So, are they still selling POWER/PowerPC servers? Would this product line be affected?
The offload of the x-series business is most likely due to the fact that IBM can't compete on price with the volumes which HP & Dell shift. IBM have no real USP on X86 as enterprise are now mostly putting ESX, Xen or Openstack on them, IBM have no potential license or service fees generation.
It seems a sound business decision to me.