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Lenovo: The challenge is to focus on moving towards the PC+ era

Sathya Mithra Ashok | April 7, 2014
As Lenovo pushes into the consumer market in the A/NZ, Matt Codrington, MD of Lenovo A/NZ talks about the shape of things to come.

Sales automation tools such as Salesforce.com and the various choices out there around those sorts of mobile enablers also give us an opportunity to drive better efficiencies in organisations.

Q: Where do you see Lenovo fit into the managed desktop scenario?
MC: I would like to see the partners drive essentially the end-to-end solution. I think we can provide the hardware in that. We have the ability to help small resellers with financing options, or with programs. The value add has to come from the reseller base for us, since we are a channel centric organisation.

I would love to work with partners that either have a vertical solution in a certain space, be it healthcare, manufacturing whatever, but then a broader solution as well to give larger companies that flexibility. There is an opportunity for them to go and do that, and we would act as a support mechanism and hardware vendor for that.

In the past we have done a couple of managed desktop rollouts.

Q: What are the main challenges for Lenovo going forward?
MC: A challenge for the industry in general is that over time we have seen declining margins in the products as commoditisation sets in. The market itself is flat at best. So I think the challenge for me is to make sure that we are clearly focused on moving towards what we call the PC+ era.

The PC will continue to be the cornerstone or bedrock for our business. It is still a multi-billion dollar global business. So we will remain heavily invested there. But then in the next five years it is about what happens next, and some of our recent acquisitions belie the fact that we are clearly focused on smartphone and tablet space. So the question would be, how do we grow those areas?

When I look at some of my competitors, we have not been that invested in the enterprise space. Whether that be server or services, I think we can have a value proposition to our partners by engaging them to drive up the service side. The IBM x86 server business takes us from number 6 to number 3 globally. We get scale out of there and I can go drive some investment as well.

We get to be more of a serious player in that enterprise space which will drive opportunity for us. The integration is going to be a challenge. But we have got some great history there. We have got a recent rich history of being successful of driving those integrations.

So I don't have any concerns there but it is going to be a big job.

 

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