Feeds

IBM hands server tech to Lenovo

Not doing a runner, though

Secure remote control for conventional and virtual desktops

Tech giant IBM has inked a licensing agreement with Lenovo that will see the Chinese computer vendor making and selling a range of x86 servers.

The two firms are currently keeping quiet about the finer details of the deal, but it's a move that demonstrates Lenovo's wish to flex its muscles in the server market as well as extend its reach among small to medium-sized business (SMB) customers.

And, perhaps even more significantly, it's a decision that will spark speculation that it signals IBM's further retreat from hardware manufacturing in favour of services and solutions. At the moment, however, Big Blue insists that's not what's going on.

Under the new deal the Chinese computer maker – which is currently ranked fourth behind rival Acer on worldwide shipments – will build one-processor and-two processor servers based on IBM's System x server technology.

A Lenovo spokesman told The Register that the agreement did not mean IBM was exiting the market. He said that "we are not buying IBM System x because it is clearly not for sale".

In fact, Lenovo thinks that the strategy will see IBM deepen its technology footprint in the x86 server market.

Echoing that sentiment, IBM modular systems manager Rich Hume said in a separate statement that Lenovo would help the tech multinational increase its SMB market share.

He said: "We chose to partner with Lenovo since they bought our PC business. We will go in the same direction with the x86 server business. The intent is to engage in a part of the business where we currently don't participate."

IBM said that it will continue to make and sell its own similar IBM-branded servers using the same technology, and that it will support Lenovo's server sales with financing, maintenance and service contracts.

UK IT distie Interface is among the many firms hopeful to benefit from the new deal, with products expected to hit the channel in either the third or fourth quarter of 2008.

Interface's sales director Rob Tomlin told El Reg that IBM and Lenovo had "played a blinder" by deciding to combine forces and focus efforts on the tasty SMB server market.

He said that Interface had already reaped the benefits from the sale of IBM notebooks and PCs to Lenovo thanks to its "slick supply chain", and claimed that "sales doubled" following the takeover.

"You've got to hope they'll do the same in SMBs with the x86 market," he added. ®

Internet Security Threat Report 2014

More from The Register

next story
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
The DRUGSTORES DON'T WORK, CVS makes IT WORSE ... for Apple Pay
Goog Wallet apparently also spurned in NFC lockdown
Cray-cray Met Office spaffs £97m on VERY AVERAGE HPC box
Only 250th most powerful in the world? Bring back Michael Fish
Microsoft brings the CLOUD that GOES ON FOREVER
Sky's the limit with unrestricted space in the cloud
'ANYTHING BUT STABLE' Netflix suffers BIG Europe-wide outage
Friday night LIVE? Nope. The only thing streaming are tears down my face
Google roolz! Nest buys Revolv, KILLS new sales of home hub
Take my temperature, I'm feeling a little bit dizzy
IBM, backing away from hardware? NEVER!
Don't be so sure, so-surers
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.