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:

Fixing mortgage interest rate, 2 or 3 years?
Created by lokhor, last reply by lxsw20 on 23-Dec-2014 16:48 (24 replies)
Pages... 2


Boxing day deals.
Created by benokobi, last reply by Finch on 23-Dec-2014 16:47 (22 replies)
Pages... 2


Slaughter of Innocents
Created by networkn, last reply by networkn on 19-Dec-2014 17:46 (64 replies)
Pages... 3 4 5


youtube downloader
Created by Ford, last reply by jarledb on 22-Dec-2014 16:57 (18 replies)
Pages... 2


Spray Foam Insulation
Created by AACTech, last reply by timbosan on 19-Dec-2014 16:58 (36 replies)
Pages... 2 3


Police Camera Van Disguise
Created by Reanalyse, last reply by coffeebaron on 23-Dec-2014 16:47 (85 replies)
Pages... 4 5 6


Crew Drinking on Flights - Why!?
Created by networkn, last reply by Geektastic on 22-Dec-2014 09:35 (34 replies)
Pages... 2 3


Spark, the least secure part of your home network?
Created by NZtechfreak, last reply by coffeebaron on 23-Dec-2014 13:32 (33 replies)
Pages... 2 3