>> Narrator: From around the globe, it's theCUBE with digital coverage of IBM Think 2021 brought to you by IBM. >> Well, hello everybody and welcome again to theCUBE. We continue our initiative here at IBM Think and now we're joined by two distinguished guests who are really going the extra mile for us, I might say. Here we are in the States at a very reasonable hour, in Korea, it's a little later in the evening so we certainly appreciate their time and their patience here. We're joined by Mr. Khee-Hong Song, who is the CEO and President of IBM Korea and Mr. Jung Sik Suh, who is the CEO of Hyundai AutoEver, which is an IT service company affiliated with the Hyundai Motor Group. And gentlemen (greeting in Korean) Thank you for joining this. We appreciate it. >> Thank you. >> Thank you for inviting us. >> Hi. >> Yes, hi, very good to see you there. And I hope I didn't do the greeting injustice there. First off, Khee, I'll start with you. Let's talk about first off, kind of this digital transformation that transpires not only here in the United States, but of course is global. And certainly, with an IT advanced company like Korea, give us just really kind of a calibration, where are you in terms of this transformation in Korea with regard to digital? >> A lot of people are interested in the post-COVID world and how it is going to look like. What changes this pandemic will bring. The Korean government is really focusing on growing the digital sector. Taking this advantage, and taking this opportunity as a chance to really upgrade the entire IT system of the nation. So for example, like a Korean economy had been contracted by -1% and industry players also faced difficulties. For example, discount stores are -20% Y2Y. department stores are lost 30% of their revenue. But the government is injecting money to really change the game, leveraging the digital technology. >> Yeah, and you mentioned COVID, and obviously that's had a global impact. Not only in your operations here in the United States certainly, but Africa in Europe, and certainly in Asia as we talked about. Can you go just a little bit deeper on that in terms of what those impacts have been and maybe a little more specificity on coming out of that. You mentioned the economic impacts that Korea is currently suffering, but looking for a bounce back, looking for a rebound with the government. Maybe a little more specifics about the impact of COVID. And then Mr. Sung, I'll turn to you for that as well. First off, Khee, if you will. >> Okay, in an effort to recover from COVID-19 economic recession, Korean government announced Digital New Deal, which is to lay a foundation for digital economy that will spur economic growth and innovation. Now the policy aims to create a new digital economy, which is underpinned by new technologies such as 5G, big data and artificial intelligence. According to IDC research, 55% of Korean companies have already overcome the economic downturn and are moving toward the growth in next normal. They have been very active in making investments to become the enterprise of the future. And this is higher than global average of 37% in terms of recovery rate. This indicates that leading Korean companies are quickly preparing for the next, even in the face of a crisis. >> Jung, We've been hearing from Khee talking about the digital and certainly the impacts of COVID. And I assume that at Hyundai, you have had to deal with this certainly, this impact and are now coming out the other end, some very positive news from numbers we're hearing from Khee. If you could talk about though, maybe from your perspective in terms of that impact. And then, what kind of a rebound do you see or kind of positive uptick do you see in terms of digital in your business, say, in the next 12 to 18 months? >> I think the 12 to 18 months, we are reinforcing the digitalization, not just the working environment, but also others, especially for in terms of sales. Until now most of the B2C sales changed to digital or the internet environment, but unfortunately, car manufacturing OEM companies are not too ready for the e-commerce environment. But Hyundai is very actively, and proactively, and preemptively starting the e-commerce. So I think, next to 12 to 18 month, two-digit percent of our sales are will be fulfilled by internet-based. I mean, we'll have to face the most biggest and most challenging but possible change after COVID. >> Yeah, what's driving that then, is it just that people are more likely to want to be at home whether it's as a consumer or whether it's your workforce, whatever the case may be, but you're talking about this kind of going from a physical world to a more digital-based world as I'm hearing you describe it. Is that accurate? >> Yes. So we are the digital world, from just communicate with customer, but also our internal operation. Like the manufacturing environment and also the sales environment, et cetera. >> And Khee, if you would talk about maybe how this is impacting your business and just in terms of IBM in general. Not just with Hyundai, but I'm sure you support a lot of healthcare initiatives, a lot of other e-commerce initiatives and what have you, What's kind of the bottom line impact there for you right now in terms of this massive shift over to digital? >> Well, in IBM, our goal is to work with industry clients and technology partners to accelerate this transformation through automation, transition to hybrid cloud, and help our clients to really gain some benefits from their change. So one area I can talk about is automation. We see increasing requirements from our clients on automation for operational excellence, amid the economic downturn, and for hygiene purposes as well. So Seoul Asan Hospital is one of the leading hospitals in Korea and has the largest number of beds. Asan hospital and IBM worked together to develop a bed allocation automation system based on design thinking, workshop and garage method. The automation system considers a patient's specific preferences, surgery schedule, customized treatment for each patient, and various reservation status in each department. The result was outstanding. The hospital could reduce the bed assignment lead time from 20 minutes to seven minutes with a 0% error rate. And currently, more than a hundred hospitalization registration procedures are being processed every day without human intervention. And patient satisfaction and productivity of medical staff have improved significantly. That is just one great example of automation which is taking place in many other industries as well. Second is transformation to cloud. A large credit card company in Korea has chosen IBM as a partner to convert enterprise wide systems including the most complex account system to a managed private cloud using cloud technology from IBM and Red Hat. >> Khee, you talked about these key factors, if you will, about cloud transformation and different kinds of operational efficiencies and all these very fundamental. But very important factors to consider, when you're talking to your clients right now, what are their, I wouldn't say hesitations, but I guess maybe their challenges in deciding what tasks will go where and to what degree they're good with the cloud environment, to what degree they want it still on prem, to what, where the hybrid comes into play. I mean, these are all are fairly crucial decisions that your clients are making. >> Well, I think the barrier to any decision, like quick decision or sort of complete understanding is the technology itself is changing very quickly. I mean, last year, two years ago, versus now, when all technology companies, should we say something different. And that is not because it changed the position itself. The technology itself changed, and technology companies are responding to the trend. So that's why some clients get confused, and that confusion slows down the adaption of digital technology. But as I mentioned earlier, this pandemic situation, I'm pretty sure they're, like Mr. Sung can talk about some changes in Hyundai motors. Many companies realized that doing nothing or slowing down is not the best answer in this environment. And they are now proactively embracing those changes. >> So Jung, if you would then follow up on that, I would like to hear from you about Hyundai and the factors that you've considered in your digital decision making in terms of workloads, and capacities, and just where you house information, where you house your data, where you process it. What are some of those factors that you have thought about and then maybe going forward, how much more are you going to do? What are you considering right now in terms of future transformations? >> I think the other, our competitor, the other OEMs also think like that the car itself should be changed to digital. It means that, currently, the software portion of the car is just a seven to 10% of total our, the procurement. But it'll be changed to 20 to 30% in five years. It means that some portion will be to increased by three times There is a one our research changed. The other one is that kind of a software mostly located and not just in the car, which means that car is just a software edge activity. It means that just that the input and output, or some real-time transaction, or other computation and calculation analysis and decision could be the car cloud. Therefore, the cloud is main party of the car software. And also the car is it's just to edge. We have edge cloud and main cloud. It will be occurred just to within just several years. First, really, Hyundai has currently more than 40% of the car is connected in listening. And also cumulatively, we are connected by around the four million car in the word. It will be changed to 10 million car would be connected within one years. >> So 10 million Hyundai cars will be connected to cloud generating information and also- >> Yes, collecting information. And we are ready for the OTA, which means over-the-air software update for the 10 million car within one years. And also, it will double up year by year. >> Okay. >> Which means that all of the car, all the operated by cloud. >> Okay. >> And cars, it says to input and output an edge activities, therefore car is on cloud. >> Okay. >> John: Right? Khee: Interesting. >> Jung: That is the major driver for our digital transformation. >> And if you would, just what role is IBM having that? You're talking about a massive increase of 10 million cars is a very impressive number. >> And the data, the 10 million cars are producing are will be enormous. So IBM's role is actually helping clients in this kind of situation. To help those companies collect data and then like a seamless communication with the cloud. So that at the real time, the 10 million cars get the information timely. And also, like all those cars are communicating with each other that is made possible upon a hybrid cloud platform. And I think that is IBM's contribution to Hyundai Motors. Not just Hyundai Motors, but industries who have similar challenges and desires. >> One more thing, lately, IBM helped us our all IT operation in US and Europe, which composed of our 50% of our revenue come from. Therefore it means that dozens of billion of revenue operation is located in US and Europe. All over the US, Europe IT operation conducted by the IBM India and orchestrated by IBM Korean people. >> So it's amazing as Mr. Suh mentioned, IBM Korea is leading the project. All the service delivery is done in India leveraging IBM India. And we are serving Hyundai motors in the United States and Europe. So it's a truly a global IT operation environment. And that is made possible based upon IBM's cloud technology. >> Well, your summary was spot on. I couldn't say it any better, Khee. Thank you for that. Jung, thank you as well. Talking about this impressive global impact and really partnership that Hyundai is taking with IBM in the several continents. And making it work for millions of consumers around the world. Thank you both for your time today. I appreciate it. >> Khee: Thank you very much, John. >> Jung: Thank you. >> All right, we've been talking about Korea as an IT power country for the IBM perspective. And certainly, using Hyundai is a beautiful example of just how this partnership is working and growing, and providing great service for consumers at the end of the day. You've been watching "theCube" and IBM Think. (upbeat theme music) (upbeat theme music) (humming)

(bright theme music) (humming) >> From around the globe, it's "theCUBE" with digital coverage of IBM Think 2021 brought to you by IBM. >> Well, hello everybody and welcome again to "theCUBE." We'll continue our initiative here at IBM Think and now we're joined by two distinguished guests who are really going the extra mile for us, I might say. Here we are in the States at a very reasonable hour, in Korea, it's a little later in the evening so we certainly appreciate their time and their patience here. We're joined by Mr. Ki-Hong Song, who is the CEO and President of IBM Korea and Mr. Jung Sik Suh, who is the CEO of Hyundai AutoEver, which is an IT service company affiliated with the Hyundai Motor Group. And gentlemen (speaking foreign language) Thank you for joining this. We appreciate it. >> Thank you. >> Thank you for inviting us. >> Hi. >> Yes, hi, very good to see you there. And I hope I didn't do the greeting injustice there. First off, Ki, I'll start with you. Let's talk about first off, kind of this digital transformation that transpires not only here in the United States, but of course is global. And certainly, with an IT advanced company like Korea, give us just really kind of a calibration, where are you in terms of this transformation in Korea with regard to digital? >> A lot of people are interested in the post-COVID world and how it is going to look like. What changes this pandemic will bring. The Korean government is really focusing on growing the digital sector. Taking this advantage, and taking this opportunity as a chance to really upgrade the entire IT system of the nation. So for example, like a Korean economy had been contracted by -1% and industry players also faced difficulties. For example, discount stores are -20% Y2Y. department stores are lost 30% of their revenue. But the government is injecting money to really change the game, leveraging the digital technology. >> Yeah, and you mentioned COVID, and obviously that's had a global impact. Not only in your operations here in the United States certainly, but Africa in Europe, and certainly in Asia as we talked about. Can you go just a little bit deeper on that in terms of what those impacts have been and maybe a little more specificity on coming out of that. You mentioned the economic impacts that Korea is currently suffering, but looking for a bounce back, looking for a rebound with the government. Maybe a little more specifics about the impact of COVID. And then Mr. Sung, I'll turn to you for that as well. First off, Ki, if you will. >> Okay, in an effort to recover from COVID-19 economic recession, Korean government announced Digital New Deal, which is to lay a foundation for digital economy that will spur economic growth and innovation. Now the policy aims to create a new digital economy, which is underpinned by new technologies such as 5G, big data and artificial intelligence. According to IDC research, 55% of Korean companies have already overcome the economic downturn and are moving toward the growth in next normal. They have been very active in making investments to become the enterprise of the future. And this is higher than global average of 37% in terms of recovery rate. This indicates that leading Korean companies are quickly preparing for the next, even in the face of a crisis. >> Jung, We've been hearing from Ki talking about the digital and certainly the impacts of COVID. And I assume that at Hyundai, you have had to deal with this certainly, this impact and are now coming out the other end, some very positive news from numbers we're hearing from Ki. If you could talk about though, maybe from your perspective in terms of that impact. And then, what kind of a rebound do you see or kind of positive uptick do you see in terms of digital in your business, say, in the next 12 to 18 months? >> I think in this 12 to 18 months, we are reinforce the digitalization, not just the working environment, but also others take this, especially for in terms of sales. Until now most of the B2C sales changed to digital or the internet environment, but unfortunately, car manufacturing OEM companies are not too ready for the e-commerce environment. But Hyundai is very actively, and proactively, and preemptively started the e-commerce. So I think, next to 12 to 18 month, two-digit percent of our sales are will be fulfilled by internet-based. I mean, we'll have to face the most biggest and most challenging but possible change after COVID. >> Yeah, what's driving that then, is it just that people are more likely to want to be at home whether it's as a consumer or whether it's your workforce, whatever the case may be, but you're talking about this kind of going from a physical world to a more digital-based world as I'm hearing you describe it. Is that accurate? >> Yes. So we are the digital world, from just communicate with customer, but also our internal operation. Like the manufacturing environment and also the sales environment, et cetera. >> And Ki, if you would talk about maybe how this is impacting your business and just in terms of IBM in general. Not just with Hyundai, but I'm sure you support a lot of healthcare initiatives, a lot of other e-commerce initiatives and what have you, What's kind of the bottom line impact there for you right now in terms of this massive shift over to digital? >> We'll, in IBM, our goal is to work with industry clients and technology partners to accelerate this transformation through automation, transition to hybrid cloud, and help our clients to really gain some benefits from their change. So one area I can talk about is automation. We see increasing requirements from our clients on automation for operational excellence, Meet the economic downturn, and for hygiene purposes as well. So Seoul Asan Hospital is one of the leading hospitals in Korea and has the largest number of beds. Asan hospital and IBM worked together to develop a better allocation automation system based on design thinking, workshop and garage method. The automation system considers a patient's specific preferences, surgery schedule, customized treatment for each patient, and various reservation status in each department. The result was outstanding. The hospital could reduce the bed assignment lead time from 20 minutes to seven minutes with a 0% error rate. And currently, more than hundred hospitalization registration procedures are being processed every day without human intervention. And patient satisfaction and productivity of medical staff have improved significantly. That is just one great example of automation which is taking place in many other industries as well. Second is transformation to cloud. A large credit card company in Korea has chosen IBM as a partner to convert enterprise wide systems including the most complex account system to a managed private cloud using cloud technology from IBM and Red Hat. >> Ki, you talked about these key factors, if you will, about cloud transformation and different kinds of operational efficiencies and all these very fundamental. But very important factors to consider, when you're talking to your clients right now, what are their, I wouldn't say hesitations, but I guess maybe their challenges in deciding what tasks will go where and to what degree they're good with the cloud environment, to what degree they want it still on prem, to what, where the hybrid comes into play. I mean, these are all are fairly crucial decisions that your clients are making. >> Well, I think the barrier to any decision, like quick decision or sort of complete understanding is the technology itself is changing very quickly. I mean, last year, two years ago, versus now, when all technology companies, should we say something different. And that is not because it changed the position itself. The technology itself changed, and technology companies are responding to the trend. So that's why some clients get confused, and that confusion slows down the adaption of digital technology. But as I mentioned earlier, this pandemic situation, I'm pretty sure they're, like Mr. Sung can talk about some changes in Hyundai motors. Many companies realized that doing nothing or slowing down is not the best answer in this environment. And they are now proactively embracing those changes. >> So Jung, if you would then follow up on that, I would like to hear from you about Hyundai and the factors that you've considered in your digital decision making in terms of workloads, and capacities, and just where you house information, where you house your data, where you process it. What are some of those factors that you have thought about and then maybe going forward, how much more are you going to do? What are you considering right now in terms of future transformations? >> I think the other, our competitor, the other OEMs also think like that the car itself should be changed to digital. It means that, currently, the software portion of the car is just a seven to 10% of total our, the procurement. But it'll be changed to 20 to 30% in five years. It means that some portion will be to increased by three times There is a one our research changed. The other one is that kind of a software mostly located and not just in the car, which means that car is just a software edge activity. It means that just that the input and output, or some real-time transaction, or other computation and calculation analysis and decision could be the car cloud. Therefore, the cloud is main party of the car software. And also the car is it's just to edge. We have edge cloud and main cloud. It will be occurred just to within just several years. First, really, Hyundai has currently more than 40% of the car is connected in listening. And also cumulatively, we are connected by around the four million car in the word. It will be changed to 10 million car would be connected within one years. >> So 10 million Hyundai cars will be connected to cloud generating information and also- >> Yes, collecting information. And we are ready for the OTA, which means over-the-air software update for the 10 million car within one years. And also, it will double up year by year. >> Okay. >> Which means that all of the car, all the operated by cloud. >> Okay. >> And cars, it says to input and output an edge activities, therefore car is on cloud. >> Okay. >> Right? >> Interesting. >> That is the major driver for our digital transformation. >> And if you would, just what role is IBM having that? You're talking about a massive increase of 10 million cars is a very impressive number. >> And the data, the 10 million cars are producing are will be enormous. So IBM's role is actually helping clients in this kind of situation. To help those companies collect data and then like a seamless communication with the cloud. So that at the real time, the 10 million cars get the information timely. And also, like all those cars are communicating with each other that is made possible upon a hybrid cloud platform. And I think that is IBM's contribution to Hyundai Motors. Not just Hyundai Motors, but industries who have similar challenges and desires. >> One more thing, lately, IBM helped us our all IT operation in US and Europe, which composed of our 50% of our revenue come from. Therefore it means that dozens of billion of revenue operation is located in US and Europe. All over the US, Europe IT operation conducted by the IBM India and orchestrated by IBM Korean people. >> So it's amazing as Mr. Suh mentioned, IBM Korea is leading the project. All the service delivery is done in India leveraging IBM India. And we are serving Hyundai motors in the United States and Europe. So it's a truly a global IT operation environment. And that is made possible based upon IBM's cloud technology. >> Well, your summary was spot on. I couldn't say it any better, Ki. Thank you for that. Jung, thank you as well. Talking about this impressive global impact and really partnership that Hyundai is taking with IBM in the several continents. And making it work for millions of consumers around the world. Thank you both for your time today. I appreciate it. >> Thank you very much, John. >> Thank you. >> All right, we've been talking about Korea as an IT power country for the IBM perspective. And certainly, using Hyundai is a beautiful example of just how this partnership is working and growing, and providing great service for consumers at the end of the day. You've been watching "theCube" and IBM Think. (upbeat theme music) (upbeat theme music) (humming)

(upbeat music) >> From around the globe, it's theCUBE! With digital coverage of IBM Think 2021 brought to you by IBM. >> Well, hello everybody. and welcome again to theCUBE. We continue our initiative here of IBM Think. and now we're joined by two distinguished guests who are really going the extra mile for us, I might say. Here we are in the States at a very reasonable hour, in Korea, it's a little later in the evening so we certainly appreciate their time and their patience here. We're joined by Mr. Kheehong Song, who is the CEO and president of IBM Korea and Mr. Jung-Sik Suh, who is the CEO of Hyundai AutoEver which is an IT service company affiliated with the Hyundai Motor Group. Gentlemen, (speaks in foreign language) thank you for joining us. We appreciate it. >> Thank you. >> Thank you, hi. >> Hi, it's very good to see you there. And I hope I didn't do the greeting injustice there. First off, Khee I'll start with you. Let's talk about first off, kind of this digital transformation that transpires not only here in the United States, but of course, is global. And certainly with an IT advanced company like Korea, give us just really kind of a calibration, where are you in terms of this transformation in Korea with regard to digital? >> A lot of people are interested in the post COVID world and how it is going to look like, what changes this pandemic will bring. The Korean government is really focusing on growing the digital sector, taking this advantage. And taking this opportunity here as a chance to really upgrade the entire IT system of the nation. So for example, like a Korean economy had been contracted by negative 1%, and industry players also faced difficulties. For example, discount stores, negative 20% Y2Y department stores lost 30% of their revenue, but the government is injecting money to really change the game, leveraging the digital technology. >> Yeah, and you mentioned COVID. And obviously that's had a global impact, you know, not only in your operations here in the United States, certainly, but Africa, in Europe and certainly in Asia as we talked about. Can you go just a little bit deeper on that in terms of what those impacts have been, and maybe a little more specificity on coming out of that? You mentioned the economic impacts that Korea is currently suffering, but looking for a bounce back, looking for a rebound with the government, maybe a little more specifics about the impact of COVID. And then Mr. Song, I'm going to turn to you for that as well. First off, Khee, if you would. >> Okay. In an effort to recover from COVID-19 economic recession, Korean government announced digital new deal which is to lay a foundation for a digital economy that will spur economic growth and innovation. Now, the policy aims to create a new digital economy which is underpinned by new technologies, such as 5G, big data and artificial intelligence. According to IDC research, 55% of Korean companies have already overcome the economic downturn and are moving toward across the next normal. They have been very active in making investments to become the enterprise of the future. And this is higher than global average of 37%, in terms of recovery rate. This indicates that leading Korean companies are quickly preparing for the next even in the face of a crisis. >> Jung, we've been hearing from Khee talking about the digital and certainly the impacts of COVID. And I've assumed that at Hyundai, you know, you have had to deal with this, certainly this impact, and are not coming out the other end some very positive news from numbers we're hearing from Khee. If you could talk about though, maybe what from your perspective, in terms of that impact and then what kind of a rebound do you see, or kind of positive uptake do you see in terms of digital and your business say in the next 12 to 18 months? >> I think the next 12 to 18 months, the reinforcers of digitalization, not just the working environment, but also other respect especially for the... in terms of sales. You know, until now, most of the B2C Series changed to digital or the internet environment, but unfortunately, car manufacturing OEM companies aren't ready for the E-commerce environment. But Hyundai is very actively and proactively, and preemptively started at E-commerce. So I think next 12 to 18 month, two digit percent of our sales, I mean fulfilled by internet (mumbles), I mean the objective is the most biggest and most challenging, but possible changing after COVID. >> Yeah, what's driving that and then, it's just that people are more likely to want to be at home whether it's as a consumer or whether it's your workforce whatever the case may be, but you're talking about this kind of going from a physical world to a more digital-based world, as I'm hearing you describe that, is that accurate? >> Yes. So we are, the digital world, from just communicate with the customer, but also the, our internal operation, you know, like the manufacturing environment, and also the sales environment, et cetera. >> And Khee, if you would talk about maybe how this is impacting your business and just in terms of IBM in general, not just with Hyundai, but I'm sure you support a lot of healthcare initiatives, a lot of other E-commerce initiatives and what have you. What's kind of the bottom line impact there for you right now, in terms of this massive shift over to digital? >> In IBM, our goal is to work with industry clients and technology partners to accelerate these trends maybe mention through automation, transition to hybrid cloud and help our clients to really gain some benefits from their change. So one area I can talk about is automation. We see increasing requirements from our clients on automation for operational excellence, meet the economic downturn, and for hygiene purposes as well. So Seoul Asan hospital is one of the leading hospitals in Korea and has the largest number of beds. Asan hospital and IBM worked together to develop a bed location automation system, based on design thinking workshop and garage method. The automation system considers our patient's specific preferences, surgery schedule, customized treatment for each patient, and various reservation status in each department. The result was outstanding. The hospital could reduce the bed assignment lead time from 20 minutes to seven minute with a 0% error rate. And currently more than a hundred hospitalization registration procedures are being processed every day without human intervention. And patient satisfaction and productivity of medical staff have improved significantly. That is just one great example of automation which is taking place in many other industries as well. Second is a transformation to cloud. A large credit card company in Korea has chosen IBM as a partner to convert enterprise wide systems including the most complex account system to manage it private cloud using cloud technology from IBM and Red Hat. >> Khee, you talk about these key factors, if you will, about cloud transformation and different kinds of operational efficiencies, and all these you very fundamental but very important factors to consider. When you're talking to your clients right now, what are their I wouldn't say hesitations, but I guess maybe their challenges in deciding what tasks will go where, and to what degree they're good with the cloud environment, to what degree they want it still on prem, to what where the hybrid comes into play. I mean, these are all are fairly crucial decisions that your clients are making. >> I think the barrier to any decision, like a quick decision or sort of complete understanding is the technology itself is changing very quickly. I mean last year, two years ago versus now when all technology companies should say something different. And that is not because they changed the position. Itself, the technology itself changed and technology companies are responding to that trend. So that's why some clients get confused, and that confusion slows down the adoption of digital technology. But as I mentioned earlier, this pandemic situation, I'm pretty sure they're like Mr. Suh can talk about some changes in Hyundai motors. Many companies realize that doing nothing or slowing down is not the best answer in this environment. And they are now proactively embracing those changes. >> So Jun, if you would then follow up on that, I would like to hear from you about Hyundai, and the factors that you've considered in your digital decision-making, in terms of workloads and capacities, and you know, just where you house information, where you house your data, where you process it. What are some of those factors that you have thought about and then maybe going forward how much more are you going to do? What else do, what are you considering right now in terms of future transformations? >> I think the other well, competitor the other OEMs also think like that, the, you know, the car itself should be changed to digital. It means that, you know currently the software portion of the car is just seven to 10% of total our, the procurement, but it'll be change it to 20 to 30% in near to five years. It means that software portion will be increased by three times. That is one our, that is to change it. The other one is that kind of a software mostly located not just in the car, which means that car is just a software engine activity. It means that just that the input and output, or some real time trajection. All other computation and calculation analysis and decision could be the car cloud. Therefore, the cloud is main body of the car software. And also just car it's just to edge. We have edge cloud and main cloud. It will be occurred just within several years. Because first of all, firstly, Hyundai has currently more than 40% of the car is connected in listening. And also cumulatively, we are connected by around four million car in the world. It will be change to 10 million, car would be connected within one years. >> So 10 million Hyundai cars will be connected to cloud generating information? >> Yes, collecting information, and we are ready for the OTA, which means that all over the air, software update for the 10 million car within one years. And also it will be double up, double up, double, year by year. >> Okay. >> Which means that all of the car will be operated by cloud. >> Okay. >> And car is test to input and output, and activities. Therefore car is on cloud. >> Okay. >> Right? >> Interesting. >> That is the major driver for our district transformation. >> And if you would just, what role is IBM have in that? You're talking about a massive increase of 10 million cars is a very impressive number. >> And the data, the 10 million cars are producing will be enormous. So IBM's role is actually helping clients in this kind of situation. To help those companies collect data and then like a seamless communication with the cloud. So they're like at the real time, the 10 million cars get the information timely, and also like all those cars are communicating with each other, that is made possible upon a hybrid cloud platform. And I think that is IBM's contribution to Hyundai Motors, not just Hyundai Motors, but industries who have similar challenges and desires. >> One more thing, already, IBM helped us, our IT operation in US and Europe, which composed of our 50% of our revenue come from. Therefore it means that (mumbles) billion revenue operation is located in US and Europe. All over the US, Europe, IT operation conducted by the IBM India. And orchestrated by IBM Korean people. >> So it's amazing as Mr. Suh mentioned like IBM Korea is leading the project. All the service delivery is done in India, leveraging IBM India. And we are serving Hyundai Motors in the United States and Europe. So it's truly a global IT operation environment, and that is made possible based upon IBM's cloud technology. >> Well, your summary was spot on. I couldn't say that any better. Khee, thank you for that. Jun, thank you as well, talking about this impressive global impact and really partnership that Hyundai is taking with IBM and the several continents. And making it work for millions of consumers around the world. Thank you both for your time today. I appreciate it. >> Thank you. >> Thank you very much, John. >> Thank you. >> All right, we've been talking about Korea as an IT powered country for the IBM perspective. And certainly using Hyundai is a beautiful example of just how this partnership is working and growing and providing great service for consumers, at the end of the day. You've been watching theCUBE and IBM Think. (upbeat music)