IBM X86 Server Division Might Be Sold to Lenovo

By - Source: Toms IT Pro

Would IBM really sell off its X86 server hardware business to Lenovo? According to reports from CRN, talks to do just that are currently underway. The Chinese company could soon become the owner of the popular System X series of AMD and Intel-based rack, tower, and blade servers. It wouldn't be the first time Lenovo consumed a chunk of IBM's product lines; in 2005 it acquired the ThinkPad laptop brand.

Lenovo isn't yet in the networking or storage business, so it isn't as though IBM would be giving a leg up to a competitor should such a deal -- estimated to reap IBM between $2.5 billion and $4.5 billion -- go through.

IBM, meanwhile, will continue to make and sell Watson servers and System z mainframes, and tout its software, consulting and solutions businesses. Selling x86 servers isn't the kind of business it once was, anyway. With cloud servers for an increasing number of enterprises, white-box (non-branded) server farms for huge internet companies, and the general commoditization of hardware manufacturing, it isn't exactly a prestigious line of business with a bright future for IBM.

Rachel Rosmarin's technology experience goes back a decade to the dawn of Wi-Fi, smartphones and the Mp3. She has an in-depth knowledge of consumer electronics and has cultivated her love of useful new toys and innovative social software at publications including Tom’s Guide, Forbes 2.0, Sound & Vision and Mobile Magazine. She holds degrees in Journalism and Science In Human Culture from Northwestern University and is based in Los Angeles.

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