Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

PC rivalry extends to servers: Lenovo aims to topple HPE, Dell

Agam Shah | March 23, 2016
Lenovo is looking at new hardware designs, lower costs and software partnerships to expand in server market

Right now Intel chips dominate the market. But there is a growing interest in ARM architecture, especially for cloud applications, and IBM is pushing its Power architecture aggressively in China. Smith didn't comment on whether the company would support Power, which was retained by IBM and not sold to Lenovo during the 2014 x86 server acquisition transaction.

Smith also didn't comment on whether Lenovo would acquire companies to supplement its server business, which has been the strategy of HPE and Dell.

Lenovo would rather partner and retain flexibility in its server offerings than tying customers up to specific technologies, Smith said.

Lenovo still doesn't have as wide a range of server offerings as HPE, which offers mission-critical servers and systems like Moonshot for hyperscale environments. Lenovo also lacks a full-fledged consulting unit to serve customers.

Dell and HPE are also emerging more as software companies, with servers acting as a front to sell applications, which generate better margins. Servers with x86 chips are commodity parts, and it remains to be seen whether Lenovo can squeeze huge profits from them.

But Smith believes Lenovo's best days in servers are ahead.

"We've always thought this business was fantastic," Smith said.

 

Previous Page  1  2 

Sign up for CIO Asia eNewsletters.