Lenovo's AI Strategy Takes Major Step Forward as Infinidat Acquisition Expected to Complete by Year-End

Stock News
10/06

High-end enterprise storage solutions provider Infinidat has officially announced the expansion of its InfiniBox G4 storage array product line, introducing smaller form factor models and upgrading existing products. Simultaneously, Infinidat's Chief Marketing Officer Eric Herzog revealed in an industry media interview that LENOVO GROUP's (00992) acquisition of Infinidat is progressing smoothly and is expected to close by the end of 2025. This InfiniBox G4 product line update may represent Infinidat's final major product initiative as an independent company.

Infinidat has been recognized as a Gartner Magic Quadrant Leader for Primary Storage for multiple consecutive years, demonstrating its technical capabilities and market execution excellence. Since the acquisition partnership between Lenovo and Infinidat was announced in January 2025, progress has remained on schedule. While the acquisition amount has not been disclosed publicly, the complementary nature of both companies' businesses has emerged as a core highlight.

Herzog noted that Lenovo previously possessed entry-level and mid-range storage solutions with deep positioning in the AI server sector, but lacked high-end storage products. Meanwhile, Infinidat has long focused on the high-end enterprise storage market without involvement in entry-level or mid-range categories. Its developed Retrieval-Augmented Generation (RAG) AI data services can highly complement Lenovo's AI server business. "We don't have server business, and Lenovo doesn't have high-end storage with AI RAG capabilities. After integration, both parties can fill their respective business gaps and create a complete high-end storage and AI computing synergy solution."

In fact, Lenovo has continuously worked to address deficiencies in the high-end storage sector. Throughout its storage business development, the company has faced bottlenecks despite multiple external partnerships. Starting in 2012, Lenovo resold EMC storage products, collaborated with SimpliVity in 2015 to advance hyper-converged solutions, and adopted Nimble Storage technology in 2016 to launch converged infrastructure products. However, SimpliVity and Nimble Storage were subsequently acquired by competitor Hewlett Packard Enterprise (HPE), preventing Lenovo from establishing a strong high-end storage position.

This acquisition of Infinidat represents a crucial move for Lenovo to break dependence on external partnerships, fill gaps in proprietary high-end storage technology, and complete its data center infrastructure layout. Notably, this collaboration involves no significant product overlap, eliminating the need for large-scale adjustments to existing product lines.

Herzog emphasized that Infinidat's core advantages in the high-end storage market—including 100% availability guarantees, network recovery assurance, and performance guarantees—will remain unchanged. These capabilities represent areas where Lenovo previously lacked coverage in high-end storage. "Infinidat's addition will complete Lenovo's product portfolio and solution system, particularly providing more comprehensive high-end storage support for Lenovo's partners."

Upon completion of the acquisition, Infinidat's business will be incorporated into Lenovo's Infrastructure Solutions Group, further supplementing Lenovo's capabilities in high-end markets beyond small and medium-sized businesses (SMB) and mid-range storage sectors.

In the newly launched InfiniBox G4 products, Infinidat achieved breakthroughs across both system and software dimensions. On the hardware side, the new products reduced size by 30% from the previous 14U (rack units) to 11U, while introducing low-capacity versions with entry prices 29% lower than 2024's small-format models. Despite this, they maintain high-end enterprise product attributes—35-microsecond low latency, complete network security functionality, and newly added NVMe high-speed interfaces delivering twice the bandwidth of previous entry-level products.

On the software side, the G4 series achieves native operating system support for S3-compatible object storage for the first time, eliminating the need for additional components or separate arrays and significantly simplifying deployment processes. Additionally, Infinidat upgraded the hard drive configuration of hybrid G4 storage arrays, increasing effective capacity per rack to 33PB (petabytes)—nearly double the current maximum capacity of 17.2PB. Moving forward, Infinidat plans to introduce low-cost QLC (Quad-Level Cell) flash storage options, providing customers flexible choices for "dedicated data protection target devices" or "low-cost primary storage arrays," while offering partners clear performance guidance solutions.

Industry partners have expressed strong recognition for InfiniBox G4's market prospects. Neal Callahan, Chief Operating Officer of Sycomp—a Foster City, California-based solutions provider serving as both an Infinidat and Lenovo channel partner—stated that Infinidat's continued resource investment in upgrading the G4 product line is impressive. "The combination of smaller size, better environmental adaptability, faster bandwidth, stronger software functionality, and lower prices will drive customers to extend this storage technology to new scenarios including factory mini data centers, multinational enterprise small facility hosting data centers, and office campuses." He also sees strong application potential for the product in remote data centers and proof-of-concept (POC) centers.

Regarding the long-term value of Lenovo's acquisition of Infinidat, Callahan recalled Lenovo's successful acquisition of IBM's partial business operations, believing this acquisition will help Lenovo significantly expand its product line and enhance market competitiveness. "Even in the high-end small and medium enterprise market, this collaboration will bring significant value addition. We look forward to seeing the integrated parties bring more comprehensive storage and AI synergy solutions to the industry."

The simultaneous disclosure of Infinidat's new product launch and Lenovo's acquisition progress not only demonstrates Infinidat's technical expertise in the high-end storage sector but also highlights Lenovo's strategic determination to complete its enterprise IT infrastructure layout. As the acquisition closing approaches, the business synergy between both parties will bring global enterprise customers integrated "high-end storage + AI servers + RAG data services" solutions, promoting deep integration of enterprise storage and computing demands in the AI era.

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