Story image

Lenovo looks to the channel to save failing data center business

17 Feb 17

Lenovo Group has just released fiscal third quarter results, saying there were big challenges in its three main lines of business, namely data center, mobile devices, PCs and smart devices.

All three industries, according to analyst reports, continued to experience either slow growth or no growth during the quarter ended December 31, 2016.

For Lenovo’s Data Center Group (DCG), which includes servers, storage, software and services, sales in the third fiscal quarter were US$1.1 billion, down 20%, and 3% quarter-to-quarter.

However, Lenovo is still continuing its focus on transformative actions that will help drive long-term DCG competitiveness.

The company says it is doing so by strengthening its sales teams, investing in the channel, revamping their product lines, building a brand strategy, and adding new partnerships. 

Lenovo also saw strong growth in tablets, up 10% year-over-year, outperforming the market by 29 points, as well as significant year-over-year increases in high-growth product lines.

“Despite ongoing macro-economic uncertainties and the two new businesses still in transition, Lenovo delivered a solid performance last quarter,” says Yang Yuanqing, Lenovo Chairman and Chief Executive Officer.

“Our PC business remains strong, our Mobile business has made steady progress, and our Data Center business now has a clear improvement plan in place,” he explains.

“Although it takes time to build the core competence in these two new growth engines, we are confident to achieve break even and profitable growth in them.”

DigiPlex’s data centre heat reuse system wins award
Its solution to reuse heat to warm thousands of local homes took out the accolade at the recent 2018 Energy Awards.
STT GDC to build hyperscale data centre in Singapore
ST Telemedia Global Data Centres (STT GDC) today unveiled ambitious plans for expansion with its largest data centre in Singapore to date.
Golden opportunities for enterprise e-waste reduction
E-waste is a hot topic in tech circles, and Park Place's EMEA MD believes there could be huge opportunities if data centres and enterprises improve their practices.
How Schneider Electric aims to simplify IT management
With IT Expert, Schneider Electric aims to ensure secure, vendor agnostic, wherever-you-go monitoring and visibility of all IoT-enabled physical infrastructure assets.
Pitfalls to avoid when configuring cloud firewalls
Flexibility and granularity of security controls is good but can still represent a risk for new cloud adopters that don’t recognise some of the configuration pitfalls.
Cisco dominates record-high Ethernet switch & router markets
While the market is flourishing, it’s tough-going as Cisco has increased its majority share of the pie.
Why total visibility is the key to zero trust
Over time, the basic zero trust model has evolved and matured into what Forrester calls the Zero Trust eXtended (ZTX) Ecosystem.
Gartner names Proofpoint Leader in enterprise information archiving
The report provides a detailed overview of the enterprise information archiving market and evaluates vendors based on completeness of vision and ability to execute.