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Oracle CEO Mark Hurd: We have the whole cloud stack

John Gallant,Eric Knorr | Sept. 20, 2016
In an exclusive interview, CEO Mark Hurd offers the lowdown on Oracle's cloud strategy -- and the gamut of technologies it can bring to delivering cloud solutions

Now most CIOs are sitting with a hand of 85 percent of their spending spent to keep the trains running, so they don’t have tons of flexibility. At the same time, some CEO or the board of directors tells the CIO: Hey, secure this infrastructure so that nobody hacks me. And the guy says: OK, I’ll spend some more money on security or get a consultant. That’s all coming out of my [remaining] 15 percent.

At the same time, if you’re in a bank or you’re in pharma, there’s a bunch of compliance guys that run around saying I want you to do a Monte Carlo simulation. That all comes out of these innovation dollars. The CIO has a complex environment.

Remember what all of us, starting with Silicon Valley, have done to CIOs. We sold them piece parts for the last 25 years, and they’ve assembled them, and they’ve put big IT staffs in place and created very complicated configurations, all chasing procurement benefits, and what they’ve created is this very complex, kludgy environment. I tell you all of that, John, against a backdrop of a really complicated, expensive IT environment that isn’t providing tons of new innovation. At the same time, the consumer is innovating like crazy on the other end. Many of our customers who are B2C are really, really stressed.

That’s why cloud is an irresistible force. This isn’t just a technically better mousetrap. This is an economically better mousetrap. Cloud simply costs less money. It costs less money at the same time it's giving you an innovation engine that isn’t built on your IT budget. It’s built on Oracle’s R&D budget.

At the same time, it’s more secure and it’s simpler. The simple gets back to the core of your question, which is I’m going to do SaaS in the Oracle environment. I like Oracle’s tools. I like Java. I like Oracle Linux. I like the Oracle database. But, you know, Oracle doesn’t want to provide infrastructure because they don’t like the margins, so I’ll take all that stuff and use Amazon for bare metal, then I’ll interrelate the workloads between Amazon and back to the Oracle cloud, and somehow I’ll bring it back on-premise when I need to. That’s really complicated.

That’s why we’ve made a couple decisions, not just the infrastructure decision, but another decision. I want to make sure it’s clear. We’ve decided to put in our platform a whole set of open source tools. The same question that you asked, why on earth would you put Python in your cloud when you have Java? Why would you put JavaScript in your cloud when you have Java? Why would you put Ruby in your cloud when you have Java? Why would you put MySQL in your cloud when you have Oracle? The answer is because our customers want to be able to do all of what they want to do without leaving that one cloud. I think our customers want fewer clouds, not more clouds. They want less complexity, not more. It’s the same reason that we did as much work in platform as we did SaaS.

 

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