Gerry Smith to Partners: Blue Skies Ahead for Lenovo and System x

Guest blog by Gerry Smith, Executive Vice President, President of Enterprise Business Group and the Americas.

Just two weeks ago, Lenovo’s pending $2.3 billion transaction to purchase IBM’s System x server business was approved by the Committee on Foreign Investment in the United States (CFIUS). We look forward to closing the transaction, but many channel partners, clients and customers may be wondering: what’s next?

We have bold plans for future growth with this acquisition, and IBM’s x86 employees and products are an important part of that. With the integration of IBM’s System x product portfolio, Lenovo will immediately become the number three server manufacturer in the world, combining IBM’s technology with our operational excellence to deliver an unparalleled customer and partner experience. We’ll be able to offer a complete end-to-end set of enterprise and PC targeted offerings, giving our partners an opportunity to broaden their portfolios and better serve their customers. Analyst Rob Enderle points out, “Given the fact that Lenovo successfully acquired the IBM PC business and changed it from market laggard to market leader, the positive outcome (for the IBM merger) is near certain.”

This acquisition is a natural extension of the long-term partnership we established with IBM in 2005 after the purchase of its PC business. By leveraging an efficient and proven business model, we became #1 in the PC industry within a decade. We’ve shown what we can do when Lenovo invests in great technology and brands and we expect to be just as successful in the x86 business worldwide.

Lenovo ThinkServers

“Given [Lenovo’s] past ventures,” says analyst Charles King of Pund-IT, Inc, “success seems likely. It would be a mistake to undervalue the human and technological assets the company will gain from this deal with IBM…the future with Lenovo looks like blue skies ahead.”

For additional third party insight and to learn more about how Lenovo is on track to become a market leader in the x86 server business, please see these recent analyst reports:

Pund-IT, Inc: IBM/Lenovo Deal for System x Gains CFIUS Approval
The Enderle Group: Lenovo and IBM x86: FUD and the Strategic Advantages of Buying from Lenovo
Moor Insights and Strategy: IBM-Lenovo Server Agreement Basically A Done Deal