>>Okay, welcome back to everyone. Cube's live coverage of VMware Explorer, 2022. I'm John fur, host of the cube. Two sets three days of live coverage. Dave Ante's here. Lisa Martin, Dave Nicholson, all host of the cube 12 interviews today, just we're with Rocklin and rolling, getting down to the end of the show. As we wind down and look back and look at the future. We've got Steven Jones. Here's the general manager of the VMware cloud on AWS. He's with Amazon web service. Steven Jones. Welcome to the cube. >>Thanks John. >>Welcome back cube alumni. I've been on many times going back to 2015. Yeah. >>Pleasure to be here. Great >>To see you again. Thanks for coming on. Obviously 10 years at AWS, what a ride is that's been, come on. That's fantastic. Tell me it's been crazy. >>Wow. Learned a lot of stuff along the way, right? I mean, we, we, we knew that there was a lot of opportunity, right? Customers wanting the agility and flexibility of, of the cloud and, and we, we still think it's early days, right? I mean, you'll hear Andy say that animals say that, but it really is. Right. If you look at even just the amount of spend that's being spent on, on clouds, it's in the billions, right. And the amount of, of spend in it is still in the trillion. So there's, there's a long way to go and customers are pushing us hard. Obviously >>It's been interesting a lot going on with VM. We're obviously around with them, obviously changing the strategy with their, their third generation and their narrative. Obviously the Broadcom thing is going on around them. And 10 years at abs, we've been, we've been, this'll be our ninth year, no 10th year at reinvent coming up for us. So, but it's 10 years of everything at Amazon, 10 years of S three, 10 years of C two. So if you look at the, the marks of time, now, the history books are starting to be written about Amazon web services. You know, it's about 10 years of full throttle cube hyperscaler in action. I mean, I'm talking about real growth, like >>Hardcore, for sure. I'll give you just one anecdote. So when I first joined, I think we had maybe two EC two instances back in the day and the maximum amount of memory you could conversion into one of these machines was I think 128 gig of Ram fast forward to today. You literally can get a machine with 24 terabytes of Ram just in insane amounts. Right? My, my son who's a gamer tells me he's got 16 gig in his, in his PC. You need to, he thinks that's a lot. >>Yeah. >>That's >>Excited about that. That's not even on his graphics card. I mean, he's, I know it's coming next. The GPU, I mean, just all >>The it's like, right? >>I mean, all the hardware innovation that you guys have done, I mean, look at every it's changed. Everyone's changed their strategy to copy AWS nitro, Dave ante. And I talk about this all the time, especially with James Hamilton and the team over there, Peter DeSantos, these guys have, are constantly going at the atoms and innovating at the, at the level. I mean that, that's how hardcore it is over there right now. I mean, and the advances on the Silicon graviton performance wise is crazy. I mean, so what does that enabling? So given that's continuing, you guys are continuing to do great work there on the CapEx side, we think that's enabling another set of new net new applications because we're starting to see new things emerge. We saw snowflake come on, customer of AWS refactor, the data warehouse, they call it a data cloud. You're starting to see Goldman Sachs. You see capital one, you see enterprise customers building on top of AWS and building a cloud business without spending the CapEx >>Is exactly right. And Ziggy mentioned graviton. So graviton is one of our fastest growing compute families now. And you know, you mentioned a couple of ISVs and partners of ours who are leaning in heavily on porting their own software. Every event Adam announced that we're working with SAP to, to help them port their HANA cloud, which is a, a database of service offering HANA flagship to graviton as well. So it's, it's definitely changing. >>And I think, you know, one of the, and we're gonna circle back to VMware is kind of a point to this. This conversation is that, is that if you look at the trends, right, okay. VMware really tried hard to do cloud and they had a good shot at it V cloud air, but it just, they didn't have the momentum that you guys had at AWS. We saw a lot, lot of other stragglers try to do cloud. They fell off the road, OpenStack, HP, and the list goes on and on. I don't wanna get into that, but the point is, as you guys become more powerful and you're open, right? So you have open ecosystem, you have people now coming back, taking advantage and refactoring and picking up where they left off. VMware was the one of the first companies that actually said, you know what pat Gelsinger said? And I was there, let's clear up the positioning. Let's go all in with AWS. That's >>Right >>At that time, 2016. >>Yeah. This was new for us, for >>Sure. And then now that's set the standard. Now everybody else is kind of doing it. Where is the VMware cloud relationship right now? How is that going out? State's worked. >>It's working well very well. It's I mean, we're celebrating, I think we made the announcement what, five years ago at this conference. Yeah. 2016. So, I mean, it's, it's been a tremendous ride. The best part are the customers who were coming and adopting and proving to us that our vision back then was the right vision. And, and, and what's been different. I think about this relationship. And it was new for us was that we, we purposely went after a jointly engineered solution. This wasn't a, we've got a, a customer or a partner that's just going to run and build something on us. This is something where we both bring muscle and we actually build a, a joint offering together. Talk about, about the main difference. >>Yeah. And that, and that's been working, but now here at this show, if you look at, if you squint through the multi-cloud thing, which is like just, I think positioning for, you know, what could happen in, in a post broad Broadcom world, the cloud native has traction they're Tansu where, where customers were leaning in. So their enterprise customer is what I call the classic. It, you know, mainstream enterprise, which you guys have been doing a lot of business with. They're now thinking, okay, I'm gonna go on continu, accelerate on, in the public cloud, but I'm gonna have hybrid on premise as well. You guys have that solution. Now they're gonna need cloud native. And we were speculating that VMware is probably not gonna be able to get 'em all of it. And, and that there's a lot more cloud native options as customers want more cloud native. How do you see that piece on Amazon side? Because there's a lot of benefits between the VMware cloud on AWS and the services that you guys have natively in your cloud. So we see customers really taking advantage of the AWS goodness, as well as expanding the cloud side at VMware cloud on AWS. >>Yeah. There's probably two ways I would look at this. Right? So, so one is the combination of VMware cloud on AWS. And then both native services just generally brings more options to customers. And so typically what we're seeing now is customers are just able to move much faster, especially as it comes to data center, evacuations, migrating all their assets, right? So it used to be that, and still some customers they're like, I I've gotta think through my entire portfolio of applications and decide what to refactor. And the only way I can move it to cloud is to actually refactor it into some net new application, more and more. We're actually seeing customers. They've got their assets. A lot of them are still on premises in a VMware state, right. They can move those super quick and then modernize those. And so I think where you'll see VMware and AWS very aligned is on this, this idea of migrate. Now you need to get the benefits of TCO and, and the agility that comes with being in the cloud and then modernize. We took a step further, which is, and I think VMware would agree here too, but all of the, the myriad of services, I think it's 200 plus now AWS native services are for use right alongside any that a customer wants to run in VMware. And so we have examples of customers that are doing just, >>And that's, that's how you guys see the native and, and VMware cloud integrating in. Yeah, that's, that's important because this, I mean, if I always joke about, you know, we've been here 12 years listening in the hallways and stuff, you know, on the bus to the event last night, walking the parties and whatnot, listening in the streets, there's kind of two conversations that rise right to the top. And I wanna get your reaction to this Steven, because this seems to be representative of this demographic here at VMware conference, there's conversations around ransomware and storage and D dub and recovery. It's all, a lot of those happen. Yeah. Clearly a big crowd here that care about, you know, Veeam and NetApp and storage and like making sure stuff's secure and air gapped. And a lot of that kind of, I call nerdy conversations and then the other one is, okay, I gotta get the cloud story. >>Right. So there's kind of the operational security. And then there's like, okay, what's my path to true cloud. I need to get this moving. I need to have better applications. My company is the application now not it serves some sort of back office function. Yeah. It's like, my company is completely using technology as its business. So the app is the business. So that means everything's technology driven, not departmental siloed. So there's a, that's what I call the true cloud conversation. How do you, how do you see that evolving because VMware customers are now going there. And I won't say, I won't say they're behind, but they're certainly going there faster than ever before. >>I think, I think, I mean, it's an interesting con it's an interesting way to put it and I, I would completely agree. I think it's, it's very clear that I think a lot of customer companies are actually being disrupted. Right. And they have to move fast and reinvent themselves. You said the app is now becoming the company. Right. I mean, if, if you look at where not too many years back, there were, you know, big companies like Netflix that were born in the cloud. Right. Airbnb they're disruptors. >>There's, that's the >>App, right? That's the app. Yeah. So I, I would exactly agree. And, and that's who other companies are competing with. And so they have to move quickly. You talked about some, some technology that allows them to do that, right? So this week we announced the general availability of a NetApp on tap solution. It's been available on AWS for some time as a fully managed FSX storage solution. But now customers can actually leverage it with, with VMC. Now, why is that important? Well, there's tens of thousands of customers running VMware. On-premises still, there's thousands of them that are actually using NetApp filers, right? NetApp, NetApp filers, and the same enterprise features like replication. D do you were talking about and Snapp and clone. Those types of things can be done. Now within the V VMware state on AWS, what's even better is they can actually move faster. So consider replicating all this, you know, petabytes and petabytes of data that are in these S from on-premises into AWS, this, this NetApp service, and then connected connecting that up to the BMC option. So it just allows customers much, much. >>You guys, you guys have always been customer focus. Every time I sat down with the Andy jazzy and then last year with Adam, same thing we worked back from, I know it's kind of a canned answer on some of the questions from media, but, but they do really care. I've had those conversations. You guys do work backwards from the customer, actually have documents called working backwards. But one of the things that I observed, we talked about here yesterday on the cube was the observations of reinvent versus say, VM world. Now explore is VM world's ecosystem was very partner-centric in the sense of the partners needed to rely on VMware. And the customers came here for both more of the partners, not so much VMware in the sense there wasn't as much, many, many announcements can compare that to the past, say eight years of reinvent, where there's so much Amazon action going on the partners, I won't say take as a second, has a backseat to Amazon, but the, the attendees go there generally for what's going on with AWS, because there's always new stuff coming out. >>And it's, it's amazing. But this year it starts to see that there's an overlap or, or change between like the VMware ecosystem. And now Amazon there's, a lot of our interviews are like, they're on both ecosystems. They're at Amazon's show they're here. So you start to see what I call the naturalization of partners. You guys are continuing to grow, and you'll probably still have thousands of announcements at the event this year, as you always do, but the partners are much more part of the AWS equation, not just we're leasing all these new services and, and oh, for sure. Look at us, look at Amazon. We're growing. Cause you guys were building out and look, the growth has been great. But now as you guys get to this next level, the partners are integral to the ecosystem. How do you look at that? How has Amazon thinking about that? I know there's been some, some, a lot of active reorgs around AWS around solving this problem or no solve the problem, addressing the need and this next level of growth. What's your reaction to >>That? Well, I mean, it's, it's a, it's a good point. So I have to be honest with you, John. I, I, I spent eight of my 10 years so far at AWS within the partner organization. So partners are very near and dear to my heart. We've got tens of thousands of partners and you are you're right. You're starting to see some overlap now between the VMware partner ecosystem and what we've built now in AWS and partners are big >>By the way, you sell out every reinvent. So it's, you have a lot of partners. I'm not suggesting that you, that there's no partner network there, but >>Partners are critical. I mean, absolutely naturally we want a relationship with a customer, but in order to scale the way we need to do to meet the, the needs of customers, we need partners. Right. We, we can't, we can't interact with every single customer as much as we would like to. Right. And so partners have long built teams and expertise that, that caters to even niche workloads or opportunity areas. And, and we love partners >>For that. Yeah. I know you guys do. And also we'll point out just to kind of give props to you guys on the partner side, you don't, you keep that top of the stack open on Amazon. You've done some stuff for end to end where customers want all Amazon, but for the most part, you let competition come in, even on, so you guys are definitely partner friendly. I'm just observing more the maturization of partners within the reinvent ecosystem, cuz we're there every year. I mean, it's, I mean, first of all, they're all buzzing. I mean, it's not like there's no action. There's a lot of customers there it's sold out as big numbers, but it just seems that the partners are much more integrated into the value proposition of at a AWS because of the, the rising tide and, and now their enablement, cuz now they're part of the, of the value proposition. Even more than ever before >>They, they really are. And they, and they're building a lot of capabilities and services on us. And so their customers are our customers. And like you say, it's rising tide, right. We, we all do better together. >>Okay. So let's talk about the VMware cloud here. What's the update here in terms of the show, what's your, what's your main focus cuz a lot of people here are doing, doing sessions. What's been some of the con content that you guys are producing here. >>Yeah. So the best part obviously is a always the customer conversations to partner conversations. So a, a lot of, a lot of sessions there, we did keynote yesterday in Ryan and I, where we talked about a number of announcements that are, I think pretty material now to the offering a joint announcement with NetApp yesterday as well around the storage solution I was talking about. And then some, some really good technical deep dives on how the offering works. Customers are still interested in like how, how do I take what I've got on premises and easily move into AWS and technology like HSX H CX solution with VMware makes it really easy without having to re IP applications. I mean, you know, it is super difficult sometimes to, to move an application. If you've got figure out where all the firewall rules are and re iPing those, those things source. But yeah, it's, it's been fantastic. >>A lot of migrations to the cloud too. A lot of cloud action, new cloud action. You guys have probably seen an uptake on services right on the native side. >>Yes. Yes. For sure. So maybe I just outlined some of the, some of the assets we made this week. So absolutely >>Go ahead. >>We, we announced a new instance family as a, a major workhorse underneath the VMware cloud offering called I, I, you mentioned nitro earlier, this is on, based on our latest generation of nitro, which allows us to offer as you know, bare metal instances, which is, which is what VMware actually VMware was our first partnership and customer that I would say actually drove us to really get Nira done and out the door. And we've continued to iterate on that. And so this I four, I instance, it's based on the, the latest Intel isolate processor with more than double the Ram double the compute, a whopping 75 gigabytes per second network. So it's a real powerhouse. The cool thing is that with the, with the NetApp storage solution that we, we discussed, we're now disaggregating the need to provision, compute and storage at the same time. It used to be, if you wanted to add more storage to your VSAN array, that was on a V VMware cloud. Yeah. You'd add another note. You might not need more compute for memory. You'd have to add another note. And so now customers can simply start adding chunks of storage. And so this opens up customers. I had a customer come to me yesterday and said, there's no reason for us not to move. Now. We were waiting for something that like this, that allowed us to move our data heavy workloads yeah. Into VMware cloud. It's >>Like, it's like the, the alignment. You mentioned alignment earlier. You know, I would say that VMware customers are lined up now almost perfectly with the hybrid story that's that's seamless or somewhat seems it's never truly seamless. But if you look at like what Deepak's doing with Kubernetes and open source, you, you guys have that there talking that big here, you got vs a eight vSphere, eight out it's all cloud native. So that's lined up with what you guys are doing on your services and the horsepower. They have their stuff, you have yours that works better together. So it seems like it's more lined up than ever before. What's your take on that? Do you agree? And, and if so, what folks watching here that are VMware customers, what's, what's the motivation now to go faster? >>Look, it is, it is absolutely lined up. We are, as, as I mentioned earlier, we are jointly engineering and developing this thing together. And so that includes not just the nuts and bolts underneath, but kind of the vision of where it's going. And so we're, we're collectively bringing in customer feedback. >>What is that vision real quick? >>So that vision has to actually help an under help meet even the most demanding customer workloads. Okay. So you've got customer workloads that are still locked in on premises. And why is that? Well, it used to be, there was big for data and migration, right? And the speed. And so we continue to iterate this and that again is a joint thing. Instead of say, VMware, just building on AWS, it really is a, a tight partnership. >>Yeah. The lift and shift is a, an easy thing to do. And, and, and by the way, that could be a hassle too. But I hear most people say the reason holding us back on the workloads is it's just a lot of work, a hassle making it easier is what they want. And you guys are doing that. >>We are doing that. Absolutely. And by the way, we've got not just engineering teams, but we've got customer support teams on both sides working together. We also have flexible commercial options, right? If a customer wants to buy from AWS because they've negotiated some kind of deal with us, they can do that. They wanna buy from VMware for a similar reason. They could buy from VMware. So are >>They in the marketplace? >>They are in the market. There, there are some things in the marketplace. So you talked about Tansu, there's a Tansu offering in the marketplace. So yes. Customers can >>Contract. Yeah. Marketplaces. I'm telling you that's very disruptive. I'm Billy bullish on the market AIOS marketplace. I think that's gonna be a transformative way. People have what they procure and fully agree, deploy and how, and channel relationships are gonna shift. I think that's gonna be a disruptive enabler to the partner equation and, and we haven't even seen it yet. We're gonna be up there in September for their inaugural event. I think it's a small group, but we're gonna be documenting that. So even final question for you, what's next for you? What's on the agenda. You got reinvent right around the corner. Your P ones are done. Right? I know. Assuming all that, I turn that general joke. That's an internal Amazon joke. FYI. You've got your plan. What's next for the world. Obviously they're gonna go this, take this, explore global. No matter what happens with Broadcom, this is gonna be a growth wave with hybrid. What's next for you and your team with AWS and VMware's relationship? >>Yeah. So both of us are hyper focused on adding additional options, both from a, an instance compute perspective. You know, VMware announced some, some, some additional offerings that we've got. We've got a fully complete, like, so they're, they announce things like VMware flex compute V VMware flex storage. You mentioned earlier, there was a conversation around ransomware. There's a new ransomware based offering. So we're hyper focused on rounding out, continuing to round out the offering and giving customers even more choice >>Real quick. Jonathan made me think about the ransomware we were at reinforce Steven Schmidtz now the CSO. Now you got a CSO. AJ's the CSO. You got a whole focus, huge emphasis on security right now. I know you always have, but now it's much more public. It's PO more positive, I think, than some of the other events I've been to. It's been more Lum and doom. What's the security tie in here with VMware. Can you share a little bit real quick on the security piece update around this relationship? >>Yeah, you bet. So as you know, security for us is job zero. Like you don't have anything of security. And so what are the things that, that we're excited about specifically with VMware is, is the latest offering that, that we put together and it's called this, this ransomware offering. And it's, it's a little bit different than other ransomware. I mean, a lot of people have ransomware offerings today, just >>Air gap. >>Right, right, right. Exactly. No, that's easy. No, this one is different. So on the back end, so within VMC, there's this, this option where CU we can be to be taking iterative snapshots of a customer environment. Now, if an event were to occur, right. And a customer is like, I have to know if I'm compromised, we can actually spin up super easy. This is cloud. Remember? Yeah. We can spin up a, a copy of this environment, throw a switch, pick a snapshot with NSX. So VMware NSX firewall it off and then use some custom tooling from VMware to actually see if it's been compromised or not. And then iterate through that until you actually know you're clean. And that's different than just tools that do maybe a >>Little bit of scam. We had Tom gills on yesterday and, and one of the things Dave ante had to leave is taking the sun to college is last one in the house and B nester now, but Tom Gill was on. We were talking about how good their security story is ware. And they really weren't showboating it as much as they could have here. I thought they could have done a better job, but this is an example of kind of them really leaning in with you guys. That's the key part of the relationship. >>Yeah, it really is. And I think this is something is materially different than what you can get elsewhere. And it's exciting for, >>Okay. Now the, the real question I want to know is what's your plans for AWS reinvent the blockbuster end of the year, Amazon surf show that gets bigger and bigger. I know it's still hybrid now, but it's looking be hybrid, but people are back in person last year. You guys were the first event really come back and still had massive numbers. AWS summit, New York at 19,000. I heard last week in Chicago, big numbers. So we're expecting reinvent to be pretty large this year. What are you, what are you gonna do there? What's your role there? >>We are expecting, well, I'll be there. I cover multiple businesses. Obviously. We're, we're planning on some additional announcements, obviously in the VMware space as well. And one of the other businesses I run is around SAP. And you should look for some things there as well. Yeah. Really looking forward to reinvent, except for the fact that it's right after Thanksgiving. But I think it >>Always ruins my, I always get an article out. I like, why are you we're having, we're having Thanksgiving dinner. I gotta write this article. It's gotta get Adam, Adam. Leski exclusive. We, every year we do a, a CEO sit down with Andy was the CEO and then now Adam. But yeah, it's a great event to me. I think it sets the tone. And it's gonna be very interesting to see the big clouds are coming to the big cloud. You guys, and you guys are now called hyperscalers. Now, multiple words. It's interesting. You guys are providing the CapEx goodness for everybody else now. And that relationship seems to be the new, the new industry standard of you guys provide the enablement and then everyone you get paid, cuz it's a service. A whole nother level of cloud is emerging in the partner network, GSI other companies. Yeah. >>Yeah. I mean we're really scaling. I mean we continue to iterate and release regions at a fast clip. We just announced support for VMware in Hong Kong. Yeah. So now we're up to 21 regions for this service, >>The sovereign clouds right around the corner. Let's we'll talk about that soon. Steven. Thanks for coming. I know you gotta go. Thank you for your valuable time. Coming in. Put Steven Jones. Who's the general manager of the VMware cloud on AWS business. Four AWS here inside the cube day. Three of cube coverage. I'm John furrier. Thanks for watching. We'll be right back.

>> From the Cube studios in Palo Alto and Boston, bringing you data driven insights from theCUBE and ETR, this is Breaking Analysis with Dave Vellante. >> While the precise direction of VMware's future is unknown, given the plan Broadcom acquisition, one thing is clear. The topic of what Broadcom plans will not be the main focus of the agenda at the upcoming VMware Explore event next week in San Francisco. We believe that despite any uncertainty, VMware will lay out for its customers what it sees as its future. And that future is multi-cloud or cross-cloud services, what we call Supercloud. Hello, and welcome to this week's Wikibon Cube Insights powered by ETR. In this breaking analysis, we drill into the latest survey data on VMware from ETR. And we'll share with you the next iteration of the Supercloud definition based on feedback from dozens of contributors. And we'll give you our take on what to expect next week at VMware Explorer 2022. Well, VMware is maturing. You can see it in the numbers. VMware had a solid quarter just this week, which was announced beating earnings and growing the top line by 6%. But it's clear from its financials and the ETR data that we're showing here that VMware's Halcion glory days are behind it. This chart shows the spending profile from ETR's July survey of nearly 1500 IT buyers and CIOs. The survey included 722 VMware customers with the green bars showing elevated spending momentum, ie: growth, either new or growing at more than 6%. And the red bars show lower spending, either down 6% or worse or defections. The gray bars, that's the flat spending crowd, and it really tells a story. Look, nobody's throwing away their VMware platforms. They're just not investing as rapidly as in previous years. The blue line shows net score or spending momentum and subtracts the reds from the greens. The yellow line shows market penetration or pervasiveness in the survey. So the data is pretty clear. It's steady, but it's not remarkable. Now, the timing of the acquisition, quite rightly, is quite good, I would say. Now, this next chart shows the net score and pervasiveness juxtaposed on an XY graph and breaks down the VMware portfolio in those dimensions, the product portfolio. And you can see the dominance of respondents citing VMware as the platform. They might not know exactly which services they use, but they just respond VMware. That's on the X axis. You can see it way to the right. And the spending momentum or the net score is on the Y axis. That red dotted line at 4%, that indicates elevated levels and only VMware cloud on AWS is above that line. Notably, Tanzu has jumped up significantly from previous quarters, with the rest of the portfolio showing steady, as you would expect from a maturing platform. Only carbon black is hovering in the red zone, kind of ironic given the name. We believe that VMware is going to be a major player in cross cloud services, what we refer to as Supercloud. For months, we've been refining the concept and the definition. At Supercloud '22, we had discussions with more than 30 technology and business experts, and we've gathered input from many more. Based on that feedback, here's the definition we've landed on. It's somewhat refined from our earlier definition that we published a couple weeks ago. Supercloud is an emerging computing architecture that comprises a set of services abstracted from the underlying primitives of hyperscale clouds, e.g. compute, storage, networking, security, and other native resources, to create a global system spanning more than one cloud. Supercloud is three essential properties, three deployment models, and three service models. So what are those essential elements, those properties? We've simplified the picture from our last report. We show them here. I'll review them briefly. We're not going to go super in depth here because we've covered this topic a lot. But supercloud, it runs on more than one cloud. It creates that common or identical experience across clouds. It contains a necessary capability that we call a superPaaS that acts as a cloud interpreter, and it has metadata intelligence to optimize for a specific purpose. We'll publish this definition in detail. So again, we're not going to spend a ton of time here today. Now, we've identified three deployment models for Supercloud. The first is a single instantiation, where a control plane runs on one cloud but supports interactions with multiple other clouds. An example we use is Kubernetes cluster management service that runs on one cloud but can deploy and manage clusters on other clouds. The second model is a multi-cloud, multi-region instantiation where a full stack of services is instantiated on multiple clouds and multiple cloud regions with a common interface across them. We've used cohesity as one example of this. And then a single global instance that spans multiple cloud providers. That's our snowflake example. Again, we'll publish this in detail. So we're not going to spend a ton of time here today. Finally, the service models. The feedback we've had is IaaS, PaaS, and SaaS work fine to describe the service models for Supercloud. NetApp's Cloud Volume is a good example in IaaS. VMware cloud foundation and what we expect at VMware Explore is a good PaaS example. And SAP HANA Cloud is a good example of SaaS running as a Supercloud service. That's the SAP HANA multi-cloud. So what is it that we expect from VMware Explore 2022? Well, along with what will be an exciting and speculation filled gathering of the VMware community at the Moscone Center, we believe VMware will lay out its future architectural direction. And we expect it will fit the Supercloud definition that we just described. We think VMware will show its hand on a set of cross-cloud services and will promise a common experience for users and developers alike. As we talked about at Supercloud '22, VMware kind of wants to have its cake, eat it too, and lose weight. And by that, we mean that it will not only abstract the underlying primitives of each of the individual clouds, but if developers want access to them, they will allow that and actually facilitate that. Now, we don't expect VMware to use the term Supercloud, but it will be a cross-cloud multi-cloud services model that they put forth, we think, at VMworld Explore. With IaaS comprising compute, storage, and networking, a very strong emphasis, we believe, on security, of course, a governance and a comprehensive set of data protection services. Now, very importantly, we believe Tanzu will play a leading role in any announcements this coming week, as a purpose-built PaaS layer, specifically designed to create a common experience for cross clouds for data and application services. This, we believe, will be VMware's most significant offering to date in cross-cloud services. And it will position VMware to be a leader in what we call Supercloud. Now, while it remains to be seen what Broadcom exactly intends to do with VMware, we've speculated, others have speculated. We think this Supercloud is a substantial market opportunity generally and for VMware specifically. Look, if you don't own a public cloud, and very few companies do, in the tech business, we believe you better be supporting the build out of superclouds or building a supercloud yourself on top of hyperscale infrastructure. And we believe that as cloud matures, hyperscalers will increasingly I cross cloud services as an opportunity. We asked David Floyer to take a stab at a market model for super cloud. He's really good at these types of things. What he did is he took the known players in cloud and estimated their IaaS and PaaS cloud services, their total revenue, and then took a percentage. So this is super set of just the public cloud and the hyperscalers. And then what he did is he took a percentage to fit the Supercloud definition, as we just shared above. He then added another 20% on top to cover the long tail of Other. Other over time is most likely going to grow to let's say 30%. That's kind of how these markets work. Okay, so this is obviously an estimate, but it's an informed estimate by an individual who has done this many, many times and is pretty well respected in these types of forecasts, these long term forecasts. Now, by the definition we just shared, Supercloud revenue was estimated at about $3 billion in 2022 worldwide, growing to nearly $80 billion by 2030. Now remember, there's not one Supercloud market. It comprises a bunch of purpose-built superclouds that solve a specific problem. But the common attribute is it's built on top of hyperscale infrastructure. So overall, cloud services, including Supercloud, peak by the end of the decade. But Supercloud continues to grow and will take a higher percentage of the cloud market. The reasoning here is that the market will change and compute, will increasingly become distributed and embedded into edge devices, such as automobiles and robots and factory equipment, et cetera, and not necessarily be a discreet... I mean, it still will be, of course, but it's not going to be as much of a discrete component that is consumed via services like EZ2, that will mature. And this will be a key shift to watch in spending dynamics and really importantly, computing economics, the things we've talked about around arm and edge and AI inferencing and new low cost computing architectures at the edge. We're talking not the near edge, like, Lowes and Home Depot, we're talking far edge and embedded devices. Now, whether this becomes a seamless part of Supercloud remains to be seen. Look, if that's how we see it, the current and the future state of Supercloud, and we're committed to keeping the discussion going with an inclusive model that gathers input from all parts of the industry. Okay, that's it for today. Thanks to Alex Morrison, who's on production, and he also manages the podcast. Ken Schiffman, as well, is on production in our Boston office. Kristin Martin and Cheryl Knight, they help us get the word out on social media and in our newsletters. And Rob Hoffe is our editor in chief over at Silicon Angle and does some helpful editing. Thank you, all. Remember these episodes, they're all available as podcasts, wherever you listen. All you got to do is search Breaking Analysis Podcast. I publish each week on wikibon.com and siliconangle.com. You can email me directly at david.vellante@siliconangle.com or DM me @Dvellante or comment on our LinkedIn posts. Please do check out etr.ai. They've got some great enterprise survey research. So please go there and poke around, And if you need any assistance, let them know. This is Dave Vellante for the Cube Insights powered by ETR. Thanks for watching, and we'll see you next time on Breaking Analysis. (lively music)

(bright music) >> Welcome back everyone to theCUBE's coverage of AWS re:Invent 2021 in person. So a live event, physical in-person, also virtual hybrid. So a lot of great action online, check out the website. All the videos are there on theCUBE, as well as what's going on all of the actions on site and theCUBE's here. I'm John Furrier, your host with Dave Vellante, my cohost. Finally, we've got David Brown, VP of Elastic Compute Cloud. EC2, the bread and butter. Our favorite part of Amazon. David, great to have you back on theCUBE in person. >> John, it's great to be back. It's the first time I'd been on theCUBE in person as well. A lot of virtual events with you guys, but it's amazing to be back at re:Invent. >> We're so excited for you. I know, Matt Garman and I've talked in the past. We've talked in the past. EC2 is just an amazing product. It's always been the core block of AWS. More and more action happening and developers are now getting more action and there's well, we wrote a big piece about it. What's going on? The Silicon's really paying off. You've got to also general purpose Intel and AMD, and you've got the custom silicon, all working together. What's the new update? Give us a scoop. >> Well, John, it's actually 15 years of EC2 this year and I've been lucky to be on that team for 14 years and so incredible to see the growth. It's been an amazing journey. The thing that's really driven us, two things. One is supporting new workloads. And so what are the workloads that customers have available out there trying to do on the cloud that we don't support and launch new instance types. And that's the first thing. The second one is price performance. How do we give customers more performance at a continuously decreasing price year-over-year? And that's just driven innovation across EC2 over the years with things like Graviton. All of our inferential chips are custom silicon, but also instance types with the latest Intel Ice Lake CPU's, latest Milan. We just announced the AMD Milan instance. It's just constantly innovation across the ever-increasing list of instances. So super exciting. >> So instances become the new thing. Provision an instance, spin up an instance. Instance becomes, and you can get instances, flavors, almost like flavors, right? >> David: Yeah. >> Take us through the difference between an instance and then the EC2 itself. >> That's correct, yeah. So we actually have, by end of the year, right now we have over 475 different instances available to you whether it's GPU accelerators, high-performance computing instances, memory optimized, just enormous number. We'll actually hit 500 by the end of the year, but that is it. I mean, customers are looking for different types of machines and those are the instances. >> So the Custom Silicon, it's one of the most interesting developments. We've written about it. AWS secret weapon is one of them. I wonder if you could take us back to the decision points and the journey. The Annapurna acquisition, you started working with them as a partner, then you said, all right, let's just buy the company. >> David: Yeah. >> And then now, you're seeing the acceleration, your time to tapeout is way, way compressed. Maybe what was the catalyst and maybe we can get into where it's going. >> Yeah, absolutely. Super interesting story 'cause it actually starts all the way back in 2008. In 2008, EC2 had actually been around for just a little under two years. And if you remember back then, everybody was like, will virtualize and hypervisors, specialization would never really get you the same performances, what they were calling bare metal back then. Everybody's looking at the cloud. And so we took a look at that. And I mean, network latencies, in some cases with hypervisors were as high as 200 or 300 milliseconds. And it was a number of real challenges. And so we knew that we would have to change the way that virtualization works and get into hardware. And so in 2010, 2011, we started to look at how could I offload my network processing, my IO processing to additional hardware. And that's what we delivered our first Nitro card in 2012 and 2013. We actually offloaded all of the processing of network to a Nitro card. And that Nitro card actually had a Annapurna arm chip on it. Our Nitro 1 chip. >> For the offload? >> The offload card, yeah. And so that's when my team started to code for Arm. We started to work on our Linux works for Arm. We actually had to write our own operating system initially 'cause there weren't any operating systems available we could use. And so that's what we started this journey. And over the years, when we saw how well it worked for networking, we said, let's do it for storage as well. And then we said, Hey, we could actually improve security significantly. And by 2017, we'd actually offloaded 100% of everything we did on that server to our offload cards Leaving a 100% of the server available for customers. And we're still actually the only cloud provider that does that today. >> Just to interject, in the data center today, probably 30% of the general purpose cores are used for offloads. You're saying 0% in the cloud. >> On our nitro instances, so every instance we've launched since 2017, our C5. We use 0% of that central core. And you can actually see that in our instance types. If you look at our largest instance type, you can see that we're giving you 96 cores and we're giving you, and our largest instance, 24 terabytes of memory. We're not giving you 23.6 terabytes 'cause we need some. It's all given to you as the customer. >> So much more efficient, >> Much, much more efficient, much better, better price performance as well. But then ultimately those Nitro chips, we went through Nitro 1, Nitro 2, Nitro 3, Nitro 4. We said, Hey, could we build a general purpose server chip? Could we actually bring Arm into the cloud? And in 2018, we launched the A1 instance, which was our Graviton1 instance. And what we didn't tell people at the time is that it was actually the same chip we were using on our network card. So essentially, it was a network card that we were giving to you as a server. But what it did is it sparked the ecosystem. That's why we put it out there. And I remember before launch, some was saying, is this just going to be a university project? Are we going to see people from big universities using Arm in the cloud? Was it really going to take off? And the response was amazing. The ecosystem just grew. We had customers move to it and immediately begin to see improvements. And we knew that a year later, Graviton2 was going to come out. And Graviton2 was just an amazing chip. It continues to see incredible adoption, 40% price performance improvement over other instances. >> So this is worth calling out because I think that example of the network card, I mean, innovation can come from anywhere. This is what Jassy always would say is do the experiments. Think about the impact of what's going on here. You're focused on a mission. Let's get that processing of the lowest cost, pick up some workloads. So you're constantly tinkering with tuning the engine. New discovery comes in. Nitro is born. The chip comes in. But I think the fundamental thing, and I want to get your reaction to this 'cause we've put this out there on our post on Sunday. And I said, in every inflection point, I'm old enough, my birthday was yesterday. I'm old enough to know that. >> David: I saw that. >> I'm old enough to know that in the eighties, the client server shifts. Every inflection point where development changed, the methodology, the mindset or platforms change, all the apps went to the better platform. Who wants to run their application on a slower platform? And so, and those inflects. So now that's happening now, I believe. So you got better performance and I'm imagining that the app developers are coding for it. Take us through how you see that because okay, you're offering up great performance for workloads. Now it's cloud workloads. That's almost all apps. Can you comment on that? >> Well, it has been really interesting to see. I mean, as I said, we were unsure who was going to use it when we initially launched and the adoption has been amazing. Initially, obviously it's always, a lot of the startups, a lot of the more agile companies that can move a lot faster, typically a little bit smaller. They started experimenting, but the data got out there. That 40% price performance was a reality. And not only for specific workloads, it was broadly successful across a number of workloads. And so we actually just had SAP who obviously is an enormous enterprise, supporting enterprises all over the world, announced that they are going to be moving the S/4 HANA Cloud to run on Graviton2. It's just phenomenal. And we've seen enterprises of that scale and game developers, every single vertical looking to move to Graviton2 and get that 40% price performance. >> Now we have to, as analysts, we have to say, okay, how did you get to that 40%? And you have to make some assumptions obviously. And it feels like you still have some dry powder when you looked at Graviton2. I think you were running, I don't know, it's speculated anyway. I don't know if you guys, it's your data, two and a half, 2.5 gigahertz. >> David: Yeah. >> I don't know if we can share what's going on with Graviton3, but my point is you had some dry powder and now with Graviton3, quite a range of performance, 'cause it really depends on the workload. >> David: That's right. >> Maybe you could give some insight as to that. What can you share about how you tuned Graviton3? >> When we look at benchmarking, we don't want to be trying to find that benchmark that's highly tuned and then put out something that is, Hey, this is the absolute best we can get it to and that's 40%. So that 40% is actually just on average. So we just went and ran real world workloads. And we saw some that were 55%. We saw some that were 25. It depends on what it was, but on average, it was around the 35, 45%, and we said 40%. And the great thing about that is customers come back and say, Hey, we saw 40% in this workload. It wasn't that I had to tune it. And so with Graviton3, launching this week. Available in our C7g instance, we said 25%. And that is just a very standard benchmark in what we're seeing. And as we start to see more customer workloads, I think it's going to be incredible to see what that range looks like. Graviton2 for single-threaded applications, it didn't give you that much of a performance. That's what we meant by cloud applications, generally, multi-threaded. In Graviton3, that's no longer the case. So we've had some customers report up to 80% performance improvements of Graviton2 to Graviton3 when the application was more of a single-threaded application. So we started to see. (group chattering) >> You have to keep going, the time to market is compressing. So you have that, go ahead, sorry. >> No, no, I always want to add one thing on the difference between single and multi-threaded applications. A lot of legacy, you're single threaded. So this is kind of an interesting thing. So the mainframe, migration stuff, you start to see that. Is that where that comes in the whole? >> Well, a lot of the legacy apps, but also even some of the new apps, like single threading like video transcoding, for example, is all done on a single core. It's very difficult. I mean, almost impossible to do that multi-threaded way. A lot of the crypto algorithms as well, encryption and cryptography is often single core. So with Graviton3, we've seen a significant performance boost for video encoding, cryptographic algorithms, that sort of thing, which really impacts even the most modern applications. >> So that's an interesting point because now single threaded is where the vertical use cases come in. It's not like more general purpose OS kind of things. >> Yeah, and Graviton has already been very broad. I think we're just knocking down the last few verticals where maybe it didn't support it and now it absolutely does. >> And if an ISV then ports, like an SAP's ports to Graviton, then the customer doesn't see any, I mean, they're going to see the performance difference, but they don't have to think about it. >> David: Yeah. >> They just say, I choose that instance and I'm going to get better price performance. >> Exactly, so we've seen that from our ISVs. We've also been doing that with our AWS services. So services like EMR, RDS, Elastic Cache, it will be moving and making Graviton2 available for customers, which means the customer doesn't have to do the migration at all. It's all done for them. They just pick the instance and get the price performance benefits, and so yeah. >> I think, oh, no, that was serverless. Sorry. >> Well, Lambda actually just did launch on Graviton2. And I think they were talking about a 35% price performance improvement. >> Who was that? >> Lambda, a couple of months ago. >> So what does an ISV have to do to port to Graviton. >> It's relatively straightforward, and this is actually one of the things that has slowed customers down is the, wow, that must be a big migration. And that ecosystem that I spoke about is the important part. And today, with all the Linux operating systems being available for Arm running on Graviton2, with all of the container runtimes being available, and then slowly open source applications in ISV is being available. It's actually really, really easy. And we just ran the Graviton2 four-day challenge. And we did that because we actually had an enterprise migrate one of the largest production applications in just four days. Now, I probably wouldn't recommend that to most enterprises that we see is a little too fast, but they could actually do that. >> But just from a numbers standpoint, that's insanely amazing. I mean, when you think about four days. >> Yeah. >> And when we talked on virtually last year, this year, I can't remember now. You said, we'll just try it. >> David: That's right. >> And see what happens, so I presume a lot of people have tried it. >> Well, that's my advice. It's the unknown, it's the what will it take? So take a single engineer, tell them and give them a time. Say you have one week, get this running on Graviton2, and I think the results are pretty amazing, very surprised. >> We were one of the first, if not the first to say that Arm is going to be dominant in the enterprise. We know it's dominant in the Edge. And when you look at the performance curves and the time to tape out, it's just astounding. And I don't know if people appreciate that relative to the traditional Moore's law curve. I mean, it's a style. And then when you combine the power of the CPU, the GPU, the NPU, kind of what Apple does in the iPhone, it blows away the historical performance curves. And you're on that curve. >> That's right. >> I wonder if you could sort of explain that. >> So with Graviton, we're optimizing just across every single part of AWS. So one of the nice things is we actually own that end-to-end. So when it starts with the early design of Graviton2 and Graviton3, and we obviously working on other chips right now. We're actually using the cloud to do all of the electronic design automation. So we're able to test with AWS how that Graviton3 chip is going to work long before we've even started taping it out. And so those workloads are running on high-frequency CPU's on Graviton. Actually we're using Graviton to build Graviton now in the cloud. The other thing we're doing is we're making sure that the Annapurna team that's building those CPUs is deeply engaged with my team and we're going to ultimately go and build those instances so that when that chip arrives from tapeout. I'm not waiting nine months or two years, like would normally be the case, but I actually had an instance up and running within a week or two on somebody's desk studying to do the integration. And that's something we've optimized significantly to get done. And so it allows us to get that iteration time. It also allows us to be very, very accurate with our tapeouts. We're not having to go back with Graviton. They're all A1 chips. We're not having to go back and do multiple runs of these things because we can do so much validation and performance testing in the cloud ahead of time. >> This is the epiphany of the Arm model. >> It really is. >> It's a standard. When you send it to the fab, they know what's going to work. You hit volume and it's just no fab. >> Well, this is a great thread. We'll stay on this 'cause Adam told us when we met with them for re:Invent that they're seeing a lot more visibility into use cases at the scale. So the scale gives you an advantage on what instances might work. >> And makes the economics works. >> Makes the economics work, hence the timing, the shrinking time to market, not there, but also for the apps. Talk about the scale advantage you guys have. >> Absolutely. I mean, the scale advantage of AWS plays out in a number of ways for our customers. The first thing is being able to deliver highly optimized hardware. So we don't just look at the Graviton3 CPU, you were speaking about the core count and the frequency and Peter spoke about a lot of that in his keynote yesterday. But we look at how does the Graviton3 CPU work with the rest of the instance. What is the right balance between the CPU and memory? The CPU and the Hydro. What's the performance and the drive? We just launched the Nitro SSD, which is now we've actually building our own custom SSDs for Nitro getting better performance, being able to do updates, better security, making it more cloudy. We're just saying, we've been challenged with the SSD in the parts. The other place that scales really helping is in capacity. Being able to make sure that we can absorb things like the COVID spike, or the stuff you see in the financial industry with just enormous demand for compute. We can do that because of our scale. We are able to scale. And the final area is actually in quality because I have such an enormous fleet. I'm actually able to drive down AFR. So annual failure rates, are we well below what the mathematical theoretical tenant or possibility is? So if you look at what's put on that actual sticker on the box that says you should be able to get a full percent AFR. At scale and with focus, we're actually able to get that down to significantly below what the mathematical entitlement was actually be. >> Yeah, it's incredible. I've got a great, and this is the advantage, and that's why I believe anyone who's writing applications that has includes a database, data transfer, any kind of execution of code will use the stack. >> Why would they? Really, why? We've seen this, like you said before, whether it was PC, then the fastest Pentium or somebody. >> Why would you want your app to run slower? >> Unix box, right? ISVS want it to run as fast and as cheaply as possible. Now power plays into it as well. >> Yeah, well, we do have, I agree with what you're saying. We do have a number of customers that are still looking to run on x86, but obviously customers that want windows. Windows isn't available for Arm and so that's a challenge. They'll continue to do that. And you know the way we do look at it is most law kind of died out on us in 2002, 2003. And what I'm hoping is, not necessarily bringing wars a little back, but then we say, let's not accept the 10%, 15% improvement year-over-year. There's absolutely more we can all be doing. And so I'm excited to see where the x86 world's going and they doing a lot of great stuff. Intel Ice Lakes looking amazing. Milan is really great to have an AWS as well. >> Well, I'm thinking it's fair point 'cause we certainly look what Pat's doing it at Intel and he's remaking the company. I've said he's going to follow on the Arm playbook in my mind a little bit, and which is the right thing to do. So competition is a good thing. >> David: Absolutely. >> We're excited for you and a great to see Graviton and you guys have this kind of inflection point. We've been tracking for a while, but now the world's starting to see it. So congratulations to your team. >> David: Thank you. >> Just a couple of things. You guys have some news on instances. Talk about the deprecation issue and how you guys are keeping instances alive real quick. >> Yeah, we're super customer obsessed at Amazon. And so that really drives us. And one of the worst things for us to do is to have to tell a customer that we no longer supporting a service. We recently actually just deprecated the ECG classic network. I'm not sure if you saw that and that's actually off the 10 years of continuing to support it. And the only reason we did it is we have a tiny percentage of customers still using that from back in 2012. But one of the challenges is obviously instance hardware eventually will ultimately time out and fail and have hardware issues as it gets older and older. And so we didn't want to be in a place, in EC2, where we would have to constantly go to customers and say that M1 small, that C3, whatever you were running, it's no longer supported, please move. That's just a text that customers shouldn't have to do. And if they still getting value out of an older instance, let them keep using it. So we actually just announced at re:Invent, in my keynote on Tuesday, the longevity support for EC2 instances, which means we will never come back to you again and ask you to please get off an instance, because we can actually emulate all those instances on our Nitro system. And so all of these instances are starting to migrate to Nitro. You're getting all the benefits of Nitro for now some of our older zen instances, but also you don't have to worry about that work. That's just not something you need to do to get off in all the instance. >> That's great. That's a great test service. Stay on as long as you want. When you're ready to move, move. Okay, final question for you. I know we've got time, I want to get this in. The global network, you guys are known for AWS cloud WAN serve. Gives you updates on what's going on with that. >> So Werner just announced that in his keynote and over the last two to three years or so, we've seen a lot of customers starting to use the AWS backbone, which is extensive. I mean, you've seen the slides in Werner's keynote. It really does span the world. I think it's probably one of the largest networks out there. Customers starting to use that for actually their branch office communication. So instead of going and provisioning the own international MPLS networks and that sort of thing, they say, let me onboard to AWS with VPN or direct connect, and I can actually run the AWS backbone around the world. Now doing that actually has some complexity. You got to think about transit gateways. You got to think about those inter-region peering. And AWS cloud when takes all of that complexity away, you essentially create a cloud WAN, connecting to it to VPN or direct connect, and you can even go and actually set up network segments. So essentially VLANs for different parts of the organization. So super excited to get out that out of there. >> So the ease of use is the key there. >> Massively easy to use. and we have 26 SD-WAN partners. We even partnering with folks like Verizon and Swisscom in Switzerland to telco to actually allow them to use it for their customers as well. >> We'll probably use your service someday when we have a global rollout date. >> Let's do that, CUBE Global. And then the other was the M1 EC2 instance, which got a lot of applause. >> David: Absolutely. >> M1, I think it was based on A15. >> Yeah, that's for Mac. We've got to be careful 'cause M1 is our first instance as well. >> Yeah right, it's a little confusion there. >> So it's a Mac. The EC2 Mac is with M1 silicon from Apple, which super excited to put out there. >> Awesome. >> David Brown, great to see you in person. Congratulations to you and the team and all the work you guys have done over the years. And now that people starting to realize the cloud platform, the compute just gets better and better. It's a key part of the system. >> Thanks John, it's great to be here. >> Thanks for sharing. >> The SiliconANGLE is here. We're talking about custom silicon here on AWS. I'm John Furrier with Dave Vellante. You're watching theCUBE. The global leader in tech coverage. We'll be right back with more covers from re:Invent after this break. (bright music)

>> Announcer: Live from Las Vegas, it's theCUBE, covering HPE Discover 2017. Brought you by Hewlett Packard Enterprise. >> Welcome back, everyone. Live here in Las Vegas, this is theCUBE's exclusive coverage for three days at Hewlett Packard Enterprise Discover 2017. I'm John Furrier with my co-host Dave Vellante. Day two winding down, a lot of action happening, a lot of news, a lot of technology announced with a lot of ground-breaking stuff, and our next guest is Navin Mittal, Director, Products and Solutions Marketing at the Data Center Infrastructure Group. Welcome to theCUBE. Good to see you again. >> Good to see you, John. >> Thanks for coming on, I mean a lot of stuff going on under the hood. We heard from Susan about the servers with the security chip and the silicon. You guys got FlexFabric, you got all this capacity. It's really kind of like the new sports cars coming out with Gen 10, under the hood a lot of action happening. What's going on with the relationships? We're hearing a partner-centric message here at Discover this year. Give us the update. >> Yeah, so first of all, absolutely spot on on the whole Gen 10 servers. We are data crunchers. We will get the market right. But let's talk about networking, because that's something that actually combines everything, when you talk about server storage and networking and our customers as you very well know, can't just give it service alone. So, if you may or may not remember, six months back we announced the strategic relationship with Arista Networks where we basically said that they are our preferred network provider going forward. >> John: Yeah, we had them on in London. >> Okay great, yeah, so it's been going great so far. The giant go-to market has not been just go-to market but it's also been reference architecture designs. It's been creation of reference architectures with our server teams especially mission critical servers, SAP HANA talk about it so. >> John: Give us the update. What's new with the partnership? What's the progress in six months? >> Yeah, so in six months, our sales teams are completely trained and stoked to go out and sell there. Our customers are really excited with the partnership. The are asking for not only HPs servers and storage solutions but of course the Arista products also. 'Cause now they have a choice of products. If they are existing FlexFabric customers, they already worked very well with HPE, but now with the bringing in of the Arista switches, you can get the software to fine layer end-to-end. >> And you get the high end covered. A lot of service provider opportunities. What's the big take away in the marketplace from your standpoint? As you look at what's going on here at Discover 2017, and looking at what you're doing with Arista at the networking layer, a lot of interesting things are going on at the network layer, a lot of open source projects, a lot of new software, what's your take on what's going on at the network layer in the Cloud and whatnot? >> Open source has always been an integral part of HP's DNA, as you very well know, right? We have been a great contributor if you talk about Helion or you talk about OpenSwitch which was happening last year. Customers are looking for business outcomes. They don't really care whether it's open source or closed source at one point. We are all about outcomes and business solutions. So, we bring in the best of breed networking along with best of breed servers and storage, combine them to give a solution that we can offer to our customers whether they are in the Cloud-centric journey, they've already made the transition to Cloud or they trying to tackle with legacy (mumbles) >> So what are some examples of some of the solutions? >> Yeah, the SAP HANA solution architecture that we did recently, not many people know about this, but the HANA Cloud actually runs on the Arista switches already. Now think about power that our customers can get if we can bring that flexibility and agility that SAP uses internally in their Cloud into the Enterprise data centers today. So that's the reference architecture which we already have. >> Okay, and then in that example, so the core switch is Arista, and what do you guys bring to the table, everything else around it? >> Storage, yes. And don't forget the Pointnext consulting, right? So that is the switch, ties everything together so that customers can actually utilize not only our products and solutions, but the entire journey. >> And in that solution, for example, the HANA, when you mentioned Pointnext to consulting. What specifically is the service's organization doing? Is it tuned for SAP HANA? Is there some magic sauce that's sprinkled in? How does that all work? >> Yeah, so great point. And so the Pointnext to consulting of course makes a point to understand where you are currently in your journey, right? Depending on where you are, the SAP HANA Cloud solution may not be a perfect fit. In this example that I mentioned about SAP HANA itself we just wanted to highlight the fact that if you are ready to move to the Cloud like agility into your private data center, we have the solution ready with you, and you can apply it in your private data center. So your journey might begin with Pointnext, it might begin with coming to HPE. >> Alright, so here's the hard billion dollar question, not million, billion dollar question. >> It is a billion dollar question. >> Trillion dollar question. Well true private Cloud TAM is 260 billion. So that's not including hybrid. But Meg's up there too. >> Navin: Well it's 250 billion based on one of the reports that Wikibon put in. >> The true private Cloud. Ground-breaking again, another great Wikibon research that no one else is doing. Again, that number is legit, that's basically saying that On-prem isn't going away any time soon. I think this plays beautifully to what you guys are doing. But the question is this, how are you going to simplify as customers are transforming their operating model to Cloud-like, how are you going to simplify it with these relationships? >> Yeah, so for that, to talk about simplicity I need to take a step up, right? Because you saw Meg talk about the hybrid ID strategy, and then we also talked about the Gen 10 Silver announcement where we talk about control and agility and security. That's where the Arista portfolio fits in squarely across the hybrid ID and the Pointnext to consulting because now you're talking about the security solutions being end-to-end from service, storage, and networking, while giving you the agility that you're already accustomed to in some cases from (mumbles) solutions and having the capacity control from our financial services offering. >> So, from a customer standpoint, no real change, it's kind of like, it's enabling them extracted away, I'm just trying to get on the network side, what's your policy? A lot of policies going, a lot of automation opportunities. >> Yes. >> What's going on there? >> Yeah, so I don't know if you know about the product called the Spirit Cloud networking that we offer, where it is really allowing the policies that are defined at the application level and translating that into the underlying infrastructure level. So think about this, in a typical data center you tend to have silos, where you have a server silo, networking silo, and a storage silo, and from the time the application defines the policies and the requirement from an application standpoint to reach the end customer, you would have to go through these silos in order to provision those. With bringing in distributor Cloud networking, and it's integration with other networks, those policies get automatically deployed. And guess what, it's a heterogeneous environment, so you can actually mix and match existing workloads along with existing infrastructure as well. >> And what happens to the IT pros that used to be associated with those different silos? I mean, what are they all doing today? >> Yeah, they get to do much better things, right? Because IT is now transitioning from a cost center to a revenue generator. And it's not about firing people, right? Let me make sure I clarify this, it's about realizing your resources so that they can now become more productive with the time that they have. I don't know about you, if I'm done at 5 pm, you could either go back to your home, and I'm sure you have families, or you could spend time figuring out the next network problem that you're having in the data center. That's where the true agility comes out, that's where the true economic savings come out. >> That's where software programmable infrastructure works. People can get their weekends back. That's really kind of like, I mean, a lot of time is spend on mundane tasks. Either chasing down some sort of automated provisioning, or I mean, manual provisioning, or configuring stuff. What's the big game-changer? Is it machine-learning that we're seeing there, how do you guys see that technology? What's the enabler? >> Yeah, so I think at the end of the day, customers are looking for a stack, end-to-end stack, that one company can bring to them with the flexibility of choosing every layer within the stack. So we at HP of course are very focused on openness, right? So the HPE stack actually has all the way from applications to computers, to servers, to storage, to networking, whether you're talking about Nimble or the SimpliVity acquisition, or the (mumbles) that we have, to the underlying networking layer. And in this case, we are contending that Arista switching is the fabric which brings in best of breed. But you're free to choose the other layers of the stack as well. >> And how do you differentiate in the marketplace? The competition or the customer says, well I should have you guys HP and Arista instead of whatever, vendor X,Y, or Z. What do you tell them? >> Yeah, so the famous thing that I tell is you are either in the legacy mode and stuck with a typical vendor, you know we all know what the name means but I won't mention it here, where they try to keep selling you newer and newer gear with newer operating systems, or you go with a vendor that is open, has a DNA of being open, will hold your hand until you actually deployed in the data center and give you the choice that you need in the data center to be successful. >> Surely making things easier has been key. Nimble, and SimpliVity really kind of put the design at the center, and then brought software in, that changes the game. That's more Cloud-like. That's certainly very DevOps friendly. >> Absolutely, and it doesn't even stop there, right? If you take the conversation up higher up to the virtualization or the container layer, discussion. When you start talking about digitally the containers bring into the world, then it's a completely game-changer. How do you ensure that the network traffic that and application sitting on a container somewhere in one of the Vms or in Silver, can be translated and traced all the way back to the switchboard. And ensuring that nothing goes down. >> And that's the whole ethos of infrastructure as code, is actually make it programmable. So the app guys don't have to get under the hood. >> Yes, that programmable is taking care of the agility side of the house. What I am talking about is visibility and security so that if something does go wrong, we all are human, something can go wrong, even in programming, you need to pinpoint and detect and create and automate and fix issues as fast as possible. And there are some fundamental underlying tenants of the Arista operating system which allows us to do that, and of course the secret sauce that we add on top of that is the combination with the server and storage. >> Navin, thank you for coming into theCUBE and sharing insights. Final question for you. What's your takeaway from this year at Discover? What's the vibe, what's your personal (mumbles) simplifying, IT, hybrid IT, and intelligent edge, outside of the core things, what's your big takeaway? >> Yeah, I think I am super excited after meeting our customers and partners here. We are back in the game. We are here to take the market by storm and we will be doing it. >> Alright, here breaking it down in the networking Arista relationship and all the great stuff in the networking life. Navin, thank you so much. It's theCUBE live coverage from Las Vegas, in HPE 2017. We'll be back with more live coverage after this short break. (futuristic music)

>> Narrator: It's the Cube. Covering Sapphire Now 2017. Brought to you by SAP Cloud Platform. And HANA Enterprise Cloud. (electronic music) >> Welcome to the Cube everyone. We're here for the special exclusive Sapphire Now 2017 coverage from Palo Alto studio. I'm John Furrier, three days of Sapphire coverage. Our next guest is Jason Kotsaftis who's with Senior Director Database Solutions at EMC. Who came in here in Palo Alto. You guys have some news down there, full team down there. I know, normally we cover SAP, it's our first year we're doing it from our studio. But EMC's always been on the cube. You guys had a great relationship with SAP. I think our first year we've done the cube in 2010. >> Jason: That's right, yes, I remember. >> You were that SAP Sapphire. >> You guys were. You were on the Cube. You've been with us for awhile, but the relationship with an SAP, and EMC, now Dell EMC, it's pretty significant. What's the big news you guys have going on? >> Yeah, I mean, it's a huge relationship for us. We've been, even before we were merged with Dell, one of our top partnerships. Now it's even bigger. We've been amazed at how much Dell had been doing with SAP, and we're bringing the best of the two companies together right now. So, yeah, we have a huge presence at Sapphire as you mentioned. We saw Michael Dell do a brief speech at the show, and I thought that really helped set the stage for, not just Dell and EMC with SAP, but even some of the words he said were a good microcosm of Dell and EMC talking about the importance of bringing together people and processes. And we're going through that right now, and we're we're going through how we're going to merge the portfolio to go after Cloud, go after HANA, internet of things, data center transformation, all of those major things. >> Well surely SAP, the theme is Cloud, Multi-Cloud is a big message. >> SAP Cloud platform, we had Dan Lahl on the Cube. We also interviewed the HANA Enterprise Cloud group there also, got a huge alliance with Amazon Web Service, Terry Wise, there. We all saw Century Link. So you start to see the industry formation going on. The fog is lifting, you're starting to get some clear visibility on swim lanes, tactics, we'll help people with settling in. Whatever metaphor you want to use, people are finding it. Dell EMC is just absolutely just a monster now. I mean that in a good way, I don't mean that in a bad way. But it's so big. EMC was already very powerful, and winning in the storage business. Great enterprise jobs, the sales force, the culture, really well, great culture as you know, we know them. Dell has been lean and mean, like a speed boat. Great with channels, great with operations, very lean and efficient. EMC, the direct selling, you bring them together and now the supplier relationships are changed. I was talking with your team. Dell brings to the table deep Microsoft Intel relations. Not that you guys didn't have them, but they have deep relationships. >> Correct. >> You guys bring deep relationships. How has that new culture dealings changed your relationship? And specifically, what's the impact to SAP? >> Sure, you know, great question. First of all, it's been very complimentary. And we felt that going into the merger. I've been at EMC for 21 years right. So I had worked with Dell 10-15 years ago. Very, very complimentary, and you nailed it. They're very good at one segment of the market historically, we're very good at another. You know, for the most part I think it's been a really, really good matching, made sense from merger perspective. If we think about SAP for a second, one of the first things that we've been bringing together is, we have two very complimentary HANA portfolios. So, HANA is obviously a huge focus for SAP customers. I was just at Dell EMC world last week, every single customer that I talked to, whether they were running Oracle or Microsoft, they're all asking about HANA. We had a great focus at EMC with our enterprise HANA systems. And at Dell they have a very good packaged appliances and Scale Up bundles. And right now we feel like we can address the whole breath of what people may want to do with HANA. Whether it's, TDI, Scale Up, Scale Out. Very, very strong and >> John: Where does HANA fit in, because I want you to just take a minute to explain this, because it used to be a blanket word, even when they were kind of getting it out early. It was great marketing from the beginning, You know, it has legacy to it, but as the market changed, HANA changed. And as SAP changed, they changed from their positioning. Specifically, they used to call it HANA Cloud Platform. And they have HANA Enterprise Cloud. Now they've renamed it to SAP Cloud Platform, which is the platform as a service, the cloud native stuff. And then HANA Enterprise Cloud, which is really the managed service. So from your perspective, how do you define what HANA is today. And where is is settling in? Is it just the core engine of SAP? But how's it relate to all these new things? >> Yeah, for us it's really a platform. So if we think about where HANA began when we started working with SAP, it was all about analytics. Collecting data, analyzing data, making better business decisions. Now with S4 on the horizon, and the inevitable cut over to that from all the other enterprise applications of SAP, we really view it as a platform. And it's going to have big implications. If we look at our own SAP install base at EMC, there's a lot of customers that run Oracle underneath their SAP apps. So it's part of the HANA transformation, where we're going to be getting them, hopefully, on the road to, not just take advantage of HANA today, but as they go forward how are they going to get ready for S4 and have, hopefully, a smooth migration path to that. >> Obviously their cloud platform, I mean, their cloud strategy, or cloud direction. I don't know if you can have a cloud strategy. As Michael Dell said, Clouds like the internet, it's everything. >> Jason: Right. >> So, there's no real strategy, it's just the way life is. They're going to be on premise and off premise. And they're clearly targeting multiple Clouds, unlike say Oracle, for instance. But neither here nor there. The point is, is that on premise there's still going to be a 10 year plus journey, nothing's going to be disappearing over night. So the on prem Cloud dynamic is interesting, cuz they used the word mission critical. That was a big buzz word with when I talked to Michael Dell, He banged home mission critical. A lot of the teams in Dell EMC World last week was around mission critical work loads and choice. So you guys have that same mojo going on with SAP, how is that translating for you guys? Big new business, new opportunities? >> Great question. So one of the big things that we've acquired and focused on in the SAP space was Virtustream. So they've been a really big off premise cloud provider for us, but at the same time, when you look at what we've been building at EMC even before that we had our own enterprise hybrid cloud offering. One of the things that we're talking about this week at Sapphire is actually bringing those two together. So we can have people have an off premise and an on premise experience, a single view of their data, a uniform way to manage SAP in the cloud, and to the point of mission critical like you said is, as much as we see people moving to the cloud, there are still people that want to have for certain production systems they want to control that. They don't want to give it off to the cloud yet. They may not want to control the hardware but they certainly want to control the data. And with this new relationship that we're blending in the EHC and Virtustream we can actually allow them to have that choice to your point. >> John: What's EHC? >> The EMC Enterprise Hybrid Cloud. So that's our own self service automation of software framework that we put around the cloud. >> Which cloud, your cloud or other people's cloud? >> Right now it's our cloud offering. >> So you have a public cloud. >> We have a cloud offering that's a hybrid cloud offering. That you can deploy on premise or off premise, and Virtustream has been historically used off premise. >> So you use Virtustream as your off premise component of that piece? >> Correct. >> That makes sense. Cuz you bought them in January, I get that. >> That's right, and we had to bring the two together, and that's been a big new step for us. In that regard we think it's very, very complementary for SAP, that's one option we provide, right. We also work through SAP's own offerings to make sure we give them the right and the best infrastructure behind what they're trying to do with their own cloud. I was at a large partner of ours recently, OpenText, and we were talking about content archive, all the things that they do there, they're very deep in the SAP cloud, so we're working with them to start to potentially build the right archiving and capabilities behind that. >> So what's the big news for SAP this year, obviously we saw the coverage, we got some folks calling in, we had some folks down on the floor giving us some input, but from an SAP EMC, Dell, now Dell EMC relationship, what's the big news, what's the big story for you guys? What are you leading with, what's the announcements, be specific. >> The big news is we're all about the cloud. The bringing together of the on premise and off premise EMC Enterprise Hybrid Cloud Virtustream, giving them that uniform way to consume SAP in a cloud based model, whether it be on premise or off premise, that is absolutely our biggest new highlight. >> You guys released that was a hard news that went out for you guys or... >> Yeah it was part of an EHC evolution story that we brought out, the other things that we have that are not necessarily formally announced but are more things that help the day to day administration of SAP applications, we often forget about that. We're pushing people to the cloud and we all talk about cloud. >> So there's no big splash in the pool like, hey we're releasing a new VxRail version of whatever, it's momentum specific. >> Correct. >> What are the big momentum's you plan, you can look back now and we've seen a lot of the evolution, we've seen the relationship with SAP grow, we've seen the converge infrastructure movement, now going to a whole nother level, hybrid cloud and converge infrastructure is happening. What's the new wave that you guys are riding with SAP together besides the cloud, it's generically cloud. What's specifically, can the customer pinpoint that you guys have solved? >> I think you just touched upon it, it's the whole build versus buy model. So historically if you look at where the SAP customers spend the most of their money, it's the op ex. It's the operational expense of administering and maintaining the SAP landscapes. >> You mean like total cost of ownership stuff, just like, easing some of the pain between deployment and costing. >> Workflow automation, copy clone refresh, backup recovery, performance automation, disaster recovery, all the things that you got to do to keep the SAP applications generating value to the business is heavy operational cost to them. That holds them back from doing innovation and investments. >> Those are the details you got to get down and dirty on. >> Yeah. We've done some great studies with you guys on this, one of the things that, there's different ways to go about tackling that. One of the ways that we believe is good is to simplify what you can. And so one way to do that is, well from an infrastructure perspective, you should have the ability to basically buy the infrastructure as an outcome, not have to build all the components and get it together. >> All the provisioning pain that goes with it. >> Yeah, and so when we were just EMC, we had one choice. We had what was called a Vblock, and then we build VxRacks and VxRails. >> Vblock was so successful, it really was, you did a good job of that. >> Yeah, a lot of customers from the SAP. Now that we're Dell though, we have the PowerEdge family, and we've been bringing that in to not only Racks and Rails, but looking at that in terms of building what we call Ready Bundles, where we can actually deliver as a single... >> Think about this ready solution, because the thing that got me at Dell EMC World was two things. The purpose built mission continued, I mean that in a good way. And two, the disruption of data backup protection and backup with the cloud. With the cloud as a new disruptor. For some reason backup and recoveries, clearly different in the cloud than it is on prem. So we've seen a lot of action in there too. Those are the two ready areas, and then also, dynamic changes going on with backup and recovery. >> Yeah, ready solutions was a huge thing, and this is part of the merger we rebranded our solutions organizations into one. Our whole, as the name implies, the whole goal is to deliver a ready infrastructure to the customer that they can just deploy, so they can focus on their applications and their business and not worry about the server, the network, the storage, which ones do I put together for what reason. We want to give them that menu of choice, whether it's a single node, a bundle of components, or an actual system, and deploy that in any way they want. >> What can we expect from Dell EMC, from your team VZB, with respect to SAP? Next couple months, next year, what's the plans, what's the continued momentum playbook? >> Some things that you'll be seeing more of if you go to the Dell blueprints page where we have all our solutions. You'll be seeing some new and refreshed offerings around HANA, you'll be seeing some new things around SAP landscapes, and you'll be seeing much more formal communication around the cloud offering I talked about. >> And cloud seems to be, again, cloud is taking it outside the four walls, which is different, great capabilities, people going in analytics, putting a lot of analytics in the cloud. So seeing that being the first wave beyond dev tests. Dev tests, even though Oracle says dev tests is really going to be around for a long, long time, people are already moving to analytics in the cloud. That's interesting for instrumenting for backup and recovery, what's possible. Quick thoughts on the changes there, in the landscape between the old way of thinking about backup and recovery, and by the way you guys have some of the best solutions out there that will data domain, scratch record goes to history, but now it goes to the cloud. What's the tricky parts that you guys are watching? >> Well I think on the one hand there'll be people that want to worry about their mission critical, like you said we have great integrated offerings to the workload, so you can have a backup team handle it or you can have your workload team handle it, it's really up to you. As people go into the cloud I think they have to decide, what's the tiering strategy they want to approach that, what's the retention data strategies that they need, how's that going to, >> Where the hell is the data going? >> Where's the data going, is it safe and secure, and how does that relate to how they're protecting their on premise data. I mean from our perspective, and back to the SAP example of where we have this uniform cloud approach, we have the backup capabilities built into that. Whether it's long term data retention, short term backup and recovery, yep. >> Question for you, this is a test, a real time cube test. I'm sure you'll pass with flying colors. What is the most, what are the biggest two waves that the customers should be surfing in the enterprise, top two most important waves? >> I think one of them we've already talked about, which is certainly cloud. I think if you look at the whole digital transformation, which I know is related to cloud, but the whole digital transformation wave I think is separate from that. So if you look at big data and analytics and machine data, every customer, whether it's a traditional RDBMS environment or what have you, they're all looking at how to harness that data. I think when you get into that and look at all the data in your data center that you may not be using today, you may not have been trying to take advantage of, with technologies like Splunk and other things that are out there to help you do that, that's a great thing to look at. We're seeing heavy.. >> So data basically, cloud and data are the two big waves. >> Yeah, digital transformation of data and taking advantage of that data. >> Well they go hand in hand, cuz you got the scale of the cloud for compute and other things, data drives the digital chest of digitalized data, digital assets are data, right, everything's data. So you would agree, cloud and data, two big waves. >> Yes. >> Jason, thanks so much for coming on the Cube special coverage and final comment, I'll give you the last word on SAP Sapphire, I know you got a relationship, you're probably going to be like oh yeah, SAP, everything's great. Be straight, what's going on with SAP. What's the outlook for SAP from your perspective. >> I think there's a great opportunity to your point, but there's also a good challenge, cuz we're going through a merger. I think we're making great progress to bring the two portfolios together, and SAP's being a great partner helping working with us. >> And you're cool with them now, you guys feel good about SAP. >> We feel great about them, we use them in our own environment at Dell as Michael talked about, to run our own business. So it's a great relationship >> Jeremy's been a remote telecast performer at EMC World. >> As you know, these partnerships in the industry go up and down, we talked a little bit about Oracle over the years, that's fluctuated. >> I was dating myself the other day on a Cube gig, and I said, oh it's a Barney deal, which my language was, you know, no real deal, cuz Barney was a character that kids watched, my kids watched, you know, I love you, you love me, it's kind of a love fest, but nothing happens. It's called a Barney deal. I need a new meme now because most of the people in the industry don't know who Barney is. >> Oh I remember, we used to joke about him when I was in alliances, we called them Barney meetings. You got a good meeting with a partner, you'd all talk and nothing would happen. >> You guys do not have a Barney deal with SAP, it's pretty deep across the board, SAP has good relationships, I got to say, they tend to do really, really good. They're either in or they're not, it's pretty obvious. Thank you Jason, so much. Jason Kotsaftis, who's the senior director of the database solutions group with Dell EMC joining us for a special three day coverage of Sapphire now from our studio. Great week, we had Informatica World in San Francisco, Google IO going on today as well, we've got live coverage today with Rob Hove, also VeeamOn is in New Orleans, Dave Vellante is there, and I'm in SAP Sapphire. A lot of coverage for events for the Cube, stay with us more for live coverage after this short break. (techno music)

(upbeat music) >> Hello, and welcome to theCUBE special coverage of Sapphire Now we're here in Palo Alto. Sapphire now SAPs premier conference in Orlando. We are in Palo Alto, we have folks on the ground in Orlando. Special three days of wall-to-wall coverage. Tuesday, Wednesday, and Thursday. Taking you through all the action from our new studio in Palo Alto, 4,500 square feet. Our chance to cover events when we can't get there in person we certainly can cover it from here. And that's what we're going to be doing for the next three days; we're going to have stories on the ground, no story is too small. We're going to chase 'em all down. We have people calling in, we have folks on the ground that'll be Skyping in, calling in, whatever it takes to get the story out to you, we're going to do it and, certainly, expert coverage from inside the studio here. We got George Gilbert from Wikibon and a variety of folks who did not make it to Orlando will be coming into Palo Alto to sit down and talk with us. I'm John Furrier, my co-host is Jeff Frick. Jeff, we'll do whatever it takes. We'll cover from our studio, we'll go to Orlando virtually we got the Twitter hashtag, Sapphirenow, we're on that. We have folks on the ground, a lot of great news coming out of Sapphire. >> What do ya think? I mean, you were just as Dell EMC World last week and the story was all about, kind of, hybrid cloud and customer choice and it sounds like that's a recurring theme here at SAP, where they've got a lot of cloud options based on what their customer wants to do. >> I mean, if you, I mean this sounds really bad to say for someone who follows the tech industry but I just think this digital transformation thing is just over-played. But it's the, it's the Groundhog's Day moment. The movie just keeps replaying itself. Digital transformation, digital transformation, and, again, just like every other commerce, like Dell EMC World and every other one, digitally transforming your business is the theme. Little bit played, I would say business transformation is, I would say, the next chapter of what's happening and what you see from these shows. Specifically, at Dell EMC World, US ServiceNow, OpenStack, all the different events, Red Hat's been the one we been going to this past couple weeks is the business impact of the technology and SAP highlights that with their results and their keynotes in the news letter drops today, which is, look it, they have been doing SAP for all the top companies powering with SAP. As in Oracle. But now the customers want to go beyond the legacy SAP. And this has been a challenge for SAP over the past five years. They've had all the right messaging, digital dashboards, real time for business, all there. But the problem was they were missing a big piece of it. That is a cloud native and really aligning with the explosive growth of cloud computing, cloud native. Which is the new application developer. This new class of developer is emerging and that's different than the in-house SAP guys, by the way, which is still a massive market. >> Sure. >> That's the big trend. And of course, machine learning, AI, the kinds of design tooling that you'd expect to see, they're calling that Leonardo. >> I think it really shows the power of the consumer and the impact that the big public clouds have had on the marketplace, right? With Google, and with Amazon, especially Microsoft, as well, coming into play. And I think it's, what's interesting on the SAP tact is they have their own cloud. But now they've, you know, are very aggressively following up on an earlier announcement at Google Cloud Platform Show. With more announcements at this show and then they continue to strengthen their relationship with Amazon. So, it's a pretty interesting place, if you're an SAP customer, really having options around where, what cloud and what cloud deployment is really no longer an argument. You've got a lot of options at SAP, very different than Oracle, which is still pretty much exclusively Oracle on the Oracle cloud. Very different kind of a tact. >> Yeah and just reading the hard news from from hitting the ground today down in Orlando is the key points, I'll just summarize it real quick. Expanded SAP Leonardo, Digital Innovation System, SAP Google Expand the Strategic Partnership, SAP Cloud Platform accelerates adoption and proves choice advances consumption for customers. That, essentially, is it. And there's a lot of other subtext going on on Enterprise Cloud, a lot of other massive pockets. But in terms of top-level news, it's Leonardo, okay? Leonardo Da Vinci, dead, creative genius. Okay? But that is all about providing the tools for business to be successful in a digital world. But to me, the big story, Jeff, is the transformation of what used to be called HANA Cloud Platform to SAP Cloud Platform. This is their platform as a service bet around winning the new developers, the cloud native. Last year at Sapphire, we actually had theCUBE on the ground they announced a deal with Apple computer around iOS and developers. That, now, has chip as a general availability so you're seeing SAP bringing two worlds together. The Cloud Native World, which they never played in much to the SAP Eco System, which is flush with cash. There's a ton of money to be made in that world. The install base is massive, now you have Cloud-Computing Hybrid Cloud with the HANA Cloud Platform, I mean the SAP Cloud Platform to bring that in. Again, I still can't even get it right. >> And so, let's just break it down as simply as you can, John. Why do they change the name? And what exactly do they have today? >> Well, here's the first of all problem. I'm so used to saying HANA because they have been branding HANA on >> They been bangin' HANA for the decade, or forever. >> It's just like, in my brain. I just can't get it out. SAP HANA, so anytime, and they actually called it HANA Cloud Platform before. >> Right, right. >> But HANA is such a massive set of capabilities that they really wanted to break out the platform as a service, which is the Cloud Native play, where all the action is for developers. From HANA, a viable product that they have that everyone's using. So, they have two clouds that we can say. SAP Cloud Platform, that's in Cloud Native, and then, HANA Enterprise Cloud. One's a delivery mechanism and one's a developer environment; it's the way I like to think about it. I'm a HANA customer, I'm going to need Enterprise Cloud to take my HANA solution and extend it up with self-service or provisioning, some partnership with AWS Google and the different clouds, getting my legacy HANA Enterprise software to be cloud enabled. That's HANA Enterprise Cloud. SAP Cloud Platforms for folks who don't, who like DevOps, the Cloud Native world that we cover deeply. >> Okay, and then, how do you look at the kind of Google partnership, Google Cloud Platform versus AWS partnership. SAP's goin' dual-track, is it just simply to have choice based on what their customers, are they fundamentally different relationships? How do you read that? >> This is where I think SAP's got genius going on. But if they might screw it up because they can't get out of their own way. >> Jeff: Can't use genius anymore, we've had enough geniuses. >> So, so, this could be a brilliant strike of move for SAP. I think it's a brilliant move in the way they're playing it out. But, again, like I said, SAP, they might not be able to get out of their own way. That's going to be their issue. But from a functionality standpoint, this multi-cloud opportunity; they've been with Amazon for many many years. They announced a partnership with Google which is just kind of toe in the water. That's tryin' to advance pretty quickly. Not a lot of meat on the bone there. And Azure relationships. So, SAP wants to put their cloud platform, that platform as a service, in all the different major clouds so that their legacy can work on pram and in whichever cloud the customer chooses. >> Yeah, I think there is, >> I think, that is a multi-cloud strategy that is viable for SAP. Unlike, say, Oracle, which isn't multi-cloud, it's Oracle Cloud. >> Right, right, right. >> So, you know the SAP Oracle, you know, head-to-head thing has been kind of, like, taking completely different paths. Someone will be right. >> Right. But I think there's more meat on the bone with the Google thing than, maybe, maybe we know of, or are aware of, or whatever. I mean, Burnt did come and get in the keynote with Diane Greene at Google Cloud Platform. And, you know, I think it's relatively significant. What'll be interesting to see how it shapes out and, again, what are the customer choices that are going to drive them to Amazon or to SB Cloud or to the Google cloud. I guess at the end of the day it's about choice and I know that was a big theme at Dell EMC World. Is that everyone has to cater to the choice of the customer or else it's just too easy for them to flip a lot of these other clouds. >> I mean, when I say, "not ready for primetime," I mean, Google's got a lot of work to do. SAP as a company is not as far down the road with Google as they are with Amazon and Azure, just to make my point clear. >> Okay. >> But the do have our announcing additional certifications of the coinnovation between SAP and Google. Between SAP Cloud Platform and Google Cloud Platform. IOT, machine learning, they certified SAP NetWeaver in a variety of S4 HANA, business warehousing; essentially more market place to accelerate the digital transformation. And, again, this is all about SAP co-locating in Google. >> Right, right. >> If a customer wants to take advantage of TensorFlow and all the goodness of, say, Google. That's a good move for SAP and, again, I think this is a brilliant strategy for SAP if they don't screw it up. >> Right, right. And potentially, that's the bridge to, like you said, it's been a little bit of Groundhog Day with cloud, cloud, cloud. But what's really the theme of 2017 is AI machine learning and it's an interesting bridge with Google Cloud, to their TensorFlow as another way to bring AI machine learning into the application learning into the application. >> So, Jeff, we've been covering a lot of events. One comment, I will say, is that SAP always has great messaging. >> I got to say, because we've been covering out eighth year covering Sapphire Now. We've only missed, like, two years over that time span. It's a lot like Oracle on the sense that it's a very business oriented event, but they have good pulse. Bill McDermott, great communicator, great customer-focused person. Always has his hand on the pulse. They have great messaging. And they tend to pick the right waves. And they've had some false starts with cloud, they've bought, had some acquisitions, things been cobbled together, but they've never wavered from their mission. And the mission has always been powering the speed of business, great software solutions. The issue is, they're moving off of SAP to new cloud solutions, so SAP is taking a proactive strike to say, look here, we can play in the cloud, therefore this multi-cloud game is critical for the growth of SAP, in my opinion. >> How much of the SAP in cloud will be new greenfield opportunities, or people want the flexibility, and a lot of the attributes of cloud versus, they're not migrating old R3 instances into the cloud. I mean, this is, I would assume, mainly new greenfield opportunities. >> Well, I think it's both. I mean, I think you have greenfield developers basically that are being hired by their customers to build apps, top line driven apps, and also, you know, some consolidation apps. But mainly, you know, their customers are hiring developers. Hey, we need a mobile app for our business, so you need to have data, you need to have some domain expertise. But at the end of the day, the system of records probably stored in some SAP system somewhere. So what they're trying to do is decouple the dependency between that developer, but still use SAP, but and offer an extension of SAP. It really is an opportunity, in my mind, for that to happen, and also partners. Look at Accenture, Capgemini, all these different partners. They are poised to create some great value and make some cash along the way. Remember the minicomputer boom. People who lined their pockets with cash were the integrators. The large global system integrators. So I think that, and the channel partners are going to have a great opportunity to take advantage of preexisting legacy accounts and to grow them further. >> Well, they certainly have a giant ecosystem. There's no doubt about it. It's one of the startup challenges that, new company starters to build that ecosystem. I mean, they have a giant ecosystem. So, what are you looking for this week besides the obvious announcement? And kind of tells that you want to see to let you know that SAP continues to be on track and move with the shifting tides of the market trends? >> Well do me, I'm looking at the multi-cloud story. It's a good story. Not sure how baked it is, but from a story standpoint, I really like it. I think that whoever can really crack the code on multi-cloud in a viable way is going to be a winner. So to me, I'm going to be looking heavily at the multi-cloud stuff coming out of Orlando. I'm interested to see how the developer traction pans out. I'm really interested in following up on the Apple relationship and see how that pans out. And then ultimately, how the rest of SAP can transform as a business. Because SAP tends to have a lot of buzzwords, a lot of word salad, not a lot of, you know, breaking it down and orchestrating. So to me, SAP, where I'm critical of them is, they kind of can't get out of their own way, Jeff. So, sometimes they kind of get caught in that old world thinking when the world is moving very very fast. Look at Amazon Web Services, you look at what Google's doing, you look at where Vmware is changing. Vmware started Pat Gelsinger. He was in the dumps in 2016, now he's flying high. He went from almost being fired, stock had a 52 week low, to them soaring. They have a market cap that's greater than HPE. So these old incumbent like SAP, they have to transform their culture, get relevant, and get real. And if they can't show the proof points with customer wins and partners, and multi-cloud, then they're going to be on shaky ground. So that's what I'm looking for. >> Jeff: All right, so should be a good week. I'm looking forward to it. >> Okay, we are here in the Palo Alto studio, our new 4,500 square foot operation. We can do coverage here, and then have on the ground coverage of which we will be doing all week Tuesday, Wednesday, and Thursday for our SAP Sapphire Now. We've got great guests coming in, great editorial coverage. I want to thank our sponsors, SAP, for, you know, allowing us to do this and continuing theCUBE tradition at Sapphire Now. I'm John Furrier with Jeff Frick. More coming after this short break.

>> Narrator: It's theCUBE, covering Sapphire Now 2017. Brought to you by SAP Cloud platform and HANA Enterprise Cloud. >> Welcome, this is theCUBE. I'm John Furrier. Special Sapphire Now 2017 coverage here in theCUBE coverage. I'm John Furrier and I'm with Frank Pulambo with Cisco, on my left Margaret Anderson with SAP and Gary Gauba with CenturyLink. Some significant news announcing, in conjunction with Sapphire is the relationship between you guys around a significant cloud and cloud computing deal. Margaret, congratulations. This is significant because customers want more flexibility. They want to have a cloud native, they want to have the flexibility of a data center. Frank, talk about the deal from a Cisco perspective and the relationship to the context of this deal. >> John, we're super excited to be part of it, and especially with CenturyLink and a vendor like SAP. Really, our role in it is to help our customers run on print, run in the cloud and really our infrastructure products need to provide the simplicity to performance and the security for them to do that. >> Margaret, talk about the deal specifics. What does the deal entail? >> Well, it's a unique deal, because CenturyLink was already on of our partners for the HANA Enterprise cloud business. Then when the Cisco team came along and said, "You know what? "If we put our gear into the CenturyLink data centers "and power the SAP HANA Enterprise Cloud, "that would be a tremendous win for everybody." And so, we're very excited about that. >> Gary, I find this deal interesting because you have the engine of the SAP, you have the network and all the benefits that Cisco brings to the table. You're dealing with the implementation and manage to serve the customers. What's the important takeaway from this announcement? >> To me, I think if you take a step back, as we're siting down with some of the top SAP execs, and Chuck from Cisco and our CEO, Glen Post. We're talking, "Okay, how do we leverage "our joint assets together? "How do we create more value for our customers?" If you look at today, every customer the number one priority is digital transformation. The cloud obviously is part of that equation, right. The other bigger priority is, "Okay, how do I monetize this data "in this new connected world?" You're looking at 1.8 trillion connected objects by the year 2020, which will be generating 43 zetabytes of data. But let me quiz you out, how many zeros in a zetabyte? >> I think I knew this answer going in, since I got it wrong on our previous take. So, 12, it's 21. >> Maybe. (panel laughs) >> Okay. >> It's a lot. >> All right, I'm going to say 21 too. >> All right. >> Well, just a lot. It's a lot of data, a lot of devices. >> Yeah, I got to go with 21. It sounds like a good number. >> These are my cheat sheets, right. Anyway, they had-- >> Too many zeros. >> Too many zeros. >> Margaret: Yeah, too many zeros. >> And a significant, it's getting worse, the data tsunami is coming, it's already happening. >> It's happening. You think about the amount of data which is being generated. What we want to do is we want to provide highly secure, automated and in this case SAP certified private cloud platform from CenturyLink. Where we can really have the customers laser focus on the business they do. We help them with the deep platform which can help them monetize their data, help them drive their top line, increase the bottom line. Mitigate the rest in a fast manner and a highly secure manner as well, I'll talk more about that. >> Gary, you bring up a good point, and I want to get Frank involved in this and next I want to double down on the data comment. Because you factor in even the IoT, Internet of Things growth. It's going to be even more significant. Then, the security question pops up, because as the data centers move to the cloud and the hybrid and or pure cloud, the perimeter is gone. Now, the perimeter is how we managed security in the past. But now with the perimeter-less environments security is critical. How does this customer feel secure? And if you guys comment on the security aspect of how this relationship will roll out and the non-disruptive nature that you guys bring to the table? Because that's what customers want to know. >> John, from a Cisco perspective and Gary mentioned, when we talk about the digital transformation. And that's the buzzword in the industry, but most customers are looking for a business outcome. Really, to get that business outcome they have to make a business decision probably based off the technology like SAP HANA. This is mission critical information. At Cisco that's why we're in tune for what the network can do, because it's going to provide security at a lot of layers. Whether it's at the edge, whether it's at the aggregation point or all the way back to the data center, or into the cloud. The security at multi-layers and multiple places. With the bad actors out there that's the way you need to implement it. So you can start to bring this stuff together and give the customers the confidence that, "Hey, this transactionous data is going to be secure." >> Gary, the outcome that we're talking about is no hacks, no breaches, secure? >> Yeah, well it is highly secure, but you got to always be prepared. If you think about it, CenturyLink, we have 550,000 miles of fiber. Once we complete the level three acquisition, we'll add another 200,000 miles of fiber. You're talking about 750,000 miles of fiber touching 100 countries over six continents and 35 person of the global internet traffic going to our network. Once the level three acquisition is complete, we'll be the second largest network and we're critical to countries' infrastructure. There's a deep focus on cyber threats, things we do to avoid the bad actors getting in. >> I think that network intelligence too is going to give you more data to fight the actors as well. >> Absolutely, but to your earlier point, we truly, the situation gets compounded with this connected world revolution. When you are connecting these 1.8 trillion objects, you got to ensure each of these objects is secure. This is where the intersection of cyber security and IoT kicks in, and that's right in our wheel house. >> Don't forget latency, a word that's reering its head. More importantly it has people move across with IoT and across the cloud. Margaret, talk about the role that the HANA Enterprise Cloud plays in all of this. Is it the glue, is it the connecting tissue? What's the role of the HANA Cloud platform? HANA Enterprise Cloud, sorry. >> Yeah, I was just going to say. From a HANA Cloud perspective, it's a private managed cloud. We do an awful lot of work from an SAP perspective to make sure that the customer's environment is totally secure, but is also accessible all of the time for the customer. Because today, most businesses run 24/7 and they run all around the globe. When some team is working and this is their prime business day, later in the US business day, it's prime business time out in Asia, it's prime business time in Europe. You need a cloud that's always available, always up and it's secure. You can guarantee that no other data is leaking into it or out of it. That's really important for our customers, because if you think about it, we have customers today that are SAP customers running in the HANA Enterprise Cloud that are competitors to each other. You have to make sure that you can guarantee that there's not going to be any, data is going to sneak out the back door here or something is going to get in the back door over there. We have a fairly large security team at SAP. We have very stringent standards at SAP. Every time we form partnership with somebody, we say, "Here are our standards. "If you can't comply to these, "we can't do business with you as a partner." From our perspective, it's very important to know that anybody that we work with takes security as serious as we do. >> Well, certainly these guys are big partners, they're known companies, Cisco and CenturyLink. This is big. Talk about the unified, how you guys are going to help with the unified competing architecture that Cisco has. Because you guys have mastered this in the data center and you guys have a lot of experience with now the cloud. What's your vision on how this is going to play out from a Cisco standpoint? >> As Margaret described, their multi-tenancy in the SAP environment is a pillar for them, they have to make that work for the customer and that's something we've been driving at Cisco for a long time. When it comes to the computer platform, which we call UCS, we've been really the leader in converge infrastructure platforms for a long time with UCS and most recently now we're the number one platform for SAT with UCS in the converge environment. It's those attributes that have enabled us to really get inserted there to provide the customer value. >> You get the packet level of the network transformations, >> Yeah, John. >> So picked very nicely. >> You're more of a geek than I know. You're pretty good. >> Well, we follow Looking at the 5G network transformation you're seeing a lot of end-to-end architectures really winning out. I think why I'm excited about this new is essentially it's a partnership that's providing an need-to-end solution. Gary you are in the front line, you're the manager of service. Talk about the impact that you see this deal, because now you have to turn up services and have that customer touch point. >> If you look at how we're pulling together the solution. Obviously if look on the compute side we're using the UCS and on the switches there's the Cisco networking switches and then you're looking at the-- >> Nexus, Gary, Nexus. >> Nexus, all right. >> I didn't get to that. >> I wanted to make sure Frank is paying attention. (panel laughs) Then you're looking at the net app storage and the VMWare for virtualization. Then another key element we're using is Winamix, which integrates with the UCS and is pretty much integrating all the APIs for all these components. Obviously the powerful in memory HANA engine. All these things are pulled together to create a platform which we are providing to the customers, so that they can really focus on what they are good at, their business and they're delivering a powerful rally to their customers. What it does is, with the UCS and the Winamix and some of the other elements, we can onboard customers within this. What used to take us 32, 33 days now we can do that within 9 to 11 days which is a big big plus when a customer approaches us. >> It's a huge shape in the business model first of all, the client delivery on your end and service is significant. There's a lot of automation involved. In fact I was talking to a venture capitalist recently here in Silicon Valley and we were talking about network transformation, digital transformation and they invest in infrastructure. He goes, "Oh no, not a lot of new companies are coming out "with an infrastructure making hardware just as the cloud." He says plumbers are turning into machinists kind of indicating that a lot of automation is happening at the lower end of the stack and the action is happening higher up in the stack to your point. Things are happening faster in terms of level of services. >> Absolutely and I think another thing which we also bring to the table is that the deep essence expartice if you look at some of the mission critical applications whether it is SVOHANA, suite on HANA the ECC or the entire BI suite enterprise portal and the list goes on right. And that becomes critical so we can get them up and running very quickly and give us all in one on to the country. >> A significant endorsement with you, make a comment? >> Am just saying when you're talking about the visibility of the SAP platform this is something the customers thought about right. Its going to get to all levels of the organization and really they're making critical business decisions off of the SAP HANA platform its got to be there. I mean and that's obviously our challenge to meet that for customers. >> Margaret, HANA Enterprise cloud is the engine and you guys are providing significant on it. How do you see this collaboration playing out for customers? What should they expect from the collaboration of Cisco and CenturyLink? >> Well what we want the customer to have is a seamless experience. We tell them upfront that we have this partnership and that we're going to work together but we really want to keep them focused on the value that they get from running their applications. Because, think about it this way, when you get in the car and you turn on the engine, you want to drive away right? You know the engine is there, you know that the engine, depending on how much horse power you've invested in, depending on what kind of make and model, you get different things from it. But you know it's going to always be there, it's always going to work. Then if you want to enhance the engine, shall we say you want to know that the right people have the skillset for those enhancements. When customers come into the HANA Enterprise Cloud, sometimes they start off with the migration. One of the things you're doing is you're kind of sunsetting all the old stuff and you're helping them move on to our HANA platforms whether is S4, whether it's Suite on HANA, whether it's our VI suite, you're helping the customer get started. But that's the start, because after that there's all this other wonderful stuff that we develop at SAP being that we're a software house, like IoT and our Leonardo that's being announced in Sapphire and we want customers to be ready to take advantage of that. We tell the customers, "You need to move away from all the "old stuff because it's not reliable any more, "we want to move you into a different level "of reliability so that you're ready "to scale up your organization. "And so that you can do more business." And in the end the customer says, "Okay, I need to know the cloud is there for me, "I don't want to have to be thinking about it everyday. "What I want to be thinking about is "how can I do new business, how can I open up offices "in other parts of the world, "how can I transact business globally?" They're not really thinking about, okay, I need more stuff. If they need to expand we call up our partners and we say, Okay the customer wants five more terabits or something, 10 more terabits of whatever, and they just want it to happen. They don't want to have really long projects, they just want it to be there for them, they want to know that they can scale out and scale up. >> One thing just to add, I think Richard mentioned, it just becomes critical that the redundancy is there. This is where the MetroDR capabilities which we bring to the table. That becomes very powerful and if you look at what we have done is, we have created 10 parts, in the US you have those in Santa Clara, Dallas, Chicago and the Dc Sterling area. Then Singapore and the London market. The MetroDr capabilities are available in all the three markets. Which is a very critical element that the customers know. >> This is, the recovery certainly is really a big deal because you can think about after effect, you've got to think about the upfront in the service. You cannot just say, "Oh I forgot that thing about DR." >> The thing is, you get into a lot more preventive maintenance because this is where there are dedicated teams which are doing nothing. Once the bill processes down you get them up and running and how do you ensure we are able to predict before anything? >> I think this news is significant, one the size of the players involved but two, it speaks to the transformation that's happening in the market place. Customers are moving to a new way to operate their business and at the end of the day you guys are making it easier to run some of the core software that can scale. But it comes down to, how do you migrate and scale without having any kind rip and replace or lift and shift. Lift and shift, I would have said is codeword for rip and replace, but customers are on an evolution journey, there is no silver bullet in the cloud in my opinion, some we've covered that with you. You're thoughts on this, do you guys see it the same way? Customers aren't just going to move tomorrow, they're going to want an evolutionary approach, but they're going to want to have a scale. >> It's a journey, oftentimes customers say to us, what's the safest thing to do first? What pieces of my environment can I take into the cloud and then gradually over time, whether it's a few months, whether it's six months increments. It depends on how the customer is running their business. Can I keep moving it in there so I can keep getting value and at some point his is all done, goes away and now I'm fully transformed into the cloud. We see some customers who can do really quick projects, they're very agile and they're very nimble and so we can migrate them in and get them going and running very quickly. We've got other customers who are more risk adverse. They want to proceed a little slowly. We can do all of the flavors, depending on what they want to do and so when we first talk to customers about the HANA enterprise cloud, we talk about the options. We talk about what they can do, we make recommendations from an SAP perspective as to what we think their speed could be and then we help them get into the cloud. Because they might get left behind if they don't make that move. >> The modernization trend is key, people want to be modern, the apps are being written differently, the more the relevance is more towards agile and speed. I think I like this announcement you've got the reliability that Cisco would move in packets around the data center rock solid, the software, core engine on Enterprise cloud and scale the manage service level that can give you the flexibility to run whatever you want. I think that's interesting, did I get that right? >> I think the other thing is, it's not like we've been working on this thing for a week, we've bene working together on this solution for years now that you've got to make it right. There's different stages along the way. >> What are some of those key stages that a customer should know about? >> We were just talking about HANA Enterprise Cloud, could you run HANA in the cloud now? No, that's faded completely, it's already done you certainly can't. Customers can make decisions now to say, "Hey am I going to start on prime, am I going to start "in the cloud?" And go though that whole kind of process of what's the best thing. We're providing that flexibility but this is something we've been working on for a while and I think, when you look at the other solutions out there of customers making the right evaluation, you want to go with a CenturyLink SAP and Cisco to say, "Hey, this is the right muscle, "the right process behind us." >> This is amazing, you guys are a great deal, again Frank, senior vice president Cisco and Gary who is the chief relationship officer and president of the Advanced Solution Group and Margaret. All the senior executives, the principals here congratulation on this news, we'll wait to see how it plays out. >> Margaret: Thank you for having us today. >> Special keep coverage of Sapphire 2017, I'm John Furrier. Back with more live coverage after this short break. (electronic music)

>> Announcer: Live from Munich, Germany, it's The CUBE, covering DataWorks Summit Europe 2017. Brought to you by Heartenworks. >> Okay, welcome back everyone, we are here live in Munich, Germany For DataWorks 2017, the DataWorks Summit, formally Hadoop Summit. I'm John Furrier with Silicone Angle's theCUBE, my co-host Dave Vellante, wrapping up day two of coverage here with Christoph Schubert, who's the Senior Director of SAP Big Data, handles all the go-to-market for SAP Big Data, @sapbigdata is the Twitter handle. You have a great shirt there, Go Live >> Go Live or go home. (Laughs) >> John: You guys are a part. Welcome to theCUBE. >> Christoph: Thank you, I appreciate it. >> Thanks for joining us and on the wrap up. You and I have known each other, we've known each other for a long time. We've been in many Sapphires together, we've had many conversations around the role of data, the role of architecture, the role of how organizations are transforming at the speed of business, which is SAP, it's a lot of software that powers business, under transformation right now. You guys are no stranger to analytics, we have the HANA Cloud Platform now. >> Christoph: We know a thing or two about that, yeah. (laughs) >> You know a little bit about data and legacy as well. You guys power pretty much most of the Fortune 100, if not all of them. What's your thoughts on this? >> Yeah, good point. On the topic of some numbers, about 75% of the world GDP runs through SAP systems eventually. So yes, we know a thing or two about transactional and analytical systems, definitely. >> John: And you're a partner with Hortonworks >> With Hortonworks and other Cloud providers, Hadoop Providers, certainly, absolutely but in this case, Hortonworks. We have, specifically, a solution that runs on Hadoop Spark and that allows, actually, our customers to unify much, much larger data sets with a system of records that we now do so many of them around the world for new and exciting new cases. >> And you were born in Munich. This is your hometown. >> This is actually a home gig for me, exactly. So, yes, unfortunately I'll also be presenting in English but yeah, I want to talk German, Bavarian, all the time. (laughs) >> I see my parents tonight. >> I wish we could help you >> but we don't speak Bavarian. But we do like to drink the beer though. It's the fifth season but a lot of great stuff here in Germany. Dave, you guys, I want to get your thoughts on something. I wanted to get you, just 'cause you're both, you're like an analyst, Christoph as well. I know you're over at SAP but, you know, you have such great industry expertise and Dave obviously covers the stuff everyday. I just think that the data world is so undervalued, in my mind. I think the ecosystem of startups that are coming out in the, out of the open source ecosystems, which are well-defined, by the way, and getting better. But now you have startups doing things like VIMTEC, we just had a bank on. Startups creating value and things like block chain on the horizon. Other new paradigms are coming on, is going to change the landscape of how wealth is created and value is created and charged. So, you've got a whole new tsunami of change. What's your thoughts on how this expands and obviously, certainly, Hortonworks as a public company and Cloudera is going public, so you expect to see that level up in valuation. >> They're in the process, yes. >> But I still think they're both undervalued. Your thoughts. >> Well it's not just the platform, right? and that what, I think, where Hadoop also came from. The legacy of Hadoop is that you don't have to really think about how you want to use your data. You have to, don't think ahead what kind of schema you want to apply and how you want to correlate your data. You can create a large data lake, right? That's the term that was created a long time ago, that allows customers to just collect all that data and think in the second stage about what to use with it and how to correlate it. And that's exactly, now, we're also seeing in the third stage, to not just create analytics but also creating applications instead of analytics or on top of analytics, correlating with data that also drives the business, the core business, from an OLTP perspective or also from an OLAP perspective. >> I mean, Dave, you were the one who said Amazon's a trillion dollar TAM, will be the first trillion dollar company and you were kind of, but you looked at the thousand points of Live with Cloud enables, all these aggregated all together, what's your thoughts on valuation of this industry? Because if Hortonworks continues on this peer play and they've got Cloudera coming in and they're doing well, you could argue that they're both undervalued companies if you count the ecosystem. >> Well, we always knew that big data was going to be a heavy lift, right? And I would agree with what Christoph was saying, was that Hadoop is profound in that it was no schema on right and ship five magabytes of code to a pedabyte of data. But it was hard to get that right. And I remember something you said, John, at one of our early SAP Sapphires, When the big data meme was just coming through. You said, "You know, SAP is not just big data, it's fast data". And you were talking about bringing transaction and analytic data together. >> John: Right. >> Again, something that has only recently been enabled. And you think about, you know, continuous streaming. I think that, now, big data has sort of entered the young-adulthood phase, we're going to start seeing steep part of that S-curve returns, and I think the hype will be realized. I think it is undervalued, much like the internet was. It was overvalued, then nobody wanted to touch it, and then it became. Actually, if you think back to 1999, the internet was undervalued in terms of what it actually achieved. >> John: Yeah. >> I think the same or similar thing is going to happen with big data. And since we have an SAP guest on, I'll say as well, We all remember the early days of ERP. >> Mhm, oh yeah. >> It wasn't clear >> Nope. >> Who was going to emerge as the king. >> Right. >> There were a few solutions. You're right. >> That's right. And, as well, something else we said about big data, it was the practitioners of ERP that made the most money, that created the most value and the same thing is happening here. >> Yeah. In fact, on that topic, I believe that 2017 and 2018 will be the big years for big data, so to speak. >> John: Uh huh. >> In fact, because of some statistics. >> John: In what way? >> Well, we just did >> Adoption, S-curve? >> Right, exactly. Utilizing the value of big data. You're talking about valuation here, right? 75% of CEOs of the top 1000 believe that the next three years are more important to their business than the last 50. And so that tells me that they're willing to invest. Not just the financial market, where I believe really run the most sophisticated big data analytics and models today. They had real use cases with real results very quickly. And so, they showed many how it's done. They created sort of the new role of a data scientist. They have roles like an AML officer. It's a real job, they do nothing else but anti-money laundering, right? So, in that industry they've shown us how to do that and I think others will follow. >> Yeah, and I think that when you look at this whole thing about digital transformation, it's all about data. >> John: Yeah. >> I mean, if you're serious about digital transformation, you must become a data-driven company and you have to hop on that curb. Even if you're talking to the, you know, bank today who got on in 2014, which was relatively late, but the pace at which they're advancing is astronomical. >> John: Yeah. >> I don't remember his name, a British mathematician, created, about 11 years already, that according to the phrase "Data is the new oil". >> John: Mhm. >> And I think it's very true because crude oil, in its original form, you also can't use it. >> John: It has to be refined. >> Right, exactly. It has to be refined to actually use it and use the value of it. Same thing with data. You have to distill it, you have to correlate it, you have to align it, you have to relate it to business transactions so the business really can take advantage of it. >> And then we're seeing, you know, to your point, you've got, I don't know, a list of big data companies that are now in public is growing. It's still small, not much profit. >> I mean, I just think, and this is while I'm getting your reaction, I mean, I'm just reading right now some news popping on my dashboard. Google just released some benchmarks on the TPU, the transistor processing unit, >> Dave: Right. >> Basically a chip dedicated to machine learning. >> Yep. >> You know, so, you're going to start to see some abstraction layers develop, whether it's a hardened-top processor hardware, you guys have certainly done innovation on the analytic side, we've seen that with some of the specialty apps. Just to make things go faster. I mean, so, more and more action is coming, so I would agree that this S-curve is coming. But the game might shift. I mean, this is not an easy, clear path. There's bets being made in big data and there's potential for huge money shift, of value. >> See, one of the things I see, and we talked to Hortonworks about this, the new president, you know, betting all on open source. I happen to think a hybrid model is going to win. I think the rich get richer here. SAP, IBM, even Oracle, you know, they can play the open source game and say, "Hey, we're going to contribute to open source, we're going to participate, we're going to utilize open source, but we're also going to put the imprimatur of our install base, our business model, our trusted brands behind so-called big data." We don't really use that term as much anymore. It's the confluence of not only the technology but the companies who, what'd you say, 75% of the world's transactions run though SAP at some point? >> Christoph: Yeah. >> With companies like SAP behind it, and others, that's when this thing, I think, really takes off. >> What I think a lot of people don't realize, and I've been a customer, also, for a long time before I joined the vendor side, and what is under-realized is the aspect of risk management. Once you have a system and once you have business processes digitized and they run your business, you can't introduce radical changes overnight as quickly anymore as you'd like or your business would like. So, risk management is really very important to companies. That's why you see innovation within organizations not necessarily come from the core digitization organization within their enterprise, it often happens on the outside, within different business units that are closer to the product or to the customer or something. >> Something else that's happening, too, that I wanted to address is this notion of digitization, which is all about data, allows companies to jump industries. You're seeing it everywhere, you're seeing Amazon getting into content, Apple getting into financial services. You know, there's this premise out there that Uber isn't about taxicabs, it's about logistics. >> John: Yeah. >> And so you're seeing these born-digital, born in the cloud companies now being able to have massive impacts across different industries. Huge disruption creates, you know, great opportunities, in my view. >> Christoph: Yeah. >> David: What do you think? >> I mean, I just think that the disruption is going to be brutal, and I want to, I'm trying to synthesize what's happening in this show, and you know, you're going to squint through all the announcements and the products, really an upgrade to 2.6, a new data platform. But here in Europe the IOT thing just, to me, is a catalyst point because it's really a proof point to where the value is today. >> David: Mhm. >> That people can actually look at and say, "This is going to have an impact on our business tier digitization point" and I think IOT is pulling the big data industry and cloud together. And I think machine learning and things that come over the top on it are only going to make it go faster. And so that intersection point, where the AI, augmented intelligence, is going to come in, I think that's where you're going to start to see real proof points on value proposition of data. I mean, right now it's all kind of an inner circle game. "Oh yeah, got to get the insights, optimize this process here and there" and so there's some low hanging fruit, but the big shifting, mind blowing, CEO changing strategies will come from some bigger moves. >> To that point, actually, two things I want to mention that SAP does in that space, specifically, right? Startups, we have a program actually, SAP.io, that Bill McDermont also recently introduced again, where we invest in startups in this space to help foster innovation faster, right? And also connecting that with our customers. >> John: What is it called? >> SAP.io Something to look out for. And on the topic of IOT, we made, also, an announcement at the beginning of the year, Project Leonardo. >> Yeah. >> It's a commitment, it's a solution set, and it's also an investment strategy, right? We're committed in this market to invest, to create solutions, we have solutions already in the cloud and also in primus. There are a few companies we also purchased in conjunction with Loeonardo, RT specifically. Some of our customers in the manufacturing space, very strong opportunity for IOT, sensor collection, creating SLAs for robotics on the manufacturing floor. For example, we have a complete solution set to make that possible and realize that for our customers and that's exactly a perfect example where these sensor applications in IOT, edge, compute rich environments come together also with a core where, then, a system of references like machine points, for example, matter because if you manage the SLA for a machine, for example, you just not only monitor it, you want to also automatically trigger the replacement of a part, for example, and that's why you need an SAP component, as well. So, in that space, we're heavily investing, as well. >> The other think I want to say about IOT is, I see it, I mean, cloud and big data have totally disrupted the IT business. You've seen Dell buying EMC, HP had to get out of the cloud business, Oracle pivoted to the cloud, SAP obviously, going hard after the cloud. Very, very disruptive, those two trends. I see IOT as not necessarily disruptive. I see those who have the install base as adopting IOT and doing very, very well. I think it's maybe disruptive to the economy at large, but I think existing companies like GE, like Siemens, like Dimar, are going to do very, very well as a result of IOT. I mean, to the extent they embrace digitization, which they would be crazy not to. >> Alright guys, final thoughts. What's your walkaway from this show? Dave, we'll start with you. >> I was going to say, you know, Hadoop has definitely not failed, in my mind, I think it's been wildly successful. It is entering this new phase that I call sort of young-adulthood and I think it's, we know it's gone mainstream into the enterprise, now it's about, okay, how do I really drive the value of data, as we've been discussing, and hit that steep part of the S-curve. Which, I agree, it's going to be within the next two years, you're going to start to see massive returns. And I think this industry is going to be realized, looked back, it was undervalued in 2017. >> Remember how long it took to align on TCP/IP? (laughter) >> Walk away, I mean interoperability was key with TCP/IP. >> Christoph: Yeah. One of the things that made things happen. >> I remember talking about it. (laughter) >> Yeah, two megabits per second. Yeah, but I mean, bringing back that, what's your walkaway? Because is it a unification opportunity? Is it more of an ecosystem? >> A good friend of mine, also at SAP on the West Coast, Andreas Walter, he shared an observation that he saw in another presentation years ago. It was suits versus hoodies. Different kind of way to run your IT shop, right? Top-down structure, waterfall projects, and suits, open source, hack it, quickly done, you know, get in, walk away, make money. >> Whoa, whoa, whoa, the suits were the waterfall, hoodies was the agile. >> Christoph: That's correct. >> Alright, alright, okay. >> Christoph: Correct. So, I think that it's not just the technology that's coming together, it's mindsets that are coming together. And I think organizationally for companies, that's the bigger challenge, actually. Because one is very subscribed, change control oriented, risk management aware. The other is very progressive, innovative, fast adopters. That these two can't bring those together, I think that's the real challenge in organizations. >> John: Mhm, yeah. >> Not the technology. And on that topic, we have a lot of very intelligent questions, very good conversations, deep conversations here with the audience at this event here in Munich. >> Dave, my walkaway was interesting because I had some preconceived notions coming in. Obviously, we were prepared to talk about, and because we saw the S1 File by Cloudera, you're starting to see the level of transparency relative to the business model. One's worth one billion dollars in private value, and then Hortonworks pushing only 2700 million in a public market, which I would agree with you is undervalued, vis a vis what's going on. So obviously, you're going to see my observation coming in from here is that I think that's going to be a haircut for Cloudera. The question is how much value will be chopped down off Cloudera, versus how much value of Hortonworks will go up. So the question is, does Cloudera plummit, or does Cloudera get a little bit of a haircut or stay and Hortonworks rises? Either way, the equilibrium in the industry will be established. The other option would be >> Dave: I think the former and the numbers are ugly, let's not sugarcoat it. And so that's got to change in order for this prediction that we're making. >> John: Former being the haircut? >> Yeah, the haircut's going to happen, I think. But the numbers are really ugly. >> But I think the question is how far does it drop and how much of that is venture. >> Sure. >> Venture, arbitrage, or just how they are capitalized but Hortonworks could roll up. >> But my point is that those numbers have to change and get better in order for our prediction to come true. Okay, so, but in your second talk, sorry to interrupt you but >> No, I like a debate and I want to know where that line is. We'll be watching. >> Dave: Yeah. >> But the value in, I think you guys are pointing out but I walk away, is IOT is bigger here, and I already said that, but I think the S-curve is, you're right on. I think you're going to start to see real, fast product development around incorporating data, whether that's a Hortonworks model, which seems to be the nice unifying, partner-oriented one, that's going to start seeing specialized hardware that people are going to start building chips for using flash or other things, and optimizing hard complexities. You pointed that out on the intro yesterday. And putting real product value on the table. I think the cards are going to start hitting the table in ecosystem, and what I'm seeing is that happening now. So, I think just an overall healthy ecosystem. >> Without a doubt. >> Okay. >> Great. >> Any final comments? >> Let's have a beer. >> Great to see you in Munich. (laughter) >> We'll have a beer, we had a pig knuckle last night, Dave. We had some sauerkraut. >> Christoph: (speaks foreign word) >> Yeah, we had the (speaks foreign word). Dave, we'll grab the beer, thanks. Good to be with you again. Thanks to the crew, thanks to everyone watching. >> Thanks, John. >> The CUBE, signing off from Munich, Germany for DataWorks 2017. Thanks for watching, see ya next time. (soft techno music)

(click) >> Hey, welcome everybody, Jeff Frick here with theCUBE. Well, it is an excited day and we're really happy to be covering big announcements coming out of Google Next today. And we wanted to get right down here to SAP Silicon Valley Headquarters and talk to Sam Yen and get his take on what's happening up in San Francisco today. So, first off, Sam great to see ya. >> Yeah, great to see you as well. >> So, Sam you are the Managing Director of SAP Silicon Valley. Obviously, you guys have a big presence in Philly, and a big presence here in Paulo Alto. And also the Chief Design Officer. So, let's just jump into it. So, Bernd Leukert was onstage with Diane Green this morning kicking off the Google Next Conference and talking about this new relationship between SAP and Google. >> I think, first of all, it's the trend in what the industry's happening right now. If you look at companies, companies are more and more willing to go to the public cloud in terms of helping them with their infrastructure needs. The market is actually really going to double between now and 2020. So, with that we have three major announcements that we announced today. The first one was SAP's flagship products running on GCP, Google's Cloud Platform. The first one is HANA. If you know anything about SAP, HANA's been our data processing engine, memory processing engine for the last number of years. It's our flagship product that we've been talking about. And that's now certified for GCP. The second thing is really more for the, it's still part of the first announcement, but for the development community bringing HANA Express which is a downloadable version of HANA that you can put on your laptop and really get to know what HANA's all about and see how easy it is to develop on top of HANA. So, that's now available on Google Cloud Launcher. Also, SAP's cloud platform is also going to be, we're working very closely together to co-innovate together with Google. The second part of the second announcement, is taking infrastructure as a service to the next level. SAP has always had a multi-cloud strategy offering customers choice in where they want to deploy on public cloud. And Google is now available from that perspective. But beyond just infrastructure to service, we want to partner with Google to take things like data privacy and protection to the next level by offering transparency over how customers monitor and understand what's going on from the governance, risk and compliance perspective on their information. The last thing, which is really exciting as well, is bringing together productivity tools together with SAP. Google's G Suite, things like Mail and Sheets and Hangouts and things like that, and making that integrate seamlessly into the SAP backend system. >> So, so many layers to these announcements. And thank you for laying it all down. The first one, just at a high level, is clearly enterprises are comfortable with public cloud. There's now more enterprisy software firm out there than SAP. And for you guys to really get together with Google and Google Cloud, that really shows that the conversation is no longer about, "Should I go to the cloud?" or "Is the cloud safe?" or "Is it appropriate for enterprise?" But enterprises are fully all in. >> That's definitely the trend. Customers are different in their journey but more and more we're seeing that. And the numbers that I talked about in terms of the investment and spend for public cloud is growing through the roof. At the end of the day, SAP from an SAP perspective, and also from a Google perspective, we want to provide as many options for customers as we can. And we think that by doing this we're providing the best potential solutions for where a customer thinks they need to be today and tomorrow. >> Right, and it's really about workloads, right? It's not even specifically about customers. 'Cause you guys still have Google Cloud, or excuse me, SAP Cloud, recently the HANA Cloud platform recently renamed. So, you still have your own cloud if they want their own kind of enterprise cloud that you're going to run for them. Obviously, they can run SAP on their own internal cloud now you're saying they can run SAP on Google's cloud. But it's really more workload and application and use case specific as opposed to a company. >> Yeah, and I think ultimately options for the customer in terms of their particular situation. Yes, SAP will continue to have our own hosting, our own cloud as well. But you also mentioned SAP Cloud Platform. So, there's many, many different ways from a platform as a service perspective, enterprise services that we provide from a SAP perspective running on Google's infrastructure. And also leveraging the Google services that they provide on their Cloud Platform as well. >> Right, another piece that you said kind of towards the end of many, many announcements happening today, is really the developer angle. Every show, we cover a hundred shows a year, and every one is fighting for the attention of the developer, and really trying to cater to the developer. 'Cause that's where the power is. And you want a robust developer ecosystem because that's what moves things forward. So, this is a pretty interesting announcement now that developers can basically download a version of HANA onto their laptop to have an appeal to help them develop more stuff for you. >> Yeah, and I think the broader statement here is we're combining the power of the SAP development ecosystem with the millions and millions of people also in the Google development ecosystem to build solutions for customers. At the end of the day, the power of your offering is really the power of your ecosystem. And it's kind of interesting, being here in a German company actually in Silicon Valley from an SAP perspective, enterprise seems to be the new black right now. There are more consumer brands that are looking at going into the enterprise. And SAP's starting to become more and more an on-ramp into the enterprise for these companies. >> And it's interesting because public clouds, traditionally, years ago weren't really thought of as a true enterprise solution or maybe test but you'd never run your production workloads. But clearly now that's going away. That said, there's a lot of very specific issues that you have to deal with with the enterprise security, compliance, the rules around the world that are different for data sovereignty, etc. So, you guys bring a real depth of experience in those areas to this new announcement. >> Yeah, I think that's the power of the partnership if you think about Google and the public cloud, the scalability, the availability, the reach of the Google public cloud and their expertise in terms of the infrastructure and the operations. And then you combine that with SAP's experience in terms of what works from a governance, risk and compliance perspective. We have an understanding both with customers and their needs. And also working with local governments and the policies that need to be in place. So, I think it's a beautiful combination of the two companies. >> Now, the next kind of big trend that cloud is helping even accelerate more is A.I. and machine learning and you know, we're kind of going to Phase Two of what was formerly known as Big Data and Hadoop and now were moving to a much more sophisticated version of that enabled by cloud. Obviously, Google's got a ton of expertise in machine learning and A.I. You guys have been doing it on the enterprise side. Again, coming together, one plus one makes three? >> Absolutely, this is one of the exciting things that we're also, we've also talked about and announced, that we are partnering with Google to really take machine learning to the enterprise use cases. There's so much information that's going through enterprise systems. More and more information as things like Big Data, and Internet of Things, and social things are bringing information in. This is really, really fruitful area where think there's a lot of collaboration. Also, from a design perspective, once you have this information, how do you expose this stuff to the users that makes sense and really amplify human capabilities when we're talking about all this technology. >> Right, so you're sitting 6,000 miles from Waldorf, 3,000 miles from Philadelphia. How does this change things for you? You said you've been at SAP for a number of years now. You're sitting in the heart of Silicon Valley. What does this mean to you, kind of personally, and to SAP's presence in Silicon Valley to do this partnership with Google who's just right down the road and clearly one of the main powers. >> Yeah, I think it really talks about the importance of SAP's presence here in Silicon Valley. Again, as an on-ramp into the enterprise. There's lots and lots of partners that want to expand their business and figure out how they can bring their services also to the enterprise. It's almost like consumerization of IT if you will. And really, that's SAP's purpose and reason for being here. >> All right, well Sam I'll give you the last word. Great event today. Really exciting but before we know it SAP Sapphire will be upon us. I presume you guys will keep working tomorrow and have something new and special for us in Sapphire. >> Yeah, Google and SAP, we're in it for the long term. This is just the beginning. And look out for exciting announcements coming in Sapphire as well. >> All right, super. He's Sam Yen, I'm Jeff Frick. You're watching theCUBE. Thanks for watching. (energetic, techno music)

>> Man: Hold on, let me check. (musical fanfare) >> Narrator: Live from Silicon Valley, it's the Cube, covering Google Cloud Next '17. (busy electronic music) >> Okay, welcome back everyone. We're live in Palo Alto Studios, looking at media as the Cube, our new 4500 square foot studio where we can do broadcasts here, and of course we're covering a two day special, coverage wall-to-wall with Google Next 2017 in San Francisco. We just had the exclusive video with Sam Yen from SAP talking about the new relationship between Google Cloud Platform and SAP, SAP HANA, and also SAP Cloud platform. On the phone right now with reaction to the news in San Francisco is Akash Agarwal, GVP with SAP, Cube alumni, good friend. Akash, welcome to the Cube coverage and thanks for taking the time. >> Akash: Thanks John, we are proud to helping out. >> Akash, you've been intimately involved in a variety of very cool things with SAP. One of them has been the Apple announcement where you guys have a strategic relationship with Apple Computer, and at Mobile World Congress you've released the general availability of the developer kit, SDK, now shipping. On the heels of that amazing news, you now have a deal with Google Cloud. You also have a deal with Amazon Web Services, to be clear, but this a pretty comprehensive strategic deal. All the heavy hitters flying in from Germany. We had talked to Sam, we're talking to you. What is the reaction in Moscone in San Francisco around the SAP Google relationship news? >> Akash: I think, so the reaction is very positive and I think what this sort of shows everybody here that our friends at Google are very serious about the enterprise, and as such, they have extended a very warm hand in partnering with SAP and bringing what I call transactional and enterprise workloads onto Google Cloud, and I think that's a very significant change from what Google Cloud was doing in the past, they are supporting all kinds of workloads, but they're now really focusing on helping enterprises kind of transition into the cloud. I think SAP can act as a massive catalyst for that effort. >> It also brings a huge amount of credibility to the Google Cloud Platform, certainly in the enterprise. SAP has been a leader, powering some of the biggest business in the world with your software system of records, certainly the database is evolving. You've had cloud, you've had HANA, data analytics for many years, I can almost, I think seven years I've been to Sapphire, Bill McDermott, and back then Schnabel, was talking about analytics. This really hits home, because Google has a great mind share with the developer community, they actually have great empathy, they understand developers and open source, certainly they understand cutting edge technology. But now with SAP, this seems to be a nice lucky strike and a lightning strike, if you will, for developers to monetize with SAP, because you guys have real big paying enterprise customers that could use some cloud native. Is that how you see it? Help us understand the impact to developers and then the impact to customers. >> Akash: Yeah, I think the opportunity is multifold, as I would explain it. Customers, our customers and Google customers can take SAP workloads onto Google Cloud, and that is in the form of taking HANA and running any applications that run on top of HANA onto Google Cloud. I think that's kind of one piece of the announcement that we've made today. The second piece, and I think that's what you're alluding to is around developers, and those developers could be our developers, SAP's 2.5 million developers, it could be a multitude of developers that are attracted to Google and all the services that Google provides. But what they can do now is to leverage SAP's HANA Express product which is a developer centric product, and then run that on Google Cloud Platform, and build applications that could leverage HANA technology and build next generation of applications, either applications that are net new that can take data from any data source, or applications that want to extract data from SAP. The final thing that we also now as part of our HANA cloud platform or SAP Cloud platform is the ability to take the cloud foundry components of our SAP Cloud Platform and make them available on Google Cloud Platform and that. That, as you can see, is a very rich environment. We've extended Google's palette of services to include our SAP Platform as a service components to help fast track developers who want to build enterprise class applications that want to interchange data that's already in SAP systems or want to store stuff in our HANA database that is now going to be able to run on Google Cloud Platform. I think that's what has been announced here. It's quite a lot and I think over the coming months, developers will be able to get access to that, and if they can get access to it, on the Google Cloud Launcher platform later today they should be able to get a copy of the SAP HANA Express product. >> What is the impact to SAP? Because we spoke recently at the Amazon Web Services reinvent, Akash, obviously, you have a relationship with them as well. But this really kind of gives SAP a new set of capabilities for developers that aren't familiar with SAP. You have, certainly, a huge ecosystem of developers that are SAP centric, now a new community's developing for SAP, how do you see that unfolding for SAP and what are you guys doing specifically to onboard those developers and really give them the seamless tooling that they need so that they don't have to worry about all the engineering and the back office, database. What goodness are you bringing to those developers to make their life? >> Well, and I think first and foremost we've expanded the market, we are giving them access to great public cloud platforms in Amazon AWS, in Microsoft's Azure, and now with Google Cloud Platform. Now, a developer that wants to develop using SAP Cloud platform and SAP HANA has a choice, and they can now, depending on the expertise they have, depending on what they want to do, they can very easily leverage any of those three major cloud platforms. We're giving them choice and I think the world wants choice. We're making it easy, so that's number one. Number two, our SAP Cloud platform enablement teams are there to help cross track people. We're making it easy for developers to start working on products that are easy for developers such as the HANA Express, and they can, 32 GB worth of data that they use is free to use, and then they can go to SAP store and get a license key, and then enable that license key on any of the other public cloud providers as they expand and extend their systems. As you can see, I think we're giving them choice, we're giving them a lot of capability in terms of enablement, and then we're giving them a product which they can get started with with no friction. >> I want to ask you a question, Akash, because I know you have a lot of industry's view of the landscape. I was clarifying this morning in a blog post and also here on the Cube that you really can't compare Google Cloud to Amazon, they're two different worlds. You have apples and oranges, if you will. Why, help people understand real quickly, why, what is the Google Cloud all about? Because we really want to separate that conversation, they're not really apples to apples, it still is cloud, but there are differences. What is the key take away for users and customers about Google Cloud and what's the differentiation for them vis a vis other approaches? >> Well, that's not something that, I'm not the world expert on Google Cloud Platform, and I think that's something our friends at Google can kind of give you a very good rundown on. But, obviously, Google prides itself at, instead of services that are very data centric, they have, obviously, decades of experience in running their own services, and they're opening up some of those capabilities and making them available to their customers. We felt that we need to kind of double down on Google Cloud Platform and support that just like we're supporting the AWS platform and Azure. We believe that these are three major cloud platforms, each of them have their own uniqueness and capabilities, that these companies market and promote. I think it's best that you get someone from Google to comment on some of the differences, because I think there are quite a few, and I would be remiss at highlighting those. >> That's fair, appreciate that, and we'll try to have someone on in 5:00, we'll hopefully get someone slotted in. Final question for you, Akash. What's in it for the developers? To share your perspective on what you're excited about, that developers that don't know SAP should be excited about. What's the real opportunity for them in relevant? >> I think today a Google Cloud Platform developer has suddenly a window into the SAP world. The SAP world is big, it's very rich in usage, and those customers are large, they're interesting customers doing very complex things. I think it opens them up to grabbing the digital transformation ways that's hitting a lot of customers. I think what this can do to those developers is give them a window into a world that they perhaps didn't have before, because today, with SAP technology becoming available on Google Cloud Platform, they could suddenly target enterprise use cases that perhaps they were not doing before. These are transactional use cases. Obviously, both transactional and analytical type use cases, what we call OLAP use cases suddenly become important. I think the IoT opportunities are very interesting for developers. The industrial Internet is in full swing. Just coming back from Mobile World Congress, I think that was the theme, everything is connected. We can get you access to the customer record, we can get you access to the product, the SKU, that's all in SAP systems, and suddenly, the developer can access those systems to build next generation engagement applications as part of a digital transformation that the company may be doing. >> Yeah, I think Google could lean on you guys a little bit too, for partnering with the IoT certainly. Not a lot mentioned, maybe we'll hear more tomorrow, but I do think that, if I'm a developer, I would look at you guys as a innovation ground for using AI and using that data analytics making it very intelligent. You have the store of the data, you have the database. Congratulations to Akash, really appreciate you taking the time, on the ground in San Francisco. Akash Agarwal, GVP at SAP, friend of the Cube, a regular contributor here on our new studio programs. Thanks so much for taking the time and giving us a reaction and breaking down the news for us on the SAP Google relationship. >> Akash: Thanks, John. >> OK, more live coverage of Google Next coming right up. Be right back. (busy electronic music)

I[Announcer] Live from Silicon Valley, it's "The Cube." Covering Mobile World Congress 2017. Brought to you by Intel. >> 'Kay welcome back everyone, we are live in Palo Alto for "The Cube" special coverage of Mobile World Congress 2017. We're in our new 4,500 square foot studio, just moved in. We'll be expanding, you'll see a lot more in-studio coverage from "The Cube" as well as our normal going out to the events and extracting. Anyways I'm John Furrier Joining me is Jeff Frick. General manager of "The Cube." But a breakdown, all the action. As you know, we do a lot of data science. We've been watching the grid. We've been on the treadmill all weekend. All last week, digging into the Mobile World Congress. Sentiment, the vibe, the direction, and trying to synthesize all the action. And really kind of bring it all together for everyone here. And of course,we're doing it in Palo Alto. We're going to bring folks in from Silicon Valley that could not have made the trek to Barcelona. We're going to be talking to folks on the phone, who are in Barcelona. You heard from Lynn Comp from Intel. We have Floyd coming up next. CTO and SAP breaking down all the action from their new cloud. And big Apple news. SAP now has a general availability of the iOS native development kit. Which should change the game for SAP. There is tons of smart cities, smart stadiums, you know IOT, autonomous vehicles. So much going on at Mobile World Congress. We're going to break that down every day starting at 8AM. In-studio. And of course, I want to thank Intel for headlining our sponsorship and allowing us to create this great content. With some contributing support from SAP clouds I want to give a shout out, a bit shout out to Intel. Check out their booth. Check out their coverage. And check out their new SAP cloud, that's been renamed from HANA Cloud to SAP cloud. Without their support we wouldn't be able to bring this wall-to-wall great commentary. Jeff so with that aside. We got two days. We've got Laura Cooney coming in. Bob Stefanski managing this bridge between Detroit and Silicon Valley. And all that great stuff. Phones are ringing off the hook here in the studio. Go tweet us by the way at the cube or at ferrier We have Guy Churchwood coming in. We have great content all week. We have entrepreneurs. We have Tom Joyce, a Cube alumni. Who's an executive interviewing for a bunch of CEO positions. Really going to break down the changing aspect of Mobile World Congress. The iPhone's 10 years old. We're seeing now a new step function of disruption. Peter Burris said the most terrible in time. And I even compounded the words by saying and the phones are getting faster. So it's beyond the device. I mean what are you seeing on the grid? When you look at the data out there? >> John a bunch of things as we've been watching the stream of the data that came in and surprised me. First off just a lot of early announcements around Blackberry and Nokia. Who are often not really mentioned as the leaders in the handsets base. Not a place that we cover real extensively. But really kind of, these guys making a move and really taking advantage of the void that Samsung left with some of the Note issues. But what I thought was even more interesting is on our hashtag monitoring tools that IOT and 5G are actually above any of the handset manufacturers. So it really supports a hypothesis that we have that while handsets will be better and there'll be more data enabled by 5G, what 5G's really all about is as an IOT enabler. And really another huge step in the direction of connected devices, autonomous vehicles. We've talked about it. We cover IOT a lot. But I thought that was pretty interesting. >> Well Robo Car's also in there. That's a. >> Well everybody loves a car right. >> Well it's kind of a symbol of the future of the car. Which again ties it all together. >> Right right. The driverless race car, which is pretty interesting. >> Takes sports to a whole other level. >> I thought that was interesting. Another little thing as we watch these digital assistants and these voice assistants John, and I got a couple for Christmas just so I could try them out, is that Motorola announced that they're going to partner with Alexa. And use the Alexa voice system inside of their phones. You know I'm still waiting, I don't know why Siri doesn't have a stand-alone device and really when you use a Google Home versus an Amazon Alexa, very different devices, really different kind of target. So I thought that was an interesting announcement that also came out. But fundamentally it's fun to see the support of IOT and 5G, and really enable this next great wave of distribution, disruption, and opportunity. >> We're going to have Saar Gillia in the studio later today and tomorrow as a guest analyst for us on "The Cube." Of course folks may know Saar from being on "The Cube," he was recently senior vice reporting to Meg Whitman, and built out that teleco service provider, NFV business model for HP. And he's been to Mobile World Congress almost every year. He didn't make it this year, he'll be coming in the studio. And he told me prior to being, extremely vetting him for "The Cube" if you will, to use a Trump term, after extreme vetting of Saar Gillia he really wants to make the point of, and this is going to be critical analysis, kind of poking a hole into the hype, which is he doesn't think that the technology's ready for primetime. And specifically he's going to comment around he doesn't believe that the apps are ready for all this bandwidth. He doesn't think, he thinks that 5G is a solution looking for a problem. And I don't necessarily agree with him, so we'll have a nice commentary. Look for Saar today on "The Cube," at 11:30 he's coming on. It's going to be a little bit of a cage match there with Saar. >> I always go back to the which is the most underrepresented and most impactful law. Which is probably in the short term, in the hype cycle 5G's probably not going to deliver on their promise up to the level of the hype. As we find over and over with these funny things like Bluetooth. Who would ever think Bluetooth would be such an integral part of so many things that we do today? I think over the long term, the mid term, I think the opportunity's giant. >> I meant I think for people to understand 5G, at least the way I always describe it over the weekend, when I was at lacrosse games and soccer games over the weekend, for the folks that aren't in tech, 5G is the holy grail for IOT, mobile cars, and AI. Because what 5G does, it creates that mesh of rf, or rf radio frequency, at a whole other level. You look at the radios that Intel's announcing across their Telco partners, and what Intel's doing really is a game-changer. And we all know LTE, when the signal's low on the phone, everyone freaks out. We all know when WiFi doesn't work, the world kind of comes to a crawl. I mean just think 15 years ago wifi wasn't even around. So now think about the impact of just what we rely on with the digital plumbing called wireless. >> [Jeff] Right, right. >> When you think about the impact of going around the fiber to the home, and the cost it takes, to bring fiber to, Lynn Comp was commenting on that. So having this massively scalable bandwidth that's a radio frequency wireless is just a game-changing thing you can do. Low latency, 10 20 gig, that's all you need. Then you're going to start to see the phones change and the apps change. And as Peter Burris said a turbulent change of value propositions will emerge. >> It's funny at RSA a couple of weeks back the chatter was the people at RSA, they don't use wifi. You know, they rely on secure mobile networks. And so 5G is going to enable that even more, and as you said, if you can get that bandwidth to your phone in a safer, and secure, more trusted way, you know what is the impact on wifi and what we've come to expect on our devices and the responsiveness. And all that said, there will be new devices, there will be new capabilities. And I guess the other thing that's kind of funny is that of course the Oscar's made their way up to the, on the board. I thought that might wipe everything out after last night. But no IOT and 5G is still above Oscar's on the trending hashtag. >> Well I mean, Oscar's bring up... It's funny we all watch the Oscar's. There was some sort of ploy, but again, you bring up entertainment with the Oscar's. You look at what Hollywood's going through, and the Hollywood Reporter had an article talking about Reed Hastings with Netflix, he talked today really kind of higher end video so the entertainment business is shifting the court cutting is happening, we're seeing more and more what they call over the top. And this is the opportunity for the service providers but also for the entertainment industry. And with social media and with all these four form factors changing the role of media will be a packet data game. And how much can you fit in there? Whether it's e-sports to feature film making, the game is certainly changing. And again, I think Mobile World Congress is changing so radically. It's not just a device show anymore, it's not about the handset. It's about what the enablement is. I think that's why the 5G impact is interesting. And making it all work together, because a car talking to this device, it's complicated. So there's got to be the glue, all kind of new opportunities. So that's what I'm intrigued by. The Intel situation where you've got two chip guys battling it out for who's going to be that glue layer under the hood >> Right and if you look at some of the quotes coming out of the show a lot of the high-level you got to get away from the components and get into the systems and solutions, which we hear about over and over and over again. It's always about systems and solutions. I think they will find a problem to solve, with the 5G. I think it's out there. But it is... >> My philosophy Jeff is kill me with the bandwidth problem. Give me more bandwidth, I will consume more bandwidth. I mean look at compute pal as an example. People thought Morse law was going to cap out a decade ago. You look at the compute power in the chips with the cloud, with Amazon and the cloud providers it's almost infinite computes. So then the role of data comes in. So now you got data, now you got mobile, I think give us more bandwidth, I think the apps have no problem leveling up. >> [Jeff] Sucking it up. >> And that's going to be the debate with Saar. >> It's the old chip. The Intel Microsoft thing where you know, Intel would come out with a faster chip then the OS with eat more of it as part of the OS. And it kept going and going. We've talked through a lot of these John and if you're trying to predict the future and building for the future you really have to plan now for almost infinite bandwidth for free. Infinite storage for free, infinite compute for free. And while those curves are kind of asymptotically free they're not there yet. That is really the world in which we're heading. And how do you reshape the way you design apps, experiences, interphases without those constraints, which before were so so significant. >> I'm just doing a little crowd check here, you can go to crowdcheck.net/mwc if you want to leave news links or check in with the folks chatting. And I was just talking to SAP and SAP had the big Apple news. And one of the things that's interesting and Peter Burris talked about this on our opening this morning is that confluence between the consumer business and then the infrastructures happening. And that it was called devos but now you're starting to see the developers really focusing on the business value of technology. But yet it's not all developers even though people say the developers, the new king-makers, well I would say that. But the business models still is driven by the apps. And I think developers are certainly closer to the front lines. But I think you're going to start to see a much more tighter coupling between the c level folks in business and the developers. It's not just going to be a developer-led 100% direction. Whether it's entertainment, role of data, that's going to be pretty interesting Jeff. >> So Apple's just about finished building the new spaceship headquarters right. I think I opens up next month. I'm just curious to get your take John on Apple. Obviously the iPhone changed the game 10 years ago. What' the next big card that Apple's going to play? 'Cause they seemed to have settled down. They're not at the top of the headlines anymore. >> Well from my sources at Apple, there are many. Deep inside at the highest levels. What I'm hearing is the following. They're doing extremely well financially, look at the retail, look at the breadth of business. I think Tim Cook has done an amazing job. And to all my peers and pundits who are thrashing Apple they just really don't know what they're talking about. Apple's dominating at many levels. It's dominating firstly on the fiscal performance of the company. They're a digital presence in terms of their stickiness is second to none. However, Apple does have to stay in their game. Because all the phone guys they are in essence copying Apple. So I think Apple's going to be very very fine. I think where they could really double down and win on is what they did getting out of the car business. I think that was super smart. There was a post by Auto Blog this weekend saying Silicon Valley failed. I completely disagree with that statement. Although in the short term it looks like on the scoreboard they're kind of tapping out, although Tesla this year. As well as a bunch of other companies. But it's not about making the car anymore. It's all about the car's role in a better digital ecosystem. So to me I think Apple is poised beautifully to use their financial muscle, to either buy car companies or deal with the digital aspect of it and bring that lifestyle to the car, where the digital services for the personalization of the user will be the sticking point for the transportation. So I think Apple's poised beautifully for that. Do they have some issues? Certainly every company does. But compared to everyone else I just see no one even close to Apple. At the financial level, with the cash, and just what they're doing with the tax. From a digital perspective. Now Google's got a self-driving cars, Facebook's a threat, Amazon, so those are the big ones I see. >> The other thing that's happening this week is the game developer conference in San Francisco at Moscone. So you know again, huge consumers of bandwidth, huge consumers of compute power. Not so much storage. I haven't heard much of the confluence of the 5G movement with the game developer conference. But clearly that's going to have a huge impact 'cause most gaming is probably going to move to a more and more mobile platform, less desktop. >> Well the game developer conference, the one that's going on the GDC, is kind has a different vibe right now. It's losing, it's a little bit lackluster in my mind. It's classic conference. It's very monetized. It seems to be over-monetized. It's all about making money rather than promoting community. The community in gaming is shifting. So you can look at how that show is run, versus say e three and now you've got Twitch Con. And then Mobile World Congress, one of the big voids is there's no e-sports conversation. That certainly would be the big thing to me. To me, everything that's going digital, I think gaming is going to shift in a huge way from what we know as a console cult. It's going to go completely mainstream, in all aspects of the device. As 5G overlays on top of the networks with the software gaming will be the first pop. You're going to see e-sports go nuclear. Twitch Con, those kind of Twitch genre's going to expand. Certainly "The Cube" will have in the future a gaming cube. So there'll be a cube anchor desk for most the gaming culture. Certainly younger hosts are going to come one. But to me I think the gaming thing's going to be much more lifestyle. Less culty. I think the game developer conference's lost its edge. >> And one of the other things that comes, obviously Samsung made a huge push. They were advertising crazy last night on the Oscar's, with the Casey add about you know, people are creating movies. And they've had their VR product out for a while but there's a lot of social activity saying what is going to be the killer app that kind of breaks through VR? We know Oculus has had some issues. What do you read in between the tea leaves there John? >> Well it's interesting the Oscar's was awesome last night, I would love to watch the Hollywood spectacle but one of the things that I liked was that segway where they introduced the Oscar's and they kind of were tongue in cheek 'cause no one in Hollywood really has any clue. And they were pandering, well we need to know what they meant. It was really the alpha geeks who were pioneering what used to be the green screen technology now you go and CGI it's our world. I mean I want to see more of that because that is going to be the future of Hollywood. The tools and the technologies for filmmaking is going to have a Morse law-like impact. It's the same as e-sports, you're going to see all kinds of new creative you're going to see all kinds of new tech. They talked about these new cameras. I'm like do a whole show on that, I would love it. But what it's going to enable is you're going to see CGI come down to the price point where when we look at PowerPoints and Adobe Creative Suite and these tools. You're going to start to see some badass creative come down for CGI and this is when the artist aspect comes in. I think art design will be a killer field. I think that is going to be the future of filmmaking. You're going to see an indie market explode in terms of talent. The new voices are going to emerge, the whole diversity thing is going to go away. Because now you're going to have a complete disruption of Hollywood where Hollywood owns it all that's going to get flattened down. I think you're going to see a massive democratization of filmmaking. That's my take. >> And then of course we just continue to watch the big players right. The big players are in here. It's the start ups but I'm looking here at the Ford SAP announcement that came across the wire. We know Ford's coming in at scale as stuff with IBM as well So those people bring massive scale. And scale is what we know drives pricing and I think when people like to cap on Morse law they're so focused on the physical. I think the power of Morse law has nothing to do with the microprocessor per se. But really it's an attitude. Which we talked a little briefly about what does the world look like if you have infinite networking, infinite compute, and infinite storage. And basically free. And if you start to think that way that changes your perspective on everything. >> Alright Jeff well thanks for the commentary. Great segment really breaking down the impact of Mobile World Congress. Again this show is morphing from a device show phone show, to full on end-to-end network. Intel are leading the way and the entire ecosystem on industry partners, going to write software for this whole new app craze, and of course we'll be covering it here all day today Monday the 27th and all the day the 28th. Stay tuned stay watching. We've got more guests coming right back with more after the short break.

>> Announcer: Live from Silicon Valley. It's theCUBE. Covering Mobile World Congress 2017. Brought to you by Intel. >> Okay welcome back everyone, we are live here in Palo Alto for special two days of wall-to-wall coverage for Mobile World Congress. Here in our new 45 hundred square foot studio in Palo Alto. We have folks on the ground. Analysts, we have reporters in Barcelona, but we're going to be covering all the action here in our studio, where we're going to bring folks from Silicon Valley who did not make the trek to Barcelona here to weigh in with reaction and commentary and opinions and analysis of all the happenings of Mobile World Congress. But first, as the day winds down Monday in Europe, we wanted to make sure we get on the phone and get with folks who are on the ground. And right now on the phone we have Floyd Strimling who's the global vice president of HANA Cloud, I'm sorry, the HANA Cloud Platform which the big news was, they renamed their product from SAP HANA Cloud Platform to SAP Cloud Platform. Floyd Strimling, thanks for taking the time after your dinner. Thanks for coming on. >> Floyd: Yeah, thanks for having me. I'm glad to be there. Happy to help out and give you some insights on what's going on here in beautiful Barcelona. It's actually quite warm here. >> Is it warm? I saw some umbrellas over the weekend but great city, I would love to have been there, but I wanted to anchor the coverage here. One of my favorite cities. But first, tell me what's going on. Obviously over the weekend we were preparing, we were covering all the content for the folks watching, CUBE365.net/MWC17. The news is all there. Every single piece of signal is there. Go to our site. Check it out. Floyd, what's happening? It's been a hand-set show all weekend. Obviously Nokia making a comeback. Blackberry making a comeback. LG, Huawei, Hess Phones, they all want to be Apple, but yet 5G is also dominating as well. So there's a culture clash. What's happening in Barcelona? What's your analysis? >> Floyd: The biggest thing that I was surprised by is exactly what you're talking about. The number of headset announcements and the number of displays that are all based upon new devices and the nostalgia for Blackberry and Nokia continues. People are rooting for them to make a comeback. In the meantime, you've got new devices from Huawei. You've got Samsung doing announcements. You know you're in the show when Sony has a big presence in Europe with their handsets, which I don't see too much in North America and it just seems to be everybody is gunning really for maybe what they foresee as the perceived weakness in Apple just not going for the killer 7 and waiting for the 8 to change the game. And they're all going to try to knock them off the pedestal. There's some very interesting phones that are out there. 5G is definitely everywhere, too. Everyone's talking about it. Everyone's trying to be the first. Trying to show, especially the streaming capabilities. What that'll be able to do and what it'll be able to change. And then, you know what? One of my favorite sections was the drones. We got to see some commercial carbon fiber drones that I never saw up and personal. See what's going on in there. A lot of interesting things going on with those things and more than just delivery, right? Everything that you could possibly do. There's no shortage of IoT and connected this, connected that, but they're adding a flavor of AI now. And I think we still got to get to Step 1 with IoT before we go to Step 2. So, it's been interesting to watch people try to leapfrog each other as they move towards new technologies. [Interviewer] How big is the crowd there? How packed is it? I mean one of the things we were talking about was the identity crisis of the show, Mobile World Congress, you mentioned people going after Apple. But also Samsung. Remember, they're bailing out of the show. They had their own little presser conference last night, they're not active in the show and they have their own problems. I mean the Galaxy 7 blowing up is, everyone's going after Samsung and Apple on the phone side, but you've got Sony, you've got 4K screens, you've got Netflix there, you've got entertainment, it's like a CES wannabe show for those guys, and at the same time it's a serious meat-and-potatoes Telco show with a lot of 5G, IoT, and I haven't heard anything about E-Sports. I saw a little bit with Twitch doing some stuff there, but for the most part, it's a digital show. So is there a huge crowd there and what's the demographics like there for the makeup of the attendees? >> Floyd: You know, I'm seeing big crowds, judging from how long it takes to take a taxi or get the subway. It's a lot of people there. And I'm seeing it's mixed. I'm actually seeing quite a few large enterprises from around the world. They're looking around, just looking at different technology and trying to make sense of what's happening. I do see the big Telcos are here. You know, everything from Telefonica, you of course have Huawei, you have T-Mobile, and Orange and a bunch of those major vendors that are doing it. I'm also seeing HPE and Intel on the same show area that we are on the other side that are generating traffic. I think the mix is pretty good this year and I will tell you, look, I've been to a lot of shows and some shows have trouble drawing people and this medium, some people are saying is not going to survive. I love going to the show and actually feeling the energy. 'Cause there is a ton of people here, there are a ton of large exhibitions with some really interesting stuff. VR, some geek talk, some funny stuff. There's people selling cases, you know, for your phone. I thought that was kind of awesome to see that again. I mean it's all over the place. I think the show is extremely healthy and it's as busy as ever. [Interviewer] One of the things about Mobile World Congress, it's a lot of business development, too. There's some heavy hitters there. It's kind of like Sun Valley meets, you know, the CES show. It really is a mix there. I want to get your take on some of the emerging areas that are really exploding in the mind of the consumer. And these are forward-thinking categorical areas. Autonomous vehicles, Smart Cities, Smart Home and, just in general, this new IoT area. So, what's your take on those areas? I mean, autonomous vehicles, they're huge. But Smart Cities, Smart Home, entertainment, is there a lot of buzz there? You guys have a stadium exhibit. What's the sexy demos? What's the sexy areas? >> Floyd: Yeah, I'll tell you a couple of things on this. You know, on the autonomous vehicles, now it's not just autonomous vehicles, it's going to try to be the first 5K autonomous vehicles. You know, people are looking at just pushing the envelope on it. And I think in Europe where people definitely love to drive, it's big, but I don't know if it's got the same excitement as you do in the traffic-jammed areas of the United States where we're constantly battling this and to put the car into autonomous mode and be able to do something else while stuck on the 405 would be a nice thing to do. I do think that the Smart homes is extremely interesting right now. I mean you have some of the people getting their arms around and I'm starting to see people actually talking about it and you know, a lot of people talking about smart things. This ability through a single gateway to be able to connect to all different types of devices, to be able to hook in with Alexa and Google Home and to be able to actually do more things with it and trying to make it simpler. So that I can do this reliably and easily. That's what everyone wants right now. On the Smart Cities front, I'm seeing a lot of people talk about Smart Cities. I think we're still kind of in that experimentation phase. You know a lot of geo-sensing stories I'm seeing. Some power conservations for lights. The ones that I'm interested in are kind of like traffic management. I'm extremely interested in this. Where we finally can get even smarter traffic lights and systems where you can do things like turn on no left turn or make a lane that's all four lanes. You know, make it one direction if traffic comes up. Very interesting concepts that people are trying out. You know for SAP, the biggest thing that we've got going, it continues to be our Smart Stadium demonstration. Every time that runs it's standing room only. People very interested about. Of course, it's a football, European football, not American football, so we're showing what you can do, and teams experience watching the games and actually how you can change the experience of training. And tremendous amounts of people interested in that. I mean, it's always an amazing crowd of people. Just because it's so intriguing and something we can all relate to. Because we want to have a better experience with this. [Interviewer] You know, Floyd, the Smart Stadiums thing is a really interesting thing. I just shared a link on the CUBE365.net/MWC17, that's our URL for our new CUBE365 all year long site. But one of the articles I shared was from the FC Barcelona Football Club and there was a speech at Mobile World Congress where the president gave a talk to explain the role FC Barcelona in the development of sports through knowledge and innovation to generate value for the club and society. And you think about the stadium aspect of what you were just talking about, is interesting. It's a place where people get together in an analog world, but yet when you weave in a digital services, the role of say an SAP, powering the database and doing all the back office things to power the business, combined with IoT, you now can bring in real people into experiences that are tied to the sports. But also you can go beyond that. You can take that digital interaction and take it to the next level. So there is a data aspect to a society role here. So you're seeing sports teams going beyond marketing their club to having an impact. Can you share any color on that? Do you agree? Do you guys have anything that you're showing? >> Floyd: Well, I agree. I think that much like racing is for the auto industry to bring innovations to the consumer side, or you could even say masses and states that comes into all of our lives. I think that this work is going to push the envelope, even harder than other areas, simply because they know that hundredths of a second is the difference between winning and losing. You know, we've gone with McLaren for years, working with them on tracking their race cars and building dashboards and giving them information. And now to be able to bring that type of technology to the stadium and bend the way that you actually have that interactive experience, it actually makes it that you want to go to the stadiums. Which is, you know, people are, it's a little bit of a hassle. You got the traffic, you got the people, it's like you can sit on your couch and watch it on your 4K television and be happy. I think that people need a way to actually draw the crowds in there. And I think that the interactions, especially with the work that we're doing with Apple and building native applications using our Fiori Technology and our UI Technology, it's starting to really bring together those classical back-end systems with all that rich data and bring it forward so people can actually experience what that data means and use it a different way. So I definitely agree with you. I enjoy working with the sports teams, 'cause they're willing to try anything that gives them a competitive advantage, and it's interesting how to take that technology and then apply it to the consumer and the business world. [Interviewer] Well, you know, we love to be called the ESPN of Tech, so we love sports here. So anytime you have a great sports event you can invite us to, we'd be happy to accept your invitation in advance. Appreciate that. Floyd, of course, great coverage. I'll give you the final word, and next we have a minute or two left. I'll say SAP big announcement with the Apple software development kit, the IOS general availability now. You got native developer support. That's classic bringing cloud native developers into the SAP fold which dominates the enterprise and business base from sports firms to large enterprises. Great marketplace behind that. But you guys are doing a lot more with IoT, AI and machine learning. Share, just take a minute to talk about the key things that SAP is doing for the folks watching. Because losing the name HANA Cloud really emphasizes that SAP is SASifying their entire business, which includes things like microservices, and having kind of IoT as a service and managing workloads dynamically in realtime with a consumer front-end feel to it. Take a minute to describe the key important points of what you guys announced and are impacting. >> Floyd: I would say the biggest thing that we have going really is two-fold. One, it's the elevation of this brand. SAP protects our brand. It's a very, very noticeable and valuable brand. To elevate the platform to a top-tier brand, basically it's signaling to everybody, our customers, our partners, independent software vendors, our competitors, anyone else out there that SAP is serious about building a platform in the cloud that is world-class, enterprise grade and has the capabilities that our customers need to make this digital transformation and we're coming. We're going to innovate at a fast clip and we're not that old SAP that people think about. I think the partnership with Apple further shows that. I mean Apple is very choosy about who they work with. They're at our booth. They're helping us They're showing the demonstrations. They're working on the SDK. And that realization that, hey, to build these world-class native applications, using Swift and this SDK and the capabilities that would bring, are now elevating that game in the mobile space for our customers, which is key. And I think it's a very powerful partnership because we're both such recognizable brands and we both have a really solid enterprise presence and a large ecosystems. On the services, you know, the big thing I would just say, is the IoT services is ready for people to use now in the Beta fashion. It's combining all the access so we can build a device cloud with the Symantec data model that's a little bit different than other people are doing. And combining that with our Leonardo applications which give you a good idea of what's possible on the cloud. And to be able to keep pushing that forward, I think is key. We have the big data services which was the alpha scale announcement, acquisition now being fully integrated into the platform is huge. It basically gives us world-class Spark Services, which we need to be able to compete in this world. You know and I think that the service improvements are there. There's some good service improvements incremental and some things that our enterprises really want from us, like workflow and the ability to put a little infrastructure in there with virtual machines. And our data center build out. You know, friends don't let your friends build data centers, but some companies have to build data centers, so having the ability to have a data center now in Japan and in China, is key to our customers, especially with all this legal wrangling that's going on in clouds. So I think all in all for SAP, it's been a great show. A great place to showcase that we're doing stuff differently and watch out for what we're going to be doing in the future. Because we got a lot more stuff coming, and we're going to be a player in this space. And we're ready. [Interviewer] All right, Floyd Strimling, global vice president with SAP Cloud Platform. Final question, I mean I got to ask you. How's the food? How's the tapas? Are you going to take a nap and then stay out 'til four in the morning then doing it all over again? Barcelona style? >> Floyd: It is Barcelona-style right now. I got to go get some Sangria, some tapas and then we'll hit the places that the tourists don't go to, and have some real good time with the locals. You can't come to Barcelona and go to sleep, that's not allowed. [Interviewer] All right. You're not allowed. Hey, spread the CUBE love for us out there. Really appreciate your taking the time. Thanks, Floyd. We'll talk to you later. Thanks so much. >> Floyd: Thanks. [Interviewer] Okay, Floyd Strimling on the ground in Barcelona here on theCUBE by remote coverage from Palo Alto. We're going to be going wall-to-wall 'til six o'clock tonight, 8 a.m. tomorrow morning, and again, we'll have reaction from folks on the ground in Barcelona. Hopefully we'll get some folks late night and hopefully it might be a little bit lubricated up a little bit, socially lubricated, get to share some good dirt. That's where all the action's happening, up in Barcelona and this is theCUBE. We'll be right back with more coverage, more analyses. We've got Tom Joyce coming in, industry executive to help me break down from his perspectives, the horses on the track. Who's going to win, who's going to lose, and what's going on with NFV? Because NFV certainly now has a bigger opportunity with 5G connecting all these devices together. That's the big story as well as the big devices and the new upgrades. Be back with more after this short break.

>> Transactions, totally on track with the original schedule, we're getting all the regulatory approvals, everything is kind of lined up. Financing 100%, fully committed. You know, we're going to only accelerate that. >> Announcer: Cube coverage of the EMC World 2016 continues in a moment. (techno beat sounds) Live from Silicon Valley, it's theCube, covering Mobile World Congress 2017. Brought to you by Intel. >> Hello and welcome to theCube here live in Palo Alto studios for a special two days of coverage of Mobile World Congress 2017. The hashtag is MWC17. Get on Twitter, tweet us at theCube. We'll be answering questions. I'm John Furrier, with Peter Burris, the next two days breaking down Mobile World Congress. We've got a great bunch of guests coming in. We'll be covering all the action here in Palo Alto. 8:00 a.m. through the whole day. As the day winds down in Barcelona, we'll be covering all the top news, all the analysis here on theCube, so stay with us, multiple days. Go to thecube365.net/mwc17. If you're watching this, that's where the live broadcast will be. Also we'll be on Twitter. Peter, good to see you, two days, getting geared up. Mobile World Congress is changing as a show from phone to IOT, AI, autonomous vehicles. Certainly a lot of action to talk about. Saturday and Sunday. The pre show releases is all phone, it's all the time. They're kind of getting the phone stuff out of the way earlier and now they're in the throws of the show and it should be exciting. >> Well yeah, because the usecases that the industry is following right now are, require or presume that significant amounts of processing can happen virtually anywhere. The Internet of things and people, which kind of brings together the idea of what can you do on your phone if you're a human being, and what can you do with a device or a machine somewhere with a bunch of censors demands that we have very high speed, secure low latency networks. And that's what 5G is promising. >> Well we're super excited. For the folks watching, we are now going to be having our new studio here in Palo Alto. We just moved in in January, 4500 square feet. Now we can cover events, we don't have to be there with theCube. We will not be there, there's not enough room in Barcelona, a it's a long flight, but we do have people on the ground, and we'll be covering it here in the studio, and we'll be calling folks on the ground this morning and tomorrow morning to get the lay of the land. They'll be coming back from their dinners, from their parties, and find out what the vibe. But certainly we have all the action at theCube365.net/mwc17, so check it out there. And again, the top news, again this is all sponsored by Intel, want to give a shot out to Intel. This would not be possible without Intel's sponsorship. They're certainly on the ground, as well as support from SAP Cloud with their news that they're being renamed HANA Cloud. So I want to give a shout out and thank Intel and thank SAP, check them out. They've got huge transformational demos. Intel really leading the charge out there, so I want to make sure that we give a thanks to Intel. Peter, the big story, I want to get your thoughts on this. Just jump right in. Saturday and Sunday, you saw a combination of the tone setting up leading into the weekend, and through the weekend. One was 5G, the 5G is the key enabler for wireless, bringing in gigabits of speed to the phone. Are the apps ready? That's the questions we're going to find out, and we're going to dig into. Is 5G ready for prime time? And certainly all the glam and sizzle was the new phones. LG had a good announcement. Samsung had a big announcement, although they're not going to be at the show, but surprisingly Nokia and Blackberry, two old guard phone guys, kind of rebooting. Blackberry trying to put out their keynote product, and also with Nokia, they rolled out the three, the six, three, five, and six products for new phones to try to get into the Apple game. And now the 3310, which is the old school phone. So you saw the phones. And then the other player that announced a phone and watch was Huawei, and they're also in the infrastructure game. So 5G wireless connectivity and phones, and then in the middle we have yet to hear some of the things, so as you look at the market and your research that you're covering, digital business, the business value of technology, what's your take on this? >> Well, John, the industry for the past probably 15, 20 years has been driven by what you do in the consumer markets. That's where you get the volumes that drive down or generate economies, that drive down costs, that make new volumes possible. And so 5G is going to be, the Mobile World Congress is a representation of that symbiotic relationship between the consumer and the enterprise world. So that on the one hand you have the consumer markets with the phones driving a lot of the volumes that are going to dictate the rate at which a lot of this stuff happens. On the other hand, you have enterprises which are aggressively considering those new use cases about IOT and as we say IOT and P. And other considerations that are in many respects really worth where some of those first adoptions are going to be, so it's an interesting dance between consumer and enterprise now where one fuels the growth in the other. Even if the actual applications are not linked. By that I mean we do say IOT and P, internet of things and people, which presumes that there's going be a lot of sensors on your phone. There's going to be a lot of sensors on your body that are tied to your phone, et cetera. But that's not necessarily the thing that's going to dictate the new application architectures that happen within the enterprise around some of these other things. That's going to be driven by what we call the edge. >> I love this IOT and P, p for people, but things are people, so Internet of things is the big trend. And for the mainstream people IOT is kind of a nuance, it's kind of industry discussion. But AI seems to encapsulate that people see the autonomous vehicles. They see things like smart cities. That kind of gives folks a touch point, or mental model for some of the real meat on the bone, the real change that's happening. Talk about the IOT piece in particular because when you talk about the people aspect of it, the edge of the network used to be an IT or technology concept, a device at the edge of the network. You talk to it, data gets sent to it, but now you've got watches, you have more of an Apple-esque like environment, mention the consumer. But there's still a lot of stuff in between, under the hood around IOT that's going to come out. It's called network transformation and industry parlance. Where's the action there, what's your take on that? You guys do a lot of research on this. >> Well the action is that data has real costs. And data is a real thing. Just very quickly, on the distinction between IOT and IOT and P, the only reason why we draw that distinction, and this is important, I think about what happens in that middle, is that building thing for people and building things for machines is two very, very different set of objectives. So the whole notion of operational technology and SCADA which is driven what's been happening a lot in IOT over the last 20 years. There's a legacy there that we have to accommodate. Has been very focused on building for machines. The building for people I think is going to be different, and that's what the middle is going to have to accommodate. That middle is going to have to accommodate both the industrial implications, or the industrial use cases, as well as the more consumer or employee or human use cases. And that's a nontrivial challenge because both of those can be very, very different. One you're focusing a little bit more on brutal efficiency. The other one more on experience and usability. I don't know the last time that anybody really worried about the experience that a machine had, you know the machine experience of an application. But we have to worry about that all the time with people. So when we think about the edge, John, there's a number of things that we've got to worry about. We have to worry about physical realities, it takes time to move something from point A to point B, even information. The speed of light is a reality. And that pushes things out more to the edge. You have to worry about bandwidth. One of the things that's interesting about IOT, or about 5G as it relates to IOT, while we may get higher bandwidth speeds sometimes, for the most part 5G is going to provide a greater density of devices and things, that's probably where the bandwidth is going to go. And so the idea is we can put a lot more sensors onto a machine or into a phone or into some use case and drive a lot more sources of data, that then have to get processed somewhere, and increasingly that's going to be processed at the edge. >> So Peter, I want to get your thoughts, and one of the things for the folks watching, is I spent a lot of time this week with you talking about the show and looking at the outcome of what we wanted to do and understand the analysis of what is happening at Mobile World Congress. Yes, it's a device show, it's always been about the phones, 4G, and there's been this you know inch by inch move the ball, first and ten, move the chains, and use the football analogy, but now it seems to be a whole new shift. You go back 10 years, iPhone was announced in 2007, we seem to be at a moment with we need to step up function to move the industry. So I want to get your thoughts for the folks that you're talking to, IT folks, or even CXOs or architects on the service provider side. There's a collision between IT, traditional business, and service providers who have been under the gun, the telecoms who have been trying to figure out a business model for competing against over the top and moving from the phone business model to a digital business model. So your business value of technology work that Wikibon has been doing, is very relevant. I want to get your thoughts on what does it take, is the market ready for this business value of technology because 5G gives that step up function. Are the apps ready for prime time? Are the people who are putting solutions in place for the consumers, whether it's for business or consumers themselves, service providers, telecoms or businesses with IT in the enterprise, is the market ready? Is this a paradigm shift? What's your thoughts and how do you tease that out for the folks that are trying to implement this stuff? >> Well is it a paradigm shift? Well yeah, as the word should be properly used, but the paradigm shift is, there is a lot of things that go into that. So what we like to say, John, when we talk to our users about what's happening, we like to say that the demarkation point, we're in the middle of right now. Now is a period of maximum turbulence, and before this it was I had known processes, accounting, HR, even supply chains, somewhat falls into that category, but the technology was unknown. So do I use a mainframe, do I use a mini computer? What kind of network do I use? What software base do I use? What stack do I use? All of these are questions, and it took 50 years for us to work out, and we've got a pretty good idea what that technology set's going to look like right now. There's always things at the margin, so we know it's going to be Cloud. We know it's going to be very fast networks like 5G. We know there's going to be a range of different devices that we're using, but the real question is before was known process, unknown technology, now it's unknown technology, or unknown process and known technology, because we do know what that base is going to look like. What those stacks are broadly going to look like. But the question is how are we going to apply this? What does it mean to follow a consumer? What does it mean from a privacy standpoint to collect individual's information? What does it mean to process something in a location and not be able to move data or the consequences of that processing somewhere else? These are huge questions that the industry is going to have to address. So when we think about the adoption of some of this stuff, it's going to be a real combination of what can the technology do, but also what can we do from a physical, legal, economic, and other standpoint. And this is not something that the computing industry has spent a lot of time worrying about. Computing has always focused not on what should do, but what can we do. And the question of what should we do with this stuff is going to become increasingly important. >> And the turbulence point is even compounded by the fact that even the devices themselves and the networks are becoming more powerful. If you look at what Cloud is doing with compute. If you look at some of the devices, even just the chip wars between Intel and say Qualcomm for instance. Intel had a big announcement about their new radio chip. Qualcomm has the Snapdragon, we know Qualcomm is in the Apple iPhone. Now Intel has an opportunity to get that kind of business. You got Huawei trying. >> I think they're both in the Apple iPhone right now, but I think your point is. >> Huawei is trying to be on Apple. In their announcements, they're going very Apple like, and they have network gear, so we know them from the infrastructure standpoint, but everyone wants to be, Apple seems to be the theme. But again the devices also have power, so you have process change, new value chains are developing and the device will be more popular. So again this is a big turbulent time, and I want to get your thoughts on the four areas that are popping out of Mobile World Congress. One, autonomous vehicles, two, entertainment and media. Smart cities and smart homes seem to be the four areas that have this notion of combining the technologies and the power that are going to generate these new expectations by consumers and users, and create new value opportunities for businesses and telcom's around the world, your thoughts? >> Those are four great use cases, John. But they all come back to a single notion, and the single notion, this is something that you know. We've been focused on it at Wikibon for quite some time. What is digital business? Digital business is the application of data to differentially sustain and create customers. So what you just described, those four use cases, are all how are we going to digitize, whether it be the city, the home, the car, or increasingly entertainment, and what will that mean from a business model, from a consumer standpoint, from a loyalty standpoint, et cetera? As well as a privacy and legal obligation standpoint. So, but all of them have different characteristics, right. So the car is going to have an enormous impact because it is a self contained unit that either does or does not work. It's pretty binary. Either you do have an autonomous car that works, or you don't, you don't want to see your 'yes it works' in a ditch somewhere. Entertainment is a little bit more subtle because entertainment is already so much digital content out there, and there's only going to be more, but what does that mean? Virtual reality, augmented reality, when we start talking about... >> Just by the way, a big theme of the Samsung announcement is all this teasing out the VR, virtual reality and augmented reality. >> Absolutely, and that's going to, look, because it's not just about getting data in, you also have to enact the results of the AI and the analysis. We call it systems of enactment. You have to then have technologies that allow you to, like a transducer, move from the digital world back into the analog world where human beings actually spend our time. We don't have digital transducers. >> Well that's a great point. The virtual reality use case that Samsung pointed out, and the hanging fruit is in hospitals. >> Peter: Yeah. >> Doctors can look at VR and say, hey I want to have, we've heard that football players like Tom Brady, used VR to look at defenses and offenses to get a scheming kind of thing. >> And there's no question we're going to see VR and AR, augmented reality, in entertainment as well, and media as well, but a lot of the more interesting use cases, at least from my perspective, are going to be how does that apply in the world of business. When we think about connected cities, now we're starting to talk about the relationship between all three. What does it mean, where is the edge in autonomous car? Is it in the car, or is in some metropolitan area? Or some cell like technology. And the connected city in part is going to be about how does a city provide a set of services to a citizenry, so that the citizen can do more autonomous things while still under control. >> It changes the relationship between the person, consumer, and the analog metaphor. So for instance, whether it's a car or the city, a town or city has to provide services to residents. And in an analog world, that's garbage, that's street cleaning, et cetera, having good roads. Now it's going to be, paths for autonomous vehicles, and autonomous vehicles is interesting, I just shared a post on the 365, theCube365.net/MWC17, where Autoblog ran a post that said, Silicon Valley is failing in the car business. But they looked at it too narrowly. They looked at it from the car manufacturing standpoint, not from the digital services that is impacting transportation, and this is the new normal. >> Look, you and I talked about this in theCube a year ago, was the car going to be a, was the car going to be a peripheral or is a car going to be a computer? And it's become pretty clear that the car is going to be a computer. And anybody who argues that Silicon Valley has lost that, has absolutely no idea what they're talking about. Let's be honest. >> John: Yeah, it's true. >> You're going to put more processing in a car, love Detroit, love what's going on in Japan, love elsewhere in the world, but the computers and the chips are going to come from a Silicon Valley company. >> Yeah, and I would agree with that. >> And software. >> Yeah, transportation doesn't change, but the device does. So final thought I want to get before we end the segment is as we say in theCube, and as Dave Vellante used to say, just squint through the noise or all the action at Mobile World Congress, how do you advise folks and how you looking through all this action, how would you advise doers out there, people who are trying to make sense of this, what should they be squinting through? What should they be looking for for reading the tea leaves of Mobile World Congress? >> I'd say the first and most important thing is there's so much turbulence that IT professionals have built their careers on trying to have the sober, be the ones who have the sober outlook on what technology can do. When we look at the amazing things that you can do with technology, it almost looks like magic. But it's not, these are still computers that fail if you give them the wrong instructions, and that's because you build the wrong software and et cetera. And I think the real important thing that we're telling our clients is focus on the sober reality of what it means to create value out of all this technology. You have to say what's the business want to do, what's the business use case? How am I going to architect it, how am I going to build it, what's the physical realities? What's the legal realities, et cetera? So it's try to get a little bit more sober and pragmatic about this stuff even as we get wowed by what all this technology can do and ultimately will mean. >> And the sober reality comes down to putting the value equation together, synthesizing what's ready, what's prime time, and again, it's an Apple world right now. I think this show is interestingly turning into an app show for business IT enterprise and telcom service providers, so we're going to bring all the action. We've got some great guests, we've got entrepreneurs with Ruth Cohen, who is a founder of Virtustream. We got SAP coming on, we got a call in to Lynn Comp who is at Intel, she's going to be on the phone with us giving us some commentary and what's going on at Mobile World Congress. From under the hood, in the network, all the action, we have more analysis with Peter. We have the global vice-president of the Cloud platform and SAP coming in, Tom Joyce, a technology executive. Willie Lou is the chairman of the 6G, talking about the impact of the wireless and that transformation. Ensargo Li, who is former HPE executive who built out their NFE function for the communications group, commentating on what's real and what's not. Stay tuned, more Cube coverage for two days from Mobile World Congress. Here in Palo Alto, bringing you all the action and analysis. Be right back with more after this short break. (techno beat sounds)

(smooth electronic music) >> Hello, everyone, welcome to theCUBE here in Palo Alto covering Mobile World Congress 2017, #MWC17. I'm John Furrier. We are here with Dan Lahl who's the Vice President of Product Marketing at SAP. SAP HANA Cloud now named SAP Cloud. Dan, thanks for coming in and talking about Mobile World Congress. >> You bet and I'm happy to talk about SAP Cloud Platform. That's what we're talking about. >> So the big news is a lot of stuff going on with Mobile World Congress but let's get down from SAP's perspective. You guys have changed the name from SAP HANA Cloud Platform to SAP Cloud Platfrom >> [Dan] Yeah that's right. >> So why that nuance there? What's the specific point there? >> It's way more than just dropping a word from the name of the product. It's really about repositioning where SAP is. So SAP has been an application company for forever. But as companies move to now from mode one, which is kind of application running, to mode two, which is doing more about agility, optimizing their enterprise, digital transformation, we have to have an offer in that second place. That's where the SAP Cloud Platform fits. Things like IoT services, and integration services, and over 40 services we offer on the platform. We're now helping companies become more agile by being very easy and able to personalize any SAP asset, any SAP app. So you have S/4HANA, you want to personalize it, customize it? You use Cloud Platform to do that. You want to integrate success factors in with your on premise apps SAP or otherwise? You use Cloud Platform to do that. >> A lot of change over the past year. At Sapphire last year, we talked about this at theCUBE. In Orlando I interviewed you specifically about the cloud momentum. One of the things that was striking me, and we talked specifically about SAP had this installed based customer set, which you guys have some of the biggest names in business from powering by SAP. Then new sets of developers onboarding and significant was the Apple announcement where you guys were partnering with Apple Computer and Apple doesn't usually go up on stage with many partners. >> That's right. >> It's very rare. They were onstage with you guys. This was really a seminal moment because this kind of brings two worlds together. It brings the existing SAP software world and the Apple world. So a lot's changed there. I know the news that's hitting around Apple's GA, general availability, of the iOS kit. But also it's the growth of the cloud within SAP and the SaaSification that you guys are going through that journey. Give us an update on those two fronts. The iOS news, that general availability, what does that mean? Two, how is the SaaSification of SAP inside the entire, across the business? >> You bet, you bet. So really exciting with the Apple SDK. When we met last year, I sat on the edge of the bed and told you how great it's going to be, okay? We really hadn't defined exactly what was going to be in the SDK. We already had the all the parts, and pieces to be able to take an iPhone device, and pull it back in to access SAP applications. But we really didn't have much native work that we had thought through with Apple on the deliver side on the mobile device. So we've added a number of controls that Apple is actually adding in to their system into the iOS 10. We're actually creating applications, taking advantage of these new controls. As enterprise applications work in a little bit more complex way than let's say playing Candy Crush on your iPhone, right? We've come up with new controls to make it more easy for someone like a project manager to do project management over their day. Or a service technician to do how they look at their appointments, how they're going to look at parts and pieces they need to put into different service appointments. It's been a really great collaboration. Then the other thing we're doing is we're adding SAP Academy or iOS Academy. The iOS Academy will be aimed at training a million SAP developers and 10 million Apple developers on how to use this SDK, how to think about delivering enterprise apps using this native iOS environment. >> What's the impact to the customer? Because Apple essentially, it's their phone, so you're talking about a mobile native app. >> [Dan] Yes, exactly. >> Taking a software cloud model to the phone. Is that kind of the key point? >> Yeah. SAP has been awesome at business processes and really funky at how it's displayed on screens. I mean I know when I started work at SAP, every screen I had to look for where the next key was. Apple is just the opposite. They're awesome at the UI but not known for the greatest business processes. So we're marrying those two things together. >> Bill McDermott has always been high on the Apple. I remember four Sapphires ago he was holding up the iPad saying-- >> That's right. >> "This is going to power our analytics business." >> Which it is. >> He was right on that. >> He's driven us to make that happen. Apple's come along which has been really great. Again, now we're delivering. >> How was the SaaSification going on because workloads as a service is a theme that comes up a lot. You see hybrid cloud certainly driving a lot of that momentum. Hybrid cloud is not as sexy as AI and autonomous vehicles. But certainly it's a lot of brute force action going on. People are really moving to the hybrid cloud. >> That's right. Hybrid cloud is going to be with us for at least 10 years. Everybody thought okay, the cloud is going to be awesome. As an LOB, I'm just going to pick my app whether that's CRM, or HCM, or whatever. I'm going to have this awesome app that I'm just going to be able to run in my business. Then they figure out oh, as a line of business, this is hard to manage. I'm going to give it back to IT. IT says, "Wow, the HCM guys are not "tied in with workforce management." There's nothing between how we're managing our people and how we're managing our workforce. Or how we're doing our pipeline with how we're managing our supply chain. The SaaSification, what we're providing with Cloud Platform is the ability to tie those things together. So native integration services to be able to tie things like success factors or, believe it or not, Salesforce into SAP delivery systems, supply chain systems, bringing ecosystems together using SAP Cloud Platform. So the personalization of the SaaS apps, integration of the SaaS apps into the enterprise, and then actually working with customers to create ecosystem hubs believe it or not. So we've got customers that have actually said, "Hey, I'm a manufacturer but I've got a lot of information "about what's going on in the manufacturing process "and how my customers are using my products. "I'm going to build a hub on the Cloud Platform "and get all my customers and partners "working together on that hub. "Now I'm actually selling information "that'll allow me to sell more of my product." So we see that happening too. >> We're with Dan Lahl, the Vice President of Product Marketing with SAP, breaking down the Mobile World Congress 17 coverage. I'm John Furrier here in theCUBE. Dan, I want you to take a minute to just lay out all the news and the key announcements that's happening this week for SAP at Mobile World Congress. In context of the backdrop of the key things that are happening in terms of the trends at the show. >> Yeah so I'll talk mostly about the Cloud Platform content. So there's some other things happening with SAP. But from a Cloud Platform perspective, it really is the shift to Cloud Platform as a strategic platform for the company in the cloud. So that's really big. Along with that, the iOS SDK, we've already talked about. We're going into beta on our IoT services. So we've now got over 40 protocols that we're supporting. We've got device management, device provisioning, dashboards for monitoring and managing those. The IoT services, which will be the foundation for our portfolio of apps that we deliver, is all going to be on Cloud Platform. We're delivering that service. They're going to announce some things in the Leonardo portfolio, which is our IoT applications. Those work together hand in glove. Some other things, some other bits and bites. We're opening data centers in Japan and China. We're hitting the Asia Pacific market pretty hard allowing customers to take their-- >> Those are SAP data centers? >> SAP data centers. >> Cloud, for SAP Cloud. >> To run SAP cloud in Japan and China with backup and recover, disaster recovery, HA, in between those data centers. Then also we're providing the capability for customers to bring their own applications onto our cloud if they want to run them closed to their cloud applications or SAP Cloud applications. So a VM style of service that we bring. But we're not going to compete against AWS in that. But if you want to bring that next to an SAP app, boom, you can do that very easily. >> I want to ask you about some of the hot trends that we're tracking on (mumbles) on thCUBE and certainly looking at the data. It's pretty obviously that IoT is the hottest, I would call tangible, trend. AI is the hottest hyped trend. >> Coming trend, yeah. >> Well I mean I think AI is legit and I'm a big fan of AI. But I think it gives people a more of a mental model than IoT. IoT's like oh, industrial, internet of things. It's kind of esoteric to the mainstream. AI is robots, flying drones, flying saucers, flying cars. So it gives people a kind of a feel for kind of what machine learning and IoT can point to. So I want you to talk about what you guys got going on there. The other thing that comes up from a customer standpoint, I want to get your thoughts and commentary on, is the number one thing that comes up besides topic on IoT is integration. Integration points is critical. So open cloud is something that you guys have promoted. IoT kind of brings that to the table. How do I bridge IoT into the cloud? How do I integrate either my on parameter clouds? These are the kind of the threads that are being discussed right now. >> You forgot big data. You forgot that one too. So hey, I worked for an AI company in the 90s after AI was dead, okay? AI was hot in the 80s. I worked for an AI company in the 90s. It was dead until today. >> It's back again. >> I'm just shocked that it's back. So the AI piece-- >> By the way, machine learning hasn't really changed much since 10, 20 years ago either. >> Exactly either as well. But we're building all of our AI and machine learning capabilities using SAP Cloud as the base. We're bringing in some open source technology from Google and others. But we're going to be building services on top of Cloud Platform that will allow you to build machine learning AI apps as well as delivering bespoke applications like matching invoices and some other things that makes sense for SAP. >> Well the IoT thing you bring up, in joking about AI, I think the reality is that AI's been around for a long time as you mentioned, as well as machine learning. But I think that the trend that comes up that makes it so peaked for real time right now is cloud horsepower is awesome, almost infinite compute power available, and the tsunami of data. So you combine the fact that, all those new data sources, with horsepower, and now with 5G dropping on main stage with Intel's announcement, you're seeing a confluence of a new fabric being kind of weaved together. That's interesting because now you have the compute, that's not a bottleneck anymore. So overhead whether it's security encryption, and/or security techniques, machine learning, goes away. AI can now do other things. So this is an interesting-- >> It's an interesting area. You kind of named it. You have to have the ability to ingest all this stuff through an IoT type of streaming capability. You got to be able to analyze it in real time, that's our in-memory capability. We talked about the AI, analyze it in real time. The one thing we haven't talked about is you have to have a big data repository to be able to troll through months and years of data. We've actually added the Altiscale company to our portfolio. So now Altiscale is part of SAP. We're renaming that Big Data Services. But it'll be basically Altiscale. So now you've got Hadoop in the cloud. So you've got an IoT, you've got your in-memory capability through HANA in the cloud. You've got your Hadoop in the cloud. All of that is one piece of cloth to us. You can apply IoT against that. You can apply AI against that. You can apply machine learning against that. And guess what? Blockchain against that as well. That's a little bit early for us. But that is-- >> It's on the horizon for sure. >> [Dan] Exactly. >> This is basically talking about where you process the data and now see the IoT edge is something that we keep our own research team. Our team's been actively pursuing. So I want to ask you to explain a little bit about this IoT service you guys announced. What is that about? I mean how would you describe that capability in SAP Cloud? >> Well it's funny. IoT is all about streaming data if you think about. I've been in streaming data since 2008 'cause we were heavy into financial services and understanding the transaction. So we were running algorithmic trading back in 2008 and we bought a couple of companies that did that. You would say, "Streaming data," to people and they would go like this, right? But now with the iPhone, and people understanding that their iPhone is a sensor device, and people now finally get that well data streaming is a big deal. >> Autonomous vehicle's a highlight set big time. >> Exactly. You kind of hit the nail on the head when you said you have to have not only an analysis inside the data center, in the cloud, but you have to push as much as can of that out to the edge. So part of what we're delivering as IoT services is a whole edge set of components that will actually do some of the analytics out at the edge in the hubs. Like what Intel provides, or Huawei, or Dell, or other companies with these gateway hubs. As well as capturing streaming data, doing store and forward of that data. So it's pushing IoT out to the edge for real time decision making, bringing it back into the data center for maybe a little bit more real time deeper analysis, and then connecting it to a big data source so you can actually troll through that over time, and say over the last six months, "Here's the supplier that's doing great. "Here's the supplier that's giving me not so great parts." All of those pieces for customers at the end of the day is really important. Making them more agile in the IoT environment. Making them more connected in the IoT environment and big data environment. Connecting the enterprise to that. So it's all helping customers from our view. >> Congratulations on the news. Well first the name change I think symbolizes a cloud centric philosophy company wide, which is great. SaaSification of SAP, which is huge for your customer base. But also the Apple news I've always been bullish on because that brings an opportunity for developers to work with you and vice versa. The monetization for developers to play in your ecosystem certainly is a great opportunity. Those are the two big news. >> Just think about that Apple piece. They can now take a process, they can build a set of controls, build a new app, and then monetize that in the App center. That will be very cool. Monetizing enterprise applications or extensions to enterprise applications. Pretty cool. >> Well that's one of the reasons why the enterprise is super hot right now. 'Cause the consumer market is (mumbles) you've seen those unicorns you see Airbnb, you see Uber, all the examples we talk about. Netflix, Amazon, enabling all that good stuff, and others. But now the enterprise is sexy one, because there's some real transformation going on from the network to the Apple Air. But there's business to be done, there's actual opportunities for people to have their work of art, the developers if you will, be monetized. >> If you put IoT, and big data, and AI behind all of that, and then make it look beautiful on the device, that's beautiful. >> IoT is a real trend. I mean that-- >> It's real. >> It's definitely happening right now and I think that's where the meat on the bone is in my mind. Okay Dan, final question for you. For the folks watching and our paying attention to Mobile World Congress in general and in the world, what is the key thing that you think they should walk away with about SAP Cloud now? With the new name, with the Apple news, all this good stuff happing at Mobile World Congress. What is the key walk away message that you'd like to send to folks to know the current state of SAP Cloud? What's the key message? >> So I would say the key message is we've talked about it but now we're delivering. SAP is all in on the cloud. We're not only delivering the SAP Cloud Platform but also S/4HANA, cloud as well. Tons of apps being built using SAP Cloud Platform. SAP is all in on the cloud, all in in mode two computing to help our customers. That's the big news. >> Dan Lahl, Vice President of Product Marketing at SAP Cloud. I'm John Furrier. You're watching a special two day coverage of Mobile World Congress 2017 here in the studios of Palo Alto covering it from Silicon Valley. We've got folks on the ground bringing you more action after this short break. (smooth electronic music) (light electronic music)

(upbeat techno music) >> Okay, welcome back to SiliconANGLE's Cube special two-day coverage of Mobile World Congress 2017. The hashtag is #MWC17. My next guess is Emily Mui who is with SAP Cloud, formerly SAP HANA Cloud. Great to see you. Thanks for coming in. >> Good seeing you again, John. It's been a ... Over a year. >> Since Sapphire, since the big news of ... >> That's right. >> The cloud team kind of really showing its stuff. >> Yes. >> That was called the the HANA Cloud. >> Yes. >> Now it's called SAP Cloud. The name changed. Give us a little bit more deeper ... Meaning behind the name, why the name changed, 'cause, you know, everyone knows what HANA is. >> Yes. >> HANA's got a great brand name. >> Right. >> Why drop HANA? What's the deal? >> Well, very good question. I like to talk about ... I've been with this product for over two years now, and I've really seen the evolution of the product. We have so many more capabilities than we did about three years ago, and a lot of it is customer-driven and demand-driven and market-driven. So what we realized is that yes, we have a lot of customers that wanted to do real-time decision, but then we also had a lot of customers that wanted to talk about IOT, use IOT. They want to talk about machine learning, they want to talk about analytics, so it's not just about HANA. So the name change really helps reflect the product and the evolution of this platform as a service that is now known as SAP Cloud Platform. >> So mainly what I hear you saying is that it's gone broader than that. So it's not ... HANA was like a Ferrari, something really good and was great at what it did ... >> [Emily] Yes. >> And that's all great, but the Cloud is more, right? >> Exactly. >> [ John] And what specifically more would you mean? Non-HANA solutions, or ... Greenfield opportunities? >> We have so many customers that do different things, and they're the ones that are helping us understand what is needed to be in the product. So there are many, and what we've learned is that there's a lot of business value that they're seeing from it, and they're the ones telling us that they're trying to be more agile, they're trying to optimize their business processes, and what's interesting is they want to become digital, and I'm not talking about the Ubers of the world, or the Airbnb. I'm talking about those traditional brick-and-mortar companies, manufacturers that are trying to figure out, how do I stay competitive? How do I get one step ahead of the game, and how do I use technology to do that? >> One of the things I love about Mobile World Congress is that it's like CES but in a different way. CES is hardcore early adopters. Yeah, Mobile World Congress is a lot of people who love the device news, yeah, so-and-so's got a new phone, 5G's going to be amazing, it's going to power autonomous vehicles. So, there's some glam and sex appeal inside with some of the tech, but it's almost like a meat and potatoes kind of show in the sense that it's mostly, it's a very business deal-oriented show. A lot of telecos trying to figure out their future, a lot of enterprises trying to figure out how things like network function virtualization works with mobile apps, so you're seeing kind of what I call the early adopter market be more of a CES, and Mobile World Congress be more of a ... Okay, how do you make it real? So this seems to be the topic that we're seeing across the hundreds of events that we go to at theCUBE a year, which is you have the Ubers and Airbnbs, the pioneers, the Facebooks. Then you have the settlers who come in and say, okay, I get it now. I understand what digital transformation means. Now I want to operationalize it. And Amazon Web Services has been so much success with their cloud, in the enterprise, of all places, now. So that's a tell sign that ... Real businesses ... >> [Emily] Yes. >> Not the unicorns, want to use the technology. >> [Emily] Right. >> Do you see the same thing, and can you give some anecdotal or specific examples of how a normal business gets SASSified, and what path does it take? >> So, a really good point and really good question. So one of the customers that is actually going to be at Mobile World Congress is Mapal, and they are a mid-size German precision tool manufacturer. And you think, how are they going to use the cloud and cloud technology to help them improve their business, and it's quite interesting, because they're trying to become digital. They are, you know, and this is ... Their way of doing business is not different from how anyone else is doing. They're trying to connect their suppliers, their customers together, and then be able to track what's happening with the tools that they're manufacturing. The whole life cycle of that tool, from the minute they actually start manufacturing to the point of selling it. But they're using technology to do that, right? And so they're using that SAP Cloud platformm creating the application, and then being able to track what's happening and then providing visibility to their customers, to everyone on the plant floor, to their suppliers, so they're connecting everyone together. >> You know, Emily, I was just talking with Jeff Frick, who runs theCUBE. We had our Silicon Valley Friday show last week, and we were talking about some of the conversations that we hear in cloud from some of the normal businesses out there, and things like microservices ... It's a geeky term, but microservices, containers, a lot of application conversations happening, so you hear that, and also you hear about integration. So these are the two hottest areas that we see, because basically, the SAP has been in the process business. We value chains and manufacturing, customer support, and CRM, ZRP, all that good stuff that goes on, but now, those are being completely shattered and reconfigured with cloud. So integration is top of mind, whether it's an IOT, internet of things or a new application. How does this all get threaded together? Can you share some insight into the SAP Cloud strategy, and what things do you offer to those customers, because that seems to be the critical decision point for most CXOs on the cloud SASSification. >> That's another good point, because we see a lot of customers trying to connect. They're trying to figure out how to get to the cloud, and no one is immediately jumping to it, so they've got different applications that they're trying to build out, but in order to do that, they have to connect their backend, right? And not all of it is cloud application. Most of it is on-premises, and so you've got legacy systems, you've got some SAP applications, you've got some other ... I shouldn't mention venture applications, and then they're trying to figure out how do you extend and create new applications? So how do you bring it all together? So integration is one of the key services that we provide. APIs, integration ... We've also invested in microservices technology. SAP's heavily looking into that and seeing how we can help those companies out there who want to leverage that type of technology. How do they bring all that together? Build small applications, connect everything together, and then build out an application that will help support their business. New opportunities for their customers to make their customer experience better, for their employees, and trying to track talent. So there are a lot of different use cases where ... >> What are the top three use cases that you're seeing there right now from your customer base, as they look at the HANA Cloud ... Well, it's not HANA Cloud. The SAP Cloud. >> Yes. >> New name. When they look at it, what do they gravitate to? What does the ... I mean, it's not all the same, but I mean, some low-hanging fruit. >> Right. >> Most people say, oh, test/dev, but probably in SAP. What is that low-hanging fruit for you guys, and where do you see more of these ... >> Integration. I mean, a lot of times, they start with integration, because they need to bring that together, but integration's kind of a means to an end. So, an example I can think of is we have a customer named Owens-Illinois. They're a glass manufacturer, another real business, right? It doesn't always sound so sexy, but the reality ... >> They're billion ... These are billion-dollar businesses out there ... >> Yes, exactly. >> That aren't called Uber, and no one's ever heard of them, but they're businesses, doing their thing. >> Exactly. And they need to be able to integrate their backend. They had this one specific requirement where they had to quickly meet the requirements of the Peruvian government, because they needed to create e-invoicing, and if they weren't able to bring together their backend systems, build out this application to do e-invoicing, their plant in Peru was going to get shut down. So, really good example ... >> [John] A critical path item. >> Exactly. Integration, and then being able to extend that. So those are really key examples of what our customers are doing, and then of course innovation, just coming up with something completely brand new. You know, there's so many examples of of those types of ... >> You know, you mention some of these traditional businesses, whether they're a glass company or a tooling company or whatever. This is really highlighting the big trend, internet of things, or IOT. AI kind of gets bolted into that 'cause it's got machine learning and using data and things. Is the digitization of business ... It's not just like IT and getting your email and things of that nature. Seeing the industrial, analog side of the business being digitized, so, with sensors ... You can't look any further than some of the more obvious consumer examples, the Tesla car, self-driving cars, drones, all have data. And so that's kind of a mental model for most folks, but it could be plant and machinery, it could be airplanes, flown off data ... This is the industrialization of this new era. >> Right. >> [John] Of data. >> Yep. >> That's connected to the internet. Therefore, it is an internet-connected device that needs to be managed. So this is a new use case that points to some of these businesses that are now digitizing. Is that a big part of the new IOT service, and how do you guys talk to that market, because some of it's not an IT market, they're like a normal business market, that might have SAP accounting software, or manufacturing software... >> Well, I mean, I think, like most companies and most people out there, everyone's a consumer, right? We talk about companies, but within those companies, we're talking about employees, people, and everyone has a phone, a smartphone of some sort, if not an iPhone, an Android device. There's so much data that's being generated. I could give an example of my teenage ... Just turned teenage boy, and I don't want him to carry cash around. He wants to go to Starbucks, so I make sure that he has an account set up. So it's easy. All that ... Just think about the way he's transacting. He walks into Starbucks, and he can pay. I can see how much he's paying, what he's buying, right? So there's so much data, and businesses are transacting in such a way that they've never had to do before. >> [John] Do you track his location? >> That too. I know when he's going in the wrong direction. He's on the wrong bus, right? So, there's so much data, and businesses have to figure out what's the best way to monetize that, to create opportunities from it, right? And to provide that experience for their customers and then come up with new solutions and new products and new services. >> That's a great parent story. I feel the same. My wife and I have the surveillance tracker, and that's part and parcel to us paying for the phone, so. >> [Emily] Right. >> Quid pro quo. If they want to pay for their own phone, they can be anonymous. But that brings us back to the customer. I want to get back to the customer impact, because the challenges are also opportunities, so what are some of the key challenges that your top customers face in the cloud. Because I think right now, it's pretty obvious that Mobile World Congress is kind of proving it's no branch of the cloud. It's really the business model behind it. Okay, I need to have my business model align with the value preposition for what we sell to customers, and how do we execute that operationally? >> [Emily] Right. >> So, take us through how you guys help customers through those challenges and turn them into opportunities. >> Well, first, John, we listen to what those challenges are. We've heard it over and over again. How do I ... How does the company become agile? How can they stay competitive? And you're always trying to stay one step ahead of your competition, and how else do you do it? So agility is really important, and when we talk about agility, we're not just talking about being able to create an opportunity quickly. It's how can you become flexible? How can you integrate your backend quickly? How do you support your new business requirements? If you're IT, how do you support your business partner very quickly? So it's about agility, and we provide the software that will help them do that. The cloud platform allows them to quickly integrate and extend those applications, and then of course, optimizing business processes. Who doesn't want to be efficient? I don't know how many businesses out there who wants to do things this old-fashioned, slow way. They're always trying to do it better and quicker. >> They got to preserve the old, but kind of bring in the new at the same time, it's a ... >> Right. So how do we help them optimize that? So they're asking us that all the time, and we're SAP, right? Our bread and butter, ERP, CRM, applications. We know business processes, so we understand what it takes to help them optimize those business processes. >> I didn't get a chance to ask Dan Lahl, who I interviewed earlier, about ... Who's Vice President of Product Marketing at SAP Cloud, your colleague. I didn't get to ask him this question, but this is important. Customers want to know ... That their partner, in this case, SAP Cloud, has a healthy ecosystem around it. Why is an ecosystem important, a healthy ecosystem important for customers, and then what does SAP Cloud doing to foster more innovation and openness and relevance in that ecosystem? >> Another really good question, because SAP has a history of building out an ecosystem for partners, and with SAP Cloud platform, what's great about it is it's technology that our partners are, today, leveraging and creating applications. So for those integrators, systems integrators who work really closely with our customers or their customers, they understand their businesses. They're very intimate and close with them. So they're developing applications that will help support their needs, and there are actually a lot of these partners. We have over a thousand applications that have been built by partners today. We have 600 partners that are building applications with SAP Cloud platform, and that's quite remarkable, considering the product has been around ... for just three, four years. Four years. So, it's really good news. Our partners are really invested in this technology. >> Can you comment on some of the big news that's happening at Mobile World Congress, specifically around this concept of an integrated solution set? So we see 5G was a big announcement by Intel. You're seeing autonomous vehicles as a showcase. You saw them at CES by the way, too ... It was an auto show there, too, but it allows people to really get a sense that it's not a stovepipe or a silo anymore of software stack solutions in that, you know, you need some bandwidth, you need some glue software, you need some third-party solution. You need to have things componentized or Lego-blocked kind of designed in, so this is kind of this new fabric. Could be IOT from machine manufacturing equipment, to wearable computers, all kind of coming in. That's kind of the new solution set. What's the vision for you guys on that? >> You know, at Mobile World Congress, we actually have a couple really cool demos. I should probably say they're not just demos, but they're actually exhibits. We've got a connected vehicle. We talk about the connected stadium, and when we talk about the connected stadium, we're talking about the whole experience of someone coming to an event and then being able to use their iPhone or their Android device and be able to buy their food, be able to understand what's happening and know what, you know, be able to go to their seats, and things like that. Help them through the whole experience with a connected vehicle. Be able to rent a car, and then be able to create an expense report, all on their phone. All of that needs integration. >> [John] It's a mashup of all kinds of stuff. >> Exactly. >> An accounting system is now part of feature of a stadium. >> [Emily] Right. >> A cool sports venue. >> Think about all those business processes that have to be integrated, and not just on the IT side, but all those business processes. So, like you said. >> The speed is critical. You have to have low latency ... >> Yes. >> And great software to make that work. >> A repository, right? To be able to collect all that data, streaming data, bring all that together, and then be able to analyze and then make decisions and then trigger actions immediately, so. >> All right, so, let's go through some of the cool highlights real quick. I know we have limited time. I want to get to it. In terms of the demos, you mentioned the stadium thing. What else do you have? Explain some of the demos, and kind of give a little bit of a quick synopsis of each demo, and the coolness of it. >> Yeah, so, definitely, like I mentioned, the connected stadium's going to be a cool factor. The connected vehicle. We're going to have a car there, so that's going to be fun to watch, so, the fact that it's all connected. It's all IOT. It's through your phone. It's rental. >> [John] What's going to be in the car demo? >> Lots. (both laugh) Through the iPad, you can see certain things. I don't want to give it all away. >> So go to the demo. If you're in Barcelona, we're here in Palo Alto. >> [Emily] We'll have examples of what exactly the ... >> But what is in the car, because, if you think about it, obviously, over the years, I've seen tons of demos on stage, certainly at Sapphire and the big events. And there's a lot of real-time dashboarding stuff. Is that some of the ... The glam and flair going on at the demos? >> That's some aspect, yep. Yes. So, I can't give anything away yet. We want people to watch when we're there, but yeah. So there's going to be some cool demos there. And then we're actually going to be showcasing ... Intel, who's also a sponsor, for this particular show. This time around. Yeah, so we're going to be showing a prototype of a really simple IOT example, where we're going to connect it with Google Home and Amazon Echo, and we're able to control this little prototype building, send elevators up and down, all through bot technology. >> So SAP as a company's moving from a back office powering 80% of the world's businesses to a much more front-end, agile solution provider with technology ... >> [Emily] Exactly. >> Using the cloud and big data. >> And digital. >> [John] And digital. >> Yeah. And all of that is because our customers are demanding it. They see it, they know that ... They trust that we can help them along the way, on the backend as well as on the integration front, and help them become digital. >> But this is the transformation you guys have been at HANA. The system of record, that's the database and software. System of engagement, that's free-flowing data, and now you have AI ... >> [Emily] Yes. >> Kind of automating a lot of that real-world examples, so that seems to be the same. Nothing changes on the SAP vision on that front. >> No, it's an evolution. So I think all the technology components are in place. So AI, predictive, machine learning, that's been around forever. It seems like it's the holy grail for marketers, for people in risk management, you name it. Everyone wants to be able to use analytics. >> It's all integrated. >> Yeah, and now you've got the database, you've got the in-memory database, you've got the streaming capabilities, you've got ... There's so many different components that are now ready and in place to make it actually a reality. So it's exciting. >> Emily Mui with SAP Cloud Group. Final words, somewhere that you'd like folks to walk away with from a customer standpoint and impact here, Mobile World Congress this week. What's the big story from your perspective? >> Big story is that we've got a great cloud platform solution that people are just learning more about, and they should learn more about it, because we've got all the components, all the services available to help them become a much more agile business, help them optimize all the business processes they have in place today and the ones they're looking to create, and then of course becoming digital. It's become a benefit for them. It's an actual benefit to become digital. >> The IOT really highlights your value proposition as a company in general, and the cloud opportunity is just right ... Right lockstep with that. Congratulations. Thanks for coming out. >> Thank you. >> Emily Mui, here inside theCUBE in Palo Alto breaking down and talking about Mobile World Congress. Special two days of coverage here at Palo Alto. I'm John Furrier, thanks for watching. (upbeat techno music) (bright instrumental music)

(upbeat music) >> Okay, welcome back everyone we are here in Palo Alto for the special CUBE coverage of Mobile World Congress 2017. In our studio breaking down all the action happening in Barcelona, for the next two days, wall-to-wall coverage. I'm John Furrier, and our next guest is Michael Foran, who's a product manager at SAP, formerly HANA Cloud, now called SAP Cloud. They renamed it, part of the big news at Mobile World Congress. Michael, thanks for stopping in and sharing your thoughts on SAP Cloud and the impact at Mobile World Congress. >> Thank you for having me. >> So you guys have, we've been following, obviously your Cloud game since the initiative started, the announcement, and then kind of like the slow start, but last Sapphire, SAP Sapphire in Orlando, which we had theCUBE there live, really was the release of the cloud, the announcement of the Apple deal. Now that's going to be the big news here at Mobile World Congress this week is the shipping of that general availability of the iOS developer kit. Once you guys hit the market with the product, it's just been rolling, incrementally getting better. And you changed the name from HANA Cloud to just SAP cloud. I interviewed Dan Lahl earlier about what that means. I don't want to get into that, but it means that SAP's now sassifying all their products. As the project manager, you got to put the roadmap together with the team, so I'm sure you have to balance really two camps, right? You got the SAP installed base which SAP, in my many conferences with Bill McDermott, the CEO, it's you guys run, the biggest businesses are running on SAP. So you have a huge install base. At the same time, the cloud brings Greenfield developers, cloud native, which don't have any SAP in it. So it's the merging of the best of both worlds. That's a product challenge, so I want to get your thoughts. What's the key thing for folks to be aware of at Mobile World Congress this year about the aha moment for SAP cloud? What is that key product feature that bridges the cloud native with the pre-existing SAP? >> Well, that's one of the benefits of having the cloud platform like ours, right John? Because we wanted to support this concept of the bimodal IT because we recognize that a lot of our existing customers really wanted to leverage their existing investments, but at the same time be able to address a lot of the upcoming innovations and being able to address even their change in work force, for example. They want to be able to utilize and adapt, I guess, to a key word that people kind of throw around there as being agile. And being agile means helping the customer be able to adapt efficiently and economically to the changes, whether it's user expectations. I read somewhere like some of the workforce by 2020's going to be 75% millennials, and their expectations of their product experience is going to be much different than what traditional users have been. And at the same time you have a business that you've kept running for a long time and you don't want to just change the way that they've been doing things. You want to have those things there but at the same time bring new innovations. And with the HANA cloud platform, you're going to be given a set of tools and services, as you've probably heard from Dan already, that's going to enable you to do that, bringing new innovations like IoT and machine learning, and so forth. >> And you got the use cases, you got people who actually are building apps, and just last Friday on my Silicon Valley Friday show I interviewed Paul Martino, who had probably one of the best quotes He's also an investor in Bullpen Capital, he does a lot of startup action. But there's been a democratization of entrepreneurship because it's so easy to build apps. Could be a 16 year old in the basement to the dorm room to the old age home where guys my age are building apps. So this is kind of like an app tsunami happening. So that's cool, that's cloud native, great market for that. But then this integration that's really big, because now apps are great by themselves, but if you look at Mobile World Congress, the key theme is 5G and 10, so apps got to start playing well with others. You hear microservices, talk about machine learning, these are now the new tools of the trade to bring that building block approach. Do you guys agree with that, and what are you guys doing specifically to facilitate that seamless integration, the building blocks, is it microservices, is it servantless architecture? Can you share some thoughts on that? >> Yeah, you're absolutely right, and this is where businesses have come. And helping enterprises grow, you mentioned starting with small companies and so forth, but as they grow, what we recognize from customers is that their landscape becomes really heterogeneous. They're trying to integrate best of breed software and so forth, and having a platform like ours that's able to integrate into those things is the perfect utility and the perfect platform for doing that in the essence that we are able to. Let's look at it from the end consumer experience or the end business user. If we do technology right, the technology that's underlying it should be almost invisible. It doesn't matter that they're accessing five, six different systems in order to do their job. With the cloud platform we have a way of being able to integrate all those systems and be able to present it as one experience, one UI, friendly, user-friendly UI and using like, for example, our Fiori user experience and paradigm. >> What's the integration point? Because I think this is something that the developer, developers are fickle, right? I mean, developers are great, but also they wield a lot of power and they're moving to the front lines with their apps, but at the end of the day, the business outcomes are really where the holy grail is. And that's where the developers are getting close to, they're getting close to the outcomes and they're part of that process. So they're out developing, they're slinging their code around, slinging their APIs around, doing all this great stuff with microservices, but sometimes they don't really think about the integration. That's why DevOps was so good. They let the infrastructures be programmable. Some of the times it's not that easy to program integration. Sometimes you have to really understand that. Are we going to have programmable integration playbooks and templates, how is that evolving? Because this seems to be the hot area where, okay, infrastructure is code, I can see that, that's working great, how do you connect down and make it work so that the integration works better? >> Kind of the approach we've kind of taken is that when you're doing integration between systems and so forth, it's best to do it through well-defined APIs, that where there's a decoupling of the system. That way the systems that you're interacting with are not so dependent upon each other. So if one piece changes, the others can still run, as long as that API, or that handshake, if you will, doesn't change. And you brought up a another good point as far as having the developers and business people work in a more collaborative fashion. Because at the end of the day this is what we want to target, we want to enable the business users to be able to have applications that they're comfortable with, that they're able to be efficient with. And the way we're doing that is, we're putting services on top of the platform that's going to allow them to be really, the guys who are actually designing the applications at the end of the day, that they're ones that they're going to be using. Because we in the past have made some bad compromises when you're designing software because you got the business person saying, hey this I want to see and then you got the developer saying, this is actually what I can achieve. But through the platform we offer this service called our build service, which basically allows the business analyst to essentially be the ones who become-- >> They're composing, not necessarily coding. >> Yeah, they're composing, but at the end of that composing, they're able to get that user feedback and go through the rounds of saying, is this the software that I really want to use? And when they're done with that, they're able to pass that along to developers and say, okay, great, I know exactly what you're using it for, now let me be the ones that help you tie into the various systems that perhaps I actually need to integrate with. >> Okay, Michael, tell us the big things that people should pay attention to this week during Mobile World Congress from the cloud. Is it the updates, what are the key news that gets your attention that you want people to look at and take notice of? >> I'm sorry. >> Okay, well, you guy had the, there's been some good proof points You guys had the new capabilities, got the iOS native kit. Is there any machine learning going on in the cloud? Can you share some insights? Because AI is certainly the hype factor right now. But machine learning and IoT, that kind of connects the dots on some of the cool features of what's going on now. >> That's absolutely right, John. In terms of machine learning, here's the thing, once we start integrating all these systems, we have a lot of information that's rolling into the system, essentially. How do you actually make use of that information? Part of it is, we're only human. What we would like to do with the technology is, give you some superpowers with the technology. The technology that we work with is not meant to replace you, but meant to augment what you're able to do. And machine learning's a great vehicle to do that in. This is one of the areas that I think you should be paying attention to. There's going to be a lot of stuff coming out on the platform in terms of services that's meant to aid you, meant to aid the developer and seeing how they can actually do their task a lot better. For example, some of the stuff that's coming to be coming down in the future on top of our platform is, we have this service called the CoPilot, which if you could imagine, it's a digital assistant. So if you're performing a task that you have somebody, have somebody sitting there next to you reminding you perhaps things to be cognizant of. For example, if you're trying to create a purchase requisition or what not and the system already knows that perhaps you're low on budget, these are things you need to be wary of, that's something that you can then act on right away without having to wait for that process of submitting the purchase requisition, getting it back and saying we can't approve this because of budgetary reasons. >> That's the speed of big data. You actually get the software working on new work flows. I want to get your take on, anecdotally speaking, you're the product guy, so you get to see what's going on with the requirements, the roadmaps, this is kind of the keys to the kingdom. I love talking to product guys because I used to be a product guy myself back in the old days. But you got think holistic, you got to look 20 miles down the road and think about those tradeoffs you mentioned earlier. What anecdotal things can you point to from customers that you see that seem to pop out as a trend that you guys are doubling down on? What's the key customer requirements that's the focus? >> Well, a lot of the things that we tend to see from customers these days is a trend actually back towards being able to use standard products. They don't want to do these hypercustomizations on the products themselves because we've seen where it's taken them, and that is -- >> Mean one offs, basically. >> Yeah. One offs and just changes to their system where they're so dependent on the customizations they're afraid to do these upgrades. So it makes them really slow to react and be agile in their business. So this is where having the SAP cloud platform, they're able to keep those things running and then being able to do the new innovations. It's really, from the customer's perspective, they're really asking us to-- >> Scale. >> Be able to scale. >> Is it scalability? >> It is scale. >> Okay, so scale seems to be. So talk about the Google Next coming up. I know you guy got announcements. I'm trying to get the news, although it's under a lot of confidentiality. You got Google, you got Amazon, you got Microsoft out there. Oracle has a cloud. I mean, we're living in a multi-cloud world. And it's pretty clear from our reporting and our analysis, Amazon is obviously doing very well, but it's not going to be a winner take all. Customers want to have multicloud. How do you guys view that conceptually and philosophically from the customer standpoint? >> The SAP cloud platform is a very open platform. We recognize this from the customer's perspective as well as that they don't want to be tied into any one vendor, they want to be able to do what they need to do without being tied to any specific one, and certainly with SAP cloud platform we're adopting that. You've heard of the announcements of the availability of us using Cloud Foundry on top of our platform as well and being able to bring in those Community Source and Open Source type products into the platform. And that also leverages existing investments from the customer's developer workforce. >> So you guys are open cloud, basically. You support open all the way. >> Absolutely. >> Okay, my final question for you, what's the most exciting thing that gets you jazzed up about the SAP cloud? >> I think the most exciting thing about my work and being able to do this stuff is really enabling and empowering people to do their jobs more efficiently. Because at the end of the day, none of us are really the people that want to just be administrators. And some of the applications, some of the things that we do make us administrators versus being a recruiter versus being an interviewer or whatnot. And we want to make software that really fits your needs and really helps you be what you're supposed to be doing and not an administrator. >> The best software is invisible, as I always say. Making it happen, Michael, thanks so much for spending the time here in theCUBE, appreciate it. You're watching two days of wall-to-wall coverage of theCUBE, covering Barcelona, Spain, covering Mobile World Congress 2017 from Palo Alto, analyzing and opining on all the news and commentary. I'm John Furrier, thanks for watching. (upbeat techno music)