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Fresh off Olympics performance, Lenovo prepares launch into server market

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MORRISVILLE, N.C. – Lenovo, fresh off a widely praised technical performance (did someone say gold?) at the Beijing Olympics, opens its next front in its bid for global market share at the Interop trade show in New York on Sept. 15.

That’s when the world’s No. 4 PC manufacturer will unveil its lineup of servers.

Joe Panettieri, editorial director of Nine Lives Media and a former executive at Ziff Davis, reports in his blog that Lenovo will include Linux-based offerings as well as Windows. Lenovo told him about the Interop launch when he recently visited the company’s headquarters in Morrisville.

“It's a smart but long-overdue move by Lenovo,” Panettieri wrote. “Chief information officers at big companies already know Lenovo's ThinkPad notebook brand, so they're familiar with Lenovo's product quality. Now, Lenovo hopes to extend that mind share onto the server, where product margins are better than the traditional desktop and mobile markets.”

Back in January, Lenovo announced plans to sell servers after reaching a licensing deal with IBM. The two have been partners since Lenovo bought IBM’s PC business in 2004. IBM tops the world’s server market, and much of its R&D work is done in the Triangle.

So will Lenovo compete with IBM? Both companies say no, since Lenovo plans to focus on small- and medium-sized businesses. Big Blue will retain its focus on big buyers.

Lenovo’s server move adds more muscle to a steadily growing lineup of products, especially its recently launched drive to win more consumer and small-business sales with new laptops and PCs.

Lenovo also has increased its global brand recognition not only through the Olympics but with aggressive marketing across numerous sports venues – the NBA, Formula 1 racing, World Cup soccer and much more.

However, the company, which was launched in China, banked heavily on equipment (tons of it), staff (hundreds) and technology (reputation on the line) in a high-profile operation in Beijing. As good as the Games were athletically and aesthetically, they also were a technical success – from Durham-based Cree LEDs lighting the remarkable swimming venue to Lenovo’s PCs delivering results.

What's next for Lenovo? Something else new, probably soon.

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