facebook
twitter
rss
account
search
search
 

IBM exploring sale of low-end server unit

Jan. 20, 2014 at 10:30 AM   |   Comments

ARMONK, N.Y., Jan. 20 (UPI) -- U.S. technology giant IBM is looking into the possible sale of its low-end server unit, sources close to the discussions told the Wall Street Journal.

A year ago, IBM was close to a deal to sell the low-margin business to Chinese technology firm Lenovo Group, but that deal fell apart when the two could not agree on a price, which was said to be around $2.5 billion, the Journal reported.

Currently, Dell Inc., which went private in 2013, is exploring the option of buying the IBM business unit that is facing challenges to remain profitable as several huge customers, such as Google, now construct their own systems and other companies have turned to cloud computing, which has reduced the need for on-site servers.

The low-end server business generated an estimated $4.9 billion in revenue for IBM in 2012 out of a total revenue of $15.4 billion IBM took in on all of its server sales, the Journal said.

Topics: Google
© 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
trending
Celebrity Couples of 2014 [PHOTOS]

Celebrity Couples of 2014 [PHOTOS]

Most Popular
1
Obama's plan calls for computer chip implants to help soldiers heal
2
Wolf yawns are contagious
3
Newfoundland fossil is earliest evidence of muscled animals
4
Washington State's Elwha River flows free once again
5
Study: gamblers' brains not unlike those of pigeons
Trending News
Video
x
Feedback