|By Greg Schulz||
|January 23, 2014 08:23 PM EST||
Lenovo buys IBM's xSeries aka x86 server business, what about EMC?
By Greg Schulz
Lenovo buys IBM's xSeries x86 server business for $2.3B USD, what about EMC?
Once again Lenovo is new owner of some IBM computer technology, this time by acquiring the x86 (e.g. xSeries) server business unit from big blue. Today Lenovo announced its plan to acquire the IBM x86 server storage business unit for $2.3B USD.
Research Triangle Park, North Carolina, and Armonk, New York January 23, 2014
Lenovo (HKSE: 992) (ADR: LNVGY) and IBM (NYSE: IBM) have entered into a definitive agreement in which Lenovo plans to acquire IBMs x86 server business. This includes System x, BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, blade networking and maintenance operations. The purchase price is approximately US$2.3 billion, approximately two billion of which will be paid in cash and the balance in Lenovo stock.
IBM will retain its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, and PureApplication and PureData appliances.
If you recall (or didn't’t know) around a decade or so ago IBM also spun off its Laptop (e.g. Thinkpads) and workstation business unit to Lenovo after being one of the early PC players (I still have a model XT in my collection along with Mac SE and Newton).
What this means for IBM?
What this means is that IBM is selling off a portion of its systems technology group which is where the servers, storage and related hardware, software technologies report into. Note however that IBM is not selling off its entire server portfolio, only the x86 e.g. Intel/AMD based products that make up the xSeries as well as companion Blade and related systems. This means that IBM is retaining its Power based systems (and processors) that include the pSeries, iSeries and of course the zSeries mainframes in addition to the storage hardware/software portfolio.
However as part of this announcement, Lenovo is also licensing from IBM the Storwize/V7000 technology as well as Tape, GPFS based scale out file systems used in SONAS and related products that are part of solution bundles tied to the x86 business.
Again to be clear, IBM is not selling off (or at least at this time) Storwize, tape or other technology to Lenovo other than x86 server business. By server business, this means the technology, patents, people, processes, products, sales, marketing, manufacturing, R&D along with other entities that form the business unit, not all that different from when IBM divested the workstation/laptop aka PC business in the past.
What this means for Lenovo?
What Lenovo gets are an immediate (once the deal closes) expansion of their server portfolio including high-density systems for cloud, HPC as well as regular enterprise, not to mention also for SME and SMB. Lenovo also gets blade systems as well as converged systems (server, storage, networking, hardware, software) hence why IBM is also licensing some technology to Lenovo that it is not selling. Lenovo also gets the sales, marketing, design, support and other aspects to also expand their server business. By gaining the server business unit, Lenovo will now be in a place to take on Dell (who was also rumored to be in the market for the IBM servers), as well as HP, Oracle and other x86 system based suppliers.
What about EMC and Lenovo?
Yes, EMC, that storage company who is also a primary owner of VMware, as well as partner with Cisco and Intel in the VCE initiatives, not to mention who also entered into a partnership with Lenovo a year or so ago.
In case you forgot or didn't’t know, EMC after breaking up with Dell, entered into a partnership with Lenovo back in 2012.
This partnership and initiatives included developing servers that in turn EMC could use for their various storage and data appliances which continue to leverage x86 type technology. In addition, that agreement found the EMC Iomega brand transitioning over into the Lenovo line-up for both domestic North America, as well as international including the chinese market. Hence I have an older Iomega IX4 that says EMC, and a newer one that says EMC/Lenovo, also note that at CES a few weeks ago, some new Iomega products were announced.
In checking with Lenovo today, they indicated that it is business as usual and no changes with or to the EMC partnership.
Via email from Lenovo spokesperson today:
A key piece to Lenovo's Enterprise strategy has always included strong partnerships. In fact today's announcements reinforce that strategy very clearly.
Given the new scale, footprint and Enterprise credibility that this server acquisition affords Lenovo, we see great opportunity in offering complimentary storage offerings to new and existing customers.
Lenovo's partnership with EMC is multifaceted and stays in-tact as an important part of Lenovo's overall strategy to offer customers compelling solutions built on world-class technology.
Lenovo will continue to offer Lenovo/EMC NAS products from our joint venture as well as resell EMC stand-alone storage platforms.
IBM Storwize storage and other products are integral to the in-scope platforms and solutions we acquired. In order to ensure continuity of business and the best customer experience we will partner with IBM for storage products as well.
We believe this is a great opportunity for all three companies, but most importantly these partnerships are in place and will remain healthy for the benefit for our customers.
Hence it is my opinion that for now it is business as usual, the IBM x8x business unit has a new home, those people will be getting new email addresses and business cards similar to how some of their associates did when the PC group was sold off a few years ago.
Otoh, there may also be new products that might become opportunities to be placed into he Lenovo EMC partnership, however that is just my speculation at this time. Likewise while there will be some groups within Lenovo focused on selling the converged Lenovo solutions coming from IBM that may in fact compete with EMC (among others) in some scenarios, that should be no more and hopefully less than what IBM has with their server groups at times competing with themselves.
What does this mean for Cisco, Dell, HP and others?
For Cisco, instead of competing with one of their OEMs (e.g. IBM) for networking equipment (note IBM also owns some of its own networking), the server competition shifts to Lenovo who is also a Cisco partner (its called coopitition), and perhaps business as usual in many areas. For Dell, in the mid-market space, things could get interesting and the Round Rock folks need to get creative and beyond VRTX.
For HP, this is where IMHO it's going to get really interesting as Lenovo gets things transitioned. Near-term, HP could have a disruptive upper hand, however longer-term, HP has to get their A-Game on. Oracle is in the game as are a bunch of others from Fujitsu to SuperMicro to outside of North America and in particular china there is also Huawei. Back to EMC and VCE, while I expect the Cisco partnership to stay, I also see a wild card where EMC can leverage their Lenovo partnership into more markets, while Cisco continues to move into storage and other adjacent areas (e.g. more coopitition).
What this means now and going forward?
Thus this is as much about enterprise, SME, SMB as it is HPC, cloud and high-density where the game is about volume. Likewise there is also the convergence or data infrastructure angle combing server, storage, networking hardware, software and services.
One of the things I have noticed about Lenovo as a customer using ThinkPads for over 13 years now (not the same one) is that while they are affordable, instead of simply cutting cost and quality, they seem to have found ways to remove cost which is different then simply cutting to go cheap.
Case in point about a year and a half ago I dropped my iPhone on my Lenovo X1 keyboard that is back-lit and broke a key. Calling Lenovo after trying to find a replacement key on the web, they said no worries and next morning a new keyboard for the laptop was on my doorstep by 10:30Am with instructions on how to remove the old, put in the new, and do the RMA, no questions asked (read more about this here).
The reason I mention that story about my X1 laptop is that it ties to what I'm curious and watching with their soon to be expanded new server business.
Will they go in and simply look to reduce cost by making cuts from design to manufacturing to part quality, service and support, or, find ways to remove complexity and cost while providing more value?
Now I wonder whose technology will join my HP and Dell systems to fill some empty rack space in the not so distant future to support growth?
Time will tell, congratulations to Lenovo and the IBMers who now have a new home best wishes.
Ok, nuff said
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
Jan. 30, 2015 10:00 PM EST Reads: 4,450
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
Jan. 30, 2015 03:45 PM EST Reads: 4,366
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
Jan. 30, 2015 03:15 PM EST Reads: 5,136
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 30, 2015 02:30 PM EST Reads: 4,542
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
Jan. 30, 2015 02:15 PM EST Reads: 5,282
In this Women in Technology Power Panel at 15th Cloud Expo, moderated by Anne Plese, Senior Consultant, Cloud Product Marketing at Verizon Enterprise, Esmeralda Swartz, CMO at MetraTech; Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems; Seema Jethani, Director of Product Management at Basho Technologies; Victoria Livschitz, CEO of Qubell Inc.; Anne Hungate, Senior Director of Software Quality at DIRECTV, discussed what path they took to find their spot within the technology industry and how do they see opportunities for other women in their area of expertise.
Jan. 30, 2015 01:45 PM EST Reads: 3,768
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
Jan. 30, 2015 01:15 PM EST Reads: 3,108
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
Jan. 30, 2015 01:15 PM EST Reads: 4,376
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
Jan. 30, 2015 01:00 PM EST Reads: 6,152
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise behind this presentation will provide attendees with a leading edge view of rapidly emerging IoT oppor...
Jan. 30, 2015 12:45 PM EST Reads: 2,903
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
Jan. 30, 2015 12:45 PM EST Reads: 2,581
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Jan. 30, 2015 12:00 PM EST Reads: 10,640
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
Jan. 30, 2015 12:00 PM EST Reads: 4,523
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
Jan. 30, 2015 11:45 AM EST Reads: 4,640
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 30, 2015 11:45 AM EST Reads: 4,960
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
Jan. 30, 2015 11:30 AM EST Reads: 3,728
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
Jan. 30, 2015 11:30 AM EST Reads: 4,906
ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ -- IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...
Jan. 30, 2015 11:15 AM EST Reads: 5,185
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
Jan. 30, 2015 11:00 AM EST Reads: 3,936
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
Jan. 30, 2015 10:45 AM EST Reads: 4,738