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IBM's x86 Server Business Back On the Market
itwbennett writes "It was widely reported last year (including on Slashdot) that IBM attempted to sell off its x86 server business to Lenovo, which seemed logical as Lenovo had bought out the IBM's PC business a decade ago. However, the two firms could not come to financial terms and the deal was never struck. Well, the rumors have started up again, only this time Lenovo has some competition, as Dell and Fujitsu are now being thrown into the mix as possible suitors."
the rumors have started up again, only this time Lenovo has come competition, as Dell and Fujitsu are now being throw into the mix as possible suitors.
Come one, that's just sloppy writing there. We can do better than "Lenovo has come competition" and "being thow into the mix".
Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
Editors: not being able to proofread a few sentences is telling people "I want my job taken over by a computer program".
I'm kind of curious what the PowerPoint jockeys think about this sale including *all* x86 servers. Blades?? "Enterprise" servers? They will draw a line somewhere that keeps some x86 server architectures in the IBM stable, I'd guess. Just like you can buy a glorified desktop from IBM as a "tower server" rather than having to go to Lenovo, a line will be drawn somewhere, and the "enterprise" servers will likely stick around IBM. At least until the margins suck on those, too.
Who do you get to be an expert to tell you something's not obvious? The least insightful person you can find? -J Roberts
IBM does not make innovation, they make money. commodity x86 server market is not the place to make money
Technically, they still have mainframes, System i, System P, etc. along with the various software platforms such as DB2, RACF, and the various BMC products. I think they are attempting to transform themselves into a "service" organization (similar to what HP is attempting) and divest the hardware / software while focusing on the consulting and outsourced support services.
off of a PC business that IBM was not able to. Is it because USian workers are all lazy? You know what we really need to do is to give China the cream of the USAian elite managers. I think we should export all the Harvard school of management graduates along with all our intellectual property lawyers to China. Think of all the exponential improvements the Chinese economy would undergo. Sure the Chinese are great at making things, but they have no management skills. We need to help these poor Chinese out. The USA may suck at most things but we have the best management in the world (just ask them). How much better would China be if it had Carley Fiorina in charge of something. It would be a real boom to the elite managers also. No longer would they have to deal with all the fat lazy USian workers. Unfortunately the workers will be directionless, and would not know how and where to go for the next meeting. So be it. That is the price of globalization.
There were(key word being were) some other companies that "didn't do low margin" such as SGI and Sun. I wonder where they are now...
Monstar L
IBM switched to services over a decade ago. They were the first and largest computer hardware vendor to do it, and other companies have been fruitlessly trying to emulate them. IBM's strategy is, AFAIU, actually studied in business school (anyone with a recent MBA care to chime in?), because they were one of the largest companies ever to successfully make such a fundamental switch to their business model, and their execution was near perfect.
Yes, IBM still sells mainframes and other systems, but the actual hardware is a small part of their revenue.
What IBM does is 1) invest in new research and technology, 2) productize, 3) make huge margins for a few years, then when they see commoditization coming around the corner 4) divest themselves of it and switch to integration and consulting.
I knew IBM outsourced their x86 servers
Actually, currently, they don't outsource their servers (in the sense of 'rebadging') for the most part. They are usually manufactured by the likes of foxconn, and sometimes much of the fine grained design work is done outside, but at the very least IBM does high level design (if not down to the nitty gritty). They even write their own UEFI implementation where pretty much everyone else goes to AMI. This doesn't necessarily mean good or bad things about the systems, it just happens to be that way.
Exceptions include things like the x3450, the e32*, and the x3755 m3. There may be some others, but at least their most common servers are actually IBM designed. Tower servers might have more outsourcing than the rackmounts...
XML is like violence. If it doesn't solve the problem, use more.
They will draw a line somewhere that keeps some x86 server architectures in the IBM stable
I'd guess the line could be somewhere around 'we can slap the IBM badge on the server on the way out the door' at best. Or else they'll have their brand completely removed from the boxes presuming that opens things up for IBM to be viewed as a logical provider for services and software on top of HP, Dell, or whatever server in x86 land.
Keeping some x86 business back from a divestiture could be pretty catastrophic for the bit that stays. When IBM sold PC, procurement got hit *hard* due to reduced volumes and had difficulty containing costs. Keeping, say, just their very expensive boxes would make that look like a walk in the park.
XML is like violence. If it doesn't solve the problem, use more.