Lenovo server business sees ‘significant increase’ in Fortune 500 clients in Q1
#Lenovo has pledged to invest in channel programmes for a datacentre business that was the only source of growth in its results for the first quarter of the 2017 fiscal year. The vendor claims that its Q1 server success was, in part, driven by acquiring a number of leading multinationals as clients. For the three months to 30 June, the Chinese giant saw global reported revenue decline six per cent year on year to $10.1bn (€8.9bn). Excluding the impact of currency fluctuations, revenue fell by four per cent. Despite the decrease in sales, the vendor’s quarterly pre-tax income increased almost fourfold to $206m. The firm’s PC and Smart Devices Group saw the biggest top-line contraction, with turnover down seven per cent annually to $7bn. Sales in the Mobile Business Group shrunk six per cent to $1.7bn. Lenovo’s Data Center Business Group (DCG) bucked the trend of declines, as sales rose one per cent to $1.1bn. The vendor claimed it enjoyed a 14 per cent spike in server sales in its home country, which was “driven by growth in the hyperscale business”. The datacentre unit’s global accounts sales team – which focuses solely on businesses in the Fortune 500 – posted a 45 reported per cent increase in revenue, fuelled by “a significant increase in customers who had not previously purchased from Lenovo”.