Hyper convergence and Hyper scale driving growth in 2016
In January 2014, Lenovoentered into a definitive agreement with IBM to acquire its x86 server business. In the last one year, they managed to build a strong footing in the large enterprise space and achieve considerable growth; but more importantly, they have been able to build strong customer confidence. Specifically, Lenovo has seen some great wins around SAP HANA, HPC etc. in verticals such as telecom and manufacturing, automotive, FMCG, retail etc. Lenovo’s strategy for 2016 will be a combination of ‘protect’ and ‘attack.’ This means that they’ll protect existing strengths such as its strong solution capabilities and networking process. On the ‘attack’ front, they plan to invest in new products and alliances. Storage is one area to look out for since they only have entry-level offerings in storage as of now. Two big, emerging trends that Lenovo is investing in are hyper-convergence and hyper-scale. The partnership with Nutanixis a step in this direction. As the market moves from server sprawl to a converged network; customers prefer the convenience of a single management console for several infrastructure layers, be it the compute layer, hyperviser, networking, fabric or storage. By partnering with Nutanix, which is a market-leader in hyper-convergence, Lenovo will enable their customers to simplify IT Infrastructure by adding a software defined layer on top of their existing infrastructure to drive greater efficiency and agility to their data centers. The biggest advantage of hyper-convergence is that allows businesses to grow their infrastructure in the form of building blocks, instead of the current paradigm of large upfront investments and provisioning for growth two years in advance. Hyperscale will be the other big trend in 2016. Hyper scale refers to investments in 1000s of servers by companies. Lenovo also expects to see good traction on HPC and SAP HANA-based solutions in 2016. The company expects to see good overall market growth in 2016 driven by trends such as consolidation and virtualization, HPC and analytics. As always, channels will remain core to Lenovo’s business. Their channel partners have been steadfast through this period of transition and they see them getting even stronger. They’ve launched a number of unique initiatives such as an incentive program for lead generation (Lenovo kaSikandar) and health insurance coverage (Lenovo Cares) for partner team members. They will also invest in skills development for key partners, especially in areas such as HPC and SAP HANA.