Lenovo, CDW-G Score Big At State

Lenovo is proving that it's not just a notebook company by providing the State Department with more than 16,000 desktops and related equipment in a massive refresh worth more than $13 million.

"In fact, by leveraging the cost savings CDW-G provided and our substantial integration and deployment capacity, the State Department was able to expand its technology refresh effort, purchasing approximately 3,000 more systems than originally planned," says Max Peterson, vice president of federal sales at CDW-G.

CDW-G, a government IT integrator and supplier, landed the deal with the State Department under the federal government's Global Information Technology Modernization initiative. The contract calls for CDW-G to deliver 15,000 Lenovo ThinkCentre M51 desktops and large-format LCD displays, and another 1,000 Lenovo ThinkCentre M51 mini-towers with high-performance removable hard drives. CDW-G will deliver more than 500 units a week through mid-April.

"This announcement underscores the value that CDW-G and Lenovo provide to federal agencies and other customers in the public sector," said Scott Smith, vice president and general manager, Lenovo Americas, in a statement. "With Lenovo's stable platform of PCs, built-in security features and technology tools that automatically back up and protect data, the State Department has access to the most innovative, cost-effective and secure PC technology available."

Lenovo, a Chinese-owned company, purchased IBM's Personal Computing division last year for $13 billion. Under the direction of its new CEO, William Amelio, the company last week announced a massive restructuring plan and new channel program. It's relocating its headquarters to North Carolina and laying off nearly 5 percent of its global workforce. At the same time, its new channel initiative aims to recruit nearly 5,000 new partners.

Under the merger agreement, Lenovo has the right to use the IBM brand through 2010. However, the company is rapidly pursuing plans to establish its own brand recognition in the United States and global markets. The company, currently in third-place in notebook sales, wants to control 10 percent of the PC and notebook market by 2008.