Lenovo, a Chinese information technology (IT) company, has invested in aqueducts to acquire IBM x86 servers. However, the performance has fallen sharply in the domestic public market.

According to industry sources on July 24, Lenovo`s server market sales last year were 203 units and sales were estimated at KRW 1.39 billion. Lenovo`s sales of 32.7% (99 units) decreased by 35.3% (compared to sales of 299 units and sales of KRW 2.14 billion in 2014) The figure is a decrease of KRW 59 million.

The market dominance in the public market, which IBM had maintained, also declined. The market share last year was 16.0%, down 16.2% from 32.4% in 2014. This contrasts with HP`s market share in the public market server sales market, which increased its market share to 43.7% from 41.0% in the same period.

Lenovo servers have been neglected in the public market. Lenovo acquired x86 server license from IBM in October 2014, which is about KRW 2.6 trillion, considering that the size of the public procurement market for the entire computer server also increased from KRW 6.65 billion in 2014 to 30.6 % in the previous year to KRW 8.69 billion. Lenovo has been sluggish in the domestic procurement market despite receiving IBM`s server technology and existing customers.

In the industry, x86 server products were acquired by IBM, a US global vendor, as Lenovo, a Chinese IT company, which saw the value of the brand affect the conservative domestic public market demand. Especially, it is analyzed that the security problem of Chinese IT companies is being discussed in the public market. "Although IBM is trusted by the public procurement market, it is believed that the acquisition of the business as a Chinese company has made it difficult for individual information officers to transfer government-related information to Chinese companies," an industry expert said.


By Lim Seong Yeob starleaf@


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