IBM is Splitting Up for the Cloud
IBM is going to split into two companies. To focus even more on profitable cloud activities, the network management activities are moving to a new publicly traded company, IBM reports.
The IT infrastructure department is nevertheless one of the units with the most considerable turnover within the company.
But IBM wants to focus entirely on so-called hybrid cloud services, say a form of cloud services for companies where they share storage, programs, … via networks.
IBM does not provide details on the size or valuation of the deal. The new company, provisionally ‘NewCo’, will have some 4,600 customers.
The company will be able to count on an order book of $ 60 billion at the start.
The IBM shareholders will receive shares in the new company. The divorce must be completed by 2021. The stock of IBM is up more than 10 percent today after the announcement in the pre-market trading.