Hi everybody, I'm Nicola Tangan, the CEO of the Norwegian sovereign wealth fund, and today I'm in particularly good company because I'm with Arvin Krishna in New York, and Arvin is the chairman and CEO of IBM, one of the most iconic technology companies in the world.

Arvin has been with IBM for over 35 years and became the CEO in 2020 and have since orchestrated one

the most striking turnarounds in big tech. When he took over, IBM had been declining

for years and today is growing faster than it's done for a long time. So, Arvin, a warm welcome.

Thank you, Nikola. It's always good to talk to you.

Absolutely.

Now, a lot of people still think that IBM is a kind of company from another era, and you have changed that.

So today, what does IBM do?

IBM is largely a hybrid cloud and AI software company.

We have made the transition to that's almost half our total revenue.

We have another third that is in consulting, and we try to help our clients transform

for the current era of digital and AI.

And then we have about 20% that is hardware.

I realize many people think that we are largely a hardware company, but that is just a fifth

of the company.

A very important piece, but a very small piece.

When you took over as a CEO, the IBM had been declining for some time.

What was your diagnosis? I always like to sit back and think, what are your strengths and

what are your weaknesses? So as I talk to our own team and as I talk to clients, it comes out

that we were trusted, but we were considered to be part of the past, not necessarily the future.

So my diagnosis was you have to do things that are relevant for people's future. They're not always the biggest

revenue in a month or in three months or in one year, but they become the big revenue over the

...