IBM Corporation, which started as a hardware manufacturer, is moving even more to the side, increasingly moving into the service sector, in particular, at this time – in the cloud service.


IBM has announced plans to spin off a separate public company as a division with the function of managing infrastructure services. It is expected that the annual revenue of this new company will be about $ 19 billion, and will focus on hybrid cloud applications and an artificial intelligence system.


According to the company’s CEO, Arvind Krishna, the procedure for allocating resources for the formation of a new company with the provisional (conditional) working name NewCo (new company) will be completed by the end of 2021.


This company will have approximately 90 thousand employees, about 4,600 customers (corporate level), an area of influence and distribution in about 115 countries and $ 60 billion worth of orders per year…


Competitors of the new company are considered BMC and Microsoft, and the remaining turnover of the parent company IBM, however, should give about $ 59 billion in revenue per year.

The infrastructure management services allocated to the new company’s management are a number of managed services that are based on a well-established system and its associated digital transformation complex, which includes both product testing and Assembly, as well as laboratories for verification and experimental functions.


These changes in the capital structure and functional division in the management of the company’s infrastructure clearly show how much IBM strives to keep up with the times, as well as anticipate new trends in the information and related economic component of digitalization.


In other words, the bet on the postulate that the obsolescence of the still profitable infrastructure is inevitable, given the maintenance costs, will decrease – that is, a smooth pre-transition to cloud services is planned to be inevitable.


Such statements are especially relevant after IBM bought out Red Hat for $ 34 billion, with its software solutions based on open source SOFTWARE, including cloud solutions.


“IBM is focused on creating a $1 trillion hybrid cloud,” said Krishna. — Customers ‘ needs for purchasing applications and infrastructure services vary, while the implementation of our hybrid cloud platform is accelerating. Now is the right time to create two market-leading companies focused on what they do best. IBM will focus on its open hybrid cloud platform and AI capabilities. NewCo will be more flexible in designing, managing, and upgrading the infrastructure of the world’s most important organizations. Both companies will move on a trajectory of improved growth with a greater ability to collaborate and take advantage of new opportunities, creating value for customers and shareholders.”

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