Lenovo Servers to Run IBM Software

IBM and Lenovo have agreed to cooperate on developing servers based on x86 chips and running IBM's System x server software.The agreement is seen a sign of Lenovo's determination to reach further into the small and medium-size business market. (Lenovo is, of course, the company that bought IBM's PC manufacturing business.) Some also see it as a sign that IBM is getting further out of the hardware business in favor of services and solutions, though IBM said it would continue to sell its own brand of servers.

But both companies see the move as raising IBM's profile in the SMB market, which the company has targeted with other moves recently. IBM manager Rich Hume said, "The intent is to engage in a part of the business where we currently don't participate."The Register