Good afternoon. All right. We're very excited to be here today and to announce the Oracle Cloud. It's been a long time coming. It has taken us we started we made a decision to rebuild all of our applications for the Cloud almost 7 years ago, long time ago.
We called that project Fusion. Some of our competitors actually called it product confusion, which was memorable. But the difference was that competitor didn't do anything while we started working on applications for the cloud, again now almost 7 years ago. 7 years of work or almost 7 years of work, 1,000 of people, 1,000,000,000 of dollars to make the transition from being an on premise application provider to being a cloud application provider as well as an on premise application provider to rewrite and modernize all of our applications. It was an enormous effort.
Very few companies, very few technology companies crossed the chasm from 1 generation of technology to the next. It requires ADU recognizes a big change coming. You recognize it early enough, you make the investment in the next generation of technology while continuing to invest in your existing generation. It's a very challenging thing for tech companies to do. That's why most of them never make it across the chasm.
6 years of innovation, again almost 7 years of innovation plus key strategic acquisitions have gotten us into a position where we can launch the most comprehensive cloud on the planet Earth, the most enterprise grade applications, the most complete platform, and the most modern socially enabled technologies and applications. Next slide please. Today, we're announcing over 100 applications running in the cloud today. Live running production level enterprise grade applications for the cloud, more than 100 of them, a complete suite. We are not a niche provider.
We don't provide just sales force automation. We don't provide just human capital management. We don't provide just service automation or talent management. We provide all of it in a comprehensive suite of applications where each and every one of those applications has a modern HTML5 user interface, a modern mobile user interface. It runs on a browser.
It runs mobile on Ipads and iPhones. And all of those applications, their interfaces are all socially enabled. What do I mean by that? The applications the application users can collaborate with each other using the Oracle social network. Now last Open World, I spent a lot of time, some people would say too much time demonstrating the Oracle social network.
I think it was about a 4.5 hour demonstration if I recall during my keynote on that Tuesday. Started about noon and it was dark before I finished. Anyway, being socially enabled, having to know socially enabled applications doesn't simply mean that we have a social network whereby teams of people can collaborate and communicate and work on projects together. That's part of it. That's part of it.
And every one of our modern applications, every one of these 100 cloud based applications are socially enabled. So people are part of the Oracle social network. They communicate, collaborate, team and work together using that Oracle social network. But beyond that, we have social services that allow us to do something called social relationship management. That means that it's a little bit different than customer relationship management.
It's more comprehensive than customer relationship management. It allows us to work with people before their customers, to build those relationships so that they will become customers, to continuously improve those relationships so they'll be better customers. It means we use modern tools like the modern tools to go out and launch marketing campaigns with a presence on Facebook. We can put a store up on Facebook. We have tools to put a store on Facebook.
We have tools to allow you to automatically issue post store and buy things. But more than that, we look at these web logs. We look at the Facebook logs and we process the Facebook logs and the Twitter logs and we see what customers are saying about our products and about our services. We analyze those. What are they talking about?
Do they like what we're doing? Should we tweak our marketing campaign? Should or did they think our products are overpriced? Should we monitor the process? If we launch our product, do they again, which of their tweets are positive, which are negative?
On some of the negative ones, we can route those actually to service representatives
who could
then contact that dissatisfied customer, address their issues and turn them into hopefully a satisfied customer. So the whole issue of social relationship management means using modern media, Facebook, Twitter, Google Plus so on, to see what people are saying about our products, to establish a presence on Facebook, to establish a presence on Twitter, to drive them to our store, to inform them about our products, all using social media. That's that whole new category called social relationship management. That's a big part of what we're talking about here today. Next slide please.
Now before you can build this 100 plus enterprise grade applications, You have to have a foundation. You have to have a platform on which to build these applications. You need and like I mean nothing's real in a sense nothing's changed. We just had to do more than we did before. For on premise applications, we needed a database.
By the way, for cloud applications, you need a database. For on premise applications, you need application development tools. For cloud applications, you need application development tools. Now those tools have to run-in the cloud. That database has to run-in the cloud.
But you need the same kind of platform services that you always have, but they have to run-in the cloud. And we have this very complete set of platform services that serve as the foundation of these 100 plus enterprise grade applications. We have developer services. We have scripting languages. Obviously, we have tools to allow you to write mobile interfaces where they're through HTML5 and they run on a standard browser or native applications that run on the native UI on iPad or iPhone.
We have document services that's part of the Oracle social network that allow people to share documents, share files and collaborate around those documents. We have again site services. I mentioned we can put up a web process, a dotcom website, but more modernly, we can put up a Facebook presence and we'll actually demonstrate that. And then we have all of these analytics services that analyze data from a variety of sources including social media. Next slide.
All right. The database we chose, I mean, this is coming a lot as a big surprise for our cloud. We decided to go with the Oracle database. We got a good price. And we offer again, the Oracle database is at once the foundation of all of these 100 enterprise grade applications, but also we offer a service, a platform service, database services.
So, we're announcing today not the fact not just SaaS, not just the 100 plus enterprise grade applications. We're announcing that. It's very important. But we're also announcing that you can use the Oracle database platform as a service. So you get to use the Oracle database.
You can use the Java service. There are all of these services they're also available in the cloud, separate from the applications. So, if you want to extend the applications, you want to connect up the applications in the cloud to the applications on premise, you use these tools, you use these platform services, including the Oracle database. One of the things about the Oracle database in the cloud is it's secure. When you're using our applications, when you're using our database, your data is not commingled with other customers' data.
It's secure and it's separate. It's a big difference between our cloud and most of the other clouds on the market. We keep your data separate and secure. It's not comingled with your competitors' data. Next slide please.
We have Java Services. Any Java application you're running in on premise can be moved to the cloud. Any application, Java application you have running in the cloud can be moved on premise. This is another big differentiator between us and our competition. You can move things gracefully back and forth Oracle databases, Java programs back and forth between the cloud and on premise.
You're not making a forever commitment to keep it on our cloud. We'd like you to keep it there, but if you want to move it back to on premise, you can. You have that option. You have that choice because it's the exact same industry standard technology both places. You can run it on your computers or you can run it in our cloud.
And it's secure. When you build an Oracle application, you get your own virtual machine. So, your application is running in your own VM. So you are protected. You're guaranteed a certain level of service and your application again isn't is secure and safe separated by a VM.
Modern virtual technology is how we provide safety with our cloud, keeping your data separate and your application separate. A big difference between what we offer and what some of our competitors offer. Next slide. Again, you can take an application that you developed on premise and move it to our cloud or you can develop in our cloud. We give you a variety of tools to develop with.
We give you lifecycle management tools, any all the popular scripting languages, mobile interfaces, it's all available. You can develop it on premise, run it in the cloud, develop in the cloud, run it on premise. It's the same stuff both places. Next slide please. We have document sharing.
Collaborations are very important. You have teams of people doing development. You have teams of people doing all sorts of things. So we of course we allow you to we provide a variety of collaboration tools, file sharing document, document sharing tools. We allow end users, by the way, end users to deploy sites.
The previous slide were all the services we provide programmers, developers. This slide are all the services we provide to end users. So end users and I'll show you, end users can actually develop websites, web stores on Facebook using a drag and drop interface without any assistance from programmers. So, we have a complete suite of tools for developers, programmers and a complete suite of tools for business users where they can deploy develop and deploy applications in the cloud. And of course, they also can get access to data in the cloud.
They can we give end users a set of tools whereby they can analyze. So you do deploy a store on Facebook and you'd like to see what people are posting about the store and about the products you're selling on the store. We provide you with tools where you can analyze those posts, analyze those tweets and respond and you don't have to be a programmer to set that up. You don't have to be a programmer to do that. We have tools for business users who can do that directly in the Oracle Cloud.
Next slide. Our platform not surprisingly is based entirely on industry standards. There are an awful lot of cloud platforms that have proprietary development languages, all sorts of proprietary, this stuff in proprietary database technology, proprietary this and that. Everything we do on our platform, all of our platform services are based on open industry standards. And all the tools that are available in the cloud are available on premise, everything on premise available in the cloud.
Again, you move applications back and forth. We're the only guys that can do that. We have user we enable users to develop applications, to run applications, to analyze data without the need for interacting with technical people, programmers. Everything is secure. You run-in your own VM.
You run-in your own table space, your data isn't commingled, your application is running in your own virtual machine, everything is secure, performance is predictable. And it's very easy to take our cloud applications and extend them and integrate them with the applications you have running on premise. It's a standard service oriented architecture. So, it's very easy to connect up these applications one with another in the cloud to other applications in other clouds to applications you have running on premise. It's very easy to make the migration to cloud gracefully, where the applications you first deploy in the cloud can be wired up and connected to the applications you have on premise.
Next slide please. We have lots of customers already using our Oracle Database Services. Again, these are the platform service customers, not the application customers. We have platform service customers using the Oracle Database. We have platform service customers developing Java applications in our cloud.
We've been doing this for some time. Next slide please. Okay. Once we have this comprehensive platform, this foundation where our customers can come in and build Java applications, build database applications, we use that foundation also we use that foundation for our own applications. And we developed again over this period of between 6 7 years, we developed more than 100 modern applications for the cloud.
We didn't develop 1 or 2 applications in this niche or that niche. We developed a complete suite of enterprise grade applications. ERP, CRM, HCM, Human Capital Management, Talent Management. Again, you'll probably notice that the Talent Management was the result of an acquisition to LEO. We're very excited.
They are the technology leader. We're very excited to buy that company. However, human capital management we developed over the last 6 years, last 7 years. That was innovation. This has been a combination of years of innovation and investment combined with some key strategic acquisitions to put this cloud together.
It took both. Simply buying things wouldn't have been enough. You can't kind of just wake up today in 2012 say, oh, God, I better get to the cloud, I need to buy some stuff. We started this again 7 years ago, this forced march to the cloud rebuilding all of our existing applications and supplementing with key strategic technologies. So we built HCM and Fusion.
We built sales and marketing. Customer experience, we bought a great company called RightNow, who is kind of the technology leader, the market leader in what some people call service and they call customer managing the customer experience, very important technology that we acquired. Financial Management, we built all that. We built all of that. Procurement, sourcing, inventory, we built all of that.
Project management, we built all of that. Governance and risk, we built all of that. And common infrastructure, we built all of that. So again, a huge amount of innovation. This is was a gigantic effort.
I can't if there's one point I'd like to make this afternoon is how hard it was, how long it took, how many people were involved, how much it cost. This is a huge barrier to entry for anybody else. SAP made a very interesting announcement that they won't have anything in the cloud for real that they're developing until 2020. Now I understand that because they start today, it takes about 7, 8 years to do this. So if they start today and they haven't started yet, maybe they get there by 2020, maybe.
I don't think they'll make it, because our applications will be will have 8 years of maturing. I don't know how you start now for the cloud. 2020, excellent vision. 2020, great news program. 2020, a terrible year to get to the cloud.
I just look at how long it took us to do this and we think we're pretty good. We spend $5,000,000,000 a year on R and D. We have quality engineering in quantity. And this was as difficult a thing as we've ever done at Oracle. In terms of the length, the duration of this project, how many people were involved, the fact that we couldn't do it all ourselves, we had to make the right acquisitions as well.
Not easy. Not easy. And it's I think it's too late to get started in 2012. All SAP has got success factors. We have 100 enterprise grade applications in the cloud, a comprehensive platform, a social network, social relationship management and they've got success factors.
Might not be enough. Next slide please. Okay. Applications. ERP, the biggest ERP vendor, the biggest ERP vendor in the world is SAP, but they got nothing for the cloud and we're here and we're here and we have planning and budgeting and accounting and project management, procurement sourcing.
I'm just reading the slide. It's a that's a lot of applications to do all the financial accounting, budgeting, planning, all of the work from budgeting to accounting for what actually occurs, you're getting your actuals and then comparing your actuals actuals with plan, analyzing what's going on. That's a huge amount of work, accounting, finance, enterprise management, a huge amount of work. It's all in the cloud now. It's all in the cloud and available today.
Next slide please. Human Capital Management, again, we did this is all innovation. We did all of this. Building a global payroll, very hard, very, very hard. Compensation, compensation work benefits, huge amount of work to get what some people used to call personnel, automating personnel into the cloud.
We started 6, 7 years ago. We're ready today. We're launching it today. It's production today. We have customers today.
We're winning deals today with Oracle HCM in the cloud. Next slide please. Talent Management, again, this is an acquisition we're very, very proud of. We're thrilled to have the Taleo team at Oracle. They had the best software on the planet.
It happened to run-in the cloud to source, recruit, develop, retain the most talented employees. And that's important to every, every customer and important to every business, important to every organization. And it's a capability we wanted to have in our suite. And these guys were the leaders in this and we're thrilled to have them in the Oracle Cloud. Next slide please.
Sales and marketing, again, a huge effort. We compete we'll be competing aggressively with salesforce.com and sale in B2B sales automation. But again, we're so focused not simply on B2B companies selling to other companies, but also on B2C. And that's where our big investment in social relationship management comes in, being able to use social media to communicate with customers proactively and listen to what customers are saying about our products to do a better job of managing those relationships. So sales and marketing has to do with not only running big sales forces, but also building relationships with consumers.
And we think we have a real head start in all of that. Next slide please. Customer experience customer service, managing the customer experience in a graceful way and in an efficient way using all sorts of media, whether using our knowledge management technology, using web and mobile as well as traditional means of communicating with customers, document sharing, chat, all of this extremely important. So sales, marketing, customer experience or service is part of the Oracle Cloud. Next slide please.
Okay. All right. So we are not trying to be a niche provider, 1, 2, 3 applications in the cloud. We are providing a complete suite of CRM applications, sales, marketing, service, a complete suite for B2B and B2C, including social relationship management, a complete suite for ERP, a complete suite for human capital management and talent management. The most comprehensive by far the most comprehensive set of applications in the cloud available from any vendor in the world.
We've been committed to industry standards for many years. Going to the cloud doesn't change any of that. The industry standards are still industry standards, very, very important. Some people go to the cloud or some new companies go into the cloud and said, well, standards aren't important to be in the cloud, but don't worry about standards. It's important to be in the cloud, but you don't need to worry about security so much.
We don't think so. We think being in the industry standards are still important. You don't forget everything you learned over the last 20 years about IT just because you're going to the cloud. Security is still important. Industry standards are still important.
Reliability is important, scalability is still important. All of those things are still important. I want all those things now in the cloud. Being able to connect your existing applications to your new applications in the cloud. Well, you got to be able to do that and the most the easiest way that we know how to do that is to have a proper service oriented architecture, makes integration very, very simple.
Business users have to be enabled to use these tools directly without having to go through IT. These can't simply be transactional systems. They also have to be systems that allow us to gain insight, to gain analyze data, to gain intelligence about what is going on, so we can make better decisions, whether we're making financial decisions or marketing decisions, It's all based on having better information. Security, we think a modern cloud is virtualized. We think a modern cloud doesn't mix your data with your competitors' data in the same database.
We think a modern cloud lets you decide when you want to upgrade, not have the cloud vendor tell you when you upgrade to the next version of the software. We think that's a very big deal. If we're selling to large enterprises and we will let you within reason schedule the upgrade. Now we're trying to keep everyone on 2 versions of software, the current version and current minus 1 version of software. But we're not going to tell you when you have to upgrade.
We're going to give you a window and that window will be a year. And then within that year window, you decide when you want to move forward to the next version of the software. That's a huge difference between us and virtually every other SaaS vendor. You decide when you want to move to the next version of the software. We don't decide for you.
And of course, your user interface, again, based on standards, HTML5. It's got to be mobile and everything, everything we have runs in a web browser. Everything we have runs in a web browser on iPhones. And everything we have runs in a web browser on iPads, which means we don't use Flash. Because if you use Flash, your user interfaces won't run on an iPhone.
If you use Flash, your user interfaces won't run on an iPad. And some people foolishly built their entire system. I won't mention Workday by name. They built their entire system with a Flash UI. And then they said, oh, well, I can't say what they said.
They said, golly, that's a problem. And what we'll have to do is we'll have to write a little bit of native iPad stuff and iPhone stuff. So when Larry Ellison said we don't run on the iPad and the iPhone, we said, Oh, yes, we do. The problem is 99% of it doesn't run. 1% of it runs.
They've built a couple of native apps for iPhone and iPad for Workday. But the whole thing is written in Flash and none of that, all those applications, all that whole UI has to be redone. While I'm talking about Workday, I might talk about the other architectural decision that they made, which really shocked me. I said, we don't need no sninking database. So Workday doesn't use a database.
Workday is built on top of an object store object storage system, which means reporting is almost impossible. Flash UI, no database. Everyone uses a database. Salesforce.com uses a fantastic database because they're really smart. Almost all the guys I know use this real use a really good database, except for the guys at Workday, which use I think they don't need to use it.
By the way, they will say also, oh, no, no, no, we use MySQL. Well, they use MySQL for again about 1% of what they do. Their whole transactional system is in an object store. They've made really fundamental they've made some fundamental architectural decisions that are just flat wrong and I think calamitous, but we'll see. Next slide please.
We have lots and lots of customers who are using our ERP in the cloud, using our human capital management in cloud, using sales and marketing in the cloud. We have lots of early adopters and customers and live customers now running in the Oracle Cloud. Next slide please. And we compete with salesforce.com a lot and sometimes they win and sometimes we win and we think we're going to start winning more than they do. At least that's our job.
Next slide. And we also compete with Workday. We just in the last few weeks, we've had we won and this is by the way Oracle Fusion HCM. This is what the this is with what SAP called Confusion HCM. But in the cloud, we beat them in human capital management at UBS and Societe Generale, couple of big European operations.
But we see them all the time. The fascinating thing is I don't have a slide for Windserb SAP. They're not there. They got nothing except success factors. So I said, okay, I need my I was talking on marketing, I need my slide for wins over SAP.
And they said, well, sorry, there are no competitions against SAP. We can't beat them if they don't show up. I said, well, okay, but in 2020, I want that slide. And he said, absolutely. And in marketing, put that down.
And, so we got a marketing campaign and a bunch of tweets scheduled for 2020, announcing all of our wins over SAP. Next slide. Okay. Oracle is using the stuff. It's very important to our customers.
I think that they know that we're eating our own dog food, that our sales force is now live in Oracle Sales and Marketing. We use talent management. We're using our budgeting and planning. And some of our divisions are now have rolled out our customer experience management. So it's exciting that it's very important.
It's very important as we make that we cross this chasm, as we make this transition from being purely an on premise software supplier to being an on premise software supplier and a cloud supplier, that we use our own technology, that we kind of move the culture of the company to modern computing, modern cloud computing. We think that's important and we are eating a lot of our own dog food and it tastes great. Next slide. Okay. Social Services.
I mentioned again, I demoed at length how people, every one of these applications have built in collaboration services via the Oracle social network. So if you're a lawyer and you're in contracts management and you're working with the sales people and you're drafting a contract for customers, a service contract for customers, you collaborate around and share that contract and draft that contract using the Oracle social network sharing documents. And if we constantly and we constantly go out and analyze information in the cloud. So we collaborate we use a social network for collaboration and we also use social analytical tools to look at the data in social media. Next slide.
All right. Social relationship marketing, social relationship management. This is going to be my demo, which I'm going to try to do, it will be exciting. I promise it will be shorter than the demo at Oracle Open World. You'll be out of here by dinner for sure.
And this is a matter of proactively building our brand using social media, engaging with customers, understanding what customers are saying, tweaking our marketing campaign and servicing customers with 2 pieces of social relationship management. 1 is the marketing piece where we go out proactively and basically create web stores and we tweet and we post things to encourage people to come to our web stores. We talk to our followers, we talk to our fans. But the other thing equally as important, we analyze what they're saying about our products. So we can tweak the marketing campaign and we can service dissatisfied customers or customers with questions.
I mean,
they don't have to be dissatisfied. They just have to have a question and we need to provide an answer. Next slide. And again, we have lots and lots of customers, lots and lots of customers in social relationship management. Next slide.
Okay, here we go. I'm now going to demonstrate our social relationship management. Lisa, I'm going to try. I'm going to put on my glasses. This is so easy, even a caveman can do it, but I'm not sure about a CEO.
Okay. Let's see if this is working. All right. So what a lot of people don't know this, but I've always been concerned about what happens if this Oracle thing doesn't work out for me. So I got so far software, hardware, it's been going pretty well and now we got the cloud.
I'm optimistic, but it's always good to have a backup plan. And my backup plan, is someone moving this without me? Am I doing this or what is going on?
All
right. So it turns out that my backup plan is, I'm heavily invested in a bunch of organic markets called Brookshire Farmers Market. So I put a lot of my own money in this. I put a lot of my own time into this and because I've always been deeply interested in vegetables. And I've always thought growing up, my mom used to say, Larry, there's always good money in vegetables.
So listening to mom, this is my backup plan. And so I've got this company called Brooks Drug Farmers Market. And of course, I have a dotcom website. And we've been on the Internet for some for a long time, but times there are changing. And we have to not only have a web presence, it's very important for us to have a presence on Facebook.
So now let me see. All right. And of course, we're using Twitter to talk to our followers. We're using posts on Facebook to talk to our fans. Let's see, am I now in control of this?
Okay. And here's our Facebook page. And again, we got this Facebook presence. And we're about to launch a new product. And the new product we're going to launch is coffee.
So the demonstration I'm going to give you is a marketing campaign to launch our new product, which we're going to call which we call beautiful coffee at the Brook Strut website. Okay. And all right. And that's our logo. This is we can do a variety of things.
We can post images. We can post videos. And this is our new logo for beautiful coffee at Brook Strut. All right. This is very interesting.
These two things are not synchronized, but I'll do the best I can. All right. That's interesting. All right. So right now, the marketing brand manager, we're working together to put together a marketing campaign to launch Brooks Strut Coffee, Beautiful Coffee.
And one of the things that we do in a social campaign when you're launching a new product is you kind of create a bunch of tweets and choreograph a bunch of tweets and choreograph a bunch of posts that periodically get that go up on to Facebook and go up on to Twitter. So you get a marketing team together, you come up with these tweets, you come up with these posts, they're automatically tweets are going to happen automatically, the post happen automatically and your fans and followers then can read about your new products and hopefully they're driven to your website or they're driven to your Facebook page. And that's what the marketing team is doing right now is they're creating a bunch of posts. They're creating an open graph object and to allow people to respond to these posts. But the next thing marketing wants to know is, all right, this is what we think we should post.
These are the kinds of things we'd like to say. But it would be interesting to see what people were saying about coffee on the web. Why don't we go out and analyze the web logs of Facebook and go out and analyze the web logs of Twitter and all the other social media and kind of aggregate all this information and see what people are saying about coffee in general. Okay. Simply by entering the term coffee, we get what's called a semantic white space analysis of that word.
And you can see some of these circles are bigger than some of the other circles. So what we've done is we've gone out and analyzed all of these Facebook logs, all of these Twitter logs and discovered the themes of what people are talking about. And we then can we can see what themes are important, what themes are less important. The big circles are things that people are talking about a lot. The small circles are themes that people are talking about less frequently.
And we can actually and I'll show you in a minute, we can actually drill in to those themes and we'll drill into a theme called flavor and see exactly what people are saying or an example of what people are saying. Again, there are 1,000, tens of 1,000, maybe even 1,000,000 of comments on these web logs. Okay. And one of the big themes is this idea of flavor. And that's important that people are talking about flavor.
Maybe our web posts or our Facebook posts, maybe our tweets should be focused on flavor. And we can actually drill in and see this is a drill to actually see what people are saying about coffee flavors. What is the language they're using? And depending now coffee is a very common product, everyone understands it. There are certainly other products that are more obscure, that have their own language.
It's important for the marketing people as they issue these posts, as they issue these tweets to understand the language what people are saying, what's important to them, what's not important to them, not only what's important, what's not important, but what language they're using, what kind of terms they're using. So they can communicate using the same language that your followers are using, that your fans are using. Okay. We've done that. Go to the next.
All right. So now the next thing we're going to do is go ahead and create a new online store for coffee. So let's add we've already got a Facebook presence. We already have an online we already have a presence, a dotcom presence. Now you let's use our social relationship management tools to actually create a new shop to let fans of beautiful coffee buy beautiful coffee.
Now we're going to create this shop using standard using drag and drop what you see is what you get editor. It's not this is these shops and this Facebook presence can be created with a business user doing it independently of a programmer. Again, these are tools I mentioned earlier that our cloud has tools that allow end users or business users to develop, if you will, a cloud presence without the need for IT. If you're programming in Java, great, you need a programmer. If you're creating a web store on Facebook or a store on Facebook, you can do it using these tools.
All right. All right. So now to actually publish we created a store now to publish a store, we just with a single click. And we now have a store a web store live on Facebook. All right.
So now we're going to let's see. We're going to kick off the campaign by announcing the store with a post on Facebook. And again, we can preview the post. So again, the post becomes effective on a specific day or date. And prior to the post being everyone being able to see the post, we can go ahead and preview the post for Beautiful Coffee and see what it will look like when it's actually launched.
Now let's go ahead and launch it. And once we launch it, this is what it actually looks like as a post on Facebook. Again, all of this is done by a business user or a marketing user not an IT professional. Okay. So we now have a live shop and now we're doing lots of posts.
Now again, we had that remember that earlier we had that list of posts and tweets that go out periodically and now they're starting to go out. They have pictures associated with them. They have videos associated with them. And they're happening 1 after another after another driving people to our coffee shop. And here's what it looks like.
Now as the shop goes live, customers or if you prefer fans and followers start commenting about the shop. So once the shop goes live, our job isn't done. We're going to continue we're going to listen in if you like. We're going to listen in and see what people are saying about our coffee and what people are saying about our shop. So we're going to use our social intelligence applications to process the logs of Facebook, to process the logs of Twitter, to aggregate their comments and see what they're saying.
And here's one fan, Jason Patton. And Jason wants to know when Beautiful Coffee will be available not just online, but also available in stores. So he's got a question. And we can that question can be automatically routed. Questions can be and comments can be automatically routed or analyzed and they can be automatically routed to a service department.
So, when someone when one of our fans, one of our followers has an important question, we can again automatically route that based on the kind of question it is to a specialist to answer the question. Oracle Social Intelligence automatically filters these messages by keyword and then routes them to the right person to respond. Okay. And here by the way, here's an example of how Oracle Social Intelligence works. This is a graph that categorizes all of the messages that we're getting.
And you can see the most common message is we're getting a lot of messages and intent to purchase is one of the most common messages, The most common. Then we have people down in the middle and you're going to see that they're commenting about taste. And then there's down here support and availability. When can I go ahead and buy this in a store? So our social intelligence will again thematically categorize all what people are saying about our copy.
And we can read it, understand it or even route it to someone who's going to respond to it. And in this case, we're routing the message to customer service. And now we're going into the Customer Experience Cloud and it's going directly to a customer service representative. And here's the incoming message. And by the way, here are by the way, there are lots of messages, right?
There are lots of messages. So the messages themselves are get categorized by theme, by topic, by whether they're positive comments and whether they're negative comments. All of this aggregation, all of this sorting, all of this prioritization happens automatically using Oracle Social Intelligence. It finally gets the message this Jason specific message about availability, gets to a customer service representative who actually can see if we've had other interactions with Jason in the past. So it's a case.
So this might be Jason could be a very important customer or not. But again, we can immediately see whether we've had any interactions with Jason in the past with the customer service console. And then we the customer service representative has the option of getting back to Jason using a variety of different methods. They can he can e mail Jason, we can chat, we can press a button and call him on the phone or we could do what makes sense in this case, which is simply respond to them on Facebook. And suddenly, we have a happy customer.
All right. So let me just kind of review just what gone through here. We created a store using a simple drag and drop tools, a marketing professional created a store for Brixtrot's new beautiful coffee product on Facebook. We created a lot of posts and tweets that would be sent out periodically to encourage our fans to come to our new store and look at and maybe buy our coffee. We analyzed what people were saying about coffee in general on Facebook, on Twitter, on Google plus We looked at all these web logs and analyzed what they were saying and found out certain themes were particularly important.
The theme that we kind of honed in on was taste. So we again spent created new posts and new tweets focusing on the taste of our copy. We then as we open the store, we then launched the store, opened the store, Again, this is all done without any IT professionals at all. This is all done by end users, by marketing professionals, by service professionals, no programmers. We launched the store.
We analyzed then we started analyzing what people were saying about the store after it was launched. And when someone had a question or people had questions about the store, we were able to route those questions to a service professional and respond to those questions. All done again using our Oracle social relationship management tools without the need of any professional programming intervention at all. Okay. That's the end of my demo.
Let's go to the next slide. Okay. As part of our platform, we have a lot of common infrastructure services. Our cloud is elastic, like Amazon's cloud is elastic. It's really interesting.
When you look at our cloud and you want to and you look at our platform, who are we most like? Well, I guess at the platform level, we're kind of similar to Amazon. We think we have better tools, we have a better database, etcetera. But it's kind of similar to Amazon and that it's an Elastic Cloud that as you need more capacity, as you need more capacity, we spool up another virtual machine, not unlike Amazon. So as you need so really is an Elastic Cloud.
Most of our competitors who are in the cloud don't give you this additional capacity as you need it. It's not elastic. It's not they can't respond to capacity on demand. Security, single sign on, roles, permission, we have a very comprehensive fine grained security in our system. Again, going back to the very beginning of our company, Oracle's first customer was the Central Intelligence Agency.
Oracle's second customer was the National Security Agency. It turns out security was important to them. It's been very deep in our culture for a very, very long time. The Oracle database and the technologies we build here, security is extremely important and it's very important in the cloud. When you're putting your data on the public Internet, when your data is on the public Internet, you better have a secure database, you better have secure virtual machines, you better have a lot of security built into your cloud.
Caching, we have a lot of advanced caching technology where we keep your most current data in memory. So we give you fantastic performance. Of course, there's built in search payments through credit cards, through PayPal, all sorts of notifications and messaging. Next slide, please. The computers, I mean, ultimately, a cloud is a collection of computers on the Internet.
And the computers that we use to provide this highly secure, highly reliable, highly scalable enterprise service. The computers we use is our latest technology, Exadata and Exalogic. And there's some very interesting things about Exadata and Exalogic. If you've seen our ads over the last year about these products, we constantly talk about performance, performance and performance. How fast these machines are and they are very, very fast.
10 times, 20 times, sometimes 50 times faster than other big computers. But another thing that we don't talk about nearly so much is the fact that these computers are fault tolerant there. The reason they're so fast is that they operate in parallel. An Exadata machine is actually several computers linked together by an InfiniBand optical network. A lot of sophisticated software to make it look like one big computer.
But it's actually a lot of separate computers linked together by an Inveniban optical network. And what's cool about that, if one of those computers should break, well, you got 23 more in the Exadata to just keep running. It tolerates failures. So if the component fails, a disk drive fails, obviously, a disk controller fails, a server fails, a storage server fails, it doesn't matter because the systems are fall tolerant, the systems are parallel. There's no single point of failure, back like the old tandem days, if anyone other than me is old enough to remember that.
The system is parallel, so there a big piece of it, the hardware fails, the system keeps on running because there's no because it's redundant. It is redundant. That's true of Exadata and that's true of Exelogic. There is no single point of error. So it's a very unusual cloud that it's highly available.
It's a fault tolerant cloud because it runs on fault tolerant hardware. High performance, highly secure and fault tolerant, those are all very important differentiators. Elastic, as you need more capacity, we just give you more virtual machines. Your data is not commingled with in the same database as your competitors. We have data centers all over the world.
And the systems are serviced and now that I'm going to bring up Mark Hurd in about 1 minute. And the systems are serviced with a new level of commitment that if there is a problem, we will respond in minutes. We will respond in minutes, not hours, not days. But if there is a problem, you will get a response from us in minutes because there shouldn't be a problem, because these systems are fault tolerant, because there is no single point of failure. We can respond very quickly if they break, if they never break.
So with that, that's the end of my presentation. And do we have a video? And then next up is Mark Hurd. Thank you very much.
Many of the key benefits receive from using Oracle Cloud is that we're able to provide a cost effective environment to our customers.
It's about speed, the ability to provision new instances, reducing our cost and time and knowing what the costs are in a proven platform which is standards based, integrated and certified by the vendor. If you have those things, then the risk is reduced when you move the loads from one data center to another data center.
Oracle offered the most robust database development environment and now they're able to do that in the cloud. We've changed the We've changed the culture from focusing on operational day to day details to focusing on strategic advantage like big data. How can I use my data deploy it through mobility to drive business advantages?
Having one complete solution allows us to upgrade more efficiently. Very little downtime on the business. Oracle's cloud solution now provides a seamless way for us to communicate with the customer and also to communicate with our products out in the field.
We needed a vendor that understood how Herbalife as a business ran and how HR fitted into that. And that's what Oracle Cloud was able to provide for us.
A company the size of Macy's with a highly seasonal business needs to scale up in its business and down. When we have to scale up, they do it for us because we're hosted externally and when we come down, they can come down.
From Oracle, I can buy a business solution and I'm not just buying widgets that fit together. It was a huge advantage for us and an easy decision at the end of the day.
All right. It's not often you have somebody up here talking about services and support as a new and major differentiation in the industry. I'm here today to talk about Oracle Platinum Services, the highest degree of support and service available in the industry? I see. Yes.
All right. The marketing department was too busy working on 2020 tweets to get the animation lined up as we go. Why don't we just go to the first slide if we could? Yes, thank you. So let me these things happen.
Let me describe to you what it is. So today we're announcing available for you see Exadata, Exalogix, Spark Supercluster in the cloud, a new level of service. 20 fourseven monitoring, our ability to patch proactive services that now can not only support, but anticipate, identify and remediate issues before they happen. Larry talked about minutes. We're talking about the ability to have 5 minute issue response.
Our ability to capture an event, that event gets a fingerprint. We actually take that fingerprint and can now look at that fingerprint against our entire repository of knowledge across everything we've seen. If we've never seen it before, we have the ability to send it directly to an expert who knows specifically about that issue. Our ability to commit beyond that to 15 minutes service restoration and if not restored, we can immediately move that to development to a specific expert who knows about that specific product. Different than anybody in the industry and of course, I had to mention on the bottom, there's no additional charge for this.
This is part of what we you already pay for as part of your relationship with Oracle. Now let me switch, we're going to show you a video. Can we do we do have video, I just want to make sure. We're going to show you a video about our center of expertise, our center of excellence that actually delivers this support to you. So with that, let's
Bet monitoring resolution is a service provided by Oracle Advanced Customer Support, which provides 24x7 proactive predictive monitoring and resolution services. What we're here to do is to maximize the performance and availability of the Oracle technology stack within a
customer environment. We're proactively looking at the alerts and reporting from your environment and making an analysis and the determination of what proactive actions need to be performed within your environment. We have centers located throughout the world, the EMEA, North America and Asia Pac, and we're opening a center in Latin America.
The engineers are continuously monitoring the health and welfare of your IT environment. They're also proactively optimizing your environment for ensuring peak performance. We do
not need access to nor do we transport or store any customer data related to a customer's business.
We receive alerts when a threshold is met. That ticket is then sent over to our network operations center. We then cross reference it against our knowledge base. We then update a ticket on your behalf and keep you updated throughout the entire process. Oracle Platinum Service is offering
the highest level of performance and availability of your technology stack. And it's doing this at no extra cost to your Premier Support agreement. It's truly lower total cost of ownership.
All right. A couple of points. Why can we do this? We make comments, Larry made a comment about the speed of Exadata. I often talk about jobs that we can run 100 times faster than they previously run.
Customers usually say to me, I don't believe you. How do you do it? How do we deliver this support at this level? First, everything is built on our components. Each component is the best component in the world of what it does.
We have the ability to diagnose that and get to experts on that product faster than anybody. And there are no handoffs. We don't have to call a 3rd party who's expert on a database or expert on middleware. We actually know those people. We've built gateway capabilities that's actually patented unique to Oracle that allows us to get into systems, diagnose issues better than anybody on the planet.
Larry talked about fault tolerant. I'll mention it again. The way, fault tolerant was also called back in the Tandem days. I'm actually old enough to remember that. We also call those systems nonstop, That's just fall tolerant.
They were nonstop. They don't stop running. And issues that we have to raise, we raise directly in many cases, in most cases, the people that actually built the technology. No handoffs, best technology in the world. When there's an issue and if there's an issue, it goes right to the people who built it fast.
Now you've heard from us. We'll do a quick video so you can hear it from some customers. So if we will, let's do the customer video.
KPN is a large telecommunications and ICT company. We are the number one telco in the Netherlands.
Transplace is a 3rd party logistics provider. We manage $5,000,000,000 worth of freight.
Baker Hughes is in the oil services industry, servicing major oil operators such as Chevron, Shell, Exxon, Petrobras, throughout 80 countries in the world. Really focusing now on improved reliability and service performance, for our clients. In fact, we just create a performance engineering team and the timing just was about perfect.
KPN plans to use the Exadata platform as a consolidation platform for our
team was a little apprehensive about patching all of these components.
The new product and service offerings allowed us more tools and capabilities and opportunity for knowledge transfer on how to get maximum value from our product.
Already we experienced improvements in the communication and we noticed the right level of experience of the people of Arco and get issues resolved faster.
Benchmark of open dialogue and partnership.
In our current environment, we have a model of different suppliers who deliver us our support, but makes it difficult for us to meet our service levels. We believe that Oracle's Platinum support can improve that. So we are able to meet our service levels and at the same time lower our cost.
The installation of the Platinum services offering went very well. It involved setting up an Oracle gateway for monitoring services and setting up the agents. The team worked very well with my team and I couldn't be happier.
That's great to have happy customers. Three things I'd like you to remember about what I just talked about. Oracle has changed the services game. This is the highest level support available in the industry today. And without the components, nobody else has the capability to replicate that.
If you don't have all the piece parts and they're not engineered together, you're forced into a series of relationships and handoffs that make this level of service impossible to achieve. So you have to have the capabilities. We're in a unique position
to do that.
Let's go back
real quick,
go back.
Yes. And I want to make sure I'm clear. It's available today, not 2020, not in January, it's available today. All right. With that, Larry, we're going to do some more questions and do some Q and A.
So whatever you guys want to talk about.
I think you talked about at Annual Conference Meeting and at Oracle Open World. So my question is on, Larry, you talked about Oracle Cloud and how you have fault tolerance, elasticity, security. To some extent, doesn't that undermine the importance having a premium support where you need 5 minute response time?
Exactly. If it never breaks, we can do better than 5 minute support. But that's the whole point. The reason we can do this, the reason we can offer a very fast response time is hopefully we don't get a lot of calls. If 1,000 people called at the same time, we'd have that's going to be exciting.
It's hard to respond to a 1,000 people in 5 minutes. But if you're going to offer a service level like this, you better make sure that you got a technology that minimizes the calls. And I'd like to emphasize what Mark said. We have a fault tolerant architecture, a nonstop architecture. But on top of that, it's amazing when you look at the entire stack from the applications, the social network and from the social network all the way down to the disk storage systems and the InfiniBand network was built by Oracle.
All of those pieces and we and it's not just that we built them all together. Okay, we built them, but we tested them, all the hardware and software, we tested it and we engineered it to work together and we tested it. We've done a lot of testing. So before we deploy this stuff, we do very, very thorough testing. So we have a fault tolerant architecture.
Almost all of the IP intellectual property is ours. We integrate the software and hardware pieces. We engineer them to work together. We integrate them. We connect them.
We test them before you see them. So hopefully, they're extremely reliable and no one's going to be calling.
I mean, add to it, the support process itself is also becoming more and more automated. There's more and more technology behind the actual support process as we described, the ability to monitor, the ability to patch, the ability to diagnose, much of that we can do with software. So we've got the addition of tested everything we described plus now if something does happen on the slight chance, we've got a differentiated capability that nobody else does.
We should know if there's a problem, we should know there's a problem before the customers know there's a problem. So we have continuous connection to all of our exit areas. Obviously, we run the cloud. So we should detect the problem long before our customers see the problem. They shouldn't have to call us.
We should be on it before we ever get the call.
Could you talk a little bit about the pricing model for the new cloud based applications?
Yes. It's monthly fee. It's a monthly charge for the apps, kind of a per user per month, not a lot different than Salesforce or Workday. It's the same exact model. Another question?
We have another one.
We had one right here.
Larry, congratulations on the Oracle Cloud. I just would like to know your big data strategy on the Oracle Cloud. Well,
again, big data, it depends what you mean by big data. There's big data with capital B and capital D and then there's big data. So are you referring to Hadoop? I mean, are you referring to just lots of data? So it depends what you mean by big data.
But I mean clearly in my demonstration we showed you that we use conventional web log processing technology, MapReduce, otherwise AKA also known as Hadoop to process these web logs and put them into our social intelligence applications. So we actually have, I don't know if it's up here, There's over there in the corner is our big data appliance. And we use our big data appliance to process web logs and gain insight as to what customers are saying about our products and our services. That was actually I didn't we didn't go into it, but that's how you process a lot of Twitter logs and a lot of Facebook logs. If that's what you mean by big data, that's what we do.
But also if you mean by big data kind of a more generic, I mean, do we handle huge volumes of data in addition to not just social media logs, but just do we handle very, very large volumes of data? The answer is yes. I mean, we run the largest databases in the world. And we run the largest databases in the world. We think we're ideally equipped to build large clouds, enterprise grade clouds for large customers with large amounts of data.
So whatever you mean by big data is, yes, we're big into big data and we're big into big data. We have another one.
Congratulations on the on Oracle Cloud. Much has been said about ability to move applications from the on premise to the cloud and back that seamless movement. My question has to do with the simplicity in the cloud. If you do applications with the same level of complexity have moved to the cloud, wouldn't some of your customers want actually a different application experience in the cloud as they would on the premise?
Well, we offer both. I mean, we offer I mean, when you build a Facebook presence, we're saying if you want to program in Java, you can program in Java. That's the same experience you have on premise. If you want to do drag and drop and create a Facebook store, a store in Facebook, that's what I did in my demonstration. So we have the full range of experience from programming using modern programming tools like Java and the Oracle database and Application Express and all of those tools PLSQL for programmers.
And then we have a complete experience for end users. So the answer is you want both. You don't want something different. You want great tools for business users, end users in the cloud. By the way, you also want those on premise, by the way, but you want still want those in the cloud.
And you also want conventional programming tools, so you can move things back and forth. There's some things you can do in Java you cannot do with drag and drop systems. So the answer is you got to do both and we do both.
Why don't we do one last one? A lot of pressure on the last question. It's got to be a good one.
So it appears that with your data centers, you're going to be they would become not only the cloud as a cloud provider and also as a service providers? Or would it be that you are doing federation between the cloud in these data centers as well as on premise? So that's question 1. And the second one, of course, would be, do you have connectors that when the unstructured data comes in and that gets connected to your standard enterprise data warehousing and all that?
Well, let me do the latter. I mean, can we process unstructured data and put it in an Oracle database? Sure. That's exactly we do that routinely. That's we've offered that for a long time.
It's kind of our, if you will, our big data to Oracle connector. Yes, it's a standard product. We do move data from, again, a classic MapReduce, Hadoop log processing process and then move the resultant data database. We do that constantly. Now if I understood your first question was, we have a lot of data centers that we then federate those with premise, can programs on premise talk to programs in the cloud?
And the answer is, of course, I mean, you have to be able to do that. People have a huge investment in their data centers already. They've got a lot of applications and if they build getting applications running in the cloud, those applications in the cloud need to some way talk to applications on premise. Now at its simplest, an awful lot of the cloud application providers, what they do is they just ship a file. They just ship a file from on premise into the cloud and ship files back and that's what they that's how they connect those things.
We think that's a very primitive and that's most of them by the way, do it that way. We think there's a very primitive way to integrate your on premise applications with your cloud applications. We have a service oriented architecture in the cloud, so we can real time have that application talking in the cloud, talking to an application you have on premise. They can talk they can interact almost like they're on the same computer. So, we have a much more sophisticated integration between your on premise applications and your cloud applications than the primitive file sharing that most of the cloud most of the SaaS vendors provide.
Yes.
And I think one point I'd add to it is, they're going to be customers that use the Oracle Cloud. They're going to be customers that build private clouds. They're going to be customers that have traditional on premise applications and may even have a mix and match. We're the only company in the world that can do that for a customer and do it today. All right.
With that, why don't we close-up? Thank you very much for coming today. It's an exciting day for us and we appreciate you taking the time to spend with us. Thanks. Thank you.