AfterDawn: Tech news

IBM's server sale to Lenovo still in limbo after six months

Written by Andre Yoskowitz (Google+) @ 27 Jun 2014 20:37

IBM's server sale to Lenovo still in limbo after six months Earlier this year, IBM announced the sale of its computer servers business to Chinese giant Lenovo for $2.3 billion.
The deal remains in limbo, however, as regulators in the U.S. look to find ways to resolve security concerns. The x86 servers are used in national communications networks and also in data centers that support military and Pentagon networks.

As expected, U.S. security officials and members of the Committee on Foreign Investment in the U.S. (in charge of possible national security concerns) have worries that the servers could be remotely accessed by Chinese hackers, spies or officials or that the servers could be compromised through maintenance.

Lenovo purchased IBM's hardware PC business in 2005 and saw similar regulatory concerns. The deal was ultimately approved but the U.S. military later notified DoD officials of security breaches involving the PCs, leading the State Department to ban Lenovo computers on classified networks in the U.S. and overseas.

Both companies say the x86 servers are low-end tech, and that most servers are made in China of Chinese components anyway. Lenovo says its only objectives with the servers are commercial in nature.

Despite all the concerns, most sources believe the deal will pass this year.

Source:
WSJ

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