Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home CRM Systems Customer Service Business Intelligence Sales & Marketing More Topics...
Computing
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Is IBM Really Selling its Semiconductor Business?
Is IBM Really Selling its Semiconductor Business?

By Jennifer LeClaire
February 7, 2014 10:13AM

Bookmark and Share
One rumor suggests IBM would would sell the microelectronics division or sell the assets but maintain its chip design teams. That is a sensible scenario. The assets would have to be sold to a company that IBM felt comfortable doing business with because some firm is going to have to crank out those Power processors and mainframe engines.
 



IBM is selling off more and more of its business. After selling its x86 server line to Lenovo, Big Blue is reportedly shopping its semiconductor business.

News reports suggest IBM has hired Goldman Sachs to search for potential suitors. The Financial Times noted the sale would be Big Blue’s most significant strategic move since it faced a financial crisis in the early 1990s. IBM could not immediately be reached for comment.

“It is a step away from their heritage,” Patrick Moorhead, an analyst at Moor Insights and Strategy, told the Financial Times. “This is probably their biggest strategic realignment for 20 years.”

A Fundamental Change

We caught up with Charles King, a principal analyst at Pund-IT, to get his take on the rumor. He told us selling the semiconductor business would be a fundamental change for IBM. He doesn’t think selling would mean IBM would stop building Power Systems or mainframe systems any time soon, but Big Blue is already a different company in 2014 than it was in 2013.

“One rumor suggests IBM would would sell the microelectronics division or sell the assets but maintain their chip design teams. That actually is a sensible scenario. If the assets were sold they would have to be sold to a company that IBM felt very comfortable doing business with because somebody is going to have to crank out those hundreds of thousands of Power processors and mainframe engines for them if they are not doing it themselves,” King said.

“The rumor makes sense in certain ways but it’s not like selling of an x86 server business. There’s a lot more at stake, frankly, both from the standpoint of the technologies involved and also from the standpoint of the importance of those technologies in IBM’s nearer and long-term future," he added.

Reviewing the Last Deal

In late January, IBM agreed to sell its x86 server business to Lenovo for $2.3 billion. This includes 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. IBM will retain its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, and PureApplication and PureData appliances.

IBM is clearly jockeying toward the future. The Lenovo agreement follows recent announcements by IBM that it will invest more than $1 billion in the new IBM Watson Group, and $1.2 billion to expand its global cloud computing footprint to 40 data centers worldwide in 15 countries across five continents.

“This divestiture allows IBM to focus on system and software innovations that bring new kinds of value to strategic areas of our business, such as cognitive computing, Big Data and cloud,” said Steve Mills, senior vice president and Group Executive, IBM Software and Systems of the x86 business line sale. “IBM has a proven record of innovation and transformation, which has enabled us to create solutions that are highly valued by our clients.”
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Computing
1.   Can One Size Windows OS Fit All?
2.   Wall Street Journal Hacked Again
3.   Dropbox for Business Boosts Security
4.   New Technology Defeats Privacy Efforts
5.   Design Central to Microsoft Future


advertisement
Backlash Stirs Against H-1B Visas
Debate over foreign workers continues.
Average Rating:
Amazon Intros Zocalo Storage Service
Online storage and sharing for business.
Average Rating:
Design Central to Microsoft Future
New ethos a break from functional past.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 
34 European Banks Hit by Android-Skirting Malware
Criminals have been finding gaping holes in Android-based two-factor authentication systems that banks around the world are using. The result: 34 banks in four European countries have been hit.
 

Enterprise Hardware Spotlight
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 
Seagate Unveils Networked Drives for Small Businesses
Seagate is out with five new networked attached storage products aimed at small businesses. The drives are for companies with up to 50 workers, and range in capacity from two to 20 terabytes.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Business Intelligence | Sales & Marketing | Contact Centers | Customer Data | CRM Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.