Sometimes a business deal is just a deal and sometimes there is more it than what's on the surface.
This is the case with the IBM-Lenovo deal. In a follow of
This transaction is a broader shift from hardware-based data infrastructure to the cloud. This forced
While this market is growing, it also operates on margins that are thinner than servers and PCs, and the space is occupied by companies like Amazon and Salesforce that are positioned to play the margins game due to their high-volume businesses.
This deal is more than it seems, and one of the aspects is how it affects others in the IT tech industry, especially HP and Dell. HP is in a worse position due to its commodity hardware because it can't get rid of PCs and other devices without disrupting its supply-chain pricing structure.
HP leads the low-end server market with 32 percent share, which if volumes drop then the company's margins suffer.
Dell went private was to re-align the company's portfolio toward higher-end IT systems as this is likely to unfold over the coming year.
The cost of building and maintaining data infrastructure will go down, but whether today s leading platform providers will maintain their status as key players in the development of that infrastructure, or whether they will survive at all.
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