IBM split into two companies to focus on cloud computing and artificial intelligence – UAE Breaking News

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The long-established computing giant IBM announced that it will divide itself into two public companies, in a move to focus more effectively on some important and profitable sectors such as cloud computing and artificial intelligence. NewCo. Next year the split will actually be implemented, and we will know the name …

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The long-established computing giant IBM has announced that it will divide itself into two public companies, in a move to focus more effectively on some important and profitable sectors such as cloud computing and artificial intelligence.

One of the two companies resulting from the split will be interested in what IBM has been doing for decades in infrastructure and servers and is now temporarily called NewCo. The split will actually be implemented next year, and we will know the final name of the new company then. While the name IBM remains given to the main company.

The CEO of the company, Arvind Krishna, explained what this means is that this is an expected step as it had previously separated the network sector in the 1990s, and then the computer sector in the millennium and five years ago it separated the semiconductor sector.

IBM, which is over a hundred years old, believes that not all of these sectors necessarily work together in the same entity to deliver value to customers, so the separation of entities comes to better focus their activities.

And IBM completed its acquisition of the cloud computing and systems giant Red Hat last year at a value of $ 34 billion, and with this chapter, the company presents itself as a major player who will come to gain more market share in a sector dominated by Amazon and Microsoft.

The split will cost about $ 5 billion to split the company, which has 352,000 employees and has a market value of $ 115 billion.

NewCo will have annual revenues of $ 19 billion and services 75% of the top 100 US companies and employ 90,000 employees.


Source:

IBM.com

Link to the source of the news





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