Lenovo reorgs biz after IBM server buy

A week after it confirms plans to buy IBM's low-end server business, the Chinese hardware manufacturer says it's restructuring the company into four groups to diversify its portfolio.
Written by Eileen Yu, Senior Contributing Editor

Following its recent purchase of IBM's low-end server business, Lenovo Group is now looking to restructure the company into four business groups, from the current two, as it looks to expand its portfolio into key market areas. 

Effective April 1, the changes will see the Chinese hardware maker operating four business units--PC, mobile, enterprise, and cloud--where its IBM low-end server buy will be integrated into the enterprise group. A company spokesperson told Wall Street Journal, though, that the reorganization was not the result of the IBM purchase, but part of Lenovo's wider corporate strategy to grow beyond its traditional PC business.  

Currently the world's largest PC maker, the Chinese manufacturer last week confirmed plans to buy IBM's x86 server business for US$2.3 billion, almost a decade after it purchased the latter's PC group. The deal will see Lenovo acquiring Big Blue's System x, BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, blade networking, and maintenance operations.

In recent years, Lenovo has been making moves to evolve from its PC gameplay, building a products and services portfolio that now includes smartphones, tablets, cloud, and data analytics, where it recently opened a global analytics centers in Singapore. In November, it unveiled plans to pump US$100 million into a new research and development center in Brazil, which will focus on the development of high-end servers, storage, and cloud computing software.

Under the new organizational structure, its new PC business group will be headed by current European chief, Gianfranco Lanci, while current consumer head, Liu Jun, will lead the new mobile business group. Current CEO Yang Yuanqing will remain as head honcho of the overall group. 

Lenovo in January last year also restructured into two business groups, as part of a move then to focus on mainstream and high-end market segments.

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