Lenovo’s bid to expand data centre solutions beyond compute and servers
Every data centre provider wants to be number one. However, if you take a quick glance at the industry as a whole, you will see no signs of companies directly competing with each other.
Instead, providers maintain their own lane and work towards individual company strategies.
Lenovo Data Center Group is one of such companies whose vision of becoming a trusted data centre provider is within its grasp.
This year alone, the Hong Kong-based company, with U.S. headquarters in Raleigh, N.C, has taken to great lengths to shine a light on its data centre innovation strategy by hiring new leaders to drive channel sales.
Yesterday, the company reported that its revenue in the second quarter reached $13.5bn, but its overall revenue in DCG declined 13.8% as a result of lower prices for key components and softness in demand from some of its large hyperscale customers.
Wilfredo Sotolongo, Lenovo Data Center Group’s (DCG) Chief Customer Officer reveals to Data Economy in an exclusive interview that the company has been expanding its abilities beyond compute and servers into a variety of solution areas for data centres.
“We see customers valuing companies that are able to provide solutions. If you observe what we are doing as a corporation we are driving to this core thought that we are best at providing technology to all of our constituencies, whether it is data centre buyers or PC buyers,” he says.
Earlier this year saw the launch of Lenovo TruScale Infrastructure Services, allowing customers to pay for their servers, storage arrays, and networking switches on a monthly basis as they would for software.
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Despite the 13.8% decline, the company reports its revenue – excluding hyperscale – grew almost 13% year-on-year with China reporting more than a 47% increase in non-hyperscale revenue compared to the same quarter a year ago.
In addition, there was strong double-digit growth in storage, software-defined infrastructure and high-performance computing as a result of an expanded storage portfolio, with the firm predicting that its hyperscale base is expected to expand and return to growth in the second half of the fiscal year.
As Chief Customer Officer, but also formerly EMEA Vice President, Sotolongo has an understanding of UK and European data centre markets, and explains his ambition to take advantage of industry trends.
“We see continued migration and workload to the cloud, and customers being a little more rigorous about the transformation of those workloads. We also see providers experimenting with new architectures, edge compute platforms and we also see the instrumentation of platforms so that you can generate data about the state of that physical world,” he adds.
“We recently announced the creation of a new business group within Lenovo that focuses on IoT technologies, which will have the ability to create a new in-store experience for retailers.”
Although global trade and geopolitical uncertainties persist, they continue to have a negligible material impact on the financial performance of the company.
Lenovo is a provider of supercomputers, and powers the Barcelona Supercomputing Centre’s Mare Nostrum, which is finding vaccinations against AIDS, and new radiation treatments to fight cancer.