Lenovo simply had an occasion at DreamWorks to launch its new line of Aston Martin-designed workstations. Equally fascinating was DreamWorks’ announcement that it switched to Lenovo servers because of the large operational financial savings that Lenovo servers present through the use of know-how that none of its main opponents appears to have. In consequence, for purchasers who want a whole lot of efficiency in a restricted house, which is just about everybody, there is just one selection: Lenovo.
Let’s speak about how Lenovo went from being nothing within the server market to main it.
Lenovo’s ramp and warm-water-cooling benefit
Lenovo is comparatively new to servers, so it could be fascinating to speak about how Lenovo acquired there since its server division got here out of IBM. Lenovo’s server ramp was each fascinating and painful to look at. The X36 server division in IBM all the time appeared higher on paper than in particular person, largely as a result of IBM tended to favor its personal know-how. This X86 group had far an excessive amount of in frequent with Cinderella given it had tons of potential however was always below resourced.
So, Lenovo was capable of purchase the unit from IBM very similar to it purchased the PC Firm from IBM years earlier than. Not like that different IBM unit, the X86 server unit was extra part of IBM’s server enterprise, not an unbiased stand-alone unit, and there have been a whole lot of preliminary issues. One was it couldn’t be left alone as a result of it couldn’t stand alone, and integration mergers are usually each problematic and costly. This proved true right here with government conflicts that resulted in a whole lot of turnover and poor efficiency initially.
Nonetheless, Lenovo didn’t hand over. It handled the brand new unit issues the way in which it handled its Motorola smartphone enterprise. It stored pounding away at it till it acquired an government workforce that was not solely competent within the phase however may combine with Lenovo company. Then, and solely then, did we start to see the hidden potential of this server group, nevertheless it wasn’t till they realized that they had entry to an IBM sport changer that issues actually took off.
Heat water cooling
That sport changer was heat water cooling, which had been IBM-driven however under-marketed. Heat water cooling has comparable benefits when it comes to noise and warmth mitigation to chilly water cooling, however it’s far more cost effective and, it seems, way more environment friendly. Like chilly water cooling, it considerably outperforms air as a warmth mitigation know-how, however because you don’t have to relax the water, it eliminates a lot of the structural house you’d want for chilly water cooling. So, you get the advantages of low noise, larger efficiency (no heat-related throttling or warmth switch from one processor or GPU to a different), and IBM and Lenovo labored out how one can do dependable quick-disconnect connectors and pivot pipes to maintain service and upkeep prices low.
The result’s an answer that, in line with DreamWorks, is so environment friendly, utilizing the answer garnered it a number of awards for sustainability and power financial savings. The power price discount was vital at over 30%, whereas decreasing considerably the necessity to increase server room capability. In a approach, the financial savings appeared too good to be true, however then proved to be true, resetting expectations for DreamWorks that competing server distributors couldn’t match.
DreamWorks is among the high reference accounts in know-how given its heavy want for prime performing servers and workstations. DreamWorks additionally likes to depend on one vendor, and Lenovo seems to be that favored vendor now.
Wrapping up
We’ve witnessed loads of fascinating market surprises this century. Apple stunned the market with the iPod and iPhone, successfully wiping out the distributors that owned these markets earlier than through the use of artistic, good advertising. Tesla outvalued conventional automotive makers by seeing the chance for a greener electrical automotive earlier than anybody else, despite the fact that GM began down this path first after which did not adequately fund its effort. Now Lenovo has gained the workstation market by embracing AMD’s Threadripper line first and is now transferring to personal servers by recognizing the advantages of heat water cooling lengthy earlier than anybody else. And it seems like Microsoft is on a path to take out Google by recognizing the sport altering potentialities of generative AI.
This isn’t a market the place you may sit nonetheless and benefit from the fruits of your previous efforts. Should you aren’t always pushing, you’ll be bypassed. Lenovo simply demonstrated this once more with its warm-water-cooled servers. Given Lenovo’s completed one thing comparable with workstations, I count on the corporate isn’t completed but. It’s on monitor to personal these markets if its opponents don’t take it extra significantly.
Focus, innovation, perseverance, and execution are the legs that Lenovo’s success stand on. If its opponents don’t step up, Lenovo is prone to do to them what Tesla did to its opponents.
As President and Principal Analyst of the Enderle Group, Rob gives regional and world corporations with steerage in how one can create credible dialogue with the market, goal buyer wants, create new enterprise alternatives, anticipate know-how adjustments, choose distributors and merchandise, and follow zero greenback advertising. For over 20 years Rob has labored for and with corporations like Microsoft, HP, IBM, Dell, Toshiba, Gateway, Sony, USAA, Texas Devices, AMD, Intel, Credit score Suisse First Boston, ROLM, and Siemens.
