When IBM sold its desktop and laptop PC business to Lenovo nine years ago, it held on to its x86-based server business. But now, IBM doesn’t see the x86 server business as a growth area anymore, and now they’re interested in selling that to Lenovo, too.
Here’s a disconcerting little tidbit: While IBM’s x86 server sales dropped 9%, its mainframe sales increased 7%. Mainframes were supposed to be on their way out in the 1980s. We can’t quit mainframes, and that’s why IBM hung on to that business.
It’s possible that it just means there are too many companies producing x86 servers. It’s also possible that companies would prefer to buy both their server-room and end-user hardware from the same vendor, so reuniting the two businesses under Lenovo’s ownership might prop the server business up a bit more.
But the analysts cited in the Ars Technica article suggest that the IT sector as a whole is slowing down, and IBM’s server business troubles are just an indication of that.