Lenovo attacks Dell in the enterprise space

Posted by a staff writer

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 percent 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.