Avnet reviews Lenovo portfolio following global enterprise deal

Avnet reviews Lenovo portfolio following global enterprise deal

"October numbers are positive, so first impressions are good impressions," Avnet general manager, A/NZ, Darren Adams

Avnet vice-president and general manager A/NZ, Darren Adams.

Avnet vice-president and general manager A/NZ, Darren Adams.

Avnet Australia is examining the full Lenovo technology portfolio following a recent global deal which has brought the two companies closer together.

The global deal, which closed on October 1, has seen Avnet take over the distribution of Lenovo's enterprise products, including Lenovo's x86 server after the PC manufacturer bought IBM's System X server business.

Avnet was formerly IBM's largest x86 distributor worldwide.

Avnet vice-president and general manager, A/NZ, Darren Adams, said Lenovo's acquisition of IBM's server business had resulted in a transferral of long standing relationships with former IBM staff.

"It took us a month to build a 20-year relationship," he said.

"We have a long history with IBM and that translates directly, so we now officially have a long history with Lenovo.

"These are all the people we know and love and work with extensively."

He said there was no doubt that Lenovo offered an interesting portfolio for Avnet.

"We are consciously, in many parts of the world, looking at some of their technology and how we might bring that to market," he said.

"We are absolutely reviewing their portfolio for the suitability and value that Avnet espouses."

The company now distributes Lenovo's System x, BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, blade networking, and maintenance operations.

Adams said the transition for resellers from IBM to Lenovo had so far been a smooth one.

"Our October numbers are positive, so first impressions are good impressions," he said.

"I think Lenovo is looking at this as a key strategic product for them. The things they are doing structurally indicate they they see the importance of this product series and I see that as value, because they will want it to win. There's a different level of impetus here."

The $US2.1 billion takeover of IBM's x86 server business makes Lenovo the third largest player in the $US42.1 billion x86 server market.

Lenovo’s global plan is to achieve $US5 billion revenue in this division, and higher profitability than the PC division within the first 12 months.

Adams said for current resellers it was business as usual.

"In the immediate term that's what we want to hope for and that's what we have currently," he said.

"In the long term, we want some leverage, we want to be more competitive then we were before.

"Sometimes a freshening up of the portfolio with a new set of eyes and new owners can also give it a kick along. Lenovo has a lot of buying power in that consumer area. It is an efficient organisation and my suspicion is that is going to give them something that IBM could not in the long term.

"Our job is to enable our partners to win and I don't think that changes."

Adams said Avnet's long standing relationship with IBM would continue with a focus on software and converged systems.

"We have been with IBM for 15 years and its very important IBM remains," he said.

"But Lenovo will become one of our top 10 global suppliers overnight. That's pretty significant. They are important to us and we are important to them.

He said Avnet was the only traditional distributor which was an authorised IBM trainer.

"IBM can now get laser focused on what's left," he said.

"I think both businesses will go at a faster pace now that they are separate. I think we are going to get two for the price of one."

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Tags A/NZDarren AdamsIBM's System X server businessAvnet general manager

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