Lenovo, now famous for purchasing IBM's desktop and laptop line in 2004 is seeking to expand its product mix. IBM is seeing little growth in the server market, mainly because of virtualization which allows businesses to harness more power with less hardware. Staying true to past practice, IBM foresees little growth in the x86 server industry and is now seeking to shed this division at the same time Lenovo wants to expand its product mix. HP and Dell are the only other major competitors in this market both of which are experiencing similar issues. IBM's market capitalization in servers is about $4.5 billion. The company is only seeking to sell its low to mid end line, they will still keep the high end and mainframe market according to the article in WSJ.This article was of interest because IBM shocked the industry when it sold the desktop and laptop line to a small company no one has ever heard of. Its interesting to see how Lenovo continues to expand its product offerings through acquisitions.
http://online.wsj.com/article/SB10001424127887323809304578431160192440582.html?KEYWORDS=lenovo+is+in+talks+to+acquire&cb=logged0.3860341673552695#articleTabs%3Darticle
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