Q1 2020 Earnings Call
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Okay.
And be between 87 and 89 cents in U.S.D.
For fiscal 2020, and the third consecutive fiscal quarter I expect that we will report double digit EPS growth in constant currency.
Total capex for fiscal year 20 is expected to be around 2.2 billion, but it could move a little depending on our bookings and how much we need to invest to accommodate them.
Mike EPS guidance for Q2, and fiscal 20 assumes a base tax rate of 20%. However, one time tax events could cause actual tax rates for any given quarter to vary from our base tax rate.
But I expect that a normalized thing for these one time tax events are capturing will average around 20% for fiscal year 2020.
I'm, turning the call over to Larry for his comments, who will spend a little time, highlighting some of the key wins, we had during the quarter with emphasis on back office application and then talk about autonomous database.
Thank you Sabra.
As you are already aware or back office applications business has been reporting.
When growth for a number of quarters now.
And we have a massive opportunity ahead of us in both ERP and HCM.
Not only do we have an enormous installed base of existing ERP and HCM customers, who can upgrade to the cloud.
But more than half of the current European HCM market is served by companies who have no SAS upgrade.
These companies products are vulnerable to being replaced and we're in the process of replacing them.
Our investments infusion of not only enabled our strong back office results over the last few years that they positioned us to become not just the biggest backoffice player in the cloud, which we already are.
But the biggest back office platelet player period cloud on premise is on it.
So with that here are some key fusion ERP wins from Q1.
DP World.
Shaw Communications.
Bangkok Bank of Tyler is upgrading their E business suite.
With our fusion financial cloud service and our fusion financial Enterprise Enterprise performance management.
Envision healthcare.
Where we beat workday.
And we're replacing envision healthcare's legacy system, which is an IND for losses system.
Express scripts.
In the process of migrating from Hyperion on premise.
To fusion M. In the cloud this is their first cloud application.
Lift.
Who's upgrading a portion of their ERP system that was started out as next week, but is now fusion as they plan for growth going forward.
Media News group.
Another competitive win against Workday.
National oil varco.
In a nice expansion both their EM.
And supply chain management that we closed last year, so they're just they're adding more products. There I think adding more of our of the overall fusion suite.
NGL Energy partners is also bought our fusion ERP suite and supply chain management.
Penn National gaming as an online gaming company.
And that was a competitive win against.
Unnamed German company load located them at a town called Waldorf.
Standard Group limited a large government manufacturer, where we beat that same Waldorf German company.
Southern company is in a utility.
That was running E business suite, and Peoplesoft, the business suite financials, and Peoplesoft HCM and they're moving to the fusion cloud suite overall.
Financials HCM everything.
Continuing a we've got some great. Some great additional just HCM wins BA BA ecosystems chose fusion HCM to upgrade their HR technology and standardized.
On the cloud.
You buy a whole day, where we're expanding our relationship by adding both fusion HCM and to layer for recruiting.
Envision healthcare.
Is that infusion HCM.
To the already purchased fusion ERP suite.
A very large transportation entity in the UK, an airport or who is a long term business week customer is moving from.
On premise.
To the fusion suite in the cloud.
Here's a company everyone's are always heard of and probably.
Visited many times mcdonalds.
Mcdonalds, we on Mcdonald chose our HCM.
They chose our payroll.
And they they there was that this was a battle between us and Workday, we won and we're displacing their on premise legacy system.
Nestle.
Southwest gas, where we're displacing S&P.
And we beat Workday as southwest gas decided to move from S&P on premise to the cloud and they fit us.
The University of Texas.
And we're actually engaged with them not only providing.
Cloud technology, but also consulting support to migrate them from Peoplesoft on premise to fusion HCM in the cloud.
And it's just not a bunch of customer wins that mark serve our success, so industry analysts, including ITC are taking notice as they surveyed their customers.
In the 2019 Sasson path of survey that ITC released in May of 2019.
Its survey over 1500 of their SaaS customers on their experience with top SaaS vendors, including Oracle S&P Salesforce workday, Microsoft all of them.
Oracle SAP had the highest rating.
Among all SaaS vendors.
Surveyed.
Period.
So you can see where we're at the beginning of a back office upgrade cycle that will benefit our applications ecosystem for years to come we're already overwhelmingly the largest.
ERP system in the cloud and again it won't be long before we're just the largest ERP supplier period.
The second area.
I'd like to talk about is.
The economist database.
Because.
We think this is a game changer.
Our game changer interesting term selling to push a little bit of marketing hype.
Let me explain how important this is.
Autonomous technology.
Is the key element that differentiates a second generation cloud from a sort of first generation cloud.
Now.
In the first generation cloud your real benefit where you're going to rent computers, and youre willing to pay for what you use.
And the benefit of a second generation and Thats, a great benefit obviously to first generation cloud pay for what you use when you use it.
Second generation cloud.
Not only do we deliver the benefits of pay per use.
We also take the human labor out of running the cloud that's an even bigger economic savings that can be sharing computers and renting computers is not as costly as paying for the labor to run those computers sure from an economic advantage a second generation autonomous cloud is much less expensive to run the first generation cloud.
But that's not what's really important.
What's really important is.
The second generation autonomous cloud.
Prevents.
Data.
Which you can never do in a first generation manual cloud.
Let me point out how reasonable Amazon was.
When they refused to accept responsibility for the configuration errors made by the people at capital one.
They have a policies that you have control of your data you have control of your system.
You are responsible for running your system and if you make mistakes you know it's on you touched on us that is not an unreasonable position.
When you have a totally manual system and your users are config are responsible for configuring. The system. When you are users are responsible for backing the system up when your users are responsible for encrypting. The data when you use as a responsible for patching systems user errors can leave the catastrophic results.
In a manual system.
Theres no way to prevent that.
In an autonomous system the capital one data breach could never happened.
Because the Oracle economists database doesn't let human beings configure the system it configures itself automatically.
The Oracle autonomous database system doesn't ask human beings to patch it.
To close security holes.
The system automatically patches itself while running.
The autumn and Oracle database Doesnt.
Does it doesn't ask if you want to back it up or if you want to encrypt your data. It does all of this automatically wallets running.
The only way you can prevent data is to eliminate human error.
The only way you can do that was with an economist database and we have we have one and our competitors don't this is a very big deal what's the greatest thing about autonomous driving.
In everyone's looking forward to autonomous driving mandates in of the threat to Uber and all this other stuff, but okay. That's it that's all interesting the greatest thing about autonomous driving it's going to reduce human pilot error.
And cut down on an accident.
By 90, 95 90, 899%.
Save lives.
It's going to stop come close to eliminating pilot error.
The Oracle autonomous database, the Oracle self driving database prevents users from making catastrophic mistakes, resulting in data loss.
And there is no way to do it in a manual cloud.
End of story.
That's what I mean by game changer, you want to prevent data that you better be prepared to pay less because we take the labor out.
Yes huge cost savings and we there are no human beings involved they can't make those kind of mistakes.
All right. So we're still early on in the autonomous database in terms of its own it's only been around we announced it in open World 2017, two years ago, and really show that showed up in Two Q2 018, and now were beginning to get you know get some traction with this exciting new technology, it's proving to be the most exciting and successful new product offering in the history of our company.
So here.
Am I missing upgrades.
Oh My God.
Alright, so here's some recent data in Q1.
We added more than 3700, new autonomous database trial, we now have over 2000 customers paying customers for the autonomous database.
We're seeing incredible pull through with the autonomous database in new countries come to Oracle the Oracle cloud users on a database and then you use a variety of other services about 45% of the people who are using autonomous database are also using the our Oracle analytics cloud by the way Theyre also using Microsoft analytics are using cognos, they're using a variety of other <unk> other others other tools, but primarily they are using oracle analytics.
We've added many just many customers we did on a database that weren't oracle customers at all.
13% of the people using autonomous database had never bought a database from Oracle Corporation.
43% of the workloads that are going on to autonomous database.
Our our net now they're not moving them from on premise to that on a bit of it but have removed from on premise stood autumns database. The almost the other half of 43% are just net new applications.
We've had some fabulous wins in the quarter, obviously I'm not going to mention also.
We have over 500 wind autonomous database wins in the quarter I am nothing original 500 to 711 is moving all their point of sale data to the autonomous Datawarehouse Cargojet, Canada Johnson controls Latam Airlines is moving their on premise data centers to OCI.
They get the debenture advantaged and security of the autonomous database.
Siemens energy.
Stanley Black <unk> decker getting much faster data reporting on their on their analytics.
Oh, yes, and one more company move the economist database Hoover.
And with that let's turn it back to the operator.
Thank you Larry Holly before we go to the Q and eight just a couple of clarification, because I had a couple of E mails on that.
The non-GAAP tax rate for the quarter. It was 19.8% and then for fiscal year 2020, we expect for the full year. This will be our third consecutive year of double digit earnings growth with that highlight why don't we turn off the Q and a.
All right, ladies and gentlemen, if you would like to ask a question. Please press Star then one on your telephone keypad to withdraw your question press the pound key.
Our first question will come from the line of John Difucci Jefferies.
Thank you.
Im sure I speak for everyone just to briefly say that at our thoughts and prayers are with Mark and his family at this time.
But but also knowing mark for years I'm sure you'd like us to sort of get back to business.
I'll move right to question here.
So there was this cloud services and license sport was strong this quarter, but license was not as strong as we modeled it anyway and I realize it's a seasonally slow first quarter and you said it follows the strongest and yeah. It was really strong fourth quarter as strong as we've seen in quite some time, but is there anything else you can share on that line any further color for instance.
B Y AOL has got a lot of traction right into that cause your financials just to start to trend more seasonally sort of like it used to I mean, it started to get a little more even it was still seasonal but a little more even so should we should we be starting to think of seasonality how oracle used to be even more seasonal or are your we're also hearing you guys view here or two you hear from some other companies talk about macro pressure.
Are you seeing any of that at all or just curious any any color would be helpful. Sure that's easy John .
It was actually a something very very simple first of all outside of North America. Our license was up up quite a bit in fact internationally. What we had done in North America is we did do a split in the sales force. We've been Telegraphing that we were doing that before we split the north American attack pad sales sport between selling cloud group selling cloud NN group selling new licenses. So the group selling new license was a new group and so I expect that they will more than recover.
Eight during the year.
But that is the only that's the only weakness we had and it was simply.
I'd, just a slow start asking reordered.
In North America Tech sales forces with split it. So there's no macro issue. There's no. There's no actual regular issue and of course. The thing is that in Q1 small numbers make a big difference and so they just kinda outside but no we don't see anything and.
That's really all it was.
Okay. That's that's really that's helpful. Safran that makes sense and sort of were hearing things about that and I. Just just a quick follow up maybe for Larry.
Larry last quarter, you had really strong results in the database options and most especially the ones related to the automate auto autonomous database I'm just curious in this quarter.
Thanks, again seasonally softer first quarter, but can you talk about the options themselves and I'm thinking more about things like.
My favorites multi tenancy, but there's others that are important too.
Yeah, I think multi tenancy in memory all of the database options that are used with the autonomous database I think are selling very very well again.
The reorder the Reorg and North America had a great impact on that because those are license sales a and then they bring those licenses to the cloud so people buy.
You know multi tenant they buy rack they buy in memory. They then pits pit that like the those options and their existing licenses up and they're moving them to the cloud. So some of those some of those sales are delayed because of the reorder, but we think the demand is enormous and we think the leading indicator is just the number of trials. We've signed up in Q1, So our Cogs Salesforce you know and in terms of the cloud activity, we had an incredible cloud activity and we expect again, we signed to more than 500 deals or autonomous data big data deals. In Q1, you know 3700, new trials, the 500 sign paying customers more than and we accept the double that in Q2. So we expect to go from well over 1000 paying customers and that pipeline to just start building.
That is the best early indicator and that will drive not only cloud revenue, but also license revenue because of the options.
Great. Okay. Thank you.
Our next question will come from the line of Brad Zelnick Credit Suisse.
Great. Thanks, so much I'll start just by echoing John's sentiment and wish Mark very speedy recovery.
But im getting on with business wanted to dig in a little bit to the great momentum that you're seeing in cloud ERP and you gave a lot of color Larry in your comments, but perhaps if you can help us understand what the demand patterns look like amongst existing customers migrating versus new logo business that you are able to attract and as well that market.
Has always been a fragmented market and is there any evidence that you might be benefiting from consolidation finally.
In ERP, which has so many players that the efforts and the long tail. Thank you.
Well I think.
Let me talk about some of the easiest consolidation. We're you know we're pretty picky on loss and we actually have sales territories, which are loss in the health care sales territories.
So we go after you know the <unk> the loss in health care customers and we've we've rolled up a bunch of those I'd say about a third of their customers of loss and helping our customers are in our pipeline either already converted are in our pipeline.
So we expect to win all of those.
We've just we've just added some new sales territories, which are loss in retail territories, which is a combination of our fusion financials and our retail merchandising products.
And we think we that's also a very vulnerable company to that end for really about what they tried a lot of people have tried to build cloud systems. It's not easy I can attest to that [laughter], you know I have lots of scars on but im infusion infusion took 10 years to get going I mean, it's a big deal and net suite that overnight success took 20 have been in business for 20 years Salesforce been in business over 20 years on a you know it takes a while to build these very complicated systems and often doesn't really have anything so we're taking a bunch of their customers.
But the one that's extraordinary is that S&P really does not have a true cloud system I think he's doing some hosting they don't have a clue through cloud system and now we're seeing.
Kind of some of their larger.
Not the very largest companies, but some of their medium large companies.
Go ahead and pick us and work, we're converting them, but we are in conversations with their very large as S&P is very very largest customers.
We're in the middle of converting one of their very very largest customers.
All right and we think that of course is the huge opportunity we think we.
Right now Oracle and S&P has about half the ERP market. So its hard for very long answer we have about how the two of US have a have to have the European market and the other half of the airframe market as you say highly fragmented.
We started out by targeting the highly fragmented guys, who are really weak and vulnerable, but we think the opportunity exists to roll. It all up if you look at our markets I mean, I I'm almost afraid mentioned, what our market share in ERP in the cloud is.
What is it 95% slot.
I mean, I don't know I'm, just I'm guessing, but I don't know because I don't know if any other cloud ERP system other than net suite.
And fusion.
So maybe 95% is low.
I I mean, it sounds like I mean, it sounds a little crazy, but S&P.
S&P really did not rewrite their code they really don't have a cloud system.
Our and we and we have an opportunity to go after them and.
Just put that aside and then that that whole other half of the ERP you know marketplace, which is companies that a lot of people have never heard.
And yeah, I think we can consolidate virtually all of that I mean it.
I don't ascribe it to Crazy opportunity you don't see this happened very often.
Next question please.
Thank you.
Our next question will come from the line of Phil Winslow Wells Fargo.
Hi, Thanks for taking my question just wanted to Echo your market, especially in that space are covering all the all the best.
And to the table there congrats on a solid start to the year, but I just wanted to follow up on John's question on on but on a database.
Wondering one of the questions I get from investors is sort of the trajectory of database, because obviously youre getting some metrics that you guys are showing an inflection in terms of.
Customers also just trials out there how do you think about just the I guess the shape of the curve of database growth going forward with all these different levers.
Okay, well because.
The growth rate is so extraordinary we don't we're not forecasting it.
I mean, what Safra gives you a forecast she's not forecasting.
Some of it yeah. This this current just incredibly steep growth curve in autonomous database. So we're giving you.
You know I would say in a conservative point of view, especially that in terms of dawned on us out of it.
And.
But again this is a case where.
We have a technology that nobody else has hey, we are the dominant database supplier on the blender were bigger than that were bigger than IBM and Microsoft combined in the previous in the previous battles. The previous war on premise, we were bigger than Microsoft and IBM combined our two biggest can better.
The cloud base you know the there are a bunch of open source cloud databases.
And there are a lot of more specialized and then there are probably a dozen of them.
Yeah, or more or more for that matter, but none of them are autonomous.
None of them are secure.
None of them packs themselves well run and not in the end that none of them give you 99.995% availability I mean, there were 100 times more reliable I'm seriously 100 X more reliable than these guys. We have the only system that we can pretty much ensure that your data can't be stolen because you are because you cant make pilot errors you can't commit you can't make mistakes because all have to all of those decisions are automated.
So.
It's another I mean, so we're sitting on into markets that we have an opportunity of completely dominating and owning.
One is ERP.
Where we've been at it for a while and you actually can see the data you can actually see the curve and the curves. The curve you know we have enough years of data that you can see the slope of the curve and you can do these market share studies, either they're always analyst reports and all that and we've made great progress in that and you can see it in the autonomous database. All you can do is listen to me talk about this extraordinary technology and that we're so early on in the curve, we got such little data in the curve honors I understand and even workplace, let's wait and see what this turns out to be but we have this drug organic installed base.
That's I think going to go to autonomous database, but it's not just that.
It's not safe to go to any other data.
That's a pretty good differentiator.
And it's our second extraordinary opportunity.
ERP back office and the cloud autonomous database in the cloud.
We are successful in those two markets should be enough to make a living.
Expansion.
Thank you.
Next question will come from the line of Heather Bellini Goldman Sachs.
Great. Thank you so much and again I'm going to echo everyone starts to Mark and just thoughts are with him and his family just wanted to ask two quick questions. One if I could suffer I know John Difucci on some questions about the environment you talked about the North American sales Reorg I was wondering just we've seen a lot of results. Since August early August come in where maybe results. We haven't done as good if people why it I'm just wondering if you're seeing if you saw any elongated sales cycles. If theres anything you could share with US. There are just globally is from what you've been seeing and then secondly, just a question related to Oh, Cie and I know obviously open road next week, there will be a lot of partners to talk to but job one of the partners. We've been speaking to US late have talked about a real pickup in momentum there and just wondering if you could share with us what you are seeing thank you.
Sure.
Actually we feel like we've got a lot of momentum here at Oracle if that issue regarding markets either a broader in the United States, we're not seeing yet.
That we are on very very positive momentum from a product cycle point of view.
Our fusion products are basically catlin, yet that's doing amazingly autonomous database and.
The whole OCI is so compelling.
And we are on the field and we are expanding globally that we have a chip so much good news happening around the world that.
We're not seeing the weaknesses.
And so to the extent that there are we just have a lot of company product momentum.
Our south I know that I will not be able to hold Larry back from the answering your second question. So I missed unleashing am in advance of Openworld go ahead, Larry Okay. So next week at Openworld, we're going to be talking about you know we started with autonomy database in 2018, we continue to make improvements there and speeding it up and and.
But we're not stopping autonomous Davis.
Ah at Openworld with me announcing a whole bunch of new autonomous services no. One is doing this.
But we're not stopping owatonna instead of as you're going to you're going to see a bunch of our arguments where we take that same machine learning technology and to develop other autonomous services.
And.
We're on our way I mean, it's our goal.
To deliver the worlds first and only completely autonomous cloud.
The most important thing and keeping your data center.
But we'd like you know I mean, you really should have an autonomous operating system. You should have you should have a bunch of autonomous services. It in that to operate that clouds are human beings are given the opportunity to make mistakes and people can concentrate on building application rather than managing the plumbing of the cloud, which is complicated and aircraft and expensive. So we want to take get rid of the expense get rid of the errors started with it on a bit of as you will see a bunch more announcements of new autonomous services in OCI and OCI is definitely on a roll if people can.
You have to look at economist database, they look around and be a in the Oracle cloud and as you know they see our analytics up our compute our computer we I can talk about all the all these other things, but we have we really have a second generation cloud that is highly differentiated from our friends.
And Amazon or Google.
Thank you.
Next question please.
Our next question will come from the line of Mark Mark Moerdler Bernstein.
Thank you very much for taking the question again I Echo everyone else. Please tell mark than I thought so with him and his family Larry Safra.
Given autonomous adoption commentary how good it's going can you give us some more color base this quarter on.
On how the revenue lift is occurring as customers.
Moving to the autonomous database database based on what you're seeing in sales that had going now how that's trending and any sense to how to think about how to think about how large a ton of based database revenue was.
Any color I appreciate it well.
Our our approach I you know I mean, sometimes are critical of Amazon, sometimes I'm, just I'm trying to learn from what they do I mean that I mean, they were the innovator in cloud and getting credit for that and I think you know the strategy of land and expand which is what Amazon is used in marketing their products. As you know you get enough for one project and you're successful on that project and you go to the next project has been very different than the way oracle's been selling in the past Oh, we have adopted with autonomy database. We've adopted that land starts small get in there on a project that demonstrate how great. This technology is and then get another project and another project. After that so we've adopted this land and expand approach and we have many examples where people have been successful in their purse projects have moved on to a few more moved on that then moved on to 10 more you know after that.
So our so we see again the opportunity is gigantic the fact that we have for that we added 4000 try almost 4000 trials the shorter 4000 trials in Q1 as.
An example of how we're really getting traction now and the word is getting out of that how good the oh the autonomous databases, how big is it as an overall market.
[laughter] billion there the reality is that most of our customers have been waiting for us.
They have not brought those critical.
A large and security conscious workloads, they have not brought them to the cloud so far they didnt bring them to the other vendors see other vendors are all actually having trouble in the enterprise with these important workloads they've been waiting for us and so as they started to bring smaller workloads, even they can start quite small.
And then there Nick buying is 10 times the size and the opportunity is often a thousand times the side and that's what we're starting to see how long will it take I don't know we're not we're trying to.
Just to go with it you have to understand that many of these can also go just pay as you go there never forecasted a customer just trying to get and before you know it it's expanding the opportunity is <unk> is literally enormous because many of these workloads.
They can't go to the cloud any other way those that have tried have been either unsuccessful.
Or it's been both expensive and risk their security situation. So this is this is a very very powerful not only for us we're not going to overplay. It here, we're just going to ride along with it you're gonna here at Openworld from some of these customers.
And it's very much like originally when we started to talk to you about our engineered system, where a customer would try a little bit they'll try one a quarter and before you know it they had does it and they report now. This is the next level for this critical workloads that only can work in our cloud.
Thank you next question. Please appreciate.
And our last question for today is going to come from the line of Raimo Lenschow with Barclays.
Hey, let me echo as well all appraisal with Mark and his family.
Just.
Going back to two quick question, one number question, which was on deferred safra.
If you read that should grow can you just maybe talk a little bit about why that declined this quarter, but then the bigger question was more for me around ERP. Larry you talked about would like can you source a medium sized sep customers starting to look is it kind of in terms of going bigger is it kind of.
A question of functionality and capability or more are on referenceability, because if I look at your Q just to leverage a full quarter's numbers you closed the quarter in 11, 12 piece and we're able to deliver that which is kind of a record I've seen and you guys are using oracle.
Fusion so what's it really power it seems like a very powerful solution. So I'm just wondering what's holding it back at this point. Thank you.
Well first I'd like to thank you for noticing the amazing close we did on fusion financials, and we actually I got to tell you that the team I think.
It's a pretty happy with this result, and realize that all of our customers should be easily doing the same thing. So first yes. It was a very quick close but we've got the technology and the people to do it let me just answer your deferred revenue comment. So I just want you to understand gross deferred revenue.
It's actually up 3%, okay, but we know that it.
To a bunch of things that ultimately are simply timing changes related to collection and so that's really the the only thing there's nothing unusual next quarter you may see something different it's literally a matter of when we pay some things and.
And and that's kinda shows up in the operating cash flow, but in deferred revenue, it's simply timing of collection theres, a little bit impacted by currency, but the gross deferred revenue number is actually up 3%.
It's just netted down and it's just a matter of the timing of our collections. So nothing nothing to see here.
Okay.
The question about S&P, what it what are our biggest they'd be customers waiting for before they make a decision to.
To move to Oracle.
It's a very interesting we've we've I've spent a lot of time in Germany, [laughter] and talking talking the cost some customers and and.
They want to move.
I mean, I've talked to several very large customers say, we'd like to move to the cloud.
We'd like to move to fusion.
Because I mean some of the.
I mean moving to another that's a P system and I mean, some of these guys are facing bills of a billion dollars to migrate for this S&P upgrade.
All of the consultant so a I mean, it's a big pill to swallow or do the upgrade to Hannah you know what they call us for Hana cloud, except it's not really a club and for no benefit and for virtually the same same told you had before.
It really is pretty much similar to Q4, so the customers really want to do it what they are waiting for is one really large customers is already done it.
They are worried they don't want to be first no. One wants none of it is because the big customers are conservative or they don't want to be first we are in the middle of a one of their largest customers converting them to fusion.
And as soon as we can talk about that publicly and use that as a reference which will be probably take another six months before we did maybe maybe maybe less but that's because it's pretty close.
Before you know there is there life in several litres their divisions on fusion or.
Almost every business leader I talked to in Germany.
I want to make the migration. They just have to be assured that it will work now we're going to get we've won some deals in the high end of mid market against the S&P incumbents and are in the process of converting and we can get them converted much faster and get them live much faster than we can this one John Yeah. Just one one of the largest enterprises on her that remember, but as we get a few of these references we think.
People customers want to use modern technology, they want to move to the cloud and we can they can do that with fusion and they cannot do it with us. So we think it's.
Huge opportunity for us, but we have to have.
A core of references before the big guys again.
Okay. Thank you that's very clear.
Thank you Eric a telephonic replay of this conference call will be available for 24 hours.
Dial in information can be found in the press release issued earlier today.
Please call the Investor Relations Department with any follow up questions from this call and we look forward to speaking with you. Thank you for joining us today on short notice and with that I'll turn the call back to Holly for closing.
Thank you for joining us for todays oracles first quarter 2020 conference call. We do appreciate your participation you may now disconnect.