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Lenovo gets into the server game

by Scott Bicheno on 17 September 2008, 14:52

Tags: Lenovo

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Good thinking

Three years or so since buying IBM's PC division, Chinese system builder Lenovo is now taking it on in the server market. At least that's how it seems on first inspection, but read on.

Lenovo has globally launched a family of servers called ThinkServer, which is aimed at the small and medium sized business (SMB) sector - i.e. those with up to 500 employees.

The aim seems to be to provide "an out-of-the-box solution" for small businesses that can't get their head around setting up and managing a server environment themselves.

IBM's main server activity is further up the corporate food chain and all these new Lenovo products are based on x86 server technology licensed from IBM itself.

So, far from being alarmed by this development, IBM appears to have sanctioned it. By licensing the technology to Lenovo, IBM gets to profit from the SMB space without having to actively participate in it.

Also, let's not forget that IBM got an 18.9 percent stake in Lenovo in return for the selling it the PC division back in 2004/5, so has a major interest in Lenovo's success.

The ThinkServer products start at $749 and will be available starting 30th September from Lenovo channel partners.