 I'm Dave Vellante of Wikibosh, Radhakrishnan. Ganesh is a Cube alum, Ganesh. We met last year at Sapphire. You guys, I think, were the first to be certified to deploy SAP in the cloud, and we're going to talk about that a little bit, but first of all, welcome back. Good morning. Good morning. First of all, what do you think of the show this year? What's the vibe like for you? It's amazing. It's amazing the floor. It's too much crowd. I could see there is a lot going on. What we were very happy about this year was there's a lot of very good coverage on cloud side and mobility as well as HANA. So basically when it comes to cloud and HANA, there is always a relationship. We strongly feel that HANA, at one point, we are right now testing it in our labs, and we are going to make it ported onto virtual systems, where HANA is going to run by end of June, which will be available for customers going forward. John, the cloud message wasn't that loud and strong last year, but it is this year. Yeah, we had you on last year, and tell us, what was the reaction like from meeting on theCUBE? Did you have good positive results from the videos? Oh, it's also about your business updates as well. Amazing results, and in fact, we love the way theCUBE has been run because we got quite a great traction. In fact, since last year till this year, we have implemented 11 private clouds for customers. Also, we have a broad WFT cloud, which we have about 1,800 customers from around 82 countries, and the biggest visibility we got is through your theCUBE. Well, I'm just excited, because that's the whole purpose of theCUBE, is to share the knowledge, and we really appreciate you coming in. Let's talk about your success last year, although we'd love to take all the credit, but really, you guys have a good business solution, and the market's kind of spinning in your direction. What forces last year really were in place? Obviously, the infrastructure has become a converged size really rapidly developing. Tell us about what are the success factors that happened last year with you guys? Why such good growth on the private cloud, which has been elusive to many on how to get to the private cloud. Talk about that. Yes, definitely. That's an excellent question. Basically, there is a lot of room because people started going for consolidation in the past, and now people have realized, or we could make our customer realize that, converged infrastructure is going to be a key, whereby they can completely optimize all their non-production resources, whereby they can fully optimize those non-production resources for production purposes. Like, for example, people used to create, even though virtualization is there for many years now, and SAP customers are also now running it for the past three, four years. Still, people had been architecting SAP running on non-production as a separate cluster and production to be its own cluster. They couldn't be able to gain those resources, say for example, from evening five o'clock till the next day morning nine o'clock. Those non-production people just go off home, so those resources are our item. They are basically offline, and we could enable ourselves with our technology, whereby we're running a lot of batch processes and creating more servers or apps on them in the nightly times to optimize and take advantage of those resources. So from an architecture standpoint, what was different about that from this year in last year? What innovations took place? What was the enabler in all this? Basically, I consider that cloud is largely helping customers because what is happening primarily is people used to buy expensive luxury hardware inside, and they predominantly in an SAP landscape, 15% to 20% is production, remaining 80% is non-productions, but people had been primarily spinning so much of landscapes because of so many SAP modules they have to integrate, and those SAP non-productions had been taking a lot of cost. There was no savings for them. With this cloud burst, with a private cloud, they get the ability, not only on-premise, they get the production up running in a premium hardware, they can also take these non-critical apps into cloud, whereby that helps customers in saving costs and also in maintenance, as well as greater SLA. So what about the business model? Let's talk about the SLA. So cost reduction, no brain, I get that. It clearly leverages these non-production resources when you need them, and that's great. Let's talk about the business model side of the customers. Talk about the SLA. How has it impacted their businesses? Are they actually leveraging these new resources to actually produce revenue? Can you give some examples? Definitely. Basically, if you're talking about availability itself, the availability was a big challenge to manage before a converged infrastructure was in place because people have to manage different components and people, to tie in these components, they need a lot of expertise in-house or they have to go for consulting basis. Now, with all this prefabricated converged infrastructure, one thing is their availability is so high. 99.9% availability, they could easily accomplish that. From a business benefit is about all these data analytics. So one is people could be able to gain these resources and they could club all these resources together to do better manage and better do queries on systems. I'm not just going after one piece of it like HANA kind of an equipment or a BA accelerators, but even people could be able to do because of the processing power what they have gained recently with the V-Vlogs on the UCS blades. It is giving because what we are fundamentally noticing these days, only 17% of the CPU is being used. The remaining part of CPUs have been idle. Most of the time what we are facing is memory contentions or I can say more storage contentions. Storage is getting to be the major bottleneck and even in storages, we could be able to do substantially better since last year till this year because a lot of solid state disks are getting cheaper. More the technologies within V-Vlog like fast VP, virtual provisioning and fast caches are enabling customers to do much more. So it is indirectly benefiting the business and the most important one point I wanted to add is if people, business people largely in an SAP customers that needs instantaneous system provisioning and that provisioning and have a remarkable change now with images can get provision in no time. Versus the provisioning cycle time which was what before? What was before, you are absolutely right. And what time frame are you talking about? What's the... Minutes now. We are talking about... What was it before? It used to be weeks. It used to be weeks. From weeks to minutes. Weeks to past, we just looked at all the procurement and everything else. How about the notion of hybrid cloud, Ganesh? There was a lot of talk about that a couple of years ago but when you talk to customers they were kind of cool on it. Are you seeing more of a move toward hybrid cloud and I want to share some data with you? Definitely. Dave, to be honest with you, for SAP as of today at least by 2012, 2013, I could see that predominantly SAP customers are going to be more implementing private clouds on-premise for productions because still there are a lot of things to be sorted out in terms of compliances, securities in those aspects. So private cloud is going to be predominantly for production whereas non-productions are going to be typically moved into a public cloud with a VPC kind of virtual private cloud which is going to be a hybrid model. So even bigger companies where we had been just working recently, we could be able to make a private cloud within their infrastructure whereby shade systems can come in and avail the private cloud in terms of analytics and that is what we are predominantly seeing like SAP is going to be on a hybrid model. It's not going to be either just a private or it's going to be public. So we did a survey last year, it was early last year and we asked people which of the following best describes your attitude toward cloud computing and we had a number of responses and I just want to show you. So this orange area here is the guys pursuing, let me see if I can even put it up here. That bottom part of the pie, this part right here, that color is the hybrid cloud guys. Now last year that slice was so thin it was probably on 6% of the total said that they were pursuing a hybrid cloud and now I don't, this is real-time survey. We just launched the survey a couple of days ago to the Wikibon community. Do a real-time data extraction time and you can see the size of that pie. Now the other piece of this red area is the private cloud, the one up to the top, thank you. Now that was dominant last year. Now the other one, that tiny slice, right over here was cloud computing is a buzzword of unclear meaning. Now look at how small that is now and that was huge last year. So we're clearly seeing two things. One is cloud adoption is clearly accelerating. There are still actually a substantial number of folks who are just getting started or don't have a cloud strategy so I think to those guys you got to really get going and get on the curve. But a vastly greater number are looking at hybrid clouds. Now you're saying that's not so much the case within the SAP community, which I'm not surprised. Why is that and do you expect it to change? Basically SAP is still looking into the industry because SAP always takes its own course of time before anyone could, before their adoption. That is what we had been seeing it for decades. So but SAP in this case has in fact moved much faster I can say in terms of private clouds. A lot of companies we are deploying private clouds at this point in time, but they're also seriously looking at an hybrid model for non-production systems because one of the major bottleneck cloud providers have for SAP is the number of SAPs what today in a cloud provider can provide. Now cloud providers could not be able to provide beyond certain SAPs like we call it like 7,000 SAPs. That is still a bottleneck because we need to also look into it because the database sizes are growing within companies and those sizes now are simple. Like a pretty much a database sizes are normal, sizes are two to three terabytes and people are going up to 10 terabytes. That is one factor which is going to limit SAP production customers to move into cloud for production purposes. Yeah, well you're saying this because of the data movement particularly the hybrid cloud, right? Yes. Because it just takes a long time to move data, right? So okay, now but I would imagine in one hand your business is in a really good spot. I would imagine you're going to start to explode because SAP has been behind in cloud. Now you're filling that void. Customers that want to go to cloud can come to you. You can help them accelerate that. On the other hand up until recently SAP wasn't marketing cloud for you. So you must be really happy about the cloud messaging that you're hearing at this event. Definitely, this is a wonderful year for us because even since the start of the year because of WFT cloud, now 82 countries are coming in and running on our cloud. We could be able to demonstrate that we could be able to provide systems in minutes, not just SAP one system. We are talking about SAP entire landscape can be provisioned within minutes which customers are very happy because a lot of developer community, training people, individuals, a lot of companies who wanted to try new products of SAP like VPC or ACM 70 and all, they're saying can we get a system because when they go to a traditional IT it takes weeks for them and then still they come back and say they do not have enough hardware to provision them. Now with us, with a swipe of a credit card people can gain a system which we are thankful to SAP alliances who has given us the permission to demonstrate such a capability. Why are people moving to cloud? Simple question, but let's go back to the basics. Basically, it's instantaneous access. One of the major thing we had been seeing is people when they have to get an SAP system it takes weeks. They have to get basis people, they have to get so many resources to bring together before they can have a system in. Business people, as you know, the technology with mobility and the speed like iPads and other things, people wanted it instantaneously. They do not want to wait for the next five days to get a system and cloud could be able to deliver that. So particularly it's a deployment of a driver. What about the whole notion of transparency and pay as you go? Is that a driver or is that more sort of Amazon? I wanted to be careful in talking about pay as you go model because SAP predominantly, if you bring up an SAP system, there is no way you are going to bring the system down because SAP keeps running. We call it like in a month, 750 hours a month, it keeps running. So basically we are talking about it is pay as you go model in terms as of now for SAP. It does not make a lot of sense, but definitely we are talking about it is going to help customers save a lot of money. If they have a lot of non-critical systems which does not need to be up and running, they can turn it off. All right, SAP making big moves into the cloud. Good news for Wharfdale and Ganesh. Hey, thanks very much again for coming on theCUBE. I'm glad we could make it happen. It's really always a pleasure to see you very articulate and knowledgeable. So if you want to do cloud, call this guy. Cutting edge example of Private Cloud Execution Day, we said from EMC World 2010 when they introduced the journey to the Private Cloud which no one was on at that time. Now, we're seeing proof points of real Private Cloud deployments, so congratulations. We're glad to be part of it in some indirect way. I guess theCUBE has been helpful, thank you for being part of it. And again, that's just the great support that we get from our guests and you, the viewer. So we really appreciate it though. We'll be right back with our next guest live from Sapphire in Orlando, Florida. Thank you.