The Impact: Government Sales
Watch the doors of U.S. federal government agencies close to IBM's x86 servers once they belong to Lenovo.
Analyst firm Sterne Agee Tuesday wrote in a research report that there is a general emerging thesis that the U.S. government cannot buy Chinese-made computer equipment due to security concerns.
The sale to Lenovo would likely benefit such vendors as Dell, HP and SGI, "especially within more sensitive U.S. federal agencies," Sterne Agee wrote. Cray and other providers of high-performance computing equipment typically built on x86 systems could also benefit.
"From a numbers perspective, the high performance compute server market is roughly $11 billion a year (separate from the commercial server markets) and IBM owns about 30 percent of the $11 billion [market]. HPC is highly concentrated with government verticals so the impact could be noticeable over time for smaller vendors," Sterne Agee wrote.