Arvind Krishna, the company’s head of cloud computing and cognitive software, will replace Virginia Rometty as chief executive, IBM announced Thursday. Kirsner is reported to be the head of IBM’s cloud computing and cognitive software division and the chief architect of the red hat acquisition by IBM.
In a statement on Thursday, IBM said the 62-year-old will remain as executive chairman until he retires at the end of the year. By then, Luo Ruilan had been working at IBM for nearly 40 years. IBM shares rose about 5 percent in after-hours trading after the announcement.
Since becoming IBM’s first female CEO in 2012, Rowland has been committed to the future of the company in the hybrid cloud market. Hybrid clouds enable enterprises to store data on private and public cloud networks operated by Amazon Web Services AWS and Microsoft Azure. In the cloud computing market, IBM, once the world’s tech leader, has been years behind, almost missing out on the initial cloud computing revolution under its predecessor, Sam Palmisano. Most of IBM’s revenue still comes from older businesses such as largecomputers.
In 2018, Roritland led the company’s $34 billion acquisition of open-source software provider Red Hat, in a deal designed to help IBM raise its industry position. After the deal was announced, IBM reported five consecutive quarters of negative earnings, but the reversal in the fourth quarter of 2019 suggests that the company may finally be through the tough times.
Unlike most big technology companies, however, IBM’s size has shrunk under Mr Rowland. At one point, the company had a market capitalisation of more than $200 billion and revenues of more than $100 billion. Since the end of 2012, the company’s sales have fallen by more than a quarter and its market capitalisation has fallen by 49 per cent.
Rowerland’s tenure at IBM exceeded the CEO’s normal tenure and average retirement years. Three of her four previous IBM chief executives retired at the age of 60.
Meanwhile, Red Hat’s chief executive, Jim Whitehurst, was named IBM’s new president. There is much speculation in the industry that Mr. Wei was at the top of the competition.
Mr. Kosner, 57, was the mastermind behind IBM’s acquisition of Red Hat. He proposed the acquisition to Mr. Rowland and the board, arguing that hybrid cloud was the best option for the company’s future growth. In addition, Kosner led the development of many of IBM’s new technologies, such as artificial intelligence, cloud computing and quantum computing.
“Kosner is a true leader, who adheres to IBM’s values and takes on increasing responsibilities across the company,” IBM said in a statement, adding that he has brought IBM’s cloud computing and software businesses back to growth.
According to the information, Kosner graduated from the Indian Institute of Technology in 1985.