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Chinese PC maker Lenovo buys IBM server business for $2.3 billion

Chinese PC maker Lenovo buys IBM server business for $2.3 billion 

While it appears Lenovo is gobbling up the last of IBMs hardware business, IBM will actually retain its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, and PureApplication and PureData applicances.

IBM will also continue developing Windows and Linux software for the x86 platform, but the companies will enter an OEM/reseller relationship for IBM’s Storwize disk storage systems, tape storage, General Parallel Fire System software, SmartCloud Entry, and elements of IBM’s system software portfolio.

IBM has made a slew of investments recently, including $1 billion in its Watson Group and $1.2 billion to expand its worldwide cloud computing footprint.

This acquisition only adds to the history these two companies share. In 2005, Lenovo bought IBM’s personal computer business for $1.25 billion, propelling the Chinese company into US markets and making it one of the world’s largest computer manufacturers along with HP and Dell.

Since then Lenovo has since grown to become the world’s biggest PC manufacturer by market share. While it currently has a server and storage business, it should benefit in a similar way to how it once did from the previous IBM deal: by gaining new technology and expertise.

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