Safra Catz: Yes.
John DiFucci: Okay, and then, and then, and then…
Larry Ellison: Grown a lot.
John DiFucci: Grown a lot, okay. And then finally, the — what Larry just said about the database, Safra, I’ve heard you say at times, we’re at the beginning of the beginning of the transition of the database to cloud. So I know you have database in cloud today but that migration of the on-prem that’s still to come pretty much.
Safra Catz: Yeah, it is really still to come. It is — we’re talking about tens of billions of dollars when it comes over. So it’s starting to come, but we haven’t been in the place to receive it all en masse, and customers have to get comfortable with it. And also, multi-cloud has to really roll out, and that’s going to be another piece of it. So customers are going to have so many excellent choices. They can go in the public cloud, they can go in OCI, they can go in their cloud to customer. They can go in OCI at Azure is one possibility. So there’s just — it is the absolute beginning. Because remember, the Oracle database is not a toy. It’s a mission critical system. If it just disappeared at companies, the whole planet would come to a standstill.
And so this is coming and it’s just the beginning. So you see what’s going on with OCI, no one believed us this was possible, now here we’re at, and then right behind it is going to come the database, and that’s going to be something.
John DiFucci: And per Larry’s comments, and I’ll stop talking, but for Larry’s comments, the database gross margins, given the autonomous nature of it, we should expect that to be different than the OCI core Infrastructure as a Service gross margin?
Safra Catz: Yes, absolutely. Database…
Larry Ellison: I don’t want to go into detail, but the autonomous database is, one, autonomous, there’s no labor associated with it, but it’s also the only database that’s fully elastic. In other words, if you’re not using it, no one’s using it. I mean, there are no cores, there’s no cores occupied. It goes back into the pool. So if you as a customer aren’t doing something with the database, literally no cores are occupied. It’s very different than an Amazon database where you allocate. I always need 64 cores or 64 processors to run my database and that’s seven days a week, 24 hours a day. We only charge you for what you use when you’re using it. We only consume what you use when you’re using it. Otherwise, it goes to other customers. It’s totally different. That allows us to have dramatically higher gross margins.
John DiFucci: Thank you very much. Sorry for the several part question, but thank you.
Safra Catz: Our pleasure.
Operator: Your next question comes from the line of Mark Moerdler with Bernstein. Your line is open.
Mark Moerdler: Thank you very much for taking the question. I really appreciate it. I want to change gears a little bit and turn to Cerner, which people don’t really focus on that much. Cerner license revenue has been down, likely in preparation for customer shifting to SaaS, but Oracle does not yet have a full multi-tenant scalable Cerner SaaS solution. So what I’d like to ask is couple parts. How should we think about the timing of, one, the availability of — yep.
Larry Ellison: That’s not correct. So Cerner has several pieces.
Mark Moerdler: Okay.
Larry Ellison: And I believe about half the customers will be moved, half of the Millennium customers. You can think that Cerner is just automating hospitals like Epic. And that’s a product called Millennium. And about half of those customers will move to OCI by February. Half of all existing customers will be in Oracle OCI. But we’ve also developed something that began at Cerner. And we have finished now, completely rewritten it. Well, we’re in the process. We will finish next calendar year. But it is largely rewritten and available right now, something called our Health and Data Intelligence platform and it was known as Cerner HealtheIntent. And that’s for public health. That’s for population scale, public health management.
Again, it’s sold to US states. It’s sold to Australian states. It’s sold to European countries. It’s for managing population health. Remember during COVID when we didn’t know, New York thought they were living out of hospital rooms, but they really weren’t, but no one knew, because no one kept track of our inventory of hospital rooms. There was no national view. No one knew how many people contracted COVID yesterday. We didn’t have that national view. We have that national view. It is fully staffed and it is available right now. So some of the pieces, some of the Cerner pieces are coming online, other Cerner pieces are moving more gradually, but they’re all going into OCI. And they’re all very quickly moving from a license basis to a subscription basis.
Mark Moerdler: So that’s very helpful. So that starts to answer the question I was asking was how should we think about the timing of the transition, Millennium you’re saying is going to be an OCI. Is that going to be a fully SaaS version? When will the rest of the solutions be fully SaaS? And how should we think about the revenue lift as the license and maintenance moves to the cloud — to SaaS?
Larry Ellison: So it will be fully an OCI and SaaS, but it will not be the new, we are rewriting, we are replacing Millennium a piece at a time, not a big lift and shift, but we are upgrading and modernizing Millennium a piece at a time, and different pieces will be available starting next year. And so, Cerner customers will be getting new features and capabilities as a part of Millennium as Millennium moves to OCI. And again, half the customers will be in OCI by February. So we’re making a lot of progress. At the same time, we’re adding a lot of new products to Millennium, like the public health products. But we’re also adding much of new products for pharmaceutical companies. We’re adding additional products for hospitals to keep track of their inventory, for hospitals to manage their workforce, really what we think of is our health division in Oracle has products for the entire healthcare ecosystems.
