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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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Big Blue’s Red Stack 

The leaner, newly restructured IBM will squarely aim at the market’s massive hybrid cloud opportunity by leveraging its Red Hat subsidiary, purchased two years ago for $34 billion.

“Hybrid cloud is a trillion-dollar addressable market for IBM,” Krishna said.

Red Hat enables IBM to win the “architectural battle” for cloud-native environments.

The IBM stack has a foundation of Linux and Kubernetes.

The products delivering those open-source technologies are Red Hat Enterprise Linux and OpenShift, Red Hat’s container platform that supports all client IT infrastructure, from on-premises to public cloud to private cloud to Z and Power Systems.

Moving up the stack, IBM’s middleware portfolio is now integrated and delivered by OpenShift through a family of Cloud Paks.

IBM now has 2,400 hybrid cloud platform customers and is seeing rapid growth, Krishna said, with a doubling of large Red Hat deals last year.

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