{"id":41426,"date":"2020-10-08T14:24:10","date_gmt":"2020-10-08T14:24:10","guid":{"rendered":"http:\/\/icloud.pe\/blog\/?guid=5937a3a26c53cc675e2f7d07f372c88e"},"modified":"2020-10-08T14:24:10","modified_gmt":"2020-10-08T14:24:10","slug":"ibm-to-spin-off-infrastructure-business-as-it-goes-all-in-on-cloud","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/ibm-to-spin-off-infrastructure-business-as-it-goes-all-in-on-cloud\/","title":{"rendered":"IBM to spin off infrastructure business as it goes all in on cloud"},"content":{"rendered":"


\n Sabina Weston<\/a><\/span>
\n <\/span><\/p>\n

\n
\n
8 Oct, 2020<\/span><\/div>\n<\/p><\/div>\n<\/div>\n

\n<\/a><\/p>\n

\n

\u200b<\/span>IBM<\/a>\u00a0has said it plans to\u00a0split its business in half by spinning off\u00a0its infrastructure services\u00a0unit into a separate public company, bringing to an end a strategy that saw it attempt to\u00a0shift towards cloud growth while maintaining a foothold in its legacy business.<\/p>\n

The aim is\u00a0to create two separate companies, each with its own strategic focus, in a tax-free deal\u00a0expected to\u00a0be completed by the end of 2021.<\/p>\n

Announcing plans to create the yet-unnamed company, IBM CEO Arvind Krishna<\/a> said that \u201cnow is the right time to create two market-leading companies focused on what they do best\u201d.<\/p>\n

\u201cNewCo will have greater agility to design, run and modernize the infrastructure of the world’s most important organizations. Both companies will be on an improved growth trajectory with greater ability to partner and capture new opportunities \u2013 creating value for clients and shareholders,\u201d he added.<\/p>\n

Commenting on the announcement, IBM executive chairman Ginni Rometty said that the company\u2019s managed infrastructure services business \u201chas established itself as the industry leader, with unrivaled expertise in complex and mission-critical infrastructure work\u201d.<\/p>\n

\u201cAs two independent companies, IBM and NewCo will capitalize on their respective strengths,\u201d she said, adding that the NewCo \u201cwill accelerate clients’ infrastructure<\/a> modernization efforts\u201d.<\/p>\n

Meanwhile, IBM is to focus entirely on its AI<\/a> capabilities and the hybrid cloud<\/a>, which Krishna described as a $1 trillion opportunity.<\/p>\n

The company announced that it will accelerate its hybrid cloud growth strategy in order to streamline its clients\u2019 digital transformation<\/a>\u00a0processes.\u00a0<\/p>\n

Rometty said that IBM has been set \u201cfor the new era of hybrid cloud\u201d and credited the company\u2019 acceleration of its open hybrid cloud platform to its acquisition of Red Hat, which was snapped up for approximately $34 billion in 2018<\/a>.<\/p>\n

IBM’s open hybrid cloud platform architecture had been based on RedHat containerization software OpenShift<\/a>.<\/p>\n

Last month, Red Hat and IBM co-launched a one-stop-shop marketplace<\/a> for customers seeking to run OpenShift enterprise applications on their hybrid cloud infrastructures<\/a>. The marketplace aims to deliver an ecosystem of software from independent vendors so enterprise customers can easily deploy new tools on their hybrid cloud infrastructures. Red Hat Marketplace offers a broad catalogue of more than 50 open-source software, from vendors such as CognitiveScale, MongoDB and StorageOS.<\/p>\n

IBM said it expected to hit revenues of $17.6 billion, in line with estimates, in a separate earnings statement issued on Thursday. <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Sabina Weston<\/p>\n

8 Oct, 2020 <\/p>\n

\u200bIBM\u00a0has said it plans to\u00a0split its business in half by spinning off\u00a0its infrastructure services\u00a0unit into a separate public company, bringing to an end a strategy that saw it attempt to\u00a0shift t…<\/p>\n","protected":false},"author":627,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-41426","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/41426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/627"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=41426"}],"version-history":[{"count":3,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/41426\/revisions"}],"predecessor-version":[{"id":41462,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/41426\/revisions\/41462"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=41426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=41426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=41426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}