| ||Thread Tools|
|10th January 2005, 22:34||#1|
Join Date: Mar 2004
IBM Lenovo deal involves Chinese Linux trade off
THE DEAL in which IBM has effectively ceded its notebook and desktop PC business to Chinese maker Lenovo was given official US government approval here today.
But we're hearing interesting rumours that there's far more to this deal than meets the eye and it's far from being a straightforward transaction.
Lenovo, formerly owned by Legend, is partly owned by the Chinese government. In fact, the Chinese government owns 57% of the firm. The acquisition of the IBM business looks like a big win in terms of face for Lenova, and for the Chinese.
But we understand that there's a quid pro quo to the deal which doesn't involve PCs except peripherally, and is more to do with IBM's interest in being a giant Linux player. The sources claim that IBM has been actively lobbying the Chinese government so that it will be a key player in the development of Linux and server infrastructure throughout the vast and fast developing nation. Power.org is a wonderful thing.
IBM's PC division hasn't exactly been a ray of profitable sunshine over the last four years - such an exchange for Big Blue would offer it a golden key which would eventually mean a rich harvest for the US player.
If the sources are correct, that poses another interesting question. Can IBM conduct such a deal with the notoriously tricky Chinese government that eventually rebounds to its benefit, rather than to the PRC? While IBM has a long view of the market, we rather suspect that the PRC's view is more farsighted, and its goals and strategies include Big Blue as a bit player, rather than an Emperor of IT in the future.
Opteron 165 (2) @2.85 1.42 vcore AMD Stock HSF + Chill Vent II
|Thread||Thread Starter||Forum||Replies||Last Post|
|IBM wins hybrid supercomputer deal||Sidney||WebNews||0||7th September 2006 00:55|
|IBM officially kills OS/2, suggests switch to Linux||Sidney||WebNews||0||15th July 2005 19:22|
|No Threat to Linux with Apple and Intel Deal||jmke||WebNews||0||14th June 2005 18:31|
|No Threat to Linux with Apple and Intel Deal||Sidney||WebNews||0||14th June 2005 16:43|
|Lenovo + IBM = Cool new hardware for the US Market||Sidney||WebNews||0||4th May 2005 16:04|
|Chinese firm sues Intel for alleged breach of trade||Sidney||WebNews||0||6th April 2005 00:16|
|IBM hands Lenovo billion-dollar PC loser||jmke||WebNews||2||4th January 2005 17:35|
|IBM and Lenovo Deal Finalized, IBMís PC Unit Acquired by Lenovo||jmke||WebNews||0||9th December 2004 10:43|