Infrastructure // PC & Servers
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1/23/2014
09:06 AM
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Lenovo To Buy IBM's x86 Server Business

IBM will shed its low-margin, low-end server business for $2.3 billion after more than a year of on-again, off-again negotiations with Lenovo.

Lenovo's enterprise-class server business is about to expand.
Lenovo's enterprise-class server business is about to expand.

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D. Henschen
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D. Henschen,
User Rank: Author
1/23/2014 | 3:56:13 PM
PureData includes x86 options
I should clarify that the PureData and PureApplication System lines include both x86 and Power (AIX- Unix) based options. PureData System For Analytics powered by Netezza, for example, is a Linux-based system based on x86. Oracle, too, is all but out of the x86 server business, yet its Exadata and Exalytics "engineered systems" are based on x86. The real value and margin in both the IBM and Oracle appliances is in the prepackaged software bundle.
cbabcock
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cbabcock,
User Rank: Strategist
1/23/2014 | 2:19:39 PM
A seismic shift in x86 server production
While expected, it's still hard to conceive of the x86 server business with iBM on the sidelines. Margins have been razor thin and pressure from white box producers has been growing. Avnet has a major production facility in Chanlder, Ariz. Quanta manufactures on Taiwan. Both are ODMs or open design manufacturers. You select the design. They'll produce the servers. Are these the future powerhouses of x86 server production, along with Lenovo in China? 
Server Market Splitsville
Server Market Splitsville
Just because the server market's in the doldrums doesn't mean innovation has ceased. Far from it -- server technology is enjoying the biggest renaissance since the dawn of x86 systems. But the primary driver is now service providers, not enterprises.
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