{"id":99648,"date":"2023-09-07T10:06:15","date_gmt":"2023-09-07T09:06:15","guid":{"rendered":"https:\/\/www.cloudcomputing-news.net\/?p=99648"},"modified":"2025-02-12T15:22:16","modified_gmt":"2025-02-12T15:22:16","slug":"why-lenovos-xaas-play-is-gaining-strength-keys-for-digital-transformation-success","status":"publish","type":"post","link":"https:\/\/www.cloudcomputing-news.net\/news\/why-lenovos-xaas-play-is-gaining-strength-keys-for-digital-transformation-success\/","title":{"rendered":"Why Lenovo&#8217;s XaaS play is gaining strength: Keys for digital transformation success"},"content":{"rendered":"\n<p>Lenovo is betting on \u2018everything-as-a-service\u2019 (XaaS) to help organisations navigate their digital transformation journeys \u2013 and the stars now appear to be aligning to an end-to-end landscape.&nbsp;<\/p>\n\n\n\n<p>The value proposition is straightforward: one provider to plan, procure and manage a customer\u2019s IT environment from a single source, offering full maintenance, support and management, real-time insights, and constant ROI through a cloud-like consumption model. Under the TruScale umbrella brand, better known as Lenovo\u2019s infrastructure as a service (IaaS) offering, myriad capabilities are covered, from infrastructure, to device, to platform, as well as vertical solutions.<\/p>\n\n\n\n<p>At a Budapest analyst summit in June, where Craig Routledge, Lenovo\u2019s executive director for hybrid cloud, outlined the TruScale strategy, progress was noted. Matt Kimball, of Moor Insights and Strategy, <a href=\"https:\/\/www.forbes.com\/sites\/moorinsights\/2023\/06\/19\/research-note-lenovo-infrastructure-solution-summit-23\/?sh=298b8c697aa7\">wrote<\/a>: \u201cThe company is making suitable investments and focusing on the right solutions to stand up TruScale as an effective service.\u201d<\/p>\n\n\n\n<p>The hard work with the analysts and consultants has therefore paid dividends, as Routledge explains. \u201cIt\u2019s interesting \u2013 a year ago, awareness [of TruScale] was pretty low,\u201d he says. \u201cWe are interested in [industry] recognition and what I would call competitor recognition. They know we\u2019re here now.\u201d<\/p>\n\n\n\n<p>What\u2019s more, Routledge feels Lenovo has also benefited from what he calls competitors\u2019 \u2018missteps\u2019. \u201cSome companies have grown some of their services capability very quickly and tried to diversify from OEM-type products into services, then into solutions, then into software, and tried to do that over a very short period of time,\u201d he explains. \u201cCertainly, becoming a software company at scale is a massive, hugely different challenge.\u201d<\/p>\n\n\n\n<p>This is where a longer haul strategy comes into play. In Lenovo\u2019s solutions and services group (SSG), Routledge notes that his customer base is growing consistently with each quarter, a mix of long-term customers who have bought PCs and have agreed to let Lenovo handle their infrastructure and applications, to customers used to buying infrastructure, to those simply looking past their current OEM. He describes it as a \u2018continual evolution\u2019 of sales, pre-sales, and design and delivery capability to take account of these varied conversations. \u201cThat\u2019s ongoing,\u201d he adds. \u201cWe haven\u2019t got to the end of that journey by any means.\u201d<\/p>\n\n\n\n<p>One example of a customer XaaS story is US retailer Kroger. Kroger <a href=\"https:\/\/www.lenovo.com\/content\/dam\/lenovo\/dcg\/global\/en\/customer-stories\/case-study-kroger.pdf\">uses Lenovo\u2019s edge AI servers<\/a>, wrapped up with warranty services, to help fortify its self-service checkouts, handling hundreds of hours of video each day from tens of thousands of transactions. There are various benefits, from stock placement based on store traffic, to reducing shrinkage; making sure customers can scan items correctly and creating more efficient processes not just for the customers but for the wider store.<\/p>\n\n\n\n<p>\u201c[These customers] view the \u2018everything as a service\u2019 concept, where we wrap around a software layer, a service layer, a support layer, and bundle that together as a complete solution for the customer, as very exciting,\u201d Routledge adds.<\/p>\n\n\n\n<p>This wide-ranging process gets to the heart of how Routledge defines digital transformation as a term. \u201cI would say digital transformation is taking existing business requirements and digitising them end-to-end \u2013 and that to me is the difference,\u201d he says. \u201cFor a long time, organisations have digitised pieces of processes, [such as] putting up ways to fill in smart PDFs and [digitally] sign them, which is all well and good [until] you\u2019ve then got to transcribe that document into something else.<\/p>\n\n\n\n<p>\u201cUnless it flows all the way through, enabling that flow all the way through in a complete environment, it doesn\u2019t really add enough value. It doesn\u2019t help the customer leave the old ways of working behind.\u201d &nbsp;<\/p>\n\n\n\n<p>Often, companies are aware of the capability of digital transformation. They just want the consistency to go with it. Kroger, for example, was also using a visual AI application from Everseen, running on Lenovo servers. \u201cQuite often, customers already have the software that they want, and they know what they want,\u201d explains Routledge. \u201cWhat they need is a super-high performing, consistently priced infrastructure.<\/p>\n\n\n\n<p>\u201cThat\u2019s at the other end of the \u2018everything as a service\u2019 infrastructure; consistent price per terabyte, per gigabyte of virtual memory; the consistent price per hour of running it, combined with the managed services and professional services to operate it,\u201d he adds.<\/p>\n\n\n\n<p>This consistency is especially important when you\u2019re operating at speed. When Lenovo <a href=\"https:\/\/news.lenovo.com\/pressroom\/press-releases\/global-everything-as-a-service-strategy\/\">launched its global XaaS strategy in 2021<\/a>, a stat attributed to Ken Wong, SSG president, stood out: CIOs were saying that their organisation\u2019s technology needs were evolving every 12 to 18 months. Routledge says this is still the case, but emphasises the need for security \u2013 in a financial sense \u2013 when undergoing such churn.<\/p>\n\n\n\n<p>\u201cTheir needs are probably revolving even quicker, though the ability to implement is still at the 12 to 18 month window,\u201d notes Routledge. \u201cBut the other issue is: how do you finance that? If you suddenly have to abandon your old IT architecture after 12 to 18 months, many IT organisations take a massive write off and the corporations just can\u2019t afford that.<\/p>\n\n\n\n<p>\u201cThat\u2019s part of the reason why, both for our device as a service and our infrastructure as a service, we try and embed financing and asset control into that model,\u201d Routledge adds. \u201cIf the customer needs to make a change, we can migrate some of the assets that are maybe a year, or two years old, use them for less strenuous applications that are not as demanding in terms of processing and memory, and put new systems in. That helps mitigate the financial pain for the customer.\u201d &nbsp;&nbsp;<\/p>\n\n\n\n<p>Another aspect which is very important to Lenovo across this digital transformation process is sustainability. Kimball described the company as \u2018manically focused\u2019 in this regard, and Lenovo is cited as the best rated IT company in the Hang Seng Corporate Sustainability Index.<\/p>\n\n\n\n<p>The company has a liquid data centre cooling technology called <a href=\"https:\/\/www.lenovo.com\/in\/en\/data-center\/neptune?orgRef=https%253A%252F%252Fwww.google.co.uk%252F\">Neptune<\/a> which aims to \u2018go beyond simply cooling the CPUs\u2019 and not sacrifice energy efficiency for higher performance. \u201cPart of this digital transformation is making sure that we have a minimal impact on the environment, because data centres are pretty hot places to be,\u201d notes Routledge.<\/p>\n\n\n\n<p>Routledge is speaking at the <a href=\"https:\/\/www.digitaltransformation-week.com\/europe\/speaker\/craig-routledge\/\">Digital Transformation Week Europe<\/a> event in Amsterdam on 26-27 September on key considerations for technology investment in this landscape \u2013 and expect many of these themes to feature. \u201cDon\u2019t think \u2018I need to transform this little piece of my data centre\u2019,\u201d he explains. \u201cLook at \u2018can I get the power from this somewhere differently?\u2019, or \u2018can I design the platform differently, so it gives the business outcome quicker?\u2019<\/p>\n\n\n\n<p>\u201cThe key theme is \u2013 don\u2019t think in narrow silos.\u201d<\/p>\n\n\n\n<p><em><a href=\"https:\/\/news.lenovo.com\/pressroom\/press-releases\/lenovo-ships-1m-units-from-hungary\/\">Picture credit: Lenovo<\/a><\/em><\/p>\n\n\n\n<p><strong><em>Want to learn more about how to power your digital transformation journeys from industry leaders? The <a href=\"https:\/\/www.digitaltransformation-week.com\/\">Digital Transformation Week<\/a> event series takes place in Amsterdam, California, and London. Explore other upcoming enterprise technology events and webinars powered by TechForge <a href=\"https:\/\/techforge.pub\/upcoming-events\/\">here<\/a>.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lenovo is betting on \u2018everything-as-a-service\u2019 (XaaS) to help organisations navigate their digital transformation journeys \u2013 and the stars now appear to be aligning to an end-to-end landscape.&nbsp; The value proposition is straightforward: one provider to plan, procure and manage a customer\u2019s IT environment from a single source, offering full maintenance, support and management, real-time insights, [&hellip;]<\/p>\n","protected":false},"author":399,"featured_media":99649,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[501,496,46,30,38,1969,20],"tags":[],"ppma_author":[891],"class_list":["post-99648","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cloud-computing-digital-transformation","category-cloud-computing-enterprise","category-cloud-computing-hybrid-cloud","category-cloud-computing-infrastructure","category-cloud-computing-infrastructure-service","category-interviews","category-cloud-computing-retail-consumer"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.9 (Yoast SEO v24.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Lenovo&#039;s XaaS play is gaining strength: Keys for digital transformation success<\/title>\n<meta name=\"description\" content=\"Why 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