Story image

Lenovo promises Kiwi investment, services opportunities for x86

01 Oct 2014

Lenovo's acquisition of IBM's x86 server businesses, completed today, comes complete with a promise from regional bosses to pump AU$5 million into the ANZ market, and claims the move will be good for the New Zealand channel.

Matt Codrington, Lenovo ANZ managing director, says while tying down an exact investment figure for New Zealand is hard, he expects around 20% of that $5 million to be pumped into the New Zealand market.

That investment will take the form of incremental investment in the company's partner programmes, branding and marketing, as well as improved offices in Wellington, with improved demo capabilities and proof of concept facilities for both the PC and server businesses.

Globally, the company is investing $5 billion and has stated a goal of having its enterprise business more profitable than the PC business, within one year.

“We've never shied away from aspirational targets and this is achievable in our eyes.”

He says the targets allocated to ANZ are 'a stretch' but 'we will hit our fair share of that target'.

Nick Reynolds, Lenovo Asia-Pacific mature markets chief marketing officer, says Lenovo will be keeping the x86 brands, including System X, BladeCenter and Flex System.

“We have a great record of keeping brands and growing them, and Think is a good example of that.

“When we acquired Think a lot of ThinkCenter and ThinkPad users were concerned about what we would do but we have improved them and we're now number one in computer notebooks globally and number two in computer desktops globally.

“It will be the same with these brands. We're looking at building our marketshare.”

 Services opportunity

Codrington says the closure of the deal makes Lenovo the third largest player in the global x86 server market and 'number two or three in New Zealand, depending on the quarter'.

He says Lenovo's track record with the channel 'speaks for itself' and local feedback on the acquisition has been 'very positive'.

“There is now going to be a broad base of offerings for our partners to sell and new business opportunities for them.”

Codrington says Lenovo doesn't have a heavy investment in services, providing a 'real opportunity' for resellers to capitalise by adding value to counter the increasingly tight hardware margins.

“There's a great opportunity for partners to expand their capabilities and add value through services, especially in this [enterprise] space.

“It allows them to add value and build broader and deeper relationships and gain services revenue.”

Microsoft appoints new commercial and partner business director
Bowden already has almost a decade of Microsoft relationship management experience under her belt, having joined the business in 2010.
Zoom’s new Rooms and Meetings features
Zoom has released information about the upcoming releases for its Rooms and Meeting offerings for 2019.
Aussie company set to democratise direct-to-orbit IoT access
Adelaide-based Myriota has released a developer toolkit that has been trialled and tested by a smart waste management platform.
Apple's AirPods now come with 'Hey Siri' functionality
The new AirPods come with a standard case or a Wireless Charging Case that holds additional charges for more than 24 hours of listening time.
Dynatrace takes pole position in APM Magic Quadrant
It placed highest on Ability to Execute and furthest on Completeness of Vision in the 2019 Quadrant for Application Performance Monitoring (APM).
HCL and Xerox expand strategic partnership
Under the terms of the agreement, HCL will manage portions of Xerox’s shared services, including global administrative and support functions.
Avaya expands integration with Google Cloud AI
This includes embedding Google’s machine learning within conversation services for the contact centre, enabling integration of AI capabilities.
Forrester names Crowdstrike leader in incident response
The report provides an in-depth evaluation of the top 15 IR service providers across 11 criteria.