The coste is cutting of it cloudbased services. Google will decrease about 5 . Amazon cut its prices in response. Now to the lead. Oracles new coceos are laying out a vision for the company ellis after very Larry Ellison step down. Oracle has fallen to number two in application. Mark hargaret heard urd is discussing this. Are focusing on is the cloud. Large cory johnson is live. I have the ceo of oracle,mark hurd, congratulations on the title. Is there an important distinction of both coceos being called ceo . I dont know. Talk about the job and what it means and how its different. At oracle, there is probably not a lot different. We have been working together a long time and we feel great about oracles position in the market and we feel great about our technology. Our job right now is really focused on execution. We have a real exciting few years ahead of us. There has been a lot of criticism of the notion of a dual ceo. We have seen a lot of businesses over the years with deuce with dual ceos not work out. How do you make that work . We got the same comments when we had dual president s. It has worked out pretty well for us. You should think of oracle more as a team. More than the three of us, we have a great team of people and we have 100 34,000 people at oracle now. We spent 5 billion in r d. We have an insatiable need for great leadership and management. When you talk to customers, what is the story this year . Whys this year different . You said there are 60,000 people here. What do you want them to walk away with . It could even be over 60,000 so it is a lot of people. I only got into two restaurants this week. I am shocked you could pull it off. I lost a lot of weight, i slipped right in. This is not too different than what youve seen over the past couple of years. Our customers are going through transformation. Most i. T. Budgets are not up in most of our, customers budgets are flat and some are slightly down. Theyre being asked to save money at the same time how do they get to a whole new set of buyers and to a whole new set of employees with tools like you have in your hand. They are Digital Natives and they want to work and they want to buy. They want to do things the way they have done them in the past and have to innovate. Most of our customers have applications that are 20 years old. The average application this country is about 20 years old. P they were builtreinternet. Half of all the Software Companies have customized apps . They are and there are to upgrade. Thats why you talk about the cloud. Its not just the cloud as a delivery architecture, is the promise of being more flexible and apps that are not customizable. Larry did a fantastic demonstration yesterday showing how you could now customize an application without changing the base code and how you can move it from on premise to the cloud and back. These sorts of things will revolutionize the way customers think about applications and about the way they serve their customers and employees. Does that offer an opportunity for you to read place some of those custom apps with things that can be tweaked. At the show alone, we released 100 32 new set new service applications. We want to be the best of breed. We think every application is the best at what it does and we have a suite of applications so we can do a lot of work for the customer and they dont have to deal with silo the products from multiple vendors. We also will release platform capabilities in the cloud that will allow those customers to extend those applications without customizing, without making them so unique they cannot be upgraded. You guys are going through a tremendous shift from licensed software to perpetual license. I work for a headphone editor who said you cannot change the fan belt while the engine is running. Is that what you are doing right now . I dont know about the fan belt thing. In the context of our business, and the quarter we just reported, we grew our sas revenue 32 and had that defied percent bookings which is good news because that means a revenue will grow larger in the future. And yet we still grow our own on Premise Software business which grew five percent. We are growing a lot in the cloud and with the announcement we made of the show, we will grow even faster as we go forward. I talked about the new stuff you are offering and guys i talked to were really impressed. Competitors have to answer to these new products. There are three levels to the cloud. There is what is called platform as a service, and infrastructure and sas which is applications. Our strategy is to be highly differentiated. Applications is a service. That is where we want to have test of breed at each application. People are actually using that application . There are over 60 million unique users using oracle applications in the cloud today. Those could be hr apps, sales, marketing. In the cloud each one needs to be bestofbreed but a family of applications that can work together. Second, theres a thing called platform for service which is the opportunity to get java and database as a service allowing for customers to build applications or extension to applications for cloud tools. This is very different because 30 of all it spending and Corporate America or in the world is development and test. Us of that is done on premise. They have to buy a server and license fees. You can now go to the oracle cloud get the most popular programming language in the world and the most popular database in the world and have access to those tools and do it straight off those tools with no computers and no assets to be bought. How is the sales staff doing with this change . This level of perpetual license . It has been work. Over two years ago, we realized our organization to prepare for where we are at at now. It has been working on training and we have hired up. We have not quite salesforce. Weve had many people so it has been expansion of our sales force. We have also oriented the salesforce not just on it buyers but functional leaders. It calls on the heads of hr, marketing, sales. It sounds like it is the big change in the world of technology is that technology is not just for technologists. It is all levels of workers and all sizes of companies. The head of marketing now has a vote, the head of marketing has a vote, the head of hr as a vote and these tools are in the hands of a most every worker, everyone has a role in it to a degree and data is pervasive, tools are pervasive. This puts us in a position where we have to sell to multiple buyers in the company but bring up back together so this information is secure and the tools are robust and hopefully consistent across the organization. I have to ask you about tennis. You have the indian wells event that has almost become a grand slam. What is your involvement in that . That tournament is one of the best tournaments in the world. It was going to leave the u. S. Larry but the tournament and saved it for the u. S. Its a phenomenal thing he did. We have been supporting the term in a test the tournament. We are bringing College Tennis to the tournament. We have helped support by bringing customers to the tournament. I love tennis and i played in college. Larry has done a fabulous job with that tournament. We tried to make it the greatest tournament in the world. While its not a grand slam, if you get a chance to go down there, you will find it is just as exciting. We would love to have you there. Thank you so much. Cory johnson, thank you. How can big day to help doctors make big breakthroughs in the fight against ebola . We talk about the technology being used to track the disease next. This is bloomberg west, on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com and now available on apple tv and amazon fire. The first case of ebola in the United States was diagnosed earlier this week. The disease has infected more than 6000 people in africa and with the first case being reported and in the United States, what role can technology play to help stop it spreading. I am joined by patrick tucker, the author of the naked future. We are just learning more about this specific case in texas. This patient flow through brussels. Lets start with airport screening. What can be done at airports that technologically to keep someone with ebola from passing through those gates . There is not a great deal at this time. Some airports like in south africa and nigeria and asia are experimenting with thermal scanners. They scanned for elevated human temperature. They were in place across the United States as well following the 2009 sars outbreak which was favor base. The problem with that is while it provides a certain amount of public copper, it is not going to be an effective stop. You can carry ebola for as long as 21 days before you begin to present symptoms. When you start to present symptoms is when you run the risk of passing it to others. The scanners are not going to catch ebola that is in people who have not yet presented. It is cosmetic and thats the only effective means we have right now aside from taking a blood sample. In nigeria, if you present with elevated fever and if they have suspicion it might be anabolic carrier, they pull you aside and do a blood test on you and that takes about two hours. That seems to work ok in nigeria but its completely impractical in a place like dallas or atlanta or perhaps even brussels. That is not being done right now. We are about two years away according to people ive spoken to from a point of care diagnostic tests, handheld test, that can screen for a ball on the spot without inconveniencing a lot of passengers and causing flight delays. That does not exist at this time. You have written about how big data otherwise can be used to track disease. How can data be used to track ebola . There is a lot of different tools right now that help researchers that Health Researchers are using to find out where the disease is emerging and where will go next. Researchers from around the world are relying on open source data called health map. Its basically but instead of presenting with search results, it presents you with the most recent instances of ebola showing up on the internet and social network posts. It might show up in news articles and things like that. It does a deep analysis of all the material that is specific and relevant to new cases of a bowl and where they are showing up. There is another project that is a big Database Project from a researcher in washington, d. C. And it scans news reports for new instances of symptoms of ebola or ebolalike symptoms. That is a big one that people are using. Another method that researchers are using is called Contract Tracing where you go back through all the different associations and different contacts that an ebola patient may have had, people they spoke with, places they went, and you sort of map there like that to see who else may have been vulnerable or subject to the disease by interacting with that person. Something else that holds promise is saddlelife. Ebola is dangerous and we dont want workers getting too close to it who want to observe in a credible way when it is showing up. Military uses highresolution satellites for things that are like this all the time but they are looking for different signs of intelligence. You can use those same assets in a public sense for ebola tracking. There is a group of researchers out of the university of virginia that creates a model that predicted how much the spread of flu in a particular place based on the occupancy of hospital parking lots. They somehow people are moving and where they are going and if they are going to go and seek help or buy supplies in a particular type of store is that if there is crowd there, you can predict or model the spread of a particular illness through particular neighborhood and you can do it from space without subjecting a lot of people to potential harm. Patrick tucker, thank you so much. We will continue this conversation after quick reckon a quick break. This is bloomberg west, on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com and now available on apple tv and amazon fire. I am emily chang. Lets continue our conversation about ebola. The first case in the unit stays was diagnosed earlier this week and according to a canadian official, the patient traveled through bustles to the United States through brussels to the United States. Patrick tucker joins us again. Obviously, Technology Holds promise to track ebola outbreaks. Cannot predict an out right before it happens . Cannot stop it before it starts . You have to have one before the spread can be modeled or predicted. That is the problem. We were talking about health map which is a very rapid indicator of the spread of ebola because as soon as it starts showing up, people write about and create content and put it online but it is a lagging indicator. You have to have it in place before you can talk about where it will go next. Right now, technology is providing researchers some great help in tracking where it is moving in close to realtime time but predicting where it might suddenly emerge all of a sudden, this is something that is tricky. The cdc as well as researchers around the world have had problems primarily because you can model how quickly the disease might spread among a particular group of people but you cannot model with a high degree of credibility how all of those people are going to react all of a sudden to policy or different restrictions on their movement to different decisions on the part of authorities about what to do next or whether are where they should go or stay. That is a chaotic environment and that provides a whole bunch of newmath that modelers would have to do before they can figure out how ebola will move in human beings as a response to what humans are decided do about the ebola. There is some really serious limitations in terms of predicting where it will go as a result of human decisionmaking. In terms of the mechanics of the actual virus, we can actually model to a high degree of credibility if only we all lived in a computer simulation. Some people may not realize that a fever or headache might mean they have ebola so even they dont record it. Should we be worried about the first case in the United States . Absolutely not. Everybody i have spoken to has been unequivocal on this. This is not sierra leone. This is not like. This is not even nigeria where they have tremendous success containing the outbreak among a population that was extremely huge in a chaotic environment where civil unrest is something far more common. We dont have to worry about ebola affecting us in any way along those lines. Or experiencing the same number of casualties in terms of deaths. Its a great opportunity to talk about what can be done in sierra leone, in liberia to help prevent a worse Case Scenario which is 1. 4 million cases by january of next year. I think its a great opportunity to talk about how to prevent this for the future but no, this will not be for us what it is in africa. Patrick tucker, thank you so much. We will be back with more of bloomberg west. The lowest in one and a half months. The nasdaq closed down more than 6 . You are watching bloomberg west. I am emily chang. Apple plans to add a gold color option to its fullsize ipad in an effort to boost the category that has posted declining shipments this year. New versions of the companys 9. 7 inch ipad will include gold is a choice of color. The new ipads are expected to be unveiled this month. For the importance of apples widely anticipated products and integration of fashion and fashionable looks in their products, i want to bring in a partner at kleiner perkins. Always great to have you here. I went with the goal by phone. What do you think about gold ipads . Is it cool . Tommy it is. I went with the gold i found i went with the gold iphone as well. I think people want to have a Technology Product also as a fashion accessory and a state of mind. Gold is a luxury item. It is something that also deals across gender. I am pretty excited about what apple is doing. What about when it comes to the watch . They will make an 18 karat gold version. This is just a gold color. Is that something that people want to wear . Do they want to pay for it and do they want to wear it . Apple obviously is a Smart Marketing company and they will have figured this out ahead of time. Its interesting they launched in three different categories. Whether you are going to have in addition or the sports or the highend luxury item but it reaches across different Market Segments and gives people the power of choice. Im excited to see all of them. How much will it cost . I dont know, some say it is 35000 dollars. So you really have to want that gold watch. At the big event a couple of weeks ago were they unveiled the watch and the new phone, you have a lot of celebrities there. U2, gwen stephani, kevin durant is it more than just emotion dan than just promotion . I think it is a larger moment in time. I think it is about a movement in popular culture. I think this is about the fact that apple is not just your technology company. Apple is a Global Consumer company that goes across fashion entertainment and technology. Apple has brought technology into the popular culture. Look at how the fashion industry, the Fashion Press are connecting with it. Designers were in paris meeting with fashion Industry Leaders like anna wintour. People are salivating about the apple products. Apple has hired Angela Behrens and we have a clip. It was a great collaboration and i loved working with technology. Its really just a beginning. Shes got on top of fashion most fashionable sunglasses. Is google glass cool . Wearables i think are really cool. People want to have access to information and want to be able whether it is something that just ran as this are Understanding Health or lifestyle or connecting in a new way that is cool. That is mainstream now if you think about where that is going. Whether you are going to wear it as a glove or on your wrist, that will be debatable. That will be the fun part to watch. Is the fashion industry going to truly embrace wearables . Is anna wintour going to be wearing an apple watch every day or just experiment . I dont know about whether she will do that but i bet she has an iphone. The natural extension is where does one go .