In a recent interview with CRN India, Rohit Midha, Executive Director, Enterprise Business, Lenovo India, shares the significant growth in Lenovo’s enterprise business and the rise of AI PCs. Midha emphasises that AI PCs are increasingly becoming a crucial part of IT strategies, with 80% of CIOs expressing interest in adopting AI-driven technologies. Lenovo’s holistic approach, encompassing devices, infrastructure, and solutions, sets it apart from competitors. He also reaffirms their channel-centric model and commitment to helping partners evolve from box movers to value-added solution providers, backed by a billion-dollar investment in AI innovation globally.
With the emergence of AI PCs, how has the enterprise business grown over the past few years?
The enterprise business has been growing steadily, especially since the pandemic. Looking ahead to the current and next financial years, three key factors are driving this growth. First, the transition from Windows 10 to Windows 11 is critical, as Windows 10 support ends in October 2025, prompting businesses to upgrade. Some devices will require a refresh due to compatibility issues. Second, the demand spike from 2020-21, during the pandemic, is returning as the typical three-to-four-year device lifecycle comes full circle. Lastly, AI PCs are emerging as a significant market driver, marking an inflection point in enterprise growth.
So do you have any numbers to share about the growth?
According to IDC data, the market has grown by nearly 28% when comparing Q4 of last year to Q4 of this year.
How is the demand for AI PCs?
AI is a hot topic right now, and it’s something you can’t ignore. Different organisations are at various stages of their AI journey. A lot of what you’ll see in terms of end products will be persona-based. It won’t be a one-size-fits-all solution for the entire employee base. There’s a lot of activity happening—when we talk to CIOs every day, we clearly see the action. Proof of concepts (POCs) are in progress to determine what AI use cases will apply to different personas within the organisation.
So, the demand for AI PCs is definitely there, and it’s about future-proofing your fleet. While you may not see the immediate demand now, by December 2024, the relevance of AI use cases will only increase across all organisations. In fact, 80% of the CIOs we talk to globally, as part of a survey we’ve conducted, are emphasising that AI is becoming an integral part of their IT strategy. As a result, it’s crucial to future-proof your devices—you can’t afford to have systems that aren’t AI-compatible.
Since you mentioned that a survey found 80% of CIOs in favour of AI PCs, what common challenges have they identified?
AI is poised to be relevant for everyone, but the application and impact will vary across different industries and use cases. Each industry vertical will have its own distinct AI use cases. Within organisations, we also see variations based on personas, where the role of AI will differ depending on individual needs. What we envision is a hybrid AI environment for everyone. This means AI will have personal, professional, and public dimensions.
So, while the world is clearly moving towards a hybrid AI model, I wouldn’t call it a challenge per se. Any transition involves some degree of adjustment, but I don’t believe it will be difficult. There is significant investment being made to help our customers navigate this change smoothly. We are actively working with ecosystem partners like Nvidia, Qualcomm, and AMD to ensure that the shift is as seamless as possible. It’s more of a journey, and it’s a journey we will go through together.
What sets you apart from other OEMs and competitors in the market? What would you consider your USP?
That’s a simple question. So, with due respect to everyone, we are clearly the only OEM that operates across the entire technology stack. Whether it’s a 6-inch device or a 30-inch monitor, we cover it all. We have the infrastructure, solutions, and services in place. When you bring all three together, that’s exactly what customers are looking for. They don’t want to deal with multiple partners for different components of the puzzle; they need one partner who can be the OEM. That makes everything much easier for them. We have that advantage because others don’t offer what we do.
Now, speaking about our partners—what percentage of our business is partner-focused? We’ve always been a channel-centric organisation, and we’ve been consistent over the years. As far as I know, around 70% of our business is through partners, though that number could even be higher. You can always confirm the specifics, but that’s the general figure
How do you see the roles of partners evolving from being just box movers to value-added solution providers? Also, in what fields should they invest to align with your goals?
I think the days when enterprise customers were only interested in buying devices are gone. Now, they are looking for devices along with end-to-end solutions to achieve their business outcomes. And whatever Lenovo has accomplished over the years, we have done it in partnership with our channel partners. So, while we engage with our customers about the possibilities of AI, we are also working with our partners. We have programs in place to help them upskill in AI, as well as in our solutions and services portfolio, making them an integral part of our go-to-market strategy.
So what next we can expect from Lenovo?
We’ve been evolving at a very rapid pace, and you can expect to see a solid AI portfolio across devices, infrastructure, and solutions. You’re already seeing this now, and it’s only going to become bolder and more prominent. In fact, we’ve committed a billion-dollar investment over the next three years specifically for AI innovation globally.
Do you have any specific products that you’re planning to launch exclusively for the Indian market?
No, we don’t have any products planned exclusively for the Indian market. However, we do offer customisation options. For some of our products, if you visit our website, you can customise them according to your preferences. For example, you can select a specific screen or other features based on what you need. Different products offer different types of customisation, and that’s available on our website. This approach is not exclusive to India; it’s a global strategy with local customisation possibilities.
