MagicDude4Eva

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MyBB should really get an official statement from IBM South Africa how this will affect local operations. In essence IBM sells off their complete server division (with the exception of Z- and P-series) which also includes Pureflex (the recently introduced IBM blade-centre replacement).

Quite a bizarre deal, considering that margins in the server infrastructure are shrinking due to companies using commodity hardware in a cloud environment (why need a mega-server if you can shard cheap 1-U's?) and even stranger is that IBM is still holding on to their storage solutions (which where never that great to start with).

I guess many enterprise customers will shift (where possible) their X86 infrastructure to Dell as Lenovo product quality is just really poor. I am sure this deal will affect many resellers as Lenovo will put pressure on margins to remain competitive.
 

MagicDude4Eva

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Who still uses 32 bit servers?

It is bigger than that - it is the complete x86 stack which includes all x-series servers (blades, rack-mounted) and I know that some local corporates spent tens of millions of Rands on the blade-centre replacement (Flex). This all happened while IBM was busy with Lenovo discussions and I doubt that some of the financial institutions would have bought IBM kit, knowing that it will be managed by Lenovo.

The below sums up the deal (does not include all the legacy support etc):

IBM_Lenovo.jpg
 

ToxicBunny

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MagicDude, I think in some ways you may underestimate the enterprise market.

Yes guys are putting commodity hardware into the cloud, but there is still a massive clientbase who are still using and ordering these types of X86 systems.. and the number isn't really shrinking too much.
 

Fulcrum29

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MagicDude, I think in some ways you may underestimate the enterprise market.

Yes guys are putting commodity hardware into the cloud, but there is still a massive clientbase who are still using and ordering these types of X86 systems.. and the number isn't really shrinking too much.

True. To note, hybrid environments are on the increase.

I'm actually wondering do this division deal include patents?

The deal includes by statement:

- System x racks and towers,
- X86 BladeCenter,
- x86 Flex system blade servers,
- integrated systems,
- associated software,
- switching, and
- maintenance operations.

Managed plans (and SLAs) will be included and this alone is a massive market share.

To quote IBM:

http://www-03.ibm.com/systems/infrastructure/us/en/it-infrastructure/lenovo-acquisition.html

Why are we transitioning x86 to Lenovo?

IBM believes that Lenovo’s proven strengths in scalability, operational efficiency and a broad channel presence – combined with IBM innovation – will deliver a win for IBM’s x86 clients and Business Partners. IBM’s strategic alliance with Lenovo spans decades, and has enabled us to collaborate in developing and delivering high-value solutions.

Which products will go to Lenovo?

The Lenovo acquisition will include System x racks and towers, x86 BladeCenter and x86 Flex System blade servers and integrated systems -- plus associated software, switching and maintenance operations. IBM will retain System z mainframes, Power Systems, Storage, Power-based Flex servers and PureApplication and PureData Systems.

How will the transition work?

Until the agreement is complete, IBM and Lenovo will continue to operate independently. IBM will work with its x86 clients and Business Partners under current agreements. Once the transaction closes, IBM will work to ensure a seamless transition, and it is expected that our x86 leadership will join Lenovo.
 

MagicDude4Eva

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MagicDude, I think in some ways you may underestimate the enterprise market.

Yes guys are putting commodity hardware into the cloud, but there is still a massive clientbase who are still using and ordering these types of X86 systems.. and the number isn't really shrinking too much.

For the time being the corporates will continue supporting the IBM x86 products as they would have 3-5 year support agreements and it would make no sense to swop out. What I meant is that once a server's warranty expires it is actually cheaper to buy a new x86 than extending warranty on it. In most cases I would think that those enterprises would then go with HP/Dell and not Lenovo anymore (unless Lenovo does something dramatic locally to improve the value-proposition of their products).

I have not really followed the mainframe business over the last 5 years (specifically IBM z-/p-series) and it will be interesting to see how/if IBM will eventually change this model too. I am not sure if a company of that size can only rely on software and professional services (and some "niche" high-ticket items focused on a very small market - i.e. enterprises).
 

ToxicBunny

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For the time being the corporates will continue supporting the IBM x86 products as they would have 3-5 year support agreements and it would make no sense to swop out. What I meant is that once a server's warranty expires it is actually cheaper to buy a new x86 than extending warranty on it. In most cases I would think that those enterprises would then go with HP/Dell and not Lenovo anymore (unless Lenovo does something dramatic locally to improve the value-proposition of their products).

I have not really followed the mainframe business over the last 5 years (specifically IBM z-/p-series) and it will be interesting to see how/if IBM will eventually change this model too. I am not sure if a company of that size can only rely on software and professional services (and some "niche" high-ticket items focused on a very small market - i.e. enterprises).

Even when the support agreements and warranties are running out, they're being replaced with newer versions of the kit rather than swapping out for cloud based commodity kit...

Locally I can't really comment as I don't deal with local server stuff in the slightest anymore...
 

MagicDude4Eva

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Even when the support agreements and warranties are running out, they're being replaced with newer versions of the kit rather than swapping out for cloud based commodity kit...

Locally I can't really comment as I don't deal with local server stuff in the slightest anymore...

Yes, but as an example (I know FNB used to have IBM blade-centres about 5 years ago and would think they still do) - when you bought a IBM blade-centre with 5 x86 blades around 5 years back you would have paid around 650K. The x86 blade-infrastructure was replaced with Flex in 2012/2013 I think and to buy the newer kit would cost now about 2-3m. You could easily drop in 5 1-U's for less than 60K and get the same level of redundancy and performance and save yourself a whopping 2bar.

With the Lenovo deal going on for the last 12 months, I am surprised that neither HP/Dell has used this to their advantage to target those IBM customers (at least not locally).
 

ToxicBunny

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Yes, but as an example (I know FNB used to have IBM blade-centres about 5 years ago and would think they still do) - when you bought a IBM blade-centre with 5 x86 blades around 5 years back you would have paid around 650K. The x86 blade-infrastructure was replaced with Flex in 2012/2013 I think and to buy the newer kit would cost now about 2-3m. You could easily drop in 5 1-U's for less than 60K and get the same level of redundancy and performance and save yourself a whopping 2bar.

With the Lenovo deal going on for the last 12 months, I am surprised that neither HP/Dell has used this to their advantage to target those IBM customers (at least not locally).

This is entirely true on the costing front...

But Enterprises on that level are a strange beast... yes x86 servers cost less, but sometimes they will stick with the technology they know, even if it costs a fortune.

Also, I've found that occasionally, whilst on the face of it x86 can provide the same performance levels, its when you get into the nitty gritty of the system that the x86 systems fall behind... things like large scale IOPs and such they can fall behind...
 
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