What Could The IBM-Lenovo Deal Mean For The Server, Storage Industries?


Gone From IBM: Commodity Servers

Under the terms of the deal, which will still require much government scrutiny before it closes, IBM is selling its entire x86-based server portfolio to Lenovo.

This includes System x, BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, blade networking, and maintenance operations.

For IBM, this will result in a hit to top-line revenue, but an improvement in the bottom line.

IBM's x86 server business has an annual revenue of $4.6 billion, the company wrote Thursday in an SEC filing. However, it posted a post-tax loss of $26.4 million for the 12 months ended Dec. 31, Reuters reported. That compared to a $187 million profit in the 12 months ended March 2013, Reuters wrote.

 



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