Oracle Management Host Executive Access For Investors Conference (Transcript)

Oracle Corporation (ORCL)

Executive Access for Investors Conference

April 12, 2012 12:00 pm ET


Paul Ziots - Director of Investor Relations

Andrew Mendelsohn - Senior Vice President of Oracle Database Server Technologies


Kash G. Rangan - BofA Merrill Lynch, Research Division



Good day, everyone, and welcome to the Oracle Executive Access for Investors Conference Call. Today's call is being recorded. At this time, I'd like to turn the call over to Paul Ziots, Director of Investor Relations. Please go ahead.

Paul Ziots

Thank you, Carissa. Hello, everyone, and thank you for joining us today for Oracle's Executive Access for Investors, an educational webcast series hosted by Oracle. Today is Thursday, April 12, 2012.

Joining us today is Andy Mendelson, SVP, Oracle Database Server Technologies; and Equity Research Analyst, Kash Rangan, from Bank of America Merrill Lynch. Today, Andy will discuss Big Data, why this is good for Oracle and Oracle's key products and technologies, including the Oracle Big Data Appliance.

Please note that Andy will not be discussing any information today that is not already publicly available. Also, please note that we'll be conducting a separate web event on another hot topic: Analytics, and Oracle's Exalytics In-Memory Machine. That will be later this month.

At the conclusion of Andy's presentation, we'll turn the webcast over to Kash, who will kick off the Q&A. You may submit questions at any time during the presentation by clicking on the Ask a Question tab above the webcast slides. Please keep in mind, we will not comment on business in the current quarter.

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 Form 10-K and 10-Q, which identify important risk factors, which could cause actual results to differ from those contained in forward-looking statements. You're cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we're not obligating ourselves to revise, update or publicly release the results of any revisions of these forward-looking statements in light of new information or future events. Lastly, unauthorized recording of this webcast is not permitted.

And now I'll turn it over to Andy.

Andrew Mendelsohn

Thanks, Paul. Before we get into Big Data, I thought I'd just let -- alert you guys to the fact that recently, Gartner just published their relational database market share data for 2011. And so it's interesting in this era of Big Data to look at what happened, according to Gartner, over the last year. And we're very happy that -- to report that Gartner's saying the database market's very healthy, growing over 16.3% per year at a $24 billion market. We're also very happy that they've announced that Oracle grew over 18% in the database market, and we took market share, and our #2 and #3 competitors, Microsoft and IBM, actually lost market share in that market. And the competitor, Teradata, that's actually known as a big data warehouse company, they actually didn't grow nearly as fast as we did in this very vibrant relational database market. And so feel free to go out and talk to the Gartner analysts and get more details on what happened over the last year.

Okay. So with that, let's move into the Big Data space. So everybody is seeing a lot of buzz around Big Data, and everybody is trying to figure out what does this mean for our customers and our industry, and let me just start off by sort of explaining this with an analogy. So we all know cars. Henry Ford invented the Model T 100 years ago. And today, Ford makes cars, and they have much better engines, and they have their full sensors and computer systems. But at the end of the day, they're still cars. Cars have evolved a lot over the last 100 years.

And Big Data should be thought of in the same way. So today, we have our information systems for business intelligence, and people call them data marts and data warehouses, and they're loaded with all this transactional information from our transaction processing systems like E-Business Suite and other application vendors. And that information is really valuable, the crown jewels of company, that transactional data. It's not going away. But what people want to do with Big Data is that they just want to look at capturing new kinds of information to enhance and enrich that transactional data that they're currently using.

So, for example, if you're a retailer, you might want to go out to Facebook and pull out information about -- from your customers' Facebook pages if they're willing to friend you, and most of that information is completely worthless, right? All the pictures of babies and families and all that stuff. You don't want to keep that in your relational databases. But the fact that somebody actually had a baby is really interesting to a retailer, right? They can use that to sell -- upsell baby bottles and baby toys and everything else to baby.

So what's really important about Big Data is to understand there's a lot of this data, most of it's completely worthless to the business, but they're really these gems, these nuggets of information, like the fact a customer just had a baby, you want to take that information, you want to integrate it to your existing transactional data that you've got in your data warehouse and really use that to better -- make better business decisions and make more money for your company. Okay.

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