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:

Ticketek Sort your website - Super15 Final, ticket sales & scalping
Created by keewee01, last reply by mattwnz on 30-Jun-2015 23:04 (66 replies)
Pages... 3 4 5


PS4 $417.16 delivered @ The Warehouse
Created by timtait, last reply by mattwnz on 30-Jun-2015 15:47 (50 replies)
Pages... 2 3 4


High late fee
Created by nate, last reply by MikeB4 on 30-Jun-2015 22:25 (48 replies)
Pages... 2 3 4


Frustration - our attempt to have UFB fibre hooked up for our business
Created by LambdaPanda, last reply by Nate001 on 30-Jun-2015 22:36 (18 replies)
Pages... 2


What type of cable demark is this?
Created by FlyingPete, last reply by FlyingPete on 29-Jun-2015 21:28 (17 replies)
Pages... 2


Why is NZ still using the 12 hour clock?
Created by ScuL, last reply by tstone on 29-Jun-2015 09:51 (100 replies)
Pages... 5 6 7


SmartThings Hub NZ equivalent?
Created by Disrespective, last reply by SumnerBoy on 30-Jun-2015 15:08 (15 replies)

ADSL2+ vs VDSL upgrade? Looking for advice.
Created by LinksNZ, last reply by yitz on 27-Jun-2015 20:39 (42 replies)
Pages... 2 3