IBM splits into two companies to focus on the cloud

IBM is splitting itself into two separate 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.
IBM will spin off the unit that manages its infrastructure for clients including support for data centers that unit will have a new name by the end of next year chief executive officer Arvind Krishna who also engineered IBM’s 34 billion dollar acquisition of a cloud company.
Red hat last year called the move a significant shift in the 109-year-old company’s business model in recent years the company has focused on the cloud, growth aiming to make up for slowing software sales and seasonal demand for its mainframe servers investors cheered the investiture move driving the company shares up nearly nine percent at the start of trading Thursday.

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