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5 Big Things To Know About IBM’s Spin-Off: A ‘Landmark Day’

The main reason for the breakup is to field two independent entities squarely focused on two unique and massive market opportunities. That’s an approach IBM expects to put both companies on a faster growth trajectory.

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New   Blue

After the spin-off, IBM will be a very different company.

Big Blue will have shifted its business model from one deriving more than half of revenue from services through the Global Technology Services and Global Business Services divisions to software and solutions comprising the bulk of sales.

In short, IBM will become an innovation-based business, Krishna told investors, rather than a services-driven one.

IBM’s remaining segments will be cloud and cognitive software, Global Business Services, systems and global financing. But separated from the largest component of its consulting practice, Big Blue will almost entirely depend on hybrid cloud and artificial intelligence to power its growth in the years to come.

“We will be maniacally focused on being the best hybrid cloud platform and AI company,” Krishna said.

Financial gains from the spin-off will enable more aggressive investments, both organic and inorganic, in hybrid cloud, data and AI, security and emerging technologies like quantum computing, he said.

 
 
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