Lenovo bought IBM x86 servers

Commenting on the quarterly and annual results of Big Blue, we reported that the U.S. manufacturer limited except in the case the server activity, down sharply. Moreover, for several months, rumors about the acquisition multiplied by the Chinese manufacturer Lenovo this activity. It manifests itself today but not all. Indeed, Lenovo bought the x86 server activity switches and IBM, that is to say Flex embedded systems, the PlaceDenter, NextScale and iDatPex systems with software and maintenance associated. However, the manufacturer of Armonk keeps its System z mainframes and Power systems, storage systems, the Flex server based on Power and appliances Pure Data and Pure Application.

The transaction is concluded to $ 2.3 billion, including 2.07 billion paid in cash and the rest in shares. Lenovo, the acquisition will allow it to expand into a new market which it was sorely absent. Indeed, it is now Number 1 worldwide for the PC market, it has not escaped anyone that market contracted. Furthermore, in its domestic market, it was hitherto forced to make alliances, including EMC, to face competition from HP and Dell.

A software ecosystem services and construction

In these new activities, Lenovo will have to significantly expand its partnerships with software vendors for companies that are companies like Oracle, Microsoft, VMware and other SAP to name just some. Indeed, sales of servers is radically different PCs and requires to provide a true ecosystem of software and services around the machines sold. In this area, HP or Dell have yet a serious advantage not only with the solutions they already have in-house but also through the knotted long with players above software partnerships. 

Remember that in 2005 Lenovo acquired activity Pcs Big Blue and managed to become the Number 1 worldwide in this sector in 8 years. Note also that the company has recently made ​​a broad diversification across markets tablets and smartphones with a focus on the domestic market.