Tag Archives: Gabriel Consulting

IBM-Lenovo deal likely to focus on low-end, commodity servers, analyst says

Any deal by IBM to sell parts of its server business to Lenovo is likely to focus on low-end commodity x86 hardware, not higher-end x86 systems such as IBM‘s PureSystems and iDataPlex servers, an industry analyst said Thursday.

IBM reportedly is in talks with Lenovo to sell all or part of its x86 server business. It’s unclear how far along the talks are or whether a deal will materialize, but unnamed sources told both CRN and The Wall Street Journal that discussions are under way.

Asked about the talks on IBM‘s quarterly financial call Thursday, IBM‘s CFO declined to comment on what he called “rumors.” An IBM spokesman also declined to comment.

It could make sense for IBM to off-load its commodity x86 business, where profit margins are relatively low, said Dan Olds, principal analyst at Gabriel Consulting. But he doesn’t see IBM selling off all its x86 businesses.

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From: http://www.pcworld.com/article/2035747/ibmlenovo-deal-likely-to-focus-on-lowend-commodity-servers-analyst-says.html#tk.rss_all