- Jul 27, 2015
- 5,458
IBM announced this morning that the company would be spinning off some of its lower-margin lines of business into a new company and focusing on higher-margin cloud services. During an investor call, CEO Arvind Krishna acknowledged that the move was a "significant shift" in how IBM will work, but he positioned it as the latest in a decades-long series of strategic divestments.
"We divested networking back in the '90s, we divested PCs back in the 2000s, we divested semiconductors about five years ago because all of them didn’t necessarily play into the integrated value proposition," he said. Krishna became CEO in April 2020, replacing former CEO Ginni Rometty (who is now IBM's executive chairman), but the spin-off is the capstone of a multi-year effort to apply some kind of focus to the company's sprawling business model.
IBM to split into two companies by end of 2021
As-yet unnamed “NewCo” will handle IBM’s “managed infrastructure services.”
arstechnica.com