 Live 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 Console Inc, the cloud internet company. Now, here are your hosts, John Furrier and Peter Burris. Okay, welcome back everyone. We are here live at SAP Sapphire. This is theCUBE SiliconANGLE's flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier, my co-host. Peter Burris, head of research for SiliconANGLE Media and general manager of Wikibon Research. Peter, day one's in the books here. Wrap up here to kind of extract the signal from the interviews we had and squint through all the 60,000 people that are here. The day one keynotes, we had Microsoft CEO up on stage. We had IBM here on theCUBE, former CUBE alumni. We've had Cisco on theCUBE, a lot of SAP people. Partnering is a big theme, right? Beyond the normal, we're partnering, we're open. Very clear message. Integration around a core in the cloud on-prem is the key thought that I'm seeing. What do you think? Take that premise, and what are you seeing? Yeah, no, I think you're right, John. I mean, look, we started the day by suggesting that there were a few things to really look for. One is that SAP is one of the few tech companies that, IBM being another one, that has a track record of acquisition success. And when you start getting successful, there's always a tendency to say, oh, maybe we can do it all ourselves. One of the other themes we were looking for was, is SAP going to start talking about attacking and acquiring customers from other competitors? And certainly what we heard today, a lot more is number one, SAP does not think it's going to go it alone, that partners are as important as they ever have been and are likely to be even more important. We heard it from a channel's perspective, we heard it from a big partner perspective, we heard it from Dell, we heard it from new technologies, new approaches to thinking about technology. We've heard the notion of SAP more at the center, to SAP being a part of something. So a lot of it, a lot of the message boils down to a recognition that the ecosystem needs to accrete value faster and that customers want a bigger SAP ecosystem and not just a bigger SAP. Yeah, and I think you made a comment on one of the interviews, which might have been with Joe Coyle, CTO of Capgemini, global CTO. This guy's talking to all their top customers. You made a point that I want to bring up and get and expand on with you because I thought it was so relevant, so right on. In the old days, you knew the process didn't know the technology and that spawned SAP, that spawned Oracle, that spawned a series of siloed application stacks and companies that went public. That's enterprise software. Now you're shifting to a world now where the processes are now known, now with big data, you can measure everything, certainly everyone has to- Actually it's the other way around. But the basic point is that we used to have- When I get right. No, we used to have known process, unknown technology and now we have unknown process and known technology. Yes, that's exactly, thanks for clarifying. So the question for you is that is going to be a game changer because what's going to happen is companies will fill the void. So the technology now is the powertrain engine for innovation versus predicating syntax to technology and making it work. Just expand on your thesis on this. Yeah, obviously it's related, right, John? Because on the one hand, technology for many years but when we say known process, unknown technology, what we're talking about is we were automating accounting. We were automating finance. We were automating HR. All of those processes are largely given externally. The SEC tells you how you're going to report. Commerce department tells you what an employee is and what an employee isn't here in the U.S. Hacksation says it's a 1099 or a W2. We got pretty good ideas about all those processes but what was unknown was the underlying technology. How do we make it work? How do we make it run? And you're right, that spawned this enormous industry that was intended to make it possible to take all of this stuff and deploy it on technology that was very complex. Now the cloud starts to change that and also the fact that now we're trying to bring technology to engagement and how we go to market and how we work with our customers and how we could create. And so it has a number of implications. One of the most important one is we used to focus on taking cost out of the business. Now as we worry about engagement, we're focused more on the top line. How do we generate new revenue? Used to be that we would spend all our time worrying about very, very complex contracts and getting it right because we had to protect ourselves from future opportunistic behaviors on the part of our suppliers. Now we're talking about speed and getting it done fast and trying to ensure that we can respond and have the right set of relationships with our customers. Well the customers have a forcing function. They have needs, like you said, top line and growth. So with real time and now with mobile and kind of consumerization which came up again. But it brings another point up which is, okay, I want to run fast, okay? So new capabilities are emerging. So unstructured data, IOT, big data, new things or new inventions are being discovered by startups. That's one thread. So let's talk about those kind of things that are going to pop out of the woodwork in terms of new things that will change the process flow. Disrupt the existing known processes. So the unknown will become known and will disrupt the other processes. And then second point, I want to just put this in there and get your thoughts on is that we heard the thought here was from SAP and it's clear that they're going to scale their organization through partnering to capture this new growth. So those are two, unpack that and dissect it, analyze it. Well we didn't hear anybody at SAP say it outright but they kind of suggested it. That their play in this whole ecosystem notion is, look, we have more visibility into operations than anybody in the tech industry because 300,000 big companies are running their operations on our software. So the question is, can they parlay that into a set of conventions and standards and approaches that basically says, go off and do whatever you want and we'll show how whatever you want to do in engagement and mobile and cloud and we'll show you whether or not it's going to be compliant with those core back end systems. Very, very powerful play. But to your point, very importantly, they also said that while they kind of intimated or suggested that that play didn't say it outright, they also very clearly said, this is a challenge that can't be done by just one company. So the whole notion of the ecosystem and how we work with partners and the value the partners bring and we even had a couple conversations in theCUBE today where we outright said, are you going to go to customers and say our partnership with Company X is better than somebody else's partnership with Company X and they say, yes, we are. We're going to prove it. We're going to demonstrate it. So partnerships is absolutely becoming part of the value proposition of SAP and it's only going to become more so. What do you think about it? I mean, you had some great questions today about, for example, talking about, well, I was going to mention the Reggie Jackson. I know, because that was my next, well, let's get the Reggie in a minute. That's going to be a good 10 minutes. I mean, I thought, I thought I'm very interested in HANA Cloud because I think that's an opportunity for them and I think SAP has not done a good job promoting and articulating the value proposition. I think, you know, they're still, I don't want to say fumbling or stumbling, feeling their way through to the market and clearly we heard from them that they have a platform as a service which has a ton of value and they could have to extend that value but they didn't want to be an infrastructure provider that came from the app down. Now Oracle had son, we heard Larry Ellison and we had Mark Herd, I interviewed Mark Herd, Mark said, look it, we attacked from the app and from the infrastructure so their middleware or their pass is all Oracle. So Oracle has a different advantage as SAP. So the HANA Cloud has an opportunity, in my opinion, to be the galvanized gravity, center of gravity around an ecosystem of integration and I think the integration equation is something that I believe is going to be the new barrier to entry for startups, certainly, because anyone could build an app these days to hackathon, but to scale at the level of enterprise with unique kind of weird requirements from compliance to innovation has a little bit of nuance to it. So as you know, enterprise is a fickle world but the integration component could really screw things up. So that's one, if I have legacy vendors and I'm just mishmash them together and kind of throw the cloud over it and cloud wash it, that's not really going to help you because the data is at risk. So it's really going to be a very interesting thing and I think HANA Cloud looks like a great promise to me, at least from that integration. Yeah, and SAP, as you said, SAP is HANA technology, is HANA Cloud something that we offer? Are we going to OEM this out? Some of that's got to be worked out but to your point about data integration, HANA actually, HANA makes it possible for SAP to have a greater influence over how its own data gets integrated in its ecosystem and they didn't have that before. And so I think you're right. I think it presents a whole bunch of new potential and options to SAP as they go forward. And then given that, and then given some of the things going on at the event here, obviously the Microsoft news, they have a relationship with AWS, we'll be at re-invent with theCUBE Live, is that EMC does the same thing. So I'm going to kind of do a little critical analysis of SAP now and SAP consider this constructed criticism because we like you guys. And EMC is the same way, Naudel. IBM has a partner event. I mean, they treat their partner event as big as an end user conference. SAP and EMC just last week, they have a kind of side little throwaway event. I'd be insulted if I was a partner, like what? I'm like, so traditionally it was an end user conference, guys who write the checks. Now with the integration and with the partnerships in the channel, the integrated ecosystem is so important, whether that's analysts, developers, to a new class of developers who might not even write a single line of code, that's the big discussion in Silicon Valley. As you know, there's a trend towards non-line writing code developers. If the ecosystem basically becomes Lego designers and implementers and developers, I think SAP and EMC and others will have to evolve and my prediction is they have to have an event of this magnitude, not necessarily 60,000 people, but a tier one event for partners around some of the challenges, not just a throwaway boondoggle or a sideshow of another event. It's got to be standalone, you stand up an event dedicated for partners, the event, the content is designed to make the partner successful. I think you're going to see that pretty quickly. I agree with you, John. And by the way, I think that this is going to be one of the places where probably a whole new class of engagement models between companies like SAP and the ecosystem become featured and become a part of the overall competitive thrust of different companies because that event catalyzes things. A lot of content gets created, a lot of ideas get generated, but it's how you sustain that momentum over time that's really going to differentiate the options. The other data point, Peter, that I extracted out of this is more of an industry view. This is kind of a flash point that kind of connects some dots for me, which is every event, Amplify was going on at Jampa for IBM, was watching the live on ibmgo.com this morning, the event through our digital experience hub that we're providing for IBM, and all the events have the same theme. It appears now that every event is a cloud event. No matter what the vertical, it's a cloud data event. Every single keynote, every single core message is about data. Every single core concept is about leverage of the cloud. We're there, and we are on the doorstep to this unknown set of new things coming, whether you call them innovations or processes, that is going to be a very disruptive enabler, in my opinion, so that's super exciting. So to me, it's clearly that cloud data, or big data or whatever, will be fundamental stack kind of technology. And let me refine that a little bit, John, because you could go back five or six or eight years and a lot of events also mentioned cloud, but it was like, yeah, cloud, interesting concept. Workloads anywhere, easy, seamless administration, and then you buy the new hardware to do it. Now, because that public cloud stuff for this is going to work, now we heard today four or five times, well, you know, public cloud's actually working. It's got some work, Azure. That's going to be an absolute crucial feature of the solution set of the feature. We heard for the first time in a major vendor show of this magnitude. Major competitive clouds mentioned in the same event. Azure on stage with the CEO, top IBM executive who basically built the analyst division, it's the problem about Blue Mix with HANA, and sitting down with SAP. This is, to me, validation of a multi-cloud world as Pat Gelsinger predicted four years ago. So if you believe that to be true, and I think that will be the case, data will be differentiation, and inter-clouding, connecting clouds, will be an absolute new kind of thing that no one yet has put the stake in the ground saying this is an opportunity. And that's why I like Count Console who's sponsoring us because the startup in the Bay Area, they're interconnecting clouds and creating a network effect around it. So, super exciting, it's just a great opportunity. And so, I love this event because you can see the whole industry landscape, but Peter, the favorite interview was Reggie Jackson. So folks, we interviewed Reggie Jackson at the beginning of the day, it's on YouTube, so you go to youtube.com. It's on SiliconANGLE, and you can find the Reggie Jackson interview in full. It was a great interview, and it's always hard. You don't know these celebrities, they're always doing stuff. It was the beginning of the day, he was fresh, he was on, and you know what? He's got Reggie's garage, I think he's doing with SAP, he wanted to talk baseball. I was so thrilled, Peter. He wanted to talk baseball, and I love the questions. What was your favorite Reggie Jackson moment? Look, my favorite Reggie, you asked him what's the advice you give to a young kid? You have a freshman in high school, you've got a bunch of kids, but you've got a freshman in high school who's playing varsity soccer, young woman. I've got a junior in high school who's going to be a senior next year. It's been first team in her little basketball league in Northern California. And so, asking him the question, what advice would you give to young athletes really resonated with me? Why? Because you said, listen to your mom and dad. Oh, home run. Because they'll always be with you. You said, dream and listen to your mom and dad. And then he bought that back to the notion of business. You got to dream, but you have to acknowledge the reality of governance and what it means to do the right thing. Because you had a great question. I'll ask you, what was your favorite moment? It was a blur because he's won a legend and just to sit down and have a conversation like we're having a beer is fantastic. You know, I don't even know what I had for breakfast. Never mind the questions. I'll take, you asked a question about unwritten rules. Oh yeah. The unwritten rules won. I wanted to go there because I wanted to make a parallel that was baseball and have fun talking baseball because it is relevant with the Batista event that happened two days ago where he got cold cocked at second base, which was a grudge from the home, walk-off home run in the World Series. Again, all that stuff is phenomenal. But this is where I saw why I wanted to ask that was, we are now living in a world where social media, people are becoming brands and there are pretenders out there who are influencing the crowd. And I wanted to ask them, will that affect, some are brand themselves. And I wanted to ask them the role of a brand in context to a team. Because that's a challenge that a lot of companies in the digital marketing space are trying to figure out is who's influential. If someone says they're influential and they buy a lot of followers on Twitter, doesn't necessarily mean they're influential. It means they have a lot of followers and they come up on the leaderboard. But can they play in context to a team? And Reggie said something. Joe Montana didn't work on his brand. He worked on being great. He worked on being great. I love that line because that means if you work on being great, then you will become a brand. Then things will, you get entitlements and benefits of being great. I thought that was a phenomenal tie-in. And I love that. Dream, be great at it and be authentic was kind of the three kind of things, Reggie, that apply both to your and my kids, anybody in general, but also business. And then what happened after the Reggie interview for the folks watching is that when we ended the interview, he stayed here and chatted with us and Leonard Nelson got some candid, or producer, got some great footage, pulled out his phone because it's like magic's happening. You got to basically start recording it. He saw it. He started sharing this unwritten rule thing and he was expanding. It was really interesting and I'll share it here is that he said they all know the rules. And he said that he was really frustrated by Major League Baseball management, trying to structure the game to kind of create policy, to funnel the game and make it become something outside of its organic evolution, which is the norms of the players. And what his whole point was, Peter, was let the players natural dynamics play out and let that include social media or what other things, but don't take away from the nature of the game. And throwing at someone's head, he was like, he has no problem with that. He's like, hey, you know, if you're going to take out our franchise player, we're going to take out your franchise player. If these rules get watered down, then you're going to have mass chaos. Well, you'll have unknown, uncertain behaviors. It will happen, but you won't know how to respond to it. And that's, I think that's a, that also is true in a marketplace, that the rules today are changing, but at the same time, businesses and customers have to work together and have to presume that they can co-create if they follow good standards of conduct and good business as they try to achieve the outcomes that they all see. My favorite Reggie line though, was a personal note, one of my favorites. They're all, I mean, the interview, I'm going to go watch the interview tonight in my room. Well, you and I are both Northern New Jersey boys, and Reggie played a big role in our lives. And I'm a Red Sox fan, so I grew up in the 70s, so my heart was broken. I was the worst, darkest time of Red Sox fan, besides the Babe Ruth trade, but I wasn't even alive then. But Reggie's car buff, and he's got this, Reggie's garage was the big site, he's building an e-commerce site with SAP. So I asked him what his favorite car was. And I think it was, he had 62 Corvette, was it? 62 Corvette. 62 Corvette, he's got four of them. He had two friends that had them when he was in school, and he wanted one. And now, his birthday's tomorrow, he's going to be 70 years old, he's got four of them. You know, guys who collect cars always say the guy who dies with the most toys wins. And that's the mentality of that. And Reggie's got four, he just won up his rivals from high school. Great day, Reggie Jackson. And again, you know, clear lesson for the tech world, certainly business. You want to be a player, let your game do the talking, be great, build a foundation. Dream, something you're passionate about. He just very quickly, he also talked about, he also talked about his website, you know, that he's going to have 150,000 car parts being made available on his website. Loves cars, got a passion, turn into a business, do it right. Well, the thing I'll share, just to end this comment here, was that he said dream. And, you know, a lot of people give Silicon Valley or entrepreneurs, you know, kind of a lot of crap about, oh, they're dreamers. Of course we're dreamers. Every entrepreneur is a dream, they have a dream. But he said something interesting. And he was relating to the athlete, to your point about advice. Dream and build a foundation. Build the building blocks. Don't try to, like, take shortcuts. Well, he was implying, he didn't say that, but be great. Be great, get the building blocks, listen to your parents. Great stuff. Scholar, listen to your parents. All right, we are here, live in Orlando, day one. We've got two more days of wall-to-wall coverage. Go to SiliconANGLE.tv, go to SiliconANGLE.com for all the news and coverage. And check out youtube.com slash SiliconANGLE. Of course, crowdchat.net slash Sapphire now is the conversation. I'm Jeffery Peter Burris. That's a wrap for day one. See you tomorrow, day two coverage. We'll see you tomorrow. Thanks for watching.