Impact server market Lenovo acquires IBM x86 server business
Source: Internet
Author: User
KeywordsServers IBM Lenovo acquisitions
This morning, Lenovo Group suddenly issued a notice of suspension, said the stock from 9 o'clock in the morning to temporarily stop trading. The news is a reflection of the fact that Lenovo is carrying out some big events that will make its share price rise or fall sharply.
Stock Suspension of Lenovo Group
The rumor that Lenovo is interested in acquiring IBM's x86 server business has been confirmed.
January 23, 2014 16:56, Lenovo Group chairman officially announced a 2.3 billion dollar acquisition of IBM's x86 server business, will have 7,500 IBM employees to join Lenovo, Lenovo x86 server share will also rise from sixth to third, the move for Lenovo increased 5 billion U.S. dollars in revenue. In the future, Lenovo will be fully developed in PCs, mobile devices and enterprise-class three business.
Yang, chairman of Lenovo Group
This is Lenovo's second acquisition with IBM. As early as 2005, Lenovo acquired IBM's PC business with 1.25 billion dollars, which became one of the largest overseas acquisitions of its time.
Lenovo has grown faster than its rivals in recent years after acquiring IBM's PC business. A few days ago, IDC's Asia-Pacific region's PC shipments report showed Lenovo still occupies the region's largest market share of 24.9%. In recent quarters Lenovo has also been sitting in the world's largest PC manufacturers.
The PC market has been depressed in recent years, many reports have shown that PC shipments in recent years has been a significant decline, and now has a number of manufacturers to transition, no longer the traditional PC business as the company's main revenue business.
Lenovo has not given up the business in the years of its ailing PC business, innovating and not loosening any of its products, which is one of the reasons it has become the world's largest PC maker. Still, the slump in the PC market does not provide more revenue for Lenovo, which needs to be in other markets.
When he presented the four-year plan to the board in 2013, Yang put forward the goal of accelerating the entire Lenovo transformation and improving profitability, and striving for an annual profit margin of 0.3%-0.4%. Yang also said that it would take full advantage of investment and mergers and acquisitions and other means to achieve strategic focus areas of the leap-forward development.
Lenovo restarted its server strategy as early as 2012, and last year, Lenovo teamed up with EMC Group, the world's largest storage software company, and launched a new thinkserver server, two times into the server market, and the pace of growth soared.
In order to have higher revenue in the server market, Lenovo in early 2013 for the acquisition of IBM server business negotiations, but ultimately failed. In fact, IBM's x86 server business is an excellent source of profit for the immediate Lenovo. First, the x86 server can not only help Lenovo to improve profitability, but also expand its corporate customer base for its future enterprise solution business to lay a good foundation; second, the application level of Chinese server users has not fully entered the phase of the need for solutions, Lenovo can fully use the IBM brand and product advantages, As well as the original accumulated experience of the server sales, first sit firmly in the domestic market, when the time is ripe to enter the overseas market.
Lenovo is now officially announcing the acquisition of IBM's x86 server business, adding a "weapon" to its rivals in the scramble for server markets. As an industry user, Lenovo also looks forward to the acquisition of the business to provide customers with better server products and solutions.
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