IBM to separate IT infrastructure from cloud business with new spinoff company

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IBM plans to spin off its IT infrastructure division into a new company so it can prioritize cloud computing for its legacy business, according to an Oct. 8 CNBC report.

The new company, temporarily named NewCo, will spin out of the Managed Infrastructure Services unit of IBM's Global Technology Services business by the end of 2021. NewCo will oversee client-owned infrastructures.

"IBM will focus on its open hybrid cloud platform and AI capabilities," said IBM CEO Arvind Krishna, according to the report. "NewCo will have greater agility to design, run and modernize the infrastructure of the world's most important organizations. Both companies will be on an improved growth trajectory with greater ability to partner and capture new opportunities – creating value for clients and shareholders."

 

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