The Lenovo deal will allow IBM to ditch its low-margin x86 business and focus on higher-margin services and software businesses, which it has been expanding for the last decade.
(Read more: Lenovo dominated worst-ever world PC market in 2013)
The Beijing-based PC maker will hope the deal could establish the company as a major player in the global enterprise server market, according to analysts.
While IBM's server business was the world's second-largest, with a 22.9 percent share of the $12.3 billion market in the third quarter of 2013, according to technology research firm Gartner, Lenovo did not appear in the top five.
The deal was a "hand-and-glove-type of transition" for Lenovo and could provide the growth needed for the company, according to Errol Rasit, research director at Gartner.
"Lenovo are extremely strong as a provider for China and has been trying to break in to the global market. This acquisition is really high-profile and will help Lenovo to gain global success and market share" Rasit told CNBC in a phone interview.
"It will see a lot of positive momentum from cross-selling IBM technology to Lenovo accounts."
(Read more: IBM earnings beat estimates, revenue comes in light)