(upbeat music playing) >> Okay, now we're going to look deeper into the intersection of technology and money and actually a force for good mobile and the infrastructure around it has made sending money as easy as sending a text. But the capabilities that enable this to happen are quite amazing, especially because as users we don't see the underlying complexity of the transactions. We just enjoy the benefits and there's many parts of the world that historically have not been able to enjoy these benefits. And the ecosystems that are developing around these new platforms are truly transformative. And with me to explain the business impacts of these innovations is all a person who was the head of mobile financial services at Ericsson Allah. Welcome to the program. Thanks for coming on. >> Thank you, Dave. Thank you for having me here in the program. And they're really excited to tell me tell us about the product that we have within Ericsson. >> Well, let's get right into it. I mean your firm has developed the Ericsson wallet platform. What is that plan? >> Yes. The wallet platform is one of the product but being, you can say offer here by Erickson and the platform is built on enabled financial services not for only the bank segment, but also for the unbanked. And we have, the function that we are providing a such here is both transfer the service provider payment. You have the cash in the cash out you have a lots of other features that we kind of enable through the ecosystem as such. And I would really like you say to emphasize on the use. And they're the really, I would say connectivity that we have in these platform here, because looking at you can say the pandemic assaults here. Now we really have made, you can say tremendous Shane here through all the function, et cetera feature that we have here. >> Yeah. And I mean, I I'm surrounded by banks in Massachusetts. No problem. I'm in Boston, right? So, but there's a lot of places in the world that aren't I take for granted some of the capabilities that are there, but part of this is to enable people who don't have access to those types of services. Maybe you could talk about that and talk about some of the things that you're enabling with the platform >> Right? You just think of there you can say unbanked people here but we have across the emerging market. I think we have 1.7 billion unbanked people here but we actually can through one of the path from enable proof getting a bank account, et cetera, and so on here. And what we actually providing, you can say in, in this in this feature rates here is that you you can pay your electricity bill. For example, here, you can pay your bill and you can go through merchant, you can do the cash out. You can do multiple thing here, just like, I mean, to enable the, the departure that financial inclusion that we have. So, I mean, from my point of view, where we see things, as I said we also sit in Sweden, we have bank account we have something called swish where we send you can say money back and back and forth between the family, et cetera. On these type of transaction, we can have enable for all. You can say the user better come across the platform here and the, the kind of growth that we have within this usage here. And we seeing also, I mean we leverage here to get with a speed today on a fantastic scale that we actually have here with I would say are both, you can say feature performance going I will say re really in the direction. But we couldn't imagine here. You can say a few years back here. It is fantastic transformation but we undergo here through the platform of the technology that we have. >> No, it reminds me of sort of the early days of mobile people talked about being able to connect remote users in places like Africa or other parts of the world that haven't been able to enjoy things like a land line. And I presume you're seeing a lot of interest in those types of regions. Maybe you could talk about that a little bit. >> Yeah. Correct. I mean we see all of these region here about, for example, now we not only entering, you can say the specifically the Africa region but also you can say the middle East and the Asia Pacific and also actually Latin America. I mean, a lot of these country here, all looking into you can say the expansion, how they can evolve you can say the financial inclusion from what they have today, when they are, and you can say from telco provider, they would like to have an asset of different use cases here. And we're seeing that transformation, but we have right now from just voice, you can say SMS and 5G, et cetera. This is the platform that we have to sort of enable the transaction for a mobile financial system. But we would like also to see about the kind of operator or bond being the business with much more features here. And this is another, you can say, I was attraction to attract the user where the the mobile transfer system. We see these kind of expanding very heavily in these, these kind of market. >> I think this is really transformative, not, I mean in terms of people's lives. I mean, your first of all, you're talking about the convenience of being able to move money as bits as opposed to paper, but as well I would think supporting entrepreneurship and businesses getting started, I mean, there's a whole set of cultural and societal impacts that you're having. How do you see that? >> Yeah. We also provide the, you say, I mean is also supporting, say micro loans and need as an entrepreneurial sort of stock. You can say any kind of company. You need to get off these, this around here. We have seen that we have a of enterprise. Those is a cross functional, the whole asset that we are, that we are oriented today. >> Talk a little bit about partnerships and ecosystems. I know you've got big partnerships with, with HPE. We're going to get to that. They're kind of as a technology provider, but what about, other partnerships like I'm imagining that if I'm going to pay my bill with this you've got other providers that got to connect into your platform. How are those ecosystem partnerships evolving? >> Well, are kind of enabler about we are providing to the operator. The partnerships is then going through the operator. It could be any kind of you can say external instrument that we have today and they can know if you can go directly to that to the bank, you can go directly to any core provider. You have these most et cetera, so on but these are all partners would be in. You could say connected through there. You can say, operate through a subsidy. What we doing actually with our platform is to kind of make the navel and to kind of provide the food ecosystem as partnership to operate a SAS today here. That's kind of the baseline that we see how you can say. We are sort of supporting of building the full ecosystem around the platform in order to connect here. Wells come to both the light, the cord as I said, here, the merchant, the bank, any kind of, type of, you can say I would say service provider here but that we can see could enable the ecosystem. >> Okay. And I don't want to geek out here but it sounds like it's an open system that my developers can plug into through APIs. They're not going to throw cold water on it. They're going to embrace it and say, Oh yeah this is actually easy for me to integrate with. Is that correct? >> Correct. Correct. And the open API that we actually are providing today I think that you can say there are thousands of you can say developer, just you can say connecting to our system. And actually we also providing both sandbox and Ann Arbor. You can see the application in order to support this to developers in order to kind of create this ecosystem here. It's a multiple things that we see through what you can say here, they're both the partners partnership, the open API, or you can say that the development that is doing for prudent channels. So, I mean, it's an fascinating amazing development that we'll see our frontier right now. >> Now what's HP's role in all this, what are they providing? How are you partnering with them? >> It's very good question. I will say. And we look back, you can say, and we have evaluate a lot of you say that the provide the fruit year here and you can just imagine the kind of stability that we need to provide when come to the financial inclusion system here because what we need to have a very strong uptake of making sure that we don't both go with the performance and the stability. And what we have seen in our lab is that the partnership with HP have domestically evolve. Our, you can say our stability assessed on the system. And right now we are leveraging the Dockers with the microservices here to get with HB on the platform that you're providing. I would say that the transformation we have done in disability, but we have get through the food. You can say HP system is, is really fantastic at the moment. >> I'm no security expert, but I talked to a lot of security experts in what I do know is they tell me that, that you can't just bolt security on. It's going to be designed in from the start. I would imagine that that's part of the HPP partnership but what about security? Can I fully trust this platform? >> No, it's very valid question. I will say we have one of the most you can say secure system here we also running multiple external. You can say a system validation data it's called the PRD assess certification is a certification but we have external auditor. You can say trying to breach the system look at the process that we are developing making sure that we have, you can say, or off you can say the documentation really in shape. And seeing that we follow the procedure when we are both developing the code. And also when we look into all the API that we actually exposed to our end users. I would say that we haven't had any breach on our system. And we really work in tightly. I would say both to get with, I would say HP and the of course the customers out and every time we do a low once, we also make you can say final security validation on the system here in order to sort of see that we have an end to end because the application, but it's completely secure. That's a very important topic from our point of view. >> There's a usual, I don't even want to think about that. Like I said, up front it's going to be hidden from me all that complexity, but it's sort of same question around compliance and privacy. I an often, security, privacy there's sort of two sides of the same coin, but compliance privacy you've got to worry about KYC, know your customer. There's a lot of complexity around that. And that's another key piece. >> Now, like you said, the KYC is an important part that we have food support in our system. And then we validate you can say all the users, we also are running you can say without credit scoring companies, the you can say operator or partnering with, his combined you can say with both the KYC and the credit scoring that we are performing, that's make us a very you can say unique, stable platform and such. >> Last question is, what about going forward? What's the roadmap look like? What can you share? What should we expect going forward in terms of the impact that this will have on society and how the technology will evolve? >> Well, what is he going forward? That's very interesting question because what we see right now is how we kind of have changed the life for so many. You can say unbanked people here, and we would like to have you can say any kind of assets that going forward here, any kind of you can see that the digital currency is evolving through both government. You can see over the top players like Google you can say WhatsApp, all of these things here. We want to be the one that also connecting. You can say these type of platform together and see that we could be the heart of the ecosystem going forward here, independent in what kind of, you can say customer we aiming for. I will say this is kind of the role that we will play in the future here, depending on what kind of currency it would be. It's a very interesting future. We see with this you can say overall digital currency, the market and the trends that we are now right now evolving on. >> Very exciting. And we were talking about elevating, potentially billions of people, all... Thanks very much for sharing this innovation with the audience and best of luck with this incredible platform. Congratulations. >> Thank you so much, Dave. And once again, thank you for having me here. And I'll talk to you soon again. Thank you. >> Thank you. It's been our pleasure and thank you for watching. This is Dave Vellante. (upbeat music playing)

>>Good afternoon everybody. I'm John Walls and welcome back to our coverage here on the cube of AWS Reinvent 22. We are bringing you another segment with the Global Startup Program, which is part of the AWS Start Showcase, and it's a pleasure to welcome two new guests here to the showcase. First, immediately to my right Han w lre. Good to see you Han. Good to see you. The leader of the Enterprise Solutions Architecture at aws. And on the far right, Rolin Lee, who is the co-founder and CEO of Heim Doll Data. Roland, good to see you. Great >>To be here. >>All right, good. Thanks for joining us. Well first off, for those at home, I may not be familiar with Heim Doll. What do you do? Why are you here? But I'll let you take it from there. >>Well, we're one of the sponsors here at AWS and great to be here. We offer a data access layer in the form of a proxy, and what it does is it provides complete visibility and the capability to enhance the interaction between the application and one's current database. And as a result, you'll, the customer will improve database scale, database security and availability. And all these features don't require any application changes. So that's sort of our marketing pitch, if you will, all these types of features to improve the experience of managing a database without any application >>Changes. And, and where's the cloud come into play then, for you then, where, where did it come into play for you? >>So we started out actually helping out customers on premise, and a lot of enterprise customers are moving over to the cloud, and it was just a natural progression to do that. And so aws, which is a key part of ours, partners with us to help solve customer problems, especially on the database side, as the application being application performance tends to have issues between the interaction between the application database and we're solving that issue. >>Right. Sohan, I mean, Roan just touched on it about OnPrem, right? There's still some kickers and screamers out there that, that don't, haven't bought in or, or they're about to, but you're about to get 'em. I, I'm sure. But talk about that, that conversion or that transition, if you would, from going OnPrem into a hybrid environment or to into the, the bigger cloud environment and and how difficult that is sometimes. Yes. Maybe to get people to, to make that kind of a leap. >>Well, I would say that a lot of customers are wanting to focus more on product innovation experimentation, and also in terms of having to manage servers and patching, you know, it's to take away from that initiative that they're trying to do. So with aws, we provide undifferentiated heavy lifting so that they can focus on product innovation. And one of the areas talking about Heim is that from the database side, we do provide Amazon rds, which is database and also Aurora, to give them that lift so they don't have to worry about patching servers and setting up provisioning servers as well. >>Right. So Roland, can you get the idea across to people very simply, let us take care of the, the hard stuff and, and that will free you up to do your product innovations, to do your experimentations to, to really free up your team, basically to do the fun stuff and, and let us sweat over the, the, the details basically. Right? >>Exactly. Our, our motto is not only why build when, when you can buy. So a lot of it has to do with offering the, the value in terms of price and the features such as it's gonna benefit a team. Large companies like amazon.com, Google, they have huge teams that can build data access layers and proxies. And what we're trying to do here is commercialize those cuz those are built in house and it's not readily available for customers to use. And you'd need some type of interface between the application and the database. And we provide that sort of why build when you can buy. >>Well, I was gonna say why h right? I mean what's your special sauce? Because everybody's got something, obviously a market differentiator that you're bringing into place here. So you started to touch on a little bit there for me, but, but dive a little deeper there. I mean, what, what is it that, that you're bringing to the table with AWS that you think puts you above the crowd? >>Well, lemme give you a use case here. In typical events like let's say Black Friday where there's a surge traffic that can overwhelm the database, the Heim doll data access layer database proxy provides an auto scaling distributed architecture such that it can absorb those surges and traffic and help scale the database while keeping the data fresh and up to date. And so basically traffic based on season time of day, we can, we can adjust automatically and all these types of features that we offer, most notably automated query caching, ReadWrite split for asset compliance don't require any code changes, which typically requires the application developer to make those changes. So we're saving months, maybe years of development and maintenance. >>Yeah, a lot of gray hairs too, right? Yeah, you're, you're solving a lot of problems there. What about database trends in just in general Hunt, if you will. I mean, this is your space, right? I mean, what we're hearing about from Heindel, you know, in terms of solutions they're providing, but what are you seeing just from the macro level in terms of what people are doing and thinking about the database and how it relates to the cloud? Right. >>And some of the things that we're seeing is that we're seeing an explosion of data, relevant data that customers need to be able to consume and also process as well. So with the explosion of data, there's also, we see customers trying to modernize their application as well through microservices, which does change the design patterns of like the applications we call the access data patterns as well. So again, going back to that, a differentiated heavy lifting, we do have something called purpose built databases, right? It's the right tool for the right purpose. And so it depends on what their like rpo, rto their access to data pattern. Is it a base, is it an acid? So we want to be able to provide them the options to build and also innovate. So with that, that's why we have the Amazon rds, the also the, we also have Redshift, we also have Aurora and et cetera. The Rediff is more of the BI side, but usually when you ingest the data, you have some level of processing to get more insight. So with that, that's why customers are moving more of towards the managed service so that they can give that lift and then focusing on that product and innovation. Yeah. >>Have we kind of caught up or are we catching up to this just the tsunami of data to begin with, right? Because I mean, that was it, you know, what, seven, eight years ago when, when that data became kind of, or becoming king and, and reams and reams and reams and all, you know, can't handle it, right? And, and are we now able to manage that process and manage that flow and get the right data into the right hands at the right time? We're doing better with that. >>I would say that it, it definitely has grown in size of the amount of data that we're ingesting. And so with the scalability and agility of the cloud, we're able to, I would say, adapt to the rapid changes and ingestions of the data. So, so that's why we have things like Aurora servers to have that or auto scale so they can do like MySQL or Postgres and then they can still, like what you know, I'm trying to do is basically don't have to co do like any code changes. It would be a data migration. They still use the same underlying database on also mechanisms, but here we're providing them at scale on the cloud. >>Yeah. Our proxies, they must have for all databases. I mean, is that, is that essential these days? >>Well, good question John. I would say yes. And this is often built in house, as I mentioned, for large companies, they do build some type of data access layer or proxy and, or some utilize some orm, some object relational map to do it. And what again, what we're trying to do is offer this, put this out into the market commercially speaking, such that it can be readily used for, for all the customers to use rather than building it from scratch all the time. >>You know what I didn't ask you was Roy, how does AWS come into play for you then? And, and as in the startup mode, the focus that they've had in startups in general, but in you in particular, I mean, talk about that partnership or that relationship and the value that you're extracting from that. >>The ad AWS partnership has been absolutely wonderful. The collaboration, they have one of the best managed service databases. The value that it that adds in terms of the durability, the manageability, what the Heim doll data does is it compliments Amazon rds, Amazon Redshift very well in the sense that we're not replacing the database. What we're doing is we are allowing the customer to get the most out of the managed service database, whether it be Redshift or Aurora Serverless, rds, all without code changes. And or the analogy that I would give John is a car, a race car may be very fast, but it takes a driver to get to those fast speeds. We're the driver, the Hyundai proxy provides that intelligence so that you can get the most out of that database engine. >>And, and Hfi would then touch on, first off AWS and the emphasis that you have put on startups and are obviously, you know, kind of putting your money where your mouth is, right? With, with the way you've encouraged and nurtured that environment. And they would be about Heim doll in general about where you see this going or what you would like to have, where you want to take this in the next say 12 months, 18 months. >>I think it's more of a better together story of how we can basically coil with our partners, right? And, and basically focusing on helping our customers drive that innovation and be collaboration. So as Heim, as a independent service vendor isv, most customers can leverage that through a marketplace where basically it integrates very nicely with aws. So that gives 'em that lift and it goes back to the undifferentiated heavy lifting on the Hein proxy side, if you will, because then you have this proxy in the middle where then it helps them with their SQL performance. And I've seen use cases where customers were, have some legacy system that they may not have time to modernize the application. So they use this as a lift to keep, keep going as they try to modernize. But also I've seen customers who use are trying to use it as a, a way to give that performance lift because they may have a third party software that they cannot change the code by putting this in there that helps optimize their lines of business or whatever that is, and maybe can be online store or whatever. So I would say it was a better together type of story. >>Yeah. Which is, there's gotta be a song in there somewhere. So peek around the corner and if you wanna be headlights here right now in terms of 12, 18 months, I mean, what, you know, what what next to solve, right? You've already taken, you've slayed a few dragons along the way, but there are others I'm sure is it always happens in innovation in this space. Just when you solve a problem you've just dealt or you have to deal with others that pop up as maybe unintended consequences or at least a new challenge. So what would that be in your world right now? What, what do you see, you know, occupying your sleepless nights here for the next year or so? >>Well, for, for HOMEDALE data, it's all about improving database performance and scale. And those workloads change. We have O ltp, we have OLA with artificial intelligence ml. There's different type of traffic profiles and we're focused on improving those data profiles. It could be unstructured structured. Right now we're focused on structured data, which is relational databases, but there's a lot of opportunity to improve the performance of data. >>Well, you're driving the car, you got a good navigator. I think the GPS is working. So keep up the good work and thank you for sharing the time today. Thank you. Thank you, joy. Do appreciate it. All right, you are watching the cube. We continue our coverage here from AWS Reinvent 22, the Cube, of course, the leader in high tech coverage.

>>We're back at Super Computing, 22 in Dallas, winding down the final day here. A big show floor behind me. Lots of excitement out there, wouldn't you say, Dave? Just >>Oh, it's crazy. I mean, any, any time you have NASA presentations going on and, and steampunk iterations of cooling systems that the, you know, it's, it's >>The greatest. I've been to hundreds of trade shows. I don't think I've ever seen NASA exhibiting at one like they are here. Dave Nicholson, my co-host. I'm Paul Gell, in which with us is Satish Ier. He is the vice president of emerging services at Dell Technologies and Satit, thanks for joining us on the cube. >>Thank you. Paul, >>What are emerging services? >>Emerging services are actually the growth areas for Dell. So it's telecom, it's cloud, it's edge. So we, we especially focus on all the growth vectors for, for the companies. >>And, and one of the key areas that comes under your jurisdiction is called apex. Now I'm sure there are people who don't know what Apex is. Can you just give us a quick definition? >>Absolutely. So Apex is actually Dells for a into cloud, and I manage the Apex services business. So this is our way of actually bringing cloud experience to our customers, OnPrem and in color. >>But, but it's not a cloud. I mean, you don't, you don't have a Dell cloud, right? It's, it's of infrastructure as >>A service. It's infrastructure and platform and solutions as a service. Yes, we don't have our own e of a public cloud, but we want to, you know, this is a multi-cloud world, so technically customers want to consume where they want to consume. So this is Dell's way of actually, you know, supporting a multi-cloud strategy for our customers. >>You, you mentioned something just ahead of us going on air. A great way to describe Apex, to contrast Apex with CapEx. There's no c there's no cash up front necessary. Yeah, I thought that was great. Explain that, explain that a little more. Well, >>I mean, you know, one, one of the main things about cloud is the consumption model, right? So customers would like to pay for what they consume, they would like to pay in a subscription. They would like to not prepay CapEx ahead of time. They want that economic option, right? So I think that's one of the key tenets for anything in cloud. So I think it's important for us to recognize that and think Apex is basically a way by which customers pay for what they consume, right? So that's a absolutely a key tenant for how, how we want to design Apex. So it's absolutely right. >>And, and among those services are high performance computing services. Now I was not familiar with that as an offering in the Apex line. What constitutes a high performance computing Apex service? >>Yeah, I mean, you know, I mean, this conference is great, like you said, you know, I, there's so many HPC and high performance computing folks here, but one of the things is, you know, fundamentally, if you look at high performance computing ecosystem, it is quite complex, right? And when you call it as an Apex HPC or Apex offering offer, it brings a lot of the cloud economics and cloud, you know, experience to the HPC offer. So fundamentally, it's about our ability for customers to pay for what they consume. It's where Dell takes a lot of the day to day management of the infrastructure on our own so that customers don't need to do the grunge work of managing it, and they can really focus on the actual workload, which actually they run on the CHPC ecosystem. So it, it is, it is high performance computing offer, but instead of them buying the infrastructure, running all of that by themself, we make it super easy for customers to consume and manage it across, you know, proven designs, which Dell always implements across these verticals. >>So what, what makes the high performance computing offering as opposed to, to a rack of powered servers? What do you add in to make it >>Hpc? Ah, that's a great question. So, I mean, you know, so this is a platform, right? So we are not just selling infrastructure by the drink. So we actually are fundamentally, it's based on, you know, we, we, we launch two validated designs, one for life science sales, one for manufacturing. So we actually know how these PPO work together, how they actually are validated design tested solution. And we also, it's a platform. So we actually integrate the softwares on the top. So it's just not the infrastructure. So we actually integrate a cluster manager, we integrate a job scheduler, we integrate a contained orchestration layer. So a lot of these things, customers have to do it by themself, right? If they're buy the infrastructure. So by basically we are actually giving a platform or an ecosystem for our customers to run their workloads. So make it easy for them to actually consume those. >>That's Now is this, is this available on premises for customer? >>Yeah, so we, we, we make it available customers both ways. So we make it available OnPrem for customers who want to, you know, kind of, they want to take that, take that economics. We also make it available in a colo environment if the customers want to actually, you know, extend colo as that OnPrem environment. So we do both. >>What are, what are the requirements for a customer before you roll that equipment in? How do they sort of have to set the groundwork for, >>For Well, I think, you know, fundamentally it starts off with what the actual use case is, right? So, so if you really look at, you know, the two validated designs we talked about, you know, one for, you know, healthcare life sciences, and one other one for manufacturing, they do have fundamentally different requirements in terms of what you need from those infrastructure systems. So, you know, the customers initially figure out, okay, how do they actually require something which is going to require a lot of memory intensive loads, or do they actually require something which has got a lot of compute power. So, you know, it all depends on what they would require in terms of the workloads to be, and then we do havet sizing. So we do have small, medium, large, we have, you know, multiple infrastructure options, CPU core options. Sometimes the customer would also wanna say, you know what, as long as the regular CPUs, I also want some GPU power on top of that. So those are determinations typically a customer makes as part of the ecosystem, right? And so those are things which would, they would talk to us about to say, okay, what is my best option in terms of, you know, kind of workloads I wanna run? And then they can make a determination in terms of how, how they would actually going. >>So this, this is probably a particularly interesting time to be looking at something like HPC via Apex with, with this season of Rolling Thunder from various partners that you have, you know? Yep. We're, we're all expecting that Intel is gonna be rolling out new CPU sets from a powered perspective. You have your 16th generation of PowerEdge servers coming out, P C I E, gen five, and all of the components from partners like Invidia and Broadcom, et cetera, plugging into them. Yep. What, what does that, what does that look like from your, from your perch in terms of talking to customers who maybe, maybe they're doing things traditionally and they're likely to be not, not fif not 15 G, not generation 15 servers. Yeah. But probably more like 14. Yeah, you're offering a pretty huge uplift. Yep. What, what do those conversations look >>Like? I mean, customers, so talking about partners, right? I mean, of course Dell, you know, we, we, we don't bring any solutions to the market without really working with all of our partners, whether that's at the infrastructure level, like you talked about, you know, Intel, amd, Broadcom, right? All the chip vendors, all the way to software layer, right? So we have cluster managers, we have communities orchestrators. So we usually what we do is we bring the best in class, whether it's a software player or a hardware player, right? And we bring it together as a solution. So we do give the customers a choice, and the customers always want to pick what you they know actually is awesome, right? So they that, that we actually do that. And, you know, and one of the main aspects of, especially when you talk about these things, bringing it as a service, right? >>We take a lot of guesswork away from our customer, right? You know, one of the good example of HPC is capacity, right? So customers, these are very, you know, I would say very intensive systems. Very complex systems, right? So customers would like to buy certain amount of capacity, they would like to grow and, you know, come back, right? So give, giving them the flexibility to actually consume more if they want, giving them the buffer and coming down. All of those things are very important as we actually design these things, right? And that takes some, you know, customers are given a choice, but it actually, they don't need to worry about, oh, you know, what happens if I actually have a spike, right? There's already buffer capacity built in. So those are awesome things. When we talk about things as a service, >>When customers are doing their ROI analysis, buying CapEx on-prem versus, versus using Apex, is there a point, is there a crossover point typically at which it's probably a better deal for them to, to go OnPrem? >>Yeah, I mean, it it like specifically talking about hpc, right? I mean, why, you know, we do have a ma no, a lot of customers consume high performance compute and public cloud, right? That's not gonna go away, right? But there are certain reasons why they would look at OnPrem or they would look at, for example, Ola environment, right? One of the main reasons they would like to do that is purely have to do with cost, right? These are pretty expensive systems, right? There is a lot of ingress, egress, there is a lot of data going back and forth, right? Public cloud, you know, it costs money to put data in or actually pull data back, right? And the second one is data residency and security requirements, right? A lot of these things are probably proprietary set of information. We talked about life sciences, there's a lot of research, right? >>Manufacturing, a lot of these things are just, just in time decision making, right? You are on a factory floor, you gotta be able to do that. Now there is a latency requirement. So I mean, I think a lot of things play, you know, plays into this outside of just cost, but data residency requirements, ingress, egress are big things. And when you're talking about mass moments of data you wanna put and pull it back in, they would like to kind of keep it close, keep it local, and you know, get a, get a, get a price >>Point. Nevertheless, I mean, we were just talking to Ian Coley from aws and he was talking about how customers have the need to sort of move workloads back and forth between the cloud and on-prem. That's something that they're addressing without posts. You are very much in the, in the on-prem world. Do you have, or will you have facilities for customers to move workloads back and forth? Yeah, >>I wouldn't, I wouldn't necessarily say, you know, Dell's cloud strategy is multi-cloud, right? So we basically, so it kind of falls into three, I mean we, some customers, some workloads are suited always for public cloud. It's easier to consume, right? There are, you know, customers also consume on-prem, the customers also consuming Kohler. And we also have like Dell's amazing piece of software like storage software. You know, we make some of these things available for customers to consume a software IP on their public cloud, right? So, you know, so this is our multi-cloud strategy. So we announced a project in Alpine, in Delta fold. So you know, if you look at those, basically customers are saying, I love your Dell IP on this, on this product, on the storage, can you make it available through, in this public environment, whether, you know, it's any of the hyper skill players. So if we do all of that, right? So I think it's, it shows that, you know, it's not always tied to an infrastructure, right? Customers want to consume the best thumb and if we need to be consumed in hyperscale, we can make it available. >>Do you support containers? >>Yeah, we do support containers on hpc. We have, we have two container orchestrators we have to support. We, we, we have aner similarity, we also have a container options to customers. Both options. >>What kind of customers are you signing up for the, for the HPC offerings? Are they university research centers or is it tend to be smaller >>Companies? It, it's, it's, you know, the last three days, this conference has been great. We probably had like, you know, many, many customers talking to us. But HC somewhere in the range of 40, 50 customers, I would probably say lot of interest from educational institutions, universities research, to your point, a lot of interest from manufacturing, factory floor automation. A lot of customers want to do dynamic simulations on factory floor. That is also quite a bit of interest from life sciences pharmacies because you know, like I said, we have two designs, one on life sciences, one on manufacturing, both with different dynamics on the infrastructure. So yeah, quite a, quite a few interest definitely from academics, from life sciences, manufacturing. We also have a lot of financials, big banks, you know, who wants to simulate a lot of the, you know, brokerage, a lot of, lot of financial data because we have some, you know, really optimized hardware we announced in Dell for, especially for financial services. So there's quite a bit of interest from financial services as well. >>That's why that was great. We often think of Dell as, as the organization that democratizes all things in it eventually. And, and, and, and in that context, you know, this is super computing 22 HPC is like the little sibling trailing around, trailing behind the super computing trend. But we definitely have seen this move out of just purely academia into the business world. Dell is clearly a leader in that space. How has Apex overall been doing since you rolled out that strategy, what, two couple? It's been, it's been a couple years now, hasn't it? >>Yeah, it's been less than two years. >>How are, how are, how are mainstream Dell customers embracing Apex versus the traditional, you know, maybe 18 months to three year upgrade cycle CapEx? Yeah, >>I mean I look, I, I think that is absolutely strong momentum for Apex and like we, Paul pointed out earlier, we started with, you know, making the infrastructure and the platforms available to customers to consume as a service, right? We have options for customers, you know, to where Dell can fully manage everything end to end, take a lot of the pain points away, like we talked about because you know, managing a cloud scale, you know, basically environment for the customers, we also have options where customers would say, you know what, I actually have a pretty sophisticated IT organization. I want Dell to manage the infrastructure, but up to this level in the layer up to the guest operating system, I'll take care of the rest, right? So we are seeing customers who are coming to us with various requirements in terms of saying, I can do up to here, but you take all of this pain point away from me or you do everything for me. >>It all depends on the customer. So we do have wide interest. So our, I would say our products and the portfolio set in Apex is expanding and we are also learning, right? We are getting a lot of feedback from customers in terms of what they would like to see on some of these offers. Like the example we just talked about in terms of making some of the software IP available on a public cloud where they'll look at Dell as a software player, right? That's also is absolutely critical. So I think we are giving customers a lot of choices. Our, I would say the choice factor and you know, we are democratizing, like you said, expanding in terms of the customer choices. And I >>Think it's, we're almost outta our time, but I do wanna be sure we get to Dell validated designs, which you've mentioned a couple of times. How specific are the, well, what's the purpose of these designs? How specific are they? >>They, they are, I mean I, you know, so the most of these valid, I mean, again, we look at these industries, right? And we look at understanding exactly how would, I mean we have huge embedded base of customers utilizing HPC across our ecosystem in Dell, right? So a lot of them are CapEx customers. We actually do have an active customer profile. So these validated designs takes into account a lot of customer feedback, lot of partner feedback in terms of how they utilize this. And when you build these solutions, which are kind of end to end and integrated, you need to start anchoring on something, right? And a lot of these things have different characteristics. So these validated design basically prove to us that, you know, it gives a very good jump off point for customers. That's the way I look at it, right? So a lot of them will come to the table with, they don't come to the blank sheet of paper when they say, oh, you know what I'm, this, this is my characteristics of what I want. I think this is a great point for me to start from, right? So I think that that gives that, and plus it's the power of validation, really, right? We test, validate, integrate, so they know it works, right? So all of those are hypercritical. When you talk to, >>And you mentioned healthcare, you, you mentioned manufacturing, other design >>Factoring. We just announced validated design for financial services as well, I think a couple of days ago in the event. So yep, we are expanding all those DVDs so that we, we can, we can give our customers a choice. >>We're out of time. Sat ier. Thank you so much for joining us. Thank you. At the center of the move to subscription to everything as a service, everything is on a subscription basis. You really are on the leading edge of where, where your industry is going. Thanks for joining us. >>Thank you, Paul. Thank you Dave. >>Paul Gillum with Dave Nicholson here from Supercomputing 22 in Dallas, wrapping up the show this afternoon and stay with us for, they'll be half more soon.

>>Yeah. >>Okay. Now we're going to look deeper into the intersection of technology and money and actually a force for good mobile. And the infrastructure around it has made sending money as easy as sending a text. But the capabilities that enable this to happen are quite amazing, especially because as users, we don't see the underlying complexity of the transactions. We just enjoy the benefits. And there's many parts of the world that historically have not been able to enjoy the benefits. And the ecosystems that are developing around these new platforms are truly transformative. And with me to explain, the business impacts of these innovations is all a person who is the head of mobile financial services at Ericsson Ola. Welcome to the program. Thanks for coming on. >>Thank you. Dave, Thank you for having me here in the program and really excited to tell me. Tell us about the product that we have within Ericsson. >>Okay, well, let's get right into it. I mean, your firm has developed the Ericsson wallet platform. What is that? Yes, >>so? So the wallet platform is one of the product, but, I mean, you can say offer here by Ericsson and the platform is built on enabled financial services not for only the bank segment, but also for the unbanked. And we have, you know, the function that we are providing as such Here is, uh, both transfer the service provided payment. You have the cash in the cash out. You have a lot of other feature that we kind of a neighbor through the ecosystem as such. And, uh, I would really like you say, to emphasize on on the use, and they really I'll say, uh, connectivity that we have in this platform here because, uh, looking at you can say the pandemic as such here. Now, we really have made you can say tremendous Shane here through all the functions etcetera feature that we have here. >>Yeah, so, I mean, I'm surrounded by banks in Massachusetts, right? No problem. I'm Boston, right? So But there's a lot of places in the world that that aren't I take for granted some of the capabilities that are there, but so part of this is to enable people who don't have access to those types of services. So maybe you could talk about that and talk about some of the things that you're enabling with the platform, >>right? So So you just think of their You can say unbanked people here, But we have across the emerging market. I think we have one point, you know, seven billion unbanked people here, but we actually can, through wallet platform enabled through getting a bank account, etcetera, and so on here and what we're actually providing you can say in this, uh, this feature is here is that you can pay your electricity bill, for example, Here, you can pay your your bill and you you can go through merchants. You can do the cashed out. You can do multiple thing here, just like I mean to to enable the the question that financial inclusion as well. So I mean I mean from from my point of view, where we're sitting, as I said, we also sitting in Sweden, we have bank account. We have something called swish where we send you can say money back, back and forward between the family, etcetera. So, on this type of transaction, we can and have enabled for all you can say, the user that I come across the the platform here and the kind of growth that we have within this usage here and and we're seeing also. I mean, we leverage here to get with a speed today on a fantastic scale that we actually have here with our our both you can say feature performers going, I will say, Really in in in in a in the direction that we couldn't imagine here you can say a few years back here. So it is fantastic transformation that we undergo here through through the platform of the technology that we have. >>You know, it reminds me of sort of the early days of mobile people talked about being able to connect, you know, remote users in places like Africa or other parts of the world that that haven't been able to enjoy things like a landline. Uh, and so I presume you're seeing a lot of interest in in those types of regions. Maybe you could talk about that a little bit. >>Yeah. Yeah, correct. I mean, I mean, we we see all of this region here, but for for example, Uh uh. Now, we we, uh we were not only entering, you can say the the, uh, specifically the African region, but also you can say the Middle East and the the the A C a specific and also actually Latin America. I mean, a lot of this country here are looking into you can say the expansion, how they can evolve. You can say the financial inclusion from what they have today, when they are, and you can say firm telecom provider, they would like to have an asset of different use case here, and we're seeing that transformation. But we have right now from just voice, you can say SMS and five year etcetera so on. This is the platform that we have to sort of enable the transaction for for a mobile financial system. But we would like also to see that the kind of operator or evolving the business with much more feature here. And this is another. You can say I was attraction to attract the user with the mobile transfer system. So we we we see this kind of expanding very heavily in this this kind of market. >>I think this is really transformative. I mean, in terms of people's lives. I mean, first of all, you're talking about the convenience of being able to move money as bits as opposed to paper, but as well I would think supporting entrepreneurship and business is getting started. I mean, there's a whole set of cultural and societal impacts that that you're having. How do you see that >>we we also providing you say I mean the world to such is also supporting, say microloans and need as an entrepreneur is to sort of start you can say any kind of company, but you need to kind of business around here. So we have seen that we have sort of enterprise services across function and the whole asset that we are that we are into today >>talking a little bit >>about >>partnerships and the ecosystems. I know you've got big partnerships with HPD. We're going to get to that. They're kind of a technology operator, but But what about, you know, other partnerships, like, I'm imagining that if I'm gonna pay my my my bill with this, you've got other providers that got to connect into your platform. So So how are those ecosystem partnerships evolving? >>Well, we are kind of the enabler, but we are providing to the operator the partnerships is then going through the operator. It could be any kind of you can say external instrument that we have today and the kind of you can go directly to the bank. You can go directly to any court provider. You have these amongst the court, etcetera and so on. But these are all partners of the and you can stay connected through there. You can say operator assault today. So what we're doing actually, with our platform is to kind of make the enable them to kind of provide the food ecosystem as partnership to to operate as us today. Here, So that that's kind of the baseline that we see how you can say we are sort of supporting of building the full ecosystem around the platform in order to connect here has come to both the like, the card. As I said here, the merchant, the bank, any kind of type of you can say I will say service provider here, but that we can see could enable the ecosystem >>okay. And so I mean, I don't want to geek out here, but it sounds like it's an open system that my developers can plug into through a p i s They're not gonna throw cold water on that. They're going to embrace it. So yeah, this is actually easy for me to integrate with, Is that correct? >>Correct. Correct. And they open API that we're actually providing today. I think that you can say there are five thousands of you can say developer, just you can say connecting to our system. And actually, we're also providing both sandbox and and other application in order to support this developers in order to to kind of create this ecosystem here. So it's a multiple things that we we see through you can say, hear, hear the both the partners partnership the open API or you can say the development that is doing through through the channels. So I mean, it's a fascinating, amazing development that we see up front here right now. >>Now, what's H. P s role in all this? What are they providing? How are you partnering with them? >>So it's very good question, I would say. And we we look back, you can say and we we have evaluated a lot of you say that the provider fruit year here, And, uh, you can just imagine the the kind of, uh, stability that we need to provide when it comes to the financial inclusion system here because what we need to have a very strong uptake of, uh, making sure that we don't both go with the performance and the stability and what we have seen in our lab is that hypocrisy today is we have domestically evolved how you can say our stability assessed on the system. And right now we are leveraging the the dog is with the microservices here, together with HV on the platform that you're providing. So I will say that the transformation we have done in the stability that we have get through the food. You can say HP system is really fantastic at the moment. >>Well, and you know, I'm no security expert, but I talked to a lot of security experts and what I what I do know is they tell me that that you can't just bolt security on. It's got to be designed in from the start. I would imagine that that's part of the HPD partnership. But what about security? Can I fully trust this platform >>now? It's It's very, very valid question. I would say we we have one of the most you can say secure system here were also running multiple external. You can say, uh, system validation there is called The PNDs s certification is a certification, But we we have external auditor, you can say trying to breach the system. Look at the process that we are developing making sure that we have You can say all of you can say the documentation really in shape and seeing that we follow the procedure when we are both developing the code and and also when we're looking into all the a p I s that were actually exposed to to to our end users. So I would say that we haven't had any bridge on our system and we we really working tightly. I'll say both together with I'll say, H b and and of course, the the customer, such and? And every time we do a Lawrence, we also make you can say final security validation on the system here in order to sort of see that we have and and two and because the application that is completely secure, So so that that that that's a very, very important topic. For from our point of view, >>Yeah, because it's the usual. I don't even want to think about that. Like I set up front. It's It's got to be hidden from me, all that complexity. But there's sort of the same question around compliance and privacy. I mean, often security, privacy. There's sort of two sides of the same coin, but compliance privacy You've got to worry about K. Y. C Know your customer? Uh, there's a lot of complexity around that, and and so that's another key piece. >>Mhm Now. Like you said, the K Y C is an important part that we have fully support in our system and we validate. You can say all the uses We we also are running, You can say with our credit scoring companies that the you can say our operator or are partnering with. So this combined, you can say, with both the K Y C and then and the credit scoring. But there were performing that. Let's make us a very you can say unique, stable platform as such. >>Okay, last question is, is what about going forward? What's the road map look like? What can you share? What should we expect going forward in terms of the impact that this will have on society and how the technology will evolve. >>Well, what is he going forward? And that's a very interesting question, because what we what we see right now is how we we we kind of have changed the life for for so many. You can say unbanked people here and we would like to have You can say, uh, any kind of assets that going forward here, any kind of you can see that the digital currency is a bouldering through both government. You can see over top players like Google. You can say, What's up all of these things. Here we want to be the one, but also connecting. You can say this type of platform together and see that we could be the heart of the ecosystem going forward here, independent in what kind of you can say customer we're aiming for. So I would say this This is kind of the role that we will play in the future here, depending on what kind of currency it would be. So it's very interesting future we see. With this, you can say abroad digital currency in the market and the trends that we are now right now, evolving on >>very exciting when we're talking about elevating, you know, potentially billions of people all, uh, thanks very much for sharing this innovation with the audience. And best of luck with this incredible platform. Congratulations. >>Thank you so much, Dave. And once again, thank you for having me here, and I'll talk to you soon again. Thank you. >>Thank you. It's been our pleasure. And thank you for watching. This is Dave Valenti. >>Yeah. Mhm. Yeah. Mhm. Okay.

(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. 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