IBM splits to focus on Cloud

IBM has recently decided to split its IT services business off into a new company in order to allow its Cloud and AI business to grow.

The services business is to become a public company, with $19 billion in revenue, managing enterprise-owned IT. Regarding the rest of IBM, it will continue to develop as a business focusing on Cloud IT – including hybrid cloud – outside of the customer. Its operations will be based around OpenShift while IBM’s remaining hardware business stays with the main company.

The split should be complete by the end of 2021.

The division will allow the rest of IBM to grow into the cloud sector and catch up with Amazon and Microsoft. IBM will be focusing on its open hybrid cloud platform and AI capabilities. It will aim for digital transformation journeys.

The services business will have then better agility to design, run, and modernize the infrastructure of organizations. Both companies will continue to develop and aim for new opportunities by creating value for clients and shareholders.

Hybrid cloud seems to be the future of IBM.