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Friday, October 9, 2020

IBM Says It Will Split Into Two Companies

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IBM Says It Will Split Into Two Companies in Order to Focus on High-Margin Businesses

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The company's shares went up 7 percent after the announcement. Experts praised the firm's decision, touting it as IBM's smartest, and something that will help the company withstand the impact of automation and cloud services.

IBM, the world's first big computing firm, says it will split into two public companies in order to focus on high-margin businesses such as cloud computing and artificial intelligence. The move is part of IBM's desire to rebrand itself and diversify away from its traditional businesses.

"We divested networking back in the 1990s, we divested PCs back in the 2000s, we divested semiconductors about five years ago because all of them didn't necessarily play into the integrated value proposition. To drive growth, our strategy must be rooted in the reality of the world we live in and the future our clients strive to build. Today, hybrid cloud and AI are swiftly becoming the locus of commerce, transactions, and over time, of computing itself", IBM CEO Arvind Krishna wrote in a blog post.

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