Safra Catz: So as Larry was touching on it, we have many, many enterprise customers, phone companies, banks, governments who make commitments to us as part of their move to cloud. So we do have some pay-as-you-go customers, but the bulk of our revenue, first of all, our SaaS revenue, as you know, you implement an accounting system, you’re not going to pay less tomorrow. You still have to run your accounting system. So the SaaS side of the business, again, is fully committed. And then because we have so many important enterprise customers who are bringing basically their crown jewels into our cloud and had been waiting really for us to be in the position to receive those, they want to have a two-way commitment. They want to know that we have the capacity for them, and they want to get a slightly better price.
So first of all, those that go into the public cloud, whether it’s Telecom Italia or Verizon or some of these others, they obviously would like a better price, so they make commitments to come in, usually committing less than they expect to use, and almost always, over using more than they expected. However, other customers have cloud customers, as Larry mentioned, or other different arrangements, the alloy arrangement where we have a combination with the telco or a data center provider, those are all committed. And so we’re very — we’re very strong in the commitments from our customers. And by the way, they want to make sure we have available capacity back for them because many of them get rid of their data centers when they’re finished. And that’s the ultimate goal for them.
They don’t want to be running back and forth. These aren’t toy workloads. These are critical workloads for their business, and they want to know that they’ve got a place to put those.
John DiFucci: So the commitment is these — a lot of these, it sounds like these people are committed to ramping up to the full capacity of their data center and not until they do that, do they shut down for the most part their — the data centers they’re replacing?
Safra Catz: Yes.
John DiFucci: Okay.
Safra Catz: Yes. Just so that we’re clear here. Pay-as-you-go at Oracle is less than 5% of our business. Okay?
John DiFucci: Okay.
Safra Catz: Okay. Is that helpful?
John DiFucci: That’s very clear. Thank you very much, Safra.
Operator: Your last question today comes from the line of Brad Zelnick with Deutsche Bank.
Brad Zelnick: Larry, as I think about the strong momentum in Cerner, expanding the contract base by $5 billion and your expectations for the business to accelerate, can you parse through the drivers in terms of new logo win rates versus the expansion in cross-sell you’re doing with Fusion, for example? And then also, Larry, you touched on the idea of a single medical record. People have been talking about this for decades. When does it become clear that Oracle is helping improve the quality of care and saving lives? And I’ve got a quick follow-up for Safra if Ken will allow.
Larry Ellison: Well, I think there are two things. One is the system we’re putting in for the DoD and for the VA is one patient, one record. So that’s a model of it. The one going in, in Nova Scotia is the same. We are bidding on a huge contract for the NHS. Again, some of these contracts are enormous and the responsibility to go along with the contracts is also enormous. But our system, that’s how our system works. Our standard system that we have built is one patient, one record in the database. So if you visit Stanford and UCLA and Mayo Clinic and Cleveland Clinic, even if you go to these four different providers for a variety of different issues, all of your data will be in one database. All your patient data will be in one place immediately accessible in a time of emergency or just a routine visit to the doctor.
