The Datacenter must evolve to meet
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- Gervase Green
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1 The Datacenter must evolve to meet new business challenges February Lenovo. All rights reserved. 1
2 Agenda 1. Who is Lenovo 2. Key Business challenges 3. Key infrastructure challenge for I.T. 4. What is the answer for I.T. s challenges? 5. Conclusions 2016 Lenovo. All rights reserved. 2
3 THE SCALE, SCOPE & SUPPORT TO HELP YOU GROW PC MOBILE ENTERPRISE SCALE OVER 160 COUNTRIES SCOPE INDUSTRY S WIDEST PRODUCT PORTFOLIO #1 #1 #5 #3 PC in PC+Tablet in Smartphones in Servers X86 SERVER NOTEBOOK STORAGE ANDROID TABS PHONES DESKTOPS NETWORKING WINDOWS TABS SMART TV WORKSTATIONS SOFTWARE SERVICES SUPPLY CHAIN LENOVO OWNED FACTORIES FOR GREATER QUALITY & SECURITY RATED #18 IN WORLD BY GARTNER SERVICES AND SUPPORT 2016 Lenovo. All rights reserved Lenovo. All rights reserved. COMPREHENSIVE GLOBAL NETWORK OF SUPPORT 99.9% OF SERVICE ON SITE, 10,000+ IT SUPPORT SPECIALISTS WW 3
4 TODAY S LENOVO ENTERPRISE GROUP A GLOBAL OPERATIONS Dual headquarters and research centers in Morrisville, NC and Beijing, China Lenovo manufacturing in U.S., Mexico, Brazil, Hungary, China Enterprise Briefing Centers in USA, China, Germany Service and Support in 160 countries and 35 languages ACQUIRED IBM s x86 BUSINESS in 2014 Global expertise and intellectual property Partnerships with leading innovators in industry OEM agreements with IBM for storage + organic storage offerings 2016 Lenovo. All rights reserved. AN E2E TRANSFORMATION Rapid integration of operations Optimization of supply chain Focus on client experience Gaining efficiencies to increase market competitiveness
5 DATACENTERS MUST EVOLVE TO MEET NEW CHALLENGES IT teams face challenging realities driven by shifts in mobile, social, and big data analytics. Data centers are evolving to embrace these trends even as they become more efficient and secure. The amount of data is exploding 2016 Lenovo. All rights reserved. Customer connections have reached unprecedented highs Business leaders are rewriting the role of IT as a growth engine
6 Lenovo provides a rich open partner ecosystem SAP and Lenovo Plan to Bring Advanced Solutions to the New Digital Economy Lenovo and Nutanix to Bring Hyperconverged Infrastructure to Global Enterprises Lenovo and Red Hat Expand Trusted Portfolio of Cloud Offerings Lenovo and Juniper to develop the nextgeneration of data center infrastructure solutions 6
7 Any company that is not thinking about speed, is a company that will be disrupted from its position Innovation does not rest in the back office CIO Karenann Terrell 2015 Lenovo Internal. All rights reserved. 7
8 When you make changes like this, you speed up analytics, which speeds up processes, which speeds up decision-making, which creates exponential change Ron Grabyan Manager of Business Intelligence Services Southern California Edison provides electricity to 14 million customers 2015 Lenovo Internal. All rights reserved. 8
9 Central storage of customer meter reads, providing a single source of the truth More competitive pricing, helping acquire and retain roughly 10,000 additional customers per year 50x faster load forecasting and portfolio aggregation 2015 Lenovo Internal. All rights reserved. 9
10 Enabling IOT Solutions Highlights fully connected enterprise from device to datacenter Heart Rate & Activity Calories Burned Steps & Distance Analysis & Guidance Capture real-time biometric data input Compare to health data model Deliver real-time analytics System x3850 X6 SAP HANA Server Featuring Lenovo product offerings and leading server solutions for SAP HANA System x3850 X6 ThinkPad laptops Yoga tablets Moto 360 watch Moto Droid X phone Real time analysis of biometric data compared with ITU H.860 data model ITU H.860 Data Model 10
11 Agenda 1. Who is Lenovo 2. Key Business challenges 3. Key infrastructure challenge for I.T. 4. What is the answer for I.T. s challenges? 5. Conclusions 2016 Lenovo. All rights reserved. 11
12 OpEx Matters x 250 Mgmt & Admin Total capital spend on new servers remains relatively flat B$ Power and Cooling New Server Spending 1.5x 0.8x 2.8x operational costs, however, are growing dramatically x Source: IDC LENOVO. All rights reserved. 12
13 IT Cost Savings Can Fuel Business Growth Spending Reality Growth Opportunities Strategic spending to improve the company 20-30% Increased investment in strategic areas Spending to maintain and operate current IT environment 70-80% IT cost savings applied to strategic initiatives A reduced cost of IT The real value of IT is to deliver services that enable business growth 2015 LENOVO. All rights reserved. 13
14 Disruptions in Data Center Architecture every Decade Centralized Distributed Virtualized 80 s 90 s 2000 Automated This Decade Mainframes Client/Server Virtualization HCI/Cloud Companies that fail to innovate risk extinction. That's the stark truth in the era of "digital disruption". Pure Software 14
15 Traditional Datacenter Approach Storage Networking Server 15
16 Hyperconverged Infrastructure Simplified IT Eliminating IT silos Avoiding overprovisioning Simplifying datacenter operations Helps reduce time of design, delivery and deployment by up to 75%* *Taneja Group: "Field Report: Nutanix versus VCE Web-Scale versus Converged Infrastructure in the Real World, October
17 Traditional vs. Hyperconverged Infrastructure Traditional Hyperconverged Applications Hypervisor Storage Applications Lenovo HX Appliance With Nutanix Switches Adapters Servers Networking Networking Nutanix delivers 30x faster time-to-value 17
18 Hyperconverged Infrastructure Easy Scale Out 18
19 Hyperconverged Infrastructure Reduced costs Reduce time to value from weeks to days* *Taneja Group: "Field Report: Nutanix versus VCE Web-Scale versus Converged Infrastructure in the Real World, October
20 TCO Analysis: 1000 Employees Five-year ROI: 699% Five-year discounted benefits: $1M+ Five-year TCO savings: 65.3% Payback period: 4.8 months Based on IDC Tool Quantifying the Business Value of Nutanix Solutions Jan 4, 2016 Based on 1000 employees, Aerospace & defense Industry, 4 business critical applications, 2TB of storage, 4 IT staff members 20
21 TCO Analysis: 10,000 Employees Five-year ROI: 665% Five-year discounted benefits:$5,7m+ Five-year TCO savings: 66.5% Payback period: 5.1 months Based on IDC Tool Quantifying the Business Value of Nutanix Solutions Jan 4, 2016 Based on 10,000 employees, Healthcare Industry, 20 business critical applications, 20TB of storage, 100 IT staff members 21
22 Nutanix vs Public Cloud TCO Nutanix Hyper-converged Nutanix NX 8135/8235/ yrs Production Support $409, Nutanix Monthly Lease $7, % LR over 5 years Administrative Cost $ ($140,000/12/250 nodes x 9 nodes) Rack Space $ ($800/15 blocks * 5 blocks) Power $ (2000 kwh x.08 x 728 hrs) Cooling $ (equal Power Costs) Total Monthly Cost $8, VMs TB Storage Major Cloud provider Compute (75 VMs) Virtual Machine A2 Medium (2 cores, 3.5GB RAM) Standard Non-Windows Architecture Assumptions: Approximately 60 applications, 75 VM hosts with 5 ESX host running them. 200TB of storage, where 50TB will be offered by SAS to ESx environment vs 150TB SATA drive. No high IOPS application but lot of video files as archive and some inflight for editing. $ 6, Data + Storage (200 TB) $ 4, Block Blob Locally Redundant Storage Transactions $ 2, IOPs per VM Networking $ Bandwidth Networking $ 2.68 IP Addresses Administrative Cost $ (140,000/12/330 VMs per admin) Total Monthly Cost $13, VMs TB Storage $343, savings 5yr Plus own assets now 22
23 #1 Hyperconvergence 52% market share 1 Leader in Integrated Systems Gartner MQ 2 Only hyperconverged solution supporting all major hypervisors 1. IDC MarketScape: Worldwide Hyperconverged Systems 2014 Vendor Assessment 2. Gartner 2015 Magic Quadrant for Integrated Systems 23
24 #1 R E L I A B I L I T Y 3 Years running Confidence to drive missioncritical applications Maximum uptime and high performance Ease of use Highly secure platform ITIC Global Server Hardware, Reliability Report 2014, 2015,
25 Agenda 1. Who is Lenovo 2. Key Business challenges 3. Key infrastructure challenge for I.T. 4. What is the answer for I.T. s challenges? 5. Conclusions 2016 Lenovo. All rights reserved. 25
26 Lenovo provides a rich open partner ecosystem SAP and Lenovo Plan to Bring Advanced Solutions to the New Digital Economy Lenovo and Nutanix to Bring Hyperconverged Infrastructure to Global Enterprises Lenovo and Red Hat Expand Trusted Portfolio of Cloud Offerings Lenovo and Juniper to develop the nextgeneration of data center infrastructure solutions 26
27 THE SCALE, SCOPE & SUPPORT TO HELP YOU GROW PC MOBILE ENTERPRISE SCALE OVER 160 COUNTRIES SCOPE INDUSTRY S WIDEST PRODUCT PORTFOLIO #1 #1 #5 #3 PC in PC+Tablet in Smartphones in Servers X86 SERVER NOTEBOOK STORAGE ANDROID TABS PHONES DESKTOPS NETWORKING WINDOWS TABS SMART TV WORKSTATIONS SOFTWARE SERVICES SUPPLY CHAIN LENOVO OWNED FACTORIES FOR GREATER QUALITY & SECURITY RATED #18 IN WORLD BY GARTNER SERVICES AND SUPPORT 2016 Lenovo. All rights reserved Lenovo. All rights reserved. COMPREHENSIVE GLOBAL NETWORK OF SUPPORT 99.9% OF SERVICE ON SITE, 10,000+ IT SUPPORT SPECIALISTS WW 27
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