Taiwan's Gigabyte spins off server biz as wholly owned subsidiary

Taiwanese OEM Gigabyte has split itself in two, spinning off its enterprise solutions business as an independent but wholly owned subsidiary that will focus on the development and sale of servers and server motherboards, while Gigabyte will continue to manufacture consumer motherboards and other technology. According to …

[the spectacularly refined chap]

Market share?

Does anyone know what sort of market share Gigabyte have in the server market? It seems the wrong way around given the fat margins in there opposed to the commodity market, assuming this is a prelude to a sell off off course.

Only reason I can see it would be an attractive proposition is that if they are not shifting enough volume compared to design and set up costs. Sure the server market is dominated by the big players, e.g. Lenovo, HPE, Fujitsu, Dell and if it was off the shelf parts I'd probably opt for Supermicro myself, for a server at least, but surely they're shifting enough kit to make disposal an unattractive option?

[Anonymous Coward]

"Gigabyte claimed the split would allow the two companies to focus more on their core markets ... enabling them to allocate capital and resources with greater efficiency."

Then in 5 years time, a merger will take place to allow the companies to cut overheads and simplify their supply chains and back office operations. Win win!

[NeilPost]

It has the odour if the split in Hewlett Packard, but without the wrap if Consulting, Network, Cloud and Storage Businesses.

Makes no sense unless consolidates with another similar business as existing economies/volume of scale will dwarf the ‘run as a separate business’ chanting.

Like Intel running Xeon business separate to the rest of the X64 business.