Lenovo, the world’s second largest PC maker, is planning to revamp its business strategy and refocus on its server and storage business over the next three years.
The PC slump has been hurting Lenovo, Dell and Hewlett Packard for several quarters and all traditional PC markers are now trying to reinvent themselves.
Dell wants to go private, HP is waiting for inkjet printers to make a comeback, while Lenovo seems keen focus on everything other than PCs.
Although its latest announcement indicates that Lenovo will make a serious enterprise server and storage push, it should be noted that the company is also betting big on smartphones and tablets. However, we don’t get to see that many of them in Europe, but Lenovo’s mobile gear is doing incredibly well in parts of Asia. In fact, Lenovo’s smartphone business accounts for about 20 per cent of the company’s revenue in mainland China, reports China Daily.
“We are looking for future profit generators, and the enterprise-level server and storage markets will surely fill that need,” said Chen Xudong, senior vice-president and general manager of Lenovo China. However, Chen stopped short of outlining Lenovo’s expectations for its server and storage gear.
The storage strategy seems off to a good start. On Tuesday Lenovo and EMC released their first co-branded server and storage products. The two outfits formed a joint venture last year to shift server and storage gear. It is hoped that the EMC alliance will help Lenovo fend off challenges from ZTE and Huawei in the Chinese market.
Although PC sales fell off a cliff last year, makers of external disk storage seem to have had a rather good year. According to IDC’s latest disk storage report, revenue increased 4.7 percent in 2012, with a 2.3 percent year-on-year increase in Q4.
Worldwide sales totalled $24.7 billion last year, and total disk capacity shipped during the year surpassed 20 exabytes, up 27 per cent over 2011.
“FICON attached array sales and network attached storage (NAS) both helped drive the factory revenue increase during the quarter as companies invested in storage required to support mainframe environments and to deal with the continued growth in unstructured data,” said Eric Sheppard, IDC storage research director.
The open networked disk storage market grew 2.6 percent year-on-year in Q4 to hi $5.7 billion in revenues. EMC maintained its lead with a 30.7 percent revenue share in Q4, trailed by IBM and NetApp with 15 per cent and 11.6 percent respectively. HP and Hitachi tied in fourth position with market shares of 9.3 and 8.8 percent respectively. However, HP and Hitachi were the only players in the top five to lose share in Q4 2012.
In the total worldwide disk storage systems market EMC reigned supreme with a 24 percent share, followed by IBM and HP, in a statistical tie for second spot with 16.2 and 16 percent respectively. Dell and Netapp ranked fourth and fifth.