>>Yeah, >>from The Cube Studios in Palo Alto and Boston. It's the Cube covering IBM. Think brought to you by IBM. >>Everybody welcome back. This is Dave Vellante, and you're watching the Cube's coverage of IBM. Think 2020 the digital version of IBM, thinking the Cube is pleased to be providing the wall to wall coverage, as we have physically. You know, so many years at big IBM events Spaces. Man test is here. He's the managing partner for global strategy for IBM and the Global Business Services. Jesus, great to see you. Thanks for coming on. >>Great to be here, Dave. >>So every guest that we've talked to this week really? We've talked about Cove it, but just briefly Ah, here. We're going to do a big drill down and really try to get Jesus, your perspectives and IBMs Point of view on what's going on here. So let me start with We've never seen anything like this before, Obviously. I mean, there are some examples going back to 1918. Try to get some similarities. But in 1918 was a long, long time ago. So So what's different about this? What are the similarities? >>Yeah, it's Ah, >>you know what Mark Point used to say? That history doesn't repeat, but it often rights, I think that are similar interests off what we're experiencing right now in this pandemic with Father from that makes like Spanish blue. I think the situation is unique in terms off the I'm the synchronicity of that impact. Right? So we can go back while they're everyone economic crisis or our society crisis where you have either one country of one aspect being disrupted. But this is really a society being disrupted, you know, on a global scale. So it impact is unprecedented in that in that perspective, in more than time. And I think all of us are adjusting to it. We upgrade 170 countries, so we've been able to see if you want every element of the curve off this convenient right? So from from getting back to a new normal, that is happening already in China and some of the countries in Asia Pacific to being just kind of like coming over the peat in Europe, North America, to some of the emerging countries where they're coming up. So so it gives the thing, gives us up what business continuity means and the importance of being prepared for this. I think it gives us a perspective on the health aspect of it as well as the economic impact. And most importantly, we've been very focused on aside the end. I don't have a lot of clients is figuring out what are they going to return back to when we say we want to return to work? I think is, what are we returning to? What are going to be the permanent changes? Where's the adaptation that is gonna be systemic and permanent? >>I want to ask you about digital transformation because I've made the point that, you know, while a lot of people talk digital transformation, there's been a lot of complacency. >>Digital transformation five months ago was about obtaining our competitive advantage on digital transformation. Today, in many industries, it's about survival, That is, that is how big of a change it is, the the need for efficiency and cost savings. We need local resiliency that we have talked about. They need to be able to drive agility, to be able to switch and about. They need to make hyper local decisions right to use data none of that can be done unless you have fully digitize processes. You are consuming local data and you have to train the people to really, um, operate in those new, more intelligent processes. So it has gone from Optionality is okay. You can do okay, But if you digitize your going to do better to, unless you digitize >>your business may not access next year. >>I've been just change the changes. I think now is widely understood that the majority of our digital digitization processes have to be accelerated. And I would say that is ah, great statistic that when we go back in history, Andi has been many. As I mentioned off this crisis, you can look back. The two >>behaviors that businesses have one is to play defense funding. What happens two years later on the other one is okay, you defense. But you immediately switched to offense and then what happens? Uh, two years later, those companies that use this time to just defend and hunker down history said in a couple of years later, 21% of them out there, But those businesses that they shift from defense to offense and actually accelerate in this case is, um, uh, programs like digitalization. 37% outperform. So very sad screaming for businesses that right now actually immediately switched to offense. Focus on this set of digitalization and empowering cloud managing data, ensuring the skills of the people. They're more likely not only to survive but thrive in the next three years. That don't just use this time >>to your point. It's about survival. It's not about, you know, not getting disrupted because you're going to get disrupted. It's almost a certainty. And so, in order to survive, you've got to digitally transform your final thoughts on digital transformation that I want to ask you. If there's a silver lining and all this, >>I think what we do, we can't change the conference. Um, but we cannot let the conflicts define who we are. Either It's individuals for this company. Well, we can do is to choose How do we act on that? I would say, um, those organizations and those individuals that take advantage of inspiration to understand that some of these behaviors are going to change, understand that the more that we should technology to the cloud, the more that we should workloads to the cloud, the more that we use technologies like artificial intelligence on Dr Nonlinear decisions that massively optimize everything we do from the way that we deliver healthcare to the way that we have managed supply change to the way that we secure food, frankly, to the way that we protect the environment that is a silver lining, that technology. It is one of those solutions that help in all of these areas, and the silver lining of this is is hopefully, let's use this time to get better, prepare for the next academia to get better, prepare for the next crisis. To implement technologies that drive efficiency faster. They create new jobs, they protect the environment. And what we cannot change The fact that we have 19 we can change. What happens after the 19. So we return to is something better than what we enter before. >>Very thoughtful commentary. Jesus, Thank you so much for coming on the cube. A blessing steer to your family and yourself. >>Appreciate it, Dave. Thank you. And thank you for everything You do too Well. Kept everybody informed. >>Really? Our pleasure. And thank you for watching everybody. This is Dave Vellante. you're watching the Cube's coverage of IBM. Think 2020. The digital event Right back. Right after this. Short break. >>Yeah, yeah, yeah, yeah.

>>Yeah, >>from The Cube Studios in Palo Alto and Boston. It's the Cube covering IBM. Think brought to you by IBM. >>Everybody welcome back. This is Dave Vellante, and you're watching the Cube's coverage of IBM. Think 2020 the digital version of IBM, thinking the Cube is pleased to be providing the wall to wall coverage, as we have physically. You know, so many years at big IBM events Spaces. Man test is here. He's the managing partner for global strategy for IBM and the Global Business Services. Jesus, great to see you. Thanks for coming on. >>Great to be here, Dave. >>So every guest that we've talked to this week really? We've talked about Cove it, but just briefly Ah, here. We're going to do a big drill down and really try to get Jesus, your perspectives and IBMs Point of view on what's going on here. So let me start with We've never seen anything like this before, Obviously. I mean, there are some examples going back to 1918. Try to get some similarities. But in 1918 was a long, long time ago. So So what's different about this? What are the similarities? >>Yeah, it's Ah, >>you know what Mark Point used to say? That history doesn't repeat, but it often rights, I think that are similar interests off what we're experiencing right now >>in this pandemic with father from that makes like Spanish blue. I think the situation is unique in terms off the I'm the synchronicity of that impact. Right? So we can go back while they're everyone economic crisis or our society crisis >>where you have either one country of one aspect being disrupted. But this is really a society being disrupted, you know, on a global scale. So it impact is unprecedented in that in that perspective, in more than time. And I think all of us are adjusting to it. Um, one of the points of view. Um, we've been able to if you want curate this. IBM is we upgrade 170 countries, so we've been able to see if you want every element of the curve off these convenient, right? So from from getting back to a new normal, that is happening already in China and some of the countries in Asia Pacific to being just kind of like coming over the peat in Europe, North America to some of the emerging countries where they're coming up. So so it gives thing gives us up what business continuity means and the importance of being prepared for this. I think it gives us a perspective on the health aspect of it as well as the economic impact. And most importantly, we've been very focused. Nous ous IBM. I don't have a lot of clients is figuring out What are they going to return back to when we say we want to return to work? I think is, what are we returning to? What are going to be the permanent changes? Where's the adaptation that is gonna be systemic and permanent? I'm not going to be just like, you know, we're going to get through this way. >>Whenever we had a CIO tell us that they weren't ready from a business resiliency business continuity standpoint, they said, we're we were all d are focused, very narrow. Uh, and wow, we really need to rethink that kind of another myth. Your thoughts on that? >>Correct. I think you go back the last three years. Business continuity in most of the decisions that binds would do, I would say I check on the box, right? So he was assumed that you needed to have a business. Continuity was heavily focused on disaster recovery that it was. He must evaluate it under the expectation that it decides there really happens that has now changed permanently, or at least for the foreseeable future, where business continuity is not a check on the box is actually a differentiating feature. And the differentiating feature comes from the fund that on now every one of our fines were prepared. Now every one of our competitors was prepared to the changes, the agility, the efficiency on if you want. The cloud ification of your business is the ability to provide the services in the face of a crisis that forces people to be socially distant, forces people to have to deliver from home. So that has actually become a much >>more important criterion buying decision. So So we, uh, fortunately, we have support very well in that we have 95% of IBM employees. I work from home in 99% of our global delivery centres on network is work from home. And we made that shit even before some of the country's declare that it was a stay at home or so. So that has Bean a feature that now our clients are appreciated. We've been able to to deliver those services so our clients could continue to deliver their services and going forward. I think that's gonna be a much more important if you want. A feature is how cloud ified is your delivery. How prepare are you? Not for just one crisis, but to make, probably subsequent crisis something normal, that one disrupt your operation? You just adapt. >>It's interesting. I had a conversation earlier with Ed Walsh, was one of your GM, said one of your hardware divisions. And and And he was explaining to me that, you know, across your 170 plus countries, you know, it was really the local supply chain. And he actually made the point detection really good quarter in Italy, which surprised me and he said, but they were sort of micro managing at the local level to your to your point. I want I want to ask you about digital transformation because I've made the point that, you know, while a lot of people talk digital transformation, there's been a lot of complacency because they're not in my lifetime where we're a bank. We're making a lot of money. We're doing okay. How do you think over 19 will sort of change that complacency and really accelerate digital transformation is a mindset and actually turn it into action? >>Yeah, I think the best way to put it is, um, digital transformation. Five months ago, it was about obtaining a competitive advantage on digital transformation. Today, in many industries, it's about survival. That is, that is how big of a change car it is. The the need for efficiency and cost savings, the need for resiliency that we have talked about. They need to be able to, um, to drive agility, to be able to switch and about. They need to make hyper local decisions right to use data that none of that can be done unless you have fully digitize processes. You are consuming local data and you have to train the people to really, um, operate in those new, more intelligent processes. So it has gone from Optionality is okay. You can do okay, but if you digitize, you're gonna do better to. Unless you digitize your business may not access next year. I think just change the changes. I think now is widely understood that the majority of our digital digitization processes have to be accelerated. And I would say that is, ah, great statistic that when we go back in history, Andi has been many. As I mentioned off this crisis, you can look back. The two behaviors >>that businesses have one is to play defense funding. What happens two years later on the other one is you defense. But you immediately switched to offense. And then what happens two years later? Those companies that use this time to just defend and hunker down history said in a couple of years later, 21% of them out there for But those businesses that they shift from defense to offense and actually accelerate in this case is, um uh, programs like digitalization. 37% of perform so very sad premium for businesses that right now actually immediately switched to offense. Focus on this set of digitalization and empowering cloud managing data, ensuring the skills of the people. They're more likely not only to survive but thrive in the next three years that don't just use this thanks >>to your point. It's about survival. It's not about, you know, not getting disrupted because you're going to get disrupted. It's almost a certainty. And so, in order to survive, you've got to digitally transform your final thoughts on digital transformation that I want to ask you if there's a silver lining and all this. >>No, I think I mean, um, I'd say the final thoughts is this a sigh said is, I don't think anybody anybody would say that government in and the Christ World crisis that that comes, is is anything that anybody would wish for or would help for. But we can change. I mean, that is the reality it is here. It's impact. It's devastation. Um, I think the human toll that comes from that many families that are being impacted for that, um, you know, I think my my my heart goes to roll those families, my own family. It's in the Spain, one of the worst countries in the world that is being impacted for this. Um so it's ah, it's clearly a tragedy. I think what we do we can't change the company. Um, but we cannot let the conflicts define who we are. Either it's individuals for this company. Well, we can do is to choose How do we act on that pump it? I would say, um, those organizations and those individuals that take advantage of inspiration to understand that some of these behaviors are going to change on this time, that the more that we should technology to the cloud, the more that we should Workloads to the cloud the more that we use technologies like artificial intelligence on Dr Nonlinear decisions that massively optimize everything we do from the way that we deliver healthcare. So the way that we manage supply change to the way that we secure food, frankly, to the way that we protect the environment that is a silver lining, that technology. It is one of those solutions that help in all of these areas, and the silver lining of this is is hopefully, let's use this time to get better, prepare for the next academia to get better, prepare for the next crisis, to implement technologies that drive efficiency faster, they create new jobs, they protect the environment and what we cannot change the fund that we have 19. We can change what happens after the 19 So we return to there's something better than what we enter before. >>Very thoughtful commentary. Jesus. Thank you so much for coming on the cube. A blessing Steer to your family and yourself. >>Appreciate it, Dave. Thank you. And thank you for everything. You do too well, Keep everybody informed. >>Really? Our pleasure. And thank you for watching everybody. This is Dave Volante. You're watching the Cube's coverage of IBM. Think 2020. The digital event. Right back. Right after this. Short break. >>Yeah, yeah, yeah.