Lenovo Plans Server Range

Giving one almost a sense of deja vu, Lenovo recently announced that it would be entering the server business by licensing x86 server technology from IBM. Lenovo, which does not sell servers outside of China, is entering a brand new arena of business and plans to distribute their servers to small and mid-sized businesses around the world within the next year.

The Lenovo servers are to be based on IBM’s System x technology but will be sold under the Lenovo brand. According to Tim Breuer, a spokesman from IBM, the computer giant will continue to distribute System x servers under its own brand name, as well. Breuer added that IBM was not worried about competition from Lenovo and that in fact, IBM welcomed the deal since it boosted the company’s licensing and financing business.

IBM and Lenovo have been partners since Lenovo bought IBM’s PC business for US$ 1.25 billion in 2004. Lenovo’s existing customer network of smaller companies with fewer than 500 employees is the main target of this new venture and IBM hopes that these companies will provide IBM with a natural global extension to their existing server distribution channels.