The Datacenter must evolve to meet

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The Datacenter must evolve to meet

new business challenges

February 2016

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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

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THE SCALE, SCOPE & SUPPORT TO HELP YOU GROW

PC MOBILE X86 SERVER STORAGE NETWORKING SOFTWARE SERVICES ENTERPRISE PC

#1

in Smartphones

#5

in PC+Tablet

#1

in Servers

#3

NOTEBOOK DESKTOPS WORKSTATIONS ANDROID TABS WINDOWS TABS PHONES SMART TV

SCALE

OVER 160 COUNTRIES

SCOPE

INDUSTRY’S WIDEST PRODUCT PORTFOLIO

LENOVO OWNED FACTORIES FOR GREATER QUALITY & SECURITY RATED #18 IN WORLD BY GARTNER

SUPPLY CHAIN

COMPREHENSIVE GLOBAL NETWORK OF SUPPORT

99.9% OF SERVICE ON SITE, 10,000+ IT SUPPORT SPECIALISTS WW

SERVICES AND SUPPORT

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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

AN E2E TRANSFORMATION

• Rapid integration of operations

• Optimization of supply chain

• Focus on client experience

• Gaining efficiencies to increase market competitiveness

TODAY’S LENOVO ENTERPRISE GROUP

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DATACENTERS MUST

EVOLVE TO MEET NEW CHALLENGES

The amount of data is exploding

Customer connections have reached

unprecedented highs

Business leaders are rewriting the role of IT as a growth engine

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.

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Lenovo provides a rich open partner ecosystem

“Lenovo and Nutanix to Bring Hyperconverged Infrastructure to Global Enterprises”

“SAP and Lenovo Plan to Bring Advanced Solutions to the New Digital Economy”

“Lenovo and Red Hat Expand Trusted Portfolio of Cloud Offerings”

“Lenovo and Juniper to develop the

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‘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’

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Southern California Edison provides electricity to 14 million customers

‘When you make changes like this, you speed up

analytics, which speeds up processes, which

speeds up decision-making, which creates

exponential change’

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•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

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Real –time analysis of biometric data compared with ITU H.860 data model

SAP HANA Server Heart Rate & Activity Steps & Distance Calories Burned Analysis & Guidance System x3850 X6 ITU H.860 Data Model

Enabling IOT Solutions

 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

 Capture real-time biometric data input

 Compare to health data model

 Deliver real-time analytics

Highlights fully connected enterprise from device to datacenter

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Agenda

1. Who is Lenovo

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OpEx Matters

Total capital spend on new servers remains relatively flat…

…operational costs, however, are growing dramatically. 0 50 100 150 200 250 300 1995 2000 2005 2010 2015 B$ Mgmt & Admin Power and Cooling New Server Spending

0.5x 0.8x 1.5x 2.8x 3.9x Source: IDC 2015

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IT Cost Savings Can Fuel Business Growth

20-30% 70-80% Increased investment in strategic areas A reduced cost of IT

Spending to maintain and operate current IT environment

Strategic spending to improve the company

Spending Reality

The real value of IT is to deliver services that

enable business growth…

IT cost savings applied to strategic

initiatives

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Disruptions in Data Center Architecture every Decade…

Automated Virtualized

Distributed Centralized

Mainframes Client/Server Virtualization HCI/Cloud

80’s 90’s 2000

Pure Software

This Decade

Companies that fail to innovate risk extinction.

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Server

Storage

Networking

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Hyperconverged Infrastructure

Simplified IT

• Eliminating IT silos

• Avoiding overprovisioning

• Simplifying datacenter operations

Helps reduce time of design, delivery and deployment by up to 75%*

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Traditional vs. Hyperconverged Infrastructure

Networking Servers Storage Adapters Hypervisor Switches Applications Traditional Hyperconverged Lenovo HX Appliance With Nutanix Applications Networking

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Hyperconverged Infrastructure

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Hyperconverged Infrastructure

Reduced costs

Reduce time to value

from weeks to days

*

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TCO Analysis: 1000 Employees

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

Five-year ROI: 699%

Five-year discounted benefits: $1M+ Five-year TCO savings: 65.3%

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21 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

Five-year ROI: 665%

Five-year discounted benefits:$5,7M+ Five-year TCO savings: 66.5%

Payback period: 5.1 months

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Nutanix vs Public Cloud TCO

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.

Nutanix – Hyper-converged

Nutanix

• NX 8135/8235/6235 • 5 yrs Production Support

$409,633.88

Nutanix Monthly Lease

6% LR over 5 years $7,271.00 Administrative Cost ($140,000/12/250 nodes x 9 nodes) $420.00 Rack Space ($800/15 blocks * 5 blocks) $266.66 Power (2000 kWh x .08 x 728 hrs) $116.00 Cooling

(equal Power Costs) $116.00

Total Monthly Cost

75 VMs + 200 TB Storage $8,189.66

Major Cloud provider

Compute (75 VMs)

Virtual Machine A2 Medium (2 cores, 3.5GB RAM) Standard Non-Windows

$ 6,696.00

Data + Storage (200 TB)

Block Blob Locally Redundant $ 4,660.89

Storage Transactions 300 IOPs per VM $ 2,099.52 Networking Bandwidth $ 28.14 Networking IP Addresses $ 2.68 Administrative Cost (140,000/12/330 VMs per admin) $420.42

Total Monthly Cost

75 VMs + 200 TB Storage $13,907.65

$343,079.00 savings 5yr Plus own assets now

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#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

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• Confidence to drive

mission-critical applications

• Maximum uptime and high

performance

• Ease of use

• Highly secure platform

#1

ITIC Global Server Hardware, Reliability Report

2014, 2015, 2016

R E L I A B I L I T Y

3 Years running

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Agenda

1. Who is Lenovo

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Lenovo provides a rich open partner ecosystem

“Lenovo and Nutanix to Bring Hyperconverged Infrastructure to Global Enterprises”

“SAP and Lenovo Plan to Bring Advanced Solutions to the New Digital Economy”

“Lenovo and Red Hat Expand Trusted Portfolio of Cloud Offerings”

“Lenovo and Juniper to develop the

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27

THE SCALE, SCOPE & SUPPORT TO HELP YOU GROW

PC MOBILE X86 SERVER STORAGE NETWORKING SOFTWARE SERVICES ENTERPRISE PC

#1

in Smartphones

#5

in PC+Tablet

#1

in Servers

#3

NOTEBOOK DESKTOPS WORKSTATIONS ANDROID TABS WINDOWS TABS PHONES SMART TV

SCALE

OVER 160 COUNTRIES

SCOPE

INDUSTRY’S WIDEST PRODUCT PORTFOLIO

LENOVO OWNED FACTORIES FOR GREATER QUALITY & SECURITY RATED #18 IN WORLD BY GARTNER

SUPPLY CHAIN

COMPREHENSIVE GLOBAL NETWORK OF SUPPORT

99.9% OF SERVICE ON SITE, 10,000+ IT SUPPORT SPECIALISTS WW