IBM made public today its newest strategy for expanding its System x product line – a new licensing agreement with Lenovo.  This agreement follows the template of the two companies’ PC arrangement: Both will manufacture and sell uni- and 2-way servers that bear their respective brand names. IBM Global Financing and GTS maintenance will facilitate sales and service of both brands. (Asked one participant in yesterday’s analyst briefing, “So, customers who need help will call Lenovo, and the service rep will show up in an IBM t-shirt?” The answer was, “Yes.”)

What’s in it for IBM? Most importantly, a way to crack the fast growing small-business (100 employees or less) market that has eluded them so far – with IBM capturing only a  7% market share. And should these little Lenovo customers ever ponder stepping up to a BladeCenter or 4-way system, IBM will be right there with incentives to seal the deal.

Company spokesmen stressed that there will be no cutbacks on the IBM Express program and that, in fact, this move is part of their “doubling down on SMB.”

The length of this licensing agreement is four years; it extends to Lenovo world-wide, with the exception of China. Industry observers can expect similar announcements in the future; according to company reps, there are more relationships such as this one “in the hopper.”