IBM announced a strategic plan to tackle the $1 trillion hybrid cloud opportunity by separating the managed infrastructure services unit from its Global Technology Services division. It will become a new public company, a spinoff that for now IBM is calling “NewCo.”
“IBM is laser-focused on the $1 trillion hybrid cloud opportunity,” said Arvind Krishna, CEO of IBM. “Client buying needs for application and infrastructure services are diverging, while adoption of our hybrid cloud platform is accelerating. Now is the right time to create two market-leading companies focused on what they do best. IBM will focus on its open hybrid cloud platform and AI capabilities.”
“Both companies will be on an improved growth trajectory with greater ability to partner and capture new opportunities — creating value for clients and shareholders,” concludes Krishna.