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

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For Lenovo: Converged Infrastructure

Once the deal closes, Lenovo will be knocking on enterprise account doors, and knocking heads with HP and Cisco, with a new converged infrastructure business.

Converged infrastructure, which combines server, storage and networking resources under a single management solution, is a fast-growing business. IDC in October reported second-quarter 2013 revenue for the worldwide converged infrastructure market grew 50.2 percent over revenue for second-quarter 2012 to reach $1.3 billion.

Lenovo's future in this market will come from IBM's Flex System converged infrastructure family of blade servers with integrated storage and server technologies. Lenovo will gain IBM's x86-based Flex technology, but not its Power-based Flex.

All the major server vendors already have converged infrastructure plays, including Cisco UCS, Dell PowerEdge VRTX and other offerings, HP Converged Systems, and others.


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