Lenovo To Buy IBM's Server Business For $2.3 Billion
itwbennett writes "Well, that was fast. Earlier this week the rumor mill was getting revved up about a potential sale of IBM's x86 server business, with Lenovo, Dell, and Fujitsu reportedly all interested in scooping it up. On Thursday, Lenovo Group announced it has agreed to buy IBM's x86 server hardware business and related maintenance services for $2.3 billion. The deal encompasses 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. IBM will retain its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, and PureApplication and PureData appliances." SlashBI has some words from an analyst about why Lenovo wants the x86 product line more than IBM does.
They must have loved their Thinkpad line of laptops so much that they just HAD to have more!
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I remember thinking "too little, too late" when IBM launched its x86 line (the IBM 5150 PC with 8088 CPU) in 1981.
Damn, over 30 years later and we're still stuck with a variant of that architecture!
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So basically Lenovo got a server manufacturer for almost $1Billion less than Snapchat is worth.
Thank you Dave Raggett
and not a damn funny things comes to mind. This should however be interesting going forward as IBM always had a knack for getting out of a market just before it went to hell
I am what I am
Snapchat, which makes one app, turns down 3 billion. IBM's server business sells for less.
Anything left from from good 'ol USA?
Yes I forgot. Numerous 3 letter agencies, cameras, police, security forces in kindergartens, schools and grocery stores, private prisons with largest population in it.
...don't welcome our new Chinese overloads. (Do you realize how hard it's going to be to learn to write/type Manderin?)
Coder's Stone: The programming language quick ref for iPad
so you best pay attention that's quite affordable & can lead to contact with some very caring people, or not. never a better time to consider ourselves in relation to each other & momkind as our centerpeace. little miss dna cannot be wrong..
eh, greybeard here so maybe its the metamucil talking but IBM never stood much chance in the server realm. not that they didnt make a damn fine x86...most were quiet and powerful, but the market hat was looking toward IBM was too different and weird.
if you wanted a workstation for simple 2D cad stuff your clear alternative was dell. it was cheap, came with whatever copy of windows you wanted, and didnt bankrupt your small shop with overhead from licensing and support contracts....other than whatever autodesk was gouging you for.
a litle higher up the chain, if you were doing some composite rendering or computational fluid thermodynamics you had Sun microsystems. they made the bulletproof UNIX the grads from the local alma-mater recognized, and the hardware was dependable. sun servers chugged through the heavy arithmetic but the deskside SPARCstation was the sterling ally of the well-weathered fogie in the corner office who occasionally appeared for his 'laureate engineer' paperweight. the IT department appreciated suns no-nonsense RTFM mentality.
BIS, corporate informatics and number-crunchery that fed paychecks through the line printers and requisitions across the department heads was the golden child of IBM...heck, its in the name! BUSINESS machines! the AS400 ran cobol and from its cobwebbed confines were excreted every known model and function of how the money made the business and vice versa. "terminals" kept the cost of doing dirty work down and a few cloistered chosen were sequestered into office space to stitch new lovecraftian code whenever an earnings summary needed a tweak or a new way of visualizing things 'outside the box' needed rendering in code. AS400 turned into Z's and E's and I's and soon JDEdwards became Oracle and the new reality of deadlocked transactions and segfaulted Business Objects servers were a daily bain for the IT department but the song never changed. this was to become IBM. Because the reports were a touchstone of the business these machines lived to become behemoths and their triumphs accoladed from on high by watsons and oh so many marketeers that knew no boundaries in the iron they could sell. IBM was the Iron Business Marauder, the Intractable Bloat of the Management, the only way your applications would ever imply support for your way of doing business in the ERP EAP SAP clusterfuck that BIS and management had conceeded was somehow a necessity now. IBM could never hope to sell X86, because IBM sold complicity and approval in the licensing agreements for Oracle and enterprise, not hardware.
and while they toiled over the iron they sold, Dell and HP slowly absorbed the engineering fallout from SGI implosions and cheap commodity x86 incursion around a SUN that comparatively stood as a more expensive and only slightly quicker means of doing what the engineers had always done. Goosed a bit by linux, no doubt.
Good people go to bed earlier.
Is IBM just "Global Services" now?
Robert X. Cringely's Ten technology predictions for 2014: #2 - IBM throws in the towel.
Do we know what was the offer from Lenovo that IBM refused last year ? Could be interesting (no, I didn't bother RTFA)
One day I'll be driving past a strip mall and see the familiar blue sign. It will now be the trademark of a shoe store.
A feeling of having made the same mistake before: Deja Foobar
So my trusty "Internal Bowel Movement" now needs to be changed to "I Beek Engrish"?
IBM .. big Iron, knew it well.. couldn't make the leap to the Cloud Iron
Survived by 6 billion of planer Earth, Sol solar system, Orion arm
Now Lenovo can fuck up that product line too, just like they did with the ThinkPad.
A public consumer buying a laptop is one thing, but I can imagine certain blue chip institutions (banks for example) will be slightly less interested in buying servers from Lenovo as opposed to HP. I have some IBM servers on order right now and there isn't usually a lot in it when deciding whether HP or IBM is better for my use case. If it was Lenovo or HP, that decision would probably only go HPs way.
This was definitely my first thought--a lot of value is in the IBM mark. If Lenovo can't brand the hardware and services and IBM, they're going to lose a lot of business relative to the value of the sold hardware and related services business prior to purchase. I would think a bunch of people would continue to use them for legacy equipment or when they want new hardware to function especially smoothly with legacy equipment, but for a lot of institutional clients, I think you just wouldn't consider Lenovo.
I would think that when you're purchasing a solution to a tech issue for a major institution, you're looking for three things: (1) that the solution will work, (2) that the solution is something you can justify spending money on to your bosses, and (3) that the solution is something that will cover your ass at least somewhat if it fails (i.e. you can point to a major brand name the CEO will know and they are more likely to believe that it should have worked, but if you point to a brand without a reputation or that they feel at all sketchy about they will blame you for picking it).
Of course, YMMV
If the future of commodity servers is low-powered ARM64 running Windows RT Blade Edition then IBM exits at the right time can focus on their own 'high end' and leave their competitor Intel's Xeon arch to Lenovo.
They don't do ANY of the services themselves. They have their helpdesk pass the ticket back and forth for MONTHS before finally subcontracting it to Brains II, Compucom, or Metafore, who show up same day or next day once they receive the ticket.
So basically Lenovo got a server manufacturer for almost $1Billion less than Snapchat is worth.
Which merely tells you that Facebook's acquisition team is very likely incompetent since Snapchat has zero revenue and unclear prospects for profitability. $3 billion is an absolutely absurd price and spending money like that is a big reason why I have no intention of buying Facebook stock. It also tells you that the owners of Snapchat are a bunch of weapons grade morons for turning down an offer like that. The only thing dumber than Facebook offering that much money for Snapchat was when Snapchat declined the offer.
"No One Ever Got Fired for Buying IBM"
Except now, you can't buy any IBM hardware, right? So, how are you going to avoid getting fired?
If telephones are outlawed, then only outlaws will have telephones.
I think you are too harsh on Lenovo.
I am using the Thinkpad X series and T series for the last 12 years...from the IBM days to the current iteration. I am yet to see a significant drop in quality on those two lines after Lenovo started rebranding. I am not sure about their entry models though.
Tat Tvam Asi
buy Lenovo. Why? Because it is a Chinese owned company. It's one thing to have a machine made in china, its quite another to have a machine made in china and sold by a Chinese company. There will be backdoors on all of that hardware.
The truth is that IBM's primary server market has never been its x86 offerings. The pSeries and System z market is much more lucrative what with engine licensing (CP, IFL etc) and massively expensive platform specific operating systems (z/OS, z/VSE, z/TPF, AIX etc) along with decades old products like CICS powering the vast majority of the financial world. I work closely with a contractor who worked for IBM for nearly four decades and his attitude to the distributed world is likely representative of a general antipathy to x86 on the server side within IBM (though I have no evidence other than him to back that up!) I suspect though, that the fact they can focus on "real" servers on the hardware side will probably be seen as good by most in Endicott.
I can see the sale of the System x and Bladecenters, but the sale of Flex Systems surprises me. I thought that was supposed to be their new hotness of 2012 - the magic box that lets you fire all your sysadmins. Maybe people didn't like having to develop using websphere?
Hmm.. pSeries is much better anyway. The sale of Flex suprises me because IBM was touting it as the "next" platform. To be honest when IBM came over to where I work to build up a demo cluster they failed misrebly. Either the Systems Engineer had little or no training or the hardware is not ready for prime time. I wouldn't trust Lenovo for any Government systems. It's going to be Go Power or Go home.
ThinkPad was a valuable trademark, for laptops -- Lenovo didn't dump it. I wonder whether servers will still say IBM for a while. (But then, Lenovo has had quite a few years since the portables acquisition to gain more recognition of its own name; back then "Lenovo" was still de novo, and IBM ThinkPad was at the top of the laptop heap, or close to it.)
Just the commodity low end part of it e.g. the servers in a single server cabinet, the small office market. Large Intel servers are still IBM.
I've been running Cisco UCS gear for 2 years, you might want to give it a look.
those trackpads are really bad. the whole thing is a button, your pointer tends to move before the click is registered and you end up clicking somewhere else
I bought a cheap consumer grade laptop from Lenovo who's only standout quality was a core i7 processor (because I was going to use it primarily as a compute server.) I've had zero problems with it. None. Zip. Zilch.
But I set my laptop bag down gently instead of tossing it on the couch or floor.
I remember that it's a piece of fragile electronics at it's heart, not some mil-spec tank designed to take a .50 calibre bullet and keep running. It's a trade off -- I'd rather have to take care of it than slug around a heavier chassis that might be a little bit more durable.
Just a few days ago, a friend was complaining on Crackbook about how "shitty" Toshiba laptops are. Well, it turns out that her kid had the laptop in her backpack, slipped on the ice, and landed full body weight on the laptop on her back.
There is no machine that will survive such abuse, and I told her that. She doesn't care. She'll "Never buy another Toshiba."
I suspect that 90% of the people griping about Lenovo's quality are in the same boat.
I do not fail; I succeed at finding out what does not work.
If it has an x86 chip, it's going. Period. This includes everything from their tower servers, to 1u/2u dual socket servers, to NextScale, to Flex, all the way up to their Xeon EX based servers. For BladeCenter and Flex (where the enclosures can hold both POWER and x86 systems), Lenovo also gets the enclosure, partner relationships, and IBM OEMs the enclosure back for use in selling POWER blades. HMC hardware appliances will be sourced from lenovo.
If you really have your heart set on *IBM*, then you have to get i, p, or z systems now.
Of course, all the people that are actually behind the qualities sought after in IBM hardware go with the sale. History suggests that those people will largely be left intact since that's what happened to the PC business.
Service is a question, since those people were tasked with servicing all the server hardware. That hasn't been perfectly clarified. It sounded most like the intent is that IBM keeps the technicians, but they will be required to service Lenovo as well as IBM equipment (presumably Lenovo ongoing pays something for the privilege). Perhaps someone familiar with Lenovo desktop experience can speak to how that panned out (all of the laptop vendors I deal with now just ship a loaner laptop and I ship it back instead of sending out a technician).
XML is like violence. If it doesn't solve the problem, use more.