IBM is reportedly to be split into two public companies. The spin-off marks the successful completion of the world’s largest computing company, which has been transforming from a traditional business to a high-margin cloud computing business for years. By the end of 2021, IBM will list its traditional IT infrastructure services division as a single company, providing technical support to 4,600 customers in 115 countries. The newly independent company will have a new name.
James Cavanaud, IBM’s chief financial officer, said the new company will have 90,000 employees and its leadership structure will be decided within months. IBM currently has more than 352,000 employees.
IBM’s shares rose 7 percent after the surprise move cheered investors. Arvind Krishna, IBM’s chief executive, said in a blog post that the move was a “major shift” in IBM’s business model and that the company would focus on open hybrid cloud and artificial intelligence, which account for more than half of its recurring revenue.