>> From Orlando, Florida, it's theCUBE, covering SAP Sapphire Now 2018, brought to you by NetApp. >> Welcome to theCUBE, I'm Lisa Martin, we are with Keith Townsend, we are in Orlando, in the NetApp booth, at SAP Sapphire 2018, joined by the CIO of NetApp, Bill Miller, Bill welcome to theCUBE. >> Thank you, great to be here, I really appreciate it. >> So, NetApp, 26-year-old company, you guys have been on a big transformation journey, give us some nuggets of NetApp's transformation story. >> Yeah, it's really a fascinating story, and it all centered around the customer. In going back a couple of years when we realized this story was evolving from a storage story and a storage history, to a data-centric story going forward. We spent a lot of time listening to our customers. We listened to them in briefing center meetings, we listened to them through strategic customer account sessions, and we really were drawn to this notion of providing outcomes for our customers rather than providing storage long-term. Storage, like all other appliances, ironically in the name of the company, a very well-established respected company, Network Appliance. It was not going to be about appliances in the future, it was going to be about data management and leveraging the value of the data for our customers. So our transformation was about bringing that journey to life and giving our customers choice. Choice around where their data resides and how they utilize that data and how they leverage that data for their customers. So as we listened and we, we kind of absorbed the impact of this, it became clear that for the foreseeable future we were going to live in a hybrid-cloud world. And really what I mean by that is our large established customers were going to have very consequential private cloud data centers for a long time to come. We did very large complex applications that served their customer communities. They weren't going to be able to pick up those large applications and move them quickly to the cloud so they were going to run in high-intensity private cloud very efficient data centers. But at the same time, they were looking to transform digitally, to go on this digital transformation journey, and the vast majority of them wanted to lean in to the hyperscale or clouds, the cloud suppliers, and build their future strategic applications in the cloud. And it became clear to us that their data was now going to be bifurcated, it was going to reside in their own prim facilities but critical, mission critical, and advantageous data was also going to sit out there in the hyperscaler cloud and a company like NetApp could build this data fabric to connect them seamlessly so that the customers had choice. I mean, that's really what was behind the initiative to transform NetApp. >> So as we talk about that transformation, NetApp identified the opportunity. >> Yes. >> Looked at the product portfolio, looked at the gaps. Identified where they needed to go. >> Right. >> NetApp the company needed to go through a digital transformation itself. >> Yeah. >> So as an SAP customer, as a NetApp customer, as the person responsible for enabling developers, application teams, product teams, to execute on that digital transformation, what were some of the challenges, lessons learned as the CIO of NetApp that you experienced. >> It's an awesome question. You kind of went from we're going to transform for our customers to what I did to, or my teams and myself did, to enable that. There's a middle step which is all of our business partners in the company. You know, whether that's finance or sales or marketing, having to realign their business processes to this new need. So let me give you an example on the sales, the go-to-market function, you know. We call this a go-to-market motion, you know, how you sell. Well if you're selling an appliance, you know a piece of hardware with some software with it, that's one very well-defined and familiar motion. If you're going to sell software solutions, if you're going to sell advanced professional services that advise our customers on how to leverage data, those are very different motions that you have to enable to be successful. So what that means is taking that set of business processes that are unfamiliar to us. You know, when a customer wants to buy our products on a pay-as-you-go, a consumption model, rather than a capitalization acquisition, that's a whole different set of processes we have to put in place behind the scenes. Financial processes, legal processes, and of course IT systems. So it started with the business functions, figuring out how they were going to transform their work flows, and then IT had to come in underneath and say do we have the systems, the tools, the platforms, like SAP and other partner-provided platforms to enable that and make those work flows come to life. So it was really a partnership across the whole enterprise and if you really listen to our CEO, George Kurian, George will tell you, this transformation affected every single employee and every single leader in the corporation. It was a major change for us to figure out how you're going to take a business steaming in this direction and turn them 45 degrees on a dime and quickly embrace those new processes and mobilize them through new systems, tools, and platforms. So this was a wholesale change to the corporation, I mean it was a burn-the-ship's model, we're never going back, (Keith laughs) this is the new way of doing business for NetApp. Very exciting, and at the beginning a daunting journey. >> We had Dave Hitz on theCUBE doing a NetApp insight last year and one of the things that he said, he had to come in and tell the on-tap engineers, on-tapping the cloud is okay, we're NetApp and we can burn down what we've done before and do it again, and we'll make that journey. So, it's enlightening to hear that NetApp was willing to burn down the old stuff to build the new. So as we talk about that new, what are the major drivers, as you're talking to other CIOs, you know, I'm sure the sales team wants more of your time than you can give. >> Very perceptive, very perceptive Keith. (laughs) >> As you're talking to CIOs, what is that conversation, what jewels are they trying to get out of you? >> So, we spent a lot of time with our customers. One of the enjoyable parts of my job is my customers are my peers, our customers are my peers, so I did spend a lot of time looking at what's on their agenda. They're driven by two passions almost globally and consistently across the industry. They're driven by a desire to move to the cloud, to move to the cloud aggressively for flexibility, to take advantage of these new marketplaces that the hyperscalers are offering. Hyperscalers and their partners. But if you come out to our home base in Silicon Valley, what you see, all the start-up companies are being designed in the cloud functionality, so that's where a lot of the new R&D and the new IP is being created. So, my peers want to invest more heavily in the cloud. And the second thing they want to do is enable digital transformation, real digital transformation, how do they monetize the wealth of the data that they've acquired through their relationships with their customers, and then how do they leverage that for their customer benefit. That's what digital transformation really means to CIOs, and how do I engage in the cloud to do that. So when we looked at that we said, okay the story's about data, it's digital transformation around data, and it's enabling that cloud journey for our customers at a rate of consumption that is acceptable and digestable to them, right? Because every customer has a different rate of motion to the cloud and depending on their industry type and their degree of risk and enthusiasm to embrace change, they're in different places. So, we had to be very flexible in guiding different customers in different industries to that cloud database journey and so that's why we have to spend an awful lot of time listening to our customers to help them do that. >> Did you find during this time where, not only are you having to burn some ships down and transform yourself, while still transacting business in a competitive way. >> That's exactly right. >> Did you find yourselves going, alright so NetApp's talking about data is key, data fabric, are you going away from storage, did you find that was a question that was commonly asked and if so, how are they responding now to NetApp's transformation? >> That's a great question. Let me get back to that as you know, NetApp going away from storage, and hit something both of you said. This journey of transformation, you can do transformation a number of ways, but the two common ways are I do it and I'm gone. In other words, I get through the fiery pit and I'm on the other side, I'm like, wow I'm glad that's over, okay? That's not the nature of our company. It is, what George would call it, a culture of transformation, right? It's about being willing to change directions if you need to change direction and go, in this dynamic world. >> Based on the customers, what they think, not what as a company, NetApp would like. >> And we're in one of the most dynamic areas of high-tech, when you look at data and you look at the cloud and the solutions. So we realize, it's not over, we haven't transformed and we're done. We're in transformation 2.0, which is the whole next generation, and most of our leadership team is very comfortable with the discomfort associated with continually transforming. >> Comfortably uncomfortable. >> Yeah and I think it takes a certain kind of person to lead in our company and you have to be bold. You have to be bold and want to do that, okay? >> So George gave some emotional examples last year of data-driven capability. In order to make these transformations, NetApp itself has to be driven by data. >> That's right. >> What are some of the key capabilities as a CIO that you've given the business to be data-driven? George can't make these decisions unless he has data. What new capability has NetApp provided George? >> Well, I'll give you an example sitting here at this wonderful SAP conference, you know? We rolled out SAP C4C Hybris this past year. A big journey for us, we were on a separate platform, we knew we needed to build these new work flows into our day-to-day processes and as we thought about what potential solutions would be to kind of break the mold from where we were and move forward, we really liked the SAP HANA platform. We think the HANA platform, very dynamic you know in memory, a high-performance computing platform that's built on the NetApp framework, right? It's a NetApp high-performance infrastructure with an in-memory processing capability that's second to none in my opinion. So we looked at data availability, reporting, insights that we could get, and the commitment from our partners to continue to evolve in insights. So you know, you hear about Leonardo here, and some of the AI and machine learning platforms that are being developed, we felt like that HANA platform would give us a lot of flexibility in the future to be data-driven, to pull data and to do it fast and dynamically to help our business make the right decisions going forward. >> I'm curious, as we finish up here, how influential is NetApp's transformation? And you're right, it's a journey, right? You're going to get a destination, oh and now we're an intelligent enterprise, if only. How impactful and influential has NetApp's transformation been on really continuing to establish NetApp's relevance and your customer base, have you seen that like make deals happen because look what they've done. >> Yeah, a couple things I'll say to that. First of all, customers admire companies that are bold and that really want to lean into technology and make change, so our journey of transformation is absolutely a fascinating one for our customers. They feel like, if you're willing to do that, if you're willing to change dynamically on the behalf of your customers, we got a lot more confidence that you're serious about what you're doing and you're committed to the future. So number one, they love it. Number two, they just want to know how to transform themselves, so any nuggets they can take away from our journey, and reuse and position in their business for future success is much appreciated. And then the third thing I would say, and it gets back to an earlier question you asked. You know, as we give them more choice, as we give them a choice to either advance their current data center with high-performing flash or build a really cost-effective high-performing private cloud with converged infrastructure or really venture out into that digital transformative space of the hyperscalers, we're giving them choice every day. So, we're not afraid to offer them data management solutions in all three of those environments and not only choice by going out to a hyperscaler, an AWS or an Azure or a Google Cloud platform, but to be able to choose multiple cloud supplier platforms so they can put some workloads in Azure, some workloads in GPC, and get a confident feeling that NetApp's going to be there for them in any of those platforms in any of those configurations. They really feel more confident when they hear that story, and I would argue, to some degree, they're more likely to buy our traditional storage if they feel confident of our future vision in the enablement to allow them to succeed with that future vision, so it's been well received at that level. >> NetApp, bold. I love it Bill. >> I think we are. >> Thanks so much for stopping by, and now you're Cube Alumni, so congratulations. >> Well thank you and I hope to come back some time. >> Absolutely, we'd love to have you back. Thank you for watching theCube, I'm Lisa Martin with Keith Townsend and the NetApp booth at SAP Sapphire 2018. Thanks for watching.

>> From Orlando, Florida, it's theCUBE, covering SAP Sapphire Now 2018. (upbeat electronic music) Brought to you by NetApp. >> Welcome to theCUBE, I'm Lisa Martin, in the NetApp booth, at Sapphire Now 2018. We are in Orlando, this is an enormous event, there's more than 20,000 people here, and there's about a million people that SAP is expecting to engage online, that's a lot. We're excited to welcome to theCUBE for the first time, Klara Young, the director of Strategic Alliances from AppBuddy and Steven Cox, the head of Global Sales Tools at NetApp, hi, guys. >> Howdy. >> Hello. >> Hi, Lisa. >> Thanks for having us. >> Absolutely, so Klara tell me about AppBuddy. Who are you guys and what do you do? >> So AppBuddy is a provider of a user experience layer that can sit on top of core systems like SAP Sales Cloud or SAP Service Cloud and that really allows the administrators to configure a dream workspace where you can get all the data that you need to work with in one place, and then, the users can interact with that very easily. And so, it's all very user friendly and it allows us to enable sales processes, I want to manage my pipelines, or my accounts, my contacts, all with a very easy to use interface right in the middle of the core system. >> So your target audience would be customers that are already using SAP or customers that are maybe in the transition from, say Oracle to SAP, or something like that? >> So any users that are planning to use SAP or are already using SAP and then want to enhance that user experience, want to give them a faster way to interact with the data, more intuitive, more functionality, right in the same core interface. So those would be good clients for us to enhance that experience, absolutely. >> And what about customers by industry know SAP really kind of being very, very strong in a lot of industries but manufacturing, digital supply chain, but if you look at their customers that are here at Sapphire and there's a million of them, they span so many industries. >> Yeah. >> I think yesterday they were saying HANA is installed in 23,000 customers across 60 industries. Does AppBuddy have a particular suite of industries where you really add even more value, or is it fairly horizontal? >> Oh, that's a real good question. Actually what's the beauty, I think, of AppBuddy's product, is that it is completely agnostic of which process or which industry that you're deploying it in. So you decide what objects, what information I want to put on that. It's not a purpose-built application specifically for one process or one industry. So we serve clients in all sorts of industries. We have a lot in high tech, or in the health care industry, manufacturing, as well but we're not specific to one industry. So really welcoming any use case and we'd love to hear from customers, hey, can I do this? With AppBuddy, could I put this object and that object together and build a process basically, almost in your own app. And we're very looking forward to those feedback from customers and wanting to build those use cases with them. >> And that's been such a huge theme or really an undertone at SAP Sapphire the last few days is how much SAP listens to their customers and really involves them and especially strategic accounts like in a collaborative way and yesterday, Steven, we spoke with your CIO Bill Miller. We talked to him about NetApp and SAP have been partners for 17 years. NetApp is 26 years young now and has undergone a big transformation. Bill talked about some of that yesterday, but you guys also did a big transformation that you were leading within your sales processes and your CRM move into SAP, talk to us about that. What were some of the reasons for that transformation? >> Yeah, it's working with Bill and his team I'm represent the business side and we're looking as NetApp is transforming from a traditional storage company to more a cloud. It's a change in the way we go to market. In the past we shipped boxes to people and they install them or we install them. And in the future, we're looking to more services and cloud-oriented things. And so the kind of infrastructure that we built up to support our large sales force doesn't work as well in the new world. And so we about two years ago, started a pretty big transformation journey to move from this more old-school hardware to more new cloud and through that process, we needed to change our systems. Changing out our CRM became an important component of that 'cause we need more flexibility and we needed to sort of be more contemporary and we worked with AppBuddy and our old system, we used to have Salesforce, and the field was pretty used to using that kind of interface. And when you build stuff like this, you don't always know how important it is to the field. You know, you have guesses at it, and as we looked at things that we had to do to prepare to move this was always something on our list that we felt like was important but we weren't able to do it immediately. It took us an extra release to get it out, so an extra few months. And through those few months, we learned the hard way that the field really wanted it. It was really impacting them. And we had guessed that we thought it was somewhere around 25% improvement in their overall productivity. And what we found was that it's at least that, if not more. >> Wow. >> Because they came back and said, "We can't do our jobs "without this, you guys gotta get it for us." >> So they said either AppBuddy or the highway? >> Yeah, pretty much. (laughs) Pretty much, AppBuddy or they're not happy. They're not happy all the time anyway but I feel like they-- >> Salespeople. >> That by getting that to 'em we were enabling them to go faster in a few things. And it's simple, it's hard to understand, I think, for everybody, it's a simple layer. Whenever you build a CRM or any kinda system, your job is to collect information and then display it back, make it easy to change. And the way CRMs typically work today is, you have a list for you of stuff, opportunities, or new registrations, quotes and you just have to look at that list and then pick one you wanna edit and then go to this details screen and look at it and then go to the edit screen and then edit it and then go back, back, back. And what AppBuddy provides, is it takes all that noise and makes it into one screen so that you can just simply make and change the data, the way you would expect to on a spreadsheet, in a simple experience. And once you give it to the reps, they sorta expect that as the tablestakes, and it's a gap if you look at most CRMs they don't have this kind of in-line edit capability out of the box. And so this is a great, SAP is really excited about this 'cause it gives them a way to solve this problem without having to build it themselves and that's the beauty of these kind of infrastructures where you can add capabilities by just plugging something in. >> Right. >> And it speaks using the APIs to the tool. And so all the rules that we build around the data about who should access it, what should happen when they change stuff, should we protect data. All that is followed, because AppBuddy works right through our APIs, through the SAP provides. And so it doesn't require a lot extra coding or anything. In fact. >> That's right. >> IT guys are standing over there somewhere. They don't like it 'cause I do it myself. I'll actually build experiences for the field really quickly 'cause that I can make a quick custom business process to support something that's needed. >> So, on the AppBuddy website, Klara, I saw, I love stats, and you guys said, we can save time and improve enterprise productivity by 5X to 10X. >> That's right. >> Those are big numbers. >> That's right. >> And you were saying there's been a massive improvement in employment productivity and I imagine in terms of the speed is essential. You know, we were talking, one of the underlying themes here at Sapphire, this year, is the intelligent enterprise, which demands the integration and the embedding of advanced emerging technologies, AI, for example, to make these enterprises truly intelligent, connecting supply chain and demand chain and it's essential, its table stakes these days. >> Yep. >> To be able to drive things faster, right? So that you guys can get what your customers need faster. >> Yep. >> So, you mentioned that huge productivity boost there but also that you were familiar with AppBuddy before your sales guys and gals were like, hey we need to have something that we're familiar with to be able to make our jobs better, so you're also doing, it sounds like a pretty good job of listening to your customers. >> Yeah, I try >> Who are probably very vocal. >> I try, I try, I mean, it's a hard job because you're sort of channeling the sales guys and in our world they're very different. In Europe, they sell very different than they sell in the US and APAC is different. And even within different sections of Europe or in the US, they act differently, and our goal is to try to streamline that so that they can act as much the same as they can across that and we can deploy sort of one experience without having to customize it totally. But tools like AppBuddy give us the ability to be much more targeted and flexible. A simple example I've been given pretty commonly is we have our sales kick-off this week also in Las Vegas and all of our sales guys are going there to learn about how to sell better, how to sell our new products and solutions and leverage some of our improved selling processes and before they go there, we wanted to have them identify a few key opportunities they're working on to say hey, these are the one's that I'm gonna use as my work case as I'm learning these new things, and in theory as we go through and finish our sales kick-off they go back and start the selling process those opportunities should sell at a higher rate then the other opportunities. And so to make that work, I configured a grid, or an AppBuddy list view, and all I put on it was the list of opportunities in one field that says, this is appropriate for our kick-off and so, instead of putting it in the middle of a very complex world, I sent 'em an email, they had a list and they just had to say this guy, this guy, and that guy, and that's all they had to do. And so our response rate on something, which if you sent a list of things to do for the field, they're not gonna respond. They're busy, they're makin' money. But in this case, because it was tied to the new learning and they felt value in it, 80% of 'em responded within 10 days. >> Yeah, wow. >> And you know, you just don't see that kind of response. But it works because it's a simple experience, right? The only thing they could do with that, they get an email that says, do this, they open it, they see the list, they click, yes, yes, yes, and it's done. And that's a whole business process that in the old days could take months to prepare for and create fields and deploy new code and do all the things you have to do. And in this case, I can create the fields in a day, create the grid in five minutes, and then I put it in an email, and done, you know? So this is where you take things to the next level and make it easier for the sales reps to do the things they need to do help us all be successful. >> Did it also sort of abstract, I can imagine, the fundamental challenges that go along with replacing an entire new CRM, going from Salesforce to SAP. >> Yeah. >> Has that been able to help kind of abstract some of the inner machinations of that so that the sales people can just focus on we know this same interface? >> It totally does, because the list views that we create are only the things they have to have. In any system like this you have a bunch of other fields that are specialized for, say, we have a professional services group and they really want to know blah blah but most sales reps, they don't deal with that at all. But you need it on the page, I need to build that. In these views, I can build it for a sales rep view that is perfect for them, right? Meaning there's no extra fields on that list. It's what you need to get your job done. And so it's like a laser focus, and then I can build a separate one for a different kind of role and give that one to them. So without changing the tool, I'm just creating a focused experience. It all uses the same things. You need sorting, you need filtering, you need a simple edit and that's all available and once they learn that core capability then the rest just kind of falls in. >> And then from your perspective it's probably business outcomes that, George, your CEO, is going to be really excited about, cost savings, employee productivity. >> Yep. >> I'm wondering though, we're talking about it in the context of what you're doing within your sales processes and your CRM. Klara, so obviously working with SAP, are there other businesses processes that AppBuddy can sit on top of and help to streamline the interface with? >> Yeah, great question, and actually thank you for asking 'cause I was gonna say, we talked a lot about sales but we could be enabling any other processes as well and services, for example, is a big one. I've got a list, a queue of cases, I want to make quick updates to that. I want to change things or I'm doing some forecasting, some account planning, but our vision, ultimately is to be able to bring from lead to cache all processes and again tailor it for each user, role specifically for them and we're not giving the solution, the customers are defining what do they need for each one of those processes and that's the power, I think, of this configurability and agility that you get. It's not built and hard coded. It's really you who puts it together. But again, we really have that vision of not only linking the CRM data but ultimately we would love to be able to get more use cases of, hey the CRM data together maybe with your ERP data, I want to see my opportunities but I also want to see the orders and I want to see the invoices so get really this 360 view of your customers that I think we've talked a lot about, even Bill McDermott was talking about it. It's so essential and critical to be customer focused is to have that visibility and with this application where you can basically pull data from wherever you need it for that specific view, you give your users that full visibility and therefore much faster answer questions, be in contexts, not lose critical information of a customer. >> Right, you're right, Bill McDermott did mention yesterday in the keynote about really what, SAP's been pretty vocal about for a while, they want to be one of the top 10 global brands. >> Mm-hmm. >> Right. >> Most valuable brands, and they want to be up there with Apple and Google. >> Right. >> And Coca-Cola, and that's for a software company that sells invisible technology, they're on their way. They're now ranked number 17, but he talked about this. >> Yeah. >> Kind of unique position that SAP's in to link and synchronize >> That's right. >> The demand chain with the supply chain >> That's right. >> Which is pretty revolutionary but ultimately, it's not about just having a 360 view of sales automation, it's of the entire customer process. >> Correct, yeah. >> So Steven, sounds like you are a rockstar in that app, with your sales guys going, hey, we need this AppBuddy technology to make our lives easier, our jobs easier. Do you foresee rolling the AppBuddy technology out to include other business processes? >> All the time, yeah, it's all about the data. And change management or getting the field to act in the same way is really hard and it doesn't sound like it should be but, (Lisa laughs) it's like having 1,000 cats on the table and getting them all to look one direction, it just doesn't happen, right? So my job is to make that and if I can have it with a single user experience, right, without having different flavors of screens and extra fields and narrow it down to what they need, bringing whatever data they need to flow from end to end it makes life easier and I've got 'em all trained. You know, we had very high usage in our previous platform and we're building now from that but they all know how to use it now so I don't have to train the cats to look in the same direction, they all know where to go. All I gotta do is add the data, right? And if you look at NetApp's transformation, from a storage company to a data company my job is really data, it's not about the tools as much. It's about how do we facilitate the salespeople to do more with what they have, right? How do I do a cross-sell, up-sell, how do I get them enabled so they can move faster so that's innate and built into what they do? >> Yeah. >> And in that you have to build, and we were just at another panel talking with SAP about, you have to give back to the sales reps and to the people doing the data 'cause CRM's not fun, I mean, it's not like, hey, I'm gonna go play my CRM tonight. (laughs) It's a different deal. CRM requires work and so you need to give them stuff back. Do machine learning, do things that provide scoring, show the probability of close, help them be more successful at their job and bring the data together in one spot. >> You know, I think yesterday one of the themes also was data and trust, the new currency, right? If you can't access it and extract valuable insights immediately and act on them then you risk being usurped by your competition. So being able to enable the data to be accessible, insights gleaned as quickly as possible, you must be the king. >> Well, I don't know about that. >> The data king. (laughs) >> Yeah, it's definitely our job. >> But as we wrap here in the last few seconds, digital transformation and every company has to go through it or you're not relevant but that requires a cultural transformation as well. >> It does. >> And it sounds like what you guys are doing together is helping that at least from the sales force's perspective of where change has to happen. >> Yep. >> Not only is it improving the efficiency of your SAP environment, your CRM environment, but it's also helping, sounds like, from a cultural perspective, as, hey, we've got to go through this transformation, let's make it where we can simplify, let's do that. >> Very much so. Just like I was talking about the cat problem. You've got the reps that are used to doing something the way and you're saying hey, we're gonna evolve and do something different and that change is rough and people don't feel like it's the right thing at times. The great news with this change and the timing of it is that when you're moving from one platform to the other, it's the one time in the life cycle of these products where you can make significant change, drop whole business process and they won't even notice it. I dropped three quarters of the stuff that we had before and just didn't build it. And I don't have people coming to me going, hey, I really miss doing that, and that's good news, we're helping drive the change. >> Yeah. >> Well, thank so much you guys for stopping by theCUBE and Klara telling us about AppBuddy, what you guys do, how you're working together with NetApp and SAP. We appreciate your time. >> Thank you so much. >> Thank you for the opportunity, Lisa, thank you. >> We want to thank you for watching theCUBE. I'm Lisa Martin at SAP Sapphire 2018. Thanks for watching. (upbeat electronic music)

>> From Orlando, Florida, it's theCUBE. Covering SAP Sapphire Now 2018, brought to you by NetApp. >> Welcome back to theCUBE, I am Lisa Martin, with Keith Townsend. We have been here all day at SAP Sapphire 2018. Keith, this venue in Orlando is so huge. It's the equivalent of 16 American football fields. >> Yeah, probably should not have worn a pair of new shoes. >> No, but you did close your rings, so it's a trade-off, right? >> It's a trade-off, yeah. >> So, the keynote this morning started out with a bang. Bill McDermott, the CEO of SAP, is probably the most energetic, evangelical, C-level I've ever seen on stage. You really could feel the excitement, the momentum. They also followed that with some great announcements. You know, they've been saying for awhile, being pretty bullish about wanting to not just disrupt the Sierra market, but wanting to become one of the world's most valuable brands. They wanna be up there with the Apples, and the Googles, and Coca-Cola and Mercedes-Benz, who all have products that we all see, and touch, and feel, and buy. And they announced that the brands e-rankings just came out the other day, that they're number 17, up four spots from last year. So, their momentum is, they're really putting their money where their mouth is. >> Yeah, so SAP is the cash register of the world. 70% of the world's transactions go through SAP, but most of us don't see it. So, it's amazing to see that they're ranked number 17 on those brands that are very, you know, if you told somebody you worked for SAP, they'd be like, oh, okay, I think I might have heard of that. >> Right. >> Or, I've heard that that was the reason why manufacturing is down, because the SAP system was down. So, it is a bold statement to say that you're gonna go from that, to a household name. Interestingly enough, part of that is becoming an ecosystem. So, becoming a platform. What we've heard today was a lot of talk about how SAP is transforming from a product company. You know, a point-of-sale system is one thing, but to say that you've built a ecosystem, and a platform around that, is the goal that I think I heard today from the stage floor. >> And you're right, you talk about, you know, them becoming a household name, with a product that's basically invisible to most people who probably use it. They have amassed 390,000 customers in 46 years. They've been around for a long time. This event, though, is massive. The partner area alone is huge. There's probably more than 20,000 people not just that are here, in Orlando, but, he said, Bill McDermott, a million people engaging with SAP Sapphire via the online experience. That's enormous. But to your point, it's all really fundamentally due to the partnerships, the systems integrators, the technology partners and more who have helped them on their transformation. >> Yeah, we had KPIT on, they said the guest has been on 20 Sapphires for 20 years, the event has gone on for 25 years in some form. He remembered, initially, they might have had one or two sessions. They have 12, KPIT has 12 sessions this year at the Sapphire 2018. There's a huge ecosystem of partners, here on the show floor. Over 500, I think, sessions in general. We had the VP of Community for S/4. They have 1,000 how-to videos on how to just do basic things in S/4. Huge community, huge event. SAP is starting to make end rolls and becoming, again, not just a products company, but an ecosystem company, I think. Sapphire in Orlando is a great example of how they're expanding the brand. >> Yes, and in fact, on the brand part, you know, that's one of the things that their CMO, Alicia Tillman, who was on main stage this morning, that's something that I've heard her talk about before. She's been the CMO for about nine months now, and she said, you know, and marketers will know, campaigns and messaging will change every quarter, six months, and that is fine. It's the brand narrative that they really started to work on at SAP. So, you're seeing this "Best-run companies run on SAP", it's sharing the value of what SAP can deliver with their partner ecosystem, in terms of how it's helping customers transform their businesses, transform industries, save lives. They've done a very focused job on showing how this invisible technology is really revolutionizing the world. They're now going, you know, full-force, embedding A.I., and really being quite bold, they're saying. I loved what Bill McDermott had on the slide this morning, of augmented intelligence. And there's always a lot of concern with A.I, right? Jobs being replaced. And he talked about what he, and some of the other world leaders, were talking about. And I liked augmented intelligence, to augment humanity, this connection of humans and machines working together. They're really being quite bold, and focused, in that area. I'm just curious what your take was from an advanced analytics A.I. perspective. >> So, there's a lot of talk around advanced A.I. analytics. At the end of the day, it's about actual business results. We're here in the booth of NetApp, who has done a great job, frankly, of transforming their image from a storage company in the middle of a transformation to being known as a data-driven company. So, NetApp has gone through a similar change that SAP is looking to do, from a brand perspective. Reasonably enough, we had the CIO, Bill, from NetApp, that talked about that transformation, and how data is a key part of their own transformation, internally. And, how SAP could probably hold NetApp up as a great example of a company that's using the predecessor to C/4HANA, which was just announced, on the staged hypers of taking data, analyzing that data, applying A.I, machine learning, more like machine learning in reality. Machine learning to that data, and then getting insights, so that humans can make better decisions. >> Right. You know, on that front, one of the themes I heard today, Keith, from not just Bill Miller, the CIO of NetApp, who was on here with us earlier, but some of their other partners, NetApp and SAP's partners, all talk about their own transformations, internally, as essential for them to become intelligent enterprises, which is a lot of what SAP's talking about. But I also thought that was quite valuable, from an external perspective, to hear NetApp talk so candidly about their transformation, and share that with their customers who are in similar positions. I think, when vendors will, say, drink their own champagne, and there's real proof there in the pudding. I think that's tremendously valuable for these brands. And we've just heard that kind of consistently throughout the day today, of companies that are showing how they're transforming to then help their customers also transform. >> So, one of the things that we like to ask on theCUBE is not just about current customer base, but, what new customers are you attracting? So, one of the interesting conversations is one of the last ones we had with WorkSpan, and how they're a small company, and they started out the gate with SAP, and how the brand has gone beyond this, oh, this is a manufacturing, supply chain, you must be a Fortune 500 company to even consider rolling it out to. You know what? We're a brand new company, providing a data-driven product, and out of the gate, we're selecting a S/4HANA and the platform to create this new product that's consumed by not necessarily technologists, that powers an alliance platform to find and curate business alliances. I thought that was an extremely interesting interview that shows the power of expanding beyond just a focus on traditional enterprise, but the power of data. And once you've become a platform, how you can power your partner ecosystem. >> I thought that was a great example, as well, of a company that's only been in business for three years, less than four years. How they saw this gap in the market, where they said, you know, we're surrounded by alliance partners of SAP's in this 16 football fields location that we're in. And WorkSpan found that 60 to 75% of announced alliances fail. Huge opportunity for them to then get in from a systematic perspective and align, you know, two companies' marketing automation systems, for example, and sales automation systems. And they really saw this big opportunity to, like you were saying, create an entirely new product, and probably create a new market as a result. I thought that was a really modern example of an idea that saw a huge gap, and can be transformative. I asked Ahmed, after we stopped rolling the cameras, all right, so you found 60 to 75% of these announced alliances fail, typically. What does WorkSpan think you can do to bring that number down? And he said, within two years, we wanna get that down to about 30%. >> Wow. That is an amazing stat. So, let's look at the companies that are digitally transforming. So we had two guests that I want to highlight, one with Mike McGivney from SAP SuccessFactors, which is SAP's people-focused cloud, and then Wolfgang Hopfes, the head of SAP Business for EMEA. And they're on a unique challenge. SAP has been around for 46 years, and in IT years, that's like, you know, 1,000. So, there's a lot of technical debt, that companies are now paying for. You know, back in the nineties, early 2000s, customizing SAP was all the rage. Now, customers are faced with, they have to digitally transform their organizations, how do they do so? Well, it's not so easy to move from a customized SAP to S/4. Bill trumpeted the numbers of 1,800 SAP HANA customers, which is great, well over a billion dollars in sales for an in-memory database. However, SAP has over 300,000 customers. So there's a lot of opportunity, but a lot of challenge. So, the ecosystem of partners, Fujitsu, NetApp, other infrastructure companies looking to help simplify the infrastructure so that technologists within these customer organizations can focus on the higher stack of those larger business challenges of basically pulling apart what they've built. Bill from NetApp shared how difficult their transformation was from their CRM to >> Hypers? >> Hypers. He called it painful, a painful six months. And what we saw today, I think, was a reality check. A lot of enterprises have a lot of pain ahead of them. >> Well, it's pain in a number of areas, and one of them is cultural. And I really thought, you know, you say, SAP being 46 years old is like, 1,000 in IT, or dog years. They're like the Gandalf of IT, right? But one of the things that I found quite remarkable is 46 year-old history, 390,000 customers. But clearly, they have been able to evolve their culture to be able to support what their customers need, and go from just being a supply chain procurement-focused type of business. And I thought that was really quite compelling, to see how they must have had to transform their culture, so that they can help businesses transform. They make it look easy, with the messaging and the momentum, but that was something that for a company that's an incumbent like that, is a bit of, you might say, even a model for how to do that right. >> Yeah, we talked to Joe Lazar, he's the SAP VP of Global Technology Partners. He talked about how SAP likes to be pushed to be a little uncomfortable by their partners, and we asked him the tough questions. You know, there's been tweets and there's been announcements from all the ACI vendors. I've talked to customer after customer that says, you know what, S/4HANA on HCI is what we want. A very quotable comment that he made was, we're not doing S/4 on HANA because we want to, we're doing S/4 on HANA because customers demand it. So, SAP is definitely listening to customer demand, S/4 on HANA is one of those things. You know, he tried to stay away from the bad word of certified on 4HANA, and validated, and focused on solutions, but SAP has a little ways to go. And that's kind of a, you talk to any HCI customer, validated and certified 4HANA is a bad word today, but SAP understands it and they're moving to certify the platform for HCI, so I thought that was a great example of them listening to customers and continuing to transform over the years. >> You're absolutely right. In fact, you know, if you look up digital transformation, one of the first pillars that you're gonna see is you gotta become customer-centric. And we really heard that a lot today. Even NetApp, when you were talking with Bill Miller about ONTAP in the cloud, going it's okay guys, maybe we have to listen to our customers. If we don't we won't be in business. That's a hallmark of an enterprise that is digitally transforming. >> Yeah, I'd argue that Dave Hitts was the one who forced that, that kind of cultural change. You had to bring in the founder to talk to the engineers and that had very engineer-driven thinking And I think Dave was very direct, like you know, we have to make the change or we won't be in business. The pendulum has changed to cloud. The SAP, which is not by any stretch of the mind, was never designed to run in the cloud, but they're adopting the technology for what customers are demanding. There's an AWS booth here, Fujitsu was the first one to say that, you know what, if customers need fail-fast environments, that's exactly where they should go, and put S/4 implementations, and then steady states should be moved to RMPRAM or private dating center or hosted solutions. So, the ecosystem seems to be embracing this change. >> Definitely. Anything that you're particularly looking forward to tomorrow for Day 2? >> You know what? I love talking to customers, so I'm looking forward to more customer conversations, talking about how is this being used? We haven't really talked a lot about Leonardo much. So, you know, IoT, A.I., how are these things that get a lot of press being perceived by actual customers? How are they being implemented? What's their true adoption rate? >> Awesome. Well, I look forward to hosting with you tomorrow, Keith. Thanks so much. >> I appreciate it. >> Thanks for watching. Keith and I have been at SAP Sapphire, bringing you some hopefully great informative content. From the NetApp booth, Lisa Martin for Keith Townsend. Thanks for watching.

>> From Orlando, Florida, it's theCUBE, covering SAP SAPPHIRE NOW 2018. Brought to you by NetApp. >> Hey, welcome to theCUBE. I am Lisa Martin with Keith Townsend, and we are live in the NetApp booth at SAP SAPPHIRE 2018. We are joined by Robert Stumpf, Senior Director of IT, Enterprise Solutions Delivery. Welcome to theCUBE! >> Thank you, thank you. >> So we're here in the NetApp booth at SAPPHIRE NOW. As they said in the keynote this morning, they're expecting a million people to engage with SAP SAPPHIRE this week. >> Yes. >> Think, I've heard rumblings there's about 20+ thousand people here in attendance. >> Yeah. >> Huge event, huge show, lots of announcements. Let's talk about NetApp and SAP as partners. Specifically in the context of the Next-Gen Data Center, bringing cloud-ready solutions to business application. What are you guys doing there with SAP? >> Sure, I can talk a little bit about that. The NetApp solutions fit into the Next-Generation Data Center in a variety of different ways. We have the All FAS Flash that really is the core of our product base and is really the workhorse of all the hardcore applications, gives you really a strong performance in the storage area. Then we have the Cloud Volumes with when you want to scale out to hyper scaler, and you can use the Cloud Volumes abilities there. And then when you look at our HCI components, it is capable of giving you a lot more of the container-based compute power, so we fit into a variety of different components there. >> So, Robert, we're at SAP. And SAP hasn't been traditionally known as a cloud-aware application. Tell us, from the NetApp perspective, what's changed with SAP over the years that now, you can comfortably talk about SAP as a cloud-aware application? >> So SAP's moving a long way in that direction. You saw it this morning in the keynote that they were talking about the C4, their customer-focused applications. That's really kind of putting a framework on top of all of the customer engagements, and making the customer the center of everything. So they're moving a lot in that direction. We at NetApp have implemented their Hybris platform, their cloud for customer application. We just went live with that last year, so we're on that journey with SAP as well. >> So, as we talk about that, what makes the application, or what make applications in general cloud-aware? >> Okay, when you look at making something cloud-aware, you want to really look at the architecture that you have underneath it. So you'll build something that has a lot more automation in it, a lot more scalable, where you don't have to, the scalability's built into the framework, like you're leveraging. In the case of our NetApp support site, which we just completely re-architected and went live last month, we have built that on what's called a MEAN stack, so that's where the Mongo database and the back-end that's a NoSQL database, and then on top of an Angular node.js, which gives you much more robust framework for you to be able to scale-out your application. So with it being a website, and your volume can go up and down, so you want to be able to scale the application without needing people to get involved in that scaling, so they will just fire up new containers as needed as the volume increases, and it's a lot more robust in architecture. >> So if we look at Hybris and we look at NetApp products and solutions, that framework and architecture. Can you paint a picture for us what NetApp solutions and products are cloud-aware? >> Sure, the cloud-aware applications, really you need to look at the complete stack of the Next-Generation Data Center, which is really embodying the on-prem data center, your hyperscaler cloud data centers, and then a private cloud if you so wish to build one. So the Next-Generation Data Center takes advantage of the All FAS Flash on your on-prem solution, so you've got your performance, high-performance scalability. Then your Cloud Volumes allows you to move your data between your on-prem out to the hyperscaler as you need to, and the HCI component gives you that container-based compute array that allows the applications to scale. Also, you can leverage StorageGRID, which is much more of an object-based data base, which is something that you'll use extensively on cloud-aware applications. >> So, thanks Keith. So one of the things that was announced this morning, you mentioned C/4HANA where Bill McDermott was sort-of expected to announce what SAP was going to be doing that's gonna help differentiate them. They want more share from Salesforce and Oracle. He made kind of some aloof references to that, but one of the things that he talked about was: companies need, in this day and age, speed obviously, but to move away from a 360-degree view of sales automation to an actual 360-degree view of the customer. I'd love to get your insight on NetApp and SAP as partners together. Are you seeing any particular industries leading here? We think of manufacturing, maybe automotive oil and gas, but I'm just wondering from NetApp's perspective, are you seeing any industries that are really leading-edge here in evolving to a Next-Gen Data Center that enables this 360-degree view? >> There's a variety of different industries that are doing that. If you take a look at applications like Netflix and Amazon Prime, those applications are architectured to be scalable and to be much more robust, and they are much more focused on the customer. And because you don't have outages, right? They don't take the system offline when they're doing an upgrade to their capabilities. When was the last time you heard of Netflix going offline for twelve hours to do an upgrade? So, these applications are built much more robustly around that, and that's what one thing that we are looking to do at NetApp with the Hybris implementation that we did with SAP, and we're also upgrading our back office CRM system to their CRM on HANA on-prem, and we're gonna be taking advantage of the Hybris capabilities there to give that full picture of the customer. We'll be heavily engaged with SAP on their C4 journey and making sure that we are a part of that as well. >> So it's great that you brought up Netflix as an example that continues to be operating an environment that has this huge back-end automated with technology. SAP traditionally hasn't been considered a technology that you could upgrade on the fly. I've managed an SAP environment where we can only take twelve hours of downtime a year because mission critical, it's very difficult to get that time. >> Yes. >> How has the NetApp data fabric story played into making that a possibility in your own environment and customers' environments? >> Okay, we leverage a lot of the NetApp storage on our on-prem system. I'm in the exact place, same situation as you were talking about. We have a lot of mission critical customers that are on our support application. I have to give 90-days notice to take the system down for any longer than four hours at a time, so I'm in that very similar situation. So we leverage a lot of the NetApp technologies to make sure that the applications are available when I'm doing the upgrades, and we can do rapid copies of the data that's in there, make sure it's all robust. Our data, failover database, failover systems, are set up that way so that they take advantage of the snapshots that we got from the application, and we're working with SAP. The SAP Hybris application is actually built on top of NetApp storage, and we're working very closely with SAP to re-architect our applications, to take advantage of the capabilities that NetApp storage brings to the equation. >> So none of this coming into its own in this hybrid cloud model that's been around 26 years, right, long time. But now, it's everything you see. You mentioned Netflix, and I don't know anybody on the planet that would survive if Netflix went down for an hour, let alone twelve. So speed, access to data, but this evolution of NetApp, I'm interested, and you know now again in this hybrid cloud model, you guys made your name from building network attached to storage on-prem data centers, the announcement with Google Platform just last week. Talk to us about some of the evolution from NetApp, from your perspective, from the storage perspective, into really facilitating this hybrid cloud model. >> Sure, we are really at the forefront of that because at the end of the day, it's all about the data. Right, your application can run wherever you want, but wherever your data is is really the key. And that's the framework that we're putting in place is to make your data a lot more mobile. So if you want to keep the data on-premise, then you can keep it on-premise. If you want to move it out next to the hyperscaler, you can burst it out, you can use the Cloud Volumes and migrate the data. So the NetApp picture, the story is really in making your data much more mobile and moving it to the location of choice for any particular workload that you're looking for. >> So, we can't have a discussion in 2018 about data without talking about privacy and security. What's the relationship in ensuring that NetApp and SAP is one, media requirements in GDPR, we have to talk about GDPR, we have to talk about security. How is NetApp securing data and ensuring that in-users' and organizations' data stay private? >> That's a very good question, right? It's definitely a challenge that a lot of companies are struggling with, and the tools that NetApp provides with our storage systems are paramount, security is paramount, and that's something that we're very much focused on in making sure that your data is your data, and the specific components of the data that you want to keep on-premise, which you want to keep as much more secure, then you can keep that on the NetApp All FAS Flash storage systems, and then you protect it as if it's in your own kingdom. But then the data that's a little bit more lax on the security sites, then you can push that out onto the hyperscalers and use the NetApp Cloud Volumes to have it outside of your on-premise. You know, it's like your own firewall. >> So one of the basic things as a ONTAP customer that ONTAP customers depend on and the private data centers, this ability to encrypt data on the fly. Now that we look at, you know we see ONTAP in the cloud, do we get that same basic capability to encrypt data on the fly or encrypt data while it's in transit? How do I know my data is protected from an encryption perspective? >> You get the same capabilities when you're using the on-cloud tools that we provide, so there's no real difference in that, and that's the beauty behind that. You're using the same storage management tools for your Cloud Volumes as you would be for your on-premise systems. >> I want to ask a question on competition. There's a lot of co-opetition that's going on just at SAPPHIRE alone. With what you talked about about how NetApp is leveraging Hybris, you mentioned, to really kind of get towards that model of connecting supply chain with demand, getting that full view of customers, SAP partners with probably all of your competitors. So how is what NetApp is doing internally to digitally transform, how do you see it as giving NetApp that competitive edge against the other guys? >> Okay, the way that we look at our competitive edge at NetApp from an application standpoint is really focusing on keeping our core capabilities very, very vanilla. So in the implementation with Hybris, we were very much focused on not customizing the application. But because at the end of the day, you sell stuff, you build stuff, you manufacture it, and you support it. So those are the core capabilities, and we've kept that very vanilla as much as possible within the implementation. Where we differentiate, that's where we customize. So our application landscape is much more focused on customizing for the differentiating capabilities, and that's the component that's specific to NetApp and how we do business. And that's the way that we go about differentiating ourselves from our competitors. So we use the core capabilities of all the enterprise applications that we have, that we purchase such as Hybris, and then we go build our custom solutions that are differentiated, that really searches our ASUP, AutoSupport system, that gets what's embedded right from day one, that's a custom-built application, it's very proprietary, it's really the keys to the kingdom for our organization. And that's something that's very, very integral as part of the NetApp culture. >> So, let's talk about some lessons learned from that. One of the pain points for many SAP customers is they look at capability like ECC on HANA, really want it, but they've customized their environment too much, so making that switch is extremely difficult for them. What have you learned as a team that says, you know what, the best way to stay in line with SAP and follow that roadmap for mission critical applications that are both stable and differentiating, you should follow these basic policies from a hygiene perspective. >> Sure, we actually went through that last year with our project where we replaced our Sales Force Automation system, and we implemented C4, C4C Hybris. So the key to that is really getting the executive sponsorship bought-in to making sure that you're adhering to the vanilla applications and not customizing it. So we were very fortunate where we had Henri Richard and Bill Miller, our CIO. They were the executive sponsors of the project, and they were adamant that we would not customize the application, and we went through, it took us six months to replace our CRM system for an office CRM system. Very proud of that project. It was an incredible painful journey to go through, but the benefits that we got out of the end of it are phenomenal because we were in that situation where we had an overly-custom SAS application that was running our sales organization that really wasn't meeting the needs of the business. Now we have a much more agile implementation that's on top of SAP's Hybris platform, and we're taking advantage of the new capabilities they introduce, rather than focusing on our own customizations. >> That's a great summary. I think you articulated very well what, one of the themes was from Bill McDermott's keynote this morning, is making things simple, is not an easy thing to do, but it's critical. There are so many-- >> It's totally critical. >> business outcomes that come out of that, not just stream-learning processes, improving sales and marketing and connecting them together, but really affecting revenue, profit, share, et cetera. So Robert, thanks so much for stopping by theCUBE and chatting with Keith and me today about what you guys are doing with SAP. >> Great, thank you, thank you for your time. >> We want to thank you. You're watching theCUBE: Lisa Martin with Keith Townsend from SAP SAPPHIRE 2018, thanks for watching! (light percussive music)