Welcome!

SOA & WOA Authors: Carmen Gonzalez, Pat Romanski, Elizabeth White, Victoria Livschitz, Larry Dragich

Related Topics: SOA & WOA, Java, Linux, Web 2.0

SOA & WOA: Blog Post

Is Lenovo Staging a Takeover?

Lenovo Is Experiencing Massive Growth

If the CEO of the company has anything to say about Lenovo's standing in the PC industry, the company won't stop until massive growth is achieved. In a series of recent buying sweeps, Lenovo has bought Motorola Mobility for a whopping $2.91 billion from Google and also acquired the server business side of IBM for another $2.3 billion; the CEO said in March 2014 that Lenovo will "continue to acquire companies" to secure more growth. It seems like there's no end to the funds Lenovo has available, and closing these two big deals have set up the company for a major overhaul. However, some critics are wondering if Lenovo has what it takes to pull off such a makeover.

It's one thing to acquire companies, and another to make those big purchases profitable within a reasonable timespan. Back in 2005, Lenovo picked up the personal computer division of IBM for $1.25 billion, so it seems like they're setting their big picture goals on that company in particular. One of the big worries which emerged with the Motorola purchase was that of more layoffs, but Lenovo says not to worry. According to the CEO, layoffs are finished and there won't be any more just because of the takeover.

Words from the CEO
To address these fears, Yang Yanging, Lenovo CEO, said at a shareholder meeting, "Motorola's handset business has already reduced its head count to around 3,500 employees from 30,000 in the last two years before Lenovo's acquisition. The remaining employees are all talents and most of them are engineers that can help improve Lenovo's product development in mature markets. We can continue to grow our business without cutting any employees." That certainly helps Motorola workers sleep easier at night, but what else does Lenovo have up their sleeves?

In a world that's going mobile at an incredible speed, Yanging might just be in the right mindset to make some killer moves. By focusing on the server and mobility side, the CEO is right in step with where the tech focus is on a grander scale. Even some of the most traditional industries, such as marketing, are moving into a more digital world by focusing on digital email marketing campaigns and fostering relationships with customers via social media platforms. Of course, these businesses and customers (which is a category almost every single person falls into) need the right technology to make this happen and Lenovo seems happy to provide it.

A smart strategy
Lenovo has a long history of first buying and then scaling companies, such as when the company picked up ThinkPad in 2005. At the time, ThinkPad was a fledgling attempt but Lenovo had what it took to improve it and scale the business into something that became the leading shipper of PCs around the globe. In fact, this strategy worked so well that in 2013, Lenovo surpassed Hewlett Packard (HP) when it came to overall PC shipment and that's one title the company isn't giving up. Slow and steady really can win the tech race, and Lenovo's out to prove it.

The CEO hasn't been very vocal about the next move with these acquisitions, but a guess is that the company will leverage Motorola in an effort to take an even more dominant stance. Already, Lenovo is a big player in the mobility market, but they need a sure thing to secure their spot and Motorola might be it. Lenovo has released an official statement, stating that the company is confident in turning what's now an unprofitable division of Motorola around 180 degrees in under six quarters.

Shooting for the stars
Actually, Lenovo has estimated that it can do this makeover in just four months at best, but the conservative numbers reflect a company that doesn't want to act too quickly or make rash promises. This is a vulnerable time for Lenovo, and each step must be made carefully as billion-dollar acquisitions will likely keep happening. It's quite possible that Lenovo will climb the ranks swiftly and largely under the radar of consumers.

There's no doubt that Lenovo has the leadership and employees to operate a highly profitable business, especially as Chinese companies stake more claims in the tech industry than ever before. While some of the competition can act too swiftly, Lenovo is known for taking a slower and more thoughtful approach. This has worked well for the company in the past, and they're picking up speed at a steady pace. It's too soon to tell if Lenovo really has what it's going to take to monopolize other tech industries, but the company and CEO is definitely off to a grand start.

More Stories By Drew Hendricks

Drew Hendricks is a writer, as well as a tech, social media and environmental enthusiast, living in San Francisco. He is a contributing writer at Forbes, Technorati and The Huffington Post.

@ThingsExpo Stories
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device experiences grounded in people's real needs and desires.
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.