IBM touting around SDN business for $1bn - report

Rumour has it Big Blue is not done on its non-core asset sell off following last week's x86 deal with Lenovo

IBM has staked a for-sale sign outside its software-defined networking (SDN) business as part of its ongoing strategy to offload non-core assets, according to a report.

Just a week after agreeing to sell its low-end server unit to Lenovo for $2.3bn, Big Blue is sounding out potential buyers of its SDN arm for a rumoured $1bn, according to a report by Re/Code.

Cisco, Dell, HP, Juniper and Fujitsu are among those IBM has approached, the report said.

According to the sources cited by Re/Code, IBM sees SDN, just like x86 servers, as non-core as it continues to push aggressively into services and cloud computing. The technology goliathy recently nailed its colours to the cloud mast by investing $1.2bn in building 15 new datacentres to expand its cloud business.

Although the software-defined market has been tipped for take-off - with VMware splashing $1.26bn on SDN player Nicira in 2012 - it appears IBM doesn't have the appetite to pour money into what is still a nascent market that will require heavy investment.

The SDN unit is not seen as strategically important by IBM, according to a source cited by Re-Code.

Just like the x86 sale to Lenovo, which took at least nine months to conclude, price may be a stumbling block, with one executive describing the $1bn price tag as "pretty optimistic".