SAP HANA EFFECT Title: Episode 11 - HANA Drives Top and Bottom-line Value at Cisco (Duration: 18:26) Publish Date: March 30th, 2015 Description: Dileep Moturo shares how Cisco has used HANA to provide real-time sales reporting and drive top and bottom-line value. THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED. JEFF: Welcome to The HANA Effect. I’m your host, Jeff Word, from SAP. Each week, we bring listeners the real stories of how companies are taking advantage of real-time computing to transform their organizations and let them share the lessons they’ve learned along their journey. Welcome to another episode of The HANA Effect. I’m your host, Jeff Word from SAP, and I’m thrilled to be joined today by Dileep Moturo, who is a Program Manager in the Enterprise Data Services Group at Cisco Systems. Welcome, Dileep. DILEEP: Thanks, Jeff. Thanks for having me here. JEFF: Well, we’re certainly thrilled to have you guys here. Not only are you obviously a really great partner of SAP, but you’re also a wonderful customer. And we wanted to give you guys an opportunity to talk a HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 1 little bit about some of the great things you’ve been doing with HANA recently and we’ll go into a little bit about the future of where you guys are headed with your HANA roadmap. So, if you can, just give us a real quick introduction to yourself and your role and everybody should know what Cisco Systems does, but give us a quick overview of that too. DILEEP: Yeah. As you said, like everybody knows Cisco is a leader in networking and Cisco is also in the business of data center cloud collaboration and security. And coming to my organization and what we do for Cisco, so for everyone who follows John Chambers on the press or on his blogs or newsletters, he always talks about catching up with market transition. And the way a business can do that is by having insight into the data about their customers, about their own business and etcetera. In Cisco IT, that’s what we always try to partner with our business groups where we can provide them the platform capabilities to have insight into the data on Cisco business as well as our install base, our customers, our forecasting, and etcetera. So, my group EDS and services offer the platforms and the data integration and BI services for different business groups within Cisco and also to our partners, like our manufacturing or logistics partners, etc. And my role in EDS, I’m currently working on SAP HANA implementation HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 2 and operations and as well as also handle SAP business objects as well. JEFF: So, you’ve been involved with HANA for a couple of years now. Why don’t you give us a little idea of what the world was like for Cisco IT before HANA came on, some of the challenges you guys faced. DILEEP: Before we started the HANA journey in early 2012, the problem we had at hand was the sales forecasting process. For example, they used to depend on multiple disparate systems. Like we have a dashboarding system called System A, which provides a real-time feed on the bookings and also historical trends. And then we have System B, which provides data on forecasting and pipeline. And then, finally, System C where have multiple data attributes or dimensions which will be used to slice and dice this data and provide those insights to the leadership. JEFF: Now, it’s probably important to note here that all of these systems you’re talking about none of them have anything to do with SAP, right? DILEEP: Not so far, until we moved to HANA. JEFF: This is that horribly, terribly familiar scenario where people need data; they go to a bunch of different systems, copy and paste it into Excel, and build it in a hidden Access database underneath their desk and HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 3 then somehow generate a forecast or plan based on that very shaky data that they pulled in from a lot of different places, right? DILEEP: Exactly. So, the entire forecasting process for business they had not only forecasts on the business but they also have to focus on the quality of the data which they’re dependent on, the computer process. That will make the process painful and lengthy enough. And this is the business case which we tried to resolve by bringing SAP HANA on board. On top of this SAP HANA, we also brought in Xcelsius dashboards and 2x folder. We ended up creating an application called DICE, which is now being used as a single source of truth for forecasting process across the globe for Cisco sales operations. JEFF: That’s a really important point. So, by using HANA as that central collection point, that central source of truth, you haven’t replaced any of the source systems. But you’ve eliminated the need for the users to directly go and export things out of those systems. So, you got rid of that pain in the neck. But you also continued to give them that same flexibility and self-service aspects on a local basis that they can still have control over that data in a very flexible way, right? DILEEP: Yeah, this is always a pain for any BI application we develop for our business. It is not only with Cisco but HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 4 across the industry. Any BA application that we develop, we start with answering, for example, 10 set of questions. Once we download the dashboard or any kind of report etc. you will be able to successfully answer the ten set of questions, but once the business are able to get those 10 answers, they will have 11 questions. Because they want to improve from there; they want to get more insight on the data once they know answers to 10 questions. And now, for this eleventh question, they start to bring in the data into the Excel, so local databases and they start building story on top of that. And now what you’re able to bring in, the analysis, exploration, and the dashboarding all together in one single place and so that the business really do not have to go back to their Excels. JEFF: So, that sounds like it’s been a massive time saver and much lower TCO as far as managing that data. DILEEP: Exactly. Estimated that we are saving around 7,000 hours by using the DICE RTB dashboard—RTB stands for “from the business” dashboard for our sales operations guys. JEFF: 7,000 hours of activity saved by having the single source of truth in HANA. I’d imagine these are not cheap hours with cheap employees either; these are pretty senior people who have very high dollar amounts associated with the hours that they work, right? HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 5 DILEEP: These 7,000 hours is time from our AVPs, ODs, RMs. JEFF: That’s amazing. Can you give us a little idea of kind of what this data looks like? What’s the size and scope of the data you have in this new centralized HANA system? DILEEP: Today, we have around like 700 million rows of pipeline data; 400 million rows of movings data and 76 million of forecast data and going. This data as of maybe in December. But now, the good things is now for a user of this DICE application, just imagine he can slice and dice 700 million rows of the pipeline data with a response time of so what we’re benchmarking is two seconds. Then he can join this with multiple dimensions and he can do whatif analysis like building the forecast for the upcoming weeks. He can just plug in some numbers and see how that is going to change the forecasting for the upcoming quarters. And then, finally, he can see whether they will be able to meet the targets by adjusting these goals, etc. etc. So, all these things can be done on the fly at the same time using the historical data that is available by looking at the past trends. JEFF: Sounds like that could never have been done in the old world. DILEEP: The processes used to run for us and then you can just imagine the pain for him to get these answers before he HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 6 really can make a decision. So, now, weeks turn into hours, or the hours turn into seconds. JEFF: So, what’s been the reaction from your user base? DILEEP: Building a BI application is not a challenge but adoption to a BI application is a challenge for IT world because the users they’re used to the flexibility what they have using their own super Excels. They never want to give it up and come on board and embrace a new BI tool. JEFF: Giving up that local control over their own desktop and their own data to a centralized environment is also a big challenge. DILEEP: We saw the response in the other way. When we rolled out HANA, now the business is knocking on our door to get on more use cases on top of HANA. It’s putting the pressure more on us to scale up our data source and our systems to bring in more use cases on top of HANA. JEFF: So, you gave them one single source of the truth and solved their immediate problem, but as soon as they got a taste of what the world with HANA looked like, they started putting a whole lot of new requests on you for more expanded capabilities and things they could do with the data, right? HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 7 DILEEP: Right. So, just to quote there…we started with a two terabyte and then within like another year, we expanded to three terabyte. And now from three terabyte by the end of this April, we are going to 16 terabyte system. JEFF: Wow. That’s a huge leap. And is that tracking with the adoption of the users? DILEEP: Yeah. In terms of users, like for example we started in a couple of hundred and then now we have around like 3,000+ active users. I’m not talking users who just have access to the systems but users who are actively logging in and using the dashboards and explorer capabilities. And then by next one year we are expecting we will be going from 3,000 active users to 10,000 active users. And that’s where we are scaling up our infrastructure and our development capabilities to support this huge surge in the demand. JEFF: I’d be willing to bet just about everything that this is all running on Cisco UCS servers, correct? DILEEP: Yes. So, that’s the good thing. Cisco is a partner for SAP, the hardware partner. And we are building this on Cisco UCS and locally managing our data centers. HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 8 JEFF: So, yeah. Give us a quick idea of the landscape you guys are using to support this massively growing reporting engine for your company. DILEEP: So, we started off with UCS B440 systems, …and now we are more into UCS B440 systems with Ivy Bridge. The Ivy Bridge technology is also going to improve further performance of the systems. The good thing I will say is the scale up capability we are just expanding from two terabyte to eight terabyte and then once single instance you can imagine that there will be one single instance of 10 terabyte. So, sizing is never a challenge. To go back to my olden days when we were on pre-UCS database, way back to 2006 and 2007, it was always a challenge for IT to expand our infrastructure, but once we move to this world of UCS, expanding infrastructure the time cycle has changed from quarters to weeks now. JEFF: Well, that’s amazing. Can you give us an idea from the users’ perspective? Have they given you any surprising feedback on what they think about this system now that they have it in their hands? DILEEP: The feedback what we are getting from our execs is tremendous and fabulous feedback. They are calling for SVPs, or SVPs are calling out their business teams to start adopting this new application on HANA as soon as possible because they see a value that their organizations would HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 9 get, the folks in operations and all the levels will start using these new capabilities. JEFF: So, in addition to saving thousands and thousands of hours of very senior level employees’ level time, since they don’t have to look for the data, this is also because they have much better data and more quality data. This is actually helping significantly improve the forecasting and performance of the company. DILEEP: That is a surprise which we learned with learned with HANA is that in the olden days, always the challenge was with the performance of the Sequel or the performance of the query or the dashboard. Once we moved to HANA, it’s normal performance of the database. Now, our BI tools are becoming a bottleneck or the distance between the data center and the end user is becoming a bottleneck. For example, like the average response for a user in U.S. is 18 seconds, but whereas we’re looking for the same query, the average response for the user in Sydney or in Tokyo is around 45 second I believe. So, there’s a 30 second delay because of latency and now that is becoming a challenge for us to how do we handle it? So, that’s a different dimension to what we did not anticipate when we went live with this application. But good that now Cisco has a solution for that and, for example, one of our capabilities around using RightNow, so we’re using those technologies to answer these new problems. HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 10 JEFF: With HANA so, so fast, it really starts to shine a light on the other areas of your network infrastructure that might be slowing down response times. So, this sounds phenomenal. It sounds like you guys have had a huge, huge win with HANA for the sales reporting. Can you give us an idea of where you guys are headed and what you’re going to be doing in the future with HANA? DILEEP: So, we have now we’re onboarding use cases for manufacturing sites. We’re also adding more, like the install base for sales folks to orient for more opportunities on services and install base side. For example, we’re going to go back to the manufacturing example. We just rolled out an application, what we call internally as UOV visibility tool just one month back and that is going to expand massively in upcoming quarters. So, that universal visibility tool is going to provide visibility from a manufacturing standpoint on the order processing. It gives real time insight to our partners, the logistic and manufacturing partners so that they can fasten up the manufacturing and delivery process. We also bring up a new use case called PCAM—Pricing Analytical Capabilities. It’s going to help our pricing teams to get more insights into the cost and predictions, so that they can do better negotiations with our suppliers and optimize the cost. So, even our marketing folks, they’re coming on board. They’re doing a POC on how they can get more analytics HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 11 from the marketing data. It’s also opening up a new world of data exploration and data things kind of use cases because now you have a system which can answer your queries in seconds because the way how human mind works is if you get answers to your thoughts, you really make progress on your thought. And that’s how [?] analysts across different business groups are trying to get a hold on HANA so that they can bring more value out of the data what is lying around there. JEFF: So, what advice would you have to other companies that are just starting on their HANA journey of how to do similar things to what you’ve done and get that really first use case of massive success that then can be built on and expanded across the other aspects of the business? DILEEP: I would say some pain points of the journey so far, I would like to share with the new customers who are coming on board with HANA. So, we had some way back in 2012 like the release mode from HANA it wasn’t a ramp release mode, being agile development, pro development right? So, we used to get almost a revision for every three weeks if not two weeks. Initially we took a toll with that because we had more stability issues around the product. So, we had to go for frequent upgrade for the patches and that resulted in unplanned downtimes, which was kind of a toll on getting the confidence from the businesses on the system. But now, with the recent change in the release HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 12 process from SAP for HANA, I guess they’re still going with their quick releases and also the same time, we’re also getting those maintenance release patches, so data center patches for the customers or for the use cases where have more of operational dashboards and enterprise level applications. So, in the first one year, we took the hit and we had questions from business on the stability of the platform, but when we moved onto 2013, the strategy, they brought in more predictability in terms of their release revision standard. And that’s why we started upgrading only to data center release patches, so that answered most of the stability questions and we are being pretty much consistent in reliability system reliability, so which is good news. JEFF: That’s a common issue that we had early in the HANA roadmap was the rapid releases and it took a while for SAP and customers to get used to that rapid upgrade patch cycle. But, like you said, you guys were really early adopters of HANA and it’s gotten massively better and going forward, especially this year and next, you’re going to see I think from a lot of companies a new rhythm of dealing with HANA as it becomes more mission critical and much more spread throughout the enterprise. HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 13 DILEEP: And the other thing we also had some challenges was when we started this journey, we started with a pilot box, which was a single node instance. The production was a multi-node instance. So, we used to do all of our development and testing on the single node instance and deployed the code on production, which is a multi-node instance. So, fundamentally, there is a difference in the output between non-prod and prod and this has a limited our capability to identify issues on stage or non port instances before we hit those bugs on production. And that was one big lesson what we learned and we should call out for any newcomers who are planning to move to HANA is at least you should have a non-prod instance of similar architecture, so that you’re adoption will be much stable and you will be able to identify and resolve those issues up front in your non-prod before you really take a toll on your production system. JEFF: That’s really great advice. As the product itself, as the infrastructure around HANA matures, as the hardware evolves, like the Cisco UCS is evolving along with HANA to provide more capabilities. The maturity of companies and the way that they plan these out and get their production development, there’s a lot of best practices that companies can adopt. And I know, Cisco, you guys have quite a few capabilities to help companies scope that out and figure out what the best balance between production HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 14 development vs. testing and quality assurance systems should be. DILEEP: One good thing about development and Cisco being a hardware partner for SAP, Cisco also rolled out a service we call CMS Cloud Managed Services and we are using the same service internally to manage and support this HANA instance and what this service brings is the right knowledge of infrastructure UCS, data center and HANA together into one team, so that we can manage this better because the way how HANA insure that…and now that HANA is moving on cloud, in fact, the code is optimized in such a way that the HANA code is optimized together to get the best juice out of the hardware, or the network. So, there’s a huge necessity that we understand, unlike our traditional…systems, we understand how HANA works in conjunction to the hardware of infrastructure what it is deployed on. So, that’s where I think Cisco has brought up this service, CM service which we are also using internally is also a big success for us because it really helped us in all coming the initial challenges what we had and helped us in creating a end to end monitoring and managing capability from an operations on the platform operations and infrastructure standpoint. JEFF: Well, it sounds like you guys have done a phenomenal job and you’ve got a whole lot of new HANA projects in the pipeline that you’re going to need to deliver. So, we’ll let you get back to work HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 15 supporting the Cisco business. But I want to say thank you so much, Dileep, for joining us today. DILEEP: Absolutely, it’s my pleasure. JEFF: And we want to wish Cisco immense success with their HANA initiatives and we’re really pleased to have Cisco as a certified hardware partner and cloud partner to help deliver the same types of capabilities to SAP customers globally. So, with that, I want to say thank you, again, for joining us at The HANA Effect. For more information, you can check out hana.sap.com and you can always find out more information about how to subscribe to us on iTunes and SoundCloud. And with that, we’d like to say thanks again for listening and “Tschus.” HANA Effect Episode 12 – HANA Drives Top and Bottom-‐line Value at Cisco 16
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