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Lenovo bought International Business Machines Corp. (NYSE:IBM)’s PC Business A Decade Back: Jury Out On Further Expansion

On Thursday, Lenovo will observe the 10-year anniversary of its acquisition of International Business Machines Corp. (NYSE:IBM)‘s PC enterprise. The only thing left to be seen is whether Lenovo can clinch the postscript – the acquisition of IBM’s server enterprise and grow into a bigger smartphone-to-data center enterprise vendor.

The IBM-Lenovo deal in 2005 will be remembered as a win-win deal. Lenovo purchased IBM PC enterprise and an iconic ThinkPad brand and harnessed it to be the top PC maker. By casting off the PC enterprise, IBM converted into a hardware, software, and services firm. Big Blue is also seeking a postscript of its own as it casts off commodity servers to concentrate on analytics, mobile, security and cloud.

Lenovo equipped with IBM’s PC unit finally followed a strategy that was based around defending mature markets – the US and Europe and increasing share in emerging nations.

Now Lenovo is assimilating the acquisitions of IBM’s server enterprise and the Motorola Solutions Inc (NYSE:MSI) absorption.

Lenovo’s master plan will hinge mainly on those latter buyouts. In other words, after a decade Lenovo can’t celebrate its PC triumph too much.

The firm stated that it will initiate its first global tech conference where it will articulate its device strategy. Also, Lenovo will have to persuade businesses that they can gamble on the firm’s roadmap, which covers wearables and connected devices too. On the consumer scene, Lenovo will require to galvanize Apple-like gadget frenzy.

However, Lenovo’s enterprise businesses will eventually meet the bills.

For the moment, Lenovo gets a truncated birthday party. The acquisition of IBM’s PC business started a string of eight acquisitions over the last decade that was well worth the money.

Here are a few milestones of importance:

  • Lenovo purchased IBM’s PC division in 2005.
  • In 2006, Lenovo introduced its branded PCs.
  • In 2011, Lenovo established collaboration with NEC and Compal and later acquired Medion.
  • In 2012, Lenovo established a storage joint venture with EMC.
  • The Yoga convertible kicked off in 2012.
  • Lenovo achieved No. 1 status in 2014 and began selling smartphones outside of China.
  • In 2014, Lenovo absorbed Motorola Mobility and IBM’s x86 server division.

Published by Chris Brown

About Me: I have a Phd in Economics Gender: Male Interests: Playing games like cricket, volleyball Favorite Music: hip hop, rock, jazz

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