IBM’s new CEO: Don’t consider spin-off, focus on power AI

Arvind Krishna, IBM’s new chief executive, said today that the outbreak had created new digital transformation opportunities and that he would not consider a spin-off and would continue to consider a takeover. Due to the impact of the outbreak, today’s opening of the Think 2020 Conference was completely changed to online activities, this year’s conference will be the key words will be artificial intelligence and 5G.

IBM's new CEO: Don't consider spin-off, focus on power AI

‘We will find today a time for businesses and societies to accelerate digital transformation, a great opportunity to launch new solutions, new ways of working, and new partnerships,’ Krishna told think 2020. In response to some current market speculation, Krishna clarified that he would not consider splitting IBM. “Our model is complete and values to our customers. I think in a crisis, customer demand will accelerate. Customers need us to provide them with solutions, and our services are closely related to our products. “

In his opening remarks, Krishna said hybrid cloud and AI are the two decisive forces driving digital transformation. He presented a number of new AI-based services and features at the conference, including Watson AIOps, a network security tool based on Watson AI technology, that detects and diagnoses and reacts to enterprise network anomalies in real time. Built on the Red Hat OpenShift platform, Watson AIOps can be used in hybrid cloud environments and can be used in collaborative technologies in distributed work environments such as Slack and Box. Mr Krishna said corporate IT failures could cause revenue and reputational damage, which could even be as high as $260,000 an hour.

In January, IBM announced the appointment of Krishna as its new CEO, replacing Ginni Rometty, who has been in charge of the Blue Giants for eight years. Krishna, who took office last month, has been with IBM for more than 30 years. Krishna was a former head of IBM’s cloud computing division and head of IBM’s $34 billion acquisition of Red Hat last year. In addition, Jim Whitehurst, the former Red Hat CEO, became IBM’s new president.

IBM last month withdrew its fiscal 2020 forecast because of the impact of the new crown outbreak. Mr Krishna said IBM’s financial position was strong enough to guarantee dividend payments. He also stressed that IBM would continue to consider acquisitions if there was strategic value and the price was right.

During his eight years at the helm of Mr. Luo, IBM has been working hard to transform. At a time when other tech giants are hitting new highs, IBM’s share price has fallen into a long-term low and even a decline, with a market capitalisation of just $109.5bn.