Lenovo Group’s $2.3 billion deal to purchase IBM’s low-end, commodity x86 Server portfolios, related resources and operations is an all-around win for everyone involved. The sale of the IBM x86 servers has been rumored for well over a year, as Big Blue grappled with continuing pressure on its low-margin x86 servers. In its most recent quarter, IBM’s revenue dropped 5.5 percent to $27.7 billion. Slumping hardware sales was the chief culprit for the revenue miss. IBM’s x86 server sales declined by 16 percent in the fourth fiscal quarter alone.
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IBM, Lenovo Deal Is All About Winning
Posted by: Laura DiDio January 31, 2014 05:00 AMLenovo Group’s $2.3 billion deal to purchase IBM’s low-end, commodity x86 Server portfolios, related resources and operations is an all-around win for everyone involved. The sale of the IBM x86 servers has been rumored for well over a year, as Big Blue grappled with continuing pressure on its low-margin x86 servers. In its most recent quarter, IBM’s revenue dropped 5.5 percent to $27.7 billion. Slumping hardware sales was the chief culprit for the revenue miss. IBM’s x86 server sales declined by 16 percent in the fourth fiscal quarter alone.