Shulou(Shulou.com)06/03 Report--

Sina Science and Technology News on the morning of October 12th, Zhou Deliang, global general manager of Lenovo's massive server business, revealed at the 2014 Global Internet Technology Conference held a few days ago that after the acquisition of IBM X86 server business, Lenovo will maintain the operation of ThinkServer and System X dual brands, each with a clear market focus.

On October 1st, Lenovo Group officially announced the acquisition of IBM X86 server business for US $2.1 billion. This makes Lenovo the third largest server manufacturer in the world after Dell and Hewlett-Packard. Yang Yuanqing, CEO of Lenovo Group, has high hopes for the server business, expressing the hope that this part of the business can reach 5 billion US dollars in sales within a year.

In an exclusive interview with Sina Technology at the 2014 Global Internet Technology Conference held a few days ago, Zhou Deliang said that Lenovo has formulated an overall development strategy and Lenovo will maintain the brands of ThinkServer and System x server business for a long time in the future.

Zhou Deliang revealed that in the future, ThinkServer server business will focus on the non-core business of large Chinese enterprises, such as providing low-cost and large-scale products for Internet enterprises, with more emphasis on performance-to-price ratio, while System x is defined as global large enterprises and private clouds to provide services, relying on value-added and innovation to win.

Zhou Deliang said that as the acquisition has just been completed, Lenovo does not yet have specific data on the business acquired in China, but in the future development, China will be the main revenue contribution market for Lenovo's business. "like Lenovo's PC business, China will carry the backbone and carry a heavy burden in the future."

After the integration of IBM x86 business, Lenovo's server product line will continue to enrich. However, due to fierce competition, the profits of server products in the entire industry are also gradually declining, which brings challenges to Lenovo to achieve profitable growth in the server business.

Zhou Deliang frankly admitted that in the server industry, the competitive behavior of some manufacturers is somewhat irrational, sometimes competing for users at a loss. However, he said Lenovo already had a solid plan to respond.

He further said that in the future development, Lenovo will innovate and continue to increase the added value of its products; at the same time, the advantage of excellent operation of Lenovo has greatly improved the efficiency and cost of this part of the business.

Zhou Deliang also revealed that after expanding the scale of its hardware business, Lenovo will increase revenue related to services, such as after-sale operation and maintenance services, value-added services, etc., so that services can become a source of profit. (reporter: Zhang Liang)

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