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.”

Q&A: Aruba manager on imminent data centre challenges
Aruba's Alessandro Bruschini shares his thoughts on booming demand for data centres and the growing obstacles bolstered by regulation and energy efficiency requirements.
Interview: Next steps needed in data centre energy efficiency
SPIE UK's Peter Westwood shares what needs to be done to make the vision of a data-driven world more sustainable.
IT employers having to up salaries and bonuses to attract talent
As the modern economy relies increasingly on data, it’s certainly a good time to be working in IT.
Gartner names ExtraHop leader in network performance monitoring
ExtraHop provides enterprise cyber analytics that deliver security and performance from the inside out.
APAC holds largest installed base of storage capacity
"The Global StorageSphere is large and diverse, encompassing many different storage technologies, and growing rapidly."
IBM opens up Watson to run on anything, anywhere
Big Blue has made Watson portable across any cloud with the goal to empower businesses to prevent vendor lock-in and start deploying AI wherever their data resides.
NEXTDC’s corporate operations go 100% carbon neutral
Much has been said of the environmental impact of data centres, and now NEXTDC is looking to do its part in curbing its own contribution.
Brisbane’s DC market continues to expand
“Continued growth and expansion was necessary to meet the growing demand for data centre services."