IBM to split into IT business and cloud computing company

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 22 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 63%

South Africa News News

Shares in the 109-year-old computing firm went up 7% as it announced it will spin off its low margin IT infrastructure unit

Bengaluru — IBM 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.

Shares of the company were up 7% in early trading on the move by CEO Arvind Krishna, who also engineered IBM’s $34bn acquisition of cloud company Red Hat last year. In a blog, Krishna called the move a “significant shift” in the 109-year-old company’s business model. The company has shifted focus to cloud growth in recent years, aiming to make up for slowing software sales and seasonal demand for its mainframe servers.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

WATCH: Stock picks — Global market recovery and ProsusDavid Shapiro from Sasfin Securities and Wayne McCurrie from FNB Wealth talk to Business Day TV
Source: BDliveSA - 🏆 12. / 63 Read more »