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Tuesday, December 24, 2013
Lenovo Rumored To Buy IBM's Server and Storage Business

IBM's server and storage business is not in a good shape, raising questions about the company's future and a possible acquisition of its specific units to Lenovo.

An executive of a big storage company hinted that Lenovo could be a possible buyer for IBM's problematic units as the Chinese company is is searching to evolve its portfolio in enterprises.

Lenovo acquired the IBM's PC business in 2005 for $1.75 billion.

A possible new acquisition could help Lenovo directly compete with EMC,despite the fact that the two companies have a common subsidiary, LenovoEMC (formerly Iomega).

International Business Machines Corp. has been also rumored to be in talks with Lenovo in the past, in order to sell its so-called x86 server business. News of the talks had surfaced after IBM had reported a disappointing quarter, with weak hardware sales.

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