 From Orlando, Florida, it's theCUBE. Covering SAP Sapphire Now 2018, brought to you by NetApp. Welcome to theCUBE. I'm Lisa Martin with Keith Townsend. And we are at SAP Sapphire Now 2018 in Orlando. This is a massive event. Not only are there 20,000 people here, but there's about a million engaging with SAP this week online. Amazing. We're joined by a CUBE alumni. Welcome back to theCUBE. Chris Hallenback, you are the SVP of Database and Data Management at SAP. What they tell me. That's what they tell you, that's what your cards say. It is. All right, well thanks for coming onto the CUBE. So this event is enormous. Yeah. 16 American football fields is this space. You really can close your rings. Well it isn't, the energy is just crazy. It's actually different than other years. I don't know why, but it really is. You know yesterday, that's what Keith and I were saying yesterday. Bill McDermott really kicked things off with such enthusiasm and genuine energy. It was really amazing to see that. You don't see that with a lot of sea levels on day one. That energy was really palpable as was. Enterprise applications aren't that as sexy, huh? Apparently they are. Apparently they are now. Who knew? And that's a thing too, is you guys wanting to be one of the top 10 most valuable brands in the world up there with Apple, Google. And one of the cool things I saw yesterday on a bus out here was ERP that you can talk to and hear from. So taking this what was an invisible product and making it now something that people can engage with like a digital assistant at home. Remarkable. Well yeah, now the user interfaces which have been a huge, huge thing. We have these massive UX labs throughout the world. We have ones in Palo Alto. We have ones throughout Germany and other locations. And we've been really looking at how people engage with the software. And it's not only through a screen, although that's it. And we win all these red dot awards, the preeminent design award. We get those consistently now. Many a year for the work we're doing within UI with just fabulous work. But we're also, again, a lot of people aren't in front of computers anymore. So how can I actually just speak into my phone and get all the information I need? How can I have the device speak to me? How can somebody wearing gloves on an assembly line automatically they vibrate if they're reaching for the wrong bin and would grab the wrong part which create a faulty defective product? So it's all built in or actually shoes vibrating if something else happens. And so actually this interaction of sensors in two way taking IoT data in and then also feeding it back into signals. But that's part of the interface of the software. It's not always sitting in a screen. And if you are in front of a screen, they're actually pretty great to use. So speaking of these consumer technologies, we've had this expectation. And these technologies have changed the expectations of what our business tech is. We expect to be able to do things such as, hey, say what's the latest score from last night's game? And now there's these intelligent strings of having conversations with computers. All that is powered by the data on the back end. SAP traditionally hadn't been, we talked about it on stage this morning. SAP hadn't been known for the type of company to sub, add to the real-time data entry, real-time data analytics. You're all about data management. We heard something on the stage this morning. What was it? Data management suite? The mature database now. How many names SAP could love? There we go. What is that? What's that about? Well, now what we're finding, HANA enabled these incredible use cases. And originally we were all, we actually didn't run underneath SAP applications. An entire database, but really a data platform that people were doing these incredible innovations on. And then of course it really started to get swept underneath and it went under BW. And then it became part of suite on HANA. And everyone just focused that, oh yeah, HANA is just going to be like NetWeaver. It's just a system that runs underneath SAP. And we kept saying no it's not, no it's not. And it was sort of, but that was its main, that was where it was mostly getting deployed. And what you're actually seeing here at Sapphire is this massive break out of technology in full use use cases. That people are using it outside, even non-SAP customers using it to solve their individual problems. Really going after that huge, that 80% of data, which is non-SAP. But the challenge there with it, how do you handle that? Data is now sitting out in all these different clouds. HANA was known for orchestrating data, but it was really designed to do it on-premise. Because we knew not everyone was going to put data into our system. We came in late, right? And yeah, we're the fastest growing. But data was sitting in Oracle, in the teaser, and it's coming up and going into Data Lakes, running on a duke. And we could orchestrate and move that data into HANA or do it in place. Go to the cloud, it's totally different. Average customers in CIOs are telling you they have six to eight clouds. And you're like, wait, how did you get to six to eight? And you're like, yeah, they've got data in storage, just in Azure, in Azure, in AWS, and in Google. But they've also got in all these different cloud applications. And a lot are from SAP, but a lot aren't. And yet, and so companies are telling us, we've lost the view of who our customer is. We've lost the view of our business, which is the opposite of what you would have expected from this data explosion and digital transformation, which was like, showed up and disappeared in like two years. But, so how do you handle that? If I have data, so much data sitting out there, IoT data in the edge, log file data sitting in object stores, I've got data in different applications, data still on-prem, how can I actually possibly move that? There's no way to put it all together in one cloud. Everyone says, oh, bring it to my cloud. It's not viable. So how do I actually push compute, get the data I need, refine it in place, and orchestrate and move that together with the ultimate security and governance? Which is what our customers are wanting. They're saying, how, Chris, for our non-SAP data and SAP, can I move data for application integration? How do I do analytics? How can I preprost data and load it into a data lake or into a data warehouse? And then I'll come back and do some other cool stuff on it with data science. And that's all about by combining HANA and data hub together in a suite with deep integrations, technically, from a data center readiness. It's all as a service, runs in the cloud, because we're SAP, it's also on-prem enabled, if you still want to run it that way. And it allows you to solve these huge data problems. And we also help you, we bring SAP's intellectual property of data models to this. So you can use things like enterprise architecture designer and say, look, we don't have a model of customer. I'm like, well, yeah, what kind of industry are you in? Okay, I've got a high-tech customer model pre-built for you. So then you don't have to build that from scratch. We bring the things to you. So now you get very, very quick value right from the implementation within weeks. And that speed is obviously essential. Well, HANA's a terror, which it's known for. But you're right, sorry Keith, you're right that in the consumer world, because we have access to everything, everywhere, from so many devices, as business people expect the same thing. And so that speed is critical. You talk about multiple clouds, data in so many different sources. It's not valuable unless you can actually harness it and extract insights that may only be viable for a quarter or something like that. But nobody even knows where the data is. And so you look at, like we're about to, we were talking about HANA, I just came back and we're coming out a little bit later the year with HANA Data Hub 2.3, which is part of HANA Data Management Suite. And that actually has a whole metadata repository. So somebody knows what they're doing, goes in and maps out where all this data is located. And actually they don't even have to do it all themselves. It's got heuristical and semantic search to automatically map and categorize data. I can then map that back to like my definition of customer or supplier and other things. Now everyone doing all the analytics and doing exactly what you were talking about Keith, where can I just say into my phone, hey, someone in board meeting goes, hey, what were our results within to peak last year over this year and show and break that down by city and have it just pop up just like you say to somebody, hey, high school football game. Didn't those two play together? Anyone can do that on a mobile device, but we don't know the data in our own company. How do you do that? And then let HANA Data Management Suite will automatically know where the data is, orchestrate, go get it, pull it together and deliver that back to a mobile device that you might have spoken it to. Do the favorite customer that articulates just what you said? I do, I just actually walked out of a session. It was just, it sounds a little boring but it's incredible what people are doing. So I just walked out of a thing with the Swiss Federal Railways. Sounds boring but I live in Europe and everything is by rail, right? And so they're doing about a huge, about 60% of the rail traffic there is passengers, 1.25 million passengers a day plus the balance of 40% of the trains are freight. They're having a huge problem because you use huge, it's all electrical and they're trying and so when you get up and it's growing rapidly and so they're having to, and they do their own power with power plants and when they go up with power plants, when they go over peak they have to spot buy at just massive times a premium on that day, on that. And we're actually doing this a lot of places out of rail but they also use electricity on heaters and other stuff in the cold winters and air conditioners. They're now streaming information off the trains, off of the points, all the way along the signals and from all the power plants. They know peak usage. It automatically detects when they're going to go over and rather than going into the plants it actually cuts the heaters off for a second here, there. There's heaters and all the switching equipment. They know how long they can do it. Honda managed, this is automatically, so it's IoT in but it's automatically making automated business decisions, shutting down systems programmatically, intelligently actually using machine learning and keeping it, so now what they do, so now they don't need to go out to the spot market and buy energy anymore. It has cut their electrical usage by a third. How much money have they saved? No, well it's a third is how much money they've saved. The electric is still high but they're not buying that really, really expensive. The premium. Premium. Got it. And so you're streaming data, it's all over, it's all happening in real time and it's automatically kicking off business processes without human innovation. And then it's a platform for them where they're adding all this new capability to save in other ways. And so it's just simple but clean, really good use. Good for the planet, it's great for the customers and now they have, and by the way when you hit those peaks, that's when they short out systems and that's when trains stall out. So actually you're getting better servicing of the trains. So yeah, it's a good story. So, edge core cloud, great breakdown of kind of the use case, the data's been collected at the edge, data may not even be collected in SAP system. No, and that's fine. Not as some other database, which is great. It's reality. It is reality. And one of the things that I think architecturally that enterprises have a hard time wrapping their hand around, HANA, Emory Database defeats latency when you're inside the database and when you're inside of the data center. However, you were thinking about HANA data management. Wait, how does the Emory Database impact in data management, impact data retrieved from the edge? Help explain the importance of metadata and willing down that data so that we can get it back to the cloud and process the important data. It's a great question. Sometimes, HANA's not, although we like to go, it's a hammer and we think everything's a nail, but sometimes you don't, which is why we have Data Hub and it has unique capabilities for doing something called data pipelines and movement. So we can actually do all the data transformation, movement, calling TensorFlow and fly. We do this as the data is in movement. So we're actually doing all of that processing as it's moving through. If you need extra horsepower and want to combine different data types and there's certain capabilities pipeline engines don't solve well, HANA is a service, which HANA is now completely cloud native. They can actually bring up HANA in a few seconds. It will take the data flow in, compute it. It's not being used as database. It's a compute layer out at the edge. The data flows out to move on to the next step, usually via data pipeline from Data Hub and that service gets shut off. So you just pay from small compute when you need to bring out the big guns and then it moves on. And maybe that data never comes back into a HANA system, maybe it does, but you're using the technological underpinnings of in-memory computing in this way as just literally a flow through compute engine. And I think that's the disconnect that a lot of organizations have because you associate S4 bases, BW, all these applications on top of the database. They don't think of HANA as something that you can spend up, spend down. But that's brand new. And that is what we just announced from when live last week. So HANA was, it was traditional on-prem system, bare metal, run virtualized, but I mean, talking about big iron, run on HANA systems, now to actually have it. So HANA as a service came up, we rewrote the entire thing to make it completely cloud-native and orchestrated. It's all containerized and elastic. It runs, it came up last week running an AWS and available also in GCP. Our target is a little bit later this year, I was after you, safe harbor language. It'll be coming up in Azure and out through all the rest of SAP's data centers. And then also coming out in Asia through Huawei and coming up in those data centers as well as some others we have planned. And that's where you actually get this fully elastic HANA that's able to come up and come down automatically. So this massive transformation that you guys have achieved in 46 years, we'll say 46 years young, 390,000 customers, you didn't get to wear, SAP didn't get to wear it is without having a really robust symbiotic partner relationship ecosystem. We're here in the NetApp booth. There's 150 partner sessions alone at Sapphire this week. Talk to us a little bit about how the partner ecosystem is helping you guys give customers the flexibility and the choice that they need. Yeah, no, and it is SAP can't do everything. And so a lot of the aspects are that we look at in very different ways. Of course some companies and the big corporations we deal with need strategic SIs, these strategic integrators to do consulting and other pieces and we work really closely with them on and they have specialized practices and other things on both HANA, they're extending out into the HANA data management suite. We do the same thing, so we realize you need boutiques. We're the fastest geospatial engine in the world, but that's a very niche piece, although geospatial is maybe the hottest data type out there happening right now. Those are very specialized boutique firms, so we work with all of those and to help our customers when they need that. So we work with a lot of specialists, we work boutiques, but we couldn't do this without hardware partners, with storages, which is why we allow, still a lot of folks running on-prem, so we still laugh to have all these things, that we have HANA, Taylor Data Center integration, so you can certify your systems like NetApp, you can certify everything else on-prem, so you don't have to rebuy new hardware, use what you have, not trying to get you to buy a bunch of new appliances. And then the other one is, a lot of ISV and OEMs has started building out on HANA, but now what they really want to do is go directly on to HDMS as the cloud offering, because it runs both in any cloud, which is a very unique differentiator that we run in every major cloud out there, as well as coming back and running on-premise, they can deploy their applications very risk-free, with the extreme security and governance we're providing within that stack, to build applications that they want to sell and use for enterprises. So you've been with SAP about six years, you said, and even Bill McDermott said in his keynote on day one, biggest sapphire ever, you've seen a tremendous amount of growth, the momentum here is so palpable, types of validation that SAP is getting through the voice of the customer, through partners like NetApp, the different partner ecosystem, that validation is electric. What excites you about, everything that was just announced in the last couple of days, about the rest of 2018, where do you go from here? Oh my God. Okay, it's like ask me to pick my favorite child. But honestly, you get to see the innovations that I still enjoy, I love the full use use cases, because I'm like a compute guy at heart, but I see all the applications that we've done in these demonstrations. The fact that people have applications that are giving all of the analytics in line with the transactions, on these gorgeous UIs, when you run these things on a mobile device, that means the data layer is 20 milliseconds to actually not only grab the data, but to do all the predictive analytics and everything you see to give you that nice two second screen to screen time on your mobile device. And that's what we've worked for six years to enable. And now we're seeing that potential coming out at places like Swiss Rail. Just was talking with Gustav Rosy, they're the biggest cancer research labs and hospitals throughout all of Europe. They're doing all this genomic research, personalized medicine for cancer patients throughout Europe using HANA. I didn't even know about it. Or other ones we talked about, beet farmers, talking about smart farming throughout all the Netherlands, reducing pesticide use, water usage dramatically down, and they increased yields by 10%. I mean, and they're doing this on native HANA, so this area for me, the excitement of people and busting out of the SAP core traditional CIO market and moving into this 80% of data is to me exciting that people are seeing that HANA is not just an SAP appliance, but it's really a general purpose data platform for these innovation use cases. Helping customers change their business, change industries, save lives, pretty cool stuff. Yeah, I think so. Chris, thank you so much for stopping by the Cube and sharing with us your enthusiasm and your excitement for what you're doing at SAP. We appreciate it. Well, thank you very much. This was awesome. Thank you guys. We want to thank you for watching theCUBE. Lisa Martin with Keith Townsend at SAP Sapphire 2018. Thanks for watching.