>> Voiceover: Live from Orlando, Florida, it's theCube, covering Sapphire Now. Headline sponsored by SAP HANA Cloud, the leader in platform-as-a-service, with support from Consul, Inc, the Cloud internet company. Now here are your hosts, John Furrier and Peter Burris. >> Everyone, we are live in Orlando, Florida for a special presentation of theCube at SAP Sapphire Now's theCube SiliconANGLE's flagship program. We go out to the events and extract the signal from noise. I'm John Furrier, with my co-host Peter Burris Want to give a shout out to our sponsors. Without them, we would not be here. SAP HANA Cloud Platform Console Inc, Capgemini and EMC, thanks for your support, really excited to be here. Wall-to-wall coverage, three days. Over forty videos going to be hitting YouTube: SiliconANGLE.com/youtube. Our next guest is Dan Lahl, VP of SAP HANA Cloud Platform Product Marketing, welcome to theCube, thanks for having us. >> Thank you, John. You got all that out without a stumble. That was fantastic. >> I memorize it. >> That's great. >> Without our sponsors, we wouldn't be here, thank you very much. Thanks to you, and it's a been great support from you and your team. Really appreciate it, welcome to theCube. >> Love being here. You guys have something very unique in how you bring a play-by-play but from an analyst's perspective, very, very unique. >> Someone called me Pat Summerall, and Peter, John Madden yesterday, which was a great compliment because our lives are ESPN of tech. >> And I like it because it means I'm the better looking one. >> Exactly. >> NFL Gameday, but the game is on. >> Peter: Who's a guy? >> John: Boom! (laughs) >> Boom the Cloud is here! >> It's the whiteboard. But all seriously, great conversation. One of the things that's emerging out of the whole HANA Cloud Platform Ecosystem play is that it's really buzzing, and it's not like sizzle, but it's steak on the grill as well. So, just a lot of meat on the bone and the thing that we're seeing is that SAP has been putting themselves out there with tech. And not trying to do the land grab, not saying, hey, we're SAP and this is all a marketing program to get more SAP share for our other stuff. There's clear separation between SAP stuff, whether it's, whatever the customers are buying, and then an open way for developers; both SAP developers and, now, mainstream developers, iOS and Apple so, huge shift. And the Ecosystem's super excited, so I got to ask you, how do you guys separate out the market? Explain to the folks out there how this all fits in because the HANA Cloud platform is more open, it's really non-SAP, in a way. And there's other clouds out there, and let's face it, you guys weren't getting the buzz. A little bit late to the party, and you've got the product in good position right now. But you got Amazon out there, as your Microsoft was here, you know, doing relationship with you, your partnering with Apple, IBM was on, Cisco, all the big guys are here working with you. Separate out what it means. >> So let me back up, let me back up and give you all the HANA buzzwords, we've been very confusing to the market on how we brand it to different HANA products. There's the HANA database, data managing platform, we came out with that in 2011; very similar to Oracle from SQL Interface standpoint, very different from a technology standpoint. All in memory, and everybody knows that by now. Then, we have another initiative called S/4HANA. That's taking all of the applications, putting them onto the HANA data management platform. So that's the app stack. So business suite is now S/4HANA. So data management was HANA, S/4HANA, app stack. Then we have something called the HANA Enterprise Cloud, and that's just basically a managed service. You want to take your landscape, give it to our data center, let us manage for you. >> For SAP stuff? >> SAP stuff. Yeah, not any of the red stuff or anybody else's apps but >> But some of the partner extensions? >> But some of the partner extensions, yes. And that has to be certified, but basically it's a managed service. So you want to give your data center over to SAP? Guarantee that it will run, we'll upgrade all of the apps and enhancement packs and that kind of thing. So that's HANA Enterprise Cloud. And then finally, HANA Cloud Platform is something different altogether. It really is our offer, open platform as a service. So, any of the applications that SAP is shipping today, whether that be business suite, S/4HANA, Success Factors, Ariba, Concur, Cloud for Customer, you name it, can be extended or integrated using HANA Cloud Platform. Okay, so HANA data management, HEC, the managed service, S/4HANA, the new app stack, HCP, really the extension platform for that SAP Ecosystem. Okay? Now I say that, it's an open platform. It's Java-based, can you believe it? It's not ABAP-based, it's Java-based. Node.js, all open systems. We announced at the show that we're shipping Cloud Foundry with Node.js runtimes scripting languages like Ruby and Python and PHP and Go. Databases like Mongo and Postgres and Redis, it's open systems, baby, right? >> All the tools that they are offering. >> Exactly, they can do that. Yeah. So, any programmer under 30, we can now approach and have a conversation with. They don't have to learn a German programming language, right? Now, whether it's good or bad, it doesn't make any difference, it's open systems, right? And so that's kind of the framework of what we announced. >> What's that mean to developers? Let's take that forward, okay, open cloud platform, okay, great, under 30, or, just open source is so good now all the Q&A, all the questions are on Stack Overflow and all these Node.js and technology out to be used, so that's what people want. Okay, what's the impact to me? I'm the developer. What does it mean? What's in it for me? Do I have access to all the SAP stuff? I'm used to dealing with all these different tools to put systems together. >> That's the beauty, John, is all of those tools that you use, as an open systems developer, you can now, through HANA Cloud Platform, get to the back end systems that we didn't expose before, expect through an ABAP stack. Right, you don't have to learn BAPIs, you don't have to learn ABAP. You can use your Java capabilities, using Eclipse if you want, if you want to do it on your desktop device, or use a web IDE that's Java-based, right? >> But you're exposing these through API? >> Exactly, exactly, through either APIs or through integration services, through a direct connect back to the back ends. And we not only expose data, but also processes as well, so you can take advantage of a process. One of the things we announced this week was the API Business Hub. So now, we're going to deliver a catalog of APIs, where we'll publish into and an open system developer can say Oh, what's with that management accounting services? That hooks back into S/4HANA, I just need to call the API and take advantage of those management accounting services. Very cool. >> So on the Apple relationship, which is an iOS-based thing, the developer can then go to the Enterprise customer, so this is the Ecosystem now, okay I'm a developer. I have a whitespace, I see some unique thing, a problem that my customer has, that I can solve, or I'm an entrepreneur and say Hey, you know, I have a unique idea, I want to solve that problem. I code it but I might rely on SAP data, say an ERP, I could tap that-- >> You can now tap it. >> John: And integrate it in seamlessly? >> Yes, and show it natively on an iOS device. That's what we're delivering through the ACP software development kit SDK. So you're an Apple developer today. Well, you could develop the next SnapChat or some consumer-to-consumer app. But interesting, the bulk of Apple devices or the bulk of devices in the Enterprise, are Apple devices. They're not Android devices. Apple's done some work on that, upwards of 75% are actually Apple devices. So now, you're a developer, you want to get access to all of those different applications that SAP has, delivered in beautiful 1990s master detail today. >> Let's face it, I mean, we had this comment on theCube which we concur with, the user experience of Enterprise software is dated, and old, and people are bringing their phones to work. >> That's really kind of you to say dated and old, okay? I would have said old and crappy, okay? >> No one wakes up and says, hey I can't wait to download my Enterprise app and use it on the weekend. It's like root canal, don't love it, but you need it. >> Part number 000743xp, okay so now they can get into all of those processes without having to know the back end process. Through the SDK, we're going to expose all of those. >> Share some data on some of the onboard. I know you had a lot of early adopters and now the program's ramping up. We've talked over the past year and you guys are tweaking the product. You want to make sure the product was solid, that was key. Might have been delayed a little bit, but the timing of the Apple announcement, perfect. But I can imagine that the developers are excited because certainly in the Ecosystem out there, in Silicon Valley and beyond, there's a softening, it's kind of a bubble bursting, if you will, on the consumer stuff, so there might not be a couple more unicorns. The few unicorns that come along at every cycle of innovation. But the Enterprise is hot, so the buzz on the street is the Enterprise is hot, that's where you make money. As everyone works for a revenue model, you got to break even, so, there's a big focus on that in the entrepreneurial ecosystem. So, is there an uptake that you can share or any stats on the kinds of new onboarding that you guys are doing. >> Yeah, so just this week, we also announced that IBM is taking all of their MobileFirsts for iOS applications. They're going to participate in the SDK and they're going to move all of their applications onto the HANA cloud platform. They had a beautiful UI that they built for a hundred little mobile apps that were enterprise ready, but not enterprise connected. So now they're going to connect all those hundred little apps like Find&Fix, and Parts Manager and that kind of thing. >> I can see the slogan now. Enterprise: Ready to Connect. >> Exactly. >> Connecting. >> It's pretty decent validation of some of the things we're talking about here. >> Exactly, and the HCP play in it, for SAP is that's the gearbox to get them back to all of the SAP apps. Whether they be On Premise business suite, On Premise S/4HANA, Workforce Management, with Success Factors and Fieldglass. It's the gearbox to get them back to all of those. >> So let me ask the question, you're in a private market so you've got your eye on the prize in the market, you're forward-facing, but also you've got to work with the product teams and deal with that. Do you see a window of opportunity right now? Because the timing of having the product ready with HANA Cloud Platform plus the Apple relationship and the IBM stuff, which is more validation, a window of opportunity, the wind is at your back. This window, you've got a short window to kind of go out and win. Are you worried about that? Are you guys investing heavily now, do you see now a time to throttle it up and pedal to medal, straight and narrow, 90 miles an hour? >> You know, I actually see it as the wave is forming. Okay, I don't think our customer base knows that much about HANA Cloud Platform, it really has its coming out party at TechWave, last October. It's now exposed to the business group. We had the techie outage, now its the business outing. I see the wave starting to form, okay? And we've got to catch the wave and we got to ride the crap out of it. And there's a lot of stuff on the product side we have to deliver. There's a lot more that we have to do for integrating into our existing systems. We have to provide more direct, not direct connections, we've already got that piece, but more integration with the processes. We're not all the way there yet. So we have to push our product, our product management and engineering teams to do that. And that's not always easy at a big company like SAP that has all these different divisions building processes. And then the other hard part is, you got to make sure our sales reps are introducing us into every single customer account as a gearbox, as the agility platform. So that's starting to happen. So I wouldn't even say we're on the wave yet. We're starting to catch the wave. >> So let me build on that. I have two questions. I don't want to say they're quick. But here's the first one, here's what our CIO clients are telling us. One of the advantages of everything you said, platform, a lot of entry points, means that their business can pick their own road map for how they go to S/4HANA, as opposed to having single one-way, and that's the only way in, that'll extend the adoption cycle. Do you see that being a positive thing ultimately for not only SAP, in getting this message, and getting this product out, but also all the partners and the Ecosystem to drive this whole thing forward? >> Let me answer the customer part of that first. The way we have set up S/4 and HCP, is S/4 is the core that you really don't want to touch that much, you don't want to customize that much, you don't want to extend, you do that in HCP. Why would you want to do that? Well, as we deliver new enhancement packs, and we're delivering every couple of quarters, on the S/4 platform. Every time you do a customization inside the app, when you have to upgrade, you have to do regression tests, you got to check to customizations against the new rev. It becomes, in technical terms, a hairball. It becomes a huge hairball. Take that off the plate, just do it on HANA Cloud Platform. And so that's the customer angle to it, the partner angle to it is very simple, and it's a win-win for partners and for us. They can, and for customers as well, they can build a little app on the platform, snap it into S/4, Success Factor, and make it look like an app that's part of our SAS application, okay? The customer doesn't have to provision anything. The customer takes a tile and puts it on their Success Factor application. We win, because they're consuming it on HCP, so we're monetizing that too. So the partner has an easy path, the customer gets something easy, we help monetize on that. >> It's a great story and a lot of folks are looking forward, so for example, some of our clients are telling us, We are looking at the S/4platform, the S/4HANA platform, we came to it through analytics. So here's an interesting question Dan, you've got a lot of background in database. So the old way of thinking about building a database application is you didn't want to write an application required more than 80, 90, 100 disk I/Os. >> Yeah. Now we're talking about in-memory databases, calmative organization, provide any number of different straight-forward, common interfaces from a few standpoints back to the application. We're talkin' about what used to be or the equivalent of tens of thousands, maybe even hundreds of thousands of I/Os. What does that mean to the types of applications that we're going to be able to build in the Ecosystem over the course of the next few years. >> So you're right in that all data's immediately available in-memory ready to go. But here's the cool thing that I think you were getting at. You can build a structure one time, you build a table structure one time. On top of that, you just build views, logical views. And then your queries or your application looks at the logical view. Now logical views aren't somethin' new. It was just horrible to do it on a disk-based databse. >> Yep, very digital. >> You have to do tons of optimizations. In a memory database, it doesn't matter. It's all there. You just look at the logical view. So we're going to see people stacking up more and more and more logical views. Specifically in the analytics case, we see that all the time. From a partner standpoint, they're going to build their table structure, and then mix and match different application types using logical views. And you know, in HANA, we provide calc views and attribute views. So even better ways to do that. >> But the bottom line is the way you get to that ability to take a tile and drop it into a system and add that functionality, is because that underlying platform can support that view in an almost unlimited way. >> Exactly, whether the data is in HANA in the Cloud, or whether the data is still on premise through a direct connection back in the existing HANA system on premise. >> Of course unstructured data complicates the database equation, but also they have to coexist with the schemas and the structured databases out there. Has that thrown a curve ball at you guys at all? Or not a problem at all with HANA? >> So you know we've got an answer for that with Vora. I don't know if you've talked to any of the Vora folks, but you know what Vora brings to the party is it brings in-memory capabilities. It's an in-memory indexer for dup data. So instead of pointing your sequel query or building a MapReduce or using Hive or one of those technologies-- >> Or data lakes-- >> Or whatever, you just point it at Vora, and it's already indexed in memory. So our plan and our hope is that soon Vora will be on the HANA Cloud Platform. So that's just another piece of technology-- >> Peter: Way of generating a view. >> It's another service that we provide for generating a view on top of the dup data. >> Yeah, that's key. So talk about the Ecosystem innovation. Because one of the things I loved in McDermott's opening keynote, and I love the term, business model innovation. 'Cause that just really speaks to a whole new level of innovation. Usually it's tech innovation. >> Yeah. >> You get destructive enablers, platforms. At the end of the day, the application of the tools and platforms, however they're developed, by whomever, impact something. That's the business. That's the revenue. These new processes that are emerging. IoT is a great example. It's kind of an unknown process. It's hard to automate that workflow because it's evolving in real time. What innovations can you point to that you see, and that SAP sees as key mile markers, if you will, that shows that these things are being innovated on the business model side with the Ecosystem? >> Yeah, I'll give you two examples, one that's kind of just a speed up. And then I'll give you one that's a business model. So Hamburg Port Authority is the Port Authority for Hamburg, the second largest port in Europe. For them to keep up with the competition, they're going to have to double and triple in the next 15 years, the amount of goods going through their port. They have nowhere to build out. They cannot make their port bigger. It's surrounded by a city. There's nowhere for them to go. So they're using HANA Cloud Platform to basically create a grid. They're creating a utility or a cell network grid of all the containers that are sensorized, all of the trucks that have telematics information in the trucks. And they're also bringing in traffic information so that when the container comes in, they can bring the exact truck in that needs to get it in the right path into the port. If you think about that, that's a cellular network. And that's what they built using HANA Cloud Platform. So it's a semi-change in business model for the technology-- >> So minutes matter to them. >> Seconds matter to them, literally. The faster they can match up the container with the truck that's going to move that container, the better off they are. >> They got to clear the inventory. Sounds like a business problem. >> Exactly, exactly right? And think about it, they're probably going to sensorize the ships as well. They're going to stage those guys coming in over time. >> John: What's the other example? >> The other example is really interesting. This small company in Germany that builds forklifts, There can be nothing more pedantic than a forklift. It picks up a pallet, it moves the pallet, it puts it down. So here's what this company's done. It's called Still Forklifts. They are using HANA Cloud Platform to match up their order system, which is an SAP with the forklifts that are sensorized on HANA Cloud Platform so that the order system will send the order to get picked by the forklift. And the forklift and the order system have the maps of where everything is in the warehouse. >> The client's order system. >> The client's order system. And they've also now, they haven't done it yet, but they're working on a forklift to forklift integration so that if this guy's over in this part of the warehouse he has to pick something up over here. This forklift is over here. They meet in the middle. Trade some product, get it out to the docking station. >> So the forklift is an IoT device to the order system. And it opens up the possibility of greater automation within the warehouse floor. >> And they've changed their business model. They're no longer selling forklifts. They're selling pounds of goods moved within the warehouse. From in the warehouse to shipped. And they're billing on a monthly basis based on pounds of goods shipped. They're not selling forklifts anymore. That is pretty cool. >> So that's a complete shift. >> That's a business model shift. >> It's an outcome shift. >> Yeah, absolutely. >> They're selling the outcome. >> Exactly, exactly. And they had to think differently about their business. They had to think, we are not a forklift operator. We're a goods mover operator. >> Or to your business model, we were a forklift operator. Now we're a goods mover, an in-warehouse goods mover. >> Exactly, exactly. >> That's a great example and also a huge innovation. Because now, as the keynotes were saying, people are afraid to go out of business. And so the opportunity for the Ecosystem is, put one of those guys at check. They'll get the check. If they don't move, you take their territory. >> Exactly. >> So it's a nice cycle, SAP wins on both sides. >> On both sides, yeah, very cool. >> All right Dan, I got to ask you the question. Plans for this year, you got the Apple. You got the Cloud Platform. You have all this goodness goin' on. What's the plans for the year. Give us a taste of some of the things that you want to achieve this year, out in the market. And what KPIs are you looking at-- >> Yeah, what are we going to be talking about this time next year? >> I think we're going to be talking about what did you guys do in the area of Cloud Foundry. Have you guys really delivered on your Cloud Foundry promise of going opensource and moving toward portability? So next year, if we're fortunate enough to speak again, That's what I want you to ask me. Where are you guys on delivering Cloud Foundry? Pushing opensource, open development for developers even further as we talked at the outset of the interview. And then secondly, where are we on the API business hub? What is SAP doing to expose the thousands of business services that we have to our customers? To be able to use the HANA Cloud Platform with a catalog of business services that we're exposing to help them extend or modify or build that new application. >> And new onboarding numbers, having numbers showing both. >> That's right. Now what that means from a revenue standpoint, it means, you know we got to double or triple our business next year. We're not talkin' a 10%, 15% growth. We're talking an order of magnitude growth for our part of the business. >> And so you'll be investing more in marketing, training, tools. >> All of the above, all of the above. >> Hey, companies want to get into the enterprise, and the existing enterprise suppliers want to stay in the enterprise. >> Exactly, exactly. >> John: So it's a good time to be an arms dealer. >> Exactly, and we'll supply it with the HANA Cloud Platform. >> John: Dan, thanks so much for sharing your insight here on theCube. Really appreciate it, and great to meet your team. >> As well. >> And everyone here has been fantastic. We are live, here in Orlando. The theme is live, here at SAP this year. And of course we got the live coverage from theCube. This is theCube, I'm John Furrier, with Peter Burris. We'll be right back. You're watchin' theCube. (soft electronic music)

>> Voiceover: Live from Orlando, Florida, It's The Cube covering Sapphire Now, headlining sponsored by SAP HANA Cloud, the leader in platform-as-a-service with support from Console Inc., the cloud internet company. Now, here are your hosts, John Furrier and Peter Burris. >> Hey, welcome back, everyone, We are here, live, in Orlando, Florida SAP Sapphire Now. This is SiliconANGLE Media's The Cube. It's our flagship program, we go out to the events and extract the signal from the noise. I'm John Furrier with my co-host, Peter Burris, want to give a shout out to our sponsors, SAP Hana Cloud Platform, Console Inc, Capgemini, EMC, thanks so much for sponsoring us. Our next guest is Pat Bakey who's the president of SAP's Industry Cloud group. It's the core of the cloud, all SAP. Welcome to The Cube. >> Hi, it's great to be in The Cube, first time in The Cube. >> First time on The Cube, congratulations first time Cuber. Great to have you. You have, as holistically viewing across all the different lines of business, Cloud will be a very big part of the future and across all of SAP, that's the core business. Yet, now you have Hana cloud platform, you got all this other stuff going on. Now, you have cloudification of SAP in kind of a real time happening in this show, it's going to have an impact to the deployment model, the consumption model, and the economics. What's the take, what's the internal discussions? How you guys talk about it externally with costumers and how is it received? >> Right, so, you know what, I'll tell you what, this is the industry cloud organization, so, maybe I can start there. What's industry and cloud doing in the same sentence, in the same title? So, when you talk about digitization, what customers are looking for today, it's value and speed, right, speed and agility. So, the industry part of the equation is all about value. How do we communicated the value of our innovations in a message and understanding that gives the customers confidence to invest in a innovation agenda and that's kind of, historically, has always been the strength of SAP, is the language that we speak with our customers, it's well understood, we just make sure that we express that well across all industries and line of business with the digitization agenda. The cloud portion is where speed and agility comes into play. How do you move quickly, how do you move fast? If in yesterday's business the strength was your ownership of assets, the strength today, the attributes in which these companies compete on is speed, innovation, agility, and that's where cloud comes into play. >> And knowledge of the customer. How are you then bringing those two things together for your customerS? >> So, we're helping, actually, customers across all industries get closer to the customer. If there's one strategy that every customer in every industry is pursuing is get close to the customer. This is important, it may seem sort of simplistic, but it's easy to say, it's hard to do. So, we are helping customers understand what their customers and what their customer's customers are doing. It's driving a blurring of industries. You may say that I'm responsible for 26 industries, maybe oversimplifying 'cause we see this massive blurring of industries because as customers in industries are trying to get closer to their customers, they cross boundaries. >> And conversation let's them do that. >> Yeah, it's like we were talking about before, in this world of atoms, very restrictive, very kind of two-dimensional. Digital, it defies gravity, it defies boundaries, and that's why you see this blurring of boundaries in cross industry plays. >> Yeah, we're seeing that, too, you guys talk about it here, I heard it many times, breaking down the silos and the keynotes, but at the same time, you want to have that getting close to your customer mindset which means that the apps, the workloads are domain specific and there's some blurring, so the question is, how can you be vertically integrated at some level for that domain expertise and then be horizontally scalable because the data really becomes the blurring component, too, you have data moving around, so how do you guys look at that and are customers asking for this kind of architecture? >> Yeah, it's exactly, so... It's interesting, in the old world, you either had deep industry expertise in your applications, your technology, or you had sort of a broad, horizontal, and that got you a seat at the table. You had to be best in class in either of those. So, those still get you to the table, if you have those, but it may be a small table like the table that we deal with, with our customers, is an innovation table, it's a growth table, and it involves the whole board, the whole enterprise. If you get to that table, you need to have deep industry expertise and what do I mean by that? First, you speak the language, you understand their industry from a process and the capability area and then you have to express that across their businesses, so whether that business are traditional COM, the customer business around people, HR, or around procurement or even in the industries where you're taking look at supply chain or you're looking at planning, you need to be able to integrate the industry with the horizontal. When you have that conversation and that message, which we have, you're at the big table. >> The big boy table, so what are some of the conversations at the table, is it really more revenue-driving for the customer's customers? Is it cost-saving, both, is it implementation? What are some of the trending conversations that are happening at the big table? So, at the big table, at the top of the house, strategically, around this topic of digitization, the world of digitization, competition is at the business model level, that's what they're talking about which is, I know I'm in this business today, will I be in this business tomorrow and how do I compete tomorrow? It's less about the assets as we said before, what do you have, but it's the insight that you have and that's opening up a lot of new business opportunities, so at the big table, it's around business model innovation, that's what they're talking about. >> Let me see if I can connect a couple of things you said here, so it used to be that when you thought about industry, you thought about the organization of assets, your organization of assets looks like your organization of assets, how do you handle your balance sheets, but now we're talking about customers and in many respects, the new industry is defined by the things that your customers want to do that are common to your competitor's customers. >> Exactly. >> And sometimes they're the same customers. So, as SAP's ecosystem grows, as it expands, as you're able to attract, through new sources of value, to things like this wonderful Apple partnership that we want to give you guys a chance to talk about, do you see SAP's role moving from a provider of software to actually increasing the provider of a way of thinking about doing business, where SAP, in many respects, becomes an element, almost a core element, of the business model that your customers are using to make things happen. >> That is a great statement and I actually can point you in two directions and I want to get to the Apple relation because it actually expresses our strategy on taking advantage of that. So, I would say, historically, when we were just an application company, the source of innovation came from SAP, we understood business process, we understood industry, we built these remarkable applications, and our ecosystem took 'em, implemented, and customers enjoyed the success. We're in the world now of digitization and massive innovation and there's no way that we can be the single source of innovation, this is why you heard Burn, this is why you heard Robyn Bell talking about the Hana cloud platform. So, we still need to be the catalyst when it comes to defining what is remarkable about our technology and capability to solve business problems, but then we have to enable a massive ecosystem to innovate on top of that, to extend it, to innovate, and that's where the Hana cloud platform comes into play. We are setting the agenda, we are setting the expectation of what great looks like and then tapping into the ecosystems that we have. >> What's interesting about what you just said and Peter brought this up yesterday with the global CTO of Capgemini and your premise was, the old days, you knew the processes, but didn't know the technologies, and you automated those processes, now we know the technology and don't know the processes as their developing. So, you look at IOT, it's an unknown future, but you can kind of guess it's going to be a lot of data, it's going to be an edge of the network, so that reinforces this whole ecosystem point that the innovation will come in an unknown innovation way meaning that you can't say, "I'm going to automate that" 'cause it's not known yet, it's evolving. That to me seems to tie what you just said. Can you expand your thoughts on that because this is what everyone's chasing that's the startup mentality, that's the agile, that's the jump on a grenade, win the beachhead, grow a business, that's going to be the startups and the white space for you guys. >> Look, I'm a lousy dart player, all right, but I could win if I'm throwing a thousand darts at a target and the other guy's throwing three, that's the environment we're in with Hana cloud platform, we got massive darts to throw at the target because it changes so fast you need to have a couple things, you need to have that great ecosystem, you need to be able to innovate, and you need to be able to address volatility. Let me give you a practical example of that. If you take a look at digitization and one of the key dimensions which is how work will be done in this new digital world, we have some pretty good ideas how it's going to be done such as it's not going to be done inside of the enterprise, whether that work is a manufacturing environment or that work is knowledge management in a typical office, it's going to be increasingly mobile and these mobile workers will be connected. And the challenge there is one, how do you understand what the processes will be? We have an idea, but they're going to evolve and second, how do you enable them with real time information 'cause the mobile experience isn't just taking the desktop and putting a different form factor on it, so we take a look at the Apple and SAP announcement, what does this mean? When you hear Tim and you hear Bill discuss it, it's a step change in how these two great companies believe work will be done in the digital world. The way that we execute on that is, again, back to what I said before, we will bring the best of a consumer, user experience, with the best of a business insight experience and bring those together and if you take a look then at what is the standard of a mobile platform, it's iOS which, by the way, is severely underutilized. It's chat, it's phone, it's email. If you take a look at your iPhone and how we're using it as consumers, that's massively underutilized in an enterprise setting, same thing with business information, when you leave the office, you're leaving all that behind, SAP will bring all that, the business process, the business insight, you bring it together and you have these new native applications. >> Interesting, too, on the Apple, by the way, congratulations it's a real phenomenal announcement, super happy to see that. The other nuance there, too, is that swift programming languages is very popular among developers right now and there's also another trend in the developer community what they're calling the non-coding developer, the tools are getting so damn good now that you don't have to go to be a computer science major to write code and there's other, Python, other languages that are good on-ramps, so you have an ecosystem that has the glam of Apple and the sexiness of swift. There's all this monetization opportunities. There's a developer saying, "Hey, I have an ecosystem "I can work with, that I can ride on the back of, "to the marketplace," so it's a great avenue for someone or now business to pick a white space and dominate it, whether it's a tool or a feature, they can come in and be a feature and still be a business, you'll be saying, so could I, was, "Oh, that's a feature not a company." That was the old way, now that's the innovation coming from these entrepreneurs, that, to me, is interesting. Are you guys seeing that kind of excitement from developers and do you see the developers as the core of the ecosystem? Well, what's your thoughts on that, overall? >> We're seeing the developer community becoming a more critical part because it's not just about implementing, remember when I said we're the source of innovation and other people implement it, that the skill set of the ecosystem, now when it's innovation, the source of the innovation needs to come from the ecosystem, and that's the developing community. So, if you take a look again at this Apple announcement, the reference applications and what we're building right now because that's what we and Apple think would look great in specific industries, but then it's this SDK and the Hana cloud platform. If you take 2.5 million SAP developers and you take 12 million iOS developers, you bring 'em together, not only just to work together, but to redefine what this new developing environment is, swift, right, the best of how you design enterprise applications or commercial applications and then the third leg of this is the iOS university because these are new classes of developers and my final point is as much as we think we know how work will be done in this mobile work environment, it's going to change, it's going to change. >> IOT's important, but people are going to work together with people over distance over agendas over boundaries, that's going to change the world. Let me ask you a question. We'd asked a couple of times to some of your folks on The Cube, Is it going to possible at some point in time, I'm going to get an Apple developer who decides to enter into an enterprise space by creating a solution, have an Apple phone customer go up, pull something off the app store because it is SAP complaint, is that going to happen? >> I can envision that happening, I can envision it. It's we are the standard for a trusted enterprise partner. >> Well, think about it, so now you got a situation where you your CIO and your IT organization who wants stable, comply in SAP, and then all the folks out in the field that are doing the work, that are identifying new problems and finding software that they can apply to solve the problem and having SAP and Apple bring both of those sides together, so that the CIO can be certain that what was just grabbed works and is compliant, but also, at the same time, that person knows that this innovative thing is not going to create problems in the backend. Very, very powerful vision, loved to see that notion. >> Yeah, and I think that's what you get when you combine those two brands and those two experiences. As quickly we're innovating and moving forward, you still need to have predictability in the business and a strong core, right? It's the business continuity, so you need to be able to innovate very quickly, rapid innovation, quick failure, fast learning, that's at the edge. So, if we can enable that, but give the predictability and the stability in the business relationships, security, you bring that together, this is the new world that we're creating, calls for new developers, calls for new ecosystems, and new leadership, and that's what we and Apple bring to the equation. >> So, Pat, share the roadmap on the Apple thing, just to kind of just to take the final close, square this out in little bits. Ecosystem, I get the ecosystem, I would evision that's a great outcome. >> Yeah, absolutely. >> Certified SAP apps in the Apple, I'm sure that's the plan. On the SAP side, you're going for the low hanging fruit, you mentioned that you're doing a couple of things, what's the roadmap for the sequence and the progression of SAP-Apple relationship? What are you guys bringing to the table from the core software? >> Yeah, so we've identified specific industries where the dynamics play to the favor of the dynamic at work, so they're mobile, they're standardizing already on iOS and they're connected and they need the rich enterprise information and we've identified high-values cases and those where we'll build the applications, but what we want to do-- >> John: That's a low hanging fruit for you guys. >> That's a low hanging fruit. And create that kind of references of what a great mobile experience looks like and then we're going to enable through the SDK, the ecosystem, so that's where the massive innovation is going to come from and then we'll try to figure out where this takes us. This is a series of six month sprints that we're on. >> Business sprints Love that concept. >> You know, this phrase, a couple of years ago, the speed of business, I forget which SAP soft, I remember in 2013, McDermott's phrase was "Running at the speed of business" with the mobile. Final question for you is, on the Industry Cloud, what's your plans, what's your goals, how do you see it evolving, can you share some anecdotal, you don't have to reveal any sensitive information, but the visions for how you see the Industry Cloud group that you're running, evolving over the next 12, 48 months? >> So, I see us, right now, that there's some things your core values and your core competencies shouldn't change, they should sort of leverage the environment that you're in and so, we're caring for our industry in sight, our focus on an end-to-end capability, high-values cases, and integration where it needs to be and that's what we express. So, we're going to take that and we're going to apply it to helping customers digitize on that journey. Here at Sapphire, the focus has been not on what we're announcing because ask any customer here, we have the requisite capabilities, what they want to get is busy on their journey and they want us to help them reduce uncertainty, reduce risk, and realize value. So, all the conversations here on what are we doing, industry, clear road maps, where we going? What capabilities? Second, road map on value, what value? S4, fastest launch in our history, customers, right now, are saying, "How do we double that, how do we triple that? Is by showing the business value associated with it. So that's what we're doing with industry, is showing a clear path of what great looks like, a road map on how to get there, the business values associated with it, and how working our digital business services customers, how we can help them realize that. >> And the road map is key because that clarifies the ecosystem. They understand kind of the rules of engagement. They can see the line. >> Yeah, what their overall is used. You know, it's interesting, Pat, you look around, there's 60,000 people, the amount of activity, the amount of deal making, that's going on here, it's probably the 25th largest economy in the world right here. >> Oh, it is, in Orlando, that's amazing. Yeah, I need to take a knee guys, I was just hearing about that. >> Final question and I'll let you go 'cause we got to go, we know you're tight on time, what's the coolest thing you've seen at Sapphire this week? >> Coolest thing, boy, I've been in so many meetings, I haven't seen cool. >> Peter: Other than this one. >> Oh, yeah, this is definitely a cool meeting. Oh, geez, coolest thing? >> Coolest phrase, sound bite, feedback, hallway conversation. >> What are you going to tell, in your next management meeting, what's the one thing you're going to tell 'em about Sapphire? >> I'd say that there is so much demand for us to help customers. We're not pushing, we're getting pulled. So, it's about prioritization like how do we focus on what's most important for our customers? That's such a lame answer. >> Peter: Well, but the prioritization of-- >> When you're looking for cool, but it's true. >> There's drones somewhere, I saw a beer tap that got IOT on it for-- >> I did see the guy in kind of the transformer outfit, that was pretty cool, but I'll tell you what, as we become more and more of consumer business oriented, my kids start developing a better understanding of what I actually do when I leave home. It's cool, I mean, SAP is cool. Actually, I'll tell you the one thing. The one thing I heard here from customers that either went to original Sapphires and are back after a while or coming for the first time, they can't believe how fast we're moving. They really can believe how fast we're moving. It's that speed, it's not just the pace of this conversation or the pace of the traffic around here, it's the pace of how quickly business is moving and that we're leading it. >> Pat Bakey, president of Industry Cloud, SAP, this is The Cube, I'm John Furrier with Peter Burris. Be right back, this is The Cube, SiliconANGLE's flagship program. This is The Cube, you're watching The Cube, we'll be right back. (fun, upbeat melody) >> Voiceover: There'll be millions of people in the near future that aren't allowed to be involved in their own personal well-being and wellness. Nobody wants to.

>> Voiceover: Live from Orlando, Florida. It's The Cube. Covering Sapphire Now. Headlining sponsored by SAP Hana Cloud, the leader in platform-as-a-service. With support from Console Inc., the Cloud Internet company. Now, here's your host John Furrier. >> Hey, welcome back, everyone. We are here live inside The Cube and we are at Sapphire Now, the SiliconeAngle's flagship program. We go out to the events, instruct (indistinct) Want to give a shout out to our sponsors. SAP Hana Cloud Platform, Console Inc., Virtustream, and EMC and Capgemini. Thanks for your support. We really appreciate it and it allows us to get these great events and provide all this great coverage. Over 35 video interviews already up on Youtube, more coming today. Our next guest is Michael Hoch who's a senior vice president of global system immigration at Virtustream. Now an EMC company sold for 1.2 billion dollars. Originally start out in the SAP ecosystem, created so much value over a billion dollars and then exit to sold to EMC. Welcome to The Cube. >> Thank you very much for having me. I'm glad to be here. >> I really love the Virtustream story because to me, we've been watching the progression of Virtustream from the beginning and it really to me, shows the value of the possibility of what's going on in this ecosystem. You sold for 1.2 billion dollars and that's now come, it's out there, it's established. Cat's floating, whatnot. (Michael laughs) But it really shows that you guys started out with an SAP and then pivoted or navigated out to a business model with the Cloud. Probably a lot of value. This is a lesson for the ecosystem because this is an example where SAP didn't have functionality. What you guys were doing, really was an operating model that was underserved. Very underserved. >> Share the story of how it relates to today's ecosystem. >> Sure. So when Virtustream was founded, Cloud was sort of an anathema for the enterprise. Right? That was the time where AWS was starting to shoot off. Microsoft was just dipping their toes in the water. And what Rodney Rogers and Kevin Reed saw is the opportunity was if you could put SAP and large enterprise mission critical applications on the Cloud, that's something that could have tremendous value in the future. At the time, everybody was skeptical. Security concerns. Availability concerns. Management concerns. >> "It'll never work." >> It'll never work. >> They said that about Amazon web services too. >> A few years earlier, that would never work and now they're what? 10 billion or something. So they focused on that market segment for two reasons. One, there was a huge value if it could work and two, they knew SAP. They came from a joint which they sold eventually to Capgemini. They knew SAP and system integration. White Glove Service was critical for enterprise applications to run in the Cloud. So the company was built with a White Glove Service that we started. As well as our technology, the extreme platform, that was really designed to host IO intensive stateful apps. From there, we grew, we did well, we plowed our way through the VC era. The reason why--- >> Wow, big word. Plow. (laughs) It was a sog. >> Yeah, I had been there for over five years and there were some days but in the end, where we got to over 200 SAP production customers, EMC very interested because of the technology, as well as the White Glove Service. And that's where we, about two years ago, started opening up to SI partners. Now, we were proving that this could work. We were winning customers against them and giving in a small way, the types of hand holding that they do on day to day basis. So we started partnering with some SIs to show that they could run it as well. >> Explain that. Take a minute to explain >> Sure. the relationship that Virtustream, now EMC Virtustream, has with SIs and how they engage with you and the value that you provide. >> Sure. Sure. So, we work with SIs in a couple of different ways. So, SIs are known for high touch, high management application services generally. When it came to where's it going to be hosted? Some SIs are asset light and they say, "Well, here's your respects, go buy data centers, go buy your own servers, whatever. Once you got the hardware provisioned, we'll come in and do the application work." Other SIs built their own data centers. Capgemini runs their own data centers and they had their application management work. So you had asset heavy, asset light. In the Cloud world, we were able to come in easily to those asset light situations and now through our software can help those asset heavy companies to build a full Cloud model to support it. In an asset light model, we would provide up to the IAS, maybe OS management and the SI would handle basis, data baseboard, all of the work that they're very good at. We did what we were really good at. >> Yeah, and this a big trend. We put this up yesterday on The Cube. This asset light and if you can take a minute to describe that is the new normal for operations management on the Cloud. Because you don't want to have heavy assets, you want to be more elastic, more agile if you will. >> Agile and responsive and it ties very well into the current trend of enterprises saying, "How much of my data center do I need to keep?". We're in a hybrid world. We're going to be in a hybrid world for the next several years. So there's going to be a large portion of on premise and a large portion of off premise. How do you build a hybrid environment that's scalable where you can pay for what use in the Cloud while still making use of whatever asset you have? So, the SIs look a lot like IT. >> So if everything's asset light or no asset, say we're using the Uber for example, it backs me out to do self-driving cars. (Michael laughs) As reported today in Pittsburgh. You need a data center somewhere. I mean someone's got to have a data center. So there's no diminishing return, there's no race to zero on this asset light. Someone needs to carry the assets. >> Someone needs to carry the assets and that's where Virtustream stepped in. Five or six years ago, someone's going to need to own this but we're going to need to own it at a higher degree of efficiency and still the scalability and security. >> So, this is the issue, right? >> Yeah. >> If you're going to use data driven, you need to have a data center. But here's where I want to get your thoughts on and this ties to the global channel, A-K-A the big system integrators who are doing a lot of stuff. They're have to be nimble to customer needs so they don't have and tell me if I've got this right? They don't have the luxury to provision up a data center at the scale that need in order to get table stakes and start doing business? And that it's easier to go to say Virtustream and other Clouds possibly to get the critical mass of resource to start doing business and being agile do up in software. Did I get that right? >> Well, if we're talking about the systems integrators in particular, they have some solution already. Most of the large ones, already either have their own data centers or co-location relationships but they're very manage hosting focused. What they're trying to get to is an agile responsive way to deliver what they've already been delivering. And that's where the partnership with Capgemini, for example. Our extreme software and their data centers, they're able to use our IAS as burst capabilities or to reach regions that they can't today. That really gets them into a position of looking like a Cloud provider, even though, they're owning their own data centers. They can use us, our IAS, for regions that they're not in or to extend. But they're able to get to that very responsive manner. What Virtustream was built from from the ground up. What we've been doing for the last six and half years. They're adding to their coasting capabilities. You'll see that >> You're accelerating there with other SIs as well. >> with pre-existing stuff. Giving them the ability to go out and do some of the agile dull. >> Don't lose your current customer, put 'em in a modern world. 'Cause this is another interesting trend. You've got ISVs looking like service providers. All the ISVs want to move to a Cloud enabled something. Maybe not full sass but something and then you've got service providers that need to look more like ISVs, software solution driven. >> So everything's flipping around? So the vector's are reversing on all aspects. >> On all aspects. But either way you look at it, they still want to have a consumption based infrastructure behind it. So whether you're asset heavy where you want to convert your data center to do that or you're asset light and you need to access one like Virtustream, it's really the way that it's already tipping in the industry, it's just going to continue over the next three years. >> What's the biggest challenge for developers out there? And the ecosystem partners that you're working with? I know you mentioned your story about Virtustream, schlogging through the VC and being agile, and that's the ups and downs of entrepreneurship. When we've started companies together. I've done companies. It's the same way, highs and lows. But that culture's moving their world (laughs) It's still turbulent to these guys. It is an up and down for these guys. It's a slog at some level because they got to be agile and that's very startup-like. >> To start up, they have to be agile and what I see, even the global SIs, you're talking about billion dollar companies, multi billion dollar companies. They're getting pressured by their customers to say I want an all in one solution and I want to pay for what I use. And their business models aren't necessarily ready for that so they're having to really rethink of they're delivering, how they're innovating, and what they're bringing to their customers. Because if they don't do it that customer is going to go to somebody who does. >> Yeah, I mean the enterprise has to become more entrepreneurial. That is the only way in my opinion that you're going to see the innovation surge and that's not necessarily be entrepreneur, just be entrepreneurial. >> Right (laughs) >> It's a mindset. >> Mindset. >> And you can learn that. You got to get tough skin. >> Tough skin and taking advantage of changing business conditions, ramping down when it's a good >> Iterating. slow seizing. Iterating. This why everybody comes to Cloud. Agility being number one. They say we want to respond to changing business conditions. You're business also has to respond, it can't just be your IT. >> Alright, the age of Cloud, Michael thanks so much. Give you the final word. What's on your plans for this year? What do you got going on? What's the big highlight for Virtustream? >> Sure. So, we've been doing SAP for six years or so, we're branching out into other enterprise applications. You'll be seeing us expand our catalog. We've always been a heterogeneous Cloud but you'll see a more aggressive move into that. And you'll see the scale. We're going to be opening up new locations globally. Thanks to our parent's company EMC. >> Big, big, deep pockets. >> Big deep pockets. >> I bet to so no one gets--- >> Our customers are global. We need to get our offering out in the global market. >> Well, congratulations on the success and the acquisition and certainly being a private company. Dell Technologies, a combination of EMC and Dell, will give you a lot of room to maneuver under public scrutiny. >> I'll come back in the Fall and talk about that. (light laughter) >> Thanks so much. >> This is The Cube. Live in Orlando for SAP Sapphire. I'm John Furrier. You're watching The Cube.

>> Voiceover: Live from Orlando, Florida, it's TheCUBE covering Sapphire Now. Headline sponsored by SAP HANA Cloud, the leader in platform-as-a-service with support from Console Inc., the cloud Internet company. Now, here are your hosts: John Furrier and Peter Burse. >> Hey, welcome back, everyone. We are here live in Orlando, Florida for Sapphire Now SAP show exclusive coverage from SiliconANGLE Media is TheCUBE, our flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier with my co-host, Peter Burris, Head of Research at SiliconANGLE Media. I want to give a shout out to our sponsors, SAP HANA Cloud platform, Console Inc., Virtustream, EMC and Capgemini. Thanks for your support, we really appreciate it. Our next guest is Michael Bruchey, who is the SAP Global VP of Partner Solutions, welcome to theCUBE. >> Thank you very much. It's an honor to be here. >> The theme of the ecosystem has been pretty big, but the ecosystem, as we've been learning on theCUBE, is that the channels, the VARs, the VAS, the ISVs, all that stuff going on there, but the global channel, your involvement is the big integrated, it's the much more advanced traditional SAP partners... >> Michael: Sure. >> Back in the old days of Big Six accounting firms that we're doing in the early day of deployments. Now, they're doing the cloud. So what's different now? What are you guys doing? Share with the audience some of the things that you guys are doing today and you're talking about at Sapphire this week? >> You know I think one of the big changes and I, one of the things I'm always curious of is time, and over generations, how the element of time has changed. And in the old days, when you talked about the Big Six or the Big Eight, it was probably more about implementations. It was more about how do I get this software to actually run and do something for me. And while that's still an important element that has to get done, a lot of it today is really about innovation. And it's how does SAP and how do our business partners help our customers innovate their business. So it's not just about implementing a piece of financial software. It's about how do they innovate their business so that they can create a competitive advantage for themselves. So I look at it and say, implementations are important. And we absolutely have to go do that. But if we don't help our customers innovate then they might as well just be standing still because our competition or somebody that doesn't even exist yet is going to come up with an idea or a way to go do something that's going to pass them by. >> It's interesting too that the global challenge is obviously very effective in terms of obviously, delivering value to the market. But it's interesting, you have a customer who has a customer. Your customer, customer, customer. So it's like three levels down, but the partner's closed to the customer. So Peter said something on Monday, I thought it was interesting about the trend we're on. I want to get your thoughts on this and how it relates to the innovation piece. In the old days, it was known processes. You used unknown technologies that were being figured out to automate those processes, deliver those technologies, accounting, ERP. Now you have unknown processes developing with known technology. >> Michael: Sure. >> And technology's obviously getting developed more and more. But the unknown processes, like IoT, these are used cases where it's a complete digital transformation on the workflow. So it's kind of unknown. So this is where the innovation comes in. I want to get your thoughts, what innovation aspects do you see and processes are developing that are getting a clear line of sight for the partners? Obviously, Big Data is one, we see that all the time. But what would you share? What insights? Spend a minute to talk about that. >> Yeah, I, it's a great, I'm glad, it's a great question because I believe that this is one of the big differentiators that SAP is bringing to the market in that, we talked, I talked a little bit about time and the importance of getting information on a real-time basis. It's interesting, I learned from one of my colleagues this morning that the R in our earlier products was for real time. But their perspective on real time was the fact that it wasn't on punch guards. I mean this was at the beginning of our company, and you think about where we are today. For our customers, when they innovate the business, and you look at things like the Internet of Things and you want that connectivity, it's not good enough to connect to the systems they have today because if I can't process that data in real time, then it doesn't, what do I do with it? What service can I provide to my customer? And that's part of the innovation or the enabling of innovation that SAP brings to the table with, as for HANA. It's the fact that, not only can I help you connect those devices, those Internet of Things, but I can help you do something with those devices, do it in real time and provide that feedback directly to you, as an organization, and to your customer immediately. >> And what's interesting too on the ecosystem playing, this is highlighted as well. And I want to get your thoughts on is as the, these discoveries come up, people in the trenches who see customer needs in a vertical or a domain, specific expertise, set, they see an opportunity to innovate then they got to actually program it. So they need a developer approach. >> Michael: Absolutely. >> So the developer approach becomes a pretty big deal so now they see an opportunity of problem to obstruct the way, the complexity and deliver it. So again, time is important. But they have to program it. It makes you break software. >> Peter: Yeah. >> So take a step back and say, "Okay. How long is that going to take?" So what's interesting, the ecosystem you guys are putting together is a time to value equation. What's the perspective on that? I mean cause that becomes now a developer cloud concept, the cloud from the servers and the ecosystem. What are you guys seeing there? And what used cases can you share? >> I'll give you a real live example for me and what we do and how we operate our business with our global business partners. When we decide to go to market with a global systems integrator to address this specific business problem, it's important for us to be able to track and measure whether what we're doing is being effective or not. If we create some sort of a campaign that distributes that message to our customers or our prospects, how many of them come forth or actually interested in it, and do we create business opportunity? And once we've created a business opportunity, we get it closed. Now we really want to track and measure where is it in the implementation? When do they go live? Once they've gone live, let's create a story so we can share that with the rest of the marketplace so that people can see the value that other customers are getting for what we do. We didn't really have a system to be able to track that. I came into this role about two years ago, and for the first year, we took something we had and we sort of got the duct tape out and we wrapped it up and we used it to do the best that we could. But we realized it really wasn't adequate for what we wanted to go do. So we actually contracted with one of our business partners. And we had them develop an application for us utilizing HANA Cloud platform. So it's a HANA Cloud platform-based application. It's fully integrated with our CRM system. And the beauty of it is, in the old world, if you didn't look at the innovative tools that SAP has available today, if you went back to the old way of doing things, it probably would have cost hundreds of thousands of dollars. >> Peter: And you wouldn't have gotten it done? >> We would not, well, and that's part of the reason why we didn't have anything. >> That's right. >> That's because we could never get it done. >> That's right. >> So we contract with one of our business partners who is an expert with HANA Cloud platform, and they developed an application for us in literally weeks. >> John: That's awesome. >> We defined our business requirements. We used, we used our own technology, worked with a third-party company, that's a business partner to go develop an application that solves a business problem. Yeah, now we had to go through the exercise of defining what our business requirements were. But the fact that we could do that, and we were able to do it economically, that's one of those big differences between the way that we used to do things and the way that we can do things today. And that's the important message for our customers is that if you have to take months or years and spend thousands and thousands of dollars to get things done, your competition will pass you by. Somebody you don't know even know exists today will pass you by. We need to enable them, so that they can be innovative, they can be quick. And they can respond to the requirements that are happening in the marketplace so that they can create their own innovations. We did that for ourselves. We used our own technology to get it done. >> But the other thing I'm presuming, I'll bet you, well, let me put it this way, there's been a consistent theme here that the platform approach allows that back end, that traditional SAP, that stable, that secure, that compliant foundation, that it allows innovation to occur in a way that doesn't freak out the IT organization. >> Michael: Exactly. >> And when I say that you probably weren't going to be able to get it done a few years ago is that someone within the IT organization would have come and whacked you with a hammer. But because you're using your own technology, and this is a test, this is the question, to what degree were you no longer, did you no longer have to run that traditional gauntlet of getting it up and running and into production and integrated with the rest of the system? >> Yeah, so we hadn't spoken about this before. >> Peter: Yes. >> And your question's great because I'd indicated that there was a solution that we had. I hesitated using the word solution because it really wasn't designed for what we were trying to go do. It was built on technology from somebody else. It wasn't built on SAP technology. And there were probably two driving factors to move off of that system. Number one, it didn't adequately meet our business requirements. But number two, the IT department said the clock is ticking. >> Yeah. >> We'll only support this for so long. You need to move to HANA, and you need to utilize SAP tools in order to get the support that you're looking for. So in some respects, we were forced to go do it. But we were able to embrace and adopt the new technologies that we have available. And by doing that, we got ourselves back into something that was standard, that our IT operation could support. And get it done much more quickly and get it much, done much more economically, where in the past, we could never get it done. >> So one of the things that's been occurring here at, on TheCUBE over the past couple of days, John, we have a lot of interviews with a lot of people that are part of the overall ecosystem. And SAP has an enormous amount of talent that's devoted to try and drive the productivity and the success and the value of partners and the whole ecosystem for customers. As you look forward, when you think about collaboration, you heard Hasso talk this morning about some of the new tech, in his keynotes, some of the new technologies, some of the ways, that's going to be, that's going to make it easier for smart, high quality, high-success people to work together. Talk a little bit about how you think technology's going to make it easier for you to work with all of the SAP experts and folks who are trying to bring value to the ecosystem for customers. >> Yeah, so today, pretty much all of our global systems integrators are creating innovation centers that will allow them to take advantage of these tools and to quickly develop and deploy assets that will help customers solve specific business problems. And so I believe what we'll be able to have, and I'm envisioning one in particular that happens to be in the same town that I live in, we will be able to work very, very quickly with that organization and integrate that group on a global basis. So it doesn't matter if the business problem is in the United States or if the business problem is in Asia Pacific or in Latin America. We can create those assets in a single location and deploy them anywhere across the globe. And it's interesting when I go around the globe and I meet with business partners, sometimes the challenge that they have is to understand all of the assets that are available within their own organization. And with the way that they're setting up these, and some of them will call them solution centers, some of them will call them innovation centers. But essentially, these centers of excellence, where they had the ability to bring the right resources together, who have the industry knowledge, they have the line of business knowledge. They've got the technical expertise that they can develop these kinds of solutions, that could be deployed in the cloud and can be deployed anywhere across the globe. >> Big buzz this week has been the Apple announcement. >> Sure. >> Obviously, that's going to impact you guys cause it's one great sexy announcement. Everyone loves Apple. They have billions in the cash, 2/3 overseas. But then you guys are global company, Hope we take advantage of that. That's going to bring a lot of attention to the ecosystem and more, and certainly put a spring in the step for developers. That's going to attract a non-SAP set of... >> Michael: Yeah. >> Folks. Yet you guys have an open choice model where you can buy SAP end to end, do all the greatness and goodness of SAP. But for the most part, you might get new customers. How is that impacting the game? Cause that's now, opens to SAP. You have the ecosystem up to a boat load of new opportunities. How are you guys structured for that? What's your thoughts on that? How are you guys organizing and capture that opportunity? Are you going to double down the marketing budgets and go all in? Cause Apple, you've got a window of opportunity. The wind's at your back on this one. >> Michael: Sure. >> So it's great opportunity. How are you organizing it? And how are you taking that to market? >> I think that one of the things certainly, as we work with our business partners especially, it's not about just working with them where they have their SAP expertise. That's not, they're not the only people that communicate either with our customers or with prospects. People who aren't our customers. And so one of the things that we're really trying to do is to ensure that where they have digital practices, and those digital practices aren't necessarily within the SAP practice at all. A matter of fact, they're not. It's really working in collaborating with them and helping them understand how the SAP today has the ability to work with them and to work with customers who haven't necessarily implemented anything of SAP today, whether you're the smallest enterprise or you're the largest global corporation, we have solutions that we can jointly come in together and solve business problems. >> And the consumerization of IT's happening, so that's certainly, is an exclamation point on that. >> Yeah, I thought Hasso's example today was outstanding. Because it took something that he's absolutely got on his app and say you wouldn't be able to do this any other way. >> Peter: That's right. >> And to be able to open SAP up... >> John: It's huge. >> To the user regardless of whether it's somebody just walking down the street or it's somebody within the four walls of the corporation and to be able to use those Apple devices in order to access that information and to make decisions that have an impact on what they do day in and day out, it's pretty significant. >> I mean, I mean it's going to be a competitive advantage for you guys. And I think one of the things that's not being discussed heavily, maybe because it's one of those things people don't like to talk about is money making, huge money making opportunity, exposing the SAP customer base to all those white space developer opportunities could be... >> Sure. >> Fantastic. >> Yeah, well yeah. And it also opens it up to a set of developers who may not have historically even looked at developing on an SAP platform. >> Michael, thanks so much for spending the time on TheCUBE. We really appreciate great conversations, great insights, sharing the data here on TheCUBE. TheCUBE ecosystem's growing at a new CUBE alumni, Michael, welcome to TheCUBE, appreciate it. We're live here at SAP Sapphire. You're watching TheCUBE. (chill-out music)

>> Voiceover: Live from Orlando, Florida, it's TheCube, covering Sapphire now. Headlines sponsored by SAP Hana Cloud, the leader in platform as a service. With support from Console inc., the Cloud internet company. Now, here's your host, Peter Burris. >> Hello! I'm Peter Burris and welcome back to TheCube, reporting live from Orlando, Florida and SAP Sapphire. We've had a couple of great days, this is the third day that we're doing this and we've got another half dozen or so great guests, please stay with us to get the signal from the noise of what's happening here at Sapphire. Today, well right now I'm speaking to Toby Davidson. Toby has a great job, strategy within SAP anywhere, which actually was announced this week here at Sapphire. Toby, tell us a little bit about what SAP anywhere is. >> SAP anywhere is a front office application. So what that means is it's an application for a small business to use to engage with their customers. So whether you're trying to market to them, have them sell, or purchase through digital commerce or a traditional e-store, social selling, or even brick and mortar retail stores. We provide the capability to the small business to bring all of these channels assail together so they can really truly engage with their customers and deliver a great customer experience. >> So we know pretty well from industry data, but also just anecdotal observation that customers are increasingly asking for digital engagement mechanisms. They walk into a retail store in a very traditional, brick and mortar as you said, but they're bringing their iPhones, they're bringing their Android tablets, they are demanding to be able to complement that experience with the ability to access all sources of information anywhere as part of their experience. Is that the kind of thing that you're helping small organizations or small retailers and other types of shops make happen very quickly within their businesses? >> Yes, absolutely. Certainly it's one of the elements that we're mobile first, so the idea being the application is designed to be used on mobile platforms, tablets, phones, etc. So, not just our customer is able to engage on a mobile platform as well as a computer, run their business the way they want to, access it how they want to, but also taking that to the end customers. So, how do you want to buy from a retailer? Do you want to go in in the store, do a traditional physical purchase with cash or NFC technology of Google for Android pay, that type of thing? Or would you prefer to actually buy online and have goods delivered, or buy online and go and pick it up in the store? Track it on your mobile, work with the retailer the way you want to. And I think we see that transacting both the B to C market, the end consumer market, and also the B to B market. So business to business. We want the experience in B to B commerce that we have when we do our personal banking online on the mobile. Or we're buying from one of the sales platforms, like Ebay, etc, when you're sitting on a train. We want to be able to do that in the B to B environment as well. So we're bringing both of those together. Providing the great experience that we like as a B to C customer. The user interface, the way we interact with the banking systems, the sales systems, the e-commerce platforms, as well as the power that you get in the B to B platforms of pricing that's specifically for you and your business. The order to invoice rather than having to pay with a credit card, tracking the account, the shipping, all of that sort of good stuff. We bring it all together so that the small business can offer that functionality to their customers so that they can actually expand the markets that they work in. They're not restricted by their traditional method of selling. >> So, another very important and interesting announcement, at least in the last couple of weeks, was the SAP Apple partnership. >> Correct, yeah. >> You must be frothing at the mouth. >> Absolutely. >> To start translating that into great deliverables for customers. >> Yes. >> Talk about how SAP anywhere is going to be affected by that announcement and how that ecosystem can be engaged to drive a lot of these new capabilities in smaller, medium-sized enterprises. >> So, I think when you look at the likes of Apple, and yeah, we've had some great discussions with them this week already and it's very exciting. But you look at the adoption of Apple technology within the small business. You know, you look at how the SMB is really adopting Apple-based technology. Everybody has an iPhone, everybody uses a tablet of some sort or other. So what we can really do is if we design our software to work on those platforms well. Things like using the capabilities that they provide natively so we're not just building an application that sits on an iPad, or sits on a phone, what we're actually doing is we're building it so it uses the capabilities and the functionalities that those specific devices use so that when you pick up your phone and you go into SAP anywhere, actually, you already know how it works. Because you're used to using the device. You know how to drive around it. So the user adoption is absolutely huge. Very quickly we can get our customers up and running and live. I think we would also very much like to look at the reach that, Apple has within their retail environment to small business, etc. That's very early days and ongoing discussions, but the ability for us to expand our reach into the market by leveraging the key relationships that we're able to drive as SAP. >> I would think that certainly an SAP anywhere customer would be exciting not, as you said, because their customers are using those devices, and they may themselves also be using those devices, but because Apple has shown what a combination of digital and brick and mortar can mean from an experience standpoint. Do you anticipate that this partnership is going to allow a mom and pop shop somewhere to adopt certain elements of that experience in their businesses? >> Yes, absolutely. And I think it's from two elements, you know? You have the devices, you have the physical capabilities, you also have the mechanisms that are allowed. So if we look at our software, you could buy something online, okay? You go into the equivalent of the Apple store, we're talking a mom and pop shop, the small independent trader, actually that order has been sent through to their device. They're working on an iPad as a point to sale. So, they actually see that the order's coming in, they're expecting you, they can have the order read. You can walk in, you can pay, we partner with Paypal, as well, so you could pay using your phone near the Paypal here device with their NFC technology. So actually, your whole transaction, you may have bought the product on the phone, on the train because we're mobile responsive. You've gone to the store, you've paid for it with the phone, you're given the product. What we can then do is, like any Apple store, "Would you like us to email you a receipt?" You don't want a physical paper copy, have it emailed. Provide the feedback, go on social media, share the news of what you bought so that we then know about you to re-market to you, to enable us to try and expand your purchases with us and breed some customer loyalty with, actually, what is a small business. The large enterprise organizations, the big retailers, they have the capability and the resources to drive that social media, drive that repeat business, ensure that you come back to us in the best way possible by providing the offers based on the learning that we've got from you and many other customers about purchase trend and purchase history. If you consider a small business selling on an independent platform, they may have an e-commerce web store that they're paying $9.99 a month for it, enables the selling of products that's not connected to the retail store. That's not connected to the Amazon platform sale. You may actually buy from each of those, but the typical retailer is not going to have that knowledge that is you that's across all of those platforms. So by bringing the elements of big data together, we're able to tie together who you bought from, where you bought, what are your personal buying trends? What do you like doing? So we can help deliver some intelligence back to that small retailer to re-target to you. And it may well be that you only ever buy off your mobile device, you only ever buy off your phone. So let's make sure that the way we target you with a marketing campaign hits your phone and it hits it at the right time in the right format so that we can really try and drive your business back to us as a small retailer. This is capabilities that really only larger enterprises have had the ability to invest in and to be able to leverage for the last, you know, certainly 10 years. >> So let's talk about the role that the ecosystem is going to play in SAP anywhere. We've heard a lot here at SAP Sapphire about the increasing value of the SAP ecosystem, both SAP, but also to customers. But we've also started hearing about how that ecosystem is valued to other partners, and certainly the S and E universe. Do you anticipate, for example, that a small medium enterprise that has a customer base is going to be able to use SAP anywhere, not only to engage their customers but also to engage adjacent businesses? So perhaps they can, in a location, start to weave together new concepts of services that might have been limited to, before, just the inventory that I had in the store? >> Yes, and I think we'll see it on two levels. We're building out an ecosystem of both larger more strategic partners, the likes we've already talked about. The Googles, the UPSs, the Paypals, etc. We can actually enable our customers and our partners, our solution provider partners to have access to those resources. What we're also looking to do is to build out an ecosystem of solution providers plus sort of more vertical specific partners where they can provide functionality and services within our platform. So we may have a sub-vertical, we may have some functionality that SAP anywhere doesn't necessarily deliver out of the box, but the tool kit that we provide as an application enables you as a partner to build out that sub-vertical capability and deliver it on the platform. Now, what that might do is it might mean that you can then extend that reach into those more location based partnerships, for example, where you are then bringing in additional partners, additional teams, additional services and you could leverage SAP anywhere to help control and mange all of that. As well as be an outlet for your products and also as a solution for you to sell your products on. >> So, last question here and let's talk a bit about the role that strategy is playing as you put this together. So, you're a strategist, you have to engage an enormous number of people, both at SAP, but also within this ecosystem. How are you getting and building that consensus to try to drive everybody in a common direction? >> So, it's a lot of hard work. We take a lot of data feeds, a lot of information, and we try and build a picture of what the market is doing now and also what the trends are moving towards. I'll give you an example. Recently I've been looking at our digital marketing capabilities and where should we be in 18 months, two years time? We've spent a lot of time working with Facebook on how their platform's being leveraged and how they're seeing the trend move. 90% of revenue for small businesses that comes through their advertising comes off a mobile device. So should we focus our resources on providing that mobile capability? On the iPhone, for example. Or do we look at the web-based technology as well? So it's pooling all of this data together, pulling all of the trend analysis together, and actually building a picture of where we're going. So really it's leveraging big data for ourselves to work out where we should be going and actually where we hope to drive our customers. Because, again, the SMB don't necessarily have access to these resources themselves, so it's the likes of us who can pull this data together and really drive the market for the SMB so they can move up in the marketplace and achieve that next level where they may move on to some of the products in the rest of the SAP portfolio. >> Excellent. Toby, SAP anywhere, thank you very much. Great announcement this week, congratulations, and there's a lot of small businesses out there that would love to see main street get resurrected. Precisely because of the new capabilities that you're able to bring to retailers and small businesses everywhere. Once again, Peter Burris, TheCube, SAP Sapphire. A lot more coming, stay with us.

>> Voiceover: Live, from Orlando, Florida, it's theCUBE. Covering SapphireNow. Headlines sponsored by SAP Hana Cloud, the leader in platform as a service, with support from Console, Inc., the Cloud internet company. Now, here are your hosts, John Furrier, and Peter Burris. >> Okay, welcome back everyone. We are here live in Orlando, Florida, for SAP Sapphire coverage from SiliconANGLE Media, theCUBE, our flagship program. We go out to the events, and extract the signal for the noise. Want to give a shout out to our sponsors, who allow us to get here, SAP Hana Cloud platform, Console, Inc., EMC, Cap Gemini, thanks for supporting us. We appreciate it. Our next guest is Mitch Kick, Global Vice President, Head of Strategy and Programs for SAP Global Ecosystem. We love strategy guys because, they get the chess board. And they look like they're always playing chess, 3-D chess. Been looking at the landscape, looking at the horse on the track. Welcome to The Cube. >> Thank you very much. Good to be here. >> It's an evolving ecosystem. It's fluid, but yet, active. The Apple announcement, certainly notable news for SAP. Certainly, the Cloud, mobile, social data trend, the confluence of those things, causing massive innovation surge. So you, got a lot going on. >> Absolutely. >> What is the current ecosystem? >> Well, you know, when you think about the way SAP looks at it's ecosystem, I mean certainly we have those traditional types of partners, who resell our product. But, when we talk about our global ecosystem, we're really talking about those partners who are either strategic service partners, technology partners, some emerging partners and names that you mentioned, like Apple, Uber, Facebook, some of these, they're not your grandfathers, SAP partners. And so, we're really moving to partner in new ways. To co-innovate new types of solutions, that take advantage of the trends in the digital landscape. >> John: Like what are you doing with Facebook? >> Well, Facebook is an example, it's something where we said, "Look, there's all this social data," "that's out there. How do we put that together with" "our Hybris, CEC, types of solutions," "our commerce solutions?". To basically allow marketers to do one-to-one marketing, that leverages the power of Facebook data, and your enterprise data, brings it together in a very manageable tool. >> That must've been a very hard deal, because they're very controlled about their data. And also, each person has their profile settings. So, that's awesome. >> Yeah, and it's something that allows for marketers to just do much more targeting, much more insightful targeting. You know, we announced that last year and over the course of the last year had a number of really interesting pilot examples. >> Can developers get involved in that Or is this more of SAP directly, kind of thing? >> Well that, is an example of where we are creating a solution that sort of packages it turnkey. But, you know when you think something like in Apple, the beauty of that one is, not only are we developing these beautiful industry applications, that are going to be in targeted industries, and I don't know if you saw them, they were out on the floor here. >> Yeah, impressive. >> With regard to retail, or with regard to.. >> Well start-ups will come out of the woodwork just in a short time, have hundreds of employees, with this ecosystem. >> Well, exactly. I guess the point I was making with the Apple deal, is not only are we working with to design some really incredible industry apps, but then we're also creating the software developer kit, making that into the Hana Cloud platform, so that if you're developing on Hana Cloud platform, it now becomes another compelling reason you can leverage these beautiful interfaces, and these beautiful tools, that take full advantage of native capabilities on the Apple devices. And so it's a way that our partnership not only delivers, kind of near-term solutions that matter for us, but enables our broader ecosystem of solution partners to capitalize. >> It's fastest to innovation. I mean, you're going to get more R and D, and then real production apps faster that way. >> Absolutely. >> From the developer. So that's Core. David Valente and I always talk about courses for horses, which is, you know, certain things fit certain ways. There seems to be now, with the Cloud platform, an opportunity for developers to come in. So I want you to explain how Hana fits in. 'Cause this, Hana Cloud and then this Hana Cloud platform. What's the difference between the two? Can you just quickly share what that means to the ecosystem? >> Well, Hana as a database, I mean, the thing about the Hana Cloud Platform is that, that creates platform for our solution partners to extend, and integrate, as well as build and develop on it. And you'd say, "Well, as a platform as a service," "are you guys using HCP, to go out there and win" "the past wars?" In the generic sense of the past, that's really not the intention. The intention is, we've got this huge installed base. We've got these service partners, who are working very closely with their customers to innovate on top of, so that once our customers move to that digital core of S4 Hana, they can use HCP as that extension and integration platform, to tie together a number of different things. And a lot of the things that are, you know, when you think about digital transformation, there is so much activity, and discussion around the customer experience, and architecting a beautiful customer experience, with mobile devices, with you know, targeted types of commerce on the front end. But, what people are coming to realize, I think, is the importance of having that end-to-end. Because, you aren't going to be able to deliver the beautiful experience. And so, the example with, you know I was on a panel yesterday with Uber and Tumi. As an example, Tumi, luxury retailer that wants to create, not only a compelling customer experience that embodies the best of its luxury brand, but also is facing the threat of Amazon Prime Same-Day delivery, in metropolitan areas. And the beauty is, by partnering with Uber, and SAP, we are able to incorporate that seamlessly, as an option for Same-Day delivery. They can deliver in 30 minutes, for seven dollars, it's game-changing. That's an example of where we provide, here at this event, an early window into the type of co-innovation that we are doing. It's sort of like, in the past where you'd think, "Well, SAP has a certain solution footprint," "and we're going to partner with other software companies," "who can plug-in to that footprint.". Now you have, in the new world, where there are industry ecosystems like Uber, platforms that you can capitalize on, it's the business network. You can plug-in business networks to, an overall solution to customers, that's really compelling and that delivers opportunities in ways that we couldn't have imagined a few years ago. >> I want to build on that. So, historically, strategy has been three to five years, tied to asset values, mainly fixed asset values, and how are we going to generate a return in those fixed asset, over an extended period of time. You're describing a world where, whereas especially as those assets become more programmable, they can be applied to a broader array of activities, and opportunities, where the horizon starts to shrink pretty dramatically, the strategic horizon. And it becomes more, "What capabilities do we have?", and "How do we improve those capabilities," "and drive them forward?". And that's a crucial way of thinking about partnerships, is partnerships, as capabilities. I think that's where you were going. >> Absolutely. >> Are you thinking now about partnerships in the ecosystem as crucial capabilities, not only for SAP, but for SAP customers? >> They've always been, in many ways, when you think about, customers need a whole solution. In the past, even when the on-prem software world, you didn't get the whole solution by just buying the software package, it required a lot of additional service. With the Cloud model's that are emerging, it's much more easy to consume the software functionality, but there still is a tremendous amount of on-going innovation, differentiation, customization. And that's why when you look at, a lot of where we're going with our solution, you can hear Mike Getlin talking about our success factors product, and the fact that, "Well, how do partners help us?", "Do our service partners help us in the same way" "of just implementing software?". No. There role is really in integrating and extending it, and creating micro-services on top of it, that then say, "This is a really unique capability" "that's essential for delivering value" "to this particular customer or client.". So, you're now finding that because of our ecosystem, that is getting plugged into these new ways of contributing, we can now have a broad array of contribution. People understand how they can plug-in and capitalize on that, and deliver real innovation and benefit to the end customer. >> So you look a lot at industry trends. As you walk the floor here, what trends are starting to emerge, for you, and what is getting you excited, as a strategist? >> From my standpoint, when you think about digital transformation, and honestly, we were joking a lot about this whole term, because when it first game out, it was sort of like, "I'm not familiar with anyone who's actually" "doing analogue transformation.". All IT is digital. We've been doing digital things for years. And transformation, I mean, I was involved in the early '90s and the big re-engineering wave. Right? Where you're re-engineering, using technology and what not, so what is really different here? And I think what we see, is that, through all these trends, there's sort of confluence of them, and people map out a dozen, two dozen different trends that are going to change the world, they speak breathlessly about all these things. But in the end, what difference does it really make? From my standpoint, it's really three. One is you're starting to see all these things change the customer experience, fundamentally. Right? To the real-time, mobile devices, one-to-one. That's being enabled now. You're also seeing the difference in how value is delivered, in terms of IOT, instrumenting the broader landscape, etc. And you're seeing a difference in business models, in terms of how value is captured. You can think about it as, "Well, how is value consumed?", "How is value being delivered?", "How is value being captured?". The real, so what, is that all these different individual technology trends are combining to make those differences happen, that enable completely different ways of making money, of growing of opportunity. >> It changes the analogue, where, the analogue piece used to be the transactional, digital then hands off to analogue, or vice versa. That whole thing, end-to-end you just talked about, is an end-to-end digital. But the analogue role of the person, is augmented differently. So what you said is interesting because, I think people look at it differently and say, "Hey, if it's digital end-to-end," "where does analogue fit in?". Well still, people walking around here at the show, we're face-to-face, so I think it's interesting when you look at the optimization of digital. I'll take sales leads, for instance or marketing automation. You know, get the form, pass the leads to the sales people, they go knock on the door, call, email, that's analogue transaction. That's now digital. >> Mitch: Right. >> But the still, analogue components. What's your thoughts on that? How do you look at it? 'Cause you still got to do business, the people still are going to be involved. >> That really hit home when we were talking about this Uber example, because everybody talks about Tumi, they were talking about, "Well, its a beautiful experience." for somebody to be able to then say, "I got a one-hour delivery.". We can all identify with going to a retail outlet and they say, "Oh, I'm sorry, we don't have any more" "of those in the store, but we've got one" "that's 40 minutes away, if you want to go drive there.". Well, what if now all of the sudden you can get the product in to this store, in the next 30 minutes? Or, deliver it to wherever you happen to be, in 30 minutes? That changes the game. >> John: And that's user experience. >> Yeah. But, the thing is, so that's nifty, that's great, it's really compelling. But, when you start thinking about what it would take to work this, okay? Well now, you're going to have to have an implication for those retail store people. And so, this notion of, "How are we making this" "a beautiful experience for the retail clerk?", who now, instead of just serving the store, is going to get pinged because, "Hey, wait a minute," "we've got some deliveries that you're going to have to" "pick and pack, to get ready for some Uber driver" "to come in." That's a change to them. So, when you talk about implication, that highlights all of the, "change management", all of the, "how does it make a difference" "in individuals work?", and there's always going to be that last mile engagement that is needed. And that's really when you start talking about trends, how do we see things changing, I think about our service partners, I see their role changing to enable the real business change. >> Well that's it, that's it. The impact is clear. Totally agree, 100%. It's the confluence that magnifies that change, and its massive. It's frickin' awesome. Everyone can look at it and say, "Damn, its going to be big!". My final question to you is, given that impact, what advice are you sharing with your ecosystem, in terms of how to prepare for it? How to be ready not to go out of business, or help your customers not go out of business? And enable them to actually compete, digitally, in the transformation. >> Well, when we look at it, part of the challenge is that the ecosystem is so diverse, that you know, often your guidelines are speaking to specific people. The one thing I would say is, everybody is going out and talking a digital message, we need to be on the same song sheet. So when your solution partner, or service partner, and you've got your own offerings, your own reference architecture's, et cetera, let's work together to make sure that we are all singing from the same sheet. Second thing is, it's really imperative that we, basically migrate our installed base, to the digital core. So, S4 Hana, getting enabled around that, making that change happen, that enables all sorts of other benefits. And the third thing would be, the importance of then leveraging Hana Cloud platform. Because, the integrations that were hard coded, from yesterday, are no longer valid. So, if you leverage Hana Cloud platform from integration standpoint, you're really allowing for this much more agile, and fluid, innovation cycle to happen, in a much faster clip. And that's really what our customers are going to need, and it's going to take all of us working together to deliver that promise, of digital transformation. >> Well the Apple deal puts you guys front and center, on the user experience side, consumerization of IT. The chess board, multiple dimensions of chess, going on at the SAP ecosystem. Mitch, thanks for coming on. >> Absolutely. >> Welcome to The Cube Alumni Club. This is The Cube here live at Sapphire, we'll be right back. You're watching, The Cube.

>> Voiceover: Live From Orlando Florida, It's The Cube Covering Sapphire Now, headlines sponsored by SAP HONA Cloud the leader in platforms service. With support from Consol Inc. the Cloud internet company. Now here are your hosts, John Furrier and Peter Bouris. >> OK, welcome back everyone. We are here, live in Orlando for day 3 coverage of SAP SAPPHIRENOW. This is the Cube, Silicon Angle's flagship program where we go out to the events and extract the signal from the noise, I'm John Furrier with my co-host Peter Bouris. Want to give a shout-out to our sponsors who allow us to get down here and bring in our crew. SAP HONA Cloud platform, Console Inc., Capgemini and EMC, thanks so much for supporting us. Our next guest is David Ludlow who's the Group Vice President of Solution Management at SAP Success Factors. Welcome to The Cube. >> Thanks, great to be here. >> First time on the Cube, he will now Cube Alumni >> Yes >> Success, not your big show here. You got the big show, for you guys in Vegas. SuccessConnect on the 29 August get the plug out there for folks who want to sign up for it. >> Thank you. >> And if you're interested in HR. But certainly a big part of system of record HR has known processes, but now with mobile and this Apple relationship, I think you might see some spawns, all kinds of opportunities around service management, role of the employee, role of the mentor and the bosses, how people are engaging What is that dynamic? What is the digital transformation for you guys? >> So I think with HR systems you're going to have to take a step back and say that with HR Solutions Technology they touch nearly, if not everybody in the organization in some manner. Though, I, every HR has to maintain information about employees, and there's been a big push over the past few years to enable employees enable managers to access that information more closely. However, because of that, HR systems have typically much higher thresholds of usability, engagement and such, for the employees that use them. >> John: Like how, give an example. >> So, I'll give you a direct example, in that when employees come to work on Monday morning they typically take a step backwards in the business systems they use over the consumer systems they used over the weekend. So, the new threshold for businesses >> John: Threshold for the users? >> Yes, exactly >> OK, got it. >> When was the last time you went to work and actually used systems like the >> I can't wait to download th >> correct >> exactly Well that's also another dynamic I want to get your thoughts on, and this came out, certainly over the last, few years most recently in Silicon Valley the lawsuit about discrimination and women and tech about managing employees, has always been a kind of older model and no-one loves to do performance reviews but yet now there's more data around, there's social graph and interest graph and so you're seeing new data things happening, where you can actually look at someone's performance outside of the manual process. >> Absolutely. >> Can you share some of this trend and how important this might be? >> So, we're fundamentally looking at the performance management performance review process, I mean I don't think you can pick up an HR Journal today without seeing some kind of headline about Kill Your Performance Reviews, and performance reviews are a thing of the past, but the bottom line is, it's important for company's to know, who their top performers are. So it's, we still want to know who they are, it's just the process to get there that's been kind of, broken. So, to go back to that concept of engagement, if I can do continuous performance, performance management more continuously, if I can facilitate week to week discussions between managers and employees, have those check ins, have those tracking of achievements and activities, I can get to the end result much more effectively, without that dreaded year-end process, that really everybody hates, about having to scramble >> Can they mail in the data too, so cutting and pasting from the other guy. >> Exactly, exactly I've done them myself, and you send those frantic mails to everybody that says okay, what does that person do so I can put it in the performance review. You know that's the kind of idea about the engagement and leveraging some technology to do a better outreach, I would say to employees, make it more continuous. You know, think of the social network type software and solutions that we see. We go there because we want to. And I think >> Well the data is gold right? I mean you look at it, you can actually see who doesn't show up to meetings. >> Absolutely >> I mean it's like this data, that's real data. >> And I think you can even take that to the next level with some of these things and one of the announcements we did make here at SAPPHIRE was some work were doing in diversity and inclusion, which is a huge topic in HR right now. And actually looking at data within the organization, and not just promotions, terminations, that kind of thing, but it is there subtle unconscious bias in the way the job descriptions are written, in the way that job requisitions for recruiting are written, and these kind of things. So actually to take a step back, use all that data, use that machine intelligence to kind of look at the whole thing, the thing from an entire perspective, say where are these sources of potential bias, and how we... >> [John} That's a big deal actually. That is probably one of the things I hear the most of which is not just the gender issue, but it's also to keep the top performers you have to enable opportunities for them, and match them up properly at the right time. >> Exactly >> Huge challenge >> Exactly. And it is to a company's interests to take a more active role n diversity inclusion and there's studies that show this in that if you have a much wider view from multiple ethnicities, gender, whatever, might be, it's good for the company. Your company, your customers are multi-ethnic, multi-gender, and you bring in the different points of view of multiple people to set a much better strategy. Set a much better engagement, I mean. People today, millennials, they want to work for a multi-diverse cultural company. >> Peter: Well historically HR systems have been programs that comply with the letter of the law. >> David: That's true >> In the past 10-15 years we've talked about moving from just HR which has a narrow view on compensation and employer view, and compliance with those laws, to trying to think more about talent management and I know that's where SuccessFactor was kind of born, >> Correct >> was in the idea that we want to review people but also put in place programs which allow us to develop them better, so we can have a broader quality of individual, including some of the diversity issues. But the SAP ecosystem is starting to, is at least, implicitly, if not explicitly, making a promise to customers that through that ecosystem you will do a, you will have a better insight, do a better job of managing the assets within your business that create value for your marketplaces. Whatever they are. >> Yep >> Cash, physical assets, but increasingly employees, and partnerships. So is SuccessFactors being identified with and SAP as a leader of that charge to find ways or to demonstrate how SAP is going to be able to evolve to do a better job of helping customers overall drive the quality and returns on those crucial assets that generate market and customer value? >> Yes I think you said a couple of things, there were so many you tried to get a couple in, >> Yes I did >> Parfait of results >> Yes, it was. Yeah absolutely. We've seen that trend over the past 15-20 years of HR systems. You know what we say typically is going from system of record to system of engagement. But they have to do both as well. You still have to do employee record keeping, you still have the compliance angle of HR, especially in payroll, benefits and that kind of thing. So those systems need to be much more efficient and much more effective with what they do. Drive out the cost, do things more self service oriented, use machine intelligence to kind of drive complexity out there and let the software take decisions on its own. Then we use that as a kind of foundation to build on some of the more strategic HR things like performance and goals, compensation, recruiting, learning and whatever might be. But now we get into an era, I would say, in the future, of what is the ecosystem look like, because we are putting all this stuff in the Clouds, though, kind, their customers don't have all the on premise technology they used to have to be able to say, okay well we want to do this unique thing and we want somebody to come in and build this unique application, and I think that's where the HONA Cloud Platform comes in, and that's huge for us. I think that what I like to say is no one company can own a monopoly on innovation. And especially with the low barrier of entry today with regard to cloud technologies and cloud platforms including HONA cloud platform around the world, around at the world. Anybody with a good idea, anybody with something unique that they can bring in, build something very quickly, and connect it to an HR system that's huge. >> That's a great point, we just talked to the HONA Cloud Platform guys for service, and they got the developer ecosystem booming, and the Apple deal certainly is going to be a very intoxicating moment for many people who can see the value in some of these white spaces. Give you an example, I talked to a customer last year, big company, and they're on using workday. Big platform, they actually went public to doingwell, the competitor. So, guy says we love workday but this one employee wrote this bad-ass expense report app, that was just so awesome, and it didn't fit into workday, and so we shadow It'd it out in the cloud and so this is the opportunity we're seeing 1000 times over. 1000 flowers are blooming in this kind of use case where someone just gets very domain specific and builds a great app. That's the trend. >> Yep. >> How do you guys fit into that? Is that possible? And how would you address that growing trend, because that might be the case where these white spaces get filled by these amazing use cases. >> As I said, we can't own a monopoly in innovation. >> So can you support that? >> Absolutely. So if we can get technical for a minute, the SuccessFactor's APIs and services are linked into the HONA Cloud Platform. So we invite partners, as well as customers, to come in and build the unique applications on HONA Cloud Platform, that makes them natively integrated, using some of the services from SuccessFactors, and now customers have access to all of this innovation and ideas that are going on in the space around them. So they use us for the core and more strategic level of processes, information, but they have access to all of this other innovation out there. >> So you guys support a data model where if you have an app already in your portfolio that's comprehensive, certainly integrated in throughout your system, and some unique app comes in , fits right in, >> Absolutely, so they can bring it in just through native APIs or the partner can come in and build something new on HONA Cloud Platform. So both options are available. But it's ah, we don't see, us as a model. Look I spent 10 years in product management on the SAP side of things and I can't tell you the long list of requirements we had, it's like you have to do this and this, and this, and this and you'll never get to it, it's just not possible. >> It's your heart. To get it right as a suite, do your best to be comprehensive but you gota be always updating. There's going to be scenarios where people are going to do a really interesting tool or point solution >> yeah, that's it. >> This is great, and it's not a stand-alone venture, maybe. They might not get the zillion downloads, it's not consumer because they won't get the downloads for it on the itunes store so they have to fit in with the data, that's the key. >> Yeah, yeah, exactly. I mean it does have to logically link to some of the stuff. It has to consume HR data, so I need employee data, I may need organizational structures, but that's really... >> My next question for you is kind of a high level global question. Take a step back, lean back and kind of dream a little bit. Help me dice out the future of work narrative. There's that bumper sticker everyone's talking about, the future at work in collaboration software. What's really going on? What is the real change that's most relevant around this notion of future of work and share your thoughts on that, spend a minute to dig into it. >> And we've actually done some research with an organisation called Oxford Economics, to do some surveys global surveys on this. I think the future work is it's all about digital. There's all of these digital technologies coming in, there's change and technology change happening faster and faster and faster. One of the surveys that we did, looked at we surveyed employees and said what is your number one concern at work? And the number one answer 40% out of all employees said obsolescence was their key fear. And I think that that speaks to this fast pace of change in that we have to keep employees learning, we have to continue to provide education programs, so that they feel upskilled, they have those opportunities. They know where the company's going and what they'll need, to be relevant to the company. And I think this ties in... >> But is that the number one issue? >> It's one of the big issues that we see. I would say from the employee perspective, what they're concerned about, from a company perspective, it is all about digital. It's how am I going to use mobile technology. How am I going to get around the security challenges with some of that. HR data is sensitive so we need to be careful. How am I going to use insight, analytics, machine learning. How am I going to build this ecosystem as well. There is a tremendous amount of digital technology coming into HR and I this is what a lot of companies are looking at. How are we going to leverage this stuff most effectively to make the employees, the managers, the executives lives easier and more informed. >> So, if you think about it then ultimately what we're talking about is a big part of your mission is to help companies make their employees more productive, by doing a better job of identifying the strongest ones, putting them in positions to continue success, identifying folks that have more potential and you could get more out of the overall any business is the community helping management and employees understand how that community is set up and ultimately how that whole thing can be better applied to serve customers. >> I don't think I could have said it better myself. So it is all of that engagement. It's all employees feeling what we call all in, I mean really committed to the cause and the objectives of the organization. And I think feeling included. So I think that's where the diversity inclusion comes in as well. You said it very well. I think it's all part of the community, and us as the community with a common goal, to advance the objectives.... >> So give me a number one priority for you guys. Big priority. >> Big priority >> Not number one, but a big part of the plan. >> Peter: Well every business is seeking to expose the appropriate elements of its employee communities, to its customer and marketing communities. And doing a better job of that is absolutely essential to increase not only overall productivity but employee satisfaction, or employee engagement, but also customer satisfaction. Because we could talk about computing and machine learning but at the end of the day, more often than not, somebody somewhere is asking a human being a question and that human being is either making that person happy or not. >> You're absolutely right, yeah. >> Peter: So that's incredibly important going forward in business automation is going to help, but automation is not going to solve everything. >> Look, you're right, I mean it's like technology is an enabler, it's not the strategy itself. So you need a strategy first. Technology will help you enable the implementation of that strategy. >> But I think that's a big question for the future of work, right John? >> Yeah, I totally agree. >> As we get more automation what are people going to do in SAP has to be able to support customers where they are in that continuum, also provide some strong leadership on it, and I think this is a mission for SuccessFactor and this is a question. SuccessFactor has to be a technology solution set that helps companies find those appropriate lines. >> Yeah, absolutely right. So that is one of the key focus areas of what we do, is enable organizations to find those employees, to develop those employees, to engage the employees, on an ongoing basis. And to your point about what is it we're looking at, I think the importance of information, the importance, and it's not just information, and I use the word intelligence. It's actually taking information and packaging it, discovering things through machine intelligence, artificial intelligence, whatever might be, and turning it around, and making, don't just throw data at somebody, make a recommendation for them. You know, think of learning,.. >> I think, I mean I agree with you on that. I think the analog aspect of HR has been codified with systems, and now we're looking at a pure end to end digital goal. >> Absolutely >> and that's different, that's outside in. That's not, okay here's what employees should be doing. Managers, here's how you talk o employees, now it's a complete, non-linear equation ... Hey the employees are driving it too. >> Exactly. I mean typically I've got a very linear process. I go from something happens, I have step a, step b, step c, step d. But what if we could bring in machine intelligence into some of this and say you know what, yeah, you go through d, but maybe you want to do e, f, and g as well. Based on the experiences of others, other people did this maybe you might want o do it as well. You know, think you have online buying and that kind of thing. I know what other people did, it knows what other people did, and it gives me those recommendations. >> David >> Well it's generating options for those people. >> Absolutely >> David, I wish we had more time to talk about this and hopefully maybe check out your event. This is a great topic, I think we can go all day long on what IT is going to be in, because if you have all the systems of record, why aren't you running IT, so it's a whole other conversation, that's a half hour segment just in itself. It's my vision. I see that being the case. I'm sure you're probably running IT too all that data on people and their Ids and everything, so, I do want to say, I'll give you a chance to give a plug for the event real quick, to end this segment. >> Yeah SuccessConnect Las Vegas 29 August through 31. Everything there is, everybody wanting to know about HR and SuccessFactor. How to make that move to the cloud, >> Theme, what's your theme? >> Our theme is Overall success is simply human. Okay, SucessFactor being successful on the Cube here. Top perfomer, David, thanks for joining us. Welcome to the Cube Alumni, I'm John Furrier, Peter Bouris. Be right back. You're watching the Cube.

>> Voiceover: Live, from Orlando, Florida, it's theCube, covering SAPPHIRE NOW. Headline sponsored by SAP Hana Cloud, the leader in Platform-as-a-Service. With support from Console Inc. the Cloud internet company. Now, here's your host, John Furrier. >> Hey, welcome back everyone. We are here live at SAPPHIRE NOW, SAP's big user conference. This is theCube, SiliconANGLE's flagship program. We go out to the events and extract the signals from noise. Day three of wall-to-wall coverage, this is day three. We had awesome interviews, go to youtube.com/siliconangle and look for the playlist of SAPPHIRE NOW, it'd be great, great videos out there. We would not be here if it wasn't for our sponsors, so shout out to SAP Hana Cloud Platform, Console Inc., Console Cloud, the Interconnect Companies, for interconnecting the clouds, and, of course, EMC Capgemini, thanks for your support. Our next guest is Uddhav Gupta, who's the Global Vice President for the SAP Platform-as-a-Service. Great to see you, we'll shake hands. >> Good to see you, John. >> So, we have been so excited about Platform-as-a-Service going back, man, almost when the Clouderati started. You know, almost seven years ago, when we started SiliconANGLE. We saw pre-OpenStack, Amazon was already on a trajectory, OpenStack kind of, Rackspace kind of bootstraps that, and then the rest is history, now you have Cloud Foundry, all this stuff is coming together. So, you guys have a big part of that developer ecosystem. >> Yes, we do. >> What do you do for the platforms-of-service for SAP, and what are some of the things you're working on, what should the audience know about that you're working on. >> Absolutely, so, first of all, thank you for having me on the show. We at Hana Cloud Platform, is basically a idea that we came up with to help our customers solve the biggest problem of complicated application development. And when we spoke to the customers, the typical thing that came back to us is, I want to actually integrate applications, right? I have incipient backing systems, I have non-incipient backing systems, how to bring these two systems together? I typically build an application, a mash-up for the audience. The second scenario that we basically solve, is, a lot of customers came back and said, we want to just extend certain business processes that are running on the back end, and you know, build applications that actually sit and extend these processes. So, we started looking at all of that, we said, okay, it's very clear, that we want to simplify the core. But we also wanted to go out and provide a simplified application development stack, so that people actually go out and build these applications. And that's what Hana Cloud Platform is all about. >> So the approach is not so much come from the infrastructure of the service, but come down from the app. Okay, well Larry Ellison, at Oracle, he said as well, well, you come up from the hardware, they got SUN, and then he comes down from the top, and their middleware is Oracle, a similar approach. And that's a great message, because that's his focus, is obviously app, but they got SUN, so they can kind of clean and they can book in the middleware, if you will, or past layer. Um, how do you guys compare vis-a-vis that, because you don't have any hardware. >> Correct. >> You got partners. >> Correct. >> Um, like EMC, then you got the Vblock going back to the day. >> Exactly. >> How do you answer to that? >> So we have always been agnostic in terms of hardware, agnostic in terms of infrastructure. So the angle that we're going with is just like how we did with Hana. We said, we'll build the Hana software, and we'll have it available on multiple different platforms. We are doing the same thing with the Hana Cloud Platform. Today, we offered it off our own SAP data center. The road map is to basically partner with a number of infrastructure providers, like Amazon, like Azio, like other third-party hosting providers-- >> You'd okay the computers? >> Yeah, completely. So if you're actually looking at going ahead and deploying our software on Cloud Form Read, enabling it on OpenStack, so we can actually now take it to all of our infrastructure partners, and use them as suppliers. That way, we can actually concentrate on building a business Platform-as-a-Service layer, concentrate on building the mechanics. Building the intelligence of the Platform-as-a-Service, and leave the infrastructure game to the guys who are really good at that. Which are Amazon, Azio, and a few others. >> So, you guys have Hana, okay, Hana database as well, the platform is Hana Cloud Platform, so, back to the Oracle thing, and I bring up Oracles there, we can relate to that. They claim performance advantage, so Oracle on Oracle, with SUN, has been optimized. It's almost end-to-end stacked. You guys worried about performance at all? Can you share your thoughts on how you answer that? >> Of course, I mean, if you look at the whole team of Sapphire here, that's been about running a business life. You can't run a business life without having performance. So performance is the core of everything that we're doing. Whether it's running a database that's high-speed. Whether it's simplifying the entire application stack, the S/4Hana, running at high-speed. It's also about an innovation cycle around it that needs to also be high-speed. And when we're building the Hana Cloud Platform, we've actually look into those elements continuously, and saying, how can we help application development also run at high-performance? This is around the computer. This is around the database. This is around the tool set that we actually providing our partner ecosystem, as well as the customers, to build custom applications at really high speeds. >> Okay, talk about, um, the Hana Cloud Platform. Expand, and take a minute to explain, because, I think that, you know, seeing on the opening day, you guys aren't getting the kind of credit in the press and in the market, although you're being successful, um, as the cloud. Some people say, oh they have nothin'. Platform-as-a-service, it's just SAP ware. Answer that, explain, take a minute to explain, what you guys have done, in the market, how it's different, and then it does work for non-SAP customers. So, kind of dice that out for us, share that. Take a minute to explain that. >> Absolutely, going to Sapphire, a lot of our customers and a lot of the press, media, also thought that Hana Cloud Platform is just for SAP. Now, after two days of conversations with customers, they quickly realize, that we're not just, like, for SAP, we could actually be the Force.com or the application platform for merging data from SAP and non-SAP, right? So that's the first revelation a lot of the customers have got. I find many of the customers that had this, aha moment, when I was talking to them, and they're like, "Oh, I can actually solve a number of issues with this. "I can actually go out and provide a single "application development layer across "my entire backing system, which is SAP and non-SAP." So we've seen a lot of that reaction. >> So that's an integration game, too. And the thing I would share were the folks at my observation of theCube, and I'd love to get your thoughts on this, is that, it's not trying to win SAP end-to-end. SAP plays well wherever the customer desires it, right? So if they go to ERP, or not ERP. If you want to come and and do, say, HR stuff. And success factors. You're still going to have a little bit of SAP, but this is application layer at the Hana Cloud Platform, is for the rest of the enterprise. It's not to lock in for future SAP, right? >> It's not a lock-in story here, right? I'll give you an example. We are doing some really crazy stuff on Hana Cloud Platform, right. You know the Superbowl that took place in San Francisco. >> Of course, Superbowl 50. >> SAP had a whole fan energy zone set up there, where people were actually playing games. And we are continuously streaming data from those games into the Hana Cloud Platform, right? Now, nothing to do with SAP, nothing to do with anything that even closely SAP's associated with. It's fan data coming to the Hana Cloud Platform. And people seeing analytics on top of it, right? We're having other partners also do similar stuff. I'm talking to partners that are basically going ahead and serving the utility companies, but more on the utility to the consumers piece. With the outlying customers to basically go and create a aggregated view of the consumptions, right? And this is a look at something not what SAP's used to doing. Bringing in the Hana Cloud Platform is allowing them to do such things. >> Alright, so my final question really is around Apple. So, how does the Apple deal affect you guys in particular. Because, you guys can't hide in the shadows anymore. You got to go for- go big or go home with Hana Cloud Platform. So does that change your game in terms if you go to market, is your budget increased? I mean you got, the game is on. The Apple deal puts the pressure on you guys to take that relationship, and use it as a way to get into, obviously means for your development. Swift is a great programming language, got a lot of traction. So tell me, I mean, is it all in now? I mean Apple is Apple that, hey, you got to go for it. Go big or go home. >> Yeah, so, it's definitely go big. The other thing that we have with this whole Apple relationship that we announced, has also made a very beautiful point, if you think about it, right? There're certain applications that can be web applications that you can still render on a mobile device, sure. You can make them extremely responsive, you can do all of that kind of stuff. But the beauty of the IOS and the relationship that we built with Apple, it allows you to start now building native applications that run on the mobile, but consume all the technical services that we have, are made available in the Hana Cloud Platform. >> And the data's critical there, I mean, SAP's got ARP data, systems of record data. And now you're expanding out to other engagement data, non-SAP data by the way. >> Exactly, and all the other technology services that we're basically providing in the Hana Cloud Platform with it's content, with it's data, with it's integration, a whole bunch of stuff, right? >> So is your budget doubled? >> Well the budget is not doubled, definitely right. >> Yeah but you have to, you have to run now so it's pretty clear for you guys, right? I mean, explain, is that the mandate? I mean, because you guys have been kind of like, silent run- I say silent run, not stealth, but I mean you been, chipping away at it, it's been a ground game for SAP Hana Cloud, haven't seen a lot of stuff out there in the market. It seems to me that now, the pressure's on. So go knock it out of the park, right? >> Absolutely, the focus on basically building mobile applications, specific mobile applications, for certain industries, is definitely coming back. So a lot of investment is happening in that space for sure, from SAP, from Apple, also from our partners. So that investment is definitely happening. There's also a lot of traction that we are basically putting on marketing that uh, concept out, so that our partner, the customers also get a true pat forward and a grain in how they should actually invest their resources. >> What's you priorities this year? Education, onboarding new-- >> Our priorities this year is getting a whole bunch of developers to actually start using the Hana Cloud Platform. To that extent, what we've actually done is we've gone ahead and created open SAP courses that allows anybody to access education on Hana Cloud Platform, absolutely free. With the IOS relationship we've gone out and basically created IOS academy. A lot of people understand how to build IOS apps, with the Hana Cloud Platform, thereby bridging the 150,000 developers that are already in the Hana Cloud Platform, the two million developers of the SAP network, and the 30 million developers of the Apple world, all coming together to start building stuff on the Hana Cloud Platform. >> I'm sure you've got some internal debates, like percentage of penetration within that 35 million, I mean, not everyone's going to be interested in enterprise programming but, a good slice will look to build white spaces. >> Absolutely, because, guess what? You can only earn that much money by building consumer apps. The moment you are a developer and you really want to earn serious money, you basically start looking at building enterprise apps. >> Final final question, because I have one more, this is good conversation, uh, where are the white spaces? So the developers that are watching, or people that are interested, in innovating on SAP, where do you guys see the white spaces that are low-hanging fruit right now, that someone can get a position in here and work? >> So, there're a number of those. Uh, the very first one around building industry-specific apps, right? To a large part of the industry, UAX was our SAP gooey. But now, everybody want to actually start digitizing those processes. Nobody actually wants to go into a static screen, or a pre-defined screen. They want it to be very responsive to what they're doing at the moment. It's alive, right? So, building those apps is definitely a white space. The second big white space is around building industry content. What I mean by industry content is, a platform can basically provide you all the platform capabilities that are required. But you need a lot more of the content and the technologies services. This could be matching learning algorithms, this could be actually predictive algorithms, this could be data content that is coming in. Building and providing data as a micro-service within the platform is something that is very interesting for us. >> Thanks so much for coming on theCube, I'll give you the final word Uddhav Gupta, Global Vice President of SAP, Platform-as-a-Service. What's the vibe of the show, you mentioned, what's the hallway conversations that you're hearing. You know, what's going on with the night, certainly at night with all those events going on, last night I went to bed early, watched the Warriors game. Win by 30-something points. Night before I was out til 1:30 doing some networking to Lloyd Bardy, S. Ensher, EY, seeing all the SAP people. Lot of chatter, what are you hearing? What are you hearing in the hallways? >> The vibe is very very positive. People are starting to finally understand how we are bringing all the Cloud acquisitions that we made together. People are starting to understand that they have to move to the Cloud. So the whole thing about the myth, whether we move or do not move to the Cloud, it's now kind of settled down. People are understanding where SAP is with integration, where SAP is with moving to the Cloud. But, the beauty is, last year, same time, the questions I was getting, was is any of this real? The question that we're getting now is, how do I engage into it? How do I start doing it? So that transition's happened really beautifully. Whether you think about S/4Hana, whether you think about Hana Cloud Platform, just in general, what's happening in the past well is helping that quite a lot. >> You guys have done a good job and you've been kind of transitioning, now it's real. You got a straight-and-narrow for developers. I'm looking forward to tracking you guys and seeing the progress. Great hallway conversations, of course the biggest conversation was that Reggie Jackson was on theCube, on day one and he was awesome, also the great executives come on with great conversation. Thanks so much for sharing your insight on theCube, Hana Cloud Platform-as-a-Service. We are live here in Orlando, you're watchin' theCube.

>> Voiceover: The Cube, covering SAPPHIRE NOW. Headlines sponsored by SAP HANA Cloud, the leader in platform as a service. With support from Console, Inc., the cloud internet company. Now, here are your hosts, John Furrier and Peter Burris. >> Okay, welcome back. We are here live in Orlando winding down day two of three days of wall-to-wall coverage, of live coverage of SAPPHIRE NOW. This is The Cube, SiliconANGLE's flagship program. We go out to the events and extract and sift through the noise. I want to give a shout-out to our sponsors who allow us to get here and do all this massive programming, SAP HANA Cloud platform, Console, Inc., Capgemini, and EMC. Thanks to our sponsors, we really appreciate it. Our next guest is Roger Quinlan, Senior Vice-President, global head of the partner-managed cloud at SAP Thanks for joining us, welcome to The Cube. >> Thanks for having me, this is great. >> We love it, so explain what is the partner, partner managed cloud, just to kind of make sure we get the definition out there because you get the partner ecosystem, but this is the managed cloud, the partner managed cloud. >> Right. >> John: Explain what that is. >> So basically it allows, it allows our partners to create cloud offerings, private cloud offerings that they can offer to their clients as software as a service. And obviously SAP technology enables the inside of that, the guts of it. And we typically structure the agreements in, you know, anywhere from two to seven year. Most of them are five year agreements so it's a long-term agreement, good for the partners, helps our clients get into the cloud quickly and easily. >> Explain who those partners are and give an example of how that works because SAP, you had partners, many, many years delivering the apps. But now this platform game with the cloud changes the business models. Who are some of the people that are implementing this? >> Yes, so Capgemini is a great example of one, NTT, Accenture, you know the players that you might think of right there. And there's even some smaller ones, some smaller SIs that are maybe not household names but are doing very good work. >> Specialty boutique kind of, domain expertise. >> Yeah, and even some that are fairly large but are not maybe household names in the US but are big names in Europe, like T-Systems as an example. >> Great, and the vision around this was just to get simplified on the delivery cycle, so with cloud, the goodness of SAP now can be tailored for the end client 'cause these guys are smart, they have data scientists, they have a lot of programming capabilities, they have a cloud knowledge. But they have to deliver a solution to the customers 'cause they are a trusted advisor to your customers. Is that the main reason? What's the push behind all this? >> Yeah, their main reason for us is really to allow us to get into market niches that we don't serve today. So if you think, I'll give you a great example. There was a niche with hospitals, smaller hospitals in southern Africa. And they needed infrastructure to manage the operations of a hospital. They wanted to modernize. They wanted to do the digital transformation, to use the modern buzz-word. And so one of our partners had a very good relationship with a couple of these hospitals and went out and said, hey, you know, if we built a solution, would you use it? And they said sure, so they went out and built it, and you know they started off with one, two, by the time they had it all built they had three. Quickly, they had seven. They're now up to 16 hospitals. It allows us to provide great technology to these hospitals. They can provide better healthcare to their constituents in a market that we otherwise would not be able to serve. So that's one good example of accessing a market that maybe SAP would not have access to. But the integrator, which was T-Systems in this case, that, you know, has great relationships in that community, so it really is leveraging a relationship they already have. >> So I can see the benefits to the customers and the partners 'cause it's clear. Partners can make more money, can have great differentiation to their customers. What's the impact of the SAP sales force? Do they get comped on it? Is there a channel conflict? Because that's going to probably come up. >> It's funny, so you know our market space well enough to know if that's an issue now, right? And it always is, right? So what we've decided to do is, basically the sales organization that has the end customer, they get, basically they get compensated on it. >> So they're incented to play ball. >> Absolutely, there's no disincentive. It's kind of the same if they sold it directly themselves. >> How does the partner managed cloud support the new S/4HANA 'cause that's the big story here. You're talking about ERP, modernized up. It's a big, all the discussions around that, everyone's jazzed up about it. All the hardcore SAP customers are all like, okay, wow. How does that impact this? >> Yeah, so S/4 becomes the technology that most of our partner-managed cloud offerings are utilizing. So what we find a lot is customers out there want, they want to do something new. Maybe they're a Hybris customer today, or they're an Ariba customer today, but now they need to modernize their core. They need to do an ERP. Maybe they didn't have one, or maybe they had an old one and they want to modernize it. S/4 is a perfect way to go deliver that in the cloud to the end client. And so I would say you know maybe a third or 40% of the transactions that we're doin' in the partner-managed cloud space are S/4. >> A lot of your partners, especially some of these big guys, are trying to evolve their business models away from ours-- >> Roger: Yes. >> To IP, so I presume a big part of this is to try to get them to build that IP, proximate to the SAP platform. >> Roger: Yes >> How are you encouraging them to do that? Are you underwriting? Are you financing it in any way? Are you sharing it? How are you getting them, other than just the raw business opportunity, what kind of new business models are you putting in place so the value accretes to your platform from these guys faster? >> Yeah, we're really focusing on verticals and on geographies, so that we don't have overlap. That way it creates a unique differentiator for that particular systems integrator. I talked about the example in southern Africa, but another example would be in Japan in the real estate market. We did a similar thing with a totally different systems integrator, and that allows them to have a unique approach to the real estate market inside of, primarily inside of Tokyo. So what we try and do is try and make sure that we don't have a lot of overlap in geographies and overlap in solution areas, so they get some sort of a competitive advantage and get some runway to run with this for awhile. >> And at what point in time do you find yourself, John asked the question about at least channel conflict with your sales guys but the goal is to have the entire ecosystem work really well together without being encumbered with enormous transaction costs of how these different parts come together. At what point in time does SAP start to have a direct relationship with some of these folks? For example, are you taking responsibility for sending down updates? Are you working to bring new extended or extending the ecosystem into a customer? Or is all that going through the partners that you're working with. >> So I'll answer that in a couple of different ways. So first of all the primary relationship is really between the partner and the end-client. It is their kind of SaaS offering to the client. We provide the technology underneath. So that's one way we do it. The other part of it that kind of keeps this close to SAP is the backend, the maintenance and support. Level one, Level two is still handled by the partner, but we handle level three. So there's still a relationship, when they get stuck and things go wrong or something needs to be fixed, we end up getting involved. But the primary support happens between, with the partner and most of them are very well skilled at being able to handle that level of support. >> But are you also then bringing your ecosystem and your set of partners to them as well? >> Absolutely, yeah, so it's not just the SI world right? So some of these partners really want to be in this game, but they don't have hosting capabilities so we'll do Azure or we'll bring in AWS, and that's a mechanism that's already in a good place for us. >> Well and also, they have a multi-vendor view anyways so they're going to broker the different clouds and intercloud them together. I think, to your point there, I think it's worth double-down on because that was important. Virtustream came out of that concept, so when Virtustream was sold to EMC for billions of dollars, a billion dollars, that ultimately filled the same gap that you guys are doing with this program. They essentially did SAP Cloud and did some tooling up. Now, you're offering, essentially, SAP tech to everybody. Okay, that's cool, so that's just for the folks out there just want to make sure they catch it 'cause that's how big it is in my opinion. >> Can I follow up with one quick point though, John? So let's say the extension, the partner extension programs that you guys have that allow your sales force to sell third-party software from the SAP ecosystem into customers. If a large customer, or if a large partner is a partner of yours and you're standing them up, are they also able to piggyback in those arrangements and start bringing, or do they all have to have separate business arrangements with everybody in the ecosystem, or is there kind of a master agreement that you're bringing to bear so that everybody plays better together because you're kind of overriding the whole thing? >> Yeah, so we like to make this as easy as possible, so we take into the 4,000 items or whatever on our price list, we enable that through this partner managed cloud, that way they don't have to go get individual agreements if they want to, maybe they want to do OpenText or something like that. >> So you're bringing the whole portfolio to their cloud? >> Roger: Yes. >> Tell how the IoT, how this plays in 'cause that's a real sexy market everybody's going after. We heard that's going to be on the second-half of the year. You mentioned some things around that. That's a big focus and a lot of people are using the, I say hype cycle now, which it's legitimate hype, but the apps are coming on a couple of years down the road so the architecture's going on now so people are setting the table for IoT today. Does that fit into this? >> Absolutely, it does, and you heard a little bit about when you talked to Mark right before I came on. He talked a lot about the platform, on a cloud platform that his group is responsible for and really that becomes a leverage point. So on a cloud platform can be a part of this, and oftentimes they want to do the enablement on top of that kind of cloud platform because they want to be able to extend. The great part about S/4 is that it's standard, and it's industry specific, and it's simple to operate. But that also means that some companies have a lot of customizations that need to be part of their solution to their end-clients. And so how do you do that? You do that with HANA cloud platform, and sometimes that becomes an IoT play as well. >> Yeah, that enable them to at least have some headroom. >> Yes. >> (laughs) Future proofing, whatever term they want to use. Okay, tell about the vision of digital transformation because this really becomes an interesting business model question. How does a digital transformation vision that SAP as a company is going down relate specifically to your area, and how does that relate to the business model of the customers? What are you guys doing? Is there any kind of new things? Is it an incentive comp, obviously the sales gets comped but options to the customer? Where's the margins? Is it a discounted sliding scale? All of these are the questions that are popping through my head right now. I'm the partner, what's in it for me? I got to make some cash so-- >> Yeah, so what's in it for the partner is they get a long-term relationship with the end-client, and oftentimes they bring a relationship with that client already, and now they're extending it, and it's a very sticky relationship because when you start on an SAP program, that's not something you switch in and out every couple of years. So that's one of the benefits to the partner. And I will say the part about digital transformation, everyone wants to transform their business. Not everyone is able to, but most companies want to do that. This becomes the digital core, right? You use S/4 as the digital core, and you can get into it quickly. And if it's an industry based solution that this partner is now providing to multiple clients, they can implement it quicker. >> They can standardize on it. >> Yeah, they can standardize on it, and then they can do hospital one, hospital two, all the way to hospital 16 a lot quicker, right? One or two maybe take you some time, but by the time you get to the 16th or 17th, it's going really fast, so it enables a faster time to market for the end-client, and you know that digital is all about speed. >> Yeah, if they're building Lego blocks, and they build their own, they cast it out and they build more of them and just ship them out. >> You mentioned another item. You know there are some customers that have been using SAP Solutions for a long time, and maybe they're not using all of them any more or maybe they've gone off maintenance, that's a topic. We've been able to use this tool as a way to bring the customers back. So maybe they ran ERP way back when it was release four or 4.5 back, you know, back in the 90's. They got away from it for whatever reason, but now they're really excited about S/4 and they want to come back. This is a mechanism to allow us to do it and do it quickly. >> And also they get basically rebooted or reset on the new platform. >> Yep. >> But also you get net new customers out of this. >> Absolutely. >> So it's not like you're recycling the same SAP customers, certainly the churn might be helped a little bit. Now, that's the thing that I'm going to look at is those new customers, and I think they're going to be attracted to things like the Apple announcements. How does that impact you? Are you affected by that? Certainly the glowing afterglow of the announcement will be good. >> It's pretty cool, isn't it? >> John: But does it directly affect your business? >> It will absolutely affect it because the whole concept about that agreement is to develop applications that enhance the user experience and to the extent that we can leverage all of that better user experience, in a faster time to market, get to the cloud quicker, that's all good news for the end client. >> We're finally going to have a remote desktop on the phones that actually works, seamlessly. >> Yeah, real rendering, as opposed to shadow rendering. >> All right, final question, what's your take on SAP this year, thoughts share with the audience who couldn't make it. They might be watching this live or on-demand. What's 2016 SAPPHIRE NOW all about? >> Well 2016 SAPPHIRE NOW, in a lot of the keynotes, was really about kind of exposing a more, you know, a more honest, a more upfront conversation. We saw it in they keynotes. You know, Bill McDermott, our CEO, put his e-mail address out on a keynote with 30,000 people in the crowd and then you know a 100,000 or so watching, right? That's a pretty bold thing to do. And so I think you're trying to see, you're seeing SAP trying to become more human, trying to have more empathy. You know, we're a big company. We do some very cool things. We run a serious business, right? But being able to do that in a very human way is what I'm seeing here on the show floor. >> Final question, final, final question 'cause that was the second final question, what KPIs are you going to look at on the scoreboard to benchmark your success where you say, hey, we hit a grand slam? You know, is it the number of partners? What are the simple metrics that give you an indicator that you're winning, you're achieving your objectives? What are some of the things you look at to kind of get a feel for if it's working or not? >> Yeah, I want to see multi-client agreements that we put together where they have more than one client, where we've established what the multi-client agreement is going to be and we actually are executing against that. That's one. Two, I want to see customers going live and getting productive results out of it. And revenue growth is obviously always something we watch, but that's kind of tertiary to the first two. And if we do the first two, the partners are going to be successful. They'll get sticky with their clients. The clients will be happy because they get a faster time to market and that's how this grows. >> So it's really who stands up what solutions is really going to be the benchmark. >> And focus on, it is all new markets for us I think. >> John: Roger Quinlan, thanks so much for coming on The Cube. Really appreciate the insight. You got a big job, exciting. I think it's going to be a greenfield opportunity with your existing clients in a new way, a new business model innovation, congratulations. >> Great, thanks for having me. >> Okay, we're in The Cube here. You're watching day two coverage of SiliconANGLE Media's The Cube. I'm John Furrie with Peter Burris. Thanks for watching. >> Voiceover: They'll be millions of people in the near future that want to be involved in their own personal well-being and wellness. Nobody wants to age in a way that we're bound to a chair or a bed.

>> Voiceover: From Orlando, Florida, it's theCube, covering Sapphire now, headline sponsored by SAP, Hana, the Cloud, the leader in Platform as a service, with support from Console Inc, the cloud internet company, now here are your hosts, John Furrier, and Peter Burris. >> Hey welcome back everyone, we are here live at SAP Sapphire in Orlando, Florida, this is theCube, Silicon Angle Media's flagship program, we go out to the events and extract the scene of the noise, I'm John Furrier with my co-host Peter Burris, our next guest is Matt Hayes, VP of SAP Business, Attunity, welcome to theCube. >> Thank you, thank you so much. >> So great to have you on, get the update on Attunity. You've been on theCube many times, you guys have been great supporters of theCube, appreciate that, and want to get a little update, so obviously Attunity, it's all about big data, Hana is a big data machine, it does a lot of things fast, certainly analystics being talked about here, but how do you guys fit in with SAP, what's your role here? How does it fit? >> Sure sure, well I think this is our ninth of tenth time here at Sapphire, we've been in the ecosystem for quite some time, our Gold Client solution is really designed to help SAP customers move data from production to non-production systems, and now, more throughout the landscape, or the enterprise even, so as SAP's evolved, we've evolved with SAP and a lot of our customers get a lot of value by taking real-life production data out of their production system, and moving that to non-production systems, training, sandbox, test environments. Some customer's use it for troubleshooting, you know, you have a problem with some data in production, you can bring that into a non-production system and test that, and some scrambling capabilities as well. Most SAP customers have a lot of risk if their copying the production data into non-production systems that are less secure, less regulated, so some of the data scrambling or obfuscation techniques that we have make it so that that data can safely go into those non-production systems and be protected. >> What's been your evolution? I mean obviously you mentioned you guys been evolving with SAP, so what is the current evolution? What's the highlight, what's the focus? >> So, obviously Hana has been the focus for quite some time and it still is, more and more of our customer's are moving to Hana, and adopting that technology, less so with S4, because that's kind of a newer phase, so a lot of people are making the two step approach of going to Hana, and then looking at S4, but Cloud as well, we can really aid in that Cloud enablement, because the scrambling. When we can scramble that sensitive data, it helps customer's feel comfortable and confident that they can put vendor and customer and other sensitive data in a Cloud based environment. >> And where are you guys winning? So what's the main thrust of why you guys are doing business in the SAP ecosystem. >> So with SAP you're always looking to do things better. And when you do things better, it results in cost savings on your project, and if you could save money on your project and do things smarter, you free up peoples time to focus on the fun projects, to focus on Hana, to focus on Cloud, and with our software, with our technology, by copying that data and providing real production data in the development and sandbox environments, we're impacting and improving the change control processes, we're impacting and improving the testing processes within companies, we're enabling some automation of some of those processes. >> Getting things up and running faster in the POC or Development environment? Real data? >> Yeah because you can be more nimble if you have real production data that you're working with while you're prototyping, you can make changes faster, you can be more confident in what you're promoting to production, you can be avoiding having a bad transport or a bad change going into the production environment and impact your business. So if you're not having to worry about that kind of stuff, you can worry about the fun stuff. You can look at Hana, you can look at Cloud, you can look at some of the newer technologies that SAP is providing. >> So, you guys grew up and matured, as you said, you've grown as SAP has grown, SAP used to be regarded as largely an applications company, now SAP, you know the S4, Hana platform, is a platform, and SAP's talking about partnerships, they're talking about making this whole platform even more available, accessible, to new developers through the Apple partnership etcetera, creates a new dynamic for you guys who have historically been focused on being able to automate the movement of data, certain data, certain processes, how are you preparing to potentially have to accommodate an accelerated rate of digitization as a consequence of all these partners, now working at SAP as a platform? >> That's a great question, and it's actually, it aligns with Attunity's vision and direction as well, so SAP, like you said, used to be an applications company, now it's an applications company with a full platform integrated all the way around, and Attunity is the same way, we came to Attunity through acquisition, and bringing our SAP Gold Client technology, but now we're expanding that, we're expanding it so that we can provide SAP data to other parts of the enterprise, we can combine data, we can combine highly structured SAP data with unstructured data, such as IOT Data, or social media streams in Hadoop, so the big data vision for Attunity is what's key, and right now we're in the process of blending what we do with SAP, with big data, which happens to align with SAP's platform. You know SAP is obviously helping customers move to Hana on the application side, but there's a whole analytics realm to it, that's even a bigger part of SAP's business right now, and that's kind of where we fit in. We're looking at those technologies, we're looking at how we can get data in and out of Hadoop, SAP Data in and out of Hadoop, how we can blend that with non SAP Data, to provide business value to SAP customers through that. >> Are you guys mainly focused on Fren, or are you also helping customer's move stuff into and out of Clouds and inside a hybrid cloud environment? >> Both actually, most SAP customer's are on Premise, so most of our focus is on Premise, we've seen a lot of customers move to the Cloud, either partial or completely. For those customers, they can use our technology the exact same way, and Attunity's replication software works on Prem and in the Cloud as well. So Cloud is definitely a big focus. Also, our relationship with Amazon, and Red Shift, there's a lot of Cloud capabilities and needs for moving data between on Premise and the Cloud, and back and forth. >> As businesses build increasingly complex workloads, which they clearly are, from a business stand point, they're trying to simplify the underlying infrastructure and technology, but they're trying to support increasingly complex types of work. How do you anticipate that the ecosystems ability to be able to map this on to technology is going to impact the role that data movement plays. Let me be a little bit more specific, historically, there were certain rules about how much data could be moved and how much work could be done in a single or a group of transactions. We anticipate that the lost art of data architecture across distances, more complex applications, it's going to become more important, are you being asked by your customers to help them think through, in a global basis, the challenges of data movement, as a set of flows within the enterprise, and not just point to point types of integration? >> I think we're starting to see that. I think it's definitely an evolving aspect of what's going on as, some low level examples that I can share with you on that are, we have some large global customers that have regional SAP environments, they might run one for North America, one for South America, Europe, and Asia-Pacific. Well they're consolidating them, some of those restrictions have been removed and now they're working on consolidating those regional instances into one global SAP instance. And if they're using that as a catalyst to move to Hana, that's really where you're getting into that realm where you're taking pieces that used to have to be distributed and broken up, and bringing them together, and if you can bring the structured enterprise application data on the SAP side together, now you can start moving towards some of the other aspects of the data like the analytics pieces. >> But you still have to worry about IOT, which is where are we going to process the data? Are we going to bring it back? Are we going to do it locally? You're worrying about sources external to your business, how you're going to move them in so that their intellectual property is controlled, my intellectual property is controlled, there's a lot of work that has to go in to thinking about the role that data movement is going to play within business design. >> Absolutely, and I actually think that that's part of the pieces that need to evolve over the next couple of years, it's kind of like the first time that you were here and heard about Hana, and here we are eight years later, and we understand the vision and the roadmap that that's played. That's happening now too, when you talk to SAP customers, some of them have clearly adopted the Hadoop technology and figured out how to make that work. You've got SAP Vora technology to bring data in and out of Hana from Hadoop, but that stuff is all brand new, we're not talking to a lot of customers that are using those. They're on the roadmap, they're looking at ways to do it, how to do it, but right now it's part of the roadmap. I think what's going to be key for us at Attunity is really helping customers blend that data, that IOT data, that social media stream data, with structured data from SAP. If I can take my customer master out of SAP and have that participate with IOT data, or if I can take my equipment master data out of SAP and combine that with Vlog data, IOT Data, I can start really doing predictive analytics, and if I can do those predictive analytics, with that unstructured data, I can use that to automate features within my enterprise application, so for example, if I know a part's going to fail, between 500 and 1000 hours of use, then I can proactively create maintenance tickets, or service notifications or something, so we can repair the device before it actually breaks. >> So talk about the, for the folks out there who want to kind of know the Attunity story a bit more, take a minute to explain kind of where you fit in, and where you, where SAP hands off to you, and where you fit specifically because big data management, there's are important technologies, but some say, well doesn't SAP have that? So where's the hand off? Where do you guys sister up against these guys the best? How should customers, or potential customers, know when to call you and what not. >> So, I often refer to SAP as a 747 Jumbo Jet right? So it's the big plane, and it's got everything in it. Anything at all, and all that you need to do, you could probably do it somewhere inside of SAP. There's an application for it, there's a platform for it, there's now a database for it, there's everything. So, a lot of customers work only in that realm, but there's a lot of customers that work outside of that too, SAP's an important part of the enterprise landscape, but there's other pieces too. >> People are nibbling at the solution, not fully baked out SAP. >> Right, right. >> You do one App. >> Yeah, and SAP's great at providing tools for example, to load data into Hana, there's a lot of capability to take non-SAP source data and bring it into Hana. But, what if you want to move that data around? What if you wanted to do some things different with it? What if you wanted to move some data out and back in? What if you want to, you know there's just a lot of things you want to be able to do with the data, and if you're all in on the SAP side, and you're all into the Hana platform, and that's what you're doing, you've probably got all the pieces to do that. But if you've got some pieces that are outside of that, and you need it all to play together, that's where Attunity comes in great, because Attunity has that, we're impartial to that, we can take data and move it around wherever, of course SAP is a really important part of our play in what we do, but we need to understand what the customers are doing, and everyday we talk to customers that are always looking, >> Give an example, give it a good example of that, customer that you've worked with, use a case. >> Yeah, let's see, most of my examples are going to be SAP centric, >> That's okay. >> We've got a couple of customers, I don't know if I can mention their names, where they come to us and say, "Hey we've got all this SAP data, and we might have 30 different SAP systems and we need all of that SAP data to pull together for us to be able to analyze it, and then we have non-SAP data that we want to partner with that as well. There might be terra-data, there might be Hadoop, might be some Oracle applications that are external that touch in, and these companies have these complex visions of figuring out how to do it, so when you look at Attunity and what we provide, we've got all these great solutions, we've got the replication technology, we've got the data model on the SAP side to copy the SAP data, we now have the data warehouse automation solution with Compose that keeps finding niche ways to work in, to be highly viable. >> But the main purpose is moving data around within SAP, give or take the Jumbo Jet, or 737. >> Well sometimes you just got to go down to the store and buy a half gallon of milk, right? And you're not going to jump on a Jumbo Jet to go down and get the milk. >> Right. >> You need tooling that makes it easy to get it. >> Got milk, it's the new slogan. Got data. >> Well there you go, the marketing side now. >> Okay so, vibe of the show, what's your take at SAP here, you've been here nine years, you've been looking around the landscape, you guys have been evolving with it, certainly it's exciting now. You're hearing really concrete examples of SAP showing some of the dashboards that McDermott's been showing every year, I remember when the iPad came out, "Oh the iPad's the most amazing thing", of course analytics is pretty obvious. That stuffs now coming to fruition, so there's a lot of growth going on, what's your vibe of the show? You seeing that, can you share any color commentary? Hallway conversations? >> Yeah, Sapphire's, you know, you get everything. You know it's like you said, the half gallon of milk, well we're at the supermarket right now, you need milk, you need eggs, you need flowers, whatever you need is here. >> The cake can be baked, if you have all the ingredients, Steve Job's says "put good frosting on it". (laughs) That's a UX. >> Lots of butter and lots of sugar. But yeah there's so many different focuses here at Sapphire, that it's a very broad show and you have an opportunity, for us it's a great opportunity to work with our partners closer, and it's also a good opportunity to talk to out customers, and certain levels within our customers, CIO's, VIP's. >> They're all together, they're all here. >> Right exactly, and you get to hear what their broader vision is, because every day we're talking to customers, and yeah we're hearing their broader vision, but here we hear more of it in a very confined space, and we get to map that up against our roadmap and see what we're doing and kind of say, yeah we're on the right track, I mean we need to be on the right track in two fronts. First and foremost with our customers, and second of all with SAP. And part of our long term success has been watching SAP and saying "okay, we can see where they're going with this, we can see where they're going with this, and this one they're driving really fast on, we've got to get on this track, you know, Hana. >> So the folks watching that aren't here, any highlights that you'd like to share? >> Wow, well you guys said yourself, Reggie Jackson was here the other night, that was pretty fantastic. I'm a huge baseball fan, go Cubby's, but it was fun to see Reggie Jackson. >> Park Ball, you know you had a share of calamities, I'm a Red Sox's man. >> Yeah you're wounds have been healed though (laughs). >> We've had the Holy Water been thrown from Babe Ruth. It was great that Reggie though was interesting, because we talk about a baseball concept that was about the unwritten rules, we saw Batista get cold-cocked a couple of days ago, and it brought up this whole unwritten rules, and we kind of had a tie in to business, which is the rules are changing, certainly in the business that we're in, and he talked about the unwritten rules of Baseball and at the end he said, "No, they aren't unwritten rules, they're written" And he was hardcore like MLB should not be messing with the game. >> Yeah. >> I mean Batista got fined, I think, what, five games? Was that the key mount? >> Yeah, yup. >> Didn't he get one game, and the guy that punched him got eight. >> That's right, he got it, eight games, that's right. So okay, MLB's putting pressure on them for structuring the game, should we let this stuff go? We came in late, second base, okay, what's your take on that? >> Well I mean as a Baseball fan I love the unwritten rules, I love the fact that the players police the game. >> Well that's what he was talking about, in his mind that's exactly what he was saying. That the rules amongst the players for policing the game are very, very well understood, and if Baseball tries to legislate and take it out of the players hands, it's going to lead to a whole bunch of chaotic behavior, and it's probably right. >> Yeah, and you've already got replay, and what was it, the Met's guy said he misses arguing with the umpires, and the next day he got thrown out (laughs). >> Probably means he wanted to get thrown out, needed a day off. What's going on with Attunity, what's next for you guys? What's next show, what's put on the business,. >> So, show-wise this is one of our most important shows of the year, events of the year, well I'll always be a tech-head, tech-heads are very targeted audience for us, we have a new version of Gold Client that's out a bit later this month, more under the hood stuff, just making things faster, and aligning it better with Hana and things like that, but we're really focused on integrating the solutions at Attunity right now. I mean you look at Attunity and Attunity had grown by acquisition, the RepliWeb acquisition in '11, and the acquisition of my company in 2013, we've added Compose, we've added Visibility, so now we've got this breath of solutions here and we're now knitting them together, and they're really coming together nicely. The Compose product, the data warehouse automation, I mean it's a new concept, but every time we show it to somebody they love it. You can't really point it at a SAP database, cause the data mile's too complex, but for data warehouse's of applications that have simple data models where you just need to do some data warehousing, basic data warehouses, it's phenomenal. And we've even figured out with SAP how we can break down certain aspects of that data, like just the financial data. If we just break down the financial data, can we create some replication and some change data capture there using the replicate technology and then feed it into Compose, provide a simple data warehouse solution that basic users can use. You know, you've got your BW, you've got your business objects and all that, but there's always that lower level, we're always talking to customers where they're still doing stuff like downloading contents of tables into spreadsheets and working with it, so Compose kind of a niche there. The visibility being able to identify what data's being used and what's not used, we're looking at combining that and pointing that at an SAP system and combining that with archiving technology and data retention technologies to figure out how we can tell a customer, alright here's your data retention policies, but here's where you're touching and not touching your data, and how can we move that around and get that out. >> Great stuff Matt, thanks for coming on theCube, appreciate that, if anything else I got to congratulate you on your success and, again, it's early stages and it's just going to get bigger and bigger, you know having that robust platform, and remember, not everyone runs their entire business on SAP, so there's a lot of other data warehouses coming round the corner. >> Yeah that's for sure, and we're well positioned and well aligned to deal with all types of data, me as an SAP guy, I love working with SAP data, but we've got a broader vision, and I think our broader visions really align nicely with what our customers want. >> Inter-operating the data, making it work for you, Got Data's new slogan here on theCube, we're going to coin that, 'Got Milk', 'Got Data'. Thanks to Peter Burris, bringing the magic here on theCube, we are live in Orlando, you're watching theCube. (techno music) >> Voiceover: There'll be millions of people in the near future that will want to be involved in their own personal well-being and wellness.

>> Voiceover: It's theCUBE, covering SAPPHIRE NOW. Headline sponsored by SAP HANA Cloud, the leader in platform as a service, with support from Console, Inc, the cloud internet company. Now here are your hosts, John Furrier and Peter Burris. >> Okay, we are live back here at SAPPHIRE NOW. This is SiliconANGLE Media's flagship program, theCUBE, where we go out to the events and extract the signal from the noise, and I want to do a shoutout to our sponsors that helped us get here and present the great content, SAP HANA Cloud Platform, Console, Inc, Capgemini, EMC, thank you very much for the sponsoring. I'm John Furrier with Peter Burris. Our next guest is Rodolpho Cardenuto, who is the President of Global Channels company wide for SAP, as well as the general business, which is the SME as they talk about in the industry. Welcome to theCUBE. >> Thank you, John, thank you, Peter. Good to be here. >> So one, congratulations. We've had a lot of your folks on theCUBE and this area of the floor is buzzing with action, but real meat on the bone, as we say. It's real, it's a sizzle and the steak is here, so they had beer here yesterday, so German company, so we always like to see the Heineken beer out here. >> Peter: (mumbles) back here. (Rodolpho laughing) >> It was good to have Heineken out there, it's good, some good beer. So give us the update. I mean, you guys have had growth. Share with us and the folks watching, just from where you guys have come from, because SAP has always had a strong ecosystem. You go back to the ERP days back in the late '90s, certainly that revolution is 25 years ago when SAP came out of the woodwork and you got Oracle, all these companies were born. They had an ecosystem, they had people deploying and delivering software. It's changed now, so the dynamics are different. Talk about the dynamics and some of the growth that you guys have. >> I think it's better to position the organization, GB, as you've well said, general business, the SME space. Our ecosystem that we built historically was very focused on the enterprise to support the business suite and to support the enterprises to implement, et cetera, and now we are building in the last 10 years, we started to build a very focused, strong ecosystem, ecosystem for the SME space, that's why we're doing it, and I was just sharing with you, we just kicked off SAPPHIRE NOW last Monday with 2,000 of our partners with us, kicking off the SAPPHIRE, 2,000 of GB partners that serve this segment for us. >> So I said yesterday in the close, and I mentioned this to you, you correct me, I want to get this out there and then can clarify the record, I said that you bolt on the partner summit with the end user conference, which is a huge show, 25,000 plus, whatever the number is, massive, why everyone is here is what makes sense, and I was saying that this is being so important that you should break out your own partner event so people feel like a first-class citizen in that partner world, and you had to correct me. So share the correction that you guys do partner events, (mumbles) the big tent event, so why not have everything here for that? But you guys are doing events. Just clarify that. >> Just to give you an idea, I said we came up from the partner summit last Monday with 2,000 of our partners kicking off the SAPPHIRE NOW, but we do have a partner summit here in North America in the US. We have partner summits in Latin America. By the way, the next one is going to be in Punta Cana, (speaking Spanish) we have partner summits in Europe, APJ, Greater China, we do have a series of partner summits-- >> Do you do those partner summits in native tongue, or can theCUBE come there? >> The native tongue, that cannot, if I speak, yes. (John and Peter laughing) >> We have to get a whole new crew for theCUBE. We're looking for some hires down there, if you're watching, since now you brought that up. Okay, so let's get down and dirty. Channels are great. The leverage of channels, the leverage of the cost per order dollar for SAP, from your perspective, it's phenomenal, and that's great business, indirect sales combined with direct sales, phenomenal approach. What's changing, though? Because at the end of the day, people in the channel have an attitude of, "What's in it for me?" They're running a business. They also serve on the front lines with customers. What's changed in the channel today? Is it the same challenges, training, product? Is it different? Do you see different configurations? >> Well, it's changing a couple of things, and I'll try to summarize here, but the fundamentals are changing from on-prem to cloud, because we were, you very well said, historically an on-prem company, the fundamental of the on-prem are changing now to the fundamentals, the economics are changing from on-prem to the cloud, and the second thing is specialization. We were a company that was built on the ERP, and now we are a company as you saw here from Bill McDermott to Rob Enslin, Bernd Leukert, et cetera. We are (mumbles) HCM, Ariba, or supply manufacturer SRM, or CEC, so we have a lot of specialization. So the economics are changing for the channel as much as they are changing for us, and the specialization. You require a lot of specialization. One of the things that we are hear, listening clearly from our customers, is the specialization with integration. You saw, you'll hear from Bill McDermott and Rob Enslin and Bernd Leukert talking today about this integration, and we are doing a lot of our effort, with our channels also, to specialize, but at the same time to integrate them with SAP core. >> So there's something in application development that's been around for probably 40, 50 years called Conway's law, which suggests that the application that gets built is, or the complexity of the application that gets built is a reflection of the complexity of the organization that built it. When we talk about all enterprises of all sizes wanting simpler, faster, more integrated, more convenient, more natural to use, a lot of your partners are at the vanguard of thinking about how to make it simple because they don't have the institutional and organizational complexity to make it complex. >> Rodolpho: Yeah. >> So, is SAP learning from your partners as opposed to just your partners learning from SAP as we move into this digital world that has such a focus and emphasis on simplification? >> Peter, a great insight. I think that now only learning, we have to listen to them and react to that, because if we react in a complex way to serve our partners, they cannot serve our customers, because in the end, they're serving our customers, and as you said, they don't have the infrastructure or they cannot afford complexity, period. They cannot afford. So they need to be simple by nature, and if we are complex to serve them, they're not going to work with us. They're going to pick another one, the application and everything, so we need to build an organization that is fast and agile and is simple enough to work with our channels. I'm not saying we are there. We're not there yet. But we are in our... For instance, our theme is partners first, run light, and win together. Partners first is all about the partners. Everything that I do in my organization, all programs, products, solutions, is with the partner mentality. Is this good for the partner? Is this good with business models, simple enough for them-- >> John: It's a business partnership. >> And is it partner ready? Because if it's not partner ready, it doesn't fit my model. Run light is about the customer, and win together, it's SAP, the partner, and the customer. The customer should be comfortable enough that we are serving them with this partnership. >> Take us through some meetings internally at SAP, because that's a really great point. You got to meet the channel's requirements on how they do business, because they have a business and you have a partnership. So that means you're the favorite guy in town inside the company. Hey, here's my product. Go sell it through the channel. >> Rodolpho: Yes. (Rodolpho laughs) >> I'm oversimplifying, I'm not saying they said it, but that's the knee jerk reaction. >> That's the historical norm. >> That's a historical norm, "Hey, boom, here's the product. "Go just do some training." >> Keep her. >> But now you have to hold the line. You're the safeguard for the customer. So what are some of those conversations? Because you now have to be a forcing function to the product groups, and we've so much transformation, SAP S/4 HANA, HANA Cloud Platform, all these enabling technologies is a gold rush for the partners. So you have to hold the line. Share some internal color. You won't get in trouble. >> No, no, and I have no problem being in trouble, but I'm going to illustrate that with a simple case you just mention, S/4 HANA. S/4 HANA is the flagship of a product for the large enterprise. You saw Nestle up today with Rob Enslin. Nestle, one of the largest corporations in the world, 350,000 employees, $80 billion worth of, pretty large, pretty large by any metric, pretty large, and they use S/4 HANA. My job, and I have an organization, my organization, we package, we price, we enable, and we support the channel to sell and to support the S/4 HANA for the SME market. We are 60% of the S/4 HANAs for SAP. If you get all the S/4 HANAs, 60% goes through the channel that we manage. So, we package-- >> Peter: Is that the number of installations? >> Yeah, yeah, 60% of the S/4 HANAs today that we sold are sold through the channels that we manage in the SME, in the GB space. So that's the job. It's my job to package, to price-- >> John: You're giving money away. You're handing people money. Here, here's some business. >> It's my job to package, to price, to enable the channel, and to support the channel, to actually make S/4 HANA available for the GB space. So that's what we do. So we do that two folds. Of course, I have an organization to do that and I have it also to educate the other organizations. As you said, "Oh, here's my product. "It's perfect for SME. "Go and sell." Okay, let's have a conversation. Let's package, let's price-- >> Is the channel ready? >> Exactly. >> So run light, that means it's got to be turnkey. >> Yeah, we call it the package, price, enable, and support, because you need a different package, it needs to be much more simpler than the enterprise. You cannot go to a Chinese menu for the GBs, so it has to be templates. Price, very specific price for the GB. It needs to enable the channels. Who's going to enable the channel? Technically, pre-sale, sales, et cetera. And we need to support a channel once they sell or during the process. This is my organization, that's why I educate the other organizations. >> So there is not a company on the planet that has mastered the fine art of reaching-- >> Other than us? >> Other than you. Well, you said you got more work to do. (Rodolpho laughs) There's not a company on the planet, you're getting closer, that has mastered the fine art of reaching the general business population of companies. Increasingly also, as we move more into digital business, your biggest customers want to use software in digital interfaces and technologies to reach their small, medium sized business customers. Are they coming to you and saying, "How can we start bringing your platform, "your go-to business, and coupled with our SAP back end "to facilitate the process of helping to reach..." In other words, are you going to be able to catalyze a global change in the approach to reaching small businesses because of the SAP platform? >> Well, I don't know if we can do that, but I think it's a good vision for us to pursue, Peter. We do have an organization that has inside sales, digital sales, social sales, we use social to reach out to our customers. We use digital to reach out to our customer who have feet on the street, direct sales. We have our 12, today, I think 13,000 partners, ecosystems that reach also to our customers, and they are divided by territory, by industry, by solution, so we can map, get the world and map it by territory, by solution, by industry, the partners that we have, and we use a lot of our new methodologies and our social sales, digital sales, a lot of things. So we are building the infrastructure to support any kind of the products from SAP. We are very well serving them support for you, for the market, from SAP, so we have a lot to digest. >> So one of the things, we talked about, a lot of channel partners, SIs down to the ISVs-- >> Resellers. >> DABs, VARs, as you call, and we hear the following from them. I want to get your take on this and how you're addressing this. "We want a partner that's going to be with us "from cradle to grave, through the life cycle "with our partnerships," the things you said. The other thing that was interesting was, "We want to increase our gross profit," and services is 100% gross profit, so me as the partner, I make money on professional services, whether that's quick fix in the old days or architecting clouds, integration, so that's a big part of their revenue. So they want to make money, that's code word for money. So how will you guys shift in the economics to enable the partners to wrap their own unique services. It certainly makes sense in foreign markets, but across the globe, that's a big challenge. How are you rolling out for them, at the same time, bringing the big accounts to them? So how are you enabling me to wrap my services around them? >> And that's (mumbles) going back to your point or to your first question when I said the economics are changing, so we need to follow up the new economics. The channels, as you said, they make a good part of their business is about implementation. Once you go to the cloud, though, this part of the business reduces by one third, because in the cloud, you have less of a share of this service. So the service share is reduced by one third. So what you need to do is to compensate that with what we call an ARR, annual recurrent revenue, from the cloud. So we are building business model, and I launched that last Monday, our cloud business partner new business model, which is give the partners a ARR, annual recurrent revenue, because service is good because it's recurrent revenue. Once you sign a service SLA, a service contract, you don't have anything, but you have a recurrent revenue with that, but this is going to be reducing in a cloud, so we will compensate that, and that's the idea-- >> So you're shifting the dollars into the same consumption model, the cloud, with some sort of subscription-like or recurring revenue model. >> I'm willing to cut a share of my revenue with my partners, from the cloud. >> Well, you might be able to get it back longer term, but it's that up front. >> Yes, yes. >> Peter: So typically you sell up front, you pay for the sales guy up front, and a lot of these partners say, "I can afford to wait for the--" >> Now it's more of a recurrent revenue battle, so I'm willing to get a share of that to split that with my partner for more business. >> So you're financing their business model transition? >> Rodolpho: That's it, yeah. Transition, that's the word. >> Their fear that this transition, because they're on paper, they're getting cut, so they have to have an immediate pop, change, so you're financing that over the long term for the relationship. >> Well we are willing to have this conversation, and the new business models that we are developing, and we introduce it here, they actually address that in a very, very programmatic way. It's not a one-by-one, it's not opportunistic, and by the way, you said the channels, we are getting channels, we have only 15% of our business from the channel. My business, only 15% is opportunistic, that you come with a transaction, 85% is predictable. 85% is loyal, it's about loyalty. >> Great base. >> Exactly, I want to invest in the channels that are here for the long run. >> Peter: So it will support that business model transition? >> Yes, yes. >> So that's a good loyal base, so they probably give you very candid feedback. >> Yes, please. >> What did they say, no they do, if you have a loyal base, they'll tell you the truth, right? What are they saying? What's the feedback on the new business model? What are some of the examples? >> After I presented on stage and we had the conversation, I had, as you can imagine, a dozen conversations with specific partners that are willing to adopt and sign off. It's just for us to start to roll out, of course, to roll out the new business models you need to think about countries, a lot of the other specifics, but we expect in the next six month to have the whole world covered. >> That's great, and you have the events coming. Thanks for clarifying that. Well, we really appreciate (mumbles), coming on theCUBE and sharing your insights. >> Thank you. >> You're very dynamic, and great guest to come on theCUBE, certainly, we'd love to have you again, and if you need us down in the other summits, let us know. >> Rodolpho: It would be my pleasure, thank you. >> We'd be happy to bring theCUBE. Channel is big, the ecosystem is a competitive advantage, and you guys are looking good as they off the T. This is theCUBE here, live in Orlando. I'm John Furrier with Peter Burris. You're watching theCUBE. We'll be right back. (light techno music) >> Voiceover: There'll be millions of people in the near future that want to be involved in their own personal well being and in wellness. Nobody wants...

>> Voiceover: From Orlando, Florida, it's theCUBE. (upbeat music) Covering Sapphire Now. Headlines sponsored by SAP HANA Cloud, the leader in platform as a service, with support from Console, Inc., the cloud internet company. Now, here's your host, Peter Burris. >> Welcome back to theCUBE. I'm Peter Burris, and theCUBE is, once again, our flagship platform for bringing what's happening in big events to the community. Today, we're here at SAP Sapphire and I'm being joined by Tom Roberts, who's the Global Vice President of Third-Party Software Solutions. Tom, we're going to spend some time talkin' about how you're working with the ecosystem at SAP to fill in some of those crucial gaps that customers face as they try to create those new outcomes with SAP-related technologies. Tell us a little bit about what your team does. >> Great, Peter, and thanks, appreciate you havin' us here. You know, Peter, one of the key things that Third-Party Solutions does, and what my team does, is we really help complete the solution. Right? So, it's a complex world. We've got customers out there trying to solve some very challenging problems and, of course, SAP brings the bulk of the solution there, but there's going to be some gaps. We've created unique relationships in our ecosystems in order to help fill that and deliver a complete solution. So, for example, you'll hear the name out in the marketplace, Solution Extensions, and that's our external branding. These are solutions that SAP sells on its paper, that have been tested and are supported by SAP, same as our own products, so the customer can buy with confidence and help get that total solution in place. >> So, it's your almost SAP-compliant additional software. >> Yeah, that's right. >> Excellent. That's a really interesting perspective. You know, it's interesting. Over the course of our two days here at Sapphire, and we'll be here tomorrow as well, two things have popped out that are a little bit different from SAP. First off, the tension between whether or not SAP was an applications company or platform company seems to have totally gone away. >> Yes. >> You're a platform company. >> That's correct. >> The second thing that I find very interesting is that SAP has always been the company that kind of, was a little bit more neutral, stood back. When a customer needed us, we'll show up and we'll do it. You're now being a little bit more aggressive about going after business, after some other companies' customers. How are you utilizing this extensions approach to more rapidly create a solutions fabric that can bring, that can rapidly grab new customers for SAP, and your partners? >> Well, Peter, you're right on the money. You know, it's no doubt that the industry has moved rapidly to the cloud. In fact, everybody said it would happen faster and it's happened even faster than they said it would. Everyone is, when they see results, they're always surprised, and cloud growth was even faster than we thought it would be. Now, what a lot of people haven't figured out, but I think SAP has, is that, in a cloud-based solution world, the expectation is that, one, it's seamlessly integrated, and, two, the experience of buying it is seamlessly integrated, and, three, it's supported in a seamlessly integrated way and that's what Solution Extensions delivers in the cloud. So, you take an example of the success we've had with the acquisition of SuccessFactors, growing great, growin' well in the industry, but they have a lot of needs in order to mature the solution and meet the customer's entire wishlist. One example that we use is we've got a relationship with WorkForce Software for time and attendance, so it wasn't something that SAP developed, but it's something that the customers needed and provides high ROI. But, if you go and you look at that solution, you'll look and see that it's directly embedded inside employee central, right on the drop down, so, for the customers, a completely seamless experience, and they can buy that from their SAP account executive. >> So, SAP is installed in a lot of companies, 300 thousand across all industries. >> Right. >> As we move to a digital world, a lot of your customers, a lot of your SAP customers themselves, are starting to envision how software becomes part of their delivery mechanism. >> Right. >> And they're looking at the customers that they serve and saying, I wonder if I can use this software better. Are you startin' to see non-traditional software companies starting to come to you and saying, how can we be part of this program so that we can plug into, or we can enhance, that broad set of solutions for our customers. >> Right. So, look at, everyone likes to talk about Internet of Things, right? So you take a historical business that's asset heavy and, by that I mean, think of like an oil and gas company. You know, traditionally the guys would work out in the field and they didn't carry devices with them. They carried wrenches, (giggles), right? They didn't carry mobile devices that were digitally connected. >> And flasks. (laughter) >> Sometimes. I hope not too often. That's a dangerous line of work. But, if you think about it, now that's changed. Right? They now use the Internet of Things not only to get information back from the field, but they also use it so that when they have to go out and do those repairs, they're getting digital assets that they can see. Now, we have created some relationships, and I'll give you two examples. You'll hear about a relationship that SAP has with OSIsoft, right. They have a well-known reputation for being able to draw that information off Internet of Things, and we've created a link between that and the HANA platform. So that now, you can do that analysis in real-time, because, as you know, HANA is made for the real-time and, if you're going to do Internet of Things, that's the only platform you can really go with. You can't go with, it's not the old batch then analyze later; you need that information happening in real time. That's one example. The other example that I'll give you is you'll see here a Sapphire, you'll see a company called, Utopia. You say, well, alright, I've never heard of this company but they do a unique thing. It's a direct add in into he SAP platform, a solution extension, that allows you to do master data governance around your enterprise assets. And you say, wow, that sounds really complicated. Okay, what is that? This is the ability to look at those documents in a digital way while you're out in the field to understand hey, that bolt there, that needs to be made out of steel, not aluminum, or you're going to have a chemical reaction, for example. That's the kind of thing that can safe lives, save time, and also make the job out in the field easier. And you can't do that just with SAP's software by itself, we need the partners to contribute into that ecosystem and bring that richness there. >> You talked about the rapid adoption of the cloud, in many respects, almost surprising adoption of the cloud. 'Cause you're right, we all knew it was going to happen, many of us didn't necessarily know how fast it was going to be. SAP has a very on-premise and a lot of the programs that SAP put together were initially optimized for that on-premise orientation. >> That's right. >> Are your clients today, when they become part of the SAP extension, or the Solutions Extension program, are they automatically part of both worlds? First off, let me start there. >> Yeah, I mean, it's true that we live in a hybrid world already today. Hybrid happens so quickly. You saw SAP move aggressively forward and acquire some leading cloud companies. >> Yep. >> Right. (mumbles) >> And you did a great job of integrating them, by the way. >> Thank you. I think we did. And I'm really impressed with these properties. I think you saw in the keynote yesterday, a really great representation of some of the leaders of those businesses up there and how tightly they've become part of the SAP family. Now, when you look at Solution Extensions, it mirrors that. We have solutions across all five of the major pillars of the business which, of course, include these cloud properties, and the areas we're seeing the fastest growth, or the most rapid adoption, are in these cloud properties. Because we all went through the era of the best-of-breed became the suite, and then we had the era of the cloud. And if you noticed, when the cloud companies were launched, they were best-of-breed companies and now we're in that period where people want things to move back to the suite because they want integration. >> Or a least at a platform level. >> Sure, because they want efficiency. Efficiency comes from that integration and they get the first round of benefits by moving to the new application in the cloud and they get out of the business of having to operate it themselves. But, then, they want to get back to the business of having that seamlessly integrated with their core operations. So, we live in a hybrid world today but it's clear that the pendulum is moving directly to cloud. >> So are you suggesting to companies that want to be part of the extensions program, that they focus on the cloud first and then everything else second? >> Yes, I would, and here's why. All conversations with customers start with cloud. And they'll look to see if they can do something in the cloud first and it's the default. So, we've really moved past that world where the first conversation's around on-prem and then look to cloud. That changed maybe two to three years ago and today, every conversation starts with the cloud. >> So, I want to go back to that notion of non-traditional software companies creating solutions within the SAP ecosystem for their customers. Do you have companies like that in the extensions program today? >> Well, I think many of these companies are evolving, just like SAP. Now, I tend to deal with the ISVs, so I tend to deal with companies that are in the business of that. But, I will tell you this, what we're seeing with HANA Cloud Platform is exactly what you're talking about. It's that intersection of SAP, our ISV ecosystem, and those non-traditional customers that are, themselves, moving into the digital, and it's that intersection, and you'll see that happen on HCP, where they'll develop applications unique to their own business. I like to remind people this, when we first rolled out our three and then we went to the business suite, companies wrote billions of lines of custom ABAP code to get that system the way they wanted it, in each of these individual companies. Well, as we move to S4, companies are going to revisit what they did to make those systems special and perform just the way they want it to. But they're not going to do that in ABAP, likely. They're likely they're going to do that on HCP, and they're going to build in that platform because that's where they're going to get the integration, that's where they're going to get the benefit of where our ISV ecosystem is headed and tap into the richness of that. So, I think this is why you hear this rebirth of innovation at SAP and it's because it's driven by the customers. That's why we have so many people turn out at Sapphire this week, so much so that even the SAP employees are like, wow, this is really an impressive turnout. >> It's 60,000 plus people, it's one of the most, without question, this is one of most energetic and packed trade shows that I've ever been to. Or customer shows I've ever been to. >> Yes, it's impressive. We're lookin' around here right now and you just, all these, just, bodies. It's incredible. >> Yeah, absolutely. So, if I envision the next couple of years for you, every, we had a partner on yesterday, in fact, and we asked him a couple of pointed questions, as we're asking you, and we asked him, what do you want to see from SAP, as a partner? What would make SAP an even better partner so that you would be that much more willing to tie into the ecosystem? And what they said was, we want to see better road maps to, so that we can see how, where our responsibilities and SAP's responsibilities, our roles and SAP's roles, end. We're still concerned about the platform mentality rolling us. How are you assuaging those ISV concerns about your roadmap as you try to bring even more integrated value into the platform? >> You know, SAP has a brand of trust. And, when you get to road maps, you have to have trust with your partners- who's going to do what. Very clear and transparent conversations. I've seen a lot of maturity from SAP really in the last six to eight months being much more diligent in how they're planning their road maps and how they're involving partners in those road maps. I'll give you an example. You know, Wieland Schriener, who really leads some of the development around S4, in particular, as it relates to initiative that we work on with open text. That's one of our largest partners inside Solution Extensions. We have, right now, about 19 million users who have purchased that through SAP so, really, an incredible relationship, unique in the industry, that we have with them. As they, as we launch S4 and as we push it out into the marketplace, we've seamlessly integrated the open-text capabilities around unstructured content into S4. And, that's happened through the leadership of our development team. By making commitments like that. Weiland presented that on the partner summit on Monday to all the partners in there, really as a message out to them to say, this is how SAP is going to do business in the future with our ISVs and our partners. And it, and we're moving at such a pace it requires that level of coordination. Right? We can't just let it to chance. Or, we can't let it be ambiguous. We have to be clear about we're going to build this and we're expecting our partners to step up here, so that that dance happens the way it should happen. I do respect though, that the partners have that concern, 'cause it's a legacy. >> They're always going to have the concern, but a big piece of it is going to be how well do you share and how well do you work together. >> Yeah. >> Hey, Tom, thank you very much. Tom Roberts, Global Vice President, SAP Solutions Extension program. Thank you very much for being here as part of this great show, talkin' about partnerships and the evolution of the SAP platform and SAP the company. This is theCUBE, we're going to be back shortly with more from Sapphire. (upbeat music) (slow tempo music) >> Voiceover: There'll be millions of people in the near future that are, want to be involved in their own personal well-being and in wellness. Nobody--

>> Voiceover: It's theCUBE covering Sapphire Now. Headlines sponsored by SAP HANA Cloud, the leader in platform as a service. With support from Console Inc., the cloud internet company. Now, here are your hosts: John Furrier and Peter Burris. >> Okay, welcome back, everyone. We are here live in Orlando, Florida, for exclusive coverage of SAP Sapphire Now. This is theCUBE's SiliconANGLE's flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier, Peter Burris. I want to thank our sponsors for allowing us to get down here, SAP HANA Cloud Platform, Console Inc., Capgemini, and EMC, thanks so much for supporting us. Our next guest is Ifran Khan, who is the SVP General Manager of digital enterprise platforms which includes HANA, end-to-end. Welcome back to theCUBE. >> Thank you. >> John: Good to see you. >> Lovely to be back here again. >> John: So, you know theCUBE history. We go way back, we've done pretty much every Hadoop World up until 2013, now we have an event the same day, week Estrada, New York, NSV, and we've been to every Sapphire since 2010 except for 2014, 2015. We had a little conflict of events, but it's been great. It's been big data. I remember Bill McDermott got up there when HANA was announced, kind of, or pre-built before Hadoop hit. So, you had HANA coming out of the oven, Hadoop hits the scene, Hadoop gets all the press, HANA's now rolling, so then you roll forward to four more years, we're here. What's your take on this, because it's been an interesting shift. Hadoop, some are saying, is hard to use, total costs of ownership. Now, HANA's rising, Hadoop is sliding. That's my opinion, but what's your opinion? >> Well, that's a well, sort of, summarized history lesson there, so to speak. Well, firstly, great to be on theCUBE again. It's always lovely to see you gentlemen here, you do a wonderful job. What I'd perhaps just highlight is maybe some of they key milestones that I've observed over the last four or five years. Ironically, 2010 when I arrived at SAP, when the entire, sort of if you like, trajectory of HANA started going in that direction, and Hadoop was sort of there, but it was maybe petering out a little bit because it was the unknown, the uncertainty of scale in whether or not this is going to be only batch or whether it's going to ever become real-time. So, I would maybe make the two or three milestones from the SAP side. HANA started off as a disruptive technology, which was perhaps conceived as being a response to a lot of internal challenges that we were running into using the systems of record of yester-era. They were incapable of dealing with SAP applications, incapable of giving us what we now refer to as a digital core, and that were incapable of giving our customers truly what they needed. As a response, HANA was introduced into the market, but it wasn't limited in scope to the, if you like the historical baggage of the relational era, or even the Hadoop era, so to speak. It was completely new imagined technologies built around in-memory computing, a columnar architecture, and therefore it gave us an opportunity to project ultimately what we could achieve with this as a foundation. So, HANA came into the market focusing on analytics to start with, going full circle into being able to do transactionality, as well, and where we are today? I think Hadoop is now being recognized, I would say probably as a de facto data operating system. So, HDFS is a very significant sort of extension to most IT organizations, but it's still lacking the compute capabilities. This is what's given their eyes a spark, and of course with HANA, HANA isn't, within itself, a very significant computing engine. >> John: And Vora. And Vora a-- >> Ifran: Of course, and Vora, as well. Now you're finishing off my sentences. Thank you. >> (laughs) This is what theCUBE is all about, we got a good cadence going here. Alright, so but now the challenge. HANA's also, by the way, was super fast when it came out, but then it didn't really fire in my opinion. It's swim-lane. It seems now, it's so clear that the fruit is coming off the tree, now. You're seeing it blossom beautifully. You got S/4 HANA, you got the core... Explain that because people get confused. Am I buying HANA Cloud, am I buying HANA Cloud Platform? Share how this is all segmented to the buyer, to the customer, to the customer. >> Sure, I mean firstly, SAP applications need to have a system of record. HANA is a system of record. It has a database capability, but ultimately HANA is not just a database. It's an entire platform with integration, and application services, and, of course, with data services. Now, as a consequence, when we talk about the HANA Cloud Platform, this is taking HANA as a core technology, as a platform, embedding it inside of a cloud deployment environment called a HANA Cloud Platform. It gives on opportunity where customers are perhaps implementing on premise S/4, or even in a public S/4 instance, an opportunity to extend those applications as perhaps they may need or require to do so for their business requirements. So, in layman's terms, you have a system of record requirement with SAP applications, that is HANA. It is only HANA now in the case of S/4. And in order to extend the application as customers want to customize those applications, there is one definitive extension venue, and that's called the HANA Cloud Platform. >> John: And that mainly is for developers, too. I call it the developer cloud, for lack of a better description or a more generic one. That's the cloud foundry. Basically the platform is a service that is actually bolting on, I guess a developer on-ramp, if you will. Is that a safe way to look at it? >> Ifran: Yeah, I mean I think the developer interaction point with SAP now certainly becomes HCP, but it also is a significant ecosystem enabler, as well. Only last week, or week-before-last in fact, we announced the relationship with Apple, which is a phenomenal extension of what we do with business applications, and HCP is the definitive venue for the Apple relationship in effect. >> So, tell us a little bit about borrowing or building upon that. What is increasingly... How should an executive, when I think about digitalization, how should they think about it? Is this something that is a new set of channels, or the ability to reach new customers, or is there something for fundamental going on here? Is it really about trying to translate more of your business into data in a way that it's accessible so it can be put to use and put to work in more and different ways? >> Sure, it's a great question. So, what is digitalization? Well, firstly, it's not new. I mean, SAP didn't invent digitalization, but I think we know a fair bit about where digitalization is going to take many businesses in the next three to five years. So, I would say that there's five prevailing trends that are fueling the need to go digital. The first thing is about hyperconnectivity. If we understand that data and information is not only just consumed, it's created in a variety of places, and geographically just about anywhere now is connected. I mean, in fact, I read one statistic that 90 percent of the world's inhabitable land masses have either cellular or wireless reception. So, truly, we're hyperconnected. The second thing is about the scale of the cloud, right? The cloud gives us compute, not just on the desktop, but anywhere; and by definition of anywhere, we're saying if you have a smart appliance at an edge, that is, in fact, supercomputing because it gives you an extension to be able to get to any compute device. And then you've got cloud, and on top of which, you have cyber-security, and a variety of other things like IOT. These things are all fueling the need to become digitally aware enterprises, and what's ultimately happening is that business transformation is happening because somebody without any premises, without any assets, comes along and disrupts a business. In fact, one study from Capgemini and, of course, from MIT back in 2013, was revealing that in the year 2,000 and 20, 2020 rather, out of the SMP 500, approximately 40 percent of the businesses are going to cease to exist. For the simple reason, those business transformations that are going on disrupting their classical business models are going to change the way that they operate. So, I would just, in a concatenated way of answering your question, digital transformation at the executive level is about, not just surviving, it's about thriving. It's about taking advantage of the digital trends. It's about making sure that, as you reinvent your businesses, you're not just looking at what you do today. You're always looking at that as a line that's been deprecated. What are you going to do in addition to that? That's where your growth is going to come from, and SAP's all about helping customers become digitally aware and transform their organizations. >> Paul: So, you're having conversations with customers all the time about the evolution of data management technologies, and your argument being is that HANA is more advanced, a columnar database in memory, speed, more complexity in the IO, all kinds of wonderful things that it makes possible can then be reflected in more complex, or more rich, value creating applications. But, the data is often undervalued. >> Ifran: Of course. >> The data itself. We haven't figured out how to look at that data, and start treating it literally as capital. We talk about a business problem, we talk about how much money we want to put there, how much people we want to put there, but we don't yet talk about how much data is going to be required either to go there and make it work, or that we're going to capture out of it. How are you working with customers to think that problem through? Are they thinking it through differently in your experience? >> Yeah, that's a great question. So, firstly, if I was to look at their value association with data, we can borrow from the airline industry perhaps as an analogy. If you look at data, it's very equivalent to passengers. The businesses that we typically operate on are working on first and business class data. They've actually made significant investments around how to securely store, access, process, manage all of this business class and first class data. But, there's an economy class of data which is significant and very pervasive, and if you look at it from the airline's point of view, an economy class individual passenger doesn't really equate to an awful lot, but if you aggregate all the economy class passengers, it's significant. It's actually more than your business and first class revenue, so to speak. So, consequently, large organizations have to start looking at data, monetizing the data, and not ignoring all of the noise signals that come out of the sensors, out of the various machinery, and making sure that they can aggregate that data, and build context around it. So, we have to start thinking along those ways. >> John: Yes, I love that analogy, so good. But, let's take that one step further. I want to make sure I go on the right plane, right? So, one, that's the data aware. So, digital assets is the data, so evaluation techniques come into play, but having a horizontally traversal data plane really, in real time, is a big thing because, not only do I go through security, put my shoes through, my laptop out, that's just IT. The plane is where the action is. I want to be on the right plane. That's making data aware, the alchemy behind it, that's the trick. What's your thoughts on that because this is a cutting area. You hear AI ontolgies and stuff going on there now, machine learning, certainly. Surely not advancing to the point where it's really working yet. It's getting there, but what's your thoughts on all this? >> Yeah, so I think the vehicle that you're referring to, whether it's a plane or whatever the mode of transportation is, at a metaphor level, we have to understand that there is a value in association with making decisions at the right time when you have all the information that you need, and by definition, we have created a culture in IT where we segregate data. We create this almost two swim lane approach. This is my now data, this is my transactional data, and here's my data that will then feed into some other environment, and I may look to analyze it after the event. Now, getting back to the HANA philosophy from day one, it was about creating a simplified model where you can do live analytics on transactional data. This is a big, significant shift. So, using your aircraft analogy, as I'm on there, I don't want to suddenly worry about I didn't pick up my magazine from Duty Free or whatever, from the newspaper stand. I've got no content now, I can't do anything. Alright, for the next nine hours, I'm on a plane now and I've got nothing to do. I've got no internet, I've got no connectivity. The idea is that you want to have all of the right information readily available and make real time decisions. That calls for simplified architectures all about HANA. >> We're getting the signal here. I know you're super busy. Thanks so much for coming on theCUBE. I want to get one final question in. What's your vision around your plans? I'll say it's cutting-edge, you get a great area, ecosystem's developing nicely. What's your goals for the next year? What are you looking to do? What are your key KPI's? What are you trying to knock down this year? What's your plans? >> I mean, first and foremost, we've spent an awful lot of time talking about SAP transformations and around SAP customer landscape transformations. S/4 is all about that. That is a digital core. The translation of digital core to SAP should not be inhibiting other customers who don't have an SAP transaction or application foundation. We want to be able to take SAP to every single platform usage out there and most customers will have a need for HANA-like technology. So, the top of my agenda is let's increase the full use requirements and actual value of HANA, and we're seeing an awful lot of traction there. The second thing is, we're now driving towards the cloud. HCP is the definitive venue not just for the ecosystem, for the developer and also for the traditional SAP customers, and we're going to be promoting an awful lot more exciting relationships, and I'd love to be able to speak to you again in the future about how the evolution is taking place. >> John: We wish we had more time. You're a super guest, great insight. Thank you for sharing the data here >> Ifran: Thank you for having me. >> John: On theCUBE. We'll be right back with more live coverage here inside the cube at Sapphire Now. You're watching theCUBE. (techno music) (calm music) >> Voiceover: There'll be millions of people in the near future that want to be involved in their own personal well-being and well--

live from Orlando Florida it's the kue covering sapphire now headline sponsored by ASAP Hana cloud the leader in platform-as-a-service with support from console Inc the cloud internet company now here's your host John furrier hey welcome back and we are here live in sapphire now in orlando florida this is the cube silicon angles flagship program we go out to the events and extract the signal noise want to thank our sponsors SI p HANA cloud platform and console inc at consoled cloud our next guest is an eel cebu vp of business development at fred balboni who is the GM of IBM here on the cube together SI p time you book them back of the cube good to see you guys like when is down so microsoft's up on stage ibm's here with SI p this is the old sav no real change of the game in terms of you guys have been multi-vendor very partnering very eco system driven but yet the game is changing very rapidly in this ecosystem of multi partnering with joint solutions i mean even apple your announcement earlier so is this kind of like a bunch of Barney deals as we used to say in the old days or what is the new relationship dynamic because data is the new currency it's the new oil it's the digital capital data is capital data is a digital asset partnerships are critical talk about this dynamic partnerships are critical and I think what we're doing is we are going deeper than we've ever gone with these partnerships with IBM we announced last month we announced the joint ASAP IBM partnership for digital transformation what does this do so what we've been doing traditionally with IBM we've had siloed partnerships with different IBM brands right we had a partnership with a power brand we had a partnership with the cloud team we are a partnership with GBS what we've done now with the digital transformation is bringing it all together so we have a CEO level discussion that's driven this partnership and I think that's really the differentiation so we have moved away from the so-called Barney deals because our customers expect bill talked about it in the keynote today he says when it's a multi partner situation customers expect that you're going to have one voice you're going to be a line you're going to provide value to those customers that's what we're trying to do and that's what this partnership is all right I want to get your thoughts on this I mean I'm Barnum's reference to the character you know I love you you love me kind of like a statement of mission but really not walking the talk so to speak but but I want to get your thoughts because you have a look at the analytics background at IBM when you built that business up there's a conflict in a way but it's also a great thing in the market apps are changing in very workload specific at the edge with its IOT or a mobile or whatever digital app they have to be unique they have to have data they got to be they have to be somewhat siloed but yet the trend is to break down the silos for the customer so how do you guys is it the data that does that because you guys doing a lot of work in this year you want to build great apps and be highly differentiated yet no silos how do you make that ok so it is its first of all it's very exciting and a confronting but also exciting for not only our companies but also for our customers it's all enabled really simply because of a couple of major technology shifts that have happened number one technology shift is the cloud the cloud without question is driving driving all of this in addition to your notion about data readily available data and the algorithms and software that can you know make cognitive sense of that is both driving of this whole change last but not least and I think Hana really enables this you know embodies this is the architectural change so you put those three things together availability of data cloud which means the capital investment required to build the infrastructure is inexpensive and then finally Hana which is the technology platform that rapidly allows you to take using you know a generic term api's and wire them to different sources allow you to dynamically reconfigure businesses now there's one last thing I think is really important here that we don't want to underplay and this is the social phenomena of the consumerization of IT and this has been going on for many many years but we've really seen it accelerate in the last 3 to 4 100 ala dated yeah absolutely and when you see a device like this becomes the system of engagement and oh by the way if you don't like if you don't like dark skies weather app well then go to the weather channel's weather app and if you don't like their weather I've go to one of 40 other weather apps so therefore this consumerization of IT is bombarding our CIOs what's exciting is that cloud cognitive insight a flexible core with great social engagement allows a CIO to really rapidly reconfigure so that's why these partnerships are rising that's very important you just said to about this relationship now about consumerization of IT is a complete game changer on the enterprise software business because now the relationship to the suppliers I'm the CXO or CIO I had a traditional siloed as you use that word earlier relationship with my my vendors one pane of glass like that IT Service Management down here I got the operations I up changed my appt every six months or six years the cadence of interaction was very inside the firewall absolutely so the relationship has changed with the suppliers expand on that because that really hits a whole nother thread I'm the buyer i don't want complexity you don't and what you do want is time to value so combining that with the beautiful user experience that you know thanks to devices like the one that Fred showed you know are an absolute necessity they it's it's understood now it's an expectation that customers have and customers of customers also have so i think that is impacted us in multiple ways what you heard and build scheme out you heard that with our supplier Network you heard our president for ASAP Arriba Alex talk about it he is that the change within that organization itself with our different vendors with the fact that we have to provide choice to our customers i think that is that has changed the way we do business and it's interesting to just I mean this is right now a moment in history as a flashpoint not that's a big of event but it's been seeing this trend happening over the hundreds of cube events that we've been to over the past few years is that now in just today highlights it the Giants of tech are here ASAP IBM or I mean Microsoft Office state's atty Nutella the apple announcement you guys have a similar deal with Apple these are the Giants okay working together now iBM has bluemix you have HANA cloud platform you have on a cloud everyone's got cloud so this kind of highlights that it's not a one cloud world absolutely and so this really kind of changes the game so I got to ask you given all that how do you guys talk to the ecosystem because they're our total transistors going on at capgemini Accenture pwc CSC it's an outside-in dynamic now how is that change for you guys as you guys go to market together in a variety of things in a coop efficient some faces how does that dynamic change with it for the partners that have to implement this stuff so co-op edition is is a reality i think we've asap we've learnt this probably from a partner that does the best which is IBM they probably they practically invented cooperation in the enterprise software space so i think here's how here's the way we look at it right so so we are looking at with with hana with HANA cloud platform we're really morphing into a platform and applications company and and we have the strategy of essentially later thousand apps blue so what are we doing on HANA cloud platform in such a short time so we have two about 2600 plus customers we have I think the more important part is that our ecosystem around HANA cloud platform is 400 + partners so that's an advantage visa V say Oracle for instance which is waves to have an ecosystem they lot of people there too I think I think the DNA of SI p isn't being an open company we've had that for ages so we work closely with Barton's and by the way I used to be at Oracle I was there for seven years and I know the difference its it's stuck Oracle's got a different strategy we've got a very very different very open strategy so I think what we're doing is we coalescing around these key assets right our digital Korres for Hana Hana cloud platform as the key platform for our customers okay so a nice watching out there and looking out over the next year so what execution successes do you put out there that's a to prove that you guys are are open and you guys are doing good deals what success kpi's key indicators would you say look for the following things to happen so number one available availability of AP is I think if you look at the different api's they access to the variety of SI p systems what you did see is that there's a digital core there's all of the different assets we've got in the cloud easy access to those I think customers can look for that right how can they rapidly develop an essay p successfactors extension or how can they extend ASAP arriba very quickly integrating that with the s100 digital core I think that's number one number two is the HCP App Center so we have probably about a thousand plus apps out there and by the way I do need to give a shout out here because we've got three apps that three iOS apps that IBM pour it onto HANA cloud platform in the last six weeks was it Fred six weeks we're talking about you know an incredibly short amount of time that are now highlighted on HANA cloud platform app center Fred talk about IBM right now because this isn't a game finished shift I've noticed more aggressively the three years ago I saw the wave coming at IBM and now remote past two years it's just been constant battering on the beachhead iBM has been donating a ton of IP with open sores everyone's behind blue bluemix has gone from you know a fork of cloud foundry to a now really fast they're moving very very quickly yes sir writing apps you're partnering is this part of the strategy just to kind of keep humbling the Markowitz assets like this is that's open the more open IBM and how is open mean to for you guys today well because I think at the end of the day we got to realize that I mean us to question a couple couple questions ago and I Neal answered it quite well which is customers are going to make the choice customers want to be flexible in their choice so understand I want to first of all shout outs IV to Apple excuse me to sav a shadow tennis AP here which is s ap has always been about partnering an ecosystem and so that's a court that's a core belief of theirs so when you look at what they've technically done here with the HANA cloud platform you know one of the many strategists can put this on a board enjoys well this is what this is what they should be doing but the reality of it is is the reason companies stay with existing service providers the reason companies say with existing technologies is because they've already got it it's what they know how to do and so and what they want to do is very hard so the Hana architecture in the hunting club platform was probably drawn on a board ten years ago the fact that it's real and here now now mace clients the ability to actually make these kind of ships IBM's move to the cloud moving assets to the cloud because we recognize clients are actually going to want to pick and choose and build these things in a dynamic fashion and we want our workloads to be on the IBM cloud every single show I go to down basically feels like a cloud in a data show even amplify which is kind of a commerce show sure it's all about data and the cloud so I we got to get we got to get wrapped up I want to get one final thread in with you guys and that is unpardonable Apple just spent the billion dollars with the uber clone and China so you see their partner strategy they did partner with you guys and now SI p this is a really interesting strategy for Apple to go into the enterprise they don't have to get over their skis and over-rotate on this market that can come in pre existing players and extend out versus trying to just have a strategy of rolling products out so it seems that Apple is partnering creating alliances as their way into the enterprise similar to what they're doing in in China with who were just a random example but which is impressed this week is that the Apple strategy I mean you guys both talk to Apple I mean you guys have both of deals share some color on Apple's partnering and alliances their joint venture not your invention for joint development seems to be very cool so I it's not I I I want you know when I look at what we're doing with that you know we have a goal and our goal is we believe that we can transform the enterprise you know we I BM we IBM and SI p we IBM and our partners including Apple we want to transform enterprise Apple signed on to that because Apple realized that they were changing consumers lives and and then they woke up and they said well actually but many people spend a large part of their waking day at work so if I can change a consumers life I can also change an enterprise employees life and that is the work that we are setting about doing and so therefore the partnership IBM understands enterprise really well SI p was Bill statistic today seventy-three percent of the world's transactions run through an essay peak or so yeah Apple's very obviously very delivered in picking their partners we're thrilled with the mobile first for iOS worked in Swiss great programming language has great legs is so elegant and sweet it's like see but more elegant absolutely I think again when you look at what Apple's mission has been and you look at sa peace mission right we talked about helping companies run better and transforming lives so i think i think the missions actually do intersect here and and I think SI p is a very different company than we were you know 20 years ago so for us now that user experience and product while agent by the way absence proc solid quality absolutely so I think I i think you know we converge on those areas so I would say that it's a it's a very natural farming from Apple's a brilliant strategy because it's interbred and it prizes hard you guys to live that every day it's not easy and we see venture-backed startups try to get into the enterprise and the barriers just go up every day with dev ops and you know integration now is mrs. Ann we could talk about another segment with a break but we haven't gone to the whole what does it mean to integrate that's a whole nother complex world that requires orchestration really really interesting and you just write that over the weekend and a hackathon absolutely and I think now with the tools that we're making available on our cloud platform as part of a platform as a service I think again that's the way where we can get the user interface the experience that apple provides combined with the enterprise solid stuff that we do that's awesome I'll give you guys both the final word on the segment and a bumper sticker what is this show about this year what is s AP sapphire 2016 about what's the the bumper sticker what's the theme I you know what I love builds words today I think it's about empathy it's about making it real for customers I think you'll see you know our demos are joined demos as well both in an essay p IBM Joint Center here as well as in the IBM boat you see real life solutions that are real that customers can touch that they can use so I'd like to go with that predicate real hey listen to me it's a really simple to two simple words digital reinvention every single company in the world is trying to become a digital company I think about my Hilton app when I checked into my hotel yesterday and I opened my door with my iPhone my hotel my room door you know it is every company is endeavoring to become a digital company and what what sapphire is about this year is everyone realizes at the core of every company is that platform that s AP gahanna or ECC platform and every major enterprise that's waking up to that suddenly realizes we've got to do something an essay p nibm our partner here to help thanks guys so much for sharing your insight digital reinvention going on for real here at sapphire this is the cube you're watching the cube live at sapphire now we'll be right back thank you

(mumbling) >> Voiceover: Covering Sapphire now. Headline sponsored by SAP HANA Cloud, the leader in platform as a service. With support from Console Inc., the cloud internet company. Now, here are your hosts, John Furrier and Peter Burris. >> We are here live at SAP Sapphire. This is SiliconANGLE Media's The Cube. It's our flagship program. We go out to the events and extract the signal to noise and want to do a shoutout to our sponsors SAP HANA Cloud and Console Inc. at console cloud, connecting the clouds together. I'm John Furrier with my co-host Peter Burris. Our next guest is Reggie Jackson, winner, athlete, tech athlete now, entrepreneur, overall great guy, and a cube alumni. Four years ago, we interviewed him here at SAP Sapphire. Welcome back, Reggie, to The Cube. Thanks for coming on. John, thank you very much. It's good to be here with old friends. We were havin' a little conversation about baseball there, but good to see you guys. Yeah, and obviously, the baseball, we were just talkin' about the whole fisticuffs and the glee of the grand slam walk-off. >> Reggie: Good stuff, good stuff. >> It's a good pivot point in some of the things that you're workin' on in here, the conversations in the tech world, which is social media and that notion of celebrating in a world of Instagram and Snapchat and social media. Certainly, ya flip the bat, the views go up. But then, baseball has these (laughing) unwritten rules, right. So does corporations. And so we're now a new era. Is baseball safe now with these unwritten rules and should they maintain those, certain things that have kept the game in balance? But yet with social media, the players are their own brand. And you certainly were a brand, even back in your day, which is a pioneer. What's your thoughts on that? >> You know John, Peter, I don't like the idea of someone going out of their way to promote their brand. Some of the great brands to me in history, Babe Ruth, Ty Cobb, the great Jim Brown, Joe Montana, Michael Jordan. And Michael Jordan would be a prominent example where technology and TV enhanced who he was. And he had someone behind him to enhance his brand, Nike, Phil Knight, who was a real pioneer. I'm not so in favor, I'm not in favor at all of someone manufacturing themselves as a brand. And I hear players talk about their brand and about trying to create something. If you're great, if you deserve it, I don't think Stephen Curry works on his brand. I think he works on bein' a great player. I think he works on bein' a great teammate. I think he does his best to maximize his skill set. And he's nothing but a gentleman along the way. He'll celebrate with joy once in awhile, with the Curry moves, which we've come to recognize. But for guys that talk about the manufacturing of their brand, there's something about it that's manufactured. It's not real, it's false. And I don't like it. I think it's okay, the Snapchats and the Google+ and all of the stuff, Twitter and Facebook and all that stuff, all of the things that go along with trying to create some hubbub, etc. I'm okay with that. >> So you're saying if it's not deserved. People are overplaying their hand before earning it. >> A lot of it, John, a lot of it. Joe Montana didn't work on his brand, he was great. Jim Brown didn't work on his brand, he was great. I don't want to use Jimmy Brown. I want to use Montana because even young people today will know Joe Montana. Tom Brady, Peyton Manning, they're not about their brand. They're about being classy, being great, being part of a team, being a leader, presenting themselves as something that's respected in the NFL, across the United States. Go ahead, Pete. >> So even though it's cheaper to get your name out there, you still believe in let your performance speak for itself. >> You got to be real about it. Ya got to be who you are. If you're not a great player, get out of the way. Get out of the space. So manufacturing your brand. I played with the Yankees. I was in the era of Cosell and Billy Martin and George Steinbrenner. We won championships with the team. I was part of something that helped me become recognized. And so in our era, the Sandy Koufax's became brands because they were associated with greatness around them. They stood out and so they earned that tremendous brand. >> We were just watching Graig Nettles gettin' taken out by George Brett in that big game and also the pine tar, we kind of gettin' some good laughs at it. You look at the balance of personalities. Certainly, Brett and Nettles and your team and you had a great personality, winning championships. Worked together as a team. And so I want to ask you that question about the balance, about the in baseball, certainly, the unwritten rules are a legacy and that has worked. And now in a era of personalities, in some cases, people self-promoting themselves, people are questioning that. Your thoughts on that because that applies to business too 'cause tech athletes or business athletes have a team, there are some unwritten rules. Thoughts on this baseball debate about unwritten rules. >> Pete and John, I'll try to correlate it between some tech giants that have a brand. I just left a guy with a brand, Bill McDermott, that runs SAP. Even Hasso, the boss. The face now of SAP is Bill McDermott. Dapper, slender, stylish, bright. It comes across well. So maintaining that brand, to me, relates to SAP, bills a great image for it. He's stylish, he's smooth, he's smart. He's about people. He presents himself with care. So that is a brand. I don't think it's manufactured. That's who he is in real life. If you take a look, and I'll go back to Steph Curry because that name resonates and everyone recognize it. That style of cool, that style of control, that style of team and care. And he presents to us all that he cares about us, the fan, his team, his family. And so those are things and I think you can go from the tech world. Bill Gates had a brand. Brilliant, somewhat reclusive, concerned about the world, concerned about the country, concerned about his company. And so that resonated it Microsoft because that's who he really was. Some of the people today don't really recognize that Jobs was thrown out of Apple. He was pushed out. All of his brilliance, which was marketing. And the gentleman there that really was the mind for the company, Steve Wozniak, happens to be here at SAP Sapphire. Today, I think he speaks. But those brands were real, not manufactured. And so, in today's world, I think you can manufacture a brand. And then all of a sudden, it'll crumble. It'll go away in the future. But the great brands of whether it's Jackie Robinson or whether it's Jack Welch or whether it's George Steinbrenner and the Yankee brand, those brands were real. They were not manufactured. Those guys were eccentric. They were brilliant. Go ahead. >> And also, they work hard. And I want to point out a comment you made yesterday here at the event. You were asked a question up on stage about that moment when you hit the home runs. I think we talked about it last time. I don't necessarily want to talk about the home runs. But you made a comment I'd like you to expand on and share with the audience. 'Cause you said, "I worked hard," but that day during warm-ups, you had batting practice. You made a comment that you were in the zone. So working hard and being great as it leads up to that. But also, in the moment, 'cause that's a theme these days, in the moment, being ready and prepared. Share your thoughts on what you meant by you had a great batting practice and you just felt it. >> I'm going to take it to what you say is in the moment. I remember when I was talkin' about it yesterday, which you reference to, when I had such a fantastic batting practice. I walked by a coupla sports writers in that era. Really well-known guys, Dave Anderson, New York Times. I can't think of his name right now, but it'll come to me, of the Daily News. It was like hey man. >> John: You were rockin' it out there. >> I kind of hope I didn't leave it out here. (laughing) That was in the moment and at the same time, >> I mean, you were crushing it. >> Yes, when the game started, I got back in that moment. I got back in what was live, what was now, what was going on. Certainly, I think our world now with the instant gratification of sending out a message or tweeting to someone or whatever certainly in the moment is about what our youth is and who we are today as a country, as a universe. >> But you didn't make that up. You worked hard, but you pulled it together in the moment. >> A comment with that is I went and did something with ESPN earlier this year in San Francisco, in Oakland with Stephen Curry. They said, "Reggie, we want ya to come up "and watch his practice, his pre-game." And it was very similar to your batting practice, where people come out and watch, etc. And so I was looking forward to it and I like to go to the games about an hour and a half or two hours early so I can see warm-up and see some of the guys and say hello. And I got a chance to watch Steph Curry. I know his dad. And happened to be the first time I went this year, the dad, Carolina, the Panthers were in town. Not the Panthers. Come on, help me, help me, help me. >> Peter: The Wizards? >> No, no, no, the Carolina. >> Peter: Carolina Panthers. >> The Carolina Hornets. >> John: Hornets. >> Were there and I know his dad, Dell Curry. And we talked a little bit. But then, Steph came out and I watched him. And I watched the dribbling exhibition. I watched the going between the legs and behind the back and the fancy passing, etc. And I watched the shots, the high-arcing threes, the normal trajectory threes, the high shots off the backboard and things like that that he did. The left-handed shots, the right-handed shots. And the guy asked me what I thought of the show. And I said, "Well, it's a cool show, "but I'm going to see all that tonight." And me watching him, the behind the backs, the between the legs, the passes, the high-arching shots from three, the high-arching touches off the glass. He does all that. >> John: He brought it into the game. >> Yeah, I said so, (laughing) >> Peter: That is his game. >> It's not a show, but that's his game. >> So Reggie, you did an interesting promotion, Reggie's Garage, where you bought a virtual reality camera and you created a really nice show of your garage demonstrating your love >> Reggie: 360. >> Peter: of cars, 360. Talk a little bit about that. And then if ya get a second, imagine what baseball's going to be like as that technology becomes available and how some of the conversation that we're having about authenticity, the fan coming into the game. >> An experience. >> Is going to change baseball. Start with the garage and how that went and then how ya think that's going to translate into baseball, if you've had any thoughts on that. >> In the technology that was used, certainly I enjoyed it. While I was doing it, I noticed where the cameras were in different spots. There was one on the floor of my car. There was one in the backseat. And then there was someone following us as closely as they could. But you could see everything. You'd see the shift and you could see my feet. It was like you were with me. When we did the 360 inside the garage as well, you could listen to me and then you could use your finger and spin around. And they had these special headset and special glasses that you could look around, just with your headset on, and see all around the room. Behind you, in front of you. And so it's an experience that I think is going to become part of who we are as a nation, who we are as a people watching television, that you're going to really feel like you're in the room. I think it's going to be exciting. And I think it's going to be fun. And when you're talking about products, when you're talking about my website, if you will, with the focus on automotive parts, where a guy can go in and shop and get any part he wants for a vehicle, you really can build a complete car from my website. You can buy a frame. You can buy body parts. You can buy a horn, an engine, brakes, tires, grills, turn signals, the whole nine yards. And it gives you an experience through 360 video of really walking into the store, walking into the building, walking into the stadium and looking around to see the hot dog stand, see the dugout, see the pitcher and the hitter, to see the parts in the garage, to see the cars and take a look and view at everything that's there. >> How are players going to react to havin' the fans virtually right there with them? >> I don't think it bothers you. I don't think ya notice. I don't think they'll show anything that will affect the player that he's going to be concerned about. I think you'd have to be sensitive if they start microphoning, start micing up and then the looseness of the language would impact. So I don't think they'll go that far. But I do think the more that you can see, the more attractive the game becomes, the more interested that you can get people. When I broadcast baseball for ABC back in the 80's, I always tried to broadcast for the lady of the house, while she worked, while she cooked the meal, she didn't have time to think about a backup slider or the fastball that painted the outside corner, the changeup, etc., the sinker. I tried to broadcast for her interpretation so I could attract another fan to the game. So I think that the technology and the viewing that you'll see from behind home plate, from under the player's feet while he's running down the bases and the slides and things of that nature, Pete, I think are going to be exciting for the fan and it'll attract more fans, attract a new type of television it's going to produce, etc. So it's exciting. >> Reggie, thanks for comin' on The Cube again. Appreciate your time. I ask ya final two questions that I want to get your thoughts on. One is obviously the cars. Reggie's Garage is goin' great. And you shared with us last time on The Cube, it's on YouTube, about you when you grew up and decide football and baseball. But when you were growin' up, what was your favorite car? What was that car that you wanted that was out of reach? That car that was your hot rod? And then the second question is, we'll get to the second question. Answer that one first. What was you dream car at the time? How did ya get >> Reggie: The dream car >> John: hooked on this? >> at the time. I had a '55 Chevrolet that I bought from a buddy by the name of Ronny Fog. I don't even know if he's still around anymore. Out of Pennsylvania. I had $300 and my dad gave me $200. I'd saved up mine from workin' for my dad. But my dream car was I went to school with a guy named Wayne Gethman and another guy named Irwin Croyes. I don't know Wayne Gethman anymore. But from the age of 16, I reengaged with Irwin Croyes, who happens to be a business investing type guy in the city of Philadelphia, right where we're still from. He's a car collector. And he drove a '62 Corvette and so did Wayne Gethman. And I always wanted one. And I now happen to have four. (laughing) >> He who get the most toys wins. Final question, 'cause you're such a legend and you're awesome and you're doin' so much work. And you're very active, engaged, appreciate that. Advice to young athletes coming up, whether they're also in business or a tech athlete or a business athlete. But the sports athletes today got travel ball, you got all this stuff goin' on. The idols like Stephen Curry are lookin' great. Great role models now emerging. What advice do you give them? >> John's got a freshman in high school. I got a junior in high school. What would ya say to 'em? >> You know, I'll tell ya. When you're young, the people you want to listen to are Mom and Dad. No one, and I'll say this to any child from the age of eight or nine years old, five, six years old to 17, 18, 19, 20, all the way up, now my daughter's 25. All the way up to the end of your parents' days. No one cares for you more than your mother or your father. Any parent, whether it's a job or whether their success in life, number one in that man or woman, mom or dad, number one in their life is their children. And so for kids, I say if there's any person you're going to listen to for advice in any path you want to walk down, it's the one that your parents talk to you about or how they show you. That is what I would leave as being most important. For kids, anything, idea that you have that you believe you can do, whether it's the athlete like Stephen Curry that has created shots and done things on the basketball court that he envisioned, that he thought about. Or whether it's the next Steve Jobs who happens to be Mark Zuckerman, who I don't know Mark is 30 years old yet. >> John: He just turned 30. >> It's an idea. He's born around the same time. He's born this week. His birthday is in this week. My birthday's tomorrow. >> John: Happy birthday. >> But thank you. Anything that you can think of in today's world of technology. With places like Silicon Valley where they take dreams and create foundations for them. I had a dream about a website that would sell automotive parts and you could go to my site and buy anything for your car. We've got about 75,000 items now. We'll get to 180,000 in a few months. We'll get to a half a million as soon as my technology is ready for it. But we have things to pay attention to and look into and issues to make sure that we iron out that aren't there for our consumer, for ease of navigation, ease of consumption and purchasing. Any idea that you have, take time to dream. It's much more so than taking time to dream when I was a young kid. Because my father would say, "Stop daydreamin' "and wastin' time." >> John: Get to work. >> Reggie: In today's world, for our children, I say take time to create a vision or to create something new. And go to someone that's in the tech world and they'll figure out a way of helping you manifest it into something that's a reality. >> Listen to your parents, kids. And folks out there, dream, build the foundation, go for it. Reggie Jackson, congratulations for being a Cube alumni again, multi-return. >> Peter: Thank you very much. >> John: Appreciate it. Congratulate on all your continued success. You're a legend. Great to have you on. And thanks so much for comin' on The Cube. >> Peter: And happy 70th birthday. >> John, Pete, always a pleasure. >> John: Happy birthday. >> Thank you very much. >> Have some cake for Reggie. It's The Cube, live here in Orlando. Bringin' all the action here on The Cube. I'm John Furrier with Peter Burris with Reggie Jackson. We'll be right back. (electronic music)