IBM May Be Selling IBM Watson Health to Focus on Cloud Computing

IBM is reportedly looking to sell IBM Watson Health to focus on cloud computing, and according to the Wall Street Journal report, IBM is studying the possibility of selling its IBM Watson Health in order to simplify the company’s business and focus on the rapidly growing field of cloud computing from In order to be competitive in the cloud computing market.

IBM Watson Health

This unit uses artificial intelligence technology in the healthcare field to help hospitals, drugmakers, and insurance companies manage their data, and its annual revenue has reached nearly $ 1.5 billion, but this unit is currently unprofitable for IBM.
Among the unit’s works:

Analysis of mammograms
Magnetic resonance imaging
Analyze complex healthcare data
Assist in contact with patients

Currently, IBM is studying alternatives to this IBM Watson Health unit, which may be sold to a private equity firm or to a company operating in this sector.

IBM’s market value

It amounts to $ 108 billion, but it has fallen behind cloud computing service providers such as Amazon, Microsoft, and Google, as their market values have risen more than 10 times their previous market value after they entered the cloud computing market.
So IBM hopes that if it focuses on the hybrid cloud computing field, its total revenue and market value will increase.

IBM split into two companies

And at the end of last year, in October 2020, IBM announced that it had split into two companies to promote a hybrid cloud growth strategy to provide digital health information to its customers.
The new subsidiary will focus on the managed infrastructure services unit of the Global Technology Services Division, and it will have partnerships with more than 4,600 customers around the world distributed in 115 countries that depend on technology.
IBM indicated at the time that the company would focus on its open hybrid cloud platform, which represented a trillion-dollar high market opportunity for the company.