Lenovo to buy IBM's low-end server unit for $2.3 billion

Comments (12)
UScitizentoo wrote:

And another American asset falls to the military communist chinese thanks to the fascists in congress. Corporate servers owned by the communist chinese. The inevitable outcome of a fascist congressional agenda to sell the American worker down the river. Too bad the congressional policy of eat your seed stock for short term profit and political contributions happens to destroy American business. Funny how that works. Hilarious.

Jan 23, 2014 12:08am EST  --  Report as abuse
Montpessat wrote:

To UScitizentoo
CEO’s dispatching jobs to China again.

Jan 23, 2014 5:25am EST  --  Report as abuse
Kailim wrote:

In America CEOs are accountable to the boards and their job is to make money for shareholders. Well, its server business is losing money, I don’t think IBM’s board of directors has many options. Selling a broke business for $2.3 billion seems to be the best deal for shareholders, I think most of them are Americans.

Jan 23, 2014 8:01am EST  --  Report as abuse
willich6 wrote:

Chinese capital is much more ‘patient’ than the US thinking in terms of decades vs quarters. Unlike western companies, the Chinese are willing to accept sub-par returns for years to build market dominance; with the primary stockholder/lender being the Chinese government they have that latitude. They just don’t have the same focus on the bottom line and on this quarter or year.
Lenovo can turn this around by concentrating on the chinese server market first and use government ‘clout’ to rapidly increase market share there at the ‘expense’ of other western server companies. If China wants this to be successful, it will be.
I’m sure the $2B they are using to buy the ibm business are ‘soft’ loans from a chinese govt sponsored investment bank with very favorable terms. Its really a ‘no lose’ proposition from their viewpoint; Uncle Mao wont let them to fail.

Jan 23, 2014 8:35am EST  --  Report as abuse
Tiu wrote:

@UScitizentoo, companies like IBM etc are multi-national not American. They pervert democracy everywhere with their New World Order mantra, which by definition will mean the end of America’s (although they might keep the facade going) and all other governments that agree to global corporate dictatorship.

Jan 23, 2014 9:06am EST  --  Report as abuse
tmc wrote:

Haven’t you all heard of Cloud computing? No one will be selling “servers” to anyone as they are all moved to the Cloud datacenters. IBM just announce a $1.2 billion investment… http://www.reuters.com/article/2014/01/17/us-ibm-datacenters-idUSBREA0G05P20140117

PC’s were dead, now servers, it’s just tech evolution. IBM can’t play in the left overs. It has to stay with the new big stuff.

Jan 23, 2014 10:06am EST  --  Report as abuse
WestFlorida wrote:

It would not surprise me if Lenovo could operate this IBM unit more profitably that the current IBM management.

Jan 23, 2014 10:48am EST  --  Report as abuse
Randy549 wrote:

Many of IBM’s employees are already in China, so this transaction is largely just changing the name on the sign in front of the buildings. IBM is not an American company and hasn’t been for years. Less than 20% of its employees are based out of the U.S. now.

Jan 23, 2014 11:04am EST  --  Report as abuse

This IBM senior management team more than any of the previous is absolutely clueless. So much so that CEO had to ‘recommend’ not taking bonuses for executives. That implies that they somehow qualified for them despite not making corporate business goals. Drunk and disorderly to say the least.

Jan 23, 2014 11:27am EST  --  Report as abuse
hmdenver wrote:

There was no American Asset…All the SystemX servers sold by IBM were made in Taiwan very few IBM employees actually were involved in selling these servers, most of those were channel assets that were Contractors to IBM…IBM neither supported or invested in this market, because it was 2 point margin…selling a Cloud based service to do the same job as a hundred servers made in Taiwan makes IBM about 40 points…so the American Asset gets stronger.(IBM) ..and Lenovo, the Chinese company, will now employ many many more American employees to go out and sell these servers,,,just like they hired hundreds of additional employees to go sell Thinkpads in 2005….

This server business was not an American Asset,,,

Jan 23, 2014 4:24pm EST  --  Report as abuse
WhyMeLord wrote:

The worm has turned.
We are being consumed by the worm.
The worm will continue to feed as long as he lives.

Jan 23, 2014 4:35pm EST  --  Report as abuse
yurakm wrote:

1. I used to work with IBM X5 servers. Though they definitely are not mainframes, the servers are as high end as it is possible when designing around Intel 64-bit architecture.
2. IBM just announced a new generation of the servers, X6.
3. Speaking about clouds: cloud data centers are big warehouse-like buildings with acres of higher-end commodity servers, power supply units, network communication gear and air condition. It is very likely that for its new cloud centers, IBM is going to buy the servers from Lenovo.

Jan 23, 2014 5:23pm EST  --  Report as abuse
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