I believe they are referring to a shift to cloud-based servers that usually aren't stock IBM/HP/Dell, etc... machines, but rather custom builds for the cloud.

I wouldn't go so far as to say doomed, but it will be a shrinking business until is his a steady level.

Lenovo has done a pretty good job with the PC/workstation side of IBM that it bought a few years ago. There's no reason to think that they wouldn't do just as well with the servers. Just because IBM doesn't want to spend time for the small (to them) profit in servers doesn't mean that there isn't some real money to be made in that market.