Lenovo India : Gunning for SMBs

From a predominantly PC company, the last two quarters saw Lenovo emerging
into a systems company by foraying into servers and workstations. The company is
aggressively positioning its x86 servers for SMBs. It is also ramping up its
go-to-market efficiencies by expanding its channel base. On the commercial
side, telecom continues to remain one of the top verticals for the company,
followed by verticals like manufacturing. The appointments of channel veterans
like Amar Babu and Jairinder Gill in key positions also consolidated Lenovos
position in India.

On the consumer side, one key focus was its foray into the netbook spacethe
sub-10 inch form factor powered by the Intel Atom processor. This happened at
the end of Q2 when it launched seven new models and Lenovo expects good volumes
in the coming two quarters.

The company has clearly diversified its portfolio, and plans to offset the
expected slowdown in the PC front by workstations and x86 servers. However, the
company was not able to capture volume business for netbooks from the government
and education verticals which are booming verticals for competing companies like
Acer. On the desktop front, it launched the Think Centre A62 desktop in the last
quarter.