Even as the personal computer (PC) market is seeing moderation post pandemic, personal technology major Lenovo sees scope for growth through its solutions and services offerings. It has also upgraded its manufacturing capabilities in the country.
“We are uniquely positioned because of the width of businesses. There is computing, data centers, servers and Motorola business; hence, end to end, there are many businesses where we are still seeing some headroom for action,” Shailendra Katyal, Managing Director, Lenovo India, told businessline.
The Indian PC market declined 11.7 per cent y-o-y in Q3 FY22 after eight consecutive quarters of growth. Lenovo, in the quarter, overtook Dell for the second position with a strong showing in the consumer segment where it held an 18.8 per cent share, thanks to online sales. In a quarter of softening SME procurement, Lenovo led the segment with 32 per cent share, according to IDC.
Katyal said while hardware still remains to be the core business, Lenovo is on a path for service-led transformation and is adding about 8-10 per cent of revenue from solutions and services. Lenovo’s one part of services is handling the management, security and disposing of its hardware products. It is now also providing managed solutions like workplace solutions and smart classroom solutions to the hardware that’s not necessarily installed by Lenovo, according to the MD.
The company is also seeing increased traction for its as-a-service approach, which means it will manage the entire asset lifecycle of the products under a subscription model. The market major is also increasingly focused on being a point of integration by bundling the products with services of other providers and is also acting as a distributor, Katyal said.
As businesses lean towards hybrid cloud, Lenovo is offering a similar private cloud kind-of an experience where customers buy the servers but pay on a metering basis. Katyal said it is cheaper than the conventional private cloud. “We believe that hardware will move to metered consumption model at least 20-30 per cent. Even with the core category maturing, there are enough tailwinds to find new avenues,” he said.
The company has also upgraded its India manufacturing capabilities, in line with the Aatmanirbhar Bharat push by the government. It has expanded the manufacturing unit it got from IBM. Katyal said the capacity of the unit has increased from 400,000 to one million across stock keeping units (SKU). While previously the unit only manufactured desktops for enterprise customers, it is now making all product lines right from the entry level.