Lenovo's purchase of IBM low-end servers, it's not that simple-Lenovo's purchase of IBM servers, Lenovo, IBM servers, IBM-IT information Lenovo's purchase of IBM low-end servers, it's not that simple

On June 26, people familiar with the matter said, because the United States Government is investigating safety issues surrounding the IBMx86 server, Lenovo's purchase of IBM low-end server businesses therefore remains uncertain.

Trading uncertainty

Lenovo announced in January a $ 2.3 billion acquisition of IBM low-end server businesses, but people familiar with the situation said, because United States telecommunication network and provide support for the Pentagon computer networks has adopted this type of server in the data centers, leading to the deal by the United States Government under close review.

However, Lenovo and IBM are trying to find ways to ease the United States Government's concerns.

People familiar with the matter said, United States security officials and United States Committee on foreign investment (CFIUS) is worried about Chinese spies and hackers these servers may remote penetration, or equipment maintenance process in which the left rear door.

Lenovo acquired in 2005 IBMPC operations once faced similar resistance. In marketing materials, the company claimed itself as a reliable global supplier, but the United States Government's sensitive sectors but have concerns about the company's technology.

CFIUS was eventually approved the Lenovo acquisition of IBMPC business, but the documents show, United States Army and then for the PC-related security issues to the Ministry of defence warned that while the United States State Department also prohibit the use of such products in its classified networks.

People familiar with the matter said, United States Government officials also worry that such x86 server can be grouped together to form more powerful machines.

Lenovo and IBM have said, x86 belongs to the low end of the server technology, other United States companies can manufacture. Not only that, but most servers, including IBM products are manufactured in China, and include parts of China. Lenovo also has said that the company's products are reliable and safe, and they focus on business objectives.

It was reported that in order to win more time, IBM and Lenovo had resubmitted its application for approval of the deal last month.

People believe that, despite all the concerns, but the deal could still be approved. IBM and Lenovo's current focus is to solve the CFIUS concerns about server maintenance issues. They have both said, IBM will over a period of time after the sale is completed, continue to represent the Association to provide maintenance services.

Maintenance issues became the focus

CFIUS is still worried that if IBM server maintenance contract expired, end of maintenance tasks are to be borne by the Association, resulting in server's security is threatened. Server maintenance including remote software upgrades, including on-site maintenance.

People familiar with the matter said, Lenovo United States Government says, server maintenance work will be used to refer to the company's 2005 acquisition of IBMPC business model. IBM agreed to within 5 years after the transaction is completed, continue to provide PC maintenance, subsequent agreements have repeatedly renewed.

Lenovo spokesman still expected the deal will be completed before the end of the. IBM spokesman said, both sides will support the review process, and ultimately expects to achieve positive results.

People familiar with the matter said, one possible result is that United States Government procurement IBMx86 server because the transactions were halted.

IBM Vice President of government programs kelisi·pandila (ChrisPadilla) said in January this year, IBM x86 server operations of $ 4.7 billion, the Government accounts for a relatively small, but he did not disclose which institutions use these devices.

CFIUS spokesman said that the Agency where the United States Treasury Department declined to comment.

According to data providers Dealogic's figures, the trade will be Chinese companies in the United States launched the most massive acquisitions in the technology sector. But the deal's announcement comes as both sides in the conflict escalating information security issues.

In recent years, the United States has repeatedly criticized China's participation in the United States businesses and the Federal Government's computer attacks. China, meanwhile, also in "Prism" whistle-blower aidehua·sinuodeng (EdwardSnowden) released documents expressing concern. Documents show United States computer spies have hacked into the China's large numbers of computers.

Refer to PC deals

One United States military former senior network officials, in IBM2005 years after the sale of PC business to Lenovo, United States Air Force received from the Lenovo laptop immediately after their return. In tests, they found, that laptop connection with China. Although the connection is not clear, but the United States remains concerned that these connections are unauthorized by the military. "That was the last time I saw Lenovo notebook. "The official said.

At the time of the deal served as the Pentagon's chief information officer lindun·weiersi (LintonWells) says the Pentagon continues to buy Lenovo PC some pause. "We finally decided to switch to HP or other United States supplier's products. "He said.

Lenovo has stated that United States Government has approved the participation of United States Government contract bidding, and some technology product distributors in some small orders are allowed to sell Lenovo computers to military, but it is not clear United States Government really use these computers.

In April 2006, after CFIUS approved Lenovo's purchase of IBM PC business, United States United States Commission (U.S.-ChinaCommission) two members sent a letter to members of Congress, calling for the United States State Department in investigating confidential plans to use Lenovo computers in your network. Which is by the United States Congress to create, to investigate business relations between China and the impact of national security issues.

Two members expressed concern that associations may be national institutions have ties with China. Public information display, Chinese Academy of Sciences, owns 36% shares of Lenovo, Legend Holdings, owns 32% shares of Lenovo.

But Lenovo said the majority stake in the company is held by institutional and individual investors.

Just a few weeks after the letter, United States Republican Congressman fulanke·woerfu (FrankWolf said in a statement, United States State Department not classified networks used in the Lenovo computers.

United States State Department spokesman declined to comment, but said all the Agency will strive to reduce the security risk.

Use goes beyond the expected

Since then, Lenovo and twice by a CFIUS review, so the company and IBM are expected, the Server transaction is expected to be approved in a relatively smooth process. "We are confident about ultimately achieve positive results. "IBM's pandila said in an interview in January this year.

But people familiar with the matter said, when the United States when authorities started investigating the transactions, realized that the server application in sensitive areas more than expected.

IBM x86 server has been United States air force is widely used and is used in the Defense Information Systems Agency (Defense Information SystemsAgency), large data centers, which provides computing and communications network for the United States military has provided support.

People familiar with the matter said, in addition, they may also be used in United States telecom operator's network, including AT&T, VerizonCommunications, and so on.

T, and Verizon and the United States Pentagon both declined to comment.