Sunday, April 21, 2013

IBM's x86 exit may shake up market and rivals

IBM's reported interest in selling parts of its x86 server business to Lenovo may bring major changes to the global market.

IBM is the third-largest seller of x86 servers by factory revenue, with 15.7 percent of the global market in 2012, according to IDC. That represents $5.6 billion for a company that earned $104.5 billion in revenue last year.

IBM's share of the x86 server segment has declined over the last several years. In 2010, it had 17.4 percent of the market and $5.5 billion in revenue.

By divesting at least part of its x86 server line, IBM gains additional investment dollars that it can spend on its higher margin efforts, especially its analytics and business intelligence, putting more pressure on rivals in these areas.

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Source: http://www.computerworld.com/s/article/9238537/What_IBM_s_x86_exit_may_mean_for_rivals_#tk.rss_all

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