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109-year-old IBM will split into two companies

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October 10, 2020
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109-year-old IBM will split into two companies
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109-year-old IBM is divided into two companiona Saveliev | 09.10.2020

109-летняя IBM разделится на две компании

By the end of 2021, the division of managed infrastructure services is highlighted in a public company with a new name.

According to the CEO of IBM’s Arvind Krishna, the annual income of the new company (about $19 billion) will be twice the size of its nearest competitor, making it the leading service sector managed
infrastructure. We also learned that it will be 90 000 employees, and the leadership structure will be determined in a few months.

While the new company will be engaged in the design, management and modernization of the infrastructure of the most important organizations in the world, including the “multiplaye”, IBM itself focuses on
an open hybrid cloud platform and the possibilities of artificial intelligence. By the time of the final separation will give shareholders the tax-exempt share, however, for some time, both
the company will pay quarterly dividends.

Now the division provides technical support 4600 customers in 115 countries, including more than 75% of the Fortune 100. The portfolio of orders amounts to $60 billion.

IBM expects the hybrid cloud, which the Corporation plans to create in the future can be estimated at $1 trillion. Krishna also noted that the portfolio of cloud-based software will
to make the most of the revenues of IBM, whereas now 60% of its revenues from services.

We will remind that in July of last year, IBM bought Red Hat that emphasized her interest in this segment of the market,
since the purchase was made with a considerable overpayment for $34 billion In a joint Plenum and Red Hat was to introduce a hybrid multialloy the next generation platform, through which
Red Hat will be able to provide customers the freedom, choice and flexibility, and will enable enterprises to safely deploy, run and manage data and applications both locally and in
private and multiple public clouds.

It is expected that in the third quarter of IBM’s revenue will reach $17.6 billion, and adjusted earnings per share of $2,58.

After the announcement of the separation IBM shares rose 8.8%.

IBM

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