Story image

Lenovo looks to the channel to save failing data center business

17 Feb 2017

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.”

Bluzelle launches data delivery network to futureproof the edge
“Currently applications are limited to data caching technologies that require complex configuration and management of 10+ year old technology constrained to a few data centers."
DDN completes Nexenta acquisition
DDN holds a suite of products, solutions, and services that aim to enable AI and multi-cloud.
Trend Micro introduces cloud and container workload security offering
Container security capabilities added to Trend Micro Deep Security have elevated protection across the DevOps lifecycle and runtime stack.
Veeam joins the ranks of $1bil-revenue software companies
It’s also marked a milestone of 350,000 customers and outlined how it will begin the next stage of its growth.
Veeam enables secondary storage solutions with technology partner program
Veeam has worked with its strategic technology alliance partners to provide flexible deployment options for customers that have continually led to tighter levels of integration.
Veeam Availability Orchestrator update aims to democratise DR
The ability to automatically test, document and reliably recover entire sites, as well as individual workloads from backups in a completely orchestrated way lowers the total cost of ownership (TCO) of DR.
Why flash should be considered the storage king
Not only is flash storage being used for recovery, it has found a role in R&D environments and in the cloud with big players including AWS, Azure and Google opting for block flash storage options.
NVIDIA's data center business slumps 10% in one year
The company recently released its Q1 financial results for fiscal 2020, which puts the company’s revenue at US$2.22 billion – a slight raise from $2.21 billion in the previous quarter.