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HP2-K30 Technical Introduction to the HP Storage(R) SMB

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HP2-K30 exam Dumps Source : Technical Introduction to the HP Storage(R) SMB

Test Code : HP2-K30
Test appellation : Technical Introduction to the HP Storage(R) SMB
Vendor appellation : HP
exam questions : 49 true Questions

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HP Technical Introduction to the

creation Inkjet—The subsequent Wave: HP high Definition Nozzle structure | true Questions and Pass4sure dumps

Commentary & analysis

As expected, but soundless unique to look, an additional next Wave construction inkjet print know-how has been brought. This one is from HP, and it continues to demonstrate that they haven’t been sitting idle within the time considering they eventual took a trustworthy study their construction inkjet offerings.

with the aid of David ZwangPublished: February 9, 2015

As expected, however nonetheless unique to peer, an extra next Wave creation inkjet print technology has been introduced. This one is from HP, and it continues to exhibit that they haven’t been sitting idle within the time considering the fact that they ultimate took a fine Look at their production inkjet choices. for the understanding that that remaining article, they fill introduced many new, and box upgradable, updates to their complete Inkjet web Press product line. From the introduction of their first T-series press, HP has endured to foster and boost its product lineup, apart from assuring their shoppers that the click they bought became designed to be territory upgradable in an application to protect their investments. This unusual introduction of high Definition Nozzle architecture follows in that identical passage of life.

With the introduction and installing of the first HP T300 press at O’Neil statistics programs on December 24 2008, HP’s customers fill now produced over 90 billion pages, with 36 billion of these in 2014 at a current rush cost of very nearly four billion pages per 30 days. HP’s tenure available in the market and extensive portfolio has offered a cumulative page potential with the installed machines of about 160 billion pages per 12 months. That contains about fifty seven% of the entire inkjet booklet pages printed world-extensive. And while there are about 23 trillion e-book pages printed globally with offset, HDNA should extend HP and their customers’ means to seize extra of that total. And the unusual know-how HP has simply disclosed will extend the exhaust of HP production inkjet presses into many unusual software areas that fill higher quality requirements.

during the past, HP upgrades concentrated on raises in velocity and productivity for every of their base structures. while this help besides addresses productivity, greater importantly it addresses image best with the introduction of a unusual print head know-how.

HP imaging and the unusual know-how

The huge advice for HP and its unusual and latest customer base is a gargantuan help in their print head expertise. the brand unusual HDNA (excessive Definition Nozzle architecture) print head highlights the subsequent era of HP’s long-standing expertise in thermal inkjet. The HDNA print heads provide an striking density of 2400 nozzles per inch, per color on solitary colour print head. each and every print head incorporates 21,one hundred twenty nozzles which are divided between 2 separate chambers with each and every chamber imparting the ink to 10,560 nozzles. These heads can be used for two colors, or a solitary color with even more nozzle redundancy. full of this is packaged into the identical print head backend meeting to permit the current machines in the box to be upgraded.

despite the fact, even more exciting is that the nozzles fill been architected in keeping with a unusual dual drop know-how. The nozzles are divided privilege into a high drop weight nozzle and a lessen drop weight nozzle, which is really a tiny low drop weight (LDW) nozzle positioned in between the excessive drop weight (HDW) nozzles. This entertaining unusual head configuration brings with it aid for 5 degrees of gray per pixel, affording superior colour addressability during the color gamut while using the identical HP A50 technique inks currently in exhaust today. according to Ross Allen, Sr. Technical expert with HP’s IHPS (Inkjet high-speed construction options), “with the unusual HDNA print heads, they print with 1200 nozzles/inch each and every for LDW and HDW nozzles throughout the web in exceptional Mode, and 600 dpi down the internet.  The arrays of LDW and HDW nozzles are a bit of staggered on account that they are interleaved.  In construction mode at 800 fpm, most efficient the HDW nozzles are used.”

if you are intimate with inkjet printing, you recognize that getting smoothness in tone gradations throughout the gamut, chiefly in blends, fleshtones, and in lighter shades with out getting that grainy issue may besides be accomplished with two applied sciences: with the aid of including a capability to print smaller drops or by using including effortless colorings to the mix, ie; light Cyan, light Magenta, gentle Black, and so forth., moreover the general CMYK. both thoughts produce decrease-distinction dots that appear much less grainy in opposition t the white historical past than full-density, significant CMYK dots. What HP has done is occupy the minuscule drop / colossal drop strategy using the balanced four process colors. From the samples I even fill seen, the blends and fleshtones are notable and equal to or more advantageous than the output of alternative creation inkjet presses I even fill viewed.

The illustration under is an HP offered seize of one of the precise printed samples I received. which you could perceive an enlarged constituent of a B&W photograph photo highlighting the tone potential of the dual drop know-how. The packet of samples showed more than a few significant merits of this unusual technology.

This edge besides carries over to full color print as seen by passage of the simulated comparison of their existing print head output (on the left side of the realistic below) against the unusual HDNA output. on account of the twin drop expertise it is able to suppress tone breaks (banding). HDNA’s skill to print more hues at once gives accelerated colour decision inside the gamut to deliver more desirable spotlight and shadow detail, in full probability tangled to peer here, however evident within the samples I reviewed.

moreover this unusual print head structure allows for for a surge in productivity. On the HP T400 platform this translates into 400 fpm in first-rate mode and 800 fpm in black and color in efficiency mode, a 33% extend over today’s 600 fpm print capacity.

We doubtless shouldn’t be too surprised by this innovation. considering that the introduction of HP Scalable Printing technology in 2006, HP has developed unusual print head generations using gauge design rules, substances, and manufacturing tactics in line with built-in circuit fabrication. This has allowed them to lengthen the modularity of the design throughout full of their inkjet products, leveraging R&D efforts across distinctive product traces. they're additionally probably the most handiest construction printer producers which fill vertically built-in in-condo R&D over the core expertise of the press design and manufacturing, together with print heads, ink, dryers, media, utility and firmware, print servers, image processing, and different solution improvements.

on the core of HP’s imaging procedure is a thermofluidic procedure, where “nothing strikes however the ink itself.” in the print heads, a tiny heater vaporizes a thin movie of ink. A vapor bubble fills the chamber enjoy a piston to coerce ink through a nozzle. Air bubbles are besides forced out on each drop ejection cycle for legitimate operation. And now, with HDNA, HP areas 2400 nozzles per column inch. The design contains a fault tolerance gadget that compensates for any erroneous nozzles with discrete nozzles printing within the same dot-row down the net. The presses exhaust HP developed and manufactured water-primarily based pigment inks. HP has additionally has a MICR choice, with a particularly designed HP print head and ink.

some of the more essential examples is the HP superior picture Pipeline Processing that was introduced on their T-collection presses early on. This modular electronic structure is scalable to distinctive press widths, speeds, and mono/color capabilities and permits information to be processed into print head drop commands to steer the clicking speeds. The HDNA print heads would require an supersede to the superior photo Pipeline Processing, which would consist of unusual print bars, wiring, and unusual controller as a portion of the help equipment.

in the T-sequence construction presses, HP makes exhaust of water-based inks, which fill very low VOC emissions, are non-flammable and non-combustible, and without a hazardous air pollutants. considering water is an essential component of the ink, it does create the capabilities for other issues. full inks, even the inks utilized in offset printing, deserve to ‘bond’ to the substrate to create a fine adhesion. If the bonding didn’t ensue, the ink would simply rub off. considering water-based inks can and will absorb into many non-handled substrates, HP has used an not obligatory ‘Bonding Agent’ inline to pretreat uncoated and lined ordinary offset papers at each pixel where the pigment ink will print. HP has additionally introduced an optional HP Priming Agent for lined media to expand the purchasable substrates that can besides be run. in contrast to Bonding Agent, which gets applied through inkjet heads within the press, the priming agent is a flood coat applied by means of a roller in a separate coater.

youngsters, with the aim to back the transforming into construction inkjet market, paper producers are carrying on with to produce an increasingly wide selection of inkjet suitable papers. at the instant there are more than a hundred and twenty ColorPRO papers. These papers carryout not require using a bonding or priming agent, and basically can produce more suitable reproductions as neatly. while it might fluctuate depending on insurance, using a bonding and priming agents can additionally understanding reduce costs than purchasing pretreated substrates.

Transport update

As an supersede to the ultimate article, HP’s current lineup begins with the T200 family unit, with a 20.5-inch printable width T200, which prints at up to four hundred fpm (ft/minute) in monochrome and 200 fpm in full colour, and the T230 is an optional upgrade to print up to four hundred fpm in full color. They each assist paper widths from eight to 22 inches with a printable frame length from 11 to 72 inches. In 2014, HP besides brought the T260 Mono Inkjet net Press with a 24.88” print width and 26” paper route, which prints as much as 800 fpm in monochrome.

within the midrange, HP offers the T300 family, which has a 29.1-inch print width on as much as a 30-inch extensive net. The sequence comprises the T300 which prints as much as 400 fpm in full color, the T350 which prints up to 600 fpm in full colour, and the T360 which prints at 600 fpm in full colour and 800 fpm in monochrome.

at the desirable of their industrial print line is the T400 family unit which has a printable width of 41.75 inches on an internet width of as much as 42 inches. This family contains the T400, which prints full color at as much as either 400 or 600 fpm based the version chosen. on the most efficient is the T410, that may print full color at up to 600 fpm and monochrome at 800 fpm.

recently they additionally brought a high velocity Inkjet Corrugated Packaging answer. one of the most first of its form, here is a simplex version of the T400 press, printing at up to 600 fpm that helps printing on papers that should be laminated onto a corrugated base.

All of HP’s construction inkjet presses can print 100% variable statistics content at full press velocity. The T200 family helps media weights from 60-215 gsm, while the others assist 60-350 gsm.

front conclusion

The entrance finish riding these presses is the HP SmartStream construction Elite Print Server. in view that HP is additionally a server company, the gadget is in accordance with its personal hardware architecture. at the heart is a world pictures Harlequin RIP, that could assist lots of the regular PDF/X codecs, PDF/VT, and AFP/IPDS with a 3rd-birthday celebration solution. The capacity to manage the click, in addition to any incoming static or variable jobs at computer rated speeds requires a really powerful and scalable computing equipment.

based upon which press you opt for in addition to your workflow tiers and job requirements from mono textual content to full-colour photographs, the digital entrance conclusion may besides be configured (and upgraded) to meet essentially the most stressful necessities with the means to install the variety of servers in accordance with the customer’s job classification – from basic industry jobs to brief-run publishing to complicated variable statistics printing functions.


HP should be proverb their first beta website later this yr for an HDNA press. They are expecting the brand unusual presses to be obtainable in 2016, with implementations of the other households and enhancements availability following shut in the back of. full up to now released models, except the T260, which was designed for monochrome printing, are field-upgradable. HP believes their T-series presses should fill a production actuality in excess of 10 years.

With the introduction of HDNA expertise, HP has addressed many of the considerations of these seeking to migrate from offset or toner. From a quality standpoint, this gives much more vibrant colorings with a far better optical density. It besides produces a entire lot smoother halftones and blends, some thing that present T collection shoppers had been clamoring for.

these days HP introduced that Quad/images has over 20 HP color Inkjet web Presses in their 3-year transformational plan, with the first five presses to be installed in 2015. you may only await that this unusual HDNA expertise performed a component of their decision.

It seems enjoy the pace of recent subsequent Wave creation Inkjet press introductions is deciding on up. in fact, I await that there may be more introductions across the Hunkeler Innovation Days adventure later this month. live tuned for extra enjoyable bulletins…

Multi Jet Fusion 3D Printing know-how Continues to transform HP and customers | true Questions and Pass4sure dumps

When HP unveiled its Multi Jet Fusion expertise in 2016, it was instantly pellucid that this become a expertise that was going to in fact seriously change the trade. at the time, 3D printing became soundless generally a prototyping technology, however HP announced its aim to change that by means of providing a means of 3D printing conclusion-use polymer ingredients on a big scale. How promptly issues alternate – just two years later, the Wohlers document 2018 states that the creation of practical ingredients, including purposeful prototyping, is now the industry’s main additive manufacturing exhaust case and that the require for construction-grade parts is expected to grow exponentially.

although other producers fill launched 3D printers able to developing practical parts, HP is in a true market leadership place, shipping extra plastic production 3D printers than any other company on the earth. Multi Jet Fusion know-how has gone in two years from being a brand unusual introduction to being absolutely built-in full over the trade, with more than three million MJF components produced final yr on my own.

nowadays on the Additive Manufacturing clients neighborhood (AMUG) convention, HP showcased probably the most valued clientele that fill been imposing MJF on a big scale, as well as its personal Reinventing HP with Multi Jet Fusion application. if you chance to’ve developed a technology that alterations manufacturing, you may additionally as neatly exhaust it yourself in addition to distributing it international, and HP is proverb its aim to beget exhaust of MJF to radically change the design, production and distribution of its personal items.

“Our mission is to trade the style the district designs and manufacturers with 3D printing. we're seeing an extend in excessive-quantity 3D creation because the trade hurries up its event towards a digital future,” talked about Stephen Nigro, President of 3D Printing, HP Inc. “valued clientele are leaning in, riding superior economics, and lengthening creation of commercial-grade constituents – in the closing yr by myself greater than three million elements fill been produced on Multi Jet Fusion and greater than 50% are for conclusion use. As some of the greatest manufacturers on earth, HP is additionally leveraging their own technology to transform their product structure lifecycle to back decrease charges, pace time to market, raise customer satisfaction, and extend sustainability throughout their enterprise.”

Multi Jet Fusion technology can be used no longer simply to produce HP products, but to provide itself – more than 50% of the custom plastic elements interior the Jet Fusion 4200, and over 140 parts in the unusual Jet Fusion 300/500 sequence, can besides be 3D printed with MJF expertise. in line with HP, here is believed to be the largest number of 3D printed ingredients inside any product on earth. The redesign and 3D printing of those ingredients presents bigger performance in areas equivalent to increased air movement, lightweighting, and optimization for space constraints, in addition to lessen fees and multiplied manufacturing flexibility as it reduces tooling and assembly time and fees.

when it comes to different products, a key a portion of HP’s colossal layout Printers turned into redesigned to utilize topological optimization and is getting into mass creation with a ninety three% weight reduction, 50% can imbue discount and a 95x carbon footprint reduction versus the customary aluminum machined part. MJF parts fill additionally been included in the HP covet ISS, the 2d printer designed to exchange the present printers on the overseas house Station. HP expedited the construction of its HP 3D excessive Reusability Glass Beads fabric to supply eleven parts for the covet ISS, together with a exceptionally designed output tray to fullfil NASA requirements.

using MJF technology has reduced design time by as much as 50% and saved tens of millions of dollars in deferred tooling fees for several HP materials akin to air ducts within the Jet Fusion 4200 and 300/500 series, as tangled multi-element ingredients had been changed with a solitary half. A device used within the manufacture of HP’s print heads turned into redesigned for MJF to extend water tightness and in the reduction of turbulence movement. unusual materials utilization and half consolidation besides resulted in reduction of lead times from months to days, 90% discount in weight, 95% discount in can charge, and greater than 30 times reduction in carbon footprint. Plastic elements for the unusual HP Z digital camera fill been besides produced with MJF, resulting in massive cost discounts and shortening the lead time via more than six weeks.

“HP offers well-nigh a hundred million products yearly through a sophisticated community of HP factories, customary design producers, and logistics providers throughout more than 170 nations,” notable Stuart Pann, Chief deliver Chain Officer, HP Inc. “This enjoyable software brings together product design, engineering, procurement, give chain operations, and manufacturing to unleash the talents of Multi Jet Fusion. Embracing the design liberty of 3D printing, HP is making breakthroughs in cost, productiveness, nice, and efficiency as they digitally reinvent their product lifecycle and provide chain.”

HP’s purchasers are increasing their exhaust of MJF technology, as neatly, putting restate orders and upgrading their deployments to meet better order volumes and grow their groups. Forecast 3D, one of the most largest and oldest privately held 3D manufacturers in the US, is upgrading its fleet of 12 HP 3D printers to the greater these days brought HP Jet Fusion 3D 4210 printers to fullfil rising demand. The company expects to supply more than a million MJF ingredients in the coming 12 months for a number one customer within the scientific sector, simply as one instance.

GoProto, which has more than 500 valued clientele across multiple industries, has deliver in six HP 4200 3D printers to fulfill expanding client require for prime-extent prototyping and production functions.

“whether we’re making one portion at the genesis of the design cycle or doing a 5,000 portion production build, Multi Jet Fusion continues to amaze us with its energy, precision and reliability,” Jesse Lea, President of GoProto, instructed “This additive expertise truly is the bridge to on-demand manufacturing that we’ve been looking ahead to.”

Stern, a conventional manufacturer in the clinical and automotive sector, is the exhaust of MJF expertise for its unusual 3D printing service bureau, Stern 3D. The industry is installation 10 HP Jet Fusion 4200 3D printers in its construction facility near Stuttgart, Germany.

“we are future proofing their industry with the effective, digital capabilities of HP’s Multi Jet Fusion know-how,” Lothar Stern, CEO of Stern 3D, advised us. “We appear to be ahead to showcasing for their customers the eternal probabilities that 3D printing presents. For these in any trade seeking to movement past the restrained capabilities of common manufacturing their unusual facility, anchored by using the gargantuan potential of 10 HP Jet Fusion 3D 4200 programs, will permit advanced creation applications at step forward speeds and reduce costs.”

AMUG is taking district from April 8-12 in St. Louis, Missouri. HP’s sales space should be at Demo Suite D5, and on April 10 at 11 AM, Michelle Bockman, world Head of 3D Printing industry expansion and development, might be presenting “behind the Scenes: using Their personal Digital Transformation,” in Ballroom A.

discuss this and other 3D printing matter matters at or participate your strategies beneath. 

[Images: HP]

HP Celebrates cargo of 200 Millionth HP LaserJet Printer | true Questions and Pass4sure dumps

business Launches "200 Million and Counting" client Contest Commemorating big Milestone

PALO ALTO, CA--(Marketwired - Nov 12, 2013) - HP (NYSE: HPQ) today announced the shipment of its 200 millionth HP LaserJet printer, an unheard of milestone made feasible by using essentially 30 years of HP LaserJet innovation.

To rejoice this achievement, the industry has created a set of restrained-version, commemorative HP LaserJet printers that could be on parade at HP consumer event centers international -- together with Barcelona, Spain; Beijing; Mexico metropolis; and Palo Alto, Calif.

HP besides is launching the "200 Million and Counting" consumer sweepstakes. The sweepstakes invites valued clientele to add testimonials to and participate how HP LaserJet first-rate, innovation and excellence fill helped their groups succeed.

"With the introduction of the first LaserJet in 1984, HP began a printing revolution that basically modified the style that businesses engage with content," referred to Pradeep Jotwani, senior vp, LaserJet and commercial enterprise solutions, HP. "The shipment of their 200 millionth LaserJet demonstrates how we've got persisted that innovation, and they are removed from completed. they are able to proceed to back their purchasers flip challenges into opportunities to alternate the style that companies digitize, manage and eat content material."

HP's rich legacy of company printing innovation comprises:

  • 1984: HP makes historical past with the HP LaserJet printer, the realm's first desktop laser printer
  • 1991: HP Jetadmin simplifies remote management of printers on a corporate network; HP introduces the HP LaserJet IIISi, the business's first community laser printer
  • 1994: HP colour LaserJet, the trade's first color laser printer, brings colour to industry documents
  • 1998: HP LaserJet 3100 becomes the primary mass-market laser all-in-one (AiO) machine
  • 2002: HP colour LaserJet 4600 is the first laser printer to print colour files on the quicken of black
  • 2004: HP LaserJet M4345 multifunction printer (MFP) raises the bar with the aid of bringing print, reproduction, digital ship and advanced paper handling into the workplace -- in a solitary easy-to-use workgroup MFP
  • 2008: HP colour LaserJet CP1510 makes exquisite technology reasonably-priced for minuscule corporations as HP's first colour laser printer costing lower than $300
  • 2010: HP LaserJet P1102 is termed probably the most energy-efficient laser printer on earth with the aid of power well-known person; HP introduces industry's first cellular print retort with HP ePrint
  • 2012: HP LaserJet industry stream MFPs and HP movement content management (CM) application assist agencies integrate paper and digital workflows for multiplied productiveness
  • 2013: HP LaserJet enterprise 800 sequence and HP 1200w mobile Print accent beget cellular printing as handy as touching a smartphone or pill to the printer; including the launch of the unusual equipment, HP has delivered more than 15 LaserJet devices in less than two years
  • a long background of key HP LaserJet innovations is accessible as an infographic.

    HP LaserJet valued clientele participate their reviews The "200 Million and Counting" sweepstakes encourages HP purchasers to unite in the comeby together by asking them to participate own reviews, pictures and movies on what HP LaserJet innovation skill for their business. each and every photo and video it truly is uploaded might be protected on a digital wall at

    The sweepstakes runs through Dec. 24, 2013, and is open to prison residents of the 50 u.s. and the District of Columbia, in addition to Russia, France, the U.okay., Germany and China. members are invited to submit their digital photos and reviews, to be able to serve as their sweepstakes entry, at, where comprehensive merchandising rules are besides purchasable.(1) Winners from each and every global vicinity will win a 200 millionth constrained-edition HP LaserJet MFP, territory to complete sweepstakes rules.

    additional info about HP's imaging and printing offerings is attainable

    Multimedia property additional 200 millionth LaserJet multimedia content material is purchasable at:

    About HP HP creates unusual probabilities for know-how to fill a significant affect on americans, groups, governments and society. With the broadest technology portfolio spanning printing, personal systems, utility, capabilities and IT infrastructure, HP grants options for clients' most complicated challenges in each region of the area. greater recommendation about HP is attainable at

    (1) All submissions are territory to such guidelines.

    © 2013 Hewlett-Packard construction business, L.P. The suggestions contained herein is discipline to alternate with out observe. The handiest warranties for HP items and capabilities are set forth in the specific assurance statements accompanying such items and functions. Nothing herein should soundless be construed as constituting an extra warranty. HP shall no longer be answerable for technical or editorial blunders or omissions contained herein.

    HP2-K30 Technical Introduction to the HP Storage(R) SMB

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    HP2-K30 exam Dumps Source : Technical Introduction to the HP Storage(R) SMB

    Test Code : HP2-K30
    Test appellation : Technical Introduction to the HP Storage(R) SMB
    Vendor appellation : HP
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    Technical Introduction to the HP Storage(R) SMB

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    Why the Future of Data Storage is (Still) Magnetic Tape | true questions and Pass4sure dumps

    Editor’s Picks

    Three Advances beget Magnetic Tape More Than a Memory

    Exabytes in a Test Tube: The Case for DNA Data Storage

    The Lost Picture Show: Hollywood Archivists Can’t Outpace Obsolescence


    Photo: Victor Prado

    It should foster as no surprise that recent advances in big-data analytics and artificial intelligence fill created stout incentives for enterprises to amass information about every measurable aspect of their businesses. And monetary regulations now require organizations to sustain records for much longer periods than they had to in the past. So companies and institutions of full stripes are holding onto more and more.

    Studies exhibit [PDF] that the amount of data being recorded is increasing at 30 to 40 percent per year. At the same time, the capacity of modern difficult drives, which are used to store most of this, is increasing at less than half that rate. Fortunately, much of this information doesn’t requisite to be accessed instantly. And for such things, magnetic tape is the perfect solution.

    Seriously? Tape? The very thought may evoke images of reels rotating fitfully next to a bulky mainframe in an former movie enjoy Desk Set or Dr. Strangelove. So, a quick reality check: Tape has never gone away!

    Indeed, much of the world’s data is soundless kept on tape, including data for basic science, such as particle physics and radio astronomy, human legacy and national archives, major motion pictures, banking, insurance, oil exploration, and more. There is even a cadre of people (including me, trained in materials science, engineering, or physics) whose job it is to sustain improving tape storage.

    Tape has been around for a long while, yes, but the technology hasn’t been frozen in time. Quite the contrary. enjoy the difficult disk and the transistor, magnetic tape has advanced enormously over the decades.

    The first commercial digital-tape storage system, IBM’s Model 726, could store about 1.1 megabytes on one reel of tape. Today, a modern tape cartridge can hold 15 terabytes. And a solitary robotic tape library can accommodate up to 278 petabytes of data. Storing that much data on compact discs would require more than 397 million of them, which if stacked would shape a tower more than 476 kilometers high.

    It’s righteous that tape doesn’t tender the rapidly access speeds of difficult disks or semiconductor memories. Still, the medium’s advantages are many. To start with, tape storage is more energy efficient: Once full the data has been recorded, a tape cartridge simply sits quietly in a slot in a robotic library and doesn’t consume any power at all. Tape is besides exceedingly reliable, with oversight rates that are four to five orders of magnitude lower than those of difficult drives. And tape is very secure, with built-in, on-the-fly encryption and additional security provided by the nature of the medium itself. After all, if a cartridge isn’t mounted in a drive, the data cannot be accessed or modified. This “air gap” is particularly attractive in light of the growing rate of data theft through cyberattacks.

    The offline nature of tape besides provides an additional line of defense against buggy software. For example, in 2011, a flaw in a software update caused Google to accidentally delete the saved email messages in about 40,000 Gmail accounts. That loss occurred despite there being several copies of the data stored on difficult drives across multiple data centers. Fortunately, the data was besides recorded on tape, and Google could eventually restore full the lost data from that backup.

    The 2011 Gmail incident was one of the first disclosures that a cloud-service provider was using tape for its operations. More recently, Microsoft let it be known that its Azure Archive Storage uses IBM tape storage equipment.

    <b>1951:</b> Magnetic tape first used to record data on a computer (Univac).1/12

    1951: Magnetic tape first used to record data on a computer (Univac). Photo: Bettmann/Getty Images

    <b>1952:</b> Introduction of commercial computer tape storage (IBM 726).2/12

    1952: Introduction of commercial computer tape storage (IBM 726). Photo: IBM

    <b>1964:</b> Introduction of 9-track tape storage.3/12

    1964: Introduction of 9-track tape storage. Photo: IBM

    <b>1968:</b> Introduction of the self-threading drive (IBM 2420).4/12

    1968: Introduction of the self-threading drive (IBM 2420). Photo: IBM

    <b>1974:</b> First automated (robotic) tape library (IBM 3850).5/12

    1974: First automated (robotic) tape library (IBM 3850). Photo: IBM

    <b>1974:</b> First automated (robotic) tape library (IBM 3850).6/12

    1974: First automated (robotic) tape library (IBM 3850). Photo: IBM

    <b>1984:</b> Introduction of thin-film head technology (IBM 3480) and of the 4-by-5-inch cartridge.7/12

    1984: Introduction of thin-film head technology (IBM 3480) and of the 4-by-5-inch cartridge. Photo: IBM

    <b>2009:</b> IBM introduces the Linear Tape File System.10/12

    2009: IBM introduces the Linear Tape File System. Photo: IBM

    <b>2009:</b> IBM introduces the Linear Tape File System.11/12

    2009: IBM introduces the Linear Tape File System. Image: Hewlett Packard Enterprise/IBM/Quantum

    <b>2017:</b> Release of the latest generation of LTO (LTO-8).12/12

    2017: Release of the latest generation of LTO (LTO-8). Photo: IBM

    All these pluses notwithstanding, the main understanding why companies exhaust tape is usually simple economics. Tape storage costs one-sixth the amount you’d fill to pay to sustain the same amount of data on disks, which is why you find tape systems almost anyplace where massive amounts of data are being stored. But because tape has now disappeared completely from consumer-level products, most people are unaware of its existence, let alone of the tremendous advances that tape recording technology has made in recent years and will continue to beget for the foreseeable future.

    All this is to mumble that tape has been with us for decades and will be here for decades to come. How can I be so sure? Read on.

    Tape has survived for as long as it has for one fundamental reason: It’s cheap. And it’s getting cheaper full the time. But will that always be the case?

    You might await that if the capacity to cram ever more data onto magnetic disks is diminishing, so too must this be righteous for tape, which uses the same basic technology but is even older. The surprising reality is that for tape, this scaling up in capacity is showing no signs of slowing. Indeed, it should continue for many more years at its historical rate of about 33 percent per year, import that you can await a doubling in capacity roughly every two to three years. mediate of it as a Moore’s Law for magnetic tape.

    That’s august advice for anyone who has to deal with the explosion in data on a storage budget that remains flat. To understand why tape soundless has so much potential relative to difficult drives, account the passage tape and difficult drives evolved.

    Both reliance on the same basic physical mechanisms to store digital data. They carryout so in the shape of narrow tracks in a thin film of magnetic material in which the magnetism switches between two states of polarity. The information is encoded as a sequence of bits, represented by the presence or absence of a magnetic-polarity transition at specific points along a track. Since the introduction of tape and difficult drives in the 1950s, the manufacturers of both fill been driven by the mantra “denser, faster, cheaper.” As a result, the cost of both, in terms of dollars per gigabyte of capacity, has fallen by many orders of magnitude.

    These cost reductions are the result of exponential increases in the density of information that can be recorded on each square millimeter of the magnetic substrate. That areal density is the product of the recording density along the data tracks and the density of those tracks in the perpendicular direction.

    Early on, the areal densities of tapes and difficult drives were similar. But the much greater market size and revenue from the sale of difficult drives provided funding for a much larger R&D effort, which enabled their makers to scale up more aggressively. As a result, the current areal density of high-capacity difficult drives is about 100 times that of the most recent tape drives.

    Nevertheless, because they fill a much larger surface district available for recording, state-of-the-art tape systems provide a autochthonous cartridge capacity of up to 15 TB—greater than the highest-capacity difficult drives on the market. That’s righteous even though both kinds of equipment occupy up about the same amount of space.


    Photo: Victor Prado Inside and Out: A modern Linear Tape-Open (LTO) tape cartridge consists of a solitary reel. After the cartridge is inserted, the tape is fed automatically to a reel built into the drive mechanism.

    With the exception of capacity, the performance characteristics of tape and difficult drives are, of course, very different. The long length of the tape held in a cartridge—normally hundreds of meters—results in medium data-access times of 50 to 60 seconds compared with just 5 to 10 milliseconds for difficult drives. But the rate at which data can be written to tape is, surprisingly enough, more than twice the rate of writing to disk.

    Over the past few years, the areal density scaling of data on difficult disks has slowed from its historical medium of around 40 percent a year to between 10 and 15 percent. The understanding has to carryout with some fundamental physics: To record more data in a given area, you requisite to allot a smaller region to each bit. That in revolve reduces the signal you can comeby when you read it. And if you reduce the signal too much, it gets lost in the racket that arises from the granular nature of the magnetic grains coating the disk.

    It’s feasible to reduce that background racket by making those grains smaller. But it’s difficult to shrink the magnetic grains beyond a inescapable size without compromising their capacity to maintain a magnetic state in a stable way. The smallest size that’s practical to exhaust for magnetic recording is known in this industry as the superparamagnetic limit. And disk manufacturers fill reached it.

    Until recently, this slowdown was not obvious to consumers, because disk-drive manufacturers were able to compensate by adding more heads and platters to each unit, enabling a higher capacity in the same size package. But now both the available space and the cost of adding more heads and platters are limiting the gains that drive manufacturers can make, and the plateau is starting to become apparent.

    There are a few technologies under evolution that could enable hard-drive scaling beyond today’s superparamagnetic limit. These include heat-assisted magnetic recording (HAMR) and microwave-assisted magnetic recording (MAMR), techniques that enable the exhaust of smaller grains and hence allow smaller regions of the disk to be magnetized. But these approaches add cost and interpolate vexing engineering challenges. And even if they are successful, the scaling they provide is, according to manufacturers, likely to remain limited. Western Digital Corp., for example, which recently announced that it will probably start shipping MAMR difficult drives in 2019, expects that this technology will enable areal density scaling of only about 15 percent per year.

    In contrast, tape storage equipment currently operates at areal densities that are well below the superparamagnetic limit. So tape’s Moore’s Law can depart on for a decade or more without running into such roadblocks from fundamental physics.

    Still, tape is a tricky technology. Its removable nature, the exhaust of a thin polymer substrate rather than a rigid disk, and the simultaneous recording of up to 32 tracks in parallel create significant hurdles for designers. That’s why my research team at the IBM Research–Zurich lab has been working difficult to find ways to enable the continued scaling of tape, either by adapting hard-drive technologies or by inventing completely unusual approaches.

    In 2015, they and their collaborators at FujiFilm Corp. showed that by using ultrasmall barium ferrite particles oriented perpendicular to the tape, it’s feasible to record data at more than 12 times the density achievable with today’s commercial technology. And more recently, in collaboration with Sony Storage Media Solutions, they demonstrated the possibility of recording data at an areal density that is about 20 times the current device for state-of-the-art tape drives. To deliver this in perspective, if this technology were to be commercialized, a movie studio, which now might requisite a dozen tape cartridges to archive full the digital components of a big-budget feature, would be able to proper full of them on a solitary tape.

    /image/MzExNjU3MA.jpegIBM 726Photos: David Parker/Science Source; right: IBM

    A Data Deluge: Modern tape libraries can hold hundreds of petabytes, whereas the IBM 726 [right], introduced in 1952, could store just a brace of megabytes.     

    To enable this degree of scaling, they had to beget a bunch of technical advances. For one, they improved the capacity of the read and write heads to follow the slender tracks on the tape, which were just 100 or so nanometers wide in their latest demo.

    We besides had to reduce the width of the data reader—a magnetoresistive sensor used to read back the recorded data tracks—from its current micro­meter size to less than 50 nm. As a result, the signal they could pick up with such a tiny reader got very noisy. They compensated by increasing the signal-to-noise ratio inherent to the media, which is a office of the size and orientation of the magnetic particles as well as their composition and the smoothness and slickness of the tape surface. To back further, they improved the signal processing and error-correction schemes their equipment employed.

    To ensure that their unusual prototype media can retain recorded data for decades, they changed the nature of the magnetic particles in the recording layer, making them more stable. But that change made it harder to record the data in the first place, to the extent that a balanced tape transducer could not reliably write to the unusual media. So they used a special write head that produces magnetic fields much stronger than a conventional head could provide.

    Combining these technologies, they were able to read and write data in their laboratory system at a linear density of 818,000 bits per inch. (For historical reasons, tape engineers around the world measure data density in inches.) In combination with the 246,200 tracks per inch that the unusual technology can handle, their prototype unit achieved an areal density of 201 gigabits per square inch. Assuming that one cartridge can hold 1,140 meters of tape—a reasonable assumption, based on the reduced thickness of the unusual tape media they used—this areal density corresponds to a cartridge capacity of a whopping 330 TB. That means that a solitary tape cartridge could record as much data as a wheelbarrow full of difficult drives.

    In 2015, the Information Storage Industry Consortium, an organization that includes HP Enterprise, IBM, Oracle, and Quantum, along with a slew of academic research groups, released what it called the “International Magnetic Tape Storage Roadmap.” That forecast predicted that the areal density of tape storage would attain 91 Gb per square inch by 2025. Extrapolating the trend suggests that it will surpass 200 Gb per square inch by 2028.

    The authors of that road map each had an interest in the future of tape storage. But you needn’t worry that they were being too optimistic. The laboratory experiments that my colleagues and I fill recently carried out demonstrate that 200 Gb per square inch is perfectly possible. So the feasibility of keeping tape on the growth path it’s had for at least another decade is, to my mind, well assured.

    Indeed, tape may be one of the eventual information technologies to follow a Moore’s Law–like scaling, maintaining that for the next decade, if not beyond. And that vein in revolve will only extend the cost edge of tape over difficult drives and other storage technologies. So even though you may rarely perceive it outside of a black-and-white movie, magnetic tape, former as it is, will be here for years to come.

    This article appears in the September 2018 print issue as “Tape Storage Mounts a Comeback.”

    Mark Lantz is manager of the Advanced Tape Technologies at IBM Research Zurich.

    2016 BMW S1000XR First Ride Review | true questions and Pass4sure dumps

    Bart Madson | October 17, 2015

    There’s no mystery surrounding what bike BMW targeted with its all-new S1000XR. An Adventure model sporting a Superbike-derived engine, top-shelf suspension and braking components, full of which are enhanced by cutting-edge electronics. It full sounds very Ducati Multistrada-ish, doesn’t it?

    And while it might be terribly cross shape to drone on about another manufacturer’s bike while reviewing its exciting unusual competitor, the Multistrada demands mention for its repercussion on the large-displacement Adventure segment. The redesigned 2010 Multistrada completely upended performance expectations with its 160-horsepower Twin and sporting chassis. The Ducati could comeby foul too, if it really had to, but the Italian ADV bike was so much more sportbike than adventure-tourer that it wasn’t really a righteous Adventure bike at all. Instead it carved out a sub-niche of its own.

    BMW bills the S1000XR as an “Adventure Sport” – the best descriptor I’ve heard for this not-quite-true-ADV segment – and it takes deceased train at the Multistrada.

    BMW's S1000XR mates sportbike performance to Adventure ergonomics.

    The XR sources the 999cc Inline Four BMW originally developed for its celebrated S1000RR superbike. Specifically the XR utilizes the engine spec powering its streetfighter sibling, the S1000R, which trades the RR’s top-end peak power for a more robust bottom- and mid-range. That means the R/XR engine gives up the RR’s face-melting 200 horsepower claims for a mere 160 ponies. So, more enjoy face-blistering power. (The S1000R turned the MotoUSA dyno to 150 rear-wheel hp and 76.8 lb-ft torque.)

    A sophisticated electronics package harnesses the XR’s engine power, as well as integrates actions from the traction control, braking and suspension. The various electronic systems and the manner in which they weave together is confusing to clarify (or at least it is to me!), so my apologies for the technical weeds I’m about to drag you through, but here goes. The base model XR ($16,350) comes with two Ride Mode settings: Rain and Road. The gauge XR besides includes BMW’s intimate ASC (Automatic Stability Control) system and semi-integral ABS. Rain mode softens power delivery and mellows throttle response, with the ABS and ASC setup for quick intervention on humid roads. The Road setting delivers the XR’s gauge 160-hp dosage of power, with the traction/braking aids calibrated for parch roads.

    Things comeby interesting, and more complicated, with the Ride Modes Pro option. Offered as a stand-alone $450 upgrade or included in the $2400 Premium Package, Ride Modes Pro adds Dynamic and Dynamic Pro to the Ride Mode setting options. Ride Modes Pro besides replaces ASC with the more advanced DTC (Dynamic Traction Control) and likewise upgrades the standard-issue ABS to ABS Pro – with the XR being the first BMW, besides the HP4, to tender ABS Pro as a factory option (though it is now offered on other 2016 models and as a retrofit on previous select models, enjoy the RR).

    The Dynamic Ride Modes tender the same 160 horsepower as the baseline Road setting, but uncork the throttle for more immediate responsiveness. The bigger differences in the Dynamic Ride Modes are intervention settings for DTC and ABS; with Dynamic permitting limited rear-wheel spin and slight front wheel lift, while Dynamic Pro has a higher tolerance for wheel spin and doesn’t suppress wheelies at all. (The DTC/ASC and ABS can besides be manually disengaged in any Ride Mode setting.) The Dynamic Ride Modes besides enable the Dynamic setting for the Optional Dynamic-ESA… but let’s deliver that suspension discussion later.

    Confused yet? Well, let me muddy things further. My test bike at the XR press introduction, held in Muskoka Lakes, Ontario, featured the Ride Modes Pro upgrade, however, the Dynamic Pro setting wasn’t enabled (it requires a special plugin, similar to Enduro Pro Mode on the R1200GS/A). My XR press bike was besides fresh out of the crate. And when I spell fresh, I spell 11-miles-on-the-odometer fresh. As such, the rev limit was restricted from its habitual 11,000 redline to somewhere around 9K. And speaking of mud… Their day aboard the XR included intermittent showers, with road surfaces damp and drying, at best, but often they were glistening with freshly-fallen rain. The handful of dirt sections on their 150-mile route were humid as well.

    The BMW S1000XR can venture out into Fire Service roads, where it's a capable handler, though staid
 ADV riding will be better served by the GS/A.

    The adverse weather and redline restrictions spoiled full engine performance evaluations. However, conditions were ideal for demonstrating the profit of Rain mode. The relatively mellow throttle was so pleasing that I didn’t venture much out of its safety net on the nasty humid stuff. However, when I did switch into Road Ride Mode everything was drama free thanks to the DTC and ABS Pro systems.

    The XR proved itself a beast even with its claws retracted. Ample torque churns out across the powerband. The Beemer can crawl along at low rpm no problem, with a potent mid-range getting things touching fast, so there isn’t much requisite to sustain it revving high. In fact, when you carryout spool it up, which I did on the rare open and (semi)dry patches of road, the XR goes into full-bore – what was that term? Ah, yes – face-blistering mode. The only fault I can find with engine performance was a persistent vibration at around 4000-5000 rpm. But the buzz wasn’t overly irritating and quite effortless to pardon when a twist of the grip yields immediate, visceral acceleration. The conditions of the road and bike inhibited my experience, but I’d reckon the XR a more than a worthy match for the Multistrada in terms of engine performance.

    A six-speed transmission package is highlighted by the Gear Shift Assist Pro, yet another option included in the Premium spec ($475 as stand-alone accessory). Featured on other BMW models, including the R1200RS we’d ride the following day, the shift assist delivers quickshifter upshifts as well as clutch-less downshifts. The XR’s shift assist stood out to me as much smoother in operation than those I’ve sampled on the RS and R1200RT models.

    The XR’s chassis follows the lead of its S1000R sibling, with some essential deviations. A revised steering head angle and longer swingarm stretches the wheelbase to 61 inches, 4.3 inches more than the R model. The aluminum frame’s rear segment has besides been strengthened, to back increased load capacity and fulfill the XR’s touring pretentions. The R and XR suspensions participate similar hardware (46mm inverted fork and rear shock), but the XR adds 1.2 inches of travel to the front (5.9 inches) and 0.8 inches to the rear (5.5 inches).

    The S1000XR is a sporty handler, with the ABS Pro and Dynamic ESA enhancing road performance.

    BMW besides offers an optional Dynamic ESA (Electronic Suspension Adjustment) for the S1000XR. The D-ESA system modulates suspension damping based off inputs from sensors measuring acceleration, deceleration and banking angle, with electrically-actuated control valves automatically adjusting the damping rate in real-time. There are two D-ESA settings, Road and Dynamic. Road is the default ESA setting for the Rain and Road Ride Modes, while Dynamic is the default for Dynamic and Dynamic Pro. But riders can override either setting at the push of a button, so you can fill Dynamic ESA in Road Ride Mode, or vice versa. Or is it versa vice? Dynamic!

    If you are scrunching your brow in confusion at full this, then you know what my mug looked enjoy inside my helmet as I tried to beget sense of it full through a rain-splattered visor. Here’s full you requisite to know, the fancy electronic crap works. And it works really well too!

    At first I tip-toed through corners because the roads were so damned slick looking. Plus those Canadian winters beat up the rustic roads pretty well and require frequent patching, so surface quality fluctuated as well. But the XR skimmed across everything without care. I notable a stiffening of the suspension when switching to Dynamic for sportier riding, although, again, the weather conditions didn’t cater to crazy balls-to-the-wall riding. The D-ESA suspension does its thing, imperceptibly smoothing and stabilizing. I can’t find fault.

    But of full the electronic doohickeys festooning the XR, I was most impressed by the ABS Pro. The ABS moniker is a misnomer of sorts, because when I mediate of ABS it’s in the “oh, $h%T, I gots to stop!” context, where you panic brake and the ABS keeps you from losing traction by obvious interventions that manifest in noticeable pulses at the lever/pedal. No, no, no… This ABS Pro is more enjoy enhanced performance braking. The most noticeable demonstration of the ABS Pro’s edge is during corner braking, where the bike doesn’t stand up when applying the front brake. Instead the ABS Pro system makes minute modulations to the front brake calipers so that the bike holds its lean angle.

    As with the XR’s other electronic aids, I was tentative to the test ABS Pro on the soaked road surfaces, but once I did it surprised me with its effectiveness. acute corner approaching on a humid road, tip it in, lean it over and squeeze the brakes. The bike slows but doesn’t trip from its line. I know that sounds wrong, but that’s what happens. It’s remarkable.

    And speaking of corners, the XR is quick to tip in and change direction. It claims a 502-pound curb weight, and, if anything, feels even lighter on its toes. It’s a neutral handling bike with an upright riding position and a tall, wide handlebar that provides trustworthy leverage. Is it on par with the Multistrada? It’s definitely comparable and I only wish I’d ridden the bike the day after, when the weather was perfect… Still, I was impressed.

    The BMW S1000XR performed better than expected off-road, and they spent most of their day on humid

    I was besides surprised by its handling off-road. Again, the weather limited their testing options, and they actually skipped one of the planned dirt routes, but they soundless took a brace easy, graded gravel and dirt roads. I’m no expert off-road, but the XR garnered immediate reliance as I futzed with the various settings. Purring along I rapped the throttle and could hear the XR breaking loose, but the sequel was barely noticeable at the controls. I twisted the grip again and wiggled the back end, with Little controlled fishtails. The ABS works quite well off-road too. enjoy the GS, the XR’s electronics give you just enough rope not to hang yourself, thus covering my off-road ineptitude… I mean, making me Look trustworthy without trying. Spoon on some tires with any off-road chops and this XR could carryout some staid work. But, then again, that’s what the GS/Adventure is for.

    The truly august thing about the performance and handling of the XR is that it goes about its raucous industry in a snug manner for the rider. And that’s the crux of why bikes enjoy the Multistrada and, presumably, the XR are growing so popular. They are effectively sportbikes with an upright riding position and relaxed, ADV ergonomics. In fact, the XR ergos are even more relaxing than the RS I rode the day after, or even similar relaxed sportbike options enjoy the Ninja 1000/GSX-S1000F models. The contrast maker, for me, is the relatively tall saddle (33.1 inches), which offers greater leg room. Combined with the high handlebar, the XR is perfectly matched to long-legged, tall riders, with even more legroom available via an optional 33.7-inch seat (conversely the XR can be dropped by a 32.3-inch low seat option and further reduced by lowered D-ESA setting to 31.1 inches). The ergos lend themselves to easily standing on the pegs too, a fanciful passage to reduce fatigue on long-distance rides.

    Which begs the question: how would the XR fare as a touring platform? I’d mumble a pretty impressive one. The half-fairing and the two-position, hand-adjustable screen carryout a decent job with wind protection. The XR I tested sported discreet, yet efficient handguards, with solace enhanced by the optional heated grips. The only drawback to its touring potential is range. They coaxed it back to Muskoka Lakes with 160 miles on the trip meter, but the reserve light went on at 140 miles, which is destitute for a touring rig. Plus those aforementioned engine vibrations would surely comeby more irritating as the day’s miles dragged on. That being said, the XR’s ergonomics alone beget it a tantalizing sport-touring offering – to mumble nothing about its sporty performance, which will beget most purpose built sport-tourers, enjoy it’s R1200RT cousin, appear enjoy heavy, cumbersome louts by comparison.

    As far as looks go, my first print of the XR’s styling wasn’t gobsmacked awe, more enjoy “eh… it’s growing on me” acceptance. Something about the curvy beaked front district of the bike disagrees with the Little imp on my shoulder who determines my aesthetic tastes. I prefer the blockier Look of BMW’s GSA or the stately lines of the R1200RS (the latter of which I tested the following day). I must admit I’m more partial to the XR’s red colorway, where it reminded me an Awful lot of the Ducati Multistr… Yeesh, I know, enough already, they comeby it.

    Anyway, in Red or White, the XR’s MSRP requires more explanation than most bikes, as it follows BMW’s protocol of offering several different spec packages straight from the factory, including base ($16,350), gauge ($17,295) and Premium ($18,750) – the latter package combining Dynamic and Touring packages which can be pieced out separately, I think. The dealer can probably clarify the MSRP to you better, as well as the rust-proofing, transport charge, storage surcharge and additional overcharge. Actually, those eventual ones are jokes (lifted from the inimitable David Puddy), although I mediate there really is a $495 transport charge. Money!

    BMW S1000XR Highs & Lows
  • Visceral performance from BMW’s Inline Four
  • ABS Pro enhances braking performance
  • Dynamic suspension works as advertised
  • Mid-range engine vibrations prove tedious
  • Styling not as sexy as some competitors
  • Poor weather and engine break-in limited righteous high-performance testing
  • BMW’s decision to occupy on the Multistrada, and other street-biased Adventure Sports (like the Versys and V-Strom 1000s), with a purpose-built model has two benefits. First, it can be an actual competitor with the Ducati’s bar-raising road performance. Second, it lets the R1200GS remain the GS – an ADV gauge bearer that soundless represents BMW’s most celebrated and prolific model to date. As for fears that the XR will cleave into GS sales, BMW reps were confident the contrary would be true. They foresee the XR as a conquest model that attracts an all-new, younger customer to the German marque, thus following the pattern of its other Inline Four-powered offerings, most notably the S1000RR.

    The S1000XR is an exciting unusual offering from BMW. The S1000RR Superbike has helped transform the marque from its stodgy, pipes-and-slippers trope to a more robust, high-performance bike brand, and the S1000XR builds on this momentum. This BMW is a sportbike first and foremost – albeit a sportbike with an upright riding position and long-travel suspension that can venture out onto dirt roads. Their rain-soaked day aboard the XR may fill hindered their overall assessment, but gave us enough of a taste to mumble its performance can back up BMW’s high expectations. As for future MotoUSA content with the S1000XR, they train to compare it against at least one of its rivals. ante you can guess which one…

    2016 BMW S1000XR Specifications:Engine: Liquid-cooled Inline FourDisplacement: 999ccBore x Stroke: 80 x 49.7mmCompression Ratio: 12:1Clutch: humid clutch with slipper functionalityTransmission: Six-speed, with optional Gear Shift AssistFinal Drive: Chain 17/45Frame: Aluminum perimeterFront Suspension: 46mm inverted fork adjustable for compression, rebound and preload with 5.9 inches of travel; optional Dynamic ESARear Suspension: solitary shock adjustable for preload and rebound, with 5.5 inches of travel; optional Dynamic ESAFront Brake: Dual 320mm rotors with radial-mount four-piston calipersRear Brake: solitary 265mm rotor with twin-piston caliperFront/Rear Tires: 120/70 ZR17; 190/55 ZR17Rake/Trail: 25.5°/4.6 inchesWheelbase: 61 inchesSeat Height: 33.1 inchesFuel Capacity: 5.2 gallonsCurb Weight: 502 poundsMSRP: base ($16,350), gauge Package ($17,295) and Premium Package ($18,750)

    Tech Data Corporation (TECD) CEO Richard Hume on Q3 2019 Results - Earnings convene Transcript | true questions and Pass4sure dumps

    Tech Data Corporation (NASDAQ:TECD) Q3 2019 Results Earnings Conference convene November 29, 2018 9:00 AM ET


    Arleen Quinones - Corporate VP of IR & Corporate Communications

    Richard Hume - CEO & Director

    Charles Dannewitz - EVP & CFO


    Matt Sheerin - Stifel

    Adam Tindle - Raymond James

    Param Singh - Bank of America Merrill Lynch

    Jim Suva - Citi

    Sean Hannan - Needham & Company

    Keith Housum - Northcoast Research


    Good morning. Welcome to Tech Data Corporation's Fiscal Year 2019 Third Quarter Earnings Conference Call. At this time, full participants are in a listen-only mode. After the presentation, they will conduct a question-and-answer session. [Operator Instructions] Today's conference is being recorded. If you fill any objections, you may disconnect at this time.

    Now I'll revolve the meeting over to Arleen Quinones, Corporate Vice President of Investor Relations. Ma'am, you may begin.

    Arleen Quinones

    Thank you. trustworthy morning, and welcome to Tech Data's earnings conference convene and webcast to review their monetary results for the third quarter fiscal year 2019. I'm joined this morning by rich Hume, Chief Executive Officer; and Chuck Dannewitz, Executive Vice President, Chief monetary Officer.

    For a detailed Look at their third quarter results, please review their monetary highlights summary glide presentation posted this morning on the IR portion of their website located at

    Unless otherwise specified, full growth comparisons made on today's convene relate to the corresponding age of the previous fiscal year.

    Before they begin, I would enjoy to remind full listeners that today's earnings press release and inescapable matters discussed on this convene may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on the company's current expectations and are matter to risks and uncertainties. These risks and uncertainties include, but are not limited to, those factors identified in the press release and in their filings with the Securities and Exchange Commission and their most recent annual report on shape 10-K, which identify risk factors that could understanding actual results to vary materially from those contained in the forward-looking statements.

    Please be advised that the statements made during today's convene should be considered to portray the expectations of management as of the date of this call. The company undertakes no duty to update any forward-looking statements to actual results or changes in expectations.

    Also, throughout this conference call, they will reference both GAAP and non-GAAP monetary measures. Non-GAAP measures exclude inescapable items contained in their GAAP monetary results. detailed reconciliations between results reported in accordance with GAAP and non-GAAP monetary measures can be found in the press release and on the Investor Relations portion of the company's website. In addition, this convene is the property of Tech Data and may not be recorded or rebroadcast without specific written license from the company.

    I will now revolve the convene over to Tech Data's Chief Executive Officer, rich Hume.

    Richard Hume

    Thank you, Arleen, and trustworthy morning, everyone, and thank you for joining us today. I am pleased to report that their teams delivered a stout Q3 performance with august execution across full three regions.

    Worldwide sales grew 11% to $9.3 billion, and they achieved high double-digit non-GAAP operating income earnings per participate growth. full three regions posted double-digit growth in constant currency and expanded their operating margins.

    In addition, they generated $155 million in cash from operations. They earned a revert on invested capital of 12%, paid down $100 million in debt and returned $44 million to their shareholders through participate repurchases.

    A combination of stout economies and employment levels, as well as the requisite for businesses of full sizes to digitally transform and help productivity continue to drive robust IT demand.

    Our worldwide teams capitalized on these trends and delivered profitable growth throughout their geographies and across their solutions portfolios. These results reflect a powerful combination of their end-to-end portfolio and stout execution by their global teams.

    They besides validate the strategic role they play in the IT supply chain, delivering high value through their end-to-end portfolio to channel partners across the broad spectrum of IT products and solutions.

    On eventual quarter's call, I mentioned the major integration milestones are now behind us. We're now squarely focused on executing their four pillar strategy of investing in next-generation technologies, strengthening their end-to-end portfolio, transforming Tech Data digitally and optimizing their global footprint.

    Our strategy's theme can be summarized in four simple words, touching to higher value. This can be accomplished in a number of ways, including helping to bring the newest and most innovative technologies to the global market as efficiently and as quickly as possible.

    It besides means touching up the stack, adding more value to the products they sell by bundling them with various services to provide complete solutions. full this translates into an improved monetary profile.

    As technology transitions to hybrid environments in which physical and virtual computing coexist, their vendors and customers requisite their back more than ever to comeby products, solutions and capabilities to the market.

    It's pellucid that cloud creates greater requisite for integration of products for multivendor solutions and for simplifying the complex, full of which are hallmarks of Tech Data's value proposition in both the physical and virtual world.

    For the past 40 years plus, they fill transformed and adapted to changes in technology, full while becoming stronger and more essential to both partners and vendors.

    As they trip into the future, having the privilege digital platforms will be faultfinding in achieving this. So I'd enjoy to provide you with some insights on their cloud industry in the StreamOne digital platform, which supports it.

    Cloud continues to be one of the fastest-growing areas in their business. In Q3, their cloud billings grew 38% and now portray an annual rush rate of nearly $1 billion. As you know, we've been investing in their StreamOne platform.

    In fact, developing the platform has been their solitary largest organic investment. StreamOne provides their customers with the capability to manage the entire finish user life cycle for consumption and subscription based cloud services, including tools and resources that enable channel partners to buy and manage services.

    Tightly integrated with other offerings in the world's leading cloud providers, such as Microsoft Azure, AWS and IBM cloud, among many others, StreamOne provides a digital platform for both SMB and enterprise customers that can back them to develop, expand and accelerate their cloud practices.

    During fiscal 2019, they will fill added more than 200 highly technical resources to their cloud teams across the region. These colleagues are dedicated to increasing their sales, digital solutions, engineering back and services capabilities.

    In addition, they continue to invest in ad resources to expand StreamOne's capability to broaden their reach, accelerate innovation and beget the tangled simple by fully digitizing the end-to-end transactional process.

    Last month, they announced the introduction of agile methodologies to their cloud drill builder, their digital enablement instrument that helps customers of full sizes to develop and scale their cloud practices quickly and cost effectively. To complement this, they besides launched a cloud mentor program, in which resellers can gain digital access to cloud experts and support.

    In just eventual week, they announced the addition of cloud checker and analytics management to the StreamOne platform, giving their partners and their end-user customers' greater control of their AWS and Azure environments.

    Enablement tools, such as these, together with their StreamOne platform in the vast ecosystem of vendors, ISVs and solution providers, differentiate us in the market and back to simplify their partners' workload.

    All of this positions us to be the leading hybrid cloud solution aggregator by providing integrated, private and public cloud technologies as a service solution.

    As further evidence of their strategic position in the channel, earlier this month, Tech Data received Cisco's Distributor of the Year Award, and they were besides named CDW's Distribution ally of the Year for the third consecutive year.

    These awards reflect their capacity to deliver consistent value to their channel partners, value that is simply not measured in products and solutions that they delivered, but more importantly measured by the people of Tech Data and their intense commitment and passion to back their channel partners navigate the rapidly changing IT ecosystem and grow their businesses.

    In summary, their third quarter results demonstrate that their differentiating end-to-end portfolio, skills and capability are helping to expand their position as a preferred ally to the world's leading technology vendors and to serve their customers better than any other IT distributor. They besides divulge the enhanced monetary profile of the unusual Tech Data, delivering stout earnings growth, generating cash rush and revert on invested capital.

    As they Look ahead, they will remain disciplined in managing their growth and pursuing opportunities aligned with their strategy of touching to higher value. In back of this, we're focused on the following.

    First, remixing their portfolios by deselecting less-profitable, capital-intensive businesses in order to enhance their monetary profile and free up capital to invest in higher revert opportunities.

    Second, continuing to optimize their cost structure in order to maintain their position as a low-cost variable route to market. And third, as august stewards of capital, we're focused on working capital management and cash generation in order to accelerate their strategy. Achieving this, they believe, we'll deliver industry leading returns on invested capital and continue to create significant value for their shareholders.

    I'll now revolve the convene over to Chuck for a detailed discussion of their Q3 financials and their outlook for Q4.

    Charles Dannewitz

    Thank you, Rich. trustworthy morning, everyone, and thank you for joining us today. As rich mentioned, they are very pleased with their Q3 results and with the stout execution throughout their regions.

    Worldwide sales came in ahead of the high finish of their guidance, reaching $9.3 billion, an extend of 11% and 12% in constant currency. Worldwide primitive profit came in at $557 million, an extend of 6%. Worldwide primitive margin was 5.96% compared to 6.23% in the prior year quarter. The year-over-year decline is primarily due to a higher mingle of endpoint solutions as well as a decline in the margin profile of advanced solutions.

    However, it's essential to note that their continued focus on disciplined pricing and profitable sales resulted in a modest primitive margin improvement from Q2, their first sequential primitive margin improvement in five quarters.

    Non-GAAP SG&A expenses, which exclude $23 million of acquisition-related intangibles, amortization expense, decreased $22 million or 6%. As a percentage of sales, non-GAAP SG&A expenses declined 67 basis points. They want to highlight that included in SG&A is a $25 million profit related to the collection of a previously reserved accounts receivable.

    Worldwide non-GAAP operating income was $188 million, up $52 million or 39%. Non-GAAP operating margin improved 40 basis points to 2.01%. Excluding the accounts receivable recovery, non-GAAP operating income increased by $27 million or 20% and non-GAAP operating margin improved 14 basis points, primarily due to the enhanced operating leverage from higher sales volumes.

    Our GAAP efficient tax rate in Q3 was 2%. This includes a $24 million decrease in their provisional assess of the onetime transition tax related to U.S. tax reform. This revised assess is primarily due to further analysis of the earnings and profits of their foreign subsidiaries and utilization of foreign tax credits. They will finalize the amount of the onetime transition tax during their fourth quarter.

    Our non-GAAP efficient tax rate in Q3 was 26%. Non-GAAP net income was $116 million, an extend of $40 million or 52% and non-GAAP earnings per diluted participate increased 51% to $3.02. The accounts receivable recovery favorably impacted net income by approximately $18 million or $0.47 per diluted share.

    Turning now to their regional results. The Americas region posted excellent growth with sales reaching $4.1 billion, an extend of 13%. The regions SMB sales division grew 23%. Its 13th straight quarter of 20%-plus growth. Sales were fueled by double-digit growth in PC systems, networking, storage, cloud, analytics and hyperconverged products.

    The Americas non-GAAP operating income was $125 million, an extend of $39 million or 46%, and as a percentage of sales, improved 68 basis points to 3.01%. The accounts receivable recovery favorably impacted the Americas operating income by $25 million.

    Our European region besides reported stout growth with sales reaching $4.9 billion, an extend of 9% and 12% in constant currency. The growth in Europe was broad-based across the region, fueled by sales of notebooks, networking, storage, servers, cloud and mobility. Europe's non-GAAP operating income grew to $66 million, an extend of 24%, and as a percentage of sales, improved 16 basis points.

    And in their Asia Pacific region, sales increased 6% to $282 million and 12% in constant currency, fueled by networking, servers, storage and NexGen technologies. Non-GAAP operating income in Asia Pac grew 18% to $5 million, and as a percentage of sales, improved 17 basis points.

    Turning now to some of their balance sheet and cash rush metrics. The combination of their higher velocity product mingle and their teams continued focus on working capital resulted in a cash conversion cycle of 18 days, equal to Q2 and lower by five days compared to the prior year quarter. They generated $155 million of operating cash rush in Q3, and they exited the quarter with a cash balance of $646 million.

    During Q3, they paid off an additional $100 million of their long-term bank debt, and they ended the quarter with a stout capital and liquidity profile. And for the trailing 12 months, they earned an adjusted revert on invested capital of 12%, above their weighted medium cost of capital of approximately 9%.

    In October, they announced a $200 million participate repurchase program. In Q3, they purchased approximately 621,000 shares or $44 million at an medium cost of $70.48 per share.

    We'll continue to maintain a disciplined approach in how they allocate their capital, investing in organic growth, accelerating their strategies through selective M&A and returning cash to shareholders through participate repurchases, the mingle and pace of which will vary depending on the opportunities available in the market.

    And finally, the amount and timing of the onetime costs and savings related to their global industry optimization program, which they announced eventual quarter, remain unchanged.

    Turning now to their guidance for the fourth quarter ending January 31, 2019. As they Look ahead to the fourth quarter, they anticipate trustworthy require trends to continue with sales to be in the ambit of $10.5 billion to $10.9 billion and non-GAAP earnings per participate to be in the ambit of $3.90 to $4.20.

    This guidance assumes an efficient tax rate in the ambit of 24% to 26%. This guidance besides assumes an medium U.S. dollar to euro exchange rate of $1.15 to €1.

    We will now enjoy to open it up to questions. Operator?

    Question-and-Answer Session


    Thank you. [Operator Instructions] Their first question comes from the line of Matt Sheerin with Stifel. please proceed with your question.

    Matt Sheerin

    Yes, thank you. And trustworthy morning. My first question just regarding your stout revenue and in your guidance, which looks seasonal, maybe a Little bit below seasonal versus eventual year, but soundless trustworthy guidance in light of some macro concerns and besides concerns with your biggest supplier, smartphone supplier, in terms of production cuts. So where are you seeing the growth and particularly on the commodity side, the client device side are you continuing to perceive PC upgrade cycle, any thoughts there?

    Richard Hume

    Yes, Matt, trustworthy morning. This is Rich. Thank you for your question. As it relates to the quarter in the market, the require was very broad. So as you know, they mind to Look at their industry and segments of endpoint and advanced solutions, and I would elucidate you that there was stout growth in both of those segments.

    I mediate that if they occupy a Look at this year from my point of view, it's been a bit of an unprecedented year as it relates to demand. When I was sitting here at this time eventual year, they thought it could be marketing around 3%, but it's far greater than that. And you full probably fill your own estimates, but I mediate it's north of 5%, 6% in total, which is quite big.

    Again in my sustain in the past, there is always been shorts and longs when they perceive strength in the market. But generally speaking, the strength has been uniform. You could occupy it by geography, Asia Pacific, Europe, North America, full fill fairly robust demand.

    And then even by product segment, the PC ecosystem stuff seems to be very strong. The data seat stuff in the unusual technologies is strong. And then even some of the late legacy categories of data seat fill demonstrated strength over the recent past. So require fairly robust.

    Your question as it relates to Apple, in particular. So as you know, it is a big portion of their business. However, when you occupy a Look at that entire portfolio, phones are not the overwhelming portion of the portfolio. We've got a trustworthy blend of full Apple represented there.

    And so they had a very trustworthy phone quarter in 3Q. And they would anticipate that as they Look into 4Q, their forecast is their best judgment as to what will comeby done with the nature of require that they are estimating in the market.

    Matt Sheerin

    Okay, great. That's quite helpful. And then, regarding your Advanced Solutions business, the tech solutions, the Avnet legacy business, if you will, where - it looks enjoy you did fill some early hiccups. It sounds enjoy you're gaining traction. You looked at - talked about strength in data center. Your gargantuan competitor there though has been talking about significant participate gains against you, but it looks enjoy you're growing that business. Could you give us some more granularity into what that industry is looking like, in terms of revenue rush rate and margin profile now?

    Richard Hume

    Yes, sure. Just to kindly of reflect back for one moment. As you know, they had a data seat industry at Tech Data. They had acquired the TS asset and combined both of those entities. And as they had talked in the previous call, they were on an 18 month march of integration. And as you're on that 18 month march of integration, you're getting organizations in place, leadership in residence and getting the IT systems full sort of aligned and connected, et cetera.

    All of that is now behind us. And I fundamentally believe that when you fill the opportunity to spend more time focused on the industry and not having to worry about bringing these two things together, it just adds more management time around the execution.

    I would elucidate you that, that industry grew high solitary digit in total. It would be both that the legacy Tech Data business, as well as the TS business. And they feel very trustworthy about how they compete in the market. Things could ebb and rush over time, but they enjoy their hand, they enjoy their portfolio, and we're out in the market competing, and they mediate they can carryout so in a pretty efficient manner.

    Matt Sheerin

    Okay. Thank you very much.


    Our next question is from the line of Adam Tindle with Raymond James.

    Adam Tindle

    Okay, thanks. And trustworthy morning. I just wanted to start profit dollar growth. I know that's a key focus. The double-digit operating profit dollar growth we're seeing in the back half of the year is pretty stark when they compare it to the declines of one of your primary value competitors that they're seeing in the ECS business. So I'm hoping first you can maybe feel on the contrast of which you're executing versus your competitors?

    And second, is the double-digit operating profit dollar growth is something you mediate you could sustain because I mediate you mentioned deselecting business? So may be just talk about the buckets to sustaining this double-digit operating profit dollar growth trend?

    Charles Dannewitz

    Sure, Adam. This is Chuck, and thanks for your question. They did fill good. They had 20% operating income growth this quarter ex the collection of the AR receivable. So they did fill trustworthy operating income growth. We're projecting trustworthy operating income growth in their Q4 guidance.

    If you Look back at the genesis of the year and you Look back at what they said they thought we're going to accomplish when they gave their modeling assumptions, they said we're going to be pretty much in low solitary digits - flat to low solitary digits, and most of it being back-half loaded. I mediate that's what you're seeing. They said it was going to be lighter in the first portion of year, more robust in the second portion of the year and that's what we're delivering on.

    Lots of puts and takes. I mean, they said, low single-digit growth, we've experienced higher growth than that. We've had mingle in margin and other puts and takes. But at the finish of the day, we're delivering on very close to that - very consistent to that model assumptions that they gave at the genesis of the year. So I mediate that's how we're going to respond to your question is that it is more robust in the second half of the year.

    Richard Hume

    And Adam as it relates to the portfolio, privilege now there is trustworthy require in the market, and we're - their teams are taking edge of those opportunities. They are very focused on making sure that we're providing the portfolio that their customers set requires. And yet at the same time, we're besides very focused on making sure that they fill an adequate revert on what they do.

    And if there are instances where that revert kindly of hits the limit of acceptability, they will occupy action to either trip on from that particular customer or that particular product set and depart spend their time elsewhere. I mediate that as they trip through time, they continue to comeby better and better at this. And I mediate that will - it is reflecting in their results and will continue to reflect in their results.

    Again, I'd enjoy to kindly of harken back to what I had said earlier, they - once you fill the opportunity to deliver the entire team on the territory and not fill the distractions of an integration, it frees up a lot more time to focus on execution.

    We were a $26 billion entity, they acquired a $10 billion entity. Required a lot of management time, but we're ready to carryout go. And they really feel enjoy we've got the privilege management team on the field. They got the privilege set of processes and sort of execution and operational management systems in residence and we're off executing.

    Adam Tindle

    Okay. And Rich, I think, one of the other things that you mentioned was optimizing the cost structure in your prepared remarks. I mediate operating efficiency was, obviously, a gargantuan myth to the quarter. SG&A to primitive profit dollars, I think, the lowest 3Q ratio ever and most historicals didn't fill TS.

    So maybe first just talk about how you're able to rush a more efficient model despite having the higher-margin TS industry under the umbrella? And then also, how you mediate about a sustainable smooth of OpEx, whether it's in ratios or dollars or however you want to tackle that? Thank you.

    Richard Hume

    Okay. So I want to beget sure that we're fully transparent. When you occupy a Look at that OpEx, you beget sure you're kindly of considering that onetime $25 million collection of the receivable, right? That sort of takes the total OpEx down to less than a equable state level, right?

    That being said, when you adjust for that item, their OpEx is soundless competitive. We're soundless actually driving productivity from an E to R [ph] perspective on the OpEx line. And it's a brace of things. You've heard us talk about their strategy at the Investor Conference. They told you that we're steadfastly focused on digitally transforming their enterprise finish to end.

    That's bigger than just StreamOne. It is kindly of going through every one of their processes through time. It's a journey, and making sure, that we're using digital capabilities to comeby ultimate productivity out of those processes. So that work is underway and the teams frankly are - fill been focusing Tech Data for decades on driving productivity.

    So they set their goals and objectives for the year from a productivity perspective, and they depart and execute and drive them. So that's kindly of how they comeby it done internal to their management system.

    And they would anticipate that as they trip forward, that productivity will continue. I would point to the GBO Program. Just to refresh on the GBO, they said that they would occupy out $70 million of costs and they reinvest approximately half of that, 60% of that would be delivered by the finish of the 2020 fiscal and then the remaining 40% would roll over into fiscal '21.

    I know that there are some that feel as if the schedule should be more aggressive. But this isn't just cost takeout by slashing and burning, but rather cost takeout by actually providing the tools through digital transformation to carryout it actually more productively and more customer effectively, while touching through that process.

    Adam Tindle

    Thank you.


    The next question is from the line of Param Singh from Bank of America Merrill Lynch. please proceed with your questions.

    Param Singh

    Hi. Thanks for taking my question. So firstly, I want to talk about the operating margin in Europe. You guys fill a very stout improvement sequentially despite seasonal revenue growth there.

    Could you delineate some of the touching pieces, was it more volume related, mix, lower competition which you had faced with some of the reversal from the Avnet, HDD industry headwind that you had previously? I carryout understand that having free management time can back productivity, but if you could give some color, that would be great.

    Richard Hume

    So look, I'll start and then I'll hand it over to Chuck. If you reflect back on the eventual three or four calls that we've had, we've talked about a competitive environment, and they talked about they making some changes to be able to respond to that competitive environment.

    So I mediate that again the teams are very focused on how to optimize around the more profitable parts of their portfolio. We're focused on actually driving a more balanced growth between their advanced segment and their endpoint segment, where the margins are healthier overall as you know.

    And then, we're besides focused through the GBO on their productivity to be able to carry out what they carryout on a more productive basis such that they free up some costs to offset some of those margin declines that they had seen in the first three – two quarters of this year.

    So I mediate it's a combination of full of those things. They rush the company on one strategy, and we're full focused, as I said, on the digital transformation framework across the board. And I mediate a lot of what they fill deliver in residence now is genesis to pay dividends.

    So got a august management team over there, and they know how to adjust. We've always talked about how Tech Data adjusts to the circumstance. And sometimes adjusting to the circumstance doesn't chance privilege within the quarter as you full know. Although they enjoy to account ourselves a speedboat, they soundless occupy a bit of time to beget the turn. That being said, they are - we've demonstrated over time that they are resilient and can adjust, and I mediate you perceive that manifesting itself in their results.

    Param Singh

    Thanks. I really, really appreciate the detail. And as my follow-up, I just wanted to dive in on some of the China tariff issues here. carryout you mediate there might fill been some sort of pulling in the Americas ahead of potential China tariff?

    And carryout you mediate that they might perceive some sort of require drop off in the U.S., if they carryout depart out and then post a 10%, 25% headwind tariffs on laptops and related products?

    Richard Hume

    So just to be as honest as I can be as it relates to this question, first let me comment on their recently reported quarter. They actually saw an insubstantial profit associated with tariff. They talked before about the fact that as to where they sit in the supply chain, it offers a bit of an opportunity. Again, I would be a bit repetitive here in proverb that it was really insubstantial benefit, but there was some profit there.

    As it relates to your question on require being pulled forward, certainly, I would speculate that some of that occurs, but I don't - I can't elucidate you that it's an overriding theme that's visible to us or we've been made aware of. And then, as it relates to the first quarter, they spent a lot of time over eventual day or two preparing for answering this question on what will chance with the tariffs in the first quarter.

    And as you know, there isn't a lot of certitude as to what will chance with tariffs in January. They carryout know that some of the commodities that are incorporated into the PCs potentially are in the list of things to comeby tariffed. However, a lot of the content that they sell at the top smooth are not on those lists, but those lists are matter to change. So it's sort of a bit of a touching target.

    I would elucidate you that in working with their vendors, they full now are very focused on, allow me to exhaust the word tariff engineering, to occupy edge of touching their supply chains and to optimal positions and taking edge of optimizing around the set of rules they mediate will be deliver in place.

    So my view is that there will be some impact, but it's very difficult to mumble how much and when and what segment based on the fact that this thing continues to trip around.

    Param Singh

    Got it. And - but you should fill some sort of flexibility in passing along cost if you had to incur some of those tariff-related pricing from your OEMs?

    Charles Dannewitz

    Param, this is Chuck. Yes, they definitely fill contracts with some of their larger customers, where they carryout cost - fill cost actions that are available to us for the tariffs. And in general, they would pass on those costs to their customers. It's really - it's the require elasticity, that's the question on the tariffs, not really whether they can pass the cost along.

    Param Singh

    Got it. Thank you so much. appreciate it.

    Charles Dannewitz



    Our next question is coming from the line of Jim Suva with Citi. please proceed with your question.

    Jim Suva

    Thank you, Chuck and Rich. I fill two questions and I'll interrogate them at the same time and you can pick to retort them in any order. But first of all, the operating margin improvement this quarter, the sales much better than expected this quarter. It's a very stark and nice change from, say, the past two, three, four quarters. What really where the brace of key things that allowed you to kindly of really revolve on the gas, deliver your foot on the pedals and really just perceive a flow-through to both the sales and bottom line?

    And then my second question is on the accounts receivable recovery. Was that fully recovered? Is there soundless more to foster in the quarters ahead? I assume it was one customer, and I assume the accounting works, it doesn't repercussion your sales, it just impacts your profitability? Thank you.

    Charles Dannewitz

    Right. Jim, this is Chuck. Let me occupy the eventual one first. The recovery of the $25 million is related to a customer that they obtained in the TS acquisition, and they secured the payment this quarter, that they previously thought was uncollectible. So they carryout not anticipate any further recovery. We're paid in full, and so we'll fill no repercussion on future quarters.

    Richard Hume

    And then, Jim, as it relates to your second question, there's a brace of points that I'd enjoy to make. First and foremost, the overlying require in the market is strong. So there is lots of opportunity or lots of ad backs, if you will, as it relates to what's available out there to compete for.

    Second is - and I don't want to dwell on this, but second is the acquisition and having that integration complete and focusing their management time just purely based on their industry and execution of their strategy and execution of the quarter or the year is of the highest priority now, whereby, [indiscernible] to be previously traded off.

    Third, I think, they fill the most outstanding portfolio in the industry. You depart through any vendor list at the top of this IT market, and they fill a relationship with the overwhelming predominance of those vendors. And we've got august relationships with them.

    So they foster together globally to determine what they want to accomplish and then they depart and engage their geographic teams and comeby them aligned with those plans. In some instances, they jointly invest in executing those plans. And privilege now, the teams are often and getting it done.

    As you know, when you draw a unusual organization together of the size and scale that they did with the Avnet TS, it takes a bit of time to comeby the management team settled in, takes a bit of time to comeby the account coverage settled in. And as I commented on the eventual call, full of that is behind us. So my personal view is that, that has a gargantuan repercussion on their capacity here to execute most optimally touching forward.

    Charles Dannewitz

    And Jim, this is Chuck. Just one further comment, and that is this really shows the leverage that goes into their operating model when they fill stout top line growth and they accommodate their cost. They did an excellent job on cost containment. You're going to perceive that drop to the bottom line and produce august operating margins. They besides saw a firming of their endpoint solutions margins during the quarter. So really an excellent job by the team.

    Richard Hume

    Yeah. They oftentimes, Jim, on these calls spend time talking about their earnings, which is absolutely appropriate. It's a very, very faultfinding metric, but I fill to elucidate you that I'm besides supercilious of the team's execution on the capital side and the cash side. We, as their primary metric, are always focused on revert on invested capital.

    And if you reflect back on the eventual quarter, perhaps they reviewed to be a bit short on the earnings they delivered. But if you depart to inspect the execution of capital management, cash management, revert on invested capital, they've always been the stalwarts of their industry and remain strong. And they occupy full of their decisions as it relates to running and executing their industry with the blend of earnings, capital deployment and cash management in mind.

    So they try to maintain a sound and disciplined approach to the market. And what I elucidate the team full the time is that they want to be hungry, but humble. And so that's their approach to the market.

    Jim Suva

    Thank you so much for the details and additional clarifications, its greatly appreciated.

    Richard Hume

    You’re welcome.


    Our next question is from the line of Sean Hannan with Needham & Company. please proceed with your questions. Mr. Hannan, please proceed with your question.

    Sean Hannan

    Sorry. Yeah, sorry, the mute office was on. So thanks for taking the question here. Just wanted to interrogate it was inspiring to hear the commentary that there's been a objective amount of solid require that's been relatively consistent in some of the more legacy, enterprise and storage areas.

    Want to comeby a Little bit more commentary around that, either in terms of what you've observed to date or any prospects and views as this kindly of moves forward into 2019? Thanks.

    Richard Hume

    Yes, this is Rich. Thanks for the question. And I want to portray this is my point of view and maybe it's well anecdotal, but I mediate it's directionally correct. If you were to attain back into '15, '16, arguably portion of '17 calendar year, there was a lot of strain within the data seat set around Intel-based servers as well as storage, two examples, where those categories perhaps from a market perspective had temper declines. As it relates to the current year in '18, they perceive growth in those categories, not only for Tech Data, but the market in total.

    Now you might interrogate yourself, well, what's behind that? And I'll give you my point of view. There is, I think, two or three things behind it. Number one is the legacy categories fill transitioned themselves to be highly much more efficient and productive.

    I exhaust the case of servers in the data seat and hyperconverged technology. I should mumble not servers, but the entire stack of data seat hardware and hyperconverged technology. That sort of narrowed the gap, if you will, between public cloud and private cloud deployments.

    Second and most profoundly, I mediate that this entire thought of cloud and what will be in the public domain, what will be in the private domain has sorted itself. And again, anecdotally, I think, there was a bit of pent-up require within data seat acquisition. Intel enterprises sorted how they wanted to actually construct their architect, if you will, their data centers needs going forward.

    So I mediate that: a, with the legacy stuff touching into the modern world through things enjoy hyperconverged and software defined and being highly more efficient; b, the adaptation of the market towards hybrid cloud as being the long-term approach here now, so there's going to be a life of both the on-prem and off-prem coexisting as they trip forward.

    So those declines and then that happened in the previous year, we're clearly enabled to, if you will, shift based on those changes. And then, of course, just the overlying market being stout is besides a contributor to, I think, those categories being picked back up.

    Sean Hannan

    I mediate a lot of that commentary makes a lot of sense and I certainly appreciate that. That's - it feels enjoy this is something that has a Little bit of a deceased cat bounce to its rationalization and some - at least some temper improvement going forward. And it sounds enjoy from your commentary, Rich, is that you probably generally agree with that.

    Richard Hume

    Yes. That would be my point of view that I represented.

    Sean Hannan

    Yes, okay. And then, so if I could switch gears over to security. Can you talk a Little bit more in terms of the portfolio that you fill there? And where is your solace smooth with? What you're offering to your client base of resellers, general VARs, the services you are providing, the OEMs that you're being able to provide access to? Can you provide a Little bit more commentary around the direction of this piece to portfolio and solace today? Thanks.

    Richard Hume

    Yes. So top line message is their security portfolio is in transition. So what carryout I spell by that? When you occupy a Look at their install base, if you will, what we've sold in the past because of their legacy business, it had been more aligned around the PC ecosystem.

    As they Look forward and where we're really structure their industry is they really want to shift or remix that portfolio more towards the data center-type security offerings, the higher value offerings, if you will.

    When you occupy a Look at their line card, it's as stout as anyone's within their domain. And we've got the privilege set of relationships in place. And they are currently investing as one of their priorities to build out that, allow me to exhaust the words value, security portfolio, by adding a lot of specialization internal to their organization.

    I mediate you're probably well aware that the traditional sellers within the data seat footprint aren't the folks that can depart and sell security solutions. And when they Look at the higher value sort of categories, they - those nature of offerings are very analytics intensive and rather than exhaust the approach of firewall technique, it's more of - they've entered their domain and how carryout they quickly find them through the exhaust of analytics. So those are sort of the nature of offerings that we're structure out within the portfolio.

    I'll elucidate you we've got work to carryout here. They are not where they would enjoy to be. And when they fill their annual contrivance discussions as they position ourselves for FY '20, we're going to be incrementing, if you will, the investment we're making this category to a really, really more robustly build that data seat category.

    Sean Hannan

    Thanks so much for taking the question folks. trustworthy luck.

    Richard Hume

    Yeah. Thank you.


    Thank you. [Operator Instructions] Their next question is from the line of Keith Housum with Northcoast Research. please proceed with your question.

    Keith Housum

    Good morning, gentlemen. Can you hear me okay?

    Richard Hume


    Keith Housum

    Appreciate it. Thanks…

    Richard Hume

    Good morning, Keith.

    Keith Housum

    Good morning. Congratulations on a trustworthy quarter.

    Richard Hume

    Thank you.

    Keith Housum

    Chuck, I wanted to follow up on a comment, I believe, you made in terms of talking about primitive margins and a decline in the Advanced Solutions, primitive margins. Just want to understand if that's just kindly of a natural decline in the industry as it comeby matures? Or can you provide some more color on those stocks?

    Charles Dannewitz

    Yes. No, really the comment was more on the stabilization of the primitive margins on their endpoint solutions and then the mingle - the higher mingle of endpoint solutions as compared to advanced. And then they continue to perceive a decline on a year-over-year basis on their advanced. Whereas it did not occur on their endpoint solutions, it firmed up on a year-on-year basis on endpoint. So soundless very pleased and we're touching forward, but it's just really a year-over-year comment.

    Keith Housum

    Okay. Is that more driven by product specifics or customer-specific transactions or just maturing of the market?

    Charles Dannewitz

    It's really across the board on full of it. It's really a reset that they saw earlier in the year on some of the cost competitiveness in AS market. So it's really a year-over-year compare, and they just wanted to point it out.

    Keith Housum

    Okay, appreciate that. And just a Little bit of housekeeping. In terms of your guidance for the fourth quarter, does that assume that you guys will complete your participate repurchase transaction during the quarter?

    Charles Dannewitz

    We're not giving guidance in regards to the pace of which we're going to discharge their participate repurchase. They carryout fill a contrivance in residence at various participate levels. What it - I will mumble this that it has an insubstantial repercussion on the amount of their earnings guidance on the participate count.

    Keith Housum

    Okay. That’s full I got. Thank you.


    Thank you. This concludes Tech Data Corporation's Fiscal Year 2019 Third Quarter Earnings Conference Call. The replay of the convene will be available in about 1 hour at Thank you for attending today's conference call, and fill a august day.


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