PAUL YOUNG: Welcome to Cloud OnAir, live webinars from Google Cloud We host webinars every Tuesday My name is Paul Young and today we’ll be talking about power innovation for SAP with Google Cloud You can ask questions anytime on the platform Today we have Googlers, SAP-ers, and customers on standby to answer them, so ask away So let’s get started As discussed, Paul Young and I’m the go-to-market director for SAP Google Cloud You’ll hear plenty from me, so let’s move on to the people that matter Next to me here is Isabell Petzelt, global vice president of SAP Cloud Platform, go-to-market How do you even fit that on a business card? I want to ask We’ll just move on from there Extra weight business cards for your job titles Subject of the day, first of all, is SAP Google Cloud partnership Especially around SAP Cloud Platform but in general, too Secondly, we have a customer perspective with METRO Just great, Axel Koss from METRO will be talking about their deployment and the decision criteria and how we do it Just fantastic content And then lastly, we’ll have a conversation about running SAP on Google Cloud And the things we’re doing to make Google Cloud the best place possible to run SAP And, at the end of that, hopefully we’ll have time to fit in some questions and answers as well So all that said, let’s get started with topic one Welcome, Isabell ISABELL PETZELT: Thank you, Paul PAUL YOUNG: So do you want to introduce yourself to the people, won’t you? ISABELL PETZELT: Absolutely Isabell Petzelt. I run the global centers of expertise for SAP Cloud Platform That’s why the name’s so along So I work a lot with customers around the globe in helping them transition their core enterprise application into the cloud PAUL YOUNG: Great Thank you for coming along And you’re a long-time SAP person, right? ISABELL PETZELT: [? 60 ?] plus years Still running strong PAUL YOUNG: That’s always good So what’s top of mind? What’s the challenges that actually your customers have right now? ISABELL PETZELT: Right So what customers are really challenged about today is fundamentally different than what happened in the last few decades And SAP traditionally was focused on really about standardizing, optimizing core business processes But today customers are really forced to innovate and differentiate themselves with disruptive business models, with complete new customer experiences Also, giving employees more purpose in their work, where they leverage a lot of technologies and data to really solve those challenges And what we see in the most successful companies– what they are doing– they are adopting new technologies and leveraging data very quickly And that is what is delivering really game-changing outcomes for them Because first, they achieve a step change in productivity by applying technologies like machine learning, like artificial intelligence to those core business processes to automate them to make them more efficient Second, they also redefine the customer experience because it’s not only about anymore responding to customer needs It is about predicting what customers want and create that satisfaction before the customers even know it And third, it’s really about transforming their employee engagement Because employees want to have more purpose from work They automate certain tasks so employees can really focus on higher level value-adding activities and tasks to really move the company forward And that is what we really talk about and what we mean with intelligent enterprise because customers today are hungry for innovation, to differentiate themselves PAUL YOUNG: All right Again, I hear the intelligent enterprise conversation a lot And I think that’s a really powerful way to explain it, right? So it’s not just about analytics, a certain one thing It is about that complete package for the customer Very cool So what’s SAP doing to deliver against those challenges? Great idea What do we do to fix it? ISABELL PETZELT: Exactly Great idea So I said, customers are really forced to differentiate But they want to build that innovation on a solid trusted environment that, on the one hand side, gives them the flexibility but at the other hand side, still has that robustness and security to run their core applications Because that is what customers love and trust about SAP– running that solid core And that is where also SAP has that process heritage But now customers really want to build new functionality on top of those core processes to really differentiate themselves Look what happened last week with Cyber Monday, where everyone went crazy here in US shopping, where retailers actually launched a very specific set of functionality on their digital platforms to create a new customer experience, to launch specific promotions, to engage differently with customers to boost up sales You don’t want to build those extensions that only are there for a week or two into your core business applications You want to build them side-by-side on a platform also utilizing latest technologies– like machine learning and so on– to create that experience And that is what SAP both delivers– on the one hand side, solid packaged applications

for the core business processes and a platform to deliver and build those innovations on top, and everything in a single environment PAUL YOUNG: So I spent a long time as a customer of SAP, actually running SAP systems I spent a long time with SAP I’ll tell you, the point where it came over to Google Cloud, the thing that amazed me was, I think, day three I walked in a room where there were 20 engineers working on a single joint project, right? Amazing alignment and investment between Google and SAP to deliver something that’s much more than just, hey, you can run SAP on Google Cloud hardware So do you want to talk quickly on your perspective on how Google Cloud and SAP are working together to take this far beyond just another place you can run, execute Cloud ISABELL PETZELT: Absolutely I think that the partnership between Google is as fundamental in a game changer because together we are helping our customers in their mission to succeed in the digital transformation Because I think there are two fundamental things that the teams have delivered First, they really created, as you just said, a fantastic place to run SAP applications on top of Google Cloud But really optimizing SAP apps to run on Google Cloud But also optimized Google Cloud to run as apps So those engineering initiatives are happening on both sides for the maximum efficiency and scale So look what we’ve done with the virtual machines for HANA, starting with a few terabytes And now you can deploy 16, 18 terabytes at the snap of a finger So that was really the one piece to create the best place to run SAP applications But what is even more game changing, as we spoke before– customers want to build new functionality They want to use latest technology And that is why that move– having SAP Cloud Platform run on Google Cloud– was a fundamental game changer because now customers can consume cutting-edge technologies from Google– be it machine learning, be it TensorFlow models– and really apply and infuse them into the core processes of SAP in building those differentiating innovations right out of the box So we do all the plumbing for them They can really focus on building the innovation And that is what really builds those intelligent enterprises PAUL YOUNG: It’s incredibly cool if you follow through as well I think this development where Google fits in the world is that, if you look at sort of what we’re looking at, we’re also providing data sets I’m here with the stuff just Cloud for marketing where we have the live analysis of what our customers’ advertised this morning Are people responding to it? The ability to, through Cloud Platform, to join that through and just power at a level of granularity and a level of detail and a level of execution that’s just never been achieved before That’s much, much more than just a place to run SAP in the Cloud ISABELL PETZELT: Exactly PAUL YOUNG: Very cool So your favorite subject, Cloud Platform, obviously fits into this Give us the drill How does Cloud Platform bind all of this together? ISABELL PETZELT: Absolutely Cloud Platform is almost the glue that’s the centerpiece of– PAUL YOUNG: Not that you’re biased about it ISABELL PETZELT: No Because customers really, on the one hand side, they need those business services They need those processes And they need the innovation or the infrastructure technology services from Google Cloud to really extend their core processes in the SAP applications with those technologies and really combine, as I just said, transactional data with other sources that come from Google, from wherever in the world, to really change the customer experience and really deliver those disruptive business models But they want to do that on a platform in parallel to their core systems So Cloud Platform almost becomes the bridge between their packaged apps and their innovation platform, the bridge between on-premise and cloud application, because it’s a stepwise move, because customers are moving massive enterprise workloads into the Cloud And they want to do that at their own pace And that is exactly what SAP Cloud Platform gives them It’s really the innovation layer in the cloud to build intelligent enterprise applications And that is what is really the game changer in the partnership– that now, SAP Cloud Platform as the platform, as a service offering from SAP, combined with the latest technologies from Google, to extend those core business processes, while still keeping the integrity while customers build those innovations And this platform now runs on Google Cloud So that’s a game changer for our customers to build innovation PAUL YOUNG: It’s a really big conversation I mean, it’s fascinating actually, recently, how we’ve seen a huge uptake in demand Whereas customers start to plan the [INAUDIBLE] journeys, and start to bring [INAUDIBLE] over It’s not just, hey, you know, lift and shift, right? It’s not just pick it up and drop it They want to improve They want to enhance They want– ISABELL PETZELT: Exactly PAUL YOUNG: –to do more And Cloud Platform is how you unlock that, right? And again, the objective is to make it run here, hopefully better than anywhere ISABELL PETZELT: Exactly PAUL YOUNG: –to allow that So to that subject, what happens then? So customer comes here, they have SAP running inside Google Cloud They have Google Cloud [INAUDIBLE] They have Cloud Platform

What does that do to unlock the intelligent enterprise? ISABELL PETZELT: Right Right For that, you need to look at how SAP delivers innovation, or how we deliver innovation to our customers On the one hand side, in the digital core, we update that once, twice a year And our cloud applications– for the different [? LOBs, ?] we deliver innovations about once a quarter So any customer gets that functionality So they do not really differentiate themselves through those packaged applications So that is probably also not the speed that customers really desire when they want to build those competitive, disruptive new business models because they really want to innovate rapidly They need iteration Sometimes, things work, don’t work So they need that flexibility on a platform to really reinvent their enterprise processes at their own pace and really build those differentiating sets of functionality on top of their packaged apps And that is really key for the partnership– what we bring together to those customers because we deliver that innovations on two level– on the one hand side on the infrastructure level by bringing technologies to run enterprise applications from SAP on containers with Kubernetes, Knative, bring them really to enterprise readiness and scale; and on the other hand side, on the service level, where we allow customers to seamlessly consume infrastructure services from Google– be it machine learning, be it artificial intelligence, natural language processing, and really infuse that into our core business processes Think about the– we just –released those event triggers function as a service for our latest digital course, S/4HANA To give you an example, I’m German I love cars And I go now out of the Google parking lot, and I take a nice picture from whatever car– we are not making any promotions here– and post it on my Twitter feed because it’s a cool car Then actually what the car companies are doing today, they’re scanning the social feeds using image recognition to detect their cars, who has posted what about that car on the web And they realize, woo! This guy wants to– is interested or likes my car Why don’t I sent him an offer where he can configure his car, where he can basically submit an order And ultimately, I submit an order Then throughout the production process, which takes a few weeks and is running on core solid SAP systems producing hundreds and thousands of cars really at scale, those function as a service now allow you that an event gets triggered when that car enters the painting facility And then a picture is sent to the customer showing exactly his car in the production line, when the seats get in and so on So that keeps the customer engaged with the entire process And this is not happening– or you should not do that in your core applications, because you don’t want to touch that You have to produce those 200,000 cars This is now what you can really develop on the platform using services, image recognition and so on, from Google, to really build that the special functionality without disrupting the core So it’s no longer about, let’s say, pure outcomes and processes It is really about redefining the innovation cycle in your company by quickly building those innovations on top of a stable core PAUL YOUNG: Very cool I think it also ties in– if we look back at the conversation, you did mention Kubernetes and Knative And that’s really cool But also, if you look at the investment we’re making in virtual machines– so that conversation that says, hey, I have an idea And I want to develop that really quickly in Cloud Platform I know I want to test it So in history, if you have a giant– you have a like, 18-terabyte production system running inside HANA where you’ve got to keep a spare 18-terabyte box around Or you’re going to try and run on top of QA And how do you manage all of that stuff? As opposed to our world where you can literally provision that server in 30 seconds, take a replica of production, take a replica of [INAUDIBLE],, build the entire test environment you need, pay for it by the second If it works, off the production If it doesn’t work, back to revision Just again, the combination of SAP and Google Cloud just unlocks potential that just isn’t– everyone’s dreamed of this No one’s been able to achieve it so far That point where I can just spin up copies of production, run testing, drop them again, unlocks just massive potential The future looks really cool, I have to say That’s my opinion But I’m biased So wrapping it up, what do customers take away from this? What’s the call to action here? ISABELL PETZELT: Right Because customers, to be clear, they’re making really big bets Moving into the cloud, it causes a whole new set of questions, because especially in the enterprise, they are moving their holy grail, their core business applications into the cloud, and they’re really infusing cutting-edge technologies into their core processes, which can be a nightmare, or a customer really scared to move that move And that is exactly why customers need partners they can trust They need partners that understand the enterprise

And they need partners that can grow with them And that’s exactly the reason for this partnership– why SAP and Google came together– because only together we can make sure to have our customers move with confidence into the cloud to allow them to rapidly innovate and experiment without risk, building those new functionalities, leveraging those new cutting-edge technologies, while still running a stable core And that is what customers want They want to innovate fast They want to be agile They want to build all of that on a trusted platform to evolve their business And that is exactly what we together can deliver them PAUL YOUNG: I think it’s really fascinating I did a recording for a partner recently where I said if you look, especially right now, the customers are looking to [INAUDIBLE] and do everything else A lot of this is– it’s a commitment almost like a marriage You’re making a long-term commitment And so you have to trust and you have to believe in everyone in it And you have to believe that it gets you what you want in the end I think it’s again, the brand of SAP, the brand of Google, what we deliver to our customers combining this is something quite remarkable, especially in this scenario Really thank you for the time today Hang around I know you’re going to sneak off and answer some questions in the Q&A ISABELL PETZELT: We will PAUL YOUNG: And come back later and we’ll take some live But really appreciate the time Thanks for your time Yeah, great game here So separately, great for us to talk about the theory, but let’s make it real So what we have at this point is some content from Axel Koss at METRO So four weeks ago, METRO stood up at Next London I think it was about four weeks The weeks all blend together in my travel schedule right now Anyway, recently, METRO stood up at Next London and talked about how they’re moving their SAP environment to Google Cloud Amazing project This isn’t just again, lift and shift There are a hundred SAP systems He’ll tell you himself that they tend to consolidate down to one S4 system That’s a pretty significant effort And there’s reasons why they chose Google Cloud to do that And Google Cloud does the platform And I’ll let Axel tell you what those are [MUSIC PLAYING] AXEL KOSS: I’m Axel Koss from METRONOM, METRONOM with a tech company of METRO METRO is one of the biggest B2B wholesale worldwide We have business in 35 countries, 150,000 colleagues, and 21 million customers Our goal means METRO goal is very clear to bring the food and hospitality sector on a new level by providing digital solutions for their business The challenges are coming from different kinds of stakeholder, internal as well external If I have a look on first on the internal stakeholder, for example, the accounting departments, they would like to close their books much faster as they are able to do it today On the other side, controlling would like to get most likely real-time insight into our figures to make the right proposals for the management to make the right decisions afterwards And then we are coming to the external stakeholder For example, our investors, they would like to get much better understanding of our businesses And the most important topic is here for sure, our B2B wholesale customer They are asking for more and more digital services, for sure, most likely in the e-commerce area But nevertheless, they are also asking for much more services in the finance area Here, we already provide some services like invoice To make this happen, we were searching for the right infrastructure and the right ERP system We found them with SAP S/4HANA and Google Cloud Platform [MUSIC PLAYING] First of all, I would like to mention that we already have business on Google Cloud Platform, most likely in the e-commerce I mentioned before This is an important part of our omni-channel strategy Nevertheless, we spoke with a Google [INAUDIBLE] who are involved already in the e-commerce area, but also we discussed this topic with our colleagues by Google Based on this, we really decided to make this move I really would like to point out that from day one on we were at a very good partnership That means for me at least, we are equal partners We are open minded and we are very focused to make things happen For sure upfront, we had also a look on the market to look for other alternatives But nevertheless, I really would like to make the same decision today once again First of all, allow me to expand what consultation here

means for METRONOM This means we, SAP, Google, and METRONOM joined forces to realize our key objective, to streamline our SAP finance landscape from around 100 to 1 system Sound ambitious? Yes! You are completely right, but nevertheless, this is our goal To make this happen, we were using first Google Cloud Platform Second, SAP 4/HANA finance as our core system running on Google Cloud Platform C, SAP Cloud Platform if we need any kind of developments, also running on Google Cloud What we can see so far, it’s really working as planned And if you open such boxes, you get rid of all effect in your teams Why? You see a lot of different opportunities you can use in the cloud services But stay focused, otherwise, it can really happen that you cannot see the wood for the trees We use our objective and key result process That means the outcome was a clear action item plan Based on this, everybody in the teams know exactly what to be done We defined it so clear because SAP S/4HANA, in combination with Google Cloud Platform and SAP Cloud Platform give us as I mentioned already, a lot of different opportunities But coming back to our team’s key to success is change management Why? Keep in mind, everybody has to work in the future with SAP4/HANA in the teams They are working on a complete new infrastructure, and they see a lot of opportunities in respect of cloud services This is at least for us in the IT, but as well in the business, a big challenge Everybody is highly engaged and everybody is seeing a clear advantage of this journey Very clear, go out and try it Build up your own environment on Google Cloud Platform and SAP Cloud Platform Define your own user stories you would like to start with I wish you good luck by this PAUL YOUNG: So thanks to Axel for the discussion Really appreciate having METRO as a customer I really appreciate them contributing to this And he continues to contribute He’s live in the Q&A right now, if you want to ask him questions And please do Always the best input when I was a customer came from other customers, and today is no exception So with that, my task of the day is to introduce you to why we think running SAP in Google Cloud is better than anywhere else, what we’re doing in order to try and make it the best place to run SAP in the cloud So let’s start with one slide, my favorite slide of them all This slide basically is describing to you the SAP HANA virtual machines we have available And that part of this conversation where I see virtual machine is the most important Everybody else in this market is still largely bare metal No one else has a virtual machine server above 6 terabytes That roadmap says we will have virtual machines of 12 and 18 terabytes in next year We already have, in the light green box that we’ll come back to, a 7 terabyte VM available to customers to demonstrate that it’s possible That becomes really important in this conversation, because if you go back in history, from launch of R3, there has been a way that customers procure and buy the equipment that they run SAP on Back in the day, this took a quick sizer that’s still used where the customers come through, and as they want to roll a project, they have to estimate forwards what their largest hour will be in the next three years So let’s say you’re a retailer That’s not hard to guess That’s probably 8:00 AM Black Friday in 2022 at this point, after deployment Good luck, however guessing what that deployment, what that sizing is And it ultimately is a guess There is a point where you can size to a point, but then you have to estimate growth, you have to estimate change in software And so customers tend to buy a huge amount of equipment, and hope that three years from now they’re sized to fit And if they don’t buy enough, they have a huge problem, because they basically have to trash what they have and buy again If they buy too little, or actually if they buy too much, then they’ve just wasted money And no one wants to waste money And so the adult answer to that is not to do that, right? Because we really can’t predict the future Three years from now is a long time away And how are we going to get to that number predictably? We’re not We never have It’s always been a guess I think the challenge for me is as we migrated to the cloud

and as cloud providers came online, a lot of them just replicated that hardware model directly in the cloud So they came along and they said you have do a three-year sizing You have to tell me how big you’re going to be three years You have to sign a three-year contract That’s not what the cloud is supposed to be about That’s not how this is supposed to work And so at Google Cloud we’ve approached SAP radically differently We build our own servers We build our own virtual machines We build them from scratch And we do that for a reason And the reason is exactly this, that you fundamentally, when you come to us, I don’t need to know how big you’re going to be in three years, because you don’t really know how big you’re going to be three years I just need to know how big you are now You can deploy in that equipment And then as you get bigger, as you grow, as you change over time, you have the ability just to step up through that rank, because they’re all reconfigurable What that does is that allows me to take a lot of the risk that exists in your current environment in sizing and provisioning, a lot of things that prevent you going forwards because you have to try and get to a three-year scope that’s relatively fixed and the sizing is relatively fixed I allow you to take all of that and put it to the side And what you’re left with is an environment where you can deploy at the size you are now and grow at the speed you want to grow at No one has done that before And that unlocks huge amounts of potential in your SAP environment as you grow and you want to change So couple with that a couple of things on this conversation So first of all right now, there’s the 4-terabyte HANA instance, the ultramem-160 That’s available to all customers Also available in scale out That’s been available since June, doing incredibly well This box here is really interesting The 7-terabyte HANA server, that is the Optane server So that’s the first Cascade Lake server in the cloud That’s the first Optane memory server in the cloud It’s an amazing box SAP published it’s own statistics where that HANA server boots 12 times faster than any HANA server that’s come before it Uptime matters in this world, especially in SAP If your entire business, if your retail stores, if your factories, if your manufacturer, buyers, whatever they are, if they require SAP to be online, uptime matters And that server boots 12 times faster when you have to patch it and restart it That’s a really big deal In term, we haven’t published any performance tasks for it yet But it’s the first Cascade Lake server in the cloud We’re making huge investments to get to be the highest performing, the most reliable environment we can get it to be, in order to deliver that outcome to you as a customer Likewise, the 12 and the 18 are in engineering to be available next year And again, available on 30-second provisioning globally So this is not I tell you I need an 18-terabyte server for production, and one for high availability, and one for QA, and one for test And I pay upfront for them, and they get delivered to me in 12 weeks, and I’m stuck with those servers for the next three years All of this fleet is available at 30-second provisioning globally That ability to just click on a button and start a server and run it unlocks a huge amount of potential in SAP world that we’ve never seen before So that on its own is interesting But we’re not stopping there The other part I’ll give you is a Google tool called live migration So again, if uptime matters to you, then what’s the best we can do in keeping SAP servers up as long as possible? So one of the challenges is patching So earlier in the year, obviously, there was a little round of Intel patches that came out for security Every other provider on the planet, when that press release went out on a Tuesday, informed all of their customers that they had 72 hours to take an unscheduled outage and patch the systems Now in the world of SAP, that’s not a simple task It’s not just shutting down a single server, patching it, and bringing it back again You have giant clusters in environments of servers that are all interconnected, where they all have to be shut down and they all have to be patched and they all have to be restarted And you can lose hours and hours of work And it’s not insignificant amounts of money We had a customer we talked to recently here, a $10 billion manufacturer And the answer is the manufacturing plants can’t run if the servers are not online from SAP So literally, the point where you get a patch through that says you have to patch this within the next 72 hours You’re not going to take an unscheduled outage, which is going to result in three or four hours of downtime where the entire company has to shut down while it’s being patched In this case $10 billion a year manufacturer, it’s a million dollars an hour An unscheduled patch is going to cost them $4 million straight away So there has to be a better way There has to be a way to solve this problem And Google has a way to solve that problem We have a tool called live migration Again, all of our servers are VM So what happens ultimately is the point where a patch is released, you don’t have to shut down your servers You don’t have to do anything at all If you leave a flag on it in the VM that says Google is allowed to patch them, what happens is we will create a second parallel server to the same configuration of the first We’ll pre-patch it with the patches that required We’ll sync the server across while it still runs

And we’ll transition you to the patch server while the systems are fully operational Zero downtime And so again, you go back to the customer, that’s $4 million saved every time there’s a patch That’s a huge amount of money We currently run over 3,000 SAP systems at Google Cloud Every single one of them on the last round of patching went through this process, no issues Just do the math on the amount of money we saved our customers that run, and the amount of disruption we took out of the world– unique to Google Cloud And it’s a really, really big deal And it’s a really big deal now, in terms of what it can save you It’s a much bigger deal as a representation of the engineering work we’re doing to not just be another place to run SAP but to be a better place to run SAP Couple with that, let’s come back to the theme of do I really know what the future looks like? Do I really know what I need? So again, at this point, pretty much all everyone else in this marketplace is currently requiring you to contract the specific sizes of servers So you come in and say, look, I need– I think three years from now I’m going to need a 12-terabyte server Then you have to procure right now a 12-terabyte server So if in the meantime, you need six 2-terabyte servers to get to the 12-terabyte server, you’ve got to contract for all of that fundamentally There’s ways around that, but generally, you’re going to contract for more than you need And you’re locked into what you would give What Google Cloud does is different Because they’re all VM-based, because we engineer our own servers, you don’t have to commit to specific sizes You commit to a capacity And that’s what you’re looking at here At some point, I really do need to get a shot of the GUI And so the command line– but if your command line based, you’ll like this Basically it’s a command line where what we’re doing is we’re committing to 50,360 gigabytes of HANA memory inside Europe West 3 Once you’ve committed to that, we’ll bill you for it monthly as you consume it and use it, however, you can configure it however you want it to be configured So let’s say you need 12-terabytes as an example You can start with 12 ones You can move to six ones and three twos You can move to three fours You can configure it however you want to configure that as you go and as your project changes Never been done before But what it does is it unlocks you from that false challenge you’ve had in the past of having to know what size you’ll be three years, and you carrying all the risk Now you have the absolute flexibility to configure and move your commitments as you need them in order to deliver against a world that’s very hard to predict And again, that’s a huge risk that you take as a SAP customer that you no longer have to take We will carry that for you We’ll help you manage that risk Really, really big deal And same, we get a lot of conversation for instance, with retailers, as an example, where they have six, eight busy weeks in a year And so right now what they have to do is commit to the hardware they’re going to need for a single hour three years from now, whereas instead they can commit to what they need every day to run And then they can actually just buy the excess capacity that they need for those six weeks every year It’s a vastly more efficient way to run SAP It’s a vastly more cost effective way to run SAP And it unlocks huge potential Again, we talked about this earlier with the SAP Cloud Platform scenario But if you need a copy of production, you need a copy of QA in order to run a test, you don’t have to have a box laying around to do that you don’t run You just snap up a copy in 30 seconds, consume it from your commit, if you have availability If you don’t, you pay for it by the second It’s there It works It runs And then when you’re done with it, drop it again Flexibility has never been achieved before And it will change how SAP is run And however, it’s new to the market And it will take time for people to understand it But once they understand it– I think you see from METRO, customers are starting to understand that– it will make a huge difference It will change how SAP is run But that’s never enough As I said before, I was a customer This is not enough just to have hardware available on demand and everything else You got to be able to do more Generally, the upgrade to S4 is fine But generally you always want to have a better business outcome, not just a technical upgrade achieved So again, Google stepped in here in order to try and help you get to a better business outcome So just one example of that I’ll give you a couple, but one example of that is SAP HANA with BigQuery So March 20 of this year, we announced integration with HANA and BigQuery Really big deal So inside HANA– so for those of you who don’t know what BigQuery is, if your SAP customers, you’re not that aware of Google BigQuery is our data warehousing in the cloud solution, for want of a better answer Can handle petabyte levels of data at insane performance levels So you can take huge amounts of data and put it in BigQuery and do analysis So that’s great However you want to put it to a practical use case

So again, without resorting always to retail examples, right now, we have a very, very large retailer who is a customer of SAP with HANA and a customer of Google with BigQuery So the SAP data is streaming in live from the retail stores inside HANA All the other data that they have is sitting inside Google BigQuery What we released is the smart data access connector, technically what SAP released, is a smart data access connector for BigQuery When you log into SAP HANA, you can see the data model for SAP HANA and you can see the data model for Google BigQuery You can join both data sets together in a query, and execute a query directly in real time and get a real-time result back from both of those analysis tools So incredibly simple for the end user to work with But what it does is it unlocks tremendous opportunities here So one more example in the retail space But we will load cloud for marketing data into Google BigQuery for you So I know itemized data sets that you’re currently running advertising campaigns, [INAUDIBLE] Google BigQuery Inside SAP HANA, we have real-time inventory in the stores And at the simplest level, we can join both together and come back and say, hey, you know you are advertising product in this region that you don’t actually have available at the retail store? We think you should move to a different advertising strategy That’s a simple example As a more complicated example, we have a retailer recently who got on stage and talked about how we’ve done some incredibly cool work for them where we’re actually scanning fashion images in magazines and from other sources, determining colors and styles that they can see, that the image analysis tools can see in the magazine, and then going back to SAP and joining that data up into SAP and saying what do we have at the retail store that’s in this color palette, that’s in the style match because these are things that we believe people will come in and buy And that’s what we should promote That’s what we should maintain pricing on Huge opportunities here from being able to join the SAP tooling with the native cloud tooling that Google Cloud has, and the data sets that Google Cloud has in order to get to a far better result. And again, that’s our value here This isn’t just hey, here’s another place to run SAP in the cloud This is how do we deliver something much more to you? Or how we help you get much more value from your SAP asset and get to the business result and the business outcome you want to get to? Lastly, one of my favorite things, robotics So at TechEd Barcelona and TechEd Las Vegas, we had one of these things on the floor It’s a MiR Lifter Shifter So we don’t own MiR It’s a private company It’s independent of us, I should say But what we do is we attempt to make MiR better and better for our customers So contained within the MiR robot, there’s a communications package that talks back to Google Cloud So whereas right now you may want to automate your warehousing as example If you may want to automate part of your distribution network And you want to have robotics That’s hard By the time you pick a robotics provider, you buy the networking, you wire it all up, you try and integrate that back to SAP to get maximum efficiency, that is a huge consulting project And a lot of technical work with networking and everything else With a cloud package from Google, what it will do basically is MiR will automatically connect to Google Cloud And what we’re working on is basically that inside SAP S/4HANA, you register the robots that you have, they automatically connect across And then all you do is issue a goods movement inside S/4HANA And the robot will automatically dispatch itself off, grab the shelving or grab the package that you want, and bring it back to the person that you need at your packing station to do the packing That’s far beyond again, just running SAP on someone else’s servers This is really working towards the future We all understand that robotics are coming To be able to do it that easily and to be able to improve your business at that level of efficiency, is something that makes us radically different And again, that’s part of the work we’re doing with SAP to deliver something far beyond just the same SAP running somewhere else So that bit’s cool, right? Being able to run SAP or integrate your robotic package back to SAP and have it go grab things for you is cool Let’s go one more, however This is Google We don’t do think small So embedded in the robot is a lens package As it drives around your distribution center, it can read the shelves It can see what’s on them It can identify what’s there What you’re seeing as the graphic comes around here is it will identify boxes that are sitting on the shelf And then it will identify individual boxes And it can read barcodes and it can read text And it can tell you how much inventory there is in any given location And it can communicate that back to SAP So just picture that world You have a set of robots you drop in your distribution center They start to drive themselves around They map out the distribution center themselves They identify everything that’s inside that distribution center They communicate it back to SAP And from there forward, you have constantly running live updated inventory that’s sitting in your distribution center And that’s just one small use case But it’s an incredible jump forwards and just a representation of the sort of things

we’re working on with SAP to give you something that’s just vastly more than anyone’s attempted to do before or achieved at this level So thanks for your time That’s a very short summary If you weren’t aware, I can go on for a long time about this And we’ll happily come visit you and go on for a long time about all the things we’re doing differently That’s just a really small snapshot of what we’re doing Stay tuned for the live Q&A We’ll be back in less than a minute to answer some of the questions you’ve submitted Welcome back We’re still taking questions in the Q&A chat But we decided to take a couple out here just to answer them live Isabell rejoins me Thank you one more time So quickly, question number one How do you bridge from the work the team is doing with ABAP, as an example, into the cloud? ISABELL PETZELT: Right That is exactly a fundamental step of the journey for our customers from on premise applications into the cloud because they have huge investments in their on-prem systems that they’ve built over decades And now they want to have a move into the cloud at their own pace So that is why they can utilize SAP Cloud Platform with all of the latest technologies, but infusing those technologies into the core And for example, ABAP developers, which are a very special species And I know a lot of customers found that very funny when we announced that ABAP is now also available in the cloud They can transfer that skill set to develop on SAP Cloud Platform, utilizing those technologies, and help those developers really on their journey into the cloud, securing the investments, while at the same time of course, they have the choice to develop on Cloud Platform in any language So it’s a whole new world to recruit also and leverage different development skill sets in the cloud PAUL YOUNG: I’m choking back laughter here, because I started out as an ABAP developer So after the cameras are off, I’ll ask you what species exactly you think I am, because apparently I am a special species ISABELL PETZELT: Oops PAUL YOUNG: But there you go Yeah, me and all the other ABAP developers out there The second question that came in is we’re starting with dev and test Production is a bigger challenge What are you doing to make production deployments easier? I guess that one’s mine ISABELL PETZELT: I think so PAUL YOUNG: Good question I mean, a lot in this space we see customers who it’s relatively easy to pull your credit card and buy a little dev box and play with it And then move tests across [INAUDIBLE] scenario Production clearly is a much bigger challenge around security and networking and performance, and all the stuff that comes with it Key focus for us I think if all any of us get is dev and test, and customers don’t actually move production, we don’t make the final move A couple of key things I would highlight for you, one of which is automatic configuration Tremendous number of customers we talk to right now, who frankly have a production server, don’t have HA, don’t have DR, and run a huge risk In our world, that’s the sort of stuff that’s hard to configure As a DBA network engineer, you make you figure that three, four times in your lifetime It’s really easy to do wrong and then have huge problems So one of those examples really quickly is we have completely automated provisioning for the VM So when you provision your SAP system in, you don’t just say, hey, I want an SAP system and I want an HA and I want a DR And I wonder why I pull the network ports I’m going to manage all of the configuration on the replicas Completely automate provision Pick a primary site, an HA site, a DR site Completely automated provisioning, which allows us to get to, with confidence, get to roll out of production workloads in Google Cloud The other one I’ll add quickly as we announced at TechEd Vegas is we’re the first provider to have back end integration Incredibly cool if you’re backing up your SAP environments for production purposes, instead of what currently happens where you take a disk snapshot, and you have to copy it to some other storage And you’re maybe trying to replicate it at other places around the world where you’re responsible for copying files and hoping they don’t get corrupted and everything along the way Basically back end backs up a blob storage of your HANA instance You can replicate it multiple places around the world automatically using Google Cloud And then we can recover that back into a fully functioning copy of your system in the event of an outage or something happening typically in under an hour That sort of stuff allows us to try again– the comparison isn’t just can I run what I have in the cloud? The comparison is, wait If I have fully automated provisioning, I have HA, I have DR, I have back end integration I have all of that stuff, I have a provably better environment And so we invest at a lot of different levels We’ve talked about this already, from all the way up in the AI and ML to down at the street operation All of it has that purpose of making this the best place you could possibly run SAP, and dealing with real problems that real customers have Isabell, once again, thanks for the time I think we’re out of time here ISABELL PETZELT: Thank you, Paul PAUL YOUNG: I think we maybe past time based on the signals I get But anyway, look, that’s all for today Really appreciate you spending the time with us, and participating in the webinar Separately, just a couple of highlights for you Again, if you want more information about Google Clouds, cloud.google.com/sap

Intelligent Enterprise is at sap.com/intelligent-enterprise And then if you want more information on METRO, there’s a short link here that I’m not even going to try to read But you can click on and/or type in and learn more about METRO Really appreciate your time We’ll be back with another conversation about SAP soon And in the meantime, please tune in next Tuesday for the next Cloud OnAir session Thank you for watching [MUSIC PLAYING]