1

The Datacenter must evolve to meet

new business challenges

February 2016

2016 Lenovo. All rights reserved.

22016 Lenovo. All rights reserved.

Agenda1. Who is Lenovo2. Key Business challenges3. Key infrastructure challenge for I.T.4. What is the answer for I.T.’s challenges?5. Conclusions

3

THE SCALE, SCOPE & SUPPORT TO HELP YOU GROW

PC

MOBILE

X86 SERVERSTORAGE

NETWORKINGSOFTWARE

SERVICES

ENTERPRISEPC

#1in Smartphones

#5in PC+Tablet#1

in Servers#3

NOTEBOOKDESKTOPS

WORKSTATIONSANDROID TABS

WINDOWS TABSPHONES

SMART TV

SCALEOVER 160 COUNTRIES

SCOPEINDUSTRY’S WIDEST

PRODUCT PORTFOLIO

LENOVO OWNED FACTORIES FOR GREATER QUALITY & SECURITYRATED #18 IN WORLD BY GARTNERSUPPLY CHAIN

2016 Lenovo. All rights reserved.

COMPREHENSIVE GLOBAL NETWORK OF SUPPORT 99.9% OF SERVICE ON SITE, 10,000+ IT SUPPORT SPECIALISTS WWSERVICES AND SUPPORT

2016 Lenovo. All rights reserved.

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

2016 Lenovo. All rights reserved.

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.

2016 Lenovo. All rights reserved.

6

Lenovo provides a rich open partner ecosystem

“Lenovo and Nutanix to Bring HyperconvergedInfrastructure 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 next-generation of data center infrastructure solutions”

72015 Lenovo Internal. All rights reserved.

‘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

82015 Lenovo Internal. All rights reserved.

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’

–Ron Grabyan Manager of Business Intelligence Services

92015 Lenovo Internal. All rights reserved.

•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

10

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

112016 Lenovo. All rights reserved.

Agenda1. Who is Lenovo2. Key Business challenges3. Key infrastructure challenge for I.T.4. What is the answer for I.T.’s challenges?5. Conclusions

122015 LENOVO. All rights reserved.

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

0.8x1.5x

2.8x

3.9x

Source: IDC 2015

132015 LENOVO. All rights reserved.

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

Growth Opportunities

14

Disruptions in Data Center Architecture every Decade…

AutomatedVirtualizedDistributedCentralized

Mainframes Client/Server Virtualization HCI/Cloud

80’s 90’s 2000

Pure Software

This Decade

Companies that fail to innovate risk extinction. That's the stark truth in the era of "digital disruption".

15

Server

Storage

Networking

Traditional Datacenter Approach

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 2014

17

Traditional vs. Hyperconverged Infrastructure

Networking

Servers

Storage

Adapters

Hypervisor

Switches

Applications

Traditional Hyperconverged

Lenovo HX ApplianceWith Nutanix

Applications

Networking

Nutanix delivers 30x faster time-to-value

18

Hyperconverged Infrastructure

Easy Scale Out

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 2014

20

TCO Analysis: 1000 Employees

Based on IDC Tool “Quantifying the Business Value of Nutanix Solutions” Jan 4, 2016Based 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%

�Payback period: 4.8 months

21

Based on IDC Tool “Quantifying the Business Value of Nutanix Solutions” Jan 4, 2016Based 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

TCO Analysis: 10,000 Employees

22

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 Lease6% LR over 5 years

$7,271.00

Administrative Cost($140,000/12/250 nodes x 9 nodes)

$420.00Rack Space($800/15 blocks * 5 blocks)

$266.66Power(2000 kWh x .08 x 728 hrs)

$116.00Cooling(equal Power Costs)

$116.00Total Monthly Cost75 VMs + 200 TB Storage

$8,189.66

Major Cloud providerCompute (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 Transactions300 IOPs per VM

$ 2,099.52

NetworkingBandwidth

$ 28.14 Networking IP Addresses

$ 2.68 Administrative Cost(140,000/12/330 VMs per admin)

$420.42Total Monthly Cost75 VMs + 200 TB Storage

$13,907.65

$343,079.00 savings 5yrPlus own assets now

23

#1 Hyperconvergence – 52% market share1

Leader in Integrated Systems – Gartner MQ2

Only hyperconverged solution supporting all major hypervisors

1. IDC MarketScape: Worldwide Hyperconverged Systems 2014 Vendor Assessment

2. Gartner 2015 Magic Quadrant for Integrated Systems

24

• 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

252016 Lenovo. All rights reserved.

Agenda1. Who is Lenovo2. Key Business challenges3. Key infrastructure challenge for I.T.4. What is the answer for I.T.’s challenges?5. Conclusions

26

Lenovo provides a rich open partner ecosystem

“Lenovo and Nutanix to Bring HyperconvergedInfrastructure 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 next-generation of data center infrastructure solutions”

27

THE SCALE, SCOPE & SUPPORT TO HELP YOU GROW

PC

MOBILE

X86 SERVERSTORAGE

NETWORKINGSOFTWARE

SERVICES

ENTERPRISEPC

#1in Smartphones

#5in PC+Tablet#1

in Servers#3

NOTEBOOKDESKTOPS

WORKSTATIONSANDROID TABS

WINDOWS TABSPHONES

SMART TV

SCALEOVER 160 COUNTRIES

SCOPEINDUSTRY’S WIDEST

PRODUCT PORTFOLIO

LENOVO OWNED FACTORIES FOR GREATER QUALITY & SECURITYRATED #18 IN WORLD BY GARTNERSUPPLY CHAIN

2016 Lenovo. All rights reserved.

COMPREHENSIVE GLOBAL NETWORK OF SUPPORT 99.9% OF SERVICE ON SITE, 10,000+ IT SUPPORT SPECIALISTS WWSERVICES AND SUPPORT

2016 Lenovo. All rights reserved.