 Okay, so Sanjay, okay, let's see we live officially now we are officially live we've got Number of folks watching us here and excellent. We had to be here. We had 2000 and we just reset all becoming back 2000 viewers. Yes Outstanding so Sanjay you're the president of the global solutions and go to market. Yes strategies for SAP. Yeah What is that all entail? So I manage the group called solution management in our specialist sales organization that basically takes what You know what comes out of products drives that into the field in the different segments of products that we'll talk about in a second But also specifies what goes into our portfolio in terms of investments into the product So we're the effective glue between development and the sales In each of our segments of products number one technology, which is middleware and net river number two business analytics Which is all of the business objects products number three line of business applications, which is our business suite and fourth industry solutions, so My team, you know drives the revenue growth and customer adoption in those segments So we just had one of your customers on CIO is Andreas Berg He's a CIO of a company in Europe. They do Cranes throughout Europe and Middle East and he said he made the statement. I don't need hardware I don't want to buy hardware. I don't need middleware, but there's everything in the cloud Right. He wants to put everything in the cloud. How is that changing your whole go-to-market strategy? It's a great question. We announced this morning a great partnership with Amazon Web Services the leader in infrastructure Applications sorry infrastructure as a service IAS Andy Jassy who runs AWS there was a classmate of mine at Harvard Business School I called him up Month a year ago and I said listen. We got a partner together. Why because a lot of your infrastructure Is the cheapest way in which you could use infrastructure as a service in the cloud We were finding a lot of our customers wanted to move test and dev type of environments Maybe some of the production environments our own pre-sales guys were starting to demos With the demos running in the Amazon Web Services The advantage is you can take your cost of infrastructure down significantly if you think about your test and devil even something like demos You run a demo for an hour. Okay, and then you turn it off You shouldn't be paying for that compute resource after you're done So utility computing its best is being able to do that so our CIOs now have a way by which a lot of their SAP infrastructure can move into Cloud like Amazon. It's not exclusive. We're going to do the same thing in private cloud situations We announced with Dell Verizon HP are going to see many of them sort of come out And then we will have our own cloud solutions by designs one of them for the mid-market and also for some subsidiaries of big companies And we'll have a family of applications like sales on demand travel man and expense talent management Sourcing Hanna cloud. Yeah, and the Hanna cloud. So there's going to be a family of places where people will deploy on premise Private clouds or public clouds? I'm here with Sanjay Pune And I'm John Furrier founder of SiliconANGLE.com SiliconANGLE.tv located Palo Alto, California The heart of Silicon Valley and I'm here with I'm Dave Vellante and Wikibon.org the open source research and advisory peer community This is SiliconANGLE.tv the leading tech coverage in events live events This is the cube our flagship product where we go to the events were day three here in Orlando, Florida For SAP Sapphire, we go in-depth coverage and Sanjay runs the go-to-market SAP solutions Globally, yes, the global title went to Harvard Business School. We just found out great to have you on the cube Great help make up your great alumni network, you know great deal But so let's get into the nuts and bolts. Yeah, we just talked with your colleague and said hey It's a lock-in on the hand of cloud because you know what this is what our groundbreaking move its first step But we're not necessarily going to make it lock your colleague actually didn't say that we said that you sort of you know Gave us the party line. No, we asked him specifically is it a lock-in and he said yes This is our first go-to-market. It's the week groundbreaking. We're going to do it this way, but this is again We're going to expand on that so so what is the strategy for the cloud? Is it going to be a lock-in SAP only? No, how is it going to be? I think if any yeah, as I'm as I mentioned right no customer once lock-in of any kind openness and choice is good Now certainly as you do more things within a stack you get integration and certainly that's a benefit So if HANA can work better with SAP people may buy HANA and SAP together. That's okay But the the idea of cloud computing for our standpoint is let's start with the on-premise Scenario where customers are using our business suite or business analytics on premise they might decide okay I'm going to move all of these parts into a private cloud or the Amazon cloud. That's not our cloud It's another vendors, but it saves our company cost We work with those cloud vendors to certify our products in that cloud environment And we are what we're doing is then able to lower their cost of infrastructure down They may instead decide I want to run all of my processes now in your cloud for an application You serve up by design or sales on demand or the HANA cloud right in offering people options Where it's an SAP cloud a third-party cloud or doing it on-premise Customers now make their perspective of where they want to deploy we have close to 2,000 people watching right now And we're at SAP Sapphire so share with the folks out there from your perspective The most exciting thing happening right now here at SAP Sapphire I think that the biggest thing that's happened over the last 12 months and leading up to the sapphire There's an energy around this company that certainly in my five and half years and for many of my colleagues have been your 15 years Haven't seen in the last five ten years I think there's charisma and the leadership at the top of the company, but there's also I think of a kind of a crescendo of innovation Around these three vectors. We've talked about in memory mobility and cloud computing that are topical and relevant to a lot of CIOs today CIO magazine did a recent sort of conference and the three themes coming out of that conference happen to be these same three themes So it's not just coincidence and those are our themes of a SiliconANGLE.com very relevant Very very relevant. So when you when you have something to talk about that's relevant, right? And you also have product in that area that's differentiated. It's a great story and it's value And ultimately third part was adds business value, right? We tend to take an SAP not a technology and middleware or you know infrastructure approach to a problem We tend to take a business value application industry approach. That's our roots. We're an applications company And you push into the infrastructure exactly and the infrastructure technology helps us do that So we're always looking for ways by which when we're looking at great technology like HANA How does it add value in a particular industry? Banking? Retail? Utilities? If you heard the Centrica story today in the keynote about the way in which they're going to do smart metering and intelligently meter and the ways in which they can serve customers and Monitor and help them manage their energy. It's a huge story Yeah, it's not Bay was here in the Cube on the first day talking about the innovation cycle That's emerging and I think first of all, I totally agree and I think it's really exciting I think I would add to that is that from our perspective We're seeing on the editorial side is that we were coming out of the worst great Recession ever in IT and that was probably a 10-year recession most highlighted by the 2008 Trough. We're in an upswing. There's the buying IT is changing. There's investment very rapid investments So that's kind of timed into it perfectly, right? So exciting products growing market Teams pumped and that's like the absolute. I mean, it sounds like adventure cap was investment right there Listen, I mean you obviously don't want to you know froth up this to the point where it's unreal Yeah, so I mean I although I tend to be an optimistic person. I think Bill and Jim tend to be that way, too And we have to fire up our troops with the employees and you know at the end of the day our employees and our customers are Two assets the reality is yes customers are now thinking growth rather than cost-cutting 2008 end of 2008 2009 Was a contraction and we're starting to see a modest increase in people's willingness to spend Even some of the emerging markets like Brazil China GDP growth is pretty positive And I think in those brick countries Brazil Russia India China There's growth in even the mature countries even despite we've got unemployment and deep economic issues here in the US There is willingness by CIOs to spend and we think that will hopefully take care of some of the economic challenges We have even some of the markets. How's the pressure on you with the development cycle schnaub base point I'll say other point was 12 months a six month life cycles of software and a lot of iterations on the code You're going to market that yeah, you have again the frothing messaging is great We can all high-five each other, but the bottom line is going to deliver absolutely So the delivery is the proof point. Yeah, absolutely So now you got that pressure the markets gross you demands good, but now you ask with the life cycle of the products How are you balancing that and what's your strategy? The proof is in the pudding, right? Which is okay. We talked about HANA at sapphire last year. It was March April May It was an early formulation. We delivered end of November November 30 We delivered 1.0. You're going to see iterations of HANA Service backs and another major release end of this year that I mean that type of pace three six nine twelve months is You know Unheralded cloud computing say tech athletes and you guys are really in our book You know if we're going to be covering you guys like a sports team We'd say hey you guys got some good athletes on the team right now. Yeah, I mean I that's really what we want to do We want to have great athletes developing code We want to have great athletes selling code and everywhere in between marketing young I mean young developers are big part of the equation, right? Absolutely. We're hearing that earlier Let's be clear I mean you have to balance some of the great young talent with experience in domain So we do both of those there is no age despair and disparagement here But I would also say in some of the new types of applications like cloud computing and mobility People expect to be able to download an iPhone app that's evolved over a day and week You're going to update in the matter of days and weeks. You don't have a tolerance of weeks and months Now for some of the apps that the customers don't have a tolerance On a cycle time to upgrade ERP may get upgraded every three to five years. That's okay So let's have different cycles for some of our products ERP may get it upgraded every 12 18 24 months Business analytics and some of the I systems maybe every three six nine You guys are in that you guys are in the consumer business We heard in the keynote the customers at the center of the value problems and the attention as Shinabe was saying But you're talking about in memory. We call it fast data. That's what we're calling it You're talking about mobility. You're in the user experience business I think how does that change the culture and or it has it not changed the culture? I mean, I think we started getting significantly into the user experience as we moved out of the oil TP Transactional world into the analytical world and then to the mobile world. Let's talk about analytics It's a whole new set of users as a managerial workers They don't have time for a bad user and experience if they don't they'll go and use another tool They'll buy another tool and that's part of the reason why they want to their job and this will fail And that's the reason we bought business objects was we brought not just better user experience We also brought a DNA that needed to change the company. It's helped us mobility same thing We had to bring in turbo charge a new type of DNA. Sybase brought that We're seeing a huge amount of interest you're going to see whole sets of interfaces today I asked my team today To do their entire presentations on a whiteboard no PowerPoint and an iPad demo think about that Revolutionizing TP analytics was the third one mobility mobility Transaction processing is all about the system of record analytics is all about the system of engagement and mobility is all about System of people right so if we can get all three of those moving at different paces the second and third ones have User experiences that need to delight the user And we think that that's a huge opportunity to change the DNA of the way we're doing this on J Big party you go to market is with service providers Yeah, and you've seen a lot of action out here in the show floor at the service providers Yeah, you're talking about a lot of changes Yeah, how are the service providers responding to that? What are you doing differently to bring them along John? I've been talking about the services angle all week here. Yeah, it's a really key part of the ecosystem Can you talk about that? I think if you look at the history of SAP we made companies like PwC originally now part of IBM Anderson now Accenture. I mean large part of their businesses were made on the back of business process reengineering Remember that in the 80s and 90s Michael Hammer and all that stuff Oh, yeah, and that's great And that's part of the reason many of these guys built the big first wave of their business and that's good ERP has given them some growth and quite frankly today good part of IBM's business global services Accenture Deloitte is all driven off that and that's going to continue Because much of the emerging markets are still doing that But as you think about the next wave they're excited about saying listen where some of those opportunities to innovate new analytics great We think the analytics market is going to be just as big as as ERP and many of these folks are right there with us to innovate It could include HANA it could include and for some of these service integrators like an HP and IBM Adele they actually are a hardware partner too because they're building HANA So they get a double-edged sort to be able to go after this market And don't forget about the boutiques. So why we think about the big guys what I love about the service integrator market is these Boutiques in the particular regions are often awesome. Why because they're the best experts this little 15 20 person shop They're winning deals often against the big guys because that they've got the best 15 20 people and that's entrepreneurship and capitalism at its best Right, we want to foster that you guys want the big and the small guys be successful You guys you guys are known in the ecosystem Obviously over the years to experience with SAP is that money makers people make money working with SAP both In the great for the ecosystem and the your customers do well now their businesses grow because of it But with this new model with cloud Yeah, can you comment and the number one question we get from folks is what's what's the new? What's the new value chain? Yeah, where's the white space that need to adjust to where's the money to be made? So question is in the services delivery both on the consultant side and on the services you can expose to Customers can suppose to their customers. What's new? What's changing because that's where the consultancies That's where the guys are like, okay I don't mind reconfiguring the value chain. Yeah, because we're going to make money But so can you share what are the new things that people focus in yeah I think you know in just the same way that if you talked about system integration work and mainframe and cobalt work It changed a client server people weren't doing assembly language programming They were doing and see then in 3g or 4g l system integration and integration consulting work is always going to evolve into a higher levels of Abstraction in cloud computing and so on you're not probably going to do as much of the integration of systems into the back end because people have that Inside their data centers You're going to probably have to use a cloud set of services to build Differentiated applications and logic on top of that. Okay, so the either existing system integrators or a new breed of consulting firms They're emerging that are doing this faster and better and if you think about the early days of the comm That's what happened there, too, right? Yeah, some of them died some of them continue to exist but people were starting to say hey I've got an expertise now doing the web Okay, I think in the same way you're going to develop either existing firms or new firms that have an expertise in building cloud computing based applications Because those are built just happens to be in a different infrastructure But those apps need to be built extended in the mobile world. We think it's a whole new opportunity for people to say listen SAP's got a great platform in the unwired platform They've developed about 20% of the apps that we think an enterprise would need but the remaining 80% On an app store if you would are going to be built by our partners and we love that ISVs and system integrators don't forget about the ISVs and OEMs because they're a very important channel to our success, too Yeah, we're seeing a rise also. I mean we've come at the Stratoconference. We've had the cube there You know data is the heartbeat of cloud because data drives mobility cloud drives mobility So I almost got the three-legged stool data cloud mobile. Do you agree with that? Or do you see that dynamic changing me now see data science is now a big higher-end? Consultancy small or maybe not as broad as like the program. I mean when you talked about the three vectors You called it data cloud mobile I mean if I were to put in front of the data big data you've got in memory I mean so you're talking right through our playbook in some senses That's the reason we found that the data explosion need to be done in a more modern fashion in memory for us Differentiated none of the traditional database vendors have a story in that direction Mobility is extremely rejuvenating to both the analytics and our transactions business And cloud computing for us is the way in which we defend the future I mean as you overlay our editorial for the past two years. We are SAP's editorial I mean we completely overlay on you That's awesome this for two years and you know and we were the first blog that's looking old comm to have the Slogan where computer science intersects social science. Yeah, it's true hence doubted by apple technology liberal arts emc I will tell you that your your point there is completely clear because even you know I'm a product and a technology guy at heart. My first job was at Microsoft. My second job was at Apple I love technology. I'm a computer scientist by nature 90% of what I do today gentlemen. Do you know what it is? It's being a sociologist to manage people It's not the code And this whole social aspect of how you motivate derive people collaborate with them Is so much more important than actually just the bits and bytes And george george matthew actually commented on when we asked him we grill him up on the bi side Which is you know, we're kind of digging the data warehouse. Yeah, he commented He aligned because we're talking about social, you know social crowd sourcing elements It's actually network computing. Yes, philosophies and Metcalfe's law Social bi business intelligence will be at the heart of the analytics I think it's absolutely right because you think about let's talk about retailers who want to understand, you know Some of our large brands. They've got a fashion show models walking off the runway And immediately you've got a whole bunch of people on facebook and twitter tweeting. I'd love that dress Okay, yeah, great. Think about being able to get that sentiment analysis Immediately tell your manufacturers. Hey, how quickly can you get this into the store? That's an answer you would if you were saying hey, how much did I sell last week? That's old data. You want to be tracking this at the point it comes off Delivering it as quickly as you can to that customer and then you get ahead. Okay, we're getting the hook from your handles I know you want to stay you like you like the cube. This is great I think you guys are doing a fantastic job Okay, because my personal perspective is this type of conversation is the future of radio of talk of everything, right? This is like e-s-p-n 1979. I think we cover chat like a sport. So I followed you guys from a little bit of a distance It's a pleasure. I think it's my first time on your show. Yeah, it's a pleasure to be there I'd be delighted anytime your tech athlete. We know you're working hard. You guys are doing great Again, love the editorial opportunity. Yeah, thanks for the general for the for the encouragement And most of all, you know, thank you for being here at our show. Thanks for having us. Thank you. Great conversation