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IBM willing to sell its x86 server business to Lenovo?

Lenovo and IBM are in talks over the future of the x86 server hardware business of the latter. CRN published a report that claims several sources “with knowledge of the situation” say IBM wants to offload this business line for around $5-$6bn.

The Chinese technology giant is said to be the “top candidate” which would mean that there are other potential suitors (although other than Huawei, Cisco, HP, Dell and Oracle, we fail to see who would have pockets deep enough to see that acquisition through).

The deal would include IBM’s popular System X series which comprises of AMD and Intel-based blade, rack and tower servers. Lenovo currently has the upper hand because it is not seen as being a threat to the other remaining parts of Big Blue’s business.

More specifically, CRN said, Lenovo doesn’t (yet) have a storage, networking or converged infrastructure business onboard… yet. Intriguingly, a separate source has told CRN that IBM has already taken the decision to offload its server business to Lenovo and has informed employees of its PE lab that they will become Lenovo employees from 1 June 2013.

Lenovo acquired IBM’s Personal Computer arm back in 2005 and recently acquired German-based Medion as well as NEC’s PC business.

Desire worked at ITProPortal right at the beginning and was instrumental in turning it into the leading publication we all know and love today. He then moved on to be the Editor of TechRadarPro - a position he still holds - and has recently been reunited with ITProPortal since Future Publishing's acquisition of Net Communities.