>> Voiceover: Live from Orlando Florida it's TheCUBE covering SAPPHIRE NOW. Headlines sponsored by SAP-100 cloud the leader in platform as a service with support from Consulate the cloud internet company. Now here are your hosts John Furrier and Peter Mars. >> Peter: Okay, welcome back everyone. We are here live in Orlando Florida for SAP SAPPHIRE NOW SiliconANGLE Medias flexure program TheCUBE where we go out to events and extract the signal for the noise. I'm John Furrier the host and my co-host Peter Burris head of research in SiliconANGLE Media general manager of Wikibon Research. Want to give a shout-out to our sponsors without them we would not be here SAP100 Cloud platform, Consul Inc, Capgemini, EMC thanks for your support and we got 4 over 40 videos go to siliconANGLE at youtube.com/siliconangle for all the videos. Our next guest is Bronwyn Hastings who is the senior vice-president of Global Strategic Service Partners global channels all the top in integrations. Welcome to TheCUBE. >> Bronwyn: Thank you, thanks for having me here today. >> So it's great to have the boss come on we've had a lot of the folks from your group come in certainly a lot of your partners. We've had Capgemini, we've had Accenture, we've had a bunch of folks come through EY, I think Deloitte and anyway Infosys came on too Deloitte was really the only one and PwC were the only ones I didn't see here. Now we'll get to them later but the message is clear. They have to focus on innovation. >> Bronwyn: Yes. >> Otherwise they are going to get put out of business 'cause right behind them warming up in the sidelines in the ecosystem is their replacement potentially. This is an interesting dynamic you got going on here you growing your future in the ecosystem putting the system integrators I wouldn't say on notice but like hey get busy. Great system model being and they are responding what's your thoughts on some of the feedback you've heard? >> Thank you. This is a really interesting question because I think there are two things happening one is that customers are asking for the innovation and asking us and the partners what's the way forward? They are hearing all this talk about digital they want to know how did this become more relevant to their customers in a quick and more dynamic way. And they are asking both of us that question. The first thing that we do with our partners in this instance is we look at where are the innovation areas one that make them different? How do they get chosen to actually add value to their customers? And these partnerships that you've mentioned actually do it in different ways some of them represent themselves or talk to the customer through business transformations so they talk about what are you trying to achieve? Where is your future? You know the normal business conversation to find out how that innovation can happen and what do they need to be relevant to the customer? The other partners have a look at it and say how do I be part of this world that's changing but then bring quick value to the customer? How do I accelerate that value in quicker chance? And therefore the customer gets what they need in quicker time frames and then others say I'm going to look at this innovation and what's going to really set me apart as a specialist and that's where I'm going to go. So these partners right now are looking at where is their place in this and how do they transform themselves to actually bring value to the customer. And luckily for us we have a lot of those innovation areas that they can make those choices so they can choose >> John: They pick their swim lanes? >> Bronwyn: Swim lanes, focus areas. >> Differentiation. >> Differentiation all of that to be part of the new conversation as well. >> Peter: But what are the duties of the platform strategy that you guys are putting forward? And the ease with which using things like the Apple partnership that you have of creating new great software is you've a lot of this partners buy competition and buying these different alternatives are going to be forced to really focus on the value and their distinction that they need to provide to customers. It's going to be very interesting over the next few years to see these companies that have historically for you know long-term lock-in like relationships have to themselves become real nimble and become really catalyst to thought leaders for renovation of the marketplace because so much of the enabling technology is going to make it more or easier and more likely of bringing success. Do you agree with that? >> I find your comments very interesting actually so where I agree totally is that but I'd a piece. We look at it as though people have competition here actually a number of these companies already have practices or developments or innovations using some of the technology components. We announced Apple, there is a Microsoft announcement all of these areas that you would not normally see all of a sudden we've made these announcements and now that we're with these partners same partners that we've worked with for a long time come to us and say well actually we've got an area that develops an iOS for Apple already because our customers needed us to do that. Then we come to another area and they say but you brought out a new user experience through Fiori so we've got those development tools. And now if you bring out something like your 100 Cloud platform which allows us to build extensibility and these three things together start to actually build even stronger innovation so it's actually had a magnifying effect >> John: Exactly. >> Even for us you know we. >> John: Because you've already had those practices that were not being tapped into so to speak. >> Bronwyn: Not tapped into not brought in and integrated in the same way. But now because we're doing co-development we are doing co-innovation or integration processes actually it strengthens their capability to use the innovation and make it something even more. For me you can hear my passion in this one >> John: I guess. >> For me the excitement in this is that people really now see ways of innovating further and customers see that as valuable because they're getting what they want out of these innovations as well. >> John: Well that you mentioned the co-innovation I want to talk about that. That seems to be an SAP playbook even going back to the seven years that you started covering SAPPHIRE there has always been geeky developer focus which is a good thing we like that. But now simplicity is the theme once you have results but co-development's been a big part of it we were talking with EY for instance and they have a co-development on a lab being put down in I think Atlanta area. They have Accenture's got a zillion data scientists so you start to see this they are romping up they are not just about delivery any more. >> Bronwyn: No. No. >> The old way was delivery back in the contract. >> Yeah. >> Where is the value in your mind for these partners? Is it the co-innovation? Is it the data science? All the above? Is there one thing that pops out at you that you see rising to the top in the terms of trending? >> I would say there are two or three things well to one is we've got a large install base and all of the move that we've got to the newer generations are the S4100 environments. These partners actually have strengths of their own which they have been known for. E&Y has their strength that they're known for in the market with or without us they have got a strength. What these things are allowing them to do is to take some of that shift into the newer technologies and their strength and then build extensible innovation. And what I mean by that is they can say okay I'm strong in finance so I'm going to choose a finance topic on the 100 club platform environment and I'm going to build my differentiation on that. >> John: Their domain expertise map right into it >> Their demand expertise right into it squarely into it really create a compelling thing for them creates the value for the customer and it really establishes this innovation so that would be one point. You come back to the data scientists then you take it a step further you've got your differentiation. Now where else can you excel in? Where else can you bring the things that would make fun ends completely different? Like the digital boardroom that you're seeing that is being created while it's through predictable analytics it's through data scientists type of things so they add in these other services now that still play to some of their core strengths. I'm finding that it's actually creating the next platform for their own differentiation and value and it can incorporate these insights into it. >> John: Yes as you're saying it brings the swim lanes concept the differentiation so I got to thaw up on that and because Peter brought the question earlier today about when you brought up the question around partners working together. >> Peter: Yeah. >> So this comes back down to a lot of (mumbles) >> Peter: By the way for anybody who is wondering thunder and rain opportunity is raining everywhere. >> John: The cloud is raining opportunities the thunder the clouds are moving over us it's an (mumbles) >> Peter: The cloud is here >> (mumbles) Okay so back to this point. I differentiate it here once it has been the greatest has been the greater but also on these bigger projects you might have to work with the other guy. >> Bronwyn: That's correct. >> So how is that playing out 'cause they have to share obviously data might be shared but how is that playing out for them where do you see that trend going obviously probably more of that not less of it. >> Bronwyn: Yeah so what I'm finding is people are also choosing the type of work they want to do and then leveraging the ecosystem for the other types of work they want to do so people rather say you know I choose to do transformational type of things but if I am taking the lead on something I'm going to be able to partner with other partners in this ecosystem that complement me. I actually think it is complementing or if there is a specialist area they can bring someone else in so I actually think the complementary nature of things are getting stronger in some areas. Of course they still stand alone business that they do as well. Second thing I'd say is and I'll add this in because it's not only about the partnerships it's about how do we work with the partnerships and you would have heard some of our announcements around SAP S4 value assurance programs. And what that means is the customers are saying we want skin in the game from SAP too the partners are saying actually this is valuable to us too that you've got your stamp of approval on what's going on so we've created these service offerings that are module arised that partners can include and it's anything from just check my scope is right or the journey that we're going on and our transformation the mapping is correct through to more custom services and then it also including that in their offering as complementary so that customers feel comfortable with where they're going as well so that's all coming together as well. >> Peter: I want to clear out something around here because we are research's very strong sponsors we talk about the three Cs of digital transformation. Context. What are you going to do? >> Bronwyn: Yep. >> Community, who are you going to do it with? >> Bronwyn: With. Yep. >> Capabilities. How are you going to get the capabilities so that you do what you are going to do with who you are going to do it with better than everybody else every time? Does that resonate? >> Bronwyn: Absolutely! Absolutely! For me it's a content context all of those sorts of things. The customers are asking and you would have heard it around here. I want to be here how do I get there what's the time frame and who's capable of doing it actually? The partner community is really well enabled but they also know that this is a journey of new technology areas, shifts in the market. >> Peter: New processes. >> New processes so trying to simplify digital processes to really get the true value of digital so they want people to say we are in. And these are the ways that these things happen and you can solidify it together as well. >> John: And the keywords are that they are enabled. >> Enabled. >> That's there because the platform has to be enabling. >> Enabling. >> Otherwise it doesn't work. And then the tools and the tooling has to kind of got to be there. Is there a process out there and this is what we talked about Peter brought this up yesterday it was a really great observation. In old days look backwards known processes unknown technologies and then they evolve and you automate those processes you have known and now you have unknown processes developing with known technology. >> Yes. >> What are some of those new unknowns is IoT a good example? Or if you ask what other process is there? >> Peter: (mumbles) just unlimited things that we could be doing. >> Things that are like not fully like known that's going to happen but like you can't say that (mumbles) is a clear process for every customer it might be different. >> Bronwyn: I actually think the way that I would answer that and sort of look at that topic is as the transformation to digital is happening I'm almost seeing that all the customers are testing the processes. It's not like everything's a stable process any more they are saying what processes 'cause if you just replicate what was there before you're not getting any gain. You could have the most beautiful fore intent and all these processes remain the same and nothing's actually changed except the user experience. Or you can change all the processes but the user experience doesn't change so these two things are coming together and the process has to be re-looked at. >> Peter: But the customer is becoming part of that process story. >> Process. Absolutely. >> And that's the thing that's most unknown. >> Absolutely. >> And so how customers go about catalyzing those processes through those beautiful user experiences is really what we want to do when we think about engaging customers in a security way. >> Correct. And that's the way really the services piece comes back into play. It's really testing what do you still need or can we make this a much more streamlined simpler process that gives you all the benefits the cost benefits, the user experience which one of those do we want to do? I can say this is where the services that the partners really bring knowledge experience as well into the same equation. >> John: Bronwyn Hastings SVP at Global Services and the third part is final point I'll give you the final word on our wrap up here day three of SAPPHIRE. Take a minute to explain to the folks out there what's going on for SAP with respect to all these system integrators what's your plans, what's the focus, what's the dynamics. >> I think the three areas that we focus on within is digital transformation and the ability for us to bring digital to the customer. Why I take that approach first is this is a transformation time that the market's changing and the customers need that guidance into that process so one is digital transformation. And depending on all of that is that we are asking for the innovation that we've spoken a lot about here is innovating to the future not creating what's gone by not replicating but innovating the new digital world with us and part of that is simplification for the customers. Our work with the system integrators right now is focus on the customer, bring value and it's innovate together that's what we do. >> John: Well, thanks so much for your time and welcome to being a CUBE alumni. >> Thank you. >> Here on SiliconANGLE Media as a CUBE. We are live in Atlanta for day three three days of wall to wall coverage. Thanks for watching that you are watching theCUBE.