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IBM, Lenovo server deal in limbo over security worries: WSJ

26
Jun
2014

(Reuters) – International Business Machines Corps proposed $2.3 billion sale of its low-end server business to Chinas Lenovo Group is in limbo as the U.S. government investigates national security issues, The Wall Street Journal reported, citing people familiar with the matter. U.S. security officials and members of the Committee on Foreign Investment in the United States (CFIUS) are worried that IBMs x86 servers used in communications networks and in data centers supporting the Pentagons networks could be accessed remotely by Chinese spies or compromised, the newspaper reported. IBM and Lenovo are trying to address CFIUS concerns about server maintenance and have said that IBM will provide maintenance on Lenovos behalf for an extended period after the sale, the sources told The Wall Street Journal.

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