 as a courtesy to the presenters and those around you. Please silence all mobile devices. Thank you. Ladies and gentlemen, please take your seats. Our program will begin momentarily. Take an available seat. We will begin momentarily. Thank you. Please take the available seats to your left. House left, there are many available seats. Good morning. This is Lenovo Transform 2.0. Progress. Why do we always talk about it in the future? When will it finally get here? We don't need 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 company's 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 be building today. Because the progress we need can't wait for the future. Please welcome to the stage Lenovo's Rod Lappin. Good morning, everyone. Oh, 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. 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, for 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 Amio were coming in. The plane was circling around New York for a long time. And Cameron Armini, 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 Cameron 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 seriously. 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. I 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 Tiesman 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. A big round of applause for everyone who's come in. We have a great agenda for you today and it starts obviously a very consistent format which was 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 turn the corner and really driving some great strategy to address our customers' needs. Kirk Scalgan, our Executive Vice President of DCG, will be 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 Tiesman, 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 of 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, MBG and our DCG businesses out to showcase what we're doing as an organisation to better address your needs. And then obviously we have the technology pieces that I've also spoken about. 62 different technology displays there arraying from everything, IOT, 5G, NFV, everything that's really cool and hot in the industry right now is going to be on display up. Then 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 stage. So we've got a couple of demonstrations to show you today. One of the great ones here is the one we've done with NC State on high performance computing artificial intelligence demonstration of fresh produce. It's about modelling the population growth in the planet and how we're going to supply water and food as we go forward. Oh, that is not an apple. Okay. The second one over here is really, hey Jonas, how are you? It's really around virtual reality and how we look at one of the most amazing sites we've got as an install in our high performance computing practice here globally. You can see obviously that this is Barcelona's 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. Okay. 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. All right. So listen, the last thing on the agenda, we've gone through the breakout sessions in 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 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 ado, it gives me great pleasure to introduce you a lover of tennis, as some of you would have heard last year, at Lenovo Transform, as well as a lover of technology, Lenovo, and, of course, New York City. I'm obviously very pleasured to introduce to you Yang Yang Ching, our CEO, as we like to call him, YY. Good morning, everyone. Thank you, Rod, for the 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 forced industrial revolution and our vision around the intelligent transformation. How it would fundamentally change the nature of business and customer relationships. And while preparing for this transformation is a key for the future of our company. And in the last year, I can assure you, we've been 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. What's clear to me is that the last few years of our purposeful disruption at Lenovo have led us to a point where we can now claim leadership of the coming intelligent transformation. People often ask me, what is the intelligent transformation? I was saying this way. It's the unlimited potential of the force industry revolution driven by artificial intelligence being realized, ordering a pizza through a speaker, unlocking the door with a look, letting your car drive itself back to your home. This indeed reflected the power of AR but just the surface of it. The true impact of AR will not only make our homes smarter and offices more efficient, but will also completely transform every value chain 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 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, dozens of companies provided 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 the driving was like in the US up until 1950s. Good luck finding your way. And today, millions of vehicles are organized and routed daily, making the world more efficient. Structure is vital. From fiber cables and interstate highways to how sales bound 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? You believe there are three key building blocks. Data, computing power, and algorithms. Ever wondered what is behind the intelligent transformation? What is fueling this miracle of human possibility? Data. As the internet becomes ubiquitous, not only PCs, mobile phones have come online generating data. Today, it is the cameras in this room. The climate controls in our offices are 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 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 the 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 the big data technology and the 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 data center now firmly part of our business. I'm often asked, why did you acquire these businesses? Why has 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. There were the companies that saw the future and what the future required. And I believe Lenovo is the company today. From the 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. I understand the important data place as a field in intelligent transformation. Hundreds of billions of devices and smart IOTs in the world are generating data 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 produce smartphones, smart speakers, smart displays, ARVR facets, as well as commercial IOTs. All of these smart devices or smart IOTs will link 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 cloud. We actually make four devices every second and 37 motherboards every minute. So this factory located in my hometown, Hefei, China is actually the largest laptop factory in the world with more than 3 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 amounts of data which very few companies can send. So why is the ability to scale so critical? Let's look again at our example from before. The early days of California, 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 rest 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 the 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 the edge computing IOTs, getaways and mini servers are making computing available everywhere. Did you know? Lenovo is the number one provider of supercomputers worldwide. 117 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, hyperconverged and aggressively growing in edge computing. Kirk Skogun will expand on this point too. And finally, to run these individual nodes into a symphony, we must transform the data and utilize the computing power with advanced algorithms, manufacturing, industry maintenance, healthcare, education, retail and more. So many industries are on the edge of intelligent transformation to improve efficiency and provide better products and services. We are creating advanced algorithms and 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 AR that improved our demand-focusing 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 accuracy by 30 points to nearly 90% for both steel, the largest steel manufacturer in China, probably in the world as well. Led by Lenovo Research, we launched the industry-leading commercial radio AR headset desktop, partnering with companies like the ones in this room. This technology is being used to revolutionize the way companies service utility and even jet engines. Using our workstations, service and award-winning image processing algorithms, we have partnered with hospitals to process complex CT scan data in minutes. This enabled doctors to more successfully detect tumors and increase the success rate of cancer diagnosis all around the world. We are also piloting a smart IoT-driven warehouse solution with one of the world's largest retail companies to greatly improve their 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 a new 5G model 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 the 5G mobile experience to end-users, customers. This is amazing innovation. You don't have to buy a new phone, just the 5G clip-on. What can I accept? Wow. 5G is 10 times faster than 4G. It's download speeds. We will transform how people engage with the world. Drive this car, new types of smarter wearables, gaming, home security, industrial intelligence, all will be transformed. Finally, accelerating with the 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, unified standards, shared advantage, and market synergies. We partner with the biggest names in the industry, Intel, Microsoft, AMD, Kocop, Google, Amazon, and Disney. We also find and partner with 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 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 will measure 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 Skogun, our president of the data center group, to tell you about the exciting transformation happening in the global data center market. Thank you. Well, 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, 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, as 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 as 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 over the next 25 years to 100 billions of connected devices. So each and every one of you is going through this intelligent transformation journey and in many aspects we're 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 in the house when you bought the server as a marketing campaign. 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 Mx 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 2,000 companies by our peer group. But we also now are one of the... But we also got a perfect score in the LBGTQ 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. 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 Think Server 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. Think Agile for Next Generation IT and all of our software-defined infrastructure products. And Think System 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 in 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 re-engaged our system integrator channel. Last year we had the CIO of DXC on stage and here we're talking about more than 175% growth through our system integrator channel in the last year alone as we brought that back and really built strong relationships there. So thank you very much for amazing work here on the customer experience. 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% of our executives were now hired internally, and 31% 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. 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, etc. And we're proud to have just brought on Doug Fisher from Intel Corporation who had about 10 to 17,000 people on any given year working for them 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 in a blind survey ask 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 that was over four hours as noted by these 750 CXOs in more than 20 countries is about 1% for the Lenovo products and is getting worse generation from generation as we went from Broadwell to Perley. So we're taking our reliability which was really paramount in the IBM SystemX 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 once again have been ranked number one in customer satisfaction from you, our customers in 19 of 22 attributes in North America and 18 of 22. This is a survey by TBR 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% 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. Could run the video please. 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% growth quarter on quarter and 49% growth year on year. If you look at the progress we made since the transformation the last three quarters publicly we've grown 17%, then 44%, then 68% 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 100% 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 SystemX 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. 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 Reader's Choice from the last international supercomputing show where the scientific researchers on these computers rank their vendors and we were actually rated the number one server technology in supercomputing with our ThinkSystem ST530 and the number one storage technology with our ThinkSystem DSSG 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 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 SightNet 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 show down 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 Uninet the largest supercomputer in Norway T-Systems University of Birmingham this is truly amazing technology 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 Nvidia from our FPGA partners to work on their workloads and how they can best implement artificial intelligence and we also this year launched Lyco 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 AI workloads on it simultaneously delivering better TCO for your environment so check out Lyco as well a lot of the customers here in Wall Street are very excited and using it already and we talked about solving humanities 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 was just ranked the world's most beautiful data center the Barcelona supercomputer so you can actually walk through one of the most beautiful data centers in 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% 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 this as the 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 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 plus we believe that hyperscalers want more procurement power than an ODM and Lenovo is doing about 18 billion dollars 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 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 for this factory we're YY said we're running 37 notebook boards a minute we're now putting in tens and tens of thousands of server board capacity per month into the same factory so absolutely we can compete with the most aggressive ODMs 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% on-time delivery to 35 data centers in 14 countries as diverse as South Africa India China Brazil etc and I'm really ashamed to say it was 99.3 because we did have a really good time we had a lot of people who ran their forklift right through the middle of the one of the server racks 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 5 global supply chain in technology so last year I said we would invest significantly in IP in joint ventures and M&A to compete in software defined in networking and in storage so the next step is with cloudistics enabling a fully composable cloud infrastructure it's an exclusive agreement you can see them here I think Najar founder is going to be here today with a significant Lenovo investment in the company so this new Think Agile CP series delivers the simplicity of the public cloud on premise with exceptional support and a marketplace of essential enterprise applications so we're going to 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 and a private cloud to unlock opportunity for you so we're extremely excited to have a new Think Agile 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% year on year with Nutanix as their fastest growing Nutanix partner but today I want to set another audacious goal I believe we can not 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 Think Agile on Broadwell and on Skylake with the Azure Stack infrastructure and on VM where 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% more VM density than any competitive SSD system in the marketplace about 10 times lower latency 4 times the performance of any SSD system out there and Lenovo's first to market on that we're all you saw CEO Pat Gelsinger of VMware talk 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, Colombia here an 8 million person city where we announced a 3,000 camera video surveillance solution with Pivot 3 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 hyperconverged 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 100% growth year on year in flash arrays IDC just reported 30% growth in storage number one in price performance in the world and the best HPC storage product in the top 500 with our think system DSSG 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 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 power houses 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% of the global storage market to more than 90% 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 X clarity 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 can as customers take advantage of immediately 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% owner and that app a 49% 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 R&D in China for China pooling our IP and resources together and delivering a single route to market through a complimentary 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 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 thank you Kurt so Brad we've known each other a long time today 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 Kurt Kurt 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 and 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 Curian our CEO George spent all day yesterday with YY and Kurt 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 Kurt 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 customer 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 EMSI and Dell and we plan to keep on going by them as we help customers modernize 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 a new disruptive hyperconverged 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 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 we are also building this partnership for long term success we think about this as phase one and there are two important components of phase one, Kurt 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 increased go to market investment to meet the unique needs of 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 Kurt is that the first products are orderable and shipable this week in 160 different countries and you'll 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 focus 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 to 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 net app 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 complimentary 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 would like to invite Kurt back up thank you thank you Brad I think it is an exciting overview and these products will be manufactured in China in Mexico and 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 is 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 that future Lenovo events around the world we have this transform in Beijing in a couple of weeks we will then be repeating this in 20 different locations roughly around the world and I am 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 upgradeable 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 V-Bros with video streaming demonstrations with 2x less jitter than they had seen before you saw China mobile with a virtual remote access network a V-RAN with greater than 10 times the throughput and 10x lower latency running on Lenovo so we will 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 recently hired a new CEO you are 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 are going to need new economics so we can uniquely deliver the second on IoT and edge we have integrated on the device side into our intelligent devices group with everything that is 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 are 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 are going to see Lenovo delivering hardware as a service, devices 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 have developed true flexible metering capability that enables you to scale up freely and paying strictly based on usage and we will 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 am 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 date optimization and privacy Cynet the largest supercomputer we have 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 hyperconverged solutions around smart city putting in 3,000 cameras for criminal detection license plate detection etc and then more from a channel mid-market perspective Jerry's Foods which is from my home state of Wisconsin in Minnesota which has about 57 stores in the specialty foods market and how they are leveraging our IOT solutions as well so again about 5 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 are on a tremendous role you saw from last year we are trying to build credibility with you after the largest server portfolio we are now the fastest growing server OEM per gardener, 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 3 in China multi-billion dollar collaboration with NetApp and the transformation 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 look forward to meeting many of you over the next day we appreciate your business and with that I would like to bring up Rod Lapin to introduce our next speaker Rod? all right ladies and gentlemen no real secret there the fourth industrial revolution and 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 Teisman our Senior Vice President and General Manager of commercial business for both our PCs and our IOTS business so Christian Teisman I don't 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 you had in New York for a long time and now you've moved from New York you're in Munich, how does that feel? well Munich is a wonderful city and it's a great place to live and race kids but you know there's no place in the world like New York and I miss it a lot quite frankly so what exactly do you miss? that are unique but I know you've spent some time in Japan but I still believe the best sushi in the world is still in New York City I will beg to differ I think Ms. Gutsun from Softbank is here somewhere he will get up and 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 very similar to 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, unfortunately I'm not going this year because you didn't invite me but how about I think you've got a bit of a secret in relation to Oktoberfest probably not in Munich however are you going to share? 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 some Schneider where I actually met my wife and she's German there you go so how about a big round of applause not so much for Christian but more I think obviously for his wife who obviously had been drinking and consequently ended up with you see you later mate the beauty about Oktoberfest yes so first of all good morning to everybody great to be back here in New York for our 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 in 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 the 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 devices and smartphones are now under the roof under the intelligent device group what 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 customers 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 the 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 the new generation of workforce has completely changed the way we are working as the famous 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% of the world's will be composed out of two 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 taking these learnings and taking these behaviors in the commercial workspace and this is the number one force of change that we are seeing 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% market share we can solve problems better than any other company in the world so let's talk about transformation of productivity first we are in a device that 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 already 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 every single end user in the commercial business is composing his personal wardrobe on an ongoing base and is reconfiguring it based on the work he's doing and based where he's going and based what task he is going I would ask all of you to put out all the devices you are carrying in your pockets and in your bags you will see a lot of you are using phones but also cameras and even smartwatches they are 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 emerging technologies like AR VR IoT and ultimately AI as well a couple of years back there was a big debate around bring your own device or what's called consumerization today consumerization does not exist anymore because consumerization has happened into every single device we build in our commercial business end users in 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 view 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 a marketplace we sold more than 140 million over the last 26 years and even last year we exceeded nearly 11 million units 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 go 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 and we announced a new TES 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 one business laptop of all time your only competition is yourself like resisting heat by a team one business laptop of all time. But it's not a laptop. It's a ThinkPad. 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 that'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 Xtreme. 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 has 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 in 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're running on Intel, Xeon technology, and they're 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 on 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 want to 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 customers who went on this journey with us and ultimately, jointly with us, created this product. So let's take a look at the video. My role involves identifying all the hardware needs for the various work streams for the company, and then finding an appropriate model of desktop, laptop, or workstation to match those needs. My first impressions while I first seen the ThinkPad P1 was I didn't actually believe that we could get everything out for inside something as small and light in comparison to other mobile workstations. But it was one of the, I can't believe this is real, sort of moments for me. Autability in general while you're going around on a wind tunnel, which is not always easy, and going on a track is not necessarily a desert there, so having a lightweight, very powerful laptop is extremely useful. It can take a Xeon processor, which can support your CC brand. We're trying to load a full car, and when we're analyzing large simulation results from our TFD post-process, for example, it needs a pretty powerful machine. It's come a long way to be able to deliver this. I hate to use a game changer, but it is that for us. Aston Martin's got a lot of different projects going on at the moment. There's some pretty exciting projects, and a pretty versatile range coming out. Having Linovo as a partner, certainly going to ensure that future. So don't you think the Aston Martin design and the ThinkPad design fit very well together? So if Q would get a new laptop, I think he would get a ThinkPad 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 of 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 $6 trillion. That's more than the GDP of Japan. And we've seen a significant amount of data breach incidents already this year that are 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 Linovo we are taking security very very seriously and we run a very deep analysis around our own security capabilities and the products that we are building. And we are announcing today a new brand under the Think umbrella that is called Think Shield. 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 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 user's identity, to protect you in unsecured Wi-Fi locations. Or even simple things like innovation on the device itself to as an example protect the camera against usage with a little thing like a Think Shatter that you can shut off the camera. So what I want to show you here is this is the full portfolio of Think Shield 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 Think Shield 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 keep 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-field 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 and 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 Lenovo 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 with a new IT there is also I think a new philosophy around IT management where you're much more focused on the value that you're 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. We have a complete set of offerings and already a significant number of customers that have deployed autopilot with Lenovo. The second major offering is Premier support. Like 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 to be 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. Thank you, Damon. Thank you. Thank you very much. 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 help us design, manufacture, and distribute the best tire in the world. I just had to say I put it out there. And I was wondering, were those Michelin tires not Austin Martin? I'm pretty sure there's no other tire that would fit to that. 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're deploying to really enable this cooperation. So let me give you a little bit of history about the company to understand the daunting tasks that we had before. There were 114,000 people in the company under 170 nationalities. 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. Inside of the Americas, we merged the Americas about three years ago. Now we have the Americas zone. There's about 28,000 employees across the Americas. So it's really hard in a lot of cases, you start looking at the different areas that you lose time and you lose your productivity and what have you. So when we looked at different aspects of how we were going to manage the meeting rooms 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 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 just worked. 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 you know what I'm talking about when I say this, it equates to many, many, many dollars. So at the end of 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're 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're 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 mentioned 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 dunning testing is 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 the 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 when the end of the project will have autopilot fully engaged, but what I really appreciate is how Lenovo really kind of got with us and partnered with us through 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. We hope to have something in a full production mode next year for sure. So, Damon, thank you very, very much to be here with us on stage. What I really want to say, customers like you, we're 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 workspace 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 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. Well, it's sometimes really refreshing to get a very challenging customer's 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 does it really, how do we make businesses smarter than ever? What it really means is that we are on a journey on trying to understand our customers' business deeper than ever, understanding our customers' 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 the 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. Why have I 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 in how many operators in the world we already present with our motor phones with how many telcos we are working already on the back end 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 want to pick here one example and that is that we have created a commercial VR solution for classrooms in 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 study in sciences they can look at environmental issues they can explore in their careers or they can even take a tour in the next college they want 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. Another area that we are looking is IoT and as why I 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 more competitive and one 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 in our future generations of products on an ongoing base. We have a very strong partnership with a company called AD-Link from Taiwan that is one of the leading manufacturers of manufacturing PCs 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 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 kind 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 smart office. We are creating a similar platform for augmented reality where companies can develop and run all their augmented 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 of you available there. It's still a code name 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 breath 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. I need that. All right 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 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 the Twitter and some of the social media handles 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 to the media who are obviously in the room publishing right now. 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 or 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. Here we are in the browser. God, I hate that dance. I'm not a millennial at all. It's effectively going to be implemented for 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 other in cars. You've got to come past and give that a try obviously. Fantastic event here. Lots of technology for the experience and great partners that have been involved as well. And so from a Lenovo perspective we have great aligned partners contributing including obviously our number one partner in Intel who has been a really big loyal contributor to us and been a real part of our success here at Transfair. 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 to 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 you've got to try and do better. You've 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 detail 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 48, 49. There's a 41, 14. 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 four o'clock right behind us, at the pier right behind us here. There's 400 of us registered. Go on to 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 day. Thank you very much.