>> Live from Las Vegas, it's theCUBE, covering Dell Technologies World 2019. Brought to you by Dell Technologies and it's ecosystem partners. >> Welcome to Vegas! Lisa Martin with John Furrier. You're watching us on theCUBE live. The end of Day One of our three days of coverage of Dell Technologies World. Can you hear the music? The party's already getting started. We have more content to bring you. Please welcome a couple of guests from DXE Technology, Kevin Johnston, Chief Sales and Revenue Officer, Cloud and Platform Service. Kevin, it's great to have you. >> Thank you very much. Glad to be here. >> Our pleasure. We've got Graham Stringer, Managing Director of Workplace and Mobility for DXE Americas. >> Thank you. Good to be here as well. >> Yeah, you waited just in time for the concert, guys! >> We did. >> Just in time. Here we go. >> All right, so, Kevin, let's go ahead and start with you. Give our audience and understanding of DXE. What you guys do, who you are, all that good stuff. >> Yeah, okay. That's great. So DXE was formed two years ago as a result of the merger of legacy HP Enterprise Services Business and CSC. DXE was formed really for the purpose of helping our large enterprise clients accelerate their digital transformation. So we're about a $22 billion IT services company, really aligned with our partners helping our clients transform digitally. >> And you guys were on the cloud early, too. There's a lot of devops going on. >> Yep. >> You guys had your hands in all the clouds. >> We have. >> What's your take on, here at Dell Technologies World, Microsoft's partnering with VMware? >> Yeah, so we would share a lot of beliefs with Dell Technology and VMware in particular, in that multi-cloud is a real thing. And we see multi-cloud, especially for the large enterprise clients, really being an answer for quite some number of years to come. We also believe that a large percentage of application portfolios will migrate to cloud. Whether it's private clouds or public clouds, and that there's a lot of work to be done to transform those applications to really take advantage of cloud native features. >> So last year's theme of Dell Technologies World was Make It Real, 'It' being digital transformation, security transformation, IT transformation, and workforce workplace automation. Graham, I'd love to get your perspectives on workplace mobility and some of the things that were announced this morning with Unified Workspace, Workspace ONE, and recognizing, hey, for our customers to transform digitally successfully, we've got to make sure that their are people are successful, and their people are highly distributed. What are some of the things that you heard this morning that are exciting, aligning with some of the trends that you're seeing in the workplace? >> Well the big trend that we're seeing is the role that HR is now playing in digital transformation of the workplace. If you go back two, three, four years, it was very IT centric. Conversations were predominantly with the CIO. We're now seeing 30, 40% of organizations or more engaging at the HR level. We did a recent project with one of the big retailers in the industry and right out of the bat, this chief HR officer was engaged right from the get-go. They want to know that their employees are going to experience work very differently. So that's one of the big trends we're seeing emerging. >> When did this shift happen? When was this going on? Past year, two years? Because this is a shift. >> I would say the shift has definitely happened the last couple of years. Millennials are having a huge impact. You're getting quite the cross-pollination of a lot of different generations. Millennials are now having an enormous impact. If you look at outlets like Glassdoor, millennials want to know when they go to an organization can I bring my own device? Am I going to have a great workplace experience? And you can't stick with a very traditional, legacy way of delivering IT where everything was shift left and you got to a point where everybody hated each other. >> That's a problem for productivity. >> Yes, a very big problem for productivity, absolutely. >> Talk about some of the challenges that customers have overcome with digital transformation, as it starts to become less of a buzz word and actually more of a reality and strategic imperative that has some visibility at the unit economics and value. >> Yeah, I think every large enterprise client we talk to has a digital transformation agenda of some sort and at some varying place along the path to trying to adopt a new business model or adapt to a different business process, so the challenges that we see with these clients in general is how do we scale? So I have legacy IT that won't disappear overnight and I have all the possibilities of digitally enabling or bringing new digital technologies that enable these processes or models. So this is a challenge: how to enable digital at scale where traditional and digital have to live together for some period of time. >> And it's not just a tech challenge, it's culture, too. How far has tech come because you've mentioned containers with legacy? That has been a great message to IT is I can put a container around it and hold onto it for a little while longer, I don't have to kill it, and make the changes to cloud-native. >> For the tech guys, there's been a lot of fun things and containers probably is the bridge for legacy apps into cloud for sure. For the rest of the folks, for the normal people, the way work gets done and the way to rethink how to do work in the mix of IT or technology into business is just different. >> Graham's point is beautiful because the expectation of the employee or the worker whether they're in the firm or outside the firm, outside in or inside out, however they look at it, is the new experience they want. So the expectations are changing. What's the biggest thing, we saw some stats on stage about remote working, three places, two places, I mean, hell, I'm always on the road. What is some of the expectations that you're seeing? Obviously millennials and some of the older folks. >> They want to see IT delivered in the way they want to receive it. That's one of the biggest trends we're seeing. So for Millennials, my son's kind of in that age category, right, they love to text. To pick up a phone for a younger generation is a little bit foreign. You go and deal with baby boomers, they want to be dealt with in a much different manner. So you've got that whole change, and then you've got the whole notion now of work is changing; where do I work, the ability to basically work 24/7, wherever I want, however I want, using whatever device that I want. And that of course is now creating a whole new set of challenges for IT, particularly around security. >> But employee experience is absolutely fundamental to a business' success; their ability to delight costumers, their ability to deliver outcome, so it's really pretty core. Talk to us about those conversations that you're having with customers. Are they understanding how significant that employee experience is to bottom line business outcomes differentiation? >> Very much so. We're working right now with a large manufacturing firm and they're doing not just an inside out, but outside in, so they're actually coming to watch. It's part of a workplace strategy to look at it from the outside as well. In other words, how can our client take innovation to their suppliers, their customers, to demonstrate that they understand it? So that's extremely exciting when we see that they're not just focused on their own employees and the experience germane to them. >> One thing I might add is that maybe less so from a user experience per say, but the individuals as an employee. So the shift to digital and the skill shift that's required to go with that is really probably the most monumental change that all of us technology companies and the business part of our large enterprise clients is dealing with. Whether it's a skills gap or whether it's a culture gap, this idea of just simply waterfall to agile and the way to think about that or silo versus end-to-end as just simple ways to think differently about how to go faster. So the experience, how you recruit, whose going to make it, who can be trained, and then where you need to be able to source the new talent from as well. >> I totally agree with you. We do hundreds of shows a year, this is our tenth year doing theCUBE, that is the number one things that we hear over and over again from practitioners and customers and from people working. It's not the check, you can always get a check solution, it's the cultural and the skills gap. Both are huge problems. >> And this is part of the digital at scale point. So we'll hire something in the neighborhood of six to eight thousand digital skills people. We're just about to close on active position of Luxoft, an agile devops digital company. We'll bring another 13,000 in. But if you think about the normal large enterprise and what you need to do to be able to have the university networks and to be able to really source that scale in order to effect the transformations that business need to make to stay competitive. >> And the other point, the engagements have changed too. I'm sure you guys have seen your end but every IT or CIO we talk to says, "I outsourced everything decades ago and now I've got a couple guys running the show. Now I need to have a hundred x more people coding and building core competency." That's still going to need to engage people in the channel or our service providers but they need to build core talent in house. It's swinging back and they don't know what to do. (laughter) Is that why they call you guys? Is that how you guys get involved? >> We'll help train. We'll help clients think through what does an IT or business organization need to look like profile wise, skill wise, operating model wise, and in many cases it's I have my digital model but I still have my traditional model that needs to coexist with it and then here's where the opportunities are for people to develop career paths and progress. >> Kevin, talk about the sweet spot of your engagements that you're doing right now. Where's the heart of your business? Is it someone whose really hurting, needs an aspirin, they've got a headache, is it a problem? Is it an opportunity? Is it a growth issue? Where do you see the spectrum of your engagements? >> We kind of find clients in one of three spots normally. "Hey, I know I need to do something but I'm not sure what it is, can you help me figure out to get started?" So more design thinking, problem solving. We have other clients at the other end of the spectrum who are, "Hey, I've got this figured out. I need a partner to help me execute it's scale. And I know the model that I want to do, I know the business reason for doing it." And then we have a lot of folks that are in the middle, which is, "I've started, I've got a few hundred AWS accounts. I got private clouds sitting idle. Someone help me." Or, "I've got security issues, compliance issues." >> So they're in the middle of the journey and they just need a little reboot or a kickstart. >> They need help scaling. >> They ran out of gas. (laughter) >> And how are you working with Dell Technologies and their companies, Dell EMC, if they were to do that? >> The partnership with Dell Technologies, VMware, are really center to how we go to market. DXE is one of the top few partners largest in the ecosystem. The breadth of our portfolios are extremely complementary, whether it's things like device as a service or multi- and hybrid cloud, or pivotal and devops. So the breadth of the portfolios max up really well which makes it the impact potential for our clients even more important. Dell Technology broadly is really one of the few partners that we're shoulder-to-shoulder going with to the market as well. >> Awesome. Great stuff. What's the biggest learnings you guys can share with the audience that you gathered over your multiple engagements holistically across your client base? That's learnings, that could be a best practice, or just either some scar tissue or revelations or epiphanies. Share some experience here. >> I think one of the big learnings we're seeing is the shift now to very much business outcome driven decision making. If you go back to your point about the big ITO outsourcing days, that was all about just strictly driving cost out, and that's why you got to that point where everybody was left hating each other. Now it's about business outcomes. You've got the impact of Millennials, you've got organizations wanting to create a new and better experience for the employees and they're coming to us to say, "How do we accomplish that?" We've got an organization we're working with right now, they're trying to elevate themselves to be one of the top 50 best places to work for in the US. How do they arrive at that? For them, that's their barometer and so it's not about driving costs out, it's really achieving that overall experience and enhance a business outcome. >> So they're betting on productivity gains from morale and happy workers. >> Right. And also they're recognizing the downstream impact on their customers, productivity, the level of employee engagement, right? I mean those are the things that the organization knows that if they hit on those, I mean the sky's the limit. >> Right. Anything on your end? Learnings? >> Yeah, I would say the "don't understand the talent" challenge. The ability to pivot from here's the way we all know and are familiar with doing things to the new way. There will be a big talent challenge. The other thing is the operating model from an IT standpoint. Traditional IT operating model operates at a particular speed, cloud operates at a different speed. And the tools, the talents, the skills that go with that are just completely different. And then I think the last thing is just it seems maybe surprising, but compliance at scale and at speed. So security and regulatory compliance, we see that falling over all the time. >> Great practice you guys. I've been following you guys for many years, you've got a great organization, lots of smart people there we've interviewed many times. My final question is a tech question: what technologies do you guys like that you think is ready for prime time or almost ready for prime time worth having customer keep focusing on and which one's a little more over hyped and out of reach at the moment? >> I'll take a stab at that. If you look at today's Wall Street Journal, Deloitte talks to I believe the figure they quoted was roughly 25% of organizations are doing AI in some form already, PoC or at least are committing to it in terms of strategy. We're seeing that inside DXE as well. AI is now being incorporated into our workplace offerings. The potential for that is enormous, it's real. The technology in the last couple of years, particularly with cloud computing, has really enabled it. When you look at platforms like Watson, these are capabilities that just weren't there 10, 12, 15 years ago, and now the impact that it can have on the workplace, help lines, chats, chatbots, and so forth, is enormous and it's real. Five, 10 years ago it definitely was not in it's maturity. >> Okay, over hyped. >> What's over hyped? I don't know, what comes to mind for you? >> Or maybe I'll rephrase it differently: not yet ready for prime time, but looks good on the fairway but not yet known. . . >> I think for me through workplace, IoT has still got a ways to go. AI and analytics is definitely there. IoT I would say is a little bit behind. I'm sure that Kevin has cloud and platform thoughts. >> Yeah, I would say from an over hyped standpoint, we've seen a lot of companies, large enterprises, legacy application portfolios think they're going to refactor all their applications and cloud native everything. So it feels that people are now kind of getting past that point, but we still see that idea a lot. I think the opportunity that is really in front of us, and you kind of called out, containers. Legacy applications into cloud feel like a remaining frontier for the large enterprise. We think containers and the idea of autonomous, continue optimization, financial performance, is a way to make apps run in cloud financially and performance wise in a way that we don't see a lot of companies fully solving for that yet. >> Awesome. >> A lot of work to do, a lot of opportunity. Kevin, Graham, thank you so much for sharing some of your time and thoughts and insights with John and me on theCUBE this afternoon. >> Very good. >> Thank you. >> We appreciate it. For John Furrier, I'm Lisa Martin, and you've been watching theCUBE live from Vegas. Day One of our coverage of Dell Technologies World is now in the books. Thanks for watching. (upbeat techno music)

(electronic dance music) (Intel Jingle) (ethereal electronic dance music) ♪ Okay ♪ (upbeat techno dance music) ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Yeah everybody get loose yeah ♪ ♪ Yeah ♪ ♪ Ye-yeah yeah ♪ ♪ Yeah yeah ♪ ♪ Everybody everybody yeah ♪ ♪ Whoo whoo ♪ ♪ Whoo whoo ♪ ♪ Whoo yeah ♪ ♪ Everybody get loose whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ >> As a courtesy to the presenters and those around you, please silence all mobile devices, thank you. (electronic dance music) ♪ Everybody get loose ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ (upbeat salsa music) ♪ Ha ha ha ♪ ♪ Ah ♪ ♪ Ha ha ha ♪ ♪ So happy ♪ ♪ Whoo whoo ♪ (female singer scatting) >> Ladies and gentlemen, please take your seats. Our program will begin momentarily. ♪ Hey ♪ (female singer scatting) (male singer scatting) ♪ Hey ♪ ♪ Whoo ♪ (female singer scatting) (electronic dance music) ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ Red don't go ♪ ♪ All hands are in don't go ♪ ♪ In don't go ♪ ♪ Oh red go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are red don't go ♪ ♪ All hands are in red red red red ♪ ♪ All hands are in don't go ♪ ♪ All hands are in red go ♪ >> Ladies and gentlemen, there are available seats. Towards house left, house left there are available seats. If you are please standing, we ask that you please take an available seat. We will begin momentarily, thank you. ♪ Let go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ (upbeat electronic dance music) ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ I live ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Hey ♪ ♪ Yeah ♪ ♪ Oh ♪ ♪ Ah ♪ ♪ Ah ah ah ah ah ah ♪ ♪ Just make me ♪ ♪ Just make me ♪ (bouncy techno music) >> Ladies and gentlemen, once again we ask that you please take the available seats to your left, house left, there are many available seats. If you are standing, please make your way there. The program will begin momentarily, thank you. Good morning! This is Lenovo Transform 2.0! (keyboard clicks) >> Progress. Why do we always talk about it in the future? When will it finally get here? We don't progress when it's ready for us. We need it when we're ready, and we're ready now. Our hospitals and their patients need it now, our businesses and their customers need it now, our cities and their citizens need it now. To deliver intelligent transformation, we need to build it into the products and solutions we make every day. At Lenovo, we're designing the systems to fight disease, power businesses, and help you reach more customers, end-to-end security solutions to protect your data and your companies reputation. We're making IT departments more agile and cost efficient. We're revolutionizing how kids learn with VR. We're designing smart devices and software that transform the way you collaborate, because technology shouldn't just power industries, it should power people. While everybody else is talking about tomorrow, we'll keep building today, because the progress we need can't wait for the future. >> Please welcome to the stage Lenovo's Rod Lappen! (electronic dance music) (audience applauding) >> Alright. Good morning everyone! >> Good morning. >> Ooh, that was pretty good actually, I'll give it one more shot. Good morning everyone! >> Good morning! >> Oh, that's much better! Hope everyone's had a great morning. Welcome very much to the second Lenovo Transform event here in New York. I think when I got up just now on the steps I realized there's probably one thing in common all of us have in this room including myself which is, absolutely no one has a clue what I'm going to say today. So, I'm hoping very much that we get through this thing very quickly and crisply. I love this town, love New York, and you're going to hear us talk a little bit about New York as we get through here, but just before we get started I'm going to ask anyone who's standing up the back, there are plenty of seats down here, and down here on the right hand side, I think he called it house left is the professional way of calling it, but these steps to my right, your left, get up here, let's get you all seated down so that you can actually sit down during the keynote session for us. Last year we had our very first Lenovo Transform. We had about 400 people. It was here in New York, fantastic event, today, over 1,000 people. We have over 62 different technology demonstrations and about 15 breakout sessions, which I'll talk you through a little bit later on as well, so it's a much bigger event. Next year we're definitely going to be shooting for over 2,000 people as Lenovo really transforms and starts to address a lot of the technology that our commercial customers are really looking for. We were however hampered last year by a storm, I don't know if those of you who were with us last year will remember, we had a storm on the evening before Transform last year in New York, and obviously the day that it actually occurred, and we had lots of logistics. Our media people from AMIA were coming in. They took the, the plane was circling around New York for a long time, and Kamran Amini, our General Manager of our Data Center Infrastructure Group, probably one of our largest groups in the Lenovo DCG business, took 17 hours to get from Raleigh, North Carolina to New York, 17 hours, I think it takes seven or eight hours to drive. Took him 17 hours by plane to get here. And then of course this year, we have Florence. And so, obviously the hurricane Florence down there in the Carolinas right now, we tried to help, but still Kamran has made it today. Unfortunately, very tragically, we were hoping he wouldn't, but he's here today to do a big presentation a little bit later on as well. However, I do want to say, obviously, Florence is a very serious tragedy and we have to take it very serious. We got, our headquarters is in Raleigh, North Carolina. While it looks like the hurricane is just missing it's heading a little bit southeast, all of our thoughts and prayers and well wishes are obviously with everyone in the Carolinas on behalf of Lenovo, everyone at our headquarters, everyone throughout the Carolinas, we want to make sure everyone stays safe and out of harm's way. We have a great mixture today in the crowd of all customers, partners, industry analysts, media, as well as our financial analysts from all around the world. There's over 30 countries represented here and people who are here to listen to both YY, Kirk, and Christian Teismann speak today. And so, it's going to be a really really exciting day, and I really appreciate everyone coming in from all around the world. So, a big round of applause for everyone whose come in. (audience applauding) We have a great agenda for you today, and it starts obviously a very consistent format which worked very successful for us last year, and that's obviously our keynote. You'll hear from YY, our CEO, talk a little bit about the vision he has in the industry and how he sees Lenovo's turned the corner and really driving some great strategy to address our customer's needs. Kirk Skaugen, our Executive Vice President of DCG, will be up talking about how we've transformed the DCG business and once again are hitting record growth ratios for our DCG business. And then you'll hear from Christian Teismann, our SVP and General Manager for our commercial business, get up and talk about everything that's going on in our IDG business. There's really exciting stuff going on there and obviously ThinkPad being the cornerstone of that I'm sure he's going to talk to us about a couple surprises in that space as well. Then we've got some great breakout sessions, I mentioned before, 15 breakout sessions, so while this keynote section goes until about 11:30, once we get through that, please go over and explore, and have a look at all of the breakout sessions. We have all of our subject matter experts from both our PC, NBG, and our DCG businesses out to showcase what we're doing as an organization to better address your needs. And then obviously we have the technology pieces that I've also spoken about, 62 different technology displays there arranged from everything IoT, 5G, NFV, everything that's really cool and hot in the industry right now is going to be on display up there, and I really encourage all of you to get up there. So, I'm going to have a quick video to show you from some of the setup yesterday on a couple of the 62 technology displays we've got on up on stage. Okay let's go, so we've got a demonstrations to show you today, one of the greats one here is the one we've done with NC State, a high-performance computing artificial intelligence demonstration of fresh produce. It's about modeling the population growth of the planet, and how we're going to supply water and food as we go forward. Whoo. Oh, that is not an apple. Okay. (woman laughs) Second one over here is really, hey Jonas, how are you? Is really around virtual reality, and how we look at one of the most amazing sites we've got, as an install on our high-performance computing practice here globally. And you can see, obviously, that this is the Barcelona supercomputer, and, where else in New York can you get access to being able to see something like that so easily? Only here at Lenovo Transform. Whoo, okay. (audience applauding) So there's two examples of some of the technology. We're really encouraging everyone in the room after the keynote to flow into that space and really get engaged, and interact with a lot of the technology we've got up there. It seems I need to also do something about my fashion, I've just realized I've worn a vest two days in a row, so I've got to work on that as well. Alright so listen, the last thing on the agenda, we've gone through the breakout sessions and the demo, tonight at four o'clock, there's about 400 of you registered to be on the cruise boat with us, the doors will open behind me. the boat is literally at the pier right behind us. You need to make sure you're on the boat for 4:00 p.m. this evening. Outside of that, I want everyone to have a great time today, really enjoy the experience, make it as experiential as you possibly can, get out there and really get in and touch the technology. There's some really cool AI displays up there for us all to get involved in as well. So ladies and gentlemen, without further adieu, it gives me great pleasure to introduce to you a lover of tennis, as some of you would've heard last year at Lenovo Transform, as well as a lover of technology, Lenovo, and of course, New York City. I am obviously very pleasured to introduce to you Yang Yuanqing, our CEO, as we like to call him, YY. (audience applauding) (upbeat funky music) >> Good morning, everyone. >> Good morning. >> Thank you Rod for that introduction. Welcome to New York City. So, this is the second year in a row we host our Transform event here, because New York is indeed one of the most transformative cities in the world. Last year on this stage, I spoke about the Fourth Industrial Revolution, and our vision around the intelligent transformation, how it would fundamentally change the nature of business and the customer relationships. And why preparing for this transformation is the key for the future of our company. And in the last year I can assure you, we were being very busy doing just that, from searching and bringing global talents around the world to the way we think about every product and every investment we make. I was here in New York just a month ago to announce our fiscal year Q1 earnings, which was a good day for us. I think now the world believes it when we say Lenovo has truly turned the corner to a new phase of growth and a new phase of acceleration in executing the transformation strategy. That's clear to me is that the last few years of a purposeful disruption at Lenovo have led us to a point where we can now claim leadership of the coming intelligent transformation. People often asked me, what is the intelligent transformation? I was saying this way. This is the unlimited potential of the Fourth Industrial Revolution driven by artificial intelligence being realized, ordering a pizza through our speaker, and locking the door with a look, letting your car drive itself back to your home. This indeed reflect the power of AI, but it just the surface of it. The true impact of AI will not only make our homes smarter and offices more efficient, but we are also completely transformed every value chip in every industry. However, to realize these amazing possibilities, we will need a structure built around the key components, and one that touches every part of all our lives. First of all, explosions in new technology always lead to new structures. This has happened many times before. In the early 20th century, thousands of companies provided a telephone service. City streets across the US looked like this, and now bundles of a microscopic fiber running from city to city bring the world closer together. Here's what a driving was like in the US, up until 1950s. Good luck finding your way. (audience laughs) And today, millions of vehicles are organized and routed daily, making the world more efficient. Structure is vital, from fiber cables and the interstate highways, to our cells bounded together to create humans. Thankfully the structure for intelligent transformation has emerged, and it is just as revolutionary. What does this new structure look like? We believe there are three key building blocks, data, computing power, and algorithms. Ever wondered what is it behind intelligent transformation? What is fueling this miracle of human possibility? Data. As the Internet becomes ubiquitous, not only PCs, mobile phones, have come online and been generating data. Today it is the cameras in this room, the climate controls in our offices, or the smart displays in our kitchens at home. The number of smart devices worldwide will reach over 20 billion in 2020, more than double the number in 2017. These devices and the sensors are connected and generating massive amount of data. By 2020, the amount of data generated will be 57 times more than all the grains of sand on Earth. This data will not only make devices smarter, but will also fuel the intelligence of our homes, offices, and entire industries. Then we need engines to turn the fuel into power, and the engine is actually the computing power. Last but not least the advanced algorithms combined with Big Data technology and industry know how will form vertical industrial intelligence and produce valuable insights for every value chain in every industry. When these three building blocks all come together, it will change the world. At Lenovo, we have each of these elements of intelligent transformations in a single place. We have built our business around the new structure of intelligent transformation, especially with mobile and the data center now firmly part of our business. I'm often asked why did you acquire these businesses? Why has a Lenovo gone into so many fields? People ask the same questions of the companies that become the leaders of the information technology revolution, or the third industrial transformation. They were the companies that saw the future and what the future required, and I believe Lenovo is the company today. From largest portfolio of devices in the world, leadership in the data center field, to the algorithm-powered intelligent vertical solutions, and not to mention the strong partnership Lenovo has built over decades. We are the only company that can unify all these essential assets and deliver end to end solutions. Let's look at each part. We now understand the important importance data plays as fuel in intelligent transformation. Hundreds of billions of devices and smart IoTs in the world are generating better and powering the intelligence. Who makes these devices in large volume and variety? Who puts these devices into people's home, offices, manufacturing lines, and in their hands? Lenovo definitely has the front row seats here. We are number one in PCs and tablets. We also produces smart phones, smart speakers, smart displays. AR/VR headsets, as well as commercial IoTs. All of these smart devices, or smart IoTs are linked to each other and to the cloud. In fact, we have more than 20 manufacturing facilities in China, US, Brazil, Japan, India, Mexico, Germany, and more, producing various devices around the clock. We actually make four devices every second, and 37 motherboards every minute. So, this factory located in my hometown, Hu-fi, China, is actually the largest laptop factory in the world, with more than three million square feet. So, this is as big as 42 soccer fields. Our scale and the larger portfolio of devices gives us access to massive amount of data, which very few companies can say. So, why is the ability to scale so critical? Let's look again at our example from before. The early days of telephone, dozens of service providers but only a few companies could survive consolidation and become the leader. The same was true for the third Industrial Revolution. Only a few companies could scale, only a few could survive to lead. Now the building blocks of the next revolution are locking into place. The (mumbles) will go to those who can operate at the scale. So, who could foresee the total integration of cloud, network, and the device, need to deliver intelligent transformation. Lenovo is that company. We are ready to scale. Next, our computing power. Computing power is provided in two ways. On one hand, the modern supercomputers are providing the brute force to quickly analyze the massive data like never before. On the other hand the cloud computing data centers with the server storage networking capabilities, and any computing IoT's, gateways, and miniservers are making computing available everywhere. Did you know, Lenovo is number one provider of super computers worldwide? 170 of the top 500 supercomputers, run on Lenovo. We hold 89 World Records in key workloads. We are number one in x86 server reliability for five years running, according to ITIC. a respected provider of industry research. We are also the fastest growing provider of hyperscale public cloud, hyper-converged and aggressively growing in edge computing. cur-ges target, we are expand on this point soon. And finally to run these individual nodes into our symphony, we must transform the data and utilize the computing power with advanced algorithms. Manufactured, industry maintenance, healthcare, education, retail, and more, so many industries are on the edge of intelligent transformation to improve efficiency and provide the better products and services. We are creating advanced algorithms and the big data tools combined with industry know-how to provide intelligent vertical solutions for several industries. In fact, we studied at Lenovo first. Our IT and research teams partnered with our global supply chain to develop an AI that improved our demand forecasting accuracy. Beyond managing our own supply chain we have offered our deep learning supply focused solution to other manufacturing companies to improve their efficiency. In the best case, we have improved the demand, focused the accuracy by 30 points to nearly 90 percent, for Baosteel, the largest of steel manufacturer in China, covering the world as well. Led by Lenovo research, we launched the industry-leading commercial ready AR headset, DaystAR, partnering with companies like the ones in this room. This technology is being used to revolutionize the way companies service utility, and even our jet engines. Using our workstations, servers, and award-winning imaging processing algorithms, we have partnered with hospitals to process complex CT scan data in minutes. So, this enable the doctors to more successfully detect the tumors, and it increases the success rate of cancer diagnosis all around the world. We are also piloting our smart IoT driven warehouse solution with one of the world's largest retail companies to greatly improve the efficiency. So, the opportunities are endless. This is where Lenovo will truly shine. When we combine the industry know-how of our customers with our end-to-end technology offerings, our intelligent vertical solutions like this are growing, which Kirk and Christian will share more. Now, what will drive this transformation even faster? The speed at which our networks operate, specifically 5G. You may know that Lenovo just launched the first-ever 5G smartphone, our Moto Z3, with the new 5G Moto model. We are partnering with multiple major network providers like Verizon, China Mobile. With the 5G model scheduled to ship early next year, we will be the first company to provide a 5G mobile experience to any users, customers. This is amazing innovation. You don't have to buy a new phone, just the 5G clip on. What can I say, except wow. (audience laughs) 5G is 10 times the fast faster than 4G. Its download speed will transform how people engage with the world, driverless car, new types of smart wearables, gaming, home security, industrial intelligence, all will be transformed. Finally, accelerating with partners, as ready as we are at Lenovo, we need partners to unlock our full potential, partners here to create with us the edge of the intelligent transformation. The opportunities of intelligent transformation are too profound, the scale is too vast. No company can drive it alone fully. We are eager to collaborate with all partners that can help bring our vision to life. We are dedicated to open partnerships, dedicated to cross-border collaboration, unify the standards, share the advantage, and market the synergies. We partner with the biggest names in the industry, Intel, Microsoft, AMD, Qualcomm, Google, Amazon, and Disney. We also find and partner with the smaller innovators as well. We're building the ultimate partner experience, open, shared, collaborative, diverse. So, everything is in place for intelligent transformation on a global scale. Smart devices are everywhere, the infrastructure is in place, networks are accelerating, and the industries demand to be more intelligent, and Lenovo is at the center of it all. We are helping to drive change with the hundreds of companies, companies just like yours, every day. We are your partner for intelligent transformation. Transformation never stops. This is what you will hear from Kirk, including details about Lenovo NetApp global partnership we just announced this morning. We've made the investments in every single aspect of the technology. We have the end-to-end resources to meet your end-to-end needs. As you attend the breakout session this afternoon, I hope you see for yourself how much Lenovo has transformed as a company this past year, and how we truly are delivering a future of intelligent transformation. Now, let me invite to the stage Kirk Skaugen, our president of Data Center growth to tell you about the exciting transformation happening in the global Data C enter market. Thank you. (audience applauding) (upbeat music) >> Well, good morning. >> Good morning. >> Good morning! >> Good morning! >> Excellent, well, I'm pleased to be here this morning to talk about how we're transforming the Data Center and taking you as our customers through your own intelligent transformation journey. Last year I stood up here at Transform 1.0, and we were proud to announce the largest Data Center portfolio in Lenovo's history, so I thought I'd start today and talk about the portfolio and the progress that we've made over the last year, and the strategies that we have going forward in phase 2.0 of Lenovo's transformation to be one of the largest data center companies in the world. We had an audacious vision that we talked about last year, and that is to be the most trusted data center provider in the world, empowering customers through the new IT, intelligent transformation. And now as the world's largest supercomputer provider, giving something back to humanity, is very important this week with the hurricanes now hitting North Carolina's coast, but we take this most trusted aspect very seriously, whether it's delivering the highest quality products on time to you as customers with the highest levels of security, or whether it's how we partner with our channel partners and our suppliers each and every day. You know we're in a unique world where we're going from hundreds of millions of PCs, and then over the next 25 years to hundred billions of connected devices, so each and every one of you is going through this intelligent transformation journey, and in many aspects were very early in that cycle. And we're going to talk today about our role as the largest supercomputer provider, and how we're solving humanity's greatest challenges. Last year we talked about two special milestones, the 25th anniversary of ThinkPad, but also the 25th anniversary of Lenovo with our IBM heritage in x86 computing. I joined the workforce in 1992 out of college, and the IBM first personal server was launching at the same time with an OS2 operating system and a free mouse when you bought the server as a marketing campaign. (audience laughing) But what I want to be very clear today, is that the innovation engine is alive and well at Lenovo, and it's really built on the culture that we're building as a company. All of these awards at the bottom are things that we earned over the last year at Lenovo. As a Fortune now 240 company, larger than companies like Nike, or AMEX, or Coca-Cola. The one I'm probably most proud of is Forbes first list of the top 2,000 globally regarded companies. This was something where 15,000 respondents in 60 countries voted based on ethics, trustworthiness, social conduct, company as an employer, and the overall company performance, and Lenovo was ranked number 27 of 2000 companies by our peer group, but we also now one of-- (audience applauding) But we also got a perfect score in the LGBTQ Equality Index, exemplifying the diversity internally. We're number 82 in the top working companies for mothers, top working companies for fathers, top 100 companies for sustainability. If you saw that factory, it's filled with solar panels on the top of that. And now again, one of the top global brands in the world. So, innovation is built on a customer foundation of trust. We also said last year that we'd be crossing an amazing milestone. So we did, over the last 12 months ship our 20 millionth x86 server. So, thank you very much to our customers for this milestone. (audience applauding) So, let me recap some of the transformation elements that have happened over the last year. Last year I talked about a lot of brand confusion, because we had the ThinkServer brand from the legacy Lenovo, the System x, from IBM, we had acquired a number of networking companies, like BLADE Network Technologies, et cetera, et cetera. Over the last year we've been ramping based on two brand structures, ThinkAgile for next generation IT, and all of our software-defined infrastructure products and ThinkSystem as the world's highest performance, highest reliable x86 server brand, but for servers, for storage, and for networking. We have transformed every single aspect of the customer experience. A year and a half ago, we had four different global channel programs around the world. Typically we're about twice the mix to our channel partners of any of our competitors, so this was really important to fix. We now have a single global Channel program, and have technically certified over 11,000 partners to be technical experts on our product line to deliver better solutions to our customer base. Gardner recently recognized Lenovo as the 26th ranked supply chain in the world. And, that's a pretty big honor, when you're up there with Amazon and Walmart and others, but in tech, we now are in the top five supply chains. You saw the factory network from YY, and today we'll be talking about product shipping in more than 160 countries, and I know there's people here that I've met already this morning, from India, from South Africa, from Brazil and China. We announced new Premier Support services, enabling you to go directly to local language support in nine languages in 49 countries in the world, going directly to a native speaker level three support engineer. And today we have more than 10,000 support specialists supporting our products in over 160 countries. We've delivered three times the number of engineered solutions to deliver a solutions orientation, whether it's on HANA, or SQL Server, or Oracle, et cetera, and we've completely reengaged our system integrator channel. Last year we had the CIO of DXE on stage, and here we're talking about more than 175 percent growth through our system integrator channel in the last year alone as we've brought that back and really built strong relationships there. So, thank you very much for amazing work here on the customer experience. (audience applauding) We also transformed our leadership. We thought it was extremely important with a focus on diversity, to have diverse talent from the legacy IBM, the legacy Lenovo, but also outside the industry. We made about 19 executive changes in the DCG group. This is the most senior leadership team within DCG, all which are newly on board, either from our outside competitors mainly over the last year. About 50 percent of our executives were now hired internally, 50 percent externally, and 31 percent of those new executives are diverse, representing the diversity of our global customer base and gender. So welcome, and most of them you're going to be able to meet over here in the breakout sessions later today. (audience applauding) But some things haven't changed, they're just keeping getting better within Lenovo. So, last year I got up and said we were committed with the new ThinkSystem brand to be a world performance leader. You're going to see that we're sponsoring Ducati for MotoGP. You saw the Ferrari out there with Formula One. That's not a surprise. We want the Lenovo ThinkSystem and ThinkAgile brands to be synonymous with world record performance. So in the last year we've gone from 39 to 89 world records, and partners like Intel would tell you, we now have four times the number of world record workloads on Lenovo hardware than any other server company on the planet today, with more than 89 world records across HPC, Java, database, transaction processing, et cetera. And we're proud to have just brought on Doug Fisher from Intel Corporation who had about 10-17,000 people on any given year working for him in workload optimizations across all of our software. It's just another testament to the leadership team we're bringing in to keep focusing on world-class performance software and solutions. We also per ITIC, are the number one now in x86 server reliability five years running. So, this is a survey where CIOs are in a blind survey asked to submit their reliability of their uptime on their x86 server equipment over the last 365 days. And you can see from 2016 to 2017 the downtime, there was over four hours as noted by the 750 CXOs in more than 20 countries is about one percent for the Lenovo products, and is getting worse generation from generation as we went from Broadwell to Pearlie. So we're taking our reliability, which was really paramount in the IBM System X heritage, and ensuring that we don't just recognize high performance but we recognize the highest level of reliability for mission-critical workloads. And what that translates into is that we at once again have been ranked number one in customer satisfaction from you our customers in 19 of 22 attributes, in North America in 18 of 22. This is a survey by TVR across hundreds of customers of us and our top competitors. This is the ninth consecutive study that we've been ranked number one in customer satisfaction, so we're taking this extremely seriously, and in fact YY now has increased the compensation of every single Lenovo employee. Up to 40 percent of their compensation bonus this year is going to be based on customer metrics like quality, order to ship, and things of this nature. So, we're really putting every employee focused on customer centricity this year. So, the summary on Transform 1.0 is that every aspect of what you knew about Lenovo's data center group has transformed, from the culture to the branding to dedicated sales and marketing, supply chain and quality groups, to a worldwide channel program and certifications, to new system integrator relationships, and to the new leadership team. So, rather than me just talk about it, I thought I'd share a quick video about what we've done over the last year, if you could run the video please. Turn around for a second. (epic music) (audience applauds) Okay. So, thank you to all our customers that allowed us to publicly display their logos in that video. So, what that means for you as investors, and for the investor community out there is, that our customers have responded, that this year Gardner just published that we are the fastest growing server company in the top 10, with 39 percent growth quarter-on-quarter, and 49 percent growth year-on-year. If you look at the progress we've made since the transformation the last three quarters publicly, we've grown 17 percent, then 44 percent, then 68 percent year on year in revenue, and I can tell you this quarter I'm as confident as ever in the financials around the DCG group, and it hasn't been in one area. You're going to see breakout sessions from hyperscale, software-defined, and flash, which are all growing more than a 100 percent year-on-year, supercomputing which we'll talk about shortly, now number one, and then ultimately from profitability, delivering five consecutive quarters of pre-tax profit increase, so I think, thank you very much to the customer base who's been working with us through this transformation journey. So, you're here to really hear what's next on 2.0, and that's what I'm excited to talk about today. Last year I came up with an audacious goal that we would become the largest supercomputer company on the planet by 2020, and this graph represents since the acquisition of the IBM System x business how far we were behind being the number one supercomputer. When we started we were 182 positions behind, even with the acquisition for example of SGI from HP, we've now accomplished our goal actually two years ahead of time. We're now the largest supercomputer company in the world. About one in every four supercomputers, 117 on the list, are now Lenovo computers, and you saw in the video where the universities are said, but I think what I'm most proud of is when your customers rank you as the best. So the awards at the bottom here, are actually Readers Choice from the last International Supercomputing Show where the scientific researchers on these computers ranked their vendors, and we were actually rated the number one server technology in supercomputing with our ThinkSystem SD530, and the number one storage technology with our ThinkSystem DSS-G, but more importantly what we're doing with the technology. You're going to see we won best in life sciences, best in data analytics, and best in collaboration as well, so you're going to see all of that in our breakout sessions. As you saw in the video now, 17 of the top 25 research institutions in the world are now running Lenovo supercomputers. And again coming from Raleigh and watching that hurricane come across the Atlantic, there are eight supercomputers crunching all of those models you see from Germany to Malaysia to Canada, and we're happy to have a SciNet from University of Toronto here with us in our breakout session to talk about what they're doing on climate modeling as well. But we're not stopping there. We just announced our new Neptune warm water cooling technology, which won the International Supercomputing Vendor Showdown, the first time we've won that best of show in 25 years, and we've now installed this. We're building out LRZ in Germany, the first ever warm water cooling in Peking University, at the India Space Propulsion Laboratory, at the Malaysian Weather and Meteorological Society, at Uninett, at the largest supercomputer in Norway, T-Systems, University of Birmingham. This is truly amazing technology where we're actually using water to cool the machine to deliver a significantly more energy-efficient computer. Super important, when we're looking at global warming and some of the electric bills can be millions of dollars just for one computer, and could actually power a small city just with the technology from the computer. We've built AI centers now in Morrisville, Stuttgart, Taipei, and Beijing, where customers can bring their AI workloads in with experts from Intel, from Nvidia, from our FPGA partners, to work on their workloads, and how they can best implement artificial intelligence. And we also this year launched LICO which is Lenovo Intelligent Compute Orchestrator software, and it's a software solution that simplifies the management and use of distributed clusters in both HPC and AI model development. So, what it enables you to do is take a single cluster, and run both HPC and AI workloads on it simultaneously, delivering better TCO for your environment, so check out LICO as well. A lot of the customers here and Wall Street are very excited and using it already. And we talked about solving humanity's greatest challenges. In the breakout session, you're going to have a virtual reality experience where you're going to be able to walk through what as was just ranked the world's most beautiful data center, the Barcelona Supercomputer. So, you can actually walk through one of the largest supercomputers in the world from Barcelona. You can see the work we're doing with NC State where we're going to have to grow the food supply of the world by 50 percent, and there's not enough fresh water in the world in the right places to actually make all those crops grow between now and 2055, so you're going to see the progression of how they're mapping the entire globe and the water around the world, how to build out the crop population over time using AI. You're going to see our work with Vestas is this largest supercomputer provider in the wind turbine areas, how they're working on wind energy, and then with University College London, how they're working on some of the toughest particle physics calculations in the world. So again, lots of opportunity here. Take advantage of it in the breakout sessions. Okay, let me transition to hyperscale. So in hyperscale now, we have completely transformed our business model. We are now powering six of the top 10 hyperscalers in the world, which is a significant difference from where we were two years ago. And the reason we're doing that, is we've coined a term called ODM+. We believe that hyperscalers want more procurement power than an ODM, and Lenovo is doing about $18 billion of procurement a year. They want a broader global supply chain that they can get from a local system integrator. We're more than 160 countries around the world, but they want the same world-class quality and reliability like they get from an MNC. So, what we're doing now is instead of just taking off the shelf motherboards from somewhere, we're starting with a blank sheet of paper, we're working with the customer base on customized SKUs and you can see we already are developing 33 custom solutions for the largest hyperscalers in the world. And then we're not just running notebooks through this factory where YY said, we're running 37 notebook boards a minute, we're now putting in tens and tens and tens of thousands of server board capacity per month into this same factory, so absolutely we can compete with the most aggressive ODM's in the world, but it's not just putting these things in in the motherboard side, we're also building out these systems all around the world, India, Brazil, Hungary, Mexico, China. This is an example of a new hyperscale customer we've had this last year, 34,000 servers we delivered in the first six months. The next 34,000 servers we delivered in 68 days. The next 34,000 servers we delivered in 35 days, with more than 99 percent on-time delivery to 35 data centers in 14 countries as diverse as South Africa, India, China, Brazil, et cetera. And I'm really ashamed to say it was 99.3, because we did have a forklift driver who rammed their forklift right through the middle of the one of the server racks. (audience laughing) At JFK Airport that we had to respond to, but I think this gives you a perspective of what it is to be a top five global supply chain and technology. So last year, I said we would invest significantly in IP, in joint ventures, and M and A to compete in software defined, in networking, and in storage, so I wanted to give you an update on that as well. Our newest software-defined partnership is with Cloudistics, enabling a fully composable cloud infrastructure. It's an exclusive agreement, you can see them here. I think Nag, our founder, is going to be here today, with a significant Lenovo investment in the company. So, this new ThinkAgile CP series delivers the simplicity of the public cloud, on-premise with exceptional support and a marketplace of essential enterprise applications all with a single click deployment. So simply put, we're delivering a private cloud with a premium experience. It's simple in that you need no specialists to deploy it. An IT generalist can set it up and manage it. It's agile in that you can provision dozens of workloads in minutes, and it's transformative in that you get all of the goodness of public cloud on-prem in a private cloud to unlock opportunity for use. So, we're extremely excited about the ThinkAgile CP series that's now shipping into the marketplace. Beyond that we're aggressively ramping, and we're either doubling, tripling, or quadrupling our market share as customers move from traditional server technology to software-defined technology. With Nutanix we've been public, growing about more than 150 percent year-on-year, with Nutanix as their fastest growing Nutanix partner, but today I want to set another audacious goal. I believe we cannot just be Nutanix's fastest growing partner but we can become their largest partner within two years. On Microsoft, we are already four times our market share on Azure stack of our traditional business. We were the first to launch our ThinkAgile on Broadwell and on Skylake with the Azure Stack Infrastructure. And on VMware we're about twice our market segment share. We were the first to deliver an Intel-optimized Optane-certified VSAN node. And with Optane technology, we're delivering 50 percent more VM density than any competitive SSD system in the marketplace, about 10 times lower latency, four times the performance of any SSD system out there, and Lenovo's first to market on that. And at VMworld you saw CEO Pat Gelsinger of VMware talked about project dimension, which is Edge as a service, and we're the only OEM beyond the Dell family that is participating today in project dimension. Beyond that you're going to see a number of other partnerships we have. I'm excited that we have the city of Bogota Columbia here, an eight million person city, where we announced a 3,000 camera video surveillance solution last month. With pivot three you're going to see city of Bogota in our breakout sessions. You're going to see a new partnership with Veeam around backup that's launching today. You're going to see partnerships with scale computing in IoT and hyper-converged infrastructure working on some of the largest retailers in the world. So again, everything out in the breakout session. Transitioning to storage and data management, it's been a great year for Lenovo, more than a 100 percent growth year-on-year, 2X market growth in flash arrays. IDC just reported 30 percent growth in storage, number one in price performance in the world and the best HPC storage product in the top 500 with our ThinkSystem DSS G, so strong coverage, but I'm excited today to announce for Transform 2.0 that Lenovo is launching the largest data management and storage portfolio in our 25-year data center history. (audience applauding) So a year ago, the largest server portfolio, becoming the largest fastest growing server OEM, today the largest storage portfolio, but as you saw this morning we're not doing it alone. Today Lenovo and NetApp, two global powerhouses are joining forces to deliver a multi-billion dollar global alliance in data management and storage to help customers through their intelligent transformation. As the fastest growing worldwide server leader and one of the fastest growing flash array and data management companies in the world, we're going to deliver more choice to customers than ever before, global scale that's never been seen, supply chain efficiencies, and rapidly accelerating innovation and solutions. So, let me unwrap this a little bit for you and talk about what we're announcing today. First, it's the largest portfolio in our history. You're going to see not just storage solutions launching today but a set of solution recipes from NetApp that are going to make Lenovo server and NetApp or Lenovo storage work better together. The announcement enables Lenovo to go from covering 15 percent of the global storage market to more than 90 percent of the global storage market and distribute these products in more than 160 countries around the world. So we're launching today, 10 new storage platforms, the ThinkSystem DE and ThinkSystem DM platforms. They're going to be centrally managed, so the same XClarity management that you've been using for server, you can now use across all of your storage platforms as well, and it'll be supported by the same 10,000 plus service personnel that are giving outstanding customer support to you today on the server side. And we didn't come up with this in the last month or the last quarter. We're announcing availability in ordering today and shipments tomorrow of the first products in this portfolio, so we're excited today that it's not just a future announcement but something you as customers can take advantage of immediately. (audience applauding) The second part of the announcement is we are announcing a joint venture in China. Not only will this be a multi-billion dollar global partnership, but Lenovo will be a 51 percent owner, NetApp a 49 percent owner of a new joint venture in China with the goal of becoming in the top three storage companies in the largest data and storage market in the world. We will deliver our R and D in China for China, pooling our IP and resources together, and delivering a single route to market through a complementary channel, not just in China but worldwide. And in the future I just want to tell everyone this is phase one. There is so much exciting stuff. We're going to be on the stage over the next year talking to you about around integrated solutions, next-generation technologies, and further synergies and collaborations. So, rather than just have me talk about it, I'd like to welcome to the stage our new partner NetApp and Brad Anderson who's the senior vice president and general manager of NetApp Cloud Infrastructure. (upbeat music) (audience applauding) >> Thank You Kirk. >> So Brad, we've known each other a long time. It's an exciting day. I'm going to give you the stage and allow you to say NetApp's perspective on this announcement. >> Very good, thank you very much, Kirk. Kirk and I go back to I think 1994, so hey good morning and welcome. My name is Brad Anderson. I manage the Cloud Infrastructure Group at NetApp, and I am honored and privileged to be here at Lenovo Transform, particularly today on today's announcement. Now, you've heard a lot about digital transformation about how companies have to transform their IT to compete in today's global environment. And today's announcement with the partnership between NetApp and Lenovo is what that's all about. This is the joining of two global leaders bringing innovative technology in a simplified solution to help customers modernize their IT and accelerate their global digital transformations. Drawing on the strengths of both companies, Lenovo's high performance compute world-class supply chain, and NetApp's hybrid cloud data management, hybrid flash and all flash storage solutions and products. And both companies providing our customers with the global scale for them to be able to meet their transformation goals. At NetApp, we're very excited. This is a quote from George Kurian our CEO. George spent all day yesterday with YY and Kirk, and would have been here today if it hadn't been also our shareholders meeting in California, but I want to just convey how excited we are for all across NetApp with this partnership. This is a partnership between two companies with tremendous market momentum. Kirk took you through all the amazing results that Lenovo has accomplished, number one in supercomputing, number one in performance, number one in x86 reliability, number one in x86 customers sat, number five in supply chain, really impressive and congratulations. Like Lenovo, NetApp is also on a transformation journey, from a storage company to the data authority in hybrid cloud, and we've seen some pretty impressive momentum as well. Just last week we became number one in all flash arrays worldwide, catching EMC and Dell, and we plan to keep on going by them, as we help customers modernize their their data centers with cloud connected flash. We have strategic partnerships with the largest hyperscalers to provide cloud native data services around the globe and we are having success helping our customers build their own private clouds with just, with a new disruptive hyper-converged technology that allows them to operate just like hyperscalers. These three initiatives has fueled NetApp's transformation, and has enabled our customers to change the world with data. And oh by the way, it has also fueled us to have meet or have beaten Wall Street's expectations for nine quarters in a row. These are two companies with tremendous market momentum. We are also building this partnership for long term success. We think about this as phase one and there are two important components to phase one. Kirk took you through them but let me just review them. Part one, the establishment of a multi-year commitment and a collaboration agreement to offer Lenovo branded flash products globally, and as Kurt said in 160 countries. Part two, the formation of a joint venture in PRC, People's Republic of China, that will provide long term commitment, joint product development, and increase go-to-market investment to meet the unique needs to China. Both companies will put in storage technologies and storage expertise to form an independent JV that establishes a data management company in China for China. And while we can dream about what phase two looks like, our entire focus is on making phase one incredibly successful and I'm pleased to repeat what Kirk, is that the first products are orderable and shippable this week in 160 different countries, and you will see our two companies focusing on the here and now. On our joint go to market strategy, you'll see us working together to drive strategic alignment, focused execution, strong governance, and realistic expectations and milestones. And it starts with the success of our customers and our channel partners is job one. Enabling customers to modernize their legacy IT with complete data center solutions, ensuring that our customers get the best from both companies, new offerings the fuel business success, efficiencies to reinvest in game-changing initiatives, and new solutions for new mission-critical applications like data analytics, IoT, artificial intelligence, and machine learning. Channel partners are also top of mind for both our two companies. We are committed to the success of our existing and our future channel partners. For NetApp channel partners, it is new pathways to new segments and to new customers. For Lenovo's channel partners, it is the competitive weapons that now allows you to compete and more importantly win against Dell, EMC, and HP. And the good news for both companies is that our channel partner ecosystem is highly complementary with minimal overlap. Today is the first day of a very exciting partnership, of a partnership that will better serve our customers today and will provide new opportunities to both our companies and to our partners, new products to our customers globally and in China. I am personally very excited. I will be on the board of the JV. And so, I look forward to working with you, partnering with you and serving you as we go forward, and with that, I'd like to invite Kirk back up. (audience applauding) >> Thank you. >> Thank you. >> Well, thank you, Brad. I think it's an exciting overview, and these products will be manufactured in China, in Mexico, in Hungary, and around the world, enabling this amazing supply chain we talked about to deliver in over 160 countries. So thank you Brad, thank you George, for the amazing partnership. So again, that's not all. In Transform 2.0, last year, we talked about the joint ventures that were coming. I want to give you a sneak peek at what you should expect at future Lenovo events around the world. We have this Transform in Beijing in a couple weeks. We'll then be repeating this in 20 different locations roughly around the world over the next year, and I'm excited probably more than ever about what else is coming. Let's talk about Telco 5G and network function virtualization. Today, Motorola phones are certified on 46 global networks. We launched the world's first 5G upgradable phone here in the United States with Verizon. Lenovo DCG sells to 58 telecommunication providers around the world. At Mobile World Congress in Barcelona and Shanghai, you saw China Telecom and China Mobile in the Lenovo booth, China Telecom showing a video broadband remote access server, a VBRAS, with video streaming demonstrations with 2x less jitter than they had seen before. You saw China Mobile with a virtual remote access network, a VRAN, with greater than 10 times the throughput and 10x lower latency running on Lenovo. And this year, we'll be launching a new NFV company, a software company in China for China to drive the entire NFV stack, delivering not just hardware solutions, but software solutions, and we've recently hired a new CEO. You're going to hear more about that over the next several quarters. Very exciting as we try to drive new economics into the networks to deliver these 20 billion devices. We're going to need new economics that I think Lenovo can uniquely deliver. The second on IoT and edge, we've integrated on the device side into our intelligent devices group. With everything that's going to consume electricity computes and communicates, Lenovo is in a unique position on the device side to take advantage of the communications from Motorola and being one of the largest device companies in the world. But this year, we're also going to roll out a comprehensive set of edge gateways and ruggedized industrial servers and edge servers and ISP appliances for the edge and for IoT. So look for that as well. And then lastly, as a service, you're going to see Lenovo delivering hardware as a service, device as a service, infrastructure as a service, software as a service, and hardware as a service, not just as a glorified leasing contract, but with IP, we've developed true flexible metering capability that enables you to scale up and scale down freely and paying strictly based on usage, and we'll be having those announcements within this fiscal year. So Transform 2.0, lots to talk about, NetApp the big news of the day, but a lot more to come over the next year from the Data Center group. So in summary, I'm excited that we have a lot of customers that are going to be on stage with us that you saw in the video. Lots of testimonials so that you can talk to colleagues of yourself. Alamos Gold from Canada, a Canadian gold producer, Caligo for data optimization and privacy, SciNet, the largest supercomputer we've ever put into North America, and the largest in Canada at the University of Toronto will be here talking about climate change. City of Bogota again with our hyper-converged solutions around smart city putting in 3,000 cameras for criminal detection, license plate detection, et cetera, and then more from a channel mid market perspective, Jerry's Foods, which is from my home state of Wisconsin, and Minnesota which has about 57 stores in the specialty foods market, and how they're leveraging our IoT solutions as well. So again, about five times the number of demos that we had last year. So in summary, first and foremost to the customers, thank you for your business. It's been a great journey and I think we're on a tremendous role. You saw from last year, we're trying to build credibility with you. After the largest server portfolio, we're now the fastest-growing server OEM per Gardner, number one in performance, number one in reliability, number one in customer satisfaction, number one in supercomputing. Today, the largest storage portfolio in our history, with the goal of becoming the fastest growing storage company in the world, top three in China, multibillion-dollar collaboration with NetApp. And the transformation is going to continue with new edge gateways, edge servers, NFV solutions, telecommunications infrastructure, and hardware as a service with dynamic metering. So thank you for your time. I've looked forward to meeting many of you over the next day. We appreciate your business, and with that, I'd like to bring up Rod Lappen to introduce our next speaker. Rod? (audience applauding) >> Thanks, boss, well done. Alright ladies and gentlemen. No real secret there. I think we've heard why I might talk about the fourth Industrial Revolution in data and exactly what's going on with that. You've heard Kirk with some amazing announcements, obviously now with our NetApp partnership, talk about 5G, NFV, cloud, artificial intelligence, I think we've hit just about all the key hot topics. It's with great pleasure that I now bring up on stage Mr. Christian Teismann, our senior vice president and general manager of commercial business for both our PCs and our IoT business, so Christian Teismann. (techno music) Here, take that. >> Thank you. I think I'll need that. >> Okay, Christian, so obviously just before we get down, you and I last year, we had a bit of a chat about being in New York. >> Exports. >> You were an expat in New York for a long time. >> That's true. >> And now, you've moved from New York. You're in Munich? >> Yep. >> How does that feel? >> Well Munich is a wonderful city, and it's a great place to live and raise kids, but you know there's no place in the world like New York. >> Right. >> And I miss it a lot, quite frankly. >> So what exactly do you miss in New York? >> Well there's a lot of things in New York that are unique, but I know you spent some time in Japan, but I still believe the best sushi in the world is still in New York City. (all laughing) >> I will beg to differ. I will beg to differ. I think Mr. Guchi-san from Softbank is here somewhere. He will get up an argue very quickly that Japan definitely has better sushi than New York. But obviously you know, it's a very very special place, and I have had sushi here, it's been fantastic. What about Munich? Anything else that you like in Munich? >> Well I mean in Munich, we have pork knuckles. >> Pork knuckles. (Christian laughing) Very similar sushi. >> What is also very fantastic, but we have the real, the real Oktoberfest in Munich, and it starts next week, mid-September, and I think it's unique in the world. So it's very special as well. >> Oktoberfest. >> Yes. >> Unfortunately, I'm not going this year, 'cause you didn't invite me, but-- (audience chuckling) How about, I think you've got a bit of a secret in relation to Oktoberfest, probably not in Munich, however. >> It's a secret, yes, but-- >> Are you going to share? >> Well I mean-- >> See how I'm putting you on the spot? >> In the 10 years, while living here in New York, I was a regular visitor of the Oktoberfest at the Lower East Side in Avenue C at Zum Schneider, where I actually met my wife, and she's German. >> Very good. So, how about a big round of applause? (audience applauding) Not so much for Christian, but more I think, obviously for his wife, who obviously had been drinking and consequently ended up with you. (all laughing) See you later, mate. >> That's the beauty about Oktoberfest, but yes. So first of all, good morning to everybody, and great to be back here in New York for a second Transform event. New York clearly is the melting pot of the world in terms of culture, nations, but also business professionals from all kind of different industries, and having this event here in New York City I believe is manifesting what we are trying to do here at Lenovo, is transform every aspect of our business and helping our customers on the journey of intelligent transformation. Last year, in our transformation on the device business, I talked about how the PC is transforming to personalized computing, and we've made a lot of progress in that journey over the last 12 months. One major change that we have made is we combined all our device business under one roof. So basically PCs, smart devices, and smart phones are now under the roof and under the intelligent device group. But from my perspective makes a lot of sense, because at the end of the day, all devices connect in the modern world into the cloud and are operating in a seamless way. But we are also moving from a device business what is mainly a hardware focus historically, more and more also into a solutions business, and I will give you during my speech a little bit of a sense of what we are trying to do, as we are trying to bring all these components closer together, and specifically also with our strengths on the data center side really build end-to-end customer solution. Ultimately, what we want to do is make our business, our customer's businesses faster, safer, and ultimately smarter as well. So I want to look a little bit back, because I really believe it's important to understand what's going on today on the device side. Many of us have still grown up with phones with terminals, ultimately getting their first desktop, their first laptop, their first mobile phone, and ultimately smartphone. Emails and internet improved our speed, how we could operate together, but still we were defined by linear technology advances. Today, the world has changed completely. Technology itself is not a limiting factor anymore. It is how we use technology going forward. The Internet is pervasive, and we are not yet there that we are always connected, but we are nearly always connected, and we are moving to the stage, that everything is getting connected all the time. Sharing experiences is the most driving force in our behavior. In our private life, sharing pictures, videos constantly, real-time around the world, with our friends and with our family, and you see the same behavior actually happening in the business life as well. Collaboration is the number-one topic if it comes down to workplace, and video and instant messaging, things that are coming from the consumer side are dominating the way we are operating in the commercial business as well. Most important beside technology, that a new generation of workforce has completely changed the way we are working. As the famous workforce the first generation of Millennials that have now fully entered in the global workforce, and the next generation, it's called Generation Z, is already starting to enter the global workforce. By 2025, 75 percent of the world's workforce will be composed out of two of these generations. Why is this so important? These two generations have been growing up using state-of-the-art IT technology during their private life, during their education, school and study, and are taking these learnings and taking these behaviors in the commercial workspace. And this is the number one force of change that we are seeing in the moment. Diverse workforces are driving this change in the IT spectrum, and for years in many of our customers' focus was their customer focus. Customer experience also in Lenovo is the most important thing, but we've realized that our own human capital is equally valuable in our customer relationships, and employee experience is becoming a very important thing for many of our customers, and equally for Lenovo as well. As you have heard YY, as we heard from YY, Lenovo is focused on intelligent transformation. What that means for us in the intelligent device business is ultimately starting with putting intelligence in all of our devices, smartify every single one of our devices, adding value to our customers, traditionally IT departments, but also focusing on their end users and building products that make their end users more productive. And as a world leader in commercial devices with more than 33 percent market share, we can solve problems been even better than any other company in the world. So, let's talk about transformation of productivity first. We are in a device-led world. Everything we do is connected. There's more interaction with devices than ever, but also with spaces who are increasingly becoming smart and intelligent. YY said it, by 2020 we have more than 20 billion connected devices in the world, and it will grow exponentially from there on. And users have unique personal choices for technology, and that's very important to recognize, and we call this concept a digital wardrobe. And it means that every single end-user in the commercial business is composing his personal wardrobe on an ongoing basis and is reconfiguring it based on the work he's doing and based where he's going and based what task he is doing. I would ask all of you to put out all the devices you're carrying in your pockets and in your bags. You will see a lot of you are using phones, tablets, laptops, but also cameras and even smartwatches. They're all different, but they have one underlying technology that is bringing it all together. Recognizing digital wardrobe dynamics is a core factor for us to put all the devices under one roof in IDG, one business group that is dedicated to end-user solutions across mobile, PC, but also software services and imaging, to emerging technologies like AR, VR, IoT, and ultimately a AI as well. A couple of years back there was a big debate around bring-your-own-device, what was called consumerization. Today consumerization does not exist anymore, because consumerization has happened into every single device we build in our commercial business. End users and commercial customers today do expect superior display performance, superior audio, microphone, voice, and touch quality, and have it all connected and working seamlessly together in an ease of use space. We are already deep in the journey of personalized computing today. But the center point of it has been for the last 25 years, the mobile PC, that we have perfected over the last 25 years, and has been the undisputed leader in mobility computing. We believe in the commercial business, the ThinkPad is still the core device of a digital wardrobe, and we continue to drive the success of the ThinkPad in the marketplace. We've sold more than 140 million over the last 26 years, and even last year we exceeded nearly 11 million units. That is about 21 ThinkPads per minute, or one Thinkpad every three seconds that we are shipping out in the market. It's the number one commercial PC in the world. It has gotten countless awards but we felt last year after Transform we need to build a step further, in really tailoring the ThinkPad towards the need of the future. So, we announced a new line of X1 Carbon and Yoga at CES the Consumer Electronics Show. And the reason is not we want to sell to consumer, but that we do recognize that a lot of CIOs and IT decision makers need to understand what consumers are really doing in terms of technology to make them successful. So, let's take a look at the video. (suspenseful music) >> When you're the number one business laptop of all time, your only competition is yourself. (wall shattering) And, that's different. Different, like resisting heat, ice, dust, and spills. Different, like sharper, brighter OLA display. The trackpoint that reinvented controls, and a carbon fiber roll cage to protect what's inside, built by an engineering and design team, doing the impossible for the last 25 years. This is the number one business laptop of all time, but it's not a laptop. It's a ThinkPad. (audience applauding) >> Thank you very much. And we are very proud that Lenovo ThinkPad has been selected as the best laptop in the world in the second year in a row. I think it's a wonderful tribute to what our engineers have been done on this one. And users do want awesome displays. They want the best possible audio, voice, and touch control, but some users they want more. What they want is super power, and I'm really proud to announce our newest member of the X1 family, and that's the X1 extreme. It's exceptionally featured. It has six core I9 intel chipset, the highest performance you get in the commercial space. It has Nvidia XTX graphic, it is a 4K UHD display with HDR with Dolby vision and Dolby Atmos Audio, two terabyte in SSD, so it is really the absolute Ferrari in terms of building high performance commercial computer. Of course it has touch and voice, but it is one thing. It has so much performance that it serves also a purpose that is not typical for commercial, and I know there's a lot of secret gamers also here in this room. So you see, by really bringing technology together in the commercial space, you're creating productivity solutions of one of a kind. But there's another category of products from a productivity perspective that is incredibly important in our commercial business, and that is the workstation business . Clearly workstations are very specifically designed computers for very advanced high-performance workloads, serving designers, architects, researchers, developers, or data analysts. And power and performance is not just about the performance itself. It has to be tailored towards the specific use case, and traditionally these products have a similar size, like a server. They are running on Intel Xeon technology, and they are equally complex to manufacture. We have now created a new category as the ultra mobile workstation, and I'm very proud that we can announce here the lightest mobile workstation in the industry. It is so powerful that it really can run AI and big data analysis. And with this performance you can go really close where you need this power, to the sensors, into the cars, or into the manufacturing places where you not only wannna read the sensors but get real-time analytics out of these sensors. To build a machine like this one you need customers who are really challenging you to the limit. and we're very happy that we had a customer who went on this journey with us, and ultimately jointly with us created this product. So, let's take a look at the video. (suspenseful music) >> My world involves pathfinding both the hardware needs to the various work sites throughout the company, and then finding an appropriate model of desktop, laptop, or workstation to match those needs. My first impressions when I first seen the ThinkPad P1 was I didn't actually believe that we could get everything that I was asked for inside something as small and light in comparison to other mobile workstations. That was one of the I can't believe this is real sort of moments for me. (engine roars) >> Well, it's better than general when you're going around in the wind tunnel, which isn't alway easy, and going on a track is not necessarily the best bet, so having a lightweight very powerful laptop is extremely useful. It can take a Xeon processor, which can support ECC from when we try to load a full car, and when we're analyzing live simulation results. through and RCFT post processor or example. It needs a pretty powerful machine. >> It's come a long way to be able to deliver this. I hate to use the word game changer, but it is that for us. >> Aston Martin has got a lot of different projects going. There's some pretty exciting projects and a pretty versatile range coming out. Having Lenovo as a partner is certainly going to ensure that future. (engine roars) (audience applauds) >> So, don't you think the Aston Martin design and the ThinkPad design fit very well together? (audience laughs) So if Q, would get a new laptop, I think you would get a ThinkPad X P1. So, I want to switch gears a little bit, and go into something in terms of productivity that is not necessarily on top of the mind or every end user but I believe it's on top of the mind of every C-level executive and of every CEO. Security is the number one threat in terms of potential risk in your business and the cost of cybersecurity is estimated by 2020 around six trillion dollars. That's more than the GDP of Japan and we've seen a significant amount of data breach incidents already this years. Now, they're threatening to take companies out of business and that are threatening companies to lose a huge amount of sensitive customer data or internal data. At Lenovo, we are taking security very, very seriously, and we run a very deep analysis, around our own security capabilities in the products that we are building. And we are announcing today a new brand under the Think umbrella that is called ThinkShield. Our goal is to build the world's most secure PC, and ultimately the most secure devices in the industry. And when we looked at this end-to-end, there is no silver bullet around security. You have to go through every aspect where security breaches can potentially happen. That is why we have changed the whole organization, how we look at security in our device business, and really have it grouped under one complete ecosystem of solutions, Security is always something where you constantly are getting challenged with the next potential breach the next potential technology flaw. As we keep innovating and as we keep integrating, a lot of our partners' software and hardware components into our products. So for us, it's really very important that we partner with companies like Intel, Microsoft, Coronet, Absolute, and many others to really as an example to drive full encryption on all the data seamlessly, to have multi-factor authentication to protect your users' identity, to protect you in unsecured Wi-Fi locations, or even simple things like innovation on the device itself, to and an example protect the camera, against usage with a little thing like a thinkShutter that you can shut off the camera. SO what I want to show you here, is this is the full portfolio of ThinkShield that we are announcing today. This is clearly not something I can even read to you today, but I believe it shows you the breadth of security management that we are announcing today. There are four key pillars in managing security end-to-end. The first one is your data, and this has a lot of aspects around the hardware and the software itself. The second is identity. The third is the security around online, and ultimately the device itself. So, there is a breakout on security and ThinkShield today, available in the afternoon, and encourage you to really take a deeper look at this one. The first pillar around productivity was the device, and around the device. The second major pillar that we are seeing in terms of intelligent transformation is the workspace itself. Employees of a new generation have a very different habit how they work. They split their time between travel, working remotely but if they do come in the office, they expect a very different office environment than what they've seen in the past in cubicles or small offices. They come into the office to collaborate, and they want to create ideas, and they really work in cross-functional teams, and they want to do it instantly. And what we've seen is there is a huge amount of investment that companies are doing today in reconfiguring real estate reconfiguring offices. And most of these kind of things are moving to a digital platform. And what we are doing, is we want to build an entire set of solutions that are just focused on making the workspace more productive for remote workforce, and to create technology that allow people to work anywhere and connect instantly. And the core of this is that we need to be, the productivity of the employee as high as possible, and make it for him as easy as possible to use these kind of technologies. Last year in Transform, I announced that we will enter the smart office space. By the end of last year, we brought the first product into the market. It's called the Hub 500. It's already deployed in thousands of our customers, and it's uniquely focused on Microsoft Skype for Business, and making meeting instantly happen. And the product is very successful in the market. What we are announcing today is the next generation of this product, what is the Hub 700, what has a fantastic audio quality. It has far few microphones, and it is usable in small office environment, as well as in major conference rooms, but the most important part of this new announcement is that we are also announcing a software platform, and this software platform allows you to run multiple video conferencing software solutions on the same platform. Many of you may have standardized for one software solution or for another one, but as you are moving in a world of collaborating instantly with partners, customers, suppliers, you always will face multiple software standards in your company, and Lenovo is uniquely positioned but providing a middleware platform for the device to really enable multiple of these UX interfaces. And there's more to come and we will add additional UX interfaces on an ongoing base, based on our customer requirements. But this software does not only help to create a better experience and a higher productivity in the conference room or the huddle room itself. It really will allow you ultimately to manage all your conference rooms in the company in one instance. And you can run AI technologies around how to increase productivity utilization of your entire conference room ecosystem in your company. You will see a lot more devices coming from the node in this space, around intelligent screens, cameras, and so on, and so on. The idea is really that Lenovo will become a core provider in the whole movement into the smart office space. But it's great if you have hardware and software that is really supporting the approach of modern IT, but one component that Kirk also mentioned is absolutely critical, that we are providing this to you in an as a service approach. Get it what you want, when you need it, and pay it in the amount that you're really using it. And within UIT there is also I think a new philosophy around IT management, where you're much more focused on the value that you are consuming instead of investing into technology. We are launched as a service two years back and we already have a significant number of customers running PC as a service, but we believe as a service will stretch far more than just the PC device. It will go into categories like smart office. It might go even into categories like phone, and it will definitely go also in categories like storage and server in terms of capacity management. I want to highlight three offerings that we are also displaying today that are sort of building blocks in terms of how we really run as a service. The first one is that we collaborated intensively over the last year with Microsoft to be the launch pilot for their Autopilot offering, basically deploying images easily in the same approach like you would deploy a new phone on the network. The purpose really is to make new imaging and enabling new PC as seamless as it's used to be in the phone industry, and we have a complete set of offerings, and already a significant number customers have deployed Autopilot with Lenovo. The second major offering is Premier Support, like in the in the server business, where Premier Support is absolutely critical to run critical infrastructure, we see a lot of our customers do want to have Premier Support for their end users, so they can be back into work basically instantly, and that you have the highest possible instant repair on every single device. And then finally we have a significant amount of time invested into understanding how the software as a service really can get into one philosophy. And many of you already are consuming software as a service in many different contracts from many different vendors, but what we've created is one platform that really can manage this all together. All these things are the foundation for a device as a service offering that really can manage this end-to-end. So, implementing an intelligent workplace can be really a daunting prospect depending on where you're starting from, and how big your company ultimately is. But how do you manage the transformation of technology workspace if you're present in 50 or more countries and you run an infrastructure for more than 100,000 people? Michelin, famous for their tires, infamous for their Michelin star restaurant rating, especially in New York, and instantly recognizable by the Michelin Man, has just doing that. Please welcome with me Damon McIntyre from Michelin to talk to us about the challenges and transforming collaboration and productivity. (audience applauding) (electronic dance music) Thank you, David. >> Thank you, thank you very much. >> We on? >> So, how do you feel here? >> Well good, I want to thank you first of all for your partnership and the devices you create that helped us design, manufacture, and distribute the best tire in the world, okay? I just had to say it and put out there, alright. And I was wondering, were those Michelin tires on that Aston Martin? >> I'm pretty sure there is no other tire that would fit to that. >> Yeah, no, thank you, thank you again, and thank you for the introduction. >> So, when we talk about the transformation happening really in the workplace, the most tangible transformation that you actually see is the drastic change that companies are doing physically. They're breaking down walls. They're removing cubes, and they're moving to flexible layouts, new desks, new huddle rooms, open spaces, but the underlying technology for that is clearly not so visible very often. So, tell us about Michelin's strategy, and the technology you are deploying to really enable this corporation. >> So we, so let me give a little bit a history about the company to understand the daunting tasks that we had before us. So we have over 114,000 people in the company under 170 nationalities, okay? If you go to the corporate office in France, it's Clermont. It's about 3,000 executives and directors, and what have you in the marketing, sales, all the way up to the chain of the global CIO, right? Inside of the Americas, we merged in Americas about three years ago. Now we have the Americas zone. There's about 28,000 employees across the Americas, so it's really, it's really hard in a lot of cases. You start looking at the different areas that you lose time, and you lose you know, your productivity and what have you, so there, it's when we looked at different aspects of how we were going to manage the meeting rooms, right? because we have opened up our areas of workspace, our CIO, CEOs in our zones will no longer have an office. They'll sit out in front of everybody else and mingle with the crowd. So, how do you take those spaces that were originally used by an individual but now turn them into like meeting rooms? So, we went through a large process, and looked at the Hub 500, and that really met our needs, because at the end of the day what we noticed was, it was it was just it just worked, okay? We've just added it to the catalog, so we're going to be deploying it very soon, and I just want to again point that I know everybody struggles with this, and if you look at all the minutes that you lose in starting up a meeting, and we know you know what I'm talking about when I say this, it equates to many many many dollars, okay? And so at the end the day, this product helps us to be more efficient in starting up the meeting, and more productive during the meeting. >> Okay, it's very good to hear. Another major trend we are seeing in IT departments is taking a more hands-off approach to hardware. We're seeing new technologies enable IT to create a more efficient model, how IT gets hardware in the hands of end-users, and how they are ultimately supporting themselves. So what's your strategy around the lifecycle management of the devices? >> So yeah you mentioned, again, we'll go back to the 114,000 employees in the company, right? You imagine looking at all the devices we use. I'm not going to get into the number of devices we have, but we have a set number that we use, and we have to go through a process of deploying these devices, which we right now service our own image. We build our images, we service them through our help desk and all that process, and we go through it. If you imagine deploying 25,000 PCs in a year, okay? The time and the daunting task that's behind all that, you can probably add up to 20 or 30 people just full-time doing that, okay? So, with partnering with Lenovo and their excellent technology, their technical teams, and putting together the whole process of how we do imaging, it now lifts that burden off of our folks, and it shifts it into a more automated process through the cloud, okay? And, it's with the Autopilot on the end of the project, we'll have Autopilot fully engaged, but what I really appreciate is how Lenovo really, really kind of got with us, and partnered with us for the whole process. I mean it wasn't just a partner between Michelin and Lenovo. Microsoft was also partnered during that whole process, and it really was a good project that we put together, and we hope to have something in a full production mode next year for sure. >> So, David thank you very, very much to be here with us on stage. What I really want to say, customers like you, who are always challenging us on every single aspect of our capabilities really do make the big difference for us to get better every single day and we really appreciate the partnership. >> Yeah, and I would like to say this is that I am, I'm doing what he's exactly said he just said. I am challenging Lenovo to show us how we can innovate in our work space with your devices, right? That's a challenge, and it's going to be starting up next year for sure. We've done some in the past, but I'm really going to challenge you, and my whole aspect about how to do that is bring you into our workspace. Show you how we make how we go through the process of making tires and all that process, and how we distribute those tires, so you can brainstorm, come back to the table and say, here's a device that can do exactly what you're doing right now, better, more efficient, and save money, so thank you. >> Thank you very much, David. (audience applauding) Well it's sometimes really refreshing to get a very challenging customers feedback. And you know, we will continue to grow this business together, and I'm very confident that your challenge will ultimately help to make our products even more seamless together. So, as we now covered productivity and how we are really improving our devices itself, and the transformation around the workplace, there is one pillar left I want to talk about, and that's really, how do we make businesses smarter than ever? What that really means is, that we are on a journey on trying to understand our customer's business, deeper than ever, understanding our customer's processes even better than ever, and trying to understand how we can help our customers to become more competitive by injecting state-of-the-art technology in this intelligent transformation process, into core processes. But this cannot be done without talking about a fundamental and that is the journey towards 5G. I really believe that 5G is changing everything the way we are operating devices today, because they will be connected in a way like it has never done before. YY talked about you know, 20 times 10 times the amount of performance. There are other studies that talk about even 200 times the performance, how you can use these devices. What it will lead to ultimately is that we will build devices that will be always connected to the cloud. And, we are preparing for this, and Kirk already talked about, and how many operators in the world we already present with our Moto phones, with how many Telcos we are working already on the backend, and we are working on the device side on integrating 5G basically into every single one of our product in the future. One of the areas that will benefit hugely from always connected is the world of virtual reality and augmented reality. And I'm going to pick here one example, and that is that we have created a commercial VR solution for classrooms and education, and basically using consumer type of product like our Mirage Solo with Daydream and put a solution around this one that enables teachers and schools to use these products in the classroom experience. So, students now can have immersive learning. They can studying sciences. They can look at environmental issues. They can exploring their careers, or they can even taking a tour in the next college they're going to go after this one. And no matter what grade level, this is how people will continue to learn in the future. It's quite a departure from the old world of textbooks. In our area that we are looking is IoT, And as YY already elaborated, we are clearly learning from our own processes around how we improve our supply chain and manufacturing and how we improve also retail experience and warehousing, and we are working with some of the largest companies in the world on pilots, on deploying IoT solutions to make their businesses, their processes, and their businesses, you know, more competitive, and some of them you can see in the demo environment. Lenovo itself already is managing 55 million devices in an IoT fashion connecting to our own cloud, and constantly improving the experience by learning from the behavior of these devices in an IoT way, and we are collecting significant amount of data to really improve the performance of these systems and our future generations of products on a ongoing base. We have a very strong partnership with a company called ADLINK from Taiwan that is one of the leading manufacturers of manufacturing PC and hardened devices to create solutions on the IoT platform. The next area that we are very actively investing in is commercial augmented reality. I believe augmented reality has by far more opportunity in commercial than virtual reality, because it has the potential to ultimately improve every single business process of commercial customers. Imagine in the future how complex surgeries can be simplified by basically having real-time augmented reality information about the surgery, by having people connecting into a virtual surgery, and supporting the surgery around the world. Visit a furniture store in the future and see how this furniture looks in your home instantly. Doing some maintenance on some devices yourself by just calling the company and getting an online manual into an augmented reality device. Lenovo is exploring all kinds of possibilities, and you will see a solution very soon from Lenovo. Early when we talked about smart office, I talked about the importance of creating a software platform that really run all these use cases for a smart office. We are creating a similar platform for augmented reality where companies can develop and run all their argumented reality use cases. So you will see that early in 2019 we will announce an augmented reality device, as well as an augmented reality platform. So, I know you're very interested on what exactly we are rolling out, so we will have a first prototype view available there. It's still a codename project on the horizon, and we will announce it ultimately in 2019, but I think it's good for you to take a look what we are doing here. So, I just wanted to give you a peek on what we are working beyond smart office and the device productivity in terms of really how we make businesses smarter. It's really about increasing productivity, providing you the most secure solutions, increase workplace collaboration, increase IT efficiency, using new computing devices and software and services to make business smarter in the future. There's no other company that will enable to offer what we do in commercial. No company has the breadth of commercial devices, software solutions, and the same data center capabilities, and no other company can do more for your intelligent transformation than Lenovo. Thank you very much. (audience applauding) >> Thanks mate, give me that. I need that. Alright, ladies and gentlemen, we are done. So firstly, I've got a couple of little housekeeping pieces at the end of this and then we can go straight into going and experiencing some of the technology we've got on the left-hand side of the room here. So, I want to thank Christian obviously. Christian, awesome as always, some great announcements there. I love the P1. I actually like the Aston Martin a little bit better, but I'll take either if you want to give me one for free. I'll take it. We heard from YY obviously about the industry and how the the fourth Industrial Revolution is impacting us all from a digital transformation perspective, and obviously Kirk on DCG, the great NetApp announcement, which is going to be really exciting, actually that Twitter and some of the social media panels are absolutely going crazy, so it's good to see that the industry is really taking some impact. Some of the publications are really great, so thank you for the media who are obviously in the room publishing right no. But now, I really want to say it's all of your turn. So, all of you up the back there who are having coffee, it's your turn now. I want everyone who's sitting down here after this event move into there, and really take advantage of the 15 breakouts that we've got set there. There are four breakout sessions from a time perspective. I want to try and get you all out there at least to use up three of them and use your fourth one to get out and actually experience some of the technology. So, you've got four breakout sessions. A lot of the breakout sessions are actually done twice. If you have not downloaded the app, please download the app so you can actually see what time things are going on and make sure you're registering correctly. There's a lot of great experience of stuff out there for you to go do. I've got one quick video to show you on some of the technology we've got and then we're about to close. Alright, here we are acting crazy. Now, you can see obviously, artificial intelligence machine learning in the browser. God, I hate that dance, I'm not a Millenial at all. It's effectively going to be implemented by healthcare. I want you to come around and test that out. Look at these two guys. This looks like a Lenovo management meeting to be honest with you. These two guys are actually concentrating, using their brain power to race each others in cars. You got to come past and give that a try. Give that a try obviously. Fantastic event here, lots of technology for you to experience, and great partners that have been involved as well. And so, from a Lenovo perspective, we've had some great alliance partners contribute, including obviously our number one partner, Intel, who's been a really big loyal contributor to us, and been a real part of our success here at Transform. Excellent, so please, you've just seen a little bit of tech out there that you can go and play with. I really want you, I mean go put on those black things, like Scott Hawkins our chief marketing officer from Lenovo's DCG business was doing and racing around this little car with his concentration not using his hands. He said it's really good actually, but as soon as someone comes up to speak to him, his car stops, so you got to try and do better. You got to try and prove if you can multitask or not. Get up there and concentrate and talk at the same time. 62 different breakouts up there. I'm not going to go into too much detai, but you can see we've got a very, very unusual numbering system, 18 to 18.8. I think over here we've got a 4849. There's a 4114. And then up here we've got a 46.1 and a 46.2. So, you need the decoder ring to be able to understand it. Get over there have a lot of fun. Remember the boat leaves today at 4:00 o'clock, right behind us at the pier right behind us here. There's 400 of us registered. Go onto the app and let us know if there's more people coming. It's going to be a great event out there on the Hudson River. Ladies and gentlemen that is the end of your keynote. I want to thank you all for being patient and thank all of our speakers today. Have a great have a great day, thank you very much. (audience applauding) (upbeat music) ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ba do ♪

>> (dramatic orchestral music) >> Announcer: Live from San Francisco. It's the Cube. Covering Red Hat Summit 2018. Brought to you by Red Hat. >> Hello welcome back everyone. Day three of wall-to-wall coverage here at Red Hat Summit 2018 live in San Francisco, California, here at Moscone West. I'm John Furrier, your co-host of The Cube with John Troyer, analyst, co-host this week. He's the co-founder of TechReckoning, and advisory and community development firm. Our next guest is our (mumble) of the senior Vice President General Manager of Hewlett Packard Enterprises Pointnext HPE. Great to see you. >> Great to see you as well. Thank you. >> So there's not secret HPE been partnering with companies for many generations. And Red Hat is one of the big strategic partners. Lot of services opportunity, a lot of transformation happening, and the biggest thing is that true Private Cloud and Hybrid Cloud, and Public Clouds all happening an IOT Edge is kind of seeing pretty clearly what's happening. On-Premise isn't going away. >> No! >> It'll look like Cloud is going to run like a Cloud. >> Yeah. >> Has to work with the Cloud or Clouds plural, and then you got the IOT Edge out there-- >> That's right. >> All kind of coming together with software Kubernetes containers all kind of being glue layers in here. So, you know, must be good for you guys okay, customers can now see what you guys have been promoting. So what is HP doing with their ad? How's that tie into that-- >> Sure, sure >> You know, transformation with the cloud? >> You said it very well John. In fact when we talked to our customers weather they realized it or not, it's the Hybrid world, and the environments are hybrid, and like you said, probably private (mumble) are not going anywhere. In fact we did the CTPF acquisition, Red Pexia acquisition, and this is really all to help clients on the Cloud journey. Doesn't really matter to us whether the workload ends up in AWS, Google, Azure, on Prime or dedicated infrastructure. So, that's actually been a huge plus for us to really have a seat at the table, to have a discussion on the customers workload strategy. Now a partner like Red Hat, who have been together working together for probably 18 years now, and it's been a long steady partnership. Who they're number one OAM partner but also the point you made I think from a services standpoint that's just a huge opportunity you know, customers tell us anyone can do infrastructure service or they're looking for platforming service. So in jointly with our consumption capabilities, and Red Hat Open Shift. Now who giving them true Container Product Service. >> Containerization, how we were talking yesterday in our wrap-up. You can bring in the new without killing the old and but it's really fundamental because people want Cloud scale, they want the horizontal scalable application, devops and programing infrastructures code. But they can't just throw out their legacy stuff. Containers which allows them to nurture those applications and workload, and let it take it's natural course. This is actually good for services cause you can take-- there's a solution there. >> That's right! There's absolutely. In fact customers tell us when they looking for the platform, it's not just to help them on their new build. They're looking for help also to run the existing environment and most of the times it's not practical to re-factor, re-architect every single of the Legacy applications, and cause some of them applications, as you know, they were done to leverage the performance optimization on the underlying infrastructure piece of it, and so one of the things we're doing join to the Red Hat is leverage Containerization to provide the portability for the applications. To move between the different environments and whether it's Private Cloud, Public Cloud, but the key thing is portability, and mobility and that's sweet spot for containerization. >> Give some use cases of customers. Take us through a day-in-the-life of maybe a couple different examples where you guys are engaging with Red Hat where you coming in the customer is like, "Okay, here's my situation". What are some of the trends and patterns that you see with customers? What specifically are you, is it workload, moving it to the mobile clouds? Is it more re-platforming On-Premise. >> Yeah! >> What are some of the things that you guys are doing? >> I would say that the bulk of our engagement, and that's one thing that we feel really good about joining Red Hat. We have really shifted our engagement model to be much more outcome driven. So the discussions with the client is always start off with like a workshop, and within that workshop we're actually understanding where the customer is really trying to go, what business outcomes they're trying to achieve? Before we start we going to push a specific technology or stack with specific solution set, and by having that alignment, in in fact, we talk about that IT means to be embedded with the business. Not alignment, embedded with the business, and because the role of IT has changed. So when we talk about workload, right, it's about no longer, and I talked about this earlier today, you no longer running workload just within the Forward Data Center, and the traditional view of that IT owns and operates the Forward Data Center, that's just dead. So, it's really more about managing the supply chain. We talk about the overall workload strategy. Which workloads make the most sense to go on Public Cloud, Private Cloud, and then the discussion also centers around their application portfolio and really understanding which applications truly need to be Cloud Native. Which ones really need to be left in shift, and this whole portability concept comes into play and that's one thing joining with Red Hat because Red Hat is really good joining with us on driving this kind of innovation workshops. Then you heard this earlier today as well, and that's just the fun of if. When no longer you talking about PowerPoint presentation, this and that. It's getting in a room, getting on a White Board and talking about what kind of journey really make sense for that party-- >> That's been really notable here, this week at this conference, right. There a lot of tech, a lot of software talked about, but also on the keynote a lot of people talking about culture, transformation, getting beyond your process, and the places you get stuck as IT professionals. So that's a great way to approach it. Right, nobody starts with a list of skews-- >> No! And absolutely, the other point is that one of the things that always gets missed is the focus on the management of change, and that's one of the key pieces we emphasize that not just the business process, but the culture, the people. How you going to bring them along the change journey. So, we actually put lot of emphasis on the whole area around management of change. We actually have a practice that this is one of the keys areas they focus on. So, you're absolutely right. Key focus area. >> I did want to flip to the products for a second. There was an announcement here now and talk a little bit about HP Synergy, Composable Infrastructure, with Open Shift. Maybe if you have a headline on exactly how you guys describe Synergy and then maybe how we working with Open Shift. >> So the HP Synergy the best way I can describe it is it is truly industry first composable infrastructure, and it gives you the ability to pull fluid resources and with software intelligence built in, and Unified API. It really gives you the ability to pull the resource that you need for specific applications. In fact, I use the analogy, it's kind of like building Legos and you can pull together based on what you going to do at a given moment, and then you decompose it and build something new. So it's all done via a software and truly gives you that flexibility that customers have been seeking. So it's just to me its got a great market traction across the globe and we'll just see continued momentum when joining with the Red Hat. What we've done is now with the announcing new solutions like the one you referenced to, to support ansible automation of the Red Hat Open Shift on the Synergy platform from the three part and the Nimble product lines and it just helps scale the Open Shift and while making container operation simple, scalable and more importantly repeatable. >> I want to make sure that I get this out there, because you guys were early with composable. Dave Valata and I had a debate on this at one of your HP Discovers where, I was really lov'n the composable message. Although it was kind of for a different massage but at that time Devos was really picking up steam. But, it's actually happening now three years later the level of granularity to services level as microservices as it comes the architecture of the future. The services model is literally, "What do you want?" it's not, "Here's the solution", it's like< "What do you need?" so, you're buying off the menu, if you will, so that changes the game. So congratulations on having that composable method first. I got to ask you, the impact to the engagements. So you now have menu of services. Does that change how you guys go to market? You mention that you do kick of meeting, you do the needs assessment, so I get that. Check! good approach. But the customers now, they just want to make sure that it's custom for them. How does that change your engagement? >> At the CXO level, the discussion, no mater which way you start the discussion it tends to kind of follow into a few buckets. Rather it's about generating additional revenue, going to market quicker, or it's about safe to invest, reducing their operating expenses, or it's about securing their information network. One of the thing we find is especially if you take a look at even the containers, applications deploying it. It's one thing to deploy in the corporate environment but if you're trying to scale that with an enterprise. If the enterprises look for added features for their security, whether it's persistent storage and again the focus always turns into what can you do to help drive the total cost of ownership down. I think with Red Hat this is one thing that works great with Open standards. The focus is really much more around not just the simplicity, reducing costs, it's also about improving performance. Rather it's the physical virtual environment. So, you're right, the menu of services. Whether it's you talking about IOT Use Scape and I think you going to see more and more of that with the user experience, the focus that we talked about. Context of our apps. I use the example of going to the airport, getting into whatever transportation you using these days, but the point from point A to point B, you're no longer fumbling through cash or credit cards. It's a very easy experience, much more personalized much more usable and a lot of what some of the hospitality franchises are doing, whether you look at Starwood Properties, Marriott. Now you use a mobile device to access your room, and as soon as you get into some of the hotel property, as soon as you access their Wifi coverage all of a sudden you can actually, the hotel property picks you up. They can provide you with the navigation, how to get to your room and depending on your profile, and whether you opted in or opted out, they will push and their partners will push some specific services to you. So, how you are able to create that kind of experience and drive additional revenue and all that is possible to the point he just make, it's truly a flourishing eco-system of micro services and apps driven by the-- >> I think that business now seeing that which is great about that having a clear line of site that these new apps and new experiences is going to drive top line revenue for your customers. I got to ask you about the services now. With more services comes more delivery, right? So, options, ecosystems, you guys have a pretty big ecosystem right as a lot of other providers. You guys always worked will with multiple companies. How are you guys engaging with Pointnext with now new sets of service providers and your network. You got Cloud Service and you have someone actually maybe could be an intergrater, could be a software developer. How do you deal with this new stake holder in your equation? >> After all the spin mergers have been completed now and I think after DXC1 it really open up the door to get a lot of the system (mumble) back on the table because they don't really view us as competitor anymore. Because we no longer have a large the EDS acquisition that we had now the DXE. So whether you look at Accenture or whether you look at Deloitte and the other (mumble) we're actually partnering with them very well both in joint submission creation but also when we talk about true additions transformation for our client a lot of expertise they bring to us is very complimentary to what we have. So one of the thing we do very well is really around the technology advisor services. (mumble) bring more of the business advisory services as well as the specific vertical depth around the specific vertical whether it's emphasized retail. So when somebody talking about retail of the future or something like that. You marry the two together and you have a strong value proposition. I think the area that we have to put a lot more emphasis upon is more around program management, and because now you actually are trying to show that one outcome for the client, so it's very important whether you working with the ISB or whet ever you working with DSI or whether you working with the other intergraters, and your own resources how you going to bring that pool together around specific tracks and deliver a one common objective for the clients? The Program Manager plays a huge role in this process. >> For the folks watching. What should they know about HP Pointnext that they many or may not know about or should know about that that highlights what you guys are doing. Can you simplify, what is the value proposition that Pointnext is bring to customers? >> As the brand itself states, the Pointnext, it's really about working with the clients finding what's next in their journey. One of the thing I would say and a lot of people get surprised by this, even with after all the spin merge. We are twenty-five thousand people plus strong and we have a lot of great and deep appreciation when it comes to some of these solution and one thing we do very well is partner. Whether it's Red Hat and other SI and bring some unique innovative solution to the market and one of the thing Jim talked about here is all about accelerating user driven innovation, and when you take a look at some of the use cases we're rolling out and I talked about the analytics and the one AI project and how we're helping manufacturing clients or other use cases to truly analyze patterns and predict failures and increase productivity. These discussions customers truly trust us. With the (mumble) and CTP acquisitions we no longer just having On-Premise discussions. We have a strong public hard knowledge. It doesn't matter whether you cloud journey involves AWS, Google, Azure and what not. We are able to actually provide a very objective road map for the workload strategy and the transmission journey. >> The users in the communities as Jim pointed out in the meeting yesterday. The communities in Open Source are now also your customers. >> Right. >> So your customers are also participating in these projects upstream. Are you guys doing an Open Source work? What Pointnext doing? Are you guys relying on that community? Is there a crossover between your customers and those users in the Open Source community? >> Yeah, we always had a very strong (mumble) with the Open Source community. We contributed a lot to the Open Source communities and if you take a look at now as we working with the number of this next generation of partners, whether it's darker, scale it and Red Hat and others it's truly opened up the boundaries as to what can we push to drive new kind of solution there. I love what some of the speakers said yesterday. You remember the example from the Boston Children's Hospital where they talked about they didn't want to deal with the complexity, they'd rather focus on what they do best and so one of the thing we're focused on in the Open Source Continuity is the driving more standardization and automation. So you can run applications as scale. You can run analytics as scale. I think those are somethings we can bring to the table. >> Great! You know the thing about what's going on now with these abstraction layers is an opportunity to create new services and accelerate the services, and congratulations. Great to have you on the program. Thanks for sharing the update. >> Absolutely! >> Congratulation on your deep partnership with Red Hat. Go to see HP Pointnext doing well. Thanks for coming on. >> Thank you so much. >> Live coverage here in San Francisco California. Red Hat Summit 2018 will continue. I'm John Furrier John Troyer. Stay with us more coverage after this short break. >> (electronic music) >> Often times a communities all ready know about facilities that are problematic, because they smell it, they see it but

>> Announcer: Live from Orlando, Florida it's the Cube covering Servicenow Knowledge 17. Brought to you by Servicenow. (electronic music) >> Welcome back to Orlando everybody. This is the Cube, the leader in live tech coverage. I'm Dave Alante with my cohost Jeff Frick. Mark Toludo is here with Patrick Stonelake, cofounders of Fruition Partners now, a DXC company. Welcome to the Cube, Mark you were one of the first SIs that we ever met in the Servicenow ecosystem, acquired by CSC and now the spin merge with HBE, explain it all, how'd you get here? >> Yeah well that's great so we really grew up in the Servicenow ecosystem, right. That's where really Fruition became really what it was and is. CSC came 2015 so they came, acquired us, we became Fruition Partners with CSC brand. CSC then did an acquisition of UXC, a very large SI out of Australia and with that was Keystone, probably now the largest Servicenow system in the greater Australia so they came into our practice as the Fruition Partners Australia brand. We then went out under CSC and did another acquisition in mainland Europe Aspediens. They covered Switzerland, France, Germany, and Spain. And so now they're the Fruition Europe end. So we still have this Fruition practice inside of CSC at the time and then the HP enterprise services so that's only the EDS group, the services group, not the hardware or software group. So then they choose to spin merge with CSC and form DXC. So we're still the Servicenow practice Fruition Partners DXE technologies company so all the Servicenow, everything you're seeing, that's what we're enabling for customers. >> Now Patrick, how did that all affect the go to market? >> It enables us to be more global right. Part of the reasons why we acquired these companies and continue to look to do so is our customers are demanding from us a very consistent, boots on the ground experience, multiple languages, but all running the same methodologies, running the same accelerators and getting them to the finish line at the same time. So DXC and the kind of checkbook and influence of DXC has really helped us do our part in consolidating that market. But what I think we've really just started to scratch the surface of is how we can empower DXC as you know kind of become the engine that runs the nine major offerings of DXC and start to get service now into support of those offerings, modernize them, make them more efficient, and make them more attractive to customers. >> You guys were early on, you know we've talked about this in the past, kind of placed your bets, paid off. Is this sort of work flow automation the next big thing? It seems now that everybody's glomming onto it. >> Yessir. >> Is it and why now? And where do you see it going? >> So we see this, as Patrick mentioned, DXC has nine service offering families, right and that includes like big data, cyber, vertical applications, certainly the outsourcing business is still significant. But what we're seeing is Servicenow is this workflow backbone middleware that kind of connects us all. So we have the DXC offering family leads coming to us and saying listen we understand that Servicenow can do ITOP for a business process orchestration, we understand it has a SECOPS component, so now we have an ISECOPS offering. So they're seeing that Servicenow is kind of the glue to bring together these various offerings and it helps us go from our traditional relationship with the IT department to now branching out into HR, into security, into that CSM space. Even in the business process automation space, that can be claims process. The total business functions that are automated by this work flow, it's not just the work flow itself, it's that the work flow ties into the other silos so that it's not just email, it's actually intelligent email, intelligent routing. So we see it as the glue to keep all these offerings together. >> And then you guys are starting to build solutions on top of a Servicenow platform and go to market with the solution, versus you already have Servicenow, we're going to be a kind of typical consultant and help you do best practices, et cetera. >> Exactly, you know it's kind of a combination of the two. But I think the best way to think about it is that Servicenow is doing its best to be as horizontal across the enterprise as possible, right? Security is a really excellent example of a place where Servicenow is a natural fit, you connect the cycle with security and IT. But one of the things that we're looking to do is to bring the industry expertise of DXC to some of these Servicenow enabled solutions. Mark talked about our ISECOP solution, which is horizontal managed security services. But we debuted yesterday that we're going to be working with Servicenow and their catalyst program around a healthcare splinter of ISECOPs because there are all kinds of uniquely healthcare provider oriented security concerns that the actual thought leadership and the knowledge of the cyber consultants at DXC really bring a lot to the table. So we could build a solution in conjunction with Servicenow. They rely on us for the industry expertise, and they just keep that security piece humming and up to date and locked in with the rest of the platform. >> You know we have another offering, just to add to that, is out of Europe, one of the consulting groups said environmental health and employee health and safety in manufacturing plants. They said listen there's a product out there in the marketplace, can you do something better or different using the Servicenow platform? So we actually took that subject matter expertise from DXC consulting experience, we've married that with our Servicenow expertise and we actually have another product that we're going to market with. It's an employee health and safety, for manufacturing plants, for slip and fall, for any environmental concerns, any of the safety issues that they have. But that's really combining industry and vertical expertise with Servicenow. >> And that shows somebody might not even know they're buying Servicenow, right. (crosstalk) >> You're essentially OEMing the platform. >> That's what we would like to get to. >> You're not there yet. >> I think there's a lot of, we have a lot of we sell a stand alone on top of a Servicenow platform and it gets built. Tony Beller who's the new GP Alliances coming in with a lot of force, environment experience, and I think he's really charging with some of the bigger partners like us to really lock down that OEM because I think that's where we get a lot of leverage for Servicenow and our customers essentially want to consume as they need it and that makes a lot of sense. >> And are you reselling Servicenow in that solution offering so that they don't have a separate relationship with Servicenow, it's all integrated into that. >> Exactly, yup. >> Correct. >> And do you guys use Servicenow internally? >> We do, yeah. Ourselves we've been big drinkers of the champagne as they say for a really long time. We have a number of systems we use to run our professional services organization. But DXC, particularly in the area of asset management, some of the real ROI driven pieces of IT is taking a very hard look at the successes they've had there and trying to figure out how we can enable that success in the rest of the organization. Purchasing, project management, you know, these are things that I think we're going to do internally and then start to share results with our customers. >> Well we also have something called My Order Style, so there actually is how we do manage service provider outsourcing relationships that's built on Servicenow. And we do that internally as well, so basically when we get support or when we need support for our equipment, whatever, worldwide, that's being logged and tracked in Servicenow. >> And in Servicenow you clearly have very strong messaging around we start with IT, IT service management and then ITOM and then moving into the lines of business. How rapidly are you seeing that in your customer base? And maybe add a little color to that. >> I think we're trying to accelerate that. >> Yeah. >> I think what we're seeing is a shift as infrastructure goes to the cloud, as the IT department moves away from being the T of technology and more the information side, that they're starting to realize this role as more of a service management organization because oftentimes the applications that they're supporting are coming from a third party if it's Servicenow, if it's Work Bay, if it's Sales Force, but they can be the glue that holds it together. They can worry about the releases, the data hierarchy, but it's that IT as they are reinventing themselves. They see themselves going out towards those other departments towards HR, towards CSM, towards field service and saying we actually have a solution we want to bring to you. >> I got to ask you guys, as a consultancy, complexity is your friend. You know when things are chaotic it's like call you guys and solve the problem, but at the same time, you hear from a lot of Servicenow customers, we're trying to minimize the customization, custom modifications. >> Patrick: Yes. >> Mark: Right. >> Is that antithetical to the way you guys typically do things? >> It shouldn't be I don't think. I mean we don't want to do as much work as possible in one project, we want to deliver value over the course of many, many transactions that are shorter in duration. And so the more we can stick to the configurable aspect of Servicenow, the better off we're going to be and the better off our customers are going to be. They'll take releases more smoothly and so forth. And what you can do with configuration and app scoping is really, it's a whole other level than what it was five years ago so we're actually starting to fulfill that promise. >> And so if you can build value on top of the platform using the platform, >> That's the point, yeah. >> Those functions beget the advantage of the upgrade. >> Yeah I would look at this and say when Fruition really got going is when we really embraced Servicenow, not just the technology, but the methodology. Because we knew a lot of other service providers, they want a two year project, they want that SAP three year whatever it was. But we embraced the methodology and said that if we can't show results in four to five months using this technology, we're not going to be invited back. But look at today, we have 400 customers worldwide, about 70 percent of those make up our annual bookings again for the next project and the next project because they see value in these increments and we're delivering that. So I would rather not elongate projects, they need to see things very fast. >> Awesome, guys congratulations, I love your story, and Mark you got to present to the financial analyst group yesterday so well done. Thanks for coming on the Cube. >> Thank you very much. >> Thank you for having us. >> Keep right there buddy, we'll be back with our next guest right after this.