Dedicated cloud division disbanded in Lenovo rejig
Vendor shuffles pack 18 months after pair of major buyouts
Lenovo's dedicated cloud division has been disbanded as part of a widespread reorganisation at the vendor in the wake of its integration of two major acquisitions.
In autumn 2014 Lenovo closed the buyouts of both Motorola Mobility and IBM's x86 server business. After 18 months of integration, the Chinese giant has moved to reorganise its entire business.
The vendor's Ecosystem and Cloud Services (ECS) business is to be effectively disbanded. Individual cloud services will now be moved into the relevant product division, a move Lenovo claims to have made because it believes it "must continue to differentiate through a ‘device and cloud' strategy".
In the former ECS division's stead the firm is establishing a Capital and Incubator Group. This unit has been created with the remit of "developing new, innovative technologies through Lenovo spinoffs or investments in standalone startups, while continuing to develop Lenovo's overall cloud and big data platform". George He - previously head of the ECS arm -will lead the newly established unit.
Elsewehre, the vendor's PC Group will be subject to "significant realignment", and is to be rechristened the PC & Smart Device Business Group. In addition to PCs, tablets, and two-in-ones, the unit will also encompass phablets, gaming products and smart-home wares. Leading this division will be incumbent group chief operating officer Gianfranco Lanci, who will report to Lenovo CEO Yang Yuanqing.
The vendor's Enterprise Business is to be renamed the Data Center Group (DCG), which will operate "as an end-to-end business within Lenovo". The intention is that the division "empowered to move faster and more freely", while continuing to benefit from the wider group's scale and might. The business will be helmed by Gerry Smith.
"The new DCG will be an even more nimble and disruptive competitor, accelerating its open, partnership-focused approach with traditional, hyperscale and hyperconverged customers," said the Lenovo press release issued today.
The firm's Mobile Business Group will see several senior personnel changes, with Lenovo north America head Aymar de Lencquesaing teaming up with Xudong Chen, a veteran of the company's Chinese business, to serve as co-presidents. Meanwhile, former Motorola president Rick Osterloh is departing Lenovo.
Yang Yuanqinq said: "In the last year, Lenovo has delivered solid results, the fast integration of Motorola and System x businesses, and a series of innovative product launches across our portfolio. Now we must further accelerate our transformation into a customer-centric company. The changes announced today will build on our successes, rapidly deliver this transformation and ultimately drive Lenovo into a new phase of growth."
All changes are to take effect from 1 April.