IBM wants to sell x86 server to Lenovo billions of dollars in trading

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IBM planned to sell x86 business rumors years ago (TechWeb map)

"TechWeb Report" April 19 news, according to foreign media reports, the Wall Street Journal learned from sources, IBM is with Lenovo on the sale of the former x86 server business negotiations, the amount of transactions amounted to hundreds of millions of U.S. dollars. It is not clear at what stage the negotiations are to be reached or whether they will be finalized.

IBM's Low-cost x86 servers have been used by many companies and cloud data centers, the Wall Street Journal said. If IBM is interested in selling the x86 server business, it suggests that it does not believe that the business has been able to maintain a high enough profit margin.

Analysts say IBM has taken aggressive business-tuning strategies on many occasions, retaining only a larger growth potential and higher profit margins. Given that the new CEO, Rometty, is trying to boost company revenues and profitability, it should be in line with his strategic vision to sell the mid-range server. And if the sale of x86 business is true, it will be the first significant asset sale since Rometty's successor as CEO.

However, the CRN website points out that "IBM sells X86 server business to Lenovo" is not a new news, there have been similar rumors years ago, I do not know if this is true. As early as 2008, IBM and Lenovo agreed to provide "System X" Server technical support to help the latter build a single processor and a dual-processor server. There were rumours that IBM was planning to sell the x86 server business, but IBM's "System X" head, Adario Sas Adalio Sanchez, said the company had no plans to sell or shut down the x86 server business.