IBM – International Business Machines Corp. has planned to split up the company into two public ones to focus on cloud computing which has high-margins, as stated by the company. The company will list its information technology infrastructure services unit, altogether a separate company by the end of 2021 under a new name. As per the statement, the new unit will be part of the global technology services division which already serves around 4,600 clients with an order backlog of about $60 billion.
The chief executive officer, Arvind Krishna, said it is a landmark day for the company as IBM is redefining the future.
It is the CEO’s biggest attempt to revive IBM that is technically betting on the future on cloud computing and intends to become the biggest in hybrid- cloud software. He also added that they as a company had uncovered networking in the 90s and did the same with PCs in 2000s, moving forward divested semiconductors almost five years ago as all did not play a significant value proposition.
IBM has moved focus to cloud extension in current years, intending to gain for stalling software sales and periodical order for its mainframe servers. The CEO also said IBM’s software and solutions portfolio would account for the preponderance of business revenue following the separation.
Ginni Rometty, the executive chairman, said that IBM had positioned the company as the new age of the hybrid cloud. They aim to strive for more excellent value, improved innovation, and more agile execution for the clients.
With the pandemic affecting businesses, it has also concerned IBM’s services business. They have cut down thousands of jobs already with reshaping the business now. It has been struggling as many of their clients have been delaying payments regarding the IT or software upgrades as short-term stability and cash preservation to survive the pandemic.