Talking about selling low-end servers and expanding data centers from IBM

"Tenkine" These days, a few IBM's major news has burst out. It is necessary to say that the author first from an unfinished matter.

Less than a year later, IBM continues to explore the business of selling its low-end servers. As early as 2013, Lenovo Group intended to http://www.aliyun.com/zixun/aggregation/10246.html "> acquisition of IBM x86 low-end server business, but later on the two sides in the transaction valuation of the big differences, has been declared a failure." At that time, people familiar with the matter told the author that Lenovo did not give up the acquisition, only in the price of IBM and other "let go".

Dell is considering taking over IBM's business, The Wall Street Journal reported today. Dell, the world's third-largest server provider after IBM and Hewlett-Packard, is still a growing business, even though the business margins of low-end servers are low. The acquisition will help Dell's transition, which is to shift its business focus to enterprise-class customers. It is unclear whether Lenovo will continue to bid for the business or whether there are other buyers.

In the last 10 years, IBM has often had a "bizarre" business trade-off decision. IBM has "What it wants", whether it's for the mass consumer or for high-end industry users. Later, it sold a department that had a close relationship with individual consumers, and every sale was a time when it was being sold without any shortage of money.

Image source: Network

One of the things that impresses the writer is that when the dotcom bubble peaked in 1998, IBM sold IBM global receptacle, the world's largest telephone dial-up network, when few people predicted the advent of the broadband era ...

Then IBM sold the PC business to Lenovo, and it didn't have to say much. IBM was criticized for the development of personal computers, but what about the days of the current PC giants? All in all, IBM's approach is to cash in when these things are most valuable, and the choice is to firmly seize the "cake", the biggest profit in the tech industry.

Where is the future of the Blue giant?

IBM is about to release its new quarterly earnings in Thursday, although IBM's stock has underperformed and its revenues have been sluggish over the past year, but profits have risen steadily. For IBM, 2013 was a difficult transition for the blue giants, and external competition from Oracle and HP was fierce. 3721.html ">2014 year is a critical year for IBM.

Recently, IBM has made a powerful comeback against Amazon and Oracle: It will invest 1.2 billion of American knives to build data centers around the world, including the Americas, South America, Europe, Asia and Australia. A total of 40 data centers include 15 new data centers that IBM will build around the world, 12 data centers that have been built, and 13 data Centers for SoftLayer (IDC Inc., which IBM acquired in 2013).

Not only that, but last week, IBM announced that it had spent 1 billion dollars to invest in the IBM Watson Systems Group, a new business unit to fight HP and Oracle in large data and business analytics. IBM expects Watson to bring in 10 billion of business income.

The competition will only get more and more intense. Rival HP tries to overtake IBM in the server's market share, possibly cutting its price. Amazon has had a lot of success in cloud computing, forcing IBM to continue to make huge profits in terms of services that require more long-term customers.

IBM early personal PC above

Looking back at IBM over the past more than 100 years, IBM has become the source of the biggest enabler of the cause, but also contributed to the birth of Microsoft and other giants. It has been the subject of many new ventures and has been included in MBA textbooks ... these revolutions have not been able to shake the position of the blue giant, because each time IBM has always had its own life. IBM has made many major transformations, performing the steps of an elephant that can turn lightly.

It has to be said that IBM is still a great company, but it is no longer the main decisive driving force for industrial progress.