甲骨文 (ORCL) 2020 Q2 法說會逐字稿

Welcome to Oracle's Second Quarter 2020 Earnings Conference Call.

歡迎參加甲骨文（Oracle）2020 年第二季財報電話會議。

Now I'd like to turn the call over to Ken Bond, Senior Vice President. Ken?

現在我想把電話交給資深副總裁 Ken Bond。Ken？

Thank you, Holly. Good afternoon, everyone, and welcome to Oracle's Second Quarter Fiscal Year 2020 Earnings Conference Call. A copy of the press release and financial tables, which includes a GAAP to non-GAAP reconciliation and other supplemental financial information, can be viewed and downloaded from our Investor Relations website.

謝謝你，Holly。各位下午好，歡迎參加甲骨文（Oracle）2020 會計年度第二季財報電話會議。新聞稿與財務表格（其中包含 GAAP 與非 GAAP 的調節表及其他補充財務資訊）可於我們的投資人關係網站瀏覽並下載。

On the call today are our Chairman and Chief Technology Officer, Larry Ellison; and CEO, Safra Catz. As a reminder, today's discussion will include forward-looking statements, including predictions, expectations, estimates or other information that might be considered forward-looking. Throughout today's discussion, we will present some important factors relating to our business, which may potentially affect these forward-looking statements. These forward-looking statements are also subject to risks and uncertainties that may cause actual results to differ materially from statements being made today.

今天參與電話會議的有我們的董事長兼技術長 Larry Ellison，以及執行長 Safra Catz。提醒各位，今天的討論將包含前瞻性陳述，包括預測、期望、估計或其他可能被視為前瞻性的資訊。在今天的討論中，我們將提出一些與我們業務相關的重要因素，這些因素可能會影響上述前瞻性陳述。這些前瞻性陳述亦受風險與不確定性影響，可能導致實際結果與今天所作陳述出現重大差異。

As a result, we caution you against placing undue reliance on these forward-looking statements, and we encourage you to review our most recent reports, including our 10-K and 10-Q and any applicable amendments for a complete discussion of these factors and other risks that may affect our future results or the market price of our stock. And finally, we are not obligating ourselves to revise our results or publicly release any revision to these forward-looking statements in light of new information or future events.

因此，我們提醒各位不要過度依賴這些前瞻性陳述，並鼓勵各位查閱我們最新的報告，包括 10-K 與 10-Q 以及任何適用的修訂，以完整了解這些因素及其他可能影響我們未來業績或股價的風險。最後，基於新資訊或未來事件，我們不承擔修訂我們的結果或公開發布對這些前瞻性陳述之任何修訂的義務。

Before taking questions, we'll begin with a few prepared remarks. And with that, I'd like to turn the call over to Safra.

在進入提問之前，我們先做幾點準備好的說明。接下來，我想把電話交給 Safra。

Thanks, Ken. But before I start, I'd like to acknowledge and thank you all for the many, many sincere condolences we received upon Mark's passing. Thank you. They mean a lot to us.

謝謝你，Ken。不過在我開始之前，我想先向各位致意並感謝大家在 Mark 辭世後寄來的許多、許多真摯慰問。謝謝。這對我們意義重大。

As you can see, we had another solid quarter. This quarter, we finished with total revenue growth within my guidance range and EPS at the high end. Cloud Services and License Support continue to see material growth. And given that it represents more than 70% of our total revenue, it more than offsets declines in some smaller, nonstrategic businesses. We continue to be encouraged that our overall revenue growth will further accelerate as we reach the final stages of this ongoing shift in business mix.

如各位所見，我們又交出一個穩健的季度。本季，我們的總營收成長落在我先前指引區間內，而 EPS 位於區間高端。雲端服務與授權支援（Cloud Services and License Support）持續呈現實質成長。而由於其占我們總營收超過 70%，足以抵消部分較小、非策略性業務的下滑。隨著我們持續進行的業務組合轉移進入最後階段，我們仍然受到鼓舞，並預期整體營收成長將進一步加速。

Of late, I've been spending much more time with customers. The overriding theme I hear is the compelling nature of our technology and how it is critical to the success of their businesses: feature-rich, simple, secure, performant and priced right. They see Oracle as being strategic to their ongoing operations, and they tell me repeatedly that Oracle is the right partner to run their mission-critical assets, both in the cloud and on-premise. Their comments reinforce our conviction that our product strategy is right.

最近，我花了更多時間與客戶交流。我聽到的主軸是：我們技術的吸引力，以及它對其業務成功至關重要——功能豐富、簡單、安全、效能卓越且定價合理。他們認為甲骨文（Oracle）對其持續營運具有策略性意義，並一再告訴我，無論在雲端或地端（on-premise），甲骨文都是運行其關鍵任務資產的正確合作夥伴。他們的回饋強化了我們對產品策略正確性的信心。

At Oracle, we've upgraded our internal systems to the cloud, and we are sharing our experience with customers by describing the stunning benefits and efficiencies that can be realized from the move. And know we have thousands of customers that references our own experience adopting Oracle Cloud applications and infrastructure allows us to serve as a unique and knowledgeable adviser to customers who want to know how to go about their own digital transformation.

在甲骨文（Oracle），我們已將內部系統升級至雲端，並透過分享我們的經驗，向客戶說明遷移所能帶來的驚人效益與效率提升。而且我們擁有數千家客戶可作為參考；我們自身採用 Oracle Cloud 應用與基礎架構的經驗，使我們能成為獨特且具備深厚知識的顧問，協助想了解如何推動自身數位轉型的客戶。

To give you some context, let me share just a few of the many benefits we are seeing in our business. With Fusion ERP cloud, we are now able to close our books and report earnings in 12 days or less. Many companies don't report their results for weeks. And not only can we get our results out faster, but we've saved money, too. By using the AI and processes in Fusion ERP cloud, we have been able to eliminate more than 30% of our manual accounting activities. And enabled by Fusion HCM cloud, we have seen employee satisfaction levels soar with all-time high rates for things like hiring and onboarding new employees. We've also made it easier for our managers and employees as Fusion HCM reduces the time needed to complete the talent review process by more than 70%. And separately, we're saving more than 20,000 hours of manager time each year with our accelerated job offer process.

為了提供一些背景，我分享我們在業務中看到的眾多效益中的幾項。透過 Fusion ERP 雲端，我們現在能在 12 天或更短時間內完成結帳並發布財報。許多公司需要數週才會公布結果。我們不僅能更快發布結果，也節省了成本。藉由使用 Fusion ERP 雲端中的 AI 與流程，我們已能消除超過 30% 的人工會計作業。此外，在 Fusion HCM 雲端的支援下，我們看到員工滿意度大幅提升，在招募與新進員工到職（onboarding）等方面創下歷史新高。Fusion HCM 也讓主管與員工更省力，因其將完成人才盤點流程所需時間降低超過 70%。另外，透過加速的工作邀約流程，我們每年可節省超過 20,000 小時的主管時間。

In sales, we're using our front-office cloud platform, augmented with machine learning and our own data cloud, to help our salespeople sell more and sell more quickly. With Marketing Cloud, campaign planning now takes days rather than weeks. And with built-in machine learning, we've seen a doubling in lead conversion. We automatically capture millions of activities in sales cloud each year. And with CPQ cloud, ordering is much faster and easier with over 70% of our transactions fully automated. We needed that to handle the increased volumes of transactions as a result of our customers' move to the cloud. In addition, we've adopted the Gen2 Infrastructure, including Autonomous Database, for our custom apps. Our internal IT costs to run these systems are down by millions while, at the same time, we are adopting more than 100 new features each quarter.

在銷售方面，我們使用前台雲端平台，並結合機器學習與我們自有的資料雲，協助業務人員賣得更多、也賣得更快。透過 Marketing Cloud，行銷活動規劃現在只需數天而非數週。而在內建機器學習的加持下，我們看到潛在客戶轉換率翻倍。我們每年在銷售雲中自動擷取數百萬筆活動。透過 CPQ 雲端，訂購流程更快更容易，且超過 70% 的交易已完全自動化。我們需要這些能力，以因應客戶轉向雲端後帶來的交易量增加。此外，我們也為自訂應用採用 Gen2 基礎架構（Infrastructure），包括 Autonomous Database。我們用於運行這些系統的內部 IT 成本已降低數百萬美元，同時我們每季仍採用超過 100 項新功能。

Here at Oracle, we are going to continue using our own cloud technology as an intelligent automation engine and continue to simplify our business model and processes. In turn, I expect that our revenue growth rates will increase and see even more expense efficiencies. And as a result, I expect that you will see us expand our margins and grow EPS double digits for the foreseeable future.

在甲骨文（Oracle），我們將持續使用自家的雲端技術作為智慧自動化引擎，並持續簡化我們的商業模式與流程。因此，我預期我們的營收成長率將提高，並看到更多費用效率。也因此，我預期各位將看到我們擴大利潤率，並在可預見的未來讓 EPS 維持雙位數成長。

Now on to the numbers. I'll review our non-GAAP results using constant dollar growth rates, unless I state otherwise. Currency for Q2 was largely in line with my guidance at nearly 1%, and the fact that the growth rates looked the same in a few categories is simply because of rounding. Total Cloud Services and License Support revenues for the quarter were $6.8 billion, up 3%, accounting for over 70% of total company revenues and most of this is recurring revenue.

接下來談數字。除非我另有說明，否則我將以固定匯率（constant dollar）成長率來檢視我們的非 GAAP 結果。第二季的匯率影響大致符合我先前指引，約為 1%；而少數類別的成長率看起來相同，僅是四捨五入所致。本季雲端服務與授權支援（Cloud Services and License Support）總營收為 68 億美元，成長 3%，占公司總營收超過 70%，且其中大部分為經常性收入。

Cloud and On-Premise License revenues were $1.1 billion, down 7% as more of our GBU customers order cloud instead of license. In terms of ecosystem, GAAP application ecosystem revenues were $2.9 billion, up 4%, with Fusion apps up in the low 30s, including Fusion ERP, up 38%; and Fusion HCM, up 23%. NetSuite ERP was up 28%. Vertical SaaS was up low double digits, while data cloud stabilized. On a trailing 12-month basis, more than 90% of our application ecosystem revenue is recurring.

雲端與地端授權（Cloud and On-Premise License）營收為 11 億美元，下滑 7%，原因是更多 GBU 客戶改為訂購雲端而非授權。就生態系而言，GAAP 應用生態系營收為 29 億美元，成長 4%；其中 Fusion 應用成長約 30% 出頭，包括 Fusion ERP 成長 38%，Fusion HCM 成長 23%。NetSuite ERP 成長 28%。垂直產業 SaaS 成長低雙位數，而資料雲（data cloud）趨於穩定。以過去 12 個月（trailing 12-month）計算，我們的應用生態系營收中超過 90% 為經常性收入。

GAAP infrastructure ecosystem revenues were $5 billion, up 1%, with total database revenue up 1% highlighted by BYOL and Autonomous Database revenues, both up over 200% but off a small base for now. On a trailing 12-month basis, more than 3/4 of our infrastructure ecosystem revenue is recurring. Just a few days ago, we were able to get our first Gen2 Exadata Cloud at Customer fully deployed and connected. It was done in just 4 days. Previously, with our Gen1 architecture, this typically took significantly longer. As a result, we are very optimistic about the impact our Gen2 Cloud at Customer will have on our business. No other cloud provider has the right technology to actually do this.

GAAP 基礎架構生態系營收為 50 億美元，成長 1%；其中資料庫總營收成長 1%，亮點是 BYOL 與 Autonomous Database 營收皆成長超過 200%，但目前基期仍小。以過去 12 個月（trailing 12-month）計算，我們的基礎架構生態系營收中超過 3/4 為經常性收入。就在幾天前，我們成功完成第一套 Gen2 Exadata Cloud at Customer 的完整部署並完成連線。整個過程僅用了 4 天。先前在 Gen1 架構下，通常需要更長得多的時間。因此，我們對 Gen2 Cloud at Customer 對我們業務的影響非常樂觀。沒有任何其他雲端供應商具備正確的技術能真正做到這一點。

In terms of geographies, we saw double-digit revenue growth in SaaS revenue in all regions, except EMEA, with especially strong results in Latin America and Japan. Gross margin for Cloud Services and License Support was 85%, down slightly from last quarter due to accelerated investments in our Gen2 cloud to address higher demand worldwide. As we get to scale, I expect our cloud gross margins will grow higher, driving an acceleration in our gross profit growth.

就地理區域而言，除 EMEA 外，我們在所有地區的 SaaS 營收都看到兩位數成長，其中拉丁美洲與日本的表現尤其強勁。雲端服務與授權支援的毛利率為 85%，較上季略降，原因是我們加速投資 Gen2 雲端，以因應全球更高的需求。隨著規模擴大，我預期我們的雲端毛利率將進一步提升，帶動毛利成長加速。

By the way, our strategic hardware products delivered on-premise, which includes Exadata, grew double digits for the quarter, once again showing that our installed base of customers focused on our world-leading database platform continues to grow. Total revenue for the quarter were $9.6 billion, up 1% from last year. Non-GAAP operating income was $4 billion, essentially unchanged from last year; and operating margin was 42%, down from 43% last year. The non-GAAP tax rate for the quarter was 18.8%, slightly below our base tax rate of 20%; and EPS was $0.90 in USD, up 13% in constant currency and 12% in USD. The GAAP tax rate was 17.7%. And GAAP EPS was $0.69 in USD, up 15% in constant currency, 14% in USD.

順帶一提，我們交付於客戶端（on-premise）的策略性硬體產品（包含 Exadata）本季也呈現兩位數成長，再次顯示聚焦於我們世界領先資料庫平台的既有客戶基礎持續擴大。本季總營收為 96 億美元，較去年成長 1%。非 GAAP 營業利益為 40 億美元，與去年基本持平；營業利益率為 42%，低於去年的 43%。本季非 GAAP 稅率為 18.8%，略低於我們 20% 的基準稅率；每股盈餘（EPS）為 0.90 美元，按固定匯率計成長 13%，以美元計成長 12%。GAAP 稅率為 17.7%。GAAP EPS 為 0.69 美元，按固定匯率計成長 15%，以美元計成長 14%。

Operating cash flow over the last 4 quarters was $13.8 billion. Over the last 4 quarters, capital expenditures were $1.6 billion, and free cash flow was $12.2 billion. We now have approximately $27 billion in cash and marketable securities. And short-term net deferred revenue balance is $8.1 billion, down 1% in constant currency due to timing differences in customer payments. Also, the prior year deferred balance was affected by our transition to ASC 606. Gross deferred revenue was up over 1% in constant currency and would have been up over 3% if not for the ASC 606 transition changes.

過去 4 個季度的營運現金流為 138 億美元。過去 4 個季度的資本支出為 16 億美元，自由現金流為 122 億美元。我們目前約有 270 億美元的現金與有價證券。短期淨遞延收入餘額為 81 億美元，按固定匯率計下降 1%，原因是客戶付款時點差異。此外，去年遞延收入餘額也受到我們轉換至 ASC 606 的影響。總遞延收入按固定匯率計成長超過 1%，若非 ASC 606 轉換變動，原本將成長超過 3%。

We remain committed to returning value to our shareholders through technical innovation, strategic acquisitions, stock repurchases and prudent use of debt and the dividend. This quarter, we repurchased 91 million shares for a total of $5 billion. Over the last 12 months, we've repurchased nearly 500 million shares for a total of $26 billion. And over the last 5 years, we've reduced the shares outstanding by more than 25%. The Board of Directors again declared a quarterly dividend of $0.24 per share.

我們仍致力於透過技術創新、策略性併購、股票回購，以及審慎運用負債與股利，為股東回饋價值。本季我們回購 9,100 萬股，總金額 50 億美元。過去 12 個月，我們回購近 5 億股，總金額 260 億美元。過去 5 年，我們已將流通在外股數減少超過 25%。董事會再次宣告每股 0.24 美元的季度股利。

My guidance today is on a non-GAAP basis and in constant currency. Assuming current exchange rates remain the same as they are now, currency should have a 1% negative effect on total revenue and $0.01 negative effect on EPS. So for Q3, total revenues are expected to grow 1% to 3% in constant currency. And assuming a 1% currency headwind, total revenues are expected to grow 1% to 3% in USD. Now I realize that my USD and constant currency revenue guidance sound like they're the same number, but it's just rounding, similar to our revenue growth this quarter. I do expect a currency impact of nearly 1%.

我今天的指引以非 GAAP 基礎並以固定匯率呈現。假設目前匯率維持不變，匯率對總營收將造成 1% 的負面影響，對 EPS 造成 0.01 美元的負面影響。因此，就第三季而言，總營收預期按固定匯率計成長 1% 至 3%。並且在假設有 1% 的匯率逆風下，總營收以美元計也預期成長 1% 至 3%。我知道我的美元與固定匯率營收指引聽起來像是同一個數字，但那只是四捨五入所致，類似我們本季的營收成長。我確實預期匯率影響接近 1%。

Non-GAAP EPS in constant currency is expected to grow between 10% to 12% and be between $0.96 and $0.98 in constant currency. And assuming a $0.01 headwind, non-GAAP EPS in USD is expected to grow between 9% and 11% and be between $0.95 and $0.97 in USD. Total CapEx for fiscal year '20 is expected to be around $2.2 billion, but it could move higher based on demand for data center growth.

非 GAAP EPS 按固定匯率計預期成長 10% 至 12%，並介於 0.96 至 0.98 美元（固定匯率）。並且在假設有 0.01 美元的逆風下，非 GAAP EPS 以美元計預期成長 9% 至 11%，並介於 0.95 至 0.97 美元。2020 會計年度的總資本支出（CapEx）預期約為 22 億美元，但可能會因資料中心擴張需求而上調。

My EPS guidance for Q2 and fiscal year '20 assumes a base tax rate of 20%. However, onetime tax events could cause actual tax rates for any given quarter to vary from our base tax rate. But I expect that in normalizing for those onetime tax benefits -- tax events, our tax rate will average around 20% in fiscal year 2020.

我對第二季與 2020 會計年度的 EPS 指引假設基準稅率為 20%。然而，一次性稅務事件可能使任何單一季度的實際稅率偏離我們的基準稅率。但我預期在將這些一次性稅務優惠——稅務事件——正常化後，我們在 2020 會計年度的平均稅率將約為 20%。

And finally, for fiscal year 2020, I continue to expect that in constant currency, total revenue will grow faster than last year, and that we will report double-digit EPS growth for the year.

最後，就 2020 會計年度而言，我仍預期按固定匯率計，總營收成長將快於去年，且我們全年將呈報兩位數的 EPS 成長。

And with that, I'll turn it over to Larry for his comments.

接下來，我把時間交給 Larry 發表他的評論。

Thank you, Safra. As I've said before, there are 2 key product areas that will determine Oracle's future in the cloud: Cloud ERP applications and the Autonomous Database. Being the clear #1 in both of these 2 giant applications and infrastructure market segments will enable the success of our other application and infrastructure products in adjacent market segments.

謝謝你，Safra。如我先前所說，有兩個關鍵產品領域將決定 Oracle 在雲端的未來：雲端 ERP 應用與自治資料庫（Autonomous Database）。在這兩個龐大的應用與基礎架構市場區隔中成為明確的第一名，將使我們在相鄰市場區隔中的其他應用與基礎架構產品也能取得成功。

This is already happening in applications. We have a huge lead in Cloud ERP with over 7,000 Fusion ERP customers and 20,000 NetSuite ERP customers. Our closest cloud ERP competitor is Workday, and they claim to have a few hundred ERP customers. Workday's lack of success in cloud ERP is creating opportunities for Oracle in cloud HCM. More and more, we are seeing HCM as being purchased as a part of an ERP cloud application suite. As a result, today, we have more HCM customers than Workday. And we're beginning to see that same integrated suite strategy beginning to drive our sales of CX, customer experience, applications in sales, in service and in marketing.

這在應用領域已經正在發生。我們在雲端 ERP 方面擁有巨大領先優勢，Fusion ERP 客戶超過 7,000 家，NetSuite ERP 客戶達 20,000 家。我們最接近的雲端 ERP 競爭對手是 Workday，而他們宣稱只有數百家 ERP 客戶。Workday 在雲端 ERP 的不成功，正在為 Oracle 在雲端 HCM 創造機會。我們越來越常看到，HCM 是作為 ERP 雲端應用套件的一部分被採購。因此，今天我們的 HCM 客戶數已多於 Workday。而且我們也開始看到，同樣的整合式套件策略正開始帶動我們在 CX（客戶體驗）方面的銷售，包括銷售、服務與行銷等應用。

SAP never rewrote their ERP applications for the cloud. As a result, SAP's installed base is very vulnerable. We've already replaced and successfully migrated many midsized SAP customers from SAP to Fusion ERP. Importantly, a few months from now, in Q1 calendar year 2020, one of SAP's biggest customers will go live on Fusion ERP. Many of SAP's largest customers are already working with us to develop plans to migrate to Fusion ERP. SAP's customer base is up for grabs. They didn't rewrite their applications for the cloud. That has created an enormous opportunity for Oracle.

SAP 從未為雲端重寫其 ERP 應用。因此，SAP 的既有客戶基礎非常脆弱。我們已經替換並成功將許多中型 SAP 客戶從 SAP 遷移至 Fusion ERP。重要的是，幾個月後，在 2020 年曆年第一季，SAP 最大的客戶之一將在 Fusion ERP 上正式上線。SAP 許多最大的客戶已在與我們合作，制定遷移至 Fusion ERP 的計畫。SAP 的客戶基礎正處於可被爭取的狀態。他們沒有為雲端重寫其應用。這為 Oracle 創造了巨大的機會。

We're already declared #1 in the cloud ERP market as measured in market share. And our Cloud ERP business is already growing at a rate of over 30%. By offering a safe and compelling alternative to SAP's old technology, we can increase our applications growth rate far beyond that 30%. We are very, very comfortable that we will be overwhelming winner in this generation cloud ERP business.

我們已被宣告為雲端 ERP 市場（以市占率衡量）的第一名。而我們的雲端 ERP 業務目前已以超過 30% 的速度成長。透過提供對 SAP 舊技術安全且具吸引力的替代方案，我們可以將應用業務的成長率提升到遠高於 30%。我們非常、非常有信心，我們將在這一代雲端 ERP 業務中成為壓倒性的贏家。

Now let's look at some application wins in the quarter. Advance Publications, a media company, bought ERP. Albertsons got ERP, EPM and supply chain. C.H. Robinson Worldwide, a transportation company, bought ERP and EPM. DHL Supply Chain, big German company, bought ERP, EPM and supply chain. Edwards Lifesciences, a medical equipment company, bought ERP. By the way, I'm not mentioning any associated HCM deals because I have a separate list for HCM. So a lot of these guys -- maybe next quarter, I'll put the HCM deals right next to the ERP deal so you could see -- because I'll be repeating a lot of these names when I get to my HCM list. That's the point I made earlier that people are now looking at HCM as just another module that we need in the back office. Very important.

現在讓我們看看本季一些應用方面的得標案例。媒體公司 Advance Publications 購買了 ERP。Albertsons 購買了 ERP、EPM 與供應鏈。運輸公司 C.H. Robinson Worldwide 購買了 ERP 與 EPM。德國大型公司 DHL Supply Chain 購買了 ERP、EPM 與供應鏈。醫療設備公司 Edwards Lifesciences 購買了 ERP。順帶一提，我沒有提到任何相關的 HCM 交易，因為我另外有一份 HCM 清單。所以這些客戶中有很多——也許下季我會把 HCM 交易直接放在 ERP 交易旁邊，讓你們可以看到——因為當我講到 HCM 清單時，會重複提到很多相同的名字。這也呼應我先前提到的一點：人們現在把 HCM 視為後台所需的另一個模組。非常重要。

Edwards Lifesciences bought ERP. Ferguson, a manufacturing firm, bought ERP and supply chain. Globo companies, big energy firm, bought ERP, EPM and supply chain. NCR Financial Services bought ERP, EPM and supply chain. NetScout, telecommunications company, bought supply chain. Mutual Life Assurance bought ERP and supply chain. Southern Star Central Gas Pipeline, big energy company, bought ERP. Technip, another energy company, bought ERP. By the way, SAP is supposed to be very strong in energy. Texas Children's Health Care -- Hospital bought ERP, EPM and supply chain. Unilever bought ERP and supply chain. Baker Hughes, energy company, bought ERP, EPM and supply chain. Carlson Wagonlit, travel services, ERP, CPM and supply chain. Kuwait Petroleum, energy company, bought ERP, EPM and supply chain. Liberty Global, communications company, ERP, EPM and supply chain. Manpower, the global services company, bought ERP, EPM and supply chain. Sherwin-Williams, that's what they bought: ERP, EPM and supply chain, the suite. A lot of people are buying multiple modules. It's not just ERP. It's ERP, it's EPM, Enterprise Performance Management. It's supply chain. It's manufacturing. Bank of New York Mellon bought ERP, EPM and supply chain.

Edwards Lifesciences 購買了 ERP。製造公司 Ferguson 購買了 ERP 與供應鏈。大型能源公司 Globo companies 購買了 ERP、EPM 與供應鏈。NCR Financial Services 購買了 ERP、EPM 與供應鏈。電信公司 NetScout 購買了供應鏈。Mutual Life Assurance 購買了 ERP 與供應鏈。大型能源公司 Southern Star Central Gas Pipeline 購買了 ERP。另一家能源公司 Technip 購買了 ERP。順帶一提，SAP 在能源領域據說非常強勢。Texas Children's Health Care——醫院——購買了 ERP、EPM 與供應鏈。Unilever 購買了 ERP 與供應鏈。能源公司 Baker Hughes 購買了 ERP、EPM 與供應鏈。旅遊服務公司 Carlson Wagonlit 購買了 ERP、CPM 與供應鏈。能源公司 Kuwait Petroleum 購買了 ERP、EPM 與供應鏈。通訊公司 Liberty Global 購買了 ERP、EPM 與供應鏈。全球服務公司 Manpower 購買了 ERP、EPM 與供應鏈。Sherwin-Williams 買的就是這些：ERP、EPM 與供應鏈，整套方案。很多人正在購買多個模組。不只是 ERP。是 ERP，是 EPM（企業績效管理）。是供應鏈。是製造。紐約梅隆銀行（Bank of New York Mellon）購買了 ERP、EPM 與供應鏈。

Airport Terminal Services -- oh, I'm sorry, now I'm on my HCM group. I'm in the HCM group, they're all grouped together. Airport Terminal Services bought HCM. [Apparel Bosco], retail, HCM. Banque Saudi fransi bought HCM. CenterPoint Energy, another energy company, bought HCM. Cummins, manufacturing company, HCM; Graybar Electric bought HCM; Holologic (sic) [Hologic], HCM. HUS, that's the hospital -- those are the hospitals in Finland run by the federal government in Finland, bought HCM; Mountaire Farms, HCM. North Atlantic Refining -- again, this is my HCM list -- big energy company, and SAP's stronghold in the energy sector, bought HCM from us; Southern Star Central Pipeline, big gas company, energy, HCM; Technip, energy company, HCM. Tenet Healthcare bought HCM, Texas Children's Hospital bought HCM and Whatabrands bought HCM. Birmingham City Council bought HCM. Kuwait Petroleum Company, a big energy company, bought HCM. MEDNAX health care, HCM; Phoenix Life Holdings, HCM.

Airport Terminal Services——喔，抱歉，現在我講到我的 HCM 群組了。我在 HCM 群組，這些都被歸在一起。Airport Terminal Services 購買了 HCM。[Apparel Bosco]，零售業，HCM。Banque Saudi fransi 購買了 HCM。另一家能源公司 CenterPoint Energy 購買了 HCM。製造公司 Cummins，HCM；Graybar Electric 購買了 HCM；Holologic（原文如此）[Hologic]，HCM。HUS，也就是那家醫院——那些是芬蘭由聯邦政府營運的醫院——購買了 HCM；Mountaire Farms，HCM。North Atlantic Refining——再次強調，這是我的 HCM 清單——大型能源公司，也是 SAP 在能源產業的據點，向我們購買了 HCM；Southern Star Central Pipeline，大型天然氣公司、能源業，HCM；Technip，能源公司，HCM。Tenet Healthcare 購買了 HCM，Texas Children's Hospital 購買了 HCM，Whatabrands 購買了 HCM。伯明罕市議會（Birmingham City Council）購買了 HCM。大型能源公司 Kuwait Petroleum Company 購買了 HCM。MEDNAX 醫療保健，HCM；Phoenix Life Holdings，HCM。

In customer experience, Equinix bought service. Ferguson Enterprises bought service. Ferrari bought sales and marketing. IKEA bought service. Nordstrom bought service. PayPal bought marketing, Rabobank bought service and Santander Bank bought service.

在客戶體驗方面，Equinix 購買了服務。Ferguson Enterprises 購買了服務。Ferrari 購買了銷售與行銷。IKEA 購買了服務。Nordstrom 購買了服務。PayPal 購買了行銷，Rabobank 購買了服務，Santander Bank 購買了服務。

Okay. Let me move on to the other segment, which is Autonomous Database and Gen2 infrastructure. In the database market, we are the overwhelming #1 with a combination of a dominant share on-premise and very strong market share in the cloud. Though I have yet to see any good data on database market share in the cloud. Our database business is growing very, very rapidly because we have an enormous technology advantage in the cloud over all of our competitors with Autonomous Database.

好。我接著談另一個事業部門，也就是 Autonomous Database 與 Gen2 基礎架構。在資料庫市場，我們憑藉本地部署的主導市占與雲端非常強的市占組合，穩居壓倒性的第一名。不過我至今仍未看到任何關於雲端資料庫市占的好數據。我們的資料庫業務成長非常、非常快速，因為在雲端上，憑藉 Autonomous Database，我們相較所有競爭對手擁有巨大的技術優勢。

Autonomous Database is the world's only autonomous database. What does that mean? That means when you configure the system, you don't do anything. The system configures itself. Robots configure the system. The reason Capital One lost all that data at AWS is because one of the Capital One people made a configuration error. You can't make configuration errors with the autonomous database because human beings don't configure the system. A lot of these above-the-fold headlines of people losing their data are caused by human errors. People forget to patch systems. Remember that one? They patched some but not all of the systems. And Equifax. Equifax, it was a patchy [structured] database, didn't get patched. They didn't find them all.

Autonomous Database 是全球唯一的自治資料庫。這代表什麼？意思是當你設定系統時，你什麼都不用做。系統會自行完成設定。由機器人來設定系統。Capital One 之所以在 AWS 遺失那麼多資料，是因為 Capital One 的某個人犯了設定錯誤。使用自治資料庫不會發生設定錯誤，因為不是由人來設定系統。許多這些登上頭條、說人們遺失資料的事件，都是人為錯誤造成的。人們會忘記替系統打補丁。記得那個案例嗎？他們只替部分系統打了補丁，但不是全部。還有 Equifax。Equifax，那是一個零零散散的（原文：patchy）[結構化]資料庫，沒有被打補丁。他們沒有把所有的都找出來。

Guess what? Autonomous Database automatically patches itself when a security flaw is detected. And by the way, they detected that security flaw over at Equifax. They knew about it. They just didn't get around to patching it. Patching it is hard. They have to find all the databases. You have to schedule downtime. You don't schedule downtime with the Autonomous Database. You patch the Autonomous Database while the database is still running. But you don't patch the database. It's the robots. Our robots patch the database. That's why it's autonomous. There's no human labor, so there's no human error. So if you're willing to pay less and not have that human labor, you get rid of all those mistakes.

你猜怎麼著？當偵測到安全漏洞時，Autonomous Database 會自動替自己打補丁。順帶一提，Equifax 那邊其實偵測到了那個安全漏洞。他們知道這件事。只是一直沒有抽空去打補丁。打補丁很難。他們必須找出所有資料庫。你還得安排停機時間。使用 Autonomous Database 不需要安排停機。你可以在資料庫仍在運行時替 Autonomous Database 打補丁。但其實不是你在替資料庫打補丁。是機器人。是我們的機器人在替資料庫打補丁。這就是它為什麼是「自治」的原因。沒有人工勞動，就沒有人的錯誤。所以如果你願意付更少、而且不需要那種人工勞動，你就能消除所有那些錯誤。

This is a gigantic technology advantage. By the way, and we're 10x faster than anything Amazon has. That means we're much cheaper than anything Amazon has, much safer, much easier to use, builds applications faster. So we already have thousands of Autonomous Database customers running in our public cloud. We added 2,000 more this quarter. And our autonomous business, as Safra said, is growing in excess of 200%, our Autonomous Database business, off a small base. Admittedly, it's a relatively new product, but it's on its way to being the most successful new product introduction in our company's history.

這是一個巨大的技術優勢。順帶一提，我們比 Amazon 的任何產品快 10 倍。這表示我們比 Amazon 的任何產品便宜得多、安全得多、使用更容易、應用程式開發更快。因此，我們的公有雲上已經有數千名 Autonomous Database 客戶在運行。我們本季又新增了 2,000 名。而且如 Safra 所說，我們的自治業務——也就是 Autonomous Database 業務——在小基期之上成長超過 200%。坦白說，這是相對較新的產品，但它正朝著成為本公司史上最成功的新產品導入之一邁進。

Now this triple-digit growth rate I expect will spike up dramatically because of another thing Safra just mentioned, our introduction of our Autonomous Database Cloud at Customer, Gen2 Cloud at Customer. Now when people can start putting Autonomous Database, they're already -- I mean all our Autonomous Database customers, let me be clear, are in our public cloud. A lot of our customers, especially those in regulated markets, big banks, people -- government agencies, defense ministries, people have got -- they need the Autonomous Database capabilities behind their firewall in their data center. And over the next few months, we're rolling out this Autonomous Database Gen2 Cloud at Customer.

我預期這個三位數的成長率會因為 Safra 剛提到的另一件事而大幅飆升，也就是我們推出的 Autonomous Database Cloud at Customer，也就是 Gen2 Cloud at Customer。當人們開始能夠部署 Autonomous Database 時——我的意思是，讓我說清楚，我們所有的 Autonomous Database 客戶目前都在我們的公有雲上。我們有許多客戶，特別是在受監管的市場、大型銀行、政府機關、國防部等——他們需要在自家防火牆後、在其資料中心內，具備 Autonomous Database 的能力。而在接下來幾個月，我們將推出這個 Autonomous Database Gen2 Cloud at Customer。

Now all of our cloud competitors are trying to create these outposts of their cloud on the floors of their customers. We actually have it working. And in fact, we're in our second generation of this. We did it early, albeit at a reasonable first generation job, but the second time's a charm. And this new Gen2 stuff was -- can be installed in a day. Now the first one we installed in 4 days. We expect to do that even faster. There will be more time spent unpacking the hardware and plugging it in than readying the software because it just syncs up with our public cloud, and you're off and running. This is going to be a huge opportunity for us to dramatically increase the adoption rate on Autonomous Database, very excited about that. Okay. When that happens, we think by any measure, we will be -- not only have the overwhelming market share lead on-prem but the overwhelming market share lead in the cloud. We expect to hold on to our database franchise in a big way.

現在我們所有的雲端競爭對手都在嘗試把他們的雲做成「前哨站」放到客戶機房裡。而我們其實已經讓它運作起來了。事實上，我們已經做到第二代。我們很早就做了，雖然第一代做得還算不錯，但第二次就更到位了。而這套新的 Gen2——可以在一天內完成安裝。第一套我們花了 4 天安裝。我們預期還能更快。花在拆箱硬體與插上電源的時間，會比準備軟體還多，因為它會直接與我們的公有雲同步，然後就能開始運作。這將是我們大幅提升 Autonomous Database 採用率的巨大機會，對此我們非常興奮。好的。當那發生時，我們認為不論用任何衡量方式，我們不僅會在地端（on-prem）擁有壓倒性的市佔領先，也會在雲端擁有壓倒性的市佔領先。我們預期會以非常大的力道守住我們的資料庫核心業務。

So it's interesting that both of our Autonomous Database and our cloud applications are running in our new Gen2 highly secure infrastructure. And by the end of 2020, by the end of next calendar year, this time next year, I'll be able to say that we have more Gen2 data centers in more countries than Amazon Web Services has data centers, period. We're adding lots and lots of data centers in lots and lots of countries. And again, we'll have -- we'll be in more data centers in more countries than Amazon by the end -- a year from now. That's very, very exciting.

所以很有意思的是，我們的 Autonomous Database 與雲端應用程式都運行在我們新的 Gen2 高度安全基礎架構上。到 2020 年底，也就是下一個曆年年底、明年此時，我將能夠說：我們在更多國家擁有更多 Gen2 資料中心，甚至超過 Amazon Web Services 的資料中心數量，就這麼簡單。我們正在許多國家新增大量資料中心。而且同樣地，到明年年底——一年後——我們在更多國家、更多資料中心的佈局將超過 Amazon。這非常、非常令人振奮。

Now let's look at some of our Autonomous Database and Gen2 infrastructure wins this quarter. Okay. Afia International, big manufacturing firm; Albertsons. This is another -- this is more synergy that -- I've got to mention, when people buy our applications, they buy our ERP applications. They also build data warehouses associated with those applications. They do a lot of work. So a lot of our application customers are beginning to be Autonomous Database customers and infrastructure customers. So yes, when you buy ERP, you might also buy HCM. But when you buy ERP, you're also going to buy the Fusion data warehouse, which is an Autonomous Database product and an infrastructure product. You're going to buy analytics and our Gen2 data center. You're going to become an infrastructure customer as well as an application customer. And we see a lot of overlap. We often see people buying suites of applications, ERP plus HCM plus sales, things like that, but also applications plus infrastructure.

現在來看看我們本季在 Autonomous Database 與 Gen2 基礎架構方面的一些勝利案例。好的。Afia International，大型製造公司；Albertsons。這是另一個——這是更多的協同效應——我必須提到，當人們購買我們的應用程式、購買我們的 ERP 應用程式時，他們也會建立與這些應用程式相關聯的資料倉儲。他們會做很多工作。因此，我們許多應用程式客戶正開始成為 Autonomous Database 客戶與基礎架構客戶。所以是的，當你買 ERP，你也可能會買 HCM。但當你買 ERP，你也會買 Fusion 資料倉儲——那是一個 Autonomous Database 產品，也是基礎架構產品。你會買分析（analytics）以及我們的 Gen2 資料中心。你會同時成為基礎架構客戶與應用程式客戶。而我們看到大量重疊。我們常看到人們購買一整套應用程式，ERP 加 HCM 加銷售等，但也會出現「應用程式加基礎架構」的組合。

Aon Financial Services; Biogen bought autonomous data warehouse; Cisco Systems; again, Gen2 infrastructure and autonomous data warehouse; Clearstream Services, same thing, Gen2 infrastructure, autonomous data warehouse; Embraer Aviation, the Brazilian airplane -- aircraft manufacturer, autonomous database and Gen2 infrastructure; Equity Bank of Kenya, autonomous database, Gen2 infrastructure; Fastenal Company, a big distribution company in the United States, Gen2 infrastructure; Health Care Services Corp, Gen2 infrastructure and autonomous database; Interac, Gen2 infrastructure; King Faisal Specialist Hospital & Research Centre, Autonomous Database, autonomous transaction processing; Macquarie University, Autonomous Database, Gen2 infrastructure; Manchester, Autonomous Database and Gen2 infrastructure.

Aon Financial Services；Biogen 購買了 autonomous data warehouse；Cisco Systems；同樣是 Gen2 基礎架構與 autonomous data warehouse；Clearstream Services，同樣的，Gen2 基礎架構、autonomous data warehouse；Embraer Aviation，巴西的飛機——航空器製造商，autonomous database 與 Gen2 基礎架構；肯亞 Equity Bank，autonomous database、Gen2 基礎架構；Fastenal Company，美國大型配銷公司，Gen2 基礎架構；Health Care Services Corp，Gen2 基礎架構與 autonomous database；Interac，Gen2 基礎架構；King Faisal Specialist Hospital & Research Centre，Autonomous Database、autonomous transaction processing；Macquarie University，Autonomous Database、Gen2 基礎架構；Manchester，Autonomous Database 與 Gen2 基礎架構。

MGM Entertainment, Autonomous Database, autonomous transaction processing; Providence Health Care Services, Autonomous Database, autonomous transaction processing; Schenker Logistics in Germany, autonomous data warehouse; [Sour], Gen2 infrastructure; Swiss Post, Gen2 infrastructure, autonomous data warehouse; Target, based in the United States, Autonomous Database -- autonomous data warehouse; Technip, energy company that I've mentioned that bought, I believe, HCM, ERP, bought the full suite and Gen2 infrastructure and Autonomous Database; The Boston Globe, Gen2 infrastructure, Autonomous Database; Thermos, Autonomous Database, autonomous transaction processing; Hypersoft, Autonomous Database; Tideworks Netherlands, Gen2 infrastructure; Tokyo Gas and Electric, autonomous data warehouse, Gen2 infrastructure; TriMark USA, Gen2 infrastructure; Walgreens, autonomous data warehouse, autonomous transaction processing, Gen2 infrastructure; [Weizig Bank], autonomous data warehouse, Gen2 infrastructure.

MGM Entertainment，Autonomous Database、autonomous transaction processing；Providence Health Care Services，Autonomous Database、autonomous transaction processing；德國 Schenker Logistics，autonomous data warehouse；[Sour]，Gen2 基礎架構；Swiss Post，Gen2 基礎架構、autonomous data warehouse；Target（美國），Autonomous Database——autonomous data warehouse；Technip，我提過的能源公司，我相信他們買了 HCM、ERP，買了全套套件以及 Gen2 基礎架構與 Autonomous Database；The Boston Globe，Gen2 基礎架構、Autonomous Database；Thermos，Autonomous Database、autonomous transaction processing；Hypersoft，Autonomous Database；Tideworks Netherlands，Gen2 基礎架構；Tokyo Gas and Electric，autonomous data warehouse、Gen2 基礎架構；TriMark USA，Gen2 基礎架構；Walgreens，autonomous data warehouse、autonomous transaction processing、Gen2 基礎架構；[Weizig Bank]，autonomous data warehouse、Gen2 基礎架構。

ZIM, the big shipping company, you see a lot of Maersk, you see ZIM on lots and lots of containers, Autonomous Database, autonomous transaction processing and Gen2 infrastructure. AXA Equitable Life Insurance, Autonomous Database, Gen2 infrastructure; Banco de Chile, Autonomous Database, autonomous data warehouse, Gen2 infrastructure; Baxter Healthcare, autonomous data warehouse; Cigna Corporate Services, autonomous data warehouse, Gen2 infrastructure; Eventbrite, Gen2 infrastructure; Ford Motor Company, Gen2 infrastructure, Autonomous Database, autonomous warehouse; Mary Kay, Gen2 infrastructure; Samsung Electronics, Gen2 infrastructure, Autonomous Database, autonomous transaction processing; Vericon, Gen2 infrastructure, Autonomous Database and autonomous transaction processing.

ZIM，這家大型航運公司，你會在很多很多貨櫃上看到 Maersk，也會看到 ZIM，Autonomous Database、autonomous transaction processing 與 Gen2 基礎架構。AXA Equitable Life Insurance，Autonomous Database、Gen2 基礎架構；Banco de Chile，Autonomous Database、autonomous data warehouse、Gen2 基礎架構；Baxter Healthcare，autonomous data warehouse；Cigna Corporate Services，autonomous data warehouse、Gen2 基礎架構；Eventbrite，Gen2 基礎架構；Ford Motor Company，Gen2 基礎架構、Autonomous Database、autonomous warehouse；Mary Kay，Gen2 基礎架構；Samsung Electronics，Gen2 基礎架構、Autonomous Database、autonomous transaction processing；Vericon，Gen2 基礎架構、Autonomous Database 與 autonomous transaction processing。

With that, I will turn it over to the audience for questions.

接下來，我把時間交給現場觀眾提問。

Thank you, Holly. Thank you, Larry. Holly, if you could please prepare the audience for questions?

謝謝你，Holly。謝謝你，Larry。Holly，能否請你引導觀眾開始提問？

(Operator Instructions) And our first question is going to come from the line of Michael Turits, Raymond James.

(接線員指示) 我們的第一個問題將來自 Michael Turits 的線路，Raymond James。

Safra, it was great to see that you reaffirmed your guidance for the full year for revenue acceleration and double-digit EPS growth. But with the 3Q guide, it does suggest a very strong fourth quarter on top of what was a strong fourth quarter than last year. So can you give us a little bit of visibility into what's driving that confidence? And also, I know it's early, but given what that means for fourth quarter, what does that mean in terms of what it implies about fiscal '21?

Safra，很高興看到你重申了全年指引：營收加速成長以及 EPS 兩位數成長。但從第三季的指引來看，這似乎意味著第四季會非常強勁，而且是在去年已經很強勁的第四季基礎之上。所以你能否多給我們一些能見度，說明是什麼在驅動你們的信心？另外，我知道現在還早，但考量這對第四季的意涵，這對 2021 會計年度（fiscal '21）所暗示的情況又代表什麼？

So we've got everything finally out and available. And as Larry and I both mentioned, we've got Cloud at Customer. We have a lot of orders for that, that we have not deployed yet, so we've got a lot of demand there. We've got Autonomous Database. We've got new versions of Autonomous Database on track. We've got the entire Fusion suite rolling, including all of the additional modules have all been continuously upgraded, so we've got an immense amount of demand. And we have enormous pipelines, and our conversion rates are increasing. And so the pipe has just expanded so dramatically that I know we're going to have more bookings but also previous bookings, as those deals are ramping up and more users are using the products, we're very, very upbeat about the second half but even more so next year. We believe that the momentum we will have in the second half of this year will more than carry through to 2021.

所以我們終於把所有東西都推出並且可供使用了。而且如同 Larry 和我都提到的，我們有 Cloud at Customer。我們有很多這方面的訂單尚未部署，所以那裡有很大的需求。我們有 Autonomous Database。我們也有新版的 Autonomous Database 按計畫推進。我們整個 Fusion 套件也在持續推進，包括所有新增模組都在持續升級，因此需求非常龐大。而且我們有非常龐大的銷售管線（pipeline），我們的轉換率也在提升。因此，管線大幅擴張到這樣的程度，我知道我們會有更多簽約（bookings）；同時，先前的簽約隨著這些交易逐步放量、更多使用者開始使用產品，我們對下半年非常、非常樂觀，對明年更是如此。我們相信今年下半年的動能將不僅能延續，還會帶動到 2021 年。

And our next question is going to come from the line of Heather Bellini, Goldman Sachs.

我們的下一個問題將來自 Heather Bellini（高盛）的電話線。

And I'm going to try and get away with 2 questions. But I guess, the first one, Safra, as you mentioned about License this quarter, it was a little lighter than what I think people were expecting. I know we're talking about a big base, but if there's anything you could call out in terms of whether it's the sales force reorg or just macro or whatever in terms of the results in the quarter on that line. And then I know just covering the company for a while, given the lumpiness historically between Q2 and Q3, I know sometimes deals push from 1 quarter to the next and typically, it's better to just average those 2 quarters. But how do you feel about the outlook for the Q3 license number? And then I just had one follow-up, if you don't mind.

我會試著一次問 2 個問題。不過我想第一個問題是，Safra，正如你提到本季的授權（License）表現，比我認為市場預期的要稍微弱一些。我知道我們是在一個很高的基期上比較，但就本季該項目結果而言，是否有任何你可以點出的因素，例如銷售團隊重整、或是總體環境等，或其他原因？另外，我也知道我追蹤這家公司一段時間了，歷史上 Q2 與 Q3 之間常有波動性，我知道有時交易會從一季遞延到下一季，通常把這兩季取平均會更合理。但你對 Q3 授權數字的展望感覺如何？最後如果你不介意，我還有一個追問。

I generally feel very good about the Q3 license number. As you said, it is lumpy. The one thing we do have is that the GBUs, which are, of course, not a giant part of our license business but are significant, they have moved, and their cloud products have become available. And I do expect that most of the orders for new services in the GBUs will come through as Cloud Services instead of just plain license. But I don't think that will be as significant. I do expect that licenses, in fact, will be just fine in Q3 other than the GBU piece.

我整體上對 Q3 的授權數字感覺非常好。如你所說，它確實有波動性。我們確實有的一點是，GBU（全球事業單位）——當然它們不是我們授權業務中最大的部分，但仍相當重要——它們已經轉移，而且它們的雲端產品已經可以提供。我確實預期，GBU 中大多數新服務的訂單，會以雲端服務（Cloud Services）的形式入帳，而不只是單純的授權。但我不認為那會有那麼顯著的影響。除了 GBU 那一塊之外，我確實預期 Q3 的授權表現會很好。

Okay. And then -- and just my follow-up, I mean these calls just still don't feel the same without Mark being on them. And with all due respect to him, to his passing, just knowing how hard it is going to be to replace him, I mean, is there anything to share with us regarding you getting someone to kind of help take his place and some of the responsibilities that you've taken over?

好的。那麼——我的追問是，老實說，少了 Mark 參與，這些電話會議的感覺還是不太一樣。在完全尊重他離世的前提下，也知道要取代他會非常困難，我想問的是，你們是否能分享一下，是否正在找人來協助接替他的位置，以及你們目前接手了哪些他原本負責的工作？

Okay. This is Larry. I'd like to answer that question because I get the question is: so how is our search for a second CEO guy? I remember when we announced 2 CEOs the first time was people thought that was a bit odd. And so now people are finding that we have 1 CEO is a bit odd, 2 is a bit -- so let me make it very simple. How is our search going for the new -- for a second CEO? We don't have one. We have no plans for having a second CEO. It was an unusual situation where Mark and Safra were an absolutely fantastic team, but we have complete confidence in our existing management team. We're doing a lot of recruiting. You'll see a lot of announcements at the next layer down, that we're hiring a bunch of people at the next layer down who are potential CEOs when both Safra and I retire, which is not anytime soon. And so we're going to strengthen the management team, but one of the strategies for strengthening that team is not to hire a second CEO.

好的。我是 Larry。我想回答這個問題，因為我理解你問的是：我們在尋找第二位 CEO 的進展如何？我記得我們第一次宣布雙 CEO 時，大家覺得那有點奇怪。而現在大家又覺得我們只有 1 位 CEO 有點奇怪；2 位又有點——所以我把它講得很簡單。我們尋找新的——第二位 CEO 的進展如何？我們沒有在找。我們沒有任何計畫要設置第二位 CEO。那是一個特殊情況，Mark 和 Safra 是一個非常出色的搭檔，但我們對現有管理團隊充滿信心。我們正在做大量招募。你們會在下一層級看到很多任命公告：我們正在在下一層級聘用一批人，他們在 Safra 和我退休後（那不是近期的事）有潛力成為 CEO。因此我們會強化管理團隊，但強化團隊的策略之一並不是聘請第二位 CEO。

Our next question is going to come from the line of Brad Zelnick, Cr?dit Suisse.

我們的下一個問題將來自 Brad Zelnick（瑞士信貸）的電話線。

Great. Larry, the momentum in Autonomous Database is fantastic, growing over 100% in your public cloud. But having been in market now for over a year, I know investors are wondering when we might see an inflection in your financial results from Autonomous. And I appreciate many customers are including some of the required database option in their deals. But now that you're making it available on Gen2 Cloud at Customer, how should we think about the appetite from your installed base? How material can it be to your financials? And is there anything you might compare it to in Oracle's history?

很好。Larry，你們的自動駕駛資料庫（Autonomous Database）動能非常強，在你們的公有雲中成長超過 100%。但它上市已超過一年，我知道投資人想知道我們何時會在財務結果中看到 Autonomous 帶來的拐點。我也理解許多客戶在交易中會包含一些必要的資料庫選項。但現在你們也讓它能在 Gen2 Cloud at Customer 上提供，對於你們既有客戶基礎的採用意願，我們應該如何看待？它對你們財務的影響可以有多大？以及在 Oracle 的歷史上，有沒有任何你會拿來類比的案例？

Well, no. I mean either -- in terms of the technological breakthrough, well, yes, I guess we're the first commercial relational database. The very beginning, that's kind of what created Oracle Corporation, right? So we had the very first commercial relational database. We had one before IBM did or anyone else did. So that traded -- that turned this company from an idea into the company that manages most of the world's information. So I would say Autonomous Database is that same kind of thing. It is so much different, so much safer to use, so much more reliable than anything else that's in the market. I think everyone is going to use it. Virtually everyone is going to use it. Now that said, it is -- it takes a while when you introduce an all-new product. The good news is we have a huge installed base. It takes a while for that -- for us to ship, if you will, a next-gen technology and get people comfortable with it and using it. And that first year, we've seen a lot of early adopters, but the early adopters are now in the thousands. And we think, eventually, the only database we'll offer is Autonomous Database. It will replace everything else.

嗯，沒有。我是說，就技術突破而言，嗯，是的，我想我們曾經是第一個商用關聯式資料庫。在最初期，那基本上就是創造 Oracle 公司的起點，對吧？所以我們有第一個商用關聯式資料庫。我們比 IBM 或其他任何人都更早。那讓這家公司從一個想法，變成一家管理全球大多數資訊的公司。所以我會說，自動駕駛資料庫也是同樣等級的事情。它與市面上任何產品相比都截然不同，使用起來更安全、可靠性更高。我認為每個人都會使用它。幾乎所有人都會使用它。話雖如此，當你推出一個全新產品時，確實需要一些時間。好消息是我們有龐大的既有客戶基礎。當我們推出下一代技術時，需要一段時間讓大家熟悉、放心並開始使用。第一年我們看到很多早期採用者，而早期採用者現在已經達到數千家。我們認為，最終我們唯一會提供的資料庫就是自動駕駛資料庫。它將取代其他所有產品。

And by the way, an Autonomous Database is only available in 2 forms. If we put a cloud -- if we put our cloud in your data center, that's our Exadata machine and our middleware machines, and all of that's in our storage in your data center and in our public cloud. So we think it'll be consumed in one of those 2 ways and that will replace our entire base. So it means that our existing database business, from a financial standpoint, will more than double or triple -- or triple probably is a reasonable estimate to look at. Now of course, when you're in your business, it's all about timing. And I wish I could tell you exactly how much we'll sell over the next 18 months. That's kind of tricky. Now we don't have that many data points. We have 4 quarters of data points. And the first couple of quarters, it was so new. So we really only have a couple of quarters of data points. All I can say is none of us have ever seen an adoption rate like this before.

順帶一提，自動駕駛資料庫只會以兩種形式提供。如果我們把雲端——如果我們把我們的雲端放在你的資料中心，那就是我們的 Exadata 機器和我們的中介軟體（middleware）機器，所有這些都部署在你資料中心內、由我們提供的儲存上，以及在我們的公有雲中。所以我們認為它會以這兩種方式之一被採用，並且會取代我們整個既有基礎。因此，從財務角度來看，我們現有的資料庫業務將會增加到兩倍以上或三倍——三倍可能是合理的估計。當然，在你們的業務裡，一切都取決於時點。我希望我能精確告訴你未來 18 個月我們會賣出多少。那有點困難。我們目前沒有那麼多資料點。我們只有 4 個季度的資料點。而前幾個季度它還非常新。所以我們其實只有幾個季度的資料點。我只能說，我們之中沒有人以前看過這樣的採用速度。

Our next question is going to come from the line of Phil Winslow, Wells Fargo.

我們的下一個問題將來自 Phil Winslow（富國銀行）的電話線。

Just wanted to focus in on the applications business. Obviously, you saw a nice tick back up here quarter-to-quarter in terms of the year-over-year growth rate. I guess the question is for Safra and I guess Larry, too, when you think about the sort of the different curves that build up that business, obviously, you've talked about it in the past, some of the headwinds from things like Data Cloud but then also some of the wins that we saw in your Fusion, Fusion ERP and NetSuite this quarter. Where are we when we stack all those curves together? Are we past sort of those headwinds, and we're now looking at sort of acceleration from here? In other words, Q1 was the trough? Or just help us kind of layer cake that up if you could.

我想把焦點放在應用軟體（applications）業務上。很明顯，你們本季的年增率相較上一季出現不錯的回升。我想問題是問 Safra，也想請 Larry 一起回答：當你們思考推動這項業務成長的不同曲線時，你們過去談過一些逆風，例如 Data Cloud 之類的因素，但同時本季你們在 Fusion、Fusion ERP 和 NetSuite 也看到一些勝利。當我們把所有這些曲線疊加在一起時，目前處於什麼位置？我們是否已經度過那些逆風，接下來會看到加速？換句話說，Q1 是谷底嗎？或者如果可以的話，請協助我們把這個「分層蛋糕」的結構拆解一下。

So let me get it started, and then Larry can add when he needs to add. So first of all, the Data Cloud has stabilized. I don't know if it will stay that way, but that was a very significant headwind for us in that whole business. It has completely stabilized. It grew ever so slightly. Additionally, the adoption in our ERP cloud is now such that it's in the thousands. We have many, many references. And what happens in our business is that once you are sort of obviously referenceable, it becomes much, much easier for other potential customers to move ahead. One of the things that had been, to some extent, leading to a wait-and-see attitude by some historically business suite customers was the adoption of, first, availability and now adoption of supply chain. Our supply chain now has many, many customers. And so more of our customers are willing and interested in moving. Remember, every single quarter, 100-plus new features become available. And some of those have been must-have features for extremely happy customers in the business suite.

那我先開始，之後 Larry 需要補充時再補充。首先，Data Cloud 已經穩定下來了。我不知道它是否會一直維持這樣，但那曾經是我們整個業務非常顯著的逆風。它已經完全穩定。還略有成長。此外，我們 ERP 雲端的採用程度現在已達到數千家。我們有非常、非常多的客戶案例可供參考。而在我們的業務中，一旦你顯然已具備可被引用的成功案例，其他潛在客戶要推進就會容易得多。過去在某種程度上，讓一些歷來的 Business Suite 客戶採取觀望態度的因素之一，是供應鏈的採用情況——先是可用性，現在是採用度。我們的供應鏈現在已有非常、非常多的客戶。因此，更多客戶願意且有興趣遷移。請記得，每一季都會有 100 項以上的新功能釋出。其中有些對於 Business Suite 中極為滿意的客戶而言，是非有不可的功能。

Simultaneously, as Larry mentioned, SAP customers realized that SAP's offerings are not cloud offerings. If you use SAP's technology, you don't get 100 new features every quarter. Theirs is simply a hosted offering, which means that we are the obvious choice for customers who want to go through and really adopt a digital approach in their business. And so for us, this is going to be success leads more success. It's an incredibly virtuous cycle. And as Larry mentioned, what it also means is that additional modules are going with, and that's clearly showing up in our other segments. And of course, HCM, which is obviously a match and then ultimately, the front office, where we've got a lot of new technology rolling out that is being adopted.

同時，如 Larry 所提到的，SAP 客戶也意識到 SAP 的產品並不是雲端產品。如果你使用 SAP 的技術，你不會每一季獲得 100 個新功能。他們的只是託管式（hosted）方案，這表示對於想要在業務中真正採用數位化方法的客戶而言，我們是顯而易見的選擇。因此對我們來說，這將是成功帶來更多成功。這是一個極其良性的循環。而且如 Larry 所說，這也意味著會搭配導入更多模組，這點也清楚反映在我們其他業務區隔上。當然還有 HCM，這顯然非常契合；最終還包括前台（front office），我們有許多正在推出並被採用的新技術。

Yes, I think a lot of SAP is -- again, in the mid-market, we are replacing a lot of SAP customers. And we've got them live, and we have references. But right at the very apex of SAP's customer base, in their top 50 customers around the world, they're all looking at this one particular implementation that -- where we expect to go live in March next year. And I would describe them as rooting for us. They want to have an alternative to a $1 billion SAP upgrade. SAP end-of-lifed their current stuff in 2025. So if you're a big SAP customer, you've got to make it -- in fact, some people have bought -- actually bought ahead -- actually bought S/4HANA in the cloud with no plan -- with no really good plan to implement. It's a 5-year implementation. They're getting price quotes of $1 billion for the upgrade. Imagine going from your existing SAP system, taking out Oracle and replacing HANA, and that's the only change. Basically, that's the only change. And it's hosted, it's not cloud. There is no cloud.

是的，我認為 SAP 的很多情況是——再說一次，在中型市場（mid-market），我們正在取代許多 SAP 客戶。而且我們已經讓他們上線，也有可供參考的案例。但在 SAP 客戶群的最頂端，也就是他們全球前 50 大客戶的最尖端，他們都在關注某一個特定的導入案——我們預期明年三月上線。我會形容他們是在為我們加油。他們想要有一個替代方案，以避免一筆 10 億美元的 SAP 升級。SAP 將他們現有的產品在 2025 年終止支援（end-of-life）。所以如果你是大型 SAP 客戶，你就必須做出決定——事實上，有些人已經買了——甚至提前買了——雲端版 S/4HANA，但沒有計畫——沒有真正完善的導入計畫。那是一個 5 年期的導入。他們拿到的升級報價是 10 億美元。想像一下，從你現有的 SAP 系統，把 Oracle 拿掉、換成 HANA，而這就是唯一的改變。基本上，這就是唯一的改變。而且它是託管式，不是雲端。根本沒有雲端。

Anyway, I want to say -- well, it's easy for Oracle to say, go to SAP's website and try to find the SAP cloud for ERP. I mean you can find it for the stuff they bought. You can find it for Callidus, which is on one cloud. You can find it for Ariba, which is on another cloud. You -- I mean you can find it for little SurveyMonkey and all the stuff that they bought. But they forgot to write ERP -- that's their business, and they forgot to rewrite ERP. Their projects that they had to do, they're called business by design, failed. They canceled it. So there is no cloud option for SAP's customers. They can't go to Workday. Workday can't even handle mid-market ERP. So we're it. So believe me, they want an alternative to SAP. Makes sense, right, that they should want an alternative. But we've just got to demonstrate that we can safely take these enormous companies to the cloud in a way that they're not putting their business in any risk. And that's why this one particular giant implementation, they're watching closely.

總之，我想說——Oracle 很容易就能說：去 SAP 的網站看看，試著找 SAP 的 ERP 雲端。我的意思是，你可以找到他們收購來的那些產品的雲端。你可以找到 Callidus 的雲端，它在一個雲上。你可以找到 Ariba 的雲端，它在另一個雲上。你——我的意思是，你可以找到小小的 SurveyMonkey 以及他們買來的各種東西。但他們忘了重寫 ERP——那才是他們的本業，而他們忘了重寫 ERP。他們必須做的專案叫做 Business ByDesign，失敗了。他們把它取消了。所以 SAP 客戶沒有雲端選項。他們也不能去 Workday。Workday 甚至連中型市場的 ERP 都處理不了。所以就只有我們。所以相信我，他們想要 SAP 的替代方案。這很合理，對吧，他們應該想要一個替代方案。但我們必須證明，我們能以安全的方式把這些龐大的公司帶上雲端，而不讓他們的業務承擔任何風險。這也是為什麼他們正密切關注這一個特大型導入案。

But by the way, they're not just watching and waiting. A number of their biggest customers in the heart of Germany, lots of them are working with -- these are German customers, the core of SAP, are working with us and taking some of their -- moving some of their divisions already -- some of their divisions to Oracle Fusion to persuade themselves that we could do this safely. They've gone that far. They don't want to continue with this obsolete code. This is -- this opportunity is gigantic because we have 1 ERP customer on -- competitor on-premise. They don't have a cloud offering, that's SAP. And we've got 1 ERP cloud competitor that just is not doing very well, having a hard time getting their business off the ground, doesn't scale, there are a lot of problems. So we have a chance here to be -- to get what used to be in the old world called gate share for ERP and like Microsoft Office, to be the Microsoft Office of ERP, and it's sitting there. And we just have to get this last proof point out to SAP's largest customers, yes, we can do this, we can do it safely. And we will be overwhelmingly the largest application company in the cloud.

但順帶一提，他們不只是觀察與等待。他們在德國核心地帶的一些最大客戶——很多都是德國客戶、也是 SAP 的核心客群——正在與我們合作，並且已經把他們的一些事業部門——把部分事業部門遷移到 Oracle Fusion，以說服自己我們能安全地做到這件事。他們已經做到這一步了。他們不想繼續使用這套過時的程式碼。這個機會非常巨大，因為我們在 ERP 領域只有 1 個仍以地端（on-premise）為主的競爭對手。他們沒有雲端產品，那就是 SAP。而我們在 ERP 雲端只有 1 個競爭對手，但它表現並不好，業務很難起飛，無法擴展（doesn't scale），問題很多。所以我們有機會成為——在舊世界裡所謂的取得「主導市占」（gate share）的 ERP，就像 Microsoft Office 一樣，成為 ERP 的 Microsoft Office；機會就擺在那裡。而我們只需要把最後這個關鍵的證明點交給 SAP 最大的客戶：是的，我們能做到，而且能安全地做到。而我們將會成為雲端中規模最大的應用軟體公司。

Our next question is going to come from the line of Mark Moerdler, Sanford Bernstein.

我們的下一個問題將來自 Mark Moerdler，Sanford Bernstein。

Autonomous Database sounds like it's really starting to gain traction. Given the shift of sales personnel to selling Autonomous, can you give us some more color specifically? Specifically, are you seeing the customers buying the required modules as license? Are they including it with the cloud? Are you seeing changes in the size of the customer, the size of the pipeline, the time it takes from customer interest to adoption? Any of that would be really appreciated.

Autonomous Database 聽起來真的開始獲得市場動能。鑑於銷售人員轉向銷售 Autonomous，你能否更具體地提供一些補充說明？具體來說，你們是否看到客戶以授權（license）的方式購買所需模組？還是把它包含在雲端方案裡？你們是否看到客戶規模、銷售管線（pipeline）規模、以及從客戶產生興趣到採用所需時間出現變化？任何這方面的資訊都會非常感謝。

Okay. I'm happy to do that. I think the most interesting thing that's going on is we've decided to take, if you will, an AWS approach to selling Autonomous Database in the cloud. So we almost prefer selling a $30,000 deal to $100,000 deal because a $30,000 deal we can close in 4 weeks. So we think the way to sell Autonomous Database is to get it installed on a project in one of our customers, get it going, help them become successful. And then once they actually got their hands on Autonomous Database, and they have working out -- and they have working projects, working data warehouses, working transaction processing systems, you start land-and-expand.

好的。我很樂意說明。我認為目前最有趣的一點是，我們決定採取某種程度上類似 AWS 的方式，在雲端銷售 Autonomous Database。所以我們幾乎更偏好賣 3 萬美元到 10 萬美元的案子，因為 3 萬美元的案子我們可以在 4 週內結案。因此我們認為銷售 Autonomous Database 的方式，是先把它部署到某個客戶的一個專案上，讓它跑起來，協助他們取得成功。然後一旦他們真正上手 Autonomous Database，並且有正在運作的——並且有可運作的專案、可運作的資料倉儲、可運作的交易處理系統，你就開始採取「先落地、再擴張」（land-and-expand）。

So we are selling thousands and thousands of small deals. And some of those deals are already coming back as larger deals. But our approach again, is to -- and most of it is not BYOL because they're small. I mean some of it is, not -- some of it is BYOL, but the majority is not BYOL. It was interesting in the early days in ERP, when we had ERP, people said, well, you just move your e-business suite customers. No, they were new logos. But in the early days, in cloud ERP for us, they were new logos. Believe it or not, we're actually seeing new logos in database. But again, most of them are our customers. But they're not using their existing licenses, they're going ahead and using a standard cloud license, it's called -- what we call takeup. They pay us takeup, you pay for what you use. I mean it's the promise of the cloud.

因此我們正在銷售成千上萬筆小型交易。而其中有些交易已經開始回流成為更大型的交易。但我們的做法再次是——而且其中大多數不是 BYOL，因為它們規模很小。我的意思是其中有一部分是——不是——其中有一部分是 BYOL，但大多數不是 BYOL。在 ERP 的早期很有意思，當我們有 ERP 時，人們說，嗯，你們只是把你們的 e-business suite 客戶搬過去。不，他們是新客戶標誌（new logos）。但在我們雲端 ERP 的早期，他們是新客戶標誌。信不信由你，我們其實也在資料庫方面看到新客戶標誌。但再次強調，他們大多數仍是我們的客戶。但他們沒有使用既有授權，而是直接採用標準雲端授權，也就是——我們所稱的 takeup。他們付給我們 takeup，也就是按用量付費。我的意思是，這就是雲端的承諾。

And we're getting thousands of these because we think the best-selling technique for Autonomous Database is try it, get it running, watch. It backs itself up. It upgrades itself. It tunes itself. It configures itself. There's nothing like it. We just got to win those hearts and minds. And the way to do that is go wide across our entire customer base. That's what's going on. And again, it's working very, very well. I think it's working very, very well because we're seeing -- just beginning to see the first people coming back and going from $30,000 a month to $600,000 a month.

而我們正在取得成千上萬個這樣的案例，因為我們認為 Autonomous Database 最好的銷售方式就是：試用它、把它跑起來、看著它運作。它會自動備份。它會自動升級。它會自動調校。它會自動配置。沒有任何東西能與之相比。我們只需要贏得那些人心與認同。而做到這一點的方法，就是在我們整個客戶基礎中廣泛推廣。這就是正在發生的事。而且再次強調，它運作得非常、非常好。我認為它之所以運作得非常、非常好，是因為我們看到——才剛開始看到第一批客戶回來，並且從每月 30,000 美元提升到每月 600,000 美元。

Our final question for today will come from the line of Kirk Materne, Evercore.

我們今天的最後一個問題將來自 Kirk Materne（Evercore）的電話線。

Safra, I was just wondering if you could comment on just sort of the geographic landscape for you all. It looked like Europe was perhaps a little bit softer than your other geographies this quarter. Maybe that's just macro. I was wondering if you could just add a little bit color on sort of what you're seeing across the different theaters.

Safra，我只是想請你評論一下你們的地理區域版圖概況。看起來本季歐洲可能比你們其他地區稍微疲弱一些。也許那只是總體環境因素。我想請你再補充一些你們在不同區域所看到的情況。

Yes. This quarter, EMEA only grew in the single digits. Some of the other regions did grow in the high double digits, some very high double digits. And I think there's nothing really special going on one way or the other. Some of it's just the way the quarter falls out for them. But overall, our business remains very strong. And I think that next quarter could be completely different. So it was -- it's really nothing. We're not seeing a massive change even month-over-month or quarter-over-quarter from what it looked like. Obviously, there are some regions doing very, very well for a number of different reasons as they get to roll out new capabilities. We've got a lot of -- we've got data centers opening and have opened very, very successfully in Latin America and in Asia and in Japan. And so we've got a lot of usage and increase in some of those areas, which helped to explain some of the big growth in some of those areas. But EMEA, I think we'll see -- there's nothing special, in particular. I have no real color to add. And we'll see what happens after today's election in the U.K.

是的。本季 EMEA 只以個位數成長。其他一些地區則以高雙位數成長，有些甚至是非常高的雙位數。我認為其實沒有什麼特別的事情在某個方向上發生。有一部分只是因為他們那一季的落點所致。但整體而言，我們的業務仍然非常強勁。而我認為下個季度可能會完全不同。所以這——其實沒什麼。我們並沒有看到相較於先前的樣貌出現巨大的變化，即使是按月或按季來看也是如此。顯然，有些地區因為多種不同原因表現非常、非常好，因為他們開始推出新的能力。我們有很多——我們在拉丁美洲、亞洲以及日本都有資料中心開設，且已非常、非常成功地啟用。因此在其中一些地區，我們看到大量使用量與成長，這也有助於解釋那些地區的高成長。但就 EMEA 而言，我認為我們會看到——並沒有什麼特別的因素，尤其是。我沒有什麼額外的觀察可以補充。我們就看看今天英國選舉之後會發生什麼。

Thank you, Safra. 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. We look forward to speaking to you.

謝謝你，Safra。本次電話會議的電話重播將提供 24 小時。撥入資訊可在今日稍早發布的新聞稿中找到。如對本次電話會議有任何後續問題，請聯絡投資人關係部門。我們期待與各位再度交流。

With that, I'll turn the call back to Holly for closing. Thank you.

那麼，我把電話交回給 Holly 作結語。謝謝。

Thank you for joining us for today's Oracle Second Quarter 2020 Earnings Conference Call. We appreciate your participation. You may now disconnect.

感謝各位參加今天的 Oracle 2020 會計年度第二季財報電話會議。我們感謝各位的參與。各位現在可以掛線。