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IBM to break up 109-year old company to focus on cloud growth | Malay Mail

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NEW YORK, Oct 8 — International Business Machines Corp is splitting itself into two public companies, capping a years-long effort by the world’s first big computing firm to diversify away from its legacy businesses to focus on high-margin cloud computing. IBM will list its IT infrastructure...

IBM will list its IT infrastructure services unit, which provides services including technical support for data centres, as a separate company with a new name by the end of 2021. ― AFP pic

IBM will list its IT infrastructure services unit, which provides services including technical support for data centres, as a separate company with a new name by the end of 2021. “We divested networking back in the ‘90s, 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,” Krishna said on a call with analysts.

“IBM is essentially getting rid of a shrinking, low-margin operation given the cannibalising impact of automation and cloud, masking stronger growth for the rest of the operation,” Wedbush Securities analyst Moshe Katri said.

 

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