IBM to split up activities to focus on cloud and artificial intelligence

by bold-lichterman

The US IT giant IBM will split its infrastructure management activities into a listed company to focus on the “cloud” or cloud computing, the group said in a statement Thursday. The new company, which does not yet have a name, will bring together hosting and service and infrastructure management activities which, according to IBM, have an order book of $ 60 billion. It has relationships with 4,600 customers in 115 countries, operating in a potential $ 500 billion market, according to IBM.

A split scheduled for the end of 2021

The split is expected to close by the end of 2021 as a non-taxable shareholder transaction. For IBM, it is about focusing on the promising market of “cloud” and artificial intelligence. Cloud computing represents a potential market of $ 1 trillion, says the group. “Our customers’ needs for infrastructure services are diverging as adoption of our hybrid cloud platform accelerates.”, said Arvind Krishna, CEO of IBM. “Now is the right time to create two leading companies focused on what they do best”, he added.

IBM also released preliminary third quarter results on Thursday, which show adjusted earnings per share of $ 1.89 and operating income of $ 2.58 on revenue of $ 17.6 billion, after 17.7 billion. billion in the previous quarter. On Wall Street, the IBM title, very traded at the opening, jumped more than 7%.