IBM to break up over cloudIBM, the world’s first big computing firm, is splitting into two public companies, marking years of efforts to diversify from its legacy businesses to focus on high-margin cloud computing.
IBM will list its IT infrastructure services unit, which provides outsourcing services including technical support for data centres, as a separate company with a new name by the end of 2021.
Investors cheered the move by CEO Arvind Krishna, who also engineered the $34 billion Red Hat deal for the 109-year old company last year, sending shares up almost 11% in pre-market trading, Reuters reports.
This may shore up IBM’s fortunes, which had disappointing recent quarterly results even as rivals, including Microsoft, SAP, Accenture.