Point of View

IBM Exits the Low-End Server Business to Re-Focus on Big Enterprise Services

Nine years after spinning off its PC business to establish Lenovo, IBM has finally divested its low-end server business to the same firm to raise capital for investments in other cloud-related initiatives.  With the mass commoditization of the server business and the decreasing power of brand in computing hardware, HfS sees this move as long overdue.  IBM was likely holding out for a much more favorable price and has finally decided to move on from the low-end hardware business before its price erodes yet further.

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