Feeds

IBM renews attempts to offload server biz: report

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

Internet Security Threat Report 2014

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. ®

Beginner's guide to SSL certificates

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.
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.