Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home CRM Systems Customer Service Contact Centers Business Intelligence More Topics...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Chips & Processors
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:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Chips & Processors
1.   AMD Debuts 64-Bit ARM Server Chips
2.   China To Call Qualcomm a Monopoly
3.   IBM Earmarks $3B for Next-Gen Chips
4.   Intel Heralds New Xeon Server Chip
5.   Intel Aims To Eliminate All PC Cables


advertisement
AMD Debuts 64-Bit ARM Server Chips
New Opterons target data center needs.
Average Rating:
China To Call Qualcomm a Monopoly
Cracking down on foreign companies.
Average Rating:
IBM Earmarks $3B for Next-Gen Chips
R&D plan targets cloud and Big Data.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
New 'Backoff' Malware Slips Undetected into Retail Systems
'Malicious actors' are using a new variety of malware to access consumer payment data remotely through point-of-sale systems, according to a report from the Department of Homeland Security.
 
IBM Beefs Up Identity Intelligence Security Solutions
Big Blue is betting big on identity intelligence. IBM just acquired a private firm with security software to govern user access to apps and data across cloud and on-premise environments.
 
USB Security Flaw Lets Hackers Hijack PCs
Hackers can use the firmware that controls USB functions to take control of computers, say security experts. That means there may be a new class of attack for which there are no defenses.
 

Enterprise Hardware Spotlight
AMD's ARM-Based Opteron Out in $3K Dev Kit
It's dubbed "Seattle" and it's AMD's first 64-bit ARM-based Opteron processor. The low-power chip is being released as part of AMD’s Opteron A1100-series developer kit, and aimed at high-end data center needs.
 
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 

Mobile Technology Spotlight
Virgin Mobile Offers Custom Smartphone Plans
As the wireless carrier wars continue heating up, Virgin Mobile just threw the customization coal onto the fire. The firm has debuted a no-annual-contract plan with rates based on individual use.
 
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 
FTC Wants Fix for 'Perfect Scam' of Mobile Cramming
The U.S. Federal Trade Commission has issued new guidelines to curb “mobile cramming,” a troublesome practice that adds unauthorized third-party charges to mobile phone bills.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Contact Centers | Business Intelligence | Sales & Marketing | 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.