emily: i'm emily chang. this is bloomberg west. investors bet on the state of oracles cloud business. uber ceo talks about prices and robots with marc benioff. bill gurley on amazon's challenge. all that ahead on bloomberg west. first to our lead. the company reporting quarterly

revenues that fell short of analyst estimates. oracle was hit by a slowdown in license sales. that is hurting its traditional business. james. discuss, what is your big take away? they are not moving as fast into the cloud. means they have played catch-up. emily: who was winning? james: salesforce with its backdrop going on here in sanford disco has done well but themselves are not moving as quickly as customers are ready to do. you see someone like amazon and microsoft saying here is the capacity, why don't you join us? emily: could it be short-term

pain for long-term game? it seems they recognize the need to move quickly to the cloud with they have not been able to deliver. james: they recognize it and have not been able to deliver. certain they will get it next time around? emily: ok. what does oracle need to do? moved quickly. they are a giant tree they are not a company that can move as fast as these others. james: we are coming to the end of the calendar year. they will be out there shaking hands, working with clients to say trust us, we want to sign you up, let's commit to agreements during which we will put up some specific guarantees. i think it is going to be about interestingly not the cloud service, the human service. alix: interesting -- emily: interesting. i want to move to chuck robbins

three is taking the reins, robbins has presided over a successful financial order. there made it clear that are going to be some major changes. i spoke with him earlier today and started by talking about his vision. if you think about what just occurred we had a record quarter. as i have said that to people they go you had a record quarter life the 30 year history of the company, when it has been doom actually had the biggest quarter in the history of the company. our solutions are relevant to our customers. they appreciate our innovation. if you think about what has transpired, we have 15 billion devices connected to the internet. we believe there will be 50 billion devices by 2020. hopefully they are rides.

it is a big number. by 2030 500 billion devices. when you think of this conductivity, we think that is an hour wheelhouse. that isnalysts say going to continue. what do you see? chuck: we have the opportunity to continue to grow. we can grow faster. with the connectivity, they will have to judge us for our results. emily: how much faster? chuck: we will have to see. emily: we are anticipating a decision from the fed tomorrow about whether or not to raise. how is cisco preparing for an environment in which rates may be a higher? chuck: we have ample cash. i think that what you are seeing with the markets, when things get tougher that is good for us. we had great strength, great

balance, when there are challenges we gain market shares. while we don't want to see that it is good for us. some of the valuations may be coming more rational as well. emily: what do you think of the valuations? the credit markets have a different perspective than the public markets do. you will have to see some normalcy come back. emily: cisco has been inquisitive. do you see that continuing? do you think they will be more or less inquisitive? we drive innovation today we have 20,000 patents. we do acquisitions. we have done 180 of them. 90% of the employees are still with us after five years. sourcefire, they have been very successful. analyticse areas of

and security that are important to our customers. alix: that is where you think you will be more inquisitive. you mentioned tech giants need to adapt. hp are laying off 30,000 people. companies are making painful choices. microsoft has had layoffs. how happy are you with the size? in the case of hp and others we do have to make tough decisions relative to our own business. we believe that coming off of a record quarter the pace of change is going to require us to manage our business more effectively. we are thinking about more portfolio decisions. i don't want to put the company in a position where we forward investment too much so we take a large action. we're going to drive productivity and take advantage of the technology to digitize a company which we think will make us more efficient.

we are comfortable with that. emily: do you see more layoffs? chuck: we look at geographies and those that are performing well be invest in. are struggling we have to adjust. we have to adjust our expenses. those are the things we will focus on. emily: cisco is a global company, lots of different geographies. what do you think of the broader market volatility weirs eating here and in china -- we are seeing here and in china? chuck: china and russia have been geopolitical issues to date. we have brazil that has been a challenge. then you have mexico and india that have performed well for us. we focus on what we can control. .hat is all you can do we will respond and adjust based on what is happening in the world. emily: meg whitman sees more

consolidation in the tech industry given what has happened more broadly. do you see that? chuck: there be significant consolidation. i agree with her. what you are finding is that customers are looking for the business benefit of the technology. they're looking to get to the outcome faster. to do that we have to bring these architectures to life, bring the solutions to customers in a way that can provide benefits immediately. the smaller players are going to have a challenge providing a box because that doesn't get them to the business outcome. that and customer expectations are going to lead to tremendous consolidations. be's: chuck robbins will eking a dream force tomorrow. -- be speaking at dream force tomorrow. next, the future of self driving cars. ♪

users will out to nd -- lyft earlier in this year. for now they control 80% of the right killing market in china.

ride sharing market in china. uber haslast year added a couple dozen sciences to work on self driving cars three take a listen to what he had to say about the driverless future. ofthere is an insane amount that comes out of this technology. that is why so many are working on this kind of thing. where over is, you can see it is disruptive because we have a two-sided market place and we do well as we are today but as a technology company you have to say am i going to be part of the future or am i going to resisted? we don't want to be like the taxi guys before us. we are a tech company.

we embrace the future. what you are with is optimistic leadership, which is ok, there is going to be interesting things that happened when driverless becomes a thing, when companies rollout driverless cars. uber in a place where we can be leaders in helping through that transition? this is not going to happen at once and it is not owing to -- it is not going to happen anytime soon. out, there iss going to need to be leadership in cities, leadership with the companies that make this technology, to help with the is antion, and i think it interesting challenge and an interesting opportunity to lead through it. with travisbenioff

at dream force. what you make of travis' comments? it is easy to be seduced. driverless cars are far off. are going to be here faster than he is saying. people will accept them faster than governments will. there are some barriers. the challenge he is facing is he is barely getting his first business off the ground and he ready for disruption and trying to say publicly we are not going to let that happen to us. will investors let him be the guy that steers the ship into the next wave? i am not sure they will. emily: clarify. james: he seems to far over his head. emily: you don't think he will remain the ceo? ways: not investors have a -- have their way.

he does not seem able to handle the complexity of government and the end-user, they get the best experience but not even the drivers are as happy as they were a year ago. managing those means is hard enough. take it to the driverless car -- l and it is investors have been saying we're putting this money in you because you are going to be huge. he is getting the message from behind. maybe it is not the right message to be telling the world when there are still skeptical governments and drivers out there. emily: do you think he will go through the ipo? james: i think so. he is the figurehead. he needs to learn how to change. emily: your opinion is controversial. investors, it seems to me he has support. james: absolutely, he does for

now. when he is talking 15 years from now that would be surprising. if he doesn't learn how to manage these complex issues with so many constituencies, five years from now there will be talked about how to get to the next level. if that happens you will get credit for saying it first. star, the entourage adrian is a believer in crowdfunding. he raised funds for one of his films. i caught up with him and asked what hollywood can learn from the tech community. adrian: i have been curious about the opportunity to have equity in the long-term upside of the successful project given to the crew and people below the line. i'm interested in exploring that, especially now that things , budgets are

shrinking. there is not money to go around. and my social values, to support and enrich the everyman, the little guy. let's give them an opportunity to benefit when things go well. is google's biggest challenge? we have more from my interview with bill gurley. and google gets involved with europe forced refugee crisis in decades. ♪

emily: it is time for the daily by. $11 million.r is

the amount that google is aiming to raise and a donation matching campaign to a refugees flooding into europe. google is matching the first $5.5 million worth of donations made to the google.com/refugee relief. europe is facing its worst crisis since world war ii driven by civil war in syria, continued violence across afghanistan, iraq and libya. donations go to doctors without borders and save the children. google, bill gurley of benchmark capital talk to me about what he's these is the biggest threat to google's search business. bill: you start your searches with amazon with prime check. the second thing you do if that doesn't work is unchecked crime. then if that doesn't work you go to google. this is a reversal. google has become the starting

point to the search of last resort. that is powerful. amazon threatens a much broader segment of google's search traffic which is e-commerce. resort,earch of last what does that mean for google? isl: what i see happening two things. he has this thing called google express which i view as a chaotic response to the problem, which is ok, we're going to make it possible to close the loop on a google transaction but it is not set up in a logistically optimal way. i have a hard time is it anywayt optimize at a level that makes economic sense. emily: do you think google is serious? t?at about instant car

covering the last mile, target is trying in minneapolis. does it have that locks down? bill: star a couple of questions about that situation that i don't know. one of them is, how many people need that amount of care? fan of instantge cart. they had high npf scores, everyone loved wet van until went out of business. you give the consumer more value than you charge them for they will love you, which leads to the saying about handing out dollars for $.85. you can go -- what percentage of the population wants that much touch? the second question is core

economics. we are in a period where unicorns are given hundreds of millions of dollars and we don't have disclosure. you have to ask yourself how much margin is there, does it have to be priced at a premium or not? the economics will be difficult. insta cardsu think could be the next web van? i don't know. i don't have enough knowledge. it is not a question if people like it. generate enough cash flow having that type of operation. chris told me he didn't insta cart because that is something that uber will

do. what do you think? -- it is always cyclical. the more we get into territory the more optimistic we get about business models that are lower margins. it is like the last time all happened withf 1999. it's the same. the smartphone helps because you have more data and transparency but we will see. the question has to do with economics. core economics. emily: bill gurley of benchmark capital. he got a lot of flack for that. what do you make of what he said? you can ask casual about

these things that are maybe going to be the next big unicorn or die tomorrow but he is right about the fundamental economics. this will come down to can you create a business that generates value for which you can make a profit? it can't work any other way. we know this capitalism. the challenge is that the cost to do all of those things has been falling steadily since cause mode. mobile helps a lot. clout helps a lot. analytics help a tremendous amount. things will be ordered for me that i didn't know i needed until they showed up at my door. emily: what about on-demand startups like instacart. isthe same time that uber seeing success? james: the challenge with on-demand businesses is they wait for you to realize you have a need to make it convenient to

act on that need. ship. i love the james: the next phase is when somebody does the thinking to realize you need something before you need it. before you say i need the car the car is pulling out. that is machine learning. whoever nails that is not only going to get your dollar but probably your two dollars. you will pay a premium for that service. emily: we will see of travis is at the helm when that happens. it has been great to have you here on the show. looking forward to you speaking a dream force tomorrow. that does it for this edition of bloomberg west. tomorrow we're live from dream force. i will bring you my interview with marc benioff. ♪

john: i'm john heilemann. mark: i'm mark halperin. with all due respect, to the gipper tonight it is all about the horse race. >> hello from the ronald reagan library. soon, two rounds of republican candidate will engage in back and forth on affairs domestic and foreign live on cnn. here is what the venue looks like from above. it is huge.