News Column

Dell May Buy IBM's Low-End Server Business

January 20, 2014

UPI Business News

dell ibm low end server unit
IBM is considering the sale of its low-end server unit, possibly to Dell (file photo)

U.S. technology giant IBM is looking into the possible sale of its low-end server unit, sources close to the discussions told the Wall Street Journal.

A year ago, IBM was close to a deal to sell the low-margin business to Chinese technology firm Lenovo Group, but that deal fell apart when the two could not agree on a price, which was said to be around $2.5 billion, the Journal reported.

Currently, Dell Inc., which went private in 2013, is exploring the option of buying the IBM business unit that is facing challenges to remain profitable as several huge customers, such as Google, now construct their own systems and other companies have turned to cloud computing, which has reduced the need for on-site servers.

The low-end server business generated an estimated $4.9 billion in revenue for IBM in 2012 out of a total revenue of $15.4 billion IBM took in on all of its server sales, the Journal said.

Copyright 2014 United Press International, Inc. (UPI). Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.

Original headline: IBM exploring sale of low-end server unit


For more stories covering the world of technology, please see HispanicBusiness' Tech Channel



Source: Copyright 2014 United Press International, Inc. (UPI). Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters