 From Orlando, Florida, it's theCUBE. Covering SAP Sapphire Now 2018, brought to you by NetApp. Welcome to theCUBE. I'm Lisa Martin with Keith Townsend. We're in Orlando at SAP Sapphire Now 2018. We're in the NetApp booth and we are now talking to Wolfgang Hopfus, the head of the SAP business in Amia for Fujitsu Wolfgang. Welcome to theCUBE. Thank you very much. It's a pleasure to be here. Great to meet you. Fujitsu and SAP have been partners, global partners in technology and services and hosting for over 40 years. Fujitsu runs SAP, SAP runs Fujitsu. You guys have about 8,000 joint customers worldwide. We are at an enormous event. This is not just 20 plus thousand people, but this event location is about 16 American football fields, huge. Tell us about what's new with Fujitsu and SAP. What excites you about this longstanding partnership? So, number one, we are building, or we are trying to build additional business on our strong foundation, which has been grown over 40 years. So we are coming from very early days where we were named Fujitsu and transformed several times into that. Nevertheless, the customer requirements to a company like us are kind of stay the same and stable, although everybody's evolving. So what we are trying to do is, we are trying to accompany our customers in a way where their customer requirements transform quicker than they're able to react. Where all the technology is filling in quicker than we can expect. Software technologies are difficult intelligence and we try to be a company that helps the customer managing all these complexity in a really powerful IT growth. So, let's talk about that from a practical sense. Fujitsu, if the average washer would think, oh, Fujitsu servers, NetApp, storage, SAP software, we understand the relationship. But the relationship is much more complex than that. Fujitsu not only provides the physical infrastructure, but you guys offer services as well. What are some of the services that you offer? How does that feed back to the infrastructure? So, General, and this is really something that at the moment we are trying to fundamentally change because we are coming, this is based on history, from a strong technology foundation. Over the time we added some system integration consulting capabilities and skills across Europe and this is what we're trying to change at the moment. So, we try to make out of at least two to three disjunct business areas, we try to glue them together and start thinking from a customer perspective. So, because the customer no longer buys technology, the customer buys the functionality. And look, maybe 20 years back, maybe it's a little bit longer, but when I was young, when I bought my car, I bought a car and then I started to integrate different things, a stereo, speaker systems, whatsoever kind of fancy things and you did it by your own. Today, you order a car in a completely different way. You have a configuration tool that your manufacturer of choice and you say, I wanna have leather seats, seat heater, whatsoever kind of things and then you click and you get a car which is perfectly designed for you in a different way of standards. And this is exactly my vision of what I wanna achieve in the IT world. So, I wanna make the complexity and the technology consumable for the business units and not for IT guys. So, that means that we glue together our services capabilities, our technology capabilities to provide the customer an SAP system for his future needs. That will include all these fancy stuff like artificial intelligence, blockchain, analytics, big data, all these kind of things are coming together. And we heard an announcement today from SAP, the HANA Database Management Suite, which is my understanding so far, kind of an umbrella kind of thing, gluing different functional building blocks together and you need more integrated technology integration, application integration capabilities in your company to make your customers landscape run and this is what we are trying to achieve. So, there's two similar, I think, adjacencies to your example. The first, you know, when I wanted to get my first car, a little bit ago, five years ago, I just got my license five years ago. So young. I'd have those challenges. You know, I'd buy a stereo or I'd buy a aftermarket, something to improve the, customize my car. However, when it was time to upgrade or do maintenance, I'd take it into the shop and they'll look at this thing and say, oh, it's not standard, we can't fix it because you've modified it in a way that breaks it. One of the challenges with SAP is that customers in the past modified the solution to fit their needs. One of the challenges with SAP and infrastructure in general is that it's very bespoke and I've designed a server storage and compute model that was very bespoke to my business. Talk about how Fujitsu is helping customers through the relationship with SAP deal with this modernization of their data centers. So there are a couple of different aspects in the whole thing. The first one is, so when we're talking about NetAven Fujitsu, we, so the two companies sat together maybe a year ago, maybe a little bit longer and came up with a concept that is called Enflict, which is an integrated systems that reduces already this complexity because it glues the compute and the storage power together. Also some networking kind of things and this gives the customer already and ready to run platform just from a technical point. So if we use this building block and find different and we are working on that different on the application side, different building blocks and we really, we can deliver the whole stack that is the foundation is built on Fujitsu and NetAven compute and storage power. So we are combining the different technology worlds with the special needs for our customers. This is what we're doing. So along those lines, I just read that Fujitsu was named the competitive IT strategy company for 2018. So I'm curious, what is it that Fujitsu is driving towards or in 2018 to deliver this competitive IT strategy? Like what you just talked about, how does that give you a competitive edge? First of all, we have, and this is faced in our head, what is in Japan, we have really a lot of things to talk about when it comes to artificial intelligence, deep learning, blockchain and big data. So the company is investing heavily in these things and this is what we are trying to tie together because this gives us a uniqueness in the market. These are elements that everybody needs to do for the digital transformation. And today you often hear some statements like it's running on a platform, it's running on an SAP platform, but the reality is that about 90% of today's S4HANA customers are still running on premise. So we see and move into cloud environments. We see and move into hybrid or multi-cloud engagements in customers. And this is exactly when we just look onto the application or this digital side of the business, we forget that the customer has a business and the technology foundation too and this is where we are taking care of and this gives us this advantage where we think this is needed from the customer. So talking about customer experiences, customer relationships, what are some of the key considerations as customers look at, I will call this infrastructure for systems will house? What are some of the key differentiators customers need to look at as they examine potential infrastructure solutions? So just let me need to differentiate and this brings me back to my car comparison. If you wanna have just building blocks and it's the customer's responsibility to number one, get them to run and number two, operate them over a certain period of time with a service level. So within Fujitsu, we are pre-packaging and we are taking care of the customer. So first of all, we are not delivering components, we are delivering an up and running platform. And secondly, we are taking the risk away from the customer. So that means we give service levels, we give maintenance, we offer managed services so that the customer can really focus on their business instead of wasting energy on his IT systems because this is what we are good at and this is what we are offering to the customer. So this is a really big difference. We are providing and ready to run system and we are taking care on the maintenance regardless of what components are in the system. So we are also taking care if we put on NetApp storage and then Fujitsu server together, Fujitsu is taking care on the maintenance issues whenever something may go wrong with the system it's one phase to the customer. And this gives us a very strong position. So for that managed service, how deep does that stack go? I mean, one of the appeals to customers when it comes to cloud is that, you know what? All the way to some cases, basis is handled by someone else. I'm just laying my application, I'm installing my application, I'm making the modification as the SAP kind of says these are the guard rails we make and from every other system, you can count on consistent from SAP platform to SAP platform. How far does Fujitsu go in managed services for SAP? So we are offering managed services starting technology foundation, starting, going into SAP basis, going into the complete application. So we are offering the complete stack also on the managed services side. The customer can start with an easy just managing his hardware, managing his platform, managing his whole system. So the whole landscape can be under contract of Fujitsu and it's just a consumption model for the customer. Risk free, that's all what he needs to take care of. So we're really taking based on customer needs, requirements and desires, we are taking the risk on the Fujitsu side that the customer has an up and running SAP landscape. So one of the big challenges that enterprises face when it comes to SAP in general, it's not just SAP, it's all big enterprise apps. On the stage floor, Bill Moderm said this morning that I was taking a bag, I don't know if this is, in my experience, it hadn't been quite the experience that he had a customer from discussion to implementation to all business processes, six weeks to implement S4. That was a bit of a dream. Absolutely. Not typical of the experience, but even let's say a lot less complex things, just raising a development environment where customers just want to experiment, they want to fail fast, they want to take a copy of production, put it into development, create an application, see if it works. What, how does Fujitsu help speed agility of customers who just simply want to get up a faster running development environment? So in this case, we definitely recommend, so these are use cases where we would recommend going into a cloud-like environment. So easy. In an Amazon or Azure world, you get one terabyte HANA system within 24 hours later, so you just need a credit card, that's all you need. Right. The interesting part starts when you exactly go through this exercise and dig your experience, and then you want to take whatever you experience back into your production system, because then the complexity for the customer starts, because what you get in these hyperscale-like clouds is a platform that you not get on service to get your results back onto your production system. And this is where we are taking care on. So we are going beyond this Chester platform or Chester device or Chester server, because the agility to get a platform is not necessary. You can have this everywhere. The luxury to get your results, your data back and forth from your production system, make a copy, move them, transform them into an Amazon, and back again after you made your four weeks development cycle. That's something we are the value for our customers in. So sometimes it's not only about the speed and the time and the agility, sometimes it's about the completeness of getting the whole thing back again so that you can use your results, use your experience that you made over these short period of time and bring it into your production system. That's a key message for that. I'm glad you answered the, I think that's legitimate how customers look at it. The cloud is for short burst. Absolutely. They need to get it up and ready and quick. Long steady state, SAP, HANA, SAP in the cloud, and especially hyperscalers specifically, probably doesn't make any sense because those are known steady workloads that are probably best suited for the private data. Not only that, and it's about, so it's about the stability. So my experience is in talking to customers and I know at least two. And both are in the Middle East, two customers who decided to go out of the cloud again because it does not make sense for them. So cloud is especially for this use case, try something, start something, four weeks, collapse it and do something else again. The important part is normally customers wanna be sure where their data is. This is a big issue at these times, especially in GDPR, especially in Europe. So I've seen customers asking me somewhere in Russia or the Middle East, can you ensure that my data is stored in Western Europe or even better in Germany? So yes, we can with our content. And most of these customers are likely to wanna have control over their production system. So the core, where the customers data are located, they wanna have this somewhere where they can go and feel and touch it. So this is important for them. Everything else can be in the cloud. So that means two-third of today's SAP landscapes have the ability to be moved in a cloud that the stable core, which is S4HANA core, business should be somewhere where the customer can get feel it again. Get their hands on it. Wolfgang, thanks so much for stopping by and sharing with us what's new with Fujitsu and SAP. And now that we appreciate your time. Thank you very much. You want to thank you for watching theCUBE. Lisa Marin with Keith Townsend from Orlando at SAP Sapphire Now 2018. Thanks for watching.