Lenovo: Motorola, IBM x86 Server Deals Already Paying Off
The real test for Lenovo will be how well the company is able to bring these three businesses—PCs, servers and smartphones—together to form a more complete end-to-end solution for businesses, according to Rob Enderle, principal analyst with the Enderle Group. In a research note following a recent Lenovo meeting with analysts, Enderle noted that other OEMs that sell Intel-based PCs and servers has had difficulty creating solutions that blended the technologies together. That can be a problem for these vendors because if they can't offer end-to-end solutions, cloud providers will fill the need, which could help sink server sales over the next few years. "Both Amazon and Google are demonstrating an increasing capability to supply computing as a service in a similarly beneficial model," Enderle wrote. "Google with its Chrome and Android OSs and Docs productivity products are increasingly wrapping these offerings with back end services so that users shouldn't need to run local content. Amazon has mostly separately focused on the data center via its AWS services and the consumer market with its Kindle and Fire TV. But those offerings could increasingly be blended and moved to desktop and laptop configurations and supply, for a very low entry price, what many may come to believe is a complete PC experience." Server vendors looking to challenge Amazon, Google and others need to offer on-premises options that can be leased and includes servers, networking, storage and clients, including PCs, tablets and smartphones, he wrote. Many businesses and government agencies would be willing to accept the slightly higher costs if it meant keeping local control. Lenovo could be that business, Enderle wrote.
"With both Dell and HP currently lacking viable phone products, only Lenovo has the full breadth of end-to-end offerings ranging from smart phones (Motorola), tablets and PCs to storage, networking, and servers, at least on paper," he wrote. "Right now, the company's networking and storage portfolios are light. But Lenovo is far better equipped with mobile devices than any other player in their class, and they can and do partner with companies like EMC and IBM to close product line gaps in other areas."