 and hit us up. Hi Jim, Dave Vellante, pleasure to see you. Thanks for coming on theCUBE, it's great to have you. Okay, gonna sit down at the table here Dave, don't block me so I can look down. Okay, we're here live at theCUBE for exclusive SiliconANGLE.tv coverage, the worldwide leader in tech coverage inside theCUBE, our flagship product where we go to events and get the coverage and we're here with first time CUBE member, Jim Snobby, the CEO of SAP. We've had Bill McDermott on at a press conference that we've now officially got both co-CEO's on theCUBE. Thanks for joining us, I know you're really busy and we want to have a nice conversation with you for a couple minutes and as much time as you can spare with my co-host Dave Vellante from wikibon.org. Welcome to theCUBE. My pleasure, it's a huge concept, I love it, thank you. You like theCUBE? Yeah, I love it. Well, we have a lot of time to spend with a lot of the folks from your company SAP and other partners like EMC and entrepreneurs and we've had some customers come in and I'm talking about SAP. So we're going to be here all day today, all day tomorrow and Wednesday. So we've got a feeling of the show is the vibe, obviously mobility. You were talking at one of the press conferences about the analytics a year ago. How do you feel this year? I mean, do you feel different? You're one year in the job as the co-CEO and you're the product guy making the trains run on the product side, how do you feel? First of all, very confident in the sense that over the last year we got a lot of positive feedback for our innovation strategy. We were very clear in articulating that this is not a time to consolidate, it's a time to innovate. We broke out our innovation strategy in clear categories and we've been very busy trying to deliver on that and the feedback has been tremendous. So this year, SAP is about more innovation faster. Yeah, well, we got along with some questions. We want to respect your time. Our analysis here so far and leading up to here has been the sizzle and the steak, as they say. You know, you got the sizzle and you got the steak, the meat and potatoes behind it, the sizzle, obviously, mobility analytics, you know, the in-memory stuff that you're announcing and the kind of the steak, the meat on the bone is the SAP's running businesses with some of this new software and one of the trends coming out that is two environments, legacy environments, existing software, most of your customer base and the clean sheet of paper, the cloud, the big data. We heard from one of your customers who implemented business by design saying, piece of cake, no legacy, clean sheet of paper. How can you explain to the folks out there those two environments? Because that's what people want to know about. You've got to deal with legacies at slower. How do they work in that environment? And then if you have a clean sheet of paper and you're going to redesign, how do you work within those environments? So first of all, we have today 170,000 customers running SAP in CyBase. And we felt it's our obligation to find ways to innovate, bring them disruptive technologies without disrupting their landscapes. And so we've taken a lot of engineering skill in making sure that the new innovations, like mobility, like in memory computing and even our cloud offerings integrate well to the ERP and the business suite and the analytics we already have in place without disrupting that install. We can do that because we have a very modern platform in our traditional applications. And on top of that, we are, as you said, launching our by design. We did that August last year. We have a tremendous interest here. This is more for small and medium-sized companies who want to start from a blank sheet of paper. Very different approach for that size companies. Makes a lot of sense. You've seen a lot of uptake there. What's the demand like there? I mean, honestly, we're hearing a lot about Hadoop and Big Data, a lot of open-source frameworks. That's free software, right? So that's the whole movement happening. You guys heard this, but it's innovation. Big data, unstructured data. I mean, this is not a new territory for you. No, but fundamentally, companies also need core process software to run their business. You need the invoices sent out. You need to make sure that you pay your salaries. You need to make sure you can report on a monthly base and all of that. And for that, you need enterprise qualities of software, which today is not a free software. And it's a software that adds a lot of value. Once you have that, you get the benefits of mobility, of in-memory computing. Because you have a consistent core, you get very flexible on the edge. You can start doing things, bring it to the mobile device, analyze data in real time. And so it's really the combination. It's kind of consistency enables flexibility. We saw that last week at EMC World where they announced the Big Data with the Hadoop appliance. And it was kind of a reaction from the innovation community around Silicon Valley in particular, and other places around the world where there was a feeling of this innovation going on. Don't the big guys come in and disrupt it. You talk to those folks. Because there's peace right now. But people are talking, hey, we don't want to have too much fast collision there. We fundamentally believe that we are at a juncture in this industry where we are moving into a rapid innovation cycle around some new technologies. We basically bet on three, cloud computing, mobile computing, and in-memory computing. And we think that we need to do that as a company, one of the big players who can move a lot of innovation fast, but obviously we want to do it as well in co-innovation and bring in a whole ecosystem. Basically done what Apple has done to the consumer mobile. Why can't we do that to the business software? We're launching an SAP store at this event where you have one click away from enhancing your SAP and install with partner solutions. So is that so that the cloud, mobile, and in-memory, that's a lot of the sizzle, they're hot. Another component here that customers that we talk to are demanding simplicity, right? Now obviously you're talking about an app store like experience. How about that core software and that transition? I mean, how do you get simplicity out of all that complexity? That is a fantastic question. I actually believe that that is one of the biggest tasks that we have in the industry. Over years we've added complexity and now it's about dramatically reducing the complexity, not by solving simple problems. We need to continue to solve the complex problems of business but we need to add the dimension of simplicity. How are we doing this? First of all, the on-demand offers you I consume the software, we're no install whatsoever. Secondly, we're bringing out the rapid deployment solutions which is basically a prepackaging of industry best practices that we know from our 170,000 customers is a best practice and we can install on-premise software in weeks instead of months. And finally, in-memory computing collapses the hardware infrastructure stack to something very, very simple and this will not only drive simplification of landscapes it will drive out a lot of costs on infrastructure in parallel. How about the software innovations with the silicon? We heard from the on-demand, the by design folks today who's going to be on stage with an Intel guy you're putting stuff into the silicon, right? So what can we expect from you guys in that area? You're a software company, you were kind of decoupled. I mean, I know you're not in the hardware business, Bill would refute that all the time. But where's that going? I mean, what's going into that hardened environment and what stays in the software layer? Well, it is because of in-memory computing you're basically writing data into the RAM and you need to do that in a way that makes it easy for the powerful parallel processes of the CPU to read the data. That's why we're teaming up with Intel to optimize the way data is stored with the way data can be read and aggregated by the CPU. And that gives us an unbelievable speed at very, very low cost of hardware. So Jim, I know you're tight on time but last year the big talk was, can this co-CEO thing work? You had the side-base acquisition. There were a lot of questions about your future. I mean, I feel like SAP's turned the corner. So now that you've turned the corner what's the future hold? What do you see? What's the telescope say? Well, we have big ambitions. As you know, we've declared a growth strategy based on innovation. We see now innovation cycles going from 15 months down to the six months. And in mobile is probably more the six week cycles. We are extremely excited here. We have two big pipelines growing faster than we've seen in the past. This is the hole in memory computing which will be a profound change to the whole industry as well as mobility. So our vision of the future is basically a digitized enterprise where you have mobile devices and sensors in the entire value chain basically from factory to consumer. On top of that, in memory computing to make sure you can analyze changes in demand or supply in real time and adopt accordingly. This makes you faster and more predictive than your competition and therefore more successful. It's a lot of data, John. Yeah, so in the future scenario we're going to discuss everyone and talk about the future. And you wanted to talk about what's going to be like in 2015. Today the news we're reporting on SiliconANGLE PlayStation Network comes back online. Amazon's EC2 cloud discovers part of the attack. So there's a public cloud kind of collapse going on. You guys have been criticized by your customers for being kind of slow, but we're hearing you guys do a lot of testing and in Germany it's a pretty stringent requirement. So can you just talk about the security and privacy dynamic? Because Pat Gelsinger talked about this at EMC World that they work together. You saw the security problem privacy because what's your vision there and how do you see that evolving and making it more stable cloud? I believe it's one of the key discussions for the cloud. I mean, as long as the cloud is for games and toys, okay, but the moment you put mission critical processes and data into the cloud, you need a whole different level of enterprise quality. By the way, that's also true for the mobile. And so while many said we are late in the game, we said we will not go to the cloud before we've solved these problems. That's why we perfected Bydesign. We were late in launching it, but now we see the value of a next generation cloud in memory based, mobile capable, secure. That's what we're bringing to the market today. We got a slew of questions to ask. We know you're on a timetable. We got to get back in the game. Glad you stopped by theCUBE where we get in-depth conversation. Thanks for spending the time with us. I appreciate you coming up. Next time, block a half hour off. We can go in-depth. I had no thought to that. Co-CEO of SAP Inside theCUBE. We're here live at SAP Sapphire in Orlando, Florida. Thanks for coming in. I appreciate it. Thank you. Appreciate it.