Inside Lenovo’s AI and hybrid cloud strategy for Indian enterprises

Artificial Intelligence (AI) is no longer a fringe concept confined to research labs. It is reshaping business models, transforming customer engagement, and redefining productivity across sectors. At the forefront of enabling this transformation is Lenovo, which has sharpened its focus on AI-ready infrastructure, hybrid cloud solutions, and locally manufactured enterprise technology.

Dataquest sat down with Amit Luthra, Managing Director – India, Infrastructure Solutions Group, Lenovo, for a detailed conversation on India’s AI momentum, CIO strategies, data infrastructure, and the company’s ongoing commitment to ‘Make in India’. 

Excerpts:

The Lenovo CIO Playbook 2025 indicates a 43% increase in AI spending in India. Which sectors are expected to see the highest levels of investment?

AI has become a horizontal capability rather than being confined to specific verticals. Sectors such as manufacturing, banking, and healthcare are all adopting AI extensively. If we engage with customers across these industries, what we observe is that they are prioritising their core business operations while embedding AI to enhance productivity and efficiency.

The report highlights that India is outpacing other Asia-Pacific markets in terms of IT spending directed towards business-enabling solutions, such as sales, marketing, and employee productivity. Therefore, the investment is not limited to a single industry; it is being channelled across verticals to gain competitive advantage.

The presentation mentions that India’s AI-powered PC readiness stands at 53%. What market share does Lenovo currently hold in this space?

Market share figures are typically reported by third-party analysts such as IDC, and we can certainly reference those data points. From Lenovo’s perspective, our priority is to provide purpose-built platforms that meet specific customer requirements. Our core focus remains on delivering the right technology at the right price, tailored to market needs. The resulting market share is a consequence of that commitment, and we are confident of maintaining a strong position.

Lenovo reported year-to-date revenue of USD 2.5 billion in March. What roadmap has been developed to sustain this growth trajectory?

I oversee the Infrastructure Solutions Group within Lenovo India. While global results are published regularly, we do not disclose market-specific revenue figures. That said, our focus remains steadfast: staying close to our customers during their transformation journeys. We have implemented go-to-market strategies and introduced channel partner incentives to strengthen our ecosystem. Our sustained emphasis on customer and partner engagement continues to drive momentum and we anticipate further growth.

The study presented is called the Lenovo CIO Playbook. How are Indian CIOs translating AI strategies into measurable business outcomes beyond the pilot stage? What KPIs are being used to define success?

The study involved responses from approximately 2,900 CIOs globally, including 950 in Asia and 115 in India, providing a representative view. Compared to last year, when CIOs were primarily exploring GenAI, this year the focus has shifted towards regulatory compliance, ethical AI, and security frameworks.

Organisations are moving beyond pilot projects and are now focused on delivering business outcomes. Unlike virtualisation, where ROI could be calculated based on hardware optimisation, AI-related ROI is more nuanced. It often manifests in areas such as productivity improvements, cost reduction, and revenue growth.

Organisations define success through specific business metrics. For instance, if AI is deployed to improve customer satisfaction or reduce defects in manufacturing, the corresponding improvement in those metrics serves as the ROI. It is a case of aligning AI projects with clear business objectives.

Since most organisations still rely on legacy systems, how does Lenovo help integrate AI without requiring costly infrastructure replacement?

This is a crucial point. Organisations that attempt a complete rip-and-replace of their infrastructure often struggle with digital transformation. AI is just one element of that transformation. Traditional workloads and infrastructure will always exist, and they must coexist with emerging technologies.

At Lenovo, we act as consultants to our clients, helping them create a framework where existing infrastructure supports and integrates with new AI workloads. The goal is to leverage what already exists while scaling up for new demands. Getting the framework right is essential, execution follows naturally from there.

Data quality and hybrid infrastructure were highlighted as foundational pillars. What is Lenovo’s hybrid infrastructure strategy in the Indian context?

We firmly believe that the future lies in hybrid AI. This encompasses three layers:

1. Personal AI – delivering advanced engineering in personal devices, equipped with AI agents.
   
   

2. Enterprise AI – enabling private cloud and on-premise deployments that meet data sovereignty and scalability needs.
   
   

3. Public Cloud AI – supporting hyperscaler environments and enabling seamless workload movement.

Lenovo actively works across all three layers, offering solutions that support hybrid AI deployment in a cohesive and secure manner.

How does Lenovo ensure data privacy and security in hybrid cloud environments that blend public and private infrastructures?

Security is a critical domain and encompasses industry-standard protocols and practices. However, beyond just encryption and compliance, what customers truly seek is a seamless user experience.

For example, applications like Microsoft Word offer consistent functionality across devices and platforms. Similarly, AI and hybrid cloud solutions must offer unified data access and interoperability. Lenovo is focused on ensuring that this seamless experience underpins our hybrid IT and AI offerings.

Lenovo announced the manufacture of AI servers in Puducherry as part of the ‘Make in India’ initiative. What is the current status, and how does it align with domestic enterprise demand?

This year marks two decades of Lenovo’s presence in India. Over this period, we have consistently supported the ‘Make in India’ initiative by manufacturing a range of devices and computing platforms locally. We are on track with our AI server production in Puducherry.

Globally, Lenovo has more than 30 manufacturing facilities and serves over 180 markets. Our supply chain has been ranked among the top 10 in Gartner’s global quadrant. We apply the same rigorous standards to our operations in India, ensuring timely and high-quality production to serve local enterprise demand.

How has Lenovo’s business grown in India beyond the PC segment?

India is among Lenovo’s fastest-growing markets. For the past three years, we have consistently outpaced market growth. Globally, our non-PC revenue contribution is increasing steadily, and this trend is reflected in India as well. Our infrastructure solutions and enterprise offerings are playing a significant role in this expansion.

Is Lenovo partnering with government or academic institutions for skilling and STEM initiatives in India?

Yes, we are actively involved in skilling initiatives, particularly under our CSR programmes. We can certainly share further details about our STEM-related activities. These efforts are part of our broader vision to create a skilled and future-ready workforce. We believe in empowering communities with education and technology.