 With Sanjay Pune ahead of SAP's mobile strategy, let's go live to the podium right now for the introduction of Sanjay Pune Cube alumni. We're going to try to get them on. Here's Sanjay right now. Good morning, everyone. Greetings from Sapphire now, Orlando, and welcome to the Mobile Security Press Conference. I'm Bonnie Rothenstein, the head of mobile communications at SAP, and I'm pleased to have you all with us today. Three years ago last week, SAP announced the acquisition of Sybase and our intent to unwire the planet. Since then, SAP's momentum in the mobility marketplace has grown by leaps and bounds. Today, we're here to dive deeper into the mobile security landscape, which is increasingly becoming a business imperative for companies large and small across the globe as they address the influx of devices in the workplace. The consumerization of IT and BYOD trends have put increasing pressure on the IT departments, where they have to provide not only enterprise-grade security to secure the devices, but also the content and the apps used on those devices. In just a moment, I will introduce Sanjay Pune, president of SAP's technology solutions and head of our mobile division to get us started. I'd also like to wish a warm welcome to those of us who are joining us on the internet. We will be taking questions throughout the press conference on the web, and you can send those questions to press at sap.com. With that, I'd like to introduce Sanjay to the stage. Thanks, Sanjay. Thank you. Thank you, Bonnie. I am a relative newcomer to the mobile space, having now run this division over the last 18 months, but Bonnie has been with us from the get-go, and I really appreciate her leadership in getting our message out. Sanjay is a very, very exciting day for us as we continue down this transformation in un-wireling the planet, and we want to share with you some very exciting news that we think is going to change the fundamental landscape of the industry. Quite frankly, I think rock the industry in some key ways. So let me just get right into some of the key aspects to set up why we're all here and what we're doing that's incredibly special. If you think about where we have set a vision in the marketplace to play out in enterprise mobility, we today are ranked and regarded by the analysts as a leader in enterprise mobility because we've specified a portfolio that is the envy of the industry, the most comprehensive end-to-end focus on not piece parts, but a solution. We believe the world of mobile device management is becoming one of mobile security, and that's really the biggest part of our team today. We think that the roots of what we've done in analytics on the desktop or in big data and HANA stretches into the mobile device. There is no analytics of data if it's not relevant to the mobile device. Number three, we think that just the same way they were middleware and application serving companies that became dominant in the client-server world, there's going to be mobile platform companies that help you build mobile apps in the mobile apps world. We want to take the advantages of what we've done in industry-specific applications in the mobile world, in the client-server world, to the mobile world and build a whole range of mobile applications for retail, for banking, for consumer package goods, and then much of the world still works in a messaging infrastructure where we've had to lead. This entire business, our mobile portfolio, is today what we call our enterprise mobile portfolio. We think some company is going to become the apple of enterprise mobility, and we hope that company will be SAP. In each of these areas, our focus is to build best of breed yet integrated product. As we've done this, we've been very fortunate with the partnership of our customers to already in just two years, two and a half years, build a very large business. Just the first four parts of that business we reported last year was 220 million euro in licensed revenue, just licensed revenue. And that was about zero two and a half years ago. If you add the messaging infrastructure business, it's significantly bigger than that. That would make businesses like mobile and HANA some of the fastest growing businesses in the industry. We have a thousand plus people dedicated to R&D across the company focused on mobile. We have today 6,000 customers, and we had zero two and a half years ago. And really the customer focus is really a big part of our success. We focused on a number of system integrators, VARS, and the one I wanted to point out here is OEMs. We have 70 plus MITO and OEMs. One big one we announced two weeks ago at their conference, CA Technologies, is betting their mobile device management product on ours. So this is an example of the business success we've had so far in the market. But we think this market is really poised for an even bigger opportunity if you go well beyond devices. One of the pleasures or agonies of living on the West Coast is you're in the worst time zone relative to any other part of the world. So I often get up at 5 a.m. for a conference call with Europe. I get down to my home office at 4.30 and I find that the conference call was cancelled by some very considerate person overnight. Well, imagine if my alarm clock that's right next to my bed could communicate to my calendar and automatically set my alarm clock because it's on the Internet back by an hour. And then begins a day where all of my meetings are adjusted. The coffee maker is an hour later. My car tells my phone, for example, that the air pressure or the gas level is down a little bit. I get to work and my phone's notified that my refrigerator has milk levels that I low. I walk by a grocery store and it also promotes me the yogurt that's on sale at that very same grocery store walks me to the aisle where the grocery store has that yogurt on sale. I use a promotion that's on my phone and then on my way back home I adjust the thermostat of my home, of my phone. This is a very exciting world of what we believe is the Internet of Things. And what is your phone today will be your refrigerator or your thermostat or your vending machine of tomorrow. This requires a whole bunch of security because when you send a print job to your printer you might think the printer's right next door to you, but in fact there could be a malware sitting somewhere there on a machine transmitting your document to someone suspicious. This world is going to require us to think about mobile security in a whole new way. So as we prepared for this we fundamentally rethought the landscape of mobile security and we're here to announce something that's going to be pivotal we think in the reshaping of this industry. Specifically today if you look at this industry most of the tactical startup vendors are focused on a very niche problem. It's called mobile device management. It's an important problem. And we think this is something that needs to get started in terms of bringing your own device but it doesn't end there. We think this problem as it's being unveiled needs to be done in an economical, reliable and scalable fashion and we're going to announce something that's absolutely pivotal in this mobile security area. But the next layer of what we think is going to be very essential is the managing not just of devices but an explosion of apps on this iPad or your iPhone or Samsung device. And mobile application management is going to become just as important as mobile device management. In fact probably more important because there are more apps than there are devices. On average there are about 40 apps on every device and there are more potential places where these apps could run. It could run on kiosks rather than just devices. We think there's also going to be an exploding world of content. If you're worried about content that's sitting outside the firewall on Dropbox or Box or SkyDrive you might want to have a secure place where that content could be arranged inside the firewall. You need a mobile content management solution that's scalable. You need a telecom expense management and a variety of other services that go well beyond just the ability to have piecemeal ways by which you handle telecom expense management. And eventually as I mentioned the phone of today becomes the vending machine of the thermostat of tomorrow. So when you rethink this world of mobile security you look at this problem in a very different way than just very tactical mobile device management and that's what we've done. After reframing this as a mobile security problem we believe that the types of DNA, the types of chops of companies that are going to be successful are not just companies who have a management view of mobile but also a security view of mobile because if we think about threats in the laptop world which required antivirus we've not seen the type of threat that's going to happen in the mobile world in the world of cyber terrorism. So as we look at this the first part of our announcement we're very excited today is to announce a resell relationship with a very strategic partner. We're honored to have Adrian here in a second. We're going to have him on stage. He's the CEO of Mokana and as we scoured the industry we look for those startups that we could partner with that had a DNA that's very similar to what we were looking for in mobile security. We talked to our customers and we found many of our customers were looking at them in the highest levels of security in the federal government, public sector, defense agencies, banks and we found that this company small as they were but having some innovative technology could really bring a lot of innovation to the big SAP. And as you know SAP doesn't believe we can do it all ourselves. We love partnerships, it brings to us added DNA, it brings us innovation and the good news is they're also in the Silicon Valley very close to us. So the nation of mobile security and app wrapping Mokana does this we think better than anybody else in the industry. We will integrate this into our product and offer now to our customers officially as of today ready to go mobile app management from SAP courtesy Mokana. The second aspect we think is going to be completely groundbreaking in the aspect that we're excited to announce about today and I had to bring sort of this curtain metaphor because this thing is really we believe going to rock the industry to the foundation. We are announcing today a web solution completely in the cloud called SAP Mobile Secure. It is for the first time a scalable reliable mobile device management solution at the lowest cost of ownership you will find on the planet which I'll talk about in a second. But this brigham is a solution where all of the capabilities of what you saw on a faria is now capable in a cloud solution with the capabilities of analytics that's always distinguished us with the capabilities of scalability with all of the mobile leadership that's made us number one in this market now available in the cloud. We think if you're going to manage a location of a billion devices in the world you can't do this one off. You need to do this in a cloud infrastructure. We've learned a lot about the cloud at SAP over the last several years. Most of the vendors today are doing it in legacy dinosaur on-premise architectures. We're going to be the first to become the cloud solution for mobile secure and here it is. So we're very fortunate as we do this we also thought about the economics of how we're going to do this and everybody today is sort of priced as sort of a very expensive airline flight. We took a couple of lessons from Southwest Airlines and said if we're going to do this we're going to do this in the most economical fashion that's going to rock the industry. Now I know price is not usually something that SAP prides itself in but here we're making some changes and we're setting some new ground where we will offer today effective today a one euro per device per month mobile device management solution for all of the capabilities this makes us officially the lowest cost of ownership solution by a huge mile. This solution will power all of what we believe many of the companies that need a scalable configurable solution without the worry of upgrades can do in the cloud. In the future you will see the capabilities of HANA being able to appear there beyond just the analytics that we have and as we did this we decided to do this in partnership with a couple of companies that helped us do this. First off we went to the company that is known as the leader in infrastructure as a service because if you're going to be reliable and scalable at that price we've got to make a profit margin but we've also got to make sure that we're doing this on a reliable scalable infrastructure and the leader in infrastructure as a service is Amazon AWS. We've had a strong partnership with Amazon in a second. I'm going to share with you a video from Andy Jassy, our good friend. Andy and I were classmates at business school. We've had a strong friendship over the last several years and it was a very natural place for us to look at their elastic cloud as a location for the most scalable infrastructure. We're also very fortunate to be partnering with Capgemini as we built out an engineered service solution with some of the IP that they brought in. We've had an existing relationship with Amazon. We had an existing relationship with Amazon. The triangle really made sense to make this a very, very scalable solution. So as we play this out, before we get to the panel I thought the best thing we could do is actually show you the solution and the best person to do that at SAP is Ian Kimball. So Ian, take it away. Thank you very much. Thank you very much, Sanjay. Let's give him a hand. Okay, well, perhaps after the demo. Sanjay has said, ladies and gentlemen, what we're trying to do here is enable people to be able to manage all of the content, all of the apps and the devices that they want to. Our largest Afaria instance is over 100,000 and this is a beautiful scalable solution we have here. So if we can switch to PC number one, all of you today can now start using the cloud edition of Afaria. All I'm going to do is to start it up. You need to go to sapafaria.com and up will come this delightful screen here. You can see you have information about the cloud. You have information about the solution, what you can do with it, but what's interesting here is unusual for SAP is get a free trial. Now, all of you can do this today. You can go home. You can get a free trial. All you need to do here is click on this button. You've got 30 day free trial. You can then get all of your sons and daughters and relationships device registered and you can see what they're doing, perhaps. OK, so anyway, I'm not going to do that now. I'm not going to fill in all, well, it's not a big form. Obviously, we've already set up a quick trial. So I'm going to log in here now. I'm just going to simply log in with the one that we've done, SAP demo and the password. I'm going to simply log in. And hey, Presto, here I am inside my console. And I can see everything I need to do here. Up here I have my administrative console reports and enroll devices. So let's just see how easy is it for a company now to be able to enroll a mobile device inside their organization. Sanjay, do you have a device? I have a device that's one up here. Yeah, but come off it. I know you have devices hidden all over you. So come on out with them. OK, I got one in my pocket. OK, so that's an Android. That's easy. We can enroll an Android device. Come on, keep coming, come on. OK, I got another one hidden somewhere here. OK, keep them coming, come on up, right? That's a Windows 8 device. That's also no problem to do that one. Come on, keep, keep, keep coming, coming. No, I know you've got more. Come on, give. I think I got like one hidden. Oh, right, OK. All right, I got one here. OK, yeah, you can put it there. That's my plywood. Right, OK, right, OK. You don't need to touch that. It was on my shoe. Believe me, I'm not going to. So ladies and gentlemen, we can enroll just about every single device. Android, iOS, Windows 8, no problem. Let's have a look at how easy that is. I'm going to enroll a device as we speak. Now here, I simply click here on enroll device. I'm going to give it the username of, we'll call it Sanjay. Call it Sanjay, I don't know, 9. We'll give you a password and an email address, Sanjay. We'll do your personal one, Poonan123 at gmail.com, gmail.com. And all I need to do now is to simply submit that. And what, oh, I've spelled the name wrong. That was embarrassing. Let me redo that. Yes, that wouldn't be the first time, would it? But anyway, so let me just enroll that device again. We'll just do that one again. We'll do call it Sanjay. We'll call it zero now. Sorry, American keyboard, which is why I'm having the problems. Sanjay Poonan123 at gmail.com. And what will happen now is I will just simply then, now we're going to write, send that off there, please wait. Now what will happen is, let's switch to the iPad. This is my iPad. This is your iPad, so open up your email. Just open my email. And you'll see again, obviously mail is coming in. Here it comes. We've got one that we've, no, no, wait. That's the one we did this morning. There should be another one arriving any second now. This is, of course, not the Afaria client that's at fault. It is, of course, the lovely internet connection we have here. Okay, nothing coming. Okay, well, we'll use the one we did earlier then, shall we? All right, okay, fine. So all you need to do is click on that. Am I access? Here we go. Click on there. And then all you need to do here is click on the box saying, enroll your device. Geez, as simple as that, huh? And then you just then simply enroll your device. And then you'll need to install Afaria. And then click on that button and, hey, Presto. It's then enrolled in my system here. So now, if we then switch back to the, hold on a sec. If we switch back to the PC, what we're going to do now is we're going to have a look at the administrative console here on the PC. What I'm going to do now is just log into that administrative console. And what we've done is we've done a lot of design thinking. So we've seen how easy it is to get a trial, how quick it is to enroll, and now to manage your devices. And we've used design thinking now to manage then how this would actually look. What we've done here is we have the devices. We have groups, which obviously then you can assign multiple either applications or users to groups. And then you can apply policy to those groups to say, yes, of course, all salespeople can then have access to the CRM system. All managers can have access to management reporting. At lastly, down the bottom here, we have the server that's actually running on that you can manage. Let's just have a look at how easy a policy is to actually work with. So for example, let's have a look at your device, Sanjay. We've just registered your device here. So we're going to have a look at a policy here. We've got lots of policies here. Have you been a good boy? Have you been selling a lot? Man, I can't believe that. Well, have you been selling a lot? I try to. You've have been selling. OK. Then what we're going to do here is we've got a special policy for him, which is the Angry Birds policy. So what I'm going to do now is look at the Angry Birds policy here. And then what I can do now is through this policy, I can give him either then the full day pass to be able to play Angry Birds, or I can give him a five minute card to actually do that. So that's how we can manage devices inside an organization by creating these policies, allowing people to access exactly the applications that our organization would like them to access. So finally, we've now shown enrollment. We've shown how easy a policy is. And finally, what we can also do is show reporting. Now we can do reporting obviously straight from the PC, or we can also do reporting here from the mobile device. And if we switch now back to the iPad, you can see here an example then of one of the Afaria reports that everyone has available, available on the iPad, where I can then look through here, see then exactly what devices have been used, how many registrations have gone on, if anyone's been doing anything they shouldn't do. All of this is reported here inside the mobile device. So that's it, ladies and gentlemen. That is it today. You can go out and log in and get the scalable platform that you can then use to manage the device. Any company can actually do this. You can see how easy it is to set up for a 30-day trial. You've seen how easy it is to enroll, to manage, and finally report on there. And that's the power of what we can do now with the new SAP in the Cloud Afaria offering. And we look forward to you writing lots of nice stories about it. Thank you very much. Ladies and gents, give it up for you and Kimball. Thank you very much again. Great. Now you'll see something as simple as that last screen, for example, is the power of what we do in analytics, business objects, mobi, predictive, all of that great stuff brought into the mobile world. It's not like we invented a new BI product. We took what we do in analytics very well and mapped it into the mobile world. We believe as a billion devices get added to this network, we will add HANA as the infrastructure underneath us, also sitting potentially in the cloud, where you'll get all the benefits of big data. So we're looking at this as an opportunity not just to innovate in mobile, but we think the world of big data, analytics, and mobile is the new oil of the economy. If you think about ERP, the R in ERP was resource planning. And SAP invented that resource planning for the industrial economy. We think the new information economy, the oil of this new economy is gonna be big data, analytics, and mobile, and ways in which we can make something as simple as provisioning devices as simple and easy to be able to do. Okay, we're gonna switch now to the panel, but before we have the panel, Andy Jassy from Amazon was not able to attend in person, but was very gracious to share this video. So let's play the video for Andy Jassy while we get the panel ready. Hey guys, I'm sorry I can't be with you today, but I wanted to tell you how excited I was about the launch of Aforia, powered by AWS. As many of you know, for years, we've been working closely with SAP to methodically certify all of their products to run in production on top of AWS. And that ranges from business objects of business suite and HANA 1 and now Aforia. And customers are really excited about this, and we've seen adoption of SAP products on top of AWS really accelerate through time. And that's because customers wanna be able to run the SAP software they love, but do it on AWS. Because if you can run it on AWS as opposed to on-premise, you get to trade capital expense for variable expense. You get a lower variable expense than you can do on your own. You get perfect elasticity. You get to scale up seamlessly and shed resources when you don't need it anymore. And you get much more agility. You get to move faster. And with the way competitive environments are changing so quickly today, and with how many companies are adopting the cloud, if you're an enterprise not using the cloud, you're at a big competitive disadvantage. Now, Aforia on AWS is a very natural extension of our relationship with SAP. With the proliferation of mobile devices in the enterprise, it's a tough problem for enterprises to manage that. And if you have the opportunity to have a product that does the operational piece of that, it manages the security, it manages the upgrades, it manages the disaster recovery, it manages the infrastructure, that's really compelling. And that's what Aforia, powered by AWS does. And it's a real game changer. It's faster, it's less expensive, it's easier to operate. And at a price of one euro per month, you have to take a look at that. So I want to thank you for listening to me. I hope you enjoy the rest of the conference and check out Aforia on AWS. It's really a game changer. Thank you very much. Let's welcome the panel on stage. Adrienne, Adrienne Turner from Mokana, Dan Himelman from the Enterprise Mobile Lead from Rubizol, Mike Pellegrino, CIO Sun Products, and Fernando Alvarez, Mobile Solutions Lead from Capgemini. Thank you gentlemen. Okay, Adrienne, maybe I could start with you. You know, I'd love to get a little bit of a sense from your perspective of mobile security and what sets you folks up as, you know, kind of a leader in mobile security. How have you built the company? What's the DNA of the people in your company? And what have you done so far in building this great innovative startup? Great question. So there's a lot of talk about mobile application management. And we think that management is really a misnomer. It really is a security problem first. So Mokana started out actually securing the internet of things. So the DNA of the company we're a security software company. We understand the intersection of software and silicon. We secure today everything from aeroplanes, trains, medical devices, smart grid infrastructure, and have a DNA that really centers around understanding the changing threat landscape and quality. High bar in terms of quality, which we're now applying to the mobile application market. It's great. Thank you, Adrienne. Dan, I'd like to go to you next. Lubrizol, we've obviously had a great relationship as a company. You've been one of the early adopters, even as you looked at a faria on premise at looking at in this cloud. What was the reason for your interest in the cloud and how do you think the promise of that could potentially help at Lubrizol as you've been thinking about the transformation of Lubrizol to a mobile center company? But Sanjay, it's all about speed. And what we're trying to do in trying to keep up with our competition, keeping up with my business customers, is how can we offer solutions faster to my business customer? If I don't have to rely on the infrastructure that sits underneath the product, I relieve the time necessary of getting the implementation up and running, time to delivery in getting solutions to my business customers faster. But I don't also have to worry about the support and the cost of having this infrastructure component. I essentially focus my team on the things that add the highest value to my business customer. Awesome, thank you, Dan. Mike, I'd like to get to you next. You're obviously a leading provider, a laundry detergent, a number of different products that we use in our homes. Thank you. And obviously for a company that's building those type of product, as you think about the cloud strategy in your mobile arena, how have you thought about how it could transform us? And maybe you could tell us a little bit also about your mobile strategy overall. Sure, we're just at the beginning of exactly what you had presented before, Sanjay, in looking for mobile device management strategy. But I'm also thinking about the future and where is this going to go? And we need to be able to wrap security around that and we need to be able to do mobile application management as well. And so choosing the right foundation for that is critical to me. I did not want an on-premise version of a mobile device management product. And I also wanted to work with a partner who also had that vision for the future. Instead of relying on maybe just a mobile device management solution, there's more to it than that. And everything that you had presented before is key for me and key for our company as we continue to roll out mobility. Fernando, you obviously have done a bunch of work with Amazon prior to this, you've had a good relationship with them, have been watching obviously as an expert in the mobility space a lot of what's going on. What have you seen in the mobile device management market and how that's been moving increasingly to the cloud? First of all, thank you for allowing us to be here and be part of this. It's a dream come true. We've been working on this for a long time in terms of the concept. Security, security, security, security. I think you're underlined that today is what everybody's very much paranoid. And the other area is I don't want to have it on premise. I want to have an OPEX red and a capital expenditure. And this is a perfect subscription model that takes care of that in a very scalable way. So the reliability of Amazon, the scalability of it, the partnership that we have forged together with three brand names and be able to scale it and deploy it fast in such a way that we can manage the expectations of customers. We have done some trials and we can easily put 6,000 devices in nine minutes up and running. That's a game changer. It completely changes the dynamic of the market. Fantastic. Mike, if I could go back to you. As you think about mobile devices that either you hand out or bring your own device strategy, how do you and your company think about security on there? Secure email applications on there, the authentication, all of that. It's a fairly complex topic. It's a little more complex than what exists in the laptop world. How are you thinking through the complexity of security? Well, Dan and I were talking about this earlier. It's the cows out of the barn already. So in terms of mobile devices, mobile applications, people using them for businesses, the proliferation of devices in your environment, it's already out there. And so what we need to do is we need to figure out the best way of putting security around that without stopping business. And of course, you need the wrapper around that to be able to do it. And you need to be able to do it quickly. Prior to today, we were mostly a blackberry shop. And so we had all the mechanisms in place through that solution. And now with Apple platforms and Windows 8 and everything else, we need another product that can do that, that can wrapper the mobile device management as well as security and then set you up for the future to be able to do application management as well. Adrian, I have a two-parter for you. One is maybe people perceive you need this level of security only for certain types of companies, very big companies or companies on the highest levels of security in the Defense Department or banks and so on and so forth. Is this applicable for companies in any industry and any size? Well, I think the reason people think that is that historically there's been a trade-off. You've had to give up user experience in order to get higher levels of security. And that's just not the case with our approach. So point and click applicable to any application across Android and iOS. And the reality is, no, good enough is not good enough anymore. So we see it in regulated industries. But a byproduct of the design is now you can secure an application on a device that you don't have management control of. So now we're talking about enabling a whole new class of use cases around the extended enterprise. Now I can serve as partners, customers, employees, contractors, all with the same solution. Dan, I'd like to come to you and then I'm going to come back to you Adrian in a second. You're obviously doing more with mobile than just security. You're building out mobile apps, some of them on our platform. And the real promise is apps. Tell us first off a little bit about what your device landscape is, iOS, Windows, Android. And what types of apps are you looking to build out for your business so that your business is demanding from you? Well, we started about two years ago really focusing on an iOS platform. The problem that we ran into very quickly was iOS across the enterprise made it very difficult to replicate the experience that a business customer and end user would have at their desktop. It simply can't be done. So our focus now is broadening the range of devices that are available to our end users to give them selection. So by allowing them to now focus more on the availability of Windows 8 devices, which is fits our environment significantly more. But in addition, expanded into even Android devices, the idea that what Lubrizol is trying to push is choice. And the more we can offer choice to my business customer, the more they understand that we as IT are a true business partner. Very quickly, Fernando and Adrian, I'd like to talk about two use cases of mobile that may be applicable. First, Fernando, with you. What are some of the application use cases of mobile that you're seeing? So clearly there's a mobile security tool use case. But what type of mobile apps are you seeing businesses asking you to build in your consulting system integration business? We see people want to get their feet wet slowly. We see a lot of requests from workflows. You're launching a product suite tomorrow, today, on Fiori, a lot of workflow applications to test the platform mass volume of usage for executives. But we also see the more complex apps, the field service technicians with Cyclops, applications that we are co-developing in direct store delivery, mobile sales and execution. So we see the whole angle, and all of them requires a very strong security element, specifically with the bring your own device concept. So we see them all, one in more basketball and consumption of workflows, all the more laces focused on a particular functionality and role of a company. Adrian, one last question before we turn it over for questions from the floor. Clearly, we talked a little bit of machine and machine in the Internet of Things, and this is something you guys have some deep roots in. What's a little bit of the vision of where this is going? That will help us sort of sleep at night knowing that the thermostat and the refrigerator is not going to be at risk with the types of ways in which you guys have been thinking of mobile security in the future. So if you think about mobile security, I mean the car is the ultimate mobile convergent device. So you have a lot of devices beyond phones and tablets that are attaching to application stores, business electronics, automotive, consumer electronics. So first of all, there's an opportunity to secure those applications. And then secondly, you said it really well that the phone is effectively becoming a remote control for the Internet of Things, and on that phone is an application that's going to be a control point for these connected devices. So it's another opportunity to apply the same technology to a new market. Gentlemen, the customers, I got to ask you one question. Have you ever seen SAP with a price point of this kind in your lifetime of dealing with us? Never. Never seen him go public. All right, okay. No, it might be a statement of our discounts. But no, it's good, the pricing is excellent. Good, okay, I guess I'm welcoming Bonnie back on stage to facilitate questions from the audience or from the web channel. So Bonnie, take it over. It's one in the back. Okay, great. So we're now going to joint start the Q&A portion. What I'd like to ask of everybody in the room, please wait to be recognized. We do have people with microphones in the back. Raise your hand, we will get you started. If you would, please stand up, introduce yourself, and then ask your question. And then once again, for those on the web, you can send your questions to press at SAP.com. We've went back here. Okay, from SAP, SMB group. I have two questions. The first one's really quick. Is mobile secure the same thing as Afaria Cloud? Very good. So we've branded the umbrella offering for that entire four bubbles, mobile security. And the umbrella offering is mobilesecure.com. Afaria is our brand name purely for the MDM component, the mobile device management component which we're offering in the cloud. We expect many of those other services will also show up as cloud services. Afaria is the product name for that one small bubble I talked of as the starting point, offered now at one euro per device. Mobile secure is the brand name for the entire offering. Okay, that helps. And then my more complicated question, I guess, is how do you, you know, the customers up there or the partner, how do you help companies, you know, they are all using BYOD policies, but managing the devices that maybe the customers actually bring in so that you can reward them with Angry Birds or take it away or whatever. Is there a whole like art and science to that? And how do you coach other companies to do that in a good way? So if I could paraphrase, maybe we'll start with the customers first and then either Fernando or Adrienne, welcome it. How do you think about bring your own device where, you know, a private citizen X who works for you wants to play Angry Birds or you also want to put business apps on there? From my perspective, I'm okay if they want to play Angry Birds. It's a mobile device, it's their personal device, they're bringing it into our environment. What I want to be able to do is I want to be able to control the business applications, the business use of the phone. And whatever you want to do personally is okay with you to a point. If someone brings in a device and they jailbreak it as an example, then I will not allow that on our network. And so we're going to use the, we'll use the mobile device manager to be able to do that effectively. But I don't want to take away the person's personal use of that device. I do want to make sure that they use it very effectively for business. Dan, any quick perspective? Yeah, I think it's interesting that we're kind of looking at Angry Birds as a potential reward mechanism. That's a great theory. The thing to realize is BYOD adds an element that goes beyond just the device. There's multiple facets to it. I think what we see here is not just the device management, but the security component. These things need to work together. The important element in a BYOD, especially understanding privacy laws and security and that these are personal devices, it's encapsulating what needs to be containerized such that I can control that, I can manage that and give comfort to my management to say, I understand what's going on with that device and I have the ability to pull that back. So these components all work together. Next question, Bonnie. You've got one right here. Hi, I'm Sapan Panigrahi from SAP. I have a question on the area of voice activation and voice recognition. Because if you're talking about the mobile phone as the ultimate remote, then you also have to look at safety. How am I gonna unlock my phone? I'm driving and things like that. So any thoughts in the area of use of voice recognition, anything in the area of security? Adrienne or Fernando, you've got some perspectives on any of them. So yeah, I mean there are, in some segments of the market, voice signatures are used as a second type of authentication. And I think there'll be other types of authentication, biometric authentication, that will become more pervasive as well. But the example of locking the phone while you're driving down the road, what we're really touching on is context intelligence and context aware policy and policy enforcement. And that is an area that we're very focused on and that our product really allows. Amanda, any perspective? I completely agree with his assessment. And the good thing about it is that the combination of the agreement plus what Afari offers in terms of features, take care of it. And going back to her question and bring your own device, it's a combination of the features that we know we have from a product perspective, but there is policy. There is, I mean, what do you want to do as a CIO in terms of policy, in terms of roles and function, what do you want to have in that corporate side personality of the device? It's a combination of the two. The good thing about it is your product takes care of it from a technical perspective. The policy is those from customer to customer. That's right. Bonnie? Question back here. Hello, Maribel Lopez with Lopez Research. We've talked about BYD, so assuming that we have the mobile device management taking care of, assuming we have the security taking care of, what are the next issues we need to tackle in mobile to move forward? What will you be working on next? Let me start with the customers. Policy. It's a lot around policy. Understanding that there's more facets to it. Things are not just the hardware. As in who's going to pay for that? Are there going to be issues around stipends and the reimbursements and so forth? That triggers a whole avalanche of additional issues and topics. So to me, it's not just the technology anymore. You have to answer everything in a holistic view and you have to look at all of it at once. It is very large. Mike, any response? Yeah, I would agree. We've spent just as much time looking at the technology and working on the policy for the company. I agree as far as whether you're going to offer a stipend or use cases, what's acceptable, what's not acceptable. It's a tremendous amount of work and it varies by company. And at the end of the day, again, the people who are bringing in their own devices want to do business, but they also don't want you to get locked out of their personal use of the phone, nor do they want any sort of privacy issues. So there's a lot of legality around that and human resources has been involved. And that part of it is a lot of work. I would just add, Maribel, that part of what we're seeing from our customer base as they've taken care of the infrastructure aspect of mobility, security, provisioning, application management, it frees them up to start thinking about the strategic apps that can touch their customers and their customers' customers. And the more that we unlock mobility to not just touch the inside of the firewall but our customers and our customers' customers, a B2B scenario or a B2C scenario, you really start seeing the power of mobility unlock new types of usals you've never had. We had a discussion about the Cisco Foods use case that was visible on the restaurant impossible show on the food network. This is a beautiful B2B app built by us with Cisco Foods to allow restaurant owners to have a B2B relationship with Cisco Foods. We have a number of mobile banking customers where in developing countries, they now have a relationship with their consumers for millions of consumers. So I think the true promise of mobile, just like the Internet of Things is gonna unlock machines, is to get as many of the billion people in the world who have mobile devices to be able to use their mobile apps to interact with the business. If I could just add to that a little bit, and it's especially true for the millennium. I mean, as we saw this morning, that's the way people really would like to work and we have to enable that through the applications that we deploy on mobile. Adrian, quick perspective. Just real quick, very specific example of a big bank that we're working with now. They wanted to roll out 65 mobile applications last year. They rolled out one, because that one meant the security baseline of the bank. So what we see is this tension between IT and lines of business. The line of business wanna create new application customer experience and partner experience, but IT is responsible from a compliance perspective. And I think together with the solution, we're gonna be removing that bottleneck. Yeah, Fernando, quickly, yeah. Just put in perspective the announcement we're making today. One of the biggest obstacles companies have is having this infrastructure in place. Spending a lot of time comparing with people. What do you have? What is the price point? We came to the recognition that this is fundamental and it's such a fundamental thing that we needed to offer in such a way that it's attractive to other way to get over in the decision making process. So we can go then to what the next step is, the mobile platforms and the mobile applications that will take care of their pain points. And mobile infrastructure is just a platform. But now they need to do business and the mobile applications and the platform is the next thing. In conjunction with security, mobile content management, and obviously mobile device management. If we can provide with this announcement a way that you can do it simply, quickly, and cheap, then we can focus our attention and energies on the value of the solution that is gonna take care of their business problems. And that's where we're aiming at. Well said. Thank you, Bonnie. You have a question from the back? Yes, Steve Hilton from Analysis Mason. Thanks for the announcements today. I wanted to come back a little bit to some of the things that you've talked about with machine and machine and internet of things. So, you know, I think really this sort of internet of things world, there may be some cases where the phone becomes, I think you call it the control point, Adrienne. But I think really a lot of the growth in M2M and internet of things are devices that are not phones, and they're not taps completely different. They're not using those OSs that you're showing up on the board today either in the applications or the multiple applications that reside on a unique piece of hardware are extremely different, whether it's cardiovascular disease monitoring or smart metering or whatever it is. Talk to me a little bit about that world and what you think these solutions will do in that kind of world. Adrienne, why don't you start and then I'll offer a perspective. Yeah, so on the other side of our business, the OEM side of our business, we have a software framework that runs across 2,450 combinations of operating system and CPU. We're in all of those devices, including devices that don't have operating systems. So, the set of challenges around those devices is really around securing the remote management interface to the device, tying identity to a device, securing data in motion. And you also wanna be able to trust the data coming from these devices because to your point and to Sanjay's point, when there's 50 billion devices, there's a lot of automation and you can't automate if you don't trust the data moving between the devices. A couple of quick perspectives we would have. If you think about a vending machine as being a generalized bigger case of a phone, there's two things you would wanna do with that vending machine. One is securely provisioned, any of the operating system on that machine with something as sophisticated as our mobile secure portfolio. That's one. And think of that as being able to protect that from being a potential for malware or some virus or whatever have you. But the second opportunity is to take data out of that vending machine, if you would, supplement it with third-party information like weather information that tells you tomorrow's gonna be a hot day and then keep your supply chain ready to stock that vending machine for any hot day in Texas and any consumer package goods company that serves drinks will tell you the difference between a good quarter and a great quarter is being able to get drinks to a vending machine. So what we would also see as an opportunity is taking the data out of those devices. We have some very sophisticated event processing data that we got from Sybase, complex event processing data. Feed that into HANA, mix it with some third-party information like weather information and now make a predictive use case to the consumer package goods company of how to stock that vending machine. So then that vending machine becomes one that you both secure and interrogate for data. And this you can see is a good use case of mobility meets big data and analytics in this world. And that's really why we think and our focus as a company on big data and analytics and mobile and cloud really gets us very ready than just companies who are focused on a very tactical MDM problem. They're not gonna be able to really understand what big data and analytics are. Big data and analytics companies that don't have the roots on mobile security won't understand how to secure that device. So it's a very exciting opportunity we think I had. If I may add to your question and this is the reason why we're doing what we're doing today. In order to tackle the different OSs that are not the iOS and the Android and the Windows 8, you need somebody with the amount of R&D to keep up with it. And you need somebody with the sector knowledge to be able to talk the same language over you implementing. And that is the commitment that we're seeing here to get there. And that is why we all got excited about the offering because this is a stepping stone to that direction. And the combination of the sector knowledge and the R&D that is behind the product to get to that level is what is gonna get the answer to your question regarding the different operating systems that are embedded in all these machines. Okay, I think we've got time for two more questions. Bonnie, go ahead. Got more. Great, thank you for that. Chris Asleton from 451 Research. This question is for Sanjay and Adrian. Can you confirm that the relationship between Mokana and SAP is exclusive from SAP's standpoint for MAM? And then also talk about how it's being deployed and sold. So where it's being bundled with a Faria and then where it's not and kind of what are some examples made from gentlemen from Capcham I could talk about where it's being used or will be used. Thank you. Yeah, we have a very, as we looked at this market, we looked at all the possibilities in this and really picked a very strategic partner. Nothing at SAP and I would expect the same Mokanas ever exclusive because legally we're not allowed to do those types of things. We allow free market, but we believe when you build a partnership you can only do strategic partnerships with a few, often only one. So we looked at this and very carefully we talked to our customers and we're very guided from our 200,000 customers to ask them where they are seeing a market move and particularly in the public sector and banking. Those were two sectors which are highly regulated. Healthcare is another one where we heard a lot of very good feedback on Mokana. One customer was very specific not to call them out to saying of all the companies they looked at and they had done benchmarks again these folks had stood up above the crowd. So that type of endorsement coming from a customer is a very strong one. We see two points of intersection. One is with a Faria and mobile device management and that's clearly one because we see device management becoming tactical over time and commodity and app management really becoming a much bigger opportunity. The second though is our SAP mobile platform where you develop apps. We have an application development platform. You could see Mokana's integration there to allow a developer to very naturally be able to avail of their secure services. Adrian, I don't know if you wanna add anything to that. Yeah, absolutely. I mean, our philosophy is few partnerships and deep partnerships as well and we've put the full weight of the company and we'll continue to put the full weight of the company behind the SAP relationship. Bonnie? Yeah, we actually have a question from the web from R. Hirsch on Twitter. He's asking if Faria Cloud based on AWS who deals with the support? So we have taken on the support services we're assisted by Capgemini also but support services are just gonna be handled just like SAP's cloud. This is an SAP offering. It happens to run on AWS as an infrastructure service but SAP standing behind the support of it just like we have support for other cloud products. We feel fortunate to be able to be assisted by a lot of the engineering that Capgemini had been building with Amazon over time that makes some of those support services significantly easier and that's an investment they've been making with Amazon and that will help us make some of that support even faster. But SAP is not new to the cloud business. We've talked about the fact that the end of this year will be a billion euro roughly run rate getting their cloud type of business and our goal is to get to a two billion euro. So we're not novices of the cloud. We've been doing this now for a while in other areas. HR, travel and expense procurement with Ariba, CRM and so on. We just think in the mobile device management everybody's been on premise with dinosaur architectures. We wanna do this in a more modern fashion in the cloud. Great, we have an additional question over here. Yeah, hi, Vishal Jain, 451 group. So just a quick question on the SAP Aforia on-prem versus cloud hosted private instance versus the SaaS kind of open to all. Would you maintain the instances of these two and how are you going to talk to your customers? So the good news about this and this is the beauty of the Amazon Elastic Cloud. It's one code base. We're not doing three different products, one for on-premise, one for private cloud, one for public cloud, one code base. The beautiful aspect of an Elastic Cloud is you can scale out an infrastructure, make it one that's multi-tenant ready, do analytics on it. We do, however, believe that the pace of how we can do things in the cloud will be faster. It clearly is. We can do things in days and weeks. Clearly, when we deploy things on-premise, you're limited by how fast a customer can upgrade or may want to upgrade. So we expect that we will have a lot of innovation happening on our cloud product and then periodic drops where that will make itself also into a private cloud or on-premise. We're going to be ambivalent. We're not saying that this has to be cloud and nothing else. There's going to be a number of countries and companies in certain countries who say we're not ready for the cloud. The good news is we have a product. We've had a product. We're market leading in that category. What we think as this moves forward, the cloud's going to be the way to go in the long term and certainly in the next three to five years, that's going to be the accelerant in this business. I don't know from the customer perspective very quickly, how do you guys view the cloud in general and then maybe specifically, are you guys opening your customer deployments to a cloud deployment? It doesn't have to be just in mobility. Dan and then Mike. Lubrizol has taken a viewpoint of moving more toward a cloud as a solution. As we look at different requests from the business and as we kind of identify what the solutions are, we look at the pros and cons of each but we are heavily moving more toward cloud-based simply because it allows us to move faster even to become more innovative because for example, that cloud solution might not be our long term, but it's a whole lot easier to spin up something in the cloud, take a look at it, run through an evaluation, even get it installed as a pseudo-production, kick the tires on it to say yes, that makes a whole lot of sense versus buying all the servers, all the architecture and essentially moving significantly slower. Mike, your perspective on the cloud? I agree. Everything that I'm looking at now in terms of new deployments would cloud first and if I have to, I'll go to on-premise but there's really no glory in building infrastructure these days. That's a very good perspective. I would say cloud first, mobile first is what we're finding many of our use cases. Bonnie, do we close or? I think we're ready to close. So I just want to thank all of you gentlemen for being with us today. It's really great and refreshing to hear about all the new innovations taking place in the mobility security space and for those of you in the room, I would just strongly encourage all of you to take a chance to head over to the mobile campus while you're with us here in Orlando. So thank you very much. Good, thank you. And if you have further questions, feel free to come up here. We've got Senthil here, who's the product owner for this area. He'd be delighted if you didn't get a question answered. Just come up here and we'll be happy to share that with you. Thank you very much. Folks that have been affected here on the Lower East Side really need help. Intro package or not? We're going to try to help every person that we can today and we're going to just keep sending out messages. Okay, we're back here live at SAP Sapphire. This is SiliconANGLE's continuous coverage of Sapphire Now exclusive coverage. This is theCUBE, our flagship program. We go out to the events in order to see them from the noise. We just heard from Sanjay Poonan and their team introducing new technology around security and mobile. Obviously we've been covering Sapphire. This is our fourth year with theCUBE since theCUBE was born. And it's fascinating to see the mobility story evolve for SAP and what Sanjay Poonan talked about basically was mobile device management extending out to a whole nother level content management, security and ultimately control. And what we heard today was an announcement where for one euro, actually mentioned euros a little international crowd here for one euro per device an enterprise can manage it all their devices for one euro per device. That's the lowest cost of ownership in the history of the web as we know it today in the world of mobile. So that's a great coup for SAP. The other notable thing is that he ran a video from Andrew Jassy who's a classmate of his from Harvard who's the senior vice president at Amazon and runs Amazon Web Services. We were at Amazon AWS talking about that last two weeks ago. Dave Vellante and theCUBE was in San Francisco for the AWS Summit and behind me they're coming off the podium, press conference. Again mobility, security, the big story a lot of Q&A from the analysts and the press here and the global press corps all wondering is this wrapper strategy going to work? That is something that has people pause. The conversation has always been build mobile devices. Now we're hearing that only rebuild a few core applications and put a wrapper around everything else. That's one aspect of the announcement. The other one was this notion of actually controlling users actions, putting sharing limits only using angry birds or Facebook certain amount of time. This essentially brings us back to the world of time sharing in my opinion. Not sure that's a good trend but certainly from a command and control standpoint a large enterprise can give their consumers a sneak peek but more importantly allows them to look at the activities and manage and monitor all those behaviors. So this is theCUBE, it's our flagship program. This is the mobile press conference. You know in my take on that and we talked earlier with Jeff Kelly here and David Floyer is that mobility is an extension of their existing strategy. In memory, fast HANA database, cloud and mobility is key. Business analytics running at the speed of business is the key and that's essentially what they were talking about. And the big notable announcement here was Afaria which is their cloud for mobility mobile device management and it's run and built on Amazon web services. Key questions come up, who's going to support that? Is this an SAP service as Sanjay Poonan said and Sanjay Poonan is a CUBE alumni and we're happy to amplify his vision. He's got a new job as the head of mobile past 18 months. He's doing a great job. And again, classmate with Andrew Chasi of Amazon web services. So that is the breakdown of the mobile press conferences. We're going to have more wall to wall coverage here. We're going to have EMC. I'm going to have a variety of other guests and we're going to bring back in the Wikibon analysts to kind of break down what's going on. But ultimately, this is going to be the internet of things. The Sanjay Poonan team up there talked about they had Cap Gemini, a couple companies up there started out pointing about the future. And this is about the internet of things. And we're going to break down the internet of things. The industrial internet as General Electric calls it and a slew of other commentary right after this short break. We'll be right back with the Wikibon analysts to break down the mobile, cloud, social analytics and the internet of things and the industrial internet. We'll be right back after this short break.