Lenovo is trying to become the world’s largest hyperscale infrastructure provider even though their data center is still relatively new. For the first 5 years Lenovo got off to a slow start but now they are picking back up and remain a decent contributor with just over one tenth of the company’s revenue.
Lenovo’s Data Center Group wants to be the most trusted data center partner while empowering intelligent transformation. Lenovo is mainly known as a PC maker but after the company acquired IMB’s x86 server business in 2014, the company built its datacenter group. After low sales in 2017 were reported the company brought in new leadership, created new customer segments and put a focus on supply chain and continued to introduce new products.
For the fifth consecutive quarter the Date Center Group has reported a profit growth with a 31 percent year-over-year increase in revenue. Over the next year Lenovo will be building out its hyperscale capabilities significantly starting with the ODM-plus approach. This approach means they will be working closer with server manufacturers but also building custom products. With this approach their goals may not be too far ahead.