Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek

Trending

Filed under: News | Technology News

 

Lenovo is Buying Part of IBM Server Business for $2.3B

Jan 23 2014, 4:01am CST | by

1 Updates
Lenovo is Buying Part of IBM Server Business for $2.3B
 
 

YouTube Videos Comments

Full Story

Lenovo is Buying Part of IBM Server Business for $2.3B

PC maker Lenovo Group buys part of IBM server business for $2.3 billion

BEIJING (AP) — China's Lenovo Group is buying part of IBM's server business for $2.3 billion, adding to a product line-up dominated by personal computers and smartphones.

Lenovo said Thursday it expects to offer jobs to 7,500 IBM employees in locations around the world as part of its acquisition of IBM's x86 server business.

The purchase allows Lenovo to expand its range of products and reduce reliance on sales of PCs, a market that is weakening as customers shift rapidly to smartphones and other wireless devices.

Lenovo and IBM have collaborated for a number of years. The Chinese company entered the global personal computer market in 2005 by acquiring IBM's PC unit. It has since expanded into wireless products including smartphones and tablets.

"We are confident that we can grow this business successfully for the long-term, just as we have done with our worldwide PC business," said Yang Yuanqing, Lenovo's chairman and CEO, in a statement.

Lenovo was declared the No. 1 personal computer maker in the third quarter of last year by research firms Gartner and IDC, surpassing rival Hewlett Packard Co. That was tempered, however, by the steady erosion of worldwide PC demand.

Lenovo, which is based in Beijing and in Research Triangle Park, North Carolina, has said it expects mobile devices to become the bulk of its business in coming years.

IBM, based in Armonk, New York, will continue to develop Windows and Linux software for the x86 platform and will provide service to customers for an extended period after the acquisition, Lenovo said.

The two companies also plan to enter into a strategic relationship. It will include a reseller agreement for IBM's Storwize disk storage systems, tape storage systems, and certain cloud, file system, platform computing and system software products.

The acquisition announced Thursday covers IBM's System x, BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, blade networking and maintenance operations, Lenovo said.

IBM will retain its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, and PureApplication and PureData appliances.

In its latest financial report, Lenovo said profit rose 36 percent from a year earlier to $220 million in the three months ending Sept. 30. Sales rose 13 percent to $9.8 billion.

___

Lenovo Group: www.lenovo.com

Source: AP

 

You Might Also Like

Updates


Sponsored Update


Advertisement


More From the Web

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/30" rel="author">Associated Press</a>
The Associated Press (AP) is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers.

 

 

Comments

blog comments powered by Disqus

Latest stories

Hello Kitty is Not a Cat!
Hello Kitty is Not a Cat!
Amongst some of the latest news to hit the scene is a factoid: Hello Kitty is not a cat! This might be a little hard to believe but for better or worse it is true.
 
 
Joan Rivers is &quot;Resting Comfortably&quot; says Melissa Rivers
Joan Rivers is "Resting Comfortably" says Melissa Rivers
Melissa Rivers, who is talk show host Joan Rivers’ daughter, recently informed the public about her mom’s convalescence in a hospital.
 
 
Harry Belafonte about to receive Special Oscar Award
Harry Belafonte about to receive Special Oscar Award
The veteran actor, songster and producer extraordinaire, Harry Belafonte is about to receive a special Oscar award. Three other people besides him will be awarded one too.
 
 
Google&#039;s Project Wing aims to create safe delivery drones
Google's Project Wing aims to create safe delivery drones
Google says that the project is still in its early stages of development.
 
 
 

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.