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:

Business email hosting options and a rant
Created by Disrespective, last reply by Disrespective on 22-Jul-2016 15:09 (25 replies)
Pages... 2


Converting to main pressure and gas.
Created by Paul1977, last reply by mcraenz on 25-Jul-2016 20:27 (22 replies)
Pages... 2


Johnny Moore: I blame baby boomers for housing mess
Created by tdgeek, last reply by tdgeek on 25-Jul-2016 17:31 (62 replies)
Pages... 3 4 5


It must take a very special person...
Created by Dynamic, last reply by Dynamic on 25-Jul-2016 11:53 (18 replies)
Pages... 2


Residential Gig UFB Auckland?
Created by dt, last reply by BarTender on 25-Jul-2016 18:32 (17 replies)
Pages... 2


Seagate release 10TB "consumer" HDD
Created by xpd, last reply by xpd on 22-Jul-2016 15:04 (31 replies)
Pages... 2 3


Android 6 location aware sound profiles / automation?
Created by timmmay, last reply by Stu on 23-Jul-2016 16:07 (14 replies)

Pre pay texting
Created by madcarue, last reply by madcarue on 25-Jul-2016 14:32 (13 replies)