Lenovo aims at toppling rivals in the server market

Lenovo's IBM x86 server business purchase has given the Chinese vendor a foothold in the market

The Lenovo logo.

The Lenovo logo.

Following its IBM x86 server business acquisition, Lenovo plans on attacking the enterprise hardware arena with low-cost products to undercut the competition.

"We can give a better cost solution to enterprise companies," said Lenovo Executive Vice President Gerry Smith in a press briefing in Beijing.

The Chinese vendor is preparing to offer a wide range of products, targeting markets including supercomputing and hyperscale servers for data centers. "We're going to play in every segment," Smith said.

Lenovo last year bought IBM's x86 server business as a way to drive company growth. The deal helped make the Chinese vendor the world's fourth largest server vendor in this year's first quarter, with a 7.5 percent share, according to research firm IDC. A year ago, Lenovo had only a 1.1 percent share.

Competition in the server market, however, remains fierce. Not only does Lenovo have to contend with HP and Dell -- entrenched rivals that lead the market -- but also emerging Taiwanese manufacturers that are selling to hyperscale datacentre customers.

Meanwhile, the company also has a lot of work to do to establish itself. It's developing a brand for its enterprise systems while integrating employees acquired in the IBM server business purchase

But Lenovo, which ranks as the world's largest PC maker, does not seem intimidated by the other server players. Smith said he is confident Lenovo can replicate the success it's had in PCs. He pointed to how Lenovo has a highly efficient supply chain, including its own factories, that will help save on costs and bring products to market quickly.

"We can also put a lot of pressure on the number one, and number two players, and the players in the hyperscale space," he said.

The company also sees a future in ARM servers, which can offer a power-efficient alternative to Intel-based x86 servers. In February, Lenovo announced a prototype ARM system.

Hyperscale server customers are demanding low-power servers, Smith said. "We are absolutely exploring opportunities with ARM," he added.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issuesservershardware systemsLenovoMergers and acquisitions

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?