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In early on September, Dell and HP both announced that they would begin conveying Microsoft's Surface Pro family unit as part of their business organization production divisions. The terms and nature of the agreements MS reached with both companies are unknown, but we exercise know that Dell is bundling its ain services and warranty back up with the hardware, and HP will presumably follow arrange. At present Lenovo'southward president and CEO, Gianfranco Lanci, has told the Register that Microsoft approached his company, too — only to be sent packing.

Speaking at the recent Canalys Channels Forum, Lanci told the Annals that "I said no to resell their [Microsoft's] production. [Microsoft] asked me more than than one year ago, and I said no I don't see any reason why I should sell a product from within brackets, competition."

At first glance, information technology might seem insane that Dell and HP would sell Surface'southward, but the move to do so really underlines just how terrible the PC marketplace is. Dell and HP'southward internet margins are typically in the three-v% range, and while business machines likely make better profits, these aren't the $3000 workstations stuffed with Quadro or FirePro cards. Both companies rely on service plans and long-term agreements as a significant source of revenue. Hardware sales in the business segment are often a vehicle to drive lucrative products, not the lucrative products themselves. That said, neither visitor was thrilled about information technology — HP's Dion Weisler told the assembled crowd that HP sales personnel would not exist paid for selling Surface Pro and that " "we will sell, service and support Surface if the customer absolutely insists upon it just that is not our offset preference."

Surface Pro 4

Microsoft'south Surface Pro four

Surface sales were adequately stiff through the kickoff quarter of this year (Microsoft combines Surface with other production segments, which makes it difficult to break out). The company's recently appear Surface Pro 4 and Surface Volume accept both been well-received, but that'southward probable why companies like Lenovo are deeply wary of jumping in bed with Microsoft. Redmond claims that information technology didn't get into the hardware business organization to make money, just because OEMs had done such a miserable job of promoting PC hardware that anyone would want to use (Ballmer didn't exactly use those words, only the point came through).

Ironically, the just hardware I'd always recommend purchasing from Lenovo would be equipment with someone else'south brand on information technology. Lenovo's Superfish debacle created the worst security nightmare in the PC industry since Sony'south rootkit disaster ten years ago. As recently as August, it was caught shipping laptops with crapware installers that could reload sure products fifty-fifty afterwards a completely clean install.

Lenovo may feel that it can beget to flex its muscle; the company is making moves into phone technology and is the largest arrangement vendor by volume. Then again, the products affected past the company'due south shenanigans have all been consumer hardware — Lenovo's business organization customers, who presumably buy Thinkpads or servers, haven't been impacted.