We’ve done a bunch of things around the healthcare industry. One of the things we want to do is, we’re the largest provider of clinical trial software. But the clinical, the results of the clinical trial goes to a government regulator. And we’re now working with the government regulators to develop the software that allows them to take the clinical trial output in digital form and get it through the regulatory process much faster at a much lower cost. So we’re looking at the entire healthcare ecosystem and trying to automate both sides of the transaction. The pharmaceutical company that’s designing the drug, the hospitals that are testing the drug, and the regulators that are approving the drug should all be digitized. And we are well on our way to doing that because of our investment in Cerner.
And now what has blossomed into an investment across the entire healthcare ecosystem.
Siti Panigrahi: That’s a perfect example, Larry. Thank you both for the color.
Operator: We’ll take our next question from Raimo Lenschow with Barclays.
Raimo Lenschow: Hey, thank you. Could I switch gear a little bit? A question for Safra. Safra, we now have Cerner in as part of Oracle. Where are we on the cost, on the synergy capture and cost takeout? And so are we, do you see we are done there or are we kind of still at the beginning of a journey? Thank you. And congrats for me as well.
Safra Catz: Thank you. I actually feel like we’re still at the beginning if you want to know the truth. We wanted to stabilize the operation. We definitely didn’t want to risk breaking anything. You will be seeing some more significant changes and we have legal entity combination imminently and that actually gives us a lot more flexibility regarding the way we operate the business. We are just at the very beginning of it. Their margins are nowhere close to the way we run our company and we are right at the, I’d say we’re at the beginning-ish, sort of at the beginning of the middle at most. We’ve got a long way to go on just operationally and we’ve got a lot of work going on on the development side as we bring our technical capabilities into the product and move them into the Oracle Cloud. There are a lot of savings as we do that also.
Raimo Lenschow: Okay, perfect. Thank you.
Safra Catz: Thank you.
Operator: We’ll take our next question from Mark Moerdler with Bernstein Research.
Mark Moerdler: Thank you very much for taking my question. Congratulations on the quarter and frankly on the guidance. I’d like to get a better understanding about the underpinning of the OCI Gen 2 business. Specifically, can you give us some color on the customer concentration, industry concentration, both in the existing customer base as well as the pipeline and how you think that’s going to change over time? Thanks.
Safra Catz: I don’t know, Larry, if you want to take a stab at it. The reality is that our customers run from very small to very large. As a general matter, we’re a small percentage of their IT costs when they get started and sometimes a small percentage of their cloud spending. As they try us out, they move larger percentages of their business off of other clouds or from on-premise. We’re at the very beginning of this movement, especially on the database side as more and more of our customers, our big customers often have cloud a customer or dedicated regions is sort of their ultimate goal for their most critical database workloads. We’re at the absolute beginning of that with most of our customers. It’s basically what we find is if you give us a chance, it is so much better, so much more cost effective, of course, so much more secure that customers very quickly realize how advantageous it is to move.
