Feeds

IBM renews attempts to offload server biz: report

Probably ditching commodity x86 kit that the cloud and Quanta are eating alive

Bridging the IT gap between rising business demands and ageing tools

IBM is trying to offload its “low-end” server business, according to The Wall Street Journal.

The Journal's report suggests Dell hasn't turned up its nose in disgust at the idea of buying Big Blue's server unit and that Lenovo could also be sniffing around.

IBM's motivation for selling off low end servers is not clear, nor is just what is up for sale. Let's guess that the System X boxen are in peril, as these unremarkable x86 devices come in tower, rack and blade form factors and possess no immediately apparent competitive differentiation. Perhaps the x86 iterations of the Pure server range are also on the block.

It's hard to imagine the Power range is up for sale, as Dell and Lenovo are not the kind of company that would want the baggage that comes with owning the stack of silicon and operating system associated with such hardware. It's also hard to see IBM walking away from the customers who appreciate the mutually optimised rigs that Power and its ilk delivers.

As for why IBM is walking away, the company has a long history of leaving markets that offer low and/or declining margins, the better to pursue opportunities that let it sell services and deeper expertise.

If, however, IBM is offloading the X series, any claim to offering a comprehensive small business offering could go with the servers.

Whatever Big Blue's intentions, the server market is becoming a less friendly place by the day. Sales aren't stellar, thanks in part to cloud adoption. The cloud is also coming to compete in other ways, with Facebook's server supplier of choice Quanta signalling plans to sell its servers in smaller volumes through local outposts. ®

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.