(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)

>>From around the globe, it's the Cube with digital coverage of IBM, think 2021 brought to you by IBM. >>Welcome to the cubes, digital coverage of IBM Think 2021 fine lisa martin. Next joining me is Leo Lebron's director of global strategic initiatives at Aws. Leo, Welcome to the cube. >>Thank you. >>So, talk to me about AWS and IBM. What's going on there with the relationship? What are some of the things that are significant for both partners? >>Yeah, absolutely. You know, IBM relationship really started with us around 2016, I would say it was a little bit more opportunistic at the time, we knew there was an opportunity to go to market together. We knew there were some great things we could do for our customers, but we haven't quite cracked, cracked the code, so to speak, on, on when and where and why we're going to partner at that point. Um you fast forward into the sort of 2017 to 2019 timeframe, um and we became a lot more intentional about how we're going to go to market where we were going to invest. Areas such as S. A. P, et cetera, were early, want to be identified. Um and I'd say the ball really started rolling sort of in the 2018 time Frank, a combination of a number of different things occurred. Uh You know, the the acquisition of Red Hat obviously, you know, Red Hat is a very significant, was a very significant partner with a W. S prior to the acquisition. Um And so post acquisition, you combine that with ramping up a workforce focused on AWS, combined with a number of different competencies at A W or IBM really invested in around migration as an example or S. A. P. Um and you know, the ball really started to roll quickly. Um after that, you know, I'd say in the last 18 months or so, we've both invested, significant in the relationship expansion around the world really, and in joint resources and capability to make sure that we're going to mark, it's sort of a partnered intentional way rather than sort of opportunistic. Uh >>Oh God, >>yeah, I'd say so far that's that's absolutely been paying off. Um and that we are seeing a number of winds all around the world across a broad set of industries as well as a broad set of technologies. Um so, you know, the strength of IBM consulting services in particular, but also their software, combined with the strength of our platform, is really proven to be successful for our customers. >>So you said started in 2016, really started taking shape in the last couple of years. That redhead acquisition talk to me about what's in this for customers. I imagine customers that are, that are expanding or needing to move workloads into the cloud or maybe more of a hybrid cloud approach. What are some of the big benefits that customers are going to gain from this partnership? >>Yeah, absolutely. Uh, reality is um, IBM has a long and storied history and relationship with their customers, right? Um, They run and manage many of the workloads. Um, they really know the customer's business incredibly well. Um They have domain expertise and industry, um, and then the technology expertise from a professional services perspective to really help navigate the waters and and determine what the right strategy is around moving to the cloud, right? You combine that with the depth and breadth of the skills and capabilities and services the WS provides. Um and the fact that IBM has invested significantly in making sure their professional services are deeply steeped in our technology and capabilities. Um, it's a great combination of really understanding the customer's needs plus the art of the possible honestly, when it comes to technology that we provide, really can accelerate both and mitigate risk when it comes to move into the club, >>that risk mitigation is key. So you guys, recently a W has recently launched, I'm gonna get this right red hat, open shift service on AWS or Rosa. Can you talk to me a little bit about rosa? >>Yeah, so um Red Hat obviously very well known and ultimately adopted within the enterprise. Um, we have built a fully managed service around red hat on AWS. Um, what that means is um, you'll have access to essentially the capabilities that that red hat would normally provide, but all containerized within a solution that allows you to have access to AWS services, right. Um, the other benefit here is normally you would get sort of a multi vendors with invoicing and cost model right? Where you get built from red hat get built from amazon, you get built from IBM um, in this case it's it's essentially a holistic service in which there is a single sort of invoicing and vendor relationship. Right? Um, so it's a combination of capabilities that normally would be provided the red hat combined with access to cloud and all the interfaces and capabilities around um, open shift etcetera that you could do their um, plus a more interesting and beneficial commercial model. >>So streamlined pricing model, streamlined operating model for customers. Talk to me about some of the customers that have adopted it. Give me a look into some of the industry's where you've seen good adoption and some of the results that they're gaining so far. >>Yeah, one second. Sorry. It's like insanely love uh worries. >>Let's just take it, let's just take a >>pause. Like we can >>just we can just so yeah, we'll go right as if lisa lisa just finish the question. Um so just take a breather. Yeah, as long as it as it needs. Um and then whenever you're ready, whenever that's that's died down, just just give it a beat, give it like a second and then just write as if she >>just yeah. >>Oh cut it out as if nothing happened. >>Give me >>two minutes. Mhm. >>So actually on your question, I know the answer from things that I've done recently, but was there an official answer Teresa, I'm supposed to give them the >>No, not >>really. I mean, I think what you're talking about on Red Hat specifically >>right earlier. >>No, I mean there's a product page and stuff, it's really about just the >>the >>ability of customers to be able to run those solutions on the AWS console is really the gist of it and then it's fully integrated. >>Not sure advantage of the examples I know of are publicly referenced. >>That's okay. You could just say customer in X y z industry. That's totally fair. Not to worry about that. Yeah, >>I don't know if uh, so rosa, lisa rosa was just launched in March and so it's brand new. So I don't know, I'm the customer stories yet, >>so >>that's why I don't have them listed for leo >>that's fine. That's totally fine. Maybe we can talk about, you know, since the launch was just around the corner, some of the things that have been going on the momentum interest from customers questions conversations, you mean more like that as you're launching the GTM >>Yeah, and there's certainly a couple of industries that they have targeted. So as well as a couple of customers. >>Yeah, thank you >>lisa. Of course. I think they went around the corner. >>All right, let me know and I'll re ask the question. I'll tweak it a little >>bit. Alright, >>so talk to me about Rosa just launched very recently. Talked to me about customer interest adoption. Maybe some of the industry's in particular if you're seeing any industry that's kind of really leading edge here and taking advantage of this new manage service. >>Yeah. So no big surprise, right. The existing customer base that currently uses red at Lenox and some of the options and open shift etcetera that are out today are then the right customers to potentially look at this when it comes to moving forward. Um, you know, industry wise, certainly there are areas in financial services, banking, insurance, um, et cetera. We're also seeing some around manufacturing a little a little less so, but some in media and telco as well. Um, So it's, it's a broad swath of the applicability of red hat and open shift is somewhat universal, but the early customer base is larger than sort of in those three areas. >>What I'm curious what the key target audiences are these Red Hat customers are these AWS customers? IBM all three. >>Yeah. I mean there isn't necessarily the perfect customer that we're not necessarily looking for as much as um if there are existing customers that are currently using Lennox for using Red Hat. Um, if there are someone who, a customer who currently has a relationship with either a W. S. Or IBM, um, there's an opportunity to essentially look at it from any of the angles if you're already on cloud or you've already experienced AWS in some shape or form, there's an opportunity to potentially to leverage rosa to further expand that capability and also have some more flexibility, so to speak. Um if you're already using IBM as a professional services provider and advisory firm, then they absolutely have the expertise and understanding of this product set to help you understand how it could be best leverage. Right? So you can kind of look at it from either the dimensions. Um if it's a customer that's completely new to all of us, then we're happy to talk to you. But um, it's uh, it's something that we'll definitely take a little bit more explanation to understand or why why you should or shouldn't consider this multi cloud open shift. Absolution >>got it. Let's shift gears a bit and talk about ASAP when we think about customers looking to migrate ASAP workloads to the cloud, looking at the right cloud provider providers and those are really big challenging strategic decisions for leadership to make. Talk to me about why when you're in those conversations, AWS is the best choice. >>Absolutely. I mean, really AWS and say with S A P N with many of our services is really looking to give all the options that you could conceivably need or want in order to engage in cloud migration and transformation. Um, press safety specifically right, There are a number of different options, right? You could go for a lift and shift or upgrade from many database. Too sweet on safety hana. Um, could potentially look to modernize and leverage cloud services, post post migration as well as the sort of final Pinnacle of that is a complete transformation to S four, S 4 Hana as far as why AWS specifically beyond just choice. Um, You know, from a from a cost perspective, uh it's a pretty, pretty compelling and we have some pretty compelling business and use cases around ultimately the cost savings that come when, when you move from an on premise S A. P implementation to cloud. Beyond that, usually the cloud migration itself as an opportunity to uh condense or reduce the number of instances you're paying for from an S A S a P perspective, which then further reduces cost um from a reliability perspective, you know, AWS is is the world's most secure, extensive, reliable part infrastructure, right? Um, any of the instances that you put on AWS are uh, instantly and say fairly instantly provision in such a way that they're they are provided across multiple what we call availability zones, um, which is giving you for the resiliency and the stability that really no other cloud broke Right. Um On the security front, I mean, this is really a unique position in that AWS plus IBM and the security, the depth and security services, you know, numerous years of professional services work um that IBM has done the security space um you know, they have roughly 8000 or so cybersecurity experts with an IBM so the combination of their expertise and security plus the security of our platform um is a great combination. Um I'd say the final one is around performance. Right. AWS offers many more cloud native options around certified ASAP instances specifically all the way from 256 gigabyte option all the way up to 24 terabytes, which is the largest of its kind. Um and as as those who have implemented ASAP No, it's a very resource intensive so having the ability to do that from a performance perspective is is a key differentiator for sure. >>Talk to me from your opinion about why IBM for S. A. P on AWS, why should customers go that direction for their projects? >>Yeah. You know, ASAP has, sorry, safety, IBM has over 40 years of experience in implementing ASAP for their customers. Right. They've done I think it's over 6000 S. A. P migrations, uh 40,000 global S A. P consultants around the world. Right. So from a capability and depth of experience, uh yeah, there's a lot of nuance to doing a safety implantation, particularly one that's been moving from on prem to the cloud. Um you know, they've got they've got the experience right beyond that, they have industry specific solutions that are pre configured. So I think that is 12 industry specific industry solutions we configured for S. A. P. It allows, you know, roughly 20-30 acceleration when it comes to implementation of platform. So um combination of just depth of experience, death of capability combined with these solutions to accelerate are all key key reasons for sure. >>The acceleration yet you bring up, sorry, is interesting because we saw in the last year the acceleration of digital transformation projects and businesses needing to pivot again and again and again to figure out how to survive and be successful in this very dynamic market in which we're still living anything industry. Why is it specific that you saw that was really driving the acceleration and the use cases for Rosa in the last year? Yeah, >>yeah. So you ASAP we saw an interesting trend as a result of what everyone's been experiencing in the last year with Covid etcetera. Um you know, many organizations postponed large european implementations and large as a few migrations because of what you just said, right, they weren't entirely sure um what would need to be done in order to survive either competitive threats or more? Just the global threats that are occurring. Um so what we saw was really none of, none of the transformations went away. They were put on hold for a period of time, let's say 6-9 months ago, maybe even a year ago almost um in lieu of I would say more um top line revenue generating or innovative type solutions that maybe we're focused specifically at, you know, the changing dynamic with with Covid. Um Since then we've seen a combination of those new ideas, right? Combination of the new innovation around health care of course, but also public sector and um you know, a lower unemployment and you know, the engagement there, we sent a combination of those new ideas and new innovations with the original goal of optimizing transforming ASAP, europe et cetera, And then combining the two to allow access to the data right that sits inside the S. A. P. Implementation ASAP, Combined the data asap with all these new innovations and then ultimately use that to sort of capitalize on what the future business is going to be. Um that's been huge. It's been very interesting to see some organizations completely changed their business model over the course of the last 12 months um in ways they probably had never intended you before. Right? But it's it's absolutely become an opportunity, you know, time with a lot of challenges. >>I agree there are silver linings and we've seen a lot of those interesting opportunities to your point and businesses probably would never have come up with had there not been a forcing function like we've been living with Julio. Thank you for joining me today. Talking to me about what's going on with I. B. M. And A W. S will be excited to follow. What happens with Rosa as a, uh, continues to roll out and we appreciate you joining us on the program. >>Absolutely. Thank you for time. >>Pearly Lebron chime lisa martin. You're watching the cubes digital coverage of IBM think 2021. Mhm.

(upbeat music) >> Narrator: From around the globe it's theCUBE, with coverage of SUSECON Digital. Brought to you by SUSE. >> Stu: Welcome back, I'm Stu Miniman and this is theCUBE's coverage of SUSECON Digital '20. Apeda Welcome to the program Vincente Moranta, who is the Vice President of Offer Management of Enterprise Linux Workloads on Power. Vincente, pleasure to see you, thanks for joining us. >> Vincente: Hey Stu and thank you for having me. >> All right, so we know that SUSE lives on a lot of platforms. We're going to talk a bit about applications specifically, primarily SAP. Give us a little bit, Vincente, about what you're working on, and the relevance to the partnership with SUSE. >> Sure, absolutely. So, the last five years I've been responsible for offering management at IBM. Focused on solutions that live on IBM powered systems. In particular, we started with SAP HANA, and obviously SAP and SUSE, with their fantastic relationship, was a big part of that and continues to be as we have grown the platform for the last five years. >> Excellent. So, SAP of course, critical workload, we've been seeing SAP go through those transformation. So, help us understand what work needs to be done to integrate these things? Make sure that companies can run their business. >> Yeah, I think primarily as clients are making their transition from a traditional type of an ERP, CRM, and even BW type workloads, they're looking for a way to make those transitions. Really get in to the whole digital transformation and all of the spaces of being able to leverage technology in a way that creates value to the client, in almost real time. But they want to do it with technology partners that are going to enable the client to do it with minimal risk, with high flexibility and with partners who are there for them to, in some cases, do things that are not necessarily all too forwarded or ready to go yet. But really giving the customer the ability to adapt to things. And when we started with SAP HANA, as I mentioned, the customers in the market who were doing HANA on X86 platforms were limited to certain set of capabilities, certain set of support statements, and things like that. And a big part of that was bare metal implementations which still to this day remain the most popular way to deploy HANA in an X86 environment. But when we got together with SUSE and with SAP and we started the partnership around HANA, the thing that became very clear was that customers needed flexibility. They needed to be able to adapt to changing environments, very interesting challenges that they were trying to tackle with these HANA projects. But the capabilities of the servers that they were using, were not allowing them to have that flexibility. And then, even if SUSE was trying to do certain things and give some flexibility to those clients, if the infrastructure cannot handle it, or vice verse, it really just is a one-party trick and it doesn't work. So the focus with SUSE, almost from the beginning, has been on tool innovation. And we've been able to accomplish really amazing things together with them and SAP. Things that could not have been possible without that very strong collaboration. And one of them that is very recent, is shared processor pool. Right? In a world where HANA is deployed bare-metal systems, IBM Power is always doing virtualization, and together with SUSE, we were able to come up with a solution. And with SAP, obviously. That allowed customers to share source in a virtual way across many HANA instances. So completely revolutionizing the DCO and the ROI for clients working with HANA. Without trading out any of the resiliency, any of the performance, and everything else. So, that's the balance that a lot of these customers are looking for is flexibility, and better returns, especially now more than ever. Without trading out all of the things that they need for an S/4 HANA project or an ERP or a BW project. >> You talked about the flexibility and the returns that customers get on this. I wonder if you step back for a second, where is this hitting on a CIO's priority list? What has changed in today's Cloud era? Couple weeks ago, IBM Think was going on, heard a lot about customers, how they're going through their journey in the cloud. We know there's a lot of options there so. SAP solutions specifically, there's a lot of ways that we can do this. So how does a CIO figure out what the best solution for their skill-set and the technology partner that they work with. >> Yeah, I think at a high-level where the CIO's are basing nowadays, is kind of, it's a good time to be a CIO, I think, because you get a chance to have a broad range of deployment options. Without having to trade out from the features. I'm sure some CIO's will disagree and will say there's plenty of other challenges that are making their lives complicated. But if we just focus on the fact that you can deploy HANA - you can deploy it in the cloud, you can deploy it in hybrid, you can deploy it on premises. And the largest then, and especially with our capabilities, and together with SUSE, the CIO doesn't have to make a choice on trade out of things that they have to lose if they make one of the other. I think that is what helps them to feel comfortable to go in to SAP and being able to adapt. If a project becomes too large or the data transfer requirements become too complicated or too expensive, it's easy enough to bring it back and to maybe leave dev test in a cloud and move the rest of the production environment to on premise. Through a number of partnerships that we have done over the last few years, there's a number of very large MSP's and CSP's including SAP HANA Enterprise Crowd - HEC - and very soon IBM cloud as well. Who can provide all of these capabilities that SUSE and Empower allow for a HANA deployment to be done in a Cloud. So from our perspective, even though I'm a hardware guy, and some people may think I only care about on premises business, the reality is when a customer says, or a CIO as you were asking. When a CIO is trying to make a decision we don't want that CIO to be thinking they have to make a decision between IBM supporting them only if it's on premises or only if it's on Cloud. We can do both. And they don't have to do, it's not a hard trade off to decide. You can start with one, you can go to the other one. We can have capacity for them like we're doing with SAP HEC today, SAP HANA Enterprise Cloud. They're using Power9 technology. The customers benefit in regardless of which deployment option they choose. Both with SUSE underneath it. I think we're trying to make it simpler for them to make those choices without infrastructure becoming the sticky point. >> Yeah, and you talked about the support that users can get, of course, from IBM. At SUSECON, a lot of the discussion about the community there. >> Absolutely. >> So, what can you tell us about, you've got thousands of customers that are running SAP HANA on Power, how do you help them rally together and be part of (muted). >> Yeah, so, you and I have known each other for a while and I think when we started working together at a prior company it was around communities practice. And the organizational network and social network. A big part of what we have done is just going to that same approach. Of just connecting people with people. Right? Connecting people from SUSE with people from IBM, with clients and trying to foster valuable interaction between those clients. Whether it's TechU, IBM TechU Conferences, SAP TechEd, SUSECON, you name it. We're always kind of looking for ways to bring people together. And I'll put in a plug for a client entity, a client council called the SAP Power Customer Council, which is a group of clients that decided on their own to get together and bring other customers who are doing SAP deployments on AIX, on Linux, obviously with SUSE and HANA, and come together once a year. We also have almost monthly interlock and workshops with them. But that is one way where the SUSE folks, IBM Power, SAP Development, all come together with a whole bunch of clients and they're giving us feedback. But also identifying things for us to work on next. From a support perspective, as you said, we have thousands of clients nowadays, and the really fantastic thing has been very few issues and the issues that we have had, SUSE, SAP and IBM, all three of us together, have been able to resolve them to the customers satisfaction. So it just kind of demonstrates that regardless of where something is invented SUSE with SLES, SAP with HANA, us with our hardware and our hypervisors, when it comes to the clients we all work very closely together for their success. >> Great. Those feedback loops are so critically important to everyone involved. I guess last thing, maybe if you've got a customer example that might highlight the partnership between IBM and SUSE? >> Yeah, there's a number of them and we have, I think it's over 60 public references together with SUSE of clients who are doing an SAP HANA with SUSE Empower. But a couple that come to mind, obviously Robert Bosch is a fantastic client for all of us. A fantastic partner. And they've been with us almost from the very beginning, together with SUSE and together with us. And they helped us to identify early on some things that they would like to be able to see supported. Some capabilities that they expected to be able to have, especially given that Bosch had a strong knowledge of IBM technology, IBM product. And they wanted to be able to apply some of the same capabilities around Live Partition Mobility and large size L-bars for HANA and things like that. And they worked very closely with SUSE and with us, and with SAP, to not just give us the requirement, but really help us to identify okay, how should this work? Right, it's not just creating the technology and adding more and more features but how do we integrate it, how do we integrate it in to Bosch, who had created a fantastic self-provisioning type of a portal for all of their clients, all of their internal entities around the world. That was really cool and it really kind of helped us to highlight how we could integrate into tools, monetary, and reporting, etc that our clients have. Another example if I can, is Richemont. Richemont International is based in Geneva. Luxury brand. And Helga Delterad who was the Director of Idea at the time, kind of came to me and gave me a challenge. He said, "Look, I love HANA Power. I love that we can do all of these things with it. But I really would like be able to share processors across multiple HANA instances. That would really reduce the bill. It would really reduce the cost. And Richemont would be able to achieve a much quicker return on investment than we had anticipated." So, he gave us a challenge. The challenge went to everybody. It went to SUSE, to us and to SAP, we all got together and again with Helga being the executive sponsor on the client side, he really kind of worked with all of us. Brought us together and it was a power of the possible type of situation that now is generally available to all clients. And it's thanks to Helga, thanks to Richemont, who brought us together and gave us that challenge. >> Excellent. Well Vincenta Morante, great to catch up with you. Thanks so much for sharing the update on IBM Power and the partnership with SUSE. >> Thanks Stu. >> All right, we'll be back with more coverage from SUSECON Digital '20. I'm Stu Miniman and as always, thank you for watching theCUBE. (upbeat music plays)

>> From Orlando, Florida, it's theCUBE. Covering SAP SAPPHIRE NOW 2018. Brought to you by NetApp. >> Hey, welcome to theCUBE. I'm Lisa Martin, on the ground, at SAPPHIRE NOW 2018 in the NetApp booth with Keith Townsend for the day. Keith and I are joined by Scott Feldman, the Global Head of SAP HANA and Leonardo Communities. Scott, welcome to theCUBE. >> Thank you, great to be here. >> So, communities, plural. Why are... Tell us about the communities at SAP. Why is there specifically an SAP HANA community, before we get into Leonardo? >> Okay, well it's kinda fun because you saw one community and then they say, "Well, go do another community." So you do one, and it's like, okay do one. Do another one. So we have, at SAP, a global community that runs on the SAP.com platform. That's for everybody. That's for all customers, all partners, all analysts, everybody. That's normally called a SAP community. What we realized back in, around 2012 or 2013, is that we wanted to have a special place where our SAP HANA early adopter customers could go and join and network with each other on an online presence, right, and then have an opportunity to share their knowledge with each other and get more information from SAP. So we created a separate community on SAP HANA. It's actually a pretty easy URL, it's called SAPHANACommunity.com. It's pretty simple to remember. And now, we've doing this for about five, six years. >> So talk to us about what's unique about the HANA community outside of the technology. SAP Communities, in general's already pretty big, very active community. >> Correct. >> But what was the call out or what was the results of creating the HANA community? >> Great, and that's a great question. So what's really interesting about the SAP HANA community is that the topic and coverage of the content is specifically related to SAP HANA, data management, database tools and technologies, analytics, and other surrounding areas that are connected to that HANA platform as an anchor. So we have provided, over the past five years, almost 300, 300 webinars of content on SAP HANA technology. A lot of that content has come from SAP product managers, a lot of it's come from solution experts, partners as well, have provided content. And they're in the form of webinar frameworks as well as whitepapers and other content that's on there. Now, the people that join the community, which is all free by the way for the customers that join, are mainly our SAP customers. Now I'm proud to tell you, here and also SAPPHIRE 2018, we're here, we're over 6,100 or so members, globally, of the SAP HANA community. And what's really great about that is, you know, relative to some of the millions of numbers of people throughout for other communities, it seems like, you know, 6,000 plus is a small number. But you have to keep in mind that it's very targeted, right? So the people that are through the door, and our members of the community on the SAP HANA Jam, we have it on our SAP Jam site which is hosting the SAP cloud platform. These are people that really are interested in that topic. And they really wanna learn about SAP HANA and the technology surrounding SAP HANA. So they're very, very high-qualified, high-quality people. >> Very engaged, it sounds like. >> Absolutely. >> So, speaking of that, so this morning during Bill McDermott's keynote, he mentioned 23,000 HANA customers. >> Yes. >> You mentioned 6,000 actively engaging in your community. >> Yes. >> Collaboration was a big theme of this morning, talking about, this is not grandpa's CRM anymore, what SAP is doing to break that status quo. How influential are those customers engaging in the HANA community to its development and its evolution? >> That's a fantastic question. So what's happened is the community... Think of almost like a pyramid. So the community of the large, vast number of people who have joined the community for interest in topics have mostly consumed information, they are kinda the base line of the pyramid. Some of those customers have some great stories to tell. Okay, so what we did was we started a webinar series in 2013 called Spotlight. And I'll take credit for the name, actually, 'cause we call it the SAP HANA Spotlight. And essentially, what we're doing is, imagine the customer in a spotlight where they're sharing their journey. They're sharing their SAP HANA story and their journey. So we launched that a number of years ago and now we've done almost 80 separate HANA Spotlight webinars with customers that are sharing their stories. Well we even took it one step further beyond that. In 2013, some of the executives from our early adopting customers for SAP HANA, they came over to SAP and they said, "Gee, SAP, we're betting our career "and our company survival "on this new technology called SAP HANA," back in 2013. And they basically came to us and said, "I wanna have a council." So we wanna have a council of influence so that we have an opportunity to get together, share stories, share our journeys with each other, get to know who the other customers are that are also early adopters and are embarking on this journey with us together, and then, more importantly, to answer your question, feed that information back to SAP development so that we could, back at SAP, improve the product and come out with some additional features and functions and make it even better. Well that was 2013. Our very first meeting was up in Canada, in a suburb in Toronto, at one of our customer locations. We had 13 people in that meeting. Today, dial up six years, we're at over 750 members of an executive, so these are C-level VPS, senior IT, and chief architects that are in our community globally. We've done 24 meetings, I'm about to schedule the 25th meeting, and I've globalized that. And the customers, I thought they would've been tired of these kinds of meetings, they love it. They absolutely love it. So again, going back to that analogy, this is kind of the high peak point of the pyramid. We get the executives that are making these decisions and we talk about thought leadership. We don't talk about features and functionality. We do talk about road maps, we talk about investments that they need to make, and we anchor it again on the SAP HANA platform but we're bringing in other technologies and components like analytics or SAP Leonardo, right, or S/4 HANA, right. Now that it's announced, we'll bring in C/4 HANA. So we'll cover other topics as well, and of course the cloud platform. >> So you set it up, rinse and repeat, now we're at Leonardo. >> Rinse and repeat. Rinse and repeat. >> What is, first off, what is Leonardo? Great name, I love the name. But what is it? >> So SAP Leonardo is a methodology. It's an opportunity for our customers to co-design, co-invent, and get engaged in the design thinking process to understand how data, and we talked about this today, how we can, how data and how knowledge can enable an intelligent enterprise. And it's a process. So what people need to understand, and customers work with at SAP and they could go to the SAP Leonardo booth areas at the conferences and see as many testers as they wish. But essentially it's a foundation. It's an understanding of, how do I take where I am today from my own understanding of how I operate my business, and where do I need to go, what is my next gem process? Where do I need to be in five years to be that thought leader and how do I get there? So how do I take data that I know and data that I don't know? We have, I just ran into one of our customers... We run a program out of our team as well called the SAP Innovation Awards. It started off as the HANA Innovation Awards and now we cover all technologies and all topics for customer innovation. So SAP Leonardo, cloud platform solutions, SAP HANA solutions, data management solutions, these are all innovative offerings. We just announced all the winners, we have a actually ceremony tomorrow night where all the winners have been announced and they're gonna be receiving their trophies. We've been doing this for many years. What's interesting about that is all the innovative projects that are coming from the customer programs, projects, innovations. What are they doing? How are they co-innovating? Are they co-innovating with SAP? Are they doing smart farming? We have one winner that's actually doing smart farming, micro-crop planting to understand soil composition. And humidity and moisture composition is different even if you go one meter away on this, one meter, which is nothing. >> You're right. >> For the Americans listening, it's three feet. (everyone laughs) And that's pretty close. And they can actually combine different crop plantings based on soil conditions and compositions and this is all being monitored in the SAP HANA cloud. So this is really phenomenal. >> Yeah, that would be. >> And we love these kinds of stories. And what we're doing now, as you can imagine. You're probably gonna ask me, how do you connect the dots? Well it was pretty easy to connect the dots. We have the customers that are presented these great programs. They've created these great values that they're providing to their industry, right? And they're great wins and successes. And we're leveraging those customers in the community as thought leaders. And we're also doing sessions like that. I'd like to get them on theCUBE. Have them talk about some of the things >> That would be great. >> that they're doing. >> We would have fun. We love customer stories. >> I love it. I think it would be phenomenal. >> So, let's talk bout the dynamics of running a community program that featured around a product. And HANA, very straightforward, is about the tech, a lot of it was speeds and fees transitioned into solutions. >> Right. >> When you start out with something as ambitious as Leonardo framework, are the dynamics different, like what are, what is the community like? >> A little bit 'cause SAP HANA is the foundation. And we saw this today at the keynotes today. And Bill's keynote was phenomenal and we saw that how he was positioning this and it's all about the intelligent enterprise and SAP HANA as a foundation, it's fantastic. And we've been doing this for a lot of years. But what do we do to build upon that? When we established the foundational community for SAP HANA, people started coming in and wanting to understand everything about the HANA community. We did a couple fundamental things. Number one, we connected with the SAP HANA Academy. And I'll give a shout out to my friends at the academy, I love them to death, and we've been partnering with them for five plus years. The SAP HANA Academy is a YouTube site of thousands of videos on how to do anything. It could be data management, it could be data hub, it could be Vora which is the connected to Hadoop. It could be SAP HANA. It could be analytics. And there's thousands, literally thousands of videos on how to just about do anything that you want connected to the community. So the people and the SAP HANA Academy team has presented content, webinars on our community broadcasting at least for the last... This year they did one, they do like two or three every year for the last number of years. What we did with SAP Leonardo was, Leonardo can be thought of as a combination of the technologies. So we have, as you know, with machine learning, IoT, blockchain, right, analytics and a whole bunch of other things, design thinking methodologies that are in Leonardo, so what we did is we took a lot of that and created a series of webinars and content. We just finished something called the SAP Digital Transformation Series featuring SAP Leonardo in conjunction with ASUG, the America User Group, that's our co-conference sponsor here and we love them to death. And what we did was do the 14-part webinar series. We had thousands of people come onto these calls and each call covered, for example, Mala, who's our president, she did what is the overview of Leonardo? How do we do this? We covered analytics with Mike Flannagan. Maricel covered design thinking. And then we went from there. Then we covered the solutions themselves. What is IoT, what is blockchain, what is machine learning? How do you understand what these things do and how they impact your organization? Then we took it one step further. We went into the industry solutions. So the partners are developing industry solutions. The industry accelerates, we talked a little bit earlier, there's a press release that just came out on that, on some of the.. >> The Partner Medallion Initiative. >> The Premiere Medallion Initiative, right. My friend Mike is running, from the Leonardo team. And that is certifying partners for the specific solutions that they're building around the industry, the deliverables that they have around the SAP Leonardo, we feature that as well. So all of that content was in this series and we continue to build upon that. What we really want, though, now is we wanna do what we did this time last year which was, we want the customer stories. So we've done, I've told you, we've done a lot of webinars in the community. So a lot of content going to the members of the community from the experts that understand that content. Next step, second half of the year, is we want those customer stories out there. So those 80 or so webinars that I mentioned that we did with our customer Spotlights, we want those Spotlights now. So we'll focus those... Anybody watching, give me those Spotlights. We want those stories. We want the customers to really articulate their story, their challenges, their successes, their wins, what are they doing to the SAP technology that-- >> You're preaching to the choir about customer marketing persons so that there's no better value-- >> Isn't it great? >> Brand validation, than the voice of the customer. Speaking of brand validation, I heard this morning that Bill McDermott announced that you guys are now 17 on the top 100 global most valuable brands. >> Absolutely. >> He wants to be in the top 10. >> And we're proud of that. I'm part of that team. >> Up four. You're doing this with a tremendous amount of partners is what you mentioned, partners. We're in the NetApp booth. >> Correct. >> Talk to us about what SAP and NetApp are doing in the community to enable this amazing amount of education that you're doing. >> So that's a great find. I mean, SAP wouldn't be where it is today, and I've been with SAP for (chuckles) I don't wanna say the number of years but people watch me and they know I've been at SAP a long time. It's like you can't say Scott Feldman without SAP. So it's been kind of anchored in for a long time. It's sort of the blood, the blue blood runs in the DNA you know. It was just kind of fun. But some of the partners that we've worked with in the communities have taken it to another step. NetApp is one of those. And I love working with NetApp. They're a strategic technology provider and a fantastic global partner with SAP. I know you just heard from RJ who did an interview, we work a lot with him and his team as well, Roland and the rest of the team. And what NetApp has done is they've made another strategic investment with us in the communities, for the HANA community and the Leonardo community such that they're a name-sponsored partner. And what's really nice about that is we have a special spot and if you go to the SAPHANACommunity.com site, or if you're already a member, or the other one is, you can guess, SAPLeonardoCommunity.com, very similar, right? If you go to either one of those sites, you'll find that there's a spot for partners that are specific to that community, that have taken the next step to add additional value. NetApp is there, there's a page. And what we've done is we've created a page with all the NetApp content on, what is NetApp's contribution on SAP HANA and Leonardo? Where is the value proposition? Why NetApp? What are they doing with SAP? Where are the links that we can go for all the content that NetApp has provided to us to post in that community? And not only that, NetApp is also an outstanding member, upstanding member of the SAP HANA CL Council Community 'cause they also run SAP. And, in addition to that, NetApp is a strategic partner that provides webinar content for SAP, for the community. So, about once a quarter, there'll be a webinar that is sponsored by NetApp and now I'm bugging them a little bit to get the customers in front of the webinar so we can have these little-- >> There must be some NetApp-SAP Customer Spotlights just waiting to come into the surface, right? >> Oh, absolutely. And we're doing them in small snippets so what's really great about that, it's kinda like this discussion that we're having, these small chunks. 'Cause I think the new wave of doing things, >> Snackable content. >> And I could certainly tell you're from the generation that's just maybe a little bit younger, is that they don't have time to sit down and watch a webinar for one hour. But they'll take it in 20-minute doses. They'll just like, "Man, give me "all the 20-minute webinars you want." It's like, I'll just give me a chunk and I'll take it and boom. I really want that. So that's been a lot of fun. So NetApp's been a fantastic strategic partner and we'll continue to partner with them moving forward. >> So I'm hearing a lot of collaboration, a lot of participation, energy just radiating, I think off from the main stage-- >> Oh I don't like the community, just do the watch, uncles love it. >> From the main stage to what you're talking about, what with what you guys are doing and I love to hear that the customers are being recognized for their innovation. Not just-- >> They are, yeah. >> Transforming their businesses, new revenue streams, new business models, but leveraging their partners like SAP, like NetApp, to become the intelligent enterprise and change industries. >> Absolutely, Lisa. And they're becoming the thought leaders of their own industry. So if you want to become a leader or a thought leader in your own specific industry, join the SAP HANA Community, make the investments in SAP Leonardo, work with SAP, work with NetApp, and like Bill says, let's get it done. >> Let's get it done. Scott, thanks so much for stopping by and chatting with Keith and me this morning. >> Thank you for your time, it's been my pleasure. >> And enjoy the rest of the event. >> I look forward to it. >> All right. Lisa Martin with Keith Townsend on theCUBE from the NetApp booth at SAP SAPPHIRE NOW 2018. Thanks for watching. (funky music)

>> From Orlando Florida, it's theCUBE. Covering SAP SAPPHIRE NOW 2018 brought to you by NetApp. >> Hi, welcome to theCUBE. I'm Lisa Martin with Keith Townsend. We are in Orlando at SAPPHIRE NOW 2018. We're in Vanetta booth talking to all sorts of guests and we're welcoming to theCUBE for the first time, Anand Chellam at KPIT, the Global Leader for SAP at KPIT. Welcome to theCUBE Anand. >> Thank you, thank you so much for having me here. >> So you have been working with SAP in some capacity for twenty years or so. You've no doubt seen a lot of transformation that SAP has undergone, since then. You're now with KPIT, who was just named yesterday a Hybris America Service Delivery Partner of the Year. Congratulations. Talk to us about one, the evolution that you've seen at SAP and two, how that excites you being on the the KPIT partner site. >> Absolutely, absolutely. It's been interesting. This is my 20th Sapphire, so you know it's been a long journey, and while today in the keynote while watching some of the demos, it goes back to, we saw a demo by Hasso Plattner when they launched mysap.com in Philadelphia. There was a big storm and there was a lot of notion that is SAP going back because internet was new and SAP was not in the bandwagon and SAP was trying to prove themselves that no they are, and they are an internet friendly software and there's a lot of debate whether that's going to be transformed or not, but looking at today, they've done a phenomenal job. I really think the last 10 years, the 50 billion dollar investments, which SAP has done through acquisitions, I feel it's been very rewarding to a lot of our customers, our partners and it's really truly the next generation software, which all of us can look forward to to get the most value. So I'm personally very excited to see how SAP has really looked ahead and done these acquisitions, and more importantly integrating them. I think one of the keys at least in the ecosystem I've seen companies, they acquire a lot of software, but the biggest challenge is integrating them and making them seamless to the customers, and I think a lot of credit goes to SAP for being able to have a plan and integrate that, so it's very seamless. So net-net I'm very excited about what's ahead of us. >> Tell us about KPIT, what do you guys do and then what do you do specifically with SAP? >> We're in Sapphire and KPIT's theme this year is elevate IT, elevate IT or elevate IT. And it's basically elevating to the next level at every level, whether it's from front office to back office, whether it's integrating the connected devices, whether it's building some intelligent automation in the ERP, whether it is adopting and rolling out a personalized cloud model. All of it we are in, and we're very fortunate to being able to you know one is obviously, we planned this. We had a planned strategy on which are the focus areas we're very focused. S/4, we are one of the leaders in the S/4. We have over 120 HANA implementations which is pretty sizeable. If you see there is gonna be some press releases coming out, that has been some piracy where we are the leaders in S/4. And we're excited to see how much of that automation is going to come into the picture. So S/4 is a big area of growth for us. Connected devices is because we're a very strong engineering firm, so it comes very naturally how those two, engineering and IT come together and that comes along very well. In Hybris as you said thank you again we were very excited to get the delivery partner of the year for Americas, which is a pretty amazing accomplishment given you know the last four years our focus has been, but I think what's more exciting for us is the co-innovation we're doing with our customers. As an example you know we are co-innovating building the dealership portals for a lot of their dealers for their customers and see how that's integrating well. The other aspect is CPQ. Big in configuring products and how they can one, bring it to market and two, position that so that their customers are able to configure their products, so we're able to doing a lot of that. We are uberizing service to see on an on demand model how is it that they can provide. So lots of activity around that area as well. >> Anand talk to us, 20 years it's a long time to have observed and participated in the SAP ecosystem. I think it would be fair to say that 20 years ago the conversation in a typical enterprise would be you know what, we're waiting on SAP, whether it's some innovation, practically some batch foul process to end to now we're in a market that SAP is driving business. Can you talk to us about the importance of the relationship of this trifecta of SAP, NetApp, KPIT, how do you guys bring this new business capability? What's the critical components of you bringing this new critical capability to customers, where you can now say that innovations that KPIT, whether it's Hybris or S/4 coupled with NetApp is able to bring innovation to digital transformation. >> Excellent, good point. I think we're not, I'm stating the obvious. There has been so much changes happening in the IT world that it's very important I believe to coexist with partners, and that's where I see the SAP, NetApp, KPIT partnership is a very critical one right, because all of them bring such critical components to bear that we really can use the software, the infrastructure, the disaster recovery the implementation services and the IP, which brings to the table, bundle it together to see some very fast outcomes. I'll give you an example. We just went live with an S/4 implementation. And day one, day one we had a 40% increase in order entry, which is phenomenal so the point being 20 years back that would be unheard of. It would be like oh if we go live and we still can (all talking) were great, so the velocity aspect has increased tremendously. That comes through all these partnership, the underlying infrastructure, which supports the software and the people and the processes, which come into bear. So it's very important that the trifecta effect is seen in outcomes which customers really benefit from. >> Who are you talking to when you guys are going in together as this partnership that you just articulated. Who are you talking to? I mean because the C suite has has shifted so much right? I was reading from the CMO council that 67% of marketing execs rank marketing and commerce technology is critical to their overall performance. We've got the chief digital officer who have to drive cultural change, the CIO who needs to be bimodal. When you guys are talking with customers, what are are those conversations like? What's driving the innovation that KPIT needs to deliver for these customers? >> Very good point. So we've started adopting some of the newer areas to see some of the benefits, which customers are looking for. As an example, one of our customers who make packaging machines, they wanted to see how they can overall reduce their service costs by 20% and how they can implement, an IOT based solution on Leonardo Connected Goods to help reduce and build a new business model, so what in this new age it's just not about implementing a software. It's about how does it drive efficiency by reducing cost, but more importantly how does it spur and build new business models, so it's no longer restricted to an IT solution. I think in this digital era, it's more important how does how does it look differently, how are the models which we never thought about before are being brought in and we were part of the Medallion select group of Leonardo partners and we're very proud to see how that grows. >> What excites you about that because I just saw that announcement come out yesterday. Tell us a little bit about the KPIT's SAP Leonardo innovation portfolio and what you're delivering or will be delivering to customers with respect to that? >> We're focusing in many areas, but the couple which come to mind is Connected Goods. This is an example where we talk about how we reduce the overall service cost by 20% right by just implementing something around that lines. We're also doing a lot of work on the predictive maintenance side of things, where being able to predict failures, before it happens to reduce the downtime and increase the overall productivity, where KPIT is big in automotive and the vehicle insights are something, which we are working with closely to build some of those outcome based models, which I think will be very much beneficial to lot of the customers we have being seeing. >> So if we were live, John Fourier would be DM'ing us and saying this is a perfect opportunity to ask about blockchain in general, so let's not jump on a blockchain bandwagon. Let's talk about other enabling applications including blockchain. As you look out into the next few years, how important is SAP becoming a true platform company that embraces technology such as blockchain? Or they're reaching out to Internet of Things and manufacturing companies, the solutions, other supply chain integration points, how important is SAP's participation in the larger ecosystem and technology? How important is that to the overall success of this partnership? >> You know I think the concept of intelligent enterprise is truly evolving in SAP. What it's helping I think a lot of customers do is it's connecting the dots between their customer experiences, the 360-degree view of their customers. It's looking at connected devices where there's so many devices out there, how do we bring that to the table. it's building a lot of intelligent automation. It's building connected factories so that the production efficiency is where I think there's a lot of emphasis in the next few years going to happen and of course supply chain right, where there has been the case. I think what it's bringing it all together to really have an intelligent enterprise where using whether it's blockchain, using machine learning, to be able to bring that together, because I think in isolation there are benefits, but I think the power of all of this is how do we bring it together in a very seamless manner, and that's what's very exciting. >> When they announced that this morning speaking of integration that C/4 HANA, they talked about that. I thought they did a good job of showing integrations and talking about that, but if I kind of distill that down to one of the things that their CEO has been really vocal about it's got to modernize Legacy CRM and connect, synchronize the supply chain with the demand chain. With what they're doing this momentum that the SAP is carrying through, how do you see that as a differentiator for KPIT's business to be a partner with SAP? >> Absolutely, you know, fortunately for us we've been very strong in the three-generation CRMs. I know we are now talking about the fourth generation CRM, which is C4/HANA. But having lived through the journey of the three generations, I think KPIT has a very unique proposition in the market place. We know very importantly what not to do, what are the things which did not work. I think that's a very important aspect, which I think SAP themselves have learned and that's probably why they're talking about the fourth generation CRM. And I think we are in a very unique position and that's the example. We have implemented this for a long time, and I see that with their integration what they've done with some of the other softwares like Callidus, this is gonna be a complete portfolio of solutions, which they can offer, which I think KPIT is in a very unique position, whether it's cloud for service, cloud for sales, Hybris Commerce, the Callidus, commissions. We're very well positioned to be able to provide all of this to our customers, so the portfolio is a lot more enriched, and I think it's going to be very rewarding. >> What are some of the things in terms of all those announcements that you're looking forward to at Sapphire this year in terms of I can imagine there's a wealth of, I think there's a thousand SAP sessions alone, from an education perspective? Is your team here ready to, you said your theme was Elevate IT? >> Yes. >> What are some of the things that you're excited to learn how to do for those boots on the ground? >> I think one of the areas we are excited about is we're seeing the S/4 adoption going up. I think we're very excited about that. >> I think you said 1800 customers. >> Yes and there's lots... >> And counting. >> Lot's to go but I think yeah. >> Lot of opportunity here. >> Exactly, so I think that's one we want to make sure and then I think the intelligent Enterprise. I think we're very excited about that, along with the data hub. I know it's early days, but we'll closely be watching that because data is going to be a critical aspect for all of this to be successful. So I think we're right on very excited to see those three, four areas and I think we're well positioned to really be able to take this momentum to the next level. >> So you said this was your 20th Sapphire. I think when I was doing some research on this event, it looks like they had done this for about 25 years. Wow, so do you remember back 20 years ago like how many people were at Sapphire back then compared to the... >> Absolutely. >> 20 some thousand that are just here physically this week. >> Yeah I still remember I think it was '99 Sapphire in Las Vegas, that was the only Sapphire happened Vegas. It's easier for me. I don't know why they don't do that. >> Really? >> Yeah, so there I was sitting and one of the big areas we were very excited was, if I was able to enter sales order in HP Jornada. Believe it or not, it was one of the handheld devices. >> I remember that. >> And we were very excited to see oh we are able to enter an order in an HP Jornada. And today we're talking about virtual reality where we are able to look at stuff, change the colors, and be able to order just looking at what you like. >> Transparently. >> Yeah it is unbelievable the change, so to your point, lots have changed, all the way around, whether it's technology, whether it's expectations, whether it's the number of people, number of sessions, and you know we ourselves have got about 12 sessions, customer sessions in this Sapphire. We used to have two or three at the most. >> Wow there's customer centers here and theaters. >> Yes absolutely. >> So another 20-year perspective and looking towards the future. One of the great things about SAP is, also one of the challenges. 46 years of technology and moving customers along, SAP HANA, no question it changes businesses. The stat you gave earlier 40% more orders in one single day, day one. However, what are some of the major barriers that customers face with Legacy infrastructure and moving into taking advantage of S/4 HANA? Is it customization of environments that they did? Is that business processes? Like what's the top one or two challenges customers are facing? >> Very, very good point actually. I'm glad you brought this up. We've been at this for four years. In fact one of the first HANA migrations was done by KPIT at Varian Medical, one of the very early days. So from my perspective, the customers are looking to reduce risk, because they've been working on SAP for such a long time. They built it, it's evolved, it's customized. So how do we reduce risk? In fact KPIT has built a monetization tool, which automatically correct codes, so that it takes away, reduce the risks and reduces the time. So that's one aspect is, customers are very worried about the risks aspect. Second is of course the cost, because they don't want to be spending time in just implementing another system. They want to take leverage about the intelligence, which can built in the different processes, the advantage, so they do want to make sure that that aspect is there, but I think the biggest aspect is, they are looking for the business nuggets. You know what we talked about can this propel them into different business models. Can this be relevant for the next 20 years? Because this is a big investment and that's one of the big roadmap discussions we are having with a lot of our customers. >> Relevance, you know, you really hit the nail on the head. Customers have to be relevant. They have to be able to compete and become intelligent in order to do that. Well and I wish we had more time, but we're out of time. Thank you so much for joining us on theCUBE, and again congratulations on the award, the service delivery partner of the year for Hybris that KPIT has won. >> Thank you, thank you so much. Thanks for getting me here. >> Our pleasure. We want to thank you for watching theCUBE. I'm Lisa Martin with Keith Townsend, and we are at Sapphire Now 2018. Thanks for watching. (upbeat music)

>> Voiceover: It's theCUBE, covering SAPPHIRE NOW. Headline sponsored by SAP HANA Cloud, the leader in platform as a service, with support from Console, Inc, the cloud internet company. Now here are your hosts, John Furrier and Peter Burris. >> Okay, we are live back here at SAPPHIRE NOW. This is SiliconANGLE Media's flagship program, theCUBE, where we go out to the events and extract the signal from the noise, and I want to do a shoutout to our sponsors that helped us get here and present the great content, SAP HANA Cloud Platform, Console, Inc, Capgemini, EMC, thank you very much for the sponsoring. I'm John Furrier with Peter Burris. Our next guest is Rodolpho Cardenuto, who is the President of Global Channels company wide for SAP, as well as the general business, which is the SME as they talk about in the industry. Welcome to theCUBE. >> Thank you, John, thank you, Peter. Good to be here. >> So one, congratulations. We've had a lot of your folks on theCUBE and this area of the floor is buzzing with action, but real meat on the bone, as we say. It's real, it's a sizzle and the steak is here, so they had beer here yesterday, so German company, so we always like to see the Heineken beer out here. >> Peter: (mumbles) back here. (Rodolpho laughing) >> It was good to have Heineken out there, it's good, some good beer. So give us the update. I mean, you guys have had growth. Share with us and the folks watching, just from where you guys have come from, because SAP has always had a strong ecosystem. You go back to the ERP days back in the late '90s, certainly that revolution is 25 years ago when SAP came out of the woodwork and you got Oracle, all these companies were born. They had an ecosystem, they had people deploying and delivering software. It's changed now, so the dynamics are different. Talk about the dynamics and some of the growth that you guys have. >> I think it's better to position the organization, GB, as you've well said, general business, the SME space. Our ecosystem that we built historically was very focused on the enterprise to support the business suite and to support the enterprises to implement, et cetera, and now we are building in the last 10 years, we started to build a very focused, strong ecosystem, ecosystem for the SME space, that's why we're doing it, and I was just sharing with you, we just kicked off SAPPHIRE NOW last Monday with 2,000 of our partners with us, kicking off the SAPPHIRE, 2,000 of GB partners that serve this segment for us. >> So I said yesterday in the close, and I mentioned this to you, you correct me, I want to get this out there and then can clarify the record, I said that you bolt on the partner summit with the end user conference, which is a huge show, 25,000 plus, whatever the number is, massive, why everyone is here is what makes sense, and I was saying that this is being so important that you should break out your own partner event so people feel like a first-class citizen in that partner world, and you had to correct me. So share the correction that you guys do partner events, (mumbles) the big tent event, so why not have everything here for that? But you guys are doing events. Just clarify that. >> Just to give you an idea, I said we came up from the partner summit last Monday with 2,000 of our partners kicking off the SAPPHIRE NOW, but we do have a partner summit here in North America in the US. We have partner summits in Latin America. By the way, the next one is going to be in Punta Cana, (speaking Spanish) we have partner summits in Europe, APJ, Greater China, we do have a series of partner summits-- >> Do you do those partner summits in native tongue, or can theCUBE come there? >> The native tongue, that cannot, if I speak, yes. (John and Peter laughing) >> We have to get a whole new crew for theCUBE. We're looking for some hires down there, if you're watching, since now you brought that up. Okay, so let's get down and dirty. Channels are great. The leverage of channels, the leverage of the cost per order dollar for SAP, from your perspective, it's phenomenal, and that's great business, indirect sales combined with direct sales, phenomenal approach. What's changing, though? Because at the end of the day, people in the channel have an attitude of, "What's in it for me?" They're running a business. They also serve on the front lines with customers. What's changed in the channel today? Is it the same challenges, training, product? Is it different? Do you see different configurations? >> Well, it's changing a couple of things, and I'll try to summarize here, but the fundamentals are changing from on-prem to cloud, because we were, you very well said, historically an on-prem company, the fundamental of the on-prem are changing now to the fundamentals, the economics are changing from on-prem to the cloud, and the second thing is specialization. We were a company that was built on the ERP, and now we are a company as you saw here from Bill McDermott to Rob Enslin, Bernd Leukert, et cetera. We are (mumbles) HCM, Ariba, or supply manufacturer SRM, or CEC, so we have a lot of specialization. So the economics are changing for the channel as much as they are changing for us, and the specialization. You require a lot of specialization. One of the things that we are hear, listening clearly from our customers, is the specialization with integration. You saw, you'll hear from Bill McDermott and Rob Enslin and Bernd Leukert talking today about this integration, and we are doing a lot of our effort, with our channels also, to specialize, but at the same time to integrate them with SAP core. >> So there's something in application development that's been around for probably 40, 50 years called Conway's law, which suggests that the application that gets built is, or the complexity of the application that gets built is a reflection of the complexity of the organization that built it. When we talk about all enterprises of all sizes wanting simpler, faster, more integrated, more convenient, more natural to use, a lot of your partners are at the vanguard of thinking about how to make it simple because they don't have the institutional and organizational complexity to make it complex. >> Rodolpho: Yeah. >> So, is SAP learning from your partners as opposed to just your partners learning from SAP as we move into this digital world that has such a focus and emphasis on simplification? >> Peter, a great insight. I think that now only learning, we have to listen to them and react to that, because if we react in a complex way to serve our partners, they cannot serve our customers, because in the end, they're serving our customers, and as you said, they don't have the infrastructure or they cannot afford complexity, period. They cannot afford. So they need to be simple by nature, and if we are complex to serve them, they're not going to work with us. They're going to pick another one, the application and everything, so we need to build an organization that is fast and agile and is simple enough to work with our channels. I'm not saying we are there. We're not there yet. But we are in our... For instance, our theme is partners first, run light, and win together. Partners first is all about the partners. Everything that I do in my organization, all programs, products, solutions, is with the partner mentality. Is this good for the partner? Is this good with business models, simple enough for them-- >> John: It's a business partnership. >> And is it partner ready? Because if it's not partner ready, it doesn't fit my model. Run light is about the customer, and win together, it's SAP, the partner, and the customer. The customer should be comfortable enough that we are serving them with this partnership. >> Take us through some meetings internally at SAP, because that's a really great point. You got to meet the channel's requirements on how they do business, because they have a business and you have a partnership. So that means you're the favorite guy in town inside the company. Hey, here's my product. Go sell it through the channel. >> Rodolpho: Yes. (Rodolpho laughs) >> I'm oversimplifying, I'm not saying they said it, but that's the knee jerk reaction. >> That's the historical norm. >> That's a historical norm, "Hey, boom, here's the product. "Go just do some training." >> Keep her. >> But now you have to hold the line. You're the safeguard for the customer. So what are some of those conversations? Because you now have to be a forcing function to the product groups, and we've so much transformation, SAP S/4 HANA, HANA Cloud Platform, all these enabling technologies is a gold rush for the partners. So you have to hold the line. Share some internal color. You won't get in trouble. >> No, no, and I have no problem being in trouble, but I'm going to illustrate that with a simple case you just mention, S/4 HANA. S/4 HANA is the flagship of a product for the large enterprise. You saw Nestle up today with Rob Enslin. Nestle, one of the largest corporations in the world, 350,000 employees, $80 billion worth of, pretty large, pretty large by any metric, pretty large, and they use S/4 HANA. My job, and I have an organization, my organization, we package, we price, we enable, and we support the channel to sell and to support the S/4 HANA for the SME market. We are 60% of the S/4 HANAs for SAP. If you get all the S/4 HANAs, 60% goes through the channel that we manage. So, we package-- >> Peter: Is that the number of installations? >> Yeah, yeah, 60% of the S/4 HANAs today that we sold are sold through the channels that we manage in the SME, in the GB space. So that's the job. It's my job to package, to price-- >> John: You're giving money away. You're handing people money. Here, here's some business. >> It's my job to package, to price, to enable the channel, and to support the channel, to actually make S/4 HANA available for the GB space. So that's what we do. So we do that two folds. Of course, I have an organization to do that and I have it also to educate the other organizations. As you said, "Oh, here's my product. "It's perfect for SME. "Go and sell." Okay, let's have a conversation. Let's package, let's price-- >> Is the channel ready? >> Exactly. >> So run light, that means it's got to be turnkey. >> Yeah, we call it the package, price, enable, and support, because you need a different package, it needs to be much more simpler than the enterprise. You cannot go to a Chinese menu for the GBs, so it has to be templates. Price, very specific price for the GB. It needs to enable the channels. Who's going to enable the channel? Technically, pre-sale, sales, et cetera. And we need to support a channel once they sell or during the process. This is my organization, that's why I educate the other organizations. >> So there is not a company on the planet that has mastered the fine art of reaching-- >> Other than us? >> Other than you. Well, you said you got more work to do. (Rodolpho laughs) There's not a company on the planet, you're getting closer, that has mastered the fine art of reaching the general business population of companies. Increasingly also, as we move more into digital business, your biggest customers want to use software in digital interfaces and technologies to reach their small, medium sized business customers. Are they coming to you and saying, "How can we start bringing your platform, "your go-to business, and coupled with our SAP back end "to facilitate the process of helping to reach..." In other words, are you going to be able to catalyze a global change in the approach to reaching small businesses because of the SAP platform? >> Well, I don't know if we can do that, but I think it's a good vision for us to pursue, Peter. We do have an organization that has inside sales, digital sales, social sales, we use social to reach out to our customers. We use digital to reach out to our customer who have feet on the street, direct sales. We have our 12, today, I think 13,000 partners, ecosystems that reach also to our customers, and they are divided by territory, by industry, by solution, so we can map, get the world and map it by territory, by solution, by industry, the partners that we have, and we use a lot of our new methodologies and our social sales, digital sales, a lot of things. So we are building the infrastructure to support any kind of the products from SAP. We are very well serving them support for you, for the market, from SAP, so we have a lot to digest. >> So one of the things, we talked about, a lot of channel partners, SIs down to the ISVs-- >> Resellers. >> DABs, VARs, as you call, and we hear the following from them. I want to get your take on this and how you're addressing this. "We want a partner that's going to be with us "from cradle to grave, through the life cycle "with our partnerships," the things you said. The other thing that was interesting was, "We want to increase our gross profit," and services is 100% gross profit, so me as the partner, I make money on professional services, whether that's quick fix in the old days or architecting clouds, integration, so that's a big part of their revenue. So they want to make money, that's code word for money. So how will you guys shift in the economics to enable the partners to wrap their own unique services. It certainly makes sense in foreign markets, but across the globe, that's a big challenge. How are you rolling out for them, at the same time, bringing the big accounts to them? So how are you enabling me to wrap my services around them? >> And that's (mumbles) going back to your point or to your first question when I said the economics are changing, so we need to follow up the new economics. The channels, as you said, they make a good part of their business is about implementation. Once you go to the cloud, though, this part of the business reduces by one third, because in the cloud, you have less of a share of this service. So the service share is reduced by one third. So what you need to do is to compensate that with what we call an ARR, annual recurrent revenue, from the cloud. So we are building business model, and I launched that last Monday, our cloud business partner new business model, which is give the partners a ARR, annual recurrent revenue, because service is good because it's recurrent revenue. Once you sign a service SLA, a service contract, you don't have anything, but you have a recurrent revenue with that, but this is going to be reducing in a cloud, so we will compensate that, and that's the idea-- >> So you're shifting the dollars into the same consumption model, the cloud, with some sort of subscription-like or recurring revenue model. >> I'm willing to cut a share of my revenue with my partners, from the cloud. >> Well, you might be able to get it back longer term, but it's that up front. >> Yes, yes. >> Peter: So typically you sell up front, you pay for the sales guy up front, and a lot of these partners say, "I can afford to wait for the--" >> Now it's more of a recurrent revenue battle, so I'm willing to get a share of that to split that with my partner for more business. >> So you're financing their business model transition? >> Rodolpho: That's it, yeah. Transition, that's the word. >> Their fear that this transition, because they're on paper, they're getting cut, so they have to have an immediate pop, change, so you're financing that over the long term for the relationship. >> Well we are willing to have this conversation, and the new business models that we are developing, and we introduce it here, they actually address that in a very, very programmatic way. It's not a one-by-one, it's not opportunistic, and by the way, you said the channels, we are getting channels, we have only 15% of our business from the channel. My business, only 15% is opportunistic, that you come with a transaction, 85% is predictable. 85% is loyal, it's about loyalty. >> Great base. >> Exactly, I want to invest in the channels that are here for the long run. >> Peter: So it will support that business model transition? >> Yes, yes. >> So that's a good loyal base, so they probably give you very candid feedback. >> Yes, please. >> What did they say, no they do, if you have a loyal base, they'll tell you the truth, right? What are they saying? What's the feedback on the new business model? What are some of the examples? >> After I presented on stage and we had the conversation, I had, as you can imagine, a dozen conversations with specific partners that are willing to adopt and sign off. It's just for us to start to roll out, of course, to roll out the new business models you need to think about countries, a lot of the other specifics, but we expect in the next six month to have the whole world covered. >> That's great, and you have the events coming. Thanks for clarifying that. Well, we really appreciate (mumbles), coming on theCUBE and sharing your insights. >> Thank you. >> You're very dynamic, and great guest to come on theCUBE, certainly, we'd love to have you again, and if you need us down in the other summits, let us know. >> Rodolpho: It would be my pleasure, thank you. >> We'd be happy to bring theCUBE. Channel is big, the ecosystem is a competitive advantage, and you guys are looking good as they off the T. This is theCUBE here, live in Orlando. I'm John Furrier with Peter Burris. You're watching theCUBE. We'll be right back. 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>> Voiceover: It's theCUBE covering Sapphire Now. Headlines sponsored by SAP HANA Cloud, the leader in platform as a service. With support from Console Inc., the cloud internet company. Now, here are your hosts: John Furrier and Peter Burris. >> Okay, welcome back, everyone. We are here live in Orlando, Florida, for exclusive coverage of SAP Sapphire Now. This is theCUBE's SiliconANGLE's flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier, Peter Burris. I want to thank our sponsors for allowing us to get down here, SAP HANA Cloud Platform, Console Inc., Capgemini, and EMC, thanks so much for supporting us. Our next guest is Ifran Khan, who is the SVP General Manager of digital enterprise platforms which includes HANA, end-to-end. Welcome back to theCUBE. >> Thank you. >> John: Good to see you. >> Lovely to be back here again. >> John: So, you know theCUBE history. We go way back, we've done pretty much every Hadoop World up until 2013, now we have an event the same day, week Estrada, New York, NSV, and we've been to every Sapphire since 2010 except for 2014, 2015. We had a little conflict of events, but it's been great. It's been big data. I remember Bill McDermott got up there when HANA was announced, kind of, or pre-built before Hadoop hit. So, you had HANA coming out of the oven, Hadoop hits the scene, Hadoop gets all the press, HANA's now rolling, so then you roll forward to four more years, we're here. What's your take on this, because it's been an interesting shift. Hadoop, some are saying, is hard to use, total costs of ownership. Now, HANA's rising, Hadoop is sliding. That's my opinion, but what's your opinion? >> Well, that's a well, sort of, summarized history lesson there, so to speak. Well, firstly, great to be on theCUBE again. It's always lovely to see you gentlemen here, you do a wonderful job. What I'd perhaps just highlight is maybe some of they key milestones that I've observed over the last four or five years. Ironically, 2010 when I arrived at SAP, when the entire, sort of if you like, trajectory of HANA started going in that direction, and Hadoop was sort of there, but it was maybe petering out a little bit because it was the unknown, the uncertainty of scale in whether or not this is going to be only batch or whether it's going to ever become real-time. So, I would maybe make the two or three milestones from the SAP side. HANA started off as a disruptive technology, which was perhaps conceived as being a response to a lot of internal challenges that we were running into using the systems of record of yester-era. They were incapable of dealing with SAP applications, incapable of giving us what we now refer to as a digital core, and that were incapable of giving our customers truly what they needed. As a response, HANA was introduced into the market, but it wasn't limited in scope to the, if you like the historical baggage of the relational era, or even the Hadoop era, so to speak. It was completely new imagined technologies built around in-memory computing, a columnar architecture, and therefore it gave us an opportunity to project ultimately what we could achieve with this as a foundation. So, HANA came into the market focusing on analytics to start with, going full circle into being able to do transactionality, as well, and where we are today? I think Hadoop is now being recognized, I would say probably as a de facto data operating system. So, HDFS is a very significant sort of extension to most IT organizations, but it's still lacking the compute capabilities. This is what's given their eyes a spark, and of course with HANA, HANA isn't, within itself, a very significant computing engine. >> John: And Vora. And Vora a-- >> Ifran: Of course, and Vora, as well. Now you're finishing off my sentences. Thank you. >> (laughs) This is what theCUBE is all about, we got a good cadence going here. Alright, so but now the challenge. HANA's also, by the way, was super fast when it came out, but then it didn't really fire in my opinion. It's swim-lane. It seems now, it's so clear that the fruit is coming off the tree, now. You're seeing it blossom beautifully. You got S/4 HANA, you got the core... Explain that because people get confused. Am I buying HANA Cloud, am I buying HANA Cloud Platform? Share how this is all segmented to the buyer, to the customer, to the customer. >> Sure, I mean firstly, SAP applications need to have a system of record. HANA is a system of record. It has a database capability, but ultimately HANA is not just a database. It's an entire platform with integration, and application services, and, of course, with data services. Now, as a consequence, when we talk about the HANA Cloud Platform, this is taking HANA as a core technology, as a platform, embedding it inside of a cloud deployment environment called a HANA Cloud Platform. It gives on opportunity where customers are perhaps implementing on premise S/4, or even in a public S/4 instance, an opportunity to extend those applications as perhaps they may need or require to do so for their business requirements. So, in layman's terms, you have a system of record requirement with SAP applications, that is HANA. It is only HANA now in the case of S/4. And in order to extend the application as customers want to customize those applications, there is one definitive extension venue, and that's called the HANA Cloud Platform. >> John: And that mainly is for developers, too. I call it the developer cloud, for lack of a better description or a more generic one. That's the cloud foundry. Basically the platform is a service that is actually bolting on, I guess a developer on-ramp, if you will. Is that a safe way to look at it? >> Ifran: Yeah, I mean I think the developer interaction point with SAP now certainly becomes HCP, but it also is a significant ecosystem enabler, as well. Only last week, or week-before-last in fact, we announced the relationship with Apple, which is a phenomenal extension of what we do with business applications, and HCP is the definitive venue for the Apple relationship in effect. >> So, tell us a little bit about borrowing or building upon that. What is increasingly... How should an executive, when I think about digitalization, how should they think about it? Is this something that is a new set of channels, or the ability to reach new customers, or is there something for fundamental going on here? Is it really about trying to translate more of your business into data in a way that it's accessible so it can be put to use and put to work in more and different ways? >> Sure, it's a great question. So, what is digitalization? Well, firstly, it's not new. I mean, SAP didn't invent digitalization, but I think we know a fair bit about where digitalization is going to take many businesses in the next three to five years. So, I would say that there's five prevailing trends that are fueling the need to go digital. The first thing is about hyperconnectivity. If we understand that data and information is not only just consumed, it's created in a variety of places, and geographically just about anywhere now is connected. I mean, in fact, I read one statistic that 90 percent of the world's inhabitable land masses have either cellular or wireless reception. So, truly, we're hyperconnected. The second thing is about the scale of the cloud, right? The cloud gives us compute, not just on the desktop, but anywhere; and by definition of anywhere, we're saying if you have a smart appliance at an edge, that is, in fact, supercomputing because it gives you an extension to be able to get to any compute device. And then you've got cloud, and on top of which, you have cyber-security, and a variety of other things like IOT. These things are all fueling the need to become digitally aware enterprises, and what's ultimately happening is that business transformation is happening because somebody without any premises, without any assets, comes along and disrupts a business. In fact, one study from Capgemini and, of course, from MIT back in 2013, was revealing that in the year 2,000 and 20, 2020 rather, out of the SMP 500, approximately 40 percent of the businesses are going to cease to exist. For the simple reason, those business transformations that are going on disrupting their classical business models are going to change the way that they operate. So, I would just, in a concatenated way of answering your question, digital transformation at the executive level is about, not just surviving, it's about thriving. It's about taking advantage of the digital trends. It's about making sure that, as you reinvent your businesses, you're not just looking at what you do today. You're always looking at that as a line that's been deprecated. What are you going to do in addition to that? That's where your growth is going to come from, and SAP's all about helping customers become digitally aware and transform their organizations. >> Paul: So, you're having conversations with customers all the time about the evolution of data management technologies, and your argument being is that HANA is more advanced, a columnar database in memory, speed, more complexity in the IO, all kinds of wonderful things that it makes possible can then be reflected in more complex, or more rich, value creating applications. But, the data is often undervalued. >> Ifran: Of course. >> The data itself. We haven't figured out how to look at that data, and start treating it literally as capital. We talk about a business problem, we talk about how much money we want to put there, how much people we want to put there, but we don't yet talk about how much data is going to be required either to go there and make it work, or that we're going to capture out of it. How are you working with customers to think that problem through? Are they thinking it through differently in your experience? >> Yeah, that's a great question. So, firstly, if I was to look at their value association with data, we can borrow from the airline industry perhaps as an analogy. If you look at data, it's very equivalent to passengers. The businesses that we typically operate on are working on first and business class data. They've actually made significant investments around how to securely store, access, process, manage all of this business class and first class data. But, there's an economy class of data which is significant and very pervasive, and if you look at it from the airline's point of view, an economy class individual passenger doesn't really equate to an awful lot, but if you aggregate all the economy class passengers, it's significant. It's actually more than your business and first class revenue, so to speak. So, consequently, large organizations have to start looking at data, monetizing the data, and not ignoring all of the noise signals that come out of the sensors, out of the various machinery, and making sure that they can aggregate that data, and build context around it. So, we have to start thinking along those ways. >> John: Yes, I love that analogy, so good. But, let's take that one step further. I want to make sure I go on the right plane, right? So, one, that's the data aware. So, digital assets is the data, so evaluation techniques come into play, but having a horizontally traversal data plane really, in real time, is a big thing because, not only do I go through security, put my shoes through, my laptop out, that's just IT. The plane is where the action is. I want to be on the right plane. That's making data aware, the alchemy behind it, that's the trick. What's your thoughts on that because this is a cutting area. You hear AI ontolgies and stuff going on there now, machine learning, certainly. Surely not advancing to the point where it's really working yet. It's getting there, but what's your thoughts on all this? >> Yeah, so I think the vehicle that you're referring to, whether it's a plane or whatever the mode of transportation is, at a metaphor level, we have to understand that there is a value in association with making decisions at the right time when you have all the information that you need, and by definition, we have created a culture in IT where we segregate data. We create this almost two swim lane approach. This is my now data, this is my transactional data, and here's my data that will then feed into some other environment, and I may look to analyze it after the event. Now, getting back to the HANA philosophy from day one, it was about creating a simplified model where you can do live analytics on transactional data. This is a big, significant shift. So, using your aircraft analogy, as I'm on there, I don't want to suddenly worry about I didn't pick up my magazine from Duty Free or whatever, from the newspaper stand. I've got no content now, I can't do anything. Alright, for the next nine hours, I'm on a plane now and I've got nothing to do. I've got no internet, I've got no connectivity. The idea is that you want to have all of the right information readily available and make real time decisions. That calls for simplified architectures all about HANA. >> We're getting the signal here. I know you're super busy. Thanks so much for coming on theCUBE. I want to get one final question in. What's your vision around your plans? I'll say it's cutting-edge, you get a great area, ecosystem's developing nicely. What's your goals for the next year? What are you looking to do? What are your key KPI's? What are you trying to knock down this year? What's your plans? >> I mean, first and foremost, we've spent an awful lot of time talking about SAP transformations and around SAP customer landscape transformations. S/4 is all about that. That is a digital core. The translation of digital core to SAP should not be inhibiting other customers who don't have an SAP transaction or application foundation. We want to be able to take SAP to every single platform usage out there and most customers will have a need for HANA-like technology. So, the top of my agenda is let's increase the full use requirements and actual value of HANA, and we're seeing an awful lot of traction there. The second thing is, we're now driving towards the cloud. HCP is the definitive venue not just for the ecosystem, for the developer and also for the traditional SAP customers, and we're going to be promoting an awful lot more exciting relationships, and I'd love to be able to speak to you again in the future about how the evolution is taking place. >> John: We wish we had more time. You're a super guest, great insight. Thank you for sharing the data here >> Ifran: Thank you for having me. >> John: On theCUBE. We'll be right back with more live coverage here inside the cube at Sapphire Now. You're watching theCUBE. (techno music) (calm music) >> Voiceover: There'll be millions of people in the near future that want to be involved in their own personal well-being and well--