Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.

Cloud-bound IBM wants to offload low-end servers
Posted on 21-Jan-2014 08:05 by Bill Bennett. | Tags Filed under: News.



Just days after announcing a US$1.2 billion investment in cloud computing, comes news IBM is looking to sell its low-end server business.

The Wall Street Journal reports:

IBM†is exploring a sale of its low-end server business, according to people familiar with the matter, reviving an effort that came close to yielding a deal last year.

Dell is named as a possible buyer.

Operating in the low-end server business is a thankless task. Margins are wafer thin and sales are falling as companies increasingly move workloads to the cloud. You donít need so many servers when Google, Microsoft or other online services handle mail and documents.

Even when companies keep computing jobs in-house, virtualisation technology means they can cram more servers into a single box.

IBM, HP and Oracle all struggle to make money from servers, which makes you wonder why anyone would want to buy IBMís low-end server operation. The low-end server business doesnít even give access to a lucrative customer list. The only buyer I can see is someone who can consolidate the business with their own to win economies of scale.

[digitl 2014]

digitl on Google+

The post Cloud-bound IBM wants to offload low-end servers appeared first on digitl.



comments powered by Disqus


Trending now »

Hot discussions in our forums right now:

American legal jurisdiction in New Zealand
Created by ajobbins, last reply by ajobbins on 20-Oct-2014 22:53 (22 replies)
Pages... 2


Another Trade Me competitor: SellShed
Created by freitasm, last reply by mattwnz on 20-Oct-2014 15:16 (22 replies)
Pages... 2


Why would Suresignal calls be worse quality than non-Suresignal calls from the same location?
Created by Geektastic, last reply by froob on 21-Oct-2014 08:21 (41 replies)
Pages... 2 3


Picture resizing on the forum
Created by Jase2985, last reply by freitasm on 18-Oct-2014 13:32 (13 replies)

Internet question...
Created by Geektastic, last reply by Geektastic on 17-Oct-2014 22:59 (40 replies)
Pages... 2 3


Why do people keep thinking National are doing a great job?
Created by sxz, last reply by Geektastic on 20-Oct-2014 23:05 (156 replies)
Pages... 9 10 11


Just bought a TiVo online. No wireless adaptor. Will a standard one work? Or do I need the TiVo one ?
Created by Limerick, last reply by graemeh on 20-Oct-2014 16:03 (11 replies)

Lollipop it is then. Android 5 announced with Nexus 6 and 9
Created by Dingbatt, last reply by kiwifidget on 21-Oct-2014 09:16 (57 replies)
Pages... 2 3 4