OS foundation Software critical to X86 server business growth
Profit margins on the X86 Windows Server business have grown thinner, primarily because of the re-adjusted "real costs" for small business in calculating the inclusion of additional layers of robust and adequate security mandated by the severe intrusion attacks recently in networking and Cloud Computing based on Windows infrastructure.
Therefore unless Lenovo was willing to accomodate significant losses for a period of time to mitigate the X86 business purchase from IBM, or charge customers higher rates which certainly will be difficult in competing with HP and Dell, Lonevo would have no choice in such IBM purchase but to set main foundation of their X86 business on a major Linux (RedHat/Ubuntu ) and/or FreeBSD, and specifically target those international markets hardest hit by world economic recession, and pressing need for greater reliabilty and security capability.
Just recently I spearheaded a detailed and comprehensive Request for Proposal on behalf of a multi location dental practice for a complete technology revamp that included workstations, servers, networking, peripheral equipment, multi-user Dental Practice software rated to strongest and beyond HIPPA security standards, and a complete suite of contracted support services for a two year period. The software can be run on either latest Windows Server 2012, RedHat/CentOS Linux as well as FreeBSD, and can service Windows, Apple Mac OS X, Linux and two main mobile OS clients. The proposals were prepared by a seasoned Microsoft Gold Partner for Windows and an established RedHat/UNIX System Integrator firm for UNIX/Linux solution.
With all the criteria and guaranteed working operation of solutions being tested as generally equal, the RedHat solution was approximately 44% less overall, with inclusion of an additional year of contracted support services to 3 years.This was an income losing deal breaker for the Microsoft Partner, whose included hardware was from a Windows focused and preferred vendor, as was admitted the sales VP.
Can Lenovo and or Dell, HP continue to be at a competitive disadvantage in stagnant US market, or particularly in South and Central America, Europe, Southern Africa and parts of Asia that simply cannot support the exorbitance growing costs of solutions going forward. Even in Cloud Computing environment , a similar distinct difference exists in Windows Azure versus the Amazon AWS and OpenStack based dominant services that are considerable more reasonably priced, not to mention the greater scalability, robustness and better security gained.