IBM Might Sell Small Server Business
The Wall Street Journal and other sources reports that IBM is resuming its attempts to sell its low-end server business. According to several reports, IBM tried to sell the x86 server business to Lenovo a year ago, but the two parties couldn't come to an agreement. Now it appears the two companies are back in negotiations.
Lenovo is the Chinese tech giant that purchased the IBM PC division several years ago. Spreading into the server space is a natural fit for Lenovo, with its specialty in high-end laptops and workstations for business customers. One can only imagine that Lenvovo is offering a fairly low-end price for IBM's low-end server business. Many experts believe the rise of cloud computing will lead to a significant contraction in the small server business. At the same time, Lenovo has to go somewhere, with the laptop an PC business is collapsing even faster in the wake of the mobile revolution.
Some reports indicate that Dell and other vendors might also be biding on IBM's small server business.
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