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The company that exists today under the Lenovo brand, began as two separate entities. The giant that is IBM is referred to as ‘Big Blue’ and is a multinational computer power that has been a driving force behind computer technology for many years.

With its headquarters in Armonk, New York in the United States, IBM’s history dates all the way back to the 19th century and it still exists today, but its PC Division now belongs to Lenovo, the Chinese multinational computer company.

Right now, IBM as a whole employs over 400,000 staff across the world and it still retains more patents than any other US technology company in history. It has 12 research and development labs worldwide and has a raft of scientists, consultants, engineers and sales staff spread across 175 countries and the firm has won five separate Nobel prizes during its illustrious history.

Lenovo
Lenovo, who were themselves founded in 1984, acquired the PC Division of IBM in 2005 and it was their goal at the time to become the biggest producers of servers in the world and the purchase instantly made them the 3rd largest in the world by volume.

The Chinese company’s first major success came when they developed a circuit board that allowed Chinese characters to be processed by IBM compatible PCs and by the 1990s, they had begun producing computers under their own name.

Brand Recognition
One of the most compelling benefits enjoyed by Lenovo’s acquisition of IBM’s PC division, was the fact that it gave them control of IBM’s ThinkPad brand and technology, which is something that significantly improved their global brand recognition amongst consumers. The purchase cost $1.25b, which included $500m of acquired debt.

Another benefit was the control of IBMs international sales channels and operations teams, something which Liu Chuanzhi (The founder of Lenovo) states as being one of the key factors behind the purchase. IBM acquired just under 20% of Lenovo as part of the deal but has steadily reduced this holding to below 5% in the intervening years.

Server Lines
In 2014, Lenovo bought IBM’s Intel based server lines, which included IBM BladeCenter and IBM SystemX, which the company obtained for many reasons, but chiefly to access to a larger amount of enterprise customers and enjoy a closer relationship with Intel, the manufacturers of many of the majority of the world’s server processors.

Lenovo is now the largest producer of computers in the world and is yet another example of how the Far East has become THE powerhouse of IT technology on the planet.