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00:00Let's start things off with what does Red Hat and cloud computing bring to the party in the Asia-Pacific. And where are we in that transformation as we move towards the cloud gradually . Everywhere so I think his clients really begin to make great use of their data as they begin to transition their I.T. capabilities from a sort of an on premise environment to the cloud. Most companies appear to be in the early stages of that less than 20 percent of their work being done in the cloud. And now as they begin this kind of next big phase it appears that there are also the three things that clients tell us are important. The first is they have a very hybrid environment many different cloud providers as they took some bone on that on the cloud native apps as they experimented . There are many cloud providers. It is hybrid. Secondly clients tell us they want open. They don't want lock in. They don't want locked down. They want to have an open environment . And then thirdly that the experience of transitioning the difficult complex heavy duty workloads that all airports that all banks that all institutions have that in many many cases IBM is supporting that together they can make the next big step. So working together with Red Hat provides this hybrid this open and this experience that clients are looking for. So to me adoption in the areas of the world that you cover which is Asia Pacific excluding China and Japan here. Are there any key barriers to overcome to boost study you mentioned open architecture. For one thing yeah I think one of the challenges across the region is around the source of this entire transformational period which is the data all of this amazing data being created and then how is that data respected. Stewart did trusted and many governments many companies as they look at both the free flow of data India for example that has a very large part of its GDP around free flow of data from around the world whilst ensuring the security and the protection of that data. So the whole transparency and data issue is a very great relevance across all of the Asia Pac countries with different takes on how they achieve that free flow. And that security and here and I know you don't cover China specifically but I wanted to ask you about the privacy issues particularly when it comes to this growing trade war and the controversy around some these U.S. 10 tech companies getting work their reports were saying earlier that IBM was one of the companies involved in this hack that the U.S. invited some Chinese military officers in. Has the hack changed the way that you do business in any way in this part of the world. Also in China so IBM has been working with clients in this region all over the world to secure their systems their data and we will continue to do that. And there is no evidence to suggest that any breach as discussed here has taken place. And so we'll continue to prepare boards and businesses for cyber resiliency practical steps. What happens when there is a breach. You know we have been working in this area for over five decades. And so we'll continue to adapt to using A.I. using block chain looking at how quantum can ensure the security and the safety and the sanctity of that critical enterprise and government data let's just also just look at another aspect of your business which is changing in this part of the world. This is one point eight billion dollar buyout of IBM assets. That's the reports anyway on this. This is to sell software assets to HCA. How does that change the game for you. How did that change to the company which used to be called Big Blue Oh I think this is you know IBM I think has over the course of its hundred and eight years looked at capabilities that we have look at IP that we have look at products that we have and look to partner with companies great companies like HCA all so that we can focus on the investments in new tech or artificial intelligence block chain security quantum so that we can stay focused. And you saw last quarter for the first time half of all revenues were driven from those new capabilities where we have spent over 40 billion in the last five years ensuring that we can equip companies across Asia Pac and the world to have the capabilities that they need to take advantage of this data and this explosive changes in technology. So this is not a new thing. This is something we've been doing as we refresh and invest in skills in people and in technology. Right. When you talk about a I guess you think about view I think about China but what about for where you are in Singapore and the rest of the Southeast Asia region. You have to deal with a lot of jurisdictions. Harriet How do Asian countries differ in how they view A.I. as well as privacy. Because it could be very disruptive and at times some people say quite controversial as well . Yeah I think the the issue as I mentioned earlier about good tech and how you treat data certainly during 2018 that became the issue of this region which companies were really respecting supporting having transparency and ensuring that we they I for example that the decisions that are made the output from the algorithms can be described to any consumer or any member of the company that know unconscious bias was being built in both our capabilities our consulting expertise ensuring that this critical use of data in an old mentored intelligence sense is secure is entirely without bias and that has been a huge issue throughout 2018. How does ultimately a company which is trying to spend on the social good and so many different spheres of ESG as it's called I suppose. How does that benefit your bottom line ultimately . So I think there's there are two very important elements businesses that can transition from era to era particularly tech companies need to have the skills and a workforce that can bring hundred 150 percent of themselves to work. So it enables transitioning. It enables us to have the workforce that our clients need to help them transition. And it's an imperative that we land on the right side of good tech OK. Is said that I mean if you look at that diversity is part of it. And this whole notion of new collar jobs as opposed to white collar or blue collar jobs here is all based on not what your educational qualifications are but what you can achieve . But education qualifications surely do point ultimately to some of these basic skill set as well. Do they not on that level of learning absolutely and so what we do with the new collar and the 111 PE tech schools we have around the world and a large number in Asia Pac is take young people who've got a propensity to learn these tech school skills and then through on the job training great mentoring can start working practically in these critical areas to help companies to fill the skills gap yet most are still kind of acknowledging or at least recognizing that A.I. perhaps has a disruptive impact when it comes to jobs . Do you see it that way. How do you see automation and these kind of innovative ways and technology here changes that dynamics at least of the labor market yeah we we see already that augmented intelligence you know humans and machine working together will have an effect on pretty much all jobs but by equipping people with the right skills by creating new products and new services we're evolving the type of work to a new place so rather than the reason IBM called it augmented intelligence was that it wasn't replacing old work it was the coming together on new work of man and machine that's it isn't it. I be a ise informing you as to how society is changing as well from the games kids are playing and what even then young teenagers and older teenagers are playing to does it not. So how did you actually become more nimble as a result Well it's certainly here in Asia Pac. Well over a half of our workforce is in the traditional category of millennial between 22 and 38. And so agile working how we create environments that are exciting and meaningful for them is very much a part of what IBM already does particularly in this region. And then we use augmented intelligence ourselves as a company in all aspects of our transformation Harriet one final question here. I noticed that the IBM board which you're on is more than just under half of it is female women. And the thing is it's the evidence to show that diversity quite often means that you get companies which have faster faster growth etc. etc. But it's strange as well because on the big board on the Dow you guys have actually got the cheapest valuation here. How do the two sit together Well I think you have to look over periods of time. IBM is one of the very few companies in the world let alone in tech that is transition through many eras. And you can look back at whether it was mainframes and software and services. And if you look at the trajectory and the investment and the positioning of the business as we have transformed to meet the needs of clients across the world then those vital skills that inclusive board is so key to us .

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IBM's Asia-Pacific CEO on Red Hat, Cloud Computing, Privacy, AI

Harriet Green, Asia-Pacific chief executive officer and chairman at IBM, discusses what Red Hat brings to cloud computing, the barriers she sees to adoption in the region, privacy concerns, selling software to HCL Technologies, artificial intelligence and their focus on diversity and inclusion. She speaks exclusively on "Bloomberg Markets: Asia." (Source: Bloomberg)

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