IBM split into two companies

IBM split

IBM split into hybrid computing and infrastructure

In a radical change to IBM, the technology company decided to split into two companies: a company bearing the trademark and the historical name of the company and would be interested in hybrid cloud computing, and the second company would have a new name that would provide business and services for managed infrastructure.

This change includes shifting its business model from sales of services and devices to recurring revenues that rely on cloud computing and managed infrastructure.

IBM stated that this decision was made in a timely manner in a move to create two market-leading companies, each focusing on what it specializes in so that the company that bears the company name IBM will focus on the hybrid open cloud system and artificial intelligence technology capabilities, while The new company will be more flexible in terms of design, operation, and infrastructure modernization.

The deadline for the split will be at the end of 2021.

A trillion-dollar market opportunity

IBM CEO Arvind Krishna stressed the importance of the separation decision for IBM, especially that it would focus on the field of hybrid cloud computing and artificial intelligence, and it would become a pioneer in this field, and he indicated that the market opportunity is estimated at a trillion dollars, including the platform and technologies of the company ( Red Hat) acquired by the company.

A $ 500 billion market opportunity

And IBM President Jenny Romney talked about the new company that will be interested in managing and modernizing the infrastructure, and Jenny Romney mentioned that the market opportunity for it is $ 500 billion, and the company will in addition provide hosting and networking services, infrastructure modernization, service management, and multi-cloud environment migration and management. These services are based on artificial intelligence technology and automation.