Live data from Hacker News

IBM looks to sell its x86 server business to Lenovo as profits crash

arstechnica.com

21–30 of 45 posts

Re: IBM looks to sell its x86 server business to Lenovo as profits crash

#21

While from a business standpoint, this is perfectly viable and a smart move on IBM's part, in the long-term, seeing how Lenovo has ruined the Think brand, I would be wary of spinning off any more operations to Lenovo. They just don't have clear product focus, but in this world, I guess shareholders rule. Even if those shareholders don't act in the best interest of the company.

>seeing how Lenovo has ruined the Think brand

Did they really?

Re: IBM looks to sell its x86 server business to Lenovo as profits crash

#22

Earlier quoted context omitted.

I don't think they would as most of the Power stuff is linked to AIX licenses and is fairly "unique". 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 busines…

"We don't need the low end. Let them have it." Didn't the american car companies take that route too? And steel mills. and... mainframes I think.

It doesn't make it a stupid decision. Levano can already take the low end (or Asus will). IBM sells their low-end while it's still worth something, rather than fighting a losing battle.

Re: IBM looks to sell its x86 server business to Lenovo as profits crash

#23

Earlier quoted context omitted.

I don't think they would as most of the Power stuff is linked to AIX licenses and is fairly "unique". 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 busines…

"We don't need the low end. Let them have it." Didn't the american car companies take that route too? And steel mills. and... mainframes I think.

And replaced them with the knowledge economy right. Which has some structural issues right now across the developed world i.e record corporate profits, less than record employment rates.

Re: IBM looks to sell its x86 server business to Lenovo as profits crash

#24

While from a business standpoint, this is perfectly viable and a smart move on IBM's part, in the long-term, seeing how Lenovo has ruined the Think brand, I would be wary of spinning off any more operations to Lenovo. They just don't have clear product focus, but in this world, I guess shareholders rule. Even if those shareholders don't act in the best interest of the company.

>seeing how Lenovo has ruined the Think brand Did they really?

http://www.lenovo.com/products/us/laptop/thinkpad/t-series/t...

Re: IBM looks to sell its x86 server business to Lenovo as profits crash

#26

While from a business standpoint, this is perfectly viable and a smart move on IBM's part, in the long-term, seeing how Lenovo has ruined the Think brand, I would be wary of spinning off any more operations to Lenovo. They just don't have clear product focus, but in this world, I guess shareholders rule. Even if those shareholders don't act in the best interest of the company.

I remember when they spun/sold off a lot of their peripheral production to Lexmark. Now their systems are going to Lenovo... I think IBM is really following Microsoft/Oracle... interesting that this comes as the likes of Oracle and MS are losing mindshare regarding up and coming developers.

Re: IBM looks to sell its x86 server business to Lenovo as profits crash

#27
post #25

Perhaps they want to sell the x86 business and focus on the emerging ARM/alternative architecture business. I wonder what sort of non-compete the deal would include.

Being that IBM's POWER architecture is also a RISC architecture I would expect them to rally behind that, if anything. I've heard that POWER's performance had improved dramatically recently, so it would not surprise me if they were trying to push POWER.

edit: Yes, I did mean 'rally' - thank you.

Re: IBM looks to sell its x86 server business to Lenovo as profits crash

#28

Earlier quoted context omitted.

>seeing how Lenovo has ruined the Think brand Did they really?

http://www.lenovo.com/products/us/laptop/thinkpad/t-series/t...

This actually looks like a great laptop, could some point out what's wrong with it? The screen isn't too big and it has a nice resolution, which isn't easy to find.

Re: IBM looks to sell its x86 server business to Lenovo as profits crash

#29
post #25

Perhaps they want to sell the x86 business and focus on the emerging ARM/alternative architecture business. I wonder what sort of non-compete the deal would include.

Being that IBM's POWER architecture is also a RISC architecture I would expect them to rally behind that, if anything. I've heard that POWER's performance had improved dramatically recently, so it would not surprise me if they were trying to push POWER. edit: Yes, I did mean 'rally' - thank you.

I think you meant "rally".

Re: IBM looks to sell its x86 server business to Lenovo as profits crash

#30

This was bound to happen once servers all standardized on one architecture. Not that standardization isn't a good thing, it just became a race to the bottom just like the desktop market.

I'm kind of surprised, actually. There are still plenty of ways to differentiate your product in the server space, particularly when it comes to high availability. My company (Probably in the top 20 in the US in terms of revenue) pays outrageous amounts of money for servers because that's what it costs to fill your data center with DC powered high availability hardware.

I don't think we ever buy from IBM, though.

Post reply on HN