What’s In NewCo?
The new managed infrastructure services powerhouse to be named later on will essentially be a spin-off of IBM’s $27.4 billion Global Technology Services business, minus some key facets core to IBM’s hybrid cloud platform strategy.
“It’s infrastructure services without the IBM public cloud,” Kavanaugh told investors.
IBM will also hold onto its practices supporting the Power and Z hardware platforms, the CFO said.
The NewCo pieces last year posted $19 billion in revenue, which means the new consultancy will be born as the world’s largest managed infrastructure services provider—twice as large as its next competitor, according to Krishna’s accounting.
NewCo, focused on infrastructure management and modernization, gets off the ground with a $60 billion backlog and 4,600 customers that include more than three-quarters of the Fortune 100.