A global technology leader approaching $39B in sales with 54,000 people, and customers in 160+ countries LENOVO. ALL RIGHTS RESERVED
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2 A global technology leader approaching $39B in sales with 54,000 people, and customers in 160+ countries LENOVO. ALL RIGHTS RESERVED
3 Lenovo s Performance Lenovo WW PC Market Share 19.4% % % 8.2% % Lenovo leaps to #286 on Global Fortune 500 list LENOVO. ALL RIGHTS RESERVED
4 Our Unique Heritage * EFFECTIVE OCT 1, 2014 ** ANNOUNCED INTENT TO ACQUIRE ON JAN 29, LENOVO. ALL RIGHTS RESERVED
5 Acquisition Effective October 1, 2014 x86 server business The deal includes: All of IBM s x86 server product lines (including towers, racks, high-density, and blades) All Blade Networking Technology assets Solutions and converged systems tied to x86 A highly skilled System x sales force and key laboratories LENOVO. ALL RIGHTS RESERVED
6 Acquisition Effective October 1, 2014 Lenovo owns 100% of WW IBM x86 business Significant # of employees WW joined Lenovo Employees and business operations in EMEA will be transitioned over the next few months 6
7 A Dynamic IT Market IT teams face challenging realities driven by shifts in mobile, social, and big data and analytics. The amount of data is exploding. Customer connections reached new heights. Businesses planning big data implementations. 7
8 A Dynamic IT Market x86 trends are consistent with these realities 80% clients building new new apps apps for for cloud cloud 40% Converged systems growth % IT budget IT budget spend spend on on management management 63% Big data opportunity outside IT 57% ODM Revenue growth Innovation Workload Optimization Solutions Scale 8
9 A Winning Combination to Capitalize on Opportunities Leading x86 Innovation with Enterprise X-Architecture Workload Optimized Solutions in Cloud, Analytics, HPC Deep Technical X86 Skills Best-in-Class Service and Support Significant Presence in Large Enterprise Business Partner SUCCESS Scale in Channel, Operations and Supply Chain Ease of Doing Business Strong SMB & Channel Relationships Leader in PC & Smart Connected Devices Expanding ThinkServer Footprint STAY THE SAME: The Team Commercial Operations CHANGE: Portfolio Breadth Speed Ambition 9
10 A Rounded Enterprise Portfolio CONVERGED INFRASTRUCTURE HIGH END Protect HIGH VOLUME HPC DENSE LENOVO. ALL RIGHTS RESERVED
11 The Leading x86 Portfolio High-end systems 4 socket+ enterprise-class x86 performance, resiliency, security Converged/Blade systems Integration across IBM assets in systems and SW for maximum client optimization and value BladeCenter Dense systems Optimize space-constrained data centers with extreme performance and energy efficiency idataplex 1P & 2P Rack & Tower systems Broad rack and tower portfolio to meet a wide range of client needs from infrastructure to technical computing Cloud SOLUTIONS Analytics System x Technical Computing LENOVO. ALL RIGHTS RESERVED
12 We are Committed to Current Products/Roadmaps Investments Continue LENOVO. ALL RIGHTS RESERVED
13 Solutions Big Data & Analytics Sample Solutions xseries Systems solutions for SAP HANA xseries System solutions for SAP NetWeaver Business WH Accelerator xseries Systems solution for DB2 with BLU Acceleration on X6 Virtual Desktop Infrastructure Sample solutions xseries SmartCloud Desktop Infrastructure for VMware View xseries SmartCloud Desktop Infrastructure for Citrix XenDesktop xseries SmartCloud Desktop Infrastructure for Citrix VDI-in-a-Box Technical Computing Sample solutions xseries Application Ready Solutions: ANSYS, MSC NASTRAN, Accelrys, Dassault Abaqus, Schlumberger, CLCbio, Technical Computing Mobile & Social Sample solutions Polycom RealPresence Cloud on Flex Cloud Computing Sample solutions xseries Solution for SmartCloud Orchestrator xseries Solution for VMware vcloud Suite xseries Flex System Solutions for MSPs Back-Office & Security Sample Solutions xseries System x Solution for Microsoft Hyper- V on X6 Microsoft Exchange Solution EPIC Healthcare Solution LENOVO. ALL RIGHTS RESERVED
14 2014 LENOVO. ALL RIGHTS RESERVED
15 Lenovo & EMC Strategic Partnership Partnership announced in August 2012 including: Joint venture since 2013 OEM business in China since 2012 OEM Partnership now being taken into EMEA VSPEX reference architectures since 2013 We re excited to partner with Lenovo as we focus our combined energies serving a broader range of customers with industryleading storage and server solutions. Joe Tucci This exciting new partnership will be measured in the years to come not in millions but in billions Yuanquing Yang LENOVO. ALL RIGHTS RESERVED
16 Software Define the Future Purposefully designed products for a software-defined age Optimized for scale-out storage, where hardware and software meet to provide the next generation in storage Driving new levels of storage density and connectivity for compute, network and storage virtualization in the same chassis. Next-generation ThinkServer blends innovation and standardization that are required for this new softwaredefined age LENOVO. ALL RIGHTS RESERVED.
17 Lenovo : Converge on Industry Standards Use (and reuse) industry standard x86 Servers. Deploy with SSD/SAS for Performance and lowcost, High-Density SATA for Capacity. Layer a Storage Hypervisor over your Compute platform. Converge your Compute and Storage environment on a Scale-Out, Scale-Up model Never get caught in a Rip & Replace trap! Network Servers Storage LENOVO. ALL RIGHTS RESERVED.
18 What does this deliver? CAPEX Reduction Just invest in ISS Never get locked in to a Rip & Replace cycle. Elastic Resources Grow reallocate/resource where needed and add capacity or performance on demand. Reduce OPEX costs Shrink the physical footprint and power draw/cooling profile of your DC. DR & Business Continuity Management No need for a separate dedicated SAN Manager utilise server skills to manage all in 1 pane of glass. 18 Consistency in Hypervisor/OS DR and no need for mirrored HW.
19 Why would you do this with Lenovo & EMC? Best in Class Thermals 45 degree Celsius continuous run-time Run it Hotter for Less Best in Class Storage Density 26 drives in a 2U chassis Smaller footprint and lower cost disk Best in Class I/O Density 8 PCI-E slots in 2U Future proof Do more with Less LENOVO. ALL RIGHTS RESERVED.
20 Lenovo Cloud Provision Model Cost Predictable Expenditure Curve Fixed Pricing for Agreed Period $160, $140, $80, $120, $70, $100, $60, Cost Volume Discounts at Pre-Agreed Increments Increase cost savings over time. Attractive Finance Offer to flatten Capex curve Add to existing contract. $50, $80, $40, $60, $30, $40, $20, $20, $10, $- Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 66 Cost Cost Utilisation LENOVO INTERNAL. ALL RIGHTS RESERVED.
21 2014 LENOVO. ALL RIGHTS RESERVED
A global technology leader approaching $42B in sales with 57,000 people, and customers in 160+ countries LENOVO. ALL RIGHTS RESERVED
A global technology leader approaching $42B in sales with 57,000 people, and customers in 160+ countries. 2 Lenovo s Performance Lenovo WW PC Market Share 19.7% 2014 13.1% 2013 2012 9.6% 8.2% 2011 6.5%
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