Lenovo Said to Be in Discussions to Buy IBM Server Business

This should hit home with those that read the Innovator's Dilemma and Innovator's Solution. IBM sold their PC business years ago to Lenovo because of "low margins", and they moved "up-market" to the server market. But now the PC guys are eating into their profits in the server market, too, and once again IBM is forced to sell this business due to "low margins".

It's interesting that while it's "low margins" for IBM because IBM has higher cost structures, Lenovo thinks it's actually a very profitable business:

“Lenovo has been trying to break into servers for a while as a new growth engine,” Moel said. “It could be good for Lenovo based on the right price.”

This is why Intel will never be safe in the server market, either, if ARM chip makers eat up the PC market (and they will do that), while also dominating the mobile market.