IBM, Lenovo reassure System x customers of seamless transition
IBM System x General Manager Adalio Sanchez speaking at an IBM event in Beijing on January 16, 2014 to debut the company’s latest x86-based servers. Today IBM announced plans for Lenovo to acquire IBM’s x86 server business for $2.3 billion.
Following their joint announcement this morning that IBM was selling its entire System x line to Lenovo, executives from both companies participated in a media call focused on reassuring customers that the companies plan a close ongoing partnership and seamless transition. The announcement, which includes the transfer of all IBM x86 products to Lenovo, comes a week after IBM’s announcement of the complete redesign of System x, and was not unexpected. SiliconAngle Founder and CEO John Furrier this morning wrote that IBM needs to divest itself of its x86 line and focus ,more on converged systems, software and services.
The agreement is much more than a sale of technology; it includes transfer of the entire System x group, including senior management, to Lenovo. Besides the server group itself, it also includes all other x86-based systems IBM manufactures, including network switches, and Flex-based systems. Adalio Sanchez, general manager for IBM System x and PureFlex, who is among the senior managers transferring to Lenovo, expressed confidence that his large group would be comfortable at Lenovo.
The partnership also includes an OEM agreement under which Lenovo will resell IBM Storwize storage under its brand, helping IBM to penetrate developing markets in particular in China.
A close partnership
IBM SVP Tom Rosamilia emphasized that IBM will remain closely involved with x86 customers for the foreseeable future. While Lenovo will take over system maintenance services, during the transition period IBM will continue to supply those services under the Lenovo name. He also emphasized that IBM will continue to deliver its analysis and other software on top of System x as part of what is envisioned as a close partnership.
He said that the sale allows IBM to focus on R&D for high-end systems including big data, cloud, and security, and “continue to evolve” IBM’s System z mainframes and Power servers. He specifically cited IBM’s announcement two weeks ago of a $1B investment in a new IBM division focused on developing and marketing services based on IBM Watson, and the announcement a week ago of the investment of $1.2B this year in expansion of IBM’s cloud architecture and services.
Peter Hortensius, Lenovo Senior VP and President of Think Business Group, said that going forward Lenovo will take over maintenance and other services closely associated with the System x hardware. However, any large services or consulting would be provided by IBM under the partnership.
Hortensius also said that this fits with Lenovo’s focus on x86 and on high volume, commoditized markets, while IBM is focused on leading edge services and hardware. He revealed that Lenovo had already been planning to expand into the x86 server space and that customers of its x86 PC business, which it purchased from IBM originally, have been asking for x86 servers from the company. The purchase, he said, “puts us at least five years ahead in this quest.”
Photo courtesy IBM
A message from John Furrier, co-founder of SiliconANGLE:
Support our open free content by sharing and engaging with our content and community.
Join theCUBE Alumni Trust Network
Where Technology Leaders Connect, Share Intelligence & Create Opportunities
11.4k+
CUBE Alumni Network
C-level and Technical
Domain Experts
15M+
theCUBE
Viewers
Connect with 11,413+ industry leaders from our network of tech and business leaders forming a unique trusted network effect.
SiliconANGLE Media is a recognized leader in digital media innovation serving innovative audiences and brands, bringing together cutting-edge technology, influential content, strategic insights and real-time audience engagement. As the parent company of SiliconANGLE, theCUBE Network, theCUBE Research, CUBE365, theCUBE AI and theCUBE SuperStudios — such as those established in Silicon Valley and the New York Stock Exchange (NYSE) — SiliconANGLE Media operates at the intersection of media, technology, and AI. .
Founded by tech visionaries John Furrier and Dave Vellante, SiliconANGLE Media has built a powerful ecosystem of industry-leading digital media brands, with a reach of 15+ million elite tech professionals. The company’s new, proprietary theCUBE AI Video cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.
