It is understood IBM are positioning themselves to sell off its low-end server business with Dell a potential buyer. Just under a year ago IBM where in talks with Lenovo to sell its x86 server business however the deal fell through after talks between the two broke down.
According to the Wall Street Journal, IBM is looking to exit the low-margin businesses as it did originally with its PC division in 2005. IBM’s low-end server business generated around US$4.8bn of IBM’s US$15.4bn overall sales in 2012, accounting for a sizeable portion of IBM’s business.
Is this a sign that IBM are beginning to make a shift from the traditional server business selling the low-margin hardware division would help it focus more on software and services which can be easily delivered through the cloud.
IBM revealed last week that it would invest $1.2bn this year into new data centres as it aims to expand its cloud offering to compete with other leaders in the cloud sector such as Amazon.
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