Insight Enterprises, Inc. (NSIT) Earnings Call Transcript & Summary

Good morning, and welcome to Insight's Investor Conference. I wanted to take a moment and just thank you all for attending, those who've been able to be here in person as well as those who are attending virtually. For those that I have not had the opportunity to meet yet, my name is James Morgado, and I'm the Senior Vice President of Finance and the CFO of North America. Today's theme is ambition in action, and we think that there is no better way to categorize the important moment in Insight's history that this represents. And so we want to share today. We're eager to share with you today not only our aspirations, but the detail of our execution plan. And so with that, I'd love to give you a brief overview of the agenda. We'll start out with Joyce Mullen, who is our Chief Executive Officer, and she'll walk through our vision, strategy and how we will put our ambition into action. And then Dee Burger, our President of North America, will walk through the details of our execution plan. Stan Lequin, our President of the Solutions business will walk through our incredible technical portfolio and how we bring that to bear in order to help our customers achieve their digital transformation goals. And we'll take a brief break, and then we'll return with the panel that consists of 3 of the brightest minds at Insight that is Jason Rader, our Chief Information Security Officer. Matt Jackson, our Vice President of Consulting Services; and Phil Rickson, our Vice President of Services and Asia Pacific. We'll take a -- we'll come back then from that, and we will have Glynis Bryan, our Chief Financial Officer and my mentor, walk through our financial strategy and financial goals. And then we'll come back with a brief Q&A with Joyce, Glynis, Dee and Stan. So before I begin, though, I have the obligatory legal disclaimers to read. And so bear with me for just a few moments. This broadcast is the property of Insight Enterprises and any redistribution, retransmission or rebroadcast in any form without the express written consent of Insight Enterprises is strictly prohibited. In today's discussion, we will be referring to non-GAAP financial measures, which we may refer to as adjusted. You'll find a reconciliation of these adjusted measures to our actual GAAP results included in the accompanying slide presentation. As a reminder, all forward-looking statements made during this presentation are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to Slide 3 of our presentation for additional information. Okay. With that said, let's kick off. I'd love to invite Joyce Mullen, our CEO, up on stage. Joyce is actually one of the big reasons that I decided to join Insight 9 months ago. And I firmly believe if anybody can put ambition into action, it's Joyce.

I made James say that, by the way, just to be clear. I'm also really, really excited to be here. I have to stay here, though, because we had some sound issues. So Glynis and I both are a little bit tethered to the podium. So it's not my normal state. But anyway, I'm really excited to be here with all of you. It's really great to meet so many of you in person for the very first time. And it's really, as James said, such an exciting point in Insight's history, we really think it's a culmination of sorts because over the past decade, Insight has been evolving into a brand new breed of technology partner, building very specific capabilities that set us up in a unique and advantageous way. And by the way, this is especially important because the $4 trillion market that we serve and that we are participating in is growing at 6%, and it is incredibly fragmented. So I've been in this business a long time. We were talking about it yesterday. I said 2 decades. They said it's more like 3. I'm trying not to count. But let me tell you, over that period, I have learned a lot about what clients need. They need a partner who can really sort out the complex decisions in this incredibly crazy technology environment that is changing so rapidly. They need somebody who's going to deliver results fast. They need a partner who's going to guide them from traditional IT to modern cloud. They need a partner who actually brings solutions, a combination of hardware, software and services that can be integrated into their environment and produce meaningful results. They need a Solutions Integrator. Clients don't have the time, the money or the appetite to put together all the pieces of the technology puzzle. It's just too complicated. They need efficient access, a simplified experience, deep expertise they can trust, someone who can architect, build and manage a technology environment. So I was a global channel chief at Dell just about 2 years ago -- just over 2 years ago, and I had 170,000 partners around the world. And it was clear to me then that Insight actually was understanding this evolving need and putting together remarkable capabilities to address that need. And when I joined Insight just over -- just about 2 years ago, I really figured out that, that perception was indeed true, and we are remarkably well to position to set us up for our -- to realize our ambition. And I'm going to tell you all about that today. So here it is. Insight will become the leading solutions integrator, setting the pace and defining a new category in our industry. So I'm going to take a second and just repeat it for a second because we really do believe we are defining a new category in this industry because that is exactly what clients need. And by the time you leave this room I want you to be crystal clear on what I mean by this ambition and what we're doing, the actions we're taking to get there. So we're talking about a very intentional and strategic plan that makes this ambition a reality and delivers compelling value to all of our stakeholders. And what does that mean to you? Well, let's start with accelerated profitable growth over the next 5 years and beyond. We're talking about growing faster than the market, about 200 basis points and growing our gross profits even faster than that. Expanding our EBITDA margin to nearly 7%, all delivering earnings growth at 20% CAGR. That's pretty awesome, and we're pretty excited about it. So over the past several years, as I mentioned, Insight has reshaped itself organically and through strategic acquisition to become a global solutions integrator. So let me take a minute and define what a solutions integrator is. It's a little tough to get your arms around because there's not really a model yet against which you can measure us and compare us, but we'd like you to build one. So we're going to talk about. So first of all, let me just tell you what we're not. We are not a systems integrator. Traditional systems integrators have a business model which all around time extended hours. Insight is all about delivering the outcomes that our clients need to make them successful. So we think about our requirements and our work quite differently. We're not a traditional reseller. Resellers have a portfolio of products and they sell them. That's terrific. We use our technical expertise to build solutions and match them up with what our clients need, and we do it without technology bias. And we're certainly not a distributor. This one actually makes me the most crazy. Distributors do not have direct relationships. They don't have the same breadth of technical skills that we have. Distributors are very important partners to us, have great supply chain skills and really are important from a credit point of view. We use our supply chain expertise to augment our solutions capability. I said that Insight is unique and ahead of the curve because it had the foresight to pull together these capabilities, and it's really positioned ourselves unlike any other company that I know. We made early investments in edge, cyber, cloud, data, AI, before it was cool. And that has given us a pretty enviable position in the fastest-growing areas of the market which also happened to be, the fast the areas where our clients need the most help. But let me be really clear about something. We are not abandoning our traditional technology business, far from it. We're building on that, capitalizing on that. It's an incredibly strong foundation, and we are accelerating our strategy and deepening our client relationships so that we can outperform the market no matter what the macro environment. We actually have unwavering confidence that our value proposition is resilient and relevant and compelling in any economic cycle. Because if you think about it, as customers hunker down and search for simplicity, Insight is very well positioned not just to weather the storm, but to grow within it, to acquire great talent, to acquire great companies to consolidate in the fastest-growing areas of the market. So to be the leading solutions integrator and drive the kind of financial performance that we're laying out today, we have 4 strategic pillars I'm going to be talking about. The first one, captivate our clients. What I'm talking about there is captivating the hearts and souls and minds of our clients, becoming the partner they can't live without because we deliver exceptional value at every turn. Second, sell solutions. We're transforming our sales capabilities. We'll talk about that more later, but we need our sales teams to be able to represent our broad capabilities. Third, deliver differentiation. This is all about innovative, scalable solutions, exceptional technical talent and our really compelling portfolio. And finally, capitalize on our culture. I'll talk about this in a little while, but we have a very solid foundation on which to build. It's a great start. So as simple as the strategy is sound, there's a lot of substance and a lot of hard work behind them. So I'm going to spend some time talking about each of those with you. So there isn't a company out there who doesn't think they are delivering to meet clients' needs. Of course, we all try to do that. But at Insight, we do more and I would argue we do it differently. So when it comes to our approach, we do several things that I think are pretty unique. First of all, we pride ourselves on making the complex simple. We deliver value and earn the right to do more. We tap into our broad technical experts and bring them to bear on the problems that our clients are solving, not just for the specific problem at hand, but we look beyond that problem and figure out what outcomes will really drive client success. We have access to every technology OEM around the world. We have very well-established relationships with some, but we also spend a lot of time thinking about emerging partners, disruptors in the environment. Those companies who are going to change the game. We deliver solutions globally. We have teammates in 19 countries, and we have partners in all the rest. And we have time-tested relationships with thousands of customers, transitioning these customers from traditional product customers to solution customers is an extraordinary opportunity for Insight. We'll be spending a lot of time on that as well. So when it comes to client relationships, we have a strong track record. We have really a strong powerful foundation, but our ambition says we will be the leading solutions integrator. To do that, we have to do more, and we are. Let me give you a couple of examples. About a year ago, we started measuring Net Promoter Score, client satisfaction asked a lot of questions, form to Client Advisory Board and kind of a lot of feedback. Some of it confirmed things we already knew. And some of it helped us uncover brand-new opportunities for improvement, but all of it is helping us accelerate our vision -- accelerate our march toward our vision. So for example, we're improving the online experience, making it easier for clients to self-serve. This is really important. And we hired Rob Green about a year ago. Rob came from -- he's in the back, came from Amazon business. and his role is to amp up the digital experience to world-class levels. We're in year 1 of a 3-year plan, and we've already launched a new e-commerce site, and we have thousands of clients on it already. And we already can see that we are delivering an improved client experience because of that work, which not only helps us with growth, but it also helps us improve sales productivity. Rob and our new CIO, Suma Nallapati, also here are building an agile, scalable technology platform also internally. This is very important to our efforts to accelerate automation for all of our processes. And it helps us improve our speed -- in our speed to quote our client response time, our speed to statements of work. It also helps us obviously improve our cost structure and our sales productivity. And by the way, increasingly, sustainability is top of mind for all of our clients. And we've had great offers for years, things like hardware recycling programs and hybrid work environment solutions. But cloud and digital transformation are game changers when it comes to helping our clients reduce their carbon footprint. So I can stand here all day and tell you all about how we are really doing everything we can to become the leading solutions integrator by captivating the hearts and minds of our clients. but it's way better for you to hear directly from them. So we have a video for you. [Presentation]

Okay. Mike and Gordon are really not that robotic. I don't know what's going on with the video. But anyway, I mean, I just what they have just said about what we are. I mean, they come to us with a problem, we come to them with a solution. That is exactly what I'm talking about when I talk about being the leading solutions integrator. So that NPS focus has helped us improve our execution already. So we have already improved to 54. That's good. It's not great. We expect to be great. So within 3 years, we'll be at 70 with top quartile performance among all tech companies. And we have a lot of confidence that we can get there. By the way, our services business is already there, which is pretty amazing. So we know that when we deliver real integrated solutions like we did at Cornerstone, relationships are deeper, relationships are stickier. And oh, by the way, we earn 10x the gross profit dollars versus when we just sell products, 10x. So imagine the impact as we transition more of our clients from technology clients to solutions clients and we become their solutions integrator. So that's why captivating clients is the first pillar of our strategic plan, and that's why we're so focused on client experience. So let me move to the second one, selling solutions. We're in the process of transforming our sales organization and our approach, our sales organization compensation programs, et cetera, to solidify this position. But let me give you some detailed examples. First of all, we're streamlining our coverage. We're actually for our solution sellers reducing their accounts, the number of accounts that they serve. The goal here is to drive deeper, wider engagement in those clients. Think about quality over quantity. And by the way, when we step back and think about the segments of the market where we have the most opportunity to sell our broad portfolio. When we think about that, our sweet spot is actually the corporate mid-market. So think about Fortune 300 and below. We understand these clients incredibly well. We're actually one of them. We bring enormous value to them. They have very large IT budgets and very significant IT agendas. They have difficulty attracting the same kind of labor and skills versus the big guys and they are -- we have the most opportunity to innovate with them. This is not to say we're not going to serve our enterprise and public sector clients. Of course, we will. But the corporate space is where we can sell our complete portfolio. So next, we are creating solution selling experts. This is a development program. This is a trading program. This is a hiring program, and this is -- this is making sure that we're matching up the right skills to those clients who have the propensity to buy our solutions. And we're doing that by making sure they understand the industries that they serve. Vertical knowledge is increasingly important as we think about the broad technology environments that we are building solutions in, edge-core-cloud. We're making sure that they have the right kind of consultative and solution selling skills, and we're also working on increasing their business acumen, all quite important to delivering client success. We've modified our global compensation program to focus on services. We know we can deliver higher value to our clients when we sell services, and so we are providing the appropriate incentives to make sure our sellers are focused on that as well. We're implementing a new pricing strategy and program to ensure that our solutions are more profitable and to make sure that we capture the value when we sell a highly valuable solution. The changes that I've just talked about actually touch almost every function in our organization. And because they are complicated and because they are pervasive, we've established a global transformation office to project manage every aspect of this transformation, making sure that we're driving adoption of tools like automation. These are just a couple of examples of our sales transformation efforts that will ultimately help us make sure we're focused on quality over quantity and deliver growth and our improved profitability goals. I would argue that our clients are noticing. If you think about it, we just heard about that from Mike at Cornerstone, but also, we have seen it in our organic sales growth. Over the past year, we grew at 20% organically. This was buoyed of course, by exceptionally strong hardware demand, but also very strong performance in Insight core services and cloud. So I want to make an important point here. This transformation is not going to be a straight line. There's going to be twists and turns along the way. It's going to be very dynamic. We are very intent to listen, learn, adapt, change because we are unwavering in our commitment to generate value for our clients and ultimately for our shareholders. Dee is going to talk through the operational plans in a second that really support what I've just laid out. But the strategy to sell solutions is really pivotal for sure. Now let's move on to delivering differentiation. This is Stan's focus. We are already ahead of the curve, and we are intend to widen that lead. I'm talking about innovative, scalable solutions, exceptional technical talent and a very compelling portfolio. So let's start with innovation. As I said, our solutions organization is charged with building innovative, repeatable, scalable solutions, building an Insight Automation wherever we can because that improves the client experience, and it helps us drive results fast. And by the way, to do this, we have to be expert not only in today's technology, but also in emerging solutions. We said this is going to drive the next wave of innovation for sure, things like edge, quantum computing, hyperautomation, low-code/no-code. Did you know we have 70 patents pending? That's a record number for us for sure. And the reason this IP is important is because it helps us deliver higher quality results to our clients or our results faster. And we intend to continue to build a robust pipeline of innovative ideas and patents through our innovative Insight program. And by the way, it's pretty gratifying to see that we're not the only ones who think we're innovating Gartner and Forrester have recognized our technological leadership in Azure migration, software asset management and modern workplace. And we've been recognized by a lot of third parties for our strengths in data, AI, cyber, cloud. Each year, we received dozens of partner awards, which are super important to us. And just this last year, by the way, we were recognized by Microsoft as a winner, 13x. I think that's more than anyone. I don't know that, but I think so. We are honored, of course, to receive these accolades, but even more importantly, to our business, of course, we've received thousands of referrals from partners because they trust us to execute. So a lot of these capabilities, which -- many of which hinge on innovation are exactly what clients are demanding. And I'm going to show you an example now of perpetual, and this is a cloud example. So let's take a look. [Presentation]

Fantastic to hear Richard talk about how -- and Wendy talk about how we're the go-to partner because of our knowledge and DevOps, because of our technical skills and because of our superb account management. So all these indicators tell us that our intentional focus on innovation is paying off. And also, you can point to another one. How about 4 record services quarters in a row? I feel pretty good about that. We don't innovate without talent. So let's talk about the next differentiator at Insight. It's pretty much -- pretty clear that this is a people business. So let me talk about that for a second. All in, we have 5,300 technical experts around the world with deep expertise in cloud, data, AI, cyber, digital enablement and more. That's nearly half of our employee base. So it's a very significant investment for us. We have several industry recognized experts in our team. Jason Rader, here is our CISO, and he's -- you'll hear from him on the panel later, but he's one of those. So we're glad about that. And as we think about acquisitions, we really think carefully about the talent that comes to us through acquisition. Not only what they could bring to us, of course, that's very important. But what we can bring to them Stan, Matt, Phil, Jason, all are part of Insight because of acquisition, and we take a lot of pride in that. And by the way, speaking of acquisition, we just acquired Hanu, a Gartner Magic Quadrant, Azure Migration company. We have a couple of the leaders from Hanu here. We're really proud of that. And we were attracted to Hanu for a couple of reasons. First of all, they're really good at what they do around cloud and helps us build out more scale in this really critical area of the business. Also, we have over 500 teammates now, most of whom are in India that came to us with Hanu, talk about attracting technical talent. And then third, Hanu has built a very robust Academy designed to recruit and develop technical experts, and we intend to scale that. So it's a great start and a great partnership. Another thing that we've done recently is we just launched a distinguished engineer career track. We did that to help with development and retention of our most capable technical leaders. And we hired our first VP ever of global recruiting, and that's all about helping us expand our access to talent around the world. We are excited about that as well. And we're investing in workforce planning and organizational design to help ensure we have the skills and talent not just through this period of the strategic plan through 2027, but beyond. We've also built new development programs for future leaders. In fact, we have many of the members of our Elevate first ever development session here today, it's really terrific to have you all here. And we're also continuing with our investment in West Point leadership development for all of our leaders. The goal is pretty simple, build a very deep and robust roster of technical experts and industry leaders who can help us deliver even more client value and do so efficiently with a ton of accountability. So it's no doubt about it. People are a differentiator and critical to this overall strategy. And finally, our portfolio. This is our crown jewel, and I'm really excited to talk to you about this. So as I said earlier, we are uniquely qualified to architect, build and manage all the elements of a technology stack. And this capability sets us apart from the rest of the industry, we believe, in a very big way. Over the past several years, we've responded to the rapidly changing IT environment and expanded our portfolio pretty dramatically, and that served us well. Now we are laser focused on refining that portfolio in a very strategic way. Our approach is really simple. Let me just tell you about it. So first of all, we think about what are our anchor offers, our superpowers and we build around those. In fact, in the past year, we've actually reduced our offers by 50%, while simultaneously growing our services business, proof positive that this is the right approach. So let me give you a couple of examples of our superpowers. We talked about Azure with perpetual. Did you know we're one of Microsoft's top 5 partners in the world. And we drove over $1 billion in Azure consumption in the past year. We've actually built some of the IP I was talking about. We built a tool called SnapStart, which really speeds up our ability to migrate customers to the cloud. So that for sure is a super power. Data analytics and AI are also superpowers. Data is everywhere, but only really useful if we can turn it into actionable insights. And we built a tool called Lens that helps our clients see key data across multiple clouds, multiple data lakes, enabling fact-based decision-making more -- enabling our clients to make fact-based decisions more quickly. So portfolio simplification is kind of -- is a very critical enabler, and it really helps us with our sales transformation and it also really helps us drive services business model efficiency. When you pull these together and then add cloud in there, that really drives the bulk of the margin expansion that we're talking about today. So the bottom line is our current portfolio is strong and getting stronger, both through internal reshaping and also through M&A. And we are going to continue to follow this two-pronged strategy to make sure we're augmenting our growth plans in the fastest-growing areas of the market. I'm going to spend a few more minutes. I'm going to spend more time on M&A in a few minutes. Okay. So just to summarize the third pillar, delivering differentiation through innovative scalable solutions, exceptional technical talent and a compelling portfolio, all critical to becoming the leading solutions integrator, Stan will spend a lot more time on how we differentiate ourselves in a few minutes. Okay. On to the fourth and final pillar, capitalize on our incredible culture. So culture is a force multiplier for growth. when it's aligned to your business goals, it's like a booster rocket. And when it's not, it can stall all progress. I feel like we're starting from a really good place at Insight. We are purpose-driven, values led. It's giving us a very strong foundation. Our teammates are not just proud of our values of hunger, heart and harmony. They are walking examples of it. And this is especially true in the context of how we support our ambition, our strategy and our clients. Everybody that Insight serves a client directly or serve someone who does. It's a really big deal because teammates feel aligned to -- connected to the client, hungry to make a difference for them and all -- they put their heart and their soul into delivering a great client experience. You got to start from somewhere, and this is a great place to start. We are building on this incredibly strong foundation in developing a culture of high performance, a culture where accountability, urgency and bold action are the norm. So let me give you some examples of that. We've aligned our incentives and compensation to drive performance. We've given more of our teammates RSU awards, so they understand where we're trying to go from a stock price point of view. And we're rolling out new compensation metrics, such as relative TSR to our most senior leaders. We actually did that at the beginning of the year. We are increasing the aggressiveness of our internal planning and driving faster decision-making some of it -- some of the bold actions that you -- I have just talked through are examples of this. And all of this is driven and reinforced by a leadership team that is committed to this ambition and committed to our success and the success of our clients. 50% of our senior leaders are either new to Insight or new in their roles in the last 18 months. So as I said earlier, this is a people business, and it's our talented people operating within a healthy, vibrant culture that are really going to be able to do their best work ever and deliver great results for our clients and ultimately deliver on this ambition. Our continued investment in culture is paying off. During the great resignation, we held our own. We held steady. Our attrition rates are the best in the business, among the best in the business. We are a Fortune Most Admired Company, a Forbes World's Best Employer, and we've been recognized by as an employer of choice in the vast majorities of geographies and regions, countries where we do business. We've done a tremendous job driving a culture of diversity and inclusion, and we're not slowing down. 60% of our officers are diverse, leading the tech industry by a significant margin. And we earned a perfect score on the Corporate Equality Index, and we were recognized as a best place to work for disability inclusion. And our teammate engagement is pretty high. but our plan is to push that even higher. We're aiming for 70 again for teammate from a [indiscernible] Net Promoter Score, that's top quartile performance also. So while we're laying out ambitious plans today, we know these plans don't achieve themselves. And this is all about execution, persistent, disciplined hard work on the part of all 12,500 of us. We're confident that we have the culture, and the leadership to deliver on this ambition. So the strategies that I've just outlined are all drivers, multipliers, value creators, not just on the growth side, but also on the operational side. I mentioned earlier that our transformation office is all about making sure that all of these elements come together, all the work streams deliver to the milestones we lay out. Our new pricing strategy is another example of this, and so is our focus on automation. All of these are intended to improve our operational efficiency and our profitability. Dee is going to talk about the work we're doing to optimize and scale our services business through improving utilization and driving delivery excellence and cost reduction in this now $1 billion services business. We're not just driving costs out, though, we're actually redefining the cost curve through automation, AI, machine learning and optimizing our work from top to bottom. And as a result, we expect continued margin expansion, and we also expect SG&A leverage. Glynis is going to provide the framework of our financial commitments at the end of this morning. So everything I've described, strategies, plans, initiatives are all accelerated by our new focus on -- or I would say, a renewed focus on M&A. But we have a great start. Insight has a very long history of acquiring and successfully integrating companies, delivering accelerated value to clients and to shareholders. And we're ramping up our M&A focus. We just hired a new leader, [ Anima Roat ], who has joined us just a couple of months ago. And we have a two-pronged focus for M&A. Let me tell you about it. First of all, we intend to acquire medium -- small- to medium-sized high-growth companies in the fastest-growing areas of the market that will expand our capabilities and allow us to scale. Companies like Hanu. And second, we will always keep our eye out for -- opportunistically for scale acquisitions that can help us expand our customer base, expand our global capabilities or increase our capacity to deliver even more value to our shareholders. So we are poised and ready to execute this thoughtful methodical M&A strategy, but it's going to be very significant for Insight. So there you have it. Our ambition is to be the leading solutions integrator, setting the pace and creating a brand-new category in our industry. And our strategies and actions to get there, do you want me to go through them again? You got it. Okay. Seriously though, this is our plan to become a truly great company. And frankly, this is why I joined Insight. So if you'd like some more details, we're ready to go with that. So next up, Dee Burger is going to take us through some of the operational plans I talked about. Let me tell you for a second about Dee. Dee has been here for 5 months. It feels like a lot longer than that. He's had a huge impact already on our business and is an expert in services at scale. So we're thrilled you're here, Dee, come on up.

Thanks, Joyce, and hi, everybody. I'm really happy to be here today to talk about where Insight is and much more importantly, about where we're going to go from here. I will build on Joyce's discussion about the solution integrator strategy, and then I'll talk about the actions that we're going to put in place to drive that even further. But I do want to touch before I can give you a little context on me and my background. I have been here 5 months. Before that, I won't -- I was at Capgemini. I won't go with the 3 decades Joyce used. I was at Capgemini for 357 months. So lot of time, a lot of experience doing this. When I joined Capgemini, Capgemini was a sub-$200 million U.S. business. When I left, it was more than a $20 billion global business. Lots of people did lots of things. But I enjoyed the experience I had there, I learned an awful lot. During my career there, I spent about 20 years -- first 20 years, doing every job you can ever do serving telecom clients. I spent my whole career with clients working with them. Project analysts, led projects, led our client accounts that led our U.S. telecom business for a while, and then I led our global business. And I got to the point in my career where I had every conversation with anybody in the world and everyone to talk about implementing a billing system. It was done. I needed a new route to take. About 10 years ago, there is a shift into getting into new things. My role was actually as it started, was new things. that eventually became digital and cloud. So it was getting out and how are we going to deal with the Software-as-a-Service vendors, what does digital customer experience mean what role does innovation play in our business, was digital manufacturing do? And then what are these Amazon guys doing off on the side and is that ever going to be relevant. It was building that out. So I spent 5 years in the U.S. and then globally, helping build that for Capgemini and eventually building something that serve 40 countries with 30,000 people bringing all that together. And then the last 5 years I was at Capgemini and a couple of different roles, essentially led at different times, all of the different practice areas that we had. So a practice area and a company like Capgemini is applications and data and engineering and consulting and all that. So I led each of those. And there are some relevant parts of that, that as I now step into Insight, there's relevant parts of that I bring. The first of which is dealing with customers that know us as one thing where you want to expand the relationship and offer value in different ways. There's a lot of that that's very similar to the Insight opportunity of the long-standing business and technology and trying to drive solutions and services from there. So very similar. Second part of that was the corollary where internally, how do you deal with long-standing aspects of the business that there's a danger of them being perceived as a legacy component and driving in new things and keeping them in balance. So both parts of the business continue to thrive. Third is creating scale and managing at scale. So I have talked about the way capgemini scaled during my time there, I had 4 different roles where I managed more than 20,000 people. And as we scale up that Insight, there's a lot for that. And then finally was the kind of ever-present need to do the balancing act of both growth and margin, right? It's easy to conceive the strategy where you grow and don't really care what you spend also fairly easy to cut everything immediately and drive margins. It's a very important balancing act as we go. We've got an ambitious growth plan ahead, and we're going to drive margins while we do it. Glynis is going to make that mathematical later, but rest assured, that's the nature of our plan. So with that context, I go back to beginning of this year, my first conversations with Joyce. Joyce was new to her role, I didn't know much about Insight he talked a lot about the capabilities Insight had and what a solutions integrator was and what that would mean in the market, and it really resonated with me. And I felt like I could help, and that's how I got here today. Let me give a little context as we get started. Some of this was in Joyce's discussion. But -- so Insight's a global company, of course, regions in North America, EMEA and APAC. We've got a very wide range of customers, that's a very unique aspect for Insight, particularly when considering insight against the normal system integrator field. So we've got -- depends how you count on. We've got more than 20,000 customers, right, from small and commercial to medium and corporate and the very large enterprises. And we are a different insight to each of the different segments. In the smaller end of the range, we're more about efficient access to technology. In the middle part, we've got a very comprehensive offer and we can solve most of our clients' needs. So corporate clients, smaller enterprise clients. And then at the top end of enterprise, we are large-scale procurement and doing a lot of IT projects. So we're a little different in each. The other contextual piece of this that is important is in our services and solutions, while it is a 10%-ish part of our overall revenue, it is nearly half of the margin we're generating. So a very important aspect to think about as we manage the customer spectrum. We've got a lot of unique strengths that enable us to be a solution integrator. So across the bottom are the ones that you would traditionally associate with Insight and probably are not surprised by large-scale supply chain organization all the procurement and logistics that go with that. We have lots of partners. Really, we're partners with just about everybody. And we have a very significant global footprint. We can operate, we can deal with global clients, we can operate across the world. The top is where we're really going to differentiate when you think about being a solution integrator, this is where we're going to differentiate. And the culture part feels like a soft way to start this, but it's actually really important. Coming to Insight culture is very unique. It is very intentional. It's been engineered over a lot of years. And when you're looking at a business that is transforming and a business that is changing and a business that will acquire other companies, it's a very important aspect to our ability to adapt. We've also got a massive customer list. So it's not just the roster. It's a set of people that have been dealing with those customers now for many years that have relationships to understand the customers. And Joyce talked about the NPS scores, it's a legacy of doing a good job for those customers and adding value to those customers. Going into the technology capabilities. This is also a unique aspect for Insight. Coming from the system integrator world, that world has all become about mass, it's become about Mr. and Mrs. Client, I know you want 100 people to do this, we're going to go hire them, right? Whatever it is, it is very generalized. Insight's had great proximity to the OEMs and to the partner world and built a tremendous amount of depth in these technologies, working on partner advisory boards, doing all the architecture that it takes to help a client understand what they actually need, very unique, very -- the amount of architects Insight has relative to somebody you'd see in the System Integrator world is wildly disproportional. Because it has been a significant part of our business, we're going to use this to differentiate. And then, of course, we have the portfolio that results from this. That is innovative, there is relevant, there is modern. It's all about cloud, data, cyber, modern applications. We're really driving that way. That's where our investments are going to go. Not only M&A investments, but organic investments to make sure we really drive that. I'm going to kind of dive in a little bit on the solution integrator concept. On the left, you see what we normally thought of the system integrate our capabilities. We think we're very good at those, but there's other people to do those as well. On the right, our technology sales capabilities. We're very good at those, and there's other people who do those as well. Where we're unique is the ability to combine these at the scale that we combine them at. So you think about how this works practically the simplest example is on a client in a given project. We bring in the infrastructure, we do the services. We hopefully then drive it as managed service. I'll give you an example of that here with a video that I hope flows naturally. I think we're 1 or 2 now on that. There's also a lot of leverage in a client, right, where we've got a long-standing relationship in one side or the other and have the ability to bring in a services relationship, we have the ability to actually bring in our technology sales were vice versa. So there's leverage there. Then there's leverage inside of Insight, not only the customer value, but the leverage with the partners, the opportunities for our teams, the economic impact of being able to leverage your sales force better and get a better return, the margin opportunities and a lot of future possibilities for how we might combine these. So I'm going to bring up -- there's a mic effect. We're going to bring a video of John Pelant at Carlson Wagonlit Travel. John is going to talk a little bit about how we combine these different things. [Presentation]

So John's video actually brings out a few different things. It brings out long-standing relationship where we started with it. It was a global need. They had a need for our services. They had a need for the procurement, they had a -- they wanted us to be able to bring all that together and then offer them that as a service, which Insight is uniquely positioned to do because of the capabilities that we have. When I come to the market dynamics. So the biggest thing in our market and the biggest thing and probably almost everybody -- every technology company's market is a shift to the cloud, of course. So this has an interesting effect on our traditional business, right? It dampens the core infrastructure and data center business a little bit. It creates opportunities in devices and networking. But the biggest thing it does is it creates a big opportunity for us to help our clients get to the cloud, right, to get to the cloud, work in the cloud, driving the cloud, transform in the cloud. It drives cloud revenue for us. It also drives services opportunities for us. We've got the unique set of skills you've got there in the middle that I have already covered that places Insight in a unique place as we drive to be a solutions integrator. And it starts really for us a flywheel effect where you start off and you've got a great base of existing customers. You've served them for a long time and done well. You help them go to the cloud, do you help them with services. You get stronger as you do it, you build out those capabilities, you drive much more value into the relationship, which in turn strengthens your original starting point. So it's a great effect that we have in the center of the business that is going to drive our growth, drive our margins, drive ultimately our value in the market. Joyce covered our strategy. She had a comprehensive view of our strategy. These are the actions we're going to take to drive that strategy, optimizing our portfolio, transforming the way we sell solutions, scaling our services and accelerating our profitability. I'll go ahead and I'll talk a little bit about each of those. Optimizing our portfolio is the single most strategic thing that we have. It defines who we are to our customers. It defines who we are to our partners, it defines who we are to our team. The idea here is we're going to be very proactive about our portfolio and less reactive about our portfolio. We've very disciplined. We've got a series of categories. We talked about the anchor category. Those are the core things that we want to do in every one of our major long-term clients. We want to get in there, help them in those areas and help them in those areas for a long time. There's no client who does a 3-month project gets to the cloud and says, "Hey, I'm out. I'm good. I'm done, right?" These are long-term ways to anchor ourselves in these customers and build long-term relationships. We also are going to have scaled, highly cost-effective managed services that go with that. And these will take kind of a range of flavors, ranging from a single service that we do for many clients, a multi-tenant type of deal to going into a single client or a small group of clients and providing services at scale. We're going to -- we're -- clearly, the market is going to move. We're going to need to bring in new things. And so we're going to incubate new services, right? As we incubate, the key is we're going to be very disciplined about how we do that. We're going to make choices. We're not going to do everything. We're going to make choices that are in line with our strategy. We're going to devote the resources, make sure we do them well, launch them into the market and maintain control of that aspect. Back again to the idea that our portfolio is a very intentional thing. And then everything else is just that. It's everything else. We're not shutting down everything else, but we're going to -- in a case where it makes sense for a customer that has long-term value to us and if it makes sense relative to a partner relationship that is significant or if it makes economic sense, we're going to do it, but we're going to qualify much more back to the theme of being very proactive about our portfolio, not just reacting to it. Transforming solutions selling is also really important. You see I'm blocking the screen from a view there. Transforming Solutions sale is also really important to us, right? So again, you start off long-term business, lots of salespeople, lots of relationships, selling lots of technology. As you actually drive into the solutions market, it's a little bit different. You've got to dig deeper into a client, you've got to have different discussions. You got to meet some other people. It's certainly a leverageable starting point. But our organization ultimately has to get better at doing that. as we go forward on our journey as a solutions integrator, this is something that will be a constant evolution for us. This has been going on for some time. We're fairly well down this path. We've met lots of progress so far. The actions we're taking, though, we're going to start off, and we're going to drive much more segmentation into our customer base. So that we aligned -- we're putting into a relationship and what we hope to get out of it in a very, again, intentional and thoughtful way. We're going to make sure that the way we compensate people, is very heavily incentivizing them on selling solutions and driving margin. We're going to align our sales support structures, which are really important. There's a lot of things that go into driving a solution, all the resourcing, all of the operations go with it. We're going to align all that to make sure we are supporting those teams in an efficient way but also in a highly prioritized way. And then we're going to continually invest in building this as a capability, this is a journey you're never done with, right? So I mentioned my experience at Capgemini, you're never -- nobody thinks you've got good account managers. You're never done developing that capability because that capability is so important so in the front line. So we're going to have a very continuous path to drive this. And again, one that we've already made a fair way down Scaling services is my favorite part of this, right? I come from this world, lived in this world, the all time. This was the single biggest surprise that I had in discussions with Insight. My discussions with Joyce, one of the things I asked her along the way was, am I going to be a Zebra in a field of full horses. It's my background natural for this, is it going to work out? And I've met a bunch of fellow Zebras -- it's been great. The Insight services business is kind of a hidden gem. We're all very proud of what Stan and his team have built over time. It's a $1 billion business. It's unique in the aspects of the technical depth it has and the level of expertise it has. And on that, we're going to differentiate I look at where I was -- I certainly was at Capgemini, and we were much smaller than $1 billion in services certainly in the North American business. I look at where Insight sits today relative to where Capgemini did and Insights got a much more advantageous position. It's a much better established company. It's got a great client roster. It's got a great set of people, the culture part about the low attrition, while it may have seemed like kind of a footnote that went by, that's so critical in the services business because it's all about building that expertise, building relationships, and it's very much a person-to-person thing, you can't do it if 1/3 of your people are leaving every year. So the actions we're taking here, first one is we're going to be much more account focused and less transaction focused in line with what I just said about solution selling and portfolio, right? It's not going to be -- let's just react to everything that comes in. It's let's decide on our accounts, let's build those accounts, let's have those accounts long term. We're going to look at the competitiveness of our labor model. We're going to build out India. Hanu is a good example of how we're going to start that and gives us a significant head start. We're also going to work on the labor composition of our U.S. teams and our global teams onshore to make sure that we are highly competitive in our ability to go to a client, we can deliver for them cost effectively and we can continue to hold the margins we want to hold. We're going to drive operating leverage in the business. The easiest lever for this is utilization, to drive that. But it's also focused on delivering to the economic model that you expect and driving out overheads that exist in the business. And above all, we're going to continue to focus very much on differentiating through expertise. That is our unique spot. At our size in the market, where we fit in the market, we've actually got to have a differentiated strategy. So that expertise is going to be our differentiator. And then finally, we've got a number of things. I talked about several growth ideas. A number of things that we're going to do to make sure that we are effectively managing margin as we do all this. First one, Joyce talked about a pricing strategy. To me, this is a -- it's more about qualifying. Back to the themes of being intentional, not being reactive. We really want to qualify deals, set the margin expectations that we have, make sure our entire team knows it. So that's the criteria around clients and portfolio and be very disciplined about how we go through that process. So we're moving towards that. We're also going to leverage a lot relative to cost efficiency, talk about automation, talk about Rob's arrival and driving e-commerce, which is really important to us. We've got cost advantages in India and also in Manila that we use operationally. Those are important. And then we're going to grow. We're certainly going to grow our support services, but we're going to grow them at a slower rate than we grow the rest of Insight. And make sure that as we do it, we're continuing to drive margin supporting growth effectively, but also that balance that I mentioned earlier, the balance of growth in margin. So if you look at the 4 things I just mentioned, we think they're going to have a great growth effect, driving solutions, they're going to have a great composition effect also. And we think they certainly are going to have an effect to increase our margins, Glynis is going again. Glynis puts math to that. I just say words, but we think there is an opportunity to drive a whole lot of value through these actions. So I'm going to close with what I hope you took away from this, which is we are a solutions integrator, and we've got the strategy and the strength to support it. The trends in the market, we've built our strategy around the trends of the market and the trends in the market support us. And then we've got a very clear action plan to get there. So with that, I'm going to introduce Stan Lequin. Stan leads our solutions business and is going to talk about technology and innovation.

Thanks, Dee. What a validation of our strategy, as Joyce said, massive impact in a very short period of time and incredible business partner. And so glad you joined as we have this ambitious plan and drive this together. As Dee said, I'm Stan Lequin, so I'm the President of our solutions team. I joined Insight 11 years ago. I came through acquisition. So Insight acquired my company, which was a pure-play services company and over those 11 years, I've seen just incredible transformation. It's only picking up speed. I love where we've been. I absolutely love where we're going. And I'm excited because I get to talk to you about our capabilities. I get to talk to you about our teammates. I get to talk to you about how we're impacting our clients through the transformation we drive. I get to tell you, you guys going to break after this. So I appreciate you spending the time with us and really excited to talk about what we're doing to drive our strategy. And so what I want to do is double-click on what Dee and Joyce spoke about and really around this concept of superpowers. But I'd be remiss if I didn't mention, I think the #1 super power we have is in the ability to acquire and integrate companies. Acquisition is easy, right? It's right in the check, maybe not as easy for Glynis, but acquisition is easy to see integration, which is really where the magic happens. Today, it would be my 11-year anniversary with Insight. So 11 years ago, I made the best decision I possibly could have made for all of my teammates. And that was a decision I took very seriously. I recognize the opportunity we had ahead of us as being a part of Insight. I recognize that we could be a force multiplier for insight but insight could be a force multiplier for our teammates. And as I'm joined by the panel, Joyce had spoken about this coming out of the break. All 3 of those teammates are -- we're leaders in principles in their organization. all of them came through acquisition. Everyone realized what we -- what I realized not was it a great opportunity for us as individuals, but more importantly, for our teammates. And so super power for us is acquisition and integration. It's the integration thing that's so critical, and it's really the culture that fuels that. But we have technical superpowers, too, which is equally important. So I want to spend a little bit of time speaking through this. And I'll start with cyber security. For us, it's really around the concept that everything we do is secure by design. And so what that means is we use a project we're engaged on to help our clients learn about security principles. To understand what it means to build things with a secure mentality in place to create a security flywheel for future projects by using this project as the standard as the model moving forward. And it's not just the security component of the transformation we're driving. It's driving security to an end managed state is so critical and that could be a managed state that's managed by us. It could be managed by our clients. It could be both, but it's all around that concept of driving everything to a secured managed state and bring that into the operational mentality of our clients. It fuels really well into what we're doing around cloud. And so for us, when I speak to cloud, I'm really speaking through on-premises or private cloud, I'm speaking through public cloud, we really speak of those as hybrids. And I'm also talking about multi-cloud across multiple providers. But from a cloud perspective, it's really around taking those security principles and rolling that into how clients provision services and platforms through the cloud. So security is kind of one of the first things we engage in on a cloud concept. We talk to our clients about really that journey, right? So the big ambitious plan we have, it's backed as Dee said by incredible technical know-how, incredible processes and methodologies, proven success that you've heard from our client testimonials, and I have a couple as well that will speak through that. But it's really about creating that journey for our clients, meeting them where they are in that journey and helping to road map it out. And for us, and cloud, I'll use the example or I'll speak to it as Cloud 1.0, 2.0 and 3.0. And so in the 1.0 journey, it's really Infrastructure-as-a-Service. It's spinning up virtual machines, it's moving virtual machines from data centers. It's kind of treating the card like a data center, but you get the benefit of instant provisioning. You get the benefit of starting to consume cloud-based services. And early on, we helped our clients with that journey. But as we worked with them on that journey, we really talk to them about how cloud could be an enabler, can be a strategic asset for them to be a flywheel for innovation, and that really moves into the 2.0 concept. So in the Cloud 2.0 world, it's really around platforms-as-a-service. It's hyperautomation around platforms. It's standing up these platforms that allow you to basically roll out services quicker internally and externally. In the Cloud 2.0, it's about consuming best-in-class services across the hyperscale providers and doing that seamlessly. It's about automated provision, a hyperautomation, platform-as-a-service, building out automated platforms to again, fuel innovation. It's in the 3.0 world where things really magic all start to happen. And so in the Cloud 3.0 world, it's where you start to blend not only your cloud platforms, but you start to blend that into your Software-as-a-Service solutions, right? So you can think of bringing your business applications and solutions into what you're doing from a cloud perspective. So when you're ramping up services, you're wrapping up services, security, authentication, data and analytics really across your business platforms as well as cloud platforms. And we start to see Federation in the 3.0 world, it's about cloud at your place of business. And so I got a great example, I went on a call last week and it was with a very, very large healthcare organization, one of the largest healthcare organizations in the world. And whenever we're meeting with these clients, our clients around this executive briefing concept, we always want to bring a big idea what's something transformational that we can bring to them that maybe they haven't thought about. And I think this speaks so well to our solution integrator capability and so in this example, we talked to them about you've made these big investments. We did this massive project for you to roll out a software-defined network. When we did that, we put this incredibly powerful infrastructure out at the edge. You wanted to go a powerful infrastructure. So you knew at some point, you could use that infrastructure. We also know you made a very big investment in this case in Google. They really use all 3 hyperscale providers, but they had picked Google for their analytics capability, specifically around big query, which is a Google Advanced Analytics product. And so we talked to them about, imagine a world where you create an AI Mesh, you take big query-ami, you package it up in containers and you push it out to these 3,000 devices you have out at the edge. It's terabytes of processing power. It's thousands of CPUs. And what that means to you is not only are you going to save money on the egress coming in and out of the cloud. But more importantly, you're going to put processing power out at the edge where you need it, place a business for healthcare is hospitals, it's a place of care. And so when you can process and get access to data quicker, think about what it means from a human life perspective, I love the type of transformations we drive. I take so much pride in it, we all do. When healthcare is involved, when we're impacting communities, it's even more important, it's even more impactful. And it was something that our clients said, we didn't even think about that. It's -- that could be such an enabler to our strategy, that can allow us to do things from an analytics perspective that wasn't possible, we're going to only have to do analytic processing in the cloud. What partner can do that. We have the network expertise. We're part of their technology road map. We helped them along that journey. Now we know what they're doing around advanced analytics. We know what they're doing around cloud. We understand their strategy. We helped inform that strategy and we can pull that together to drive something compelling to them. So a pretty cool example of sort of a cloud 3.0 world. Again, cloud 3.0 is about putting things where you do business. It's around having that autonomy to put services where they're best delivered from an optimization cost perspective, from an impact perspective and from a strategy perspective, data and AI. Data and AI is weaved into everything we do. We've been doing data for quite some time. The advanced analytics AI, AI provision, AI for optimization, AI for prediction, AI for language is a bit of a superpower of ours. One of the acquisitions we made was BlueMetal in 2015, and that's 2015, and that's really what BlueMetal accelerated around unbelievable innovative use cases at the edge. And so AI for us now and with our clients, it used to be a differentiator. Our clients are now weaving it into everything they do. It's starting to become table stakes. When the market changed when the pandemic hit, our clients, some of them saw leapfrogging of competition because they had made these investments. Others did not see that leapfrogging and created a little bit more separation in a bad way from competitors because they had not made these investments. And so AI is quickly becoming table stakes in the solutions that we're rolling out. And so we have a great example. We're going to have a friend of ours, Dave, from Steward Healthcare, who is the CIO talk about how we fundamentally change their business by leveraging advanced analytics and AI. [Presentation]

What a great story from Dave. One of the things he didn't speak about was part of what we did was we analyzed patient length of stay and run analytics against what we could do to optimize patient length of stay. And what we're able to do through that process was take length of stay from 4 days down to 2.5 days. We reduced length of stay by on average 1.5 days. Imagine being a patient at Steward and how many length of stay reduced by 1.5 days, what that means, getting out of the hospital sooner being back with your family sooner, not being exposed to things within the hospital and such a huge impact. You would think in healthcare, the longer you stay in a hospital, more profitability drives us not the case at all. And it was really around optimizing who got what test when based on the condition they were what was going to allow them to exit the hospital faster. When you talk about teammate satisfaction for us, it's about experiences. In this case, the experience was for the clinical staff. Imagine as a nurse working through a world where you're guessing on staffing levels, you come in and then you're told you can go home that day because they don't need you. where with what we did allow them to predict, as David said, with a high level of accuracy, staffing levels 2 weeks in advance. So just an incredible impactful project. We did this project a little bit ago, too. It just shows you how early on we were from an AI perspective. And as David said, they still use and enhance that app suite. Additionally, Steward right before that went on a bit of an acquisition spray. What they were able to do is take the money that we saved, which was in the $100 million area plus reinvest that into acquiring new companies and then optimizing every single one of those healthcare organizations they bought through the data and AI suite that we built. So pretty impactful. So I talked to you really around the left side of this chart around cybersecurity, modern infrastructure, data and AI. We speak a modern infrastructure really as cloud but our roots and infrastructure are so critical here. The capabilities we have in the data center the capabilities we have in the edge because what happens is we become the bridge for the infrastructure teams, the operating teams and the development teams through concepts like DevOps. And that really comes together with modern apps. And so for modern apps, it's really about helping software or helping companies transform into becoming software companies, whether it be manufacturing, retail, whatever it may be, companies are realizing that being able to build a unique experience with their customers is critical, right? Being able to use the power of software to unlock new revenue streams being able to monetize their data in unique ways that helps them become more competitive, being able to build experiences, the best experiences allows them to shift markets and take markets to be the disruptor and not be disrupted and from a modern apps perspective. It's not just how to build code in a modern world, how to leverage all the capabilities of modern infrastructure, it's about concepts around design, design matters. It's about helping companies with that transformation, you think of the processes and cultural changes that are required to become a software development company when your legacy is maybe in manufacturing, such a critical part of what that road map is for us. And it's all around the concept of best experience wins. And so we focus experience across a couple of planes. The first one is what are the experiences that our clients are going to give to their customers. It's around what are they going to give from an experience perspective to their knowledge workers in this case, clinical staff, again, best experience, high teammate satisfaction, low attrition, big impact. How do they optimize their business through the access and the things we can do to unlock data, the democrization of data to put data in the hands of people that can make the best possible decisions with it. And then sometimes it's even enhancing products. We help our clients enhance their products through these concepts of modern software development. For us, everything comes together in Intelligent Edge, one of the acquisitions we made was because that company recognized the power we had as Insight, the ability to get tens of thousands of things out, to tens of thousands of locations. And while you're client in that process, is so critical in the edge world. I gave you an example, there's 3,000 pieces of infrastructure that we pushed out in that healthcare example that we took care of the deployment of it, the acquisition of it, getting it placed the configuration, everything associated with it. That is a super power when it comes to Intelligent Edge. This all comes together around the edge and so it's not only our legacy in putting all those devices out in the field, but it's the ability to build platforms to securely manage them and then through data, AI and software unlock the power of that data, take that to telemetry information that sets out the edge pull it in and make unique insights around it. A great example of Intelligent Edge that I think kind of really brings this together is we did a project for a railroad company. In this case, the railroad company wanted to understand any safety issues or any concerns with the track and they want to do it at a macro level and a micro level. And at the macro level, what we did was, we built a piece of analytics software that connected into a drone program that flew over the tracks and analyze the track, is there any debris or any issues that are going to cause problems. We would take that data back, AI for vision. We'd run it through predictive models to see if there are any issues and then flag possible problems. And so that was the macro case. Additionally, what we did was we sort of built a little data center in every one of the cabooses, and I think they're called cabooses, right? That's what we call them as children, but what we did was we put these high-definition cameras in the cabooses and it basically allowed us to analyze the track at a micro level, right? So what's happening around attenuation, what's happening around track movement, have the bolts changed. Let's flag that as a possible issue. Let's build a trending associated with that to find out what future problems could be leveraging AI for prediction. And so that's a real-world example of Intelligent Edge coming together and having a meaningful impact. And in this case, safety is a big part of that for commuters. From a modern workplace perspective, Dee spoke about this. We have an incredible team, a client base that uses us for procurement services uses us for productivity services. And modern workplace is really around taking all of that device business, taking all of that software asset management business and wrapping that around services and delivering it to our clients in a consumption or OpEx-based way. And so we have incredible capabilities around Device-as-a-Service, productivity-as-a-service that all maps into this. What I love about everything we've built is it's really taking this incredible core base that we have that's unique to us and then enhancing that with the services that we put on top of it to drive transformation. So it's all about, for us, scale. We've proven that we can do this. We've proven we can do this in a decent amount of scale, but now how do we sort of become that amplification of the scale components. And there's a couple of things that are really going in positive direct. There's a lot of things that are going in a positive direction for us. But I just want to point out a couple of them. So Joyce spoke about this 5,300 teammate number. We have doubled the size of our teammate -- technical teammate base in the last 3 years. organically. And so think about great recession, everything that was going on. So not only did we hold our own attrition lower than industry but we're able to add incredible talent during that period as well. And so you can imagine with us being able to do that during the tighter times, how good we're going to be at it when we're running into a more sort of fluid market. From an innovation perspective, 70 patents, this is a big part of why we're able to attract talent. We have this culture of innovation. We celebrate and really drive towards innovation. It's a key component of what our culture is. From an innovation perspective, imagine what it means to teammates to be a part of that, to be part of a patent solution, how that celebrated your work celebrated to have it fundamentally change the way we do things around services. Joyce talked about 2 components of our IP. We're going to roll a video during break. And if you get a chance to watch it. It's our team, it's actually who are participating and driving this innovation, talking about the products, talking about what it means, talking about what these patents be to them personally, but also what it means to Insight. And so Joyce spoke about SnapStart. SnapStart was a teammate who looked at it and said there's no great tools we're doing so much around cloud. There's no great tools that allow us to not only analyze what you have but then put that through models to say what we should transform towards, right? So not only the current state, but what should that to be state be and the cloud transformation. We don't want to just lift and shift your infrastructure, there are other companies that can do that. We want to transform your company and transform your infrastructure through that journey. It's really what SnapStart was about. Joyce talked about Lens. Lens is the data equivalent of that. And so how do we get you into the cloud faster? How do we get you to the ability to where you can start to unlock your data, start to do things around advanced analytics quicker. Well, we didn't -- we needed a solution for that. It's really what we've built around lens. And lens does not just do the sort of migration component, so is the transformation as it's in flight as well. And so that is the data migration -- advanced data migration capability we built around data warehousing. So it talks a little bit about what we're doing from an innovation and transformational IP perspective, customer sat. We've made these acquisitions. We've grown organically. We've kept attrition low. Again, acquisitions, easy integration is where the magic happens. We've also kept our clients will through that whole process. And then lastly, scale, 4 million managed cloud seats. And so I spoke about what we're doing on modern workplace. Clients have ultimate choice to move from us to someone else, they stay with us because of the services that we provide. So we protect our market share by doing that. We take market share because of the advanced capabilities we have in that space. Awards, they mean everything to us. It's a recognition from our partners and our capabilities. It's a recognition that we're their partner to drive transformation with our mutual clients. Joyce had highlighted this. The biggest thing for us is the lead flow that comes through because what that says to us is our partners recognize our services because they know in a consumption-based economy, we're going to help maximize the opportunity for them because we're going to wow the clients. We're going to help the clients understand how this becomes an asset to them, these platforms and these products that they buy. We're going to help build a road map on how they continue to transform their business around these platforms and solutions. And so for us, the biggest -- the biggest reward that we can ever receive is just the traditional -- is the continued support that our partners have in us to be the partner of choice for them, and it's through that lead flow. It's in that relationship and knowing that mutually we're going to help transform our mutual clients together. And so one of the most transformational companies, I talked about Cloud 2.0, 3.0 is HashiCorp, absolutely love everything Hashi's been doing. We engaged very early with them, as Dee and Joyce said, we're going to look for what are those unicorns, what are going to be those innovative companies that are going to help sort of transform. And HashiCorp is definitely one that we identified very early and had an incredible relationship with them. they're really driving that multicloud, whether it be on-premise or in the cloud, hyperautomation. They're doing a lot to drive really that, as I mentioned, the Cloud 20, 3.0 world. And so we're so proud to have them as a partner and I'm really excited to have Armon, who's their CTO, Co-founder, one of the most innovative people that I've ever met, talk about the Insight and HashiCorp relationship.

I appreciate the opportunity to talk with you about HashiCorp and the Insight partnership. My name is Armon Dadgar, Co-Founder and CTO of HashiCorp. At HashiCorp, we enabled the world's largest companies to deliver applications faster. This is driven by application modernization, zero trust approaches to security or adoption of public cloud infrastructure. Our products enable a cloud operating model with a consistent way to provision, secure, connect and run any application on any infrastructure. When it comes to the transformation to modern platforms, we see the intersection of all of these trends. Organizations want to enable their application teams to quickly deliver while at the same time, providing the necessary governance and controls for an enterprise. Improving the agility of development teams is often the top business priority, but it cannot come at the sacrifice of security and operational efficiency at scale. The Hashicorp products play a critical enabling role for application security and platform teams. However, there's a necessary transformation in the delivery beyond just the underlying technology. Helping with this transformation is why Insight is a strategic partner to HashiCorp. They enable our mutual customers to achieve their goals and create long-term value through their expertise and extended services capabilities. Insight is unique in both understanding the HashiCorp solutions and bringing expertise from adjacent solutions from other ISP, CSP and OEMs, allowing for innovative solutions for our joint customers. In Insight's consultative and customer-centric approach complements the HashiCorp products and helps drive business value through a broad array of delivery capabilities. Partnering with Insight over the last 3 years has grown the reselling business of our software, but has also accelerated the value of the solutions by allowing our customers to really drive adoption and the business transformation required for them to be successful. We look forward to continuing to partner and deepening our investment in the relationship with Insight over the years to come. Thank you.

We were one of HashiCorp first professional services partners where they would lead -- they would give us lead flow [indiscernible] and count on us to be their professional services engine as they will continue to build and enhance their products. This was, I don't know, a month ago, I got an e-mail from a massive, massive company, and it was about the work we did at that company with HashiCorp in combination with them sent to us as well as Hashi's executive leadership team, which I think is a big part why Armon felt so good about coming on and talking about our partnership and it spoke about how we -- how we're transforming their company around the enablement that we're driving through cloud and through HashiCorp. So incredible partnership, which we really appreciate, and it's one that is really allowing us to help transform our clients. So it's all about driving business value. We focus on outcomes, right? And those outcomes all lead towards a couple of different patterns. And this is a Cloud 1.0, 2.0, 3.0 world, which I used earlier. But this could be data and AI. This could be a bunch of transformational focused areas. But it's all about driving the same exact sort of outcomes in different ways. And it's around increasing profits. It's around reducing cost, optimizing our clients' business. It's about creating new revenue streams. It's about monetizing and unlock the power of data. But everything we do is about a focus. It's about driving an outcome we come together and say, what are the business outcomes that we can drive. What's the transformation we can drive? How can we help our clients be better tomorrow. What's unique about us, and I think this is really well described in the story I told about the healthcare organization. It starts with IT transformation. And so that's an 18-year relationship that we had with that company. We understood where they've been. We understood the investments they've made. We understood their IT technical direction, and we have these relationships across thousands of clients, but in this one example we're able to take that information and then drive that into digital transformation initiatives. So how do we take the strategic direction that they picked around analytics services and connect that into the previous investments they've made to unlock new opportunities for that organization. And so this is really about building platforms that drive innovation. And so our core, our history, moving into how we set up these platforms to drive innovation. And then lastly, that moves into really innovation. And the panel is going to talk about some additional stories that really highlight this, but for us, it's about educating our clients on design thinking about what human-centric design means, right? It's about the power of design, the power of experience and then creating a flywheel through the platforms we create based on the core IT investments that our clients have made. It's understanding their technical depth, it's understanding where they're going. And that really is what a solutions integrator is. We have incredible competitors in each one of these spaces, but none that go across this whole gamut. The typical global systems integrators will live in this space, which is really the digital transformation space, pushing through the innovation space, but we're really unique because we can engage through that whole process. So that's all I have, but I'm really excited to have the panel come up. And so we are going to take a break. Again, we're going to roll a video that is our teammates talking about innovation, patents, to see their engagement, their passions around it, I think, is incredible. So if we get a chance to watch that. And then I will be joined by 3 of my colleagues as a panel. So thank you so much. [Break]

Well, thanks so much. Welcome back. If you get a chance of video, it was Microsoft just basically saying we're awesome. And they did a very good job of it. So I am so happy to be joined by 3 of my teammates here thought leaders at Insight. And so we have Phil Rickson, Matt Jackson and Jason Rader joining us today. As I mentioned, all of us came through acquisition. All of us were principles in our organization. All of us have been here for at least 5 years and have witnessed that incredible transformation. And so we're going to talk about how we're impacting clients, innovation we're driving and tell some stories, which I think is the best part of what we get to do. And so Phil I'm going to start with you as a leader of Asia Pacific, Talk to me about the superpowers in the region.

Sure. First, let me say it's great to be here. Superpowers. We have a lot of superpowers. But I would say for me, our #1 super power is the way that we help customers to reimagine the business for digital. So we're well known for our technical progress around apps and data and security and integration. But we're less well known for that front-end strategy and design work we do using techniques like human center design and design thinking to help customers really imagine how the business can be. So if I use an example where I'm from in Australia, the Department of Water and Environmental regulation is effectively the environment agency for the largest state in Australia. They manage the environment for a vast state to give you a bit of an idea. It's about 3.5x the size of Texas. So it's an enormous area. It's got a pristine wilderness environment. They've got the largest fringing reef in the world. They've got UNESCO World Heritage sites. They've got cultural sites for one of the oldest cultures on earth that date back 45,000 years. But the Western Australian economy is really based on industry and mining. So they have vast reserves of oil and gas, iron ore, lithium, gold, diamonds. And so they're trying to strike that balance between the industrial and economic needs of the state and protecting a pristine wilderness environment and the biodiversity is a really, really difficult task. So the department originally approached us probably about 18 months ago with a bold ambition to transform into a digital environmental regulator. And so we came in, we met with not only the departmental staff, but also with industry groups, environmental groups, and we sat down and we really worked out and helped the customer to -- firstly, we mapped out their entire value chain. And then we help them to reimagine what their business would be. So we blueprinted the way that services could be delivered in the future using design thinking and human center design. And then starting with the end state in mind, we really helped the customer to imagine the art of possible without being constrained by their current thinking around their current processes and fragmented applications. So the strategy was really, really well received. And the goal really was to they do these $1 billion projects. If you think about the big infrastructure for the state, mines, ports, rail, and so if you couldn't compress the time down, these environmental approvals can take years. And so the economic benefits to the state, these projects can have thousands of people involved in the construction. So the goal is to shorten the time frame but also be able to use modern cloud technology like AI and data science and machine learning to be able to look at the environmental studies and all the biodiversity data in one place. And so the -- we came in, we did the full digital strategy and online vision for a project that became known environmental online -- environment online. We delivered that. That was really, really well received. And as I said, we put the human at the center and really put the stakeholders in the center of these complex environmental approvals. The first phase went live earlier this year. So now all complex environmental approvals for the state of Western Australia go through this new digitized system that we helped to built and we've now started on a 3-month -- 3-year sorry, transformation to help the department fully modernize and transform their systems in the cloud. And so yes, we use the great capabilities that we're known for around apps and data and cyber, but for me, our true superpower is that front-end strategy and design piece that we do using these modern design techniques to help the customer really reimagine their business.

What a great story. And especially, we have so many teammates that live in Western Australia. And so that balance of the economy plus sustainability plus the environment, such a big part of it, and the awesome responsibility for our client and managing with advanced capabilities. I love the sort of transformational [indiscernible] position there, one of the oldest cultures in the world being maintained and supported through technology. Incredible. Thank you so much, Phil. Matt, you've led transformation for a while now with the acquisition of your company in 2015, the incredible capabilities around edge around IoT, around cloud, around modern app. I mean maybe talk a little bit about the same question really around superpowers and maybe tell a story that puts that in motion.

Yes, absolutely. And actually, I do want to go back to something you alluded to and Joyce talked about as well. We've all come through acquisition. And I think one of the really important things is that Insight has been really intentional about acquiring the different capabilities or growing the capabilities to help our clients through every stage of that digital transformation journey to saying we can help a client transform as one thing, but really to own that transformation and kind of guide them. I think of us as like holding their hand through those stages is really been important. So we start with the outcome. Phil, you talked about that, but I was actually in the room, if you remember the Steward video. Dave was talking about the napkin. I was in the room when the CEO presented that idea and everybody kind of looked around like, "Oh boy, this is going to be interesting." But the key was starting with the vision for what they wanted to accomplish and then layering in all those great technical capabilities to achieve the outcome. I started as a software developer. So I'm a true geek, I'd like to code. I like the technology. So for me, I think one of the most interesting areas right now for us is helping clients at the intersection of their data estate and the human experience. So that could be an enterprise application. It could be a mobile consumer application or it could even be something at the edge. Really interesting stuff happening with cognitive services at the edge, like you talked about for the railroad. And so one of our most ambitious clients, it's actually client we've been working with for about 10 years, Kroger. So Kroger is one of the largest grocery chains in the country. You think about them, not a very digital business. right? They sell eggs, milk, broccoli, but they have this ambitious goal of driving 50% of their growth through digital assets. That's incredible. If you think about this industry in the last 2 years, the amount of disruption that they've gone through, so supply chain, like who knew that there's going to be a big rush on toilet paper a few years right? But that was a real problem for them and the investments that they had made with Insight help them adapt to all of that chaos. So we started at their data estate. So thinking about all this amazing wealth of data they have about their consumer buying patterns, supply chain, pricing, getting that all into a modern data estate was task #1. So we worked with them in a subsidiary called 8451 that literally monetizes that data. So it brings all that data together and then resells it to consumer goods manufacturers as well as marketers. So really the most direct way to monetize data, selling it back to industry. But once they had that wealth of data they could start to introduce new experiences into their store. So we worked with them on an intelligent shelving, right? So you think about today, you go to the grocery store. And most of the places that you go to, they have those little sticker guns, right? So literally putting a little sticker price on every one of the tens of thousands of items in the supermarket. So now there's a big run on diapers. How do you adapt to that? How do you change your pricing automatically? How do you deal with the change within the store as well as the potential efficiencies wasted by having people go out and put all those little stickers on things. So we came up with an intelligent shelf that's a digital panel where you could do real-time pricing, so you can adapt to what's happening both within your supply as well as the consumer demand. So a huge win from an ROI standpoint, right? They're able to drive better margins, but a big productivity gain, too, because they don't have to have those people going out, putting the stickers everywhere. What I really loved about this one, though, once we put technology at the edge, we could put sensors in that too. So it even had things to detect, is anybody in the aisle. If nobody is in the aisle dim the lights down. If nobody is in the freezer, adjust the temperature. So it's a sustainability play as well. And then last, but certainly not least, so you've probably seen a lot of the grocery stores. It's a place that people go to every day. You've got -- that you have to go in there to get your groceries. They've started to introduce pharmacies, but Kroger had an initiative to introduce health clinics as well. So this is right around the time of the pandemic, so vaccines, urgent care, et cetera. So they reached out to Insight based on all the great work we have done to build their mobile health app. So now they could again, gather all that data, engage their customers in a totally new way. So whether it was finding out about medical information, getting your prescription at the pharmacy or even scheduling a clinic visit, it really transformed the way they engage their clients. And so one of the things that I love about that story, we've been working with Kroger for about 10 years, and we had built that trust. But when it was time for them to transform into a digital organization, they trusted Insight to do that.

Matt, you have a quote used to say all the time and I love in 2015, how many people were writing checks for IoT, Internet of Things.

I mean maybe we talk somebody into it, but yes, that one.

And so it's all about that purpose, right? And so when we looked at what was happening with the industry, what we predicted was going to happen, we thought IoT was going to be a massive opportunity. And we also felt like DevOps was going to drive cloud consumption and both of those things came true. And your company is very focused on both of those areas and has become a force multiplier. When you were telling that story around what we do from a mobile perspective. One of our teammates sent me a screenshot and was from the App Store, and there were 3 apps. First app, 5 stars; second app, 3 stars; third app, five stars. And he titled the e-mail, which one is different than the other. And the 3.5 star was the one app that we didn't have build. And so it speaks through, again, what we're doing around mobile, what we're doing around innovation, what we're doing around enablement. Jason, constantly changing, especially from a cybersecurity world, the world you live in regulations, people are learning new things daily as people deal with threats. Can you talk a little bit about how we engage with our clients, how we are driving that transformation and maybe tell a story that sort of personalize that?

Yes, love to. And I think -- I love the point that was made earlier. From a superpower perspective, I love -- Stan, you had mentioned that securities underlying element of all that we do. And I think that's awesome. That's where those companies that we acquire come together, and then we all work together to provide that complete solution that's super compelling. And I think -- from a superpower perspective, when cyber leads, when cybersecurities leads the engagement, it pulls all of those things along with it, which is not typical of a normal cybersecurity consulting engagement. Usually, it's very security focus, but we can pull the other elements along. And so that's consulting, that's technology acquisition through life cycle services. That's managed services. And that's, again, a power of the combination of those acquisitions and the power of Insight. So it's really exciting. A great example of this is a client that we worked with following the Colonial pipeline incident that happened last year for the uninitiated, that was a ransomware attack on critical infrastructure oil and gas pipelines that kept petroleum from being delivered on the East Coast, and you probably remember the news or you maybe waited in a line for gas. What happened after that event was the TSA created a new standard that they pushed down to the 100 largest oil and gas companies in the United States that considered critical infrastructure. So a brand-new standard and the client that we worked with was hit with this and had a very, very aggressive timeline. And by their estimates, they were going to have to hire 40 people just to operationalize whatever solution they were able to come up with. And we had already been engaged with this client as an infrastructure provider. We are providing infrastructure and manage that infrastructure for them. They came to us because they really didn't have the time to do the bake-offs from a technology perspective to addition all of the different partners that were out there to bring the solution together and then integrate those separate solutions from multiple partners together into what they needed really, again, super power applied, we came in, brought in GRC experts, so governance risk and compliance experts to come in and do the consulting to analyze this brand-new standard, take a look at the road map of the business align it appropriately to meet those requirements and develop a plan of action for them. It was funny, a brand-new standard our guys knew that, that standard was probably going to change a little bit because that's what standards do and gave some good advice to the client prepared them for that, and they were right, by the way. So that was really helpful from that perspective. Also, for this particular client, they were working their own road map. So they had previously combined their environment from an OT operational technology and IT perspective into the same, which was a trend, but because of this new requirement, they had to redesign and separate those environments again. So it really put them in alerts. They had to acquire new technology. All of these things, we brought our infrastructure team in re-architected the solution, brought those experts in to be able to. And not just for the purposes of this particular standard, but really help them advance their road map in general. So again, looking way beyond that particular case at hand, and partnering with them to do all that, acquire it and implement it. And if we had just done those 2 things, it's pretty awesome. We would have delivered a good thing for this client. But they -- by their estimates, they would have to hire 40 people to operationalize this. And there was no way in the timelines that they were given what they've been able to accomplish this at all. So the fact that we were able to come in from a managed perspective had helped these guys really was a game changer for them. And that's a big deal. And I think that's from a superpower perspective, that's what we can come in and deliver to our clients like that.

Yes, I'll just add too, because that was an important project where we figured something out for time. But now we've also resold that solution to other similar industry, oil and gas companies that need to follow those same regulations, perfect point.

Yes. I think it's about core competency, right? So for us, that's our core competency is securely managing environments for them. Their core competency was in oil and gas and energy, right? And so recognize us as a force multiplier and allowing them to get that done. And then what I love about that is exceeding the standards, knowing the stands are going to change and those standards did rapidly change. And as you said, we got it right. Matt, you talked about scale and how you spoke to you that we've turned that into a solution that we're bringing to other clients. Let's keep that theme go and maybe talk a little bit about what we're doing to scale of our services.

Yes, absolutely. And it's interesting. A lot's changed in the last few years with the pandemic. We used to talk about offshore or onshore, maybe nearshore got into the mix. Now people are talking about right shore. So meaning meet the client where they need to be. Almost all of our projects, especially large projects at scale have all of the above. And so that's fairly new, but it's been made possible through the use of technology. You can basically be productive anywhere, including anywhere in the world. And looking at the stories we told today, either our client case studies or just the ones who have told on the panel here, they're global stories. These are big industries with big problems. They're all over the world, and many of them are everywhere in the world. And so being able to meet them where they need to be is really critical. A few years ago, we acquired PCM. That was really important for us because it had effectively a base in both Manila and India. So we could start to expand those global capabilities. And then as you talked about with a new, that really gave us that acceleration of the offshore. What was really exciting about great capabilities in their own right, but the thing that attracted me to the company was both their culture, their relationships with local universities and that academy that we talked about. So really, the ability to bring in people that are new to this industry and train them up to be productive is going to help us scale. But also, I think as Dee talked about, make sure that we're price competitive. As we take on bigger and bigger projects for global organizations, we need to make sure that we can compete on price and quality. And so we've really been able to scale through these acquisitions and then continuing to invest in those companies.

I think there's a bunch of times where we've driven innovation, and our clients have said, if you could get me a couple hundred, a couple of thousand of -- I would love to use you in that capacity. And so there's a huge opportunity for us. And we're going to think about our teammate base in the tens of thousands sometime in the future, and that's really exciting. And then to be a part of that mentorship to be part of that growth to see that impact you have in those teammates is incredible. Phil, maybe we talked about -- let's kind of keep on scale, but we talked about Joyce book around industries a little bit, and I know we engage in a bunch of different industries and drive transformation at scale in those industries. Maybe give us an example of scale and maybe an industry we haven't talked about yet.

Sure, absolutely. So I'm sure you'll be pleased to hear. There's a lot of opportunities for us to scale, particularly with this audience. Many of our customers in APAC and Bakken on large transformation projects and you already heard from Perpetual, which I'm proud to say is an Australian customer. And so we're doing a lot of large transformation projects. But for me, one of the real opportunities for the scale is -- and we've already touched on this, is the opportunity in our underpenetrated software and hardware business. We have a really large product resale business. And we're still very early on in penetrating that customer base with our services. So if I use a different industry than we've talked about today. I use maybe the Department of Education in New South Wales. So Department of Education, New South Wales is actually where I'm from in Sydney. They're the largest education provider in Australia. So they've got about, I think, about 800,000 students, about 95,000 staff. So they were a big government agency. We've been a trusted adviser and partner to the Department of Education for many years. We've been advising them around the cloud software. We've been helping them to understand the features of cloud and helping them to adopt cloud. But what we haven't been doing was really providing those transformation services on the top. So helping the customer to actually transform and provide outcomes for the business. And so when the Department of Education's Cloud renewal came up last year. We were able to bundle in services to start that transformation to add value on top. Not only that, but one of the things that's often overlooked in this is. I remember, I came through an acquisition similar to Matt and Jason. And when we were a small company, getting on the panel of large customers with tens of thousands of users, it's not easy. And so with the Department of Education, we had a master services agreement in place, which is it sounds insignificant, but it's so important to get that contractual instrument to be able to buy services. We were a trusted adviser. We've been working with them for many years. And so when we manage the bundling services in the renewal, we then became an obvious choice to be able to do transformation. And so for the department, we've done probably since that when you're probably half a dozen projects around apps and data and productivity really helping them to improve teacher outcomes in the field, but also to help them with the training of teachers in the field. And if you think about that opportunity, and we have several thousand customers in APAC alone, where we've got a great, deep, long-standing relationship from a products perspective. And then you multiply that by the tens of thousands of customers globally. It's a massive opportunity to scale, and we're still very early in that journey. I mean for us in APAC, you talked it's done about the services business more generally doubling in size in the last 2 years. We've certainly done that in APAC, and we're a lot bigger now. And so our ability to go into those very large customers and have that end-to-end capability around transformation and to be able to go and do that and delivering to those customers, it's a real opportunity for us.

Dee, I remember when you came in, you smiled and said, well, we have all the clients we need and now we just need to engage with them and open up all the greatness that we have, and here's an example. So someone who knew us for our technology provider capabilities, we engage with them about how we could drive transformation. You talked about propensity for services, the amount of analytics we can get out of our systems and what folks have acquired and then come up with creative ideas that the healthcare organization I spoke through to really drive that type of transformation. Again, going left to right through the technology component to digital transformation, create that flywheel for innovation. And so I absolutely love that story. And I'm excited about all the other clients we're going to gauge to drive similar transformation. Jason, we are obviously a large organization. And so we have a very sophisticated and well-run IT organization, and I know we leverage each other's capabilities and services, and it's just an incredible partnership, which we appreciate. Maybe you can talk a little bit more about that partnership in motion as it relates to cyber.

Sure. Thanks. So -- it's an interesting perspective to be the CISO of a very large organization and to be client-facing and to be working in an organization that's transforming and scaling out the way that we are. And the security threat I'd love to say is going away just absolutely isn't. It's -- and one of the things from our perspective is our problems are our clients' problems. So as we solve our own problems, as we grow, as we scale, as we deal with embracing the cloud, embracing IoT and all the things that we do from automation, everything that we do within our organization, it's brilliant to be able to work with experts in the field that are innovating for our clients. and innovating inside and being able to exchange that IP, the 70 patents are going to be leveraged for us as well as for our clients. So that's a really cool environment to have in that relationship that we have back and forth. And it's super empowering. It's another reason that I was super excited again when our organization was acquired by Insight and coming in and seeing the vast amounts of technology partners that were here and being able to put together a solution that had any technology and then being able to have the power to be able to put those things together with the engineers and architects that are rock stars, it's amazing. So from a CISO only perspective, super confident that we can innovate with the technology that exists with the people that we have to be able to do the things that we've got to do from a security perspective, but it's really awesome to be able to take that to our clients as well. And when there isn't an off-the-shelf bit of technology that can be integrated with other technology. We've got our modern application folks that can create a bespoke solution if necessary, top to bottom to be able to solve these problems. So again, I like to think from a line of sight perspective, we've got this covered, but again, it's our duty. From a security perspective, we've got to protect our clients as well and keep that innovation going.

I'll just add. A lot of us came from services background. Coming into insight and seeing the relationship we have with our partners was really eye opening. And one of the things that is important is that we provide a lot of value to our clients. We also provide a lot of value to those partners. They can't solve these problems by themselves. So a typical solution has about 10 different partners involved, so 10 different technologies. So no one OEM can solve that client challenge by themselves. They really need the complementary partners that Insight can bring together and then kind of our special sauce with the services to drive the outcome. That's the solution integrator.

I was told by one of our very, very large partners that they really prefer us to talk about them as opposed to them talking about them because it's so much more compelling, they said, for us to tell that story with them as part of it because it really sells what their value is more than them doing it themselves. So I really think it's a symbiotic relationship that we've got.

Yes. I think the big thing is it's about us talking about outcomes on their products, right? I think that -- and how that can have the business impact, I think, is really what we see there. It's been an incredible partnership from an IT perspective. And Jason comes to a lot of client calls. And as Joyce said, all 3 are leaders in the industry and to have Jason talk about what we do from a security perspective at Insight, which is leverage our own talent is a huge justification or a huge check mark on just the level of talent we have. So appreciate it. Really appreciate the time. So obviously, 3 incredible thought leaders, 3 folks that are passionate about the type of transformation we're driving a representation of 5,300 incredible technologists. All of us are technologists. That's really what our background is. And we continue to love the journey we're on. We continue to love the way we're engaging with partners the innovation that we continue to drive. And again, just an incredible representation in the 3 of you of our 5,300 teammates. So thank you so much for the time. I really appreciate it. And then we're just going to clear the stage real quickly. So I'm supposed to stand up here and pause. It's more awkward for me than it is for you. I guarantee you. I'd rather be me than Glynis. Perfect. Okay. Well, I am really excited to have Glynis come up and really talk about our ambition in motion as it relates to the financial components. So Glynis, come on board.

Hello. It's a little bit of an echo telling this to the guys in the room. I have the pleasure of talking to you about what you came here to hear today, what we're going to deliver for you in 2027. Before I start that, I would just like to give another round of applause to this tech team that was just here. I actually think that they did a phenomenal job of explaining some of the technology that we deliver to our clients, and I think kind of plain English, so that most of us could understand it. And this whole concept of a tech talent, many of you suggested to us with regard to being able to showcase the technology that we have. Because while we talk about technology and digital transformation, what you told us was that you didn't really know what we did. So hopefully, today, after that and some of the other climate examples that we've showcased today, you have a better understanding of exactly what it is. We do, did do, will do as we're on our journey to be the solutions integrator. I'm actually going to start out with the end. I'm going to walk you through why Insight is a great opportunity. Then I'm going to walk you through the last 5 years of history to give you the confidence of what we've executed in the past and why you feel confident that we can execute in the future. Then I'm going to share with you the metrics right upfront for the next 27 -- for 2027. And I would hope that after you hear the metrics, you are interested in listening to how we get there. Okay. Joyce, everybody has talked today about our ambition to be the leading solutions integrator. We've also talked about what that means. It is the combination of hardware, software, combined with services to create integrated solutions for our clients that drive preferred business outcomes for them. And we do this quickly and efficiently, and we have the ability to also do it at scale. Part of what enables us to do this and why the decision to be vast solutions integrator is because we have 3 elements. We have the product element, we have the supply chain element and we also have the technical capability in all the areas of IT today that are the fastest growing. The elements of IT that are growing in the double digits. The overall market is growing at 6%, but data, cloud, AI, machine learning, all the digital aspects are growing at an even faster pace. And that is an important criteria for us in terms of how we determine the strategy as we move forward. Okay. One of the other things we're going to deliver over the next 5 years, that makes us a good investment opportunity, I think, is gross margin and gross profit acceleration. So when you look at our business, and I will walk you through it, you will see that Insight core services, GP and cloud GP are going to be the fastest-growing elements of the business and over the next 5 years, that will drive gross margin expansion associated with that, partly related to the portfolio optimization, the sales transformation that we've talked about. More details to come on those as well as the pricing optimization project that Dee mentioned. All of those things together drive gross margin expansion and combined with the automation that we've talked about, the process improvement, the streamlining that's going to drive EBITDA margin expansion and allow us to scale our business more effectively as we move forward without having to add as many resources as we scale because we have an engine that we can actually push this growth through. As important as those 2 elements is the cash generation capability of our business. So over the last couple of years, our cash flow has been a little bit erratic. It's based primarily on the hardware growth that we've experienced. That triggers negative working capital for us. When hardware is growing in the 25-plus range, it is -- uses a lot of cash. A lot of our working capital is tied up in that. When hardware grows more normally in the mid-single-digit range, as is forecast for the next several years, we have -- we generate cash. You will see the start of this cash flow generation in Q3. Q3, we will generate cash flow from operations, whereas for the prior 2 quarters, they have been negative. This is not an update on guidance. It's just a fact to be clear. We told you that was what was going to happen when we told you about the second quarter results. So with all of that, we spent off a lot of cash. We are very efficient in how we handle our debt. And we actually have a 300 million share authorization, share repurchase authorization as of right now, and we will execute that over the next 5 years with a significant portion of that in the next open window, which would be November. All of that together should give you, I would say, many reasons why at the price that we're at today were a great investment as you move forward. Now I'm going to talk you through just so that you understand that this team has delivered in the past and will deliver in the future. I'm going to walk you through the last 5 years. But you don't care about that. So I'm going to be really quick, okay? There are only 2 things that matter. You have this for your history, and it will be on the website. What matters here is that gross profit grew $650 million, a CAGR of 11%, but gross margin expanded 130 basis points. Now 130 basis points is good, but it would have been even more had we not had the really high hardware growth that we've had in the last 5 quarters. So when you think about that, and I tell you about the future, what I would say is that in the future, we would have more gross margin expansion that won't be experienced in the last 5 years, given the forecast for a more normalized hardware growth environment. Through our disciplined operating execution, the other thing is that EBITDA margin expanded by 90 basis points and it grew to 4.4%, another benchmark you should keep in mind when I talk to you about the future. All of that led to an EPS CAGR of 19%. To be fair, it's a combination of M&A, PCM is included in there. It's not totally organic growth. It's a combination of M&A. It's a combination of some share buybacks, less than what we're going to be doing going forward as well as the execution that we have driven. And as of 06/30/2022, trailing 12 months EPS, adjusted EPS was $8.49, and that would have been ahead of the models we had back in 2019 when we shared some metrics with you. I'm going to move on from there because what matters now is the next 5 years. These are the KPIs that I normally would give you at the end. Don't worry, I'm going to show them to you again at the end. But for now, I want you to look at these KPIs, I'm going to walk you through them and then I want you to actually listen to how it is we get there. So first of all, EBITDA margin. I told you we ended 6/30/2022, 4.4%. We anticipate that we're going to be in the range of 6.5% to 7% and that 6.5% to 7%, you could think of us being closer to 7%, but it's a range. ROIC in the absence of acquisitions, there's no M&A included here. ROIC is going to be greater than 25%. And it's going to be greater than 25% because of our execution, the growth that we're going to be driving around gross profit dollars, EBITDA growth as well as the cash that this business is going to be spinning off starting in 2025. Key drivers of growth as we move forward, core insight core services growth is going to be in the high teens, cloud services, cloud growth, also in the high teens EPS CAGR approaching 20%. And as we think about free cash flow, which we're defining as net cash flow from operations, minus capital expenditures required to support the business growth. That's going to be a conversion greater than 90% as we move forward. I will just make one comment. In these metrics that we're sharing with you, we have made an assumption that 2023 is a little bit muted. The growth is lower in 2023 than it is in the other years given the current economic environment that we're looking at right now. Still growth, just lower. So as we think about how we get there, the -- this is how I think about it. As we put this plan together over the last several months. There are drivers of growth, many of which I've talked about already, and they're what I call enablers to that growth, many of which our leaders have all talked about today. So the drivers, inside core services GP growth, cloud growth and the product and pricing optimization that we've talked about. The enablers we've all talked about as well. And it's a sales transformation, the portfolio optimization and automation and process improvements that we're going to be talking about. Joyce also talked about these. So I'm going to move on and start with the growth drivers. When you look at our results in the future, core services GP growth and cloud GP growth are going to generate about 60% of our total growth as we move forward, GP growth, not revenue. That is an important statistic, number one, because cloud is almost 100% gross margin and our services, Insight core services gross margin are in the high 20s going to the 30% range. Those are going to be 2 key drivers of expansion. Services gross margin expansion is also going to be helped by the portfolio strategy, more to come on that. It's also going to be helped by the pricing strategy. More to come on that, but it is a key driver of what -- of how we will incent the sales force, compensate the sales force and actually streamline the portfolio to the more profitable elements of our -- of the services offering that we have more profitable, partly because they're more valuable to our clients, and we can command a premium for those. I kind of lump cloud and services together. They do grow at minute differences in rate. In the last 5 years, we grew services at 14%, core services GP, always think of that when I say services. We grew it at 14%. That's going to be growing in the high teens going forward. Cloud grew at 28%. And I'm just going to address that upfront because it's not growing at 28% going forward. It's going to grow in the high teens as well. Part of that is just related to the fact that cloud is now a larger percentage of the overall IT portfolio when it was smaller 5, 7 years ago, it grew at a very fast pace, 50-plus percent, then it declined to the 30% range, 25% range. Now it is in the teens. We've overperformed the cloud over the last 5 years. We plan to overperform going forward, but the absolute rate of cloud growth in the industry today is lower than it used to be. Okay. On the product side, I don't even look at this way. On the product side, we've -- Joyce talked about how important product is and product is the base that we're leveraging our product base, the clients that we have in our product base. Phil mentioned it when he talked about the opportunities in Australia, our product base and our clients in that product base have the ability to actually help us drive more services growth. We can sell into that portfolio. Now some of your thinking, they've said this before. What's different this time is that we're not expecting every client to be a solutions client. We actually have a targeted approach with regard to which clients we think can benefit where our capabilities match up well with those clients and that we can actually help them optimize their journey to a more cloud-enabled and digital environment. As Joyce said, the clients in the corporate space can benefit from the full suite of offerings that we have from soup to nuts, from products front end all the way through to a digital enablement on the back end. We can do that for some selected enterprise clients. We can do that for public sector clients and we can do that in a different way for commercial clients, not as much opportunity there because of the size of the dollars. That's the only reason. But we have enough capability to service different elements of our client portfolio and not be constrained in any way. We also, under James, his favorite person at Insight is Joyce apparently, not me. Under James, we have a pricing initiative that I'm going to hold even more accountable for going forward with regard to what incremental profitability we need to deliver as we streamline the portfolio and as we sell our product business, with maybe more guardrails in place in terms of how a salesperson comprise the deal desk that his team is setting up with regard to how we evaluate deals to make a determination about which deals should we actually prioritize ahead of others, which clients should we maybe consider just incentive for discretion for -- could be extended payment terms, something like that. It's just going to be a more focused approach to the evaluation of deals that impact us on a go-forward basis. I'm not going to tell you what gross margin grows to because the metric you're going to be using on a go-forward basis is going to be cloud GP growth, core services GP growth and EBITDA margin expansion are going to be the critical metrics that will enable you to determine whether we're hitting our objectives or not. When you look at this graphic, it's presented here so you can see on an illustrative purpose, please do not attempt to interpolate what each bar means. That is not what is purpose. But this illustrates why it is that you can see that cloud GP and Insight core services GP are the drivers of this plan. So I'm going to turn around and look at it for one second. You have cloud GP, the second bar -- sorry, maybe the third bar in, core services and partner GP. And then you see that bar around services optimization. That is around -- that is the expectation that we have from the work streams managed by the transformation office that will drive the portfolio optimization strategy, the client value creation strategy as we move forward. And there's also a product piece associated with that with a different work stream as to how we're going to drive and effect this transformation and get at these dollars on a go-forward basis. I'm going to move on now to the enablers, sales transformation, portfolio optimization and automation and process improvement. It's an interesting thing when you put a presentation together and you look at it 50 times. And then in the middle of somebody else's presentation on the day you're giving your presentation, you think to yourself, I probably should have done portfolio optimization first, as Dee did. But I didn't do that. So I'm going to do it in my way. So sales transformation. This is actually a pretty critical initiative. Dee probably put its second because he wasn't here at the start. I was here. The reality is that we started our journey in 2021 when you think about changing sales and transforming how the organization sells, how they are compensated, how they're going to be supported, how are you going to train them. It's a major initiative and a major task. So we started with a pilot in 2021, a very small pilot. We started -- we expanded that pilot in 2022. And the pilots were around solution-based salespeople who are capable of selling a broader range of our solutions, how to support them and how to compensate them and structure their books to drive the results that we wanted? What were the results we wanted? We wanted higher services, solutions, sales and gross profit margin coming from that population. And we wanted overall higher gross margin in that population. We're actually now going to be rolling this out to our field sales organization in 2023 because we have demonstrated feedback now, knowledge, results that we've actually hit those 2 objectives. So we're going to be rolling it out to the broader sales force and more to come on that. Dee and James, as part of the overall management team lead the charge on that. So what else are we going to do? I think I'm finished with sales transformation. I'm going to move along to portfolio optimization and Dee is right. This is actually the glue. It's the mesh that you have to think about. I think about it in terms of the fabric. It's the underlying fabric that knits everything together. So what you have to realize is -- we have to streamline the portfolio of offerings that we have. When you have a broad offering portfolio, you have to have people on the bench sitting available to actually implement that broad portfolio. When you streamline your portfolio, you have the ability to be more efficient and get high utilization across the bench that you have. You may need to hire in different people for the bench. But you have the ability to actually drive greater efficiency, greater efficiency, greater utilization of the bench translates to higher gross margin. So for the same dollar of profit, the same dollar of revenue that we sell as we're more efficient in our offerings and reduce the, I hesitate to say, excess, but increase the utilization of the bench that we have, that results in greater gross profit and margin flowing through to the bottom line. One of the things that Stan talked about on the showcase was HashiCorp. One of the values that we do bring to the table and he said it really well. I can't do it better than he did, is these emerging partners that we partner with early in the game that we identify early, we partner with -- so as they grow, we actually help them grow, and we grow with them. And there's a certain level of loyalty that exists between these emerging partners that we've actually truly helped drive to a differentiated place. And I think he's now a billionaire. The CTO and co-founder of HashiCorp just in the side. But at the end of the day, what is it that we're driving. We're driving to increased gross margin through a more targeted and focused portfolio. We're incenting the team, the sales team to sell that more targeted and focused portfolio. And we're actually also -- if I look at my notes, using nearshore best shore capability to drive to an operating structure that enables us to deliver these solutions, specifically maybe our managed services on a more cost-effective basis going forward. And all of this is around leveraging the tools that we have at our disposal in order to drive these changes. I'm going to move on now to automation and process reengineering, which is really more around the back office. We have -- Insight has always done a really great job on the front end. We're actually upgrading part of our front end now with the Rob Green e-commerce initiative that Joyce mentioned in terms of having a more seamless streamlined, efficient way for clients to purchase online but a big part of the automation and the process reengineering for us is going to be around the back office. It's going to be around sales operations. it's going to be around the finance team. We do a lot of stuff manually today. To the extent that we're scaling our business around services and solutions going forward. We need more automation in the business. We've started the journey. And every once in a while, people get concerned about systems implementations. I'll just say upfront. We have migrated all of our regions, all of our countries to an SAP platform, and none of you would ever have known that, that occurred because we did it seamlessly, effectively and efficiently and that's how it should be. You should never know that we're doing any of this stuff in the background. But I want you to understand why is it that we will be generating incremental EBITDA growth and margin expansion through using and leveraging these tools? But I don't want you to be concerned because we'll handle it in the background, and you should see it in the EBITDA results as we move forward. I'm going to share a video with you just because you never have a video in the finance section. This is a video. It's ACCA. It's a British client, it's a British corporate client. I have to stay very close to this. It's a British corporate client, and it's the association of certified chartered accountants. My mother was a certified chartered accountant. Hence why I chose this with you. [Presentation]

For me, what's important here and what we're applying to our business today at Insight is leveraging this technology that we've provided to our clients and using it internally, that nimble agile platform that Tony talked about in terms of driving the change that he made. We're actually using that internally to automate, make changes in a more nimble and agile way and get to an effective execution that will help us as we move forward. And it's a staged growth from here. I just looked at Suma back there, and I realized I didn't say one thing. Suma is our CIO. We've had RPA technology at Insight for several years. And we've used it to automate several simple functions, [indiscernible] share activities that our teammates were doing. But now we're actually leveraging intelligent automation where we're combining the RPA with AI, with machine learning, with channel vision with fuzzy logic. These are real things. These are what they're called. And the combination of that allows the bots our RPA technology to be even more effective and apply it across a broader, more complicated scope of duties, freeing up even more teammate time with regard to doing more targeted work, more value-added work. The sum of all of this, some of the drivers that I've discussed the enablers that I've talked about, the detail that you've heard across this team from Joyce to Dee to Stan about what we're driving, all of that is driven to create higher solution sales and expanded EBITDA margin. So it's going to be expanded margins in sales. We're not expanding margins in the cloud because those are already at 100% but higher growth in the cloud continuing that. It's going to be sales compensation tied to gross margin and other strategic priorities that we're trying to drive. It's going to be better analytical support internally to help us make better decisions, and it's going to be the process optimization and automation that we also talked about. All of this is designed. This is 1 slide that summarizes it all. And what it would show you is core services driven by portfolio optimization, sales transformation, shorter -- better -- best shore talent, I call it, Matt called it something else. But it's best shore talent in terms of driving us to a lower operating cost structure as we deliver services to our clients. and its value pricing on our product business. We deliver huge value to a large portion of our customer population through products pricing, whether it's hardware or software. And what we're seeing on a go-forward basis is that we will continue to serve these clients, and we will essentially affect better pricing for us in terms of the value we deliver to them as well as integrate more solutions into their portfolio and expand our share of wallet with those clients. SG&A as a percentage of GP is going to decline significantly. I don't want you walking away thinking we're not investing in the business. We are continuing to invest in the business. And I will show you shortly that 40% of the growth that occurs in SG&A is actually related to investments that we will be making in the business. So we're not shortchanging the business with regard to SG&A that we acquire, but automation helps a lot in terms of how we can drive more scale and efficiency on the base that we have. All of this leads you to EBITDA, CAGR, high teens, and it leads you to EPS, CAGR approaching 20%. 5-year CAGRs all around. Please, this is illustrative only. It's just showing you the elements that we -- you can track. We will share these going forward with regard to cloud services on a go-forward basis. I'm not going to talk through the elements of the GP anymore. I've done that already. But as you look at the SG&A, the red bars on the far right, the big bar is kind of the base and just variable pay. It's the sales commissions based on growth in GP. It's the bonus, all the other variable elements of our compensation structure or of our operating structure. Kind of the core run the business as you see forward, flexing with the growth that we will have. And then what you see is that bar representing the dollars that we're going to be investing on a go-forward basis. don't iterate to find out what they exactly are. It's just illustrative so you can get a sense of the relative contribution of the various elements. I'm going to briefly run through debt. We have 2 primary debt instruments that convert and on ABL. ABL is $1.8 billion. It has -- we -- it expires in July of 2027. And and our -- we borrow at a spread of 125 to 150 basis points above the underlying instrument. Convert $350 million. It expires in February of 2025. And it has a coupon interest rate of 75 basis points. Cash flow, we've talked about a little bit, but it's important. Today, we are operating in a negative cash flow scenario. Cash flow from operations is negative through Q2. I've told you that it's going to be positive in Q3. It's going to be positive again in Q4. We likely will end 2020 at a slight negative cash flow. We expect in 2023 that our cash flow will normalize. And over the course of the 5-year period, this business generates significant cash. Capital allocation priorities. There are 2 critical pieces I will mention. We have capital allocation related to investments in the business, and we have capital allocations associated with returning capital to our shareholders. The third piece is debt, but debt is not as significant in this -- over this 5-year period, absent M&A. We best first organically to grow the business. You saw a part of that in the SGA graphic that I showed you. We invest organically to grow the business, and we also invest to grow M&A through growth -- through M&A. And over the course of the next 5 years, we will probably have about $3 billion plus available for M&A through a combination of the ABL that we have as well as the cash generation in the business. And realistically, as the business grows, the ABL would also grow, but this is based on a $1.8 billion ABL. It's not an insignificant amount. And you should think about that as available to fund M&A in the future, there is no M&A in the numbers I shared with you about the 2027 KPIs. And we have a $300 million share authorization that we will execute over the next 5 years, a chunk of it upfront in terms of returning capital to our shareholders. 2027 KPIs. I'm flashing this site up there because I'm running out of time. I need to give you time to ask questions. I'm flashing this up there. It hasn't changed. I walked you through this the first time. I will spend a little bit of time here. I actually believe that at Insight, we have the right assets. We have the talent that we need to execute on this plan, and that talent is both the technical talent as well as our management talent and really the talent of all the 12,500 teammates that Joyce mentioned, who actually have helped us to be successful today and will help us be successful in the future by virtue of the strong culture of execution that we have. We also have a strategy to be the leading solutions integrator, leveraging the capability we have in products, combining it with services and creating integrated solutions that solve business outcomes for our clients. I said it before. I'm seeing it again. I think that gross profit growth and services and cloud-specific gross profit growth is the best way to measure this business. You will notice I have not mentioned revenue. With the netting that occurs in our business and the continued growth of cloud, gross profit growth, is the best way to measure our performance, and it's the metrics that we're going to be using to measure attainment on a go-forward basis. The automation piece and the leverage that we will have and build in our SG&A will also lead to gross margin -- sorry, EBITDA margin growth and EBITDA margin expansion. And I think that 6.5% to 7% EBITDA margin represents 210 to 250 basis points improvement over where we're at as of 6/30/22. I talked about the cash generation capability of this business. It is not insignificant. It matters. It actually is the way our business operates in a normalized hardware environment, which is projected for the next several years or so. Our services business does not use as much cash as our hardware business. And on a go-forward basis, we have a lot of capacity to support M&A. Our philosophy around M&A has not changed. Joyce briefly walked you through that. We will continue to be consistent in terms of revaluation and how we move forward. I would just like to leave you with one thing. At the end of this session with me as well as my colleagues, Joyce, Dee, Stan, you should feel very comfortable with the strategy that we've laid out. It's a hard one being valuating solutions integrator. It's a hard one. It's not something that's normal that we come forward and talk to you about but it is a differentiator that we believe that we have that will make a difference as we move forward. And this is a team that can execute against that strategy. it really leverages all the strengths that we have, have had for a long time, have created through M&A and built through M&A than expanded organically, and that is what will get us to our results in 2027. And personally, I would hope to multiple expansion. With that, I'm going to say thank you very much I'm going to ask you to give us a few minutes. We'll bring up the chairs for the panel. Joyce will be our moderator for the Q&A. And James will be walking around potentially getting questions. For those of you on the website, you can submit questions through the chat function, and we'll attempt to get them answered. Thank you very much. I appreciate it. We've run a little long today. Hopefully, it was worth your while. We're going to go into Q&A, and it's 20 minutes, till 12:10, if there are a lot of questions, we'll figure it out. And then there will be box of lunches for everybody.

[Operator Instructions]

[Operator Instructions] Matt?

Matt Sheerin with Stifel. I have a couple of questions. One on the sales transformation. As you roll that out, does that include moving or resigning accounts or any other changes that could present near-term hiccups to sales or loss sales opportunities? How are you managing through that? .

Yes. So I'll just start by saying it is -- as Glynis has mentioned, we have been doing various pilots for a long period of time. So we've been pretty careful on our implementation. But why don't I let Dee talk about that.

So we've done the first phase of that. the sales transformation has already implemented actually now 2 phases, and we'll be doing more. Most of the account reassignments that end up getting done, are done around less productive accounts the situations that are going well and are productive, we usually stabilize that and use that kind of as a starting point. So it really is the opportunity accounts to get moved around.

Okay. Great. And on the -- basically, the strategy to expand the services attach rate. Can you give us an idea of how many customers mean corporate to enterprise customers actually utilize Insight for services in addition to hardware? And what that number may look like over the next few years? .

We actually don't have those numbers yet that we're ready to share. We are looking at that very carefully as we go through our segmentation. And what we're doing right now is making sure that we're aligning our solution sellers to the clients where we have -- we know, have the propensity to buy our solutions. And so that's how we're limiting the accounts that they're focused on. We don't have numbers specific to that today.

Okay. And my last question, just regarding the price optimization. I think you're talking a lot about -- on the solutions side. We haven't heard a lot about your hardware business, which obviously, not going to grow as much, but certainly, it's more than 70% of your revenue, a big chunk of your gross profit. How are you managing that in terms of the portfolio and pricing as you go forward?

Our pricing optimization project is actually initially focused on products. Do you want to talk about that Glynis or James?