Today Lenovo has made public their plans to acquire IBM’s x86 server business. This will make Lenovo the third largest manufacturer of servers in the world. The company plans to take a similar path as their PC business, which turned them into the largest PC seller in the world.
Looking at Lenovo as a whole, they are in nearly every computing market. Soon Lenovo will close the deal with Google to own Motorola Mobility. This makes Lenovo a seriously important company in the tech industry. If they can accomplish what they have in the PC industry in the server and phone industries, Lenovo will be a powerhouse.
Lenovo plans to turn their server business into a five-billion dollar business in one year. To do this they will protect their customer base and sell ThinkServer and Server X to their existing customers while expanding its footprints in other Asian markets. Lenovo will also benefit from a combined service and maintenance between server and PC. Also, being such a massive company, they can take advantage of economies of scale within their manufacturing and purchasing to lower costs.
Thanks to their experience in merging their PC business, Lenovo will be able to quickly and seamlessly incorporate IBM’s server group. The company says that it will apply the same techniques as before. By making tough decisions and having competitive business practices Lenovo plans to be number one in the server space.Further reading: Enterprise, IBM, Lenovo, server