1 00:00:02,240 --> 00:00:05,840 Speaker 1: The global appetite for data is growing faster than ever, 2 00:00:06,160 --> 00:00:09,280 Speaker 1: and no matter what statistics you use to describe it, 3 00:00:09,560 --> 00:00:13,760 Speaker 1: big data is big business. We believe hundred and fifty 4 00:00:13,840 --> 00:00:17,599 Speaker 1: billion devices will be connected by and more than a 5 00:00:17,720 --> 00:00:22,599 Speaker 1: hundred zetabytes of data will be created every eighteen month. 6 00:00:23,040 --> 00:00:26,000 Speaker 1: The data that is produced by the world is we 7 00:00:26,040 --> 00:00:29,800 Speaker 1: started talking about petabytes and exibites and now we're talking 8 00:00:29,800 --> 00:00:36,120 Speaker 1: about zetabytes. It's a near unimaginable explosion in data and 9 00:00:36,440 --> 00:00:39,320 Speaker 1: companies just don't know how to manage and secure all 10 00:00:39,360 --> 00:00:42,280 Speaker 1: this new information. There's also a growth in the nature 11 00:00:42,280 --> 00:00:45,479 Speaker 1: and location of data as well, you know, expanding beyond 12 00:00:45,640 --> 00:00:49,720 Speaker 1: structured data unstructured data. We're looking at five hundred plus 13 00:00:49,920 --> 00:00:55,200 Speaker 1: billion in revenue in the market that several years ago 14 00:00:55,560 --> 00:00:58,760 Speaker 1: or a decade ago didn't really exist, and that's going 15 00:00:58,800 --> 00:01:02,040 Speaker 1: to three acts through one point by trillion. And are 16 00:01:02,080 --> 00:01:04,600 Speaker 1: there room for more players? And what has spent on 17 00:01:04,760 --> 00:01:07,960 Speaker 1: already pretty competitive space. What you see right now is 18 00:01:08,000 --> 00:01:09,840 Speaker 1: that the big players are the biggest names in tech. 19 00:01:10,080 --> 00:01:13,000 Speaker 1: You have the hemous like Microsoft, Google, Amazon is the 20 00:01:13,000 --> 00:01:16,119 Speaker 1: big three. But the great thing about cloud and the 21 00:01:16,160 --> 00:01:19,080 Speaker 1: public clouds the private clouds is that it allows a 22 00:01:19,120 --> 00:01:22,400 Speaker 1: lot of innovation to happen. HP is a big name 23 00:01:22,520 --> 00:01:25,560 Speaker 1: tech company with a mission to innovate and compete in 24 00:01:25,600 --> 00:01:29,679 Speaker 1: the cloud. CEO Antonio Nari told Romaine Bostick why he 25 00:01:29,880 --> 00:01:34,679 Speaker 1: chokes Turk Robrioti CFO to drive this transformation. When you 26 00:01:34,720 --> 00:01:38,959 Speaker 1: play sports, you want different type of skills and capacities 27 00:01:38,959 --> 00:01:41,760 Speaker 1: in many ways that they all together can deliver a 28 00:01:41,800 --> 00:01:45,679 Speaker 1: better performance. And it starts by will to win. And 29 00:01:45,720 --> 00:01:48,680 Speaker 1: when I became CEO, I realized I need a different 30 00:01:48,680 --> 00:01:53,040 Speaker 1: type of CFO. Someone is way more strategic, not just 31 00:01:53,120 --> 00:01:56,200 Speaker 1: on the accounting side, but I really think about how 32 00:01:56,240 --> 00:02:00,160 Speaker 1: we can deliver the value in a different way. Are 33 00:02:00,160 --> 00:02:03,200 Speaker 1: the days where the CFO is just as scorekeeper. I 34 00:02:03,240 --> 00:02:07,440 Speaker 1: think our role as CFOs is to be the person 35 00:02:07,520 --> 00:02:10,640 Speaker 1: who assists. The CEO changed the score well he had 36 00:02:10,720 --> 00:02:15,400 Speaker 1: that attracted me was about the transformation experience obviously has 37 00:02:15,440 --> 00:02:18,240 Speaker 1: more than two decades as a as a global leader. 38 00:02:18,800 --> 00:02:21,600 Speaker 1: We're both in taliens by the way the core, which 39 00:02:21,600 --> 00:02:23,600 Speaker 1: I think is a benefit that we can communicate the 40 00:02:23,639 --> 00:02:26,920 Speaker 1: same and we can argue against each other, but always 41 00:02:26,960 --> 00:02:35,680 Speaker 1: in a constructive way. As CFO, um I would assume 42 00:02:35,680 --> 00:02:38,080 Speaker 1: that you're always in a position where sometimes you have 43 00:02:38,200 --> 00:02:41,040 Speaker 1: to say no to him? Do you say no to him? Ultimately, 44 00:02:41,600 --> 00:02:44,560 Speaker 1: decision making ownership is he's He's the CEO of the company. 45 00:02:44,560 --> 00:02:46,840 Speaker 1: Here's the boss. Is my boss. At the same time, 46 00:02:47,000 --> 00:02:48,920 Speaker 1: I want to make sure that I watched his back. 47 00:02:49,320 --> 00:02:53,640 Speaker 1: Turk Robrioti is hp s chief financial officer and also 48 00:02:53,840 --> 00:02:58,080 Speaker 1: oversees the company's strategic function. Being the head of Strategy, 49 00:02:58,400 --> 00:03:01,200 Speaker 1: he does a lot of the mad scanning looking at 50 00:03:01,240 --> 00:03:03,920 Speaker 1: the trends. Uh, you know whether it's three or five 51 00:03:04,000 --> 00:03:07,800 Speaker 1: TI years. And that's why we combine both the CFO 52 00:03:07,880 --> 00:03:09,720 Speaker 1: with the head of strategy because in the end has 53 00:03:09,800 --> 00:03:12,960 Speaker 1: to deverstion holder value and then we gone into what 54 00:03:13,040 --> 00:03:15,560 Speaker 1: are the big trends were to play and have to win. 55 00:03:15,800 --> 00:03:18,400 Speaker 1: Think about it this way, we are like biologists. We 56 00:03:18,480 --> 00:03:21,320 Speaker 1: need to deeply understand the financial DNA of our company 57 00:03:21,919 --> 00:03:24,040 Speaker 1: and we need to take the practice steps that prevented 58 00:03:24,040 --> 00:03:28,000 Speaker 1: it from aging. Finance is the lifelood of any organization. 59 00:03:28,120 --> 00:03:30,120 Speaker 1: Just like for a human being, you have to have 60 00:03:30,160 --> 00:03:33,240 Speaker 1: your heart functioning. We have to be there providing the 61 00:03:33,280 --> 00:03:37,280 Speaker 1: information that allows us to continue to create value for 62 00:03:37,360 --> 00:03:40,200 Speaker 1: our shareholders and making sure that our customers get what 63 00:03:40,280 --> 00:03:59,240 Speaker 1: they want. The Hewlett Packard Corporations split into two separate companies. 64 00:03:59,720 --> 00:04:04,320 Speaker 1: Eight P Inc. Primarily makes devices from desktop and laptop 65 00:04:04,360 --> 00:04:09,600 Speaker 1: computers to printers, tablets, and point of sales systems. Hewlett 66 00:04:09,640 --> 00:04:17,200 Speaker 1: Packard Enterprise, or HP, provides information technology solutions. In CEO 67 00:04:17,320 --> 00:04:20,200 Speaker 1: Antonio Nary announced that the company would pivot from a 68 00:04:20,279 --> 00:04:23,840 Speaker 1: focus on servers and on site storage systems to its 69 00:04:23,880 --> 00:04:28,480 Speaker 1: cloud software as a service platform, green Lake. HP calls 70 00:04:28,480 --> 00:04:31,839 Speaker 1: it a hybrid cloud platform, not just storing data in 71 00:04:31,839 --> 00:04:36,080 Speaker 1: the cloud, but managing it across myriad locations. When I 72 00:04:36,120 --> 00:04:39,120 Speaker 1: became CEO in two thousand eighteen, I said that the 73 00:04:39,279 --> 00:04:42,360 Speaker 1: enterprise of the future will be edge centric, meaning where 74 00:04:42,360 --> 00:04:45,680 Speaker 1: we live, where we work, cloud enabled, in data driven. 75 00:04:45,880 --> 00:04:47,560 Speaker 1: And one of the things that we saw through the 76 00:04:47,560 --> 00:04:52,440 Speaker 1: pandemics that the enterprise became way more distributed, people working everywhere, 77 00:04:52,960 --> 00:04:56,479 Speaker 1: and at the same time data became the most important 78 00:04:56,680 --> 00:04:59,800 Speaker 1: asset that customers have explained for a second. The difference 79 00:05:00,000 --> 00:05:03,240 Speaker 1: between the edge there why that is sort of more 80 00:05:03,400 --> 00:05:06,320 Speaker 1: useful and the idea of a more centralized sort of 81 00:05:06,320 --> 00:05:08,760 Speaker 1: cloud system that I thought a lot of companies, at 82 00:05:08,839 --> 00:05:11,600 Speaker 1: least at one point, we're embracing it well, if you 83 00:05:11,680 --> 00:05:14,440 Speaker 1: think about we live now in a hyper connected world. 84 00:05:14,560 --> 00:05:17,720 Speaker 1: Everything is connected. To digitize your enterprise, you need to 85 00:05:17,760 --> 00:05:20,640 Speaker 1: be connected. Is cheaper to move the cloud to the 86 00:05:20,720 --> 00:05:25,039 Speaker 1: data and by the way, more secure then moving data 87 00:05:25,240 --> 00:05:27,679 Speaker 1: to the cloud. And that's where we as a company, 88 00:05:27,720 --> 00:05:31,400 Speaker 1: we're creating the capability to consume cloud services at the 89 00:05:31,520 --> 00:05:34,440 Speaker 1: edge in your data center on a bigger cloud. There 90 00:05:34,560 --> 00:05:36,599 Speaker 1: was a view and there still is that view that 91 00:05:36,680 --> 00:05:38,760 Speaker 1: the whole world is going to move to the public cloud. 92 00:05:39,240 --> 00:05:41,679 Speaker 1: We think the world is fundamentally going to be hybrid. 93 00:05:42,000 --> 00:05:47,560 Speaker 1: The edge is where everything happens, is where people generate 94 00:05:47,640 --> 00:05:51,440 Speaker 1: data or company generate data. Think about, for example, logistics companies, 95 00:05:52,600 --> 00:05:56,920 Speaker 1: how much data is being generated in harbors, in railroads, 96 00:05:57,000 --> 00:06:00,200 Speaker 1: in warehouses and the world we're living we'll be a 97 00:06:00,240 --> 00:06:03,080 Speaker 1: world which will be much more automated than ever before. 98 00:06:04,160 --> 00:06:07,200 Speaker 1: So warehouses are going to fundamentally change. They're going to 99 00:06:07,240 --> 00:06:10,239 Speaker 1: be powered by robots. Those robots will be very quickly 100 00:06:10,720 --> 00:06:13,400 Speaker 1: picking up the items in the warehouse that are required 101 00:06:13,880 --> 00:06:18,960 Speaker 1: and then reshuffle what's in the warehouse. That actual processing 102 00:06:19,480 --> 00:06:25,320 Speaker 1: requires data analysis locally where the action happens, transmission of 103 00:06:25,320 --> 00:06:29,000 Speaker 1: that data or a secure network onto a central point 104 00:06:29,320 --> 00:06:32,479 Speaker 1: or multiple central points for that matter, and made sense 105 00:06:32,520 --> 00:06:35,920 Speaker 1: of right. So that is the whole, the whole idea 106 00:06:36,000 --> 00:06:39,760 Speaker 1: that we're after. With more data to organize in more places, 107 00:06:40,080 --> 00:06:45,680 Speaker 1: businesses are moving swiftly to digitize their information infrastructure. Corporate 108 00:06:45,720 --> 00:06:51,280 Speaker 1: spending on it sword in and even if global growth slows, 109 00:06:51,600 --> 00:06:55,520 Speaker 1: that trend is not likely to reverse. How do you 110 00:06:55,640 --> 00:07:01,120 Speaker 1: operate that environment If we are facing recessionary headwinds. Where 111 00:07:01,120 --> 00:07:04,520 Speaker 1: we're seeing with I T spending is we're expecting flattening 112 00:07:04,600 --> 00:07:08,440 Speaker 1: to single digit growth. But cloud computing will largely be 113 00:07:08,520 --> 00:07:12,800 Speaker 1: unaffected by that. Given the explosive nature of data, organizations 114 00:07:12,840 --> 00:07:17,280 Speaker 1: simply need cloud. Companies that once invested heavily in devices 115 00:07:17,440 --> 00:07:21,280 Speaker 1: and data center servers may now seek more flexibility from 116 00:07:21,320 --> 00:07:25,560 Speaker 1: software that can be upgraded as new needs arise. That's 117 00:07:25,600 --> 00:07:28,760 Speaker 1: the bad HP is making as it pivots to software 118 00:07:28,880 --> 00:07:32,720 Speaker 1: as a service. When you hear the word as a service, 119 00:07:32,720 --> 00:07:35,400 Speaker 1: so many companies throw that out. Something as a service? 120 00:07:35,480 --> 00:07:37,760 Speaker 1: Is that just a buzzword? At the core, it's a 121 00:07:37,840 --> 00:07:40,080 Speaker 1: different business model. At the heart of it, there is 122 00:07:40,120 --> 00:07:43,360 Speaker 1: this contract with a service level agreement that ties the 123 00:07:43,440 --> 00:07:48,600 Speaker 1: two parties for a specific solution. The solution allows the 124 00:07:48,680 --> 00:07:53,760 Speaker 1: customer to manage the infrastructure and secure specific business outcome 125 00:07:53,840 --> 00:07:57,720 Speaker 1: under certain performance conditions. We manage infrastructure on your behalf. 126 00:07:57,840 --> 00:08:01,360 Speaker 1: We grow and expanded infrastructure as your need to grow 127 00:08:01,400 --> 00:08:04,840 Speaker 1: and expand in turn, and so the degree of customer 128 00:08:04,960 --> 00:08:10,920 Speaker 1: intimacy is a quantum leap above the transactional world. With 129 00:08:11,000 --> 00:08:14,600 Speaker 1: a different business model comes a different metric for measuring success. 130 00:08:15,240 --> 00:08:18,320 Speaker 1: Annualized run rate or a r R has become the 131 00:08:18,360 --> 00:08:22,120 Speaker 1: focus for Touric Robrioti and his finance team. The R 132 00:08:22,280 --> 00:08:27,280 Speaker 1: is critically important. The RR is actually measuring the amount 133 00:08:27,320 --> 00:08:30,840 Speaker 1: of our revenue that is locked in and recurring with 134 00:08:30,920 --> 00:08:33,520 Speaker 1: our customer base, and to the extent that they are 135 00:08:33,800 --> 00:08:37,800 Speaker 1: r R is going fast. The more robust the future 136 00:08:37,800 --> 00:08:39,760 Speaker 1: of the company is. Then on green Lake. We have 137 00:08:39,880 --> 00:08:43,280 Speaker 1: to grow customers. We have to grow the revenue we 138 00:08:43,320 --> 00:08:45,680 Speaker 1: make from those customers, and the r R is the 139 00:08:45,679 --> 00:08:47,839 Speaker 1: annualized run rate of revenue that you have from one 140 00:08:47,880 --> 00:08:52,000 Speaker 1: period to the next. If your offer has a perennial future, 141 00:08:52,640 --> 00:08:56,480 Speaker 1: it translates into a growing er. This is the way 142 00:08:56,520 --> 00:08:59,440 Speaker 1: for us to truly understand that we remain relevant for 143 00:08:59,480 --> 00:09:04,040 Speaker 1: our customers over the long term. What about margins. When 144 00:09:04,080 --> 00:09:07,000 Speaker 1: you hear from some of these analysts, these investors here, 145 00:09:07,040 --> 00:09:09,959 Speaker 1: there's still dialed in on gross margin some of the 146 00:09:10,000 --> 00:09:13,720 Speaker 1: more traditional metrics. Gross margin for me is the most 147 00:09:13,720 --> 00:09:17,840 Speaker 1: important metrics in our sector right. It's fundamentally if you 148 00:09:17,880 --> 00:09:21,640 Speaker 1: think about our our business, which comes from a hardware 149 00:09:21,679 --> 00:09:27,800 Speaker 1: heritage moving into as a service with hardware commoditizing, you 150 00:09:28,040 --> 00:09:30,640 Speaker 1: have to have a focus on gross margins. And as 151 00:09:30,640 --> 00:09:32,680 Speaker 1: you can see from our results over the past nine 152 00:09:32,760 --> 00:09:36,400 Speaker 1: ten quarters, our gross margins have been expanding very very solidly. 153 00:09:36,760 --> 00:09:40,040 Speaker 1: That actually tells you that your customers are willing to 154 00:09:40,040 --> 00:09:42,720 Speaker 1: pay a premium for what you have to offer. And 155 00:09:42,800 --> 00:09:44,680 Speaker 1: so what you want to see is a combination of 156 00:09:44,880 --> 00:09:48,600 Speaker 1: a r R with gross margin expansion and the are 157 00:09:48,679 --> 00:09:52,920 Speaker 1: are composition becoming richer and richer with more differentiation thanks 158 00:09:52,920 --> 00:09:54,920 Speaker 1: to software. That's the journey that we are all. You 159 00:09:55,000 --> 00:10:00,400 Speaker 1: need to remind people that of our profits are a deer, 160 00:10:00,880 --> 00:10:04,640 Speaker 1: which means we don't need the imperiate profit to deliver. 161 00:10:05,160 --> 00:10:08,400 Speaker 1: So that's an opportunity because we have an amazing profit 162 00:10:08,440 --> 00:10:12,720 Speaker 1: pool called hp point x now being supplemented with hpgree Lake, 163 00:10:12,880 --> 00:10:15,360 Speaker 1: which we already have more than six billion dollars in 164 00:10:15,360 --> 00:10:19,160 Speaker 1: the balance sheet, growing at the hundred plus percent of record. 165 00:10:19,520 --> 00:10:23,640 Speaker 1: Supply change challenges and geopolitical turmoil have weight on earnings 166 00:10:23,679 --> 00:10:28,120 Speaker 1: in two but with demand for its software continuing to 167 00:10:28,160 --> 00:10:32,120 Speaker 1: grow and a record breaking backlog of orders, HP has 168 00:10:32,200 --> 00:10:36,439 Speaker 1: caused for optimism. Meanwhile, Surgeon Inflation remains a wild card 169 00:10:36,559 --> 00:10:40,320 Speaker 1: is the company tries to attract subscribers and maintain margins. 170 00:10:40,360 --> 00:10:44,320 Speaker 1: We have had to think about inflation permeating across what 171 00:10:44,400 --> 00:10:47,880 Speaker 1: we do, in what we purchase and whether it's goods 172 00:10:47,960 --> 00:10:52,320 Speaker 1: or services. We've seen rising costs. We had to therefore 173 00:10:52,520 --> 00:10:56,040 Speaker 1: be much more disciplined on pricing than ever before. This 174 00:10:56,160 --> 00:10:58,760 Speaker 1: is not easy, and this is also something that has 175 00:10:58,800 --> 00:11:04,240 Speaker 1: to adjust because you can keep pricing increasing all the time, 176 00:11:04,320 --> 00:11:06,720 Speaker 1: so you've got to be very dynamic in the way 177 00:11:06,960 --> 00:11:11,319 Speaker 1: you think about pricing. Moving forward, HP chief financial Officer 178 00:11:11,440 --> 00:11:15,360 Speaker 1: Tarik Robriotti originally trained as a scientist, earning a master's 179 00:11:15,360 --> 00:11:19,240 Speaker 1: degree in nuclear physics and electronics. He told Romane Bostick 180 00:11:19,320 --> 00:11:22,680 Speaker 1: how those studies set him on his professional path. It 181 00:11:22,800 --> 00:11:26,080 Speaker 1: did prepare me in terms of my analytical capabilities, but 182 00:11:26,080 --> 00:11:28,439 Speaker 1: there was a moment in my career where I felt 183 00:11:28,440 --> 00:11:30,880 Speaker 1: he was really important that I hold my financial skills, 184 00:11:30,920 --> 00:11:34,920 Speaker 1: and then eventually I had to do an MBA majoring 185 00:11:34,960 --> 00:11:39,520 Speaker 1: in finance and strategic analysis and entrepreneurship. I discovered finance 186 00:11:39,520 --> 00:11:42,160 Speaker 1: as a discipline. I loved it and ever since then 187 00:11:42,640 --> 00:11:47,640 Speaker 1: I became a finance person. Highlights from Robiotti's resume include 188 00:11:47,640 --> 00:11:51,920 Speaker 1: a stint with Lehman Brothers in London and later experiences CEO, 189 00:11:52,280 --> 00:11:56,400 Speaker 1: first with the telecommunications firm CSL in Hong Kong and 190 00:11:56,480 --> 00:12:00,960 Speaker 1: then with Australian financial services company Flexi Group. He came 191 00:12:01,000 --> 00:12:04,120 Speaker 1: to the US to serve as cfo it's sprint, leading 192 00:12:04,240 --> 00:12:08,160 Speaker 1: the company's turnaround efforts. That was very lucky. I had 193 00:12:08,200 --> 00:12:13,560 Speaker 1: the opportunity to work in Europe, Um, Australia, New Zing, 194 00:12:13,640 --> 00:12:17,240 Speaker 1: and Asia in the United States, so I'm truly a 195 00:12:17,240 --> 00:12:19,960 Speaker 1: global citizens. People ask me where at home. I answer 196 00:12:20,000 --> 00:12:22,200 Speaker 1: to that question is home is where I'm not. Home 197 00:12:22,360 --> 00:12:26,280 Speaker 1: for HP is now just outside Houston, Texas, where the 198 00:12:26,360 --> 00:12:30,520 Speaker 1: company opened its new global headquarters this spring. For CEO 199 00:12:30,720 --> 00:12:35,240 Speaker 1: Antonio Nary. The campus is a passion project. I love design, 200 00:12:35,480 --> 00:12:38,319 Speaker 1: I love art, and I felt this was a unique 201 00:12:38,320 --> 00:12:40,760 Speaker 1: opportunity for me to start with a blank sheet of paper. 202 00:12:41,000 --> 00:12:43,160 Speaker 1: This was a piece of Latin nothing. There was nothing 203 00:12:43,200 --> 00:12:46,160 Speaker 1: here and it's a remarkable In two years were able 204 00:12:46,200 --> 00:12:49,640 Speaker 1: to build these five hundred thousand square feet side with 205 00:12:49,760 --> 00:12:53,840 Speaker 1: a unique experience digitally enabled in everything we do. HP 206 00:12:54,120 --> 00:12:57,400 Speaker 1: has an abandoned Silicon Valley. A number of employees and 207 00:12:57,520 --> 00:13:00,760 Speaker 1: business units remain based in the Bay Are Yeah, but 208 00:13:00,960 --> 00:13:05,079 Speaker 1: nary in Roboti believe the expanded presence in Texas strengthens 209 00:13:05,160 --> 00:13:09,400 Speaker 1: the company operationally, financially and culturally. We felt that we 210 00:13:09,520 --> 00:13:12,760 Speaker 1: have a lot of opportunity to streamline and make the 211 00:13:12,840 --> 00:13:15,800 Speaker 1: company were more efficient. The reason to move here is 212 00:13:15,840 --> 00:13:18,240 Speaker 1: to get the best of both words. Having a presence 213 00:13:18,280 --> 00:13:21,000 Speaker 1: hid in Texas allows us to recruit and retain talent, 214 00:13:21,320 --> 00:13:23,920 Speaker 1: particularly on the diverse side of the house. People don't 215 00:13:23,960 --> 00:13:27,640 Speaker 1: realize that Houston, Texas is the most diverse city in 216 00:13:27,679 --> 00:13:30,960 Speaker 1: the United States. In this side, we have a twenty 217 00:13:31,040 --> 00:13:34,120 Speaker 1: five megawatts data center where a lot of the development 218 00:13:34,160 --> 00:13:37,319 Speaker 1: gets done from all over the world. The energy costs 219 00:13:37,320 --> 00:13:39,959 Speaker 1: is significant cheaper here than California. I will now be 220 00:13:40,040 --> 00:13:43,559 Speaker 1: able to sustain that in California. What we're seeing in 221 00:13:43,840 --> 00:13:48,080 Speaker 1: a more macro environment is that corporations are looking at 222 00:13:48,200 --> 00:13:53,240 Speaker 1: locations that have a healthier business environment from taxation regulation. 223 00:13:53,640 --> 00:13:56,760 Speaker 1: They're looking for places that they can find new talent 224 00:13:56,840 --> 00:13:59,760 Speaker 1: anti talent is scarce. What we're finding is that access 225 00:13:59,800 --> 00:14:03,439 Speaker 1: to talent is still the biggest bobbleneck to productivity, and 226 00:14:03,600 --> 00:14:06,640 Speaker 1: so companies on an increasing basis, whether it's Texas or 227 00:14:06,720 --> 00:14:09,920 Speaker 1: other places in the United States or even globally, are 228 00:14:10,360 --> 00:14:12,960 Speaker 1: working more towards this hub and spoke model where they 229 00:14:13,040 --> 00:14:15,720 Speaker 1: might have a center of excellence or or a hub 230 00:14:15,800 --> 00:14:19,400 Speaker 1: in one individual city outside of the main headquarters. And 231 00:14:19,480 --> 00:14:22,760 Speaker 1: increasingly we're finding that is happening outside of Silicon Valley. 232 00:14:23,120 --> 00:14:26,040 Speaker 1: It was a big decision, but it actually if you 233 00:14:26,360 --> 00:14:29,480 Speaker 1: put it in the context as to why we made 234 00:14:29,520 --> 00:14:33,480 Speaker 1: the decision, it actually made sense. So we had a 235 00:14:33,520 --> 00:14:36,800 Speaker 1: longstanding presence here in Houston for the past i would 236 00:14:36,800 --> 00:14:40,280 Speaker 1: say twenty some years since the Compact merger. We bought 237 00:14:40,280 --> 00:14:43,160 Speaker 1: a piece of land, we started building this building, and 238 00:14:44,200 --> 00:14:46,760 Speaker 1: in doing so, we had to also recalibrate how we 239 00:14:46,840 --> 00:14:50,520 Speaker 1: were building it because the pandemic hit us, and we 240 00:14:50,680 --> 00:14:54,920 Speaker 1: thought about recreating a work environment that is very, very different, 241 00:14:55,000 --> 00:14:57,480 Speaker 1: that is catered for this new structural way of working, 242 00:14:57,560 --> 00:15:01,040 Speaker 1: which we call edge to office where people don't always 243 00:15:01,160 --> 00:15:03,760 Speaker 1: come to the office to work, can work remotely from 244 00:15:03,800 --> 00:15:06,520 Speaker 1: their homes, their edges, but have to come back to 245 00:15:06,600 --> 00:15:11,320 Speaker 1: the office for specific reasons such as team meetings, customer meetings, 246 00:15:11,760 --> 00:15:15,760 Speaker 1: and in general collaboration. With regards to the hybrid work model, 247 00:15:16,280 --> 00:15:18,600 Speaker 1: do you see that's something as something that will persist 248 00:15:18,800 --> 00:15:22,280 Speaker 1: longer term when the pandemic is long gone. Yes, no question, 249 00:15:22,440 --> 00:15:25,760 Speaker 1: this will persist. And I think we are witnessing right 250 00:15:25,800 --> 00:15:27,800 Speaker 1: now a societal change in the way we work are 251 00:15:27,800 --> 00:15:29,720 Speaker 1: You're no longer going to measure productivity in the same 252 00:15:29,760 --> 00:15:32,480 Speaker 1: way as in the past. You're gonna be focusing on outputs. 253 00:15:32,840 --> 00:15:35,320 Speaker 1: Never mind what people do in their private times. It 254 00:15:35,400 --> 00:15:37,800 Speaker 1: doesn't really matter to a company as long as the 255 00:15:37,880 --> 00:15:42,080 Speaker 1: output appears there. HP launched its edge to office hybrid 256 00:15:42,160 --> 00:15:45,840 Speaker 1: work initiative in the fall of the new campus is 257 00:15:45,960 --> 00:15:49,280 Speaker 1: designed without flexible model in mind. We have to admit 258 00:15:49,600 --> 00:15:53,400 Speaker 1: that the pandemic has had its toll on mental health 259 00:15:53,960 --> 00:15:57,320 Speaker 1: in the workforce across the world, and so it's really 260 00:15:57,360 --> 00:15:59,760 Speaker 1: incumbent on us employers to make sure that we create 261 00:15:59,800 --> 00:16:03,720 Speaker 1: an environment where our employees feel at ease to come 262 00:16:03,760 --> 00:16:06,320 Speaker 1: to work, they feel supported and That's why we created 263 00:16:06,360 --> 00:16:09,040 Speaker 1: the environment that you see between this the indoor with 264 00:16:09,200 --> 00:16:12,280 Speaker 1: two amazing builders and our door amenities. We have a 265 00:16:12,520 --> 00:16:17,000 Speaker 1: truly um you know, experience for their employees that they 266 00:16:17,040 --> 00:16:19,560 Speaker 1: can host customers, they can innovate, they can collab, what 267 00:16:19,760 --> 00:16:22,800 Speaker 1: they can socialize, and we have so many events. And 268 00:16:23,080 --> 00:16:26,119 Speaker 1: I will say the one difference between here in California, 269 00:16:26,200 --> 00:16:28,160 Speaker 1: this is way more community driven. So we have a 270 00:16:28,200 --> 00:16:32,760 Speaker 1: lot of events here like the famous chili cook event. 271 00:16:33,400 --> 00:16:37,720 Speaker 1: HPS annual Chili cook Off allows hard Grobrioty to indulge 272 00:16:37,760 --> 00:16:41,240 Speaker 1: in one of his favorite hobbies. The finance chief is 273 00:16:41,320 --> 00:16:44,520 Speaker 1: also an average chef. Cooking has a lot of parallels 274 00:16:44,560 --> 00:16:46,280 Speaker 1: with finance and being a CFO. There's a lot of 275 00:16:46,320 --> 00:16:50,240 Speaker 1: indirect satisfaction. You know, you you only you only know 276 00:16:50,800 --> 00:16:52,440 Speaker 1: that you're doing a good job when you see other 277 00:16:52,560 --> 00:16:54,800 Speaker 1: people recognizing it. And there's nothing better than when you 278 00:16:54,880 --> 00:16:57,280 Speaker 1: serve a nice meal to your friends or family who 279 00:16:57,320 --> 00:16:59,680 Speaker 1: come over. I'd love to do that. It's hard work, 280 00:16:59,720 --> 00:17:03,680 Speaker 1: but it's nice. As HPE moves forward with its strategy 281 00:17:03,760 --> 00:17:06,840 Speaker 1: to deliver software as a service and gain subscribers on 282 00:17:06,920 --> 00:17:10,879 Speaker 1: the green Lake platform, it's growth and customer demand is encouraging, 283 00:17:11,480 --> 00:17:14,840 Speaker 1: but supply chain disruptions have slowed the company's ability to 284 00:17:15,080 --> 00:17:19,040 Speaker 1: fulfill those orders. It's a problem that's plagued many industries 285 00:17:19,119 --> 00:17:22,200 Speaker 1: since the onset of the pandemic, compounded by the war 286 00:17:22,240 --> 00:17:25,399 Speaker 1: in Ukraine. Nobody, including HP is going to have an 287 00:17:25,440 --> 00:17:28,640 Speaker 1: easy time with the supply chain. I mean, we started 288 00:17:28,720 --> 00:17:31,480 Speaker 1: the just in time concept in the seventies and it's 289 00:17:31,600 --> 00:17:34,639 Speaker 1: taking years for organizations to back their way out of 290 00:17:34,760 --> 00:17:38,160 Speaker 1: that and find a more distributed supplier based and more 291 00:17:38,280 --> 00:17:42,000 Speaker 1: local supplier. Taric Robioti can't wave a wand and clear 292 00:17:42,080 --> 00:17:45,160 Speaker 1: the backlog all at once, he told Romaine Bostick. He's 293 00:17:45,200 --> 00:17:48,560 Speaker 1: focused on long term solutions. The world is no longer 294 00:17:48,600 --> 00:17:52,359 Speaker 1: flat and that's the practical reality we have to reckon. 295 00:17:52,600 --> 00:17:55,600 Speaker 1: And in that context, therefore, it's really important that we 296 00:17:55,760 --> 00:17:58,879 Speaker 1: get closed to where our customers are, and so we 297 00:17:59,040 --> 00:18:03,040 Speaker 1: have to rethink our network of manufacturing plants. We have 298 00:18:03,160 --> 00:18:05,760 Speaker 1: to rethink our network of our suppliers, and I think 299 00:18:05,840 --> 00:18:07,680 Speaker 1: the whole world and the whole ITEA industry has to 300 00:18:07,720 --> 00:18:11,880 Speaker 1: find a new equilibrium with supply chains that are designed 301 00:18:11,920 --> 00:18:15,200 Speaker 1: for speed, resiliency, and costs as opposed to just be 302 00:18:15,720 --> 00:18:19,240 Speaker 1: inefficient and designed around cost. Our goal is to create 303 00:18:19,320 --> 00:18:23,640 Speaker 1: a supply chain that is very much designed for optimal 304 00:18:23,720 --> 00:18:27,119 Speaker 1: visibility at every point in time of where components are, 305 00:18:27,440 --> 00:18:31,360 Speaker 1: where the working progress products are, and have the ability 306 00:18:31,480 --> 00:18:37,080 Speaker 1: to shift production and materials in different continents where we operate. So, 307 00:18:37,160 --> 00:18:40,320 Speaker 1: for example, we invested in a manufacturing plant in the 308 00:18:40,359 --> 00:18:42,480 Speaker 1: Czech Republic because it made a lot of sense for 309 00:18:42,600 --> 00:18:45,720 Speaker 1: us to have a presence in Europe. This is really 310 00:18:45,760 --> 00:18:47,600 Speaker 1: a new reality that we have to navigate. It's not 311 00:18:47,760 --> 00:18:50,919 Speaker 1: like we went backwards and capacity. In fact, capacity has 312 00:18:51,000 --> 00:18:54,760 Speaker 1: been added. The issues that demand has outpays any capacity 313 00:18:54,840 --> 00:18:58,160 Speaker 1: that we ever imagined, so now we need to add capacity. Also, 314 00:18:58,240 --> 00:19:00,240 Speaker 1: we need to transition some of the technology just to 315 00:19:00,320 --> 00:19:04,240 Speaker 1: the um notes and that takes time. Turk Roboti will 316 00:19:04,240 --> 00:19:07,560 Speaker 1: play a key role for HP as it retools to 317 00:19:07,760 --> 00:19:12,000 Speaker 1: face new challenges. Romane Bostick asked him what skills the 318 00:19:12,119 --> 00:19:15,680 Speaker 1: CFO needs to truly succeed is the chief Future officer? 319 00:19:16,400 --> 00:19:18,200 Speaker 1: The first quality you need to look for a CFO. 320 00:19:18,280 --> 00:19:20,520 Speaker 1: It's almost able stakes, right, It's integrity, and it's not 321 00:19:20,560 --> 00:19:23,760 Speaker 1: about being honest or or dishonest. Of course we're all honest, 322 00:19:24,040 --> 00:19:26,440 Speaker 1: but it's integrity. Of thought in the way you present 323 00:19:26,520 --> 00:19:29,160 Speaker 1: the fact base, which is the data. If you don't 324 00:19:29,200 --> 00:19:31,399 Speaker 1: have that in a CFO, stop looking move on right. 325 00:19:31,480 --> 00:19:35,399 Speaker 1: That's the first and foremost thing. The second most important 326 00:19:35,440 --> 00:19:39,280 Speaker 1: thing is the ability to be strategically agile. It's absolutely 327 00:19:39,400 --> 00:19:42,919 Speaker 1: critical to be injecting in the work. That is CFO 328 00:19:43,040 --> 00:19:47,840 Speaker 1: performs strategic thinking. The third I would say, if you 329 00:19:47,960 --> 00:19:50,040 Speaker 1: think about it in these terms, we are a little 330 00:19:50,040 --> 00:19:52,200 Speaker 1: bit the stewards of the resources of the company. For 331 00:19:52,440 --> 00:19:54,399 Speaker 1: the company and for the CEO, we've got to make 332 00:19:54,440 --> 00:19:57,359 Speaker 1: sure that resource allocation is up to scratch and that 333 00:19:57,560 --> 00:20:01,160 Speaker 1: we are allogating resources where there is the biggest return possible. 334 00:20:01,320 --> 00:20:04,639 Speaker 1: And finally, we also have to be coaches. We have 335 00:20:04,840 --> 00:20:07,520 Speaker 1: to coach our colleagues and team members, and my job, 336 00:20:07,640 --> 00:20:08,920 Speaker 1: the way I think about it is we have to 337 00:20:09,480 --> 00:20:12,320 Speaker 1: shine the spotlight on their strength but also at the 338 00:20:12,359 --> 00:20:16,639 Speaker 1: same time make sure that we understand our weaknesses and 339 00:20:17,359 --> 00:20:20,280 Speaker 1: are clear about the areas that we need to improve. 340 00:20:20,760 --> 00:20:23,159 Speaker 1: So a lot of the CFO job is to distill 341 00:20:23,240 --> 00:20:26,200 Speaker 1: what I simply would say is tough love. It's about 342 00:20:26,240 --> 00:20:30,000 Speaker 1: being tough right matters, and also be encouraging in other circumstances. 343 00:20:30,160 --> 00:20:33,160 Speaker 1: What's the opportunity here for HP over the next ten years. 344 00:20:33,480 --> 00:20:36,080 Speaker 1: The opportunity for HP over over the next ten years 345 00:20:36,359 --> 00:20:40,119 Speaker 1: is to redefine the industry. And because we firmly betive 346 00:20:40,200 --> 00:20:42,840 Speaker 1: with Antonio that the future of the industry is extra 347 00:20:42,920 --> 00:20:45,840 Speaker 1: cloud and I think that there will be a growing 348 00:20:45,960 --> 00:20:49,280 Speaker 1: acceptance and it starts already. You have evidence of it 349 00:20:50,160 --> 00:20:52,720 Speaker 1: that the future is hybrid and that the future of 350 00:20:52,760 --> 00:20:56,440 Speaker 1: an enterprise is to become essentially a digital service provider. 351 00:20:57,080 --> 00:21:00,359 Speaker 1: The pandemic has taught us that the enterprises who formed 352 00:21:00,560 --> 00:21:03,240 Speaker 1: the best during that period, we're the ones who have 353 00:21:03,320 --> 00:21:06,840 Speaker 1: digitized their business models. And for an enterprise to digitize 354 00:21:06,840 --> 00:21:09,280 Speaker 1: their business models, they have to think about it edge 355 00:21:09,320 --> 00:21:11,520 Speaker 1: to cloud and where the company to help them doing. So, 356 00:21:11,960 --> 00:21:13,320 Speaker 1: what do you think is going to be the main 357 00:21:13,440 --> 00:21:16,720 Speaker 1: challenge for HP over the next ten years. Well, I 358 00:21:16,760 --> 00:21:21,520 Speaker 1: would say the main challenges ourselves. We have to really 359 00:21:21,600 --> 00:21:25,520 Speaker 1: be recognizing that the opportunity is there for the taking 360 00:21:25,640 --> 00:21:28,520 Speaker 1: and we have to go after it resolutely and and 361 00:21:28,680 --> 00:21:34,080 Speaker 1: fact we can't really wait, be complacent and not execute 362 00:21:35,200 --> 00:21:37,960 Speaker 1: aggressively to capture the opportunity. So it's not to us 363 00:21:38,040 --> 00:21:40,240 Speaker 1: really and we think with with the right focus and 364 00:21:40,320 --> 00:21:43,119 Speaker 1: with the right team, we can get there. How do 365 00:21:43,200 --> 00:21:46,000 Speaker 1: you expect your role as CFO to change over the 366 00:21:46,080 --> 00:21:51,960 Speaker 1: next ten years. My role is constantly in change mode. 367 00:21:52,160 --> 00:21:54,200 Speaker 1: If you start with a view that the world is 368 00:21:54,240 --> 00:21:56,600 Speaker 1: in constant change and you have to adapt, you have 369 00:21:56,680 --> 00:21:59,960 Speaker 1: to anticipate on what comes next, strategic thinking is vague. 370 00:22:00,080 --> 00:22:03,920 Speaker 1: He for that purpose, you also have to make sure 371 00:22:03,960 --> 00:22:07,399 Speaker 1: that your team is geared towards it, that you understand 372 00:22:07,600 --> 00:22:11,280 Speaker 1: the demands that this constant change puts on the team. 373 00:22:12,000 --> 00:22:15,680 Speaker 1: And then you also have to continue to polish your stamina, 374 00:22:16,200 --> 00:22:19,360 Speaker 1: build a grid that you need to continue to navigate 375 00:22:19,400 --> 00:22:22,560 Speaker 1: the journey. For someone who maybe got promoted to CFO today, 376 00:22:22,640 --> 00:22:24,280 Speaker 1: what would you tell them, just for the first day 377 00:22:24,320 --> 00:22:26,320 Speaker 1: on the job. What's the best advice you can give them? 378 00:22:26,720 --> 00:22:29,920 Speaker 1: Enjoy it. It's wonderful. You have a unique vantage point 379 00:22:29,960 --> 00:22:33,760 Speaker 1: in any company to truly understand what's going on. No 380 00:22:33,920 --> 00:22:37,000 Speaker 1: one else in the company has access to the data 381 00:22:37,400 --> 00:22:41,560 Speaker 1: that tells you what's going on. Have fun for Romaine Bostick, 382 00:22:41,960 --> 00:22:44,440 Speaker 1: I'm Taylor Regg's. This is Bloomberg