Good afternoon, and welcome to our Financial Analyst Conference here in Orlando. My name is Stefan Gruber. Thanks for all of you to join us here in Florida. Again, very good attendance. I would like to walk you through the agenda of our Financial Analyst conference today and move directly to the agenda slide.
You see here, we'll kick it off with a presentation of our group CFO, Luka Mutic, will provide a recap of our strategy, including a recap of the key highlights of the keynotes of the last 2 days. Luca will also talk about the financial implications of the strategy, unsurprisingly, for a CFO presentation, including an update of our currency expectations and the impact on reported numbers for the remainder of the year. Then we move to the cloud panel. You see lots of names here, Elena Donio representing Concur Rob Brim for Field class, Alex Asberger for Ariba and Mike Edling representing SuccessFactors. We know that you want to learn more about the newer businesses within SAP.
And we felt a cloud panel is the appropriate forum. It will be hosted by Todd Friedman, who was the Head of IR of Concur prior to the acquisition of SAP. Then we move to digital as the new normal, a presentation by Steve Lukas, the President, Digital Enterprise Platform, Steve will cover our analytics portfolio, but also we'll talk about the HANA Cloud Platform. You see then there is a brief break, and then we'll finish the event with an executive Q and A session. I have a couple of housekeeping items, and There's still paperwork in front of me.
So investors and financial analysts are invited to attend our informal evening reception hosted by SAP Senior Management At the Norman's restaurant located at the Ritz Carlton Orlando. And I know that most of you stay at the Hilton, so we have shuttle buses running from the Hilton to the Norman's restaurant and the buses will depart at the lower level of the Hilton Orlando promptly at 7:30 and 7:45 p. M. And this is located between David's Club and the marketplace down the escalator. So they will not depart in front of the main lobby of the Hilton.
And Maybe more importantly, for those of you attending the concerts tomorrow evening, please pick up your tickets at the registration desk located at the Media and Analyst Center And buses to the Amway Center will leave from the lower level promptly at 6:15 p. M. Tomorrow evening. Finally, I have the webcast information. As usual, this Investor Relations event is webcast on our Investor Relations website.
And we'll make the slides available for download after the event that will be at roughly 3 p. M. Eastern, 9 p. M. Central European Time.
For the Q and A, please use 1 of the roaming microphones so that people on the web can follow the entire dialogue. And we also take questions by e mail. Please do send Questions by e mail to investorsap.com? And finally, that's the long version of the Safe Harbor statement. I'm supposed to read the shorter one.
Please note that except for certain information, matters discussed in today's conference may contain forward looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. And the factors that could affect the company's future financial results are discussed more fully in our most recent filings with the Securities and Exchange Commission. Without further ado, it's my pleasure to hand over to Luca Motich, our CFO.
Thank you. All right. Welcome everybody to SAPPHIRE from my side as well. It's Great pleasure to see all of you, and I hope to be able to meet many of you for the investors reception this evening. As Stephan has said, a great tradition that will also in the keynotes is really about SAP helping our customers run live in a digital economy.
You all know that we are subject to a tremendous transformation in these days where entire industries are becoming digitally enabled and digitally empowered industries. Digitization is disrupting business models across even the most traditional industries like manufacturing and many others. And so companies need to adopt digital capabilities, they to some extent need to become technology companies themselves in order to stay competitive. We have been talking about this trend a lot already through the past few quarters. And we have also said that SAP with its digital business framework with an end to end vision covering truly transformational digital core business process capabilities and extending them with market leading cloud based agile solutions that can extend the reach of customers and throughout their entire value chain to digitize the entire chain is a truly differentiating feature that only SAP can offer and it drives our success in transforming to become The cloud company powered by HANA.
I do not want at this occasion to just repeat what I usually do then at this point and explain all of the features of our digital business framework in a lot of detail. You know all of that. But I want to give you a few short highlights of what we announced and what we covered at SAPPHIRE around all of the components of our digital business framework as I do not know, for example, whether everybody of you has been able to participate in yesterday's keynote already. So let's start with the digital core with our core business process platform, As for HANA, I think it's clear today that the transformational groundbreaking brand new features of this new business suite of SAP are understood by the market and by our customers. We have groundbreaking results in terms of simplification of the architecture, simplification of the user experience, increase of throughput, compression rates and so on.
So for our customers, the why question of why should I consider Moving to S4HANA, I think, is answered. The answer is out there. Now it's all about the how and about the when. And this is exactly what we tried cover during yesterday as well as today. We have on the one hand clear customer cases that are now Live, we have run about 170 live customers on S4HANA to date.
And you saw a number of them on stage. For example, Sabre talking about their very quick and very risk free migration to S4 in a period of roundabout 6 months where they now are able to have real time visibility across their entire operations. They really had a very fast time to value through the Fiori user experiences that their users could adapt very easily with not enough not a lot training. And we also heard about examples Like Burberry are really now running based on the help from SAP a 3 60 degree view of their entire customer relationships. The CIO of Burberry has talked about SAP being a real business partner, not entirely only a technology provider.
We had the example of Under Armour, who are using SAP as a transformation engine to transform themselves to a data driven enterprise actually becoming, if you want, a health care data accumulator and provider, not just a seller of shirts and shoes. The examples go on and on. You have seen today, for example, in the keynote what Siemens is doing based on HANA to transform their huge and vast application architecture towards greater simplification. So we are on a roll with this regard. And I think those customer testaments will help to pave the way for mass adoption by broader sets of our customers.
And we want to ease this. Hasso Plattner tomorrow in his keynote will demonstrate how easy, how fast and how risk free a migration towards S4HANA can be. And we have come up with a value assurance package, which consists of predefined services that are meant to guide a customer fast to value realization and value understanding that also our ecosystem is now sharing and adopting together with us increased roadmap clarity that we are providing in order to really remove any barriers to consider S4HANA as a risk free way to adopt true transformational capabilities. Let's talk a bit about the platform, about the HANA platform and our capabilities in this area because this is very important as well and came with a lot of news in the last few days. HANA is truly transforming very quickly to become The industry data platform of Chiliz.
You have seen yesterday that Microsoft, Satya Nadella, the CEO of Microsoft was on stage together with Bill Talking about the collaboration between Microsoft and SAP to bring HANA to Azure and make it available on a scaling cloud platform basically in different workloads and different T shirt sizes that really many of our customers can adopt it as a service based on Azure very quickly as one example. We have talked about a lot About the HANA Cloud Platform, for example, today in Bernd Loykat's keynote becoming the integration extension and transformation platform on which customers, our entire ecosystem can build their value adding scenarios and extensions and make sure that they integrate seamlessly into their Digital Core. Companies like Siemens, for example, have adopted the HANA Cloud Platform in order to run their IoT scenarios based on The HANA Cloud Platform. We have had the announcement with Apple just a few days ago, shortly before Sapphire, We are collaborating to really open up the entire vast ecosystem of iOS developers and the SAP ecosystem of developers to a joint development environment where actually iOS applications can be built with native integration into S4HANA, a huge effect that we expect from this partnership.
And of course, you have heard as well the Intel CEO Talking about how HANA combined with an IoT scenario has helped to transform in retail processes around the stock clarity and stock visibility for major retailers. So the HANA Cloud Platform and HANA continues to show fast adoption and widespread adoption among our client base. But it's not only about HANA. When we talk about platform in a wider range, we had important announcements around business objects and analytics in total. Clearly, you have seen the digital boardroom.
You may have seen it last year when it was a concept car. Now it's a standard product that is scaling super fast that is fulfilling on a vision for end to end BI and planning all consumed in the cloud, but with the ability to access data from on premise sources, We believe that this will be one of the fastest growing cloud products that we have ever established in the market. And on top of that, we have now beautiful Mobile analytics capabilities for the acquisition of Roombi, which we will bring as part of our business objects packages to our customers, which we believe will be very well received as well. And finally, with HANA VORA, we are opening up a whole new world of super fast query analytics capabilities on Hadoop workloads, which will be extremely appealing to anyone wanting to make sense out of huge big data environments. So that's about HANA and the Digital Core.
But of course, it does not stop there. We have talked a lot about The cloud solutions around SuccessFactors Fieldglass, our total workforce management capabilities that are second to none in the industry. I don't want to go into a lot of detail here because we will have the cloud panel on all of those. Clearly, the business networks continue to be an extremely strategic part our business around Concur, Ariba and Fieldglass, we are adding now the idea of a connected health care network, as Steve has outlined In the morning in his keynote to this equation, we are very excited about the early partnerships that we are forming in this area, and we believe There is going to be a lot of value that we will generate over the next few years in this business with the idea of personalized medicine, a data driven Liberation of the end user, so to say, in health care that we are able to achieve. We have talked about customer engagement and commerce a lot in the notes.
So we have seen first examples of machine learning driven scenarios providing personalized product recommendations, for example, based on user profiles. And there is a lot to come in this area. But the most important factor in this area is that we will double down on our commitment to seamless integration between those assets and within the digital core. I think SAP must be, as Steve has rightfully put it, both best in class in those different cloud workloads, but also the best in integration and through HANA Cloud Integration through increased investments within our plan, don't worry, in order to make sure that we can accelerate the integration as a priority in our portfolio, We will make exactly this happen. Those are some of the key strategic updates that were covered at Sapphire.
We are very comfortable where we are as a company. And I think we are hitting the nail on customer sentiment and customer interest in tackling exactly those points, including the clarity of roadmaps, including the clarity of value realization through our value assurance program and including the clarity on integration. So what does This all, I mean, in terms of financial terms. Stephan has said it. I want to spend some words on numbers, obviously, as well.
As you all know, we are Following SAP since a long time, we have been undergoing a tremendous business model transformation for the past few years. We're extremely successfully scaling our cloud business. This quarter, Q1 2016, was actually the 12th consecutive quarter with 30% plus organic growth in the cloud with 33% growth. We are at the upper end of our guidance range in terms of the revenue performance in the cloud. That means at the same time that we are gaining a lot of relative weight of our cloud business as a percentage of our total revenues, but it also means that we gain overall predictability within our business model composition, we have a very strong and resilient core software license and support business With a rock solid €10,000,000,000 plus support revenue base, which is subject to completely market leading and industry leading churn rates, which are hardly visible at all.
So that means we are able to drive in the combination of cloud and support A far greater stream of predictable revenues over the coming years, we aim to achieve, as you know, up to 75% of our total revenues to be in those 2 very highly predictable revenue streams. To me, of course, as a CFO, this just means volatility gets reduced over time. I can plan my investment levels. I can plan the total P and L with greater predictability. And at the same time, we remain committed to working not only on our effectiveness, which is the growth across our different business pillars, but also on the of our different business models.
But very importantly, at the efficiency that is commensurate with each one of are distinctly different business models. And you have seen the results in Q1, for example, despite the fact that we had a relatively light software revenue result, we were able to drive expansion on gross margins also in our software and support business despite the fact that it has already a very high gross margin, but we stay also on track With regard to our long term targets in terms of raising the efficiency of our different cloud based business models. In Q1, you have seen on the gross margin level of all of our 3 different business models in the cloud. Business networks already operating at a quite high gross margin level around about 75%. Public Cloud, a little bit lower level, but of course, big differences, success factors running at a very high gross margin level, some of the other moniescent solutions at a lower level.
But all in all, in all of these areas, we are well on track in line with our midterm ambitions by 2020 to raise the gross margin levels in this business to around about 80%. In the Private Cloud, we have made great strides as well. This is by now a really sizable part of our business and the profitability is improving very fast. In 2014, we had very significantly negative margins in that business as we build it up. In 2015, we've already narrowed this down.
Now in 2016, we are clearly seeing the point of breakeven at a gross margin level and we'll then reach our 40% long term target latest by the year 2020. We're on a very good track. So what you take away from this is think we continue to focus on a steady expansion of our efficiency across all of our different business models. Then of course at a company level, the mix dictates the overall gross margins, but that's not the key steering mechanism that we use. We do it really line of business by line of business, respectively, business model by business model.
And we do it with a view to also remaining responsive to the commitment that we have given that we will be one of the very few, if not the only companies, who goes through such a tremendous business model transformation without seeing any dip in our operating profit performance. And you have seen that in 2015, We actually had a very strong performance also on the bottom line with €6,300,000,000 in non IFRS operating profit beating the high end of our annual guidance range at constant currencies. And we continue to be very cognizant of the fact that we need to demonstrate operating profit expansion also for the years to come. Actually, we have done our homework in this regard. Last year, we managed a very successful transformation program inside SAP, shifted a lot of capacity from overhead and low growth areas into our high growth areas.
We added a net 2,500 Heads. But of course, the gross hiring in those innovation areas was actually close to 6,000 heads. So we had A very, very positive contribution from our transformation program, which is now enabling mid triple digit run savings in 2016 and going forward in those overhead and low growth areas and enables us to continue to invest in the growth levers without putting operating profit at risk. At the same time, the cloud is already operating at a scale where additional investments that we continue to do in cloud delivery to make sure that we are running as efficient as possible that we run our own technology at the database level, for example, that we can consolidate data centers into central locations are not coming at the cost of a dip, but actually come at a stable or slightly increasing gross margin in line with our long term planning. So this makes me very confident that especially in the years after 2017, When the cloud revenues will have overtaken our software license revenues on a full year basis for the first time, that actually exponential operating profit expansion will come from the cloud.
So finally, as you all know, we have at the end of Q1 With earnings with all confidence reiterated our annual guidance at constant currencies, and I want to repeat this today as well. We see us clearly in the cloud continuing our strong growth trajectory with an annual expectation for revenues around the €3,000,000,000 mark between €2,950,000,000 to €3,050,000,000 the high end representing a growth rate of 33% in constant currencies, exactly in line with what our actual Q1 performance was. In terms of our cloud and software revenues, We continue to expect a performance with in between 6% 8% growth. Here clearly, We have said that we had some slippages of deals in especially the software area, but also in cloud bookings, quite frankly, slipped into Q2. A large part of those are already closed.
So we are very confident in our performance both for Q2 as well as for the remainder of the year. And in terms of the operating profit, you have seen in Q1 that we had a very strong performance with 5% operating non IFRS operating profit growth. In IFRS terms, of course, the growth rates are tremendous because of the fact that we don't have the restructuring expenses books anymore. So we are very confident with our guidance range there as well. There is an update that I want to give on the currency expectations.
Unfavorably compared to the mid of March to the March average exchange rates. Therefore, we have now based on the April average exchange rates as well as the revenue mix that we currently foresee updated our guidance on currency impacts. We now Expect for Q2 a negative impact of between minus 2% to minus 4% and for the full year of between flat to minus 2% negative impact from currencies. Having said that, we will continue to update you based on the Actual development on a quarterly basis, as we all know today, for example, the U. S.
Dollar has actually made quite A return back to strength as opposed to the euro based on some comments by not pretty influential people who knows how it will end up at the end of the day, but we will continue to be transparent to you how we see the revenue mix development as well as the currency development based on our quarterly results. So to summarize and end my presentation, what you see here at SAPPHIRE is, I believe, a company that is fully committed towards supporting our customers on their digital transformation journeys. We have the capabilities in place. We are empathetic towards our customers. We have listened and are trying to provide them with greater clarity, greater risk assurance and value assurance for their transformations Both regard to the digital core as well as to the cloud.
We are very confident in our pipeline. We are confident in our annual guidance that we have given. We're a company that is on the roll, and I couldn't be happier with the position that we currently find ourselves in. And with that, I would like to hand Over to our Cloud panel and to Todd Friedman, who will manage and moderate it. Thank you very much.
Thanks, Luca.
Thanks, everyone. Where did my walk up music go? Thanks all for coming here. For those who don't know me, I'm Todd Freeman. I'm part of the Network Application Strategy team.
Before the acquisition of Concur, I ran Concur's IR. So I've met a number of you before. I see some familiar faces out there. The next 30 minutes we want to spend some time is bringing up the heads of our cloud businesses to talk a little bit about the market, what they see in their spaces, how they run their businesses, how they work together. And before I do that, I want to hark back to something that Steve Singh covered today and you heard throughout the keynotes yesterday and today about the principles that we're all following as we go to market, These four ideas of being best in class in everything that we do, being connected across all the SAP applications, tightly integrated, Importantly, being connected to others as well, having an open platform, and you'll hear from Steve Lucas later on about that as well.
And then lastly, of course being connected to our customers, creating an effortless experience for them to be a part of the SAP family. So with that, I'd like to bring up the panelists. Elena Donio, President of Concur Rob Brim, President of SAP Fieldglass Alex Zatsburger, President of SAP Ariba Mike Ghedling, the President of SAP SuccessFactors.
That's good. Good. You didn't
go there.
It's fine.
Okay. Mike
forgot his Sadif, that's
okay. Thank you.
Good. So what I'd like to do to start is ask each of the presidents to spend a few minutes talking about their business. I know one thing I've heard from some folks is as these companies have been acquired over the years, not everyone's very familiar with what they actually do or they have a high superficial understanding of that. So I've asked all the presidents to spend a little time describing what they do, their core value prop and some of the key competitive differentiators. So we'll just go in order of the list up there.
So, Elena, do you want to start us off?
Thank you. So at Concur, we take the pain out of travel expense and invoice processing. We do that for about 32,000, 33 ish million end users across about 30,000 clients. We have been around for about 23 years. I've been at the company for 18 of those 23 years.
And our mission is to Remove pain from a very, very the kind of thing that people have a visceral reaction to pain from that so that our customers can focus on what matters most to them.
Jeremy, thanks. Rob, do you want to
do this?
Right. So at Fieldglass, we actually our business was designed around making sure that a company can execute their work strategies that they can actually get a piece of work done with the right type of resource. If you look at today's modern enterprise, 30% to 50 of their workforce is actually external to the enterprise. So they could be engaging contract workers on an hourly basis. They could be engaging service providers.
And our job is to make sure that they have access to the right type of talent that they need in order to get work done. So the business benefit of doing that is that we create a competitive environment. So when they're looking to bring in these skill sets, they actually can put the individual jobs out to bid to supply base and that creates a competitive bidding environment. So a typical client saves between 6% to 12% Just by implementing that process and doing that, given the large expense base that that's on, that's a very compelling value proposition. We also implement our clients typically in 90 to 120 days.
So given the ROI associated with that, once again, it makes for it to be very compelling. This phenomenon of using these techniques has really become global. So we operate and have workers under management in 120 countries. So it's really becoming the way of doing businesses to ensure flexibility in workforce. It also follows the secular trends of how today's workers want to be engaged.
They actually want to have different life experiences, work for different companies, and that tends to be the model that millennials want to be engaged. So In a quick nutshell there, Fieldglass really enables companies to get the right type of workforce that meets their particular financial needs.
Great. Thanks, Rob. And Alex, you want to talk about Maria?
Yes. Very simply, SAP Ariba is the world's leading cloud procurement software. We help companies to manage their source to pay process, cost savings on the sourcing side, efficiency gains on the procurement side. We have about 10,000,000 users globally on our procurement software. But more than that, we also connect those companies to the world's largest digital marketplace, the Ariba network, where we have 2,000,000 companies and suppliers connected to.
It's an extremely powerful asset. So when SAP acquired Ariba in 2012, it was both for the functionality and the capabilities around but more so it was from the network that really allows to take procurement processes, working capital processes as well as supply chain Sees to be connected over this platform. That's as a clear event.
Great. Thanks. And Mike, we're going
to finish it off. So SuccessFactors is all about people. And If you remember the business when it started out, it was all about it's time to love work again. And today it's all about success is simply human. So we build software, cloud to really enable your people and to enable our clients' people and employees in an organization.
To put it into perspective, we are the largest HCM Cloud software player in the marketplace, largest by number of customers, largest by number of employees. We're actually running on our systems. We're also the largest in terms of the breadth of HR functionality we cover. When you look at all ten areas of HR from talent recruiting performance, goals, succession, all the way through to core HR. We're also the fastest growing core HR, HR Cloud Software Company in terms of the number of core HR customers in the business.
And I could go on with the perspectives. Today, we lead the market with a market share, and we certainly intend to maintain that lead and increase it over the years.
Terrific. One of the things that we've now experienced coming in from Concur was talking to all the companies that have been acquired and understand the different experiences they had. When Success acquired, SAP was a very different place. And the same is true when Arena was acquired or Fieldglass and Concur. So when you think about that, I'd like to maybe get it, what were some of the You had both challenges and benefits when you came into the company that you've seen and how you work together.
So Elena, maybe since Concur's recent acquisition, I'll start with you on that.
Yes. I think one of the things, it's been a phenomenal 18 months actually. And I think The things that we talked about during the due diligence process very early days after the acquisition were about the leverage that we could have working The investment that could come toward innovation within Concur, and I'm happy that that's actually happening. We've been able to fund some really good robust interesting projects. I think actually Luca's point was really interesting and Concur has been the beneficiary of some of that headcount movement that he talked about in the warm up there.
And we've been funding some really big and interesting projects around better global capabilities. We've added new language support. We've added some new Innovation in specific markets that we've been wanting to do for a while. And the new Japan IC card reader functionality is so cool. Now in for Japanese rail, which is a huge number of transactions in Japan, instead of keying in train trips, The end user comes back to their office, scans their card on a device and that immediately creates the expense report.
Those kinds of projects are the things that we've been able to fund this Because of the power and leverage and working together with SAP. I would also say outside of the product level that I talked about, there's also this really interesting distribution synergy. And so we competed with SAP for years prior to sitting on this stage. And so having the ability to go back in and partner with the incredible field force at SAP go out to clients and open essentially new stores as I think about them and start to place Concur products in places where we hadn't been able to historically has been a really phenomenally successful endeavor and one that we think will go on for the foreseeable future. That's great.
And Rob, Fieldglass was sort of a different point in its life cycle when it was acquired. So how has that been coming into SAP?
It's been pretty much mirrors Elena's experience here. So one of the things we were able to do is really accelerate our plans for global expansion. So we've now been able to enter new markets. Latin America is one in particular that we always had designs in doing. We very much expedited that.
And there's a lot
of details that for relatively small companies in comparison to a large public company, Having the ability to hire people into offices, having the ability to do recruiting locally, being able to deal with taxation and things like that. So we very much accelerated our expansion into markets that we wanted to be in. We've also expanded our data center support. So we're leveraging SAP existing hosting facilities in the EU, which is a requirement of our clients, so that we have multiple data centers now in the EU and of course access to the SAP customer base. Our biggest challenge is that people need to know what Fieldglass does see what a great product we have, what a great value proposition.
The whole world hasn't been able to see that yet. We've been the market leader in our space. We're the leader. But having really the reach and scale of SAP has helped that. And we've sold deals in the Middle East, which would have taken years to get there by way of example besides the other markets, we've really accelerated our footprint and we're going to be the market maker in all the markets and the globe.
Sweet. And maybe Mike and Alex on the other side of the coin, when Ariba and SuccessFactors joined, there was perhaps more overlap Between some of the things that SAP already did, that creates more synergies, so both challenges and benefits. So what was maybe the way you guys worked through that as part of the acquisition? Alex, do you want to go first?
Certainly, I provide maybe a little bit of a different perspective. It's been 11 years with SAP. So I think from the panelists are probably the one who has the longest SAP but the shortest experience running SAP Ariba. But I would say this way, the benefits and to Elena's point and Rob's point is obviously the global distribution. When we acquired SAP Ariba in 2012, I think it was probably an eighty-twenty split between North America and global.
Today it's fifty-fifty, Yes. So it's massive distribution that you're obviously gaining through the SAP world. On the challenge side, I think what we did was we actually took a cloud service that was an end to end business model and we actually integrated it across the different divisions at and I think it slowed down the end to end nature of a cloud business. And I think that's what SAP has learned, especially with the acquisitions of Clear Glass and Concur is to ensure that the actual service that's being delivered is different than delivering software per se. And that's, I think the key challenge that the Ariba business face, the good part is Ariba is now back as one business unit within SAP managed end to end.
And this comes back to the Point that Luca made about being best in class, but also best of integration.
Yes. And I think I bring a totally different perspective because I'm kind of the new Kid on the block, having not grown up in SuccessFactors nor in SAP, but did grow up in the HR industry, and I came on board about 2 years ago to lead the business. So I kind of saw it from no baggage from either side. And if you think about it, SuccessFactors was The first cloud DNA SAP really acquired, in terms of the journey of transforming to a cloud company. And I think there's some really unique things which is really important in the success of SuccessFactors.
So Employee Central. The reason Employee Central is the fastest growing core HR cloud product in the market has got a lot to do with SAP. And SAP's understanding of global requirements. So when the vision was mapped out very shortly after the acquisition, We took all of the globalization experts from SAP on premise, and they were given to SuccessFactors. And they got really excited about this opportunity to have a second go at building what they've built over the last 30 years without making the same mistakes, but doing it in a modern architecture and in the cloud.
So today, our solution is the best solution in the marketplace when it comes to globalization and dealing with multinationals by far. So that sort of blend between SAP and SuccessFactors has been truly amazing. I think the other thing which is important to realize is this concept of scale. Scale and complexity around data privacy and data sovereignty It's the biggest limiter to growth in the cloud industry. So there's a lot of hype about cloud companies.
But how they're actually going scale beyond a certain level is the big open ended question. And the big open ended question as to whether cloud companies can actually turn in profit, long term or not. And I think when you think of SaaS, software as a service, there's 2 Ss. The second S is service. And SAP are masters at service and dealing with enterprise customers from a service perspective.
So how we've been able to blend that with the innovation, fast moving mentality of a cloud company and actually create now the largest cloud company at scale in the HR tech space is pretty unique. I think it's those type of things where to some extent I've been advantaged because I haven't had baggage from either end. I've been able to come in and look for the best wherever it is and put it together in the business. And I think that will enable my business to scale. If you look at the size of the HR Tech market and it's growing, the cloud market is growing 56% year on year just for HR Tech.
There's no limit to where I can scale this business. And it wouldn't have happened, and I doubt if it would have happened without SAP.
I was about to open it to the audience, but you both made comments about your time at SAP. So I want to ask one other question that's a little maybe a little softer, but I know the audience It's a lot about financials and product, but the one thing I think we don't get much exposure to is the kind of company that we have. And so you both made comments about that. And I'm curious, The 4 of you all actually had sort of different paths in your journey to the roles you're in now. And I'd like to just maybe have each comment on that very briefly.
To think about that journey and how that sort of informed your leadership that you have the leaders you are today and the sort of the contribution, I guess, that makes SAP. I mean, I see that We're not wearing ties. So maybe that's the first contribution that we've all had, which is the best one so far. But I'd love to know, I mean, very different ideas of how you've gotten there. And Rob, maybe is sort of the most recent in the journey.
Can you speak
to that?
So this has been a very gratifying leading up to the acquisition by SAP. So just a little bit of the history that I recently took over It's been a year that I took over from the founder of Fieldglass, which is a very well known figure in the industry, a very tough act to follow here. But one of the things when I joined the company a little after the founding of it is that we had some guiding principles. And the guiding principles were Focus on solving the customer's problem. And that was really what drove us as a company, making sure we had delighted customers and we have rates in the industry for a cloud business and to out innovate our competitors and make sure that we continually innovate.
So I've been the keeper of that mantle and we've continued on. These are shared values with SAP. We've lived through a cycle as a company from being venture backed, having to raise funds, then being owned by a private equity firm and now having a strategic acquisition. And we've stayed true to those principles. We continue to do that.
It's been a great experience that we've gotten to this leadership position, really doing it Our way, the way that we wanted to, SEP has allowed us to continue on in that path and respects those principles because they share that once again and especially being part of the BNA. So it's been a very gratifying run. I'm also a native Chicagoan. So being a Chicago based headquarter company, which means I'm a long suffering Cubs fan, which means could have a bad century here. It's great that we're also become a major employer in the Chicago marketplace, in the Chicago tech market and to have the ability to give back civically to the city that I love and I've grown up in.
So it's been an overall great experience.
And Alex, you became President about the same time as Rob and had a little longer about an SAP industry. So what's been the
Yes. I consider myself extremely lucky. I I tend to be at the right place at the right time, I guess. I joined SAP in 2007. I bumped into a gentleman who was taking over global sales responsibility at that point.
That was Bill Ahmed ended up working for Bill for a while then went to China to actually run our investment plan for our China growth plan, which was a fantastic experience actually taking the SuccessFactors business at that point and starting our 1st joint venture in China to actually bring a data center for Success to China. And it gave me a very strong appreciation about what it obviously takes to be successful in the world's largest or 2nd largest economy. And then I came back to actually being a Chief of Staff to Bill McDermott, work with Luca and the Board members actually on the strategy of the company. And it's great when you have a broad view of the business because I think what Luca let through in the beginning shows the power obviously of SAP as a company when all the pieces come together. And you sometimes forget this when you're in one part of the business.
But at the same time, when you're in one part of the business, you see how important the speed is in the sense of urgency delivered to your stakeholders and your customers. So for me, it's a true pleasure and honor to run the SAP business and to bring both sides, SAP and Ariba together, and I can't be happier that the brand now actually reflects this and the way we named the business as SAP Ariba.
And Mike, if I got the bio wrong, I apologize, but I believe before you joined us, you were running an HR Services business, which gives you kind of the perspective of both the partner and the customer side. So how has that changed your mind as you come inside the SuccessFact?
Yes. So I kind of grew up in the outsourcing services world, so companies like EDS and KPMG. And then more recently was CEO of HR Services, taking our back $1,000,000,000 HR Services business. I think the interesting Parallel is that I truly believe that cloud the cloud software business and the traditional outsourcing business are opposite ends of the same coin, Whereas on premise software is a different coin. And the reason for that is, it's a business where you have to have a continuous relationship with the customer.
It's not about dropping the CD, the software, and then it's just support. Every month, you've got to deliver to the customer. You've got to deliver an outcome. Got to deliver results. So some of that DNA, which I grew up in, is really important now, particularly when you're taking a cloud business to scale.
And what I see in the cloud industry is that a lot of people a lot of the cloud start ups focus on the S, the first S all the time. And they really don't figure out how to deal with the 2nd S. And this whole service paradigm you need, which actually we've been very successful at bringing in people from the former outsourcing industry and bringing them into the cloud world and getting them to be cloud. Think my experience coming into SAP is an interesting one because I think everyone has their perspectives of SAP outside in and having been a partner at a perspective. The best way I can describe it is that, one minute in my day, I will see process and behavior, which you'd expect from a €20,000,000,000 company.
The next minute in my day, I will see total freedom and innovation. And the best way I can describe SAP as an outsider having come in 2 years ago, It's truly a €20,000,000,000 start up in terms of culture and how it behaves.
And Elena, I want you to share your background. I believe your history concurs sort of illustrative of the culture throughout all the cloud companies, but also I think of some of the people that we've met at SAP and the way that a lot of the folks have built their careers here. So maybe share your background at Concur.
Okay. So I I grew up in the valley. I grew up in Cupertino, California. And my tech fire was lit by my mother, who was an admin at Apple in the 80s 90s. Walking the halls there was one of the joys of my kind of high school and college years.
Went on to Accenture after college and I wrote code. I wrote custom code. I wrote some little COBOL. And eventually, I along a few lines of ABAP code as well when I joined the SAP practice at Accenture and then Deloitte. And ultimately, in order to get off the road or so I thought, when In order to get off the road or so I thought, went to a startup with a couple of friends that I had met during the SAP implementation at Microsoft, which was a project I ran 2 years.
And we were founding that company at a time when we were attempting to create an electronic procurement product the same time that Ariba was getting funded and a couple of other companies were getting funded as well. So our timing as we thought of it then was not phenomenal, But we were acquired by Concur within 6 months. And so I packed my bags and moved to Seattle from San Francisco. And I think a lot of us went through this period right after that in the early 2000s where that sort of set the tone for how the company would run for many, many years. I think when you experience the high highs of an IPO in a very heavy time and the low lows of a $0.23 stock and the risk of being delisted, you learn a little something about humility.
And coming back from that, you learn a lot about confidence and risk taking. And I think those are some of the things that characterize the vibe and the culture at Concur and something that we feel has been embraced and something that we feel we hope gives us an ability to leave a mark as well.
That's great. I'll open up to the audience. Is there a mic out there to be wrong? Yes.
It's Adam Wood from Morgan Stanley. I've got 2, if I could. First of all, on the cross Could you give a sense across the different applications how well you think you've done in exploiting that opportunity of what there is within SAP And how much more there is to go for? And then secondly, I
think we've heard a lot
of the conference around this theme of integration. And maybe there's been a little bit of an acknowledgment that the integration hasn't been as good as it could be. Where do you think you are on the integration process across the different applications? Is it good enough today? How much work has to still be done to deliver on that?
Thank you.
So we'll start with the cross sell question. Anyone want to Mike can start?
So I think the cross sell opportunity has been Very, very successful for SuccessFactors. But also want to caveat that as we sell in the marketplace, particularly now with core HR, We're not just selling to the SAP on premise HR base. We're having huge success with PeopleSoft customers, with Lawson customers. It's a pretty diverse thing. As I said, the market opportunity is huge.
The cloud, HR, tech space is growing at 56%. And if you just give you some metrics, which are public data, we've got roughly 14,000 on premise HR customers, And we have about 11 18, cloud employee central core HR customers. That's your like for like cloud to on premise product. So I've got another 13,000 on premise customers to move to the cloud before I even Look at the other base and we're winning a lot of other PeopleSoft bases and other legacy type on premise customers. So I think the cross sell opportunity is huge and we're making great progress on it.
Think the integration, I would categorize it in 2 dimensions. The integration into core SAP, so ERP, S4HANA from a SuccessFactors perspective is fit for purpose and good We're seeing improving. I think where we've got more work to do is the integration between us 4 in terms of the cross cloud integration, which is a big
Following Steve Singh's principles Being best in class and also being an open platform that can tie to all the systems out there, that's been our heritage and a part of our DNA. So We've always been designed and have a lot of experience tying to all of the major cloud assets out there. So Just to kind of dispel some of this we're behind. We actually have integration to Ariba, which is one of the first priorities that Alex and I worked on was to ensure that we can do a source to pay with Ariba and Fieldglass together, which is a major value proposition for the total spend management. So that integration exists.
Fieldglass has integration to ECC. So we have integration to the on prem and we have our first version of integration to S4HANA and we have our first piece of integration between us and SuccessFactors. Mike and our teams have been working on the total workforce management value proposition. We've laid out our plans. Development teams are working together and that's our next priority.
That's Fieldglass' next priority that we're going to be executing on. So we're further along than I think is portrayed in a lot of circles. It depends who you ask, but I feel we're in pretty good shape on the cloud side.
Let me just add on the integration point. I'm really excited for S4HANA exactly for that reason because actually the way we S4HANA and the cloud assets is that they already integrated seamlessly from the very beginning. So the Ariba network for instance is an activation rather than an integration. So because we have a new code base, we can literally obviously reintegrate the solution much better than going backwards because if you look at a lot of ECC customers, they have highly customized ECC environments. Now that we are simplifying meant moving them on to S4HANA, it gives us actually a perfect starting point again to address the integration question anew
I would add a couple
of things. You need to concur. We have a vibrant and thriving small and mid market organization that's selling direct into the space in 4 countries, soon to be 5. That's where a huge amount of organic growth is coming from and something that we believe investment nurturing and that it's going to be continue to be a huge driver of growth. So there's a part of our business where there's not a ton overlap today.
In fact, we hope there's more overlap bidirectionally over time happening. And I think that's a real opportunity. On the cross sell side, which is really the nature of the The question, I do think there's a lot of runway for us. We've had some really great wins this year. You heard from Nestle this morning in the keynote.
And there are several others that have come into the family over the last year. We believe we're just taking off there. Those sales cycles of the really large clients As you know and can imagine are longer. We've been at this not even quite yet 18 months as a closed entity. And so there's a lot more work to do and we're extremely excited about the opportunity there.
On the integration front, Concurge had integration to SAP for many years. We are now upgrading that integration in a really big way. And it's in 2016 in the next two quarters that we're piloting S4 and R3 integration on financial side, we're working on SuccessFactors, people integration and then we'll be looking to our other the other cloud offerings here Ariba in particular for some Next layer integration. But the financial integration is going really, really well. I had a chance to look at it just this last week before I hit the road.
I want to carry that theme for one more second here because I think, Adam, to your question, I spend a lot of time with customers, and that's often the first question they ask, too. But when you talk to them, they realize that when these companies get acquired, it's not as if day 1, you wipe out your product roadmap and start focusing on something else. So There really is this balance of how you maintain the culture of innovation that made it once in the first place, but at the same point begin to integrate into the SAP family. So how do you do that? I mean, What's the process to keep the customers happy to work with the SAP base and balance those 2?
And maybe Rob, do you want to start with that? Sure.
As I mentioned before, solving customer problems has been the core of what we do, and that's the source of our innovation. We also take an industry vertical approach. So across the 25 SAP vertical sectors, we are the leader in pretty much every one of those sectors. So That's a big source of the innovation comes from the unique requirements within a given industry to make sure that we continue to be relevant, continue to provide more value within that because once again being a cloud company, they can just stop using you and change over. So that's always been our mindset there.
We also look to the trends. That was one of the other points that I made earlier that there is a shift going on in really how workers are engaged on a global basis. So we continue to follow the trends there. Freelancers is another category that comes up and being able to address that. Talent matching, total workforce management with the combination of SuccessFactors and Fieldglass getting into advanced Workforce planning and execution, those are really the trends that are out there so that we constantly have an eye to that, while at the same time, we've always had the integration orientation here.
And we actually have been able to devote resources, get resource technical resources, which has been a big benefit. So we have the deepest integration, much more so than we were just a standalone cloud company. Yes.
I think I want to open it. Or do you
want to make a point, Mike? Maybe
Let's take a look
at the more from the audience here. Go ahead. You can go ahead and get Mike.
Hi, thanks. Similar question on we hear Bill McDermott talk about the cloud powered by HANA pretty repeatedly. I'm wondering if you could update us on where you are on re forming or moving your products to HANA? And we've talked about integration and cross sell, but what does that get you once you get there in terms of what the customer sees?
So I think this
is a really interesting topic because the great potential for me is that When I have 1400 developers focused on building HR tech, I don't have to worry about building a database because there's another 1,000 odd plus people in SAP building the HANA database. So we have now certified all of our SuccessFactors modules to run on HANA. We are now running 800 odd analytics, Our workforce analytics customers on HANA already, and we've migrated our 1st pilot handful of employee central customers to HANA already. With that estate which is running on HANA, I am the largest multi tenant HANA customer on the planet. And I'm going to move 50,000,000 users to the HANA database over the next 18 to 24 months.
And that program is underway. So for me, it's not about the technology anymore. For me, it's now about the migration and making sure this is a migration which customers don't experience. It's got to be totally invisible to the customers in terms of where they're going. Where is this going to take us?
Well, technically, I would say We will kind of break even on the rights and we will gain on the reads. But how does that play out in a business context? I think when you look at some of the things we're doing like intelligence services, like role based permissions in an HR system. When a system needs to go and look internally at all the states instantly to figure out that when you're giving this person a leave of absence, he's got a training course booked, he's got performance appraisals outstanding and create all the workflow on the fly, which we call intelligent services. The ability to do that in memory in HANA is just way superior than where we are today.
So a lot of the innovation we're creating in SuccessFactors, which our market wants and our customers are excited about will just get turbocharged as we move on to the HANA platform. And of course, the concept of everything being in one transactions and everything in one transactional database will give us huge gains in terms of performance in the environment. So we're pretty advanced and we're pretty excited about where we're going with that.
I was a little surprised, Mike. I thought actually we were the largest deployment of multitenant on HANA. All of analytics for Ariba runs on HANA as well. And what's awesome is the performance gains actually leads to a better user experience. So for instance, spend visibility, which is one of the core solutions of the Ariba platform actually runs on HANA, has 80% faster response time and it actually matters to a user.
And we We see much more adoption of the end solution because of that faster response time. And then to Mike's point, once Everything runs on HANA. You then have what you see, for instance, in the digital boardroom, the ability obviously to drill down on the transactional content. And it allows you to then explore business models that we are very excited about, which is data as a service. Once we provide data as a service to companies, benchmarking information, Other information that can go back into the sourcing process.
I think in 4 or 5 years time when we actually have that rich of an information pool, It's amazing what we will be able to do with our business model going forward.
Great. Well, with that, I believe we're out of time here. I want to thank our panelists for spending the time here and thank you all for the great questions.
Thanks guys. Thank you.
It's the
final, I'll bring you back up.
Thanks very much. Thanks a lot, Mike. Thank you. Thank you, Robert. Thank you.
Okay. We've heard a lot about the cloud and more importantly about the HANA Cloud Platform. It's my pleasure to introduce to you another speaker here, Steve Lukas, the President of Digital Enterprise Platform. He has been a regular presenter at these events. And A big thank you from my side to Steve for supporting our IR program on a regular basis.
He has this unique talent to put our complex story in very easy to understand words. I'm jealous as a German So the floor is yours, Steve.
Duncan, thank you very much. It's a pleasure to be here. Day what day is it of Sapphire? I've lost track already. Is it day 2?
I can't remember, They too. Who went to the keynote this morning? It was great. Okay. Luca went great.
Okay. So that's good to see if Bo went. First of all, let me thank you all for being here and the opportunity to speak to you. I only have about 15 minutes to speak. So I'm going to try and do it in 14.
And then we'll leave about 5 or 6 minutes for questions. And just to give you a little bit of background, I'm the President of what we call our platform organization. Now the easiest way to think about my job is not apps. So what I look after at SAP is I look after HANA, 1st and foremost, if you're wondering. And I've done that for the last 5 years.
So I actually was part of the first transaction that we ever sold on Hana, which was to a company in Japan, all the way to the nearly 10,000 plus that we've done today. So it's been an amazing journey and an exciting one at that. And I'm here to share with you today really three critical things. First is this concept that we've been driving with our customers around transformation. Now obviously, I think I've said this a few times that SAP may say HANA so much to you that you just don't want to go to Maui ever again because Hana is there.
But the reality is that Hana is the rock. It's the rock upon which Our new modern solutions are built. Without HANA, there is no S4. Without HANA in the future, to be clear, there will be no cloud applications because all of our cloud applications and Luca will tell you this, are excuse me, being migrated to SAP HANA as we speak. In fact, we have portions of SuccessFactors, for example.
So the analytics module is now live in the cloud on HANA. So without HANA, really at SAP, We don't have the innovation engine. This is the innovation engine. But more importantly, it's also the innovation engine for our customers. Our customers are doing amazing things with HANA.
For example, the Hamburg Port Authority. So Hamburg Port Authority is a great example of an organization that literally had reached max capacity. We're talking one of the largest ports in the world and they had reached max capacity. Yet what they were able to do with Hana by putting sensors on everything forklifts, trucks, cargo containers, ships, the cranes that move them was they were able to build the right kind of algorithmic models along with our connected logistics solution that enabled them to double their cargo handling capacity without any additional capital investment. Now what's the ROI on that?
Doubling your cargo handling capacity with software? That is transformative. That is powerful. Now we are bringing this transformation obviously to our existing customer base, Companies that have used SAP for 10, 20, 30 plus years, many organizations are moving or have By the 1,000, their BW systems or what we call business warehouse, their core ERP systems over to SAP HANA. And now as Bill indicated yesterday, and then Rob, Steve Singh And Bernd indicated today by the 1,000 and I have Luki here in front of me.
So if he nods, he can I'm getting tacit approval on these numbers by saying 1,000, but we have customers by the 1,000 now investing in S4 and moving there's a knot. So moving towards the transformation of the future, and let's be clear, the only platform that S4 runs on is the HANA is HANA. This is it. So S4 doesn't run on another database. And you may say, well, Steve, Why aren't you open?
Well, I'll tell you why, because HANA is so much more than a database. Our competitors would love you to believe that HANA is just a fast database. But it's so much more. We've actually taken All of the complex computing things that go on inside an enterprise and condensed them down into one product. So it's not that I couldn't go work with the company that begins with an O and solve some of the problems that I may have inside my organization.
I'm not just going to use the Oracle database. I need Oracle, I need Hyperion, I need times 10, I need all these different things. And what I find fascinating about that is this, organizations today are confusing the integration of many different products with innovation, lateral movement is not the same thing As forward momentum, it's not the same thing as innovation. We bring in HANA to condense the amount of technology that organizations need to simplify how they work with inside their enterprise and to dramatically reduce the complexity of their business processes. Think about it, being able to go from taking weeks to close your books at the end of a quarter to being Luca where you can press a button and get remodel after remodel, having those kinds of options at your fingertips.
That's really what Hana has brought. So this is really the first phase of our strategy is drive transformation. Now the second phase of the strategy is clearly S4. Now I've been around Bill McDermott enough that I do a great Bill McDermott impersonation. However, in order to keep my job today, I will not do that.
Will just simply say that S4 is the business application standard. It is the business application foundation that will drive the next generation of productivity for the next 30 years. This is it. It is the business application suite for the 21st century. Now think about this for a minute.
Now look, We're not going to sit here and have our Al Gore moment and claim that we invented the Internet. For those of you who are from the U. S, There's a famous interview where he kind of did that a little bit. It was implied, right? I would contend that SAP's Previous portfolio ushered in one of the most modern productivity era or productivity improvement eras the world has ever known.
By bringing automation, bringing new business process, we ushered in an era of productivity like no one has ever seen. Now think about this for a minute. We're doing the same thing with S4. We are bringing another era of productivity to the world that will give every company, not just small companies, not just big companies, But every company the ability to dramatically improve their productivity, dramatically reduce the complexity of their business processes, whether that's in logistics or manufacturing or finance, whatever that may be, depending on the line of business or the industry. So this is the 2nd phase of our strategy.
Now the 3rd phase is to extend this way beyond the world of just SAP. So first, we talked about transformation with HANA. Then we've talked about simplification and the power of the new business platform for the 21st century S4, our business application platform. Going way beyond the world of SAP is the HANA Cloud Platform. Now the HANA Cloud platform, if I were to describe it accurately, I would describe it as a bespoke platform as a service for our SAP But let's make it much more simple than that.
The first thing that HANA Cloud Platform allows you to do is to make any SAP application that exists today, any of it, easier to extend and make your own. And by the way, do it in an open fashion. Now you've all heard it's not a secret. Oh my gosh, we have a highly customized SAP system. It's complex.
It's hard to migrate. How do we do it? The HANA Cloud platform solves all of that. And it does it in a cloud based environment. So specifically with 2 things.
1 is it allows me to extend existing SAP apps. So if I'm a customer that has landed in the magical land of S4 and now I'm using an S4 application or I'm using something like Concur and I'm driving the perfect trip for every one of my employees. But and I'm not and by the way, Steve Singh is sitting here. So I'm not saying he has not built perfection. But let's say for a minute that there's a customer that says, I just want to add a little bit more to Concur.
I might want to do that or there's a partner out on the show floor who has built a Concur snap in that extends the value of Concur even further. That is done with the HANA Cloud platform. You will find on this floor today over 40 different companies offering extensions for success factors alone. This is the beauty of the HANA Cloud Platform. But there is a nuance to the HANA Cloud platform that is probably the most critical thing that you will hear at this conference.
It's worth writing this down. We have taken our process and data integration capability that you found in our classic products And we have elevated them to the cloud inside HANA Cloud Platform. Here's what it means. HANA Cloud Platform equals integration. You can take the HANA Cloud platform and integrate your business processes that are in your existing ERP system, ECC And you can integrate that with the perfect trip that's managed by Concur.
And I can integrate that with SuccessFactors certification. So think about this. We're entering the modern age of IoT, right? This is The age of IoT. I was just was walking by and we had Tanya Nayaki over there espousing the benefits of IoT.
Every time I visit a customer, one of my favorite things to do, especially if they're manufacturing customers, I like big giant things that are really dangerous. I love seeing those things. So I always ask them, can I go on and can I get a tour? And there's always something needs some lever you can pull and it stamps something. And I want to use it, but they never let me And I understand why.
It's because I've never passed the certification course that would prevent me from chopping my arm off. So think about this for a minute. As that machine, which has a card swipe on it, sends its information somewhere, We also know that over here in SuccessFactors resides whether or not I actually pass the certification exam to operate that machinery. Now we know I didn't. So there's no way I'm getting access to that.
But we have the ability with the HANA Cloud platform to bring that together. So if we talk about this journey that we're on and what is really important, the high level things, HANA driving transformation, Our S4 solutions, along with the amazing cloud technologies that we have, the business network that Steve Sing runs as well as our people solutions like SuccessFactors. And then of course the HANA Cloud platform that really is the journey. And obviously, we announced a couple of things and I'm not going to go through them in great detail. I just want you to hear about couple of things.
One is we announced it was very subtle and burned by the way normally gets like when you get him going on Hana, He gets really animated. He liked, he's excited. He mentioned the fact that we have some updates to HANA. We've actually released a full enhancement pack for HANA that makes it absolutely data center ready. Data center ready, what does that mean?
It means that HANA is ready to replace the legacy systems that have been operating data centers for years. Now, I'll tell you right now, so take Steve Singh. He runs operates some of the largest ISVs, if they were independent companies, which one was, in the world. He is driving the migration of those all to HANA. HANA is a data center ready solution.
The technology is available and what we call it's called service pack. I like the word enhancement pack. So that's what we're going with. Enhancement pack 12 or service pack 12, but that's available in HANA as a key update. The second key update which you should be aware of is that we've Simplified and launched new capabilities in our analytics portfolio, this middle part here, business objects.
You saw today in the keynote something called the Business Objects Cloud. So the Business Objects Cloud is while it bears no genetic code from business objects on premise is a brand new experience that goes from modeling data to planning outcomes, analyzing information and then forecasting new actions and results, All in one experience, that's the business objects cloud. You may have heard as well, we also acquired a company called Thanks to Luca allowing us to do this. What Roambee, which by the way, if you open up your iPhone and go to the App Store is one of the top productivity apps on the App Store. So try it out, go download Roambee.
We're including Roambee in Business Objects Cloud. So we actually have that integrated and tying in as well. And last but not least, we announced these major new features in the HANA Cloud platform, the spring edition. And the spring edition, most importantly, is bringing connectivity to all of SAP's applications. So What Steve Singh and I talk about when we were behind closed doors, which is we need HANA Cloud Platform to be the hub that connects everything at SAP, that's what this what we call API Business Hub that we announced today is HANA Cloud Platform connecting all of the different applications at SAP.
So with that, I was given 15 minutes to give you a brief update around our transformation, our next generation applications, as well as the criticality of HANA Cloud Platform to our future. I've given you a little color on some of the key updates. And with that, with 4 minutes and 20 seconds left, I will take any questions that you have Yes. So we'll get a microphone over to you as well.
Thanks. Michael Briest at UBS. Steve, it sounds like Hannah is doing really well. Yes. The feedback we get from the floor is that the S4 part of it in terms of maturity, the breadth of the application code that's now available in S4 compatible is still work in progress.
So there's not enough of the core functionality that's available on S4 to make people move and hence the slowness. What would your view on that be and when will the core code be available?
Yes. Well, great question. So first of all, we're working incredibly hard on S4. So there's really and I will take the I listened closely to Rob Enslin in one of his comments this morning. Specifically, he said, look, we acknowledge that we need to focus, listen to our customers and deliver on the S4 code.
That's what we need to do. And that is I'm from board member, board member, I doubt any of them would tell you anything other than That is our core mission is to do that. Now I'll give you my the Steve view if I could for just a moment, which is HANA Cloud Platform has a very critical role to play in this. If I have HANA running underneath ECC6, our ERP product today. The HANA Cloud platform allows me to modernize using things like Fiori, the user experience, the look and feel.
And at the same time, so I can build new applications using the HANA Cloud Platform that people have never seen before, that users will love embracing the Fiori experience. I can take data from ERP, I can take data from SuccessFactors, from Concur, create a new application or just extend an application. And then as my organization migrates to S4 over time, which by the way, The HANA Cloud platform is critical to that migration. That's the other part of this is what's missed is it's not just what's The application, the code in the app itself, you need the tools to move the data and manage and control the business processes. Those sit in the HANA Cloud Platform.
It's a technology called HCI or HANA Cloud Integration, used to be called various called PI In the world of NetWeaver, HANA Cloud Platform is so critical to that. So my response is, look, we acknowledge that we are stepping on the gas, listening and staying focused. The code has dramatically improved from where we were even a year ago with S4. But I believe that customers need to understand that the journey is not just now I have HANA, let me turn on S4 that there's this other piece that's very, very critical, the HANA Cloud Platform as part of that journey. But I fully acknowledge that we are and we'll continue to be focused on delivering on the code for S4.
What other questions do you have? That was actually a really that was not pitching me a beach ball. That was a tough one, but a good one.
It's Kirk Materne with Evercore ISI. I think most of us understand the benefits of HANA, especially for the SAP, the existing SAP Ecosystem. When we go out and we talk to all these new developers that are on AWS or using tools like Docker and to serve new paradigm of application development, can you just Paint a picture of where HANA fits into that. Am I teeing up a beach ball for you, I guess? Yes.
Okay. But why is HANA the right database, I guess, to a certain degree for that new generation of application? And how do you tap into those people that have maybe never really talked to SAP before?
Well, that's a great question. So the way that we tap into that network is by partnering with companies like Microsoft and Amazon. So you heard Satya Nadella talking about HANA being available on Azure. So by exposing HANA to the Azure developer community, certainly expect to get traction there. That's number 1.
Now for several years, number 2, we've had Hana available on Amazon, I think at least 2 years, if not longer. So we are exposing HANA to those developer communities. Now the nuance in all of this is How do you get a simple API, one API accessible to those developers as well? So Bernd, again, mentioned the API Business Hub, we are going to make that API Business Hub accessible from Azure and accessible from AWS to be able to talk to the HANA Cloud Platform. What most people don't realize is you can actually have a fully functional HANA Cloud or HANA database in the cloud, database as a service through the HANA Cloud platform.
We have literally now hundreds and hundreds of companies that are using the HANA Cloud Platform as database as a service in the cloud for developers. So the key to this is real simple. Number 1, rise with the tide. Let's expose it on Azure and let's expose it to AWS. Number 2, Create a very simple and easy to use API business hub.
We've done that and are delivering that now. And then number 3, if you look at what we announced with Apple, Now that is huge. We announced a native iOS SDK as well as an iOS Academy. Well, guess what that SDK is connected to? It's connected back to the HANA Cloud platform.
That's what it's powered by. So the whole point of all of this is that we absolutely believe that All of developers out here on this floor, but more importantly, the millions worldwide, Apple's 11,000,000 are 2,500,000. That is the key leverage point to rise with the tide. That's it. That's all the time that I have for today.
But I want to thank you very much. Stefan, thank you as well. I want to appreciate or tell you how much I appreciate the opportunity every year to get to meet with you, even if it's for a brief 20 minutes or so. So thank you very much, and I hope you enjoy the rest of the conference. Thank you all.
Thank you, Steve. Thank you. It's a pleasure, Lance. Thank you. Thank you.
Thanks a lot, Steve. And we'll now have a short break, roughly 5 minutes and then we continue with the executive Q and A here in the room. Thank you. So we'll continue with the program. Thanks for joining us again.
Let me introduce the panelist, Steve Singh. I think the big question to the audience, the empty chair. So this is reserved for Rob Enslin, who is currently on the way here, it's a customer event, and I'm told he was meeting with a customer and he ran a little bit longer.
I'm showing everybody here would like it that way.
I think everybody like That way, exactly. So we have this quite an interactive session, and I want to encourage the audience to come Some questions here in Orlando. There's no shortage of questions. And also a reminder for those of you who follow this event over the web, we also Take a look at investor. Sap.com in case you want to send us questions by e mail.
And I we start with one question here, Orlando. We start here with Mo Mo Abana from Goldman Sachs First and then Adam Wood from Morgan Stanley.
Yes. Thank you. I'm wondering if you can talk through a lot of the conversations with our partners talk about the maturity of the platform. But what can be done in terms of kind of the articulation business case to really accelerate the adoption, particularly with kind of the larger enterprise customers? And can you give us also a the roadmap, particularly around some of the new applications or use cases that are coming that could potentially catalyze that?
I know that question is coming up every time. When we passed the threshold of 10,000 Our customers, I gave up on talking about maturity. We had Nestle on stage this morning. We had Small customers with GreyOrange on stage. So from the smallest to the biggest, we have our entire S4 running on HANA in mission critical areas, not just in nice to have applications.
We have in the cloud with SuccessFactor, the biggest HANA platform implementation in the world if we measure size in terms number of users. So I think the platform is mature. It's robust. It's reliable, and it can serve from the smallest to the biggest customer anybody in the world.
Okay. Next question please from Adam Wood.
Thanks, Stefan. I wanted to
ask, there seems to be
a little bit of a change of tone in the keynote You acknowledged that you'd run quickly with S4. Maybe there was a little bit of a difficulty in terms of selling the value of the business, Showing the customers what the road map was, what the value was of the product. Could you help explain why there was that change in messaging to customers at this SAPPHIRE? And you look at doing that change, what's the cost of that to you? Does that impact the margins of the business over the next year?
Does it create a risk on the short term that customers back a little bit and wait for that to come through? Or on the other hand, could it even be a positive that you can say we can accelerate this now because look, we're going to do a much better job of integration, road map and selling that value to you?
Yes. Well, Adam, one of the things that you have to do with very large companies is when you have a sample size of feedback, even if it's small, use that as a catalyst For innovation and growth. So if I'm in a room with 30 CIOs and 25 don't say anything, but the 5 that do say something, something negative. That just became the motivational speech of the year. Okay.
So that's where we're at. So the idea was we moved out of the gates quick with S4. Obviously, 3,200 customers in the shortest time frame ever at SEP. And we realized that maybe we did leave the roadmaps a little out of the Yes, they were there on an engineering level, but on a commercial level. Business people need roadmaps, okay?
They need clarity of who's implementing the software, not just SAP, but also the ecosystem. So the technology was ahead of the people. There was an education. There was a clarity. And this was the place to get everybody on the same page.
And I actually think we did a good job of selling into their pain and letting them know we're with them, we're their advocate. And that's the way it should be. Now as for did that equal slower growth or perhaps even more growth? I guarantee you, it's going to be more growth Because we came in with a robust pipeline already, we have a company that's inspired to deliver the promise. And now we have customers that say, I I think these guys get the picture.
They're being empathetic. They know that this is a big transition for me. And now I have a real partner that I can trust to make that transition. But we also gave the value assurance guarantee where we have the partners in the same boat with us. And that's a very important thing.
5 of them signed up. 5 of them are trained, educated and ready to roll. So I would not be too concerned about this franchise called SAP at all. And I also consistently remind people, thanks to some very good management moves in 2015, the adjustment on the cost base, Getting the company younger, having a robust product portfolio with S4, the line of business and the network. To the extent that meetings like SAPPHIRE hit the mark, you're going to get a new wave of innovation and growth.
That's where the And
if I just may can add one thing to that. I think it's also very positive that we start to see more customers who have completed the journey out of the ones that we sold already that are now sharing the message that not everything Around the migration about Asana is something to be afraid of that actually it can run, given the right methodology, extremely seamlessly and painlessly and effortlessly in a Fast period of time. Look at Sabre and what they have said and shared during their presentation during the keynote yesterday. Well, think about the case of Nestle, for example, back to the topic of scalability of the platform. I mean, if A company like Nestle can run their entire agent business on a simplified HANA architecture.
I think that's something that everybody in the room will have very attentively listened to. And I think those customers are going to be next to the program that we are running on the value assurance, our best ambassadors. So therefore, you should expect acceleration absolutely.
Very good. Let's take next question here. See one in the back here from Michael Briest. And then I think
Surely, we're late. You're good. We covered it. Thanks, Stefan. Yes.
In terms of M and A, Bill, there's been a disruption in the market. So a lot of valuations have fallen out there, Speculation of marketing companies being put up for sale. What's your appetite for deals today? I know you said it's all tuck ins. You've got everything you need.
But obviously, there's more opportunities today than maybe there were 6 or 12 months ago.
Thank you for the question, Michael. First of all, As a rule of thumb, SAP did the big moves and will grow organically with S4HANA and the moves that we made, whether it's the line of business or the network. But we also have a core cloud called the HANA Enterprise in the HANA Cloud Platform that are huge vectors of growth, okay, that can really drive what we have today. Having said that, if there are tuck in opportunities, especially if they're in exciting categories And it makes more sense to buy it than build it. We will.
There isn't anything of substantial size and scale that is in our plan right now. We are sticking to the script that you already have been communicated to and we don't see a change. Having said that, If we did something that was outside that boundary, I think it would be viewed as an extremely disciplined move and one that shareholders would really like, which means we'd only be extremely opportunistic as opposed to we're seeking something in particular. That's a complete open Honest view of where we're at. So we're in the tuck in world unless something on an opportunistic level is too good to be true.
And then you'd be happy and we'd be happy. But it's unlikely, and we're definitely not chasing any of the big ones out there.
Thank you. See one question here from John King, and then we have Ross MacMillan.
Yes. Just to follow-up on the S-four questions about the go lives. I think you're up to 170 now. With the onboarding, I guess, of more partners, where could that be at the year end? I guess that's a pretty important gating factor to bringing on the next wave of sales.
And I guess as well, if you can just paint a picture as to where you are in terms of the number of consultants that are trained on S4 implementations and where
you were and where that could go? Maybe it's
a good one.
Yes. I mean just offhand, I don't have to validate that. So I think it's about 3,000 consultants are trained on For today. Look, the challenge is we've got roughly 1,000 projects ongoing right now. The majority of those projects will go live within this year, right?
And so now as we're bringing on new projects, they'll go live next year. So Mike, What we've seen is these projects will go live between anything from the Swiss properties, which I don't want to use as a standard, I would love to use as a standard, but From 3 months to 9 months now. That's the time frame that we expected. I think what you'll find acceleration is that we're actually making it much clearer I'm very concise for all 3,000 or 3,000 plus, plus the whole ecosystem of partners and even our own staff plus customers to understand exactly what they're getting into. And I think that's going to be the acceleration move that we believe will take place.
It will be easier, it will be cleaner, it will be more understandable where they we'll find out immediately. We'll be able to rectify it and we'll be able to make the challenges. And that's why we laid it out in the line today and yesterday as well. I mean with the value assurance, With the road maps, the integration pieces and fully published, Yes. And I will tell you now, there are customers that want us to move even faster.
So I have an FMS, which for those who don't know, is a fashion management solution. There's a customer that would like that solution this year, and we're going to give it to them this year. Right, Brent? Yes. We have customers The integration is immediate.
Good. Let's take the next question maybe from Ross MacMillan.
It's actually on these lines. So the vertical industry Specific functionality, which is in addition to the modular functionality, if you will. That seems to be one of the things that may take longer. So how do we think about how you address the very nuanced vertical industry functionality that you've built And I have one for Luca. Within your framework for 2017 2020, this outlook, What are your assumptions around the S-four adoption curve in those numbers?
Is there some parameters you could help us with In terms of percentage penetration of base or something like that? Thank you.
Will I
start with the vertical? Yes. I would not agree that the verticals take longer. However,
there is
a difference when you talk about generic line of business solutions and the verticals. And the difference is that the verticals will have a significant higher disruption by the digital economy. And Rob just mentioned the fashion management solution on HANA. We could have made the decision and take our old apparel and footwear solution and put it on HANA, take out the indices and the aggregate, do the usual things, put theory on top of it and that's done. But we would have made the wrong decision.
So what we did was that we invited 4 of the leading brands in the fashion management, don't know if we are allowed to share the name, so I will not, And build a completely future oriented fashion management solution, what impact does the digital we have on the consumers and then the guys who make the fashion for the consumers. That is now available. It's live already 4 of the fashion management companies, there is more to come. And we will go into that direction in any vertical. We have in the financial service industry a massive disruption.
If you think that banking and insurance in future will be the same as banking and insurance was in the past, then you are on the wrong track. I know you are not thinking along these lines. But these are just examples that we have made a conscious decision to, I would say, reinvent the future vertical solutions In a co innovation mode, together with the leading brands in the various verticals. And partners. And partners, of course.
Yes.
So in terms of Yes. In terms of the S4HANA customers and customer accounts, first of all, I mean, we are selling in both net new customer accounts as well as in the installed base. It's very important to bear in mind. If you just want to take a look at the pure installed base, We have 30 some 1000 customers for the classical ERP solution with 40 some 1000 systems, so to say, that are out there. I think it's fair to assume based on past adoption patterns that you have to differentiate between early which are kind of the ones that we are seeing today.
And I think we are now at the edge of seeing the fast followers, so to say, coming in. So I would expect the next 2 years actually to see an increase in adoption and then a linear progression towards the next few years. Actually migrating over next to the additional net new business that we are driving. I think in terms of the deployment model under which will be consumed. We have to assume that in the later years of our midterm plan, so let's say that years as of 2018 and going forward, We expect that there will be an increased adoption of S4HANA in cloud based deployment models.
We see already today that in the HANA Enterprise The attractiveness of consuming S4 in that deployment model is increasing over the very first steps, let's say, in the first half year of the market introduction. So while at the moment S4HANA is a very strong driver of on premise growth in our planning, we assume that this will kind of flatten out over the later years and then the cloud based adoption will exponentially increase. That's how your high level should think about how this will unfold.
Thank you. Any further questions here in the room? I see one from Stacy Pollard.
Hi. While we're sort of on the numbers, can I ask a couple of questions? First of all, license growth in 2016, obviously Q1 starting off A little bit more volatile than we might have expected. Can you talk about what you're expecting for 2016 also the midterm? And then maybe the volatility range that we might come to expect?
And maybe a second one after that.
Okay. So first of all, for the years after I forgot to bring with me my crystal ball, so I can only give you high level directional insights. I mean, we have said After Q1, Bill and I have clearly stated this that we're very confident on our full year outlook that we see that the pipeline is strong. That yes, indeed, we woke up in some parts of the world a little bit too late to Q1 after the great results in Q4. But that actually a large part of the transactions slipped at the end of the quarter were actually closed by now.
So we are very confident on our performance. If you take a look at the guidance, you will find we are not providing actual guidance for software licenses, but the implied range would suggest that we are looking for around about flat performance on software licenses. And if we are confirming the guidance for cloud and software, So that should be also the assumption that we continue to believe strongly in. So therefore, That's kind of how you should think about 2016 with again a strong performance that we expect for the remainder of this year. And then for the future, as we have discussed at the Capital Markets Day in New York, we believe that licenses will continue to fit from the fast adoption of S4HANA, but also there, we will see a continued steady stream of business that will flow to the cloud.
So in our midterm aspirations, we have assumptions of a moderate decline in lowtomidsingledigits in licenses planned into the midterm assumptions and how it will then play out really in the future, That's something that we will find out. And in terms of volatility, as you have seen in Q1, it's really hard to predict this. That's the nature of the beast of this business. If you have a few slippages even between one calendar year and the next one, it can make quite a difference. So that's why we are actually all in to transform our business to the cloud because it's increased our predictability over time.
So I wouldn't be able to give you a range of volatility in this area. I can just tell you we will continue to do our best, and we will continue to see strong interest in S4HANA that will help us to achieve this result while others are losing heavily in the on premise business. Yes.
You had a follow-up question, Stacy?
Am I allowed to follow-up? For that matter, what percentage of export orders are license versus cloud? And maybe even digging in on the license side, how would you break that down between sort of what percentage not exactly, but approximately what percentage is platform, What percentage is BI? What is this for? How do we think about what's driving the license growth?
Well, so first of all, on the on premise versus cloud, when you talk about the pure License model. On premise licenses are the vast, vast majority to date of how S4 is licensed. Does not mean that it's deployed in an on premise model because more and more projects are run-in the HANA Enterprise Cloud. But then still most of these customers are actually bringing their own license, so to say, buying it as an on premise perpetual license and then having the infrastructure as a service provided out of the HANA Enterprise Cloud. And in terms Of the percentages, actually, we are by now a very strong technology business applications and all the rest, so to say, you can think roughly about a fifty-fifty distribution there.
And remember that S4HANA is monetized via the HANA platform. And therefore, basically, you have platform revenues in this area as well. But that's roughly the composition on as a part of total software revenues. Okay. Thank you.
I think we have time for one final question here in the room, and this goes from Walter Pritchard from Citi. Hi, thanks. I just want
to follow-up on Luca, your comment and maybe direct it to Rob around this expectation that May move more towards cloud deployments of the core or cloud purchasing of the core. What would drive them? Because these do seem like applications that they're going to have running for 10, 15, 20 years and renting or paying you on a subscription just doesn't seem economical. So it has to be beyond the monetary arrangement where they would see the value.
Yes. I mean, I think what we've seen Luca touched on a little bit. A significant amount of the S4 deployments, whether they Even in the test phase, again, to the HANA Enterprise Cloud first and then even in the productive phase, actually running it in HEC. I mean Burberry is an example. They run their full environment in the HANA Enterprise Cloud today.
So what we see is smaller the small, smaller companies actually have No issue moving it into a pure cloud based environment as long as you can meet their needs. And we have a number of them here with us now. And I think that's going to be the prevalent model moving forward for a smaller company. The ones that have been with SAP for many years that have owned the licenses or that are moving to S4 as a migration strategy, think they will stay with us in that mode for many, many years. I think what Bern's team is doing and has kind of missed A lot is that we're also looking at quarantining all that custom code that they had, and that's a massive benefit for these customers that are moving forward because we're cleaning out the old on premise environments.
And if you look at a TCO saving to get rid of stuff that we're doing in the '90s and 2,000 and I give them a pure clean model to work with moving forward and then we'll control that for them. I mean, that's probably better the best cloud model you could possibly wish for.
Very good. That's a very nice final remark. Thanks all for taking the time to answer the question. Thanks for your question. This concludes our Financial Analyst Program for today.
And we look forward
Good afternoon, everyone. We're going to get started. I know there's a few people that are joining as their meetings break out. But we do want to respect the folks who are here and get started on time or close to on time. So my name is Alison Bighin, and I lead marketing for the Platform Group.
And I am here to introduce our esteemed leader of the group, Mr. Steve Lucas. He is going to spend some time talking about the announcements that we've made here at SAPPHIRE across the portfolio. Specifically, Steve has responsibilities for database data management, including HANA, analytics as well as platform as a service. And in all three categories, we've made some interesting and exciting announcements This week at Sapphire.
So Steve, we'll turn it over to you.
Thank you very much. Thank you, Alison. I appreciate it. Thank you all. And for those of you who are sitting on the edges and eating something, you're probably going to want to come in because this will be the most interesting thing you'll hear the whole week.
So just as an FYI, first of all, let me thank you for the opportunity to speak to you. 2nd of all, Allison, thanks for the introduction. I want to introduce a couple of quick people that you should know as well. In fact, you should probably know before you know me. 1st and foremost, we have Greg McStrava.
Greg, if you just say just hi real quick. So Greg is the global GM across our database and analytics, which are our largest businesses in the platform portfolio and works directly with me. And sometimes I'm certain I work for him. So he's Fantastic and has really elevated our database, data management and analytics portfolios to new heights. And then we also have Irfan Khan.
Irfan, if you could just stand and wave hello. So Irfan is the global GM working for Greg of Specifically our database and data management organization. Irfan is a 20 year Sybase veteran and I guess 5 year SAP veteran. So that's he's as steely eyed as you get these days. And so very excited to have all of you here.
Now I want to talk for a few minutes about this and we were going to come up with something really interesting for the title of the presentation. But I guess we came up with what's new in the Digital Enterprise Platform. So by the way, I did approve that. So What's new in the Digital Enterprise platform? So here we go.
And by the way, I should back up. Can we is there there's no reverse button on this. That feels like an Oracle product. So we also have in just a few minutes and I'll introduce him when he comes up, David Walsh, who is the Founder and CEO of Precient, which is a HANA customer of ours, a fantastic one And as a great story to tell, what I find interesting is that it actually doesn't have anything to do with SAP data or technology, well not the technology because Hana's SVP technology. So David will be joining us
in a minute and I want
to thank him for being here as well. So Now using the only forward button or the only button that I have, how much time do you have? Great. Okay. I often get asked This question.
Still after 5 years and I remember 5 years ago being part of the first HANA customer transaction ever was in Japan. And I remember not even really understanding how to describe it Other than what Haso told me to do and I walked away from that initial meeting with So and then the meeting with the customer in my mind thinking, well, I think I know what HANA is. I think it's a fast database. That's what I had figured out about HANA. But I could not have possibly been more wrong.
I was in wrongsville. That's how wrong I was. HANA was never meant to be just a fast database. The world's got plenty of databases. But you know what the world also has plenty of is too much technology.
Now everyone in this room, everybody sitting at the tables casually pretending not to listen to me, but I know you are. We've all seen those incredibly complicated architecture diagrams that sit inside of every company where there's Databases and data marts and data warehouses and business intelligence tools and applications and there's lines going all between them. And for some reason, everyone in enterprise software, whether you're a business user or you're an analyst or whatever, we've all seen that chart. We've seen that slide. We know what it looks like.
And our goal with HANA was to make that go away. Simply put, HANA is here or exists to combat the absurdity of the complexity that exists in enterprise organizations. So HANA is much more than a database. In fact, what does HANA have in it? So HANA, 1st and foremost, yes, it has a database service.
It does. And that database service is both columnar as well as it is relational or transactional in nature. So if I just want to use HANA as a database, as tragic as that may be, you may do so. But HANA is much more. In fact, we've put technologies like an application server into HANA as well.
Why would you want to do that? Well, our Why is it that you have a database where you centralize all your information and then your entire organization is doing. In fact, you should be bringing the information into one place and have one copy of the data where you can do things like transact, You can do things like age data and have a data warehouse. You can also do things like forecast on information as well, but never move the data. Think about all the problems that come from moving information.
The moment you move it, it starts to not match anymore. And now what happens? People come in and say, oh, well, don't worry, I've got a great solution for you. It's a data management tool. And here's a data quality tool.
And here's a data master data management and metadata management. If you had just left it where it was, It would have been fine. It's kind of like when I explained to my son the other day when he knocked over this ceramic thing that my wife really liked and it broke and I glued it back together with super glue. He decided to touch it 3 minutes after I glued it. And I had said, if you just left it where it was, it would have been fine.
And because it just crumbled now granted it was poorly glued, I admit it. But the point is, is that leaving data in one place, Having one source of the truth can be achieved with SAP HANA and that's really what it's all about. So we don't call HANA a platform or a database, we call it a platform because it has predictive, it has an application server, it has because it has predictive, it has an application server, it has an analytic function library for doing complex business modeling inside of it. And yes, It is a database. Now we've had HANA in market for 5 years and HANA has really, really progressed.
If you look at it today and I Bernd didn't exactly say it this way in his keynote this morning, but I'm going to say it. Here it is. HANA is data center ready. HANA is ready to be the core of your company's data center. It's time to move out Oracle, and it's time to move in HANA.
It's time to move out Hyperion and all the other in SaaS and all the other things that you have that you don't need and stop moving data all around, as I would call it, stop the enterprise copy and paste and move HANA into the core of the data center and enhancement Pac-twelve. Think about it. We are now on 5 years in, 10,000 customers later, we're on Enhancement Pac-twelve. If anybody has a question about, well, is this HANA thing going to stick, it's kind of up there with is the Internet here to stay. Yes, people like It's staying.
It just is. And so that's HANA. And we announced some major things like capture and replay, which I absolutely love. You know what I love about these announcements is they are really super boring. That's what I love about them in some respects, don't tweet that.
But what I love about them is that it talks about the ilities, stability, reliability, availability, the ability to capture information And then replay as if you were watching being able to replay the last 30 seconds of your business if your operational system goes down. That's the kind of stuff you can do. Things like hybrid data management and of course maintenance services as well. These are the features that are available now. I will make this available to all of you.
I have written not 1, Not 2, but the German 3 or the American 3, see, I'm numerically inclined either way, 3 or 3. Either way, I have written 3 blogs, 1 on HANA Cloud Platform, 1 on Business Intelligence and 1 on HANA. And They are all out today and they give you all the wonderful detail that you need around what we've announced. So those are a few of the things in HANA. Now Hana, at some point, it's kind of like having an only child.
At some point, it just gets kind of ornery and you need to have a brother or sister So you can balance out that load of learning how to share. If you were an only child, I'm sorry, I don't mean anything. I'm not saying only don't tweet that either that only children can't share. But think about it, HANA got lonely. And so we decided to bring HANA a brother or sister.
So We brought Vora. Now Vora is interesting because look at the word that we're using here. We're using HANA platform versus Vora framework. Now that is oh so subtle, yet oh so important. So HANA is a platform where you bring information to it.
Vora is a framework where you can push compute out to where the data is. So instead of bringing the data to where the compute is, you can push the compute to where the data is. Why would you want to do that? Think about the world of IoT, edge network or the edge computing, Instead of bringing all of this information over a very expensive satellite connection from an oil rig, why would I not want to have a small footprint runs on any Intel server in memory technology called Vora, where I can have transactional relational processing in Vora as well as much more. Now Vora, here's the important thing.
To a business intelligence user, to the average user, That would be me, the average user, for example. If I wanted to look at the data contained in the Vora framework, it looks like a database. That's the beautiful part about Vora, just like HANA does, but it's completely distributed. Think about this. So in Vora, We are adding components to the Vora framework.
Now one that's not available yet, but I like to mention because it highlights something that we are building is a document engine that will be part of the Vora framework. Now why would you want a document engine? Well, think about it for a minute. So if you are a company, we're going to have one come up in
a minute that is concerned with lots of
documents, lots of that is concerned with lots of documents, lots of unstructured data. So let's say, for example, I'm a legal firm. Legal firms generate a lot of documents and they've got folders with millions and millions and millions of documents or they have information stored in Hadoop. The reality is that I can take or will be able to in the future with Vora, take the document in Memory Engine, put it right beside where the documents reside instead of having to move it all the way over the wire and those documents become a table in my Vora database. Think about the power of that.
That is the power of what we call a distributed computing framework. We just said the Vora framework because it sounds cooler, but that's really what it does. So we have the HANA platform and we have the Vora framework. And here's the best part. Vora does one more thing that makes it stand out from the crowd in the market.
Vora was built to work independently in standalone of HANA. So it's standalone. You don't need Hana. Now they're better together. It's kind of like Wonder Twins.
But the reality is that what Vora can do is it can actually completely enhance a standalone Hadoop environment. Why would I want to do that? Well, think about it. If you're a business user and you know that your company has Hadoop and you're capturing all this information and putting it inside of Hadoop, things like news feeds and things like document information, etcetera, etcetera. It's kind of like I think about this, by the way, every time I'm in my I walk through my garage, I have a box.
It's about this long. It's a cardboard box kind of beat up. It's been through every move with us and it's about this tall. And it has everything that I never that I will never use again, but I refuse to get rid of. It has a hockey stick and I don't know how to play hockey.
It has a deflated basketball. It has my shoulder pads from high school football, which just in case the Broncos call because we've got a little bit of a complicated quarterback situation, I'm willing to step in. My point is, is that it's kind of like Hadoop, you can put anything in there, but most of it you may never need. But here's the point is from a business user perspective, you can actually take any BI tool and As long as Vora is sitting inside of the Hadoop framework, the Apache Spark framework, you can look at it in a business intelligence manner, think hierarchies, the way that we think about information in an organized and structured fashion. So we bring structure to unstructured information.
Thank you very much. And so that's really what we do. So Vora as a standalone technology is awesome. But Vora also allows Hadoop to be integrated directly with HANA. So think about this for a minute.
Now you have the ability to have the world's best in memory framework or sorry platform HANA, where it can seamlessly pass data back and forth through Vora into Hadoop using our dynamic tiering technology, which is an intelligent technology that moves data seamlessly and it's cost aware. It knows that if you're infrequently using data, it can push it to a lower cost location. If you're frequently using information, it can Using information, it can put it to, yes, a slightly higher cost, slightly with Hana, slightly higher cost information, but also The hot location where you need the data. This is how organizations will work. Now that's more now of course, If I don't say the word cloud, this presentation is not buzzword compliant.
So cloud. We took the technology from both HANA as well as Vora and we elevated them into the HANA Cloud Platform. The HANA Cloud platform, and I want to emphasize this is so important, these are completely modular. You can use HANA, You can use Vora. You can use the HanaKaw platform.
You don't have to use them together, you don't. But it's just like the Avengers. They're just better when they get together. It's just that's what happens. The HANA Cloud platform, and I want to make this unequivocal statement, is the key to customer success when it comes to S4.
We didn't say it in the keynote this morning.
I kind
of stomped my foot a little bit when I didn't hear it. And I'm going to just stomp it one more time and then I'll be done with the foot stomping. But If you do not get your head wrapped around the HANA Cloud platform, you won't succeed with S4. The HANA Cloud platform is the extension platform for every single SAP application that we make. HANA Cloud platform today connects to ECC6.
Today, it connects to our S4 applications. Today, it connects to SuccessFactors. Why would you want to do that? Here's exactly why. In the world of IoT, if I walk into, I'm getting, let's say, as an executive, I'm getting a tour of a manufacturing facility, which happens from time to time.
And I always want to mess with the very dangerous equipment. There's things that you pull a lever and something chomps down and most people don't let me near it. Now what I noticed on all of that equipment is that there's Card swipe and I'm guessing is so you don't chop your arm off, generally speaking. So you know you've got this machine information with access BOGS, who's used it, etcetera, etcetera, etcetera, over here on the left hand side. Over here on the right hand side, you have SuccessFactors, which contains information on whether or not Steve has actually taken the certification course to operate said machinery.
And then you've got my card swipe, the security system in between. The HANA Cloud Platform can integrate all of that. We have an IoT integration framework built into the HANA Cloud platform today, not tomorrow, today. We are building these solutions now. These this is not science fiction.
It's just science. Now the second thing that the HANA Cloud platform does is we are delivering HANA Cloud, what we call the HCI or HANA Cloud integration. It is the product that most people from an SAP standpoint, you think of process integration. This is process and data integration completely as a service. So migrating to S4, getting to these cloud applications is exactly what the HANA Cloud Platform is about.
This is why we put it in orange because it's important. Everything that's in orange is important. So that's why it's in orange. Now, Of course, the HANA Cloud Platform Spring Edition has extensions for all the cloud apps, which I just obviously stole all my thunder on that. It has the SAP API Business Hub.
This is the connectivity to all of the SAP applications out there. And then of course, Cloud Foundry beta services available as well. So you can use the HANA Cloud Platform running on top of Cloud Foundry, which of course is the delivery on our promise to make this platform an open platform. That is what this is. Now, I also want to touch on this little thing here.
I just like this logo so much, I just show it to people. And really, I should just stand here and let you guys They're at it for a minute because it's amazing and not say anything. But I'll explain what it is. We've actually collaborated with Apple to build The iOS SDK, what it lets you do is natively build apps that connect to anything that SAP makes, Anything. If we made smoke signals, it would connect to them.
That's what it lets you do. So the iOS SDK allows you to build native iOS applications that and here's the important part, Guess where the iOS SDK connects or what it connects to? The HANA Cloud Platform. It goes back to the HANA Cloud Platform, which is the integration hub for everything that we do. That's what it is.
So this is really What this is all about. And I just want to leave it up there, but I can't, but it's awesome. And here's our commitment. We are delivering an iOS Academy. That's a long term commitment where customers, partners, Any developer will be able to go and get fully educated on this technology.
Now, I just want to go along here. Okay. So we also talked about analytics. And I know, Dora was thinking, this is the part where Steve needs to speed up a little bit, so I will. You heard us talk about Business Objects Cloud.
Now this is in my blog, but I want to be clear. I got sick and tired of the 9, 10, 12, 20 different names in our analytics portfolio. I just couldn't even figure it out. And if I can't figure it out doing analytics for 25 years, then I know our customers can't. So we decided to do a couple of things.
Number 1, Business Objects, which is the world's most recognized brand, when it comes if I say Business Objects, you say Analytics, that's it or awesome, either one works. And so we decided that Business Objects is the brand for analytics. So there's an analytics product, it's going to be business objects, food, food being the proverbial name for whatever it is we name it. Today, we have now 2 products in analytics. Well, actually 3 if you count the digital boardroom.
We have Business Objects Enterprise, which is now our consolidated solution for on premise. In Business Objects Enterprise, the premium edition, we have included predictive analytics, which we used to separately. We also are offering to our customers the right to run Roambee, which is a cloud based solution at our lowest price that we can offer it out, which is literally just above cost. So we are allowing them to do that. Now, We are also including Roombi, which if anybody hasn't seen Roombi, go to the App Store right now, download Roombi.
It's one of the top 10 or 20 productivity apps on the App Store. It's I will say this and I would win a debate on this any day of the week. We own it. Sorry, Tableau, you guys are losers. We got it.
And we've now included Roambee inside of Business Objects Cloud. Now I know you're saying, well, what is Business Objects Cloud? 6 months ago, we announced a product named Cloud for Analytics. That was a stupid name. And again, yet another brand.
And so it is now business don't tweet that. It's now Business Objects Cloud. It's that simple. So if you say, Steve, what do you have in analytics? Well, we have Business Objects Enterprise on premise, of which you can also leverage Roambee because it's integrated into the Business Objects universes.
Ta da. Or you can also, if you want cloud, use Business Objects Cloud, which sounds the same, number 1. Number 2, also integrated with the universes and number 3, includes roaming. And the only other solution that we're offering in analytics is the digital boardroom. If you haven't seen it, once you see it, you'll fumble for your checkbook.
It's amazing and it is compelling. It's for the boardroom, the top down solution. I'm over on time. Now, Here's all the awesomeness that we've announced in Business Objects. You'll find this in my blog, things like Vodgcloud, etcetera, etcetera, ROMBA and all that great stuff.
There's an asterisk by ROMBA, you'll see it in my blog. Now, I may want to come up here because I'm clicking and I'm sure there's there we go. Okay. So what I'd like to do is introduce if everyone could say by the way, we all like Ike. And Ike is going to exactly.
So Ike, why don't you actually go ahead and show us Business Objects Cloud. I acknowledge we're probably going to run a few minutes over. So if Your demo, then we get David. So that would be awesome. But Ike, take us through a man rock and roll.
Absolutely. Absolutely. So to set the stage for everybody, today I'm going to be taking on the role of the Chief Operating Officer of a small Vancouver based startup tech startup company called JF Technologies. We are an SAP shop wall to wall for our digital core, for our analytics, and we break down silos that we also have with our cloud applications as well. Every morning when I wake up, Steve, I don't know about you, before I even brush my teeth, I've got a cup of coffee I've got my iPad.
I'm doing a pulse check on my business.
I brushed my teeth first.
Well, agree or disagree. Okay. Small point. So what I have is my mobile first dashboard, where I'm doing a pulse check on my business. I've got information coming in from procurement, from HR, from sales, but I see I've got 2 red flags that immediately come to my mind.
Number 1, within flexible workforce, Looks like I have a budget overrun, probably not a good thing for my business, especially as a start up. Also from a travel and expense perspective, it looks like I have a cost overrun of about $160,000 So once I identify these problems, Steve, what I want to do is jump over into Business Objects Cloud, diagnose and also prescribe a remedy for these issues.
Right now, we're just looking at a really cool Roambee view of what I need to know before I brush my teeth. And now we're going to into it with Business Objects Cloud. Absolutely.
Now the teeth are brushed. Okay. We're moving forward. Okay. Let's do this thing.
So I'm
going to go on to my laptop in my web browser. And as we bring this up, immediately what I have, what I'm looking at, I've got an overview of my business, right? I've got information coming in here from SuccessFactors, from Ariba, from Fieldglass, all of my cloud applications and my digital core. And I mentioned, we have 2 issues. So let's jump right in and start to diagnose.
So I'm going to come over into my flexible workforce, my contractors, data that's coming in from Fieldglass. Right off the bat, what I realize is, it looks like I may have an issue with some of my agencies that are supplying the contractors. Red is bad, at least in my mind. What about you, Steve?
Red is bad.
Red is bad. Orange is good. My gut tells me though there's a little bit more to this story. And to tell that story, what I like to do is use predictive analytics, do some influencer analysis.
But you would normally have to go and buy like a SaaS or something else and a blah, blah, blah. Do we have
to do that here? Absolutely not. And I'll give you another little hint behind the curtain here, Steve. I am not a data scientist.
Okay. Believe it or not. Okay.
I need a very intuitive user driven work to complete this predictive analysis. So all I need to do is answer a few simple questions. What do I want to analyze? In this case, we're going to look at budget. Okay.
And what do I want to use in that analysis, including, excluding my various measured dimensions. Simple as that. I'm going to click run. What we're going to do here now, Leverage the power of the HANA Cloud platform, predictive services to run an influencer analysis, basically a regression On top of our information and what it's going to spit out for me is a list of dimensions and how much they influence or don't influence budget.
And this is actually using the HANA engine sitting in the HANA Cloud platform, right? That's correct.
100%. So what I notice is, contrary to my belief that the agency was actually influencing whether or not a contractor went over budget, It's actually an internal issue. My supervisors, especially one supervisor in particular, Joru, 97% of contractors who work for her have gone above average or over budget. Now To prove my point, I can actually layer on top of this analysis, look at something like rating. Regardless of my contractors rating, if they work for Yoru, they're going to run over budget.
So we're firing him?
Well, Let's say, let's we'll have a phone call.
Okay. We'll have a conversation. Okay.
I just have this genie jerk thing. I'm sorry.
So there's the punch line, right? We want to go have a conversation with you. We can actually include this into our initial analysis. So now we're combining the worlds A business intelligence and predictive in a single solution.
That is fantastic. Ike, I think that's an amazing demo. Everybody, could we please give Ike a big round of applause? I think we're good. Excellent.
All right. So we're just going to be a couple of minutes over. We got about 2 minutes left in our time. But we want to make sure and give at least 5 minutes to David and if you could join us on stage. So David is the Founder and CEO of Prashant.
Now I will just tell you right away, as a frequent traveler
I'll stand wide for you again.
There we go. I feel better now. As a frequent traveler, there is no more valuable service to me than what David's company provides. And what's really cool is they keep people safe like me, like Greg, like Irfan, like you that globally and they do it with HANA. So David, why don't you tell us a little bit about what you do and how you keep people safe?
Sure. Thanks, Steve. I would have fired Euro too, don't worry. Thank you. So I like Ike, I'm not a data scientist.
Run a this is going to keep me buzzword compliant, but we're in a risk management firm and that's not selling insurance. That's real risk, not theoretical risk. I left The intelligence community in 2,008, 2009 started pressuring. After some initial commercial work, we pulled into government contracting support in the intelligence community, some of the units we used to work for. Very quickly, we were deploying folks all over the world.
We a team of AD counterintelligence personnel that we were sending to remote and austere environments, semi permissive environments. That was our first experience with duty care, having employees again distributed all over the world. What we found was it was really not a reliable source of current information where we could get folks up to speed on what a threat situation, what a situation on the ground is like in some of these countries. So fast forward to today, we're running a lot of national as a prime contractor. That is the roots of the business.
We run the insider threat program and a federal intelligence agency. I say it's Not the NSA mercifully or it wouldn't be me standing here after the last few years that they had with Snowden. But we have 2 strategic areas of focus and one is to take our national security methodologies and apply them to industry and then conversely sourcing emerging technologies and kind of best practice technologies, much like HANA, to strengthen our national security mission set. So it was skip right into about 20 months ago, as part of the insider threat program we run at that intelligence agency, We run the traveler safety program. It's consumed in a legacy fashion and what we consider to be an embarrassingly analog fashion, certainly not like nothing real time or near real time.
And we wanted to make that better. 20 months ago, we put together a team of data scientists, threatened research analysts and engineers. And we took a completely greenfield approach to solving this problem. And what we found Contrary to what was in industry, which was the 50 to 100 page risk report you may get before you go to Sudan or a place like that, was it the traveler needed less information that was more relevant to that traveler based on their demographic profile, where they were going, what types of threats that people like them were exposed to. So the big problem we had was it's a data driven problem, right?
We had to create the IDIACARE application that we could provide to the enterprise, both with the dashboard view. So a Chief Security Officer in this case could kind of get the pulse of the entire organization, where there are people we're distributed around the world visaviscertain threats and really be able to do reporting on, hey, this is our threat posture and be able to do real time communication with folks in the field. We could use iOS SDK by the way, about 18 months ago, it would have saved us a lot of money.
Sorry about that.
And then we have a mobile application, right. So it provides that traveler in the field location based alerting as you're walking towards an area of increased threat or an area where your vigilance should come up a notch, you're going to get that type of alert. Again, you didn't have to read the 50 or 100 page brief. You can dig into the application and pick up Threat briefs and backgrounds that are updated real time and that happens through HANA. And then customs and norms, cultural taboos are also But most remains to why we had to go with HANA, because we had a massive problem having to aggregate the whole world's worth of news, RSS feeds, social media, to be able to bring all of that data in and then really see through the noise and be able to using topic relevance, which we use through our threat data model and associated keyword list allows us to read foreign news in the 33 languages that kind of gives us flexibility and which was extremely important to us.
And then start to break out the things that really matter to us, right? We have sentiment analysis with all the neuro linguistic natural language processing Rather, that comes inherent in HANA. Again, allowing us to do sentiment analysis across all those languages, Who is talking about people or places that we're responsible for? What's the sentiment they're using? Are folks in danger in these locations?
Are they being targeted? Are areas where we have travelers increasing in risk. We're seeing a confluence of indicators come out from there. And we needed all of that to be kind of in an automated so that by the time our analysts were plugged in, most of the information had been triaged. They were only getting things that were relevant to folks where we have people that we're responsible for, And then we could deliver those alerts out to the field.
And then lastly, and certainly not least is the geospatial capability. I mean, we needed for millions of travelers to be able to calculate in real time their distance and direction to shelter sites where we can then in case of an event to where somewhere they'd be safe, and then all day every day calculate their distance and direction from the nearest point of the nearest zone or elevated caution zone, so we could be able to potentially steer them out of trouble and keep them out of areas where they're going to be in trouble. So we try to stay left of the boom we say and keep people out of trouble. So we work for insurance companies, but as a risk management firm, we're not selling insurance. But again, we couldn't have done any of that without Hanukkah.
I mean, just for 18 months from a 2 page white paper that we call was a caveman drawing, It's actually post beta field tested and operating with thousands of travelers in the field at this There's no way we could have gotten there as like not a data scientist, we just weren't going to get there without that kind of inherent capability. I think I'm close to time.
Fantastic. Well, I've just real quick. First of all, thank you for being here, number 1. And number 2, just a couple of quick questions. So Do you have any other SAP like ERP systems things like that at FreshPoint?
Nothing. Nothing. So this is HANA In a non SAP environment at a customer that company that doesn't have ERP, so I find that fascinating. And the second question is, do you ever turn HANA off? Never.
Can't. Can't turn it off? Absolutely can't. 20 fourseven. So David, I want to thank you for being a great partner, a great customer for being here and delivering that message.
I think it's very powerful. And I just feel safer standing by you, but I but certainly But obviously, I mean, you're doing something to keep the world safe. So thank you for building a great application that's making the world a better place. So thank you very much.
Our pleasure. Thanks for having us. Thank you.
I think I'm on.
So if you guys want to take a seat, we're going to take a few questions.
I don't think you said
it today, but yesterday you said that it's 100% more dangerous for women to travel.
It is. So we're
all now negotiating our danger pay with Steve. We started the conversations yesterday.
They'll settle for the fringe benefit of getting the traveler app for us.
Yes. I appreciate you saying that yesterday, by the way. It was very helpful.
Yes. No. Excellent. Way to go.
So we have some folks with mics. First question here.
If you
could please identify yourself.
Hi, Mike Fazarian with IT Business Edge.
I don't think I'm going to shock anybody
in this room if would suggest that many of the articles that you're gathering probably aren't accurate or maybe even not even true. So how do you signal the noise ratio What may be a propaganda piece out of one country that has Scott to do with anything and actual information.
It's great. We don't know each other, so you didn't serve that up for me. We use Apache NiFi, which is maybe the interest there. Stands for Niagara Files in the Apache infrastructure. It allows us to it's our data provenance tool.
So over time, we're regularly sourcing Sources where we're getting where we can validate the veracity information and then we're triaging everything that is noise or propaganda. We're pulling any articles that are disturbingly the same that look like some type of systematized propaganda ploy I'm throwing those out as outliers and then focusing down. And then again, we only are reporting and learning around a confluence of indicators. So those types of outliers usually fall by the wayside Unless it's a huge state sponsored type propaganda campaign, which in that case there's several methods to get to the heart But
if you tell them, you'd have to kill them, right?
But it's Apache and I5. So that's the answer. I'm not sure if you knew that or not, but that's what we're using.
Okay, great.
This is Albert Peng with AppsFlyntheWorld. Steve, you mentioned a couple of times on the latest release of HANA being data center ready.
Oh, yes.
I'm just
having a
dumb question. In the case of Nestle, How many copies of HANA do they have to purchase? Or how does that work?
Okay. So first of all, I can't actually Close or comment on exactly what a customer's architecture is. It would probably stop using our product if I did that. So Really, so the Nestle story is a great story. We have lots of it, but bear in mind, we're 10,000 customers later and 5 years Later, my point in making that and maybe I kind of yada yada over a lot of this, which is Customers and companies are looking at their IT landscape.
So let's I'm not even getting to the business. What David has done with Prussian is the outcomes that we want. This is the stuff that you go, it's impossible to do with this insanity that crazy architecture we talked about before, possible to do now with the simplicity of HANA, etcetera, etcetera. But if you look at What most of our customers are doing now, so I'll get down to the IT level. They're consolidating their enterprise infrastructure.
Whether we have customers that are 5 years into HANA and they're going, I just don't need all this other stuff anymore. And actually it is kind of stupid to be copying my data all over the place all the time. So not specifically to Nestle, but I tell you this is that HANA in terms of scale out and scale up, which it does both extraordinarily well, thanks to a lot of our hardware partners out here as well. The point is, is that we can take on workloads in not we are talking Petabyte level workloads is what we can attack in memory. Now bear in mind, we're not saying that's what you need to do.
Hooking HANA into Hadoop using technologies like Vora, we actually have the ability now to say, well, maybe there's a balanced where you don't need petabytes of things in memory, maybe you need something else. So the point is, is that we've given customers options, The ability to reduce costs while using HANA for what it's good for, which is this incredible compute platform that produces these great outcomes.
Thanks for the response. But my question has more to do with for a multinational Yes. Wanting to standardize on a single instance of HANA, how realistic is that? And how Much long, can we wait to can we expect something like that to happen?
Well, it's very realistic. I think we're seeing companies that are standardizing on it, right. It's not I mean, you don't throw away 20 years of infrastructure investment overnight. That's not the way it works. What we've done, if we were to go back a slide to the pretty candy crush colored picture there is this right here is a vision.
This is what we've laid out for customers and said, if you want your company to run and run as a digital enterprise, you can use this. You don't need the insanity that you've invested in and this is simple and easy to get your head around. And when organizations start doing it, the standardization begins. I would say that we have certainly dozens, if not 100 of multinational organizations, but different sizes like you can have a company that operates in the U. S.
And Canada, Which Canada is really in the 51st state. I mean, so it's barely multinational. Sorry, love Canadian, no Canada. But the reality is, is you can have a company that considers itself multinational in 2 countries. But I mean, the reality is that I think organizations are doing that now.
And what we're seeing is this, a lot of our Hana purchase As you can talk to Greg about this, are now 2nd, 3rd, 4th, 5th, 6th time purchases of HANA. And now they're coming to us saying, how do I get the enterprise license agreement?
And I'll just maybe say, Marie, I know you're here. We probably have some very specific customer examples we could share just to give some real examples, so we can make that connection for you. Yes. Yes. Other questions?
Mikko, you must have a question.
Sorry, I'm live streaming this on Periscope. Sorry about that. They're like I'm digging it. So sorry, I'm trying.
So around the bog I just want
to say this is my first time being live Streamed on Periscope.
No, it's not. You just don't know when we're doing it. Really?
Tell him I was
doing it.
It's the first time I'm aware that I have been live streamed on Periscope.
Hi.
Do they have to look through a tiny hole on their phone?
No. I actually had someone come on and go, I'm really digging this. So my hand's burning me, but I've been keeping it. Okay. You are dedicated.
Thank you. Quick question about business objects. So I understand the model is simplified, Steve. And I'm on board with it after a long day, some prayers. But I want to find out a little bit more about The tackle plan.
So if you were to tell me your next top three steps as to how because I talked to a couple of customers and the comment they said was basically Name change, same stuff. But I know that's not the intent. So if you were to be asked what's your next top three things that you're going to execute on To make that happen, do you mind sharing that?
Yes. Well, so actually it's not name change because we've had business objects. We just haven't standardized on it as the brand. It's not name change, number 1. It's names it's standardization.
So when I say business objects, I'm talking about the analytics folio versus and I won't go into brand X, Y, Z. So that's number 1. So we've standardized on the brand. Number 2, not the same stuff. If you look at Business Objects Enterprise, which is now our on premise And you take the premium edition offering of it, we're including predictive analytics, not the same.
And we are also offering Roambee the lowest point that we can delivering the highest value. So it's not the same stuff. It's not. And then second is business objects cloud includes Roambee. So again, not the same stuff.
And so that's number 1.
We've also included Vora as well.
Vora, yes, absolutely. Vora included as well. So you'll see that in my blog. So that is so it's not the same stuff. We've done things like plug in Vora, predictive analytics, Roambee to make the business objects enterprise on premise experience that much better and in the business objects Cloud that much easier.
That's what you saw from the Ike demo. Now that's step 1. I can tell you step 2. I can't tell you step 3.
Okay.
What's number 2? Well, step 2 is simplify more. I mean, we have we right now, we need to do things like, for example, We have to take Lumera, which by the way we're announcing Lumera 2.0 which is coming out soon. And as part of that, we are going to be in the future, it's a future forward statement, so I won't say when, but we're combining Design studio into that. So Lumera has taken with 2.0 a giant leap forward in terms of its ability to be a powerful self-service data visualization technology and anybody that wants the beta happy to get it to you.
I got to do is talk to Mr. Mick Stravick and we'll get you that beta right away. But the point is, is that as soon as we do that and then combine the design studio capability into it, we've reduced the client technologies that we on premise, which we promised to do. That was a promise. And as we deliver on those promises, we will have Web Intelligence, Lumira and Crystal Reports as part of the new 4.2 update, which is pretty strong as far as I'm concerned.
Step 3?
Come to TechEd.
Come to TechEd. Okay. One more question about the mobile. So Roambee is here. Roambee is here.
They are sets on wheels. And then we have MoBI, which is a Ford. So Is there any influence that's going to come from the roaming portfolio into mobile? Like are we is there a possibility to ever see where we become Cardex in mobile? Like what's going to happen there with mobile?
So certainly with mobile, we want the mobile experience across Business Objects Enterprise and Business Objects Cloud To be best in class, number 1 in the world, which we are with the Roombi acquisition and we want it to be consistent. So over time, we will create more Between Mobi, Rombee, etcetera. Mobi is not we're not announcing the end of life of Mobi today or anything like that. We need to think through that again and I would say come the tech
head. We have time for one more question, if there is one. Okay. I will thank you, David, for speaking to us today. Steve, any closing comments as we wrap up?
I mean, obviously, this is first of all, David, thank you again. I mean, there's an incredible story about what you do and the solution that you've created. And I think it also highlights, as we've said many times, HANA is not just about SAP. We always default to, oh, Tell me about ERP and HANA and here is an incredibly innovative leader of a company with an incredibly innovative solution Making people safer, that's number 1. Number 2 is I challenge you and I invite you to talk to Greg, Talk to me, talk to Irfan, engage with us and other leaders of the organization, Allison as well on this new platform.
This is what will get your organization to the front of the pack. This is what will transform your organization into a digital enterprise. So you can choose. This is your choice and I'll end on this. You can continue to stick with the technology you have And convince yourself that all of this integration effort that you're doing across 9, 10, 30 different products, That lateral movement is the same as forward momentum.
You can fool yourself into that. But those are not the same things. This is an innovation architecture that will drive forward momentum for your company where your IT department, your business will be able to shift its activity from worrying about what talks to what and what data doesn't match what to moving the business forward, and that is what this is all about. So thank you very much.
Good afternoon and welcome. Thank you for joining us today for our panel on Personalized medicine. I'd like to thank the panelists for taking time out of their schedule while you're here at Saphyr. And Those of you watching from live stream, thank you for tuning in as well. We're looking forward to an hour of rich dialogue around healthcare And the kind of coattails of the announcement made this morning from Steve Singh about SAP entering into the healthcare fold.
I'll quickly introduce our panelists. On the end, we have David Delaney, Chief Medical Officer with SAP. We have Eduardo Condo, CIO of ACHE Laboratories in Brazil. We have Carlos Bustamante, Professor of Genetics at Stanford School of Medicine. We have Jesse Burns, CEO of Dharma Platform.
We have Gio Castella.
Colin.
I'm sorry, Colin. From CEO of Scatch Life Health And Kevin Fitzpatrick, CEO of CancerLinQ, a non profit subsidiary of the American Society of Clinical Oncology. By way of my background, I am the 4 time cancer survivor noted in your in the bio. To give you a little bit of context. My background is originally in Business Development and Client Relations.
I used to sell technology solutions to industry. I took time out to raise our son. I got my degree in my master's in business administration. I got certified as a holistic nutrition consultant and a fitness trainer largely for my cancer management and have reshaped my career now diagnosed with Hodgkin's lymphoma when I was 17. It was back in 1983.
In my 20s, I was diagnosed with melanoma. In my 30s, I was diagnosed again with melanoma and in my 40s, I was diagnosed with breast cancer. So for many years, I've had to manage my care and I learned decades ago the importance of being an engaged patient and partnering with my providers and really seeking the care that spoke to me based on my patient choice. So each of my 4 diagnoses I managed differently. I delegated my care during the Hodgkin's because I didn't know anything about cancer.
I engaged in my care for my first melanoma when I found the first mole. I engaged and owned my care In my 30s when I found the 2nd melanoma and I personalized my care with breast cancer because I did not do traditional protocol of chemotherapy, I instead continue to follow a protocol based on nutrition and herbal Medicine. So I'm here today to bring the patient perspective to a conversation that will be rich with expertise from within the health With that, what I'd like to do to open up the panel is based on Steve Singh's wonderful announcement this morning about SAP's Alliance and the Connected Health platform. We have the 3 partners sitting here today. I'd love to give each of you 3 minutes, roughly to share the nature and value of your organization's partnerships with SAP And the promise that we can look forward to from such an endeavor.
Kevin, would you like to kick us off on behalf of CancerLin?
I'd be happy to. So my name is Kevin Fitzpatrick. I have the privilege of serving as CEO of CancerLinQ. And it's great to be up here with so many disruptors, right? And What's more disruptive than having a health care panel led by a patient?
Now that's never happened before, and I think that's a wonderful Symbology for what we're trying to accomplish here. But ASCO, the American Society of Clinical Oncology, 40,000 members dedicated toward improving cancer care. And the IT expression of ASCO is CancerLinQ. In manufacturing and driving inefficiencies out of the system, if we were going to improve oncology care For patients across the globe, if we were going to collect data that we could analyze on a large scale, if we could be looking for signals that to emerge from that data that can inform new therapies and new approaches to care. So we are delighted to be Partnering with SAP and working on the HANA platform.
We're early days with CancerLinQ and we collect data out of the back end of electronic medical record Systems, we have over a 1000000 patients already in the system, over 700 physicians participating, which I think gives you some sense as to the pent up demand on the part of providers for better tools to use in service of their patients. Great to be here today. Thank you.
Great. Well, thank you very much. I'm Giovanni Colai L'Oreal is my nickname. Let me start by saying that asking an Italian to say everything in 3 minutes is really hard, Really hard, but I'll give it a shot. So first of all, I'm the founder of Castlight.
Let me say a few words about Castlight, and then I will work through that to explain how we work with SAP and why we're so excited about our new partnership. Castlight was founded by myself and Todd Park, who's now currently the CTO of the White House, 2,008, if I remember right. And the goal of Castlight from the beginning was to provide complete transparency, Eliminate the so called asymmetry of information between patients and physicians, provide complete transparency, understanding of cost, Understanding of quality and then allowing a personalization
of the health care experience.
Actually in those days, we called it the Amazonification of health Think about it, we live on Amazon. We go on it. It's a profile for us. We know it. When you do it for health care, you actually Absolutely no idea what you're shopping for, how you're doing it.
And I came to this through personal experience. I mean myself, not myself as a patient, but I'm a physician and I practiced for many years. And I came to this with the experience of trying to find care for my mother who had cancer. And it was just such a bad experience. And it was so much not what I wanted from American medicine.
Castlight. Where we are with Castlight now and why does it make so much sense, our partnership with SAP? Castlight is 8 years old now. We evolved our platform to be a much more ubiquitous platform with analytics. We have millions of claims going through our platform every day, millions of patients on our platforms.
We work with the 15 of the Fortune 50 companies and we are growing very, very quickly. On our platform now, we provide transparency to cost, quality, but we've added a analytics piece, which allows us to actually Understand, analyze the data, personalize it to the patient. And so we provide that's we provide information, for example, if you're depressed, we're able to tell you we're able to find that out. We're able to address to you the right messages, direct you to the right treatment. Back pain is another big example very much used in our system.
We sell it to employers to the HR suite and that's where the marriage with SAP comes very, very
natural to us. So we're really looking for this partnership.
Much more that can to us. So we're really looking for this partnership. Much more that can be done. Our mission is to drive into the analytics as much as we can. Really want to look at a moment in which health care is an experience that is actually pleasant for the patient, where they can manage their care, understand their care and co work with the physician to obtain the best care possible in the most personalized way.
So how
do I follow that? So that's a great introduction to Castlight. So I'm going to And I did it
in 3 minutes.
It was pretty good. It was pretty good.
I don't
have a
watch, but I'm guessing it was
right there. So am I.
So let me just actually start by talking about the pain that I felt before Dharma existed. So I started my career as a paramedic, And I never thought about tech or software or I didn't know what SAP was. I just gotten in a helicopter or an ambulance and I knew who my patient was and where I was going and who was going with me and if it was a fire or a rescue or something else. But it was opening up what's called a tough book and seeing what I was doing and going and treating a patient. And the result of my action wasn't looking at a dashboard, it was seeing them breathe or getting an IV line started for the clinicians here, physician and as an epidemiologist into the public health space, that same tech wasn't there.
And in order for me to be an emergency, A complex epidemiologist, what I need and what I needed before Dharma was the ability to go out, collect information, have that information, inform people that make big operational decisions, Spend lots of money on deciding what program goes where to affect to get those most affected by crises. And when I started out As an epi, I started learning Python, which I don't want to do. I had no interest in it. I just wanted to treat patients the same way I did as a clinician. And luckily, I went to graduate school in the Bay Area where everyone else knew how to write code.
And we piloted something that became drama, which was We needed this end to end tech that could work anywhere for anyone. And when we think about the pain points of clinicians working in these developing economies, it's How many patients did they treat that week? And did patient have condition X or did they die or get referred or were they discharged? And complex analytics, there's this big chasm between the developed world and these very fancy dashboards that have all of these different moving parts. And what people in the field, doctors, nurses, health workers, logisticians, people that are providing health services, both primary and ancillary, actually need to ingest to improve their operations as well as people that are making big programmatic decisions.
Now, Dharma at scale in throughout the Middle East for both UN organizations and NGOs are providing just that. So what people are able to do now both field clinicians and Program managers and administrators and donors is to see in real time both for one project and its scale across many how their programs are doing and do they need to pivot other areas. We're doing the altered treatment. And Dartmouth facilitates that by not having to force people to cobble together 5 different solutions worry about IT support. It's very much grab the tech, go design your project, collect information, store it securely, meeting every different compliance you can imagine And then view results, simple, ingestible results.
And where this partnership with SAP and the Connected Health folks comes in is us getting that information ingested and that information at scale can sort of be pushed back in this and what I heard a few times over this This SAP conference at SAPPHIRE is this intelligence loop, right? It's not just clinician facing, which is what dharma is, but it's also patient facing. So if clinicians get data, information, analytics that inform their operations and improve their the way that they treat their patients, that information can be pushed back both at the individual clinician level and at scale with the whole organization back to these consumer facing applications and sort of complete that loop. So it's not just about the Consumer facing applications that my colleagues here talk about, but it's the clinician facing applications that allow for the acceleration of this intelligence loop that we keep hearing about. So
that's a perfect segue to, A, I want to just Advise that when we use the term consumer today, we're talking about clinicians, patients and caregivers. Now we'll specify in certain parts of the conversation which Pardon me, but we are expanding the consumer definition for the panel today to absolutely include the clinician piece. And it's interesting from the intelligence loop, right? When I heard that here, we talk about feedback loops. We don't really have feedback loops in healthcare for patients to give back and caregivers to give back the feedback from their experience to help inform the system So we can start making better clinical decision support tools and opportunities, right?
But I love intelligence loops that's exactly what patients and caregivers have is intelligence from their experience. You learn from your mother's cancer experience, Gio, right? You bring great intelligence from that that the system can benefit from, myself as well. So I'm going to open up the discussion and talk about the people in healthcare and the roles that we all play. Now you all have very clearly defined roles that you are pursuing in healthcare and doing amazing work on behalf of consumers like myself.
With the intelligence that we don't have roles for patients and caregivers to play more of a business partner, thought leader role, Correct. So in the work that you're doing, how do you envision working with The end user, the customer's customer, if you will, in a way that's more innovative beyond surveys, questionnaires and focus groups. And within each of your organizations, you're all touching consumers. And I think it's strategically about how do we Collaborate now with the end users and expand the conversations and the opportunities side of what we've been doing. We're at a point now where digital transformation 2.0 is happening and we have these platforms, the open platforms that we can develop new solutions on and patient facing, but we really have an opportunity to incorporate more of that intelligence.
So From let's hear from Carlos on the genetics piece, right?
Yes. In the
Stanford Medical School.
It's a great question. So, I guess you talked about defined roles. I see myself as I guess more of a connector. And as A big data sort of analysis person, we're always trying to ingest a lot of information, aggregate and then serve up are the knowledge that we've created. And there's one particular project that we're a part of called the Clinical Genome Resource, The ClinGen project, which is our country's largest effort to aggregate clinical genetic testing data.
So currently, when you Going for clinical genetic testing, say BRCA-one and two screening, hereditary general hereditary cancer screening, hereditary cardiovascular screening, you have that data live in silos at the particular lab that did the test. So it might be Myriad, it might be Ambre, it might be Emory, it might be Stanford, it may be Harvard. And so several years ago, we came together as a community to break down those silos, create a system by which labs could securely share aggregate data. So I run a test, You run a test, you run a test. We have the same mutation.
I might have called it pathogenic. You might have called it a variant of unknown significant. And you might have also called it a variant of unknown significance. So the 3 of us would then get together and say, okay, what evidence did you use to adjudicate and how do we come up rules to improve this and then implement them. And what's interesting about that experience to get back to your question is that the first thing we did is come up with a system map.
How do we aggregate and think about the data? And at the center of that system map is actually the patient. And we began by thinking, okay, what kind of information Do we need to disseminate to patients, to clinical genetic testing labs, to providers and how do we build that system in a way that we're serving up what each of these community needs and then getting input. And so we've actually got a patient facing portal that both does surveys, takes in patient information, allows patients who want to share data to share data with us, but more importantly give us feedback as to how the system can be implemented. And it's actually been quite successful, I think, as we've built out the system and we're now in the process of thinking about the next phase of the project.
And ultimately, it's improving patient care because One of the big challenges we face is that we can't live in a world where the decision about whether or not you have a double mastectomy depends on what lab you sent the results to, right? That's just not acceptable. And by sharing data broadly, we can come up with best practices and ultimately outcomes That best practice is based on outcomes that help inform the decision making process.
Right. Eduardo, would you like to also from the pharmaceutical perspective?
First of all, thank you very much to be part of this panel. Those All very important people here. And when I got in for the indication from Andreas said, look, I'm not scientists. I'm not a physician. Just IT, so thank you very much to be part of this panel.
I've been working for Pharmaceuticals and IT the last 20 years. And I'm seeing some changes in IT, right? And it's very interesting to hear all the things we are talking about, analytics, big data, We need the reports. We need the dashboards. So I'm trying to change The mind of my people, my team to say, look, we need to look not the customers, but the customer of our customers, right?
Because in the past, The people said, okay, IT needs to be focused on the business, but it's not enough anymore, right? We need to be beyond on that. We need to be part of this transformation, the digital transformation, and we are just talking about the digital transformation 2.0, right? We had a very big transformation in the past, but right now we are seeing something really, really disruptive, right? So I'm just trying to change the mind of my team to thank the customer of my customers.
And we've just implement SAP HANA and SAP, it's our very important partner. And we just created a foundation now. We just created a foundation. And Looking forward, all those requirements of the digital transformation, to attain all these requirements, as we mentioned before. So for me, as IT, it's very difficult to follow all these requirements because it's too fast nowadays.
So but We need to follow that and we need to be very disruptive also in terms of the IT. And Because if we do not do that, then our clients, internal clients will find a solution, right? They do not wait. They do not wait IT, the traditional IT. They will find some solutions in terms of that.
So
Exactly. So to your point about the disruption, yesterday Bill McDermott was saying, we can expect the next 5 to 10 years to be more disruptive than the last 5 to 10 years, Right. Which is exciting and daunting at the same time. When we talk about the design centered thinking, which now we have multiple stakeholders coming together to work collaboratively in a way they haven't before, which In other areas might have been a competitive rub, right, where with research, we have more organizations doing shared research now for the benefit of the patient. And that's disruptive to some business models, which is great.
What with the design thinking, again, it's just I would invite and then I'll move on. Expand the design teams, right, to make sure all the stakeholders involved, especially if the patients at the center, they should also the caregiver as well because we don't Give the caregiver enough airtime of the importance of the role and Gio from your experience again with your mom could speak to that as well. It's an intense experience. Have those folks at the table as well. When we talk about Process, right?
Business process improvement is a great step to efficiency. Well, in We have workflows, we have clinical workflows, right? We've got business process, we've got research process, we also have patient and caregiver life flows. So we've got to figure out ways to improve the process for all the players. And Gio, I'll give you a moment to speak about the business process then and From the employer perspective and also from the consumer perspective on the employee end, how Castlight is Helping to create efficiency around some processing.
Okay. So thank you. Great question. We like to start from a business standpoint where there is a problem. I mean, where is the problem?
Where is the pain? How do you solve it? And then eventually somebody will pay for it because at the end of the day you are building a business, right? And that's how we thought about Castlight. We wanted to get to the point in which we had enough data to deliver to the consumer a good experience.
But there is a reason why in health care data is not available. I mean, it's not that people don't want to give you the well, actually it is because people don't want to give you the data. The incentives are completely misaligned. And so it became a tricky issue at the beginning. It was intellectually very interesting, but you don't eat with intellect.
At one point, you just have to put something in place. How do we get access to this data in a way that actually benefits the consumer, but you can build a business model around it and you make sure you have that access. And this was 8 years ago. I remember when we started saying we want to create price transparency, so everybody know what will they be paying out of pocket. It was like if I was talking a different language, which I actually frequently do, but in this case I wasn't.
And what are you talking about? The payers will never give you the data. The providers will never give you the data. These guys don't want that one. So that's where the business process comes in place.
We said, okay, there is a real pain point here. You're putting people on high deductible plans, you're asking them to pay more out of pocket, You're really trying to create a consumer, but you're not really creating a consumer, you're just asking people to pay more. And You can be a free marketer as much as you want. There is a lot of behavioral factors that come into asking people to pay more and how they will behave. And on top of this, if you don't give them prices, it's going to be really hard to make that happen.
So try to make a long story short, not good at it, but I'm almost there. So what we said is, okay, let's offer, let's create for the human resource leader a platform that can simplify that process It's way better for them. So get the claims. Nobody will give us the data. Okay, we'll build.
We believe the software can get everything, but we need the claims. So we'll build we built a software that was called revenge in Silicon Valley like which is reverse engineering. We will get the claims Because they are owned by the employers, we reversed engineer them and we created our platform and started putting prices and then quality and then we advance. Once you have the data, everything is easier. So the business process became incredibly easier for the employer at that point that was putting people on the high deductible plan.
And that essentially simplified the process for the employees to get What
would you say at that point to have a chance
to make better
health decisions? One employee said To me at one point, he said, gosh, I finally have Travelocity for health care.
There you go.
Right? It was something that helped him. Now let's make no mistakes. We're still far I mean, there's a long way to go in health care. And it is I've always said that it's a team sport, although that the incentives are mis Ultimately, if we don't work together, all of us, it's just not going to happen.
But it's it's Exactly.
So Kevin, from the clinical perspective and with the CancerLinX and the aggregation of the oncology and from data you say is housed within the EHRs and represents the 97% of the cancer population that are not in clinical trials, right? So the process improvement and for the clinicians by creating a tool such as Cancer Link and how that impacts consumers?
Yes, absolutely, Kim. It's a great question. I'm so glad Giovanna and the Castlight team are working on The business processes, because clinical data is hard, business processes are even harder, right? But when it comes to clinical data, I think one interesting Aspect of a multifaceted problem here is, in this case an opportunity, is survivorship in oncology. So the research coming out of labs like Carlos now is revealing incredible insights into the molecular drivers of these diseases And targeted therapies are available for many of these cancers in ways that we couldn't have imagined 5, 10 years ago, right?
That's a wonderful opportunity. And so now patients are moving from an acute phase of illness to chronicity, right? And so data collection like CancerLinQ to follow large cohorts of patients over time to look for safety signals As they move out in their care and as they move through wellness, it's going to be an increasingly important part of maintaining healthy populations of patients and moving cancer care from an acute illness to a chronic disease that one can manage.
Exactly. And you and I have talked about that. And that's exactly what I would love to see for the consumer is having that patient decision support tool because I, as a survivor, I don't seek a lot of care. I do most of my management at home. But in order to get the information I need to know how to manage my I want to be able to look to a database that has the same data that my doctor is looking at, right, rather than me going out to random websites and doing my own research.
And what I would love to see is we give the patient more independence, so that I don't have to go see my doctor to get that Data, right? It shouldn't be held up in cancer length only. We need to extend it out so that I at home can look at what potential trends are for breast cancer and so forth down the line. So yes, thank you for the solution for cancer leak. And I'll look forward
to that.
We're trying.
We're trying.
Well, exactly. It's a helpful quality to get there.
Where we go, I mean, it's ultimately about carrots and Right. And so if we think about the relatively simple problem of getting clinical labs That are doing testing to share data. The carrot, of course, is that they will do a better job of diagnosing and the variance if they share data, because then we can compare processes, why are you calling it this way, calling it that way, and how do we get to really sort of settle down and get on the same page. And then, of course, the stake is that And on the reimbursement side, we can get professional organizations and we can get public to advocate and Say to the CMS, the center that governs on the federal side reimbursement that we won't pay for a clinical testing lab service unless they share the data in a public repository, right? And there's been a push by, for example, American College of Medical Geneticists, right along those lines.
They say, in fact, it is a breach of professional ethics for someone Directing a clinical lab to not share data with other labs that we can improve process. Now how that will get resolved is really Ultimately, anybody's guess, but I think there are pressure points there, particularly on the reimbursement side that could be used to nudge Providers to share data.
Absolutely. And you all probably know better than I do. How do we move the needle on those pressure points to get reimbursement and incentives realized, right? So David, I don't want you to feel left out there on the end. We've talked about from your clinical perspective using technology and solutions such as the Connected health platform to really help patients become better participants in their care, right?
So when you're taking aggregated data and now Creating other solutions on top of that, I'd like to hear you speak to from your perspective, both on the clinical side and the technical side, Some of what you see as opportunities for the patients to take more of an active role in their care through some design center solutions?
Sure thing, Kim. I think we're in an amazing time. I mean, we're really seeing Patient engagement shifting from kind of an afterthought to where it's kind of more today for the mainstream, which is more of a kind of consumer thing. What's the patient experience like? And I think leading organizations are leading the movement to really Patient engagement around outcomes, optimizing outcomes, right?
And really being the most mature way to look at it. And then how it is that you can begin to Align the interest and the reimbursement and compensation of everyone involved on achieving those end results, The value being quality and quantity of life or the outcome of a procedure. Rather than having the perfect trip, have the perfect Health Care has been very siloed, where each individual kind of looking at their piece, and it's kind of piece work handed down the chain. So what gets very exciting is building a platform that really can manage the delivery of care and the data involved in it from end to end, from diagnosis through treatment through restoration And really providing an end to end visibility into that for all parties and not having this kind of artificial separation of patient engagement, information and provider and payer in life sciences. But really that end to end visibility in a very agile fashion that allows you to determine outcomes and quality and really track it all real time.
And I think that capability is really game changing for all parties involved.
So I
think that actually one item that we haven't really touched on here is we've talked a lot about The developed world and the U. S. And the EU. And to give a little bit more of a developing economy slant, one of the biggest issues that my colleagues and I have faced for MTD patients is massive. We think about the Middle East in particular.
And when we think about pain points for chronic disease, They're a bit different than the U. S. And this the patient side of things there, which is CompareBest Provider and make sure that your services are being priced effectively, where there it's how do you track medication and over medication or missed medication across multiple points in time in different facilities? And how do people pay when they don't have cash? And what does that look like not just for 1 patient, 1 patient plus one facility plus 1 Ministry of Health and then even more at scale for the region and the donors that are giving money to get those NCV patients care.
And I think when we look at these pain points, they're not wholly disparate from what you're discussing here, but complementary. And If we could find a way, at least in that context at least, to get information both at the individual level between the patients and the clinicians, Where do they go? What medication they have? And then at scale of how many medications were given for hypertension in Lebanon in 2015 from all settings. And There are ways to solve for that, both among the people in this panel and wider with SAP and beyond.
I think it'd be good to talk about both these domestic issues and the international.
Well, and on the international side, we were talking earlier about the need for transparency. So I'm from Venezuela, Country that right now is suffering a tremendous health care crisis and the government is you can't believe the official government statistics, right? The government says, who are you going to believe me or your lion eyes? Everything's fine. Yet it's reported by The New York Times that infant mortality is now 100 fold higher than it was 3 years ago, right?
It used to be 0.2% 0.2%, now it's 2% of neonates are dying, Okay. How do we get independent statistics on that, right? How do NGOs network that kind of data and make that available so that Policymakers can make the right decision where or even the public can get access to that kind of information. That's where transformative technology like DARM I think can really be incredibly influential and important.
I mean, let's address an elephant in the room, right? Sometimes patient level information is not wanted by the Ministries of Health Or it's not wanted by a lot of powers that be, which is what if you're in a country that supposedly has a very low burden of reproductive health related crises, Yet because of one reason or another, all of these patients are needing anything from family planning to various prenatal services. How does that information filter up? And how could there be a greater degree of transparency fostered, both internationally and even here in the U. S?
Or Zika. We have no insights into Zika in Venezuela because the government said, oh, there's no Zika here.
But there
are 500 cases of Right? In Brazil, what's the real situation in Brazil on the ground on Zika?
Yes. I was just going to ask Eduardo to comment From the
Exactly. When you said about Zika in Brazil, sometimes we go to the hospital and the hospital, the first thing that they say, okay, you don't have Zika, you have cold, go to the home and then they did not report those things into a database or everything. But I think in the future that will be Pretty more difficult to the government, to the people because everything now is going to be digitalized, right? You have all the paper, you have all the material, you have the sensors, you have your phone, you have everything. So you can take all the things and take the picture and store in the database.
So you can have your sensors stored in the database. So The good thing in the future will be how can we interact and how can we consolidate everything in only one place. And the other challenge will be the regulations, right? When you think about digital transformation, especially in the pharmacy, we have our roadblocks saying, okay, we need to talk with ANVISA, FDA because we have a lot of limitations in terms of that, they have privacy laws and etcetera that the people, They do not have their creativity in terms of that because they think all the problems that they will face with the laws and The regulatory limitations that we will have to prove or to face in the future. So as I said, pharmaceutical is beyond of many other industries like technology banks, finance because of that.
Because sometimes you have people that are working for pharmaceutical for a long time And they are thinking as 20 years ago, right? And they think that, okay, I will not have a good idea because if I have a good idea then I have all these problems in I'll have to take out all these problems that they just Stop there. What they are doing, right?
Right. And I think the chink in the intelligence loop armor is the is invalid data, All status from field level, whether it's a clinic or it's a health facility. One great example of that is I worked for an NGO that is So I will leave them unnamed, but I had a mission to go to Honduras. And I was told they had this big sexual and gender based violence program where they treated 95% of women each month who had reported a sexual or gender based violence event. It turns out the numerator and denominator were the same thing.
So they were treating 18 out of 20 women each month or 19 out of 20 each month an entire city in Honduras where the patients suffer, the clinicians are getting funding that's going in the wrong direction at field level, And that intelligence loop is a whatever you want to call the opposite intelligence loop, but both for the clinicians and for the patients because both the system at field level broken, invalid data entry and appropriate statistics. And as that information filtered up to the systems level institutional, It was getting pushed back as 1,000,000 and more funding. So this NGO had 35 staff and 10 vehicles and 2 offices for 18 patients a month or 20 patients a month. So as much as we want to enforce this positive loop, we need to prevent Negative feedback that reinforces a poor system.
And it's not just the developing world, right? We can talk about what some have called 4th world, right?
Flint, Michigan,
right? If we had the data on Dorma from Flint, Michigan, maybe this could have been Far earlier, it affected far earlier, right? So I think for epidemiologists, it could be incredibly useful to have this kind of real time tracking. And I've said, I view Facebook and social networks as the creative destruction of epidemiology in a potentially good way, right? When you have 1,500,000,000 networked people, you can begin to enroll in a way that just isn't possible in the way we've done managed trials that don't scale with the number of people you want to follow.
You know, into that point I just shed a tear.
Well, this is a little bit of a diversion, but I recently was On a panel with someone who specializes in social listening, to your point, right? So you have these online communities and now you're creating these specific tags and you're going out and you're listening The conversations that are open and public and you're seeing the evidence kind of make itself known of where the issues are happening, Right. We do that with a variety of other areas besides healthcare. So you're right. I think with dharma, what fascinates me about dharma is You're starting from the ground up and you're creating a longitudinal record and you're not creating an EMR, right?
You're creating A repository of data that's accessible, actionable and straightforward so that the field level work employed workers can For eye care. Yes. I think Really just we need in health care.
I think that the sort of the key reason dharma is needed for a lot of people is that who likes making pivot tables? Anyone here? No? Okay. If someone likes pivot tables, You're the best.
I think, professor, just showed a second to you.
Yes, exactly. But merging Excel sheets is tough. And You want your doctors and nurses and health workers to focus on making you feel better and not on worrying how to make a pivot table. And that is a big pain point, not just in the developing world, but in a lot of primary health clinics here. I mean, sometimes there's some different clinics in the U.
S. And Orlando probably are dealing with awful access databases that they're together. And if you solve for that, then you solve for a lot of other bigger problems in terms of data usage and consumption at a larger level and reinforcing that loop. So what does that look like on the tech side? It's something that's simple and can be scaled in a way where someone can query it across different sites, whether they're doing some logistical assessment for a health project, or they're running an outpatient center, or they're doing a mobile clinic or outreach or doing a survey.
All of those things that they could play nice in one repository, this big beautiful back end system, then that's a big win. That, combined with a great Record system would be the ultimate win, but probably another conversation for another day.
So the promise of in memory solutions or the aggregation of data from multiple sources and then pulled out as in memory data that David, please speak to this More so from SAP perspective, that gives us the opportunity then to Create actionable data, real time, I mean, live data, from multiple sources in a way that we're bypassing the silos essentially. Is that fair to say?
Exactly, Kim. I think HANA is why I'm at SAP. I'm a technologist and a physician. And Every once in a while, you get the opportunity to dramatically accelerate and simplify something. It's usually it's either one or the other, right?
And the beauty with in memory computing is we can not only dramatically simplify often by 100, even 1,000 plus times the speed of doing something, but we can dramatically simplify the equation at the same time. We can reach out into data wherever it lives, in silos, on-site, off-site, no matter what form it lives in, whether it's unstructured data with free text, semi structured or structured, and we can make sense of it all within a matter of And that opens up doors because when you talk about even in the first world, trying to in a world where one passenger catching one plane over into the U. S. Can carry infectious agent over. And we've seen this, right?
And our the time to react to Zika, I mean, it's coming whether we're ready or not, right? And so the traditional capabilities to do this kind of analysis, which are slow, plotting and cumbersome. You have to lay the concrete down. And then when the model isn't right, you got to tear it all up. It's arduous.
There's a huge amount of data wrangling and headwinds and overhead to do this. And really moving to an era where you can just apply a lens to it and adjust it, iteration by iteration to really get there, is I think precisely where we need to go with health care. It's just agile, fast. And the other very exciting consequence is that we can now put graphical user interface tools in front of domain experts, clinicians and smart patients who understand their illness and allow them to begin to engage and have a conversation with the data themselves to really better understand it and get to a better place of understanding. And by the way, again, doing this in real time.
Back when I practice, The feedback we get regarding our practice typically would lag 3 months, 6 months. We've seen what we did 6 months ago. And it's really, really hard to change your behavior when you can't drill down to the patient level and understand what you did or could have done better and the data is 6 months stale. Very different situation where you can actually look at data of the patients you saw yesterday or you're seeing today, where you did well, where you could do better and to be able to have conversation with the data to really understand and make your own. So it's a very different world, and I'm just super excited to be working with all of our great partners and the folks in the States to really help usher it in.
So the patient is the only stakeholder that moves throughout the system, Right. So I change doctors, I move across state lines and my data is siloed as we all know and ultimately needs to follow me, Right. So through the in memory computing and the opportunity to have cloud based storage of the data, It opens up the opportunity now where we talk about portability of data rather than just interoperability of data. We need both, right? And Eduardo, you and I talked about this a little bit earlier.
And as CIO, I'd love to hear you comment on that.
And this is interesting, Kim, because when you say it about in memory processing, right, and everybody is saying about in memory process, but this is not simple, right? This is a journey. And when my CEO comes to me and say, look at what I was in Congress and I heard about in memory processing. And why am I need to wait 4 hours, 6 hours, 10 hours to get my report, Right. And we need to prove that it's not simple like that.
It's a journey. So we have different technologies, not in terms of our in memory. As I said, we just migrated to HANA and we have in memory processing. But we also have some topologies to improve the processing, the speed to deliver the things to the customer. And one thing that I say to the IT team, say, how many times do you call to the Facebook to reset your password?
Why our internal clients need to call to the service desk to reset our SAP Password. So this is what we are talking about, the digital transformation and also the change of the IT team also to follow all these requirements. So in terms of mobility, this is something that it's an explosion, right? Everybody here has 2, 3 smartphones, 4 smart phones or mobile devices, and it's happening everywhere. And we need to have the creativity to create apps that the users will use, right?
And how IT can also provide these data In this efficiency that we are talking about, it's simple like this in memory processing.
This is
what you were expecting for IT.
Yes. So as a patient, I'm very excited about all that we're talking about being possible. And I hope that we're able to accelerate some of these advancements, with the data being unlocked and moving around throughout the system and also with the patient would ideally be the way to go. But when you talk about creating apps that patients will use and again, that gets back to my early point of making sure through the design phase, we have all those all those people at the table because we want to know early on if the solution is really going to meet the real world needs of the patients and the caregivers, right? So the running theme through the conference has been Cloud, Big Data and Mobile Devices.
And with SAP jumping into the healthcare fold, I'm very excited about that because In Healthcare, we talk about, well, let's look to other industries to see how they've successfully achieved the customer experience, right? Retail, travel, what have you. Well, SAP Services all those industries and has internal intelligence to draw from to bring into the healthcare experience, correct? So, I'd love to hear just the from where you all sit, from the collaboration opportunities you see For each of your organizations that will now be available through a connected health platform, How can you now reach out beyond just the domains that you all fit in to collaborate with organizations that perhaps wouldn't have been a natural fit without the opportunity to have an open platform to share data, communicate and collaborate? Kevin, do you want to start?
Let me take a crack
at that.
Yes, it's a great question. I leave the SAPPHIRE meeting incredibly optimistic about the future. There's really daunting problems that we've got to solve with workflow And technology and health care, whether you're in Orlando or whether you're in Rajasthan, right? There's different problems, but problems abound. But there's also a coalition of the willing that's emerging.
It's physicians and patients and legislators and governments That are beginning a cultural shift where it's not okay to act in silos anymore. It's not okay from a business perspective. It's not From a societal perspective, I think we're on the right side of history and the tide is moving in this direction. And being able to take best practices from these incredible organizations on the floor here today and map that into health care in different locations, in different ways, I think it's incredibly powerful. And again, the collaborators, the coalition of the willing is going to, I think, emerge as the victors in this fight.
And I'm incredibly jazzed about that.
Yes. I second the optimism. With that said, I also yes, it sounds Thank you. Wow. So I was saying I'm an optimist by nature, so I believe we are on the right side of history.
I also want to bring a little bit of reality in I have a lot of scars on my back, having been an entrepreneur in health care for the past 30 years. In health care, first of all, there's 3 Ts, things take time. It really takes a long time. It's an incredibly complex industry. And it's a whenever you look at it between $2,000,000,000,000 to 3,000,000,000,000 dollar industry where a lot of entrenched interests are going to be turned around.
And so there are people that are fiercely going to fight back on this. So SAP has an enormous opportunity in front of the company. We all have a great opportunity. It's going to take time. It's very complex.
And it's going to be, I believe, really driven by the private sector with academia, working with it, and then it'll spread more widely, but it's going to take time. It's not going to be something I mean, yes, we're in the best this is the best moment, which means that the next 5 years will be great and every other industry would have been much, much faster than that.
So you're telling me to be patient.
Patient is not the patients and Doctors are still doctors. And we all talk about these. The average physicians out there practicing doesn't care about the data, doesn't care about having everything at the tip of their finger. Doesn't really want the patient questioning what they're doing and participating. The world has to change, but it's going to
take time do that.
And I believe the financial incentives are going to be play an enormous role in that.
But to that point, another dynamic that we haven't touched on, but we can briefly are the millennials. So they're not seeking a lot of care now, but they will. And their expectations are obviously very different.
But not only the millennials, I mean, you have people like me, the baby boomers. I mean, our expectations Very different.
We have
to wait for the millennials. Thank God for them, and they're going to take a long time before they get sick.
I'm the
guy who's
I'm just saying be ready for
My hips and my knees to start Speaking, right?
Yes. But the way they engage with the services that they seek, whether it's health care or otherwise, their expectations are so different. My suggestion is just let's be ready. Like start preparing for them today even though they're not really here yet.
Yes. As far
as consuming care. Well,
One thought on it. The system is dysfunctional as it is, behaves exactly As you'd expect it to given the dysfunctional incentives we put on it, right? So, it's a rational system for each of the actors in it. As a whole, it makes no sense. So one of the great things we can do is you can't control the behavior of cats, saying you can't herd cats.
And I borrowed this from Francis Collins, who spoke at our Bloomberg SAP event a couple of weeks ago. But you can't herd cats, but you can change where you put their food, right? And that will change behavior. And the shift in payment from paying to just do things to beginning to pay for value is profound. And it's happening today.
It's shifting rapidly. Medicare, the largest payer in the U. S, the government is shifting it, and the private sector following suit. So that ultimately is going to be the greatest catalyst is beginning to accurately measure value at the end and beginning to incent and pay based on it. And that will disrupt Because all of a sudden, providing better care drops down in Maslow's hierarchy from a superego, I should do it kind of thing to actually survive.
And there's nothing like having to figure out how to continue to align those economic drivers to begin to drive change. And that's where my hope is at.
I Totally agree with you. The only word of caution having been in this, this is not like taking the cup of food from a cat from one room to the other. This is taking the steak from the tiger and taking it to the other room. And the
tiger is a little bit
more violent, so it's going to fight back. But good luck. I mean,
we're going
to do it.
So I would
like to take a little bit more
on the
way back. Jesse and Carlos and Eduardo, a moment for closing thoughts. Yes.
So I
think that they I don't think I know. The healthcare ecosystem is a many splendid thing, right? And in a lot of spaces, research is not driven by the cost of clinical care. Some spaces it is, but for the most part, if you're a researcher at a major university and you want to know the effect of herding cats on your overall well-being, then You have AID funding, then you have AID funding, and you get NIH grants. And that pool of data is never touched by the clinical side of things.
And then I was a graduate researcher at CDC, and we got data from all over the world and all these different organizations, and we never shared it with anybody. We
put it
in this giant Excel spreadsheet, No one touched it. Then we moved over Access, and that took a whole summer of graduate work. And that information should be feeding clinical actors. And if we think about where we are now with all of these different silos of data, these pools of information that aren't that don't have bridges across them in a lot of spaces, nor in a lot of spaces can be bridged And where we want to go, which is one big repository of information to feed both the client and the clinician, we have a long way to go. And it's a combination of everything from consumer facing applications that pull from existing systems to clinician facing applications that are easy to use and give them the reward that they need, which is simple information to guide their patient treatment course.
And let's be blunt about that, right, which is Docs want to treat patients. They want people to get better. So do nurses and health workers. So if you tell someone to fill out a form each week in most facilities, They'll fill out a form and they'll do it begrudgingly because they're not seeing the results of their action except months later. Whereas if you were to shift that paradigm a bit to say, fill out something and as you fill it out, you're going to see the result.
And you're going to see is the patient getting better, and you're already getting better information into that system. And you're already sort of improving that intelligence on one side of the fence. And when we think about that at scale, it's both on the consumer side and on the clinician side improving both the application and the use of data across systems. That's that long game win. I don't know if you're going to have to pull data from the Tigers, you probably will.
But it's a necessary sort of next step. And it depends if there's incentive to get different funding or better funding if you're a researcher or improve the quality of your patient care if you're a clinician. Right.
Carlos, In my mind, improving
patient care is going to ultimately depend on improving clinical decision support, And instead of telling you about it, I hope we have a little bit of time for Anakshi to show the data integration that we've been able to do because I think that is really for us the next generation of where this is going
to go. Perfect. Eduardo?
To say
that you see A big change in the future or in the near future in terms of pharmaceuticals because not only in the launch of new drugs, Because I also believe in the new drugs, and I also believe in the collaborative research in terms of new drugs, but also in terms of services, right? And in case of Assay, we are investing a lot in terms of services because we I think product will be in
the middle, but In the
end, services and the consumer will be really what we are looking for. So I think in the very near future, we will see a very big change. And that is pretty much more proactive or preventive health to us not get worse diseases in the future.
Great. Well, I want to take the opportunity to thank you all for Taking having the courage to sit on a patient led panel, I hope I didn't skew the conversation too much, but I really do appreciate all your work and perspectives and focus on consumers. I would like to now turn it over to Anakshi Singh on behalf of Stanford Medical School, And she's going to run you through a demonstration of Thank you. Thank you, Kim.
Before showing you the demo, I'd like to give you a little bit of a flavor of what Clinical genomics looks like today. We all talk about genomics in the advent of genome sequencing, but the reality is that it's not at the context of clinical care yet. And Today at Stanford Clinical Genomic Service, the way that it works is once a patient is seen by a physician, their genome is sequenced and bioinformatician process that data. That takes time, days and effort. In order for a genetic counselor to look at this data, it needs to be processed and ready for them.
And today, What they receive is an Excel file with 150 columns and a genetic counselor or geneticist will have to go through each line in this Excel file, look at each look at each mutation in this patient completely separate from their clinical data. And so on average, it takes them about 50 hours to go through that to find something clinically actionable and create a clinical report that has some recommendations, some summary that is understandable by physician and something that's actionable. So this is our attempt of creating an application to try to make that whole process more interactive and more automated. Could I share my screen? Thank you.
So right here, we're looking at the landing page where we can see that there are 15 patients that are currently in my system. And I can see the name of the patient as well as their status, so whether their report has been created or whether they're still in progress as well as their primary diagnosis.
If a report has been created,
I can see it at
this list here. I can also scroll as well as sort by these various different columns. So let's say I wanted to look into Oliver. What I can do is I can click into Oliver's page and I will see a summary at the top, which includes the most pertinent information from his clinical data. So I'll see his status, his date of birth, but more importantly, his latest primary diagnosis and his latest interaction.
So in this case, it looks like Oliver had a colonoscopy, and his latest diagnosis was a pull up of colon. For those of you not aware, it's basically a growth of cells in the lining of the colon, often it's not cancerous, but it can become colon cancer. So we might ask why did his doctor suggest that he get a colonoscopy. I'll pause on that question for a second and scroll down and we can see a clinical summary of all of the interactions that have existed in Oliver's life from his medical record, sorted by the different categories. I can do is I can also filter and say, show me only the diagnoses, for example, or show me only the procedures that Oliver has been into.
I can also look at this in a time line, so I can see how these all relate to each other in a graphical way. Here, I'm only looking at the clinical data. And of course, we're talking about clinical genomics, so we need to be thinking about genomic data. So what I can do is I can move over to the genetic summary. What's happening here in the background is it's automatically looking at Oliver's diagnosis, which is ColonPolit and searching a disease database that shows me only the genetic mutations in Oliver's genome that are related to this diagnosis.
So it's a very quick and automatic peripheral view of Oliver's genomic data. So I can quickly see here are some of these mutations that I might want to take a deeper look at. And even cooler, I can see if Oliver's parents share his diagnosis, which in this case, they do not. And I can also look at his ancestry information. So this is not self reported ancestry, but rather ancestry that's been calculated on his genomic data, which is important since Some of some might identify as American, but you might be European or Native American or whatever it is.
So and this is important in the genetic context. What I can do is I can go deeper into the genetic data of Oliver. This is the page where A genetic counselor would spend the most amount of time. Each line is essentially a mutation or genetic variant in Oliver's and they've been ranked and pre filtered based on functional effect and consequence. So the work of the bioinformatician is lessened.
So what I can do is I can say, okay, maybe this variant here looks interesting. I want to learn more about it. I can select that variant and I will be taken to a variant detail page. So again, we're looking at his pull up of colon and trying to understand if there's some genetic predisposition to colon cancer. So what I can see is this variant is in this gene here.
And actually, the most important sentence is here at the bottom, mutations in this gene often result in heritable predisposition to colon cancer. So as a genetic counselor, I might conclude that this mutation might give Oliver a higher risk of getting colon cancer. Maybe that's why the doctor originally prescribed colonoscopy and perhaps this is what I want to make the physician aware of. So what I can do is I can actually add that to my clinical report and say this is related to his diagnosis and save that. And then I can go into my report page, and I will see my variant that I just added automatically added into here along with my text.
And so we're creating this report automatically rather than having to manually type this from an Excel sheet. And I can add a recommendation saying perhaps he should have regular screenings. And then I can save this report and share it with the physician. So from 50 hours to a real time interactive way of searching the genetic variants in the context of Oliver's clinical data and also automating how we integrate clinical and genomic data. This data or this workflow I showed is very specific to a geneticist or genetic but obviously all of this data is very interesting for a physician as well.
So I will switch over now to physician view. The landing page looks identical, but let's go back to Oliver's page and we'll see the tab look a little bit different. So we have the clinical summary in the same way we looked at earlier. If there was a report, we could see it in the previous page. And now what we're looking at is only the pharmacogenomics.
So the drug interactions the toxicity information from Oliver's genome data, which is the most interesting thing for a physician is not what genetic mutations does he have, but what does that mean for the drugs Oliver. So we have a list here along with information about Oliver in this case. He's a poor metabolizer of this drug. So if I was prescribing this as a physician, I would know to give him perhaps more of it or prescribe a different drug. The last thing I wanted to quickly show is we've actually also integrated wearable information with this patient dashboard.
So when I go here, I can see that there is a summary of Oliver's wearable sensor technology. In this case, it's heart rate and energy levels. So if I zoom into a particular day, What I can see is a summary of his heart rate as well as energy rate. These little alerts we created here are basically when his heart rate is high, but his energy rate is low. So that might signify he's having a stressful day or maybe something's going on with his heart and perhaps the physician might want to look into this deeper.
And so I can just quickly show the genetic counselor workflow, but also the physician dashboard and we could think about also how a patient might leverage this data in a patient dashboard. And that's all I want to show. Thank you.
If I could add one last great job. So just to get a little bit of context, when we developed this application with SAP or really when they developed that application for us, We were targeting the inherited cardiovascular disease clinic that my colleague Ewan Ashley runs. And so Ewan spends his life looking at families with kids that die of sudden death, right, or people that have dilated cardiomyopathy. And so for him, it's very, very important to then also have monitoring devices that go along. And so we struck a relationship with Samsung, have gotten primary access to the data, been able to hack the data and then put them in this kind of a framework so that now he's got only sort of treating this patient, but he can do At home monitoring using this system.
So we're really excited about the opportunity this provides in that particular context and using that as a pilot as we build out the management of other patients, where based on their genetics, you may need a tailored treatment.
May I add now? When Ewan saw this dashboard, he said this is the future of health care. This is what a precision medical record should look like. We should be able to integrate wearable data with genomic data and clinical data in the context of clinical care.
And the clinical data came from the Stanford EPIC EHR system.
And with the precision medicine initiative that's kicking off and the search for a 1000000 volunteers to donate their data and also the genetic Data. I would put the call out that we would love to, from a patient perspective, level the field and have the 1,000,000 volunteers come from not just the patient communities, but from all the health care stakeholder communities. We all need to share the risk in this new venture of sharing data and there's a lot of unknowns and we all have Rich information whether we're ill or not to contribute to that pool, to do the analysis, right? So I would love to see Health care leaders and researchers and technologists and the whole all of us in this space throw our data into the mix because Leveling the playing field would be the goal, right? So I guess we can end on that note.
Thank you all very much for attending, taking the extra time. I'm sorry, we did run a few minutes over, but I hope you found the conversation rich and Informative. So,