IBM will split into two companies to focus on cloud and AI

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The giant IBM announced on Thursday (8) a strategic and structural change that involves the separation of an entire division of the company. The Managed Infrastructure Services unit will become a new company with a public offering of shares. The process is expected to be completed by the end of 2021 and was announced by the current CEO, Arvind Krishna.

The new company has not yet had a defined name and is called “NewCo” provisionally. It will maintain the agenda of 4,600 customers in 115 countries, with 90,000 employees and its own flexibility to operate. More focused on the corporate world, it aims to “design, manage and modernize the infrastructure of organizations” in the sector.

IBM, on the other hand, may focus on being an artificial intelligence platform and an open hybrid cloud, a strategy driven even further after the acquisition of RedHat, announced in October 2018. According to the company, this is a market opportunity that can move up to US $ 1 trillion.

Quarterly earnings

In addition to the separation announcement, the company also published some preliminary results for the third quarter of 2020. Altogether, IBM expects to report revenue of $ 17.6 billion.

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