What IBM's x86 exit may mean for rivals

By Patrick Thibodeau in Computer World

Computerworld - IBM's reported interest in selling parts of its x86 server business to Lenovo may bring major changes to the global market.

IBM is the third-largest seller of x86 servers by factory revenue, with 15.7% of the global market in 2012, according to IDC. That represents $5.6 billion for a company that earned $104.5 billion in revenue last year.

IBM's share of the x86 server segment has declined over the last several years. In 2010, it had 17.4% of the market and $5.5 billion in revenue.

By divesting at least part of its x86 server line, IBM gains additional investment dollars that it can spend on its higher margin efforts, especially its analytics and business intelligence, putting more pressure on rivals in these areas.

Lenovo, which is on its way to becoming the world's top PC vendor, may gain more than an x86 server line. It may also get, as part of any deal, IBM executive talent and capability to reach North American customers served today by Hewlett-Packard and Dell, said Richard Fichera, an analyst at Forrester.

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HP shift on PCs could boost rivals - Computerworld

HP shift on PCs could boost rivals - Computerworld

Computerworld - With Hewlett-Packard (HP) likely spinning off its PC manufacturing business, other major vendors will almost certainly be looking for a way to get a bigger piece of the hardware pie.

HP announced on Thursday that, among other moves, it is may sell its PC manufacturing business. That news rocked the hardware industry since HP is by far the dominant PC maker in the world.

So while HP decides just what to do, PC makers like Dell, Acer and Lenovo should be plotting their next move, say industry analysts.

Rob Enderle, an analyst with the Enderle Group, said HP's shift could easily be great news for other major vendors who want to take advantage of it. After all, companies and consumers may not be so quick to buy HP desktops or laptops if they feel the company or products are in flux.

That could mean more business for the other top vendors.

"Whoever takes over HP's PC business could, if it is successful, emerge in 18 months as very powerful. But, for those 18 months, the others will be able to gain share at HP's cost," said Enderle. "The leader is weakened until the divestiture stabilizes, and there is no certainty it will be successful. This will focus the others on HP's share."

All of these changes come just as the PC market isshifting into a slower pace.

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