Feeds

IBM outsources Netvista PC production

Confirms commitment to PC market

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

IBM, the creator of the industry standard PC, is to stop making desktop computers, handing over production of Netvistas in US and Europe to Sanmina-SCI.

The OEM deal is worth $5bn over three years to Sanmina-SCI, a specialist electronics contract manufacturer, which is paying an undisclosed sum for IBM's Netvista manufacturing business, based in North Carolina and Greenock, Scotland.

Nine hundred workers from NC and 80 from Greenock will transfer on the same salaries to Sanmina SCI.

IBM says the deal ensures that the company will make significant cost savings, while continuing to offer a full-line up of PC products and services.

So what does this mean? First, it puts paid to the persistent rumours that IBM is to exit the desktop PC business. After all, it is committed to spending $5 billion over three years on its new desktop PC supplier. If Sanmina-SCI can build PCs cheaper than IBM, then IBM can compete harder on price for corporate desktop PC accounts. If nothing else, the Netvista PC line is a useful weapon in IBM's arsenal of tech services and products for the corporate market.

Today, IBM told staff by email that it was to stop selling PCs direct by telephone to small and medium-sized businesses in the UK, Germany, Sweden and France. Telesales staff are to be redeployed to handle calls from enterprise customers, while small businesses will now be referred to IBM channel partners. You can read more at ZDNET UK, which got the scoop. ®

®

Internet Security Threat Report 2014

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.