 Live from Las Vegas, Nevada, it's theCUBE. Covering AWS re-invent 2016. Brought to you by AWS and it's ecosystem partners. Now here's your host, John Furrier. Hey welcome back everyone. We are here live in Las Vegas for Amazon re-invent 2016. They're an Amazon web services annual conference. I'm John Furrier with SiliconANGLE. theCUBE we're out here for three days of wall-to-wall coverage. Day one really for the show to kick off and our next guest is Akash Agarwal, Vice President, Dean of Vice President, I'm sorry Global Vice President with SAP and Rudy Leibbrandt, Senior Director of HANA Product Management from SAP. Guys great to see you, good to see you again. Thank you. Covered Sapphire this year and it was really, you saw the first big picture of SAP going beyond just their install base, looking at the cloud as not only an extension of SAP, but new opportunities. Cloud native things and customers kind of coming together. A similar story that we're seeing with VMware and AWS that now the hybrid cloud is really in play, 100%. People are recognizing that. So I want to get your thoughts here at AWS, your relationship with AWS. What do you guys, what's your relationship? What are you guys talking about here at the show? Sure, so thank you. We're excited to be in the cube here. SAP and AWS have a very unique partnership. I think you saw Andy Jassy talking about the enterprise. We'd like to think that we define the enterprise with the fourth largest software company in the world and what Amazon and AWS presents our customers is a unique opportunity to accelerate their data, their workloads onto the cloud. And we've been using SAP, we've been using Amazon's AWS services, both as a customer, as a technology partner and bringing a number of our assets onto AWS cloud. And this journey began as a customer in 2008. And I'd like to think that we're one of Amazon's strategic partners. You heard Andy Jassy mention SAP a couple of times, particularly on some of the node sizes that they have specifically designed for enterprises around the X1. Well, I really wanted to bring you guys on here on the show here at the cube because people might not know that you guys have a deep history with Amazon going back a bunch of years. What, just spend a minute and talk about the size and scope of SAP's involvement with AWS and some of the innovation that you guys are doing because it's not just Johnny come lately, jump on the bandwagon with AWS, you guys have been in there doing a bunch of stuff. Can you share, take a minute to explain the relationship depth and some examples of the innovation strategy you have? Yeah, so I'll give you a quick summary and I'll let Rudy jump in with some of the products. So we've been in partnership with AWS since 2008. So SAP has made a big footprint in the market. We have our flagship database product HANA. We have many applications. We're running a lot of cloud-based applications like Concur and SuccessFactors and Ariba that are cloud-first and native cloud. So notwithstanding those applications, a lot of our customers are running various kinds of workloads that today lend themselves very nicely to the cloud. And I'll let Rudy jump in and give you a quick synopsis of some of the great products that we have that are certified to run on AWS. Yeah, I think there's a few things there. So you touched on some of the product stuff and quite an important thing for us is to make sure that we certify and work together with AWS to make sure that customers can run the best possible product combination and get the best value out of the technology solution. So some of the things that we do, then is certify on the specific AWS instances. So recently we did a certification for our HANA platform on X1. Which then makes sure that a customer can deploy that technology without running into any snags when they run it in production. Then we do all sorts of different things for the AWS platform to enable development and trial system. So if a customer wants to discover something and wants to start getting used to the SAP technology they can do that easily through a list of appliances. And a few months ago we launched a new solution based on HANA. It's our business wear out solution. It's called BW4HANA. And that technology was designed with the cloud deployment model in mind. So what we did jointly there is launched the solution based on the X1 infrastructure or the X1 instance. And we've already got a first customer life. So we've got a customer called Fairfax that are an Australian media organization and they managed to go from nothing to production in about three months. And in the same time decreased their development time by about 50%. And had about a 10% or 10 times improvement in performance on their reports, on the reporting systems. So it goes all the way from implementing and using the services when we design new products, co-innovating on them and then obviously making sure that customers can consume those technologies. What's the drivers right now for you guys with AWS and SAP? Because your business, you guys power some of the biggest enterprises with your SAP software and the HANA cloud. You did a deal with Apple for the developer side with Swift language is getting a lot of great reviews. So you have this new world of cloud native. You have the existing on-prem activities. You guys have huge market share. Where's the drivers? What's the use cases? What are some of the pressure points? And what are customers excited about? What is the big aha for customers with respect to integrating in with public cloud? Yeah, so let me touch on that and perhaps Rudy can give his perspective as well. So I think that the first and foremost thing is it's accelerating deployment of software. So I think as Andy Jesse pointed out, it's speed, it's agility, it's the ability to bring your assets to a whole host of users that didn't or couldn't do it. So I think that's one dimension. The second dimension is cost. I think cost and complexity is completely eliminated by moving a lot of our workloads into the cloud. And the other thing is that, you know, a lot of consolidation is happening with regards to various ERP systems, various data systems. And what we're doing is by embracing public cloud infrastructure like Amazon, we're allowing our customers to embark on the digital transformation journey very rapidly. Agility got to be key on that one, right? Yeah, agility is paramount. I think it's, you know, it's what the market is demanding. I think Andy Jesse put it very nicely that we're here from our customers and it's no secret that, you know, a cloud is paramount and it's important to both the enterprise as much as a startup. So I think, you know, hybrid cloud is one way of doing it, data consolidation, data aggregation, data transformation. These are some of the drivers for what we're doing. Rudy, what are the product drivers that are enabling the cloud growth and the integration? Is it the data warehouse? Is it other things? What's the key product? Yeah, it's kind of a combination. I think first and foremost is our new generation of SAP technologies all based on our in-memory honor platform. So customers are modernizing and moving to the new platform and we have huge adoption on this new environment. Now, so what that means is that these customers are likely to going to go cloud first with those solutions and not go on print. No one wants to acquire more infrastructure and in fact, when we speak to customers, one of the key things on a more personal, a lot more emotional thing is this desire that I see of people wanting to move out of their own data centers, right? So customers just don't want to be in the data center business. And then obviously things like data warehousing and better analytics and better insight into their customer activities drive new opportunities for us too. So we have a range of new product opportunities and what I'm finding is that customers choose to deploy those things in the cloud first. Guys, well thanks so much for coming on Q. Final question, I'll give you guys the last word if you both could address the question. What's the big aha for SAP customers and potentially new customers on SAP AWS? What's the big news that they should know about? You know, I think the big aha is that... Get some phone calls on the queue, look at it. Go ahead. It's all right, it's my phone. It's Bill McDermott. No, it's not Bill McDermott, no. It's Bill McDermott, you got to look at it. He's doing other things. I think it's find my phone trying to locate me or something. Anyhow, I think the big aha is that I think the public cloud is real and I think SAP customers are ready and wanting to kind of get on the cloud and for us, I think working with Amazon and embracing different technologies that they have and our data can really help kind of move our customers into the next generation of computing. The data's big asset. Yeah, and I think it's what the market demands. I think that's kind of its cost, its improvement, its agility. All these services that are coming in, these services are coming in into the cloud first and if we don't bring our data set and our customers into the cloud, we're going to get left behind. Rudy, real quick, what should the customers focus on for the impact from a product perspective? I think what customers have come to expect from the traditional God vendors is longer deployment times and implementation times and that generally has to do a lot with the way that they run their data centers. So what we're finding is that the big aha for customers using SAP and AWS together is a really fast time to market really quick out of the gate and get the solutions running to meet those business projects. Guys, thanks so much for coming on theCUBE. SAP here at Amazon Web Services ReInvent, the enterprise world is completely converging in the public cloud, hybrid cloud, all in play. Guys, thanks so much for sharing. Thank you, thank you very much. So theCUBE, we'll be right back with more live coverage after this short break. I'm John Furrier, we'll be right back with more. We'll be right back.