IBM deal will raise Lenovo’s EMEA profile: IDC

Research firm shares insights on what Chinese vendor’s x86 foray will mean for region

Tags: ChinaIBM (www.ibm.com)International Data CorporationLenovo GroupMergers and acquisitionsUSA
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IBM deal will raise Lenovo’s EMEA profile: IDC Lenovo will inherit IBM’s number-three position in x86 servers after HP and Dell, with a market share of 13% and revenue of around $900m.
By  Stephen McBride Published  January 26, 2014

Technology market research company, International Data Corporation (IDC) believes Lenovo's recently announced acquisition of IBM's low-end server business unit could mean a considerable elevation of its brand in the Europe, Middle East and Africa (EMEA) region.

"In EMEA, IBM is the third largest supplier of x86 servers after HP and Dell, with a market share of 13% and revenue of around $900m in [the first three quarters of 2013]," said Giorgio Nebuloni, research manager, Servers, IDC Europe.

"In its before-acquisition status, Lenovo had less than 1% market share in EMEA in both units and revenue. This means that a new top-three vendor is potentially born out of this deal as far as Europe and EMEA is concerned."

IDC believes that, for EMEA, the deal will mean Lenovo will acquire a solid customer base, skilled sales force, channel relationships, and brand recognition. Because integrated solutions such as PureSystems and blades are included in the deal, Nebuloni believes Lenovo will become a more attractive brand to potential large customers.

"For competitors like Dell and HP, this could potentially mean stronger competition in SMB environments, where IBM had been less aggressive in the past, especially given that Lenovo has experience in building and growing an acquired business in the form of IBM's PC unit," said Nebuloni.

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