#Lenovo reportedly has become a server supplier of #Microsoft 's datacenters and is the software giant's fifth supplier following Hewlett-Packard ( #HPE ), #Dell, #Quanta Computer and #Wiwynn, a server subsidiary of Wistron. However, related players all declined to comment on their orders. Lenovo is estimated to start shipping servers to Microsoft in the third quarter. With Microsoft tightly controlling its server supply processes from key component purchasing to back-end assembly, HP, Dell and Lenovo are mainly in charge of their server products' final assembly. Lenovo server's motherboards reportedly will be supplied by Quanta. Lenovo's entry into Microsoft's datacenter supply chain is also expected to help the China-based player, which currently has 70% of its revenues from PC products, to diversify. Lenovo announced it will reorganize its business structure and establish a business group for the datacenter market at the end of March. Prior to its acquisition of IBM's x86 server business, Lenovo's major server clients were mostly from China, and the acquisition has successfully brought the company into the worldwide market. However, in addition to competition from first-tier server brand vendors such as HP and Dell, and server OBMs such as Quanta and Wiwynn, Lenovo is also seeing strong competition from China-based Inspur and Sugon. Sugon's server sales have achieved 60% on-year growth for three consecutive years and the company has a share of 60% in China's datacenter market. With its R&D ability improving dramatically after the acquisition, Lenovo has been using its advantages in key component purchasing and assembly, looking to expand its presen
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