Chinese PC giant Lenovo, fresh off its $2.3 billion acquisition of IBM’s (IBM) x86 server business, has reorganized from its two PC-centric business units into four groups—PCs, mobile, enterprise and ecosystem and cloud services—and promoted a number of top executives.

DH Kass, Senior Contributing Blogger

January 30, 2014

2 Min Read
Lenovo chief Yang Yuanqing says reorganization reflects new emphasis on alternate revenue sources
Lenovo chief Yang Yuanqing says reorganization reflects new emphasis on alternate revenue sources.

Chinese PC giant Lenovo, fresh off its $2.3 billion acquisition of IBM’s (IBM) x86 server business, has reorganized from two PC-centric business units into four groups—PCs, mobile, enterprise and ecosystem and cloud services—and promoted a number of top executives to run the new organizations.

Lenovo chairman and chief executive Yang Yuanqing said the move to reshuffle operations was driven by a need to find new revenue sources apart from the vendor’s flagship PC business.

“The new structure will help us be even faster, more focused and more efficient in providing innovative products and services to an incredibly diverse global market with a wide range of technology needs,” he said. “We know we must anticipate the next set of opportunities for our company, and we are preparing our organization for the future.”

As of April 1, here’s how it’s going to work for Lenovo:

  • PC Business Group, which includes both the Lenovo and Think brands, will be led by Gianfranco Lanci, currently Lenovo EMEA head. The unit is tasked with driving Lenovo’s core PC business worldwide.

  • Mobile Business Group includes smartphones, tablets and smart TVs and will be led by Liu Jun, who currently runs Lenovo’s consumer and mobile products business group. The new unit is tasked with boosting Lenovo’s presence in the smartphone, tablet and smart TV segments.

  • Enterprise, which includes servers and storage, will be led by Gerry Smith, who currently heads Lenovo’s Americas Group. Smith’s group will house systems from the IBM x86 server acquisition once the deal goes through. The group is charged with growing Lenovo’s server and storage business.

  • Ecosystem and Cloud Services includes Android and Windows platforms and will be run by George He, Lenovo senior vice president, who currently serves as CTO but will relinquish that role. The group is tasked with finding ways to monetize Lenovo cloud services and build out the vendor’s ecosystem in China.

Executive Changes

Lenovo promoted Peter Hortensius, who headed its Think business group, to CTO and also upped a number of top executives, including Jun and Smith, both of whom were promoted from senior vice president to executive vice president. In addition, the vendor also elevated CFO Wong Wai Ming to executive vice president and Lanci to COO and executive vice president, where he also will be responsible for Integrated Operations, Alliances and managing the vendor’s regular business reviews and processes.

As for its sales organization, Lenovo has partitioned the Asia Pacific region into two segments—mature markets, including Japan and Australia/New Zealand, headed by Lanci; and emerging markets, reporting to Chen Xudong, Lenovo China president. Lanci will continue to head Lenovo’s EMEA sales operation, with Smith in a similar role for the Americas and Xudong for China.

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About the Author(s)

DH Kass

Senior Contributing Blogger, The VAR Guy

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