4/1 Lenovo cut their only exclusive DCG distributor in the US - Arrow... 5/28 massive DCG layoffs... anyone left with a DCG badge prepare to trade it in soon for a badge with a new logo when Lenovo sells off the under performing DCG portion of their business.
18 replies (most recent on top)
DCG is worthless and always will be. It doesn’t take an MBA to figure that out. My fourth grader knows it.
Buying Lenovo stock?? Sounds like you didn’t get RSUs, loser. So what exactly is your grand idea? Keep waiting and hope for someone to eventually buy? Throw more money at a failed business? Instead of criticizing others, share your plan / may be we will learn a thing or two, since we have zero knowledge.
@dud+15c6R33C - you "have an MBA" and "several published papers" LOL okay pal. If you had half the brain you claim you wouldn't buy Lenovo stock to begin with. It's worthless and has been since the big ol dip in 2008/2009.
You guys are all making a lot of outlandish claims based on ZERO knowledge or information. Dump the company. Let it go. Sell it off.
Do you think company sales just happen on eBay like a pair of socks? How long and difficult of a process do you think this is? Making claims like you have an MBA are nice on an anonymous forum like this. But read up a little bit on processes and come back with an actual argument. Until then, stop embarrassing yourself.
your a disgrace.
calling me out as a PCSD employee, and not as qualified as lawyers, account (:) or clever peoples.
its me who says let it go.
get ready for this, I have an MBA, head of a finance organisation, worked in 3 geographies, several published business papers (people pay me for this).
DCG is the worst performing group in Lenovo.
it was seperated to sell it off , we cant,
nobody wants it,
let it go,
take the strategy away from the american leaders,
take it to china, or europe, or wherever.
let it go means take it away from the ibm intel axis. they are c-ap.
i want my share to grow, it has not had a crop in 6 years,
Paul “sleepy” Ju and MS. Look at what Walmart did with Jet.com, they realized they made a mistake and shut it down. DCG was a big mistake / absorb the right talent to PCSD and move on. Stock price will instantly go up.
ODM+ was never an effective strategy. It was an attempt to explain away DCGs inability to compete with White Box providers. Hyperscale was a smoke and mirror attempt to get the focus on revenue growth while trying to grow profit through traditional server business which never happened. The original strategy from the former Intel leader was to reduce channel partners. When that didn't work the smoke machine was fired up again and the new strategy was to rely on channel partners. There's a reason Intel wasn't going to advance their former VP and it's been painfully obvious at DCG. None of the execs he's brought over from Intel or former IBM's queen of blockchain have been effective. All the original talent that Lenovo paid for is gone. It's a continued slow death now. The patient is terminal and on life support. Sad really.
Not a fan of the NA executive DCG leadership. Just the next group to run this business right into the ground. Who needs sales people? The channel partners LOVE us and they can do all the heavy lifting. Our customers? They don't need to see us, we would have to travel and that costs money!
Who is Mr ODM+ and what is the one account? The energy in DCG is flat compared with IDG. The top leadership doesn’t even acknowledge the field sellers and operational folks that drive the business. I doubt the Intel folks even know our names. And the new NA DCG leadership! Take your British accent and go back across the pond. Let’s clear out the executive ranks and roll up our sleeves and get to work. And know the impacted DCG members will be missed.
@rui+15c6R33C - hyperscale at NEAR zero? LOL try negative margin man. You think we win business in hyperscale turning a profit?
Where do you suppose we "let go" to? Or is your plan only half-baked and your goal is to dump DCG and pretend it never happened. If that's the case, you might be even more daft than the people running this org into the ground.
Yes, Elsa here. Lenovo paid $2.3B in 2014 for your division. 6 years (24 quarters) of non-stop bleeding and no clear way to make a dime. Hyperscale has near zero margin and your Mr.ODM+ has shown he cannot grow beyond one account. At some point you have to ask - what’s the end-goal? Beef up the pockets of bunch of executives for their retirement? Let go.
x86 servers are a commodity business. IBM sold it for that reason. It will never be profitable except to the execs running (or not running) DCG. It has failed miserably and at this point can only be scaled back to a former Thinkserver business model. That means ultimately a very small US footprint managed from China. Hyperscale is not a sustainable business model after several years of trying. The emperor has no clothes.
@dur+15c6R33C - I don't know if you know this, but DCG is already a separate corporate entity called "Lenovo Global Technology", so what you're suggesting has already been done.
It's also kind of funny how some random PCSD employee assumes they know better than the plethora of accounts, lawyers and executives that exist within Lenovo Group and can make a better call. "let it go" - calm down Elsa, what's the plan for letting go of a multi-billion dollar investment? Just dump it? Get a grip.
The best option is spin off the group the same way HP did with their HPE business and call it a day. There is zero overlap with our PCSD division and we will continue to grow with the WFH trend without having to carry DCG’s weight. They are also suppressing our stock price / dead weight. Let go.
AWS already does this. It is called Ramses and we bid / lost in 2018
In terms of who may purchase, what about a HyperScale or a Cloud company like AWS who wants to own it's own end-to-end manufacturing? That could significantly cut their HW costs to maintain their cloud platform and brand an Amazon DataCenter x86 server line with a direct sales (IE: Dell) model. Just a thought.
Boy am I glad I abandoned that sinking ship helmed by incompetent leadership a month ago!
There is no company I can think of that will purchase DCG. I had a good friend that was an Exec that was literally shocked that I was laid off a year ago along with dozens of others. He and most of us were part of the IBM acquisition. The day he left for a competitor, his comment to his boss was "how do you get rid of staff that have a direct expense savings of more than 20x their burden rate?" When he left the following quarter, he showed them how much they overspent their budget and how it would not have happened with the team in place they let go. He told me if Exec truly cared about being profitable, they would have taken the data seriously. When they didn't bat an eye at it, he knew there was no solution. He said when he walked out of his boss's office, he called the headhunter with the company that was recruiting him and told them he accepted. He went back to his boss's office 10-minutes later and quit on the spot. He and I met for lunch and had a few beers. He couldn't believe how stupid they were. Their only belief is they can get profitable by getting rid of successful US workers and replacing them with Chinese labor. They have proven that it will never work.