(futuristic electronic music) >> Live from London, England, it's theCUBE covering .Next Conference Europe 2018. Brought to you buy Nutanix. >> Welcome back to Nutanix .Next 2018 in beautiful London, England. I'm Stu Miniman, my co-host Joep Piscaer, and happy to welcome back to the program, third time guest, I believe, Chris Hallenbeck, who's the senior vice president of database and data management with SAP. Fresh off the keynote stage this morning. Were you were with CEO Dheeraj Panday? >> I was, a great time. >> So, SAP, things are going well. I see SAP at lots of shows. You've been on our program at a few different ones. You are based here in Europe now, you're from the US. Chris, introduce us a little bit. Give us some of the summary of what brings you specifically to the event. >> Well, I mean, several things. So, my responsibility is looking after data platform. And what we're doing from a strategy perspective, what we're doing, what applications we're building on that in the cloud, what we're doing, everyone asks what are you doing with HANA? What are you doing with Data Hub? And so that's the core of what I spend time on. But equally I think you need to step back and look at SAP's business 'cause we're also, we're our own OEM, right? HANA's what makes S4 possible. HANA's what powers all of our cloud applications. We're going to announce now that everyone one of those, everyone of the acquired companies now runs on HANA and not on any other database. And so you really see these three pillars of SAP. You talk about I've been with SAP seven years ago, and everyone said, why would you go there? Because there's this old applications company that seems to be getting, oh, and even Hasso Plattner, our founder, was saying that was true. Came out with HANA, that we quickly streamed up. Passed Teradata, become the number four database company in the world. Still growing phenomenally. They used HANA as a method of rejuvenation for originally S4 and now that's gone to the cloud. And during that time, we were able to acquire all these cloud applications and build those, SuccessFactors, Ariba, and other stuff, and that's become a wildly successful business. >> Yeah, Chris, I wanted to step back for a second because you talk about data products. >> Yeah. >> You know, I've watched databases for my entire career. I've watched the huge growth of the importance of data. Especially the last few years. You know, we went through that big data wave, which was kind of middle end success, but everything today, data is the center of it all. You know database is where a lot of data live, but how am I getting, and how are customer getting more advantage out of their data when they are using your products? >> It's a great question. So, one is it continues to be the fact that now, people now have realtime access to that information. And it continues to actually be the biggest driver, to be honest. The other one where we see HANA getting picked, especially, is when you have tens or even hundreds of data feeds coming in simultaneously. Frequently, some are streaming, some are traditionally relational, coming from all different systems, and people then want to do analytics on that. But when we talk about analytics, I don't just mean a BI tool, although you could, but now we're doing predictive on that. And, in fact, and then figuring out how does a data scientist then go through, do machine learning, build a model, deploy for scoring, from a full lifecycle perspective. And that's where HANA's getting used tremendously, is in these analytic systems, and data warehousing, and in particularly people going, I want a realtime data warehouse. The other one where we see it being a lot more is in applications where HANA originally was only for SAP applications. We got a huge amount of work on that to make it work for OEM, ISVs, to port their applications over. And you've been seeing that continuously. I think there's some phenomenal work we've done with Esri. HANA's now the fastest geospatial database in the world. And Esri has about 80% of the geospatial market. Now prefers and runs on HANA. So that's been huge. So customers are beginning to use it in more areas. Not just SAP customers, or the CIO who ran the SAP systems, we're getting used a lot by the chief data officer's division. We're getting used out by other groups. We're getting used by specialty firms doing things like geospatial, doing text analytics. And so it's been kind of exciting. I don't know if I answered your question, by the way, but-- >> No, I think that was really good. >> So that sounds like you positioned yourself to enable customers to make the most out of the cloud, make the most out of data, make the most out of IoT. But I'm curious, how are helping customers succeed in that digital transformation? >> Yeah, well, with the digital transformation, and the way I always look at digital transformation, well, it's like big data, what does it mean, right? But what you see the patterns are is people are trying to remove layers between them and the actual consumer or the product. And if I can take those layers out, now you have people like Netflix who went all the way from just saying, let's make it easier to get a DVD, but now they are the movie studio directly to the consumer. They got rid of the 18-year-old kid at the video store, they got rid of everything through streaming. They went out on the, business. They took out all these layers and got closer. Whether it's Airbnb and all these pure plays, that's exactly, they've reduced the number of layers. Our existing customers are trying to do the same thing. They're saying, how do I get closer? How do I understand them? That requires, like if I'm running machinery, IoT data will tell me exactly how they use my machinery. If I can then start to take a look at that, now they want to work with me in different ways. Customers dictate how they're going to work with me. That means if they want to come over the web one time, other time they want to phone, they should always be treated equally based on how important they are to me. Reducing layers. Equally, though, you always have to be worried about someone coming out of nowhere, the pure play that comes in with a brilliant idea in your division, and you can't let 'em just take you out. So what we're seeing is these traditional companies, not necessarily know what the digital transformation is, but saying, I've basically got to get fit. And I can't do that with a really complicated landscape. If my department says, oh, that's great, new business model? We got to have the accounting up and ready in three years to compete with this new entrant. It's not going to work. Yet you upgrade your systems, and let's say SAP is financials, somebody comes up with a new business model, that's a day change in the system. You want to reorganize, that's a few clicks in the system, and I have a new hierarchy. That used to be a two year process. And so we working in all different aspects. We can do the IoT, we can do the agile work, we can have the data science machine learning understand the customer, all the way back to the applications that are agile now as people upgrade to the S4 system. >> Alright, I want to bring us back to the Nutanix show here, Chris. >> We like Nutanix, let's help them here. >> That's great, let's talk about platforms out there. You have applications that they all want to get certified on. Your application certified on their platform, so it's always, okay, am I SAP certified? And, okay, Nutanix even went through some redesign in there file system to make sure that they run really well for HANA and we're real excited for the certification there. Talk a little bit about what goes into that. Is there joint efforts between the companies? Or is it just their going through and following the process that you've got to describe? >> While I was on stage with Dheeraj and this wasn't, although it's nice to say supported database, this was a year and half effort. In memory computing, people get in and go, okay, it's not just a big data cache, this is a fundamentally different way software runs. How data stored in memory uses caches. So Nutanix worked with us, back and forth, on we would have this happen. Now it was worth it to us. Our customers have been demanding simpler infrastructure. And these hyper-converged infrastructures are exactly that. And Nutanix being the leader, we wanted to be supportive. This is good for both of us. If our customers can have agility on both sides of the business, running traditional SAP applications, they've got to ramp up, they need to add 100,000 users at quarter end, they can do that with a Nutanix platform. Equally, they want to quickly bring up an agile data mark for project basis, click a button, have a new data mark in seven minutes like they did on stage. And maybe they don't even want to do that when they're on on-prem/cloud. They want to do that on AWS or somewhere, GCP, they can do that. Yet that's all controlled from a single interface running through Nutanix. So really, really good for both of us. >> SAP is partial with a lot of companies out there, so you have kind of a neutral view when it comes down to everything. I'm sure you have certain partners you work more with and less. But what are you hearing from your customers? How do they think of cloud today? And any more about the Nutanix connection along the way. >> Yeah, it's interesting 'cause talk about data density, the most valuable data a company has is sitting, you typically, if they're an SAP customer, it's in their SAP system. It's exactly who is my customer, what did they buy, what is their service, what is their bill of material? All that, it's very value dense. It's the huge amount of security governance. What we've actually been seeing is a lot of them, yes, we're moving those workloads to the cloud to save money, I've actually seen a fair number come back on-premise. 'Cause they're saying, look, I'm not getting rid of SAP for easily the next seven, but we have no plans. So then they're realizing, I can run this on a private cloud infrastructure and actually save a ton of money. So they've been pulling back on prem, and we've been hearing that from all, the Forrester, and Gartner, and IDC are saying the same things. We have a lot of folks who don't want to go to the cloud with that core system yet, or they're saying, look, I got to save money and I think I'm going to the cloud, but I'm not ready. And so that's exactly where we see private cloud being really, really crucial, and then the ability to then push out and be ready to go to the cloud. Nutanix really is a good solution for that. And in particular, on-prem database right now, depends who you get your estimates on, is roughly growing at 5% to 8%, five year kay-ger. On-prem private cloud is forecasted to go up 26%. I mean, that is massive. Cloud's only 40 overall for databases. So you see it's a close second. So, huge, huge growth. What's declining is bare metal on-prem, it's gone. Everyone wants to run an either virtualized or fully hyper-converged infrastructure now, even on-prem. So we see people, like I said, staying on, getting ready to go to the cloud. A lot of people pushing workloads to the cloud, but even some repatriation. >> Alright, well, Chris Hallenbeck, really appreciate the updates. Thanks for everything and-- >> Well, thanks for having me. I always love speaking with you guys, thank you. >> Awesome, thanks so much. Joep Piscaer, I'm Stu Miniman, we'll be back with more programming from Nutanix .Next 2018, thanks for watching theCUBE. (futuristic buzzing) (futuristic electronic music)

(techno music) >> From Orlando, Florida, it's The Cube. Covering SAP Sapphire Now 2018. Brought to you by NetApp. >> Welcome to The Cube. I'm Lisa Martin with Keith Townsend and we are at SAP Sapphire Now 2018 in Orlando. This is a massive event. Not only are there 20,000 people here but there's about a million engaging with SAP this week online. Amazing! We're joined by a Cube alumni. Welcome back to The Cube >> Thank you Lisa. Chris Hallenbeck. You are the SVP of Database and Data Management at SAP. >> What they tell me. (laughter) >> That's what they tell you. That's what your cards say? >> It is. >> Alright. Well, thanks for coming onto The Cube. So this event is enormous. Sixteen American football fields is this space. You really can close your rings. >> Well, and it is, is the energy is just crazy. It's actually different than other years. I don't know why but it really it is. >> You know yesterday, that's what Keith and I were saying yesterday. Bill McDermott really kicked things off with such enthusiasm and genuine energy. It was really amazing to see that. You don't see that with a lot of, see levels on day one. That energy was really palpable as was. >> Enterprise applications aren't that sexy huh? (crosstalk) >> Apparently they are. >> Well, apparently they are now. >> Who knew? >> Well, and that's the thing too. You guys wanting to be one of the top ten most valuable brands in the world. Up there with Apple, Google. And one of the cool things I saw yesterday on a bus out here was ERP that you can talk to and hear from. So taking this, what was an invisible product and making it now something that people can engage with like a digital assistant at home. Remarkable. >> Well, yeah. No. The user interface which has been a huge, huge thing. We have these massive UX labs throughout the world. We have ones in Palo Alto. We have ones throughout Germany and other locations. And we've been really looking at how people engage with the software. And it's not only through a screen although that's it and we win all these Red Dot awards, the Preeminent Design Award. We get those consistently now, many a year, for the work we're doing within UI which is fabulous work. But we're also again, a lot of people aren't in front of computers anymore. So how can I actually just speak into my phone and get all the information I need? How can I have the device speak to me? How can somebody wearing gloves on an assembly line, automatically they vibrate if they're reaching for the wrong bin and would have grabbed the wrong part which create a faulty defective product. So it's all built in, our actually shoes vibrating if something else happens. And so actually this interaction of sensors in two way, taking IOT data in, and then also feeding it back into signals but that's part of the interface of the software. It's not always sitting in a screen and if you are in front of a screen, they're actually pretty great to use. >> So speaking of these consumer technologies, we've had this expectation and these technologies have changed the expectations of what our business tech is. We expect to be able to do things such as, hey, say what's the latest score from last night's game. And now there's these intelligent streams of having conversations with computers. All that is powered by the data on the backend. SAP traditionally hadn't been. We talked about it on stage this morning. SAP hadn't been known for the type of company to sub at to the real-time data entry, real-time data analytics. >> Yeah. You're all about data management. We heard something on the stage this morning. What was it? Data management suite? (crosstalk) The mature database now. (crosstalk) What is that? What's that about? >> Well, now what we're finding, you know, HANA enabled these incredible use cases and originally we were all, we actually didn't run underneath SAP applications an entire database but really a data platform that people were doing these incredible innovations on. And then of course it really started to get swept underneath and it went under BW and then it became part of Sweden HANA and everyone just focused said, oh yeah, HANA is just gonna be like Netweaver. It's just a system that runs underneath SAP and we kept saying no, it's not, no, it's not. And it was sort of but that was its main, that was where it was mostly getting deployed. And then what you're actually seeing here at Sapphire is this massive breakout of technology in full use use cases. That people are using it outside even non-SAP customers are using it to solve their individual problems. Really going after that huge, that 80% of data which is non-SAP but the challenge there with is how do you handle that? Data is now sitting out in all these different clouds. HANA was known for orchestrating data but it was really designed to do it on premise because we knew not everyone's gonna put data into our system. We came in late, right. And yeah we're the fastest growing but data was sitting in Oracle, and the TIZA and that's coming up and going into data lakes, running on ADO and we could orchestrate and move that data into HANA or do it in place. Go to the cloud, it's totally different. Average customer and CIOs are telling you they have six to eight clouds and you're like, wait, how did you get to six to eight? And you're like, yeah, they've got data in storage just in Azure, in AWS, and in Google but they've also got in all these different cloud applications and a lot are from SAP but a lot aren't and yet and so companies are telling us we've lost the view of who our customer is. We've lost view of our business. Which is the opposite of what you would have expect from this data explosion and, you know, digital transformation which was like showed up and disappeared in like two years but so how do you handle that? If I have data. So much data sitting out there. IOT data in the edge, love file data sitting in object stores, I've got data in different applications, data still on Fram. How can I actually possibly move that? You can't. There's no way to put it all together in one cloud. Everyone says, oh, bring it to my cloud. It's not viable. >> Right. So how do I actually push compute, get the data I need, refine it in place, and orchestrate and move that together with the ultimate security in governance? Which is what our customers are wanting. They're saying, how Chris for our non-SAP data and SAP, can I move data for application integration? How do I do analytics? How can I pre-press data and load it into a data lake, into a data warehouse and then I'll come back and do some other cool stuff on it with data science? And that's all about by combining HANA and data hub together in a suite with deep integrations, technically from a data center readiness it's all as a service runs in the cloud but because we're SAP it's also on Prem enabled if you still want to run it that way. And it allows you to solve these huge data problems and we also help you. We bring SAPs intellectual property of data models to this so you can use things like Enterprise Architecture designer and say look we don't have a model of customer. I'm like, well yeah, what kind of industry are you in? Okay, I've got a high tech customer model pre-built for you so then you don't have to build that from scratch. We bring the things to you. So now you can get very, very quick value right from the implementation within weeks. >> And that speed is obviously essential. >> Well, how does it. (crosstalk) >> HANA's a terror, which it's known for. >> But you're right, sorry Keith, you're right that in the consumer world because we have access to everything everywhere from so many devices, we as business people expect the same thing. >> Yeah. And so that speed is critical. You talk about, you know, multiple clouds, data in so many different sources. It's not valuable unless you can actually harness it and extract insights that may only be viable for a quarter or something like that. >> But nobody even knows where the data is and so you look at like we're about to, we were talking about HANA. I just came back and we're coming out a little bit later the year with HANA data hub 2.3 which is part of HANA data management suite and that actually has a whole metadata repository. So someone who knows what they're doing goes in and maps out where all this data is located and actually they don't have to do it all themselves, it's got heuristic-al and semantic search to automatically map and categorize data. I can then map that back to like my definition of customer or supplier and other things. Now everyone doing all the analytics and doing exactly what you're talking about Keith where can I just say into my phone, hey, someone in board meeting goes hey what were our results within two peak last year over this year and show and break that down by city and have it just pop up. Just like you say to somebody, hey high school football game, didn't those two play together? Anyone can do that on a mobile device but we don't know the data in our own company. How do you do that? And then let HANA data management suite will automatically know where the data is, orchestrate, go get it, pull it together, and deliver that back to a mobile device that you might have spoken into. >> Do you have a favorite customer that articulates just what you said? >> I do. I just actually walked out of a session. It was just and it sounds a little boring but it's incredible what people are doing. So I just walked out of a thing with the Swiss Federal Railways. Sounds boring but you know where. I live in Europe and everything is by rail, right? And so they're doing about 60 percent of the rail traffic there is passengers, 1.25 million passengers a day plus the balance of 40 percent of the trains are freight. They're having a huge problem because you use huge, it's all electrical and they're trying and so when you get up and it's growing rapidly. So they're, and they do their own power with power plants and when they go up with power plants, when they go over peak they have to spot by at just massive times a premium on that data on that. And we're actually doing this a lot of place out of rail but they also use electricity on heaters and other stuff in the cold winters and air conditioners. They're now streaming information off the trains, off of the points all the way along the signals and from all the power plants. They know peak usage. It automatically detects when they're going to go over and rather than going into the plants, it actually cuts the heaters off for a second here or there. There's heaters in all the switching equipment. They know how long they can do it. HANA managed this, this is automatically so it's IOT in but it's automatically making automated business decisions, shutting down systems programmatically, intelligently actually using machine learning and keeping it. So now what they do, so now they don't need to go out to the spot market in buy energy anymore. It has cut their electrical usage by a third. >> How much money have they saved? >> No, what's a third is how much money they've saved. The electricity is still high but they're not buying that really, really >> The premium. expensive premium and so you're streaming data, it's all over, it's all happening in real time, and it's automatically kicking out business processes without human intervention. And then it's a platform for them where they're adding all this new capability to save in other ways and so it's just, you know, simple but clean really good use. Good for the planet. It's great for the customers. And now they have, and by the way, when you hit those peaks, that's when they short-out systems and that's when trains stall out. So actually you're getting better servicing of the trains. So, yeah, it's good storage. >> So edge core cloud, great breakdown of kind of the use case. The data is being collected at the edge. Data may not even be collected in a SAP system? (crosstalk) We're doing great! >> It's reality. >> It is reality and one of the things that I think architecturally that enterprises have a hard time wrapping their head around, HANA in-memory database defeats latency when you're inside the database, when you're inside of the data center, however you were thinking about HANA data management. How does the in-memory database impact and data management impact data retrieved from the edge? Help explain the importance of metadata and willing down that data so that we can get it back to the cloud and process their important data. >> Keith, it's a great question. Sometimes, HANA is not, you know. Although we like to go it's a hammer and we think everything's a nail but sometimes you don't which is why we have data hub. And it has unique capabilities for doing something called data pipelines and movement. So we can actually do all the data transformation movement calling tensor flow in flight. We do this as the data is in movement so we're actually doing all of that processing as it's moving through. If you need extra horsepower and want to combine different data types and there's certain capabilities pipeline engines don't solve well. HANA is a service which HANA is now completely cloud native. They can actually bring up HANA in a few seconds. It will take the data flow in, compute it, it's not being used as database, it's a compute layer out at the edge, the data flows out to move on to the next step usually via a data pipeline from data hub and that service gets shut off. So you just pay from small compute when you need to bring out the big guns and then it moves on. And maybe that data never comes back into a HANA system, maybe it does, but you're using the technological underpinnings of in-memory computing in this way as just literally a flow through compute engine. >> And I think that's the disconnect a lot of organizations have because you associate s4 bases, BW, all these applications on top of the database. They don't think of HANA as something that you can spin up, spin down. >> But that's brand-new and that is what we just announced and went live last week. So HANA was, there's traditional on-prem system, bare-metal, it run virtualized but I mean talking about big arm running HANA systems. Now to actually have it, so HANA as a service came up. We rewrote the entire thing to make it completely cloud native and orchestrated. It's all containerized in elastic. It runs, it came up last week running an AWS and available also in GCP. Our target is a little bit later this year. I always have to use a safe harbor language. It'll be coming up on, it'll be coming up in Azure and after all the rest of SAPs data centers and then also coming out and in Asia through Huawei and coming up in those data centers as well as some others we have planned. And that's where you actually get this fully elastic HANA that's able to come up and come down automatically. >> So this massive transformation that you guys have achieved in 46 years, say 46 years young, 390,000 customers. >> Yeah. SAP didn't get to where it is without having a really robust symbiotic partner relationship ecosystem. We're here in the NetApp booth. There's a 150 partner sessions alone at Sapphire this week. Talk to us a little bit about how the partner ecosystem is helping you guys give customers the flexibility and the choice that they need. >> Yeah, no, and it is. SAP can't do everything. And so a lot of the aspects are that we look at in very different ways. Of course, some companies and the big corporations we deal with need strategic SIs, these strategic integrators to do consulting and other pieces and we work really closely with them on and they have specialized practices and other things on both HANA. They're extending out into the HANA data management suite. We do the same thing since we realize you need boutiques. We're the fastest geospatial engine in the world but that's a very niche piece although geospatials may be the hottest data type out there happening right now. Those are very specialized boutique firms. So we work with all of those and to help our customers when they need that. So we work with a lot of specialists. We work boutiques but we couldn't do this without hardware partners, with storages which is why we allow. There's still a lot of folks running on Prem. So we still have to have all these things so we have HANA tailor data center integration so you can certify your systems like NetApp. You can certify everything else on prem so you don't have to rebuy new hardware. Use what you have. I'm not trying to get you to buy a bunch of new appliances. And then the other one is a lot of is via and OEMs have started building out on HANA but now what they really want to do is go directly on HDMS as the cloud offering because it runs both in any cloud, which is a very unique differentiator that we run in every major cloud out there, as well as coming back and running on-premise. They can play their applications very risk-free with the extreme security and governance we're providing within that stack to build applications that they want to sell and use for enterprises. >> So you've been with SAP about six years you said and even Bill McDermott said in his keynote on day one, biggest Sapphire ever. You've seen a tremendous amount of growth. The momentum here is so palpable. The types of validation that SAP is getting through the voice of the customer, through partners like Netta, the different partner ecosystem. That validation is electric. >> Yeah. >> What excites you about everything that was just announced in the last couple of days about the rest of 2018? Where do you go from here? >> Oh my god! Okay, it's like asking me to pick my favorite child. (crosstalk) But, you know, honestly I get to. You get to see the innovations that I still enjoy. I love the full use use cases because I'm like a compute guy at heart but I see all the applications that we've done in these demonstrations. The fact that people have applications that are giving all of the analytics in line with the transactions on these gorgeous UIs. I mean you run these things on a mobile device that means the data layer has 20 milliseconds to actually not only grab the data but to do all the predictive analytics and everything you see to give you that nice two second screen to screen time on your mobile device and that's what we've worked for six years to enable. And now we're seeing that potential coming out at places like Swiss Rail. Just was talking with Gustav Rossi through the biggest cancer research labs and hospitals throughout all of Europe. They're doing all this genomic research, personalized medicine for cancer patients throughout Europe using HANA. I didn't even know about it, you know, or other ones we talked about beef farmers. Talking about smart farming throughout all the Netherlands. Reducing pesticide use, water usage dramatically down, and they increased yields by 10 percent. I mean and they're doing this on native HANA. So this area for me, the excitement of people and busting out of the SAP core traditional CIO market and moving into this 80% of data is to me exciting that people are seeing that HANA is not just an SAP appliance but it's really a general-purpose data platform for these innovation use cases. >> Helping customers change their business, change industries, save lives, pretty cool stuff. >> Yeah, I think so. >> Chris, thank you so much for stopping by The Cube and sharing with us your enthusiasm and your excitement for what you're doing at SAP. We appreciate it. >> Well, thank you very much. This was awesome. Thank you guys. >> We want to thank you for watching The Cube. Lisa Martin with Keith Townsend at SAP Sapphire 2018. Thanks for watching! (techno music)