 known as a first world disease, and that means it's also a lifestyle disease. Today, we have between 6 and 8 million diagnosed diabetes patients in Germany. The vast majority are Type 2 diabetes patients, which is mostly triggered by an unhealthy lifestyle. Anyone can get Type 2 diabetes by not taking care of themselves, by letting themselves go, or by failing to get honest feedback about their lifestyle habits. And this is, of course, a huge cost factor, especially when you consider the very severe complications associated with diabetes. It is thought the majority of heart attacks and strokes are related to diabetes. This means we can't wait to act only when a patient has already been diagnosed with diabetes. We also have to take preventive action. That is why we decided we needed a package for patients and physicians to provide a better prevention program. The program is called AccuCheck View, and includes not only a blood sugar meter, but also a fitness tracker, which is a wristband that tracks steps and daily exercise. What makes the package unique is an app developed by SAP, specifically targeted to meet the individual requirements of patients as well as doctors. You don't have to visit the doctor all the time, but can check glucose levels at home. They are transmitted via an app to the doctor's system, and the doctor's office can contact you and discuss appropriate measures. It's crucial to have a solution that is able to gather all the mobile data, and here SAP has the right product with SAP Connected Health, which meets these requirements perfectly. The solution is based on the HANA Cloud Platform, and with that platform SAP can store and process all the data from the mobile devices. This app gives the patient immediate feedback, but also gives me immediate feedback so we can work together more closely. Small sins are made visible right away, but I can react much faster and adjust my behavior, which is a great benefit. The doctor's work will change completely. Now, the doctor no longer depends solely on what a patient tells him, but he can monitor the actual data closely and can therefore make much better therapy decisions. This will not only affect diabetes therapy, but all chronic diseases. Increasingly, we will see that technology, apps and software will all help to strengthen the relationship between patient and doctor so that therapy can be provided in a much more individualized fashion. From Orlando, Florida, it's theCUBE, covering Sapphire Now. Headlines sponsored by SAP HANA Cloud, the leader in platform as a service. With support from Consolink, the cloud internet company. Now, here are your hosts, John Furrier and Peter Burris. Okay, welcome back everyone. We are here live in Orlando, Florida for exclusive coverage of SAP Sapphire Now. This is theCUBE's SiliconANGLE's flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier with Peter Burris. I want to thank our sponsors for allowing us to get down here. SAP HANA Cloud Platform, Consolink, Capgemini and EMC. Thanks so much for supporting us. Our next guest is FrontCon, who's the SVP General Manager of Digital Enterprise Platforms, which includes HANA end-to-end. Welcome back to theCUBE. Good to see you. Lovely to be back here again. So, you know theCUBE history. We go way back. We've done pretty much every Hadoop world up until 2013. Now we have an event the same day, week, at Strata in New York and SV. And we've been to every SAP Hire since 2010, except for 2014, 2015, and had a little conflict of events. But it's been great. It's been big data. I remember Bill McDermott got up there when HANA was announced, kind of, or pre-built, before Hadoop hit. So you had HANA coming out of the oven. Hadoop hits the scene. Hadoop gets all the press. HANA is now rolling. So then you roll forward to four more years. We're here. What's your take on this? Because it's been an interesting shift. Hadoop, some are saying it's hard to use. Total cost of ownership. Now HANA is rising. Hadoop is sliding. That's my opinion. But what's your opinion? Well, that's a well-summarized history lesson there, so to speak. Firstly, great to be on theCUBE again. It's always lovely to see you gentlemen here. You did a wonderful job. What I'd perhaps just highlight is maybe some of the key milestones that I've observed over the last four or five years. Ironically, in 2010, when I arrived at SAP, when the entire, sort of, if you like, the trajectory of HANA started going in that direction, and Hadoop was sort of there, but it was maybe petering out a little bit because there was the uncertainty of scale and whether or not this is going to be only batch or whether it's going to ever become real-time. So I would maybe make the two or three milestone definitions from the SAP side. HANA started off as a disruptive technology which was perhaps conceived as being a response to a lot of internal challenges that we were running into using the systems or record of yester-era. They were incapable of dealing with SAP applications, incapable of giving us what we now refer to as a digital core, and they were incapable of giving our customers truly what they needed. As a response, HANA was introduced into the market, but it wasn't limited in scope to the, if you like, the historical baggage of the relational era or maybe even the Hadoop era, so to speak. It was completely new imagined technologies built around in-memory computing, a columnar architecture, and therefore it gave us an opportunity to project ultimately what we could achieve with this as a foundation. So HANA came into the market, focusing on analytics to start with, going full circle into being able to do transactionality as well, and where we are today, I think Hadoop is now being recognized, I would say probably as the de facto data operating system, so HDFS is a very significant sort of extension to most IT organizations, but it's still lacking the compute capabilities. This is what's given the rise of Spark, and of course with HANA, HANA is in itself a very significant computing engine. Of course, and Vora as well. Now you're finishing off my sentences, thank you. This is what theCUBE's all about, we've got a good cadence going here. All right, so, but now the challenge in HANA is also, by the way, was super fast when it came out, but it didn't really find, in my opinion, it's swim lane, it seems now, it's so clear that the fruit is coming off the tree now, you're seeing it blossom beautifully, you got S for HANA, you got the core, explain that because people get confused, am I buying HANA Cloud, am I buying HANA Cloud Platform? Share how this is all segmented to the buyer, to the customer, your customer. I mean firstly, SAP applications need to have a system of record. HANA is a system of record, it has a database capability, but ultimately HANA is not just a database, it's an entire platform with integration and application services and of course with data services. Now as a consequence, when we talk about the HANA Cloud Platform, this is taking HANA as a core technology, as a platform, embedding inside of a cloud deployment environment called the HANA Cloud Platform, it gives an opportunity where customers are perhaps implementing on premise S4 or even in a public S4 instance, an opportunity to extend those applications as perhaps they may need or require to do so for their business requirements. In layman's terms, you have a system of record requirement for SAP applications, that is HANA, it is only HANA now in the case of S4 and in order to extend the applications as customers want to customize those applications, there is one definitive extension venue and that's called the HANA Cloud Platform. And that mainly is for developers too and I call it the developer cloud for lack of a better description or a more generic one, that's the cloud foundry, basically the platform is a service, that's essentially bolting on a developer on ramp if you will. Is that a safe way to look at it? I mean I think the developer interaction point with SAP now certainly becomes HCP but it also is a significant ecosystem enabler as well. Only last week or week before last in fact that we announced the relationship with Apple which is a phenomenal extension of what we do with business applications and HCP is the definitive venue for the Apple relationship in effect. So tell us a little bit about borrowing or building upon that and what is increasingly, how should an executive when they think about digitization how should they think about it? Is this something that is a new set of channels or the ability to reach new customers or is there something more fundamental going on here? Is it really about trying to translate more of your business into data in a way that it's accessible so it can be put to use and put to work in more different ways? Sure, it's a great question. So what is digitalization? Well firstly it's not new. SAP didn't invent digitalization but I think we know a fair bit about where digitalization is going to take many businesses in the next three to five years. So I would say that there's five prevailing trends that are fueling the need to go digital. The first thing is about hyper-connectivity. If we understand that data and information is not only just consumed, it's created in a variety of places and geographically just about anywhere now is connected. I mean in fact I read one statistic that 90% of the world's inhabitable land masses have either cellular or wireless reception. So truly we're hyper-connected. The second thing is it's about the scale of the cloud, right? Cloud gives us compute not just on the desktop but anywhere and by definition of anywhere we're saying if you have a smart appliance at an edge, that is in fact is super computing because it gives you an extension to be able to get to any compute device. And then you've got cloud and on top of which you've got cybersecurity and a variety of other things like IoT. It's also fueling the need to become digitally aware enterprises. And what's ultimately happening is that business transformation is happening because somebody without any premises, without any assets comes along and disrupts their business. In fact, one study from Capgemini and of course from MIT back in 2013 was revealing that in the year 2020, 2020 rather, out of the S&P 500 approximately 40% of the businesses are going to cease to exist. For the simple reason those business and disrupting their classical business models are going to change the way that they operate. So I would just, in a concatenated way of answering your question, digital transformation at the executive level is about not just surviving, it's about thriving. It's about taking advantage of these digital trends. It's about making sure that as you reinvent your businesses, you're not just looking at what you do today. You're almost looking at that as a line that's been deprecated. What are you going to do in addition to that? That's where your growth is going to come from. And SAP is all about helping customers become digitally aware and transform their organizations. So you're having conversations with customers all the time about the evolution of data management technologies. And your argument being is that HANA is more advanced, a column of database in memory, speed, more complexity in the I.O., all kinds of wonderful things that it makes possible can then be reflected in more complex or more rich value creating applications. But the data is often undervalued, the data itself. We haven't figured out how to look at that data and start treating it literally as capital, where we talk about a business problem, we talk about how much money we want to put there, how much people we want to put there, but we don't yet talk about how much data is going to be required, either to go there and make it work or that we're going to capture out of it. How are you working with customers to think that problem through? Are they thinking it through differently in your experience? It's a great question. So firstly, if I was to look at the value association with data, we can borrow from the airline industry, perhaps an analogy. If you look at data, it's very equivalent to passengers. The businesses that we typically operate on are working on first and business class data. They've actually made significant investments around how to securely store, access, process, manage all of this business class and first class data. But there's an economy class of data which is significant and very pervasive. And if you look at it from the airline's point of view, an economy class individual passenger doesn't really equate to an awful lot. But if you aggregate all the economy class passengers, it's significant. It's actually more than your business and first class revenue, so to speak. So consequently, large organizations have to start looking at data, monetizing the data, and not ignoring all of the noise signals that come out of the sensors, out of the various machinery, and making sure that they can aggregate that data and build context around it. So we have to start thinking along those ways. Yes, I love that analogy, so good. But let's take that one step further. I want to make sure I go on the right plane, right? So one, that's the data aware. So digital assets is the data. So valuation techniques come into play, but having a horizontally traversal data plane, really in real time is the big thing. Because not only do I go through security, put my shoes through and my laptop out, that's just IT. The plane is where the action is. I want to be on the right plane. That's making data aware. The alchemy behind it. That's the trick. What's your thoughts on that? Because this is a cutting area. You hear AI, ontologies, and stuff going on there now, machine learning, certainly. Certainly not advancing to the point where it's really working yet. Let's get in there, but what's your thoughts on all this? So I think the vehicle that you're referring to, whether it's a plane or whatever, the mode of transportation is, at a metaphor level, we have to understand that there is a value in association with making decisions at the right time when you have all the information that you need. And by definition, we have created a culture in IT where we segregate data. We create this almost two-swim lane approach. This is my now data. This is my transactional data. And here's my data that I will then feed into some other environment, and I may look to analyze it after the event. Now, getting back to the HANA philosophy from day one, it was about creating a simplified model where you can do live analytics on transactional data. This is a big significant shift. So using your aircraft analogy, as I'm on there, I don't want to suddenly worry about, I didn't pick up my magazine from the, you know, from Duty Free or whatever, from the newspaper stand. I've got no content now. I can't do anything. All right, for the next nine hours, I'm on a plane now, and I've got nothing to do. I've got no internet. I've got no connectivity. The idea is that you want to have all of the right information, readily available, and make real-time decisions. That calls for simplified architectures, all about HANA. We're getting the signal here. I know you're super busy. Thanks so much for coming on theCUBE. I want to get one final question in. What's your vision around your plans? Obviously, it's cutting edge. You're getting a great area. Ecosystems developing nicely. What's your goals for the next year? What are you looking to do? What are your key KPIs? What are you trying to knock down this year? What's your plan? I mean, first and foremost, we've spent an awful lot of time talking about SAP transformations and around SAP customer landscape transformations. S4 is all about that. That is a digital core. The translation of digital core to SAP should not be inhibiting other customers who don't have an SAP transaction or application foundation. We want to be able to take SAP to every single platform usage out there, and most customers will have a need for a HANA-like technology. So, top of my agenda is, let's increase the full-use requirements and actual value of HANA, and we're seeing an awful lot of traction there. The second thing is, we're now driving towards the cloud. HCP is the definitive venue for not just for the ecosystem, for the developer, and also for the traditional SAP customers. And we're going to be promoting an awful lot more exciting relationships, and I'd love to be able to speak to you again in the future about how the evolution is taking place. We wish we had more time. You're a super guest. Great insight. Thank you for sharing the data here on theCUBE. Thank you for having me. We'll be right back with more live coverage here inside theCUBE at Sapphire now. You're watching theCUBE. There'll be millions of people in the near future that want to be involved in their own personal well-being and well...