>>we're back, we're assessing the as a service space. H. P. S. Green Lake announcements, my name is Dave balanta, you're watching the cube die on Hinchcliffe is here along with Holger muller, these are the constellation kids, extraordinary analysts guys. Great to see you again. I mean it super experienced. You guys, you deal with practitioners, you deal your technologist, you've been following this business for a long time. Diane, We spoke to Holger earlier, I want to start with you uh when you look at this whole trend to as a service, you see a lot of traditional enterprise companies, hard traditionally hardware companies making that move for for a lot of obvious reasons are they sort of replicating in your view, a market that you know well and sas what's your take on how they're doing generally that trend and how HP is >>operating well. Hp has had a unique heritage. They're coming at the whole cloud story and you know the Hyper Scaler story from a different angle than a lot of their competitors and that's mostly a good thing because most of the world is not yet on the cloud, They actually came from H. P. S original world, their line of servers and networks and so on. Um and and so they bring a lot of credibility saying we really understand the world you live in now but we want to take you to that that as a service future. Uh and and you know, since we understand you so well and we also understand where this is going and we can adapt that to that world. Have a very compelling story and I think that with green like you know, was first started about four years ago, it was off to the side uh you know, with all the other offerings now it's it's really grown up, it's matured a lot and I think you know, as we talked about the announcements, we'll see that a lot of key pieces have fallen into place to make it a very compelling hybrid cloud option for the enterprise. >>Let's talk about the announcement. Was there anything in particular that stood out the move to data management? I think it's pretty interesting is a tam expansion strategy. What's your take on the >>announcement? Well, the you know, the unified analytics uh story I think is really important now. That's the technology piece where they say, they say we can give you a data fabric, you can access your data outside of its silos. It doesn't address a lot of the process and cultural issues around data ownership inside the enterprise, but it's you know, having in the actual platform and as you articulating it as a platform, that's one of the things that was also evident, they were getting better and better at saying this is a hybrid cloud platform and it has all the pieces that you would expect, especially the things like being able to bring your data from wherever it is to wherever people needed to be. Uh you know, that's the Holy Grail, so really glad to see that component in particular. I also like the cloud adoption framework saying we understand how to take you from this parochial world of servers that you have and do a cloud date of hybrid world and then maybe eventually get you get you to a public cloud. We understand all the steps and all the components uh I think that's uh you know, I have a study that fully in depth but it seems to have all the moving parts >>chime in anything stand out to, you >>know, I think it's great announcements and the most important things H. P. S and transformation and when you and transformation people realize who you've been, the old and they're here. Maybe the mass of the new but an experienced technology but I will not right away saying oh it's gonna happen right. It's going to happen like this is gonna be done, it's ready, it's materials ready to use and so on. So this is going to give more data points, more proof points, more capabilities that HB is moving away from whatever they were before. That's not even say that to a software services as a service as you mentioned provider. It's >>been challenging, you look at the course of history for companies that try to go from being a hardware company to a software company, uh HP itself, you know, sort of gave up on that IBM you could say, you know semi succeeded but they've they've struggled what's different >>That will spend 30 billion, >>30 >>four. Exactly. So and of course Cisco is making that transition. I mean every traditional large companies in that transition. What about today? Well, first of all, what do you think about HP es, prospects of doing so? And are there things today in the business that make that, you know more faster, whether it's containers or the cloud itself or just the scale of the internet? >>I mean it's fascinating topic, right? And I think many of the traditional players in the space failed because they wanted to mimic the cloud players and they simply couldn't muster up the Capex, which you need to build up public cloud. Right? Because if you think of the public cloud players then didn't put it up for the cloud offering, they put it up because they need themselves right, amazon is an online retailer google as a search and advertising giant Microsoft is organic load from from from office, which they had to bring to the cloud. So it was easier for them to do that. So no wonder they failed. The good news is they haven't lost much of their organic load. Hp customers are still HP customer service, celebrity security in their own premises and now they're bringing the qualities of the cloud as a service, the pay as you go capabilities to the on premise stack, which helps night leader to reduce complexity and go to what everybody in the post pandemic world wants to get to, which is I only pay for what I use and that's super crucial because business goes up and down. We're riding all the waves in a much, much faster way than ever before. Right before we had seven year cycles, it was kind of like cozy almost now we're down to seven weeks, sometimes seven days, sometimes seven hour cycles. And I don't want to pay for it infrastructure, which was great for how my business was two years ago. I want to pay for it as I use it now as a pivot now and I'm going to use >>Diane. How much of this? Thank you for that whole girl. How much of this is what customers want and need versus sort of survival tactics on the vendors >>part. So I think that there, if you look at where customers want to go, they know they have to go cloud, they had to go as a service. Um, and that they need to make multiple steps to get there. And for the most part, I see green light is being a, a highly credible market response to say, you know, we understand IT better, we helped build you guys up over the last 30 years. We can take you the rest of the way, here's all the evidence and the proof points, which I think a lot of the announcements provide uh, and they're very good on cloud native, but the area where the story, um, you may not be the fullest strength it needs to be is around things like multi cloud. So when I talked to almost any large organization C I O. They have all the clouds need to know, how do I make all this fit together? How do I reconcile that? So for the most part, I think it's closely aligned with actual customer requirements and customer needs. I think these have additional steps to go >>is that, do you feel like that's a a priority? In other words, they got to kind of take a linear path. They got to solve the problem for their core customer base or is it, do you feel like that's not even necessarily an aspiration? And it seems like customers, I want them to go. There is what I'm >>inferring that you're, so I do. Well let's go back to the announcement specifically. So there's there are two great operational announcements, one around the cloud physics and the other one around info site. It gives a wealth of data, you know, full stack about how things are operating, where the needs are, how you might be able to get more efficiencies, how you can shut down silicon, you're not using a lot of really great information, but all that has to live with a whole bunch of other consoles and everybody is really craving the single piece of glass. That's what they want is they want to reduce complexity as holder was saying and say, I want to be able to get my arms around my data center and all of my cloud assets. But I don't want to have to check each cloud. I want it in one place. So uh, but it's great to see those announcements position them for that next step. They have these essential components that are that look, you know, uh, they look best to breed in terms of their capabilities are certainly very modern now. They have to get the rest of that story. >>Hope you were mentioning Capex. I added it up I think last year the big four include Alibaba, spent 100 billion on the Capex and generally the traditional on prem players have been defensive around cloud. Not everything is moving to the cloud, we all know that. But I, I see that as a gift in a way that the companies like HP can build on top of into Diane's point that, you know, extend cross clouds out to the edge, which is, you know, a trillion dollar opportunity, which is just just massive. What are your thoughts on HBs opportunities there and chances of maybe breaking away from the pack >>I think definitely well there's no matter pack left, like there's only 23, it's a triumvirate of maybe it's a good thing from a marketing standpoint. There's not a long list of people who give me hardware in my data center. But I think it increases their chances, right? Like I said, it's a transformation, there's more credibility, there's more data point, there's more usage. I can put more workloads on this. And I see, I also will pay attention to that and look at that for the transformation. No question. >>Yeah. And speaking of C. I. O. S. What are you hearing these days? What's their reaction to this whole trend toward as a service? Do they, do they welcome it? Do they feel like okay it's a wait and see. Uh I need more proof points. What's the sentiment? >>Well, you have to divide the Ceo market basically two large groups. One is the the ones that are highly mature. They tend to be in larger organizations are very sophisticated consumers of everything. They see the writing on the wall and that for most things certainly not everything as a service makes the most sense for all the reasons we know, agility and and and speed, you know, time to value scalability, elasticity, all those great things. Uh And then you have the the other side of the market which they really crave control. They have highly parochial worlds that they've built up um that are hard to move to the cloud because they're so complex and intertwined because they haven't had that high maturity. They have a lot of spaghetti architecture. They're not really ready to move the cloud very quickly. So the the second audience though is the largest one and it's uh you know, the hyper scales are probably getting a lot of the first ones. Um, but the bigger markets, really the second one where the folks that need a lot of help and they have a lot of legacy hardware and software that they need to move and that H P. E understands very well. And so I think from that standpoint they're well positioned to take advantage of an untapped market are relatively untapped market in comparison. Hey, >>in our business we all get pulled in different directions because it would get to eat. But what are some of the cool things you guys are working on in your research that you might want people to know about? >>Uh, I just did a market overview for enterprise application platforms. I'm a strong believer that you should not build all your enterprise software yourself, but you can't use everything that you get from your typical SAs provider. So it's focusing on the extent integration and build capabilities. Bill is very, very important to create the differentiation in the marketplace and all the known sauce players basically for their past. Right? My final example is always to speak in cartoons, right? The peanuts, right? There's Linus of this comfort blanket. Right? The past capability of the SARS player is the comfort blanket, right? You don't fit 100% there or you want to build something strategic or we'll never get to that micro vertical. We have a great enterprise application, interesting topic. >>Especially when you see what's happening with Salesforce and Service now trying to be the platform platforms. I have to check that out. How about >>Diane? Well and last year I had a survey conducted a survey with the top 100 C IOS and at least in my view about what they're gonna do to get through this year. And so I'm redoing that again to say, you know, what are they gonna do in 2022? Because there's so many changes in the world and so, you know, last year digital transformation, automation cybersecurity, we're at the top of the list and it'll be very interesting. Cloud was there too in the top five. So we're gonna see what, how it's all going to change because next year is the year of hybrid work where we're all we have to figure out how half of our businesses are in the office and half are at home and how we're gonna connect those together and what tools we're gonna make, that everybody's trying to figure >>out how to get hybrid. Right, so definitely want to check out that research guys. Thanks so much for coming to the cubes. Great to see you. >>Thanks. Thanks Dave >>Welcome. Okay and thank you for watching everybody keep it right there for more great content from H. P. S. Green Lake announcement. You're watching the cube. Mm this wasn't

>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020. Special coverage sponsored by AWS Global Partner Network. Hello, everyone. This is Dave Balanta. And welcome to the cubes Virtual coverage of AWS reinvent 2020 with a special focus on the A p N partner experience. I'm excited to have two great guests on the program. Fernando Castillo is the head s a p on AWS Partner Network and s A P Alliance and AWS and Stephen Jones is the general manager s a p E c to enterprise that aws Gentlemen, welcome to the Cube. Great to see you. >>I'm here. >>So guys ASAP on AWS. It's a core workload for customers. I call it the poster child for mission Critical workloads and applications. Now a lot has happened since we last talked to you guys. So So tell us it. Maybe start with Stephen. What's going on with Sapna Ws? Give us the update. >>I appreciate the question Day. Look, a lot of customers continue to migrate. These mission critical workloads State of us on a good example is the U. S. Navy right? Who moved their entire recipe landscape European workload AWS. This is a very large system of support. Over 72,000 users across 66 different navy commands. They estimate that 70 billion worth of parts and goods actually transact through the system every year. Just just massive. Right? And this this type of adoptions continued to accelerate a very rapid clip. And today, over 5000 customers now are running SFP workloads. I need to be us on there really trusting us, uh, to to manage and run these workloads. And another interesting stat here is that more than half of these customers are actually running asap, Hana, which is a safe He's flagship in memory database. >>Right, Fernando, can you add to that? >>Sure. So definitely about, you know, the customs are also SCP themselves continue to lose a dollar less to run their own offerings. Right? So think about conquer SCP platform. SCP analytics were when new offers like Hannah Cloud. In addition to that, we continue to see the P and L despondent network to grow at an accelerated pace. Today we have over 60 SNP company partners all over the world helping SFP customers s O that customers are my green. There s appeal asking CW's. They only look for reduced costs, improved performance but also toe again access to new capabilities. So innovate around their core business systems and transform their businesses. >>So for now, I wonder if I could stay with you for a minute. I mean, the numbers that Steve was putting out there, it's just massive scale. So you obviously have a lot of data. So I'm wondering when you talk to these customers, Are you discerning any common patterns that are emerging? What are some of the things that you're hearing or seeing when you analyze the data? >>Sure. So just to give a couple example right. Our biggest customers are doing complete ASAP. Transformations on Toe s four Hana. Their chance they're going to these new S a p r p code nine All customers have immediate needs, and they're taking their existing assets to AWS, so looking to reduce costs and improve performance, but also to sell them apart for innovation. This innovation is something that operation or something that they can wait. They need it right now. It's they This time to innovate is now right on some of these customers saying that while s and P has nice apart. So that is a multi year process on most organizations and have a look from waiting for this just before they start innovating. So instead of that, they focus on bringing what they have on start innovating right away on Steve has some great stories around here, so maybe Steve can share with that. Goes with that? >>Yeah, that'd be great, Steve. >>Yeah. Look, I think a good example here on and Fernando touched it, touched on it. Well, right. So customers coming from all kind of different places in their journey aws as it relates to this this critical workload and some are looking to really reap the benefits of the investments they made over the last couple decades sometimes. And Vista is a really good example Here, um there a subsidiary of Cook Industries, they migrated and moved their existing S a P r P solution called E c C. To AWS. They estimate that this migration alone from an infrastructure cost savings perspective, has netted them about two million per year. Additionally, you know, they started to bring some of the other issues they were trying to solve from a business perspective, together now that they were on the on the on the business on the AWS platform. And one thing that recognizes they had different data silos, that they had been operating in an on premises world. Right? So massive factories solution and bringing all of that data together on a single platform on AWS and enriching that with the SCP data has allowed them to actually improve their forecasting supply chain processes across multiple data sources and the estimate that that is saving them additional millions per year. So again, customers are not necessarily waiting to innovate. Um, but actually moving forward now. >>All right, so I gotta ask, you don't hate me for asking this question, but but everybody talks about how great they are. Supporting s a P is It's one of the top, of course, because s a p, you know, huge player in the in the application space. So I want you guys to address how aws specifically compares Thio some of your competitors that are, you know, the hyper scaler specifically as it relates to supporting S a P workloads. What's the rial differential value that you guys bring? Maybe Steve, you could start >>Sure, you're probably getting to know us a little bit. Way don't focus a lot on competition, Aziz mentioned week We continue to see customers adopt AWS for S a p a really rapid clip. And that alone actually brings a lot of feedback back into how we consider our own service offerings as it relates to this particular workload on that, that's it. That's important signal right for what we're building. But customers do tell us the security performance availability matters, especially for this workload, which, you know, to be honest, is the backbone of many, many organizations. Right? And we understand why. And there was a study that was done recently about a. D. C. Where they found that even a single hour of unplanned downtime as a released this particular workload could cost millions. And so it's it's super important. And if you look at, um, you know, publicly available data from an average perspective, um, it has considerably less downtime than the other hyper scale is out there way. Take the performance and availability of oh, our entire global footprint and in this workload in particular, super important. >>Well, you know, that's a great point, Steve. I mean, if you got critical mission critical applications like ASAP supporting the business, that's driving revenue. It's driving productivity. The higher the value of the application, the greater the impact when it's down, I wonder, Fernando, you know, Steve said, You guys don't focus on the competition. Well, is an analyst. You know, I always focused on the competition, So I wonder if you're gonna add anything to that. >>Sure. So again, as you can imagine, multiple analyst called Space right. And, uh, everybody shares information. And analysts have agreed that Italy's clean infrastructure services, including the three quite a for CP across the globe. So we feel very humble and honor about this recognition on this encourages to continue to improve ourselves to give you a couple examples for a 10 year in a row. Italy's US evaluated as a leader in the century Gardner Magic Quadrant, right for cloud infrastructure from services. And, as you know, the measure to access right they measure very execute on complete, insufficient were the highest, both of them. Another third party, just not keep with one is icy, right? You know, technology research dreamers, you already you might know advice for famous Well, the reason they publisher s a p on infrastructure service provider lands reports long name which, basically, the analyzers providers were best suited to host s a. P s four hana workloads on more broadly s a p Hannah landscapes, you know, very large scape ASAP 100 landscapes. So they recognize it, at least for the third year in a row. And conservative right, the best class enterprise. Great infrastructure towards security performances, Steve mentioned, but also making the panic community secure. Differentiation. Andi, they posted. They mentioned it all us as a little position in quadrant for the U. S. U K France, Germany, the Nordics in Brazil. So again, really honor and humble on discontinued in court just to continue to improve. >>You know, Steve, I just wrote a piece on Cloud 2030 trying to project what the next 10 years is gonna look like in one of the I listed a lot of things, but one of the things I talked about was some of the technical factors like alternative processors, specialized networks, and you guys have have have really, always done a good job of sort of looking at purpose built, you know, stuff that that can run workloads faster. How relevant is that in the the S A P community? >>Oh, that's a great question, David. It's It's absolutely relevant. You take a look at what? What we've done over the years with nitro and how we've actually brought the ability for customers to run on environmental infrastructure but still have that integrated, uh, native cloud experience. Uh, that is absolutely applicable to Unless if you workload and we're actually able toe with that technology, bring the capability to customers to run thes mission critical workloads on instances with up to 24 terabytes of brand, albeit bare metal, but fully integrated into the AWS network fabric, >>right? I mean, a lot of people, you know, need that bare metal raw performance on, and that makes sense that you've been, you know, prioritize such an important class of workload. I'm not surprised that that I mean, the numbers that you threw out a pretty impressive eso. It's clear you're leading the charge here. Maybe you could share a little glimpse of what's coming in the future. Show us a little leg, Steve. >>Yeah, well, look, uh, we know that infrastructure is super important. Thio. Our customers and in particular the customers are running these mission critical workloads. But there's a lot of heavy lifting, uh, that that we also want to simplify. And so you've seen some indications of what we've done here over the years, uh, ice G that Fernando mentioned actually called out. AWS is differentiating here, right? So for for many years, we've actually been leading in releasing tools for customers to actually orchestrate and automate the deployment of these types of worthless so ASAP in particular. I mean, if you think about it a customer who is coming to a to a hyper scale platforms like AWS and having to learn what that means, Plus understand all the best practices from S, A, P and AWS to make that thing really shine from a performance and availability perspective, that's a heavy asked. Right? So we put a lot of work from a tooling perspective into into automating this and making this super simple not just for customers, but also partners. >>Anything you wanna chime in on that particular the partner side, Fernando. >>Sure. So this is super important for public community, right? As you can imagine, the tooling that we're bringing together toe. The market is helping the Spanish to move quicker, right? So they don't have to reinvent. They will all the time. They will just take this and move and take it and move forward. Give an example. One of our parents in New York, three hosts. Thanks for lunch. We start with Steve just reference right. They want to create work clothes in an automated way. Speeding up the delivery time. 75% corporation is every environments. So it just imagine the the impact of these eso a thing here that is important is our goal is to help customers and partners move quicker, removing any undifferentiated heavy lifting, right, Andi, that's kind of the mantra of this group. >>You know, when you think about what Doug Young was saying is in the keynote, um, the importance of partners and I've been on this kick about we've moved in this industry from products to platforms, and the next 10 years is gonna be about leveraging ecosystems. The power of many versus the resource is of a few or even one is large is a W s so so partners air critical on I wonder if you could talk toe the role that that the network partners air playing in affecting S a p customer outcomes and strategies. Maybe Steve, you could take that first. >>Yeah, but look, we recognize that the migration on the management of these systems it's complex, right? And for years, we've invested in a global community of partners many partners who have been fundamental to s a p customer success over over a couple decades, Right? And so, um, that there are some nuances that that need to be realized when it comes to running ASAP on on a hyper scale platforms like AWS. And so we put a lot of work into making sure these partners are equipped to ensure customers have have a really good experience. And I mean, in a recent conversation I had with a CEO of a large, uh, CPG company, he told me he reflected that the partners really are the glue. That kind of brings it all together for them. And, uh, you know, just to share something with you today, our partners, our partner community network for S. If he is actually helping over 90% of net new customers who are coming toe migrate as if you were close to AWS, so they're just absolutely critical. >>So, Fernando, there's the m word, the migration, you know, it's you don't want to unless you have to, but people have to move to the cloud. So So what can you add to this conversation? >>Sure, they So again, just to echo what Steve mentioned, right? Uh, migration. Super important. We have ah group of partners that are right now specializing in migration projects. And they have built migration factories. You may have seen some of them. They have been doing press releases through the whole year saying that they're part of these and their special cells they're bringing to the helping customers adopt AWS. So they go through the next, you know, very detailed process. We call them map for ASAP partners. So they have these incremental value on top of being SCP competent funds, which I referred earlier on. This group has, as mentioned, you know, show additional capability to safeguard these migrations on. Of course, we appreciate and respect and we have put investment programs for them to help them support their own customers right in those in these migrations. But because the SNP ecosystem on it. But it's not about only migrations, right? One important topic that we need technologies as you as Steve mentioned, we have these great set of partner of customers have trusted us or 5000 through a year on these, uh, these customers asking for innovation right there, asking us how come the ecosystem help us innovate faster? So these partners are using a dollars a plan off innovation, creating new solutions that are relevant for SCP. So basically helping customers modernize their business processes so you can take an example like Accenture Data Accelerator writers taking SCP information and data legs Really harm is the power of data there or the Lloyd you know, kinetic finances helping, you know, deploy Central finance, which is a key component of SCP, or customer like partners like syntax that has created our industrial i o. T. Offering that connects with the SNP core. So more and more you will see thes ecosystem partners innovating on AWS to support SNP customers. >>You know, I think that's such an important point because for for decades have been around for a while. It's the migrations air like this. Oftentimes there's forced March because maybe a vendor is not going to support it anymore. Or you're just trying to, you know, squeeze Mawr costs out of the lemon. What you guys are talking about is leveraging an ecosystem for innovation and again that ties into the themes that we're talking about about Cloud 2030 in the next decade of innovation. Let's close, guys. What can customers ASAP customers AWS customers expect from reinvent this year? Um, you know, maybe more broadly, what can they expect from A W S in the coming 12 months? Maybe, Steve, you could give us a sense, and then Fernando could bring us home. >>You bet. Look, um, this year we've really tried to focus on customer stories, right? So we've we've optimized. There's a number of sessions here agreement this year. We want customers and partners to learn from other from other customer experiences, so customers will be able to listen to Bristol Myers Squibb talk about their performance, their their experiences, Alando Newmont's and Volkswagen. And I'll be talking about kind of different places where they are on this, this journey to cloud and this innovation life cycle, right, because it really is about choice and what's right for their business. So we're pretty excited about that. >>Yeah. Nice mix of representative Industries there. I Fernando bring us home, please. >>Sure. So, again, we think about 21 in the future. Rest assured, we'll continue to invest heavily to make sure it values remains the platform innovation. Right on choice for recipe customers where a customer wants to move their existing investments on continue to add value. So what they have already done for years or goto export transformation. We're here to support their choice. Right? And we're committed to that as part of our customers Asian culture. So we're super excited about the future. And we're thankful for you to spend time with us today. >>Great, guys, Look, these are the most demanding workloads we're seeing that that rapid movement to the cloud is just gonna accelerate over the coming years. Thanks so much for coming on The Cube. Really appreciate it. >>Our pleasure. Thank >>you. All >>right. Thank you for watching everyone keep it right there from or great content. You're watching the cube aws reinvent 2020