IBM-Lenovo server deal in limbo amid Chinese spying fear

US government worried Chinese spies or hackers could access Pentagon networks

IBM's proposed server sale to Lenovo is in limbo after US officials raised concerns that Chinese spies or hackers could access top-secret data, according to the Wall Street Journal (WSJ).

Big Blue announced its intention to flog its low-end x86 server business to the Chinese firm back in January, and the process has not been smooth sailing so far – in June the pair asked authorities for an extension to give the US government more time to chew over security concerns.

And today the WSJ cites anonymous insiders who claim the deal is going nowhere fast after US officials raised further concerns about national security.

IBM's x86 servers are used in US communication networks and datacentres which support the Pentagon's IT, the insiders told the WSJ. This has worried US security bosses who are concerned the servers could be accessed remotely by Chinese spies or hackers or compromised through maintenance.

Back in January when the deal was first unveiled following months of speculation, UK partners cheered the merger and said they were pleased it was sold to a known entity.