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