 Okay, we're back here live inside theCUBE. This is Sapphire now live from Orlando. This is Silicon Angles exclusive coverage of Sapphire. Now our fourth year here and we are in the global communications centers where all the action is happening around the world. They had the live press conference earlier with the co-ceos yesterday. We had again the keynote presentations come in here for the Q and A with the global press corps and just had the executive committee here about the business results. All the questions about the business model and the financial model. Obviously SAP is pumping on all cylinders and one of those areas is social. Bill McDermott said social is the new dial tone. Social is part of the new CRM. People see CRM and ERP. All the supply chain dynamics applying to people and obviously SAP is about people as Bill McDermott said. And we have Sameer Patel, the global vice president general manager of the enterprise social software team. Welcome to theCUBE. Thank you. I think you pretty much covered it well. I don't have much to add. Yes you do. We're going to dig in. We've known each other for a while. You're new to SAP but you're not new to the enterprise. Used to be called enterprise 2.0. So back, you know, just roll the clock back even eight years ago, kind of started the early adopters and the early kind of pioneers where we're really trying to read the tea leaves around. Hey, you know, the enterprise is shifting to cloud and we saw some really indications on that with democratization of media, blogging, podcasting, cloud hits a scene, now mobile obviously in 2007, the iPhone changed the game. So since then, dramatic change. Social media now is legitimate and some people say, you know, that's the new form of interaction and there's all big data around it. So there's a lot of stuff going on around social. So they got big data, you got analytics, you got cloud, you got real time. All these things are changing the way people work and the way they expect to be served and communicate. So there's a multiple variables. So how do you guys look at your social software and the enterprise group because the consumerization of IT is happening. All those things are blurring together. So how do you view all those dimensions and what's the current update? So you're absolutely right. Like I think we saw the changes happen on the social web, public social web and we saw tremendous new economies if you will emerge out of that with the kind of engagement we got off things like Facebook and Twitter. And for the last six years up until, I would say, 2011, we spend most of our time really trying to forklift these public social concepts and dump them in the enterprise. And said, hey, if Facebook can get the kind of engagement it gets, we should have one of these in the company. But it never came. Yeah, recycle forums, recycle, kind of Q&A. Right, we started looking at every new feature that came out on the social public web. It says dump it in the enterprise, right? But the reality is that you had this sort of fifth tab in my browser had the social network but work was actually happening in my CRM system or my supply chain system or my email for that matter or documents, right? And so the way we looked at it is, you know, you're right, I came last year and what we set out last year at Orlando was a very clear strategy on what does social need to be like if it's going to actually have value in the enterprise. Now, what comes out of that is, you know, instead of looking at it as this sort of siloed application of social that happens in a corner, it's really what is the confluence of people, data, business process and content to really be able to do this correctly. And so we went back to the drawing board on what social can actually mean in the enterprise by really looking at how do you infuse social collaborative concepts into the applications where work actually gets done and where you face problems, where you feel like you need the power of your network, an opportunity in CRM lands in your lab, that's the point at which you need, like who are the experts inside my 60,000 person company that needs to bring it? They don't want to silo, they do not want to siloed applications. They don't want to silo and they want one that has business context. So we infuse it in our business analytics application where you see a number you don't like, you know, we're going to miss the quarter, we're going to make the quarter. Jam shows up right in there to help you with decision-making tools on pro-conning and what we're going to miss it, we're going to make it. John said this, Samir said that and you start to essentially do what you and I would do in the physical world when you saw a number, which would be let's get in a room and let's have a conversation. We're infusing social into those very applications, right? And we're doing this across our on-premise applications or across our cloud applications and then what you saw in the press releases yesterday is also on HANA Cloud, so that it's part of the core platform. If you're building a new application and you need social or collaboration, you just pull it. And they're building some stuff, synonym analysis for example, into HANA. So there's a lot of stuff being embedded into HANA to enable that, right? Yeah, exactly, and I mean, I think that's one of the big use cases we're talking about here today, which is one of the newer things we did is service. So how do you go from sentiment that you've captured from the public web? Turning that sentiment because you start to figure out what are conversations I need to be a part of? What sub-sector of those conversations need to be turned into real tickets in my support application? And then when the knowledge base doesn't have the answer, how do I unleash the power of my experts inside my organization or even my partners to close the loop for these customers? Because what you know better than most people is the latency or the tolerance we all have as consumers on the web when we deal with businesses is if it's B2C, I want the answer now. If it's B2B, at least acknowledge you're working on it and don't lie. Yeah, a gesture, I'll get back to you. Right, but how do you do that at speed? The only way to do that is at speed is have the entire organization connected so you can find those experts anywhere in the world to wrap around a customer. Talk about how someone gets involved with the software and the application because Ariba's out here, $4 billion plus acquisition. That's a business network, you're connecting disparate, essentially extra nets, if you will, in a modern cloud version of extra nets and you have analytics and you have connections, so different databases, so they might have different, how do I get those guys involved? Is it specific to the company? Do they have to be jammed, subscribers? No, that's a great question. So one of the other bedrock, the first sort of design ethos was social where you need it, in an application, on a device, on the network. The second is exactly what you said when we designed and we said we should not be in the business to tell our customers that when you have a core collaborative need, be that in a marketing process or a product management process, that you should be able to bring your entire ecosystem in there. So out of the box, jam is designed where whatever that business process is in, if you're building a marketing campaign and you want to bring one of your suppliers in, you should be able to do that, right? So when you talk about, you know, Ariba is the business, it should be very easy. It should be easy and the other things is because we have the application context, it's not like, you know, it's just standalone social. The metadata we have on who are the right people to bring in is very, very different, right? We know the structured data and we can tell you well, if it's in CRM, it's a lead in the Midwest this size, use that data to find the right experts for your organization. So only because we're SAP and because we own the very applications, can we bring this sort of integrated view of social. Does that make sense? Yeah, so I was just reading some Twitter, Mark Smith from Ventana group, I just picked up a tweet from yesterday. SAP McDermott Snubbs salesforce.com's chatter in regards to SAP Jim, well good, they recognize the Benioff factor. SAP needs help in CRM. What the hell does that mean? Needs help in CRM. You should talk to Mark. Mark's here by the way, I said item. He is here. He is here, yeah, yeah. So look, I think, you know, the way we're looking at CRM and I think you may have heard Jeff Lautenbach speak, right, is, you know, it's a really, really exciting value proposition that he's put in place, which is stepping up from transactional CRM for a minute, right? And let's hone in on, if you're a VP of sales, what is it that's keeping you up at night right now? It's not necessarily a feature in CRM or a feature there. It is, I had all these sales reps, I need to ramp up, I need to get them productive, I need to get them working, I need to be better at forecasting, right? And I need to make sure that my best customers are my best advocates. And so, the CRM. And I would also add one thing is that they want to put the right sales guy in the right situation at the right time. You got it. That is part of the larger sales performance story. And I think they've, you know, I mean, I love it, I'm biased obviously, because these are my colleagues, but I think it's a brilliant way of looking at it, which is this idea of prospect to promoter. And how do you look across that whole chain? So you're building deeper relationships with your customers. So, you know, we, it's, this is not about just the jam pieces, one piece that enables that, but it is, yeah, it is, what is customer relationships in the 21st century? So, I think SAP is absolutely paying attention to CRM. I think the messaging is really refreshing. And, you know, we've got the team to execute against that. Right? You know, I think one of those things you've been, I mean, CRM stands for customer relationship management, was defined in an analog world where you had leads and you had static databases and, you know, pump things through and leads pop up to the sales guy and, you know, the Glenn Gary leads, as he used to say in the sales joke, you know, good leads. And so, but that's changing now. You have now a connected consumer. And you have a whole nother dynamic, so that's going to completely redefine the customer relationship process. Which is when what I call, you know, putting the relationship back in customer relationship management, right? We kind of forgot about that relationship word. It was really a very transactive process, right? Of like, it was really customer record management in some ways, but to truly build those relationships with customers if they're on the social web, if they're not on the social web and taking that and having a consistent view, is going to completely change how we think about what we formally call CRM, right? I think one of the things that we talk about and we study a lot is an interesting trend, which is, you know, you look at Twitter and look at the social interaction, people are exploding their relationships and their social graphs, their intent graphs, their transient relationships, et cetera, et cetera. But at the end of the day, the exact opposite has happened since they've expanded their network effect. They're also looking for personal information. So the marketing is changing and it's a persona of one, right? So now we have the opportunity to use things like Anna to say, hey, we can actually market to the individual. We can build relationships to the individual. At the same time, give them access to the entire world of relationships. I think that's one and the other powerful part of the HANA side too is, you know, the, your ability to do two things. One is at the speed at which today's customer expects, be able to have that 360 degree view of what they're thinking, right? And second is be able to also have the flexibility to build what Bill talked about today, which is B2B2C, right? How are we helping our customers actually build out the B2C element? If I'm selling into a big bank and they want to build applications for loyalty management, right? It's a natural extension of how they interact with their customers. All that has to be done consistently. So talk about content, right? So content becomes a very big part of relationships. People like to gather around the watering hole or the water cooler, whatever you want to call in the old world. And they talk, the gossip, whatever you want. It is content. So content's at the center of conversations and relationships, you know, the sports, hey, the Bruins winning over time. It's a great win. That creates a lot of, you know. You're Boston guy. Yeah, had to put the plug in for the Bruins. The people come in the cube and they talk and it generates relationships, conversations, gravity, and content. So how do you look at the content? Content could be, hey, this is the backlog report. So I think, I mean, it's a great point. I mean, if you think about what I started with, right? Like the core sort of framework around which we're building this is built around people, process, data and content. These are all core social objects, if you will, that drive conversations, right? So whether, to your point, whether it's, you know, it could be something that's in the specific content around support. It could be around, you know, we do, one of the things we've done with Jam is integrated into our LMS applications, right? So when customers are trying to do learning and they normally would buy LMS applications for courseware, we've integrated social and informal learning into that because the content that you and I would gather around is not just a PowerPoint, but it could be, you know, I learn from you as much as I learn from a PowerPoint if we work for the same company. And how do I take tidbits of information? We have a customer, for example, 3,500 nurses and they need to wear a glove in a certain way, right? For insurance and safety purposes. How do you do that in a PowerPoint? So this is where you pull Jam up, video based, take a video, say, so you tie it to make sure it doesn't do this, throw it out in two days, by the way and you publish that, not onto some feed where it gets lost but you publish it and make it part of the institutional knowledge. You start thinking about the value, like we talk about content from a marketing perspective often, you think about the value of that kind of content to really improve efficiency and lower risk inside organizations. That's like, that's why we call it sort of putting the business back in social business, right? So talk about like the customers, I mean, you know, as a general manager you get visibility on the product roadmap, you also have to talk to customers and you know, one of the ethoses of SAP and Schnabe is probably the most humble of all the executives in the industry around this is that they don't like to brag and hype up stuff but they also go out and do validation. He won't do a GA unless it's actually like he talks to customers and then he scales. So you hit him on the stage today. Once we talk to customers, we lock it in then we scale it up. Where are you guys in that process? Are you still? That's a great thing. You know, it's something that is extremely important to us and we have followed SAP's legacy on this as we built out, you know, Jam is, it's like a startup inside SAP. We're 9.8 million users, we're not a startup, we've scaled like this for a year. Out of there, it's about 23 million on SAP. On SAP, but remember this, that you know, this is, a lot of that is net new. It's selling with a lot of island mass products. Still not bad penetration. 9.8 million. I mean, I think net new to me is as exciting as penetration as well. Yeah, yeah, of course. But we've got exactly... I mean, Schnabe told me off the stage after the press conference, the third of their business on Haan is new non-SAP customers. So yeah, that's net new. And success factors does a lot of that too, right? So we integrate with our success factors applications, right? So we go along with that. Now, to your question, what do you exactly that? I mean, we had 3M, the global VP of e-transformation brought in by the CEO to transform how 3M works. Talking about how they're using social collaboration and jammers, that platform of choice to completely rethink how they're doing, doing innovation broadly. But like, I think one of the most exciting things I heard him in his keynote today was talking about how they're taking their industrial innovation success and commercializing it for individual consumers. And they're starting to use collaboration to make sure that those ideas that were done for big industrial process, astronauts, for example, how they're bringing that kind of innovation down, right? So I think that's a... Yeah, so let's talk about flexibility. So I buy that, but the other thing is, is that every use case is different because culture factors into a lot of these companies. So like, there's no one tool. So that has to be adaptable. Absolutely. So, because social is social. So what do you guys do to make that adaptable? So we did two things. One is is, we've, you know, for our own sanity, right? Because SAP has so many places we can infuse jam, right? We've sort of done two things. One is is, we've built out out of the box what we call high velocity, high value solutions like learning, like CRM. Then half of our engineering effort to date went into building our APIs. What we call the get out of the way strategy. Yeah, yeah, APIs are good. Where customers can innovate their own and can innovate around, you know, if you're in fraud management and core banking, you know, you're going to have uses, very unique uses in terms of how you work this. This essentially gets us out of the mix and says customers can innovate as faster than us if they'd like to. But we want to make sure that we allow them to do that as much as we build out of the box stuff. And to me, that's super powerful. Yeah, absolutely, right? Absolutely. I know you got to run. I got to run. So I want to ask you a few more last questions. One last question. Sure. Share with the folks what you've learned and what jam is doing that is amazing. And share one, the most amazing thing that you've seen with jam. Yeah, so, you know, on a personal note, you know, I'm the luckiest guy in the world, right? In that, you know, when I talk about, when we look at this flavor of social, remember, I have the luxury of 40 years of SAP being in the application domain business and in the industry knowledge that they have. So when we start looking at doing any kind of transformation work, we don't start with, you know, let's make you a social enterprise or let's put a blog in your company. We start with these core tectonic problems inside utilities industries. And we build from then on. And on big infrastructures. Big infrastructure, you know, big platform. Yeah, this isn't a startup. Big capability. Well, exactly. So we're totally blessed because we've got that kind of breadth inside SAP to be able to take real business solutions to customers, right? Second is because we have all the application stack. We don't get siloed in sort of like, let's just talk about social and CRM or social and HR. We've got access to water to cash. We've got, you know, the entire process. And that's pretty powerful because you start thinking about back to your original conversation about how social is taken over the public world. This is about, in my opinion, one of the real ways that it has a shot to take over how we work on a day-to-day basis. It's super exciting. I think you're at the tip of the iceberg here. I think it's not even the national anthem being sung here because it's not even entertaining in my opinion. I think we're going to see an explosive creativity. I think when you start unleashing the notion of merging data sets really fast in real time, HANA, Hadoop, all these new technologies, and enabling developers to actually write code as infrastructure as code, DevOps, all the stuff that we've been seeing. That stuff comes together. You're going to see, in my opinion, an explosive developer community. So then we're in an API society. The data center, as Dave Vellante always says, is the API. And so we're going to start seeing that notion where then you guys are going to be out with Jam and that we'll be interested to follow you. Great to have you on theCUBE. Sameer Patel, general manager of the Enterprise software group here at SAP. This is live from Sapphire. SiliconANGLE's exclusive coverage live from Orlando in the global press center here in Aflora. We'll be right back with our next guest.