oracle and Salesforce is going to change now that you're working closer together? And the second question maybe for Mark directly, if you're going to run on the entire 12c and exo stack, is perhaps the next leg of this dropping a sales force and ExaStack perhaps into my data center, not just keeping it in the sales force data center? Thanks. Hey, Larry, do you want to start out this time? No.
I think it's always good when you go first, month. Thank you. Well, I'll just it's a great question, Jason, and I'll tell you, we've had some phenomenal success, as I've articulated with the Oracle products. And I'm really by the way, Larry said something so subtle that's so powerful. Our industry is filled with market transitions and so few companies have survived these market transitions.
Larry talks about, I remember Oracle, whether it was on VMS or MBS or VMCMS and then Oracle moving for the first time everywhere from network loadable modules to running on Windows to Oracle today having its own Linux capability. And each and every time improving Larry's leadership over so many decades of running Oracle has really ensured that today it is the best database product in the world and a company that guarantees itself to be able to make these market transitions is just phenomenal. And to that point, that's why we're making that commitment back to Oracle. And it's such an easy commitment for both of us to make because there is no company that I'd rather partner with to be the heart of our database infrastructure than Oracle. Now in regards to what is the next step with Oracle and Salesforce working together, I think that the opportunities are really just endless.
I mean, you can see a lot of different capabilities today. As you know, we're a fully multi tenant shared architecture. We're constantly listening to our customers. They love that because it's given them the ability to delegate to us upgrading and enhancing our capabilities while delivering back 150 new features every 3 or 4 months back to them. And we don't have a huge demand point for customers asking us to drop ship hardware into their data centers.
Now that just isn't what they come to Salesforce for. Of course, that's something that Oracle could do for them. That's something that maybe others could do for them. But I don't see that as something that customers are really asking us for. If that ever changed, we're a customer driven company.
We're going to do what the customers want. And to that point, we've continued to make enhancements to our systems over time. And you saw, for example, we've made a major commitment to the U. S. Government to deliver a U.
S. Government version of Salesforce that's on its own dedicated hardware capabilities. So that is an iteration of our stack, where we do have a bifurcated infrastructure for the government. And for other organizations in the world, if they came to us and said that they wanted to have that kind of capability, of course, we would be willing to discuss that with them, but it hasn't been something that the banks, telecom companies, media companies, technology companies that we deal with every day are looking for. They really come to us for that multi tenancy, the speed and continuous innovation.
Those are really the hot things for us. Back to you, Larry. Okay. Let me address the cooperation, competition issue. Sure.
I mean, we Salesforce and Oracle have some overlapping products. But I think there are far more opportunities to work together than to compete. So, on the entire infrastructure part of the stack, I think we will work with salesforce.com, again, to constantly improve security. Security is a very big issue now for cloud applications. Everyone wants to be certain that their data is secure.
Everyone wants to make sure that they've got 20 fourseven access to their data. And I think by working with a company like salesforce.com, we gain all sorts of insights as to what is required of us to continuously improve that infrastructure so we can deliver that a higher and higher degree of security and a higher and higher degree of reliability to our customers across the board. On the application side, that's the infrastructure side. So, it's just continuous improvement by working together, by doing joint developments, by gaining joint insights, serving our customers. On the application side of the equation, customers like choices.
And they're going to choose Oracle applications. They've already chosen by the 1,000 Salesforce applications. And they expect when you move to the cloud, they don't expect a multiyear, dollars 100,000,000 project to implement their next generation of applications and make those applications work together. To make the CRM applications and sales force work with the ERP applications of Oracle isn't going to be a multiyear, very, very expensive implementation. We've got to make that implementation work right out of the box.
You've got to be able to turn on the sales force, CRM applications, the Oracle HCM or ERP applications, And those things just have to start sharing data and working together, the keyword being seamlessly, as if they were from 1 vendor. I think that's what Salesforce customers have come to expect. I think that's a cloud customer to come to expect. And that's what Mark and I are committed to working on. And that's why Oracle is going to use Salesforce products.
Salesforce is going to use Oracle products. So we're going to be users to make sure that they work, that they work for us every day, that work for our customers every day. Next question, I guess.
We'll go to Aaron Riccadilla with Bloomberg News.
Hi, thanks for getting me in. So I have a question too actually for Larry. So looking at the announcement and following all your announcements and calls this week, I mean it looks obviously like Salesforce has committed to buy a lot of Oracle and that's really good for you guys. And but I'm wondering 2 things. 1, how does this deal you've also announced a couple of points of integration with HCM and Financials.
How does this deal make Fusion apps more appealing to customers? And what are the opportunities for more integration? Could you see doing something that's more developer oriented along the lines of what you did with Microsoft earlier this week?
Yeah. Well, first of all, Salesforce has always been an important customer for Oracle. But this is not about that. This is about the partnership with salesforce.com and, again, making our joint product better by working together. So, as I mentioned before, the preintegrations at the application layer, the continuous improvement in security and performance and economy at the infrastructure level, all extremely important.
That's going to come from not a customer supplier relationship, but from a partnership relationship. And that's what's very important to Oracle moving forward. And why is it important to Oracle? Because it's important to our customers. And my suspicion is Mark would second that.
Customers Salesforce is a big company now. Customers expect us to work together professionally towards the benefit of those customers. Now, we have a lot of people that use Oracle applications. It is a graceful upgrade from our current on premise applications to Fusion and ERP to Fusion in the Cloud ERP, to Fusion in the Cloud HCM. As those customers upgrade, they're and they're using Salesforce CRM applications.
Those customers want those integrations. We don't want each and every one of those customers having to hire a 3rd party or having to spend a lot of money to wire up the Salesforce applications to the Oracle applications. We'd like to deliver those integrations as products. So, you just plug them in, turn them on and it works. And as far as how does that help Oracle Fusion Applications, well, it makes the Fusion Applications much easier to adopt.
You've got you're an existing Salesforce customer, you're turning on, let's just say, Oracle Financials. It's much easier to turn on Oracle Financials if it's prewired to your Salesforce CRM application. So, we're trying to again, our big focus with this partnership is to make cloud applications, all of them, ours, sales forces, easier to adopt, easier to implement and safe and secure to run.
Thanks for that answer, Larry. And I believe you've said there are about 150 customers live on Fusion apps today. What would you say the crossover is with those customers running Salesforce also?
An awful lot of our customers run Salesforce. Let me tell you the ones that I know. Virtually, every time we buy a company, they're running I would say every time, but almost every time we buy a company, they're running Salesforce.comCRM. And in the old days, we would kind of try to move them over to our sales automation application our Fusion sales automation application right away. We're going to lead some of those companies on the Salesforce application for the specific purpose of making sure our integration that's why I say we're going to become a user of Salesforce.com's CRM applications.
We're going to leave those implementations in place. We're going to wire them up to our financials. And we're going to be an early adopter of these out of the box integrations. So, I mean, obviously, I'm sure market can do a better job than me at telling you just how successful salesforce.com has been in CRM. But we see them all over the market.
They're the market leader and our customers expect for us to work gratefully with salesforce.com, both at the application level and the company level.
Thanks.
Yes. I'll just add to that and thank you for that Larry. And I mean we want to say this with some level of humility which on this call is difficult.
But we've
been recently ranked by Gartner and all of them last month as the number one CRM provider in the world. They say we're number 1 in sales and we're number 1 in service. And we just announced that we've entered into an agreement to buy a company ExactTarget that we hope will bring us to be number 1 in marketing. And in each and every case, our desire is to make sure that our applications and our platform are built on this world class database technology. The way that we got to be number 1 in sales service and marketing, number 1 in CRM overall and market share and technology is by making critical technology decisions.
Fortunate for us, lucky at times, I'm sure, because as I said, when you're building these types of solutions, especially to Jason's point, the multi tenant shared solutions and the level of reliability and availability, security and scale and speed that we've become known for, it's because we've made this critical decision to go with the Oracle database now 14 years ago. And now as we go forward, the level of it's exactly what Larry said, the level of security, the level of reliability, availability that we have to deliver going forward is even more important. And that's why the Oracle database is even more important to us. And when you look at 12c, when you look at Oracle Linux, when you look at Oracle Exadata, we're going to have a world class capability. And then as Larry articulated so well, those three words that Larry said that the key to this announcement is working better together.
The ability to integrate our clouds, integrate our applications, integrate our platform, so that as customers are building these next generation solutions that are mobile, that are social, that are delivering big data communities, delivering their own apps. So many of our customers today have become software They're app companies. It's amazing. It used to be when we made a sales call at Toyota or even at a major telecommunications company like Verizon or where I just was in France like an insurance company like AXA, they look to us as the software provider. Today, all those companies are software companies.
And so it's even more important for us to be able to give a platform and an infrastructure to them that they can deliver these mission critical apps to their customers. And that's why working better together is more important than ever.
We'll take our next question from Mark Viberka with USA TODAY.
Hi, Larry. Hi, Mark. Just wanted
to ask you how your relationship and the other relationships that Oracle has announced would have an effect on the competition with Amazon Web Services?
Larry, I'll let you take that one. Okay. Thank you. Well, as you know, we have a relationship with Amazon. Again, I mean, I'm here primarily to talk about our new partnership with salesforce.com.
But we have a relationship with Amazon. You can run the Oracle database on EC2, on their Elastic Compute class. And we think they're obviously an important player in the cloud. And we would like to see the Oracle database running everywhere in the cloud. And we have no we look forward to a continued relationship with Amazon.
Thank
you. And I'll just add that from Salesforce's perspective, Amazon is a very important customer of salesforce.com. Also, Salesforce is a very important customer of Amazon.com. You may know our Heroku environment runs natively on the Amazon infrastructure. And in addition to that, Amazon is a very important partner of salesforce.com in that we've architected our application programming interfaces to work seamlessly between Amazon's full range of services and our services, so that customers can use Salesforce's applications and platform seamlessly with Amazon's Infrastructure as a Service.
Thank you.
We'll go next to Heather Bellini with Goldman Sachs.
Great. Thank you, Larry and Mark. I was wondering, you all mentioned a reduction in implementation costs for your customers. I'm just wondering if you could give us a sense on average on a percentage basis, how much do you think this will save them given the implementations that you're going to be doing kind of out of the box? And I guess the other question, Larry, that we've been getting a lot of is, given the relationship and the partnership now between the two companies, does this mean at some point we could see Oracle actually helping Oracle sales reps actually helping to drum up leads for salesforce.com in the area of SFA?
Thank you.
Well, Mark has ever once turned to me to drum up leads for salesforce.com. So, I think they're doing a pretty darn good job on their own. I'm not sure that that's where they need our help. I'm sure they're better at that than we are. So, we're going to work with salesforce.com, again, as it needs 2 layers.
The infrastructure layer is to make it more reliable and more secure and more cost effective, all of the above, more reliable, more secure and lowersalesforce.com's electricity costs, more space based requirements, overall just dollar cost making it more compact, higher performance and more manageable. So, economics, reliability and security at the infrastructure level. Actually quantify how much of the savings will be when the integrations are out of the box is a bit difficult. But let me say, when every customer has to do their own project to wire up a Salesforce CRM application to, let's say, an Oracle HCM application, whenever they have to do that over and over again, that's just an astronomical, not only a dollar expenditure, but the quality of those integrations will not be as good and reliability of those integrations and the security of those implementations won't be as good as our product size integration. So, I think the savings in time and dollars and downtime is enormous.
It was more than and I'll just venture, I guess, it will certainly more than cut those costs in half. Well, I couldn't agree more with that, Larry. And I'll tell you that in 2005, salesforce.com introduced its app exchange, which has over 2,000 prebuilt integrations to thousands of ISVs all over the world. And we've shown that through the use of our AppExchange, Exchange, which is our integration platform, we've been able to dramatically lower the cost of integration for customers with these one click implementations that we've done with so many exciting ISVs. But the one customer that certainly the one software company we've always coveted to have in our AppExchange is Oracle.
And this will be an exciting opportunity to bring Oracle into salesforce.com's AppExchange with these prebuilt one click integrations. It will dramatically lower the cost for customers. It will give them the implementation capabilities into their existing Oracle applications, whether they're the financial application, HCM, manufacturing applications or others. And this is just an incredibly exciting thought that we can create a system that is going to work better together.
Thank you.
We'll take our next question from Fritz Nelson, InformationWeek.
Hi, thank you. Just a follow-up to Jason's question on the relationship. Is this an end to the fun entertaining potshots you guys like to take at each other over time? Also, Mark, how will we see the Force platform evolve to support Java developers? Will they have direct access into the Force platform?
Well, I certainly hope it's not the end of the fund because that's one of the things that I enjoy most about our industry. And Larry and I were together for, I think, 27 years since I first started at Oracle in 1986, and we've always enjoyed working together and having fun with each other. And hopefully, it will be the end to us getting a little too revved up at times, which occasionally has happened. But the vast majority of those 27 years have been epic and have created so much value for our industry and our customers that that's been the ultimate fun for both of us. And I'll turn it back over to Larry.
Well, I'm sure both Mark and I are going to try to continue to be entertaining while keeping but again, making sure that the entertainment never distracts from our commitment to work together.
Thank you. And Mark on the Force platform and how you're going to make that more available to Java developers and what that might mean for customers?
Well, that's been a major and critical part of what we've been focused on at Salesforce for the last several years. I think that Oracle had a brilliant move when they purchased Sun Microsystems. And I think perhaps the jewel at Sun, even more important than any other technology was Java. And of course, we work very closely with Java at Salesforce, but also we also have delivered job as a service through our Heroku environment. We want to continue to do more with Java.
I think this is a great opening for us to go even farther with Java and Oracle. And I hope that Java developers will feel welcome using the salesforce.com infrastructure. Let me kind of add to that. Hopefully, this is not the last announcement that Oracle and Salesforce does We haven't spent a lot of time talking about the Java part of the platform. We focus on the database part of the platform, where there's a Java part of the platform.
And I think there are going to be opportunities for, again, Oracle and Salesforce to work together on the language part of the platform, making sure that Java and force.com complement each other and that people can build those applications in the way they want to build those applications. And again, this is an area, again, where we're not ready to announce any kind of agreement. But it's an area where the salesforce.com and Oracle can explore. And if it makes sense, we'll have another announcement, make another call and try to make all the developers happy. Absolutely.
And I'm going to give Larry an open invitation to attend our Dreamforce conference, which will be coming up in November. We'll have 120,000 customers coming and many of those customers would love to buy those Oracle applications from Oracle and love to introduce, Larry, to all of our customers as well. I'll tell you that as I started in opening up the call and now as we start to end the call, I just want to say, I've never been more excited about being in the industry. It's an incredible time. It's a magical time.
It's a fantastical time. And the things that we're seeing change in our industry, things like the dramatic impact of billions of people on social networks, billions of people on mobile devices, huge shifts in how we deliver big data, how we've seen customers gravitate into communities and how we have seen this next generation world open up with the cloud and apps of all sizes, it just shows me that the opportunities for transformation and change are just limitless right now. And the very concept that Salesforce and Oracle can come together to create a 1 +oneequals3 equation or a best of both worlds equation or as Larry said beautifully, working better together means that we're able to provide an infrastructure for all these new apps and all these new services and all these new kinds of computers. I've got wearing 2 new computers on my wrist right now. I mean, it's an amazing time in our industry and that this alliance is going to beget, I think, some incredible new innovation for everybody.
And I'll turn it back over to Larry now. Yes. Again, I'll just first of all, let me accept Mark's invitation to Dreamforce. I would love to be there.
We'll take our next question from Art Hesseldall with All Things D.
Hey, guys. My question is pretty straightforward. It's about how these integrated applications are going to be presented to customers on a sales basis. Initially, I read it as if some of the Oracle applications, the Fusion applications might be resold by Salesforce, but I've since been told that that's not correct. So as a practical matter, how do these ultimately get presented to customers by the sales forces of each company?
Look, I think Oracle will continue to sell Oracle applications and Salesforce will continue to sell Salesforce applications. And we'll both and the integrations will be available from either company. So, that leaves us with the way I believe it's going to work. You'll probably go to force.com, do a search and just click. And as Mark said, there's your integration.
Okay. So, it's literally that simple to just turn it on when you become a customer of either one. Okay, that makes sense. Yes. Again, to me seamlessly means that it's almost as if it was coming from 1 company, that the technology you're going to log into the Oracle Cloud to get the Oracle application, you log into Salesforce application, you press a button, you press the button and suddenly that integration gets loaded and the 2 applications immediately start sharing data and working together like it was delivered from a single vendor.
Okay. That makes perfect sense.
And as I said, you
could see some examples of that if you go to appexchange.com as well.
And we'll take our final question today from Raimo Lenschow with Barclays.
Hey, thanks for taking my question. A quick one. I'm sensing here a change in the industry in the SaaS industry. We kind of started out with kind of point solutions, best of breed point solutions. We now seem to be moving on towards more integrated clouds and you guys and if I look at the NetSuite agreement from this week seem to be starting to deliver that.
Can you talk a little bit about how your closer relationship is changing the competition that you see out there with Airaid, the point solution clouds that we have out there, but also with guys like SAP who are on the legacy apps business? Thank you.
Mark, I defer to you. I agree with you that this is we are entering the next step of our industry. I think Larry has articulated that as usual very well. He's articulated these market transitions I think with more clairvoyance than anyone else I know over the last 30 years. And this next transition is that we are moving into a world of phenomenal services that are available instantly to customers of all sizes.
And these services are available today through a wide range of capabilities, whether it's traditional computers, though I think that's happening less and less, And these services are emerging into what it was for search phones and tablets. But as I said, I've got 2 things that I'm wearables. I mean, I read this weekend about ingestibles, so that was an incredible new type of computer. I'm on the Board of Cisco Systems. We call it the Internet of Everything.
You'd call it the Internet of Things. We are in a new world. We're in the 3rd wave of computing. That's what Larry's opening comments were. He said, we were in a mainframe world many computers and that was the first wave of computing and that was about thousands of computers.
And we moved into the second wave of computing, which was client server, which Oracle pioneered. And I know I was there at the time. It was an incredible time in our industry seeing the fall of kind of the vertical stacks and the rise of the horizontal. But today, we're moving into something dramatically different where it's not about thousands of computers or millions of computers. It's about billions and billions of computers and that everything is on the network and everything is integrated.
And my car is on the network. I mean, I was just with one of our customers in Europe, Philips, who has built a new toothbrush, which is on the network. It's a Wi Fi based toothbrush, GPS located. It's giving me real time feedback on how I'm brushing my teeth. And when I go in to see my dentist, the first thing you always ask me is, well, Mark, have you been brushing?
And now I can't lie to my dentist anymore. I got to tell him exactly what's been going down because he's got all the data and that's a new world. It was interesting recently in the New York Times wrote a critical review of Elon Musk's Tesla saying that it didn't have the range. And then Elon said, really, well then why have you been driving it around in circles in the parking lot before you took it out to actually see if you could make it to our recharging station? And people forget everything's connected including that car.
So you know there's a new level of trust in the world with my dentist or with reporters or in every situation when everything is connected. And because of that world and very much to your question, this new world of services, this wide range, this all these heterogeneous devices, computers we could never have expected, And we have this beautiful capability now at Oracle, where if you need manage your customer relationships more deeply using these cloud services or you want to manage some of the services that are available from Oracle like the financial services or the other key applications that they provide, you're going to build a very sophisticated, very complex and yet very, very easy to use apps that run on this new world, in this new Internet. And it's only this is only limited at this point by our own imaginations what's possible. The power of Salesforce and Oracle coming together, that seemed incredulous. But now we're past that.
Now when you look at Salesforce and Oracle coming together, what can you build? What can you deliver that you couldn't deliver before? What not just in lowering the cost and making it more secure, but the value that we can provide to customers is just awesome. I mean, it becomes a door that is open for all of us in the industry by honestly Larry and I coming together, a door has opened that lets us go through into the future. And we are not going to be held back by anything of how the industry was.
This is a new industry and we are both committed to being leaders in this industry and that's what makes this special. And I think that your question is right on to that point. This is a new world. This is a new time. We're in the 3rd wave of computing.
And companies like Salesforce and Oracle working together are evidence that that's how it has to be in this new world because the value that can get created is just going to be epic. Yes. Let me just continue with Mark's comments along that vein. It is a different world of computing. And we've come a long way from mainframes through client server through the Internet and cloud computing.
In fact, turns out that my open world speech is going to be about the Internet of Things and just how now we have billions of cell phones that will have tens of billions of all sorts of wearable devices and sensors all over the place, from everything from cars to drip irrigation to better conserve our precious natural resources. Everything is going to be on the net. Everything is going to be optimized. It's going to put incredible stress on the infrastructure that we build and Salesforce provides. And I think that's the big reason why we've committed to work together for the next decade and beyond is because there are going to be a lot of challenges and there are going to and by working together, we're going to be better equipped to meet those challenges as we actually begin to implement the Internet of Things.
So, we're very proud about this new partnership with salesforce.com. And personally, I'm looking forward to working with Merx and Salesforce for years to come to tackle some of these exciting challenges and help the future arrive a little bit sooner than it otherwise would. Thank you.
Ladies and gentlemen, this does conclude our conference. We thank you for your participation. Have a great rest of your