 Good afternoon, everyone. We're so happy that you're here with us, Lisa Martin and Dave Vellante of theCUBE, day two of our coverage of Dell Technologies World. Coming to you live from Mandalay Bay in pretty warm Las Vegas. It is 94 degrees outside right now. My Dell laptop is telling me that. We're very excited to be talking about all things heating, power, cooling, sustainability with our alumni, JJ Davis, the SVP of Corporate Affairs at Dell. It's so great to have you back. Thank you. Hi, thank you. Throughout the week here. So, as I said, 94 degrees outside. Beautiful in here. Lots of, Dave has some interesting comments on some of the cooling technologies that you've seen here. But let's talk a little bit about, you know, there's been so much progress in the last year from Dell. We talked a lot last year with Chuck, with Michael, with you, with other Jeff about all the, a lot of the projects that Dell had was spinning up. And we've gotten to see a lot of productization of that announced yesterday and today. Talk to us about some of the sustainability goals you set last year, or some of those big moonshot goals. And where you are on the progress front with that. Okay, sure. And I think Michael said it yesterday in his keynote about technology and the evolution that it's a race without a finish line. I can't recall exactly what it was talking about in that context, but a race without a finish line certainly applies to sustainability and all that we have to do and how move, how quickly things are moving. So for us, sustainability is one of our priority areas within ESG, environmental, social governance. And we have two priorities. One is around climate action and one is around circularity. And so when we think about our 2030 goals, one is to be 100% recycled or renewable materials in our packaging. We're already at 94%, something like that. Dave's PC comes in 100% recycled packaging. Our latitudes can make that claim. And we have a lot of recycled contents in our systems as well. We have a 2030 goal that by 2030, 50% of all the contents in our products that's both in our client systems and infrastructure will be made from recycled or renewable or low carbon materials. So it's really good to put low carbon aluminum or recycled aluminum in our systems. And we're already pretty far down that path to be able to be at 100% recycled aluminum as an example within our systems. And we have to think about recycled plastic, recycled steel, recycled aluminum. In ocean plastics, for example, that supply chain didn't even exist before Dell. We're about to celebrate the fifth year anniversary of the formation of the Next Wave Consortium. And it all started with an idea. And that's the theme of Dell Tech World this year is an idea and how that turns into a game-changing innovation. On the services side, we're also very big on taking back and turning trash into treasure. And so we have a one-for-one take back goal. We're right around 16.5% in terms of take back for last year. Right at the industry average, we are going to need to leapfrog that and do more. We have our asset recovery services that are now in several dozen countries around the world available through our channel partners. There's more to do. So many of those goals are affiliated or associated with circular economy. On the climate side, last fall, we got a suite of net zero and climate goals, SBTI validated, and we're working very closely with Jeff Clark and the ISG team on what it is we're going to do to drive better efficiency, lobby for greener technology, and help transform the energy sector. As an example, there is a lot going on and you've seen sustainability come to life in our products here at Dell Tech World. You guys take it pretty seriously. Just to give the audience a perspective, everybody knows Dell's 100 plus billion dollar company. I was looking for the numbers. Michael said, you guys shipped two units a second. I know. And I think I said 179,000 orders a day. This is amazing scale. So you can have an impact. And the other thing is, you guys take it seriously. It's not just some kind of throwaway job. And you saw that, you know, for some companies and maybe still do, but Jeff Clark said yesterday in the analyst session, you guys meet like very frequently and talk about this stuff and you know, set some major goals, so. Let me tell you about that because we had a series of meetings last summer where he was asking us a lot of questions. And you know, we talk a lot, especially in financial earnings around what we can control. And we try to focus on what we can control. And in the world of sustainability, you have to partner and you have to be reliant on others to deliver. So a huge part of our footprint is carbon emissions from our as sold products. Scope three is what climate experts call it. And so we have to be really involved in helping with the energy transition to green energy, helping energy companies become more sustainable. And so we can only drive so much efficiency out of our systems, especially when you think about generative AI and the compute requirements. So that was where Jeff was really pushing is, customers want more compute, but they also want lower carbon emissions. Those things don't jive. How do you do that? And so our engineers are performing feats every day. Our 16G servers are a great example of how you can do with one server today, with what it took six to do. And 10 years ago, we're driving more efficiency. We also know over provisioning is one of the biggest emitters of emission of carbon and data centers. We can now address that for customers through managed services and things like Apex. And so those are the conversations we're having and he's putting big challenges on the engineering teams, both for ISG and our client business. Because you can be more efficient managing that than a customer could be times a thousand. And then as well, you can apply AI in a consistent way to be more efficient, get more utilization, and do more with less. I mean, even Optimizer and all of our client systems, we've been using that, like Jeff talked about our AI strategy and AI in our systems. Optimizer helps the PC perform better, but it can also help it be more efficient. What are some of the challenges that you've heard from customers, particularly the last year, we've seen so much on climate change, just so many dramatic things going on. What are they coming to you saying, to Dell saying, help us with this, because we know some of the obvious, but anything that's new in particular that you're resetting your bars to accommodate? Well, we have a customer advisory board, as well as a partner advisory board for sustainability specifically. And there are big questions around governance, all the regulations that are coming and how do we make sure we stay ahead of those? How do we inform those? And then how do we comply? And they're, you know, every country is different. And even in the U.S., every state might be different. That's a big one. And then climate. And they ask a lot of questions about data. So we built a sustainability data lake. We're building a knowledge management system that we can apply AI to so that we can get the data to them in terms of product carbon footprints that then can help them calculate the carbon emissions of their full infrastructure so they can use that data in their own reporting for their customers and stakeholders. What do you do about carbon offsets? Is that okay? What about buybacks? Is that okay? There's no industry standard on how to calculate product carbon footprint or PCF. We see some companies gaming the system with their own proprietary way to calculate PCF, so it appears as if their products are more green or sustainable than others. That's the greenwashing that we have to be really careful of. So we need to work together as an industry to define how we want to calculate some of these things so we can better help our customers make decisions. I want to ask you about some of the backlash on ESG. We saw a number of bank failures. In particular, people were criticizing SVB as being too much focused on issues like ESG and not focused enough on their business. Almost blaming things like ESG for the reason the bank failed. What would you say to that? The way we look at ESG is it is part of our business and we think a lot about what does our customers want? They want innovation. They want products that perform better. They want more energy efficient products because it drives down their electric bills. If we're able to achieve our sustainability goals, it is good for the bottom line for our customers as well as good for the planet. So there's real business opportunity in the solutions because today's systems are more productive and efficient than old and we can also help customers think about their end of life strategy. Even things like how our product shows up on a dock and what that bulk packaging looks like that's a real hassle if it's not easy to dispose of. So we're solving real business problems that are also sustainable. I would say on the digital inclusion side, we're very focused on upskilling and re-skilling the future workforce. We have goals around that within our supply chain and for our company and the next generation. 2.9 billion people are not connected to the internet around the world. Those are future consumers. Those are future participants in the digital economy. That creates opportunity, economic opportunity and it helps us deliver on our ESG commitment to transform a billion lives by 2030. All of this goes hand in hand. Think about sustainable business, business and societal impact. It's really not controversial at all. And they're going to use more energy so you have to deal with it on the other side to be able to support that without crushing the system. That's right. There's the circular reference. We saw the UNICEF example yesterday in Chuck's keynote talking about that. And the millions of people that to your point, billions that don't have access to internet but the impact that Dell is making. So is it Project Giga? Well the UNICEF it's called Giga, yes. And it's connected all the schools around the world that are not connected to the internet and the way they're doing it is they're using Dell high performance compute to identify the schools. So they're able to run the data really rapidly to then determine where to focus their resources. And high performance computing is also really important for research. We have high performance compute systems all around the world and they played a really important role in finding a cure for COVID for example. And we're doing digital medical twins. You saw in the Hyundai example yesterday a digital twin for automotive. Well that's being used in the medical fields as well to be able to do precision medicine. And all of this is so intertwined in terms of social innovation that makes lives of people better that also drives revenue for Dell. You know in the security industry, organizations in that space including Dell I'm sure are starting to trade more information because they know it's for the greater good. What's the dynamic with your competitors with respect to ESG? Because virtually all large tech companies are taking this seriously as they should. How do you collaborate with companies that you may be competing with? Well in this space we have to collaborate. We get a lot of pressure like how do we differentiate and how are we going to make sure that our data and our competitive data helps us go after and win against our competitors on the back of sustainability and we want to do that. We're the only server that has an EP Silver certification. That's a differentiator for us, that's a first. We want to market that to our customers but we have to be in this together. For example, years ago we were an original founder of the Responsible Business Alliance. Our competitors were in there with us. Same thing for how we did eco labeling and EP early on, we've got to do the same thing. You know, some of our competitors are part of NextWave and what we're doing around recycled plastics and so it is co-opetition. The world needs us to work together. What we have to do most of all is set standards together. So we know that when we report on data like PCS that it's apples to apples, we want to encourage transparency and so it's all right. We got to do this together and we want to help each other and you think about it applies to DE and I as well in terms of how do we bring more women and underrepresented minorities into the tech industry. That lifts all boats. Well Dell, we do make it some great progress there. I know you got to do more. We all have to do more but you guys. But it's a team effort. High marks there. Yeah, absolutely high marks there. How do you look at sustainability in ESG as you mentioned some of the technical differentiators but in terms of really delivering competitive advantage to Dell among the sea of competition that's there. Well, you know, Michael Dell was a purpose-driven CEO before that was in favor and then maybe not so much but you know our purpose is to create technologies that drive human progress and he helped to democratize the PC and so that's always been at the core of who we are. We're a very entrepreneurial company. You see a problem, you raise your hand, you go fix a problem and that's so much of what is ingrained in the work that we do. If we want to attract the next generation employee and buyer then ESG has to be a really big part of our strategy because we want to make sure that we create a culture where you can bring your full set to work and do your best work and that's how you become more productive. We have a very high say-do ratio in our company. We make a commitment, we keep it. We're evolving a pillar of our ESG strategy from upholding ethics and privacy to upholding trust overall and what you'll see from us at the end of June is the addition of, speaking of security, some security goals including zero trust on what we'll deliver because we believe that security and privacy are two sides of the same coin and we need to make sure that our customers know our products are secure. You've heard a lot about our secure supply chain as an example and that we are giving them transparency and control of their personal data and the way we use it and that's a part of our responsibility and we believe it's a human right as well. You know, it's interesting, two sides of the same coin. I think I first used that analogy maybe 10 years ago but the fact was they were two different coins and now they truly are two sides of the same coin. You can't do one without the other. You also have taken on this role of moderator for certain things like I get to participate, Lisa, you as well and the analysts and media programs. Do you enjoy that? Yeah, I wanted to be Katie Couric when I was little and I never really got to be a journalist and so it's the hair and it's just my like a few times a year I get to pretend I'm one of you and it never was a dream come true but I get to do it every once in a while and it's a great way to learn and stay across all the details of the innovations we're driving and it's fun. You're good at it and as an analyst we really appreciate the opportunity to ask questions. So many times it's like, I feel like the President of the United States has a press conference. No questions and it's very frustrating to people that report us. We always have hip pocket questions in case y'all don't ask anything but I try not to waste time with those because it's your time. That's not been a problem. No, not this week and we've run over every single time so it's been great conversation. The interest is high, the inquiries are there. We so appreciate you coming back on JJ talking about the progress that's been made, the differentiation that ESG within Dell's DNA is giving it and your customers, your partners, the whole ecosystem. We thank you so much for joining us on theCUBE. Can't wait to hear what you're going to do for next year. Thank you, I look forward to being back. Oh likewise, we look forward to having you back. We want for JJ Davis and Dave Vellante. I'm Lisa Martin. Stick around our final segment of the day with another alumni, Gil Schnorsen joins us. He's going to be talking about another new announcement Dell Native Edge announced this morning. How Dell is reimagining Edge operations. You want one of this, we'll see you in a minute.