IBM is considering selling its x86 server business. As a low-end server, x86 server is used by many companies and cloud computing data centers. It's unclear how much IBM will sell the business, but a source said the final price could reach billions of dollars.
It's not clear how IBM and Lenovo are progressing in the negotiations, or whether the deal will eventually be reached. If IBM decides to sell the x86 server business, it means that IBM believes that the x86 server has become a cheap commodity and cannot bring enough profit margin. X86 server is an important business of HP and Dell.
In the past, IBM has made many major adjustments to its business, transforming it into a business with higher growth rate and profit margin. In 2004, IBM sold its PC business to Lenovo before PC was finally commercialized cheaply, which shocked the industry. Subsequently, IBM strengthened its high margin software and consulting business.
Selling the low-end server business is in line with IBM's strategy. Virginia rometty, IBM's new CEO, is looking for ways to drive revenue and profit growth. If IBM sells the x86 server business, it will be the first major asset sale since Luo Ruilan took office. (